The opening date is consistent with management’s mid-March guidance and in line with its phased opening. We expect stronger visitor arrivals after the opening of USS, which is one of RWS’s key attractions.
Emirates has launched a third daily flight from Dubai-Kuala Lumpur and onward to Melbourne from 1 February, with plans to add a few more destinations like Amsterdam, Prague and Madrid in the next couple of months. (BT)
Emirates’ expansion into Melbourne and Amsterdam may compete with MAS’ offerings and create price pressure.
Axiata seems to have smoothed out the rough edges since separating from Telekom Malaysia (TM) to become a regional mobile player and appears to have hit its stride based on the performance of its first full year operating as an individual entity. The key highlights of the interview are:
- Axiata at one point was mulling the possibility of selling its tower business in Indonesia, but Jamaludin says there is no longer a need to do so. "If we look from a long-term perspective, we shouldn't sell the towers. From a short-perspective, it looks good because you get cash upfront and the EV multiples are better than our own business. But we're not about the short term," he says. He added,” You sell, but you lose 3-6% in EBITDA margins because you have to pay rent. Currently, we are getting business from other operators. Unless you really need money, you won't sell the towers."
- As for the other mobile operators or OpCos, Jamaludin says the trends observed in the last fiscal year has been heartening although not all of them were equally in trouble, or equally out of the woods yet, especially with respect to both Sri Lanka (Dialog) and Bangladesh (Aktel). Jamaludin expects both of them to be out of the woods by end of this year, which means that both operators will be PAT positive with elements of sustainability with respect to the mobile business. "We're almost there in Bangladesh. Although we are profitable and EBITDA is good, I want to see one or two more quarters to be definite about it," Jamaludin says.
- As for Idea, Jamaludin adds that he is confident that Idea will not be going to shareholders for funds this year, although bidding for 3G is expected to be intense. "Idea itself as a company is in a very good position to fund licence and roll out. It has enough debt capacity and if they really need to, they can sell a stake. And assuming they need the funds, it will not be this year, but next year," he says. In the unlikely event of a cash call in 2011, Jamaludin says Axiata will be in an excellent position to "very easily" fund their 20% portion and retain sufficient funds to pay out dividends. (Edge Weekly)
Sarawak, which is opening up large tracts of land for oil palm cultivation, has emerged as a “hotspot’’ for plantation investors. Big conglomerates like Sime Darby and IOI Corp are among the several new investors in the state’s plantation industry, according to Sarawak Land Development Minister Datuk Dr James Masing. He said the state government had approved more than 720,000 hectares (ha) of native customary rights (NCR) land for oil palm projects to be undertaken by Sarawak, Sabah and peninsula-based plantation companies under the new development model. The approved land in 63 areas more than doubled the total 350,000ha recorded in 2008. He said each NCR joint-venture project would cover a land size of 5,000ha to 20,000ha, of which 65% to 70% of the area was plantable. (Starbiz)
Sime Darby Property's chief is looking to the RM30bn Sime Darby Vision Valley (SDVV) to be its future growth driver. The 32,000ha development is expected to enhance the value of its landbank and the company is optimistic of an earnings margin of no less than 15%. It expects to secure approval for the project soon and for work to start in September, MD Datuk Tunku Putra Badlishah said. The SDVV, scheduled to be completed by 2025, targets housing more than 4.5m people. Tunku Badlishah said that key to the SDVV, a regional development, will be to attract FDIs from Asia-Pacific, the US, Europe and the Middle East. (BT)
PPB Group, which sold its sugar business for RM1.3bn, will return RM592.8m in special dividends to shareholders this year and use the rest of the money to expand its flour and property business. MD Tan Gee Sooi said the sale of the sugar asset was completed on Jan 12 and gains of RM857m were expected to be reflected in the group's 1QFYE12/10 results.
- Tan said the company, which owns one flour factory in Vietnam, plans further expansion in that country.
- PPB Group also plans to commission its first RM105m bakery factory in Pulau Indah, Selangor, by year-end, producing loaf bread and a variety of buns.
- In addition, it will boost its property business, which makes up less than 2% of revenue, by buying more land, mainly in northern Peninsular Malaysia. (BT)
Sabah Electricity Sdn Bhd (SESB) has succeeded in reducing electricity shortage in Tawau by 87.34% from Sept 1, 2009 to Feb 2010. Corporate communication senior manager Chendramata Sinteh said the improved supply was down to installation of mobile 1MW generator sets at Pasir Putih. The long term plan involves IPP Ranhill Powertron (II) which will supply 190MW of electricity by Aug. (Bernama)
Malaysia Airlines yesterday withdrew its US$35.5m civil suit against Air Maldives (AML) filed in the High Court in Kuala Lumpur in 2004 following an agreement reached with the Maldives government two weeks ago. Under the agreement sealed in the Maldives capital Male on Feb 14, the Maldives government withdrew a US$90m claim filed with the Singapore-based International Court of Arbitration on March 1. MAS and AML had earlier entered into a joint-venture agreement via the Maldives Government and Naluri Corp, a corporate vehicle of then MAS chairman Tan Sri Tajudin Ramli. (Bernama, Star)
Malaysia Airlines will be offering an additional two non-stop daily services to its existing five times weekly flights from Kuala Lumpur to Paris, starting this March 28. (Financial Daily)
Star Publications' anticipation of a better performance in 2010 is bolstered by several other factors, such as the introduction of new products and the expectation of continuing improvements in major businesses. "Last year was definitely challenging for the media industry, particularly in the first half, when the weak consumer sentiment had a significant impact on advertising volume. What helped a lot was that we responded quickly and decisively with cost saving measures and a more prudent purchasing policy..." Executive deputy chairman Datuk Clement Hii said. (Star)
Proton has yet to identify the local vendors to supply parts for its concept car, EMAS, which will spearhead its world ambition. Proton will develop a comprehensive local vendor structure to support its global car programme, saying it is important that vendors share its aspirations of becoming a world player. Currently, some 220 vendors supply parts to Proton, but it is expected to identify only 10-15 vendors during the development phase of the EMAS. Proton's director of engineering division, Tajul Zahari Abu Bakar said he was not concerned about the ability of local vendors to produce and supply the parts for the powertrain developed by Lotus. (BT)
The local automated equipment manufacturing sector is facing critical challenges that stem from competition with China-made automated equipment, which are improving by leaps and bounds, and the shortage of quality design engineers in the country. Pentamaster Corp executive chairman said that China was now starting to design higher-end automated equipment with innovative features and competitive pricing for the international market. China-made automated equipment are priced 40% to 50% lower than Malaysia-made units, which are sold in the market at an average of about US$150,000 onwards. (Starbiz)
SP Setia is set to make its mark on Penang's Gurney Drive, if a plan to buy an identified parcel of land measuring 0.92 hectares in the area goes through. It plans to build 70 units of high-end super-condominiums boasting a floor area of 3,000 sq ft. The proposed project in Gurney Drive is part of SP Setia's move to expand its landbank by 12ha this year. "We have also identified another 5.6ha land to acquire in the southwest district of Penang island. We intend to develop a gated community comprising detached and semi-detached homes," Rajoo added. (BT)
Bandar Raya Development is mulling revisiting the option of selling its stake in chipboard maker Mieco Chipboard, says CEO Datuk Jagan Sabapathy. Bandaraya has 56.8% stake in Mieco. The developer has been wanting to dispose of its stake in Mieco for the past four years. It spoke to several local and foreign firms but no firm deal was entered into. MD Datuk Yong Seng Yeow sais Mieco has been in the red because of supply and demand issues, price war, foreign exchange losses and higher operating costs. "We are consolidating to bring down cost. We will hive off some overseas markets if necessary, due to logistics," Yong said. (BT)
Bursa Malaysia has rejected Ho Hup Construction’s application for an extension until March 8 to submit the draft circular related to its plan to sell a plot of land in Bukit Jalil, Kuala Lumpur. Ho Hup said it now plans to submit the draft for Bursa’s approval before issuing it to shareholders in due course. (BT)
Pos Malaysia is investing RM250m to set up a national mail and parcel hub in Shah Alam in its effort to achieve an automation level of up to 70% from 20% currently. The hub will be a processing plant and is expected to be operational by year-end, said its group chief of strategy and planning, Jezilee Mohamad Ramli. The four centres to be closed down are at Daya Bumi, Bukit Raja, Bangi and Seremban, Jezilee said. Logically, Pos Malaysia should have another four to five more plants, however this will depend on the success of the pilot plant, he said. (Bernama)
Pharmaniaga’s manufacturing licence was revoked due to critical findings over the storage and segregation of reject and quarantine materials/products as well as the handling of reject and recalled materials/products. Pharmaniaga said it would present all corrective actions taken to date as well as a plan of action to address the remaining audit issues to the Pharmaceutical Services Division of the Ministry of Health (PSD) on March 8. The percentage contribution of manufacturing to the group’s profit before tax was 23% based on the unaudited results for FYE12/09. (Starbiz)
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