GE Oil & Gas In Alliance With Sime Darby Industrial

KUALA LUMPUR, March 27 (Bernama) - GE Oil & Gas' PII Pipeline Solutions division has signed a pipeline integrity alliance with TPS, a subsidiary of Sime Darby Industrial Sdn Bhd (SDI) as part of GEs strategy to strengthen its pipeline integrity services in Southeast Asia.In a statement, GE said TPS/SDI will act as distributor for PII services in Malaysia, providing local inspection crew, project management and logistics.PII will continue to support TPS/SDI by supplying state-of-the-art inspection technology, data analysis and its pipeline integrity management expertise, it added.GEs PII Pipeline Solutions is a leading provider of pipeline inspection technology and integrity management services for the oil and gas industry.TPS/SDIs expertise lies in managing turnkey projects, including the financing, supply, maintenance and repair of vital components of the petroleum industry.

Tabung Haji Targets 50 Percent Muslim Depositors

KUALA LUMPUR, March 24 (Bernama) - The Pilgrims Fund Board (Tabung Haji) aims to have 50 per cent of Muslims in the country as its depositors compared with the current 35 per cent, Minister in the Prime Minister's Department Datuk Dr Ahmad Zahid Hamidi said.He said would use all his experience to help Tabung Haji achieve the target."About 4.2 million Muslims in thes country are Tabung Haji depositors. Agressive measures and actions will be taken to increase the number," he told reporters after visiting the Tabung Haji headquarters here.Earlier, Zahid, who is in charge of Islamic Affairs, met Tabung Haji senior officers and was briefed on the operations of the organisation.Ahmad Zahid also said that he would ensure that Tabung Haji continued to offer the best service and become the one and only national organisation for pilgrims.At the same time, he said, it would also continue to help the poor." Although it is not Tabung Haji's responsibility as there are other agencies and departments to help the poor, I think it is possible for Tabung Haji's profits to be shared with the poor," he said.Ahmad Zahid said, he was satisfied and impressed with the management of the organisation which showed an excellent performance and recorded a revenue of RM1.8 billion for 2007.

Bank Negara international reserves up RM8billion

PETALING JAYA: Bank Negara Malaysia’s international reserves rose RM9.06bil to RM393.21bil (US$119.08bil) as at March 14 from RM384.15bil on Feb 29.
The central bank said the RM393.21bil was sufficient to finance 9.8 months of retained imports and was 7.2 times the short-term external debt.
Economists said the increase in international reserves could be due to foreign portfolio funds shifting their money into the bond market from equities, especially early last week following political uncertainties and external factors.
They said these funds were awaiting the ringgit to strengthen against the US dollar.www.thestar.com.my

Ferrari Appoints Naza As Sole Importer For Malaysia

KUALA LUMPUR, March 21 (Bernama) -- Naza Italia Sdn Bhd, a unit of the Naza group of companies, was today appointed as the sole importer for Ferrari cars in Malaysia.The company is scheduled to begin operations early next month.Naza Italia, which signed an agreement with Ferrari today, is expected to launch a flagship showroom with service centre by the third quarter of this year.Its chief executive officer S. M. Faisal Tan Sri S.M. Nasimuddin said as Ferrari's representative, Naza Italia aimed to make a greater contribution to the brand image."Investment will include showrooms equipped with 4S -- sales, service, system and spare parts -- and Ferrari merchandise," said Faisal, who is also executive vice president of the Naza group."A substantial amount of the investment will be allocated for customer relationship management, sales and after-sales services, training, branding and marketing activities," he said at a media conference here.Naza Italia will be bringing to local customers the whole Ferrari line-up, ranging from the F430 range to the 599 GTB Fiorano and the flagship 612 Scaglietti, Faisal said."Our existing automotive business has enabled us to build significant relationship with the niche market which is demanding access to high quality automobiles," he said.Asked about target sales, Faisal said the luxury car market in Malaysia was experiencing strong growth, adding that there was always a strong demand for such niche market cars."Our mission is to provide an experience to the Malaysian market. We plan further enhancements with new additions, innovative facilities and services, all of which will significantly contribute to the success of Ferrari in Malaysia," he said.Commenting on the partnership, Ferrari's communication director, Asia Pacific, Matteo Bonciani, said the company started the relationship because Naza has proven to be the premier distributor in Malaysia.He said Ferrari sold 1,054 units in the Asia Pacific last year, adding that the company considered Malaysia as an important market.

Kencana Petroleum sees stronger marine business

LUMUT: Kencana Petroleum Bhd expects its marine engineering business, which includes rig fabrication, vessel operation and charter activities to contribute 20% to group turnover by 2011, executive chairman Datuk Mokhzani Mahathir said.
Other works in the segment include refurbishment and conversion of rigs and it is also expected to carry out drilling works and repair and maintenance in the near future.
Contribution from the marine side in the long term would hopefully also come from the charter of the tender-assisted drilling rig, Mokhzani said.
“That will stabilise our income,” he told reporters after handing over the Maari wellhead platform it co-built to OMV New Zealand Ltd.
The Kencana Mermaid1 tender-assisted rig is being built by the group's unit Kencana HL.
Mokhzani said to beef up the marine business, the group would source for support vessels over the longer term.
“We are looking at other small vessels like tug boats to assist in marine operations, costing around US$10mil,” he said.
He said the group had identified a few clients for the chartering of the rig.
“We need to get clients to ensure it goes to work as soon as it leaves here. We have identified a few clients but have not inked anything yet,” he said.
Kencana Petroleum is also ready to kick up its drilling works, but that would “come hand in hand with the tender rig which rolls out end of next year,” he said.
Going forward, he said the group planned to grow its business by entering smart partnerships as it was difficult to find assets and expert manpower.
“This is how we are going to build our businesses,” he said. -Bernama

Scomi consortium shortlisted for project

PENANG: The consortium comprising Scomi Engineering Bhd and Larsen & Toubro Ltd is one of the three shortlisted for the RM5bil monorail project in Mumbai, India.
The two others are Bombardier-Transportation India and Reliance Energy-Hitachi.
In a letter dated March 17, the Scomi-Larsen consortium was informed that it would receive a request for a proposal document soon.
Sources said the consortium would submit a proposal complete with financial and technical details to the Mumbai Metropolitan Region Development Authority by mid-May.
The Scomi-Larsen consortium was among seven international consortia that submitted pre-qualification bids, which closed on Jan 25, for the Mumbai project.
The others were Reliance Engineering-Siemens, Kalpataru Power Transmission Ltd-JMC-Intimin, Gammon India-Metrail Swiss and Videocon-Aerospace.
The 70km monorail project, stretching over four corridors in the city and suburbs, would be implemented on a build, operate and transfer basis for at least 30 years.
The estimated cost of building one kilometre of monorail track is RM85mil.
The monorail system, which is designed to accommodate some 10,000 passengers per hour during peak traffic, is expected to complement the existing railways in easing traffic congestion in the city, which is home to about 15 million people. www.thestar.com.my

Ho Wah Genting unit seeks to raise RM90m

COMMERCE Venture Magnesium (CVM) Sdn Bhd, a unit of Ho Wah Genting Bhd (HWGB), plans to raise some RM90 million from an initial public offering to fund working capital and expansion, its top official said.CVM, which makes magnesium ingots and mines for dolomite (a formation of limestone that contains magnesium), will be listed on the Hong Kong Stock Exchange's main board in the second quarter.Magnesium is used as a major component of die-casting alloys, which are used to make car parts and even computers.CVM is setting up a RM180 million magnesium smelting plant in Sg Siput, Perak, on 26ha owned by Perbadanan Kemajuan Negeri Perak (PKNP).
It has exclusive rights from PKNP's unit, Harta Perak Corp Sdn Bhd, to mine and extract dolomite from two limestone hills in Sg Siput for 20 years.PKNP holds 10 per cent of CVM. HWGB and Tsorng Shin Machinery (M) Sdn Bhd own 55 per cent and 10 per cent respectively."The plant, which will commence in December, will have an initial production capacity of 15,000 tonnes of magnesium metal a year, which will be doubled in 2010 to full capacity," HWGB chief executive officer and managing director William Teo said."We expect HWGB's net profit to double in 2009 as we can equity account the earnings from CVM when the plant rolls out the production," he added.CVM will earn revenue of US$60 million (about RM191 million) a year based on the current price of US$4,000 (RM12,720) a tonne. This will double in 2010 when the plant reaches its full capacity.It has five agreements with independent third parties from the UK, the US, South Korea, Japan and Singapore to sell its entire output.Teo did not rule out establishing a second plant in China, which produces more than 70 per cent of the world's total magnesium output.Global demand for magnesium metal is expected to increase to 900,000 tonnes a year in 2010 from 700,000 tonnes in 2006.CVM's magnesium plant in Sg Siput is the first of its kind in Southeast Asia and will make the company a leading exporter of the metal in the region.www.btimes.com.my

Dialog Consolidates Overseas Businesses Under Singapore Subsidiaries

KUALA LUMPUR, March 11 (Bernama) -Dialog Group Bhd has carried out an internal reorganisation exercise to consolidate its overseas businesses under its Singapore subsidiaries, Dialog Systems (Asia) Pte Ltd and Dialog Services Pte Ltd. The change is effective today.The exercise is for the purpose of consolidating and streamlining the operations of the overseas catalyst handling businesses and other overseas operations under Dialog Systems (Asia), the group said in a filing to Bursa Malaysia.It said the new group structure would facilitate the expansion of Dialogs business opportunities and customer base in the oil, gas and petrochemical industry globally, in particular the catalyst handling business in Singapore, Middle East, Europe, Australia and the US.The group said the exercise is not expected to have material effects on the earnings of Dialog for the current financial year ending June 30, 2008.However, it is expected to contribute positively to the long term future earnings of the group.

Khazanah sells stake in Parkson Retail

PAKA Capital Ltd and Khazanah Nasional Bhd are selling a stake worth as much as HK$578.4 million (US$74 million) in Parkson Retail Group Ltd, a Beijing-based department store chain.UBS AG, Deutsche Bank AG and CIMB Bhd are managing the sale of bonds exchangeable into 8 million Parkson shares for HK$70 to HK$72.30 per share, the banks said in e-mails to clients. Deutsche Bank is the global coordinator.Parkson’s shares more than doubled in 2007 as the company lured more shoppers to its store in China, the world’s fastest- growing major economy. The retailer, which has 41 stores in 26 Chinese cities, posted a 47 per cent gain in 2007 annual profit to 676 million yuan . - Bloomberg

RM52.5 Mln To Improve Water Supply In Penang

PENANG, March 5 (Bernama)Perbadanan Bekalan Air Pulau Pinang Sdn Bhd (PBAPP) is investing RM52.5 million to upgrade its operations at the Sungai Dua, Tasek Gelugor treatment plant -- Penang's largest water treatment plant.Penang Chief Minister and PBAPP chairman, Tan Sri Dr. Koh Tsu Koon said Package 8 of the Muda River Water Scheme Phase 4A will include the construction of a new, 23-million litre clear water tank and high-lift pumping station with 12 new pumps, as well as associated works.The project is scheduled for completion by 2009, he said at a ground-breaking ceremony for the upgrading of the plant. Also present at the function was second finance minister, Tan Sri Nor Mohamed Yakcop and PBAPP's general manager, Ir. Jaseni Maidinsa."The new clear water tanks will increase the contact and balancing time for water treatment and ensure better water quality," he said.The new high lift pumping station will also boost the PBAPP's standby pumping capacity to 80 percent of the total capacity of the Sungai Dua water treatment plant.The current maximum treated water capacity at the Sungai Dua plant is 885 million litres per day (MLD). Presently, the plant treats 735 MLD.Koh said plans were also underway to increase the maximum treated water capacity of the Sungai Dua plant to 1,000 MLD by 2012 to ensure sufficient treated water supply for the future.Besides this, Koh said PBAPP had invested about RM350 million from 2004 to 2007 for service improvements and to sustain 99 percent supply coverage in Penang."Today, it is a fact that Penang continues to enjoy good water supply at very reasonable rates of 22 sen per litre," he said.He also praised PBAPP for reducing the non revenue water to 17 percent, the lowest in the country from 20 percent previously.Going forward, Koh said the Mengkuang Dam will be expanded to increase its strategic water reserve by 148 percent within the next five years."We need to ensure that we have good water supply because we are stepping up to serve as the hub for the Northern Corridor Economic Region," he added.

Zelan's Unit Secures RM800 Mln Contract In UAE

KUALA LUMPUR, March 5 (Bernama) -- A Zelan Bhd wholly- owned subsidiary has been awarded a 925.3 million dirham (RM801.779 million) contract for package 2 of the Meena Plaza construction in Abu Dhabi, United Arab Emirates (UAE).In a statement, Zelan said Zelan Holdings (M) Sdn Bhd and its joint venture partner Al Ambia Sdn Bhd received the award from Meena Holdings and they have 30 months to complete the project.The project will not have material impact on the earnings for its financial year ending March 31, 2008 but is expected to contribute positively to future Group earnings, it said.This contract will further enhance Zelans participation in the construction and infrastructure development of the Gulf region, particularly in the UAE, it added.The Meena Plaza is the third building construction project for Zelan in the region.One is the Al-Reem Island project in Abu Dhabi in which it is in a consortium with IJM Construction Sdn Bhd, Sunway Builders Sdn Bhd and LFE Engineering Sdn Bhd.The other is the Sidra Tower project in Dubai.Zelan-Al Ambia is a 70:30 joint venture set up to undertake the mixed development project.Zelan, which has been leveraging successfully on its ability to work as a consortium partner to other international players, also has a significant presence in the infrastructure construction sector in the Gulf region.Its ongoing projects include two power and water desalination plants in Saudi Arabia.






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Abu Dhabi bank has nod for RHB stake

PETALING JAYA: Abu Dhabi Commercial Bank PJSC (ADCB), a Middle Eastern financial services group, has been given the go-ahead by the Finance Ministry to acquire a 25% stake in RHB Capital Bhd (RHB Cap) from the Employees Provident Fund (EPF).
This confirms yesterday’s StarBiz report that ADCB has received approval to acquire the stake. The report also said ADCB would pay RM7.20 to RM7.40 per RHB Cap share.
RHB Cap said in a statement yesterday that the ministry had “granted its approval for EPF to dispose of its 25% equity interest in RHB Cap to ADCB.”
The acquisition would see ADCB emerging as the second-largest shareholder in the financial services group after the EPF, which – with its disposal – would see its stake in the company come down to 57.23%. RHB Cap owns RHB Bank Bhd, the nation’s fourth-largest lender by assets.
RHB Cap has 2.15 billion shares issued as at Friday with a market capitalisation of RM12.38bil. It has banking operations in Brunei, Singapore and Thailand and over 280 retail-banking branches and an Islamic banking subsidiary, RHB Islamic Bank Bhd, which is South-East Asia’s sixth largest.
Reuters had reported last month that ADCB, which is 64.8%-owned by the Abu Dhabi government through the Abu Dhabi Investment Council, was looking to acquire the 25% stake in the company for US$3.88bil.
The EPF, through adviser Goldman Sachs, has been actively scouting for suitable buyers for part of its stake in RHB Cap, which has plans for expansion locally and abroad. It beat Kuwait Finance House, another Middle Eastern financial services group, to acquire the RHB Cap stake last March, but has to sell down its stake in the company to 35% by July to conform to local banking rules.
MIMB Investment Bank Bhd research head Pong Teng Siew said in a research note Friday that Islamic banking income growth boosted the financial services group’s results for the financial year ended Dec 31 (FY07).
“Islamic banking income growth at 39.1% year-on-year featured strongly in boosting FY07 results,” he said.
Pong said fourth-quarter earnings momentum had slowed with earnings up 40% year-on-year and FY07 earnings up 62.7%. “Balance sheet assets expanded just 1.8%,” he added.
Pong said notwithstanding the absence of a lending surge, improved profits were driven by earning a spread above large sums in new low-cost deposits (+31.8% year-on-year), cost control, a 19.1% reduction in loan losses/provisions and a 98% drop in minority interest on acquiring Khazanah Nasional Bhd’s 30% stake in RHB Bank.
“Management is not focusing on loans growth for now. Increasingly stiff competition is chipping away at lending margins, so securing low-cost deposits is seen as the preferred path to boosting lending margins with building fee income,” he said.
The announcement by RHB Cap comes on the heels of Hong Kong-based Primus Pacific Partners Ltd’s agreement to acquire a 20.2% stake in EON Capital Bhd, the parent of EON Bank Bhd, from DRB-HICOM Bhd for RM1.34bil, or RM9.55 a share, in early February. www.thestar.com.my

KNM to buy German engineer for RM1.7b

MALAYSIAN energy services firm KNM Group will buy German engineering firm Borsig BBetv for RM1.67 billion (US$522 million) as it looks to move up the value chain and attain economies of scale, KNM said today.Unlisted, Berlin-based Borsig specialises in component and process equipment and plant construction. It had pre-tax profit of 36.9 million euros (US$24.3 million) in the financial year to December 31, on consolidated turnover of 160.2 million euros, KNM said.Trade in shares of KNM, which makes process equipment for the energy and petrochemical industries, was halted today for the news. The stock last traded at RM6.10.“Our intention is to further grow the Borsig group by expanding its market reach and market share,” KNM managing director Lee Swee Eng said in a statement.KNM has a market value of about RM6.4 billion, and has manufacturing facilities in countries such as Australia, Brazil, Canada, China and Italy. - Reuters