20121220 1014 Malaysia Corporate Related News.

MCMC sets 1 Jan deadline for telcos to cut access fee charges
The Malaysian Communications and Multimedia Commission (MCMC) says telecommunication companies will have to reduce its wholesale access fee charges for call “termination” by 6% for fixed lines and 8% for mobile calls beginning 1 Jan 2013. MCMC said the rate for fixed-lines calls will be reduced by 12% of the current prices in 2014 and by 18% in 2015. Telcos currently charge each other 5 sen/min when a call is connected for fixed and termination. The reduction for mobile access rates, currently also at 5 sen/min, is at a higher 7.4% for 2013, 15% in 2014 and 22.5% by 2015. (Malaysian Reserve) Please see accompanying report

Prasarana LRT line extension delayed to 2015
The completion of the Prasarana LRT line extension project by Syarikat Prasarana Negara will now be delayed to 2015 from the earlier estimated time of completion in 2014. A delay in the land acquisition process, mainly in Puchong, was cited as the cause. The Ampang extension line, 17.7km long with 12 new stations, will start from the Sri Petaling station to Putra Heights while the extended Kelana Jaya Line will run from the Kelana Jaya station, covering a distance of 17km and 13 new stations, before ending at Putra Heights. (Financial Daily)

November CPI rises on higher food cost
The Consumer Price Index (CPI) for November rose 1.3% to 105.5 from 104.1 a year earlier following higher cost for food and non-alcoholic beverages. The Statistics Department said the index for food and non-alcoholic beverages and non-food for November showed increases of 2% and 1.1% respectively as compared with the same month in 2011. It said the CPI for Jan-Nov period increased by 1.7% to 104.9 compared with 103.1 a year earlier. When compared with October, it said the CPI last month was up marginally by 0.1%. (StarBiz)

MyEG plans new services
MyEG Services is planning to use RM60m in capex for the financial year ending 30 June 2013 to roll out the online tax monitoring system and online renewal service for foreign worker permits. According to MyEG MD T.S. Wong, the capex was generated internally and it would not affect its current dividend payout policy which is 30% of its net profit. (StarBiz)

New law for Islamic finance
Malaysia is in the final stages of introducing new legislation for Islamic Banking and takaful products, Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz said, which gives a stronger legal basis to contracts devised by financial institutions. Zeti did not give a time-frame for the launch of the legal framework. She said the legislation would help the central bank better regulate and supervise the Islamic finance industry, which is globally valued at USD1.3trn (RM3.96trn). (StarBiz)