Thursday, October 14, 2010

20101014 0936 Malaysia Corporate News.

Malaysia defers implementation of GST
The Government has postponed the implementation of the goods and services tax (GST) to provide more breathing space for Malaysians. The Ministry of Finance (MOF), in a brief statement yesterday, said the decision was to allow for a more inclusive engagement with "all segments of rakyat pertaining to the GST". The MOF did not provide any new date but maintained that the GST is still important in ensuring a strong and sustainable fiscal position to support the country's long-term economic growth. Based on a proposed rate of 4% (as opposed to the sales and service tax's rate of between 5 and 10%), its implementation was projected to generate an additional RM1bn of revenue annually. (BT)

 Retailers raise sales forecast to 6.1%
Retail sales growth forecast for 2010 has been revised upwards to 6.1%, from an earlier projection of 5.5%, following a good showing in the first half. This second upward revision is expected to see Malaysian retailers sell products, not including bulk items like cars and houses, worth some RM75.3bn. In the first quarter, retail sales grew by 7.9% and in the second quarter by 5.8%, bringing the first half year's growth to 7.1%. "Profit margin of retailers improved by 4.3% during the second quarter of 2010. This is very encouraging for the industry, considering the heavy discounts and regular promotions required to get consumers to spend," RGM's managing director Tan Hai Hsin said in the latest report issued yesterday. It is projected that the July to September growth is around 6.8% with all retail segments registering improved performance. (BT)

Kencana gets RM16.4m contract from Petronas Carigali
Kencana Petroleum has secured a RM16.4m contract from Petronas Carigali SB for the provision of a single buoy mooring overhaul. The contract which was secured through its subsidiary Kencana HL SB, was for a oneoff period and was expected to commence in January 2011. The single buoy mooring overhaul will be for Petronas Carigali’s Sarawak operations. The contract is expected to contribute positively to the earnings and net asset per share of Kencana Petroleum Group for the financial year ending 31 July 2011. (FinancialDaily )

MMHE may have received 15 times bid for IPO
Malaysia Marine & Heavy Engineering Holdings (MMHE), a rig and shipbuilder, received bids or more than 15x the number of shares allocated for institutions in the country’s biggest initial public offer (IPO) so far this year, three people familiar with the matter said. The bids were at RM3.80 per share, which was at the top of its indicative price range. (Starbiz)

CIMB’s Bangkok listing delayed to 2011
Malaysia’s CIMB Group Holdings has postponed a plan to list on the Thai bourse to 2011 from the 4Q of this year, the head of its Thai unit, CIMB Thai Bank Pcl, said yesterday. Subhak gave no reason for the delay. He said CIMB Thai expected to return to a net profit in the first nine months of 2010 after posting a 40.6m baht (RM4.2m) loss a year earlier. (FInancialDaily)

Airasia’s Thai unit to fly at market value of RM1.7bn
Airasia, the largest low-cost airline in South East Asia, may list its Thai affiliate with a market capitalization of between US$500m and US$550m (RM1.7bn) by third quarter 2011. Thai AirAsia, 49%-owned by AirAsia, is in the midst of finalizing the listing structure and will select investment bankers by the end of this month for the initial public offering, according to Thai AirAsia chief executive officer (CEO), Tassapon Bijleveld. Separately, AirAsia is planning a dual-listing exercised on the Stock Exchange of Thailand that is expected to take place by next year. Thai AirAsia plans to expand its fleet from 19 planes presently up to 40 planes, within the next 5 years. (MalaysianReserve)

Consumer: Duty hike on brewers unlikely, says GAB. There is strong speculation that, after a four-year reprieve, brewers will be hit with an excise duty hike  in the 2011 Budget, to be tabled tomorrow. However, Guinness Anchor Bhd (GAB), the country?s largest brewer, argued that such a move does not seem likely as it would not make sense. An excise duty hike would lead to higher prices of beer and stout, and this would make the black market products more attractive to consumers, resulting in government losing out on the potential revenue. (Source: Business Times)

REIT: Boost in the offing. The Malaysian real estate investment trust (REIT) sector is likely to get a boost soon, with firmer plans for a national REIT company and a reduction or removal of the withholding tax for REIT investors, sources said. The national REIT will likely include a number of assets belonging to the government and the government-linked companies (GLCs). "There is a huge potential for "REITing" these government properties in a similar way Singapore did," said a source. It is understood that these proposals may appear in the soon-to-be announced Budget 2011. (Source: The Star)

Utilities: Bakun?s impoundment starts. Uncertainties on operations of the Bakun Hydroelectric Dam were lifted yesterday when Sarawak Hidro Sdn Bhd, the owner of the dam, started impounding operations yesterday morning. The exercise which will effectively flood the area as big as the size of Singapore started yesterday morning with the closure of the diversion tunnel at 10am. The impoundment or filling up of reservoir will take about 7 months to reach the minimum operation elevation of 195 m (above sea level) to run the turbines. Filling up the reservoir to its maximum operation elevation of 228m would take about 13 months depending on the rainfall in the catchment area. (Source: The Edge Financial Daily)

Autos: Kamaruddin to meet Dr M over Team Lotus rights dispute. Lotus Racing Formula One team shareholder and deputy team principal Datuk Kamaruddin Meranun hopes to meet Proton Holdings Bhd adviser Tun Dr Mahathir Mohamed today to resolve the ?Team Lotus? rights dispute between Lotus Racing and Proton?s wholly-owned Group Lotus. Kamarudin added that Lotus Racing?s earlier filing made to the London High Court was to determine who owned what rights to the ?Team Lotus? name. (Source: The Star)

BGroup: To exit aviation business? Berjaya Group (BGroup) may exit the aviation business as it is in talks with investors to dispose of Berjaya Air. Industry sources said BGroup's controlling stakeholder Tan Sri Vincent Tan is talking to a few local and foreign parties including one from Indonesia. Berjaya Air general manager Tan Bee Hock told Business Times that he is not aware of any plans by (Vincent) Tan to sell the aviation business. The sources, however, claimed an Indonesian tycoon, who runs several businesses in Malaysia, has expressed an interest to buy the airline. (Source: Business Times)

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