The government has announced plans to set up a National Aviation Council to oversee and arbitrate issues relating to the sector. The council, consisting of experts, would present key issues of the industry to the National Economic Council, such as economic regulation, airspace policy, safety regulation and consumer protection. The chiefs of airlines and airports, those involved in the aviation policy making, and the tourism sector would probably be members of the council. (StarBiz)
Fajarbaru bags RM300m LRT sub-contract job
Fajarbaru has secured a RM299.8m sub-contract job to construct and commission the depot and power substation for the Ampang LRT line. The company received a letter of acceptance from MRCB Engineering for the construction, completion, testing and commissioning of the depot and traction power substation at Kampung Kuala Sungai Baru. The job includes civil works, external works and other associated works for the Ampang LRT line. The job is expected to be completed within 30 days from the date of commencement. (Financial Daily)
Berjaya Corp eyes strategic stake in Atlan
Berjaya Corp (BCorp) has proposed to raise its stake in Atlan to 24.97%, making it the second largest shareholder in the company. BCorp now owns 9.18% in Atlan after buying an additional 20m shares at RM4.25 per share yesterday. BCorp plans to buy a further 15.8% stake in Atlan from Cipta Nirwana (M) SB for RM170m, or RM4.25 per share, of which it will satisfy through the issuance of five-year 5% ICULS. The ICULS will be accompanied by 170m detachable warrants in BCorp. (Financial Daily)
TNB appoints Azman Mohd to the helm
TNB has appointed Datuk Azman Mohd, 55, as its new president and CEO, effective 1 July. The 3-year term appointment comes after current present and CEO Datuk Seri Che Khalib Mohammad Noh steps down at the end of June. Azman is currently the executive director and COO at TNB and has been attached to the company for 33 years. (Malaysian Reserve)
Scomi Marine proposes capital repayment of RM0.185 per share
Scomi Marine is proposing a cash distribution of RM135.6m or RM0.185 per share to its shareholders. The company also proposed a reduction in par value of its existing 733m shares to RM0.45 from RM1 and the reduction of its share premium account. The exercise forms part of the rationalization plan announced by parent Scomi Group in February. The capital repayment is currently half of Scomi Marine’s existing share price. (Financial Daily)
Hartalega: Prepares to reduce profit margin for market share. Group MD Kuan Kam Hon said for the new capacity coming on, a right pricing is needed to increase the companys market share. That would lead to compression in profit margins but Hartalegas earnings per share would grow. (Source: The Edge Financial Daily)
CIMB: To start business in Australia soon. CIMB Group Holdings Bhd is set to start business in Australia in the next three to four months. The group enters the Australian investment banking industry after acquiring the majority of the Royal Bank of Scotlands (RBS) Australian business. (Source: The Star)
MAHB: Airport 1Q passenger traffic up 6.5%. Passenger traffic at Malaysia Airports Holdings Bhd (MAHB) operated airports recorded a total volume of 16 million movements for the first quarter of 2012, which was a 6.5% growth from a year earlier. International and domestic passenger movements registered a growth of 6.4% and 6.5% respectively. (Source: Bursa Malaysia)
Felda Global Ventures: Fixes bumi share sale at RM4.65
Felda Global Ventures Holdings (FGVH) plans to sell 419.5m shares that have been allocated to bumiputra investors at RM4.65 each, ahead of its IPO that aims to raise more than RM9.09bn, according to government notice. The company plans to sell up to 2.19bn shares and list on Bursa Malaysia by June, according to FGVH’s draft prospectus on the website of the Securities Commission. No further details were provided in the prospectus. (StarBiz)
Proton Holdings: DRB-Hicom shakes up management, makes new appointment
DRB-Hicom stamped its mark over Proton Holdings this week by shaking up the management in a series of new appointments. According to an internal memo reviewed by The Edge Financial Daily, DRB-Hicom has appointed Datuk Lukhman Ibrahim as the new deputy CEO of the company. He will lead a 5-member team which will work closely with Proton’s current management in integrating and consolidating all relevant operational matters. The memo on the appointments, which took effect from May 1 made no mention about the role Proton’s group MD Datuk Seri Syed Zainal Abidin Syed Tahir will play in the company and there is strong speculation that he will leave the company in the coming months. Industry executives said Lukhman is already playing a hands-on role in the daily operations of the group. (Financial Daily)
United Malayan Land: Unit leases land to Pegasus United Malayan Land (UM Land)'s wholly owned subsidiary, Seri Alam Properties Sdn Bhd, has signed a Land Lease Agreement and Option to Purchase Property Agreement with Pegasus Education Group (M) Sdn Bhd. Via the agreement, the company would lease a piece of land for the development of an international school in Bandar Seri Alam by Pegasus as its first campus in Malaysia. Seri Alam is the developer of Bandar Seri Alam, an integrated township being developed in Iskandar Malaysia. UM Land said the agreement involved the lease of a 4.188-hectare piece of freehold land within Bandar Seri Alam to Pegasus for 15 years at a rental rate of RM1.1m per annum for the first 3 years. Thereafter, it would be reviewed for increase every 3 years. The school will be constructed in 5 phases over 8 years. (Business Times)
Boustead Holdings: Units will appeal Sibu High Court ruling over NCR land
Boustead Holdings Bhd subsidiaries will appeal against a Sibu court decision, which had ruled against an agreement over the development of native customary rights (NCR) land. Boustead said on Thursday the Sibu High Court had on April 30 delivered its decision and had judged in favour of two individuals who had sued on behalf of themselves and their immediate families and who claimed NCR over a parcel of land in the Tinjar district. The plaintiffs had sought a declaration that they had acquired and/or inherited native titles and/or NCR over three parcels of NCR land, which affected their native titles and/or rights, damages and costs. (StarBiz)
Tan Chong Motor: Confident of double-digit sales
Edaran Tan Chong Motor Sdn Bhd, a wholly-woned subsidiary of Tan Chong Motor Holdings is confident of a double-digit growth in car sales for FY2012. This comes after a shaky start for the automotive industry where total industry volume was down 12.6% for 1Q FY2012 on a y-o-y basis. Executive director of Edaran Tan Chong Motor said the optimistic double-digit growth is reasonable as Nissan has fully recovered from the effects of the flood in Thailand since Apr. Hence, he said there would not be an interruption in the supply of CKD (completely-knocked-down) parts for the exclusive dealer of Nissan passenger and light commercial vehicles. (Financial Daily)
Syarikat Takaful Malaysia: Mulls M&A for market growth
Syarikat Takaful Malaysia will consider mergers and acquisitions to grow its market share if it finds suitable partners for the exercises. However, Group MD Datuk Mohamed Hassan Kamil said this will probably materialise after 2014 onwards when the Risk Based Capital (RBC) framework for takaful operators is finalised by end-2013. The RBC implementation for conventional insurance operators was currently ongoing that saw consolidation exercises among some of the players. Companies, which failed to meet the minimum capital requirements, have to opt to sell and look for partners or inject more capital and that is when we will start exploring. Under the conventional framework, insurance companies are required to have a minimum 130% supervisory capital-adequacy ratio (CAR). Mohamed Hassan said that as the RBC for takaful operators have not been finalised, there would unlikely be major mergers and acquisitions. (Business Times)
Aviation: National Aviation Council to be set up in 2 months The prime minister had announced that a National Aviation Council (NAC) will be set up within the next two months to coordinate aviation-related policies. Datuk Seri Najib Razak said the council would deal with all policies on aviation and decide on issues arising between national premier carrier Malaysia Airlines (MAS), low-cost carrier AirAsia, and airport operator Malaysia Airports Holdings (MAHB). The council, he said, would also be tasked to resolve issues affecting the industry, while any major issues can be brought to the National Economic Council. (Business Times)
Automotive: Incentives to promote use of hybrid, electric cars
International Trade and Industry Minister Datuk Seri Mustapa Mohamed said the soon-to-bereleased revised National Automotive Policy (NAP) will outline incentives to promote the use of hybrid and electric vehicles on Malaysian roads. There are only 8,000 hybrid and 21 electric cars on the roads and the target is to increase the number of energy-efficient vehicles to 10% of total industry volume (TIV) by 2020. He pointed out that the government extends a 100% import duty waiver for electric and hybrid cars until end-2013, which lends a big advantage in terms of prices of cars. He added that the Treasury is discussing incentives including pioneer status for more than 10 years for the young industry and this will be included in the NAP when it is announced. (Business Times)
Construction: Prasarana awaits government signal
Syarikat Prasarana Negara hopes the government will award soon the systems contract for the Ampang light rail transit (LRT) line extension project to avoid further delay in completing the job. According to Prasarana group MD Datuk Shahril Mokhtar, the Ampang line extension project has been delayed by about two months because of the delay in awarding the systems contract. He said the award of the systems contract for the Ampang line is in the hands of the government and is not within their authority. He added that they have done all the evaluation according to the processes and procedures and presented them to the government for their consideration and approval. (Business Times)
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