CIMB Daybreak - 16 April 2015
KHEESAN (6203), FARMBES (9776), MITRA (9571), PESONA (8311), TM (4863), BINTAI (6998), REDTONE (0032), TROP (5401), MBSB (1171), THHEAVY (7206), MATRIX (5236), ECOWLD (8206), PETDAG (5681), AXIATA (6888), GAMUDA (5398),
Palm oil shipments drop 3% from 484,453 tons in March 1-15
April 16, 2015 10:42:00 am
Palm oil shipments drop 3% from 484,453 tons in March 1-15, according to Societe Generale de Surveillance. (Bloomberg)Source: CIMB Daybreak - 16 April 2015...
Malaysia cuts May crude palm oil export taxes to zero
April 16, 2015 10:41:00 am
Malaysia, the world's second-largest palm grower, will scrap its crude palm oil export tax for the month of May against a 4.5% imposed in April, a government circular showed on Tuesday. The rate was previously scrapped from September to December, with the step later extended to end-March. In April, a 4.5% tax was implemented based on a tax structure where a monthly reference price above RM2,250 will incur a duty. (Reuters)Source: CIMB Daybreak - 16 April 2015...
Cable car planned between Penang Island and mainland
April 16, 2015 10:41:00 am
A ‘Penang Sky Cab’ cable car system connecting Penang Sentral in Butterworth to Gat Lebuh Noordin in the island is expected to be completed in 2018. Penang Chief Minister Lim Guan Eng said the project was an initiative of the state government and Penang Sentral, and was in advanced exploratory stage at present. “It will provide an aerial link from the mainland to the island and decrease the dependence on automobiles. “The 3km link is expected to take around 15 minutes travel time. It will be able to cater to 1,000 passengers per hour per direction. ‘With the implementation, Penang Sentral will become a five-in-one travel hub offering from taxi, buses, train, ferry and Sky Cab services,” he said. (StarBiz)Source: CIMB Daybreak - 16 April 2015...
New substantial shareholder emerges in Khee San
April 16, 2015 10:41:00 am
Khee San Bhd, whose share has rallied in recent days, saw the emergence of Lim Pei Tiam @ Liam Ahat Kiat as a substantial shareholder. A filing with Bursa Malaysia on Wednesday showed Lim had bought 4.55m shares or 5.18% on Monday, April 13. Lim is an executive director of Komarkcorp Bhd which is involved in labelling solutions. The share price had surged from 48.4 sen on April 6 to 56 sen on April 13. London Biscuits is the single largest shareholder in Khee San with a 28.58% stake or 19.72m shares. (StarBiz)Source: CIMB Daybreak - 16 April 2015...
SC rejects Farm's Best takeover plan
April 16, 2015 10:39:00 am
The Securities Commission (SC) has rejected integrated poultry producer Farm’s Best Bhd’s application for a series of corporate proposals, which include a reverse takeover by a China poultry player.Farm’s Best said the regulator was of the opinion that the company, its directors and advisers had “failed to undertake a critical assessment of the information being reviewed and submitted, judging from the numerous inconsistencies, mistakes, omissions and poor quality disclosures contained in the application as well as in the responses to the SC.”SC also said the disclosed total ascribed value of the Lerfood securities to be received may not be realisable and may potentially be misleading for Farm’s Best shareholders. (Lerfood is an investment holding company incorporated as a special-purpose vehicle to undertake the acquisition of the Farm Best’s group and the vendors’ China-based poultry business). (StarBiz)Source: CIMB Daybreak - 16 April 2015...
Mitrajaya sets sights on disposing Optimax eye treatment franchise
April 16, 2015 10:39:00 am
Mitrajaya has decided to sell off its 51% stake in the local franchise holder for Optimax, a British laser eye correction chain, for RM5.1m. Optimax today has one of the largest networks in Malaysia for laser refractive surgery. Mitrajaya’s healthcare division, comprising Optimax, posted a pre-tax profit of RM790k last year. (StarBiz) Source: CIMB Daybreak - 16 April 2015...
Pesona Metro wins RM267mil construction contract in Cyberjaya
April 16, 2015 10:38:00 am
Pesona Metro Holdings Bhd has won a RM267m contract to build office and retail blocks in Cyberjaya. It received a letter of award from PBT Engineering Sdn Bhd, a subsidiary of Singapore-listed Tee International Ltd, to complete building works on a 17-storey office block, and two blocks of Menara Soho (30 and 35 storeys). The project has a duration of 29 months starting Apr 20. (StarBiz)Source: CIMB Daybreak - 16 April 2015...
Oil surges after lower than expected US inventory rise
April 16, 2015 10:38:00 am
Oil prices rallied and U.S. crude jumped nearly 6% to a 2015 peak after government data showed crude oil inventories in the United States rose less than expected last week. U.S. May crude rose $3.10 to settle at $56.4/barrel, highest of the year. (StarBiz)Source: CIMB Daybreak - 16 April 2015...
Price reductions in basic broadband packages
April 16, 2015 10:38:00 am
Fees for mobile internet broadband packages will drop an average 14% while basic fixed packages will be lowered by as much as 57%, said the Ministry of Communications and Multimedia Malaysia. In a statement yesterday, Minister Datuk Seri Ahmad Shabery Cheek said mobile broadband packages will be offered at RM25 per month and consumers who sign up for these will have a monthly data cap of 1GB and at least 3G high-speed packet access for both prepaid and post-paid services.The reduction works out to about 14% less than current prices. As for fixed services, Telekom Malaysia Bhd (TM) will soon be offering a basic broadband package at RM38 a month for 1Mbps of free data usage up to 1GB, which is 57% cheaper than the current RM88 for the basic package. The new mobile basic broadband packages will be available almost immediately while the fixed package by TM is expected to be available from mid-June. (Financial Daily)Source: CIMB Daybreak - 16 April 2015...
Bintai Kinden secures RM48m contract in Singapore
April 16, 2015 10:36:00 am
Bintai Kinden Corporation Bhd’s subsidiary has secured a S$17.7m (RM48m) maintenance contract from Singapore’s Land Transport Authority (LTA). It said on Wednesday its 69.82% owned Bintai Kindenko Pte Ltd received the contract to undertake the integrated maintenance of the LTA premises. The targeted date for the project to be completed is by April 29, 2018. (StarBiz)Source: CIMB Daybreak - 16 April 2015...
Redtone inks MoU with PT Sigma Cipta Caraka
April 16, 2015 10:33:00 am
Redtone International Bhd's 70% owned subsidiary Redtone Data Centre Sdn Bhd will enter into a memorandum of understanding with PT Sigma Cipta Caraka to explore business opportunities in Indonesia. The integrated telecommunications service provider said in its exchange filing yesterday the agreement will allow the company to offer managed information and communication technology value-added services and solutions for the Indonesian market where such services are seen to be increasing in demand in the country.These include exploring the possibility of jointly establishing a teleradiology exchange in Indonesia where it is expected to help Indonesian Hospitals to strengthen radiology service delivery and create cost savings in healthcare delivery. Redtone said the agreement is also in line with its strategy to build its presence across the South-East Asia. (Malaysian Reserve)Source: CIMB Daybreak - 16 April 2015...
Petronas: No plans to cut jobs, salaries
April 16, 2015 10:33:00 am
Petronas does not have any plans to either reduce its workforce or cut the salaries of its employees.President/CEO Datuk Wan Zulkiflee Wan Ariffin said the group was undertaking a group optimising exercise which would impact its service providers. This exercise would see a 20% reduction in the salaries of its service providers outsourced by Petronas. "They (service providers) provide us with professional services with their salaries ranging from more than RM20,000 up to even hundreds of thousands of ringgit," he said. (StarBiz)Source: CIMB Daybreak - 16 April 2015...
Malaysia Airlines first to roll out global flight tracking with SITA solution
April 16, 2015 10:31:00 am
SITA OnAir announced Malaysia Airlines will be the first carrier to implement its 'AIRCOM' FlightTracker global flight tracking service, with deployment during northern summer 2015. The system uses multiple sources of data that guarantees tracking intervals of at least every 15 minutes for every flight. The airline has already conducted extensive testing of the technology, which uses existing equipment and re-purposes air traffic control data. A ground-based software upgrade allows airlines to follow aircraft positions and identify any unexpected deviations or gaps in position reports. The system was launched in fast track mode in Jun 2014. (SITA press release)Source: CIMB Daybreak - 16 April 2015...
MAS is the 16th most reliable airline in the world, says travel website
April 16, 2015 10:31:00 am
Malaysia Airlines (MAS) is the 16th most reliable airline in the world, according to a travel website, Wanderbet. This ranking was achieved "despite the recent tragic disappearance of a Malaysia Airlines plane." says Wanderbat. Three criteria were used in the ranking or reliability. One was performance, relating to the frequency of flights being on schedule, delayed or cancelled. Next was the cost of checking in baggage – the allowance of free bags on international flights and the charge for additional bags. Lastly, it was the average age of the fleet.On those counts, MAS delivered 74% of their flights on time, 0.7% below the average. Economy class passengers of MAS are allowed two bags on international flights. The third will only cost them about US$13, way below the US$124 that's the industry average. And the average age of MAS' fleet is 4.6 years, measured against the industry average of 10.6. In the listing of the top 22 most reliable airlines, Wanderbat placed Singapore Airlines at number 4. Topping the list is Qatar Airways with a perfect score of 100. (Malaysian Insider)Source: CIMB Daybreak - 16 April 2015...
Tropicana sells explosive manufacturing business for RM194.7m cash
April 16, 2015 10:30:00 am
Tropicana Corp is hiving off its explosive manufacturing business by selling its entire 73% stake in Tenaga Kimia Sdn Bhd for RM194.7m cash to Austin Powder Asia Pacific, a subsidiary of US-based Austin Powder Holdings Company. Tropicana expects to record a net gain of RM48.5m from this proposed transaction. With the asset sale, its potential net gearing could fall to about 0.3x. (BT)Source: CIMB Daybreak - 16 April 2015...
MBSB: Possible merger within this or next year
April 16, 2015 10:29:00 am
While keeping mum on speculation about a merger between Malaysia Building Society Bhd (MBSB) and Bank Islam Malaysia Bhd, MBSB president and chief executive officer Datuk Ahmad Zaini Othman said a merger with an Islamic financial institution is still on the cards, possibly within this or next year. Under the aborted three-way merger plan with CIMB Group Holdings Bhd and RHB Capital Bhd, MBSB would have been acquired by the two banks' Islamic banking operations to become a "mega" Islamic bank. At a press conference after the MBSB's annual general meeting yesterday, Ahmad Zaini reiterated the group's aspiration to be an Islamic financial institution and with that, the need for it to merge with an Islamic financial entity. (Financial Daily)Source: CIMB Daybreak - 16 April 2015...
Malaysia is raising US$2bn in the bond market
April 16, 2015 10:28:00 am
Malaysia is raising US$2bn (RM7.4bn) in the bond market as it seeks to defend the ringgit, Bloomberg reports. The ringgit – the region’s worst performing currency – has lost almost 15% in value against the dollar since June and Malaysia’s foreign reserves plunged to US$105bn at the end of March, a US$25bn drop from a year ago. Putrajaya had reportedly appointed HSBC Holdings, CIMB Group and Standard Chartered to arrange the sovereign sale, which might be finalised as soon as this week, the business news portal quoted sources as saying. (Malaysian Insider)Source: CIMB Daybreak - 16 April 2015...
Hong Leong Group ceases to be TH Heavy substantial shareholder
April 16, 2015 10:27:00 am
The Hong Leong Group has ceased to be a substantial shareholder of TH Heavy Engineering Bhd with the recent disposal of 38.8m shares. A filing with Bursa Malaysia showed GuoLine Capital Ltd had disposed of the 3.49% stake on April 14. After the disposal, its stake was reduced from 64.95m shares or 6.36% to 26.1m shares or 2.3%. (StarBiz)Source: CIMB Daybreak - 16 April 2015...
Matrix Concepts propose 1-for-6 bonus and free warrant on a 1-for-6 basis
April 16, 2015 10:26:00 am
Matrix Concepts Holdings Bhd has proposed a bonus issue (based on a one-for-six shares basis) and a free warrant on a one-for-six shares basis. Matrix Concepts said the corporate exercise would involve the issuance up to 77.8m new shares and up to 77.8m five-year warrants. (StarBiz)Source: CIMB Daybreak - 16 April 2015...
Eco World wins rights to develop 190ha site in Batu Kawan, Penang
April 16, 2015 10:26:00 am
Eco World Development Group has won the rights to develop the 190ha site in Batu Kawan on mainland Penang. The property group was notified last week of the Penang government's decision to award the tender. Eco World is expected to pay RM1.2bn for the land. As the winning bidder, Eco World will have to develop a golf course on 60ha of the total 190ha. The company is expected to sign a letter of award next week.The remaining land will see a mixed development project called Eco-Marina, which will include a waterfront city overlooking Penang island. On the drawing board is said to be the proposed development of a mini mall comprising shops and offices in line with the company's "Eco" theme that emphasises sustainability and liveability. (BT)Source: CIMB Daybreak - 16 April 2015...
Petronas Dagangan will offer RON97 petrol by Sep
April 16, 2015 10:26:00 am
Petronas Dagangan Bhd's (PetDag) CEO Mohd Ibrahimnuddin Mohd Yunus said PetDag will offer RON97 that complies with Euro-4M standard by September this year. "We have not set the selling price yet," he said. Currently, RON97, RON95 and diesel supplied by Petdag is complying with with Euro-M2. (StarBiz)Source: CIMB Daybreak - 16 April 2015...
Dian Siswarini becomes Axiata group's first female CEO
April 16, 2015 10:26:00 am
Axiata Group Bhd has promoted Dian Siswarini from deputy chief executive officer to president and director of PT XL Axiata Tbk (XL). She is the first female CEO in the Axiata group. Axiata said in a statement that with close to 20 years of experience in the telecommunications industry, in both the technology and operations side, Dian would play a crucial role in the next phase of XL’s growth to face the future challenges and changing dynamics of the telecommunications industry. (StarBiz)Source: CIMB Daybreak - 16 April 2015...
MARC accords AAA to Sime Darby's RM4.5b Islamic notes
April 16, 2015 10:24:00 am
MARC has affirmed its AAA ratings on Sime Darby's Islamic MTN programme with a stable outlook. The rating agency said that the AAA rating were for Sime's RM4.5bn Islamic MTN programme and RM500m Islamic commercial papers with a combined limit of RM4.5bn. "The stable outlook reflects MARC's expectations that Sime Darby's credit metrics will remain commensurate with its current ratings over the near term. Pressure on the ratings would emerge if the group were to undertake further sizeable debt-funded acquisitions or if persistent weakness in its key businesses erode its credit profile," said the rating agency. (StarBiz)Source: CIMB Daybreak - 16 April 2015...
Penang is set to get its maiden LRT project, 17.5km elevated stretch
April 16, 2015 10:23:00 am
Penang is set to get its maiden LRT project – a 17.5km elevated stretch linking Komtar with the Penang International Airport. With construction slated to begin next year, the RM4.5bn project is part of a package of solutions for an island that has long been choking on its traffic. The LRT project – expected to be awarded in June – will mark the realisation of the long-awaited implementation of the RM27bn Penang Transport Master Plan (PTMP), which also includes a 25km expressway linking Bayan Lepas and Tanjung Bungah. According to reliable sources, Gamuda Bhd, IJM Corp Bhd, and a Chinese company have been shortlisted to undertake the projects, the bulk of which would be funded through land reclamation rights in the state.The LRT and new expressway will be built using the Project Delivery Partner (PDP) concept, where the PDP will step in to resolve problems should parts of the construction fail to meet construction criteria. In Penang’s case, should either one of the Malaysian companies get the award, it would have to partner with the Chinese company, especially in the construction of the LRT project. It would be likewise should the Chinese company win the contract. (StarBiz)This development marks the start of a pick up in the RM27bn Penang PTMP initiative, broadly in line with the mid 2015 target on the decision of the PDP winner. The value of the LRT project is in line with our estimate of RM4-5bn while the highway is likely to be worth less given the higher cost/km for rail jobs. Potential partnership with a Chinese contractor would make sense given the immediate working capital and funding needs, ahead of the payment-in-kind.Source: CIMB Daybreak - 16 April 2015...
CIMB Malaysian Economic News - 16 April 2015
April 16, 2015 10:22:00 am
Some unethical traders seeking excessive profits by charging the Goods and Services Tax (GST) together with the sales and service tax (SST) in a single purchase receipt are damaging the implementation of the GST, said Deputy Finance Minister Datuk Ahmad Maslan. He said he believed in the benefits of the GST system since studying it from 1986, but was unhappy that it was being manipulated by raising prices unreasonably. (Bernama)The Education Ministry will blacklist students and book shops found misusing the 1Malaysia Book Voucher (BB1M), the Dewan Negara was told. Its deputy minister Datuk Mary Yap Kain Ching said the ministry had distributed guidelines on issuing BB1M to all book shops and institutions of higher learning in the country. "The ministry has also monitored all the book shops and universities based on their record management. The students were also warned not to convert the voucher to cash and to use it only for the purchase of books," she said. (Bernama)A total of RM2.02bn was approved to finance 165 projects under the Green Technology Financing Scheme (GTFS) as of 31 Dec last year, said Energy, Green Technology and Water Deputy Minister, Datuk Seri Mahdzir Khalid. The government introduced the GTFS on 1 Jan 2010 with a RM3.5bn fund for five years to support green technology in Malaysia. (Bernama)Mobile service providers have agreed to slash the price of basic broadband Internet package to only RM25 a month for 1GB mobile data plan. The cheaper rate is expected to take effect in the next one or two months, announced Communication and Multimedia Minister Datuk Seri Ahmad Shabery Cheek yesterday. This, he said, was made possible following a series of discussions between the Government and Malaysian telcos.“It will now cost just RM25 a month for a basic mobile broadband package with a data cap of 1GB, running on 3G-HSPA network. So all service providers whose 1GB plan cost more than RM25 will now be reduced,” Ahmad Shabery said. (Star)Source: CIMB Daybreak - 16 April 2015...
KHEESAN (6203), FARMBES (9776), MITRA (9571), PESONA (8311), TM (4863), BINTAI (6998), REDTONE (0032), TROP (5401), MBSB (1171), THHEAVY (7206), MATRIX (5236), ECOWLD (8206), PETDAG (5681), AXIATA (6888), GAMUDA (5398),
April 16, 2015 10:42:00 am
Palm oil shipments drop 3% from 484,453 tons in March 1-15, according to Societe Generale de Surveillance. (Bloomberg)Source: CIMB Daybreak - 16 April 2015...
April 16, 2015 10:41:00 am
Malaysia, the world's second-largest palm grower, will scrap its crude palm oil export tax for the month of May against a 4.5% imposed in April, a government circular showed on Tuesday. The rate was previously scrapped from September to December, with the step later extended to end-March. In April, a 4.5% tax was implemented based on a tax structure where a monthly reference price above RM2,250 will incur a duty. (Reuters)Source: CIMB Daybreak - 16 April 2015...
April 16, 2015 10:41:00 am
A ‘Penang Sky Cab’ cable car system connecting Penang Sentral in Butterworth to Gat Lebuh Noordin in the island is expected to be completed in 2018. Penang Chief Minister Lim Guan Eng said the project was an initiative of the state government and Penang Sentral, and was in advanced exploratory stage at present. “It will provide an aerial link from the mainland to the island and decrease the dependence on automobiles. “The 3km link is expected to take around 15 minutes travel time. It will be able to cater to 1,000 passengers per hour per direction. ‘With the implementation, Penang Sentral will become a five-in-one travel hub offering from taxi, buses, train, ferry and Sky Cab services,” he said. (StarBiz)Source: CIMB Daybreak - 16 April 2015...
April 16, 2015 10:41:00 am
Khee San Bhd, whose share has rallied in recent days, saw the emergence of Lim Pei Tiam @ Liam Ahat Kiat as a substantial shareholder. A filing with Bursa Malaysia on Wednesday showed Lim had bought 4.55m shares or 5.18% on Monday, April 13. Lim is an executive director of Komarkcorp Bhd which is involved in labelling solutions. The share price had surged from 48.4 sen on April 6 to 56 sen on April 13. London Biscuits is the single largest shareholder in Khee San with a 28.58% stake or 19.72m shares. (StarBiz)Source: CIMB Daybreak - 16 April 2015...
April 16, 2015 10:39:00 am
The Securities Commission (SC) has rejected integrated poultry producer Farm’s Best Bhd’s application for a series of corporate proposals, which include a reverse takeover by a China poultry player.Farm’s Best said the regulator was of the opinion that the company, its directors and advisers had “failed to undertake a critical assessment of the information being reviewed and submitted, judging from the numerous inconsistencies, mistakes, omissions and poor quality disclosures contained in the application as well as in the responses to the SC.”SC also said the disclosed total ascribed value of the Lerfood securities to be received may not be realisable and may potentially be misleading for Farm’s Best shareholders. (Lerfood is an investment holding company incorporated as a special-purpose vehicle to undertake the acquisition of the Farm Best’s group and the vendors’ China-based poultry business). (StarBiz)Source: CIMB Daybreak - 16 April 2015...
April 16, 2015 10:39:00 am
Mitrajaya has decided to sell off its 51% stake in the local franchise holder for Optimax, a British laser eye correction chain, for RM5.1m. Optimax today has one of the largest networks in Malaysia for laser refractive surgery. Mitrajaya’s healthcare division, comprising Optimax, posted a pre-tax profit of RM790k last year. (StarBiz) Source: CIMB Daybreak - 16 April 2015...
April 16, 2015 10:38:00 am
Pesona Metro Holdings Bhd has won a RM267m contract to build office and retail blocks in Cyberjaya. It received a letter of award from PBT Engineering Sdn Bhd, a subsidiary of Singapore-listed Tee International Ltd, to complete building works on a 17-storey office block, and two blocks of Menara Soho (30 and 35 storeys). The project has a duration of 29 months starting Apr 20. (StarBiz)Source: CIMB Daybreak - 16 April 2015...
April 16, 2015 10:38:00 am
Oil prices rallied and U.S. crude jumped nearly 6% to a 2015 peak after government data showed crude oil inventories in the United States rose less than expected last week. U.S. May crude rose $3.10 to settle at $56.4/barrel, highest of the year. (StarBiz)Source: CIMB Daybreak - 16 April 2015...
April 16, 2015 10:38:00 am
Fees for mobile internet broadband packages will drop an average 14% while basic fixed packages will be lowered by as much as 57%, said the Ministry of Communications and Multimedia Malaysia. In a statement yesterday, Minister Datuk Seri Ahmad Shabery Cheek said mobile broadband packages will be offered at RM25 per month and consumers who sign up for these will have a monthly data cap of 1GB and at least 3G high-speed packet access for both prepaid and post-paid services.The reduction works out to about 14% less than current prices. As for fixed services, Telekom Malaysia Bhd (TM) will soon be offering a basic broadband package at RM38 a month for 1Mbps of free data usage up to 1GB, which is 57% cheaper than the current RM88 for the basic package. The new mobile basic broadband packages will be available almost immediately while the fixed package by TM is expected to be available from mid-June. (Financial Daily)Source: CIMB Daybreak - 16 April 2015...
April 16, 2015 10:36:00 am
Bintai Kinden Corporation Bhd’s subsidiary has secured a S$17.7m (RM48m) maintenance contract from Singapore’s Land Transport Authority (LTA). It said on Wednesday its 69.82% owned Bintai Kindenko Pte Ltd received the contract to undertake the integrated maintenance of the LTA premises. The targeted date for the project to be completed is by April 29, 2018. (StarBiz)Source: CIMB Daybreak - 16 April 2015...
April 16, 2015 10:33:00 am
Redtone International Bhd's 70% owned subsidiary Redtone Data Centre Sdn Bhd will enter into a memorandum of understanding with PT Sigma Cipta Caraka to explore business opportunities in Indonesia. The integrated telecommunications service provider said in its exchange filing yesterday the agreement will allow the company to offer managed information and communication technology value-added services and solutions for the Indonesian market where such services are seen to be increasing in demand in the country.These include exploring the possibility of jointly establishing a teleradiology exchange in Indonesia where it is expected to help Indonesian Hospitals to strengthen radiology service delivery and create cost savings in healthcare delivery. Redtone said the agreement is also in line with its strategy to build its presence across the South-East Asia. (Malaysian Reserve)Source: CIMB Daybreak - 16 April 2015...
April 16, 2015 10:33:00 am
Petronas does not have any plans to either reduce its workforce or cut the salaries of its employees.President/CEO Datuk Wan Zulkiflee Wan Ariffin said the group was undertaking a group optimising exercise which would impact its service providers. This exercise would see a 20% reduction in the salaries of its service providers outsourced by Petronas. "They (service providers) provide us with professional services with their salaries ranging from more than RM20,000 up to even hundreds of thousands of ringgit," he said. (StarBiz)Source: CIMB Daybreak - 16 April 2015...
April 16, 2015 10:31:00 am
SITA OnAir announced Malaysia Airlines will be the first carrier to implement its 'AIRCOM' FlightTracker global flight tracking service, with deployment during northern summer 2015. The system uses multiple sources of data that guarantees tracking intervals of at least every 15 minutes for every flight. The airline has already conducted extensive testing of the technology, which uses existing equipment and re-purposes air traffic control data. A ground-based software upgrade allows airlines to follow aircraft positions and identify any unexpected deviations or gaps in position reports. The system was launched in fast track mode in Jun 2014. (SITA press release)Source: CIMB Daybreak - 16 April 2015...
April 16, 2015 10:31:00 am
Malaysia Airlines (MAS) is the 16th most reliable airline in the world, according to a travel website, Wanderbet. This ranking was achieved "despite the recent tragic disappearance of a Malaysia Airlines plane." says Wanderbat. Three criteria were used in the ranking or reliability. One was performance, relating to the frequency of flights being on schedule, delayed or cancelled. Next was the cost of checking in baggage – the allowance of free bags on international flights and the charge for additional bags. Lastly, it was the average age of the fleet.On those counts, MAS delivered 74% of their flights on time, 0.7% below the average. Economy class passengers of MAS are allowed two bags on international flights. The third will only cost them about US$13, way below the US$124 that's the industry average. And the average age of MAS' fleet is 4.6 years, measured against the industry average of 10.6. In the listing of the top 22 most reliable airlines, Wanderbat placed Singapore Airlines at number 4. Topping the list is Qatar Airways with a perfect score of 100. (Malaysian Insider)Source: CIMB Daybreak - 16 April 2015...
April 16, 2015 10:30:00 am
Tropicana Corp is hiving off its explosive manufacturing business by selling its entire 73% stake in Tenaga Kimia Sdn Bhd for RM194.7m cash to Austin Powder Asia Pacific, a subsidiary of US-based Austin Powder Holdings Company. Tropicana expects to record a net gain of RM48.5m from this proposed transaction. With the asset sale, its potential net gearing could fall to about 0.3x. (BT)Source: CIMB Daybreak - 16 April 2015...
April 16, 2015 10:29:00 am
While keeping mum on speculation about a merger between Malaysia Building Society Bhd (MBSB) and Bank Islam Malaysia Bhd, MBSB president and chief executive officer Datuk Ahmad Zaini Othman said a merger with an Islamic financial institution is still on the cards, possibly within this or next year. Under the aborted three-way merger plan with CIMB Group Holdings Bhd and RHB Capital Bhd, MBSB would have been acquired by the two banks' Islamic banking operations to become a "mega" Islamic bank. At a press conference after the MBSB's annual general meeting yesterday, Ahmad Zaini reiterated the group's aspiration to be an Islamic financial institution and with that, the need for it to merge with an Islamic financial entity. (Financial Daily)Source: CIMB Daybreak - 16 April 2015...
April 16, 2015 10:28:00 am
Malaysia is raising US$2bn (RM7.4bn) in the bond market as it seeks to defend the ringgit, Bloomberg reports. The ringgit – the region’s worst performing currency – has lost almost 15% in value against the dollar since June and Malaysia’s foreign reserves plunged to US$105bn at the end of March, a US$25bn drop from a year ago. Putrajaya had reportedly appointed HSBC Holdings, CIMB Group and Standard Chartered to arrange the sovereign sale, which might be finalised as soon as this week, the business news portal quoted sources as saying. (Malaysian Insider)Source: CIMB Daybreak - 16 April 2015...
April 16, 2015 10:27:00 am
The Hong Leong Group has ceased to be a substantial shareholder of TH Heavy Engineering Bhd with the recent disposal of 38.8m shares. A filing with Bursa Malaysia showed GuoLine Capital Ltd had disposed of the 3.49% stake on April 14. After the disposal, its stake was reduced from 64.95m shares or 6.36% to 26.1m shares or 2.3%. (StarBiz)Source: CIMB Daybreak - 16 April 2015...
April 16, 2015 10:26:00 am
Matrix Concepts Holdings Bhd has proposed a bonus issue (based on a one-for-six shares basis) and a free warrant on a one-for-six shares basis. Matrix Concepts said the corporate exercise would involve the issuance up to 77.8m new shares and up to 77.8m five-year warrants. (StarBiz)Source: CIMB Daybreak - 16 April 2015...
April 16, 2015 10:26:00 am
Eco World Development Group has won the rights to develop the 190ha site in Batu Kawan on mainland Penang. The property group was notified last week of the Penang government's decision to award the tender. Eco World is expected to pay RM1.2bn for the land. As the winning bidder, Eco World will have to develop a golf course on 60ha of the total 190ha. The company is expected to sign a letter of award next week.The remaining land will see a mixed development project called Eco-Marina, which will include a waterfront city overlooking Penang island. On the drawing board is said to be the proposed development of a mini mall comprising shops and offices in line with the company's "Eco" theme that emphasises sustainability and liveability. (BT)Source: CIMB Daybreak - 16 April 2015...
April 16, 2015 10:26:00 am
Petronas Dagangan Bhd's (PetDag) CEO Mohd Ibrahimnuddin Mohd Yunus said PetDag will offer RON97 that complies with Euro-4M standard by September this year. "We have not set the selling price yet," he said. Currently, RON97, RON95 and diesel supplied by Petdag is complying with with Euro-M2. (StarBiz)Source: CIMB Daybreak - 16 April 2015...
April 16, 2015 10:26:00 am
Axiata Group Bhd has promoted Dian Siswarini from deputy chief executive officer to president and director of PT XL Axiata Tbk (XL). She is the first female CEO in the Axiata group. Axiata said in a statement that with close to 20 years of experience in the telecommunications industry, in both the technology and operations side, Dian would play a crucial role in the next phase of XL’s growth to face the future challenges and changing dynamics of the telecommunications industry. (StarBiz)Source: CIMB Daybreak - 16 April 2015...
April 16, 2015 10:24:00 am
MARC has affirmed its AAA ratings on Sime Darby's Islamic MTN programme with a stable outlook. The rating agency said that the AAA rating were for Sime's RM4.5bn Islamic MTN programme and RM500m Islamic commercial papers with a combined limit of RM4.5bn. "The stable outlook reflects MARC's expectations that Sime Darby's credit metrics will remain commensurate with its current ratings over the near term. Pressure on the ratings would emerge if the group were to undertake further sizeable debt-funded acquisitions or if persistent weakness in its key businesses erode its credit profile," said the rating agency. (StarBiz)Source: CIMB Daybreak - 16 April 2015...
April 16, 2015 10:23:00 am
Penang is set to get its maiden LRT project – a 17.5km elevated stretch linking Komtar with the Penang International Airport. With construction slated to begin next year, the RM4.5bn project is part of a package of solutions for an island that has long been choking on its traffic. The LRT project – expected to be awarded in June – will mark the realisation of the long-awaited implementation of the RM27bn Penang Transport Master Plan (PTMP), which also includes a 25km expressway linking Bayan Lepas and Tanjung Bungah. According to reliable sources, Gamuda Bhd, IJM Corp Bhd, and a Chinese company have been shortlisted to undertake the projects, the bulk of which would be funded through land reclamation rights in the state.The LRT and new expressway will be built using the Project Delivery Partner (PDP) concept, where the PDP will step in to resolve problems should parts of the construction fail to meet construction criteria. In Penang’s case, should either one of the Malaysian companies get the award, it would have to partner with the Chinese company, especially in the construction of the LRT project. It would be likewise should the Chinese company win the contract. (StarBiz)This development marks the start of a pick up in the RM27bn Penang PTMP initiative, broadly in line with the mid 2015 target on the decision of the PDP winner. The value of the LRT project is in line with our estimate of RM4-5bn while the highway is likely to be worth less given the higher cost/km for rail jobs. Potential partnership with a Chinese contractor would make sense given the immediate working capital and funding needs, ahead of the payment-in-kind.Source: CIMB Daybreak - 16 April 2015...
April 16, 2015 10:22:00 am
Some unethical traders seeking excessive profits by charging the Goods and Services Tax (GST) together with the sales and service tax (SST) in a single purchase receipt are damaging the implementation of the GST, said Deputy Finance Minister Datuk Ahmad Maslan. He said he believed in the benefits of the GST system since studying it from 1986, but was unhappy that it was being manipulated by raising prices unreasonably. (Bernama)The Education Ministry will blacklist students and book shops found misusing the 1Malaysia Book Voucher (BB1M), the Dewan Negara was told. Its deputy minister Datuk Mary Yap Kain Ching said the ministry had distributed guidelines on issuing BB1M to all book shops and institutions of higher learning in the country. "The ministry has also monitored all the book shops and universities based on their record management. The students were also warned not to convert the voucher to cash and to use it only for the purchase of books," she said. (Bernama)A total of RM2.02bn was approved to finance 165 projects under the Green Technology Financing Scheme (GTFS) as of 31 Dec last year, said Energy, Green Technology and Water Deputy Minister, Datuk Seri Mahdzir Khalid. The government introduced the GTFS on 1 Jan 2010 with a RM3.5bn fund for five years to support green technology in Malaysia. (Bernama)Mobile service providers have agreed to slash the price of basic broadband Internet package to only RM25 a month for 1GB mobile data plan. The cheaper rate is expected to take effect in the next one or two months, announced Communication and Multimedia Minister Datuk Seri Ahmad Shabery Cheek yesterday. This, he said, was made possible following a series of discussions between the Government and Malaysian telcos.“It will now cost just RM25 a month for a basic mobile broadband package with a data cap of 1GB, running on 3G-HSPA network. So all service providers whose 1GB plan cost more than RM25 will now be reduced,” Ahmad Shabery said. (Star)Source: CIMB Daybreak - 16 April 2015...
