Latest news with #RM3bil
The Star
5 days ago
- Business
- The Star
Trial opens against Meta CEO Mark Zuckerberg and other leaders over Facebook privacy violations
Investors allege in their lawsuit that Meta did not fully disclose the risks that Facebook users' personal information would be misused by Cambridge Analytica. — Photo by Shutter Speed on Unsplash WILMINGTON: An US$8bil (RM33.9bil) class action investors' lawsuit against Meta CEO Mark Zuckerberg and company leaders – current and former – began Wednesday, with claims stemming from the 2018 privacy scandal involving the Cambridge Analytica political consulting firm. Investors allege in their lawsuit that Meta did not fully disclose the risks that Facebook users' personal information would be misused by Cambridge Analytica, a firm that supported Donald Trump's successful Republican presidential campaign in 2016. Shareholders say Facebook officials repeatedly and continually violated a 2012 consent order with the Federal Trade Commission under which Facebook agreed to stop collecting and sharing personal data on platform users and friends without their consent. Facebook later sold user data to commercial partners in direct violation of the consent order and removed disclosures from privacy settings that were required under consent order, the lawsuit alleges. The fallout led to Facebook agreeing to pay a US$5.1bil (RM21.6bil) penalty to settle FTC charges. The social media giant also faced significant fines in Europe and reached a US$725mil (RM3bil) privacy settlement with users. Now shareholders want Zuckerberg and others to reimburse Meta for the FTC fine and other legal costs, which the plaintiffs estimate total more than US$8bil (RM33.9bil). The first trial witness, privacy expert Neil Richards, testified Monday morning for the shareholders. "Facebook's privacy disclosures were misleading,' said Richards, a professor at Washington University Law School. In later testimony, Jeffrey Zients, who served on Facebook's board from 2018 to 2020, testified that consumer privacy and user data were priorities for both management and the board. Nonetheless, he supported settling with the FTC as it investigated potential violations of the 2012 consent order, so the company could move forward. "It was difficult because this was a lot of money, but I think it was better than the alternative,' Zients said. Asked if the board considered making its founder a party to the settlement, he said Zuckerberg was "essential' to running the company. And, Zients, who served in both the Obama and Biden administrations, said, "there was no indication that he had done anything wrong.' The case is expected to run through late next week and include testimony from both Zuckerberg and former Chief Operating Officer Sheryl Sandberg. Other witnesses expected in Delaware Chancery Court, where Facebook parent Meta Platforms Inc. is incorporated, include board member Marc Andreessen and former board member Peter Thiel. The judge is not expected to rule for several months. Meta had hoped the Supreme Court would dismiss the case. Justices heard arguments in November before deciding they should not have taken it up. The high court dismissed the company's appeal, leaving in place an appellate ruling allowing the case to go forward. – AP
The Star
5 days ago
- Business
- The Star
Market sentiment weighs on Bursa earnings
PETALING JAYA: A lower average daily value (ADV) of trading activity is expected to weigh on stock exchange operator Bursa Malaysia Bhd 's net profit for the second quarter ended June 30, 2025 (2Q25). Kenanga Research, which has maintained a 'market perform' call on the stock with a higher target price of RM8 from RM7.80, said the ADV for 2Q25 of RM2.29bil came in below its expectations of RM3bil. It noted that 2Q25 ADV declined 13% from 1Q25 and was a 37% decrease from the same quarter a year ago. The research house pointed to the impact on market sentiment from shifting developments on US tariffs. 'This had particularly undermined sentiment for semiconductor industries. Meanwhile, prolonged conflicts in the Middle East left mixed reactions between oil and gas counters and port operators,' it added. It expects 2Q25 net profit of RM59mil to RM65mil, which would be 10% below 1Q25 and 23% below the same quarter a year ago on the sequentially lower ADV dragging total revenue from securities, which makes up half of total operating revenue. It has also cut forecast ADV to RM2.53bil for the financial year ending Dec 31, 2025 (FY25) from RM2.91bil previously. 'We also trim our FY26 ADV to RM2.85b (5% below RM3bil) in anticipation for uncertainties to persist. Following these adjustments we cut our FY25/FY26 earnings by 8%/3%,' it added. Kenanga Research expects trading sentiment for the second half of the year to continue seeing weakness, with market participants being watchful of certain dates such as US Federal Open Market Committee meetings, particularly on July 30 and Sept 17 that could set the tone for US Fed movements, the Aug 1 deadline for US tariffs and Aug 15 for Malaysia's 2Q25 gross domestic product, it said, adding that other concerns were inflationary impact from the expanded sales and service tax and clarity on the RON95 subsidy rationalisation mechanics.
The Star
7 days ago
- Business
- The Star
Power sector going through surge in demand
PETALING JAYA: Listed power infrastructure players are set to gain from the strong electricity demand from energy-intensive industries such as data centres, according to Hong Leong Investment Bank (HLIB) Research. In addition, the demand for power infrastructure is set to trend higher underpinned by Tenaga Nasional Bhd 's (TNB) efforts to enhance grid resiliency and expansion of national power supply. 'Policy tailwinds, such as Malaysian Investment Development Authority's cable import restrictions and TNB's preference for local contractors, create barriers to entry for foreign competitors, further reinforcing the market position of domestic players,' the research house noted in a report yesterday. Given the robust project pipeline and rising infrastructure requirements, the sector has not yet reached its cyclical peak, according to the research house. It noted that the power sector is experiencing a surge, with peak power demand reaching a record high of 21,049MW on May 28, 2025 – a robust 10.4% year-on-year (y-o-y) increase. 'This growth significantly outpaces TNB's gross domestic product-linked demand projection of 3.5% to 4.5% and surpasses the Energy Commission's 2020 long-term forecast, which projected peak demand of 19.3MW only by 2025,' HLIB Research said. The rise is driven by the combination of organic demand and load acceleration from data centres, with the latter's utilisation surging to 485MW in March 2025 – 3.2 times increase from 148MW a year earlier. 'In response, the Energy Commission has initiated tenders for new and existing gas-fired power capacity slated for commissioning over 2025 to 2029 to maintain a healthy reserve margin. 'At the same time, renewable energy (RE) deployment remains a key policy focus, with national targets set at 31% RE capacity by 2025 and 40% by 2035. 'Amid this backdrop of rising demand and a strong pipeline of new power supply, we see a compelling multi-year investment opportunity in the domestic power infrastructure space,' HLIB Research said. On TNB, the research house said investments in transmission and distribution (T&D) continued to form a significant portion of its capital expenditure (capex) to maintain grid resiliency amid rising demand. With 34% of its planned financial year 2025 (FY25) capex already utilised in the first quarter of 2025 (1Q25), TNB is expected to incur up to RM12bil capex this year for T&D-related initiatives. 'Over the Regulatory Period 4 (RP4) period), we estimate it will invest RM3bil to RM3.5bil annually from its base capex into grid infrastructure, translating into a RM6.7bil to RM7.8bil opportunity within the transmission substation business for mechanical and engineering players. 'Notably, this estimate excludes consumer-side substations, which are also required to complete connections to end users,' HLIB Research said. Looking ahead, the research house stated that TNB's RM90bil grid investment plan implied an additional RM47bil could be deployed under RP5 (2028 to 2030), exceeding RP4's RM42.8bil and pointing toward sustained momentum in power infrastructure rollout. As of 1Q25, TNB had 2.9GW of electricity supply agreement (ESA) under construction, with an additional 0.7GW signed and is set for construction commencement. 'This is higher versus the 1.3GW ESA capacity delivered in 2024 alone, signaling a strong acceleration in infrastructure pipeline, which is likely to materialise over the next 12 months. 'Following our recent engagement with TNB, the group reaffirmed that ESA enquiries remain robust, with no cancellations to date,' HLIB Research said. It is 'overweight' on the power infrastructure sector with top picks being MN Holdings Bhd with a 'buy' call and target price (TP) of RM1.88 and Southern Cable Group Bhd at 'buy' and TP: RM1.90, both of which will be key beneficiaries of grid expansion. The research house also favoured SMRT Holdings Bhd ('buy', TP: RM2.19) for its strategic involvement in the digitalisation of Malaysia's distribution substation.
The Star
15-07-2025
- Automotive
- The Star
PNB is said to explore sale of toll road business
Malaysia's state-owned asset manager is considering selling its toll road unit Projek Lintasan Kota Holdings Sdn. in a deal that could be worth RM3bil, people with knowledge of the matter said. Permodalan Nasional Bhd., also known as PNB, is working with a financial adviser on the planned divestment, said the people, asking not to be identified as the process is private. PNB has reached out to potential investors including industry players and private equity firms to gauge initial interest, the people said. Deliberations are ongoing and PNB could still opt to keep Prolintas, as Projek Lintasan is known, the people said. As a long-term investor committed to delivering sustainable returns, PNB regularly reviews its investment portfolio for opportunities to enhance value, including potential divestments or strategic repositioning, PNB said in an emailed statement. All decisions are guided by a rigorous governance process aligned with our investment objectives, it said. It is PNB's policy not to comment on market speculation or rumours, according to PNB. Any material developments will be communicated through the relevant channels in accordance with regulatory requirements, it said. At US$4.2bil, the volume of mergers and acquisitions involving Malaysian companies has dropped about 46% this year compared to the same period a year ago, according to data compiled by Bloomberg. Established in 1995 and 100% owned by PNB, Prolintas operates and maintains expressways in Malaysia, according to its website. The company's portfolio also includes urban highways in the Klang Valley. It has also introduced an artificial intelligence and machine-learning system to improve operational efficiency and safety. Prolintas owns 51% of Prolintas Infra Business Trust Bhd., a Kuala Lumpur-listed company that owns some highways and has a market value of RM1.1bil. - Bloomberg
The Star
12-07-2025
- Business
- The Star
MACC pursues foreign assets linked to Daim
PETALING JAYA: The Malaysian Anti-Corruption Commission (MACC) is seeking to seize and forfeit overseas assets worth RM3bil belonging to the late Tun Daim Zainuddin and his family. The MACC said its Special Operations Division had uncovered offshore assets allegedly linked to the former finance minister, his wife Toh Puan Na'imah Khalid, their family members, and close associates. These high-value assets are located in the United Kingdom, the United States, Switzerland, Singapore, the British Virgin Islands, the Cayman Islands, Jersey, Italy, Japan, Indonesia, and several countries in Africa. The findings stem from the MACC's investigation in collaboration with the United Kingdom's National Crime Agency and the International Anti-Corruption Coordination Centre (IACCC). On June 3, the MACC obtained a restraining order from the Kuala Lumpur High Court under Section 53 of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 for seven assets in the United Kingdom worth RM758mil. It said a Mutual Legal Assistance (MLA) application is being processed with UK authorities via the Attorney General's Chambers (AGC). Further discussions are also ongoing with the IACCC to ensure effective and proper enforcement action. Applications for restraining orders have also been filed against assets in Singapore and Jersey. The hearings for these applications, covering four bank accounts and investments worth RM1.15bil in Jersey, and 12 bank accounts and investments worth RM540mil in Singapore, were held at the Kuala Lumpur High Court on June 23 and 25. 'In addition, requests for further information regarding assets in the United States, Switzerland, the British Virgin Islands, the Cayman Islands, Italy, and Japan are being made through cooperation with Bank Negara, the IACCC, and MLA applications via the AGC. This is to facilitate legal and comprehensive action for asset seizure and forfeiture,' the commission said yesterday. Domestically, the MACC seized Ilham Tower on June 5 and filed a forfeiture application at the Kuala Lumpur High Court on June 25 for the property located at Jalan Binjai, Kuala Lumpur. The MACC also recorded statements from Na'imah and her son, Muhammed Amir Zainuddin Daim, on June 14 in relation to undeclared extraordinary assets. A statement from the couple's second son, Muhammed Amin Zainuddin Daim, currently in the United Kingdom, was also taken. All three are main shareholders of Ilham Baru Sdn Bhd, which is the majority shareholder of Ilham Tower Sdn Bhd and the beneficial owner of Ilham Tower. 'In line with Section 36(1) of the MACC Act 2009, Asset Declaration Notices were served on July 10 to 22 individuals identified as relatives and close associates of the late Tun Daim and Na'imah. This is for the purpose of identifying and confirming ownership of the assets,' the MACC said. It emphasised that the action taken is part of its duty to ensure there is no element of corruption, embezzlement, or abuse of power in the management of the nation's wealth. 'The MACC remains committed to conducting its investigation independently, transparently, and in accordance with the law, without interference or political influence,' it added.
