20110418 1032 Malaysia Corporate Related News.

  KLCI chart reading :
correction range bound upside biased.

Iskandar Malaysia to get RM1.2bn inter-city commuter train
The Iskandar Regional Development Authority (IRDA) has given the go-ahead for the proposed RM1.23bn modern inter-city commuter train service network in Iskandar Malaysia. The train service will have an annual ridership of over 30 million. Metropolitan Commuter Network Sdn Bhd, a tie-up between KUB Malaysia Bhd and Malaysia Steel Works (KL) Bhd, will undertake the job.(Malaysian Reserve)

HTC will launch 2 smartphones by mid-year
HTC Corp, one of the fastest growing companies in the mobile industry, will launch another five smartphones this second quarter, according to vice president for Asia region Jack Tong. The company has launched two smartphones, namely HTC Desire S and HTC Flyer tablet, prior to its partnership with Maxis Bhd, he told reporters after signing a memorandum of understanding (MoU) with Maxis on Friday.(StarBiz)

Debit card usage set to surge
The debit card market, which has played a second fiddle in terms of popularity to credit cards, is expected to see a 50% to 0% growth in terms of usage this year as a result of stricter credit card measures aimed at reducing household debts. Introduced in 2005, debit card usage in 2010 has grown by 68% y-o-y to approximately RM4.7bn. (StarBiz)

New shareholder for Extol
ACE Market-listed Extol MSC may get a new lease of life with the recent entry of a new shareholder in the lossmaking company. Last week, Mohd Badaruddin Masodi emerged as a substantial shareholder after acquiring 10.2 million shares, or a 9.76% stake in Extol, becoming its fourth largest shareholder. Newly-appointed CEO Lim Chew Hian ceased to be a substantial shareholder in the company after disposing of her entire shareholding of 8.7 million shares at 19 sen apiece. (Financial Daily)

Petrol One aims to return to profitability
Petrol One Resources Bhd, formerly known as Changhuat Corp Bhd, aims to be back in the black by FY12 ending 30 June on the back of more contracts as it expands its floating oil storage business. Speaking to the Edge Financial Daily recently, Petrol One executive director Lee Wei Hong said the company expected to own five very large crude carriers (VLCC’s) by FY12, starting with the acquisition of two vessels by 3Q 11. (Financial Daily)

Malakoff mulls placement of minority stake to foreigner
Malaysia’s largest independent power producer (IPP) Malakoff Corp Bhd is considering a placement of a minority stake to foreign investors(s), which could then be followed by a possible re-listing exercise on Bursa Malaysia. Currently, the company is owned by MMC Corp Bhd, the Employees Provident Fund Board (EPF) and Kumpulan Wang Persaraan (KWAP), with 51%, 30% and 19% stakes, respectively. (Malaysian Reserve)

UDA Holdings to find JV partner by end-2Q
UDA Holdings is looking to finalise its joint venture partner for the RM5bn redevelopment project of the former Pudu Prison site, located in the heart of Kuala Lumpur, by end of the second quarter this year. Managing director Datuk Jaafar Abu Hassan said UDA Holdings will start the ground development by the fourth quarter of 2011. (Malaysian Reserve)

TM allocates RM100m for upgrade, network migration in Sarawak
Telekom Malaysia Bhd (TM) has allocated over RM100m annually, for network migration and upgrading in Sarawak, which will involve massive investment in core network, backbone fibre transmission network and local access distribution network. In addition, as part of the National Broadband Initiative, which seeks to enhance broadband access to more people in the country, TMM is continuing its efforts to bring broadband to the greater community in Sarawak. (Malaysian Reserve)

Proton: Secures financing for Lotus turnaround. Lotus Cars Ltd, a wholly-owned subsidiary of Proton Holdings Bhd, has secured GBP270m (RM1.33b) in financing for its turnaround plan where it hopes to break even in 2014. (Source: Bursa Malaysia)

Alam Maritim: Firms agree on Sabah venture. Alam Maritim (M) Sdn Bhd, a wholly-owned unit of Alam Maritim Resources Bhd, has signed a joint venture and shareholders' agreement with Yayasan Sabah Shipping Sdn Bhd to participate in the economic and commercial activities in Sabah, particularly in the oil and gas industry. (Source: Bursa Malaysia)

Media: TV stations going digital. The government may soon call a tender by way of a request for proposal (RFP) for the conversion of the analog to the digital system for all terrestrial television stations that could cost at least RM1b. The license allows successful bidders to provide digital TV transmission services to all free-to-air (FTA) terrestrial TV stations. (Source: Business Times)

Shipping: Consolidation seen. The global container market is poised to consolidate in the next few years as AP Moller Maersk and other major shippers roll out bigger vessels, potentially forcing smaller rivals to drop out of an already oversupplied market. (Source: The Star)

Rubber: Malaysia to expand rubber area. Malaysia will expand its rubber cultivation area to 1.2m ha by 2020 under the rubber industry development plan. The move would enhance national productivity up to 2,000kg per ha per year. (Source: The Star)   

Lotus Cards Ltd signs RM1.3bn deal for turnaround credit facility
Lotus Cards Ltd, a unit of national car producer Proton Holdings Bhd, signed an agreement for a GBP270mn (RM1.3bn) credit facility to be extended by a syndicate of six financial institutions. The six financial institutions, which will act as lenders, are CIMB Bank, Malayan Banking Bhd, Overseas-Chinese Banking Corp Ltd, Export- Import Bank of Malaysia Bhd, Afffin Bank Bhd and EON Bank Bhd. (Malaysian Reserve)

Jobstreet, MOHE to power new career portal
Online recruitment portal JobStreet.com and the Ministry of Higher Education (MOHE) have embarked on a partner-ship to power the ministry’s career portal, which will help match internships and jobs sought by Malaysian Graduates. Named”!Nation Career Portal”, JopbStreet.com and MOHE signed a memorandum of understanding (MoU) to seal the partnership at the opening day of the Malaysia Career and Training Fair (MCTF) 2011 in Kuala Lumpur last Friday. (Malaysian Reserve)