20100301 1054 Malaysia Corporate News.

Alliance Bank Malaysia's CEO Datuk Bridget Lai will leave the company on 1 Apr, effectively putting an end to a board room saga that has lasted for over two months. Lai and the bank said in a joint press statement that they have arrived at an amicable settlement of their ongoing dispute.

• "In view of the differences of opinion between the board of directors and Lai that have arisen over the last few months, Lai has decided to tender her resignation. This is a joint decision ... and the resignation is not in any way a reflection of Lai," the statement read. Talks are that a candidate to replace Datuk Bridget will come from Singapore's state investment firm Temasek Holdings or DBS bank. (BT) 

The resignation of the CEO does not entirely come as a surprise to us as we see this as a possibility since the beginning of the internal probe. Now, the focus of the board of directors would be on scouting for a successor for Datuk Bridget. We view the change in management negatively as this could slow down the growth momentum in the near term. Furthermore, the new CEO may alter the strategic plans for the group, which could involve the refocusing of the group’s resources in a new direction.

Sarawak has not decided yet on the electricity tariffs for Sarawak Corridor of Renewable Energy (Score), said Second Planning and Resource Management Minister, Datuk Amar Awang Tengah Ali Hassan. "The tariffs will only be decided after a thorough discussion with the federal government," he added. (Bernama)

The RM1bn Kuala Lumpur-Kuala Selangor Expressway (KLS) project, set to open in Jun-11, will benefit several housing and industrial projects in Selangor, says Chairman Datuk Mohamad Razali Othman. Projects and towns that may benefit from KLS include Kundang Jaya Industrial Park, Bandar Baru Kundang, Ijok, Bandar Tasik Puteri, Rawang and Sg Buloh.

• KLS is a 33km two-lane dual carriageway with five interchanges, three toll plazas as well as a rest and service area, connecting Assam Jawa near Kua-la Selangor to Templer's Park near Rawang.

• The highway will cut travelling time from Kuala Lumpur to Kuala Selangor and vice versa, to just 30 minutes from two hours currently. The 40-year concession is owned by equal JV between Bina Puri Holdings and privateley held Arena Irama S/B. (BT)

Sime Darby sees crude palm oil (CPO) prices hovering between RM2,000 and RM2,200 per tonne for the next six months. The outlook for its plantation business, which accounted for the bulk of its earnings, is expected to be "positive" given that "market fundamentals remain favourable" to CPO prices. (Malaysian Reserve)

Indian mobile phone users will finally be able to access advanced data transfer and highspeed Internet on their handsets through 3G and broadband wireless access (BWA) post Sept 2010. The department of Telecom has set Sept as the timeline when successful bidders will be allowed to use the alloted airwaves for commercial operations.

• The government has issued notice inviting bids from private telcos in the auction of 3G airwaves, allowing three private players each in 17 circles and four in the remaining five circles including Punjab, West Bengal and Bihar. The government has now released a definite timeline for auctions. 
• The last date of submissions for applications is Mar 19. The mock auction will take place on Apr 5 and 6, which will be followed by 3G auction on Apr 9, 2010. The successful bidders would be required to cover at least 90% of the service area with 3G technology within five years from the date they start 3G services. (Economic Times of India)

Prime Minister's Information Technology Advisor, Sam Pitroda, today said that the Indian Government expects to complete the 3G auction within the next two months, enabling operators to roll-out their services soon.

• "This (the 3G auction) will be completed within the next 60 days. The operators would start offering the service in this calendar year itself," Pitroda told reporters on the sidelines of a conference here. Noting that the auction process is "already delayed", Pitroda said the Government wanted to complete the spectrum sale as soon as possible. " 
• The auction is already delayed but it will be completed soon...there is no question of any kind of uncertainty (in the auction process)," Pitroda said. (Economic Times of India)

Volkswagen Group Malaysia (VGM) and its newest dealer, Permaju Industries, have pledged to bring a new level of experience to owners of Volkswagen vehicles. Permaju, through wholly-owned Cergaz Autohaus, is set to open its first VW dedicated 3S (sales, service and spare parts) centre in Taman Tun Dr Ismail (TTDI), Kuala Lumpur, by the end of this month.

• Cergaz Autohaus has set aside a budget of RM20m for the new venture to sell and service the likes of the Passat, Scirocco, Polo, Touareg, Tiguan and Golf GTi. A bodyand- paint shop will be set up at the TTDI centre in due course, senior executives of VGM and Cergaz Autohaus said. (BT)

Deutsche Bank has received an international Islamic banking licence from Bank Negara. This makes it the third bank to obtain the licence since the Malaysian Islamic Finance Centre offered such a licence in 2006. (Financial Daily)

KKB Engineering is investing RM20m in a new steel fabrication plant to double its annual capacity to 30,000 tonnes in 1H11. Group executive director Kho Pok Tong said the proposed plant at Muara Tebas near here would have direct access to Sungai Sarawak.

• The project will incorporate jetty facilities for efficient logistical deployment of fabricated steel structures and related products. Kho said the company’s existing steel fabrication activities at Bintawa Industrial Estate would be relocated to the new plant, which is geared to cope with rising demand and future requirements. (Starbiz)

PJ Development Holdings (PJD) said the Securities Commission (SC) has approved the listing of its wholly-owned subsidiary OCC Cables (OCB) on the main market of Bursa Malaysia subject to certain conditions. (Malaysian Reserve)

ECS ICT, an e-commerce systems and solutions provider, is targeting proceeds of RM39.42m from its proposed flotation en route to a listing on the Main Market of Bursa Malaysia. The MSC company plans to issue 27m new ordinary shares of 50 sen at RM1.46 each and offer for sale 20m shares, according to its draft prospectus. (Financial Daily)