SoftBank expected to book USD1.87 billion profit on IPOs

Business

November 12, 2024

The logo of SoftBank Group Corp is displayed at SoftBank World 2017 conference in Tokyo, Japan. PHOTO: CNA

CNA – Japanese technology investor SoftBank Group is expected to report a JPY287 billion (USD1.87 billion) quarterly profit yesterday, boosted by successful portfolio company listings and a stronger yen.

Analysts are also looking out for signs of new investment momentum driven by SoftBank’s robust balance sheet and management’s bullish stance on artificial intelligence (AI).

The net profit forecast for July-September is based on the average of four analyst estimates compiled by the London Stock Exchange Group, and compares with a loss of JPY931 billion in the same period last year.

MST analyst David Gibson estimates an investment gain of USD3.9 billion for the quarter, with the IPOs of two Indian companies – Brainbees Solutions and Ola Electric – seen generating income of USD0.9 billion and USD1 billion, respectively.

A drop of around 10 per cent in the value of the dollar versus the yen over the period is expected to boost SoftBank’s bottom line.

Analysts are eagerly awaiting SoftBank’s investment plans, after Founder and Chief Executive Officer Masayoshi Son told an investment summit in Saudi Arabia last month that he was saving tens of billion dollars for the next big move.

The pace of SoftBank’s new investments is already trending upward, reaching USD1.9 billion in the April-June quarter, up from USD0.3 billion in January-March. In early October, SoftBank also joined in the latest funding round for ChatGPT operator OpenAI.

Analysts are particularly interested in SoftBank’s reported efforts to manufacture AI chips to rival market leader Nvidia, potentially through a collaboration between chip designer Arm, in which it holds a 90 per cent stake, and recently acquired chip manufacturer Graphcore.

They note that SoftBank made a deal with Arm to license its intellectual property in the most recent quarter, worth USD43.2 million in revenue, which may be related.

In addition, SoftBank’s sound financial position makes a large-scale investment possible. It’s balance sheet is “near the strongest it has been over the past five years”, wrote Morningstar analyst Dan Baker in a note, adding that both S&P Global Ratings and Japan Credit Rating Agency upgraded their SoftBank credit ratings earlier this year.

Although SoftBank announced a USD3.4 billion share buyback three months ago, this was substantially below what some analysts had called for and leaves ample room for further investment, they added.

Alitalia will lay off over 2,000 remaining employees

Business

November 12, 2024

An Alitalia plane takes off from Sofia airport, Bulgaria. PHOTO: AP

ROME (AP) – Italy’s former national carrier Alitalia has started procedures for the collective dismissal of its remaining 2,059 employees, its administrators told unions.

The move comes as the successor to bankrupt Alitalia, ITA Airways, faces hurdles in its merger plans with German Lufthansa.

According to Italian media reports, merger talks stalled after the Italian Economy Ministry refused Lufthansa’s suggestions to adjust the price for a 41 per cent stake in ITA Airways.

Lufthansa is arguing that the government-owned Italian airline would lose value due to its poor performance in the fourth-quarter of the year.

Lufthansa said it would adhere to the 2023 terms of the contract for its investment in ITA, adding it “had signed the necessary remedy package by the agreed deadline.”

Meanwhile, Alitalia, which is under the special administration and moving toward final liquidation, plans to fire its remaining employees until the end of the year.

The final cuts include more than 1,100 flight attendants and 82 pilots and become effective in January, according to a letter sent this past week by the administration to the airline unions.

Indonesia gives SMEs six-month window for loan forgiveness

Business

November 12, 2024

CNA – Indonesia has opened a six-month window until May 2025 for certain businesses to receive full loan forgiveness from state banks, a policy that aims to boost loan and economic growth, according to details of a new regulation.

Indonesia’s President Prabowo Subianto last week signed off on a government regulation that allows state lenders to fully write off bad debts of certain micro, small, and medium enterprises (MSMEs), which are major contributors to Indonesia’s gross domestic product.

“We hope this could help our brothers and sisters who work in agriculture, MSMEs, and as fishermen who are very important food producers. They can continue their businesses and they can be more useful for the nation,” Prabowo said in a statement.

Prabowo has pledged to lift Indonesia’s annual economic growth by three percentage points to eight per cent under his current presidential term, which will last until 2029. Boosting food production is one of his key programmes.

Ringgit weakens versus US dollar as global uncertainties intensify

Business

November 12, 2024

ANN/THE STAR – The ringgit was traded easier against the US dollar at yesterday’s opening with demand for the greenback improving on the back of global political and economic uncertainties, an economist said.

At 8am, the ringgit weakened to 4.3850/3995 against the US dollar from last Friday’s close of 4.3800/3850.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said market sentiment remained cautious as traders continued to digest its potential impact on the broader economy as the US President-elect will be inaugurated in January next year.

“There is also a sense of frustration over China’s economic stimulus measures announced last week, which fell short of details to boost domestic demand,” he told Bernama.Mohd Afzanizam added that from a technical standpoint, the ringgit is already oversold, indicating that its downside risks are limited.

“However, as market sentiments remain cautious, the demand for the US dollar will continue to remain prevalent with the US Dollar Index (DXY) rising to 105.007,” he said.

Meanwhile, the ringgit was traded mixed against a basket of major currencies.

It rebounded vis-a-vis the British pound to 5.6628/6815 from 5.6943/7255 recorded last Friday, and inched up against the euro at 4.6977/7132 from 4.7347/7606.

China’s ‘Singles Day’ shopping spree in spotlight as spending flags

Business

November 12, 2024

Photos show workers sorting packages for delivery at a JD.com warehouse in Beijing yesterday, known as the Singles Day shopping festival in China. PHOTO: AFP

BEIJING (AFP) – China’s largest online shopping bonanza wrapped up yesterday, with analysts and investors watching for signs that consumption is rebounding in the world’s second-largest economy after recent efforts by Beijing to boost activity.

“Singles Day” – launched by tech giant Alibaba in 2009 – has ballooned into an annual blockbuster period for retail, with days of discounts luring customers to the country’s online shopping platforms.

Its name is a riff on the four ones in its date of November 11, or “11.11” – the tongue-in-cheek celebration of singlehood is a key driver of sales for Alibaba and its main competitor, JD.com.

Neither firm released detailed sales figures on last year’s Singles Day for the second time running, with Alibaba saying only that it recorded growth during the period.

Sluggish domestic consumption is among the top issues now facing policymakers in China, which has struggled to achieve a full post-pandemic recovery.

Beijing has in recent weeks announced a slew of the most aggressive measures in years aimed at bolstering growth, including key rate cuts and increasing the debt limit for local governments.

ABOVE & BELOW: Photos show workers sorting packages for delivery at a JD.com warehouse in Beijing yesterday, known as the Singles Day shopping festival in China. PHOTO: AFP

But many economists argue that in the absence of large-scale fiscal stimulus aimed at encouraging consumer spending, a return to the country’s robust pre-pandemic trajectory may be difficult to attain.

This year’s Singles Day could represent a major boon for retail giants as analysts watch for signs that recent measures are having an impact.

Analysts from the ING banking group said in a note last week that it expects to see “solid growth numbers” during the event, which it said “should comfortably outpace the overall consumption growth momentum”.

Consumer prices in China rose at a slower rate in October, official data showed on Saturday, in a further sign of languid demand.

Singles Day 2024 “is expected to generate over CNY1.2 trillion (USD167 billion) representing a growth of 15 per cent compared to the previous year”, wrote VO2 Asia Pacific, a consultancy specialising in the digital economy.

While the promotional campaigns could be effective in driving short-term sales, managing partner Vincent Marion warned that the strategy could have negative repercussions.

“Many consumers buy in bulk to reach discount thresholds, only to return the products afterward,” said Marion, warning that the practice “erodes profit margins and damages brand perception”.

Alibaba, like its main rival JD.com, withheld sales figures on the Singles Day period for the first time ever in 2022, saying instead that sales were flat from the previous year.

High Court dismisses application to remove defendant’s lawyers in land dispute

National

November 12, 2024

The High Court on October 31 dismissed an application by plaintiffs seeking to disqualify the defendant’s lawyers, Yusof Halim and Partners (YHP), from acting in a complex land development dispute in Mukim Kilanas.

The plaintiffs argued that YHP’s involvement constituted a conflict of interest, asserting that YHP had previously represented them in related proceedings, creating potential ethical and procedural issues under the Legal Profession (Professional Conduct and Etiquette) Rules, 2013.

The case, heard by Justice Edward Timothy Starbuck Woolley, stemmed from a 2009 development agreement, in which the plaintiffs, beneficiaries of the disputed land, had initially relied on YHP’s predecessor firm, Messrs Cheok Sankaran Halim, to assist in reclaiming the land from a relative.

The plaintiffs, Mahdi bin Haji Suhaili; Mohammad Sa’adon Suhaili bin Md Shafi’ee; Mas Suhaili Zahrah binti Md Shafi’ee; Mohamad Same’on Suhaili bin Md Shafi’ee; Mohamad Sofian bin Haji Bujang; Sa’adah @ Netty binti Haji Bujang; Selamah binti Haji Bujang; and Netty Rozaina binti Haji Bujang, alleged YHP’s past involvement raised concerns over impartiality and independence in their current representation of the defendant, Syarikat Perusahaan Sinar Hijau Sdn Bhd.

The plaintiffs’ counsel, Wong Mew Sum of Abrahams, Davidson and Co, contended that YHP’s past role could compromise their ability to act independently, highlighting specific instances where YHP members, including Geraldine Tech and Eugene Loh, might be called as witnesses.

This, the plaintiffs argued, would contravene Rules 27 and 28, which prohibit legal representatives from acting when they may become witnesses on contentious matters.

However, Brandon Chin Wei Chun, representing YHP, countered that the plaintiffs had no separate legal counsel at the time, and YHP’s role was limited to facilitating the development agreement. He emphasised that YHP’s involvement was both consensual and beneficial to all parties then, with no apparent conflict until the recent application.

In his ruling, Justice Woolley noted the significant passage of time – 18 years – since YHP’s initial representation, and ruled that the plaintiffs’ delayed objection barred their complaint.

Additionally, he found no sufficient conflict of interest, as YHP’s prior assistance was mutually beneficial and procedural rather than adversarial.

“The plaintiffs did not raise any issue regarding YHP’s involvement until recently,” Justice Woolley noted. “The delay in filing this application weakens their argument.”

Justice Woolley concluded that requiring YHP to withdraw would be unwarranted as the grounds did not substantiate a breach of the Legal Profession Rules. The case will proceed with YHP retained as counsel for the defendant.

Justice Woolley also ordered costs to be awarded to the defendant. – Fadley Faisal

Five Indonesian nationals sentenced for immigration offences

National

November 12, 2024

The Immigration and National Registration Department (INRD) produced five Indonesian nationals in the Magistrate’s Court for immigration offences, following enforcement actions under Operation Kabat III/2024 conducted by the Kuala Belait branch.

Three of the individuals – Samsodin, 41; Dedi Setiawan, 26; and Andi Purwanto, 29 – were sentenced to five months’ imprisonment and three caning after pleading guilty to overstaying after their immigration passes expired.

Another defendant, Ahmad Saekhoni, 51, also received a five-month prison sentence for the same offence. However, he was exempted from caning. Meanwhile, Samroni, 51, was fined BND3,500, or serve three months’ imprisonment if he fails to pay.

The department encourages the public to report any immigration offenders by contacting INRD’s hotline at 8734888 / 8753888 (Bandar Seri Begawan) or 8984111 (Kuala Belait). – Fadley Faisal

LegCo member calls for strong support for elderly

National

November 12, 2024

Legislative Council members Yang Berhormat Haji Mohd Salleh bin Haji Othman and Yang Berhormat Mohammad bin Abdullah @ Lim Swee Ann in a group photo with Acting Belait District Officer Haji Amirol Hafidzin bin Haji Muhammad and the award recipients and guests. PHOTOS: DANIEL LIM

Legislative Council (LegCo) member Yang Berhormat Haji Mohd Salleh bin Haji Othman, who is also the Penghulu of Mukim Bukit Sawat, highlighted that the empowerment of the elderly is a priority for the sustainability of the nation’s future. He said this during the annual International Day of Older Persons (IDOP) celebration at Kampong Sungai Mau Recreational Park on Sunday.

“The elderly have the right to enjoy equal rights regardless of background, through support in terms of healthcare, welfare and socioeconomic. The celebration is one of the platforms to pay respect and appreciation to the elderly, especially those living in Mukim Bukit Sawat,” said the LegCo member.

In line with this year’s theme for IDOP – ‘Ageing with Dignity: The Importance of Strengthening Care and Support Systems for Older Persons Worldwide’, Yang Berhormat Haji Mohd Salleh hoped that the elderly will continue to be proactive and enthusiastic with the contributions in the form of thoughts and advice that can be given in the nation’s development and growth.

“This can include being active in activities ranging from religious, educational, social, and socio-economy, while at the same time taking care of their health by practising a healthy lifestyle.”

The LegCo member also expressed gratitude to Chai Yum Fatt from Asia Enterprise, the Department of Environment, Parks and Recreation, and the Mukim and Village Consultative Council (MPMK) of Bukit Sawat for supporting the celebration.

The event proceeded with the senior citizens receiving gifts as well as the presentation of awards to Haji Mohd Hassan bin Opak for being the oldest senior citizen among the attendees at 93 years old.

Md Azman bin Abdullah and Asrat bin Amit received awards for being the most active senior citizens. Meanwhile, Siti Rasinah binti Abdullah Beniu and Sulong bin Nangkat both received awards for being the healthiest elderly. Mohd Husaini bin Haji Bolhassan and Haji Zunaidi bin Teradi received awards for being the most meritorious. Over 160 senior citizens from across the rural area of Belait District participated in the celebration.

Acting Belait District Officer Haji Amirol Hafidzin bin Haji Muhammad was the guest of honour. He along with the senior citizens and guests were welcomed by LegCo members Yang Berhormat Haji Mohd Salleh and Yang Berhormat Mohammad bin Abdullah @ Lim Swee Ann, who is also the Village Head of Kampong Bukit Sawat. – Daniel Lim

ABOVE & BELOW: The acting Belait District officer hands over gifts to the senior citizens; and a token of appreciation to Chai Yum Fatt from Asia Enterprise. PHOTO: DANIEL LIM

Focus on improving special education teachers skills

National

November 12, 2024

ABOVE & BELOW: Permanent Secretary (Core Education) at the Ministry of Education Dr Shamsiah Zuraini Kanchanawati binti Haji Tajuddin at the seminar; and an exhibition showcasing sign language. PHOTO: MUIZ MATDANI

Efforts to improve the competence of teachers in special education – especially for hearing and sign language – were made at the launch of the National Seminar on Special Education for Hearing and Sign Language Workshop at the Balai Khazanah Islam Sultan Haji Hassanal Bolkiah yesterday.

Department of Special Education Acting Director Dr Eddy Fazlin bin Haji Amdan, in his opening remarks, said, “The Ministry of Education (MoE) has implemented the Inclusive Education Policy since 1997, enabling students with special needs to learn together with their peers following mainstream learning or special education in government schools and private educational institutions.”

He added, “Alhamdulillah, 2,282 students with special needs have had the opportunity to study in the government’s primary, secondary and higher education institutions.

“Of that number, 209 students are students with special hearing needs with various levels of hearing impairment. Various initiatives and efforts have been implemented by the MoE through the Department of Special Education. These include a series of basic sign language workshops for teachers, students and parents. Also included are the provision of hearing aid and the construction of digital learning resources to help students with special hearing needs gain access to knowledge, be able to follow school activities and achieve excellence in learning as outlined in the special education framework guided by the APA principles – Access, Participate and Achieve apart from the 5A principles which are Accessibility, Adapted Curriculum, Adapted Instruction, Adapted Assessment and Acceptance.

“This effort reflects MoE’s high commitment in implementing the Inclusive Education Policy in line with the Compulsory Education Act to ensure that all children aged five have access to education. Therefore, the Department of Special Education will always be diligent and active in planning and providing suitable facilities and programmes to strengthen this inclusive effort.”

The acting director said, “One of the challenges faced by teachers is the lack of knowledge about hearing problems, effective teaching approaches, and the ability to communicate, especially in sign language, to help students understand the lesson well.

“Therefore, it is hoped that the seminar and workshop will be able to build and improve the competence of the participants who are teachers in special education for hearing and sign language, in line with the goal of achieving inclusive education for all students, especially those who experience difficulties in learning due to hearing problems.”

He added, “This matter is also in line with the MoE’s Strategic Plan 2023-2027 Goal 3, to build and increase highly skilled human resources in creating future ready students.”

Throughout the three-day seminar and workshop, participants will explore effective teaching strategies, participate in activities, and learn sign language as an important communication method in creating a conducive inclusive classroom environment especially for students with special hearing needs.

Permanent Secretary (Core Education) at the MoE Dr Shamsiah Zuraini Kanchanawati binti Haji Tajuddin was the guest of honour. – Fadhil Yunus

Fire affected family receives support

National

November 12, 2024

Siti Nabilah binti Haji Mohd Hamdi receiving the donation. PHOTO: LYNA MOHAMAD

Siti Nabilah binti Haji Mohd Hamdi, a victim of a fire in Kampong Mata-Mata was grateful after Aifa Sdn Bhd donated electrical appliances to replace her damaged items.

Aifa’s Managing Director Dr Andy Lau, along with Assistant Manager Ming Lau and Social Media Manager Hope Chung personally delivered an air conditioner, a smart TV, a refrigerator and a pressure washer.

Dr Andy Lau and his staff had visited the affected households to send condolences, understand the situation and to assist the family in the aftermath. He said he learned of the fire from social media and found the household used Aifa electrical products.

“This is our company’s contribution as our corporate social responsibility, and we would like to thank everyone for their support. I also hope that they can get out of the difficulties as soon as possible and move on with their daily life,” he said.

According to Siti Nabilah, the house where she and her family of nine including her husband Mohammad Ashviranni bin Haji Mat Sani lived, was damaged by the October 14 fire at around 7am. – Lyna Mohamad

Borneo Bulletin OnlineThe Independent Newspaper in Brunei Darussalam, Sabah and Sarawak

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