20130104 1110 Malaysia Corporate Related News.

The approved  West Coast Expressway (WCE)  project is a scaled down version costing an estimated RM5.2bn, lower than the original plan that involved a longer stretch and to cost RM7.1bn. Previously the WCE covered a distance of 316km of which 224km would be tolled while 92km would be toll-free. The agreement now is to develop a highway stretching 233km of which 40km are to be constructed later. Sources say the toll-free section spanning over 80km has been taken out of the job scope. The 60-year concession and RM2.2bn government support loan remain intact. However, an interest subsidy of 3% for commercial loans for 22 years has been removed.Toll revenue sharing in excess of an agreed traffic volume between the government and the concessionaire (70:30 till full settlement of loan, 30:70 after full settlement of loan)  remain unchanged. The RM980m land acquisition cost will be borne by the government. (Financial Daily)

The stock market surged to a fresh high on the second trading day of the new year, with  a couple of index-linked counters testing or creating new historical highs. Funds were taking positions and re-balancing their portfolios as they normally did at the beginning of every year, pushing the FTSE Bursa Malaysia KLCI up 18 points or 1.07% to 1,692.65 points. (Starbiz)

From Jan 1, Malaysians, especially young adults, can now buy a house as soon as they get jobs. Under the tweaked  My First Home Scheme rules, they can immediately apply for loans to buy their first home. Earlier, they had to work for a minimum of six months before they qualified for loans. Cagamas SRP Bhd also cancelled the stipulation that workers needed a minimum savings record of three months in banks. The scheme allows homebuyers to get 100% financing from participating banks, meaning they can own a home without having to pay the 10% downpayment. Cagamas will guarantee the initial 10% of the loan. Among the qualifying criteria are residential properties must be between RM100k-400k and buyers are required to live in the property. Financing tenure must not exceed 40 years, subject to the borrower's age not exceeding 65 at the end of financing tenure. (NST)

Syarikat Prasarana Negara (Prasarana)  plans to issue up to RM6bn in Islamic bonds this year to finance the  LRT extension projects and infrastructure. It recently said there were plans to list the rail business after 2018, following the completion of the  MRT  from Sungai Buloh-Kajang. Prasarana also plans to undertake RM2bn in property development projects in the Klang Valley, of which RM1.2bn would be in Brickfields and the remaining in Ara Damansara, Subang. (Starbiz)

Boustead Holdings is confident of generating 25% return on development cost from its RM160m acquisition of 81ha of land in Bukit Raja, Selangor, from Astacanggih Sdn Bhd. Boustead directors said the acquisition is an opportunity for the group to increase its landbank to benefit from economies of scale by combining the 81ha land with the adjacent 283.4ha land held under Jendela Hikmat Sdn Bhd. (BT)

LBS Bina Group is setting its sights on a higher sales target of RM1bn for 2013, on the back of a growing economy and a diverse range of products. In its pipeline for 2013 are ongoing launches and new launches with a GDV of RM3bn, whereby 31% are properties below RM400,000, 42% between RM400,000 and RM1m, and 27% above RM1m. "Its about the right product with the right pricing," managing director Datuk Lim Hock San said. (StarBiz)

TH Heavy Engineering (THHE), an associate company of Tabung Haji (TH), is close to acquiring some 80ha of land in Pulau Indah, Port Klang, for RM150m. Business Times was told that an announcement on the matter is expected to be made by as early as next week.  "At this point, there are two options on the table. One is for THHE to buy the land directly, while the second option is for Tabung Haji to acquire the land and lease it to THHE," said a person with direct knowledge on the matter. It is understood that THHE plans to set up an offshore oil and gas fabrication yard in Port Klang to help service the needs of national oil and gas company, Petroliam Nasional Bhd. (BT)

Malaysia Airlines (MAS) is aiming to maintain its positive fiscal reporting trend this year, fuelled by consistent and aggressive implementation of its Business Plan announced in December 2011, with added focus on increasing revenue and yields through aggressive marketing and promotions, and better capacity management. At the same time, the airline will actively continue to lower costs through improved cost management and driving productivity for better efficiences system-wide. (Bernama)

AirAsia will withdraw its daily flights from Penang to Hong Kong effective March 4. The airline said the move was to realign its route planning for Penang hub and due to commercial reasons. It said guests who are affected by the withdrawal would be offered options to alleviate any inconvenience that might occur. (Bernama)

Ho Hup Construction Co and its 70%-owned unit Bukit Jalil Development Sdn Bhd have repaid in full the RM75m financing facility secured against the 60-acre land in Bukit Jalil, Kuala Lumpur. The payment was made on its behalf by Pioneer Haven Sdn Bhd, a subsidiary of  Malton, following a settlement agreement between Pioneer Haven and Bukit Jalil Development on the joint development of the land. (Sun)

GW Plastics Holdings, whose shareholders approved a plan to sell its core businesses to its bigger rival  Scientex, wants to retain its listing status following the RM283.2m disposal, said its CEO Lim Kok Boon. "We are selling all the operating companies away. Subsequent to that, the holding company will not have any activity. (But) it's our intention to retain the listing status and that would involve, of course, looking into other potential operations that could be injected into the listed company," Lim said. However, Lim added his primary focus right now is to complete the disposal process before looking for viable business opportunities for the company. (Sun)

Sime Darby Property Bhd's The Residences at Putra Heights, has won the Best Villa Development in Malaysia award at the 2012 South East Asia Property Awards held in Singapore recently. (Starbiz)