- Depending on the viability, the highway would later be extended to connect Banting and a town in Johor, believed to be Gelang Patah. The study was based on a proposal made in the 1990s but could not be realised due to the economic slowdown.
- Works Minister Datuk Shaziman Abu Mansor said a viability study on the proposed project was being carried out by the Public-Private Sector Partnership Unit (Ukas) and the Malaysian Highway Authority (MHA). (NST)
The Energy, Green Technology and Water Ministry will explore the possibility of Peninsular Malaysia using renewable natural gas from biogas plants installed at palm oil mills. According to the Malaysian Palm Oil Board, there are 417 palm oil mills in the country, of which 246 are in Peninsular Malaysia. Tenaga is receptive to the concept but stressed that it is important for the government to assess whether it is economically viable to generate the amount of gas needed by consumers. (BT)
Palm oil rose for a second day as soybean futures gained in Chicago and crude oil advanced, boosting the appeal of vegetable oils used to make biodiesel. Palm oil for May delivery added as much as 1.7% to RM2,638/MT, before closing at RM2,630/MT. On the physical market, Indonesia withdrew 10,000 MT of the tropical oil it auctioned after buyers demanded lower prices. (Bloomberg)
Wilmar International aims to expand its India business to about half the size of its Chinese operations in the next 10 years, CEO Kuok Khoon Hong said. The expansion in India will include crushing oilseeds, and refining and bottling cooking oil, Kuok said. "Our company grows very fast, so we have to look into new businesses to expand into," Kuok added.
- Wilmar also plans to enter the sugar-milling and the cane-plantation businesses in Indonesia and expand its rice and flour milling and oilseed crushing businesses in China, Kuok said. The company aims to double its milling capacity in China to at least 2m tonnes of rice and flour, he said. (Bloomberg)
Allianz Malaysia says its gross written premium (GWP) rose 17% to a record RM2.1bn in 2009, driven by its life and general businesses. Backed by strong performance from its general insurance business, its CEO Alexander Ankel said that business recorded RM1.2bn in GWP last year, 12% growth from 2008. He said the combined ratio of Allianz General stood at 87% compared with 88% previously.
- Allianz General also recorded a commendable underwriting profit of RM102.4m, representing a 29% jump from 2008 through its prudent underwriting and strong risk management.
- "This clearly makes Allianz General Insurance Co (Malaysia) Bhd (AGIC) the number one general insurance provider in Malaysia," Ankel said, noting that it command a market share of 10.4%.
- AGIC chief executive Ng Hang Ming, meanwhile, said the core of its success is its diversified distribution channels. "The agency force of about 5,500, the corporate brokers and bankassurance through partnership with CIMB Bank similarly contribute to new business of its products which include motor, fire and personal assurance," he said.
- Allianz Life Insurance Malaysia Bhd also created waves with strong profitable growth in 2009. It recorded RM868.7m in GWP, interpreting a 26% increase over RM692m in the previous year. Its total assets increased to RM2.53bn from RM1.97bn in 2008.
- For 2010, Ankel said Allianz will continue to focus on profitable growth while further enhancing various productive distribution channels, especially its core agency force in life insurance business. "We will create a common sales and service platform for our life and general business through our One Allianz initiative," he said. (BT)
Affin Islamic Bank is optimistic that it can increase its market share by 10% this year, from 3% to 4% currently, CEO Kamarul Ariffin says. "It's a good percentage to grow and it's something that we strive for, be it local or internationally," he said.
- The lender also wants to open more branches. Presently, there are five Affin Islamic branches located in the Klang Valley, Penang and Johor.
- "We are looking at having one branch in each state in the next two to three years," he said, without revealing investment figures.
- Affin Islamic also wants to expand to Indonesia, although Kamarul did not specify a time frame.
- Affin Islamic is unlikely to drop the bai bithaman ajil financing structure, its chief said, reflecting the industry's struggle to achieve a common stand on the disputed contract. Bai bithaman ajil is a popular contract that is based on the controversial bai inah concept, which has drawn comparisons to a conventional loan. Some practitioners have argued that it will eventually be phased out as banks strive for wider markets. (BT)
Export offers of Malaysian billet have gone up by US$15-30/tonne in the past two weeks in response to higher scrap costs. Malaysian mills were offering at US$500-535/tonne fob this week, up from US$500-520 fob in mid-February, said market participants in Malaysia, Singapore, Vietnam and Indonesia. Transaction prices have also risen to US$480- 520/tonne fob, from US$480-505/tonne two weeks ago.
- "Of course we try to push prices up. Prices usually go up after the Chinese New Year. Scrap costs have gone up too. But how fast this billet price can go up depends on the market sentiment," said an official at a Malaysian mill. A buyer in Singapore bought at US$516/tonne fob last week, but so far, deals largely range between US$490-500/tonne fob, he said.
- Market demand was reported to be particularly strong in Vietnam, where there are many enquiries and some deals closed at US$500-520/tonne fob.
- In Indonesia, offers from Malaysia are at US$535/tonne fob, or US$550-560/tonne cfr. But no deals have been concluded as most traders and buyers in Indonesia think prices are still high. (Metal Bulletin)
- Malaysian Corrugated Carton Manufacturers Association president Soh Man Tong said raw paper prices have jumped 30% between US$450-US$480/tonne in Feb-10 from between US$330-US$350in Sep-09.
- Raw materials like imported paper are the main component of a corrugated carton box. "China is gobbling all the raw and waste paper to make corrugated cartons resulting in a world shortage of between 30-40%.
- Paper prices and the costs of other sub-materials like starch and pallets used to make corrugated carton boxes and its related products have increased substantially in the last few months due to higher raw material prices. (BT)
Malaysian Airline System (MAS) may introduce "premium economy" seats in its doubledecker Airbus SAS A380s as tighter corporate travel budgets damp demand for businessclass seating. "A premium-economy cabin in our A380s would provide another option for our passengers," Amin Khan, the carrier's senior general manager for network and revenue management said.
- It would serve "those organisations that maintain economy-class travel policy for their employees, even after the recession." The carrier may include premium-economy class in its six on-order A380s to lure travellers seeking more comfort than is available in coach at prices lower than in business class. (Bloomberg)
Celcom Axiata is considering selling iPhone's in Malaysia's telecommunication market. CEO Datuk Seri Shazalli Ramly said the company would study the viability of the plan carefully as it required a dedicated end-to-end system for the iPhone.
- "Unlike normal GSM phone, the iPhone requires lots of after-sales service and a good support and customer service system," he said. Meanwhile, Shazalli said Celcom has set aside RM900m-RM1bn for capex this year, out of which 40% would be allocated to improve its 3G and data broadband services. (Bernama)
Proton appointed an Indian national, Behara Venkata Rama Subbu, as a new member of its board with immediate effect. Subbu had served as president of Hyundai Motors India and after leaving Hyundai in 2006, he took on advisory roles in several automotive outfits based in India.
- Proton's chairman Datuk Mohd Nadzmi Mohd Salled said the new board member's extensive experience in the Indian automotive market would be valuable to Proton in its plans to expand its business in India. (Financial Daily)
YTL Corp is on the lookout for hotels and resorts in Asia-Pacific and Europe to grow its hospitality business. The company, which is sitting on a huge cash reserve of > RM10bn, wants to buy completed properties, or build new ones, and manage more assets, the resort manager for Pangkor Laut Resort, Jeffrey Mong, said.
- By July, YTL will open a boutique hotel in France, called Muse, a new brand on an existing hotel in St Tropez which YTL bought in 2007. On the home front, YTL will set up two resorts in Sabah at a cost of some RM200m by mid-2011. (BT)
- The offer is conditional upon a due diligence that should be completed by March 22 and which includes a final valuation of the assets within the group. “The earnings numbers that have surfaced in Q4 is an indication that the value of the group’s assets may not be as high as expected.
- It will not be surprising if the valuation numbers change,” said an investment banker who is following the deal closely. Considering the conditionality of the offer, the buyers are entitled to lower their offer price or even withdraw their offer altogether based on their findings from their due diligence on KNM. (Starbiz)
Soren Ravn, 36, has been appointed the managing director of Carlsberg Brewery Malaysia following the resignation of Soren Holm Jense, 41, yesterday. Ravn was formerly Carlsberg Hong Kong and Macau managing director. (Starbiz)
JT International has appointed Shigeyuki Nakano, the JT International group's Asia Pacific vice-president of consumer and trade marketing, managing director of Malaysian operations from March 1. He takes over from Martyn Fraser Griffiths, who resigned. (Starbiz)
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