20091229 1111 Malaysia Corporate News.

The Association of Banks in Malaysia (ABM) said that banks and other card issuers would collect the service tax from cardholders and pay the sum to the Director-General of Customs and Excise. The service tax becomes chargeable on the anniversary date of issue, or upon renewal of the card. The service tax will not be imposed on debit cards, petrol cards, closed-community charge cards, loyalty cards and E-money such as Touch 'n Go. Banks and other card issuers are allowed to enter into arrangements under which cardholders may apply for redemption/reward points or rebates towards payment of the service tax. (BT)

Gamuda is not ruling out the possibility of cost increases caused by delays related to land acquisitions for the electrified double-tracking project (EDTP) although it is not planning any cost revision at the moment. Group MD Datuk Lin Yun Ling, however, expressed optimism that such complications will be resolved soon with the remaining land in Penang scheduled to be handed over in the coming months. “With the extension of time, the new completion date has been pushed to 2014,” he said. (Financial Daily)

Malaysia is getting closer to reaching its 50% target of broadband penetration rate by 2010 in the domestic sector, having reached 31.4%, surpassing the 30% target set for this year. Minister of Information, Communications, Culture and Arts Datuk Seri Dr Rais Yatim said, “I am confident that the 50% target by end-10 will be an easy reach. Indeed, we might surpass the expectation.” (Bernama)

Celcom (Malaysia) has changed its name to "Celcom Axiata". The name change is in line with the Axiata Group’s branding strategy to fully leverage Celcom’s position as part of a regional telco. This is also in line with other Axiata subsidiaries. (BT)

Palm oil climbed for a second day after a gain in crude oil increased the appeal of the tropical commodity as an alternative fuel. The price “most probably will maintain its current level for this week,” Mona Surya, a director at PT Perkebunan Minanga Ogan, a palm oil producer, said. (Bloomberg, Financial Daily)

The acceptance rate from the total voting shares for the takeover of The News Straits Times Press (M) (NSTP) by Media Prima has passed 79% and the delisting of the former will proceed. "We want to encourage the swap of NSTP shares for Media Prima shares," Media Prima group MD Datuk Amrin Awaluddin. The delisting process would hopefully be completed by 1Q10, Amrin said. (StarBiz)

Astro’s subsidiary, Digital Five, has secured an RM8.9m contract for the supply and licensing of a content provider gateway software system to Saudi Bells Telecom Company LLC (SBC). It will build and develop the system within the Middle East and North of Africa territories. (Bernama)

Malaysia Airports Holdings, which operates the KL International Airport (KLIA), reported a 16.7% increase yoy in international and domestic passenger traffic in Oct for the country's main international airport. Data provided by MAHB showed 18.8% surge yoy to 1.76m international passengers for KLIA for Oct while the domestic passengers was up by 12.6% to 848,656. The company said there was a total 15.7% increase in passenger traffic to 4.48m for other airports operated in Malaysia and abroad for the month under review. It added that the total cargo movement for KLIA increased by 11.1% to 57.53m kg with international cargo increasing by 10.7% to 52.65m kg while domestic cargo rose 15.9% to 4.87m kg. (StarBiz)

AirAsia has incorporated a wholly-owned subsidiary know as Asia Air Ltd for the purpose of facilitating the airline's business transactions. The airline said it has also opened an office in London at 41, Chalton Street. (Starbiz)

The Health Ministry's move to impose a minimum price for cigarettes from 1 Jan is expected to lead to an increase in the smuggling of cheap cigarettes, which this year amounted to RM55.4m. Customs director-general Datuk Seri Ibrahim Jaapar said directors from all customs branches are discussing "strategic steps" to enforce the new decisions, which include monitoring of small retailers for illegal cigarettes. (The Sun)

No-smoking may be made a condition for youth and students to receive aid from the government. Youth and Sports Minister Datul Ahmad Shabery Cheek said the proposal was raised as many people, including youths and students, could still afford to buy cigarettes despite several price hikes. (Bernama, The Sun)

Malaysia Rating Corp (MARC) has revised WCT's bond ratings outlook to "developing" from "negative" as concerns regarding the latter's ability to weather the setback from a cancelled project decreased. 

• MARC said that WCT has written back all of its profits in relation to the terminated Nad-Al Sheba race-course project and has settled its performance security deposits of RM218.6m.
• The company has shown it could replenish its order book, which now stood at RM3.3bn.(Starbiz) 

General insurer Tahan Insurance Malaysia, currently under Bank Negara Malaysia's control, will call for bids through an open tender for its entire business in the first week of Jan 10. Phoon Soon Keong, a Bank Negara appointee now heading the insurer said, "We expect to take about four weeks (for the open tender process) and will then evaluate (the offers). Within another four weeks, we should be able to start negotiating with the selected parties." This sale exercise will be structured as an asset sale as opposed to a share sale, with Tahan eventually becoming a dormant company holding the proceeds from the sale of its general insurance business. Phoon expressed hopes that the exercise would be completed by Jun 10, adding that Bank Negara would decide on the final buyer. (BT)

Pertamina has lost its exclusive right to distribute subsidised oil products in 2010 after Petronas and a local firm PT Aneka Kimia Raya (AKR) won supply tenders. Petronas has won the right to distribute 128,547 barrels of subsidised low-octane petrol in Medan next year. AKR will also distribute 335,328 barrels of subsidised diesel oil in Lampung, Banjarmasin and Pontianak. (Reuters)

Octagon Consolidated has teamed up with Bahrain-based Tadhamon Capital BSC to construct and operate a 40MW waste-to-energy plant in Colombo, Sri Lanka. Under the agreement, Tadhamon and Octagon’s subsidiary, Green Energy and Technology, will hold 95% and 5% respectively of the new SPV with a paid-up capital of US$100. (Financial Daily)

Integrax’s subsidiary PT Indoexchange Tbk (INDX) plans to raise funds through the Indonesian capital market in the immediate future and has submitted a proposed quasireorganisation scheme to the relevant Indonesian authorities last week. To date, Integrax holds 70.3% of the issued and paid-up capital of INDX. (Bernama)

Crest Builder Holdings’s subsidiary, Crest Builder Sdn Bhd, has won a RM175.5m job to build two towers of 40-storey serviced apartments in Kuala Lumpur. The job is to be completed by 1 Jan 12. The subsidiary won the contract from Messrs Exceljade Sdn Bhd.(BT)

Pan Malaysia Capital, a member of MUI group controlled by tycoon Tan Sri Khoo Kay Peng, announced yesterday that the Ministry of Finance has “refused” to grant its subsidiary, PM Securities, a merchant banking licence or a restricted merchant banking licence. No reason for the rejection was disclosed. Obtaining an investment banking licence was said to be one of the major steps towards bringing back the glory days of the MUI group. (Financial Daily)

KPJ Healthcare’s shares will be suspended from 4 Jan 10 to facilitate the implementation of its 1-for-2 share split exercise. (Financial Daily)