☕️ New Berjaya Corp CEO vote of confidence - RM19.6 million share purchase

Higher compensation for top Malaysian bankers despite pandemic year. Proton owner, Geely, launching new brand, Zeekr, to go up against Tesla. President Putin's behind closed doors vaccine shot.

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1. MARKET SUMMARY


2. NUMBERS AT A GLANCE

481,989 individuals have been vaccinated via the National Covid-19 Immunisation Programme as of March 23, 2021.

Employees Provident Fund (EPF) approved withdrawals of RM19.45 bil involving 5.23 mil members (average RM3.7k per member) for i-Lestari and RM52.48 bil involving 5.94 mil applicants (average RM8.8k per applicant) for i-Sinar.

60 largest banks have invested USD 3.8 trillion into fossil fuels from 2016 to 2020, five years since the Paris Agreement.


3. COVID-19 SUMMARY


4. IN MALAYSIA 🇲🇾

  1. Air Selangor strikes again — with water supply disruption taking place for two days starting March 30, 2021 in Petaling, Klang and Shah Alam districts. The disruption is to facilitate removal and replacement work for an old pipe in Persiaran Selangor. Supply of water will resume approximately 9am on April 1, 2021.

  2. Despite the lacklustre performance from banks in 2020, Malaysia’s top bankers were handsomely remunerated with bonuses and increments.

    • AmBank’s CEO — was paid RM6.64 million in FY20 but it was from April 2019 till March 2020.

    • HLB’s CEO — took home RM17.13 million compared to RM15.34 million.

    • Maybank’s CEO - got a 10.2% bump in salary to RM9.4 million in 2020, compared to RM8.4 million in 2019.

  3. Higher palm product prices pushed Boustead Plantations Bhd to report net profit of RM27.46 million for Q2FY20 ended Dec 31, 2020 compared with a net less of RM172.73 million a year earlier. The group expects palm oil prices to remain high for at least the first quarter of the year.

  4. Berjaya Corp Bhd’s Group CEO Abdul Jalil Abdul Rasheed scooped up 70 million shares of the company at 28 sen each days after he was appointed to the post which is equivalent to 1.4% equity interest. That is a RM19.6 mil share purchase. Whether it is his own money or loan from someone prominent, it’s good optics.

  5. Eco World Development Group Bhd (EcoWorld)’s wholly-owned subsidiary Eco World Capital Services Bhd has established RM500 million sukuk wakalah programme to repay several identified existing borrowings and working capital requirements. The unit has issued RM180 million worth of sukuk wakalah with a tenure of five years under the programme.


5. AROUND THE WORLD 🌎

  1. One of the world’s most important and busiest shipping routes, the Suez Canal, has been blocked by a massive cargo container ship after a ‘gust of wind’ knocked it off its course. The ship, Ever Given, which is nearly 200 foot wide, 1,300 foot long, is in a perpendicular position to the canal. This situation, if not addressed soon will cause a ripple throughout the global supply chain. There is a pileup of more than 100 vessels that is seeking to cross the canal.

    The Suez Canal, located in Egypt, was built in 1869 connecting the Mediterranean and Red Seas. It is a very important trade route that allows for the shortest possible travel between Europe and Asia for shipping vessels, facilitating10% of all international maritime trade. At a length of 193 km, 19,000 ships passed through it last year. It generated USD5.6 bil  in revenue for the Egyptian economy in 2020. 

  2. Proton owner, the Chinese automaker, Geely Automotive Holding, will be launching a new brand of premium electric vehicles (EV) called Zeekr with a seed investment of RMB2 bil (USD307 mil).. The Zeekr brand aims to capture a share of the luxury EV market that has been dominated by Tesla. Tesla’s China revenue more than doubled from USD2.9 bil in 2019 to USD6.6 bil in 2020.The first vehicles are expected to be delivered in Q3 2021. Zeekr will be manufactured using the Sustainable Experience Architecture, an open-source EV tech that offers driving range up to 700 km.

  1. Private equity giant KKR and music company BMG Rights Management  are teaming up to acquire song catalogues, after recent blockbuster deals by Bob Dylab and Neil Young. Value of music rights have soared in recent years given a combination of factors such as growing streaming service, low interest rate environment and financial firm’s appetite for alternative assets. London-based Hipgnosis Songs Fund has invested USD2 bil alone in the market. 

    Earlier this year, KKR bought a stake in OneRepublic frontman Ryan Tedder’s catalogue, valuing his nearly 500 songs at USD200 mil (about USD400k per song). Universal Music Group in December acquired Bob Dylan’s catalogue for more than USD300 mil

  2. Russia President Putin has received his Covid-19 vaccination shot, however, behind closed doors, according to the Kremlin. The Kremlin refused to disclose which vaccine Putin received but mentioned it was one of the 3 available in Russia: Sputnik V, EpicVacCorona, and CoviVac.

    Many noted that it is out of character for Putin, who is known for posed photo ops. It’s also a change from other world leaders that had their vaccination shot publicly to encourage trust in vaccination. 5.9 mil Russians have received Covid-19 vaccine, out of a population of 145 mil.

  1. Didi Chuxing, China’s ride-hailing giant, is planning to seek a listing in New York over Hong Kong, with a targeted valuation of USD100 bil. A SPAC listing was initially considered, however, deemed less viable given its mega valuation. 

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