Malaysia's rubber glove makers are willing to pay the market price for natural gas, over a period of time, but the government needs to guarantee that they will have enough supply. "We are willing to pay market price, on a phase-by-phase approach," Malaysian Rubber Glove Manufacturers' Association (MARGMA) president Lee Kim Meow said. • "We appeal to the government to allocate more natural gas to our sector as we're fast becoming a significant contributor to the country's exports," he said. "Many of our members are unable to expand like before because there is uncertainty in supply of natural gas and foreign labour," Lee said. (BT) Across the board, natural gas makes a bulk of the heating source for rubber glove manufacturers and about 7% of their cost on average. Inability to obtain additional supply of natural gas has made it difficult for the rubber glove companies to plan for expansion. From our recent channel checks with the manufacturers, they are currently tapping on their existing supply of natural gas or building new biomass facilities for their heating source in their upcoming expansion. Nevertheless, an increase in energy (natural gas and electricity) prices can usually be passed on to their customers with a time lag of about 1-2months.
From Oct, the state government is projected to receive RM320m in royalty payments from the developer of the Bakun hydroelectric dam. According to a source, Sarawak Hidro will pay RM162.3m in a one-off special payment to the state government, plus RM155m in water royalties and RM3.6m in licensing fees. • The source said Sarawak Hidro and the state government had already agreed in principle to the terms and conditions of the royalty payments. The Bakun project is now about 98% completed. However, it is learnt that there is a slight delay to the impoundment of the dam. (The Star) Sarawak Hidro is wholly-owned by the Ministry of Finance.
CPO futures prices on Bursa Malaysia Derivatives are likely to stay firm next week on bullish outlook for the commodity, dealers said. Dorab Mistry, whose forecasts are keenly watched, had earlier said that price of CPO could rise to RM2,800 to RM3,000 per tonne by the end of the first quarter of 2010 on higher global demand. With increasing global demand, the price of palm oil is also expected to be higher than other vegetable oils. • One market player said the bullish outlook will encourage traders to take position in the first week of January, adding that the price of CPO could move between RM2,600 and RM2,800 per tonne next week. However, the Malaysian market performance will also largely depend on external factors such as soyoil prices on the Chicago Board of Trade and Dalian market, as well as crude oil price, he added. (BT)
The Sabah Industrial Development Ministry will focus more on efforts to enhance downstream industries in the state, said its minister Datuk Raymond Tan Shu Kiah. He said at the moment, commodities such as palm oil, timber and rubber were exported overseas and were among the main sources of income for Sabah. "We do not want all of the commodities to be exported overseas. Some must be kept for downstream industry development," he added. (Bernama)
The Rubber Industry Smallholders Development Authority (Risda) has identified 4,000ha of land in Asajaya, Betong, Sarawak that has potential to be developed into oil palm and rubber plantations, said its chairman Tan Sri Abdul Rahim Tamby Chik. Abdul Rahim said for a start 400ha will be developed by planting 120ha with oil palm and the rest with rubber trees if the land is suitable. (Bernama)
The ECER will focus on bringing in more domestic and foreign investments in 2010 while increasing private sector participation within the region. ECER Development Council chief executive Datuk Jebasingam Issace John said ECER has already attracted a total of RM26bn in expressed and committed investments, from both local and foreign sources. (Bernama)
Two new toll-free highways will be built to reduce traffic congestion along existing expressways and bring more progress to the south-western part of Negri Sembilan. One of the stretches will be between the KLIA and Seremban while the other will connect Port Klang with Port Dickson. MB Datuk Seri Mohamad Hasan said the proposals have been submitted to the federal authorities. The Seremban-KLIA stretch would not cost much as it would be built parallel to the existing trunk road. The cost is estimated at RM200m. (Star)
This year will be the broadband year for Malaysia - expect intense competition, new devices and packages flooding the market place, and do not rule out fixed broadband players stealing some market share from wireless palyers. Telekom is expected to deliver its HSBB in some areas. • Equally interesting will be Maxis's entry into the fixed broadband market. Time dotCom (TDC) will reemerge while YTL Communications, which has been grossly overselling its WiMAX 4G idea, wants to "sizzle" the market with a grand entry in July. "Competition will be very hot and players will resort to all kinds of tactics to get consumers. • Mobility will remain but increasingly the shift towards fixed broadband will take place," an industry player said. TDC CEO Afzal Abdul Rahim echoes that view and to him the fight between the wireless and fixed broadband players will get "hot". • "We are more conservative in our approach but we should worry about Maxis coming into the market place as the levels of competition will increase with the tremendous strength and brand equity they have and they will certainly take a tremendous share of the market and I am sure my friends at TM feel that way too." (StarBiz)
A nine-member Indian ministerial panel led by Finance Minister Pranab Mukherjee may be asked to finalise the payment schedule for successful bidders of 3G spectrum, after the ministries of finance and telecommunications failed to agree on a timeline, said a government official. • “The finance ministry wants full payment at one go in the upcoming spectrum allocation, as is the norm and as was decided in the EGoM,” the official said, requesting anonymity. After the last meeting of the inter-ministerial panel on Dec 21, telecom minister A Raja said that telcos are required to pay only 25% of the bid amount this fiscal and the rest when the spectrum is allotted in Aug 2010. (Economic Times of India)
The Department of Telecom (DoT) of India said that mobile number portability (MNP), will be introduced in all parts of the country from Mar 31. “The government has now decided to implement it in whole of the country in one go, by Mar 31, 2010,” the ministry of communications and information technology said. • But, as per the original plan, mobile users in metros and category A circles like Tamil Nadu and Maharashtra were slated to avail this provision from Jan 1, 2010, while the rest of the country would have had access to MNP from Apr 1. But this deadline could not be met after many telecom companies informed DoT that they would require more time for upgrading their networks. (Economic Times of India)
Finance Ministry (MOF) is finalising the list of companies under MOF Inc and selected government agencies that will be shortlisted for the second wave of privatisation as announced in Budget 2010. A government official said discussions are ongoing between the ministry and companies, agencies as well as the Economic Planning Unit (EPU) in the Prime Minister's Department. • "We are still finalising the list of companies and agencies. We are having discussions with both divisions within MOF and other relevant government agencies," say the official told. "On the government agencies, the MOF still need to have detailed discussions with the EPU and the agencies concerned that are viable to be privatised," the official said. (BT)
Standard & Poor's Rating and Fitch Ratings have revised Tenaga’s ratings upwards to better reflect its improved standalone credit profile following the recent and more frequent tariff adjustments, which point to an enhanced tariff setting mechanism. (BT)
Institutional investors, Khazanah Nasional and the Employees Provident Fund (EPF), are believed to have agreed to sell their combined 20.7% stake in EON Capital, sources told StarBiz. This followed an earlier decision by two major shareholders – Rin Kei Mei and Tan Sri Tiong Hiew King – to seek permission to negotiate with Hong Leong Bank for the sale of their combined indirect stake of 31.7%. • “The pending deal for Hong Leong Bank’s proposed buyout of EON Capital seems to have reached a tipping point,’’ a source said. “The move of placing an additional 20.7% of EON Cap shares, on top of the combined indirect 31.7% held by Rin and Tiong, into Hong Leong’s hands would appear to seal EON Cap’s fate of being absorbed into an enlarged Hong Leong banking group.’’ (Starbiz)
Armed with a cash pile of RM1.3bn, KL Kepong is looking to expand its plantation and oleochemical businesses this year via acquisitions. In line with its expansion strategy, KL Kepong is also looking at building strong teams to manage both its upstream and downstream activities. • "We look to grow our plantation landbank via greenfield or brownfield acquisitions whenever we find suitable opportunities. For oleo, it is the same strategy, especially if new projects or acquisitions fit well into our overall business plan," its palantations director Roy Lim said in an email reply to queries. (Financial daily)
SP Setia may build towers and buildings at the Setia City commercial hub, its flagship township in Shah Alam, Selangor, by as early as 2012, says Bandar Setia Alam S/B GM Tan Hon Lim. The 63.2ha Setia City will be developed in two phases. Phase 1 comprises the 1.23m sf Setia City Mall, worth RM750m, and a central park, estimated to cost more than RM10m. • Phase 2 will feature more than 20 low-and high-rise buildings, including office towers, corporate towers, serviced apartments, institutions and hospitals. Development of phase 2, which is still in planning stage, will commence pending market conditions and the completion of phase 1. SP Setia's unit Bandar Setia Alam, will build the mall with Lend Lease Asian Retail Investment Fund 2 Ltd in a 50:50 joint venture, on 12.2ha. (BT)
YNH Property expects to start within six months construction work on the proposed Menara YNH, located beside Shangri-La Hotel, along Jalan Sulan Ismail, says YNH head of corporate strategy, Daniel Chan. Although Kuwait House pulled out of the Menara YNH project two weeks back, YNH is going ahead with building the project. • YNH is currently making amendments to the project design to improve efficiency tenant space by 10-15%. The green project, built according to the Green Building Index specification, will have 1.5m sf net lettable space. (Starbiz)
MMC Corp’s Port of Tanjung Pelepas (PTP) announced the retirement of its CEO Captain Ismail Hashim with effect from31 Dec 09 after more than 10 years of service. Deputy CEO Azlan Shahrim will cover the position until a new CEO is appointed. (Bernama)
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