Bahrain Asphalt Establishment B.S.C. (BAE) has served a request for arbitration against the
Gamuda-WCT JV pertaining to the subcontracted pavement works for the completed Dukhan Highway in Qatar. BAE is claiming a total sum of RM101.1m comprising RM87.8m for the prolongation, escalation and associated cost for the delay in completion of subcontracting works, RM12.4m for overcharging/wrongful deduction of aggregates and RM0.9m for wrongful deduction for the supply of bitumen. Gamuda-WCT JV highlighted that the request for arbitration by BAE is premature as the preconditions for the arbitration have not been met. This suggests that the JV has a good defence against the claims. (BMSB)
The price of
palm oil may rise to as high as RM3,300/MT in 2H2010, as the global supply of vegetable oils struggle to meet burgeoning consumer demand, industry experts predict. "Vegetable oils supply is under pressure. For the first time in history, Malaysia's palm oil production will fall for two years in a row, and this year it is likely to be 17.2m tonnes.
- My reasons are already well-known - the prevailing El Nino, the government's ongoing replanting scheme and most biological cycle of palm trees," said India's Godrej Group director Dorab Mistry. Mistry also said that a strong US dollar in the next few months acts as a calming influence on commodities prices. However, he expects the greenback to weaken around July, prompting commodities to move ahead strongly. (BT)
The new US dollar-denominated
palm oil futures contract is scheduled to be launched in Kuala Lumpur on May 24 and simultaneously in Chicago on May 23. "It is an outstanding development. I think it will increase the portfolio of contract in the palm oil industry on a global basis," said Attunga Capital Pty Ltd's portfolio manager Phillip Pyle. (Bernama)
Malaysia is confident of exceeding the total
palm oil export figure of RM50bn registered last year. This follows a strengthening of
CPO price and a forecast increase in production for this year. "The price is better this year and we are certainly going to exceed the 2009 figure. As for surpassing the 2008 figure, we will work on that," said Minister of Plantation Industries and Commodities, Tan Sri Bernard Dompok. (Bernama)
Palm oil will continue to play a leading role in sustainability as well as major role in feeding the growing world population.
United Plantations vice-chairman and ED of corporate affairs Datuk Carl Bek-Nielsen said palm oil continues to lead in sustainability as oil palm areas as at 2009/2010 only cover 5.5% of world agriculture area compared with soyabean's 44.3%. (BT)
Telekom Malaysia (TM) which is set to launch its triple play retail service bundle by month's end, is open to leasing capacity from other players to deliver its high speed broadband (HSBB) services should such commercial arrangements make sense, its group CEO Datuk Zamzamzairani Mohd Isa said.
- "At the end of the day, it's all about (financial) feasibility...Why not lease if it makes sense? We (TM) would have rolled out a HSBB network even without the partnership with the government, but the rollout would be purely done on a commercial basis because we (as a public-listed company) would have obligations to shareholders," he said.
- Meanwhile, TM would expand its HSBB network beyond the 1.3m premises (by 2012) stipulated under its partnership with the government, Zamzamzairani said but this would be done for areas with sufficient demand. (Financial Daily)
DiGi plans to invest another RM60m in sustainable programmes in Malaysia until 2012, said its CEO Johan Dennelind. DiGi had invested RM40m since 2008. (StarBiz)
Broadband provider
Tanjong Agas Technology (TATSB) said its high-speed
broadband dubbed "TARB" is to complement the market and not to compete with existing broadband players to provide retail business, said its managing director Mohd Faidzal Ahmad Mahidin.
- "We have no plans to go into the retail business," he told Business Times in Kuala Lumpur last week.
- He said TATSB is more comfortable in providing high-speed broadband infrastructure to the market. It is ready to expand its broadband services nationwide before the end of this year.
- He said the company will provide the broadband connection through a system called Broadband Over Power Line (BPL). (BT)
Privasia Technology has been awarded the contract to design, supply and install equipment for Phase 1 of the high speed
broadband network by
Jalur Lebar Nasional (Jalenas). The job involves setting up the infrastructure in Kuantan, Pahang. Under the agreement, Jalenas also has the option of appointing Privasia for the subsequent maintenance and support services for the active components rolled out under Phase 1. (BT)
Billet prices into Southeast Asia have risen by US$45 per tonne cfr in the past week due to higher
scrap costs. Prices have risen to US$500-545 per tonne cfr, from US$490-500 per tonne cfr last week. Offers from Turkey, Russia and US continue to jump, reaching US$540-550 per tonne cfr, from US$520-530 cfr last week, said sources in Malaysia, Singapore, Vietnam and Indonesia. Malaysian billet offers have also gone up to US$520- 540 per tonne fob from US$500-535 fob last week, said sources.
- Billet offers are highest in Vietnam at US$540-550 per tonne cfr but the "highest bid is only at US$520 per tonne", said a Vietnamese mill official. "We are still waiting to see if the traders from Turkey and Russia will accept the bids," he said. Turkish and Russian billet are cheaper than Malaysian material and so are more popular in Vietnam.
- Billet transaction prices are highest in Indonesia when some mills are buying Malaysian billet at US$545 per tonne cfr. Most Indonesian buyers however are staying away from the market.
- Meanwhile, billet prices in the Malaysian market have risen to touch US$525 per tonne, the highest in any domestic market in the region, said sources. (Metal Bulletin)
Malaysia Airlines, which carried 3.5m passengers from Kuala Lumpur to destinations in Australia last year, expects a 5% growth this year. Its assistant general manager of sales for Malaysia and Brunei, Azman Ahmad, said MAS would introduce two new weekly direct flights to Brisbane from March 28.
- “The flights on Fridays and Sundays will complement our current five weekly flights from Kuala Lumpur to Brisbane via Sydney,” he told a press conference after the launch of “Only in Oz Holidays” campaign in Kuala Lumpur yesterday. Azman said MAS would also increase its flights to Perth to 10 weekly. (Bernama, BT)
PLUS Expressways says it does not see the need for a second north-south highway because Malaysia does not have the traffic volume. MD Noorizah Abd Hamid said the existing North-South Expressway (NSE) was still underutilised and it would be costly to build a second one. (BT)
Petronas is keen to work with Norwegian
oil & gas firms to leverage on their expertise in deepwater exploration, said president and CEO Datuk Shamsul Azhar Abbas. “Recently Petronas acquired six new exploration blocks in Greenland from UK’s Cairn Energy plc with the aim of strengthening its presence in exploration," said Shamsul. He added that if the partnership with the Norwegian firms is successful, it could pave the way for similar mutually beneficial alliances in other areas of exploration. (Bernama)
Naza Group and TH Properties have agreed to work together in various initiatives that the two can collaborate in. The first venture involves the development of 52 high-end residential enclave bungalows with a GDV of RM100m at Bandar Enstek, Selangor. It is understood that the project, which is specifically targeted at the Malaysia My Second Home (MM2H) market, will see the properties bundled with vehicles from Naza. (BT)
Kulim (M) is selling Menara Ansar in Johor, to AmanahRaya Trustees Bhd for RM105m. Kulim will be paid partly in cash of RM63m, while the remainder will be through the issuance of 42.9m new units of
Al-'Aqar KPJ REIT at an issue price of 98 sen per unit. Kulim MD Ahamad Mohamad said proceeds from the divestment will be utilised for repayment of the group's borrowings. (BT)
Bolton will launch four projects worth RM1bn this year as it is bullish on the market, its chief said. Executive chairman Datuk Azman Yahya expects its property sales to improve 50% next year to some RM425m. On the redevelopment of the 12-storey "Bolton Court" in Bukit Ceylon, Kuala Lumpur, Azman said the company will start building a 33-storey condominium block on the site six months from now, to be named "sixceylon". (BT)
Malaysian Merchant Marine will downsize its operations in all areas to contain operating and administrative overhead costs. This follows its inability to buy a chemical tanker that was instrumental in the company’s turnaround plan. MMM will sell its wholly owned subsidiary in Singapore, C M Ram Holdings Pte Ltd and its four subsidiaries. “The subsidiaries are being disposed to Mr Gurudaib Singh for S$1 per company. There are no related party transactions in this disposal,” it said. MMM did not identify who Gurudaib is. (BT)
Sumatec Resources’ sub-subsidiary Sumatec Engineering & Construction has secured a RM49.24m contract from Asean Bintulu Fertilizer to upgrade its plant. (Financial Daily)
