EVENING 5: Cash incentives for employers under progressive wage scheme

The Edge TV

In today’s edition of Evening 5 — Employers who opt for Putrajaya’s progressive wage scheme will be eligible for cash incentives. Meanwhile, Malaysia Marine and Heavy Engineering Holdings reports its second straight quarterly loss.

Transcript

00:00 [Music]

00:04 Economy Minister Rafizi Romli said Putrajaya's proposed progressive wage model

00:09 will be voluntary and employ a carrot-and-stick approach.

00:13 According to the minister, if employers choose to opt-in and pay their staff according to prescribed rates,

00:19 based on sector and skill level, they will be eligible for specific cash incentives.

00:24 In addition, employees placed under the progressive wage scheme

00:28 will be required to undergo specific skills training to enhance their abilities.

00:33 Rafizi said this in the Dewan Rakyat today.

00:36 As for the stick approach, he said that if employers choose to opt-out of the scheme,

00:41 they may find it difficult to attract talent.

00:43 Further details about the progressive wage model will be disclosed

00:47 when the ministry presents a white paper to Parliament on November 30.

00:51 According to the first quarter of 2023 formal sector wages report by the Statistics Department,

00:58 the median monthly wage in March 2023 for Malaysian formal employees was RM2,600.

01:05 [Music]

01:10 Malaysia Marine and Heavy Engineering Holdings, or MHB, incurred a net loss of RM105.21 million

01:17 for the third quarter of FY2023, as costs in its existing projects rise.

01:23 It booked earnings of RM15.95 million in the corresponding period last year.

01:29 This is the second straight quarterly loss for the group,

01:32 which warns its heavy engineering and marine businesses will remain challenging.

01:36 The net loss came in spite of MHB recording 56% growth in its revenue for the third quarter of FY2023

01:44 to RM638.47 million.

01:47 Going forward, its outgoing MD and CEO, Pandai Othman, said

01:51 the group will improve contracting strategies with clients through alliance concepts

01:56 or cost-plus basis where possible to mitigate the risks of global inflation for future projects.

02:02 As winter approaches, demand for energy shipment is expected to rise

02:07 and demand for dry docking activities is likely to be slower,

02:11 potentially leading to a decrease in market share.

02:14 Meanwhile, competition among shipyards is expected to remain stiff.

02:18 MHB shares fell 7.6% to RM49, valuing it at RM784 million.

02:26 Dofama Biotech said its third quarter FY2023 earnings almost halved,

02:36 with bottom line shrinking by 45% to RM8.97 million,

02:41 while top line fell 4% to RM169.24 million,

02:46 dragged by increased operational costs and falling demand from the consumer healthcare sector, among others.

02:52 In comparison with the immediate preceding quarter,

02:56 net profit was down from RM12.54 million,

02:59 while revenue edged up from RM167.52 million.

03:04 Commenting on the group's financial performance, its MD, Leonard Arif Abdul Shattah, said

03:09 the gradual revenue improvement, registered on a monthly basis, augurs well in the longer term,

03:15 as Dofama continues to strengthen its portfolio with high-value innovative offerings and niche products.

03:22 He said the group is also heartened by the government's record allocation

03:26 of RM41.2 billion in Budget 2024 for healthcare funding,

03:31 and said this increase will enable essential reforms in the healthcare system

03:36 and stimulate demand growth for pharmaceutical supplies.

03:40 Dofama's shares fell 1.6% to RM1.22, valuing it at RM1.17 billion.

03:48 The Kuala Lumpur High Court will decide tomorrow whether Muah lawmaker,

03:56 side Saddiq, side Abdul Rahman, is guilty of graft.

04:00 The Mudah president is facing four charges of abetting in criminal breach of trust,

04:05 misappropriation of property and money laundering in connection to funds

04:09 belonging to Bersatu's youth wing, Armada, which he previously headed.

04:14 Judge Dato Azhar Abdul Hamid is scheduled to deliver his judgement at 9am.

04:19 Side Saddiq was charged with abetting ex-Bersatu Armada assistant treasurer, Rafiq Hakim Rezali,

04:25 who was entrusted with RM1 million of party funds

04:29 to commit a criminal breach of trust by misappropriating the money.

04:33 The former youth and sports minister is also accused of pilfering RM120,000

04:39 from Armada Bumi Bersatu Enterprises' bank account

04:42 and laundering RM100,000 believed to be proceeds from unlawful activities.

04:48 The trial started on June 21, 2022 and involved 30 prosecution witnesses,

04:54 including Rafiq, side Saddiq's parents and MACC officers.

05:04 Most analysts are still cautious on Hartalega Holdings, despite its better-than-expected

05:10 quarterly financial results, as they expect the glove maker to continue facing headwinds

05:15 for the rest of the year.

05:17 HLIB Research, which kept its sell call on the glove maker, said in a note today that

05:22 Hartalega could still possibly report losses for the next two quarters, given the fluid situation.

05:28 It did, however, revise its target price upwards to RM2.08.

05:32 Meanwhile, Kenanga Research kept its market perform call and raised its target price to

05:37 RM2.33 from RM1.85 previously.

05:41 It forecast a RM42 million net profit for FY2024 from a RM105 million loss initially

05:49 and raised its FY2025 net profit forecast by 92%.

05:54 Over at MIDF Research, the counter was upgraded from sell to neutral,

05:58 with a higher target price of RM2.20 from RM1.66 previously.

06:04 The research house said it is still wary about the outlook for average selling prices,

06:08 though it expects an increase in sales volume and the utilisation rate,

06:13 while the complete decommissioning of the Bestari Jaya facility should bode well for the group.

06:18 At the close, Hartalega's shares added 2.6% to RM2.39,

06:23 translating into a market capitalisation of RM8.19 billion.

06:28 [Music]

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