PAAB to raise funds

KUALA LUMPUR, Aug 28 (Bernama) -- The Finance Ministry-owned Pengurusan Aset Air Bhd (PAAB), which is in the midst of taking over the management of water assets from state governments, plans to go into capital market to raise funds to finance its capital projects in the longer term.This includes financing the take-over of the assets and liabilities of the state governments, Energy, Water and Communications Minister Datuk Seri Dr Lim Keng Yaik said Tuesday."The company has AAA rating which enables it to raise funds from anywhere, and not necessarily go for listing. It could be the bond market," he told reporters after the Fourth National Utilities Summit 2007 here.It was reported that about RM7.8 billion of debts are owed by water companies in the state governments, with Melaka and Negeri Sembilan recording debts exceeding assets."We are now negotiating with the state governments to surrender their water assets soon to PAAB," he said, adding that the water assets will then be leased back to the state governments but the rent will be determined according to their debt payments.PAAB will also take over the replacement of old water mains to maximise efficiency and ensure that water supplied is of high quality.Dr Lim said state governments are welcome to participate in the new water services regime, which will be enforced through the Water Services Industry Act next January.Johor and Selangor's privatised water companies have expressed interest in migrating to the new water services regime, he added.

Government to rely on hydropower to produce 30% of electricity needs

KUALA LUMPUR, Aug 28 (Bernama) -- The government plans to rely on hydropower to produce 30 percent of the country's electricity needs over the next decade to reduce dependence on fossil fuels, Minister of Energy, Water and Communications, Datuk Seri Dr Lim Keng Yaik, said here Tuesday."Sabah and Sarawak have the potential to deliver that," he said at the opening of the 4th National Utilities Summit 2007 here today.He said the development of hydropower and the transmission of power from Sabah and Sarawak to Peninsular Malaysia offered business opportunities for the energy sector.Dr Lim said the two states could supply about 4,000 to 5,000 megawatt hydropower in years to come.Currently, Malaysia relies on gas and to a lesser extent, coal to produce its electric power."We are also studying the possibility of getting more hydropower from the Rejang River basin such as Murum and Baleh for the longer term. The role of hydropower will be more prominent post-2010.He said the Bakun hydropower project, which was expected to be completed by 2011, still needed undersea cables to transport the power."However, the decision on the cable is still being considered," he said.Asked whether the undersea cable project was still viable, Dr Lim said: "I have to think about it. It is a matter of dollar and cent."At the moment, he said, the ministry was looking at technical and financing aspects before laying the undersea cable."Eventually the Bakun power source will still be brought to Peninsular Malaysia. It is only the matter of when and how much," he said.In June, Dr Lim said the government has asked Japan's Sumitomo Corp and Italy's Prysmian SpA to consider setting up plants in Malaysia to manufacture the submarine cables for the 700-kilometre undersea project, estimated to cost about US$1.5 billion.

US$10b project in IDR

KUALA LUMPUR: A group of investors from Abu Dhabi, Kuwait, Saudi Arabia and Lebanon are expected to join Malaysian investors to develop 2,000 to 2,500 acres in the Iskandar Development Region (IDR) into a high-end integrated city.
While the initial investment in the development is projected to be more than RM3bil, the construction cost is estimated to be between US$10bil and US$12bil, according to sources.
The massive development, which will be spearheaded by investors that have transformed cities in the Middle East, is projected to be completed no later than 2015.
Sources said the land would be purchased from South Johor Investment Corp (SJIC), the developer of IDR, but jointly developed by the Middle Eastern parties and SJIC. An agreement could be inked between the parties on development, advisory services and contracting.
Mudabala Group of Abu Dhabi and the Abu Dhabi Investment Authority are said to be among the investors that would be building high-end properties in IDR. There is also talk that a big developer from Abu Dhabi would partner Putrajaya Perdana Bhd in executing part of the development.
Swan Symphony Sdn Bhd, a consortium comprising Middle Eastern, Malaysian and Singaporean investors, has proposed to buy a 50.6% stake in Putrajaya Perdana for RM390mil cash with the intention of transforming the Malaysian developer into a global construction company.
Swan Symphony is 51%-owned by the Abu Dhabi-Kuwait-Malaysia Investment Corp and 49% by Autron Investment.
Mudabala has wide-ranging investments in real estate, utilities, basic industries, energy, health and services. The investment agency owns a 5% stake in Italian carmaker Ferrari and 25% of SR Technics, one of the largest maintenance, repair and overhaul service providers in Europe.
The foreign investors are said to have a track record in getting things done fast and a penchant for glamorous projects.
Although details are sketchy, plans for the development in IDR by the Middle Eastern investors will feature high-end properties priced up to RM2,000 per sq ft.
Facilities like a high-end yacht club, high-end shopping centres and luxurious hotels are said to be on the blueprint.
An expansion of the Senai airport is also on the cards and the Government is expected to create a conducive environment for investment by foreigners.
The entire development is expected to be a tremendous boost for the local construction and building materials industry.

Malaysia-Islamic Finance in region

KUALA LUMPUR, Aug 27 (Bernama) -- Malaysia is fast becoming a model for the successful development of an Islamic financial system alongside the well-established conventional banking system in the Asia-Pacific region, a business leader said today."This is not surprising as Malaysia, as a multi-cultural nation, was quick to recognise and respond to the significance of the influence of cultural, religious and social dimensions of modern life in the mechanism for transaction," said Datuk Dr Tan Tiong Hong, chairman of the Association of Business Executives (ABE), United Kingdom.He was opening a seminar here on Malaysia's role in global Islamic finance leadership, education and value innovation.Tan said that given the rapid economic development of Malaysia in the past two decades and its multi-ethnic composition with more than 60 percent Muslims, it is natural that Islamic principles are innovatively assimilated into the mechanism of transactions that are acceptable to its Muslim population.He noted that Malaysia has a headstart in the successful implementation of a modern Islamic financial system alongside the conventional financial system, saying this had been made easy with the setting up of the Pilgrims Management Fund Board in 1963.Tan felt that with the backing of the government, the Islamic financial system can become more comprehensive, progressive, effective and efficient," he added.After the seminar, a memorandum of understanding (MoU) was signed between the ABE, the International Society of Business Administrators (ISBA) UK, the Centre for Islamic Business Research (CIBR) Malaysia and Zheng He Education 1421 to provide study modules and certification for distance learning students.

Hong Leong Pre-tax Profit Up 15% to RM986 Million

KUALA LUMPUR, Aug 27 (Bernama) -- Hong Leong Financial Group Bhd's pre-tax profit for financial year ended June 30, 2007 rose by 15 percent to RM986 million from RM859 million in the same period last year.In a statement here today, it said net profit increased by 20 percent to RM488 million over the same period last year.Hong Leong said for this year, the group was focused on transforming its core businesses -- banking, insurance and securities and asset management.It said the banking division's net profit rose by 13 percent to RM621 from RM550 million previously."The positive profit performance continues to be supported by strong quality loans growth, particularly in the consumer financing segment namely, from mortgage, credit cards and personal lending," it said.Hong Leong said the insurance division's net profit rose by 32 percent to RM91 million from RM69 million previously, mainly attributable to higher investment income and growth in premiums received.It said the securities and asset management division's net profit rose by 41 percent to RM26 million from RM18 million previously."This was due to higher brokerage income arising from the strong Bursa Malaysia trading volumes experienced during the year," it said.

Malaysia's trade With APEC expected to rise

KUALA LUMPUR, Aug 27 (Bernama) -- Malaysia's total trade with the Asia Pacific Economic Cooperation (APEC) countries, which has been growing over the past 10 years to US$226.7 billion in 2006, is expected to increase further this year."We foresee the trend to continue this year and also in future because most of the economies growing strongly are located within the APEC region," Malaysia External Trade Development Corporation's chief executive officer Datuk Noharuddin Nordin said today."As you know, countries like Japan and North America are already traditionally our strong markets," he told reporters at the "Specialised Capacity Building Course for APEC Trade Commissioners", which was officiated by Matrade's chairman Tan Sri Halim Mohammed.Malaysia's total trade with the 20 APEC countries jumped 84.6 percent to US$226.7 billion last year compared with US$122.8 billion in 1997.The country's exports to APEC economies expanded by 11.5 percent to US$123.6 billion last year from US$103.2 billion in 2005 while imports rose by 12.9 percent to US$103.2 billion in 2006 from US$91.4 billion in the previous year.On the course, Noharuddin said it was to enhance the skills and effectiveness of trade commissioners in their capacity as business facilitators and economic representatives.It was also to create a platform for trade commissioners to network and share information as well as experiences on changing business cultures, he said.The course, organised by Malaysia for the first time, is participated by representatives from China, Indonesia, the Philippines, Malaysia, South Korea, Japan, Chile, Hong Kong and Mexico.Earlier, Halim in his opening speech said that Malaysia would host the International Trade Malaysia 2007 Exhibition, to be held from Nov 12 to 15 at the Matrade Exhibition and Convention Centre.The event, themed "Fostering Business Collaboration", would provide a platform for participating companies from many parts of the world to develop trading, investment and collaboration opportunities, he said.He added that in conjunction with the exhibition, the Kuala Lumpur International Trade Forum, would also be held to attract international business leaders, entrepreneurs and industrialists.

Steel Consumption to increase 7% in 2008/09

KUALA LUMPUR, Aug 27 (Bernama) -- Local steel consumption is expected to increase by 7.0 percent next year and in 2009 from 7.7 million tonnes last year, the President of the Malaysian Iron and Steel Industry Federation Tan Sri Soong Siew Hoong said today."Major projects for implementation under the Ninth Malaysia Plan would likely boost demand for building materials and steel products domestically," he said at the Asean Steel conference here today."The growth rate of the Malaysian steel industry from 2007 until 2010 is expected to be lower but more sustainable averaging 6.0 percent annually," he said.He said steel consumption per capita was projected to increase to 318 kilogrammes in 2010 from 297 kg this year.Soong said the industry as a whole would have a made greater efforts to strengthen its position by growing the downstream sector to support the upstream sector.The industry was expected to expand its downstream activities to produce a wider range of higher-valued products, he said.He also said that growth was likely to come from more infrastructural projects.

Bumiputra-Commerce H1 Net Profit Up 97% to RM1.276 Billion

KUALA LUMPUR, Aug 24 (Bernama) -- Bumiputra-Commerce Holdings Bhd's (BCHB) net profit for first-half ended June 30, 2007 rose by 97 percent to RM1.276 billion from RM649 million in the corresponding period last year.Revenue and pre-tax profit were up by 80 percent and 90 percent respectively compared with the same period last year."The group's better performance was largely due to CIMB Group's investment banking and treasury divisions capitalising on strong capital markets in Malaysia and the rest of the region," managing director/chief executive officer, Datuk Nazir Razak, said at a press conference to announce its first-half results here today.He said on a quarter-to-quarter basis, BCHB group's revenue increased 17.7 percent to RM2.47 billion while net earning rose 7.3 percent to RM660 million due to higher overhead, loan provisions and taxation rate.Nazir said the group has also shown an improvement in asset quality indicators."Loan loss coverage ratio stood at 61 percent, up from 59 percent as at March 31, 2007 while net non-performing loan ratio was lower at 5.2 percent from 5.6 percent as at end of first quarter," he said.BCHB announced a special dividend of 25 sen per share and increased its annual dividend policy rate, excluding the special dividend, from 15 sen to 25 sen per share from 2007 onwards.

OPR unchanged 3.50%

KUALA LUMPUR, Aug 24 (Bernama) -- Bank Negara Malaysia's Monetary Policy Committee (MPC) has decided to leave the Overnight Policy Rate (OPR) unchanged at 3.50 percent.The rate was unchanged by the committee during its meeting today, the 11th straight time since April last year.BNM, in a statement today noted that the growth of the Malaysian economy has remained strong in the first half of the year with the slower external sector being balanced by stronger growth in domestic demand.In assessing the outlook for the rest of the year, BNM said that the turbulence in the global financial markets over the recent weeks has created a higher degree of uncertainty regarding global economic growth."While the Malaysian economy is not insulated from the volatility in the global financial markets and possible consequential moderation in global demand, strong domestic fundamentals will provide a sound foundation for growth," it said."While rising global food and commodity prices could potentially increase the risk of higher prices, the inflation rate in Malaysia is expected to remain low."The central bank also said that inflationary expectations are also well-contained.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, BNM added.

Plant Near Kemaman For biodiesel & biomedical Products

KUALA TERENGGANU, Aug 24 (Bernama) -- Home-grown Bio Global Tech Sdn Bhd plans to start building a RM120 million plant at Teluk Kalong in Kemaman by year end to produce biodiesel as well as biomedical products from palm oil.Managing director Md Hamzah Abdullah said today that besides Biodiesel B100, the other main products will be vitamin E, glyecrine and stearin which are in high demand both locally and overseas.According to him, the vitamin E found in palm oil, known as tocopherol and tocotrienol, are associated with health benefits such as lowering cancer and cardiovascular risks, and they also help strengthen the immune system and have a high content of antioxidants."Terengganu was chosen because it has investor-compliant infrastructure facilities such as the East-West Highway and airport, and we are awaiting state government approval to build the factory on a 10-ha site," he told reporters after signing a memorandum of understanding between his company and Luher Management Bhd here.Luher Management Bhd was represented by its managing director, Datuk Abdul Karim Mohamad, and among those present was the State Executive Councillor in charge of industrial development and tourism, Datuk Mohamed Awang Tera.Md Hamzah said the plant will provide jobs for 40 to 50 local people and will also help lift the state's economic status.At present, he said, Bio Global Tech has one overseas branch, in Cambodia.

Subprime worries hit Bank of China shares

Shares in Bank of China and its subsidiary BOC Hong Kong slid on Friday amid worries that higher-than-expected exposure to sub-prime mortgages would eat into their earnings.
Bank of China shares extended opening losses and were down 6.11 per cent at HK$3.84, while BOC Hong Kong slid 4.2 per cent to HK$18.74. The Hang Seng Index was down 1.21 per cent.
UBS and Morgan Stanley both cut their ratings on BOC Hong Kong, the city’s second-biggest lender, citing concerns over its sub-prime exposure.
State-controlled Bank of China said late on Thursday that it held US$8.965bn in U.S. subprime mortgage-backed bonds and US$682mn in collateralised debt obligations at the end of June.
A meltdown in the U.S. subprime mortgage market has triggered a global credit squeeze and roiled markets over the past several weeks.
Bank of China, which posted a forecast-beating 52 per cent rise in first-half net profit, said it had set aside provisions of 388mn yuan and 758mn yuan, respectively, to account for potential losses.
”The size of the subprime exposure is bigger than expected,” said a banking analyst who declined to be named.
Rival Industrial and Commercial Bank of China, the world’s largest lender by market value, revealed on Thursday that it holds US$1.23bn in mortgage-backed securities, accounting for 4.32 per cent of its foreign exchange investment portfolio.
The state-controlled bank said it had incurred no loss on the portfolio, which accounts for 0.0012 per cent of its total assets.
ICBC shares were down 2 per cent on Friday morning.
Bank of China’s subprime bonds account for 3.51 per cent of Bank of China’s securities portfolio, while the CDOs account for 0.27 per cent of the total.
Morgan Stanley and UBS on Friday downgraded BOC Hong Kong by one notch to equal-weight and neutral, respectively, saying the stock was likely to be weighed down by its investment in sub-prime mortgages.
BOC Hong Kong disclosed it has US$1.6bn invested in sub-prime mortgage related asset-backed securities, Morgan Stanley said.
”We expect some losses ahead,” it said.
UBS also said the bank’s trading income was disappointing. It cut its price target for the bank to HK$20.80 per share from HK$21.70.
BOC Hong Kong on Thursday reported a 5.3 per cent rise in interim net profit to HK$7.47bn.
But Steve Cheng, associate director at Shenyin Wanguo, said the selling pressure on Bank of China would soon pass.
”The policy favouring the bank in the individual qualified domestic institutional investor scheme will attract buyers but some people may sell off China financials because of BOC. But to see the actual impact (of its exposure), we’ll have to wait,” he said.
Bank of China said it would begin accepting applications from mainland individuals next week interested in investing in Hong Kong-listed securities for the first time under a government pilot programme.
Its branch in the northern port city of Tianjin has been designated the initial gateway for the programme, which will be expanded nationwide and is expected to prop up Chinese stocks listed in Hong Kong over the longer term

Lenovo Sets Up Regional Operations Centre in KL

KUALA LUMPUR, Aug 23 (Bernama) -- Personal computer developer and manufacturer, Lenovo has set up a central operations hub in Kuala Lumpur to enhance its regional operational efficiency and customer services."Malaysia is the best location for the operation hub because it is close to Lenovo's regional headquarters in Singapore, and has a large pool of skilled talents along with strong growth potential in the market," its Asia Pacific president and group senior vice president, David Miller said."This latest Lenovo centre will provide the company with economies of scale as well as increase Lenovo's operational efficiency and cost effectiveness," he said in a statement today.To achieve this, he said Lenovo will double its staff.The company has increased its footprint in Malaysia through two key pillars, its brand-building efforts as well as a growing retailer base.Lenovo has made its presence felt by leveraging its sponsorship of the Williams Formula 1 team to reach out to consumers through promotional campaigns and participating in the local PC Fairs.

Asean FDI flows Up 9% to US$15 Billion in 1Q

MANILA, Aug 23 (Bernama) -- Asean saw a foreign direct investment (FDI) flow of US$15 billion (US$1=RM3.48) in the first quarter of this year, up by nine percent from US$13.7 billion in the same period last year, signalling that the regional bloc remains a favourite investment destination.The region attracted US$52.4 billion of FDI last year, a 28 percent increase year-on-year from US$41 billion previously.The major sources of FDI into Asean in 2006 were Japan, Britain, the United States, the Netherlands and Germany, according to a statement issued after the Asean Investment Area (AIA) Council met here today.It said manufacturing, financial intermediation and related services including insurance, telecommunications, trade/commerce and services were the top recipients of the FDI in 2006.The council noted the remarkable growth in 2006 FDI in the financial intermediation and related services sector, which increased three-fold to US$12.4 billion from US$4.4 billion in 2005.The statement said intra-Asean FDI grew by 66 percent to US$6.2 billion last year from US$3.8 billion a year before and accounted for over 10 percent of the total FDI flow into Asean.The AIA Council met for the 10th time today, in conjunction with the 39th Asean Economic Ministers (AEM) meeting and related meetings here starting tomorrow to review the developments of AIA for the past year.Also discussed at the meeting, which was chaired by Philippines Trade and Industry Secretary Peter Favila, was policy options in attracting more FDI into Asean.

International Oil And Gas Training Centre Proposed In Miri

MIRI (Sarawak), Aug 23 (Bernama) -- Sarawak's Assistant Minister of Infrastructure Development and Communications Lee Kim Shin has proposed an international oil and gas training centre to be set up here in line with the city's long history of involvement in the industry.He said with more than 100 years of experience in the industry, it was apt for a training centre of international stature to be set up here to continue contributing towards producing a skilled oil and gas workforce."I'm putting this idea across and see how we could make this idea materialised to mark Miri as the home of oil and gas industry in Malaysia," he told a press conference after witnessing a memorandum of understanding signing ceremony between Institut Latihan Perindustrian (ILP) Miri and Miri Small Industries Association near Kuala Baram here today.Lee said the competency of workers trained by several private companies here all these while had been proven internationally when majority of them gained employment in the industry in countries around the world.The individual training centres here and the related institutions around the country could pool their resources to form the proposed international training centre that would also train workers from overseas, he said.Lee said oil giant company Shell which has been involved in the exploration and production of oil and gas here for the last century together with Petronas should also be involved to share knowledge and know-how.He said the establishment of a specialised training centre would not duplicate the training provided by other existing training institutions as the current numbers of centres were not yet sufficient to meet the demand of skilled workforce for the industry.Lee, who is also the ILP Miri Advisory Panel chairman, said training experts from other institutions could also be brought in to contribute their expertise.Speaking at the signing ceremony earlier, Lee said skilled training centres should now give attention to upgrade the knowledge and skill of the existing workforce.He said majority of those in the skilled work sector were now depending entirely on their past experiences of solving technical problems and some of these experiences would not be relevant, especially with the changes in technology that resulted in the introduction of more electronic and computerised machinery.

Economy Able To Withstand External Financial Shocks

CYBERJAYA, Aug 23 (Bernama) -- The government is confident that country's economy is able to withstand any external financial shocks, including the fallout from the US credit turmoil, as local fundamentals remain strong, Second Finance Minister Nor Mohamed Yakcop said today.He said the policy makers also have the flexibility to manage the economy in the context of changing circumstances."We have shown through periods in our 50 years that we have always had the flexibility and creativity to manage and overcome any crisis," Nor Mohamed said."So if there some issues or problems in the external environment because of the subprime concern, we are very confident based on our track record over many decades in the 80s and 90s that we will be able to overcome that," he told reporters after witnessing the signing of an agreement between the Inland Revenue Board and Tujuan Gemilang Sdn Bhd here.According to Nor Mohamed, the country's economy has enough diversification and flexibility to withstand any temporary downturn.The minister said this in response to a question on whether the Malaysian economy was affected by the problems in the US subprime market that had caused worldwide concern that the US, and eventually the global, economy would slow down."We are not sure what is happening on Wall Street will have any effect on the main street and our exports are for the main street, not for Wall Street," he said.He added that the current sloppy stock market in the United States was just a correction of a bull market and not the beginning of a bear market.Nor Mohamed said the fundamentals of the US economy at this point of time were not affected by Wall Street, and the main street was still okay."There is no evidence to show that the US economic fundamentals have changed as a result of the subprime crisis," he said.Responding to another question, Nor Mohamed said no decision has been made on the shareholding structure of Peninsular Metro-Works Sdn Bhd, the concessionaire of the Penang Outer Ring Road (PORR) project."There is no final decision yet on the structure of the company undertaking the project. We have not decided yet," he said.There has been speculation that Malaysian Resources Corporation Bhd (MRCB) may not be participating in the project.

Asean Energy Ministers To Sign Pact On Asean Power Grid

SINGAPORE, Aug 23 (Bernama) -- Asean energy ministers and their regional counterparts gathered in Singapore today for three energy related meetings -- the 25th Asean Ministers on Energy Meeting (AMEM), the 4th Asean+3 Ministers on Energy Meeting (AMEM+3) and the first ever East Asian Summit Energy Ministers Meeting (EAS EMM).The meeting, held consecutively throughout the day today, is chaired by Singapore's Minister of State for Trade and Industry, S. Iswaran.Among the most important highlights of this year's AMEM, themed "Energising Asean to Power a Dynamic Asia", is the signing of an memorandum of understanding (MoU) on the Asean Power Grid.Singapore's Deputy Prime Minister Prof S. Jayakumar, who opened the meeting today, described the MoU as an important step for the region in realising vision to develop a fully integrated Asean energy market."While the development of a fully integrated Asean energy market is a still distant goal and will be a very long process, we have started to move in the right direction. The MoU on the Asean Power Grid provides the essential framework for us to bring the project forward," he said.At AMEM+3, the ministers will consider the extensive work programme under the meeting's cooperation forums while at EAS EMM, they will consider the recommendations from the EAS Energy Cooperation Task Force, covering energy efficiency and conservation, energy market integration, and biofuels for transport and other uses.Jayakumar also spoke on the importance of having competitively-priced and reliable energy supplies in Asean."Asia presently accounts for, and will continue to account for, a large proportion of the increase in energy demand in the years to come. Reliable, affordable supplies are essential for Asia's continued growth," he said."Asean is no exception. As one of the world's fastest growing regions, Asean would require increasing energy supplies to fuel its rapid pace of economic expansion," he added.Jayakumar spelled out four key energy priorities for Asean, namely improving energy efficiency, development of competitive regional energy markets, investing in energy research and development (R&D), and promoting a clean environment."Using energy more efficiently can reduce dependence on imports and enhance energy security, while at the same time, cutting down on emissions," he said.Being a region endowed with rich energy resources, and located in a well-defined geographical region, there was also much scope for increasing energy trade and investments, Jayakumar said.On energy R&D, he said: "Research into more efficient use of energy and new technologies, such as clean coal, solar power, and sustainable biofuels, will allow us to mitigate carbon dioxide emissions, as well as contribute to supply security".Asean consists of 10 Southeast Asian nations while the Asean+3 comprises the 10 Asean countries plus China, Japan and South Korea. The EAS, on the other hand, comprised Asean+3 together with Australia, India and New Zealand.Malaysia is represented at the meeting by Energy, Water and Communications Minister Datuk Seri Dr Lim Keng Yaik, who is accompanied by senior ministry officials.

Malaysia Will Assist Thailand In Islamic Banking

PENANG, Aug 22 (Bernama) -- Malaysia is ready to provide technical assistance in setting up an Islamic bank in Thailand, Datuk Seri Abdullah Ahmad Badawi said today."Malaysia will introduce Islamic banking in southern Thailand and Bangkok," the prime minister told reporters after the annual consultation between Malaysia and Thailand here.He said the effort would begin with the development of the Islamic windows in the existing banks."And this of course depends on how the government responds to the situation in southern Thailand. I understand that they have some kind of licence to set up an Islamic bank but that is not a problem," he said.Abdullah and his Thai counterpart, Surayud Chulanont, had an hour-long meeting.Abdullah said many areas of cooperation could be developed between the two countries, including economic and investment as well as education."I'm very happy with the outcome of yesterday's meeting and the annual consultation today," he said, adding that the meetings were centred on deepening bilateral relations between Malaysia and Thailand.Meanwhile, Surayud, told the joint press conference that there would be further discussions on the cooperation in Islamic banking in the near future."We will have discussions between banks of Thailand and Malaysia in the very near future," he said.There should not be any problem in establishing the Islamic Bank in Thailand, he added."Thanks to Abdullah for his keen interest in providing everything that we would like to do in the future. This is the most important way of working closely together in the next 50 years," he said.

Oil Refinery In Perak?

IPOH, Aug 22 (Bernama) -- A multinational American company keen to build a oil refinery in Perak has been offered a site in Tanjung Piandang, near Parit Buntar, to build the plant.The company which received the approval from the Ministry of International Trade and Industry to build the plant had originally proposed to build the RM15 billion plant in a 400-hectare site in Kuala Gula near Taiping.Menteri Besar Perak Datuk Seri Tajol Rosli Ghazali however said an Environment Impact Assessment had found that the original site proposed for the plant was not suitable as it was close to a bird sanctuary there."Because of this, the state government has offered an alternative site in Tanjung Piandang to the company," he said."Discussions are still ongoing," he told reporters after the first day of the Perak State Legislative Council meeting here today.A total of 320 hectares of land in Tanjung Piandang has been offered by the state government for building the plant.The land in Kuala Gula meanwhile will be developed as a research and development centre as well as a residential area for the staff of the multinational company.Tajol Rosli did not disclose the name of the company. He, however, said that if the project takes off, it will provide employment opportunities to the people in northern Perak and the surrounding areas.

PM Calls For Increased Malaysia-Thailand Trade, Investment

KUALA LUMPUR, Aug 21 (Bernama) -- Malaysia and Thailand must make greater efforts to increase trade and investment between them, Prime Minister Datuk Seri Abdullah Ahmad Badawi said tonight.He pointed out that while Malaysia and Thailand were important partners in trade and investment but both countries traded and invested more in other countries."An enhancement of our bilateral trade and investment relations will not only be mutually beneficial but will also bring our two countries closer to each other," he said when speaking at a dinner in honour of visiting Thailand Prime Minister Surayud Chulanont at the Petroleum Club in the Petronas Twin Towers.Present were Abdullah's wife Datin Seri Jeanne Abdullah and Surayud's wife Khunying Chitravadee and the Thai delegation comprising cabinet ministers.Abdullah also said Malaysia would continue working closely with Thailand to enhance the significance of Asean for the good of the region.He said Malaysia would cooperate with Thailand in ensuring peace and security in the wider East Asia region and the world.The prime minister also said Malaysia was keenly aware of the important constitutional developments taking place in Thailand."As your friend and neighbour, we wish Thailand full success in carrying out the reforms it wishes to introduce for the good of the people of Thailand," he said.Abdullah also said he looked forward to receiving both Surayud and his wife again at the end of the month to join in Malaysia's 50th independence anniversary celebrations."In addition, we shall also be celebrating 50 years of diplomatic relations between Malaysia and Thailand," he said.Surayud, in his speech, congratulated Malaysia for its achievements in the past five decades."Even the sky is not the limit for Malaysia," he said, referring to Malaysia's plans to send an astronaut to the outerspace this year.Surayud also said he believed the Third Annual Consultation would continue to enhance bilateral ties between Thailand and Malaysia for another 50 years.Earlier, Surayud had an audience with Yang di-Pertuan Agong Tuanku Mizan Zainal Abidin and witnessed a signing ceremony between Malaysian and Thailand education ministers for cooperation in education.Surayud, here on a three-day visit to Malaysia from yesterday, will meet Abdullah in Penang tomorrow for the annual consultation.The two leaders will discuss issues of mutual interests to enhance bilateral ties as well as confidence-building measures in southern Thailand which have been agreed to by the two leaders.This is Surayud's third visit to Malaysia since he took office as Thailand Prime Minister in October last year.

Indications Of Hydrocarbon At Ranhill's Oil Block In Indonesia

KUALA LUMPUR, Aug 21 (Bernama) -- Ranhill Bhd today announced there are strong indications of existing hydrocarbon encountered at its Pasundan exploration well in the Citarum block in West Java, Indonesia.The drilling which started in mid-May this year has progressed to 8,620 feet, the company said in a statement.Ranhill said currently, no estimate on the volume and quality of oil in place in the Baturaja limestone formation was available as the production test would be performed once the well was completed."Baturaja formation is quite thick, in excess of 2,500 feet in this well and the formation is a good reservoir based on the data from the nearby oil field," the company said.Ranhill Energy Sdn Bhd, through its 60 percent equity interest in PT Bumi Parahyangan Ranhill Energia Citarum Pte Ltd, won the Citarum block through a highly competitive bid.

IOI Corp Reports Pre-Tax Profit Up 73% At RM1.991 Billion

KUALA LUMPUR, Aug 21 (Bernama) -- Increased volume from the resource-based manufacturing segment and higher palm oil prices pushed up IOI Corporation Bhd's pre-tax profit by 73 percent to RM1.991 billion for the financial year ended June 30, 2007, compared with RM1.152 billion in the previous year.The group's turnover increased to RM8.952 billion from RM6.109 billion previously."Overall, the group achieved record net earnings of RM1,482.1 million for 2007, a 79 percent increase over the RM829.0 million recorded last year," it said in a statement today.Plantation earnings for the current year was four percent higher than same period last year with crude palm oil (CPO) price averaging 27 percent higher at RM1,759 per metric tonne from RM1,386 per metric tonne while fresh fruit bunches production was at around the previous year's level of 3,694,535 metric tonnes.The resource-based manufacturing segment achieved a multi-fold increase in operating profit to RM405.4 million compared to RM128.3 million previously with good performances from all three sub-segments, IOI Corp said.The property business also achieved record profit level as well, up by 62 percent in overall segment results at RM598.4 million as compared to RM368.3 million for the previous year, the group said.Apart from a 20 percent increase in the property development operating profit from RM331.3 million to RM397.2 million, the property investment sub-segment profit rose from RM37 million to RM201.2 million after inclusion of a gain of RM160.7 million as a result of restating the investment properties at fair value as required by the reporting standards.Barring unforeseen circumstances, all business segments are expected to improve in performance for the financial year ending June 30, 2008, according to IOI Corp."Therefore, the group's result for the current financial year is expected to be good," it said.

Bernanke's `Rookie Mistake' Forces Fed to Shift Focus to Market

Aug. 20 (Bloomberg) -- Federal Reserve policy makers, who declared that inflation was their paramount challenge just two weeks ago, have been forced to make financial-market stability the trigger for changes in interest rates.
By lowering the discount rate and issuing a statement conceding threats to the economy, Federal Open Market Committee members effectively ripped up the economic-outlook statement from their Aug. 7 meeting. Some economists describe the about- face, coming after months of assurances that the subprime- mortgage rout was contained, as Chairman Ben S. Bernanke's first serious error since taking office last year.
``It was a rookie mistake,'' said Kenneth Thomas, a finance professor at the University of Pennsylvania's Wharton School in Philadelphia. The Fed ``underestimated liquidity needs'' of investors and the fallout from the housing recession, he said, adding, ``This demonstrates the difference between book-smart and street-smart.''
Bernanke, a former chairman of the economics department at Princeton University, has elevated the role of forecasts in Fed policy rather than amassing clues from dozens of market indicators as predecessor Alan Greenspan did. The Fed forecasts showed that ``moderate'' growth would continue, and that inflation remained the biggest danger. The credit collapse has undermined that stance, and Bernanke may cut the benchmark interest rate by at least a quarter-point at or before the Sept. 18 FOMC meeting, analysts say.
Tough to Model
``Sometimes, the dynamics change very, very quickly,'' said former Fed governor Laurence Meyer, who voted for the three reductions in 1998 after currencies in Asia, Russia and Latin America tumbled. Bernanke's shift ``tells us how difficult it is to translate financial turbulence into the macroeconomic forecast.''
The Fed on Aug. 17 lowered its discount rate -- what it charges banks for direct loans -- by 0.5 percentage point to 5.75 percent, in an effort to increase liquidity in longer-term loans and bonds.
The initial request for the move came from Fed district banks in New York and San Francisco. They are led respectively by Timothy Geithner and Janet Yellen, both former Clinton administration officials who dealt with the 1997-1998 currency crises. The Fed's Board of Governors in Washington is dominated by academics.
Meyer's Call
Meyer, vice chairman of Macroeconomic Advisors LLC in Washington, recommended prior to the Aug. 7 FOMC meeting that policy makers cease describing inflation as the biggest risk. By saying the risks to growth and inflation were roughly equal, the central bank would have given itself room to maneuver if markets -- already weakening -- continued to slide.
The committee said in its statement three days ago that ``the downside risks to growth have increased appreciably'' because of the tumult in markets. Officials abandoned the prediction of a ``moderate'' expansion, and inflation wasn't mentioned.
While leaving the main rate at 5.25 percent, the panel said it is ``prepared to act as needed to mitigate the adverse effects on the economy.''
Stocks rallied after the announcement, but credit markets remained unsettled. The Standard & Poor's 500 Index climbed 2.5 percent, the biggest rally in four years. By contrast, asset- backed commercial paper yields jumped the most since the Sept. 11, 2001, terrorist attacks. Top-rated paper maturing Aug. 20 yielded 5.99 percent late on Aug. 17, up 39 basis points in a day. A basis point is 0.01 percentage point.
`Bleeding Into the Economy'
``The Fed has an easing bias, but it is not an easing bias dictated strictly by economic conditions,'' said Stephen Stanley, chief economist at RBS Greenwich Capital Markets in Greenwich, Connecticut. ``This is a financial-market issue, which is then bleeding into the economy.''
Last week's policy shift notwithstanding, Bernanke's moves to resolve the credit crunch so far have been restrained. Even then, and unlike the Greenspan era, it was the Fed doing the talking, not any one individual.
The Fed pumped $38 billion into the banking system on Aug. 10 to free up financing in short-term credit markets, and issued a six-line statement. The injection was the Fed's biggest since the meltdown began. By contrast, the European Central Bank added $130 billion in temporary reserves a day earlier. ECB President Jean-Claude Trichet followed up with media interviews designed to reassure investors.
The Bernanke Fed
``We're getting a nice further look at the new Bernanke Fed,'' said Ethan Harris, chief U.S. economist at Lehman Brothers Holdings Inc. in New York. ``He definitely wants to use the committee and these more formal directives,'' as opposed to Greenspan's preference for speeches laden with ``code words.''
The reduction in the discount rate, which is used less than the federal funds rate as a policy-making tool, wasn't directed at the broad economy so much as at trying to ease gridlock in credit markets. The Fed said it would accept everything from home-equity loans to municipal bonds as collateral for discount- window loans up to 30 days.
The decision to keep the benchmark overnight lending rate unchanged -- for now -- may be a sign that the central bank is still wary of bailing out bad bets by financial institutions and investors. St. Louis Fed President William Poole said in an interview on Aug. 15 that only a ``calamity'' would justify a rate cut between scheduled FOMC meetings.
``They knew what they were doing'' by maintaining the anti- inflation bias at their Aug. 7 meeting, said former Dallas Fed President Robert McTeer. ``I do not agree with it, but I think they were trying very hard not to have a Bernanke put. They were hard-pressed to keep that out of it. It became unrealistic.''
`Greenspan Put'
Traders and economists use the term ``Greenspan put'' to describe the priority the former chairman placed on financial- market stability. A put option provides the right, though not the obligation, to sell a security, currency or commodity within a set period.
Greenspan provided ample liquidity after the 1987 stock market crash, and he was one of the architects who arranged a financial backstop for Mexico after the 1994 peso devaluation. In 1998, the Fed also helped oversee the rescue of failed hedge fund Long Term Capital Management, and cut interest rates 75 basis points in three separate moves to cushion the blow of global financial turmoil.
Former Fed officials say it's difficult for central bankers to judge when they should abandon their economic outlook, often arrived at through months of internal debate and calculation.
Fed Players
Bernanke, 53, is an expert in inflation-targeting and has spent much of his career in academia. He is flanked at the Washington-based Board of Governors by Randall Kroszner, a former University of Chicago Business School professor, and Frederic Mishkin, a monetary policy researcher and professor from the Graduate School of Business at Columbia University in New York.
Vice Chairman Donald Kohn, formerly the Fed's director of the Division of Monetary Affairs from 1987 to 2001, is the only governor with high-level experience in financial-crisis management. Kohn, 64, joined a conference call Geithner convened with bankers on Aug. 17 to persuade them to take advantage of the lower discount rate.
Among executives of the district banks, Geithner, 46, has the most extensive background in responding to upheavals. During the Clinton years, he was an aide to Robert Rubin and Lawrence Summers, who both served as Treasury secretary. In that role, Geithner helped broker emergency loans for Thailand, Indonesia, South Korea, Russia and Brazil when their currencies sagged. While he was at the Treasury, the U.S. participated in interventions to strengthen the yen in 1998, and the euro in 2000.
`Depression Buff'
``It is a team that is new to the challenge, but it is a pretty smart group,'' said Harris. Bernanke ``really studied for the job. He is familiar with the history of the Fed, the policy errors, and he is a Great Depression buff.'' Bernanke contributed to Depression research with a 1999 paper co-authored with Mark Gertler and Simon Gilchrist on how financial markets can worsen economic downturns.
With Friday's action, Bernanke and his colleagues have ``tip-toed in'' and are ``trying to strike the right balance between doing nothing and riding to the rescue,'' said Gary Schlossberg, senior economist at Wells Fargo Capital Management in San Francisco, which oversees $200 billion in assets. ``They've left the door open to a full-blown easing of monetary policy. The results are mixed so far, and early returns suggest we're not out of the woods yet.''

Govt Confident Of 3.5% Growth For Construction Sector Under 9MP

KUALA LUMPUR, Aug 20 (Bernama) -- The government is confident of achieving the 3.5 percent growth target set for the construction sector under the Ninth Malaysia Plan (9MP) with the implementation of various projects under the plan.Works Minister Datuk Seri S. Samy Vellu said the implementation of economic development corridors would further boost growth and drive the business momentum and the industry in the future."The implementation of projects under regional development initiatives is set to boost construction even further and I believe the construction sector is gearing itself to secure business opportunities from the various high-impact projects under the initiatives," he said at the Malaysian Construction Sector Review 2006/2007 And Outlook seminar organised by the Construction Industry Development Board Malaysia (CIDB) here Monday.His speech was delivered by Works Deputy Minister Datuk Ir Mohd Zin Mohamed.Samy Vellu said the government has embarked on yet another major development initiative destined to tip the scale for construction industry players to drive the momentum of their businesses and the industry.He said the Iskandar Development Region (IDR) in Johor stood to provide opportunities for foreign investments in the region of RM38.70 billion over a period of 15 years."I see the IDR's potential in helping to boost Malaysia's current position as one of the countries with the highest foreign direct investments in the region," he said.On Malaysian construction companies overseas, Samy Vellu said the companies todate have secured a potential of 383 projects worth RM58 billion.The projects are spread out in 37 countries including India, Pakistan, Kenya and the Middle East.In 2005 and 2006, Malaysian contractors clinched overseas jobs worth RM28.6 billion including in China, India, the Middle East, Sudan and Asean member countries.This more than doubled the average value of overseas construction projects at an estimated RM1.55 billion secured in the preceding years of 1997 and 2001, he said.This year, Malaysian-led firms have acquired a total of RM4 billion to RM5 billion in project revenue from overseas clients, he said.There are also talks on designs for a new township in Kerala, a light rail transit system and two highways in Pakistan, infrastructure development in Kenya and a township similar to Putrajaya in Syria, the minister added.

Philips Malaysia To Spur Medical Tourism In NCER

KUALA LUMPUR, Aug 16 (Bernama) -- Philips Malaysia sees huge potential in the Northern Corridor Economic Region (NCER) in terms of spurring medical tourism."There is huge potential whenever tourists come in. Wherever tourists are, facilities are available - that would be an ideal thing," its chairman and chief executive officer Dr Rajah Kumar told Bernama recently.The NCER masterplan, spanning more than 15 years, will see Langkawi and Jerejak islands turning into premium high-end tourist destinations that could cater as well to health tourism."Whether Langkawi or any other places up north, I see it as a huge potential for Philips," said Kumar."But it is a question of developing the healthcare industry faster so that the medical tourism can benefit."Philips has just signed an agreement for the installation of the Philips Achieva 3.0 Tesla Magnetic Resonance Imaging (MRI) system and Ambient Experience Suite at Subang Jaya Medical Centre (SJMC).The MRI system, costing from about RM10 million, is the first of its kind in Malaysia and second in Asia, and will be operational at SJMC in December.Commenting on the healthcare industry, Kumar said the RM1 billion industry is growing "very fast," at about six to eight percent a year."I think the future growth is going to come from the medical systems segment," he said, adding that the segment is contributing a "substantial portion" to Philips Malaysia.Philips ranks third in Malaysia's medical systems market and is growing at a double digit rate in the category, said Kumar.Philips Medical currently accounts for over 20 percent of the Philips Group turnover, up substantially from six percent over the past 10 years.Meanwhile, SJMC healthcare group chief executive officer Elaine Cheong said the healthcare provider company has plans to open branches in NCER."We see NCER as an opportunity for us to go to the north," she said without naming specific locations."There are a lot of opportunities for us up north. SJMC is on an expansion plan, so we will be expanding within Malaysia as well as in the Klang Valley itself."SJMC is a 390-bedded hospital with 89 specialist suites serving 1,600 patients a day. Its 14 operating theatres are equipped to handle a multiplicity of surgical procedures ranging from complex transplants to minimally invasive surgery.It recently installed Southeast Asia's first 64-slice PET/CT scanner, which is also Asia's fourth installation in the region.Cheong pointed out that Malaysia offers one of the lowest medical costs in the region together with "competent skills and world class facilities."

Singapore Raises Growth Forecast 7%-8%

SINGAPORE, Aug 8 (Bernama) -- Singapore has raised its growth forecast to between seven and eight per cent this year after registering a higher-than-expected growth of 7.6 per cent in the first half of this year.Prime Minister Lee Hsien Loong who revealed the figure in his National Day message, said that a total of 111,000 jobs have also been added during the period, which is the highest ever."Unemployment is very low, at 2.4 per cent. Workers are enjoying good wage increases and higher bonuses because businesses are doing well," he said in the message aired on national television this evening.Lee said: "Singapore is growing not just because of more investments or more workers. Our people are adapting and working smarter. We are organising ourselves more efficiently, and making better use of our resources."In short, we have increased our productivity. Our efforts to transform our economy are paying off. The global economy is continuing to change. If we keep on adapting and readapting to it, we can keep growing strongly for many more years".He said that Singaporeans had many things to cheer about but challenges remain, particularly a widening income gap."With globalisation, hundreds of millions of unskilled workers are joining the global economy. They are pushing down wages at the lower end. Rapidly changing technology is also making jobs more complex. People with skills and high ability are in growing demand, and being paid more," he said.Another reason for the widening gap is the island state's ageing population."Singaporeans are living longer than ever. We must help our elderly live comfortably by keeping medical care affordable, making our city barrier-free, and our public transport wheelchair friendly," he said.Nevertheless, Lee foresees favourable conditions ahead."It has been ten years since the Asian financial crisis. Asia has progressed, and become more developed and dynamic," he said.He said Singapore has many strengths to draw on, such as a clean and corruption-free society; disciplined and well-educated workers; a cohesive, multi-racial community and a capable and vigilant security forces.

IPI (June) Up 0.5% to 136.5

KUALA LUMPUR, Aug 8 (Bernama) -- The Industrial Production Index (IPI) for June rose marginally by 0.5 percent to 136.5 from 135.8 in the corresponding month of last year.In a statement here today, the Department of Statistics said the growth was attributed to the rise in electricity index, by 3.1 percent to 156.9; mining index, 1.1 percent to 111.6; and, manufacturing index, 0.2 percent to 143.0."The increase in the manufacturing sector was led by the higher indices registered by the refined petroleum products and basic chemicals groups," it said.The department said the June IPI was down 0.4 percent compared with May this year (137.0) due to lower indices registered in the electricity and mining sectors by 5.2 percent (May:165.5) and 4.2 percent (May:116.5) respectively.The manufacturing index, however, rose 1.2 percent (May:141.3), it said.The department said the IPI registered an increase of 1.5 percent (134.9) for the second quarter of 2007 compared with 132.9 a year ago.The mining index grew 4.7 percent to 112.9; electricity index rose 4.6 percent to 160.3 and manufacturing index up 0.4 percent to 140.0, it said.On quarter-to-quarter comparison, the IPI was up 4.0 percent to 131.0."The electricity and manufacturing sectors expanded by 5.5 percent and 3.6 percent respectively, while mining sector was virtually unchanged at 112.9," it said.The department said the IPI for the first six months of 2007 rose 0.9 percent to 132.9 compared with 131.7 in the same period a year ago."This expansion was in line with the positive change attained by all components."The electricity index rose 4.1 percent to 156.1, mining index up 1.3 percent to 112.9 and manufacturing index rose by 0.5 percent to 137.6," it said.

Credit and growth fears hit stocks, dollar, oil

LONDON (Reuters) - Fears of a global credit squeeze and jitters about U.S. economic strength swept across financial markets on Monday, shaking up stocks, knocking the dollar to a 15-year low and sending oil down more than $1.25 a barrel.
Wall Street, which took a beating on Friday, looked set to open higher but European and Japanese shares were down and emerging market shares slumped.
MSCI's emerging market share index lost around 1.6 percent.
Heightened concerns for economic growth knocked some commodities. with benchmark Brent crude oil down $1.28 a barrel at $73.47. At one point, Shanghai copper futures also lost 3 percent.
"People must accept that the market is headed towards a period of correction, and that it's going to take some time before we see a pickup," said Lim Chang-gue, a fund manager at Samsung Investment Trust Management in Seoul.
"A credit crunch is spreading fast, and once started, it won't be easy to reverse," he added.
Markets are being shaken by the prospect that the borrowing that drives the financial system will either become prohibitively expensive or dry up completely as a result of risk repricing This began with difficulties and losses in the U.S. subprime or risky mortgage business but has spread to other areas, including the mergers and acquisitions that have been a main driver of stocks markets. Several companies have delayed or withdrawn planned offerings of shares, bonds or loans.
There are also concerns about the stability of the financial sector.
Monday's ructions, for example, followed sharp losses on Wall Street on Friday after ratings agency Standard & Poor's warned that mortgage credit problems could hurt investment bank Bear Stearns' profits.
Bear Stearns, which was one of the first to be hit by the subprime upheaval, said it was weathering the storm but that credit markets were in their worst shape in two decades.
U.S. jobs data was weak and there was weaker growth in the U.S. service sector and there are concerns that a poor housing market will slow the economy's reacceleration.

Redha Gets RM125.8 Million Financing From Three Banks

BANGI, August 3 (Bernama) -- Bank Muamalat Malaysia Berhad, Bank Kerjasama Rakyat Malaysia Bhd and Bank Pembangunan Malaysia Bhd have extended a RM125.8 million financing to Redha Resources Sdn Bhd (RRSB).The loan is to help RRSB undertake the development and management of accommodation and student centre for Kolej Universiti Islam Antarabangsa (KUIS), according to a joint statement here Friday."The project, which is under build-operate-transfer concept, will be for the occupation of over 6,000 students upon completion."It is currently under construction and the first phase is expected to be completed by early next year while the second phase will be by end-2009," it said.The statement said with the expected growth in student population and the limited intake by public universities, the project would augur well for KUIS as it would be able to increase its student intake as well as provide comfortable accommodation facility."The accommodation and student centre would be operated and managed by RRSB for 33 years and then hand over to KUIS," it said.The three banks and RRSB signed the syndicated Islamic financing facility of RM87.4 million signed here today.In addition, RRSB and Bank Pembangunan signed the Bai' Inah facility of RM38.4 million.Bank Muamalat is the lead arranger for the financing exercise.Selangor Menteri Besar Datuk Seri Dr Mohamad Khir Toyo, who also the chairman of KUIS board of directors and rector of KUIS, Datuk Mohd Adanan Isman, witnessed the signing ceremony.

Berjaya lands RM12.2b deal in Vietnam

KUALA LUMPUR: Berjaya Land Bhd, an affiliate of Berjaya Group, has signed a RM12.2bil (US$3.5bil) agreement to build an 884-hectare international university in Ho Chi Minh City.
The Memorandum of Understanding (MoU) was signed on Wednesday between Berjaya Land and the management board of the Ho Chi Minh City northwestern urban area.

Vessels For RM126 Million for Scomi Marine's Indonesian Unit Buys

KUALA LUMPUR, August 1 (Bernama) -- Scomi Marine Bhd's Indonesia-based unit PT Rig Tenders Indonesia Tbk (PTRT) has ordered two accommodation vessels worth about RM126 million.The purchase is to expand the fleet size of the company which provides marine logistics services. PTRT currently owns and operates two accommodation barges, both under charter arrangement.In a statement today, Scomi Marine said the new vessels would double PTRT's capacity of accommodation barges."The two vessels will be built and operated under an Indonesian company, and both will fly the Indonesian flag in order to cater to the current Indonesian regulatory environment which favours local ship owners," it said.It said PTRT would obtain its shareholders approval as required by the Jakarta Stock Exchange due to the size of the contract.Scomi Marine said the acquisition amount forms part of the RM200 million it had budgeted for capital expenditure this year.It said the two new vessels, once delivered, would add to Scomi Marine group's current fleet of over 140 vessels which include utility vessels, anchor handling tugs, tugs, barges, accommodation barges and landing craft.The new vessels also fit in with Scomi Marine's vessel on-going renewal process and will allow for older vessels to be slated for disposal, it said.