RRI land tender out soon
The tender for the re-development of the 926ha out of the 1,215ha Rubber Research Institute (RRI) Malaysia land in Sungai Buloh, that is now controlled by Kwasa Land SB is expected to be called by the third or fourth quarter of this year, sources said. The new developments would give the RRI land a huge physical and economic boost that would lift the land value of the area. The tenders were supposed to be out by June but because this development required considerable scrutiny and strategizing, it might take a little longer. (StarBiz)
Petronas bags Singapore, Indonesia gas deals
Petroliam Nasional (Petronas) made a major coup in the past two weeks, securing two gas supply deals in Singapore and Indonesia. In the latest deal, Petronas signed a gas sales agreement with Keppel Energy, a subsidiary of Singapore-listed Keppel Corp to supply 43m standard cubic feet per day of natural gas to the latter, a deal which is believed to be worth USD2.2bn (RM6.74bn). (BT)
Redeveloping Old Klang Road
Far East Organization, Singapore‟s largest private developer, plans to redevelop a commercial site in Old Klang Road, here, into an integrated lifestyle mixed development in three years. Chief operating officer, Chia Boon Kuah said the group had commenced a feasibility study on the supply and demand situation and the best product mix for the area. The group is considering high-rise condominiums targeting the upper-middle income group, and retail components. (BT)
Proton: Gets 2,800 bookings for Preve
Group MD Datuk Seri Syed Zainal Abidin Syed Mohamed Tahir said Proton Holdings which has received 2,800 bookings for its newly unveiled first global car the Proton Preve, will start to market the car in Indonesia and Thailand by the middle of this year. He said the Proton Preve will be marketed in Australia by the end of this year. He added that he is optimistic that Proton would achieve its monthly target of 4,000 units for the Proton Preve. (Bernama)
AirAsia signs insurance distribution agreement
AirAsia Bhd has entered into a distribution agreement with Tune Ins Holdings SB, which will see the latter provide insurance products to the company‟s customers, and a call option agreement with Tune Ins and Tune Money SB for the right to purchase shares in Tune Ins. The agreement would help improve performance of the travel insurance business and reduce costs, said the company. (Malaysian Reserve)
MAS to set up JV training school in Hyderabad
Malaysian Airline System Bhd‟s (MAS) engineering and maintenance unit expects to expand its training programme for licensed aircraft engineers and technicians by setting up a training school in Hyderabad, India, under its joint-venture project with GMR Hyderabad International Airport. The move is expected to help the national flag carrier to generate more revenue and meet the demand for well-trained aircraft maintenance facility personnel, MAS senior vice president, engineering and maintenance, Subang, Khairuddin Hamzah said. (Malaysian Reserve)
MMC-Gamuda JV had accepted the award of the underground works package for MRT SBK line from MRT Corp. This appoints the JV as the contractor for a contract price of RM8.3bn. The package comprises the design and construction of tunnels, 7 underground stations and other associated works. (BMSB)
DRB-Hicom has denied reports that it was going to dispose of Proton Holdings Bhd’s loss-making Lotus group. It said it had not reached a decision to sell Lotus, and did not know the source of speculation about selling it to automobile group Youngman. The company had also identifed one of Proton’s senior management personnel to take up a position in Lotus. Filings with Bursa Malaysia in April 12 showed that the company had incorporated a company named Lotus Youngman Automotive Co Ltd. (Star Biz)
Edaran Tan Chong Motor (ETCM) launched the all-new Nissan Elgrand and Nissan Murano last Friday. Both Elgrand, a seven-seater premium multi-purpose vehicle (MPV), and Murano, a premium sports utility vehicle (SUV), are fully imported from Japan and retail from RM384,863.20 and RM318,882.50, respectively. Both vehicles are supported by a three-year or 100,000km warranty, whichever comes first.(BT)
Maybank Islamic Bhd is targeting a growth of between 15-18% this year, said its chief executive officer Muzaffar Hisham. He said the growth is achievable as it is in line with the company's aspirations to promote Islamic banking business. "We expect double-digit yoy growth of our assets this year. But I'm cautiously optimistic as we have three more quarters to go," he told the media at the sidelines of Minggu Saham Amanah Malaysia held at Kompleks Sukan Kota Kinabalu. He said the bank is targeting customers through its Ikhwan credit card, Amanah Saham Bumiputera financing as well as deposits for customers. However, he said the main drive for the bank is to create a lot more awareness on Islamic banking in the coming months. (Bernama)
Back in 2010, Malaysia Smelting Corp Bhd (MSC) took a bold decision to switch from its diversified business model to focus on core businesses it has known for the past 100 years, tin smelting and mining. Its efforts paid off when MSC Group became the world's second largest tin company with refined tin production at 46,599 tonnes last year, right after China-based Yunnan Tin at 56,174 tonnes. Now, the rebranding effort to position MSC as a premier international integrated tin smelter and mining group continues under the stewardship of group CEO and executive director Datuk Seri Dr Mohd Ajib Anuar. He told StarBizWeek in an interview that MSC will actively look at strengthening its integrated tin smelting and mining investments particularly in Malaysia, Indonesia and the latest venture in Congo, Africa. In Congo, MSC is currently preparing to invest on a “step-by-step” approach into medium to large deposits tin-mining assets as well as help to develop the existing small scale “artisanal” tin mines for miners in the republic. “MSC is excited over its upstream venture in Congo especially in the medium and industrial-based mining prospects,” says Ajib. However, the MSC venture in the republic will be hugely dependent upon the formation of the Congolian cabinet which will give investors more confidence after the incumbent government returns to power in the African nation. For more than a decade, MSC had been sourcing tin concentrates from Central African countries, which currently provide about 20% -30% of the total volume of concentrates for its Butterworth smelting plant in Penang.(Starbiz)
The Trengganu government has dropped its long-standing legal battle with Petronas and the federal government over unpaid oil royalty payments amounting to several billion ringgit. Petronas said the Trengganu government withdrew its lawsuit on 21 March. The out-of-court settlement will end more than 11 years of legal wrangling that has squeezed Trengganu's finances. (Edge Daily)
Skali Group, an integrated eGovernment and eBusiness company, is considering listing its company on the Main Market of Bursa Malaysia or an international bourse in the next 12 months, says co-founder Tengku Farith Rithauddeen. "We might want to list our company abroad because we feel that the locals do not understand how to trade in technology stocks. But the idea to list abroad has not been finalised yet. It is still something we are considering," he told Business Times in an interview at the company's headquarters in Menara Sentul last week.Tengku Farith said the company is looking at raising RM30-40m from the listing exercise. We (the board) are going to meet this month to finalise matters. We are definite in our plans to list and this is not something that we are just saying. In the next 12 months, we are definitely listing," he said, adding that the company is qualified enough to be listed on the Main Market.Tengku Farith did not discount the possibility of conducting a dual listing in the future. He said the company wants to go public because it needs capital for its regional expansion, which includes penetration into Middle East markets. Besides listing, he said, the company is also looking at several mergers and acquisitions within the region with similar businesses, which includes training, data centres and solutions. As for the company's performance, Tengku Farith said the company's net profit stood at RM7.2m last year, a 20% increase from the RM5.4m recorded in 2010. (BT)
Oldtown, the “kopitiam” chain operator, expects to begin operations at its new factory in Ipoh by 3Q12. Executive director Clarence Leon D’Silva said the new factory will increase its current manufacturing capacity by 5x, to cater to expected higher demand for our beverages and new products over the next few years. He said the overall investment for the factory is about RM38m. In an interview with BT recently, D’Silva said Oldtown is expanding its operations in China. “We plan to set up a new food processing plant in Guangzhou as part of our expansion plan to penetrate the booming growth of China’s food and beverage market,” he said. The company also plans to open two to three new outlets and explore licensing opportunities this year while in Indonesia, it plans to open five to eight new outlets this year.“We will still maintain our strategy to open 20 to 30 new outlets annually,” D’Silva said. OldTown currently has 183 outlets in Malaysia, eight in Singapore, four in Indonesia and one in China, bringing the total to 196. (BT)
A Naim Holdings Bhd-KPJ Healthcare Bhd joint-venture (JV) firm will invest in a private hospital project in oil town Miri. The proposed 100-bed full-fledge hospital will be built on 1.62ha in Bandar Baru Permyjaya, Naim’s flagship integrated mixed development project. Naim engineering and construction head Sivakumar Ramasamy said the four-storey hospital was estimated to cost RM70m.“The hospital is expected to be completed and commissioned in Sep-2014,” he told StarBizWeek last Friday. The project will be undertaken by a 30:70 JV company between Naim’s wholly-owned subisidary, Naim Land Sdn Bhd (NLSB), and KPJ’s wholly-owned unit, Kumpulan Perubatan (Johor) Sdn Bhd (KPJSB). It has been agreed that Naim’s construction arm – Naim Engineering Sdn Bhd – will be the contractor for the hospital project. The hospital building will be leased to KPJSB, which will provide a master planner and project manager to advise on the medical centre’s design and technical requirements. When completed, the private hospital would be the third in Miri, Sarawak’s second city. The existing private hospitals are Columbia Medical Centre and Miri City Medical Centre.(Starbiz)
Volkswagen Group Malaysia has recently introduced its first below RM100,000 model to the local market with the launch of VW Polo sedan. Priced at RM99,888, the Polo sedan is currently being manufactured in India. The company might consider assembling the Polo sedan locally in Malaysia if the demand for this model were to exceed 1,000 units per year – and thereafter, reducing the model’s sale price to make it even more affordable. The company anticipates introducing several more models before the year ends. (Malaysian Reserve)
Far East Organization, Singapore's largest private developer, plans to redevelop a commercial site in Old Klang Road, here, into an integrated lifestyle mixed development in 3 years. COO Chia Boon Kuah said the group had commenced a feasibility study on the supply and demand situation and the best product mix for the area. Chia said that Far East was considering high-rise condominiums targeting the upper-middle income group, and retail components. The group is also considering a 4-star hotel or serviced residences, and studying if the area has potential for medical suites. "Old Klang Road is more developed today with the highways and other infrastructure. We think it is time to uplift the property market there and maximise its potential. But all these are still on the air. We have to wait for the lease held by the current tenants to expire in 2 years," Chia said. Chia declined to reveal the project's gross development value and the property that it plans to redevelop. On whether Far East would be keen to partner local developers and undertake joint venture projects here, Chia said the group was open to talks. (BT)
IGB Corp is said to be mulling over another two REITs to unlock the value of its office and hotel assets after the company announced plans last week to establish and list a retail REIT on Bursa Malaysia. The listing of IGB’s maiden REIT around the third or fourth quarter of this year is to unlock the value of its two prime retail assets – Mid Valley Megamall and The Gardens Mall. Both the malls are under IGB’s 75%-owned unit, KrisAssets Holdings. (Star Biz)
Esso Malaysia: Minority shareholders told to reject Petron offer
The adviser of Esso Malaysia's minority shareholders said on Thursday that they should reject the takeover offer by Petron Corp's unit as it was "not fair”. "We opine that the offer is not fair to the holders and those who reject the offer will stand to benefit from the potential future growth of the company under the new management and ownership," Kenanga Investment Bank said in a circular to shareholders. Petron, the oil and gas arm of the Philippine-based conglomerate San Miguel Corp, completed the acquisition of a 65% stake in Esso last month. The purchase followed a mandatory takeover offer to acquire the remaining 35% stake in Esso for RM3.59 per share. In the circular, Kenanga also said that Petron had intended to continue investing in Esso Malaysia's existing businesses and assets, as well as in new assets. (StarBiz)
MAA Group: Has no plan to sell its two core businesses
MAA Group has no plans to sell its two core businesses – MAAKL Mutual and MAA Takaful. To date, the management had not had any discussion with any party with regards to the disposal of any of its two core businesses, the group said in a statement. While there was no denying that many big financial institutions were eyeing MAAKL Mutual, the group reiterated that there were no plans to dispose of the businesses. It was responding to an article in StarBiz dated Apr 18 titled “MAA said to be considering selling fund management business”. The article, citing sources, among others, stated that while not ruling out the possibility of a corporate exercise, the group might consider selling its unit trust business if the timing and pricing was right and would retain its takaful business. (StarBiz)
Cycle & Carriage: Profit up on Lowe Motors’ acquisition
Cycle & Carriage Bintang has upped its net profit by 6.76% for 1Q FY2012 to RM8.37m from RM7.84m in the same period last year, boosted partly by its acquisition of Lowe Motors Sdn Bhd in May 2011. Revenue rose 6.25% to RM161.67m from RM152.16m earlier, while EPS improved to 8.31 sen from 7.79 sen. It said the unit sales of Mercedes-Benz passenger cars were 9% higher for the quarter under review, which benefited in part from the inclusion of Lowe Motors, adding that the contribution from the after-sales operations also improved following the reintroduction of third-year warranty servicing for vehicles sold since Jan 2010. (StarBiz)
Ajiya: Investing RM30m in second plant in Thailand
Ajiya is investing RM30m to set up a safety glass processing plant in Thailand this year the company's second after a metal roofing manufacturing plant there. MD Chan Wah Kiang said construction of the facility would start any time now and was expected to be completed by the end of the year. The new plant, with a built up area of 15,000 sq ft, is at Armata Nakom industrial estate in Chonburi Province, about 150km from its present metal roofing plant in Bangkok. He said demand for building materials in Thailand was on the uptrend now due to many reconstruction activities following the floods which hit the country last year. In addition, Chan said many multinational corporations (MNCs) whose manufacturing plants were affected by the floods were also relocating elsewhere in Thailand. Meanwhile, Ajiya would also venture into Cambodia and it is in the process of setting up its operations in the former French Colony. Chan said instead of investing in a plant there, the company's Cambodian partner would be the one to set up the safety glass processing plant. (StarBiz)
Tambun Indah: To develop RM50m international school in Penang
Tambun Indah Land Saturday inked a memorandum of understanding with SIS Charter Sdn Bhd to develop mainland Penang's first international school at Pearl City integrated township in Seberang Perai for RM50m. The Penang campus, with minimum 18,580 sq. m. (200,000 sq. ft.) of built-up area, will be built on a 2.6 ha piece of land in Pearl City. Of the estimated development cost of RM50m, Tambun Indah will invest RM35m to design and construct the campus, including land cost, and SIS will invest RM15m to equip it with the necessary facilities, such as equipment, furniture, fittings and interior decorations. Upon the campus' target completion in 2014, SIS will lease the school campus from Tambun Indah for a period of 20 years. It would be able to handle a student population of 800 to 1,200. (Bernama)
Media: Adex down slightly in March
According to data from information and measurement firm Nielsen, total adex in the country slipped 0.9% y-o-y to RM856.21m last month. For the three months ended March 2012, adex dipped 1.4% to RM2.27bn. However, industry experts were quick to point out that the figures were within expectations. Omnicom Media Group (OMG) MD Andreas Vogiatzakis said the dip in adex came as no surprise, as traditionally advertising expenditure has always been slower in 1Q. He said 1Q adex was often lower, especially after the long festive periods of Chinese New Year (CNY) and Christmas which tends to be quite close together. (StarBiz)
Media: Digital terrestrial TV request for proposal by month-end?
Sources said RFP (request for proposal) for digital terrestrial TV broadcasting (DTTB) infrastructure for all broadcasters to ride on to transmit their TV programmes, estimated to cost about RM1bn, will be out by month-end. They said the regulator was working furiously to get the documents out so that interested parties were able to submit their proposals. Interested parties would be given two to three months to evaluate and come up with a business plan for submission to the commission. There are several parties that are interested in getting involved in the conversion of analogue technology to DTTB for all terrestrial TV stations. Under the current set-up, TV broadcasters are individually licensed as content application service providers, whereby they install their own equipment at transmission sites to broadcast. With DTTB one party or a consortium of players will build the infrastructure that can be leased by all players and with compression technology there can be efficient use of spectrum, thereby giving broadcasters more avenues to offer more channels and content. The spectrum bands earmarked for digital broadcasting were 174-230MHz and 470-742MHz. (StarBiz)
Plantation: Certified sustainable palm oil fast gaining market acceptance
According to the Roundtable on Sustainable Palm Oil (RSPO), annual production capacity for certified sustainable palm oil (CSPO) has reached a record 6m tonnes in less than four years since certification began. RSPO secretary-general Darrel Webber said in a statement that the market’s acceptance of sustainable palm oil was accelerating at a significant pace. RSPO added that CSPO had achieved a 20% growth rate within half a year in terms of both CSPO production area to 1,221,240 hectares and CSPO annual production capacity to 6,017,193 tonnes. There were 11 new palm oil mills certified in 1Q 2012, making up a total 46 mills certified to date amongst 30 producer organisations or growers primarily from Malaysia and Indonesia, and increasingly from Papua New Guinea, Solomon Islands, Latin America and West Africa. (StarBiz)
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