Axiata to stay put in India
The Axiata Group will stay put in the Indian mobile market but is hoping to operate in a more stable regulatory environment. The Indian Government‟s recent revocation of 122 of the 2G licences issued in 2008 had created uncertainty and angered some foreign investors, some of whom have threatened to withdraw from the market place and to even sue the government. However, Axiata president and group chief executive officer Datuk Seri Jamaludin Ibrahim said, “we want more of a stronger foothold there.” (StarBiz)
MSC up despite worries over Indonesia’s tax hike plan
The share price of Malaysia Smelting Corp (MSC) was not affected by the news that the Indonesian government may increase the export tax on coal and base metals this year. The firmness in the share price could be supported by a report by Bloomberg yesterday that said Indonesia was not formally discussing a suggestion from the industry ministry to tax exports of coal and minerals, according to government and industry officials. (StarBiz)
AMMB gets nod to buy Kurnia
The proposed sale of Kurnia Insurans (M) to AmG Insurance takes another step forward. AMMB Holdings announced yesterday that it had received the Finance Ministry‟s approval, through Bank Negara, for the acquisition of a 100% equity interest in Kurnia Insurans by AmG. AMMB has a 51% stake in AmG, while Kurnia Insurans is wholly owned by Kurnia Asia. (StarBiz) Please see accompanying report
Maybank pushing for top 5 ranking in Cambodia
To further strengthen its regional footprint, Malayan Banking (Maybank) recently incorporated its branch in Cambodia and aims to be among the top five banks in Cambodia by 2015. It is currently ranked seventh in terms or assets among 33 banks, and has 11 branches in Cambodia. Since establishing its presence in Cambodia in 1993, Maybank announced that it will be investing in a new 10-storey corporate office in Phnom Penh which is expected to be ready in two years. “Maybank Cambodia had been growing at a healthy pace with assets and deposits doubling in the last four years since its branch expansion got underway,” said president and chief executive officer Datuk Seri Abdul Wahid Omar. (Malaysian Reserve)
Pharmaniaga to set up plant in Indonesia
Pharmaniaga has set side RM30m to build a manufacturing plant in Indonesia which the company hopes will act as a “gateway for exports” into the republic of almost 240m people. The funding is to come from internally generated funds. According to the company, it is now in discussions with a few parties and has yet to decide on the purchase target. (Malaysian Reserve)
Perisai's MD Izzet Ishak has exercised an option granted to him by Ezra to acquire 66m Perisai shares from the company. It is not disclosed when the shares will change hands. (BMSB)
Proton Holdings’s all-new sedan and maiden global car is called PREVE (pronounced Prae-Vae) and costs RM540m to develop. The PREVE has a price tag of RM62,000 for an entry level unit with manual transmission, and RM75,000 for the high line version with automatic transmission. In between, there is a medium line version that may be sold for less than RM70,000. Proton managing director Datuk Seri Syed Zainal Abidin Syed Mohamed Tahir is optimistic of monthly sales of 4,000 to 4,500 units of the PREVE. Proton plans to export the PREVE to Asean countries three months after its local debut, before shipping it to Australia, the Middle East and China, among others. (BT)
The unconditional takeover offer by DRB-HICOM to acquire all the remaining shares in Proton at RM5.50 each in cash will close at 5pm on April 25. DRB-HICOM's shareholders approved the company's proposed acquisition of 42.74% stake in Proton from Khazanah Nasional on March 15. (Starbiz)
Malaysian Airlines’ (MAS) decision to use fuel hedging as a financial instrument to protect the airline from fuel price hike risks is in accordance with the Group Treasury Policy approved by the MAS board of directors, Datuk Seri Najib Razak said. The fuel hedging mechanism was also adopted by other airlines. The losses incurred, however, were only in the form of paper loss and not MAS’ real losses due to the adoption of FRS139. (Bernama)
Idea Cellular may have to write-off Rs 17k crore (US$3.3bn) if the government decides to change the frequencies it uses to offer services upon expiry of its licence, a company official today said. Telecom Regulatory Authority of India has proposed to shift existing telecom players providing their services in 800 and 900 Mhz bands to some other frequency band after expiry of their telecom licences. In India, 2G services are being provided through 800, 900 and 1800 Mhz frequency bands. "If subscribers are shifted from 900 Mhz, Rs 17k crore (US$3.3bn) will have to be written off for one year by Idea," an Idea Cellular representative said at the Trai's Open House Discussion on 'Auction of Spectrum'. He added that 500m customers are being serviced by 800 and 900 Mhz bands. In the draft national telecom policy, the government has proposed refarming of spectrum in 800 and 900 Mhz bands and it may ask telecom operators to surrender spectrum in these bands so that the same can be redistributed for high-end services. Some leading service providers like Bharti Airtel, Idea Cellular and Vodafone have spectrum in these bands. The industry is divided over refarming of spectrum with old operators against it, while new operators have favoured the move. (IndiaTimes)
Previously split between the Malaysian Iron and Steel Industry Federation (MISIF) and Malaysia Steel Association (MSA), players in the country’s steel industry are joining forces to seek the government’s aid to regulate the mechanism on imported steel into Malaysia. MISIF president Chow Chong Long said both MISIF and MSA want the government to consider strengthening its policy on steel imports for export, the license manufacturing warehouses status, zero import duty of foreign finished products and steel grades not locally produced in Malaysia. (Star Biz)
Petronas’s Engen unit, the biggest South African importer of Iranian crude, said it has suspended imports of oil from the Middle Eastern nation amid economic sanctions by the US and the European Union. The company has contingency supplies in place. (Bloomberg)
Tradewinds Corp Bhd has followed the precedence set by DRB-Hicom Bhd in swapping its Malay reserve land in Langkawi Island with comparable non-Malay reserve land on the mainland at a conversion rate of RM5 psf. The proposed exercise will see the status of 43.6 acres under Tradewinds in Langkawi to be converted to non-Malay reserve status. The swap is to enhance the value of the land as it allows non-Malays to acquire properties developed on these parcels. (Financial Daily)
KPJ Healthcare’s profitability may be affected if the proposed new healthcare system (1Care) for Malaysians imposes a standardised fee schedule, said RAM Ratings. At present, the healthcare industry and KPJ are subject to regulatory controls, although this may evolve over time. KPJ remained exposed to persistent cost increases such as higher staff salaries and more expensive medical supplies and pharmaceuticals. (Star Biz)
Xchanging has signed a 50:50 joint venture agreement with YTL Communications Sdn Bhd to develop and deliver enhanced mobile internet and cloud-based hosting offerings in Malaysia. The JV will combine Xchanging’s technology, delivering expertise and international domain knowledge with YTL Communications’ award-winning 4G network and market reach to deliver next-generation mission-critical cloud solutions and platforms. (Bernama)
US-based Air Products and Chemicals Inc is growing its business in Malaysia by expanding its nitrogen and oxygen pipelines and building more plants this year via Air Products Malaysia (APM). Country manager Jeff Chen said the pipelines are currently being expanded in Prai, Penang, to connect the Prai Industrial Estate to Bukit Minyak Industrial Estate, spanning roughly 12km, as well as within the Prai Industrial Estate area. The company is also building new plants in Kulim and Seremban to cater for electronics and glass manufacturing. The expansion, Chen said, is in tandem with the various opportunities in the government's National Key Economic Areas (NKEA) and Economic Transformation Programme (ETP). He added that Malaysia is the key part to Air Product's business in Asean. The company currently has 13 manufacturing and sales location nationwide. It serves companies across several industry sectors such as chemicals, electronics, food, glass, metal processing, oleochemicals, semiconductors and steel. (BT)
Q-Cells Group SE which owns a production facility in Malaysia, employing some 500 staff has filed for insolvency. Q-Cells is the fourth among large solar companies from Germany since Dec 2011 to go bankrupt. There was no immediate news on the face of the staff at the Malaysian production facility, which was formed in Jun 2008. The facility is located on a 30,000 sq m plot in Cyberjaya. (Malaysian Reserve)
MAHB: KPMG audits KLIA2 job
In the wake of allegations of cost overruns in KLIA2, sources said KPMG has been appointed to undertake an audit on the project. It is learnt that the accounting firm had completed its investigations last week. However, it is unclear as to who called for the audit on the klia2 development, where construction cost has increased by as much as 95% to between RM3.6bn and RM3.9bn. One of the sources said the audit indicated that the changes request by airlines had cost most of the cost escalation. However, he did not elaborate further. (Financial Daily)
Sapura Group: Family feud goes to court
A simmering family dispute in the house of Sapura, one of Malaysia’s more illustrious bumiputera business families, has spilled into the open. In a legal challenge filed in late Feb, patriarch Tan Sri Shamsuddin Kadir is demanding the return of shares and properties valued in excess of RM450m from his two sons, Datuk Sharil Shamsuddin and Shahriman Shamsuddin. According to the media report, the court documents did not stipulate the reasons behind Shamsuddin’s demand for the return of assets, which include a 15% block in the family’s private investment vehicle called Sapura Holdings Sdn Bhd and a clutch of properties in the Klang Valley and Selangor. However, financial executives familiar with the yet-to-be publicized court dispute said the suit filed in the Shah Alam High Court will not pose any problems to the RM11.85bn SapuraCrest-Kencana merger. (Financial Daily)
Pharmaniaga: Allocates RM95m for capex
Pharmaniaga is allocating some RM95m in capex this year. According to chairman Tan Sri Lodin Wok Kamaruddin, this will include spending for the company's expansion into the regional market, beginning with Indonesia. Lodin said an estimated RM30m is to be spent on setting up a reasonably-sized manufacturing plant in Indonesia to meet the local demand for generic drugs. Lodin said the rest of the capex will be used for other regional expansion such as into Vietnam and Myanmar, upgrading its existing plants in Malaysia and improving Pharmaniaga's information system. He also said the company's plan to enter the Middle Eastern market through another plant in Saudi Arabia is on track, adding that the talks with the authorities there would likely be completed by late this year or early 2013. (Business Times)
Pharmaniaga: Aims to increase revenue contribution from private sector
Pharmaniaga’s MD Datuk Farshila Emran said the company is looking to increase the revenue contribution from the private sector from the 3% at present. Farshila said after its AGM on Wednesday that the group was hoping to achieve a target of about 6% to 7% revenue contribution from the private sector for FY2012. The private sector includes private hospitals and private clinics. (Financial Daily)
Oil & Gas: Petronas unit Engen suspends Iran oil imports
Petronas’ Engen unit, the biggest South African importer of Iranian crude, said it has suspended imports of oil from the Middle Eastern nation amid economic sanctions by the US and the EU. Engen spokeswoman Tania Landsberg said the company had contingency supplies in place. Engen, which operates the country's second biggest refinery based in Durban and with a capacity of 135,000 barrels a day, normally buys about 80% of its supplies from Iran. Petronas CEO Datuk Shamsul Azhar Abbas, said Engen was under heavy pressure to halt Iranian imports because of sanctions. He said Engen had sought alternative supplies but had not yet received any. (StarBiz)
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