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.