Public Islamic Bank launches “Go Green” campaign for EEVs

PETALING JAYA: Public Islamic Bank Bhd is participating in Value Based Intermediation (VBI), an initiative from Bank Negara Malaysia by launching its energy effiecient vehicle (EEV) campaign under AITAB Hire Purchase-i Financing.

The VBI aims to align Islamic finance business models towards realizing the objectives of shariah to generate positive and sustainable impact to the economy, community and environment.

The promotion of the campaign from April 1 - Dec 31, 2020, with an exclusive financing rate of 2.2% per annum with tenure up to nine years.

This campaign is designed to support local growth and usage of EEVs in Malaysia to reduce carbon emission into the environment. This promotion is only applicable to selected new vehicle models.

Public Islamic Bank will also be launching a residential solar panel financing program with attractive financing rates to benefit its existing customers.

“This solar program is expected to produce positive sustainable effect to the environment and contribute towards cost savings for our customers,” it said.

source https://www.thesundaily.my/business/public-islamic-bank-launches-go-green-campaign-for-eevs-JJ3830597

Nikkei hits 30-year high in dollar terms as stimulus hopes spur sentiment

TOKYO: Japan's Nikkei share average hit a six-month high on Thursday and reached its highest level in three decades in dollar terms, as hopes of more global and domestic economic stimulus boosted sentiment.

Nikkei rose 0.94% to 23,465.53, its highest close since Feb. 21. Converted to dollars, that put the index at its highest since 1990.

"Coronavirus infections are slowing in many parts of the world as various social distancing and hygienic measures have been taken. So clearly, we can say the economy is improving after a brief lull in August," said Nobuhiko Kuramochi, market strategist at Mizuho Securities.

"The Japanese government is likely to extend support for employment and the U.S. yield curve is not pricing in any hike until 2024, prompting investors to buy risk assets," he added.

The broader Topix rose 0.48% to 1,631.24, a six-month high.

Fast Retailing, which has a heavier weighting on the Nikkei compared to Topix, rose 3.6% after reporting strong domestic sales for August.

Semiconductor-related shares also climbed, with Shin-etsu Chemical, manufacturer of semiconductor wafers, rising 3.7% and small motor maker Nidec gaining 1.8%.

Game maker Nintendo rose 1.6% to a 12-year high.

Cable TV operator Sky Perfect JSAT Holdings soared 15.7% after posting a surprise jump in profit, partly due to a fall in costs as the cancellation of various professional sports events led to lower payments for broadcast rights.

SBI Holdings rose 5.7% after a media report said its president discussed a plan to extend a union on regional banks it leads to about 10 banks.

Japan's Chief Cabinet Secretary Yoshihide Suga, who looks set to succeed Prime Minister Shinzo Abe, said there were too many regional banks, fanning expectations he would push for consolidations.

Fukushima Bank jumped 21.6%, while Daito Bank rose 10.0% and Tsukuba Bank gained 8.4%. - Reuters

source https://www.thesundaily.my/business/nikkei-hits-30-year-high-in-dollar-terms-as-stimulus-hopes-spur-sentiment-AN3825651

Eyes on the future with Taiwanese medical technology

PETALING JAYA: The increasing demand for ophthalmic medical materials driven by rising global elderly population has propelled Taiwan’s advancement of ICT into new ophthalmology technologies.

Taiwan External Trade Development Council (Taitra) president and CEO Walter Yeh lauded Taiwan’s ophthalmic medical equipment industry that has grown steadily in recent years, with a turnover of US$7 billion (RM29 billion).

“We firmly believe that Taiwan is capable of providing superior quality medical services to the world. The global ophthalmic medical equipment market is estimated to reach US$58.4 billion by 2023,“ he said at the “Smart Medical Express: Eyes on the Future” Taiwan Excellence online product launch on Wednesday, which showcased the latest Taiwanese ophthalmic medical technologies.

The auxiliary and remedial category, the so-called “contact lens industry”, has the most outstanding performance. Its export ratio is about 75%, reaching NT$12.6 billion and accounting for global sales of 1.53%. Diagnostics equipment accounts for 0.3% of global turnover, combining technologies including optics, electronics, motors, and big data calculations.

“Taiwan is highly proficient in ICT technology, and with this significant advantage, our ophthalmology industry has great potential. As a trusted world partner, Taiwan Excellence upholds the spirit of innovation by selecting products that best represent the image of Taiwan’s industries,“ added Yeh.

Jointly organised by Taiwan’s Bureau of Foreign Trade and Taitra, the online product launch featured four Taiwan Excellence Award winners, including Crystalvue Medical Corp, Medimaging Integrated Solution Inc, BenQ Materials Corp and In-Trust Technology Co Ltd.

The non-mydriatic auto fundus camera from Crystalvue provides real-time health report of the retina and the eyes. It is equipped with automatic 3D tracking and focusing, and can capture images with just one click.

The 5MP Eye Care Total Solution from Medimaging allows switching of the lenses to become eye surface camera, eye anterior camera and eye fundus camera, making it easy for optometrists to do a diagnostic.

Miacare Confidence daily colour contact lens from BenQ transforms the conventional silicone molecules into hydrophilic structures without using any solvent treatment to form a hydrophilic film.

The Aurai hot & cool eye massager from In-Trust is the first in the world to use water circulation and water wave massage to reduce intraocular pressure without risk of harm.

“Taiwan Excellence award-winning products showcase the best of Taiwan’s industries, which provide smart solutions for our daily lives,“ said Yeh.

More events focusing on medical products, including dentistry and assistance devices for the elderly, will be held in the coming weeks.

source https://www.thesundaily.my/business/eyes-on-the-future-with-taiwanese-medical-technology-CM3824172

BOJ’s Kataoka urges bolder easing to battle deflation risk

TOKYO: The Bank of Japan must take bolder monetary easing steps to fight the heightening risk of deflation, board member Goushi Kataoka said on Thursday, warning of a darkening outlook for consumption and capital expenditure from the pandemic.

The BOJ must buy government bonds aggressively and make clear it is ready to cut interest rates further to ease the burden on households and firms, said Kataoka, among the most dovish in outlook of the policymakers in the nine-member board.

The central bank should also strengthen its commitment to combat deflation by setting specific conditions under which it will ramp up stimulus, Kataoka said.

"By taking action to show our determination we won't tolerate deflation, we can improve the credibility of our price target," he said in a speech to business leaders in Okinawa, southern Japan.

Kataoka has been a lone dissenter to the BOJ's decisions to maintain its interest rate targets, arguing that rate cuts are needed to pre-empt rising deflationary pressure.

The coronavirus pandemic has deepened Japan's recession and heightens challenges for the new prime minister, who is set to succeed incumbent Shinzo Abe later this month after Abe's abrupt decision to step down.

Kataoka said the hit to demand from COVID-19 was weighing on consumption and inflation, making it hard to expect price growth to accelerate toward the BOJ's 2% target.

"The job market is worsening due to the pandemic, which will drag on consumption," he said, adding that capital expenditure was also starting to fall.

"If the pandemic's impact is prolonged and hurts companies' medium- to long-term growth expectations, they may be forced to slash future demand projections and adjust capital spending plans," Kataoka said. - Reuters

source https://www.thesundaily.my/business/boj-s-kataoka-urges-bolder-easing-to-battle-deflation-risk-EG3822060

Fed’s Daly sees ‘no pressing need’ for further rate guidance

San Francisco Federal Reserve President Mary Daly on Wednesday signaled no urgent need to ease monetary policy further, saying markets and households understand borrowing costs will stay low until inflation accelerates and employment returns to healthier levels.

"I don't see a pressing need in terms of a misalignment of expectations relative to our policy," Daly said in a question-and-answer session with reporters.

A new policy framework released last week, promising the Fed will address "shortfalls" in employment and aim to push inflation moderately above 2%, went "a long way" in setting those expectations, she said.

Her remarks pushed back on the view expressed this week by former Fed chairs Ben Bernanke and Janet Yellen that the U.S. central bank will need to follow up its framework soon with clearer guidance on how long it will keep interest rates low, and how much bond-buying it intends to do.

Some analysts have also faulted the Fed for not spelling out in its new framework how much of an inflation overshoot the Fed will tolerate, or for how long.

Daly said it is that very vagueness that allows the Fed to adjust policy as needed.

"What I really want to push away from is this idea that there's a rule," she said. "I don't have a specific number in mind because to me that would tie me up and constrain me."

The Fed next meets to set policy in mid-September.

Daly acknowledged "we can always do more forward guidance" and bond-buying when the economy actually could benefit from the boost.

Right now, she said, the labor market is in a "deep hole" after massive job loss during the pandemic shutdown, and cannot fully recover until the virus is better controlled.

Congress needs to take "forceful action" to provide fiscal aid, she said. - Reuters

source https://www.thesundaily.my/business/fed-s-daly-sees-no-pressing-need-for-further-rate-guidance-HJ3821797

Anchanto aims to enchant traditional logistics players with its warehouse management system Wareo

PETALING JAYA: Anchanto aims to assist traditional logistics players embrace digital solutions for e-commerce with its warehouse management system (eWMS), Wareo.

Its founder and CEO, Vaibhav Dabhade (pix) observed that the majority of logistics players relied on inventory management systems, order management systems or other traditional enterprise resource planning solutions for all their logistics needs, while a minority employed outdated eWMS solutions.

“What they need to understand is that they need a comprehensive solution/system that can cater to all their requirements at once, while aligning with their existing processes and workflows,” he told SunBiz in a recent interview.

With that in mind, Dabhade said, Wareo was built to cater to the current environment, where the system interfaces with multiple software applications to ensure the best productivity from the operations team.

Hence, the solutions are able to furnish businesses such as third party logistics (3PLs), warehousing, brands, e-distributors, service providers and postal associations with e-commerce capabilities.

He said Wareo offers ready integration with the rest of the ecosystem partners that ship the orders, with over 35 last-mile delivery companies to facilitate seamless shipping for warehouse operators.

In addition, Wareo has ready integrations with leading marketplaces such as Lazada, Zalora, Shopee, PrestoMall, Etsy and eBay, among others.

This year, Anchanto has expanded into Australia, New Zealand, Thailand, Korea and Hong Kong, in addition to its existing markets in Malaysia, Singapore, the Philippines, Indonesia and India.

Dabhade said the decision to enter a new market centres on its e-commerce growth trends and potential.

“Another important factor is the cross-border e-commerce & import-export potential in the region,” Dabhade said.

“For instance, cosmetics from Korea are quite popular across multiple markets in Southeast Asia and Australia. Similarly, there is heavy demand for Australian wine, dairy products and health supplements in China.”

Moving forward, Anchanto has set a target for itself in 2020, which is to hit a threefold increase in its revenue from the previous year.

“Due to the recent outbreak of Covid-19 pandemic, we are facing challenges to schedule meetings & meet potential customers,” said Vaibhav, explaining that building close relationships are the key to its success and event cancellations have hindered them from building such relationships.

Despite the setbacks, he is quite confident of achieving its ambitious target, as the startup has rolled out upgrades for its platform, SelluSeller.

“Moreover, we are continuously hiring new team members to join us across our offices in India, Singapore, Malaysia, Australia, Indonesia and Philippines and we are also working to launch two new products this year.

“With a massively upgraded platform, team members, and new senior leadership onboard, we are confident of achieving our targets, and offering an enchanting experience to all our customers,” he said.

For the future, Dabhade said Anchanto is exploring new markets and potential partners across the Middle East, North Africa, North America and Europe.

source https://www.thesundaily.my/business/anchanto-aims-to-enchant-traditional-logistics-players-with-its-warehouse-management-system-wareo-BX3808517

Weak Q2 corporate earnings not a surprise to analysts

PETALING JAYA: Weak second-quarter earnings reported by Bursa Malaysia-listed companies are not surprising, according to analysts, as the three-month period coincided with disruptions to the economy attributed to the Covid-19 pandemic and the containment measures.

Despite the poor results, Public Investment Bank (PIVB) Research said, the market is likely to have seen the worst, barring a second wave of coronavirus infections, which could lead to targeted shutdowns.

For the second quarter, earnings disappointments were aplenty, although it thought that post-first-quarter earnings reductions were already sufficiently accounted for.

PIVB Research listed sectors most vulnerable to “economic standstills” such as banks, property, real estate investment trusts, airlines and gaming as the standouts.

With that, the research house has revised its growth assumption for 2020 and 2021 to -21.4% and +26.2% from its first-quarter estimate of -12.8% and +15.9%, respectively, due to prevailing weak conditions.

“While adjustments to earnings this current quarter should result in a reduction of our end-2020 FBM KLCI target to 1,430 points, we are maintaining our expectation of a 1,480-point closing this year-end owing to liquidity-driven ‘exuberances’,” it said in a report.

PIVB Research elaborated that the market appears to be still underpinned by expectations at this juncture, such as a V-shaped recovery in earnings and in economic growth.

“The flush liquidity amid interest rates which have been cut to all-time lows, conditions we last saw in 2008/2009, is feeding the hunger for investment returns, hence the market not reacting particularly negatively to supposedly ‘bad’ earnings reports, this quarter and the last (1Q’20).”

In terms of its sector picks, the research house said manufacturing, banks, construction and power (renewables) may garner interest in 2021.

“For stocks, we retain our preference for smaller-capitalised names with strong growth stories, near-term challenges notwithstanding, namely Johore Tin, Magni-Tech Industries, Mega First, Sarawak Plantations, Serba Dinamik, SKP Resources, Chin Hin Group and D&O Green Technologies,” it said.

CGS-CIMB, however, has lowered its end-2020 FBM KLCI target to 1,520 points, from 1,550 points previously, to reflect earnings downgrades made during the results season.

For the second quarter of the year, it has seen companies that posted results above its expectations rise to 25% from 13% in first-quarter 2020, as well as a lower share of underperformers of 36% from 44% in the previous quarter out of 130 companies it actively covers.

The research house revealed that its key takeaways for the results season were the improving earnings revision ratio attributed to higher overachievers in the quarter, the 56% year-on-year decline in corporate earnings due to the movement control order, and interim dividends were mostly below expectation for banks.

CGS-CIMB noted that most of the companies that were loss-making were in the airline, auto, construction, property, media and gaming sectors.

“Following our latest earnings revisions, we now expect the KLCI’s 2020 core net profit to decline by 16% (vs 11% previously), as we adjust for earnings downgrades in the Genting Group, Tenaga, MISC and IHH,” it said.

“We expect corporate earnings to be stronger quarter-on-quarter in 3Q’20F and in 2H’20F, as earnings recover from the lockdown due to pent-up demand, rebuilding of inventory and stimulus measures.”

For its top three picks, the research house has replaced Top Glove with Public Bank and Yinson with MPI, while retaining Tenaga Nasional, to reflect its view that investors are likely to rotate in the later part of the year to cyclical sectors which will benefit from the recovering economy post-Covid-19.

Its top picks also include IJM Corp, KPJ Healthcare, MPI, Pentamaster, Petronas Gas, and Ta Ann.

source https://www.thesundaily.my/business/weak-q2-corporate-earnings-not-a-surprise-to-analysts-HK3804955