20110421 0953 Malaysia Corporate Related News.

 KLCI chart reading :
side way range bound little upside biased.

TRC gets RM43.8m contract from Putrajaya Holdings
TRC Synergy’s wholly- owned construction arm, Trans Resources Corporation SB has secured a contract to undertake the construction of 2 types of public housing at Precinct 8 (Phase 1), Putrajaya worth RM43.8m. In a statement on 20 Apr, TRC said the contract was scheduled to be completed within 20 months. It said the project involved the construction of 40 units of 3-storey semi-detached and 4 units of two-and a half-storey semi detached public housing at two different parcels of land at Precinct 8, Putrajaya. TRC executive chairman, Datuk Seri Sufri Mohd Zin said the company won the contract due to its track record in timely and quality delivery. (Financial Daily)

RM11.2bn new investments under 5th ETP update
Prime Minister Datuk Seri Najib Razak unveiled seven new entry-point projects (EPP) and recapped five previously announced projects at the fifth progress update on the government’s (ETP). The 12 EPPs within seven National Key Economic Areas (NKEAs), with an investment value of RM11.16bn, are expected to generate RM16.62bn in gross national income (GNI) and create 74,457 jobs. “Cumulatively, the ETP has to date garnered RM106.405 billion in investment, RM153.83 billion in GNI and created 298,865 new jobs. The 72 projects within 54 EPP announced to date mean that 41.2% of the 131 EPP have commenced, all in less than six months since the ETP was launched,” Najib said at the progress update. Among the 12 EPP is the RM9.6bn investment to develop the Karambunai Integrated Resort City (KIRC) in Karambunai, Sabah. The project will be developed by a consortium comprising Prism Crystal Enterprises Ltd, Tan Sri Dr Chen Lip Keong and his group of companies and the landowners — Karambunai Corp Bhd and Petaling Tin Bhd. (Financial Daily)

Petronas gets USD2bn for stake in India crude producer
Petroliam Nasional Bhd (Petronas) will receive USD2bn (RM6bn) cash from the divestment of its 14.9% stake in Cairn India Ltd, which is involved in crude oil production in India. It is understood that Petronas would realise a gain of USD1bn from the divestment as the national oil company invested about USD1bn in the company’s IPO at INR160 per share in 2006. Bank of America-Merrill Lynch was the sole adviser and book runner for the deal. (Financial Daily)

Media Prima not hunting for acquisitions
Media Prima group managing director Datuk Amrin Awaluddin said the media conglomerate is not actively looking for asset acquisition to grow its business, preferring to concentrate on integrating the group’s various media assets. Speaking at the press conference yesterday, Amrin noted that Media Prima would still evaluate good opportunities that come its way but the main push is to consolidate its various media platforms that span sprint, broadcast, outdoor advertising, new media and content production. “….we are open to opportunities but when we buy companies, it must be media-related, it must be complementary to our business and it must be earnings accretive,” said Amrin. (Financial Daily)

Tricubes to bank on Government project
Tricubes plans to generate revenue from 1Malaysia Email project via advertising, an online marketplace, and the online delivery of government bills and notices. The financially troubled technology company also sees income potential in facilitating government agencies’ recruitment and registration processes. These services will be available on the web portal that Tricubes is developing under the project. The portal’s main feature is an email account, dubbed the MyEmail account, which will be offered to all Malaysians aged 18 and above for free. (StarBiz)

Cut in mobile phone rates for users in Malaysia, Singapore
Effective 1 May, mobile phone rates for incoming roaming calls and SMS between Malaysia and Singapore will be reduced by 20% and 30% respectively. Information, Communications and Culture Minister Datuk Seri Dr Rais Yatim said the cuts will be reduced further to 30% and 50% for voice and SMS respectively from 1 May, 2012. The cuts are applicable to prepaid and postpaid users subscribing to Celcom, Digi, M1, Maxis, SingTel, Star Hub and U-Mobile, he added. “These are minimum reductions in rates as traffic between both countries increase,” he said at the joint-launch of the rates reduction with Singapore Information, Communications and the Arts Minister Lui Tuck Yew on Wednesday. The rates reduction follows Dr Rais and Lui's joint announcement in June last year to cut mobile phone roaming rates for both countries. (The Star)

Toyota market share drops, rivals maintain share
Toyota passenger market share in Malaysia fell in the first quarter of 2011, while one of its two main Japanese rivals, Honda, managed to maintain its market share, and the other, Nissan, grew its share by about one percentage point. Based on figures released from sources including the Malaysian Automotive Association and company disclosures, Toyota, represented in Malaysia by UMW Toyota Motor, sold 21,310 vehicles in the first quarter of the year, giving it a market share of 13.4%. Toyota’s market share for the full year 2010 stood at 14.8%, The Vios remained as Toyota’s top seller, followed by Hilux pickup truck. (StarBiz)

Puncak Niaga Acquires 55% stake in Reputable Collection
Puncak Niaga Holdings (PNHB) has acquired a 55% stake in Reputable Collection SB (RCSB) via a subscription of 55 shares for RM55. In a filling to Bursa Malaysia yesterday, PNHB said RCSB would become its 55% owned subsidiary. The remaining 45% stake in RCSB is held by Rembulan Mesra SB. RCSB’s subsubsidiary, Jalinan Handal SB will also become a subsidiary of PNHB. (Financial Daily)

Khazanah sounds out Bank Islam on Muamalat stake
Khazanah Nasional plans to sell its 30% stake in Bank Muamalat Malaysia, a move which could pave the way for a merger between the Islamic lender and its bigger rival Bank Islam Malaysia Bhd, sources said. Bank Muamalat is 70%-owned by conglomerate DRB-HICOM Bhd. Bank Islam is the country's oldest Islamic lender. Khazanah, the government's investment arm, is on a mission to gradually divest all its non-core holdings and assets. Managing director Tan Sri Azman Mokhtar, when met by Business Times last week, said Khazanah sees its stake in Bank Muamalat as a "non-core holding" and that it "could be" sold within this year. (BT)

Sime Darby: Insider trading probe. The Securities Commission (SC) is carrying out insider trading investigations surrounding the mega-merger that created Synergy Drive, the group that's now known as Sime Darby Bhd. The capital market watchdog had called in some people for questioning and the probe appears to be looking at information that may have been leaked out before the first announcement on November 27, 2006. (Source: Business Times)

IGB: Work on Mid Valley City Phase 3 to begin. IGB Bhd will commence the building of Mid Valley City's third phase in the next few months, while two other development projects are also set to take off. Phase 3 is planned as a commercial development with an office and a retail building with estimated gross built-up area of more than 1m sq ft. (Source: The Edge Financial Daily)

Islamic Banking: Khazanah sounds out Bank Islam on Muamalat stake. Khazanah Nasional Bhd plans to sell its 30% stake in Bank Muamalat Malaysia Bhd, a move which could pave way for a merger between the Islamic lender and its bigger rival Bank Islam Malaysia Bhd. (Source: Business Times)

Banking: Zeti reappointed as Bank Negara governor. Bank Negara's governor Tan Sri Dr Zeti Akhtar Aziz has been reappointed for a five-year term, effective May 1. (Source: The Star)

Construction: E-tender system to take off soon. Construction Industry Development Board (CIDB) is making preparations to implement National e-Tendering Initiative (NeTi) that will be the platform to process online job tenders under the Works Ministry. (Source: The Star)

Property: Inflation and demand to lift property prices. Malaysian property prices are expected to increase at an average of between 10% and 20% this year, in light of rising inflation and increase in demand for local properties by foreigners. (Source: The Star)