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MALAYSIAeBiz
WEEKLY BUSINESS ROUNDUP 16 - 20 MARCH 2015
This Week’s Highlight :
M’sia’s Aerospace Industry To Reap RM32.5
Bln Revenue By 2030
March 20, 2015
Wednesday
Malaysia Capable Of Becoming
Major Aerospace Nation - Dr M
LANGKAWI -- Malaysia is capable of
becoming a major aerospace nation
through the Malaysian Aerospace
Industry Action Plan 2030, but it
calls for continuous and relentless
efforts, former prime minister Tun Dr
Mahathir Mohamad said. “Singapore
has sophisticated aircraft, but we
took another road by mastering
manufacturing technology,” he told
reporters while visiting the Langkawi
International Maritime and Aerospace
2015 (LIMA’ 15) exhibition here
Wednesday.
Thursday
Govt To Meet Major Rating Agencies
On Nation’s Fundamentals
By Zairina Zainuddin
RMAF’S LATEST...Prime Minister Datuk Seri Najib Tun Razak (front, 5th left) posing with
Airbus A400M pilot and crew after visiting the Royal Malaysian Air Force (RMAF)’s latest asset
at LIMA 2015 recently. Also present Airbus Defence and Space CEO Bernhard Gerwert (front,
fourth left) and Defence Minister Datuk Seri Hishammuddin Tun Hussein (front, third left).
LANGKAWI -- Malaysia’s aerospace
industry is projected to contribute
revenue of RM32.5 billion by 2030. This
is in line with the launch of the Malaysian
Aerospace Industry Blueprint 20152030 in conjunction with the ongoing
Langkawi International Maritime and
Aerospace Exhibition (LIMA’15) here.
Last year, the aerospace industry
generated RM19 billion in revenue
and RM4.2 billion in investments, with
19,500 jobs created, he said in his
opening speech at the LIMA’15 Tuesday.
This Week’s Top Stories
Monday
Services Sector Blueprint Strategic
Move To Raise Productivity
KUALA LUMPUR -- Datuk Seri Najib
Tun Razak Monday launched the
Services Sector Blueprint and Logistics
and Trade Facilitation Masterplan,
which outlined the strategic steps
to optimise the sector’s contribution
to the nation’s economy. The Prime
Minister said in his speech at the
launch of the blueprint in Parliament,
the services sector was the main driver
of the economy and key generator of
job opportunities in the country and
contributed 55 per cent to the gross
domestic product (GDP) in 2014 and
provided eight million jobs.
Tuesday
Teraju To Distribute Up To RM2 Bln
Funds To TeraS Companies
PETALING JAYA -- Unit Peneraju
Agenda Bumiputera (Teraju) aims to
distribute up to RM2 billion in funds
to High-Performing Bumiputera
Companies (TeraS). “We will distribute
up to RM2 billion from the RM2.24
billion collected from four banks since
2011, to assist the companies under
the TeraS programme. “Since 2011,
RM910.63 million have been approved
to 218 TeraS companies,” Teraju chief
executive officer Datuk Husni Salleh
told reporters after a networking
session with TeraS companies here
Tuesday.
KUALA LUMPUR -- The Malaysian
government will be meeting all three
major rating agencies -- Standard
& Poor’s, Fitch Ratings and Moody’s
Investors Service -- at the World Bank
Annual Spring Meeting in Washington
on April 17 to highlight the country’s
fundamentals
stengths.Treasury
Secretary General Tan Sri Mohd
Irwan Serigar Abdullah said rating
agencies should consider Malaysia’s
implementation of the Goods and
Services Tax (GST), Economic
Transformation Programme and other
initiatives to boost the economy,
before making any ratings.
Friday
AirAsia To Sell Aircraft Worth
US$271 Mln - Fernandes
KUALA LUMPUR -- AirAsia Bhd
will sell 11 aircraft worth US$271
million (US$1=RM3.71), says Group
Chief Executive Officer Tan Sri Tony
Fernandes. “There is some blessing
in weaker currencies. Our ownership
of aircraft is now paying off. We
(are) selling 11 aircraft and leasing
them back,” he said on Twitter, the
micro-blogging site. He said gross
proceeds from the sale would amount
to US$271 million while profits would
accrue to US$45 million.
© 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 : 1
MALAYSIAeBiz
SMEbrief
ASEAN Next Economic
Powerhouse - SME Corp
By Nurul Hanis Izmir
KUALA LUMPUR -- With a population
of over 600 million and abundant
mineral resources and commodities,
ASEAN could be the next economic
powerhouse within the Asian region,
said SME Corporation Malaysia Chief
Executive Officer, Datuk Hafsah
Hashim. “ASEAN as a region has a lot
of potential. We have palm oil, rubber
and minerals, and on top of that,
the countries have almost the same
culture, which would make it easier
for business,” she told Bernama in
an interview in conjunction with the
upcoming ASEAN SME Showcase and
Conference 2015.
sessions and showcase events during
the upcoming ASEAN SME Showcase
and Conference (ASSC) 2015 to
generate about RM400 million in
potential sales. Chairman Tan Sri
(Dr) Mohamed Al-Amin Abdul Majid
told Bernama in an interview, the
ASEAN Business XchanGe Platform,
to be arranged on the sidelines of
ASSC 2015, would enable the small
and medium enterprises (SMEs) and
multinational companies (MNCs) to
forge business partnerships.
F-Secure To Focus On Local SMEs
KUALA LUMPUR -- Online security
and privacy company, F-Secure
Corp (M) Sdn Bhd, plans to focus on
the Malaysian small and medium
enterprise (SME) market. Its AsiaPacific region vice president, Paul
SME Corp Eyes RM400 Mln Sales
Palmer, said the lack of awareness of
From ASEAN Showcase
the potential threats among the SMES
By Zairina Zainudin
locally had also led the company to
aggressively introduce its products.
KUALA LUMPUR -- SME Corp Malaysia “Spending on security products by
expects the business matching the SMEs is expected to hit US$86.7
Residential Property Mart To See
Growth Q1 - iProperty
KUALA LUMPUR -- iProperty Group,
Asia’s online network of property
portals, expects the residential property
LED, SSL Sales To Hit RM200 Mln
By 2019
JITRA -- The sales from Malaysia’s
homegrown Light Emitting Diode
(LED) and Solid State Lighting (SSL)
companies are expected to hit RM200
million by 2019, International Trade and
Industry Minister Datuk Seri Mustapa
Mohamed said Wednesday. He said
LED and SSL sales rose to RM88
million last year from RM70 million
in 2013 as a result of the Ministry of
International Trade and Industry (MITI)
and SME Corp cooperation in the Green
SSL/LED Programme since 2012.
Propertyupdate
PropUP
Malaysian
Banks,
Property
Developers Resilient - Moody’s
By Siti Radziah Hamzah
KUALA LUMPUR -- The Kampung Baru
Development Corporation is carrying
out a comprehensive assessment
of land and buildings in Kampung
Baru with a consortium of six real
estate valuers.Its chief executive
officer, Naharuddin Abdullah said the
assessment, which is expected to be
completed by April or May, is aimed at
resolving disputes over the real estate
value raised by their owners.“We’ve set
up a consortium to enable landowners
to know the current market value of
real estate in Kampung Baru,” he told
Bernama in an interview recently.
million this year and grow to US$130
million by 2017,” he said after signing
a partnership agreement with Hong
Kong-based information technology
distributor, Jardine OneSolution (JOS),
Tuesday.
market to see growth in the first
quarter of this year despite the Goods
and Services Tax (GST) implementation
on April 1. “We believe in the long run,
perhaps 12 months later, the market
will be strong as Malaysians become
acquainted with it (GST),” iProperty
managing director and chief executive
officer Georg Chmiel said Monday.
No GST On Commercial Unit
Rentals Under RM500,000
KUALA LUMPUR -- The Goods and
Services Tax will not be imposed on
rentals of commercial units below
RM500,000 a year, says Prime
Minister Datuk Seri Najib Tun Razak.
“The exemption has been extended
to cover all categories of stratified
houses, meaning any fees imposed
by management bodies and joint
management bodies (JMBs) on
maintenance
and
management
including sinking fee contributions
are exempted from the GST,” he said
in his written reply to Ng Wei Aik
(DAP-Tanjong), in the Dewan Rakyat,
Tuesday.
1MDB Real Estate, Aussie Firm In
TRX Lifestyle Quarter Tie-Up
KUALA LUMPUR - 1MDB Real Estate
and Australian headquartered Lend
Lease, have sealed their partnership
to develop the Tun Razak Exchange’s
(TRX) lifestyle quarter, which will have a
forecast gross development value (GDV)
of RM8 billion upon completion. 1MDB
Real Estate, the master developer for
the TRX, will own 40 per cent of the
partnership and Lend Lease, the rest.
“With this Lifestyle Quarter partnership
sealed, 1MDB Real Estate will focus
on delivering major infrastructure
upgrades for the TRX and the Imbi
area, said 1MDB chief executive officer
Datuk Azmar Talib Thursday.
© 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
MARKET
in the conventional system eased to
RM21.90 billion from the RM22.88
(Ringgit : Foreign Currency) billion estimated earlier, while in the
Scoreboard
Islamic system, it fell to RM4.37 billion
Buying Selling from RM9.60 billion. In the morning,
Gainers - 325
BNM called for five tenders of a
3.7255 3.0285 conventional money market, two repo
USD
Losers - 471
3.9811 3.9858 and two Al-Wadiah. The central bank
EUR
also conducted a late conventional
Not Traded - 660
5.4932 5.4988 money market tender for RM21.1
GBP
Unchanged - 314
billion and a RM4.3 billion Al-Wadiah
100 YEN 3.0802 3.0837 money market tender, both for threeValue - 3141262394
day money. The overnight Islamic
2.6825 2.6849 reference rate stood at 3.21 per cent,
SGD
Volume - 21239568
while the one-week,two and threeSource: Bank Negara Malaysia
week rates stood at 3.28 per cent,
FOREX:
Ringgit
Ends
Lower
Against
3.32 per cent and 3.36 per cent,
BURSA: KL Shares Close Easier
respectively.
KUALA LUMPUR -- Share prices on US Dollar
Bursa Malaysia ended lower Friday By Joan Santani Santanasamy
in sync with most Asian bourses,
taking cue from the fall on Wall Street KUALA LUMPUR -- The ringgit ended KLIBOR Futures End Untraded
overnight. At 5pm, the FTSE Bursa lower against the US dollar Frioday on KUALA LUMPUR -- The three-month
Malaysia KLCI closed 5.48 points worries over a possible downgrade in Kuala Lumpur Interbank Offered Rate
lower at 1,803.65 after moving in a credit ratings and low crude oil prices. (KLIBOR) futures contracts on Bursa
broad range of between 1,798.74 At 5pm, the local currency ended at Malaysia Derivatives closed untraded
and 1,806.90 throughout the day. 3.7255/0285 against the greenback Friday. Both April 2015 and May 2015
Regionally, Hong Kong’s Hang Seng from 3.7030/0080 on Thursday. Affin stood at 96.25, while June 2015 and
Index contracted 93.65 points to Hwang Investment Bank head of retail September 2015 were pegged at
24,375.24, The Asia Dow index research and vice-president Datuk Dr 96.28 and 96.27 respectively. Open
slid 6.96 points to 3,233.87 while Nazri Khan Adam Khan, however, told interest totalled 920 contracts. At the
Singapore’s STI Index gained 27.48 Bernama that the ringgit was extremely 11 am fixing, the underlying threepoints to 3,413.64. On the broader undervalued and did not reflect on month KLIBOR stood at 3.76 per cent.
market, losers thumped gainers Malaysia’s economic fundamentals.
by 471 to 325 with 314 counters The local note was traded mostly lower KLCI Futures Contracts Close
unchanged, 660 untraded and 12 against a basket of major currencies. The Mostly Higher
others suspended. Total volume ringgit eased against the Singapore dollar KUALA LUMPUR -- The FTSE
decreased to 2.12 billion shares to 2.6825/6849 from 2.6719/6769 on Bursa Malaysia KLCI (FBM KLCI)
worth RM3.14 billion from 2.21 Thursday and weakened against the futures contracts on Bursa Malaysia
billion shares worth RM1.84 billion yen to 3.0802/0837 from 3.0674/0728 Derivatives were mostly higher at the
on Thursday. Main Market volume Thursday. The local unit improved to close Friday despite the lower cash
increased to 1.38 billion shares worth 5.4932/4988 against the British pound market. Spot month March 2015
RM3 billion from Thursday’s 1.17 from 5.4934/4023 on Thursday, and fell rose two points to 1,812.5 and April
against the euro to 3.9811/9858 from 2015 added 1.5 points to 1,809.5.
billion units worth RM1.66 billion.
3.9459/9527 Thursday.
September 2015 was 5.5 points lower
at 1,798.5. Turnover fell to 7,935 lots
Money-Market: Short-Term Rates from 9,189 lots on Thursday while
Stable On BNM’s Intervention
open interest depreciated to 47,466
KUALA LUMPUR -- Short-term interbank contracts from 51,033 contracts. The
rates ended stable Friday on Bank benchmark FBM KLCI ended 5.48
Negara Malaysia’s (BNM) intervention points easier at 1,803.65.
to reduce excess liquidity in the
financial system. The liquidity surplus
Exchange Rate
http://images.BERNAMA.com
/foto/shopping/
© 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
Johor Sultan Becomes REDtone’s
Biggest Individual Shareholder
KUALA LUMPUR -- REDtone
International Bhd welcomes the
Sultan of Johor, Sultan Ibrahim
Sultan Iskandar as its single largest
individual shareholder with a 20 per
cent stake. In a statement Monday,
REDtone said Sultan Ibrahim had
been steadily accumulating shares in
REDtone over the past one year and
prior to the warrants and Irredeemable
Convertible Unsecured Loan Stocks
(ICULS) conversion, he held a 4.8 per
cent stake in REDtone.
CIMB-Principal Expects New
Fund To Reap RM300 Mln Sales
KUALA LUMPUR -- CIMB-Principal
Asset Management Bhd (CIMBPrincipal) expects its new CIMBPrincipal ASEAN Total Return Fund
to bring in RM300 million in sales.
“We firmly believe the CIMB-Principal
ASEAN Total Return Fund will enable
investors to benefit from the economic
strength in ASEAN, which is expected
to grow at a faster rate compared
to major developed nations,” chief
executive officer of CIMB-Principal,
Munirah Khairuddin, said in a
statement Monday.
Asia Brands Issues RM100 Mln
Unrated Sukuk
KUALA LUMPUR -- Apparel and
innerwear retailer, Asia Brands Bhd
Group has issued its first unrated
sukuk of RM100 million in nominal
value. The sukuk, issued by its whollyowned unit, Anakku Sdn Bhd, was
pursuant to a RM200 million sukuk
programme with tenor of up to 15
years, which were fully subscribed by
a number of key financial institutions,
it said in a statement Monday.
MALAYSIAeBiz
Economic Forum (WIEF) has increased
its trade with Islamic countries
to US$45.8 billion in 2014 from
US$18.5 billion in 2005. Minister
of International Trade and Industry,
Datuk Seri Mustapa Mohamed said
in a written reply in Parliament
Tuesday, joint-venture projects sealed
by Malaysian companies during
the conference from 2008 to 2014
amounted to RM39.2 bilion.
Banking Sector Leads In Global
Data Leakage - Infowatch
KUALA LUMPUR -- The banking and
financial services industry is at high
risk for data leakage with over 40 per
cent of leaked personal data globally,
according to the Infowatch Global
Data Leakage Report 2014. Its Chief
Executive Officer Natalya Kaspersky
said Tuesday, the industry was
involved in the leakage of 313 million
personal data attributed to 135 cases
reported last year.
BNM Appoints New Members Of
Small Debt Resolution Panel
KUALA LUMPUR -- Bank Negara
Malaysia (BNM) has appointed new
committee members for the Small
Debt Resolution Committee, effective
March 1, 2015. In a statement
Tuesday, BNM said former president/
chief executive officer (CEO) of Credit
Guarantee Corp Malaysia Bhd, Datuk
Wan Azhar Wan Ahmad, has been
appointed chairman of the committee
to succeed Md Yusof Hussin. Md Yusof
retired after serving the committee for
over 10 years.
Prasarana Successfully Prices
RM2 Bln Sukuk Murabahah
Issuance
KUALA LUMPUR -- Prasarana
Malaysia Bhd has successfully priced
the issuance of RM2 billion in nominal
Malaysia’s Participation In WIEF value Islamic medium term notes
Helps Boost Trade
comprising a five-year tranche of
KUALA LUMPUR -- Malaysia’s RM700 million in nominal value, 10participation in the World Islamic
year tranche of RM200 million and
15-year tranche of RM1.1 billion. In
a statement Wednesday, it said, CIMB
Investment Bank Bhd (CIMB), Kenanga
Investment Bank Bhd (Kenanga) and
RHB Investment Bank Bhd (RHB) are
the joint lead arrangers for the Sukuk
Murabahah programme.
Fitch
Ratings
Downgrade
No Reflection Of M’sia’s
Fundamentals
KUALA LUMPUR --The likelihood of
Fitch Ratings downgrading Malaysia’s
rating does not reflect the country’s
true economic fundamentals, says
Minister in the Prime Minister’s
Department Datuk Seri Abdul Wahid
Omar. “Our task is to ensure our
economy and financial structure
continue to be strong and based on
a competitive economic structure,”
he told reporters after presenting his
keynote address and prizes at the Aon
Hewitt Best Employers-Malaysia 2015
here Thursday.
US Financial Firms Continue
Collaboration
With
ASEAN
Finance Ministers
By Massita Ahmad
KUALA LUMPUR -- A delegation of
ten member companies of the USASEAN Business Council’s Financial
Services Committee (FSC) began its
annual mission to the ASEAN Finance
Ministers Meeting (AFMM) Friday. The
delegation plans to discuss regional
capital market developments, the
digitisation of financial services and
data management and, financial
inclusion with the ministers of finance
at a working luncheon Saturday.
Delegates believe a successful
collaboration on these issues can
quickly enhance financial services in
ASEAN to facilitate regional growth,
integration and development.
© 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
Malaysian Economy Stable
Despite Debt-To-GDP Ratio At 50
Pct
PETALING JAYA --The Malaysian
economy is stable despite the
national debt-to-gross domestic
product (GDP) ratio at over 50 per
cent, said Deputy Finance Minister
Datuk Chua Tee Yong. He said
Monday, other factors, besides
economic ones, must be taken into
account when looking at a country’s
economic situation and not only
focused on its national debt.
“The government is looking at other
indicators such as the inflation at 3.2
per cent and the unemployment rate
still at a low level.
MTIB Aims Timber Exports To
Grow 5 Pct To RM21 Bln
By Mohd Noor Azeery Idris
KUALA LUMPUR -- The Malaysian
Timber Industry Board (MTIB)
targets exports of timber and timber
products to grow five per cent to
between RM21 billion and RM22
billion this year.Director General Dr
Jalaludin Harun said exports last year
stood at RM20.5 billion, up 5.1 per
cent over 2013. Wooden furniture
was the biggest contributor to the
exports at 31 per cent at RM8.01
billion, followed by plywood at 25
per cent.“The rise in exports was
also driven by higher value added
from wood-based products such
as furniture, mouldings, floorings
and doors,” he told Bernama after
appearing on BernamaTV’s Ruang
Bicara programme recently.
The BOTTOM Line
Palm Oil Product Exports Down
42.1 Pct
KUALA LUMPUR -- Malaysia’s palm
oil product exports to Iran dropped
by 42.1 per cent to 447,058 tonnes
in 2014, from 635,258 tonnes in
2013, said Plantation Industries and
Commodities Minister Datuk Amar
Douglas Uggah Embas. He said
Monday, overall, exports of Malaysian
palm products fell by 36 per cent to
515,231 tonnes last year.
CPO Export Tax To Be Raised To
4.5Pct In April
By S. Joan Santani
KUALA LUMPUR -- The crude palm
oil (CPO) export tax will be raised
to 4.5 per cent from April 2015,
says Royal Customs Department.
According to its circular, which was
posted on Malaysian Palm Oil Board
(MPOB) website, for April, the price
range was expected to be between
RM2,250 and RM2,400 per tonne.
MPOB said Monday, the Customs
Department would raise the tax if the
reference price of the exports was
above RM2,250 per tonne. Currently,
the reference price is RM2,288.41
per tonne.
AIA Sees Growth Opportunity In
Malaysia
KUALA LUMPUR -- Life insurer AIA
Bhd sees a growth opportunity in
Malaysia in takaful and investmentlinked products, and intends to close
the gap of average sum assured per
person in the country. Chief Executive
Officer Bill Lisle said Monday, the
company’s key focus is to close
the protection gap to an average
sum assured per person to at least
RM200,000 from RM38,500.
Glomac Q3 PBT Rises To RM42.5
Mln
KUALA LUMPUR -- Glomac Bhd’s
pre-tax profit for the third quarter
ended Jan 31, 2015 rose 19.8 per
cent to RM42.5 million compared
to RM35.5 million in the same
quarter last year, boosted by fair
value gain on investment properties.
In a statement Wednesday, Glomac
said revenue fell to RM111.0 million
from RM183.7 million previously,
due to the completion of Damansara
Residences at Glomac Damansara
as well as tail-end projects in Bandar
Saujana Utama.
Putrade Targets PWTC To Record
40 Pct Growth
KUALA LUMPUR -- Putrade Property
Management Sdn Bhd targets Putra
World Trade Centre (PWTC) to record
a 40 per cent increase in profit
this year. Its Chief Executive Officer
Datuk Maxson Abdullah Jaafar said
Tuesday, the target was due to the
high demand for services offered
by PWTC such as provision of halls,
convention centre and exhibition
centre.
Govt Targets RM100 Mln Sales
From LED/SSL Firms
KUALA LUMPUR -- The government
is looking at sales revenue of up
to RM100 million this year from
Malaysia’s home-grown LED/Solid
State Lighting (SSL) companies,
compared with the RM88 million
recorded in 2014. International
Trade and Industry Minister (Miti)
Datuk Seri Mustapa Mohamed said
Wednesday, the objective is to grow
Malaysia’s LED industry to support
the domestic, as well as the ASEAN
and global markets.
© 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
MITI Confident GST
Implementation Can Boost
Investment Climate
LEDANG (Johor) -- The Ministry of
International Trade and Industry (MITI)
is confident the implementation of
the Goods and Services Tax (GST)
from April 1 will boost the investment
climate in the country. Deputy
Minister Datuk Ir Hamim Samuri
said Wednesday, this was because
foreign investors and traders would
be more confident with this tax
which has long been practised in
their countries.
Top Glove Plans To Buy 2
Companies This Year
KUALA LUMPUR -- Top Glove
Corporation Bhd, the world’s largest
rubber gloves manufacturer, plans
to acquire one or two companies
this year as part of its merger
and acquisition (M&A) strategy.
Chairman Tan Sri Lim Wee Chai
said Wednesday, the company
was interested to acquire existing
rubber glove factories, preferably
a Malaysian company for easy
operation control.
LIMA ‘15 Sees RM9.3 Billion Of
Contracts - Hishammuddin
LANGKAWI -- The Langkawi
International Maritime and Aerospace
Exhibition 2015 (LIMA’15) saw a total
of RM9.3 billion worth of contracts,
memoranda of understanding (MoU),
letters of acceptance (LOA) and
letters of Intent (LOI) signed Thursday.
Malaysian Defence Minister Datuk
Seri Hishammuddin Tun Hussein,
who announced this on the final
day Thursday for LIMA’15 trade
delegations, said the value was
The BOTTOM Line
higher than the RM4.2 billion at the a higher total industry volume (TIV)
previous edition of LIMA.
of 700,000 units for this year, driven
by consumers demand for cars.
Sales Growth Boosts Top Glove’s Chief Executive Officer Mohamad
Q2 PBT To RM69.59 Mln
Madani Sahari said Thursday, the
KUALA LUMPUR -- Top Glove TIV forecast was in tandem with
Corporation Bhd’s pre-tax profit for the implementation of the Goods
the second quarter ended Feb 28 and Services Tax (GST) on April 1.
surged 17.8 per cent to RM69.59 “The GST should stimulate demand
million from RM50.11 million in the for vehicles by reducing prices with
corresponding quarter a year ago the abolishment of the Sales and
- thanks to higher sales growth. Services Tax.
The world’s largest rubber glove
manufacturer’s revenue increased to BHIC Units Bag Over RM111 Mln
RM572.25 million from RM548.27 Defence Contract
million in the corresponding period KUALA LUMPUR -- Boustead Heavy
last year. During the quarter, sales Industries Corporation Bhd (BHIC)’s
grew 5.3 per cent year-on-year on associate company, Boustead Naval
the back of higher sales volume Shipyard Sdn Bhd (BNS) has secured
stemming from more natural rubber A RM96.3 million contract from
and nitrile glove sales, it said in a the Defence Ministry. In a filing to
statement Wednesday.
Bursa Malaysia Thursday, BHIC said
the contract was for the supply and
Weststar Group Buying 4 Copters delivery of spares, maintenance,
Worth RM150 Mln
integrated logistics support and
By Kenny Teng Khoon Hock and training for the 17th Patrol Vessel
Mohd Haikal Mohd Isa
Squadron of the Royal Malaysian
Navy (RMN).
LANGKAWI -- Weststar General
Aviation, a company that provides Suria Hot Spring Resorts
charter services, aims to strengthen Bentong To Generate RM4.2 Mln
its market share following the signing Sales
of two contract orders for four By Noor Shamsiah Mohamed
helicopters worth RM150 million.
KUANTAN -- Suria Hot Spring Resorts
Weststar Group Managing Director Bentong, which opened for business
Tan Sri Syed Azman Syed Ibrahim said a month ago, expects to generate
Wednesday, the first contract order RM4.2 million in sales annually. It
was signed with AgustaWestland for is the sixth resort operated by Suria
the purchase of three new generation Resorts Management Sdn Bhd after
helicopters worth RM90 million.
two resorts in Pahang and one each
in Terengganu, Johor and London,
MAI Expects Higher TIV With
Sales Manager Haris Fadzillah Hamat
GST Implementation
said Friday.
KUALA LUMPUR -- The Malaysian
Automotive Institute (MAI) expects
© 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
Probability Of An Individual
Influencing Ringgit Is Small
- Najib
KUALA LUMPUR -- The probability
of an individual to influence the
value of the ringgit aimed at
sabotaging the country’s economy
is small as the average daily
activity for the ringgit involved a
huge transaction.Prime Minister
Datuk Seri Najib Tun Razak told
the Dewan Rakyat that last year
the average daily activity for the
ringgit amounted to US$11.8
billion (RM43.71 billion).“Based
on such a huge transaction, the
probability for an individual to
influence the value of the ringgit
is very small,” he said in a written
reply in Parliament Monday.
Studies Show A Need To
Reinstate CPO Tax Regime
KUALA LUMPUR -- The 4.5 per cent
export duty on Malaysian crude
palm oil (CPO) for April 2015, has
taken into account various studies
that suggest the tax regime needs
to be restored, says Plantation
Industries and Commodities
Minister, Datuk Amar Douglas
Uggah Embas.He said Monday, the
rate to be enforced was calculated
based on the average CPO price
of RM2,288 per tonne during the
first two weeks of March, with the
threshold CPO tax of RM2,250 per
tonne.
Customs Dept Targets 17,000
Firms To Sign Up For GST
MELAKA -- The Royal Malaysian
Customs Department targets
another 17,000 companies to
register for the Goods and Services
Tax (GST) before its implementation
next month.Its director-general,
Datuk Seri Khazali Ahmad, said
Monday, until now, 352,263
companies
nationwide
had
registered for GST and the figure
was expected to reach 370,000
firms next month.
Kedah Set To Build
Affordable Houses Using New
Technology
KUALA LUMPUR -- The Construction
Industry Development Board (CIDB)
hopes to conclude discussions
with a state government agency
in Kedah by year-end to build 200
affordable houses using Bayer
MaterialScience’s
lightweight
polyurethane composite panels.
CIDB Chief Executive Officer
Datuk Seri Judin Abdul Karim
said Monday, the new technology
would translate into savings in
time and costs, as the solution
enabled construction time can be
reduced by as much as 35 per cent
compared with precast concrete.
KAYM Moves To Produce 0&G
Expertise
By Almas Amanda Abdul Razak
MELAKA -- The International
College of Yayasan Melaka-ICYM
(KAYM) is now venturing into
producing expertise for the oil and
gas (O&G)industry which is a key
pillar of Malaysia’s economy.Chief
Executive Officer Datuk Saroni
Judi said Monday, to realise this
objective, KAYM will establish
a special training academy, the
“ICYM Weldzone Oil and Gas
Academy”, for the sector in Lumut,
Perak.
Two Companies Order Four
EV-55 Aircraft From Evektor
LANGKAWI -- Aircraft manufacturer
Evektor Tuesday signed two
Memorandum of Understanding
(MoUs) with Senai Airport Terminal
Services Sdn Bhd (SATS) and APFT
Services Sdn Bhd (APFT) at the
Langkawi International Maritime
and Aerospace Exhibition 2015
(LIMA’15). In a statement, Evektor
said the MoU with SATS was for
the purchase two Evektor EV-55
aircraft worth US$6 million, which
will be delivered in 2017, for
training and charter services.
New Airline Flymojo To
Enhance Air Connectivity
By Nor Baizura Basri and Mohd
Iswandi Kasan Anuar
JOHOR BAHARU -- Flymojo, the new
player in Malaysia’s airline industry,
will increase air connectivity and
competition in the skies.The airline
Tuesday sealed a US$1.47 billion
(RM5.44 billion) agreement with
Canada’s Bombardier Commercial
Aircraft to acquire 20 CS100
aircraft.The first customer and
operator of the CS100 aircraft in the
region, will be based out of Johor
Bahru, Johor and Kota Kinabalu,
Sabah.The announcement was
made at the Langkawi International
Maritime and Aerospace exhibition
in the presence of Prime Minister
Datuk Seri Najib Tun
Razak.
More BRT Could Be Built At
Various Locations - Prasarana
By Azizul Ahmad
PETALING JAYA -- With the pilot
project of the elevated Bus Rapid
Transit (BRT) Sunway Line set to
be operational by June 9 this year,
Prasarana Malaysia Bhd (Prasarana)
says more can be expected to be
built at various locations in the
future.Prasarana’s Group Chairman
Tan Sri Ismail Adam said Tuesday,
being a breakthrough in Malaysia’s
public transport system, the BRT will
set the standard for other similar
projects in this country.
Malaysia Needs Stronger
Aerospace Players - Mustapa
LANGKAWI -- Malaysia needs to
strengthen the capabilities of its
aerospace players to support the
growth of the industry, International
Trade and Industry Minister Datuk
Seri Mustapa Mohamed said
Tuesday. He said as Malaysia
aspires to become number one
aerospace nation in Southeast Asia
and an integral part of the global
market by 2030, there should be a
© 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
strong will and commitment on the
part of local companies to expand
their capacities and capabilities.
Three New Faces Among Top
Richest Malaysians
KUALA LUMPUR -- Three new faces
are among top richest Malaysians
in the Malaysian Business’ 40
richest Malaysians 2015 list.
They are Sabah-born Ong Beng
Seng, who jumps to seventh
spot from 12th, Rimbunan Hijau
Group’s shareholder Tan Sri Tiong
Hiew King (ninth from 11th) and
Hap Seng Consolidated Bhd’s
shareholder Tan Sri Lau Cho Kun
(10th from 14th). Ong, the founder
of Singapore’s Hotel Properties
Ltd, is worth RM6.63 billion this
year, an increase of RM3.53 billion.
Tiong and Lau’s wealth were
calculated at about RM5.10 billion
and RM4.90 billion respectively,
Malaysian Business said in a
statement Tuesday.
Give Serious Attention To
Healthcare, Employers Told
By Nurunnasihah Ahmad Rashid
KUALA LUMPUR -- Healthcare is
an important issue and enployers
should give it serious attention as
the productivity of the workers of
any organisation depends on it, said
US Chamber of Commerce senior
vice-president, Asia Department
International Affairs Division,
Tami Overby. She said Tuesday,
the governments and employers
should introduce guidelines to
promote health issues at the
workplaces in order to contribute
towards healthier and productive
workforce, both physically and
mentally.
MIAT To Expand Role To
Include Commercial MRO
By Azlee Nor Mahmud and Mohd
Haikal Mohd Isa
LANGKAWI -- Malaysian Institute of
Aviation Technology Sdn Bhd (MIAT)
will expand its role from providing
aviation training to spearheading the
commercial aviation maintenance,
repair and overhaul (MRO) services
in Malaysia. The new entity, named
Asia AeroTechnics Sdn Bhd (AAT),
was formed in December 2014 and
is targeted to commence operations
by the third quarter of 2015. AAT, a
wholly-owned subsidiary of Majlis
Amanah Rakyat (MARA), will be
among the key players within Asia
Aerospace City (AAC), the aerospace
hub in Subang.
Thales Delivers AMASCOS
Mission Systems To RMAF
LANGKAWI -- Thales has delivered
the first of two further AMASCOS
mission systems to the Royal
Malaysian Air Force (RMAF). In a
statement Wednesday, Thales said
the AMASCOS was to support the
conversion of four RMAF’s Beech
200 aircraft to a highly-capable
maritime surveillance platform, due
to enter service next year.
SCGM Starts Production From
New Plastic Cup Plant
KUALA LUMPUR -- SCGM Bhd, a
manufacturer of thermo-vacuum
form and vacuum plastic packaging,
has commissioned its Kulai, Johor
plastic cup manufacturing plant in
March. In a statement Wednesday,
SCGM said it had invested RM11.6
million in the new machinery and
construction of the plant within its
existing premises.
LME To Issue Notice On
Warrants If No Response From
Malaysia
By Harizah Hanim Mohamed
KUALA LUMPUR -- The London
Metal Exchange (LME) will issue a
notice on or shortly after Apr 1, 2015
to confirm that no further warrants
may be issued in Johor Port and Port
Klang with effect from July 1, it said
in a circular dated March 16. The
exchange will act if it was unable to
obtain positive confirmation by April
1 from the Malaysian authorities
that transactions and storage
charges related to its warranted
stocks in the warehouses will not
be subjected to Goods and Services
Tax (GST). “The LME will be
additionally be contacting directly
those warehouse companies listed
in Port Klang and Johor, together
with the relevant port authorities,
regarding this issue,” said its head
of Physical Operations Department,
Robert Hall Wednesday.
MITI Outreach Programme
To Strengthen Rural
Entrepreneurs
KEMAMAN -- The Outreach
Programme just introduced by
the Ministry of International Trade
and Industry (MITI) and agencies
under the ministry would go a long
way in strengthening Bumiputera
and rural entrepreneurs. Deputy
Minister Datuk Hamim Samuri
said Wednesday, under the
programme, the ministry can
approach entrepreneurs to provide
them with information on business
opportunities and government
assistance available for them.
AgustaWestland, PWNE, CAE
Tie-up To Assess Copter
Simulation Market
LANGKAWI -- AgustaWestland
Malaysia Sdn Bhd, a wholly-owned
unit of AgustaWestland, today inked
a memorandum of understanding
(MoU) with PWN Excellence Sdn
Bhd (PWNE), a strategic partner of
National Aerospace and Defence
Industries, and CAE Canada to
evaluate the introduction of both
AW169 and AW189 Full Flight
Simulators (FFS) in Malaysia.
AgustaWestland vice-president of
Asia Pacific Vincenzo Alaimo said
Wednesday, under the MoU, the
companies would evaluate the
market for AW169 and AW189
helicopters in the region, the
resulting demand for FFS hours
as well as developing a business
case.
© 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
AmInvestment Bank Wins Awards
At Islamic Finance News Deals
KUALA LUMPUR -- AmInvestment
Bank Bhd has won two awards at the
Islamic Finance News (IFN) Deals of the
Year 2014 on March 9. In a statement
Monday, the bank said the awards were:
Malaysia Deal of the Year and the Real
Estate Deal of the Year.AmInvestment
Bank said the recognition was based on
its outstanding structuring capabilities
in KLCC Real Estate Investment
Trust’s (REIT) special-purpose vehicle,
Midciti Sukuk’s RM1.555 billion Sukuk
Murabahah issuance.
Eversendai Unit Bags RM246 Mln
Contracts In Saudi Arabia
KUALA LUMPUR -- Engineering
and construction service provider,
Eversendai Corporation Bhd, has
bagged two new contracts worth
RM246 million through its unit,
Eversendai Engineering Saudi LLC,
in Saudi Arabia. Under the contract,
Eversendai will construct the East,
North and South Depots of the Riyadh
Metro project - Package 1 (Lines 1
and 2) for the Riyadh Development
Authority, it said in a statement Monday.
Phase Two Pengerang Terminal To
Be Completed Q2, 2018
KOTA TINGGI -- The construction
of phase two of the RM9 billion
Pengerang Independent Terminal near
here is expected to be completed in the
second quarter of 2018. Pengerang
Independent Terminals Sdn Bhd (PITSB)
chairman Tan Sri Dr Ngau Boon Keat
said Monday, the engineering work
of the project, made up a crude oil
storage and a deep water jetty, started
last year.
GBGAQRS, Suria Undertake RM1.8
Bln Waterfront Project
KUALA LUMPUR -- Gabungan AQRS
Bhd (GBGAQRS) and Suria Capital
Holdings Bhd (Suria) have formalised a
joint venture agreement to undertake
a prime mixed development on a 2.8
hectare (ha)site within the vicinity of
Kota Kinabalu Port with an estimated
MALAYSIAeBiz
Net Sale Value (NSV) of RM1.8 billion.
In a joint statement Monday, they said
the project, named One Jesselton
Waterfront, was aimed at capturing
a slice of Sabah’s sizeable property
market potential. The land parcel was
part of the 9.41 ha allocated to Suria
by the state government.
MAHB, NADI Sign Pact To Enhance
Aerospace Industry
LANGKAWI -- Malaysia Airports
Holdings Bhd (MAHB) has signed a
long-term concession agreement
with National Aerospace and Defence
Industries (NADI) to support the
government’s initiative to enhance the
development of aerospace industry in
Malaysia. MAHB managing director
Datuk Badlisham Ghazali said Tuesday,
the agreement would allow NADI
to develop about 5.6 hectares at
Lapangan Terbang Sultan Abdul Aziz
Shah in Subang.
NAICA To Start Operations In May Mustapa
LANGKAWI -- The National Aerospace
Coordinating Agency (NAICA) to
be established under the Ministry
of International Trade and Industry
will start operations in May this
year. Minister Datuk Seri Mustapa
Mohamed said Tuesday, the agency
will be tasked with coordinating the
implementation of measures and
programmes stipulated in theNational
Aerospace Industry Blueprint.
Malaysia To Host 1AES In
November To Reinforce AEC
PUTRAJAYA
-1ASEAN
Entrepreneurship Summit (1AES) will
be held for the first time in November in
conjunction with Malaysia taking over
the Chairmanship of ASEAN in 2015. It
will take place for three days from Nov
20 at the Kuala Lumpur Convention
Centre. The programme will focus
on entrepreneurship development
especially among the young people,
said Director of National Strategy
Unit of the Ministry of Finance, Datuk
Dr Sundaran Annamalai, to reporters
ahead of the 19th ASEAN Finance
Ministers’ Meeting and Related
Meetings (AFMM).
Petron Malaysia Completes
Rebranding, Upgrading Exercise
KUALA LUMPUR -- Petron Malaysia
has completed the rebranding and
upgrading programme of its retail
network of over 550 service stations.
Its parent company, the Philippinesbased Petron Corporation has invested
over US$600 million to acquire a
majority stake in Petron Malaysia
Refining and Marketing Bhd (PMRMB),
as well as, ownership of Petron Fuel
International Sdn Bhd and Petron
Oil (M) Sdn Bhd. Petron Malaysia,
comprising the three companies,
in a statement Tuesday, said its
investments in the country would
reach over US$1 billion in the next few
years, given its continuous network
expansion programmes.
CIMB Named Best Bank In AsiaPac
By IDC
KUALA LUMPUR -- CIMB Group,
ASEAN’s leading universal banking
group by asset size, was named the
Best Bank in Asia Pacific in the IDC
Financial Insights Innovation Award
(FIIA) for 2015. This is in recognition
of the firm’s revolutionary initiatives in
becoming a super-regional franchise
and technology powerhouse within the
region. The announcement was made
during the Asian Financial Services
(AFS) Congress in Singapore recently.
Aireen Omar Listed In ‘25 Most
Influential Women In Treasury’
KUALA LUMPUR -- AirAsia Bhd Chief
Executive Officer Aireen Omar has
been named one of the ‘25 Most
Influential Women in Treasury’ by the
inaugural Women in Treasury Summit
held in Singapore Tuesday. The
award honours Aireen’s commitment
to improving the fortunes of the
company and its finance and treasury
operations, said Daniel Flatt, editor of
The Corporate Treasurer magazine.
© 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
By Siti Hawa Othman
KUALA LUMPUR (Bernama) ­­If the
central bank governor is confident of the
economy, why shouldn’t we? After all,
she has provided ample facts and figures
to prove that the fundamentals are intact.
As it is, the focus should not always be
on uncertainties and vulnerabilities, but
also on strengths and certainties.
Focus On Economic
Certainties Rather Than
Vulnerabilities
For Bank Negara Malaysia Governor Tan
Sri Zeti Akhtar Aziz, the central bank has
been apt and alert to ensure that a strong
financial system is in place to respond to
problems and challenges. At a recent
editors briefing prior to the release of
the 2014 Bank Negara Malaysia Annual
Report, she stressed on the need to
highlight the certainties.
In that, the economy is on a steady
growth path with a low unemployment
rate of below three per cent, a high level
of reserves, a solid banking system and
a high rate of national savings.
MISPERCEPTION AFFECTS THE
RINGGIT
The Malaysian economy is expected
to grow between 4.6 and 5.5 per cent
this year after expanding six per cent in
2014 and 4.7 per cent in 2013. However,
the misperception over Malaysia has
been overblown and all the noise and
uncertainties would consequently affect
the ringgit.
The local currency had briefly touched
the 3.7­level on Tuesday before ending
3.684 against the US dollar on Friday.
It was at the 3.65­level last week. If, for
example, Europe were to have a rate cut,
a reversal of capital would occur and the
ringgit could not adjust to the situation,
she said, then the economy would need
to adjust to it.
Explaining this, she said, In Europe,
Greece, Spain are pegged to the euro.
They cannot adjust and depreciate
the euro because the euro has other
economies that are strong like Germany,
so they have to adjust internally ( to the
economy ), she said.
Bank Negara Governor Tan Sri Dr Zeti Akhtar Aziz (2nd, right) receiving the ‘Shariah NonCompliance Risk & Legal Documentation in Islamic Finance’ book from Prof Dr Ahcene Lahsasna
(second, left) at the launch of the Shariah Centre of Excellence at INCEIF in Kuala Lumpur on Feb
24, 2015.
SUFFICIENT RESERVES
What is happening to the currencies now,
including the ringgit, is due to global
events and is not unique. “We depreciate
more because we are perceived to have
the oil sector as being predominant.
Due to our deeper financial system, we
receive larger inflows so we could also
see larger reversals, hence, we need
larger reserves,”she said.
But the country has buffers in the
exchange rates and reserves. Currently,
the volume of daily operations of
exchange rate is 10 billion dollars a
day. This volume of transaction reflects
the assessment of Malaysia’s actual
economic conditions. “We have sufficient
reserves”, she said.
Being a net exporter of oil, the ringgit is
hardest hit by perception, but many are
not aware of the highly diversified nature
of the economy, structure of exports and
government revenue. Malaysia has a
diversified economic structure whereby
services and manufacturing accounted
for two­thirds of the economy with
commodities having a small part.
CHALLENGING ENVIRONMENT
Nevertheless, she admitted that the
external environment is going to be
challenging in 2015. This is because
growth in developed countries, though
improving, is not to the extent that is
expected. Arising from this and slower
growth elsewhere, there is uncertainty
in the policy environment with some
countries moving towards normalising
by increasing their rates, while others
reducing their rates and becoming more
accommodative, she said.
This uncertainty has contributed to the
volatility in international markets, thus
affecting Malaysia. But Malaysia has
experienced episodes of large capital
outflows before. What is important to
emphasise is that despite the volatility of
capital flows, conditions in the domestic
financial market and foreign exchange
market have remained orderly.
“There is no disruption to financial
intermediaries, and this largely due to the
resilient banking system and the fact
that we have a well­developed financial
market,” Zeti said.
-- BERNAMA