20110826 1456 Malaysia Corporate Related News.

New managing director for MAS found?
The search for Malaysia Airlines' (MAS) new chief appears to have ended. It is learned that the executive committee decided on the new managing director (MD) after a meeting yesterday. Ahmad Jauhari Yahya, the former CEO of power producer Malakoff Bhd, has been offered the job to lead the embattled national airline. However, it is unclear if he will take on the job since he has other interests to pursue, said sources familiar with the situation. Ahmad Jauhari is no stranger to the airline industry since he also sits on the board of Malaysia Airports Holdings Bhd. (BT)

Megasteel disappointed with Miti decision
Megasteel SB says it is disappointed that the Ministry of International Trade and Industry (Miti) has decided against implementing the 35% safeguard duty on the import of hot-rolled-coil (HRC) the steel giant had petitioned for in June. “Megasteel expresses its disappointment over the Government’s announcement not to implement safeguard measures in the face of rising imports, which have severely affected the company’s operations and performance as submitted to the authorities,” the company said in a press statement released yesterday. (StarBiz)

Hunza raises the bar with Gurney Paragon
Hunza Properties (HBP) is set to raise the bar for retail and food scene in Penang with the staggered opening of Gurney Paragon from December this year. Executive chairman Datuk Khor Teng Tong said in its bid to bring in fresh names in retail and dining to the island, the company had lined up a mixture of tenants who have not operated here before. "Besides signing up with TGV Cinemas, Pacific Coffee and Italiennes Restaurant, we are also in talks with luxury goods retailer Valiram Group about bringing several of its brands to our shopping mall," He said the shopping mall, boasting a net lettable area of 700,000 sq ft, will form the second phase, which fronts both Gurney Drive and Jalan Kelawai. It is expected to be completed by end-2012. (BT)

Wah Seong puts demerger plan on hold
Pipe manufacturer Wah Seong has put on hold the demerger plan of its oil&gas business held under Wasco Energy until further notice. Wah Seong cited uncertain global market conditions for the decision. “The board will revisit the proposed demerger at a more opportune time for the listing of Wasco Energy and make an announcement in due course,” it told Bursa Malaysia. (BT) Please see accompanying report

Berjaya Food buys 50pc stake in Starbucks
Berjaya Food Bhd is acquiring a 50% stake in Berjaya Starbucks Coffee for RM71.698m from Berjaya Group, the company said. The purchase will be financed entirely via cash to be raised from a proposed rights issue and any shortfall will be funded from internally generated funds and borrowings, said Berjaya Food in a filing to Bursa Malaysia. It said the acquisition will be an opportunity for Berjaya Food to acquire the established and well-known “Starbucks Coffee” chain of cafes and retail stores in Malaysia. (BT)

The renewable energy (RE) industry has the potential to generate RM70bn in revenue for  the country and provide RM1.75bn in tax receipts for the government by 2020. Minister of  Energy, Green Technology and Water, Datuk Seri Peter Chin Fah Kui said the RE sector is  also expected to create a host of spin-off benefits, including at least RM19bn in loan values  for RE projects and the creation of 52,000 jobs for the economy. (Bernama)     

The Sustainable Energy Development Authority (Seda), will be revising downwards the  quota for all renewable energy (RE) sources for the remaining of this year. The revision is  mainly because the Feed-In Tariff (FiT) system for RE will be launched on Dec 1 and not  Sept 1 as originally scheduled. Tentatively, the combined quota for renewable energy for  2011 is 111MW for all RE technology. The original plan is to offer 219 MW this year. (Star  Biz) 

Selangor Dredging Bhd (SDB) expects revenue contribution from Singapore projects to  grow to 50% over the next two years, says MD Teh Lip Kim. Currently, the Singapore  projects contribute about 30% to SDB's income. She also said SDB aims to launch several  new projects in the Klang Valley and Singapore, worth a combined RM1bn, by end-2012.   
• The firm will kick off the new projects with the Hijauan in Singapore through its unit SDB  Asia. The  land measuring about 19,806sf there is located in Cavenagh Road, with a  gross development value (GDV) of RM238m. SDB is also planning to build 41 units of  luxury apartments in District 9, a prime location in the island republic. It then plans to  launch high-end apartments in Batu Feringghi in Penang.(BT)      

The Minority Shareholder Watchdog Group (MSWG) is optimistic that the recent MASAirAsia tie-up could work favourably for minority shareholders despite concerns raised by  several industry observers. (Malaysian Reserve)

Aluminium Company of Malaysia (Alcom) is concerned about the scheduled energy rate  hikes proposed by the government every 6 months.  
• With the electricity and natural gas tariff increased, Alcom’s cost will go up as 20% of the  company’s cost is energy. (Financial Daily)    

Trinity Group is on the lookout for more strategic land in the Klang Valley to develop  affordable niche boutique projects.
• The company has an undeveloped land-bank of 8ha and a further 7.3ha in the Klang  Valley that are under construction. (Star Biz)