MALAYSIAeBiz - Bernama.com
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MALAYSIAeBiz - Bernama.com
MALAYSIAeBiz WEEKLY BUSINESS ROUNDUP 2 - 6 MARCH 2015 This Week’s Highlight : M’sia Needs More Innovators & Entrepreneurs To Accelerate Growth - PM MORE INNOVATORS...Prime Minister Datuk Seri Najib Tun Razak speaks at the opening ceremony of Menara Perbadanan Nasional Bhd (PNS) in Bangsar South here Friday.-fotoBERNAMA KUALA LUMPUR -- Malaysia needs more innovators and entrepreneurs to generate wealth and to rapidly accelerate the country’s economic growth, says Prime Minister Datuk Seri Najib Tun Razak. He said innovators should diversify their initiatives not only in science and technology but also in the social field as it was still unexplored. “We also need entrepreneurs who have the mindset not only to look for jobs but invent and provide employment,” he said when officiating Menara Perbadanan Nasional Bhd (PNS) in Bangsar South here Friday. Najib also reminded franchise operators to double their efforts in providing the best service in order to ensure customers remained loyal to their product. “We must ensure their (customers) first experience is memorable, that’s the key to success,” he said. This Week’s Top Stories Monday Customs Department Compounds 100 Companies For Non-GST Registration KUALA LUMPUR -- The Customs Department has issued compounds of RM15,000 to 100 companies for failing to register for the Goods and Services Tax (GST) by the Feb 28 deadline. The compounds came in the wake of a crackdown yesterday by the department in Johor, Kedah, Kelantan and Terengganu. Companies with an income threshold of RM500,00 had until Feb 28 to register for the GST which is effective April 1. As of Feb 28, there were 345,376 companies registered for the GST. Wednesday March Friday 6, 6, 2015 2015 IMF Board Praises Malaysia’s Impressive Economic Strides KUALA LUMPUR -- The Executive Board of the International Monetary Fund (IMF) has praised Malaysia’s impressive strides in economic development, saying they are the outcome of comprehensive initiatives to boost investment, improve infrastructure and upgrade human capital. In its statement Wednesday, the IMF’s directors said they agreed that Malaysia’s commitment to regional integration should also help support the country’s transition to high-income status by further enhancing competition and productivity. Malaysia is wellplaced to address these risks, given a track record of accomplishment of skilful macroeconomic management, strong policy frameworks, and a sound financial system, the statement added. Thursday BNM Keeps OPR Unchanged At 3.25 Pct KUALA LUMPUR -- Bank Negara Malaysia (BNM) has maintained the Overnight Policy Rate (OPR) at 3.25 per cent at its Monetary Policy Committee (MPC) meeting here Thursday. In a statement here Thursday, the central bank said the current monetary policy remained accommodative and was supportive of economic activity. “The MPC will continue to carefully assess external and domestic developments and their implications on the risks to inflation and on the Malaysian economy,” it said. Tuesday B10 Programme To Be Implemented Nationwide, To Include Other Friday M’sia Registers RM9.01 Bln Trade Sectors KUALA LUMPUR -- The government is Surplus In Jan 2015 mulling implementing the biodiesel 10% KUALA LUMPUR -- Malaysia blend (B10) programme nationwide, registered a trade surplus of RM9.01 including extending it to other sectors billion for the 207th consecutive such as industry and power generation. month in January this year, a 41.8 The B10 programme involves the per cent increase compared with blending of 10 per cent palm methyl the corresponding month last year, ester with 90 per cent fossil fuel diesel. the Ministry of International Trade “It will also contribute to the usage of an and Industry (MITI) said. Exports for environmentally friendly and sustainable January remained high at RM63.6 source of energy,” Minister of Plantation billion while total imports decreased Industries and Commodities Datuk by 5.3 per cent to RM54.59 billion Amar Douglas Uggah Embas said in his from a year ago. In a statement here ministerial address, read by Secretary- Friday, MITI said total trade in January General Datuk Himmat Singh, at the 2015 amounted to RM118.2 billion, a 3-day Palm and Lauric Oils Conference 2.8 per cent drop from a year ago and 2015 organised by Bursa Malaysia here the performance was in tandem with the regional trade performance. Tuesday. © 2014 BERNAMA. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed in any form except with the prior written permission of BERNAMA. MALAYSIAeBiz MALAYSIAeBiz : 1 : 1 MALAYSIAeBiz SMEbrief Five Orang Asli Cooperatives To Set Up In Pahang Yearly RAUB -- The Cooperatives Commission of Malaysia (SKM) aims to have cooperatives set up in all the 260 Orang Asli villages in Pahang to encourage the community to pursue economic and entrepreneurial activities. SKM Pahang director Mohd Zawawi Mahmood said the commission strived to get at least five Orang Asli cooperatives set up yearly in the state starting this year. SKM would select educated Orang Asli youths to attend a cooperative management course to enable them to lead the cooperatives in their villages, he said after visiting the Raub SKM branch here Monday. MyCC Focusing On Strengthening SME Competitive Landscape KUALA LUMPUR -- The Malaysia Competition Commission (MyCC) is focusing on issues confronting small and medium enterprises (SMEs), pharmaceutical and professional bodies, as well as bid rigging this year in an effort to strengthen competition in the local business landscape. It will continue to focus on the SMEs, especially through advocacy, as most businesses in Malaysia are made up of SMEs, which collectively enable the sector to shape the business landscape, MyCC said in a statement Monday. 504 SMEs In Terengganu Yet To Redeem E-vouchers For GST Accounting Software By Kamaliza Kamaruddin KUALA TERENGGANU -- Of the 5,600 small and medium enterprises (SMEs) in Terengganu, 504 have yet to redeem their e-Vouchers for the Goods and Services Tax (GST) accounting software from the approved software vendors. SME Corp Terengganu director, Muhammad Ibrahim, said the companies needed to redeem them before March 15 following the postponement of the redemption http://images.BERNAMA.com /foto/shopping/ Propertyupdate PropUP Malaysian Banks, Property Developers Resilient - Moody’s KUALA LUMPUR -- Malaysian banks and property developers are resilient to possible shifts in sentiment and falling property prices, says Moody’s Investors Service. In a statement here Tuesday, Moody’s said the banks were wellpositioned to weather a soft landing in property prices, while developers focussing on residential projects in Johor, Kuala Lumpur, Selangor and Penang, would be more challenged. The agency anticipated a soft landing for Malaysia’s property prices, supported by robust, albeit decelerating gross domestic product growth, and stable housing demand from middle-income households.In such a scenario, Malaysian developers and banks should be resilient to downward property price pressures, Moody’s senior vice president, Stephen Schwartz, said. deadline announced recently. “The extension, on the flexibility and understanding of SME Corp, was to give SMEs, especially in the East Coast of Peninsular Malaysia who are not able redeem their e-Vouchers from vendors due to the electricity supply cut and other disruptions caused by the recent floods,” he told Bernama here Tuesday. MK Land To Launch Two Projects This Year PETALING JAYA -- Property developer, MK Land Holdings Bhd, will launch two projects this year with a combined Gross Development Value of RM600 million, says Group Chief Executive Officer Lau Shu Chuan. “There are still some pending approval pertaining to the projects but once we obtain them, we will launch the projects between April and June,” he told reporters at the company’s Chinese New Year celebration here Thursday. The projects comprise serviced-apartments costing RM450,000 onwards in Damansara Damai and apartments in Damansara Perdana, priced above RM600,000 per unit. MK Land is currently planning other affordable housing projects in Meru Perdana, Klebang Putra and Lembah Beriah, all located in Perak, Lau added. Property Sector Expected To Be Flat This Year KUALA LUMPUR -- The property sector is expected to be flat this year, bogged down by buyers’ ‘wait-and-see’ attitude towards the implementation of the Goods and Services Tax against a backdrop of a weakening ringgit. President of Malaysia Institute of Estate Agents, Siva Shanker, said this showed that the government’s cooling measures had started to work, which was a good thing for the sector. “The industry, however, will pick up in 2016 and 2017 and peak in 2018,” he told reporters at the Malaysian Real Estate Convention 2015 here Friday. The government has capped the maximum personal loan tenure to 10 years and that of property financing to 35 years to mitigate rising household debt. This appears to have tightened the property financing tap since banks have become more cautious in their loan qualification criteria. © 2014 BERNAMA. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed in any form except with the prior written permission of BERNAMA. MALAYSIAeBiz :2 MALAYSIAeBiz :2 MALAYSIAeBiz MARKET Scoreboard Gainers - 456 Losers - 361 Not Traded - 633 Unchanged - 311 Value - 1926030639 Volume - 20058375 BURSA: Bargain Hunters In Finance Stocks Lift Bursa M’sia At Close By Zarul Effendi Razali KUALA LUMPUR -- Share prices on Bursa Malaysia closed slightly higher Friday, supported by bargain hunting in selected finance stocks after the midday break, dealers said. At 5 pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) ended 0.87 of a point better at 1,806.96, after fluctuating between 1,799.65 and 1,809.65 throughout the day. Hong Leong Financial and LPI Capital rose 20 sen each to RM17.20 and RM22.14, respectively. Head of Retail Research at Affin Hwang Investment Bank Datuk Dr Nazri Khan told Bernama that volume remained subdued, as investors are still taking a cautious stance ahead of the US job data announcement later today, which could provide more insights into the US Federal Reserve’s interest rate hike timing. A dealer meanwhile said, regionally, most Asian stocks traded higher as investor confidence over the US employment data being positive had grown and amid the European Central Bank’s growth forecast upgrade. On the broader market, gainers outpaced losers 456 to 361 with 311 counters unchanged, 633 counters untraded and 21 others suspended. Total volume declined to 2.01 billion shares worth RM1.93 billion from 2.14 billion shares worth Money Market: Short-Term Rates Stable On BNM’s Intervention KUALA LUMPUR -- Short-term interbank rates ended stable Friday on Bank Negara Malaysia’s (BNM) intervention to reduce excess liquidity in the financial system. The liquidity Exchange Rate surplus in the conventional system (Ringgit : Foreign Currency) eased to RM22.47 billion from RM31.83 billion estimated earlier, Buying Selling while in the Islamic system, it fell to RM5.52 billion from RM8.39 billion. 3.6515 3.6545 In the morning, BNM called for USD eight tenders -- three conventional 4.0148 4.0192 money market, two Al-Wadiah, two EUR Commodity Murabahah Programme 5.5550 5.5603 and a repo. The central bank also GBP conducted a late conventional 100 YEN 3.0401 3.0436 money market tender for RM22.5 billion and a RM5.0 billion Al-Wadiah 2.6655 2.6681 money market tender, both for threeSGD day money. The overnight Islamic Source: Bank Negara Malaysia reference rate stood at 3.21 per cent, FOREX: Ringgit Ends Lower Against while the one-, two- and three-week rates stood at 3.28 per cent, 3.32 per US Dollar cent and 3.36 per cent, respectively. By Sharifah Pirdaus Syed Ali RM2.38 billion transacted on Thursday. Main Market volume slid to 1.13 billion units worth RM1.74 billion from the 1.35 billion units worth RM2.26 billion registered on Thursday. KUALA LUMPUR -- The ringgit eased against the US dollar in late trading on persistent strength of the greenback which hovered around an 11-year high against major currencies, a trader said. At 5 pm, the local currency ended at 3.6515/6545 against the greenback versus 3.6470/6500 at Thursday’s close. A dealer said the greenback remained firm ahead of the US nonfarm payroll report for February due later today which is expected to show an increase. KLIBOR Futures Contracts Untraded KUALA LUMPUR -- The three-month Kuala Lumpur Interbank Offered Rate (KLIBOR) futures contracts on Bursa Malaysia Derivatives ended the week untraded. Spot month March 2015, April 2015 and May 2015 were pegged at 96.24 while June 2015 remained at 96.23. Open interest amounted to 1,450 contracts. At 11am fixing, the underlying threemonth KLIBOR stood at 3.78 per cent. “The strong jobs data will lift the dollar higher and put further pressure on the ringgit while any dissapointment would help the currency consolidate and rebound,” she told Bernama. However, the ringgit was traded higher against other major currencies. The local unit increased against the Singapore dollar to 2.6655/6681 from Thursday’s 2.6657/6681 and appreciated against the British pound to 5.5550/5603 from 5.5602/5655. It rose against the yen to 3.0401/0436 from 3.0430/0457 Thursday and gained against the euro to 4.0148/0192 from 4.0277/0318. KLCI Futures End Higher KUALA LUMPUR -- The FTSE Bursa Malaysia KLCI (FBM KLCI) futures contract on Bursa Malaysia Derivatives closed lower higher Friday in tandem with the better cash market. Spot month March 2015 rose 1.5 points to 1,800, April 2015 earned one point to 1,796.5 and June 2015 added three points to 1,797, while September 2015 was flat at 1,792. Turnover slipped to 6,854 lots from 9,245 lots on Thursday, while open interest narrowed to 42,865 contracts from 43,296 contracts. The benchmark FBM KLCI ended 0.87 of a point higher at 1,806.96. © 2014 BERNAMA. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed in any form except with the prior written permission of BERNAMA. MALAYSIAeBiz : 3 Banking &Finance RHB Research Expects OPR At 3.25 Per Cent In 2015 KUALA LUMPUR -- RHB Research Institute expects Bank Negara Malaysia to keep the Overnight Policy Rate (OPR) stable at 3.25 per cent in 2015, supported by the strength of economic growth. “We believe it will likely be an important consideration, relative to inflation for monetary decision in 2015, given the challenging global economic environment,” it said in a research note released Monday. RHB expects inflation to rise to 3.6 per cent in 2015, from 3.2 per cent in 2014, with the first quarter of the year to stay benign. However, inflation is likely to spike in the following months due to the implementation of the Goods and Services Tax (GST) and potential fuel price hikes. CGC, OCBC Al-amin To Boost Unsecured Business Financing For SMEs KUALA LUMPUR -- Credit Guarantee Corp Malaysia Bhd (CGC) and OCBC AlAmin Bank Bhd plan to disburse RM1 billion in unsecured business financing for small and medium enterprises (SMEs) by year-end. CGC president/chief executive officer, Mohd Zamree Mohd Ishak, said a fresh RM500 million would be disbursed in two tranches, RM250 million each in May and December, to up to 6,000 SMEs nationwide. Meanwhile OCBC Al-Amin director/chief executive officer, Syed Abdull Aziz Syed Kechik, said the wholesale guarantee has given rise to a new phase in the development of Malaysia’s unsecured business financing efforts especially for SMEs. Last year, CGC and OCBC Al-Amin had Maybank Investment Bank rolled out the first tranche worth RM250 Appoints Fad’l As Deputy CEO million each in April and November, to KUALA LUMPUR -- Maybank Investment help SMEs mitigate risks. Bank (Maybank IB) has appointed Fad’l Mohamed as its Deputy Chief Executive 5 Funds Get ACMF Nod As Officer, effective Monday. He will assist Qualifying Collective Investment John Chong, Chief Executive Officer Schemes of Maybank IB and Maybank Kim Eng KUALA LUMPUR -- The Asean Capital Group, in the investment banking Markets Forum (ACMF) meeting Tuesday business in Malaysia, said Maybank IB announced the authorisation for five in a statement here. “We are delighted new funds as Qualifying Collective to have Fad’l on board. With his vast Investment Schemes (CIS) under the experience in investment banking Asean framework for cross-border and strong corporate network, we are offering of CIS. ACMF’s chairman, confident that he will be able to further Datuk Datuk Ranjit Ajit Singh, said the strengthen Maybank IB’s leadership five qualified funds were approved position,” John Chong said. by the Securities Commission of Malaysia and the Monetary Authority of PIDM Certifies 26 Trainers From Singapore while the SEC Thailand was 10 Banks in the process of reviewing one fund KUALA LUMPUR -- Perbadanan application. “These funds are allowed Insurans Deposit Malaysia (PIDM) has to be offered to retail investors in the certified 26 trainers from 10 banks signatory countries including Malaysia, and two insurance companies under its Singapore and Thailand,” said Ranjit, second Train-the-Trainer programme. after the signing of the memorandum of In a statement Monday, PIDM said the understanding to establish a Streamlined programme, an ongoing collaboration Review Framework for Asean Common with the Malaysian Insurance Institute, Prospectus here Tuesday. The MOU was trained and certified employees from its signed between SC, MAS, the Securities member institutions to conduct briefings and Exchange Commission, Thailand on financial consumer protection (SEC) and the Singapore Exchange systems it administered. Since its (SGX), as an initiative aimed at expediting introduction in 2013, the programme the review of prospectuses registered in has certified 57 trainers. respective Asean jurisdictions. MALAYSIAeBiz CIMB Teams Up With Mitsubishi To Launch US$130 Million Asean Private Equity Fund KUALA LUMPUR -- CIMB Group and Mitsubishi Corp have jointly launched the Asean Industrial Growth Fund (AIGF), a new Asean private equity fund which has reached a fund size of US$130 million. “AIGF is a platform that seeks to match the growing interest of Japanese corporates for Asean business opportunities,” CIMB Group said in a statement Tuesday. AIGF would source investors from a wide range of investors based in Japan including Hitachi Ltd, Yamato Kogyo Co Ltd and The Toho Bank Ltd, it said. Shinsei Bank Ltd, a leading diversified Japanese financial institution, would join as a key strategic investor to the fund, the statement added. Maybank Expects Strong Growth In Retail SME Financing In 2015 KUALA LUMPUR -- Maybank is committed to see further growth in retail small and medium enterprise (SME) financing in 2015 after recording a strong 43 per cent rise to RM7.5 billion in 2014. As at Dec 31 2014, its business banking grew 6.5 per cent while the group market share in the SME industry, in terms of financing stood at 20.4 per cent. “As for SME Islamic financing, the growth was a strong 77 per cent to RM3.4 billion last year,” Maybank Head of Group Islamic Banking Muzaffar Hisham said in a statement Thursday. In 2014, Maybank launched several SME products to support government initiatives in promoting and boosting the SME. This includes a collaboration with CGC with a commitment of RM1 billion of SME Portfolio Guarantee (PG) financing to SMEs, which has benefited 2,133 entrepreneurs, of which 56 per cent are Bumiputeras. “We at Maybank are more than happy to extend our products and services and play a role in turning the great business ideas of these SMEs into successful business stories,” Muzaffar, who is also Maybank Islamic Bhd Chief Executive Officer, said. © 2014 BERNAMA. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed in any form except with the prior written permission of BERNAMA. MALAYSIAeBiz : 4 MALAYSIAeBiz AAX Undertaking Internal Restructuring KUALA LUMPUR -- Internal restructuring is taking place at AirAsia X Bhd (AAX), quashing talks that it would need to merge with AirAsia Bhd. AAX chairman, Tan Sri Rafidah Aziz, said the company was sorting out all that the airline needed for a turnaround. “The plans we have in place are to meet the changing environment,” she said on the sidelines of the International Directors Summit 2015 here Monday. For the financial year ended Dec 31, 2014 AAX saw net losses rising to RM519.34 million due to rising operating expenses, compared with RM88.26 million in 2013. The group’s operating expenses for 2014 surged 44.8 per cent to RM3.33 billion mainly due to higher staff costs in 2014 which rose 33.9 per cent to RM312.7 million from RM233.6 million in 2013. Revenue, however, was higher at RM2.94 billion, up 27.3 per cent from the RM2.31 billion in 2013. Nexgram Land Eyes RM293 Million Net Profits In Next 5 Years KUALA LUMPUR -- Nexgram Holdings Bhd’s property development arm, Nexgram Land Sdn Bhd, expects a net profit of RM293 million in the next five years via its mixed development projects in Cyberjaya and Putrajaya. Both projects are expected to start in mid-year, said the company in a statement Tuesday. The Cyberjayaproject, which had been entirely purchased by MyAngkasa Bina Sdn Bhd for RM1.1 billion, comprises commercial shops, a high-end small office versatile office residence, a The BOTTOM Line hotel and corporate office building. Meanwhile, the Putrajaya project would be jointly developed with Top Valley Properties, and comprise three blocks of residential units, Nexgram Land said. Allianz Malaysia Targets DoubleDigit Growth Of GWP For FY2015 KUALA LUMPUR -- Allianz Malaysia Bhd is aiming for double-digit growth in gross written premium (GWP) for the financial year 2015, said Chief Executive Officer, Zakri Khir. In 2014, Allianz Malaysia’s two insurance subsidiaries, Allianz General Insurance Co (M) Bhd and Allianz Life, registered GWP of RM2.13 billion and RM1.83 billion respectively. Speaking to reporters at the launch of the “Malaysian Against Irresponsible Drivers (MyAID)” campaign here Wednesday, he said however, the group recognised that this year would be more challenging on the back of a global economic slowdown and implementation of the Goods and Services Tax. “Most people will adopt a ‘wait-and-see’ approach before taking a stance on purchases and investments,” said Zakri. Allied World To Pay Quarterly Dividend KUALA LUMPUR -- Allied World Assurance Company Holdings, AG has approved a quarterly dividend equivalent to $0.225 (RM0.82) per share, which is payable on April 2, 2015. The company’s transfer agent will make dividend payments in United States dollars to those listed in shareholders record as of March 24, 2015, said AG in a statement issued Thursday in ZUG, Switzerland. As for the payment in Swiss francs (CHF), it will be based on the USD/ CHF exchange rate as published by The Wall Street Journal on March 10, 2015. AG, through its subsidiaries and brand known as Allied World, is a global provider of innovative property, casualty and specialty insurance and reinsurance solutions. Handal Resources Aims To Sustain Growth Momentum KUALA LUMPUR -- Integrated offshore crane services provider and fabricator, Handal Resources Bhd which currently has a RM195 million order book, aims to sustain growth momentum going forward. “We will strive to further enhance our competitiveness in the challenging circumstances in the oil and gas sector,” Group Advisor and Deputy Managing Director, Joel Emanuel Heaney said in a statement Thursday. Handal registered a higher pre-tax profit of RM11.787 million in the financial year ended Dec 31, 2014 (FY14) on the back of RM119.673 million improved revenue. Handal more than tripled its net profit attributable to shareholders for FY14 to RM6.388 million from RM1.974 million a year ago, on higher sales and enhanced operational efficiencies. Capital Market In 2014 Rose To RM2.76 Tln KUALA LUMPUR -- The Malaysian capital market’s value rose to RM2.76 trillion last year, equivalent to 2.6 times the size of the country’s economy, from RM2.73 trillion in 2013. The Securities Commission Malaysia (SC) said the capital market continued to expand on the back of sustained capital-raising activity despite challenging conditions and © 2014 BERNAMA. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed in any form except with the prior written permission of BERNAMA. MALAYSIAeBiz : 5 MALAYSIAeBiz global uncertainties. In conjunction with the release of its 2014 Annual Report, the SC said some RM91.9 billion was raised through initial public offerings and private debt securities. “Capital-raising exceeded RM90 billion for the third consecutive year, illustrating the capital market’s deepened capacity to meet Malaysia’s real economy financing needs,” it said in a statement here Thursday. The SC said the Islamic capital market grew at an average of 12 per cent per annum over the last five years to RM1.59 trillion in 2014, accounting for 58 per cent of the capital market. Private Retirement Schemes Attract More Young Members KUALA LUMPUR -- The private retirement schemes (PRS), administered by the Private Pension Administrator Malaysia, has managed to attract the younger generation, with youths accounting for 22 per cent of its members in 2014 from a mere seven per cent in 2013. The PRS, introduced in 2012 to allow a wider cross-section of the public to access the capital market for their retirement needs, saw its membership increase to 128,977, at end-2014, from 64,710 in 2013. Its assets under management had more-thandoubled to RM716.05 million from RM299.82 million registered in 2013, says the Securities Commission (SC) in its 2014 annual report released Thursday. The SC said inculcating retirement planning from an early age remained integral to PRS’ initiative, as such, the government’s PRS Youth Incentive of RM500 to members aged between 20 and 30 have been wellreceived, with the number of young members having grown more than six times to over 28,000 since 2013. The BOTTOM Line PPB Sees Flour & Feed Milling Gains To Contribute To FY15 Revenue Growth By S. Joan Santani car dealers,” he said in a statement here Thursday. He said among hire purchase products offered at the centre were non-salary deduction scheme and salary deduction scheme KUALA LUMPUR -- PPB Group Bhd, via Biro Perkhidmatan Angkasa at controlled by tycoon Tan Sri Robert competitive interest rates. Kuok, expects its grains trading, flour and feed milling segment to contribute MPIB Targets RM1 Mln substantially to group revenue Premiums From MM2H Medical this year. “Last year the segment Insurance Plan Within One Year contributed about 61 per cent to the KUALA LUMPUR -- Multi-Purpose total revenue of RM3.701 billion. “We Insurans Bhd (MPIB) has targeted are looking at the same contribution RM1 million in premiums from its to growth this year,” said Managing newly launched medical insurance Director Lim Soon Huat at a media coverage within one year from the and analysts’ briefing here Thursday. participants of the Malaysia My For the financial year ended Dec 31, Second Home (MM2H) programme. 2014, revenue from the segment was Its Chief Operating Officer, Liew up 14 per cent, mainly attributable to Yaw Lian said the MM2H medical higher flour and animal sales volume insurance plan is available as one of in Indonesia, Vietnam and Malaysia. Bank of China Malaysia Bhd’s (BOCM) He said a new flour mill, built by financial solutions underwritten by 51 per cent owned-subsidiary, MPIB to the MM2H holders. He said Vietnam Flour Mills Ltd-Wilmar, was with the collaboration of BOCM, MPIC commissioned in January with a daily expected between 1,000 and 1,500 production capacity of between 400 MM2H applicants from East Asia covering mainland China, Hong Kong, and 500 tonnes. Macau, Taiwan, Japan and South BSN Confident New AFC Will Korea would take the insurance Continue 10 Pct Of Total Income plan this year. MPIB, with over 40 KUALA LUMPUR -- Bank Simpanan years of track record as a general Nasional (BSN) is confident its newly- insurer, strongly believes that it is established Auto Finance Centre able to support BOCM in the MM2H (AFC) will contribute up to 10 per programme, he said, adding that cent of the bank’s total income within with the growing number of MM2H three years. Deputy Chief Executive applicants, MPIB is confident of Officer Datuk Yunos Abd Ghani achieving the RM1 million premium said AFC, which started operations target for the new product within one last year, was the bank’s strategic year. “We can add value to the MM2H move in response to market and customers by providing medical consumer demand. “All financing and insurance coverage within 30 disbursement operations are fully minutes and hassle-free admission to handled by this centre and all relevant hospitals in the event a policy holder transactions are executed fast and is sick or injured while in Malaysia,” more effectively for customers and he told reporters here Friday. © 2014 BERNAMA. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed in any form except with the prior written permission of BERNAMA. MALAYSIAeBiz : 6 BizTALK MALAYSIAeBiz Biotechcorp Exchanges Collaboration Proposal With Belgium KUALA LUMPUR -- Malaysian Biotechnology Corporation Sdn Bhd has exchanged a collaboration proposal with Ghent Bio-Economy Valley (GBEV) from Belgium to bolster the bioeconomy business and research communities in both countries. In a statement Monday, BiotechCorp said the partnership is hoped to encourage business partnering and expansion opportunities, multi-disciplinary areas of collaboration, innovative funding opportunities, as well as sharing of information, tools and resources for the development of new bio-based products, processes and technologies. The event was graced by Deputy Minister of Science Technology and Innovation Datuk Dr Abu Bakar Mohamad Diah, Belgium Ambassador Daniel Dargent and GBEV Board member Hendrik-Jan Van Engelen. Sime Unit Completes RM5.95 Billion NBPOL Acquisition KUALA LUMPUR -- Sime Darby Plantation (SDP), Monday completed its RM5.95 billion acquisition of New Britain Palm Oil Ltd (NBPOL), bringing it closer to meeting its expansion target. Following this, SDP’s landbank has expanded to almost one million hectares spread out in five countries, Sime Darby Bhd said in a statement. SDP would have five representatives on the board of NBPOL, namely, Datuk Rashidi Che Omar, Rosely Kusip, Tan Sri Mohd Bakke Salleh, Datuk Franki Anthony Dass and Datuk Henry Sackville Barlow, who will also be appointed as chairman of the board. Non-GST Registered Firms To Face Stern Action KUANTAN -- Stern action will be taken against companies that do not register for the Goods and Sevices Tax (GST) to be implemented next month, Deputy Finance Minister Datuk Ahmad Maslan said Monday. The Royal Malaysian Customs Department will be carrying out a special GST operation next month to track down errant firms. Pesona Metro Secures RM172.72 Million Road Project KUALA LUMPUR -- Pesona Metro Holdings Bhd has secured a RM172.72 million joint-venture project between its wholly-owned subsidiary, Pesona Metro Sdn Bhd, Pembinaan Kaleigh Sdn Bhd and Hanawin Sdn Bhd, for road works in Pahang. The new highway construction project is located from Section 3E2 of Merapoh to Kg Kubang Rusa. “The stretch is located along Central Spine Road Highway Package 3 linking Gua Musang, Kelantan to Kg Relong, Pahang,” it said in a statement Monday. Pesona Metro said the project was expected to take three years from the date of procession of the site on March 17 this year. AirAsia Offers 20 Pct Discount For All Seats, Flights KUALA LUMPUR -- AirAsia Group in its latest promotion is offering 20 per cent off base fares for all seats and all flights to over 100 destinations throughout all of its route network across 20 countries, with zero fuel surcharges. In a statement Monday, the group said bookings may be made at airasia. com from March 3 to 8, 2015 with immediate travel from March 5 to July 12, 2015. The 20 per cent discount is also applicable to bookings via AirAsia’s mobile app on iPhone and Android devices, as well as the mobile site, airasia. com, it said. Perisai Petroleum Secures Extension Of Vessel Charter For US$3.65 Million KUALA LUMPUR -- Perisai Petroleum Teknologi Bhd has received notice from Emas Offshore Pte Ltd for the extension of bareboat charter of three vessels for an expected value of US$3.65 million (RM13.24 million). In a filing to Bursa Malaysia Monday, Perisai Petroleum Teknologi said the extension charters secured by its 51 per cent subsidiary, Intan Offshore Group, were for a new expiration date on Aug 31, 2017. Steep Drop In Oil Prices To Affect Asian O&G Firms SINGAPORE -- The steep drop in crude oil prices will affect Asian oil and gas (O&G) companies, says Moody’s Investors Service. In a statement Monday, Moody’s vice president/senior credit officer, Vikas Halan, said the drop in crude oil prices since mid-2014 would reduce the earnings and cash flows of Asian O&G firms and weaken their credit metrics in 2015. “At the same time, the low prices will benefit most Asia-Pacific sovereigns given the region’s status as a net oil importer,” Halan said. “With the slowing growth in worldwide demand, oil markets would likely remain oversupplied for the next two years. The demand-supply imbalance may worsen if China’s economic growth slows sharply or if significant lifting of economic sanctions on Iran further increases oil volumes,” he added. Eversendai Bags RM269.2 Million Contract In Qatar KUALA LUMPUR -- Eversendai Corp Bhd, a specialist engineering and construction services provider, has secured a project worth RM269.2 million to construct the Al Wahda Arches and Visitors’ Centre in Doha, Qatar. The project, won through its subsidiary company in the country, © 2014 BERNAMA. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed in any form except with the prior written permission of BERNAMA. MALAYSIAeBiz : 7 BizTALK MALAYSIAeBiz is set to become one of the most prominent landmarks in Qatar, upon completion by June 2016. In a filing to Bursa Malaysia on Monday, Eversendai said it was the only pre-qualified company from the Middle East involved in the international bidding of the project, going up against competitors from Korea, Italy and France. MediaCorp Appoints Mitchell As Head, Digital SINGAPORE -MediaCorp, Singapore’s leading media company, has appointed Shane Mitchell as head, digital. In a statement Monday, MediaCorp said Mitchell would help accelerate the growth of its digital business. “Mitchell will be responsible for driving a unified digital strategy across MediaCorp’s online and mobile properties, commercialising business lines, improving user experience and working on strategic partnerships,” it said. Mitchell, who reports to MediaCorp chief executive officer (CEO) Shaun Seow, would also focus on strengthening digital expertise across the organisation. Government To Modify PPP Concept KUALA LUMPUR -- The government will modify the public-private partnerships (PPP) concept and the facilitation fund for the 11th Malaysia Plan to make them more effective, says Minister in the Prime Minister’s Department, Senator Datuk Seri Abdul Wahid Omar. Abdul Wahid said PPP has been as an effective method of raising capital and delivering high-quality public service and the government wanted to review and make the facilitation fund more effective. “The facilitation fund, which was offered in the form of grants, will be converted to some form of subequity (concept),” Abdul Wahid said on the sidelines of the International Directors Summit (IDS) 2015 here Monday. He said the facilitation fund was currently given for high-impact projects. Keen Interest In MAS Restructuring KUALA LUMPUR -- The MAS Recovery Plan (MRP) continues to draw interest from various entities seeking to participate in or complement it. In the second MRP quarterly progress update released here, Monday, Khazanah Nasional Bhd, which own 100 per cent stake in the national carrier, said it had to date received 36 business proposals. “Khazanah has met and will continue to meet relevant submitting parties to discuss their proposals in detail,” it said. The sovereign fund said it conducts a rigorous evaluation process and will only evaluate and assess credible proposals with proven capability and resources. Proposals should not involve any break up of MAS assets, integral to its function as the national carrier, the report added. Oriental Unit Acquires 90 Per Cent Stake In PT Surya Agro For RM98.32 Million KUALA LUMPUR -- OAM Asia (Singapore) Pte Ltd (OAMA) has acquired 90 per cent stake in PT Surya Agro Persada (SAP) for RM98.321 million, Oriental Holdings Bhd (OHB) said in a filing to Bursa Malaysia, Tuesday. OHB said the acquisition was consistent with its strategic plan to expand its planted land holding in Indonesia. OAMA is a wholly owned subsidiary of Oriental Boon Siew (Mauritius) Pte Ltd (OBSM) which in turn is a 50.5 per cent unit of OHB. MyCC Issues Final Decision Against 24 SCBA Members KUALA LUMPUR -- The Malaysia Competition Commission (MyCC) has issued a decision in relation to a price fixing agreement between 24 enterprises who are members of the Sibu Confectionery and Bakery Association (SCBA). The SCBA was found to have engaged in anti-competitive conduct by agreeing to increase the prices of confectionery and bakery products by 10 to 15 per cent in Sibu area effective on Dec 1, 2013. MyCC chief executive officer, Dr Mohd Khalid Abdul Samad, said the agreements such as these, allowed for enterprises of different sizes to increase prices across the board by a standard amount thus narrowing or eliminating competition. The MyCC has made a finding that 15 enterprises had infringed section 4(2)(a) of the Competition Act and has imposed a total financial penalty of RM247,730 on the infringing enterprises, it said in a statement Tuesday. Boeing, Silk Way West Announce Order For Three 747-8 Freighters SINGAPORE -- Boeing and Azerbaijan-based Silk Way West Wednesday announced an order for three 747-8 Freighter airplanes valued at more than US$1.1 billion at current list prices. In a statement, Zaur Akhundov, President, Silk Way Group of Companies said: “Silk Way Airlines’ success and profitability as a cargo operator is a direct result of investing in its fleet and services and growing its regional and international footprint. Silk Way West is an enterprise of the Silk Way Group, which includes 23 companies working in the aviation industry and related services. The airline currently operates seven Boeing airplanes, including two 767-300 Freighters, three 747400 Freighters and two 747-8 Freighters. © 2014 BERNAMA. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed in any form except with the prior written permission of BERNAMA. MALAYSIAeBiz : 8 BizEVENTS Bangkok Fashion Fair Eyes 2 Bln Baht Sales By Minggu Simon Lhasa BANGKOK -- Thai and international designers are expected to reap no less than 2.0 billion baht in sales at the upcoming Thai Bangkok International Fashion Fair and Bangkok International Leather Fair 2015 (BIFF & BIF) to be held on March 11-15. BIFF 2015 will feature 527 exhibitors from ASEAN countries as well as those from China, Japan, India and Bangladesh, said Chantira Jimreivat Vivatrat, Deputy Director General of Department of International Trade Promotion (DITP), Ministry of Commerce, Monday. Carrying the theme ‘Catching The Creative Spirit’, this year’s fair provides a special attraction is Myanmar. KL To Host 1Asean Entrepreneurship Summit In November PUTRAJAYA -- About 5,000 Asean entrepreneurs are expected to attend the 1Asean Entrepreneurship Summit 2015 (1AES) in Kuala Lumpur from Nov 20 to 22, 2015. “The 1AES, themed ‘Futuring Asean Entrepreneurs,’ will gather young entrepreneurs from across the region who will discuss how to venture into markets beyond their own countries and be world-class entrepreneurs,” Mohd Irwan Serigar said at a 1AES media briefing at the Finance Ministry here Monday. Malaysia Looking At Ways To Minimise Fiscal Risks KUALA LUMPUR -- Malaysia is now looking at ways to minimise fiscal risks without jeopardising incentives to the private sector under the public-private partnership (PPP). “Infrastructure projects shall remain relevant in the PPP, albeit with a focus on green technology and energy-efficient designs,” Chief Secretary to the Government Tan Sri Dr Ali Hamsa said in his special address at the International Directors Summit (IDS) 2015 here, Tuesday. The two-day MALAYSIAeBiz IDS 2015 is jointly organised by the Razak School of Government (RSOG) and the Malaysian Directors Academy (MINDA). It features more than 30 local and internationally renowned speakers discussing issues, challenges and potential improvements to the current PPP. Felda Global Share Volatility Due To CPO Prices KUALA LUMPUR, March 3 (Bernama) -- The volatility in the share price of Felda Global Ventures Holdings Bhd (FGV) is a reflection of crude palm oil (CPO) prices and not purely based on the firm’s financial standing. Group president and chief executive officer Datuk Mohd Emir Mavani Abdullah said as FGV is solely a plantation company, its share price moved relatively closely to that of CPO. “The company’s profit is in fact rising and our oil extraction rate has improved by 0.1 per cent,” Mohd Emir said, adding that FGV is also on track to achieve RM100 billion revenue by 2020. Mohd Emir was speaking on the sidelines of the Palm & Lauric Oils Conference and Exhibition (POC) here, Tuesday. Malindo Air Celebrates 2nd Anniversary With RM0 Fares KUALA LUMPUR-- Malaysia’s hybrid airline Malindo Air has launched a RM0 base fare promotion, valid for both domestic and international sectors in conjunction with its second anniversary which falls on March 22. The zero base fares are applicable for destinations departing from klia2 including Bangkok, Bali, Bandung, Jakarta, Singapore, Langkawi, Kota Kinabalu and Kuching, it said in a statement here Wednesday. The promo is also applicable for domestic flights from Subang Airport to Penang, Langkawi, Kota Baharu, Johor Baharu, Alor Setar, Kuala Terengganu and all other routes from major airports in the peninsular. Under this promo, only airport tax and fees are chargeable. FGV Bags ‘50 Best Global Employer Brands Award’ In Mumbai KUALA LUMPUR -- Continuous efforts to improve its human resources practices has earned Felda Global Ventures Holdings Bhd (FGV) the international “50 Best Global Employer Brands Award 2015” recently. The award ceremony, held last month at the 23rd edition of the World HRD Congress in Mumbai, India, was jointly hosted by Employer Branding Institute and World HRD Congress. The prestigious award recognised FGV’s efforts and investment in enhancing human capital development, human resources practices, policies and strategies. “We view employees are an asset and believe engaged employees are productive. Using core values like partnership, respect, integrity, dynamism and enthusiasm, we will continue to strive for excellence and achieve our group’s current and future aspirations,” said FGV Group President and Chief Executive Officer Datuk Mohd Emir Mavani Abdullah in a statement here Friday. MSM Bags Two Global Leadership Awards KUALA LUMPUR -- MSM Malaysia Holdings Bhd (MSM) and its Group Chief Executive Officer Datuk Sheikh Awab Sheikh Abod received the “Excellence in Manufacturing Sector” and the “Masterclass CEO of the Year” awards, respectively, at the Global Leadership Award 2015 held on Thursday. The sugar producer said it won the awards based on its involvement in business growth and community development, continued efforts and contributions towards nation building and global economic contributions. “Sheikh Awab was given the award for his achievement in taking MSM to the international level from a local player in the sugar industry,” said a company statement here Friday. © 2014 BERNAMA. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed in any form except with the prior written permission of BERNAMA. MALAYSIAeBiz : 9 Insight AND MYCC: ACHIEVEMENTS WAY FORWARD The Malaysia Competition Commission (MyCC) has continued to strengthen competition in the local business landscape since the enforcement of the Competition Act 2010 (CA 2010) in 2012. According to domestic trade, cooperatives and consumerism minister, Datuk Seri Hasan Bin Malek, amongst the MyCC achievements in 2014 is the increase in the number of cases solved along with continuous advocacy efforts. The Commission handled up to 40 active cases involving the pharmaceutical industry, trade associations, logistic services, and food and transportation sectors. Case decisions including undertakings in 2014 includes: 1. Final Decision on a penalty of RM10 million imposed on MAS and Air Asia. Both parties have appealed to the Competition Appeal Tribunal. 2. Final Decision on a penalty of RM252,250 imposed to an ice manufacturer. 3. Final Decision on the Sibu Bakery and Confectionary Association (SCBA) case whereby a penalty of RM 247,730 was imposed on 15 bakery product manufacturers and confectioners in Sarawak. 4. Proposed Decision on RM4.5 million penalty imposed to Megasteel Sdn Bhd, 5. Undertaking by the Pan-Malaysia Lorries Association (PMLOA) to rescind the initial intention to increase transportation charges by up to 15% . 6. Undertakings by Giga Sdn Bhd and Nexus Mega Carriers Sdn Bhd to stop any exclusive logistics activities, and remove exclusive clauses in their service agreements, which had the effect of significantly preventing, restricting or distorting fair competition. 7. Undertaking by the Malaysia Indian Hairdressing Saloon Owners Association (MIHSOA) to stop any price-fixing activities by its members. The MyCC has also conducted 31 advocacy programmes last year, to Government agencies, trade associations and industries. The Commission has also published two handbooks on bid rigging: Help Us Detect Bid Rigging and Guidelines on Fighting Bid Rigging in Public Procurement, in addition to the Guidelines on Leniency Regime and the Guidelines on Financial Penalties. A collaborative effort with the Federation of Malaysian Manufacturers (FMM) has also resulted in the development of a Competition Compliance Checklist that can be used by FMM members. Apart from that, the MyCC has also given nine policy advice regarding competition issues under the CA 2010, to the following Government agencies: 1. 2. 3. 4. 5. 6. 7. 8. 9. Malaysia Productivity Corporation (MPC); Ministry of Plantation Industries and Commodities (MPIC); Ministry of Health (MOH); Economic Planning Unit (EPU); Malaysia Central Bank (Bank Negara Malaysia - BNM); Ministry of Tourism and Culture Malaysia (MOTAC); Ministry of Education (MOE); Malaysian Communications and Multimedia Commission (MCMC); and Prime Minister’s Department. This year the Commission will focus on the small to medium enterprises (SMEs), pharmaceutical sector, professional bodies and bid rigging issues. The continuous focus on advocacy programme to the SMEs is due to the fact that, forming the bulk of businesses in Malaysia, their conduct and performance will determine the business landscape. The focus on pharmaceutical sector on the other hand, is based on the numerous complaints received last year regarding competitive issues in the sector. Meanwhile, the MyCC will enhance its collaboration with the MPC in conducting regulatory impact assessment (RIA) in the areas of competition and price fixing concerning professional bodies. This includes conducting market reviews and public consultations with the professional bodies concerned. The Commission will also work towards forging a strategic alliance with the Ministry of Finance (MOF), Malaysia Anti-Corruption Commission (MACC) and National Audit Department (NAD) to gain better understanding and collaboration in combating bid rigging issues on a national level. As a new Commission that is still developing, the MyCC will also continue its efforts on institutional and capacity building in addition to enforcing the CA 2010 to ensure a level playing field for industry players.