Tuesday, July 31, 2007
Penang Set To Be Regional Logistics Hub For Both NCER & IMT-GT
BUTTERWORTH, July 31 (Bernama) -- Datuk Seri Abdullah Ahmad Badawi said today that Penang Port will be promoted as the primary port for both the Northern Corridor and the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) by expanding its capacity to handle the expected increase in container traffic as well as the larger container vessels.The Prime Minister said the international airport at Bayan Lepas will be the primary air cargo hub and handle the easily perishable top quality food exports."The facilities to be upgraded at Bayan Lepas include new cargo and passenger terminals and an additional runway to cope with the anticipated increase in air traffic volume," he said when launching the Penang package of the Northern Corridor Economic Region (NCER) masterplan here.He said Penang already has quality logistics infrastructure including ready access to the North-South Expressway, the Penang Bridge, a deepwater port and an international standard airport."So the thrust of the major developments in the state within the NCER context is to upgrade its capacity to be the regional logistics hub. These efforts encompass capacity and logistics network expansion in an integrated manner," he added.For the convenience of Penang residents, the Prime Minister said, several public transportation projects will be implemented, with the focus on comfortable and brisk travel.One project has already been implemented - the RapidPenang bus service, introduced within a short time due to the close cooperation between the federal and state governments - and Abdullah described the bus service asreflecting "the government's ability in providing a quality, comfortable, systematic and efficient service to the people of Penang."Another project is a rapid ferry service for motorcyclists and passengers which will be introduced next year to supplement the existing ferry service while the ferry terminals at both ends will be upgraded.A third project is Penang Sentral, an integrated rail, ferry, monorail and land transport hub to be jointly developed by Malaysian Resources Corp Bhd (MRCB) and Pelaburan Hartanah Bumiputera Bhd on a six million sq ft location that will house not only the integrated terminal but also have commercial, retail and residential development, much like MRCB's KL Sentral in Kuala Lumpur."With Penang Sentral, Penang residents and those in the Northern Corridor will enjoy a quality transportation system that is safe and efficient and suitble for all travel purposes - work, sightseeing, commercial and for industry needs," he said."I am confident the project will transform the Butterworth area into a bustling, modern metropolis, while Swettenham Pier on the island becomes a new transportation and commercial hub."To complete the transportation network will be the 37km monorail system on the island which, according to him, will be the pulse of the island's transportation system."I am confident that the monorail system will help ease the traffic congestion on the island as well as at Seberang Perai, and residents will be able to travel to other states, especially within the NCER, with greater ease," he added.Abdullah believed that with the second bridge project to link the island and the mainland and the widening of the existing bridge, the transportation system will see a vast growth in the traffic flow between the island and its NCER hinterland.
Transmile Unable To Issue 2006 Annual Report And 1Q Results
KUALA LUMPUR, July 31 (Bernama) -- Transmile Group Bhd said it was unable to issue its first-quarter result and 2006 annual report as at stipulated deadline as it had only finalised its audited financial statement for financial year ended Dec 31, 2006 on June 29.The air cargo service provider said it was not able to issue its first-quarter results by May 31, 2007 and annual report 2006 by June 30, 2007.Transmile in its filing to Bursa Malaysia Tuesday said it was in the midst of finalising the first-quarter results and would endeavour to announce the financial performance by Aug 15.As for the annual report 2006, Transmile said it would endeavour to despatch them to shareholders at least 21 days before the annual general meeting which should be held not later than Sept 12, 2007.
Monday, July 30, 2007
NCER- RM177 Billion Investment ready to flow
ALOR STAR, July 30 (Bernama) -- Datuk Seri Abdullah Ahmad Badawi today launched the masterplan for the Northern Corridor Economic Region (NCER), a development initiative that is expected to draw investments worth RM177 billion from 2007 to 2025.The prime minister said that of the total sum, one-third was expected to be spent by the government, with the balance to be through Private Finance Initiatives (PFI) and private sector investment."The government will start the ball rolling to provide the best possible socio-economic environment and this will be followed by the private sector and commercial investments later on," he said when launching the masterplan at the Muda Agricultural Development Authority (Mada) headquarters here.The initiative is expected to spur growth and boost income levels in the NCER, home to 4.29 million people, within 20 years.Under the Ninth Malaysia Plan (9MP), the NCER development programme has been identified as one of the areas to generate the country's economic growth.Present were Abdullah's wife Datin Seri Jeanne Abdullah, Perak Menteri Besar Datuk Seri Mohd Tajol Rosli Ghazali, Penang Chief Minister Tan Sri Dr Koh Tsu Koon, Kedah Menteri Besar Datuk Seri Mahdzir Khalid and Perlis Menteri Besar Datuk Seri Shahidan Kassim. The NCER covers Kedah, Perlis, Penang and northern Perak.The launch was also attended by Agriculture and Agro-based Industry Minister Tan Sri Muhyiddin Yassin, Second Finance Minister Tan Sri Nor Mohamed Yakcop, Plantation Industries and Commodities Minister Datuk Peter Chin Fah Kui and Minister in the Prime Minister's Department Datuk Seri Effendi Norwawi.Abdullah, who is also Finance Minister, said that in the initial phase, the government would provide RM5 billion on top of existing allocations for NCER programmes which had been identified."The government plans to invest the money following a review of 9MP programmes and increase the allocations after the 9MP mid-term review," he said.Abdullah said he and the leaders of the four states would chair a coordination and implementation body comprising federal and state government officials being set up to oversee NCER implementation.The northern corridor concept, he said, was formulated on the premise that development efforts could be carried out much faster and in a more orderly manner by leveraging on the potential of the states concerned.Abdullah said initiatives meant to stimulate socio-economic development for the well-being of the people would be carried out in the NCER.He said the thrust of development efforts there would be on trade and market trends to push the northern region forward in the globalisation age.To this end, he said, there was a need for a mind shift with regard to the potential of the country's northern states and districts.Abdullah said the NCER was different from the Iskandar Development Region (IDR) in Johor as the former covers a wider area with differences in the demographic make-up."The challenges and opportunites are different too. For example, the latest figures show that the poverty rate in Kedah and Perlis is much higher than the the country's average," he said.Abdullah said as the household income in the NCER was also lower than the nation's average, the government aimed to introduce socio-economic transformation for the people in the north, unlike IDR's urban-centred growth targets.But the philosophy behind both development initiatives is similar -- to add value to rural sectors, urban industries and human capital, he said."The value-add culture should be made part of people's lives as it is the key to Northern Corridor's success," he said, adding that it was also important to narrow the income gap between rural and urban areas.Abdullah said efforts would be made to transform rural economy to make it more modern, sustainable and profitable, such as the move to promote "new agriculture".Opportunies should be created in the rural economy of the north to allow investors to introduce modern techniques as well as consumer and market knowledge among entrepreneurs in rural areas, he said.The prime minister said special programmes would be implemented to develop commercial-scale projects by the private sector.One of them, he said, was to encourage the amalgamation of land to allow the utilisation of modern methods for crop cultivation and harvesting for commercial purposes.Saying that the management aspects would come under the private sector, Abdullah stressed that this would not jeopardise land ownership as land owners would be able to enjoy higher income from big-scale and modern agricultural projects.And in the process, land owners and farmers would also be able learn new techniques, including by becoming contract farmers, he said.He said commercial agricultural projects would promote downstream activities and agro-based small and medium industries.Abdullah said all these would be backed by programmes to enhance innovation and skills in the agricultural sector through the establishment of research and development centres and agriculture faculties with the cooperation of the private sector.The prime minister expressed the hope that such initiatives would produce a new generation of skilled and business-savvy farmers in the northern belt on whose shoulders lied the future of rural economy."I want the country to mould a new generation of rural dwellers who won't see the necessity to look for jobs in major towns; people who are able to toil the land using modern technology. This is something that will change our rural landscape," he said.
Thursday, July 26, 2007
BOJ Less Likely to Raise Rates
July 27 (Bloomberg) -- The chance that the Bank of Japan will raise interest rates in August declined after global stocks slumped and the nation's consumer prices fell for a fifth month.
Investors see a 48 percent likelihood of a rate increase next month, down from 66 percent yesterday, according to Credit Suisse Group calculations based on the exchange of interest payments. Consumer prices excluding fresh food fell 0.1 percent in June from a year earlier, the government said in Tokyo today.
Though Bank of Japan Governor Toshihiko Fukui has said the bank could raise rates even if prices were still falling, he has also said policy makers must be confident economic growth will be sustained. Global stocks slid on concern a worsening U.S. housing slump will slow growth in the world's biggest economy.
``The heightened concern over systemic risk in the U.S. may make it difficult for the bank to move next month,'' said Eishi Yokoyama, an economist at AIG Global Investment Corp. in Tokyo. ``The price report won't alter the bank's expectations that prices are going to rise in coming months.''
The Nikkei 225 Stock Average slid the most in more than four months. The Dow Jones Industrial Average yesterday sank the most since February and the FTSE 100's biggest drop in four years led European declines.
Japan's retail sales unexpectedly fell 0.4 percent in June, the Trade Ministry said today, as higher taxes, lower wages and a furor over lost pension records weighed on consumer sentiment.
Weak Data
``Given today's weak CPI and retail data as well as the stock decline in the U.S., there are more factors mounting against an August rate increase,'' said Hiromichi Shirakawa, chief economist at Credit Suisse Group in Tokyo. Shirakawa, a former central bank official, said he put the chances of an August rate increase at ``less than 50 percent.''
The yen weakened to 118.95 per dollar at 10:50 a.m. in Tokyo from 118.68 in New York late yesterday. The yield on Japan's 10-year bond fell 4.5 basis points to 1.81 percent, the lowest in seven weeks. The Nikkei tumbled 2.3 percent.
Concern is mounting that the U.S. housing slump will spread to the rest of the economy, crimping demand in Japan's biggest export market. Sales of new homes in the U.S. fell 6.6 percent last month, the most since January, a report showed yesterday.
``Housing market data has continued to be unimpressive,'' Tadao Noda, a Bank of Japan policy board member, said in a speech yesterday. ``Some have indicated the recovery in the housing market could take more time than initially thought so we need to continue to keep a close watch on this issue.''
Tokyo Prices
Tokyo's core prices, seen as an indicator of the nationwide consumer price index, fell 0.1 percent in July from a year ago, the statistics bureau said. The drop in prices nationwide and in the capital matched economists' expectations.
Consumer prices in Japan have failed to rise this year, after posting gains in eight months of last year. Those increases led to speculation that the economy was emerging from more than seven years of deflation that discouraged investment and consumer spending.
Nationwide core prices may fall as much as 0.2 percent in August and September because crude oil costs were near records in those months in 2006, said Takehiro Sato, chief Japan economist at Morgan Stanley in Tokyo.
Competition among mobile-phone operators is also exerting downward pressure on prices. KDDI Corp., Japan's second-biggest mobile-phone carrier, said last week that it will cut monthly fees by half, matching a move by larger rival NTT DoCoMo Inc.
Mobile Phones
Given the mobile-phone prices, the time of the next consumer-price increase ``may be delayed to December from November,'' said Hiroaki Muto, a senior economist at Sumitomo Mitsui Asset Management in Tokyo.
Still, there are also budding signs of inflation, as companies gradually pass rising costs of oil and raw materials onto retail prices. Rengo Co., an Osaka-based paper maker, this week said it will raise prices of cardboard and other paper by at least 15 percent from Sept. 1 to meet higher costs.
Inflationary expectations are increasing amid a surge in gasoline and food prices, according to a central bank survey of consumers. Some 72 percent of consumers expect prices to rise this year, compared with 59 percent in the previous quarter, the bank said in the quarterly report on July 18.
Investors see a 48 percent likelihood of a rate increase next month, down from 66 percent yesterday, according to Credit Suisse Group calculations based on the exchange of interest payments. Consumer prices excluding fresh food fell 0.1 percent in June from a year earlier, the government said in Tokyo today.
Though Bank of Japan Governor Toshihiko Fukui has said the bank could raise rates even if prices were still falling, he has also said policy makers must be confident economic growth will be sustained. Global stocks slid on concern a worsening U.S. housing slump will slow growth in the world's biggest economy.
``The heightened concern over systemic risk in the U.S. may make it difficult for the bank to move next month,'' said Eishi Yokoyama, an economist at AIG Global Investment Corp. in Tokyo. ``The price report won't alter the bank's expectations that prices are going to rise in coming months.''
The Nikkei 225 Stock Average slid the most in more than four months. The Dow Jones Industrial Average yesterday sank the most since February and the FTSE 100's biggest drop in four years led European declines.
Japan's retail sales unexpectedly fell 0.4 percent in June, the Trade Ministry said today, as higher taxes, lower wages and a furor over lost pension records weighed on consumer sentiment.
Weak Data
``Given today's weak CPI and retail data as well as the stock decline in the U.S., there are more factors mounting against an August rate increase,'' said Hiromichi Shirakawa, chief economist at Credit Suisse Group in Tokyo. Shirakawa, a former central bank official, said he put the chances of an August rate increase at ``less than 50 percent.''
The yen weakened to 118.95 per dollar at 10:50 a.m. in Tokyo from 118.68 in New York late yesterday. The yield on Japan's 10-year bond fell 4.5 basis points to 1.81 percent, the lowest in seven weeks. The Nikkei tumbled 2.3 percent.
Concern is mounting that the U.S. housing slump will spread to the rest of the economy, crimping demand in Japan's biggest export market. Sales of new homes in the U.S. fell 6.6 percent last month, the most since January, a report showed yesterday.
``Housing market data has continued to be unimpressive,'' Tadao Noda, a Bank of Japan policy board member, said in a speech yesterday. ``Some have indicated the recovery in the housing market could take more time than initially thought so we need to continue to keep a close watch on this issue.''
Tokyo Prices
Tokyo's core prices, seen as an indicator of the nationwide consumer price index, fell 0.1 percent in July from a year ago, the statistics bureau said. The drop in prices nationwide and in the capital matched economists' expectations.
Consumer prices in Japan have failed to rise this year, after posting gains in eight months of last year. Those increases led to speculation that the economy was emerging from more than seven years of deflation that discouraged investment and consumer spending.
Nationwide core prices may fall as much as 0.2 percent in August and September because crude oil costs were near records in those months in 2006, said Takehiro Sato, chief Japan economist at Morgan Stanley in Tokyo.
Competition among mobile-phone operators is also exerting downward pressure on prices. KDDI Corp., Japan's second-biggest mobile-phone carrier, said last week that it will cut monthly fees by half, matching a move by larger rival NTT DoCoMo Inc.
Mobile Phones
Given the mobile-phone prices, the time of the next consumer-price increase ``may be delayed to December from November,'' said Hiroaki Muto, a senior economist at Sumitomo Mitsui Asset Management in Tokyo.
Still, there are also budding signs of inflation, as companies gradually pass rising costs of oil and raw materials onto retail prices. Rengo Co., an Osaka-based paper maker, this week said it will raise prices of cardboard and other paper by at least 15 percent from Sept. 1 to meet higher costs.
Inflationary expectations are increasing amid a surge in gasoline and food prices, according to a central bank survey of consumers. Some 72 percent of consumers expect prices to rise this year, compared with 59 percent in the previous quarter, the bank said in the quarterly report on July 18.
Measat And Astro Finalise Measat-3 Agreement
KUALA LUMPUR, July 26 (Bernama) -- Measat Satellite Systems Sdn Bhd announced today that it has finalised an agreement worth US$381 million with Astro All Asia Networks Plc's subsidiary, Measat Broadcast Network Systems Sdn Bhd, for the utilisation of Ku-Band transponder capacity on the Measat-3 satellite.Under the agreement, Measat Satellite will provide Astro with up to 13 Ku-Band transponders on the Measat-3 spacecraft, representing over one quarter of the satellite's communication capacity.Measat Satellite's chief operating officer Paul Brown-Kenyon said in a statement that the Ku-Band payload was designed to support direct-to-home (DTH) operators across Malaysia, Indonesia and South Asia."With the enhanced capacity of Measat-3, Astro has been able to introduce numerous new services, including new channels and Astro-on-Demand. Our customers can look forward to more new services over the next 12 months," said Astro TV's chief executive officer Rohana Rozhan.Brown-Kenyon said that 13 other customers were now leasing capacity on the Measat-3 satellite, including Radio Televisyen Malaysia, TV3, Ho Chi Minh City Television. Celcom and BBC Worldwide."We are delighted by the initial take-up of capacity on the new satellite. Having reached almost 50 percent utilisation, we expect the satellite to be operating close to capacity by year-end," he said.
BASF- Vietnam Bridge Project
KUALA LUMPUR, July 26 (Bernama) -- International chemical firm BASF said today it has won a contract to supply high-strength concrete admixtures for the construction of the Phu My Bridge in Ho Chi Minh City, Vietnam.It said in a statement that its construction chemicals division in Vietnam will supply the Glenium SP8S admixture for the project, a 2-km cable-stayed bridge across the Saigon River. It is expected to be ready by end-2009."Vietnam is an important and fast-growing market with a strong contribution to our growth in the region," said BASF group vice president and head of BASF construction chemicals in the Asia Pacific, Dr Boris Gorella.BASF's portfolio encompasses chemicals, plastics, performance products, agricultural products, fine chemicals and natural gas.
Dialog seeks more business overseas
PETALING JAYA: Dialog Group Bhd is actively expanding its overseas business as part of the company’s strategy to boost earnings, chairman and group managing director Ngau Boon Keat said.
The group, he said, was targeting the United States by year-end, after its success in the Asia-Pacific, Australia, South Africa, Saudi Arabia, Britain and Europe.
“We are also interested to expand our operations in new territories like Australia, Kazakhstan and Nigeria,” he told reporters after the company EGM yesterday.
Ngau said Dialog’s overseas business contributed about 50% to group revenue last year.
“We expect another round of good growth this year,” he added.
Clients of the integrated specialist technical services provider for the oil, gas and petroleum industry in the upstream and downstream activities include multinational oil majors, national oil companies as well as multinational engineering and construction firms.
Ngau said Dialog was positioning to be a global player, given the universal nature of the oil and gas (O&G) industry.
He said the group’s prospects were positive, in line with continued strong world demand for energy, combined with insufficient refining capacity global.
This resulted in the world O&G industry players intensifying exploration, production, processing and manufacturing efforts both upstream and downstream.
“Dialog wants to aggressively capitalise on these tremendous business opportunity, both locally and globally,” added Ngau.
Paris-based International Energy Agency, in its latest report, forecast that world energy demand would grow an average 2.2% a year.
The group, he said, was targeting the United States by year-end, after its success in the Asia-Pacific, Australia, South Africa, Saudi Arabia, Britain and Europe.
“We are also interested to expand our operations in new territories like Australia, Kazakhstan and Nigeria,” he told reporters after the company EGM yesterday.
Ngau said Dialog’s overseas business contributed about 50% to group revenue last year.
“We expect another round of good growth this year,” he added.
Clients of the integrated specialist technical services provider for the oil, gas and petroleum industry in the upstream and downstream activities include multinational oil majors, national oil companies as well as multinational engineering and construction firms.
Ngau said Dialog was positioning to be a global player, given the universal nature of the oil and gas (O&G) industry.
He said the group’s prospects were positive, in line with continued strong world demand for energy, combined with insufficient refining capacity global.
This resulted in the world O&G industry players intensifying exploration, production, processing and manufacturing efforts both upstream and downstream.
“Dialog wants to aggressively capitalise on these tremendous business opportunity, both locally and globally,” added Ngau.
Paris-based International Energy Agency, in its latest report, forecast that world energy demand would grow an average 2.2% a year.
Second Penang Bridge to start in November 2007
XIAMEN: China Harbour Engineering Company Ltd (CHEC) is expected to start construction work on the second Penang bridge in November and will use a special technology for the project to ensure its completion in 2011.
CHEC information manager Ma Jie said the company would use the technology of pre-fabricated box beam, called the 'short-line matching' technology, to produce short sections of beams, each measuring 3 to 4 metres for the bridge.
"The small size of the beams will make it easy for them to be transported to the site of the bridge with smaller vessels.
"It is not practical to produce long beams, which require large vessels to carry them.
"Large vessels will have a tough time transporting the beams to the site because the sea surrounding the project is shallow.
Ann artist's impression of the Second Penang Bridge"Finally, we can also manufacture small beams with greater measurement precision and accuracy," he said.
Ma added that construction work for the second bridge is expected to begin in November 2007. Ma spoke at a briefing to some 20 journalists from Malaysia held in Xiamen, where CHEC is constructing the 3.8km Jimei Bridge, using the same technology.
The Penang second bridge is the sixth bridge undertaken by CHEC using the technology.
CHEC is using the same technology to build the Jimei and Sutong bridges in Xiamen and Shanghai.
"We expect to manufacture the beams in one year. It will take another 22 to 23 months to join the beams together," he said.
Ma said some six production lines to produce the beams would be set up in Penang.
"Construction work should begin before the year ends.
"Some 1,000 engineers and technicians from China are estimated to be involved in the project.
"They will be sent to Penang in gradual phases to work on the second bridge," he added.
Ma said pre-stress technology would also be used to manufacture the beams.
"The pre-stress technology enables the bridge to withstand the impact from an earthquake of 7 on the richter scale," he said.
Ma said the cost of the raw materials and the design of the bridge had yet to be finalised.
China is providing Malaysia US$800mil in loans, with a 3% interest rate and a repayment period of 20 years.
CHEC information manager Ma Jie said the company would use the technology of pre-fabricated box beam, called the 'short-line matching' technology, to produce short sections of beams, each measuring 3 to 4 metres for the bridge.
"The small size of the beams will make it easy for them to be transported to the site of the bridge with smaller vessels.
"It is not practical to produce long beams, which require large vessels to carry them.
"Large vessels will have a tough time transporting the beams to the site because the sea surrounding the project is shallow.
Ann artist's impression of the Second Penang Bridge"Finally, we can also manufacture small beams with greater measurement precision and accuracy," he said.
Ma added that construction work for the second bridge is expected to begin in November 2007. Ma spoke at a briefing to some 20 journalists from Malaysia held in Xiamen, where CHEC is constructing the 3.8km Jimei Bridge, using the same technology.
The Penang second bridge is the sixth bridge undertaken by CHEC using the technology.
CHEC is using the same technology to build the Jimei and Sutong bridges in Xiamen and Shanghai.
"We expect to manufacture the beams in one year. It will take another 22 to 23 months to join the beams together," he said.
Ma said some six production lines to produce the beams would be set up in Penang.
"Construction work should begin before the year ends.
"Some 1,000 engineers and technicians from China are estimated to be involved in the project.
"They will be sent to Penang in gradual phases to work on the second bridge," he added.
Ma said pre-stress technology would also be used to manufacture the beams.
"The pre-stress technology enables the bridge to withstand the impact from an earthquake of 7 on the richter scale," he said.
Ma said the cost of the raw materials and the design of the bridge had yet to be finalised.
China is providing Malaysia US$800mil in loans, with a 3% interest rate and a repayment period of 20 years.
Tuesday, July 24, 2007
Bank Negara OPR unchanged
The Full Statement: At its meeting today, Bank Negara Malaysia's Monetary Policy Committee (MPC) decided to leave the Overnight Policy Rate (OPR) unchanged at 3.50 percent.
The overall growth of the Malaysian economy in the first half of the year has remained favourable with the slower growth in the external sector being balanced by stronger growth in domestic demand. During the second half of 2007, the growth momentum of the economy is expected to strengthen. Recent trade data suggest that the sustained growth in Malaysia's major trading partner economies is starting to provide support to export growth. This will complement the robust growth in both domestic consumption and investment that is expected to be sustained for the rest of the year.
Inflation moderated in the first half of 2007 to a level of 1.4% in June and averaged 2% for the period as a whole. During the second half of 2007, inflation may edge up due to both domestic and external factors, but the average rate of inflation for 2007 is expected to be at the lower end of the projected range of 2-2.5 percent.
The future stance of monetary policy would be determined by Bank Negara Malaysia 's assessment of new data and information and their implications on the medium-term prospects for price stability and economic growth.
The overall growth of the Malaysian economy in the first half of the year has remained favourable with the slower growth in the external sector being balanced by stronger growth in domestic demand. During the second half of 2007, the growth momentum of the economy is expected to strengthen. Recent trade data suggest that the sustained growth in Malaysia's major trading partner economies is starting to provide support to export growth. This will complement the robust growth in both domestic consumption and investment that is expected to be sustained for the rest of the year.
Inflation moderated in the first half of 2007 to a level of 1.4% in June and averaged 2% for the period as a whole. During the second half of 2007, inflation may edge up due to both domestic and external factors, but the average rate of inflation for 2007 is expected to be at the lower end of the projected range of 2-2.5 percent.
The future stance of monetary policy would be determined by Bank Negara Malaysia 's assessment of new data and information and their implications on the medium-term prospects for price stability and economic growth.
Friday, July 20, 2007
DiGi's Pre-tax Profit Up 29% In First Half
KUALA LUMPUR, July 20 (Bernama) -- Mobile operator DiGi.Com Bhd has posted a net profit of RM496 million for the first six months ended June 30, 2007, up 29 percent compared to same period last year.Revenue rose 17 percent to RM2.07 billion on the back of increased usage and a larger customer base, the company said in a statement today.It added that during the period, the total customer base expanded 11 percent to six million amid intense competition and a maturing market.According to the company, attractive festive promotions and a segmented market approach led to higher voice traffic and increased blended average mobile revenue per user to RM58 from RM54 last year.DiGi.Com's chief executive officer Morten Lundal said the company was pleased with the results, especially in boosting usage and growing its customer base in target markets."Our focus on operational efficiency has also paid off," he said.The strong operating results in the first half year raised pre-tax profit by 27 percent to RM683 million, the company said.Lundal said the company was confident of continuing a good growth momentum in the second half of the year, targeting a mid-teens revenue growth."We are ready for new challenges that come with a maturing market. We will continue our creative and competitive approach to further widen our customer base and grow revenue," he said.
Thursday, July 19, 2007
AKN wants to list subsidiary in Singapore
PENANG: AKN Technology Bhd wants to list its subsidiary Paramount Discovery Group (PDG) on the main board of the Singapore stock exchange to reposition itself as a key player in the glove industry.
Hwang DBS Investment Bank Bhd had been appointed adviser for the flotation, said AKN chief executive officer Ooi Boon Leong.
Bangi-based PDG supplies polymer chemical solutions to the glove industry and exports 30% of its production to Indonesia, China, Thailand and Sri Lanka.
PDG reported net profit of about RM20mil for the 15 months ended March 31. Given the growth of the glove industry, observers expect it to record after-tax profit of RM20mil to RM22mil for the financial year ending March 31, 2008.
Ooi said the proposed Singapore listing was in line with PDG's intention to expand overseas, which would require additional funding.
“The listing will unlock the full value for AKN shareholders, given its depressed market capitalisation,” he told StarBiz.
“According to Singapore-based financial analysts, the average PE (price/earnings) ratio in Singapore is 18 times. Even at a PE of 12, the indicative market value of PDG is about RM240mil to RM260mil.
“This compares with the present market capitalisation of the whole AKN of less than RM80mil,” he added.
AKN bought PDG for about RM90mil a year ago, when the lead frame business became too competitive. A weakening semiconductor demand in 2004/05 and a major fire at its Penang unit brought AKN to its knees.
As a result, its shares fell from around RM5 to below 50 sen recently.
“PDG’s glove polymer chemical solutions have helped AKN to rise like the fabled phoenix from the ashes,” he said.
Ooi said the group also wrote off and disposed of non-performing subsidiaries or those that had not been able to keep track with the increasingly competitive environment brought about by globalisation.
The disposals included Dragon Group’s operations in China and Hong Kong to Flextech Holdings, a Singapore-listed company, for part cash and part exchange for ASTI Holdings Ltd shares.
AKN is now a substantial shareholder of ASTI, which is involved in the trading of semiconductor components. AKN is liquidating several Dragon Group subsidiaries to generate about RM70mil in cash.
On the manufacturing support and services business, Ooi said the division had been profitable over the past two years despite increasing competition.
Hwang DBS Investment Bank Bhd had been appointed adviser for the flotation, said AKN chief executive officer Ooi Boon Leong.
Bangi-based PDG supplies polymer chemical solutions to the glove industry and exports 30% of its production to Indonesia, China, Thailand and Sri Lanka.
PDG reported net profit of about RM20mil for the 15 months ended March 31. Given the growth of the glove industry, observers expect it to record after-tax profit of RM20mil to RM22mil for the financial year ending March 31, 2008.
Ooi said the proposed Singapore listing was in line with PDG's intention to expand overseas, which would require additional funding.
“The listing will unlock the full value for AKN shareholders, given its depressed market capitalisation,” he told StarBiz.
“According to Singapore-based financial analysts, the average PE (price/earnings) ratio in Singapore is 18 times. Even at a PE of 12, the indicative market value of PDG is about RM240mil to RM260mil.
“This compares with the present market capitalisation of the whole AKN of less than RM80mil,” he added.
AKN bought PDG for about RM90mil a year ago, when the lead frame business became too competitive. A weakening semiconductor demand in 2004/05 and a major fire at its Penang unit brought AKN to its knees.
As a result, its shares fell from around RM5 to below 50 sen recently.
“PDG’s glove polymer chemical solutions have helped AKN to rise like the fabled phoenix from the ashes,” he said.
Ooi said the group also wrote off and disposed of non-performing subsidiaries or those that had not been able to keep track with the increasingly competitive environment brought about by globalisation.
The disposals included Dragon Group’s operations in China and Hong Kong to Flextech Holdings, a Singapore-listed company, for part cash and part exchange for ASTI Holdings Ltd shares.
AKN is now a substantial shareholder of ASTI, which is involved in the trading of semiconductor components. AKN is liquidating several Dragon Group subsidiaries to generate about RM70mil in cash.
On the manufacturing support and services business, Ooi said the division had been profitable over the past two years despite increasing competition.
China's Economy Grows at Fastest Pace in 12 Years
July 19 (Bloomberg) -- China's economy grew at the fastest pace in 12 years in the second quarter and inflation surged, prompting speculation the government will raise interest rates and push the currency higher to cool growth.
Gross domestic product expanded 11.9 percent from a year earlier, the statistics bureau said in Beijing today, exceeding all estimates of 23 economists surveyed by Bloomberg. Inflation climbed to 4.4 percent in June, the fastest since September 2004, breaching the central bank's 3 percent target for a fourth month.
Growth was powered by investment in factories and real estate that the government has been unable to cool with two rate increases this year and restrictions on bank lending. Allowing the yuan to strengthen may also help quell tensions with the U.S. and Europe, which say China's record exports reflect the unfair advantage of an artificially low currency.
``Accelerating inflation and a rebound in fixed-asset investment heighten the risk of overheating,'' said Wang Qing, chief China economist at Morgan Stanley in Hong Kong. ``Demand in key sectors is not outstripping supply yet, but the government is concerned.'' Wang expects an interest-rate increase ``any time from now.''
The yuan rose to as much as 7.5615 against the dollar, the highest since China abandoned a decade-old peg to the dollar in July 2005. It traded at 7.5632 at 5:34 p.m. in Shanghai, from 7.5639 before the report was released. The currency has climbed 9.4 percent since the link ended.
Clinton, Obama
That isn't enough for some U.S. lawmakers. Presidential candidates Senators Hillary Clinton and Barack Obama plan to co- sponsor legislation pushing for faster gains in the yuan.
``What they really need to do is accelerate the pace of currency appreciation,'' said Frank Gong, an economist at JPMorgan Chase & Co. in Hong Kong. ``One major reason for the strong growth is the expanding trade surplus.''
Liang Hong, senior economist at Goldman Sachs Group in Hong Kong, increased her 2007 GDP forecast to 12.3 percent from 10.8 percent. Calyon, the investment banking unit of Credit Agricole SA, raised its forecast to 11.2 percent from 10 percent.
``Our forecasts assume decisive policy tightening taking place in the second half of 2007,'' said Goldman's Liang, predicting two more 27-basis-point interest-rate increases this year, a reduction in the amount of money available for lending and other measures to restrict investment.
Interest Rates
``China will continue to strengthen and improve macro- economic controls in the second half of this year'' to keep money supply and lending under control, said Li Xiaochao, spokesman for the statistics bureau.
The central bank is expected to increase the benchmark one- year interest rate from 6.57 percent and the deposit rate from 3.06 percent at least once this year, according to 21 of 25 economists surveyed by Bloomberg News last month.
China's economy accounts for about a 10th of global growth and its appetite for commodities drove the prices of nickel and iron ore to records this year. Premier Wen advocates ``moderate'' measures to cool growth. He wants to avoid a sudden slowdown that could throw hundreds of thousands out of work and ignite social tension in the world's most populous nation.
A shortage of pigs following an outbreak of disease and surging international grain prices were among the main drivers of China's inflation, complicating efforts of the central bank to contain unpopular price increases.
Food Prices
Food inflation accounted for 2.5 percentage points of the overall 3.2 percent inflation for the first half, the statistics bureau said.
Rising food prices, high stock and property prices and excessive liquidity from the nation's record trade surplus ``may in combination push inflation further,'' said Li.
``Tightening monetary policy isn't going to immediately rectify rising food prices,'' said Jing Ulrich, chairwoman of China equities at JPMorgan Chase & Co. in Hong Kong. ``The government will have to use different methods.''
The government will increase the supply of poultry, beef and eggs and tighten controls on corn exports, the National Development and Reform Commission, the country's top planner, said this week.
Inflation has fueled some stock-market speculation because it outpaced returns on bank deposits, encouraging households to bet on equities. The key one-year deposit rate is 3.06 percent. The benchmark CSI 300 stock index has gained 87 percent this year.
Stock Market
To make savings more attractive, lawmakers last month passed legislation that will allow the cabinet to scrap or reduce a 20 percent tax on interest income. In May the government raised stamp duty on share trades to cool the stock market.
The CSI 300 has fallen about 11 percent since its June 19 record. The index declined 0.58 point to 3807 at the close in Shanghai. The yield on the 10-year bond fell 2.1 basis points to 4.41 percent as of 3:00 p.m., according to the China Interbank Bond Market.
Fixed-asset investment in urban areas jumped 26.7 percent in the first half from a year earlier, up from 25.3 percent in the first quarter.
China is also trying to encourage consumer spending by raising minimum wages and improving social security. Retail sales rose 16 percent in June from a year earlier after gaining 15.9 percent in May.
``Investment growth is likely to moderate, given continued monetary and administrative tightening,'' said JPMorgan's Gong. ``Retail sales have been accelerating this year and we expect this momentum to carry'' into the second half.
Industrial output climbed 19.4 percent in June, the most in a year, after increasing 18.1 percent in May.
Consumer Spending
China exported $112.5 billion more than it imported in the first six months, an increase of 84 percent from a year earlier.
That inflow of money pushed China's foreign reserves, the world's largest, to $1.3 trillion at the end of June and quickened money supply growth. Banks lent 2.5 trillion yuan in the first six months of 2007, 80 percent of last year's total.
The export- and investment-driven economy is drawing closer to replacing Germany as the world's third largest. Gross domestic product expanded 11.1 percent in 2006 to 21.09 trillion yuan ($2.79 trillion). Germany's economy was valued at $2.89 trillion.
Gross domestic product expanded 11.9 percent from a year earlier, the statistics bureau said in Beijing today, exceeding all estimates of 23 economists surveyed by Bloomberg. Inflation climbed to 4.4 percent in June, the fastest since September 2004, breaching the central bank's 3 percent target for a fourth month.
Growth was powered by investment in factories and real estate that the government has been unable to cool with two rate increases this year and restrictions on bank lending. Allowing the yuan to strengthen may also help quell tensions with the U.S. and Europe, which say China's record exports reflect the unfair advantage of an artificially low currency.
``Accelerating inflation and a rebound in fixed-asset investment heighten the risk of overheating,'' said Wang Qing, chief China economist at Morgan Stanley in Hong Kong. ``Demand in key sectors is not outstripping supply yet, but the government is concerned.'' Wang expects an interest-rate increase ``any time from now.''
The yuan rose to as much as 7.5615 against the dollar, the highest since China abandoned a decade-old peg to the dollar in July 2005. It traded at 7.5632 at 5:34 p.m. in Shanghai, from 7.5639 before the report was released. The currency has climbed 9.4 percent since the link ended.
Clinton, Obama
That isn't enough for some U.S. lawmakers. Presidential candidates Senators Hillary Clinton and Barack Obama plan to co- sponsor legislation pushing for faster gains in the yuan.
``What they really need to do is accelerate the pace of currency appreciation,'' said Frank Gong, an economist at JPMorgan Chase & Co. in Hong Kong. ``One major reason for the strong growth is the expanding trade surplus.''
Liang Hong, senior economist at Goldman Sachs Group in Hong Kong, increased her 2007 GDP forecast to 12.3 percent from 10.8 percent. Calyon, the investment banking unit of Credit Agricole SA, raised its forecast to 11.2 percent from 10 percent.
``Our forecasts assume decisive policy tightening taking place in the second half of 2007,'' said Goldman's Liang, predicting two more 27-basis-point interest-rate increases this year, a reduction in the amount of money available for lending and other measures to restrict investment.
Interest Rates
``China will continue to strengthen and improve macro- economic controls in the second half of this year'' to keep money supply and lending under control, said Li Xiaochao, spokesman for the statistics bureau.
The central bank is expected to increase the benchmark one- year interest rate from 6.57 percent and the deposit rate from 3.06 percent at least once this year, according to 21 of 25 economists surveyed by Bloomberg News last month.
China's economy accounts for about a 10th of global growth and its appetite for commodities drove the prices of nickel and iron ore to records this year. Premier Wen advocates ``moderate'' measures to cool growth. He wants to avoid a sudden slowdown that could throw hundreds of thousands out of work and ignite social tension in the world's most populous nation.
A shortage of pigs following an outbreak of disease and surging international grain prices were among the main drivers of China's inflation, complicating efforts of the central bank to contain unpopular price increases.
Food Prices
Food inflation accounted for 2.5 percentage points of the overall 3.2 percent inflation for the first half, the statistics bureau said.
Rising food prices, high stock and property prices and excessive liquidity from the nation's record trade surplus ``may in combination push inflation further,'' said Li.
``Tightening monetary policy isn't going to immediately rectify rising food prices,'' said Jing Ulrich, chairwoman of China equities at JPMorgan Chase & Co. in Hong Kong. ``The government will have to use different methods.''
The government will increase the supply of poultry, beef and eggs and tighten controls on corn exports, the National Development and Reform Commission, the country's top planner, said this week.
Inflation has fueled some stock-market speculation because it outpaced returns on bank deposits, encouraging households to bet on equities. The key one-year deposit rate is 3.06 percent. The benchmark CSI 300 stock index has gained 87 percent this year.
Stock Market
To make savings more attractive, lawmakers last month passed legislation that will allow the cabinet to scrap or reduce a 20 percent tax on interest income. In May the government raised stamp duty on share trades to cool the stock market.
The CSI 300 has fallen about 11 percent since its June 19 record. The index declined 0.58 point to 3807 at the close in Shanghai. The yield on the 10-year bond fell 2.1 basis points to 4.41 percent as of 3:00 p.m., according to the China Interbank Bond Market.
Fixed-asset investment in urban areas jumped 26.7 percent in the first half from a year earlier, up from 25.3 percent in the first quarter.
China is also trying to encourage consumer spending by raising minimum wages and improving social security. Retail sales rose 16 percent in June from a year earlier after gaining 15.9 percent in May.
``Investment growth is likely to moderate, given continued monetary and administrative tightening,'' said JPMorgan's Gong. ``Retail sales have been accelerating this year and we expect this momentum to carry'' into the second half.
Industrial output climbed 19.4 percent in June, the most in a year, after increasing 18.1 percent in May.
Consumer Spending
China exported $112.5 billion more than it imported in the first six months, an increase of 84 percent from a year earlier.
That inflow of money pushed China's foreign reserves, the world's largest, to $1.3 trillion at the end of June and quickened money supply growth. Banks lent 2.5 trillion yuan in the first six months of 2007, 80 percent of last year's total.
The export- and investment-driven economy is drawing closer to replacing Germany as the world's third largest. Gross domestic product expanded 11.1 percent in 2006 to 21.09 trillion yuan ($2.79 trillion). Germany's economy was valued at $2.89 trillion.
Tuesday, July 17, 2007
Ringgit may hit three vs US dollar
KUALA LUMPUR: The ringgit will “eventually” strengthen to 3.00 against the greenback after adjustments in the US dollar are made, said Malaysian Institute of Economic Research (MIER) executive director Datuk Dr Mohamed Ariff Abdul Kareem.
“It may take a couple of years before we get there,” he said at the sidelines of MIER’s 22nd national economic briefing yesterday, adding that the US dollar was currently overvalued by at least 20%.
Ariff expects the ringgit to trade at between 3.30 and 3.35 against the greenback by year-end in line with the country’s sound economic fundamentals and the weakening US dollar.
He also said the appreciating ringgit did not hurt exporters in the country, given that they were able to adjust to the ringgit's gains, which was in tandem with the appreciation of other major currencies in the region.
On whether the ringgit would be traded offshore, Ariff said: “I don’t think Bank Negara will allow the local currency to trade internationally in the near term”.
“Once you open up, you are giving more vent to speculative activity,” he said.
Deputy Finance Minister Datuk Dr Ng Yen Yen, in a speech delivered by Finance Ministry deputy secretary-general Ibrahim Mahaludin Puteh at the briefing, said the Government did not have a target level for the ringgit.
“It may take a couple of years before we get there,” he said at the sidelines of MIER’s 22nd national economic briefing yesterday, adding that the US dollar was currently overvalued by at least 20%.
Ariff expects the ringgit to trade at between 3.30 and 3.35 against the greenback by year-end in line with the country’s sound economic fundamentals and the weakening US dollar.
He also said the appreciating ringgit did not hurt exporters in the country, given that they were able to adjust to the ringgit's gains, which was in tandem with the appreciation of other major currencies in the region.
On whether the ringgit would be traded offshore, Ariff said: “I don’t think Bank Negara will allow the local currency to trade internationally in the near term”.
“Once you open up, you are giving more vent to speculative activity,” he said.
Deputy Finance Minister Datuk Dr Ng Yen Yen, in a speech delivered by Finance Ministry deputy secretary-general Ibrahim Mahaludin Puteh at the briefing, said the Government did not have a target level for the ringgit.
Petronas among 20 most profitable companies in the world
PETALING JAYA: Petroliam Nasional Bhd (Petronas) maintained its lead, in terms of return on revenue among Asia's top 50 companies and the global petroleum refining industry, in this year's Fortune Global 500 list.
Of the 20 most profitable companies in the world, Petronas ranked 18th, with profits of US$12.9bil, according to Fortune magazine's July 23 issue.
The national oil company, which posted revenue growth of 14.9% to US$51bil for the year ended March 31, also moved up two places as Asia's 18th largest corporation in this year's list.
Under the petroleum refining industry, ExxonMobil took the top spot in terms of profits (US$39.5bil) followed by Royal Dutch Shell in second place (US$25.4bil) and BP (US$22bil) third.
Retail giant Wal-Mart Stores reclaimed the top spot on the Global 500 on revenue of US$351.1bil, making it the largest company in the world for the fifth time in six years, Fortune said. Three carmakers, led by General Motors (US$207.3bil), made up the rest of the world's 10 biggest companies.
According to Fortune, the US has the most global 500 companies (162) followed by Japan (67) and France (38).
It said the securities industry saw the biggest sales increase, with revenues rising 45% while the entertainment business saw the biggest jump in profit of 79%.
Among this year's newcomers to the Global 500 list were Taiwan's Asustek Computer and South Korea's Hyundai Heavy Industries, ranked 427 and 422 respectively.
Fortune also found that more women were running Fortune Global 500 companies this year. “Currently, 10 Fortune Global 500 companies are run by women. Last year, only seven were,” it added.
Of the 20 most profitable companies in the world, Petronas ranked 18th, with profits of US$12.9bil, according to Fortune magazine's July 23 issue.
The national oil company, which posted revenue growth of 14.9% to US$51bil for the year ended March 31, also moved up two places as Asia's 18th largest corporation in this year's list.
Under the petroleum refining industry, ExxonMobil took the top spot in terms of profits (US$39.5bil) followed by Royal Dutch Shell in second place (US$25.4bil) and BP (US$22bil) third.
Retail giant Wal-Mart Stores reclaimed the top spot on the Global 500 on revenue of US$351.1bil, making it the largest company in the world for the fifth time in six years, Fortune said. Three carmakers, led by General Motors (US$207.3bil), made up the rest of the world's 10 biggest companies.
According to Fortune, the US has the most global 500 companies (162) followed by Japan (67) and France (38).
It said the securities industry saw the biggest sales increase, with revenues rising 45% while the entertainment business saw the biggest jump in profit of 79%.
Among this year's newcomers to the Global 500 list were Taiwan's Asustek Computer and South Korea's Hyundai Heavy Industries, ranked 427 and 422 respectively.
Fortune also found that more women were running Fortune Global 500 companies this year. “Currently, 10 Fortune Global 500 companies are run by women. Last year, only seven were,” it added.
Offshore services to fuel Scomi Marine growth
KUALA LUMPUR: Scomi Marine Bhd expects offshore marine services to fuel growth going forward, said chief financial officer Mukhnizam Mahmud.
“While coal transportation will provide steady income, the area of growth will be in offshore services,” he told StarBiz yesterday.
Scomi Marine’s offshore marine services are provided by 29.1% Singaporean associate CH Offshore and 80.5% subsidiary PT Rig Tenders.
The division contributed 20% of the group’s revenue currently and the figure was likely to increase, Mukhnizam said.
CH Offshore is expecting delivery of six newly-built anchor-handling tugs and supply vessels of 12,240 brake horsepower and 150-tonne bollard pull each between 2008 and 2010.
The company is moving towards a different approach of “build first, contracts later” instead of securing contracts first before buying more vessels.
Mukhnizam said the upswing in the market would mitigate any risk. Besides, the offshore market “is an asset business,” he added.
The new vessels, suitable for deepwater exploration, will be targeted for potential markets like Malaysia, Vietnam, Indonesia, Australia and India.
As technology advanced and operating cost decreased, deepwater exploration would become more efficient and attractive for oil and gas players, Mukhnizam said.
Moreover, deepwater exploration fetches better margins than shallow water exploration.
The North Sea was another potential market as charter rates were attractive but more studies were needed as the weather conditions only allowed six months of operability, he said.
The tug and barge business, on the other hand, faces rising cost from docking fees and fuel prices.
“It affects everyone in the industry. We’re conscious on the amount of docking fees that we incur,” Mukhnizam said.
As a form of mitigation, the company had chosen Indonesia as an alternative docking venue as the journey to the country was shorter and the docking fees lower, he added.
Meanwhile, Scomi Oiltools (Europe) Ltd regional manager Ken Carlsson said Britain was its biggest market for drilling waste management operations. Other European markets include Norway, Russia, Holland and the Caspian Sea.
Scomi Oiltools unit KMC Oiltools Ltd general manager of Russia Stephen R. Zagdan said the group had set up a representative office in Russia about 13 years ago to offer oilfield-related equipment.
The group started providing oilfield-related services only two years ago, he said.
In May, Scomi Group secured its latest contracts from Russia amounting to RM167mil to supply solids-control equipment, including RM116mil from Rosneft and RM28mil from Burgas.
Zagdan said the group had over 50% of market share for distribution of oilfield-related equipment.
“While coal transportation will provide steady income, the area of growth will be in offshore services,” he told StarBiz yesterday.
Scomi Marine’s offshore marine services are provided by 29.1% Singaporean associate CH Offshore and 80.5% subsidiary PT Rig Tenders.
The division contributed 20% of the group’s revenue currently and the figure was likely to increase, Mukhnizam said.
CH Offshore is expecting delivery of six newly-built anchor-handling tugs and supply vessels of 12,240 brake horsepower and 150-tonne bollard pull each between 2008 and 2010.
The company is moving towards a different approach of “build first, contracts later” instead of securing contracts first before buying more vessels.
Mukhnizam said the upswing in the market would mitigate any risk. Besides, the offshore market “is an asset business,” he added.
The new vessels, suitable for deepwater exploration, will be targeted for potential markets like Malaysia, Vietnam, Indonesia, Australia and India.
As technology advanced and operating cost decreased, deepwater exploration would become more efficient and attractive for oil and gas players, Mukhnizam said.
Moreover, deepwater exploration fetches better margins than shallow water exploration.
The North Sea was another potential market as charter rates were attractive but more studies were needed as the weather conditions only allowed six months of operability, he said.
The tug and barge business, on the other hand, faces rising cost from docking fees and fuel prices.
“It affects everyone in the industry. We’re conscious on the amount of docking fees that we incur,” Mukhnizam said.
As a form of mitigation, the company had chosen Indonesia as an alternative docking venue as the journey to the country was shorter and the docking fees lower, he added.
Meanwhile, Scomi Oiltools (Europe) Ltd regional manager Ken Carlsson said Britain was its biggest market for drilling waste management operations. Other European markets include Norway, Russia, Holland and the Caspian Sea.
Scomi Oiltools unit KMC Oiltools Ltd general manager of Russia Stephen R. Zagdan said the group had set up a representative office in Russia about 13 years ago to offer oilfield-related equipment.
The group started providing oilfield-related services only two years ago, he said.
In May, Scomi Group secured its latest contracts from Russia amounting to RM167mil to supply solids-control equipment, including RM116mil from Rosneft and RM28mil from Burgas.
Zagdan said the group had over 50% of market share for distribution of oilfield-related equipment.
Synergy Drive Gets SC's Nod For RM30 Bln Mega Merger
KUALA LUMPUR, July 17 (Bernama) -- Synergy Drive Bhd has secured approval from the Securities Commission (SC) to proceed with the RM30 billion merger involving three major plantation players.The approval was granted by the regulatory body yesterday, Synergy Drive said in a statement today."With the approval from the SC secured, we look forward to shareholders endorsement for the merger at the respective extraordinary general meetings slated for August," said Synergy Drive chairman Tan Sri Md Nor Yusof.The merger will involve Golden Hope Plantations Bhd, Kumpulan Guthrie Bhd and Sime Darby Bhd group of companies.Synergy Drive had sought several approvals from the SC, including acquisition of the entire businesses and undertakings including all assets and liabilities of the eight companies involved in the merger, to be satisfied by the issuance of redeemable convertible preference shares (RCPS), distribution of the RCPS received by the eight companies and presenting the disposal consideration to their respective shareholders.Shareholders can immediately convert the RCPS receivable as purchase consideration to Synergy Drive shares valued at RM5.25 per share or redeem them for equivalent cash, Synergy Drive said.The company also sought the SC's consent for the listing of Synergy Drive on the Main Board of Bursa Malaysia.The listing, which is set to take place in November, will see Synergy Drive potentially emerging as the second largest company on the bourse with a market capitalisation of about RM48.5 billion.This is based on the current market capitalisation as of June 15, 2007, of all the companies involved in the merger.This also represents an increase of RM18.3 billion or 60.8 percent to shareholders since the announcement was made on Nov 27, 2007, by CIMB Bhd, Synergy Drive said.Besides the main three companies, the five other related companies involved in the merger are Guthrie Ropel Bhd, Highlands & Lowlands Bhd, Mentakab Rubber Company (Malaya) Bhd, Sime Engineering Services Bhd and Sime UEP Properties Bhd.Upon completion of the merger, Synergy Drive is expected to have a combined workforce of about 107,000 people and five core businesses spanning plantations, property, heavy equipment, motor vehicles, and energy and utilities.
Zecon gets another Matang Highway project
KUCHING: Zecon Bhd has secured a RM124mil (US$35.6mil) contract for the proposed extension project of the Matang Highway near here.
Chief executive officer Datuk Zainal Abidin Ahmad said the project would involve the construction of a 13.3km new dual carriageway leading to the proposed federal administrative centre in Matang.
When completed in 42 months, the project will see the highway extended closer to the city centre at Taman Matang Jaya.
Zainal said Zecon, an integrated construction and infrastructure firm, had completed nearly 60% of another stretch of 25km of the Matang highway which will link the proposed federal administrative centre to Bulatan Abang Kipli.
Zecon secured this earlier project worth RM314mil (US$90.2mil) in 2002.
"With this latest contract, Zecon’s order book has been brought to RM1.2bil (US$344.8mil)," said Zainal.
Chief executive officer Datuk Zainal Abidin Ahmad said the project would involve the construction of a 13.3km new dual carriageway leading to the proposed federal administrative centre in Matang.
When completed in 42 months, the project will see the highway extended closer to the city centre at Taman Matang Jaya.
Zainal said Zecon, an integrated construction and infrastructure firm, had completed nearly 60% of another stretch of 25km of the Matang highway which will link the proposed federal administrative centre to Bulatan Abang Kipli.
Zecon secured this earlier project worth RM314mil (US$90.2mil) in 2002.
"With this latest contract, Zecon’s order book has been brought to RM1.2bil (US$344.8mil)," said Zainal.
Friday, July 13, 2007
Second Penang bridge loan deal
PUTRAJAYA: Malaysia and China inked a RM2.7bil (US$800mil) loan agreement Friday to pave the way for the construction of the second Penang bridge.
The loan obtained by Malaysia is the largest given by China for a single project in a foreign country so far, reflecting the close bilateral ties enjoyed by both countries.
The terms of the agreement, which include an interest rate of three per cent per annum over 20 years is the most favourable offered to a foreign country.
Upon its completion in 2011, the 23 km bridge, 17km on water, would be the longest such link in South East Asia.
Second Finance Minister Tan Sri Nor Mohamed Yakcop said many countries were hoping to “build bridges (relationship) with the rising China. With this project, we are literally building a bridge with China. "
“The second Penang bridge, a signature project for the Ninth Malaysia Plan will be a major catalyst for economic growth and investment in the northern corridor.
“The Government is committed to see this project implemented on a fast track and have the bridge opened for use in 2011,” he told a press conference after witnessing the signing of the general loan agreement to finance the construction of the second Penang bridge.
Treasury secretary-general Datuk Dr Wan Abdul Aziz Wan Abdullah signed on behalf of the Government. China's Exim Bank deputy general-manager Xin Bin represented China while Bank Pembangunan's signatory was Datuk Abdul Rahim Mohd Zin.
A contract agreement was also signed between UEM Group Bhd and JV Consortium of China Harbour Engineering Company (CHEC) and UEM Consortium. Signing on behalf of UEM was its managing director and chief executive officer of UEM World Datuk Ahmad Pardas Senin and president of CHEC Ltd Chen Fen Jian.
Also present to at the event were Chinese Minister of Commerce Bo Xi Lai, Penang Chief Minister Tan Sri Koh Tsu Koon and Chinese Ambassador to Malaysia Cheng Yong Hua.
The loan obtained by Malaysia is the largest given by China for a single project in a foreign country so far, reflecting the close bilateral ties enjoyed by both countries.
The terms of the agreement, which include an interest rate of three per cent per annum over 20 years is the most favourable offered to a foreign country.
Upon its completion in 2011, the 23 km bridge, 17km on water, would be the longest such link in South East Asia.
Second Finance Minister Tan Sri Nor Mohamed Yakcop said many countries were hoping to “build bridges (relationship) with the rising China. With this project, we are literally building a bridge with China. "
“The second Penang bridge, a signature project for the Ninth Malaysia Plan will be a major catalyst for economic growth and investment in the northern corridor.
“The Government is committed to see this project implemented on a fast track and have the bridge opened for use in 2011,” he told a press conference after witnessing the signing of the general loan agreement to finance the construction of the second Penang bridge.
Treasury secretary-general Datuk Dr Wan Abdul Aziz Wan Abdullah signed on behalf of the Government. China's Exim Bank deputy general-manager Xin Bin represented China while Bank Pembangunan's signatory was Datuk Abdul Rahim Mohd Zin.
A contract agreement was also signed between UEM Group Bhd and JV Consortium of China Harbour Engineering Company (CHEC) and UEM Consortium. Signing on behalf of UEM was its managing director and chief executive officer of UEM World Datuk Ahmad Pardas Senin and president of CHEC Ltd Chen Fen Jian.
Also present to at the event were Chinese Minister of Commerce Bo Xi Lai, Penang Chief Minister Tan Sri Koh Tsu Koon and Chinese Ambassador to Malaysia Cheng Yong Hua.
Wednesday, July 11, 2007
Bank of Korea raises interest rate
July 12 (Bloomberg) -- South Korea's central bank raised its benchmark interest rate to a six-year high on concern record lending to small companies may spur inflation.
Bank of Korea Governor Lee Seong Tae and his board colleagues today lifted the overnight call rate by a quarter percentage point to 4.75 percent, the first increase since August 2006. Eight of 15 economists surveyed by Bloomberg predicted the rise and seven expected no change.
``It's a prudent decision,'' said Park Sang Hyun, chief economist with CJ Investment & Securities Co. in Seoul. ``If the cresting money growth is left unchecked, it could reignite a property market rally and ultimately fan inflation.''
Loans to small businesses soared to an all-time high last quarter as lenders sought new corporate customers to overcome tighter rules for mortgages. Governor Lee says Korean financial institutions have a ``herd mentality'' that's fuelling the supply of money and poses an inflation risk.
The Kospi stock index rose 1.36 percent to a record 1915.75 and the won gained 0.1 percent to 918.40 versus the dollar at 11:05 a.m. in Seoul. The benchmark five-year government bond yield was unchanged at 5.39 percent.
The Bank of Korea today also raised rates on so-called aggregate loans, which are offered to local banks at a special rate to help spur lending to small companies, to 3 percent from 2.75 percent. Rates on liquidity-adjustment lending were increased to 4.5 percent from 4.25 percent.
Loans Growth
Loans to small and mid-sized companies jumped 8.34 trillion won ($9.1 billion) in June from May, the largest gain since the central bank began compiling figures in December 2000, according to a report yesterday.
South Korea's monetary policy should take aim at ``controlling liquidity,'' as an excessive supply of money could push up prices and result in an asset bubble, Finance Minister Kwon Okyu said last week.
Kwon's comments echo those of the central bank governor, who said the Bank of Korea will engineer a slowdown in money growth and lending demand that could undermine the economy's longest stretch of expansion in a decade.
In an earlier effort to slow borrowing, the central bank on June 21 reduced the funds it makes available for loans to small businesses for the first time in six months. Last year, the bank ordered commercial lenders to hold more money as reserves. It raised borrowing costs three times in 2006 and tightened rules to cool lending and damp demand in the housing market.
`Abundant Liquidity'
``There's abundant liquidity in the financial market and lending has increased sharply, led by loans to small and mid- sized enterprises,'' the central bank said in a statement today. ``The upwardly adjusted call rate target would still be supportive of ongoing economic recovery.''
Growing signs of economic revival are helping to support today's decision. The Bank of Korea and the government this week raised their 2007 growth forecast. Moody's Investors Service says it may upgrade the nation's credit rating and reports in the past week showed exports surged in June and consumers became the most confident in 15 months.
The economy will advance 4.6 percent this year, more than an earlier prediction of 4.5 percent, the Ministry of Finance and Economy said in its second-half policy report. The Bank of Korea raised its forecast to 4.5 percent from 4.4 percent.
Growth in Asia's third-largest economy will quicken in the second half of 2007 and is expected to be faster in 2008 than this year, the central bank said in a statement today.
More Increases
Some economists forecast the central bank will deliver one or two more increases by the first quarter of 2008, according to a Bloomberg survey. Others say higher borrowing costs could choke off a recovery in the economy that is ``lukewarm.'' Recent gains in the currency may also deter the central bank from increasing rates further.
``Nothing in the economic data justifies that move, so it's a bit of a nail biter right now,'' said Frederic Neumann, an economist with HSBC Markets Ltd. in Hong Kong. ``If they stayed there, that would help the economy to recover. It isn't out of the woods yet.''
South Korea's government is seeking stability in the currency market as gains in the won threaten to erode overseas earnings for Samsung Electronics Co. and other exporters. Finance Minister Kwon said this week the government will actively respond to the won's strength when necessary.
The won has gained 1.2 percent over the past month against Japan's yen, the currency of its major export competitor, reaching the highest in 10 years.
Bank of Korea Governor Lee Seong Tae and his board colleagues today lifted the overnight call rate by a quarter percentage point to 4.75 percent, the first increase since August 2006. Eight of 15 economists surveyed by Bloomberg predicted the rise and seven expected no change.
``It's a prudent decision,'' said Park Sang Hyun, chief economist with CJ Investment & Securities Co. in Seoul. ``If the cresting money growth is left unchecked, it could reignite a property market rally and ultimately fan inflation.''
Loans to small businesses soared to an all-time high last quarter as lenders sought new corporate customers to overcome tighter rules for mortgages. Governor Lee says Korean financial institutions have a ``herd mentality'' that's fuelling the supply of money and poses an inflation risk.
The Kospi stock index rose 1.36 percent to a record 1915.75 and the won gained 0.1 percent to 918.40 versus the dollar at 11:05 a.m. in Seoul. The benchmark five-year government bond yield was unchanged at 5.39 percent.
The Bank of Korea today also raised rates on so-called aggregate loans, which are offered to local banks at a special rate to help spur lending to small companies, to 3 percent from 2.75 percent. Rates on liquidity-adjustment lending were increased to 4.5 percent from 4.25 percent.
Loans Growth
Loans to small and mid-sized companies jumped 8.34 trillion won ($9.1 billion) in June from May, the largest gain since the central bank began compiling figures in December 2000, according to a report yesterday.
South Korea's monetary policy should take aim at ``controlling liquidity,'' as an excessive supply of money could push up prices and result in an asset bubble, Finance Minister Kwon Okyu said last week.
Kwon's comments echo those of the central bank governor, who said the Bank of Korea will engineer a slowdown in money growth and lending demand that could undermine the economy's longest stretch of expansion in a decade.
In an earlier effort to slow borrowing, the central bank on June 21 reduced the funds it makes available for loans to small businesses for the first time in six months. Last year, the bank ordered commercial lenders to hold more money as reserves. It raised borrowing costs three times in 2006 and tightened rules to cool lending and damp demand in the housing market.
`Abundant Liquidity'
``There's abundant liquidity in the financial market and lending has increased sharply, led by loans to small and mid- sized enterprises,'' the central bank said in a statement today. ``The upwardly adjusted call rate target would still be supportive of ongoing economic recovery.''
Growing signs of economic revival are helping to support today's decision. The Bank of Korea and the government this week raised their 2007 growth forecast. Moody's Investors Service says it may upgrade the nation's credit rating and reports in the past week showed exports surged in June and consumers became the most confident in 15 months.
The economy will advance 4.6 percent this year, more than an earlier prediction of 4.5 percent, the Ministry of Finance and Economy said in its second-half policy report. The Bank of Korea raised its forecast to 4.5 percent from 4.4 percent.
Growth in Asia's third-largest economy will quicken in the second half of 2007 and is expected to be faster in 2008 than this year, the central bank said in a statement today.
More Increases
Some economists forecast the central bank will deliver one or two more increases by the first quarter of 2008, according to a Bloomberg survey. Others say higher borrowing costs could choke off a recovery in the economy that is ``lukewarm.'' Recent gains in the currency may also deter the central bank from increasing rates further.
``Nothing in the economic data justifies that move, so it's a bit of a nail biter right now,'' said Frederic Neumann, an economist with HSBC Markets Ltd. in Hong Kong. ``If they stayed there, that would help the economy to recover. It isn't out of the woods yet.''
South Korea's government is seeking stability in the currency market as gains in the won threaten to erode overseas earnings for Samsung Electronics Co. and other exporters. Finance Minister Kwon said this week the government will actively respond to the won's strength when necessary.
The won has gained 1.2 percent over the past month against Japan's yen, the currency of its major export competitor, reaching the highest in 10 years.
Bank of Japan remain interest rate at 0.5%
July 12 (Bloomberg) -- The Bank of Japan kept its benchmark interest rate unchanged as it waits for more proof that economic growth will be sustained and inflation will take hold. Board member Atsushi Mizuno opposed the decision.
Governor Toshihiko Fukui and his policy board colleagues held the key overnight lending rate at 0.5 percent at a two-day meeting that ended today, the central bank said in Tokyo.
Fukui will propose a rate increase next month, according to two-thirds of 34 economists surveyed by Bloomberg News this week. The Bank of Japan's key interest rate is the lowest among major economies.
Any calls for a policy shift from board members ``can be regarded as heralding an August rate hike,'' said Seiji Shiraishi, chief economist at HSBC Securities Japan Ltd. The bank last raised the key rate in February, a month after three policy makers unsuccessfully proposed an increase.
South Korea's central bank raised its benchmark interest rate to a six-year high of 4.75 percent today on concern record lending to small companies may spur inflation. It was the Bank of Korea's first rate increase since August 2006.
By waiting one more month, the Bank of Japan's policy makers are able to check a report on second-quarter gross domestic product to be published in mid-August, as well as monthly data on consumer prices and industrial output. Production fell for a third month in May and consumer prices excluding fresh food slipped 0.1 percent, a fourth monthly drop.
Upper House Election
They also avoid any charges of a rate increase distracting from an Upper House election on July 29.
``The pretext for putting off a rate hike is that the certainty about the sustainability of economic growth has not increased,'' said Takehiro Sato, chief Japan economist at Morgan Stanley in Tokyo. ``However, the true reason could be that the BOJ wants to avoid paying unnecessary political cost'' before the election.
Later today the bank will publish a mid-term review of its half-yearly economic outlook released in April. Policy makers will probably say the economy and prices are largely improving in line with their forecasts made three months ago, said Izuru Kato, chief market economist at Totan Research Co. in Tokyo, who also predicts an August rate increase.
Japan's GDP probably slowed to an annual rate of 1 percent in the second quarter from 3.3 percent in the previous three months as exports and consumption lost momentum, according to the median estimate of economists. The government will release GDP in the week before the bank's Aug. 22-23 policy meeting.
Second-Quarter Growth
Slower second-quarter growth probably won't deter the central bank from raising rates because policy makers will check the growth trend by averaging GDP data over the most recent three quarters, said Morgan Stanley's Sato. The economy expanded 5.4 percent in the final quarter of 2006.
Of the 34 economists surveyed, 21 said the central bank will raise the key rate to 0.75 percent in August and eight said it will act in September. Three of the remaining five economists predicted October, one said November and the other said the rate will stay at 0.5 percent this year.
``Rate increases won't be impeded unless the economy deteriorates or deflation returns,'' said Ryutaro Kono, chief economist at BNP Paribas Securities Japan. ``The Bank of Japan will probably keep raising rates every six months.''
Governor Toshihiko Fukui and his policy board colleagues held the key overnight lending rate at 0.5 percent at a two-day meeting that ended today, the central bank said in Tokyo.
Fukui will propose a rate increase next month, according to two-thirds of 34 economists surveyed by Bloomberg News this week. The Bank of Japan's key interest rate is the lowest among major economies.
Any calls for a policy shift from board members ``can be regarded as heralding an August rate hike,'' said Seiji Shiraishi, chief economist at HSBC Securities Japan Ltd. The bank last raised the key rate in February, a month after three policy makers unsuccessfully proposed an increase.
South Korea's central bank raised its benchmark interest rate to a six-year high of 4.75 percent today on concern record lending to small companies may spur inflation. It was the Bank of Korea's first rate increase since August 2006.
By waiting one more month, the Bank of Japan's policy makers are able to check a report on second-quarter gross domestic product to be published in mid-August, as well as monthly data on consumer prices and industrial output. Production fell for a third month in May and consumer prices excluding fresh food slipped 0.1 percent, a fourth monthly drop.
Upper House Election
They also avoid any charges of a rate increase distracting from an Upper House election on July 29.
``The pretext for putting off a rate hike is that the certainty about the sustainability of economic growth has not increased,'' said Takehiro Sato, chief Japan economist at Morgan Stanley in Tokyo. ``However, the true reason could be that the BOJ wants to avoid paying unnecessary political cost'' before the election.
Later today the bank will publish a mid-term review of its half-yearly economic outlook released in April. Policy makers will probably say the economy and prices are largely improving in line with their forecasts made three months ago, said Izuru Kato, chief market economist at Totan Research Co. in Tokyo, who also predicts an August rate increase.
Japan's GDP probably slowed to an annual rate of 1 percent in the second quarter from 3.3 percent in the previous three months as exports and consumption lost momentum, according to the median estimate of economists. The government will release GDP in the week before the bank's Aug. 22-23 policy meeting.
Second-Quarter Growth
Slower second-quarter growth probably won't deter the central bank from raising rates because policy makers will check the growth trend by averaging GDP data over the most recent three quarters, said Morgan Stanley's Sato. The economy expanded 5.4 percent in the final quarter of 2006.
Of the 34 economists surveyed, 21 said the central bank will raise the key rate to 0.75 percent in August and eight said it will act in September. Three of the remaining five economists predicted October, one said November and the other said the rate will stay at 0.5 percent this year.
``Rate increases won't be impeded unless the economy deteriorates or deflation returns,'' said Ryutaro Kono, chief economist at BNP Paribas Securities Japan. ``The Bank of Japan will probably keep raising rates every six months.''
Alam Maritim Raises RM600 Million Islamic Securities
KUALA LUMPUR, July 12 (Bernama) -- Alam Maritim Resources Bhd has raised RM600 million in Islamic Securities, jointly arranged by Aseambankers Malaysia Bhd and Standard Chartered Bank Malaysia Bhd.The Islamic Securities comprises a RM500 million Sukuk Ijarah Medium Term Notes Facility (Sukuk Ijarah MTN Facility) and up to RM100 million of Murabahah Commercial Papers / Murabahah Medium Term Notes Programme (MCP/MMTN Programme).Aseambankers and Standard Chartered also act as the Joint Principal Advisers and Joint Lead Managers for the Islamic Securities."We are very pleased to bring to the local debt capital market the first Sukuk Ijarah transaction with offshore support vessels as the underlying assets, which was well-received by the investors," Sandeep Bahl, Head of Global Markets Malaysia, Standard Chartered Bank Malaysia Bhd said in a statement.AMRB expects to capitalise on the current favourable interest rate environment through the issuance of the Islamic Securities, added the statement.The proceeds raised from the issuance of the Sukuk Ijarah MTN will be utilised by AMRB to finance the acquisition of the beneficial interests in the Ijarah assets from its subsidiary companies, Alam Maritim (M) Sdn Bhd (AMSB) and Alam Maritim (L) Inc (AMLI).Thereafter, the proceeds will be utilised to refinance AMBS's existing outstanding borrowings, to finance and/or part finance the acquisition of new vessels and to refinance the MCP/MMTN issued earlier to finance the progress payments in relation to the new vessels to be constructed and acquired by AMRB's subsidiary companies.Meanwhile, the proceeds raised from the issuance of the MCP/MMTN Programme will be advanced by AMRB to its subsidiary companies to finance progress payments in relation to the new vessels and to finance AMRB's and/or its subsidiary companies' working capital requirement.The Sukuk Ijarah MTN Facility shall have a tenure of up to fifteen (15) years from the date of the first issuance of the Sukuk Ijarah MTN under the Sukuk Ijarah MTN Facility and has been accorded a long term rating of AA-ID by Malaysian Rating Corporation Bhd (MARC).The MCP/MMTN Programme shall have a tenure of up to seven years from the date of the first issuance of the MCP/MMTN under the MCP/MMTN Programme and has been accorded a short term rating of MARC-1ID and long term rating of AA-ID by MARC.Alam Maritim provides support vessels and services, offshore facilities construction and installation services, and underwater services for the oil and gas industry.
Tuesday, July 10, 2007
Sumatec's Unit Secures RM5.75 Million Project In Maldives
KUALA LUMPUR, July 10 (Bernama) -- Sumatec Resources Bhd's unit Sumatec Corporation Sdn Bhd has secured a project worth RM5.757 million in Maldives, said Sumatec in a filing to Bursa Malaysia here, today.The contract, which is scheduled to be completed in May 2008, is for the design, fabrication, testing and supply of new Aviation Fuelling System for Maldives Airport Company Ltd, a government-owned company of the Maldives.The contract is expected to contribute positively to the overall earning and shareholder value of Sumatec for the financial year ending Dec 31, 2007.
MAHB's Consortium Wins Bid To Manage Istanbul's Second Airport
KUALA LUMPUR, July 10 (Bernama) -- The consortium in which Malaysia Airports Holdings Bhd (MAHB) is a part of has won the bid to manage the Sabiha Gokcen International Airport, Istanbul's second airport.Led by the Limak Group of Turkey with the other member being GMR Infrastructure Limited of India, the consortium's bid is valued at euro 1.932 billion (RM9.084 billion).The group beat four other international airport operators, MAHB said in a press release here today.The consortium offered the highest bid which is the concession fee for the period of 20 years. No concession fees are payable in the first three years.MAHB said that it would take up a minimum stake of 20 percent in the joint venture company.The scope of the tender includes taking over the operations, maintenance and revenues of the international and domestic terminals of Sabiha Gokcen International Airport and all their related buildings/equipments and ground handling, fuel supply and bonded warehousing operations in the airport.The project also involves the construction of a new international terminal with 10 million capacity in thirty months while the current international terminal will be converted to an all domestic terminal.Limak is an established engineering and construction company in Turkey while GMR is MAHB's joint venture partner in operating the Hyderabad International Airport.
Gadang's Unit To Acquire Indonesian Water Treatment Company
KUALA LUMPUR, July 10 (Bernama) -- Gadang Holdings Bhd's indirect wholly owned subsidiary, Asian Utilities Pte Ltd, plans to acquire 85 percent of Indonesia-based PT Hanarida Tirta Birawa (HTB) for RM13 million cash.HTB has the rights to operate water treatment and supply for a period of 20 years until June 8, 2024 in Sidoarjo, East Java, Gadang said in a filing to Bursa Malaysia today.HTB also owns and operates a water treatment plant at Tawangsari, Sidoarjo, with a capacity of 600 litres per second and which it is currently operating at 500 litres per second, the company said.According to Gadang, the proposed acquisition is part of its plan to expand its treated water supply and concession business in Indonesia.The proposed acquisition will increase Gadang's interests in the treated water supply and concession business in Indonesia, the company said."Barring unforeseen circumstances, the acquisition is expected to contribute positively to the earnings of the Gadang group in the future," it said.
Friday, July 6, 2007
Muhibbah Engineering Wins RM1.1 billion Construction Jobs
KUALA LUMPUR, July 6 (Bernama) -- Muhibbah Engineering (M) Bhd has been awarded a contract worth RM1.1 billion for construction works of the South Klang Valley Expressway.In a filing to Bursa Malaysia here, the company said the project is expected to contribute positively to the company's future financial years.It is expected to be completed within 42 months from the date of site possession, the company said.The expressway which will be from Damansara Puchong Highway (LDP) interchange to Pulau Indah at the west coast of Peninsular Malaysia, will include construction works for bridges structures, earthworks, ground treatment and surface drainage.
Wednesday, July 4, 2007
Shareholder agreement on PORR project ready
PENANG: Peninsular Metro-Works Sdn Bhd (PMW), the concessionaire for the Penang Outer Ring Road (PORR), has finalised its shareholders agreement which will be submitted to the Economic Planning Unit (EPU) after July 20.
Managing director Datuk Abdul Rahim Saibu said the finalised agreement structure, however, did not include Malaysian Resources Corp Bhd (MRCB) as widely believed.
The shareholders in the finalised structure are investment holding company Nadi Senandung Sdn Bhd, with a 55% stake; and Kumpulan Perhubungan Sdn Bhd, a unit of Yayasan Bumiputera Pulau Pinang Bhd, with 30% interest, while Lingkaran Tanjung Sdn Bhd and Melati Jebat Sdn Bhd would hold 8% and 7% respectively.
Rahim said the company saw no reason to delay the signing of the concession agreement.
“The concession agreement should be signed before the end of August,” he told StarBiz.
Rahim said the entire project would be fully financed by and had the full support of Macquarie Bank, Bank Pembangunan and Affin Bank.
Gurney Drive as it is today. The landscape will change after reclamation of 500 acres in the area under the PORR project.“PMW plans to call for open tenders to select competent Malaysian contractors as well as to ensure the support of the local industry in Penang,” he added.
PMW, with a paid-up capital of RM5mil, was incorporated in 1995 with the specific objective of building and operating the PORR project for 34 years.
The 17.2km two-lane dual expressway, is designed for speeds of up to 80km an hour. Some 11km of the expressway will be elevated to accommodate an 8km double-decked road, the first of its kind in Malaysia.
The expressway, which is expected to have four toll plazas and eight interchanges, will stretch from Tanjung Bungah to Penang Bridge on the island.
The project is expected to drastically change the landscape of Penang and create significant economic spillover effects for the state.
The project will take about four years to complete. The planning and designing, and working out financial aspects would take at least a year.
The construction and development costs are estimated to be about RM1.2bil. and
the project also involves reclaiming up to 500 acres at Gurney Drive
Managing director Datuk Abdul Rahim Saibu said the finalised agreement structure, however, did not include Malaysian Resources Corp Bhd (MRCB) as widely believed.
The shareholders in the finalised structure are investment holding company Nadi Senandung Sdn Bhd, with a 55% stake; and Kumpulan Perhubungan Sdn Bhd, a unit of Yayasan Bumiputera Pulau Pinang Bhd, with 30% interest, while Lingkaran Tanjung Sdn Bhd and Melati Jebat Sdn Bhd would hold 8% and 7% respectively.
Rahim said the company saw no reason to delay the signing of the concession agreement.
“The concession agreement should be signed before the end of August,” he told StarBiz.
Rahim said the entire project would be fully financed by and had the full support of Macquarie Bank, Bank Pembangunan and Affin Bank.
Gurney Drive as it is today. The landscape will change after reclamation of 500 acres in the area under the PORR project.“PMW plans to call for open tenders to select competent Malaysian contractors as well as to ensure the support of the local industry in Penang,” he added.
PMW, with a paid-up capital of RM5mil, was incorporated in 1995 with the specific objective of building and operating the PORR project for 34 years.
The 17.2km two-lane dual expressway, is designed for speeds of up to 80km an hour. Some 11km of the expressway will be elevated to accommodate an 8km double-decked road, the first of its kind in Malaysia.
The expressway, which is expected to have four toll plazas and eight interchanges, will stretch from Tanjung Bungah to Penang Bridge on the island.
The project is expected to drastically change the landscape of Penang and create significant economic spillover effects for the state.
The project will take about four years to complete. The planning and designing, and working out financial aspects would take at least a year.
The construction and development costs are estimated to be about RM1.2bil. and
the project also involves reclaiming up to 500 acres at Gurney Drive
Suzuki Malaysia Unveils Suzuki Swift CKD Model
PETALING JAYA, July 4 (Bernama) -- DRB-Hicom Bhd's subsidiary Suzuki Malaysia Automobile Sdn Bhd Wednesday unveiled its locally-assembled Suzuki Swift 1.5L here which is produced at the company's plant in Pekan, Pahang.Suzuki Malaysia Automobile's chief executive officer Bastamam Hamzah said the Suzuki Swift was the first model to be produced at its RM20 million robotic welding line-based plant in Pekan."We are confident the locally assembly Suzuki Swift will meet the high quality standards that car buyers demand these days," he said at the launch of the Suzuki Swift and fully-imported Swift Sport, today.Suzuki Malaysia currently holds about two percent of the non-national vehicle market in Malaysia.Bastaman said Suzuki Malaysia was the first non-national automotive company for small volume production to adopt the robotic welding technology.He said the company aimed to produce an initial 300 units of "Made-in-Malaysia" Suzuki Swift monthly.The locally-assembled Suzuki Swift comes in four variant colours - bayside blue, silver grey, supreme red and tranquillity black, and is priced at RM69,888 per unit on the road without insurance and will be available in the market from August.
Malaysia's Trade Surplus In May 2007 Up 34.6%
KUALA LUMPUR, July 4 (Bernama) -- Malaysia's trade surplus for May 2007 rose 34.6 per cent to RM7.89 billion from the previous month due largely to stronger export growth.The Statistics Department, in releasing the figures Wednesday, said total trade expanded by 5.5 per cent from the previous month to RM91.23 billion and was 3.1 per cent higher from May last year.Total exports for May 2007 also increased 7.4 per cent from the previous month to RM49.56 billion, the highest recorded in the past five months, it said in a statement.For the January-May 2007 period, total trade rose 2.8 per cent to RM432.87 billion from the same period last year, resulting in a trade surplus of RM34.81 billion, the department said.Accordingly, exports grew by 1.4 per cent to RM233.84 billion from the previous corresponding period, while imports gained 4.6 per cent to RM199.03 billion.The largest export revenue earner for May 2007 was electrical and electronic (E&E) products valued at RM2.25 billion or 44.9 per cent, followed by palm oil (RM2.76 billion or 5.6 per cent) and crude petroleum (RM2.63 billion or 5.3 per cent), the department said.Asean, the United States, the European Union (EU), Japan, China, Hong Kong and South Korea were the top export markets, accounting for 81.3 per cent of Malaysia's total exports for the same period.Asean absorbed 24.6 per cent of the country's total exports in May 2007 following higher exports of crude petroleum and E&E products, while exports to West Asia rose 3.4 per cent to RM1.84 billion with significant increases from Syria, Iran and the United Arab Emirates.Higher exports of crude petroleum, E&E products and LNG (liquefied natural gas) led to a 25.1 per cent surge in exports to Japan at RM5.01 billion, while exports to China expanded 11.3 per cent to RM3.99 billion with significant rise in palm oil and E&E products, according to the department.Major markets which recorded notable expansion in exports from January to May 2007 included China with an increase of 28.6 per cent, West Asia (20 per cent), India (13.2 per cent), South Korea (12.7 per cent), Taiwan (11.2 percent), the EU (10.1 per cent) and Japan (4.9 per cent).For imports, May 2007 saw intermediate goods valued at RM29.92 billion or 71.8 per cent, capital goods (RM5.85 billion or 14 per cent) and consumption goods (RM2.36 billion or 5.7 per cent), the department said.Major imports included E&E products at RM16.14 billion or 38.7 per cent, machinery, appliances and parts (RM3.83 billion or 9.2 per cent), and chemicals and chemical products (RM3.34 billion or eight per cent), it added.Asean was the top major source of import for Malaysia at an import value of RM10.38 billion or 24.9 per cent, followed by Japan (RM5.21 billion or 12.5 per cent) and the EU (RM5.07 billion or 12.2 per cent).Major imports for January to May 2007 increased by 4.6 per cent to RM199.03 billion, mainly attributed to higher imports of intermediate goods, the department said.For the same period, intermediate goods rose eight per cent to RM141.79 billion or 71.2 of total imports, capital goods gained 0.5 per cent to RM26.38 billion or 13.3 per cent of total imports, and consumption goods climbed 8.4 per cent to RM11.76 billion or 5.9 per cent of total imports.
Tuesday, July 3, 2007
Megan posts RM1.3bil loss
PETALING JAYA: Optical disk maker Megan Media Holdings Bhd posted a whopping pre-tax loss of RM1.3bil for the fiscal year ended April 30 on revenue of RM122.2mil.
Loss per share stood at 622.82 sen while net liabilities per share amounted to RM3.92.
In a filing to Bursa Malaysia on Friday, the company reported defaults on all its loans, which amounted to almost RM900mil.
As a result, various banking institutions had initiated legal action against the group, Megan said. The group is in a negative net cash position of RM897.6mil while shareholders' fund is in the red of RM797mil.
During the period, Megan had an impairment loss of property, plant and equipment (PPE) of RM488.1mil.
This figure, which is based on the directors' best estimates, may change pending the outcome of further investigation of PPE by the investigative accountants.
There was no formal valuation of PPE in the past, the company said.
In addition, Megan also had a write-off of investment in a subsidiary no longer consolidated of RM138.5mil, write-off of deposit for machinery of RM198.7mil, write-off of trade receivables of RM189.9mil and provision for crystallisation of corporate guarantee to a subsidiary of RM118.9mil.
Also included in the balance sheet are provisions for expected claims of RM31.8mil from third parties.
Megan said the final report from the investigative accountants was expected to be completed in six to eight weeks.
The board had adjusted the substantial irregularities in the last three financial quarters but further amendments may be required pending the final report.
In addition, there might be further liabilities that might have crystallised but yet to be provided for, it added.
Classified as PN17 or financially-troubled company, Megan has eight months from June 19 to submit a regularisation plan to the relevant authority.
“The viability of the company rests primarily on the completion of a successful implementation of debt restructuring and regularisation plans,” it added.
Loss per share stood at 622.82 sen while net liabilities per share amounted to RM3.92.
In a filing to Bursa Malaysia on Friday, the company reported defaults on all its loans, which amounted to almost RM900mil.
As a result, various banking institutions had initiated legal action against the group, Megan said. The group is in a negative net cash position of RM897.6mil while shareholders' fund is in the red of RM797mil.
During the period, Megan had an impairment loss of property, plant and equipment (PPE) of RM488.1mil.
This figure, which is based on the directors' best estimates, may change pending the outcome of further investigation of PPE by the investigative accountants.
There was no formal valuation of PPE in the past, the company said.
In addition, Megan also had a write-off of investment in a subsidiary no longer consolidated of RM138.5mil, write-off of deposit for machinery of RM198.7mil, write-off of trade receivables of RM189.9mil and provision for crystallisation of corporate guarantee to a subsidiary of RM118.9mil.
Also included in the balance sheet are provisions for expected claims of RM31.8mil from third parties.
Megan said the final report from the investigative accountants was expected to be completed in six to eight weeks.
The board had adjusted the substantial irregularities in the last three financial quarters but further amendments may be required pending the final report.
In addition, there might be further liabilities that might have crystallised but yet to be provided for, it added.
Classified as PN17 or financially-troubled company, Megan has eight months from June 19 to submit a regularisation plan to the relevant authority.
“The viability of the company rests primarily on the completion of a successful implementation of debt restructuring and regularisation plans,” it added.
Windfall For Petronas Gas Shareholders
KUALA LUMPUR, July 3 (Bernama) -- Petronas Gas Bhd is paying a final dividend of 20 percent per ordinary share tax exempt and 10 percent per ordinary share at 27 percent tax for its financial year ended March 31, 2007.The dividend is payable on Aug 23, it said in a statement today.Petronas Gas' pre-tax profit for the year ended March 31, 2007 jumped to RM1.281 billion from RM1.024 billion previously.Its turnover stood at RM2.98 billion, up from RM2.839 billion previously.
YTL Land & Development target price RM3.30
YTL Land & Development Bhd (YTLL) has the largest tract of prime landnear KLCC and Mont' Kiara. Measuring 294 acres, it is a self-contained enclavethat is divided into two unique but distinctive areas named Sentul West andSentul East. In its masterplan, YTLL plans to build 4,000 luxury condominiums inSentul West and 3,000 condominiums in Sentul East.Point: We believe YTLL's Sentul development is the up and coming address inKuala Lumpur. Recent positive measures by the government have already seenproperty prices rise in Mont' Kiara and KLCC. Sentul, which is located smack inbetween Mont' Kiara and KLCC, should generate more interest and priceappreciation in time.Relevance: We are initiating coverage on YLLL with a Buy recommendation,ascribing a RNAV-based TP of RM3.30. YTLL's focus on high-end properties willbenefit from recent positive measures by the government. We believe the stage isset for YTLL to leverage on and be more aggressive project launches, especiallyits Sentul projects.An innovative homebuilder. YTLL is known for revitalizing neglected butstrategically located land into attractive and thriving communities. YTLL'sstrengths lie in its innovation and ability to accentuate the naturalattractions of site by conserving and retaining the existing natural environmentand terrain. YTLL's projects, such as Lake Edge in Puchong and Lake Fields werebuilt around disused mining pools.Right timing, right segment. YTLL is mainly involved in mid-high end commercialand residential properties. This segment should see an increase in demand fromforeign and local investors after the government lifted RPGT recently and easedforeign ownership rules.Up and coming address. We believe YTLL's Sentul development, which was unveiledin 2002, has all the ingredients to be transformed into one of the sought-afteraddresses in KL. Since 2002, YTLL has completed a 35-acre park in Sentul West,improved accessibility to within 15 minutes drive from Mont' Kiara and KLCC, theKL Performing Arts Center and a Koi Pond center. We expect the development,which is centered around a park modeled after New York's Central Park andLondon's Hyde Park, will receive strong interest especially from foreigners.Target price of RM3.30. We believe YTLL deserves to be valued at its RNAV ofRM3.30, due to its strong branding and focus on strategically locatedinvestment-driven properties. YTD, YTL has bought 11m shares (at betweenRM0.69-RM1.57).
Monday, July 2, 2007
Transmile Restates 2006 Pre-tax profit As A Loss
KUALA LUMPUR, July 2 (Bernama) -- Air cargo service provider Transmile Group Bhd today restated that for financial year 2006 it made a pre-tax loss of RM124.68 million rather than the profit of RM157.53 million it had reported earlier.In its restated audited account released today, it revealed that Transmile also booked a loss of RM416.996 million in 2005 instead of the unaudited profit of RM84.386 million.The audited financial statements showed that Transmile posted a revenue of RM655.831 million in financial year 2006 instead of RM989.191 million.Revenue in 2005 was reduced to RM356.379 million from an unaudited RM550.078 million.Transmile shares were suspended today and will resume trading tomorrow.The shares were last traded at RM4.54.Transmile's accounting woes came to light on May 7 when it announced it failed to meet the deadline to submit the audited financial statements for 2006.Transmile had lodged police reports over what it said were false statements in its various accounts since 2004.The company also announced a special audit on its associated company CEN Sdn Bhd's subsidiary, CEN Worldwide Sdn Bhd, while Transmile Group founder and chief executive officer Gan Boon Aun resigned.
Sunday, July 1, 2007
Malaysia's Investment In South Countries Amount to US$4.8 Billion In 2006
KUALA LUMPUR, July 2 (Bernama) -- Malaysia's investment in South-South countries amounted to US$4.8 billion (RM17.6 billion) last year owing to brisk efforts by the government to encourage local firms to invest in developing nations, Minister of International Trade and Industry Datuk Seri Rafidah Aziz, said here Monday.Through South-South cooperation, developing countries could in the long term increase their economic well-being by investing jointly in the infrastructure and manufacturing sectors, she said in her keynote address at the familiarisation programme for officials of investment promotion agencies of South-South countries.Her speech was read out by Datuk R. Karunakaran, director-general of the Malaysian Industrial Development Authority (MIDA).Some 30 international participants from 16 countries are attending the programme.The investment also reflects Malaysia's "prosper thy neighbour" policy" in engaging developing countries in both trade and investment in a manner that would bring about mutual benefits to both parties.This was evident even recently when Prime Minister Datuk Seri Abdullah Ahmad Badawi visited Sudan, Namibia and Kenya, a move which would continne to take South-South linkages to a significantly higher level.Malaysia would also host the eight Global Langkawi International Dialogue (LID) from Aug 6-8 to foster smart partnerships which is expected to further widen the avenue for increased collaboration with South-South nations."The increasing globalisation and liberalisation of trade and investment makes it imperative for South-South Countries to collaborate and expand trade and investment ties," said Rafidah.She said that Malaysia also established close relationships and cooperative linkages with many South-South Countries in manufacturing, services, banking and finance, marketing of commodities, exchange of information, technical corporation and trade.She said the government offered many incentives for firms to invest overseas, particularly in South-South countries, including start-up expenditure which could be tax exempted.The government has also concluded Investment Guarantee Agreements (IGAs) with many developing countires to encourage and foster the flow of investments between Malaysia and these countries.To date, 56 IGAs has been signed with South-South Countries.Rafidah said total Malaysian investment overseas has increased to US$5.9 billion (RM21.5 billion) in 2006 from US$3 billion (RM11.3 billion) in 2005.
Air France-KLM, China Southern Plan Cargo Services JV
BEIJING, July 2 (Bernama) -- Air France-KLM Group and China Southern Airlines agreed to have exclusive discussion over the creation of a cargo joint venture in China, China's Xinhua news agency quoted a source with Air France-KLM Group as saying Sunday.Air France-KLM Group and China Southern Airlines already have extensive cooperation in both passenger and cargo services.Further details of the joint venture will be announced later after the discussions, according to the source.China Southern Airlines is the largest carrier in China in terms of fleet, routes and annual passenger carrying capacity. It operates more than 600 domestic and international routes with destinations to 152 cities throughout China and the world.In 2006, China Southern Airlines carried 49.21 million passengers and was the only airline on the Chinese mainland to rank the world's top ten passenger carrying airlines.
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