Summary of business stories from June 14 to 21

Summary of business stories from June 14 to 21

Economy

EPF launches e-Payroll for employers

• The Employees Provident Fund (EPF) has launched e-Payroll, an enhancement of the i-Akaun (employer) portal, as it leverages on digital technology to help facilitate employers’ statutory obligations, including EPF contribution.
• The EPF said this initiative is in line with EPF’s objectives of helping employers, particularly small-medium enterprises (SMEs), fulfill their obligations to employees while making it easier and seamless for them to operate their businesses.
• The e-Payroll also enables employers to digitally store the records of their employees including that of salary and also reduce the time needed to manage activities related to statutory obligations.

Reversing the decline among M40

• More than 600, 000 households from the middle 40% (M40) income group have slipped into the bottom 40% (B40) category as the Covid-19 crisis delivered a major blow on Malaysians’ income level, according to the Economic Action Council (EAC) secretariat.
• The secretariat outlined eight reset agendas, 30 focus areas and 153 reset initiatives as part of its months-long study on aligning the country to the new economic landscape.
• Among the eight reset agendas are embracing the digital economy; promoting technology adoption and advancement; positioning for a shifting global landscape; as well as promoting shared responsibility, good governance and sustainability.

Corporate News

Serba Dinamik appoints EY as independent reviewer, shares jump

• Serba Dinamik Holdings Bhd’s share price surged to a high of 75.5 sen in afternoon trade on Monday board of directors has agreed in principle, to appoint Ernst & Young Advisory Services Sdn Bhd as the independent reviewer.
• At 3.28pm, its share price was up seven sen to 67.5 sen with 854m shares done.
• Meanwhile, Serba Dinamik announced several independent directors. They are Masleena Zaid, Datuk Mohamed Ilyas Pakeer Mohamed and Johan Mohamed Ishak.

MICG: EY advice limited to issues raised by KPMG in Serba Dinamik audit

• The Malaysian Institute of Corporate Governance (MICG) states the scope of independent advice to be given by Ernst & Young Advisory Services Sdn Bhd to Serba Dinamik should be limited to issues raised by external auditor KPMG PLT.
• MICG deputy president David W. Berry said on Tuesday the key factor will be the scope of the advice sought, which should be restricted to the specific audit issues raised by KPMG.
• “The independent EY opinion should apply the same professional standards expected of any auditor in assessing its stance on those audit issues. Any difference will be in the weight given to the surrounding factors. This should not involve a full re-audit of the company, ” he said in a statement.

BCorp goes on consumer path

• PETALING JAYA: Berjaya Corp Bhd (BCorp) will be undergoing a reorganisation into five main business sectors as it morphs into a consumer group from its existing conglomerate status.
• The business segments will be reorganised under retail, food and beverage, property, hospitality, and services, each to be led by respective sector heads with oversight from the group chief executive officer Jalil Rasheed.
• The strategic plan will anchor around five key pillars to drive operational efficiency and execution namely profitability, governance, process, people and digital.

Commodities

China to release national reserves of copper, aluminium and zinc

• BEIJING/HANOI: China said on Wednesday it will release national reserves of some base metals over the near term, as the world’s top metals consumer tries to stabilise the price of critical commodities.
• The notice came as Beijing struggles to cool its red-hot metals sector, which has seen prices surge this year fuelled by a post-pandemic economic recovery, ample global liquidity and pockets of speculative buying.
• Chinese factory gate inflation shot to the highest in over 12 years in May, cutting into firms’ profit margins and highlighting global price pressures at a time when policymakers are trying to revitalise COVID-hit growth.

Malaysian palm oil ends at over four-month low

• Malaysian palm oil futures ended at a more than four-month low on Monday, extending losses for a sixth straight session, hurt by a fall in Indonesian exports and weaker soyoil prices.
• The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange fell RM285, or 7.8%, to RM3, 378 ($821.30) a tonne, its lowest since Feb. 5.
• CBOT soyoil prices fell 3.4% to their lowest in nearly four months.

Retail

Lotus’s Malaysia launches flagship stores in Penang, Johor

• Lotuss Stores (Malaysia) Sdn Bhd (Lotus’s Malaysia), formerly known as Tesco Stores (Malaysia) Sdn Bhd), has launched its second and third flagship stores, Lotus’s Penang E-Gate (Penang) and Lotus’s Desa Tebrau (Johor), yesterday.
• Lotus’s Malaysia is a new brand that comes out from the acquisition of Tesco Malaysia by Thailand-based multinational conglomerate, Charoen Pokphand Group Co Ltd (CP Group), last December.
• Through the acquisition, Lotus’s Malaysia now assumes Tesco’s existing operations which include employing over 8,600 employees across one head office, two distribution centres, and 62 stores throughout Peninsular Malaysia.

Automotive

Proton exported 669 cars in May, highest since March 2013

• Proton Holdings Bhd exported 669 cars to overseas distributors, the highest in 98 months since March 2013, with new market Pakistan being the best performer, while it plans to return to Thailand and Indonesia.
• Brunei, which started selling Proton vehicles in 1987, was the third biggest export market by volume this year and in May, importers PAD Motors had the best sales month in the company’s history.
• Alpha Ezz El-Arab, the importer and distributor for Proton cars in Egypt, has received 350 units this year, making it Proton’s second largest export market.

Banking

HSBC remains committed to Malaysia, expanding digital banking

• HSBC Bank group has reaffirmed its business commitment to Malaysia as its priority growth market by expanding its digital banking presence and reducing its branch footprint in line with the evolvement of the financial and banking services.
• Having presence in Malaysia since 1884, HSBC Bank Malaysia Bhd said the transformation involves investments in its digital capabilities while making changes to the technology and branch footprint to better serve customers’ expectations and their preferred ways to do businesses.
• HSBC group highlighted that a reflection of this commitment includes HSBC Malaysia’s US$250 million investment in its new Malaysian headquarters in the TRX financial hub.