Business Business en Sapura Energy bags EPCIC job in Sarawak
The group told Bursa Malaysia that the contract scope of work comprises EPCIC of an offshore integrated central gas processing platform facility in Block SK320, offshore waters of Sarawak. It is expected to be completed by third quarter of 2021.

Sapura Energy expects the contract to contribute positively towards its earnings for the financial year ending January 31, 2019 and the financial periods thereafter within the duration of the contract.

At the noon break, its shares were up 1.5 sen or 3.1% to 50 sen on some 41.32 million shares done.]]>
Business Wed, 21 Mar 2018 06:06:18 +0000 534377 at
GFM Services targeting double-digit growth in profit, revenue in 2018
"We expect to complete the exercise in the early second half of this year," its managing director Ruslan Nordin told reporters after the group's EGM today.

Ruslan said the proposed acquisition will significantly transform the group from being a facilities management services provider into a full-scale build, lease and transfer concession holder.

KPMD holds a 23-year concession awarded by the government and Universiti Teknologi Mara (UiTM), which entails three years of construction of UiTM Mukah campus in Sarawak and 20 years for the delivery of facilities management services ending September 2035.]]>
Business Wed, 21 Mar 2018 05:22:08 +0000 Wan Ilaika Mohd Zakaria 534361 at
February CPI up 1.4%, below market expectation
Chief statistician Malaysia Datuk Seri Dr Mohd Uzir Mahidin said among the main groups, the increases were food and non-alcoholic beverages index (+3.0%), furnishings, household equipment & routine household maintenance (+2.1%), health (+2.1%), housing, water, electricity, gas & other fuels (+2.0%) and restaurants & hotels (+1.8%).

Meanwhile, the CPI for the period January-February 2018 recorded an increase of 2.0% as compared to the same month last year.

“The overall index was also affected by the drop in the transport group by 0.3% in February 2018. Other groups which also showed decreases were clothing and footwear (-0.7%) and communication (-0.5%),” said Uzir.

In terms of overall CPI, four states surpassed the national CPI rate of 1.4% recorded in February 2018 as compared to February 2017. The index for Malacca increased by 1.8%, followed by Selangor & Federal Territory Putrajaya (+1.7%), Johor (+1.5%) and Sabah & Federal Territory Labuan (+1.5%).

Meanwhile, the index for food & non-alcoholic beverages rose 4.2% in Federal Territory Kuala Lumpur, 3.9% in Sabah & Federal Territory Labuan, 3.6% in Johor, 3.2% in Penang, 3.1% in Sarawak and 3.1% in Malacca.]]>
Business Wed, 21 Mar 2018 04:00:27 +0000 534336 at
Axiata share price down slightly after buying stake in Sri Lankan data centre firm
At 11.08am, Axiata stood at RM5.48 with 882,800 shares changing hands.

The group yesterday said Dialog Broadband Networks (Private) Ltd (DBN) has entered into a deal with St Anthony's Property Developers (Private) Ltd (SAPD) for the stake acquisition.

DBN, which is Sri Lanka's second largest fixed telecommunications provider, is a wholly owned subsidiary of Dialog Axiata Plc which in turn is an 83.32% subsidiary of Axiata.

SAPD is a member of St Anthony Group and is the main developer of Sri Lanka's largest privately held IT park, "Orion City".]]>
Business Wed, 21 Mar 2018 03:20:39 +0000 534330 at
Tien Wah’s share price down slightly on aborted JV
At 10.36am, Tien Wah’s share stood at RM1.51 apiece with 10,000 shares changing hands.

TWPH is primarily engaged in the printing services for tobacco packaging and cigarette filters.

In May 2015, TWPH entered into a strategic JV agreement with DOFICO for the disposal of TWPH's 50% stake in its unit, now renamed Toyo (Viet)-DOFICO Print Packaging Co (TVDP) to DOFICO, in order to secure long-term sales volume from a major tobacco company in Vietnam.

TWPH told Bursa Malaysia yesterday that the termination agreement comprises the re-purchase of the remaining 50% shares held by DOFICO in TVDP for RM6.37 million (US$1.6 million).

The JV had affected the operations of TVDP, whose accumulated net loss stood at US$253,014 (RM1.05 million) as at December 31, 2016.]]>
Business Wed, 21 Mar 2018 03:08:41 +0000 534317 at
KL shares open higher
At 9.11am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) stood at 1,858.69, up 2.3 points from Tuesday's close of 1,856.39.

The key index opened 3.14 points higher at 1,859.53.

A dealer said the market is expected to remain cautious today, taking cue from Wall Street which saw an an aggressive sell-off in social media stocks, fuelled by concerns about increased regulatory scrutiny of the sector.

"Adding to the cautious mood was uncertainty over whether the Federal Reserve would signal a faster pace of interest rate rises this year when its first meeting under the chairmanship of Jay Powell concludes on Wednesday," he said.

Among heavyweights, Maybank added four sen to RM10.38, Public Bank and TNB gained two sen each to RM23.54 and RM15.78 respectively, CIMB perked six sen to RM7.26 and Petronas Chemicals earned three sen to RM8.22.

Of the actives, Media Chinese Digital added 3.5 sen to 46.5 sen, Panpage and Sapura Energy gained one sen each to 30 sen and 49.5 sen respectively, and Comintel perked nine sen to 78 sen.

Nexgram was flat at five sen.

The FBM Emas Index bagged 14.16 points to 13,068.55, the FBMT 100 Index was 22.2 points higher at 12,837.94, while the FBM Emas Syariah Index declined 8.949 points to 13,219.98.

The FBM 70 jumped 48.649 points to 15,662.39 and the FBM Ace surged 175.66 points at 5,993.55.

Sector-wise, the Finance Index rose 62.67 points to 18,148.63, the Plantation Index was 13.94 points better at 8,021.89, but the Industrial Index went down 18.77 points to 3,243.17.

Market breadth was positive with 196 gainers against 79 losers, while 207 counters were unchanged, 1,411 untraded and 22 others suspended.

Turnover stood at 147.87 million shares worth RM67.41 million.

The physical price of gold as at 9.30am stood at RM159.96 per gramme, down 18 sen from RM160.14 at 5pm yesterday. — Bernama]]>
Business Wed, 21 Mar 2018 02:52:59 +0000 theSundaily 534315 at
Ringgit opens lower against US dollar
At 9.01am, the local note was quoted at 3.9200/9250 from Tuesday's close of 3.9150/9200.

Oanda Head of Trading Asia-Pacific, Stephen Innes said local ringgit traders and investors were monitoring the US Federal Open Market Committee's (FOMC) forward guidance and the US Federal Reserve's (Fed) fund rates dot-plot projection causing demand in the local unit to dwindle.

He added that markets should tie a string around their finger to remind themselves it was not uncommon for the US dollar to recover from bearish extremes ahead of an FOMC meeting

"A steeper rate hike trajectory is keeping the region's markets apprehensive, and when you factor in the adverse domestic equity price action of late, the ringgit continues to struggle short term.

"But for the ringgit, we are miles away from a crossroad in sentiment as even in the face of a one-dot increase in the Fed projections.The current account driven ringgit should remain in favour regionally," Innes said in a note today.

Meanwhile, the ringgit traded mostly higher against a basket of major currencies.

It rose against the euro at 4.8047/8113 against Tuesday's 4.8205/8287 and was slightly higher against the Japanese yen at 3.6811/6872 from 3.6816/6866 yesterday.

The local unit appreciated against the Singapore dollar at 2.9713/9764 from Monday's 2.9727/9769, but declined against the British pound to 5.4919/4993 from 5.4912/4998. — Bernama]]>
Business Wed, 21 Mar 2018 01:45:31 +0000 theSundaily 534274 at
Supplementary budget won't derail efforts to cut fiscal deficit: Economists
In a supplementary budget bill tabled in Parliament on Monday, Putrajaya sought approval for an additional RM7.12 billion under Budget 2017 for the purpose of covering “additional expenditure on services and expenses”.

In October 2016, Prime Minister Datuk Seri Najib Abdul Razak tabled a RM260.8 billion Budget 2017.

Economists are of the view that the supplementary budget will not affect the government’s target of reducing fiscal deficit to 2.8% this year.

Sunway University Business School Professor of Economics Dr Yeah Kim Leng and RHB Research Institute economist Vincent Loo Yeong Hong noted that higher revenue from crude oil due to recovery of crude oil prices and higher tax collection will ensure that the target is within reach.

“Given that the supplementary budget will be partly offset by higher revenue collection due to a more buoyant economy, the fiscal deficit target of 2.8% of GDP is likely to be met. Another key factor helping the government to achieve the deficit target is that the GDP denominator expanded strongly at 9.9% last year, thereby shrinking the debt-to-GDP ratio,” Yeah told SunBiz.

Adding that the budget deficit was at RM39.9 billion or 3% of the GDP in 2017, Loo said higher expenditure is covered from the higher-than-expected revenue from other sources.

He said the government, which has been tabling a supplementary budget since 2009, has a track record of staying within its deficit numbers since 2011.

Nonetheless, Yeah believes the need for a supplementary budget will be reduced this year on the back of the achievable total revenue target of RM240 billion with no spending surprises.

Institute of Democracy and Economic Affairs acting CEO Ali Salman pointed out that the supplementary budget has seen a downward trend.

“The supplementary budget this year is higher than last year’s, but the federal government has substantially reduced the supplementary budget from the range of RM16 billion to RM7.1 billion over last five years. This should be seen as a positive development in the backdrop of reducing fiscal deficit, which will help the government achieve its macroeconomic targets,” he said.

Last year, the government sought an extra RM3.1 billion under Budget 2016.]]>
Business Tue, 20 Mar 2018 14:11:11 +0000 V. Ragananthini 534231 at
UMW likely to stand firm on takeover offer price for MBM Resources
Analysts have said UMW’s offer price of RM2.56 per share for MBM is unattractive and that the minority shareholders should reject the offer.

However, MIDF Research said UMW has the advantage given that it is an existing partner of Perodua which gives it the first right of refusal should there be a third party offer; the existing Japanese partners in Perodua will have to agree if a new shareholder is to come into Perodua given the eventual business partnership; and the scarcity of buyers as this involves a stake in the national carmaker.

“Having said that, this is a business transaction and naturally UMW will not put out the highest offer the first round neither would it divulge its intention to raise offers,” it said.

Meanwhile, UMW does not rule out the possibility of disposing of parts of MBM’s businesses if the take over exercise is successful.

However, MIDF Research said this is mainly to avoid conflict of interests particularly in the distribution/dealership units, rather than engaging in a corporate raider-style buy-and-break up strategy.

“In fact, we would not be surprised if an offer is made to sell back parts of MBM to members of MBM’s current major shareholder.”

The research house said at this point, it is likely that UMW will not consolidate Perodua even if it reaches 70.6% ownership.

“UMW and other shareholders are bound by the original Perodua shareholders agreement, which gives equal rights to the Japanese partners (i.e. Daihatsu Motor/Mitsui), which means Perodua will likely remain equity accounted in UMW’s books.

“Furthermore, the Japanese parties are in control of Perodua manufacturing while the Malaysian partners are in control of sales and distribution.”

UMW will be exercising a right issue of RM1.1 billion to fund its privatisation plan for MBM in addition to seeking a controlling stake in Perodua.

MIDF Research maintained a “buy” call on UMW with an unchanged price target of RM7.11, citing that this would be a good deal if it is successful given UMW’s potentially cheap entry into MBM.]]>
Business Tue, 20 Mar 2018 11:55:37 +0000 534183 at
Negotiation on Saudi Aramco’s US$7b Rapid investment concluded
“We expect the US$7 billion investment to be in by end of this month,” he told reporters after announcing the update on the project in his opening speech at the four-day Offshore Technology Conference Asia today.

Also present at the conference (which started today) was Petronas president and CEO Tan Sri Wan Zulkiflee Wan Ariffin.

The Pengerang Integrated Complex (PIC) project was designed to produce premium differentiated petrochemicals to meet domestic demand for petroleum products and the Malaysian government’s future legislative requirements upon the implementation of Euro 5 emission standards.

With an investment of US$27 billion, PIC supports the government’s overall Economic Transformation Programme and puts Malaysia in a strategic position to capitalise on the growing need for energy and commodity petrochemical products in Asia for the next 20 years.

“This will spur the growth of Malaysia’s oil and gas downstream sector, pushing Malaysia into a new frontier of technological and economic development,” he said.

Abdul Rahman said Saudi Aramco’s investment demonstrated international investors’ confidence in Malaysia as a preferred investment destination. – Bernama]]>
Business Tue, 20 Mar 2018 12:58:14 +0000 theSundaily 534199 at