The Malaysian Anti-Corruption Commission (MACC) has initiated investigations into the massive losses suffered by
Sime Darby. Investigations will start with a probe focusing on the internal inquiry being carried out by the conglomerate. The company's internal investigation, believed to have started eight months ago, is to determine the real extent of the losses in its energy and utilities division and whether they were anything beyond just making bad investment calls. There may also be probes into other divisions and projects. MACC investigations director Mustafar Ali confirmed that the commission had started investigations. "We will indentify areas that have elements of corruption, misappropriation and abuse of power. Like all cases, we'll deal with this one with urgency, not only because this probably involves billions of ringgit but also the interests of the people, Separately, Sime Darby is also expected to disclose tomorrow the findings of the task force set up to investigate its energy and utilities division. (NST)
This is negative for Sime as the on-going investigations by external parties may affect staff morale and result in further short-term uncertainties in the group's prospects. On a more positive front, the investigations could help shed some light on the massive losses recently discovered at the energy and utilities division.
The
Securities Commission (SC) is studying the developments at
Sime Darby, which is carrying out a probe after cost overruns of almost RM1bn for this year alone. "We are assessing the developments at Sime Darby. At this stage, the SC prefers not to comment any further," an SC spokesperson said. (BT)
Kencana Petroleum has been awarded a US$15.5m contract by Larsen & Toubro to construct jackets for offshore platforms to be located in India. This one-off contract is expected to run from 1Q-2Q11. (BMSB)
Tenaga (TNB) plans to bid for two or three power generation projects in the Middle East and South Africa, together with local and foreign partners. It has to bid as a group to minimise risk, among others, because each project is worth more than US$2bn (RM6.7bn). CFO Mohamed Rafique Merican Mohd Wahiduddin said TNB is looking at several projects currently and it has submitted pre-qualification bids for some. (BT)
Sarawak Energy (SEB) is exploring the potential for long-term transmission of
hydropower from Sarawak to Peninsula Malaysia. Besides Bakun, other sources with a combined capacity of 20,000MW can also be tapped. “SEB needs to establish the right pricing for hydropower which should be more competitive than coal-fired plants,” an industry source said, adding that SEB’s plans would be more relevant post-2017. When contacted,
Tenaga’s CEO Datuk Seri Che Khalib said, “If it makes financial and technical sense, we will consider it. However, there is no concrete proposal for us at this juncture to look into.” (Starbiz)
Exports of Indonesia's
crude palm oil and its derivative products increased slightly in the first four months to 4.65m tons, Indonesia Palm Oil Producers Association (Gapki) reported. Director Executive of Gapki, Fadhil Hasan said the demand of the commodity from Indonesia keeps rising despite domestic green campaign against the CPO consumption. "India has been the main destination country for Indonesia's CPO exports so far," he said. The European Union has said that it will continue purchasing CPO from Indonesia, ignoring environmental concern from the public. The director said that the shipments during the first four months comprised 2.5m tons of CPO and 2.15m tons of its derivative products. (Xinhua)
Palm oil should not be singled out for sustainability compliance unless other competing oils are practising the same; delegates to the International Palm Oil Sustainability Conference 2010 were told. Extensive scientific studies should be carried out to determine the true situation, said the Malaysian Palm Oil Council (MPOC) CEO Tan Sri Dr Yusof Basiron, obviously referring to the misinformation circulated on palm oil by Western Green Non-Governmental Organisations (WEGNGOs). Lamenting that other competing edible vegetable oils, like soyoil, rapeseed and canola, were not subjected to similar requirements, he said Malaysia should therefore commission more scientific studies. Dr Yusof said if legislation was passed in the European Union and Australia, on the basis of non-scientific evidence, this would be discriminatory to trade and unnecessarily drive oil palm farmers to poverty in Indonesia and Malaysia. (Bernama)
The
Roundtable on Sustainable Palm Oil (RSPO), in a move to segregate functions, will soon contract Accreditation Services International (ASI) of Germany as an accreditation agency to take over the functions of awarding certification for sustainable crude palm oil, its Secretary-General Dr Vengeta Rao said. He said "there has to be separation of powers" as the RSPO cannot be "writing and policing" the accreditation process. He said a pilot project would be carried out soon and within one-and-a-half years from now, this would become a reality. (Bernama)
It would be a healthy year for the
construction industry with support expected in the next two quarters from projects awarded under the RM60bn second stimulus package, Master Builders Association Malaysia (MBAM) said. Among projects under the country's stimulus packages include the RM2bn
new low-cost carrier terminal (LCCT) and the RM3bn
LRT extension (two lines) in the Klang Valley. "After that, we will see how the 10MP (is working) as the effects will be seen by year end and next year," president Ng Kee Leen said. The construction sector saw a growth of 8.5% in 1Q 2010. (Bernama)
Thailand, Indonesia and Malaysia, the world’s top three
rubber producers, want to set up a cash market for the commodity that would make pricing more transparent and stable, industry officials said on Tuesday. A regional rubber market might also reduce the influence on physical prices of futures markets such as the Tokyo Commodity Exchange (TOCOM), said Abdul Rasip Latiff, chief executive officer of the International Rubber Consortium (IRCo). “The concept has been agreed upon and a special committee of experts has been established to study the feasibility of this concept in greater detail,” Latiff said. (Reuters)
Supermax Corp aims to increase revenue from the Asian market to 10% next year from the current 6% as it has identified the region as the new growth area. Its executive chairman and group managing director, Datuk Seri Stanley Thai Kim Sim, said the rising income level, fuelled by economic growth, would lead to the increase in health spending following the increase in awareness. "We are tapping Asia's emerging market economies for our future growth. We will see significant growth in the future if, for example, China decides to have healthcare reforms like in the US," he said. (Bernama)
Edaran Tan Chong Motor (ETCM) will continue with efforts to explore opportunities for regional expansion. Executive Director Datuk Dr Ang Bon Beng also said ETCM is still an auto company at heart but is extending its reach to new product segments and markets regionally. Locally, he said, the company will introduce at least one completely knocked down (CKD) model annually, particularly in segments it was not represented, over the next three years. "Overseas, our Indo-China strategy is slowly taking shape with exclusive distribution rights in Cambodia and Laos, as well as a full manufacturing, distribution and after sales investment certificate in Vietnam. Our total investment is US$25m in total,” he disclosed. (BT)
Ann Joo Resources is bullish on the outlook for this and next year, thanks to the massive pump-priming activities worldwide with the bulk of the funds being channelled towards infrastructure sector. Its group executive chairman, Datuk Lim Kiam Lam, said the tight supply of construction
steel and the demand-pull price upswing were expected in the medium term. "The demand is expected to pick up in 2H10. However, in the immediate term a lot of correction is expected as the economies are still in early stage of recovery," he said. Going forward, he said, the company planned to acquire companies to provide synergy to the group, especially in terms of efficiency. "Our main focus in within the Asean market. Talks are at a preliminary stage," he said. (Bernama)
PT Semen Gresik is considering to buy
cement plants in Malaysia, the Philippines and Thailand, President Director Dwi Soetjipto told reporters in Jakarta today. The company may spend 3 trillion rupiah on acquisitions this year, Soetjipto said. (Bloomberg)
Johor Corp’s (JCorp) CEO Tan Sri Muhammad Ali Hashim said several companies including
Sime Darby and
Malton are interested in the redevelopment of
Pusat Bandar Damansara in Kuala Lumpur. “But who gets it depends on who gives the best price," he said, noting that no decision has been made. "It is obvious that something needs to be done on the property and unlock its true value," Muhammad Ali said. (BT)
KUB Malaysia plans to buy 12 floors of commercial and retail office space at Oasis Ara Damansara for RM39.1m from
Sime Darby’s units. KUB will use this office space to house its new corporate headquarters. (BT)
Malaysia Airports Holdings (MAHB) is still looking at various options for its funding requirements including via any ringgit and US dollar debt fund-raising exercises. This reply was in response to recent press reports suggesting that MAHB would issue RM2.5bn bonds for the construction of the country's second low-cost carrier airport and to refinance existing debts. (Bernama)
Singapore's
CapitaMalls Asia is keen to expand in Malaysia and plans to have a property trust in the future are still on the drawing board. CapitaMalls, a unit of property developer CapitaLand, views Malaysia as a key market in the region and it could develop new properties or buy existing ones, said its head for Malaysia Sharon Lim. When asked about plans to develop a mall in I-City owned by
I-Berhad as previously reported, Lim said "we have spoken to them. But we are not ready to announce anything." As for plans to set up a real estate investment trust in Malaysia, it is still an option. "It is our stated strategy that ultimately, the aim is to list in the market where we operate in," she added. (BT)
It is the second time in three years that a substantial stake in
Magna Prima has changed hands, after Tan Sri Chua Hock Chin's exit from the company in 2007. Filings to the stock exchange show that Tan San Li and Wong Bin Chen have ceased to be substantial shareholders after selling their entire stakes in Fantastic Realty, which owns 15.41% of Magna Prima and more than half of its warrants. The duo were replaced by Lee Ban Chuan and Lee Hing Lee. (BT)
Eng Teknologi Holdings will continue to expand its capacity regionally to cope with the strong Hard Disk Drive (HDD) demand. "Mobile 2.5" drive components will be our key focus of growth in our new capital investment," CEO Datuk Teh Yong Khoon said. He said the group was also making efforts to expand its range of products to cover a more balanced product portfolio mix. (Bernama)
CCM Duopharma Biotech (CCMD) is confident of achieving more than 10% growth in its international sales this year. But its CEO Leonard Ariff Abd Shatar is concerned over certain challenges with the ringgit having appreciated quite substantially since last year. Leonard said the company was also looking into the Australian market this year and was already in talks with one party. He said CCMD would continue to focus on the Middle East and Northern Africa markets. (Bernama)
