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KUALA LUMPUR: The ringgit opened lower against the US Dollar on Tuesday due to a lack of buying interest. Cautious sentiment continues to surround the Bank of Japan’s (BoJ) monetary policy decisions. At 9:15 am, the ringgit depreciated to 4.7225/7265 against the US Dollar from 4.7165/7195 on Monday. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said market participants will focus on the BoJ’s monetary policy decisions today. He said there are expectations that the Japanese central bank will end its negative interest rate policy and yield curve control. Furthermore, he said market participants will monitor the Federal Open Market Committee (FOMC) meeting of the United States starting today and ending tomorrow. Therefore, the ringgit is expected to remain low due to cautious trading sentiment, he told Bernama. “However, positive data from China yesterday provided hope that the world’s second-largest economy will gain traction following various economic and monetary stimuli,” he said. The ringgit traded mostly lower against a basket of major currencies. It declined against the Japanese Yen to 3.1631/1660 from 3.1608/1630 on Monday and decreased against the Pound to 6.0070/0121 from 6.0060/0098 yesterday. However, it increased against the Euro to 5.1338/1382 from 5.1400/1433 previously. The local currency remained almost unchanged against the Singapore Dollar at 3.5258/5291 from 3.5253/5278 on Monday and rose against the Philippine Peso to 8.48/8.49 from 8.49/8.50 earlier.

KUALA LUMPUR: National oil company Petroliam Nasional Bhd (Petronas) has defended the selection of Solarvest Energy, a subsidiary of Solarvest Holdings Bhd, for its nationwide solar panel project at over 300 stations. Petronas president and group chief executive officer Tengku Tan Sri Muhammad Taufik said technical standards and deadline-driven outcomes led to its selection for the turnkey contract. Assuring that the company chose a qualified installer for the project, Taufik clarified that while Petronas considered Bumiputera companies recommended by a government agency, none met the specific requirements for this project. He indicated Petronas is looking into ways to involve smaller, potentially combined firms (consortia) in future contracts. Taufik downplayed reports suggesting the contract value is in the hundreds of millions, stating it is a much smaller sum. To recap, Solarvest Energy was selected by Petronas’ unit Gentari Renewables to install solar panels at Petronas stations, with an aim to complete the project by 2027. The project starts in April this year and will equip over 300 stations with a total solar capacity of 5.4 megawatt peak (MWp). Previously, the Malay Chamber of Commerce Malaysia had questioned Petronas’ commitment to supporting Bumiputera businesses in awarding this contract.

TOKYO: Nissan Motor is considering seeking a business partnership with Honda Motor on key components for electric vehicles to cut production costs, three people familiar with the matter at Nissan said. The potential partnership with domestic rival Honda could help Nissan gain economies of scale in producing EVs, which is crucial for Japanese automakers as they face heavy competition from China’s BYD, Tesla and other electric vehicle makers. The sources, who declined to be identified as the matter is still private, said Nissan and Honda are yet to formally start discussions, with the scope of the partnership undecided. A Nissan spokesperson declined to comment. A Honda spokesperson said there was nothing the company could say. Another source said the idea of collaboration emerged between the chief executives of the companies. Nissan is considering partnering with Honda on key EV parts, as well “kei car” – boxy vehicles that are smaller and less powerful than regular cars, primarily made for the domestic market. The partnership could extend to overseas businesses, but that would affect Honda’s existing collaboration with General Motors, according to two of the sources. Nissan’s pursuit of a partnership was first reported by TV Tokyo. The Nikkei newspaper has reported specific measures could include the introduction of a common powertrain, joint procurement and development of a common platform. A source at Honda said a potential partnership with Nissan is one of many possibilities the company is considering, but there are many agenda that need to be sorted out for it to proceed with a new tie-up. Honda is aiming to increase its ratio of electric vehicles and fuel cell vehicles to 100% of all sales by 2040. Nissan already cooperates with Renault on EVs, mainly in Europe. The next Nissan electric Micra will share the same architecture as the new Renault Five and be built in the same plant in northern France. Nissan has also committed to invest up to 600 million euros ($653 million) in Renault’s new electric vehicle entity Ampere. But the two firms last year reduced the scope of a years-long alliance to allow for a more agile partnership, and Renault has since signed agreements with new partners such as China’s Geely.

KUALA LUMPUR: Malaysia’s retirement savings fund, the Employees Provident Fund (EPF), is allocating up to RM250 million to Gobi Partners to boost mid-sized domestic companies with high growth potential. The investments will target several key areas, namely healthcare for the elderly, improvements in food production, making financial services more accessible, promoting sustainable practices like clean energy, enhancing education quality, and social infrastructure development. EPF said these align with its overall strategic goals and may include additional promising sectors in the future. EPF chief executive officer Ahmad Zulqarnain Onn said the agency is committed to participating in the growth journey of high-potential companies in Malaysia as it aligns strategy with developing an inclusive social protection ecosystem. “This commitment was mandated to cater to several strategic investment themes, including healthcare, with a specific focus on aged care and the silver economy. “It reflects the EPF’s recognition of the importance of addressing the needs of an ageing population. “In the long run, we hope this effort contributes to building a resilient society that is resilient to economic and social challenges while delivering profitable returns for our members,” he said in a statement. This move also aligns with the Malaysian government’s Madani Economy Framework, where the EPF wants to work alongside other government-backed investment firms (GLICs) to help young startups get established. Gobi Partners is a well-established venture capital firm across Asia. The EPF, already the biggest investor in Malaysia with over RM702 billion in assets under management as of December 2023, is taking this step to strengthen the domestic market further. Both companies will look to fill funding gaps for these early-stage companies, which will benefit the companies’ growth and generate good returns for the EPF, considering the potential risks involved. This commitment reflects the EPF’s ongoing efforts to provide social security through strategic investments in promising Malaysian mid-sized companies. “Gobi Partners is proud to stand alongside the EPF in this significant commitment to the growth of mid-to-growth-stage companies in Malaysia. “Our strategic focus on the six key themes underscores our dedication to driving innovation and creating lasting socio-economic impact,” Gobi Partners co-founder and chairperson Thomas G Tsao said.

KUCHING: The current boycott stance by Malaysians and other global citizens to spurn American brands such as McDonald’s, Burger King, and Starbucks, as well as other brands like Nestle’s Milo and Nescafe, which are deemed to be products exported from pro-Israel countries, will certainly exact economic repercussions on such brands. However, there is a misconception among consumers who are participating in this call to boycott these popular brands in light of the current Israeli-Hamas conflict in the Middle East, according to a renowned local economist. Speaking to The Exchange Asia, Dato Dr Madeline Berma said, “Consumers boycotting these brands are not aware that while their action will cause a deficit and hurt the brands that are being given the snub, it will be Palestine as a nation, and Palestinians as a people, who will bear the heavy brunt of this boycott action, more than Israel itself.” The Senior Fellow of Institut Masa Depan Malaysia, quoting a 2015 report by the global policy think tank Rand Corporation, said: “Boycott, divestment, and sanctions (BDS) and other related financial and trade sanctions against Israel, had resulted in a cumulative reduction of around US$15 billion in Israel’s gross domestic product (GDP) over 10 years. “This represents about three per cent of Israel’s annual GDP, over US$500 billion. It was further reported that in Palestine, the BDS led to increased trade and transaction costs and a reduction in Palestinians working in Israel. “This, in turn, caused a US$2.4 billion decrease in Palestine’s GDP, with a per capita GDP decrease of 12 per cent, which is 3.5 times greater than the decrease experienced by Israel. The BDS has reduced economic opportunities in Palestine and inflicted more harm on the Palestinians than serve a good cause to the politically- and economically-challenged nation,” she added. Madeline said that at the policy level, boycotts can result in economic pressure on the targeted companies, driving them to formulate a policy commitment and modify practices in response to such coercion. According to her, boycotts can also impact on brand image. “Brands rely heavily on their image and reputation. Customers’ anger and hatred towards the brand create a lot of negative publicity against the targeted companies. They cause the most damage to relationships between customers and companies, weakening brand strength and impacting profits,” she said. On the continued corporate performance of a company whose products were given the cold shoulder by consumers, she said: “For targeted companies like Mcdonald’s and Starbucks,  such boycotts can have detrimental effects on corporate performance, particularly in terms of sales, brand image, reputation, and stakeholder relationships.” Madeline pointed out that boycotts can lead to a noticeable drop in a brand’s revenue, making it a direct and impactful way to hold companies accountable for their beliefs, political stance, and subsequent actions. She said that during a boycott, a country can suffer economic losses. “Boycotting can lead to job losses, especially for Malaysian employees who do not influence a brand’s actions. Malaysians can boycott to their ‘own disadvantage’ since such companies provide employment and are the largest tax-contributing sector to the national economy. She added, “These multinational chains also buy local, and therefore, local industries will also be affected by such boycott actions.”

KUALA LUMPUR: Long haul budget carrier AirAsia X Bhd signed a memorandum of understanding (MoU) with Kazakhstan Tourism for strategic collaboration. The MoU encompasses greater commercial collaboration and partnerships between the airline and the organisation to promote tourism between Kazakhstan and Malaysia, create new business opportunities, develop joint sales and marketing campaigns, and boost both countries’ economies through tourism. As a strategic partner, AirAsia will not only fly travellers from Malaysia and other Southeast Asian countries to Almaty but also connect travellers from Almaty to 130 destinations across the region via Kuala Lumpur. The airline is also looking to extend Malaysian and Kazakh tourism product promotion across the region through conferences, travel marts, and other exciting events. The MoU was signed by AirAsia X chief executive officer Benyamin Ismail and Kazakhstan Tourism chairman Kairat Sadvakassov and witnessed by the ambassador of Malaysia to Kazakhstan Mohd Adli Abdullah and Capital A executive chairman Datuk Kamarudin Meranun. Representatives from Almaty Airport, the Civil Aviation Authority of Kazakhstan, and other key industry players were also in attendance. “This strategic alliance is a significant leap for Malaysia and Kazakhstan. It is about enhancing travel experiences and bolstering our economies. This partnership opens up more opportunities for travellers, leading to growth for both nations. “Our competitive fares stimulate air travel wherever we fly, contributing to the tourism sector, a major engine for job creation and a driving force for economic growth,” Benyamin said in a statement. He said the high load factor on both legs of AirAsia X’s inaugural flights indicates strong demand for the route and reflects positively on its capability to penetrate new markets. “This bodes well for future growth and expansion opportunities in the region, boosting our opportunities in various sectors between Malaysia, Kazakhstan, and the Southeast Asian region. We are excited to see the positive changes it will bring to Malaysia and Kazakhstan,” he said. Sadvakassov said AirAsia’s entry into the Kazakhstan market is important for the country and the entire Central Asian region. He said Kazakhstan, like the gates and the Heart of Central Asia, provides access to numerous attractions in our region. “We hope the cooperation with AirAsia X will be fruitful and contribute to significant trade, commercial, cultural, and educational exchanges. Additionally, we believe that cooperation between our countries will create new job opportunities and play a significant role in our nation’s economic growth,” he said. Striving to promote tourism in both directions, AirAsia X has launched flights between Kuala Lumpur and Almaty, as well as Almaty and Kuala Lumpur, with a frequency of 4 times a week. The planes will operate every Tuesday, Thursday, Saturday, and Sunday.

KUALA LUMPUR: Techbase Industries Bhd’s (TIB) wholly-owned subsidiary Honsin Apparel Sdn Bhd (HASB), has filed a suit against the major shareholder of South Malaysia Industries Bhd (SMI) and Asian Pac Holdings Bhd for its management practices. In a statement, HASB expressed disappointment with the current SMI board for persistent losses since 2019. Further, given the company’s financial performance, the substantial increase in director fees for the financial year ending June 30, 2023, is disproportionate. HASB noted that this concern follows SMI’s recent announcement of filing a judicial review against the Securities Commission Malaysia (SC). HASB is also particularly troubled by SMI’s prolonged delay in convening an annual general meeting (AGM), which has persisted for 21 months without any public explanations to SMI’s shareholders. “This departure from the customary 12-month AGM timeline raises serious questions about SMI’s management’s transparency and accountability. “We are profoundly disappointed with the actions of the current SMI board. Their focus and priorities appear to be starkly misaligned with the interests of the shareholders. “Certain decisions seem to lack transparency instead of fostering the company’s advancement. “We hope no further delay of the AGM,” HASB spokesperson said in the statement. The company said the actions of SMI’s directors, which undermine shareholders’ rights and erode confidence in the company’s governance, could have profound implications on foreign investment confidence in Malaysia. Investors keenly observe corporate governance standards in public-listed companies, and any deviations from these standards can significantly impact investor sentiment, HASB noted. Moreover, there is a pressing concern that the incumbent SMI directors have failed in their fiduciary duties by persistently delaying the AGM, thereby obstructing shareholder engagement and oversight, without demonstrating any tangible efforts to address SMI’s ongoing financial losses. Note that HASB had previously won a case calling for an extraordinary general meeting (EGM). However, SMI has applied for a stay on the judgment, further delaying the EGM. Additionally, SMI has applied to the Companies Commission of Malaysia (SSM) for a delay in holding the AGM without providing any reasons to the shareholders. HASB and HIQ Media Malaysia Sdn Bhd (HMM) have filed a suit against Mah Sau Cheong and 15 others. To note, HASB and HMM collectively own a 10.01 per cent stake in the loss-making SMI. SMI’s ownership is spread among various owners, with BH Builders Sdn Bhd owning the largest portion, or 9.31 percent. This company is fully owned by Asian Pac Holdings Bhd, another property developer listed on the main market of Bursa Malaysia. “We urge all shareholders to attend and vote in the upcoming AGM to exercise their shareholder rights and express their views on the company’s management. “We must stand together to ensure transparency, accountability, and good governance in SMI,” added HASB spokesperson. HASB remains committed to advocating for the rights of shareholders and the betterment of SMI.

KUALA LUMPUR: Smart Reader Worldwide Sdn Bhd (SRW), the early childhood education franchiser, aims to establish a stronger presence in Malaysia next year as the demand for new centres is picking up pace post-pandemic. Executive director Kevan Ong said the East Malaysian market has been the company’s strong growth state, and part of the company’s strategy is to establish a broader presence there. “We believe Sarawak is the right choice for expansion, as there are ongoing developments coupled with the resumption of oil and gas activities in the state. “We are experiencing a surge in inquiries from young entrepreneurs keen to become our franchisee and operate new early childhood centres in smaller towns. “We are also receiving inquiries from Sabah and Peninsular Malaysia. We foresee 20 new centres being operational throughout Malaysia in 2024,” he told The Exchange Asia. Ong said a nationwide demand for affordable and quality preschool education continues to exist, and the rapid development and urbanisation in East Malaysia create more demand for educational services. “We also have a regional office and hub in Kuching, Sarawak, and our centres in Kuching and Kota Kinabalu. “Besides accessibility and support for existing centres, the team provides valuable insights and allows us to focus on targeted and viable locations for expansion,” Ong said. Ong said SRW currently has approximately 300 centres nationwide, including those awaiting the granting of a franchisee licence to begin operation. The company has 40 franchisees currently operating in Sabah and Sarawak. “Apart from our target to expand 20 more centres in Malaysia this year, we are also targeting international expansions in Australia and Indonesia,” Ong said. SRW offers preschool education programmes for children aged three to six. The curriculum is focused on promoting learning through play. The SRW franchise fee is RM270,000, including setup costs, and the company offers several incentive plans for young entrepreneurs interested in entering the early childhood education business. “We hit our target for 2023, especially with the new Smart Reader Kids++ concept, designed as a daycare and transit centre for primary school students. “Further, we opened our fourth centre in Melbourne, Victoria, with the launch of Smart Reader Kids Hallam,” Ong said. Touching on listing plans, Ong said the company aims to be a public-listed firm in Malaysia and abroad by 2025 after establishing a stronger brand presence, expanded operations, better earnings volume and perks to offer future shareholders. “When want to make sure that when we are going for initial public offering (IPO), we want to show an upward trajectory of the company and a bigger appetite for shareholders as they may want to see positive organic growth,” he said. Ong said SRW’s market goal would be to continue growing the Smart Reader Kids brand in Malaysia, Australia, and Indonesia. “We aim to achieve this by expanding our geographical reach by opening new centres in untapped markets. This will also increase our enrolment numbers to 20,000 students,” he said. Ong said the main criteria SRW seeks in selecting entrepreneurs to join the Smart Reader Kids fraternity is passion. “We want people who are passionate about working with children. In terms of support, we have an established franchise system that has been in operation for more than 20 years, providing support from all areas, including training and development, human resource (HR), legal, branding and marketing, research and development, and operations,” he said. When asked to comment on what the government should look at to improve early childhood education and initiatives, Ong said one factor would be initiatives to encourage home-bound mothers to return to the workforce. He said one primary cause is that many home-bound mothers want to return to the workforce and how they can send their children to a proper education and care centre. He said countries such as Australia already have similar centres for working mothers, and employers encourage a proper work-life balance for working mothers. “The government and related ministries should emphasise new initiatives for young mothers keen to return to the workforce. “There must be subsidised and affordable early childhood education and care centres in major cities. This would make it easy for home-bound mothers to return to the workforce and have their children begin their education in these centres,” Ong said.

KUALA LUMPUR: The demand for internet bandwidth in Malaysia will continue to grow this year, fuelled by specific sectors such as e-commerce, online entertainment, remote work, and cloud-based services. The Malaysia Internet Exchange (MyIX) chairman, Chiew Kok Hin, said that to accommodate this surge in demand, MyIX is implementing specific measures to enhance the overall internet infrastructure and focusing on infrastructure expansion. “These include upgrades, investments by local internet service providers (ISPs) and global players, and the adoption of new technologies that drive further enhancements in internet connectivity,” he told The Exchange Asia. Chiew said the country’s demand for internet bandwidth continues to show strong and sustained growth. This trend is evidenced by the record peak of 2.1 terabits per second recorded in May 2023, and as the current demand for internet bandwidth is also around this mark, MyIX foresees it rising further in the months and years to come. Chiew said this internet usage surge is driven by various factors, including the proliferation of the latest and most powerful digital technologies, the expansion of online services, and evolving user behaviours. Moreover, the increase in participation from various entities, including hosting companies, universities and enterprises, has enriched the MyIX ecosystem, leveraging the ‘network effect to improve connectivity across Malaysia. “By encouraging more entities to join the exchange, we aim to enhance our users’ overall internet performance and reliability,” said Chiew. He also said the advancements in video conferencing, large-scale display technologies, and emerging technologies such as cloud computing, IoT (Internet of Things), and 5G have significantly contributed to this surge. “In particular, artificial intelligence (AI) seems to be progressively moving mainstream. The proliferation of AI in various aspects of life and work significantly contributes to the sustained high demand for internet bandwidth. “AI technologies are becoming increasingly embedded in our daily activities, from personalised recommendations on streaming platforms to intelligent productivity tools in the workplace. “In this light, MyIX recognises the importance of adapting our infrastructure to accommodate the bandwidth requirements of AI technologies, ensuring that Malaysia remains at the forefront of digital innovation and connectivity,” said Chiew. Chiew said there is also a convergence of AI with some of the technologies mentioned. For example, a noteworthy development in this realm is the availability of the Zoom AI Companion in Bahasa Malaysia, marking a significant milestone in making advanced AI tools accessible to a broader audience in Malaysia. For video conferencing meetings, it offers capabilities like quick catching up on missed discussions, smart recording with highlights and chapters, and even generating summaries with the next steps. These developments enhance the efficiency and effectiveness of digital communications and highlight the growing demand for internet infrastructure capable of supporting sophisticated AI applications, said Chiew. In response to these trends, Chiew said MyIX remains committed to ensuring its infrastructure is robust and adaptable to meet the growing demands. “We are planning for substantial infrastructure investments and capacity expansions in 2024, focusing on enhancing the efficiency and capability of our internet exchange infrastructure. “These initiatives are designed to future-proof our network against the increasing traffic volumes and ensure the provision of fast, reliable internet connectivity to our users,” said Chiew. Chiew pointed out that in the last financial year, MyIX underwent a comprehensive restructuring of its backend network, implementing various improvements. “We invested in new firewalls, specifically Fortigate, to fortify our network’s access redundancy. This addition significantly bolstered our system’s resilience when accessed via non-MyIX networks. “Furthermore, we expanded our upstream providers at no cost. The two providers, namely REDtone Engineering & Network Services Sdn Bhd and IP Serverone Solutions Sdn Bhd, were crucial additions to our network architecture,” said Chiew. He also noted that MyIX recognises the importance of collaboration in this dynamic ecosystem. “We are actively engaging with ISPs, content providers and other stakeholders through ongoing discussions and partnerships to optimise the internet ecosystem in Malaysia. “Such collaborative efforts are vital for collectively addressing the escalating bandwidth demand and ensuring a seamless internet experience for all users,” he said. MyIX’s vision is to shape the future of internet connectivity in Malaysia by building a resilient and scalable infrastructure that can support the dynamic needs of its users and the broader digital economy. On the corporate social responsibility (CSR) front, Chiew said MyIX launched a national initiative, the Network Infrastructure Training Programme, aligning to empower the Malaysian workforce with essential digital economy skills. The programme kicked off last month at MyIX’s headquarters in Puchong, Selangor, selecting 25 participants from a pool of hundreds for the inaugural ‘Explore the World of Network Infrastructure’ course. This effort, in partnership with Forward College, aims to address the digital skills gap by providing hands-on training in critical areas such as internet protocol (IP) network and systems operations, routing protocols, and distributed denial-of-service (DDoS) prevention strategies. Chiew said this initiative was designed to benefit recent graduates, professionals from MyIX member companies, and the industry at large. With the backing of MyIX members, the programme reflects a strong commitment to collaborative efforts in technological education, underscoring the importance of building a skilled workforce ready to navigate the challenges and opportunities of the digital future. “This programme is not just about theoretical learning but also about equipping participants with practical skills that can be immediately applied in the workforce. “Through such initiatives, MyIX plays a pivotal role in enhancing internet speed, reliability and security in Malaysia, contributing significantly to the country’s digital economy,” Chiew said.