In today’s edition of Evening 5 — DOSM says Malaysia’s inflation stayed at 2.0% in August, while core inflation grew 2.5%. Meanwhile, the cut-off date for the proposed disposal of a 33% stake in Boustead Plantations by LTAT to KLK is delayed for the second time.
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00:00 Malaysia's headline inflation rate remained at 2% last month, as overall prices for food,
00:10 restaurants and hotels saw a slower increase in the month under review.
00:15 That's the same growth rate recorded in July as headline inflation moderated since reaching
00:20 a peak of 4.7% in August 2022.
00:24 Overall inflation, which excludes volatile items of fresh food and goods with administered
00:30 prices by the government, increased 2.5% last month, down from 2.8% in July.
00:36 According to data from the Department of Statistics Malaysia, price increases at restaurants and
00:42 hotels slowed to 4.7% in August, down from 5% the previous month, while food and non-alcoholic
00:49 beverages grew 4.1%, a decline from 4.4% in July.
00:54 Under the food and non-alcoholic beverage group, food at home recorded a marginal hike
00:59 of 2.9% in August versus 3% in July.
01:03 This as prices rose for meat, followed by the rice, bread and other cereals, and milk,
01:09 cheese and egg subgroups.
01:11 For food away from home, prices increased at a slower pace of 5.9% in August, compared
01:17 with 6.2% in July.
01:24 CJSC RMB Research believes the impact of rising rice prices is still negligible on
01:30 inflation despite the 3% year-on-year jump in the price of the staple food in August
01:35 versus 2.4% in July, representing the sharpest increase booked by the subcomponent since
01:41 2008.
01:42 It said the weightage of the rice in the Consumer Price Index basket is only 1.1% and kept its
01:49 2023 inflation projection at 2.8%.
01:53 It also highlighted that rice prices on the global market have eased slightly from their
01:58 15-year high, with prices of Thailand's 5% broken white rice having fallen to US$612
02:05 per tonne on September 20th, compared to a peak of US$648 per tonne on August 9th.
02:12 Still prices are elevated compared to 2022's average of US$437 per tonne.
02:18 Domestically, it noted that the government has stepped up efforts to ensure stable supply
02:23 and prices, though the lifting of India's export ban will be crucial for a marked decline
02:28 in global rice prices.
02:30 According to the report, India's Rice Exporters Association said adequate rain and a good
02:36 harvest for the autumn season could improve the supply situation and allow the ban to
02:41 be lifted by December.
02:48 The cut-off date for the proposed disposal of a 33% stake in Bausted Plantations by the
02:53 Armed Forces Fund Board or LTAT has been extended for the second time.
02:58 Kuala Lumpur Kepong or KLK, which is acquiring the 33% stake from LTAT and Bausted Holdings,
03:05 said the three parties have agreed for the cut-off date for the Strategic Collaboration
03:09 Agreement to be extended for another two weeks to October 6th.
03:14 The previous extension, announced on September 11th, ended today.
03:18 KLK first announced on August 24th that it plans to acquire the stake for RM1.15 billion
03:24 or RM1.55 per share and will extend a mandatory general offer with plans to increase its stake
03:31 to 65%.
03:32 LTAT and Bausted will own the remaining 35% and Bausted Plantations will be taken private.
03:39 The deal has been in the spotlight as opposition leaders claimed that the deal does not fit
03:44 with the government's aim of achieving Bumiputra Corporate Equity Target of 30% by 2025.
03:51 Shares of KLK settled up 0.38% today to close at RM21.38, valuing it at RM23.11 billion.
04:00 Bausted Plantations' shares closed unchanged at RM1.49, giving it a market capitalisation
04:07 of RM3.34 billion.
04:09 Prime Minister Datuk Sri Anwar Ibrahim has engaged with 15 US Fortune 500 companies,
04:19 including Airbnb, Amazon, Boeing, CanocoPhillips and Kimberley Clark, in his mission to attract
04:26 Foreign Direct Investments or FDIs to Malaysia.
04:29 The Prime Minister is currently in New York to attend the 78th United Nations General
04:35 Assembly.
04:36 According to a Purnama report, during the meeting at the Harvard Club New York, Anwar
04:41 took the opportunity to share the Mudani Economy Framework, which, supported by the new Industrial
04:47 Master Plan 2030, the National Energy Transition Roadmap and the 12th Malaysia Plan Midterm
04:52 Review, outlines the direction towards achieving the nation's development goals.
04:58 In a statement issued by the Prime Minister's office, Anwar said he also had separate meetings
05:03 with Google, Boeing, Medtronic and Siemens Healthineers, which expressed their desire
05:08 to expand their operations and business in Malaysia.
05:11 The US has been Malaysia's third-largest trading partner since 2015.
05:17 Last month, outgoing US Ambassador to Malaysia Brian McPhetus said US companies have pledged
05:23 investments totaling RM100 billion in various sectors in Malaysia over the last 18 months.
05:29 [Music]
05:34 Sudania Corp, the major shareholder of Sudania Innovator, has been ordered by the Kuala
05:40 Lumpur High Court to pay RM14.52 million to two individuals claiming to own a 49% stake
05:46 in its consumer healthcare products business.
05:49 The unit involved is Offspring Inc, in which Sudania Innovator acquired 51% for RM15.12
05:56 million cash from Sudania Corp in November 2020.
06:00 However, two individuals, Kareem Lau and Tan Kian Yao, claimed to have 49% interest in
06:06 Offspring via an agreement entered with Sudania Corp in 2018, and initiated an arbitration
06:13 to claim damages for their rights and interest, though they did not specify an amount.
06:18 Sudania Innovator said it received a court order which Lau and Tan had obtained to enforce
06:24 the arbitration award of RM14.52 million damages.
06:28 Sudania Corp and Offspring are also required to bear the cost of arbitration, totaling
06:33 RM416,358 and legal-related costs of RM365,937.
06:42 The group said Offspring will seek to have the court order stayed or set aside, while
06:47 Sudania Corp will continue to indemnify the company from any potential claims.
06:52 [Music]