Kerjaya Prospek: Eyes MYR800m new jobs this year. The group hopes to secure more construction jobs to meet its internal replenishment order book target of MYR800m for the current year ending Dec 31, 2017, according to its executive chairman Datuk Tee Eng Ho. The group currently has 19 on-going construction jobs. Kerjaya Prospek ventured into infrastructure works last March after securing a dredging works contract from China Communication Construction C

FEATURE CALLS Malaysia | Malaysia Banking 2016 loan growth in-line, expect slower growth in 2017 Desmond Ch'ng Regional | Macau Gaming Weak Jan GGR despite strong visitation Samuel Yin Shao Yang

MACRO RESEARCH Malaysia | Equity flows & lookouts Chew Hann Wong Malaysia | Slow & steady growth but liquidity risk from foreign bond holdings…? Suhaimi Ilias

NEWS Outside Malaysia Other News

SECTOR RESEARCH MY: Malaysia Banking 2016 loan growth in-line, expect slower growth in 2017 by Desmond Ch'ng Sector Note 2016 industry loan growth ended the year in-line with our full-year forecast, at 5.3% YoY. With the contraction in loan applications and approvals throughout the year, we expect loan growth to further moderate in 2017 and maintain our industry loan growth forecast of 4.7%. We maintain our BUY calls on BIMB, AFG and HL Bank. Desmond Ch'ng    (603) 2297 8680    desmond.chng@maybank-ib.com RN: Macau Gaming Weak Jan GGR despite strong visitation by Samuel Yin Shao Yang Sector Note Jan GGR was below our and consensus estimates despite a strong CNY visit arrivals number. We believe the miss was caused by players mix and luck factor. We forecast Feb 17 GGR to be flattish YoY. The sector is trading at fair valuations. Maintain NEUTRAL sector view. Samuel Yin Shao Yang    (603) 2297 8916    samuel.y@maybank-ib.com Sonija Li    (852) 2268 0641    sonijali@kimeng.com.hk

MACRO RESEARCH MY: Malaysia Strategy Equity flows & lookouts by Chew Hann Wong Strategy Research Foreign investors bought a net e.MYR0.4b of Malaysia equities in Jan 2017 after being net sellers for four consecutive months from Sep 2016. The amount of net buy was however small, similar to that in Feb/Apr 2016. Cumulative foreign net buy since early-2010 rose slightly to e.MYR4.5b end-Jan 2017, but still significantly below a high of MYR49.4b end-May 2013. We retain our view that the downside for Malaysia equities from foreign selling should be limited, barring another global rout. Chew Hann Wong    (603) 2297 8686    wchewh@maybank-ib.com MY: Money Supply, Dec 2016 Slow & steady growth but liquidity risk from foreign bond holdings…? by Suhaimi Ilias Economics Research Money supply (M3) grew +3.0% YoY in Dec 2016 (Nov 2016: +2.9% YoY), supported by faster growth in the business sector loans amid slower household loans and total deposit growth. Liquidity issue or risk this year revolves around foreign holdings of bonds, although there is sufficient domestic dry powder to absorb selloffs. Suhaimi Ilias    (603) 2297 8682    suhaimi_ilias@maybank-ib.com Zamros Dzulkafli    (603) 2082 6818    zamros.d@maybank-ib.com

NEWS Outside Malaysia: U.S: Fed nods to improved sentiment while leaving rates unchanged. Federal Reserve officials left interest rates unchanged while acknowledging rising confidence among consumers and businesses following Donald Trump’s election victory. “Measures of consumer and business sentiment have improved of late,” the Federal Open Market Committee said in its statement following a two-day meeting in Washington. Policy makers reiterated their expectations for moderate economic growth, “some further strengthening” in the labor market and a return to 2% inflation. The Fed provided little direction on when it might next raise borrowing costs, as officials grapple with the uncertainty created by a new presidential administration. Policy makers in December penciled three rate hikes into their 2017 forecasts, but committee members differ over assumptions regarding the extent to which tax cuts, spending and regulatory rollbacks proposed by Trump and Republicans might boost growth and inflation. (Source: Bloomberg) U.S: Manufacturing accelerates for a fifth straight month in January on stronger orders and production that signal America’s factories are rebounding. The Institute for Supply Management’s index rose to 56, the highest since November 2014, from 54.5 the prior month, data from the Tempe, Arizona-based group showed. The report showed the gauges of production and orders also climbed to more than two-year highs, underscoring sustained improvement in manufacturing following a soft patch in mid-2016. Stronger demand is helping drive up costs of raw materials, as a measure of prices paid jumped to the highest since May 2011, adding to signs of inflation picking up worldwide. (Source: Bloomberg) Other News: Kerjaya Prospek: Eyes MYR800m new jobs this year. The group hopes to secure more construction jobs to meet its internal replenishment order book target of MYR800m for the current year ending Dec 31, 2017, according to its executive chairman Datuk Tee Eng Ho. The group currently has 19 on-going construction jobs. Kerjaya Prospek ventured into infrastructure works last March after securing a dredging works contract from China Communication Construction Company that was worth MYR1813.31m for the Seri Tanjung Pinang development in Penang. The job is expected to be completed by March 18,2018. (Source: The Edge Financial Daily) Petronas Dagangan: Sale of Vietnam indirect unit hits snag. Its wholly-owned subsidiary PDB (Netherlands) BV said yesterday Totalgaz Vietnam LLC has terminated the sale and purchase agreement (SPA) to acquire Petronas Dagangan’s entire 100% equity interest in Thang Long LPG Co Ltd. On Dec 11, 2015, Petronas Dagangan through PDB (Netherlands) entered into two SPAs with Totalgaz Vietnam to divest its 100% equity interests in indirect units Petronas (Vietnam) Co Ltd and Thang Long LPG, in a move to rationalise Petronas Dagangan’s portfolio. (Source: The Sun Daily) Petronas Dagangan: Sale of Vietnam indirect unit hits snag. Its wholly-owned subsidiary PDB (Netherlands) BV said yesterday Totalgaz Vietnam LLC has terminated the sale and purchase agreement (SPA) to acquire Petronas Dagangan’s entire 100% equity interest in Thang Long LPG Co Ltd. On Dec 11, 2015, Petronas Dagangan through PDB (Netherlands) entered into two SPAs with Totalgaz Vietnam to divest its 100% equity interests in indirect units Petronas (Vietnam) Co Ltd and Thang Long LPG, in a move to rationalise Petronas Dagangan’s portfolio. (Source: The Sun Daily)