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2011-08-05T21:17:00.000+08:00

Property bubble burst unlikely in Malaysia

2011-08-02T21:40:00.000+08:00

A property bubble burst is unlikely to happen in the Asia Pacific, including Malaysia, as there are no signs to indicate such a trend in the next two years, says AmInvestment Bank Group.

Director for Retail Funds Ng Chze How said real estate investment trusts (REITS) would also not experience a burst including those acquired by the group.

"I don't see a burst or a crash in the property market. "You have high wages, ample liquidity, small percentage of non-performing loans and these plus steps taken by the government to prevent the economy from
overheating, augur well for the property market.

"I don't see a property burst (happening) in the next six months, one year or two years down the line," he told reporters at the launch of Malaysia's first

Asia Pacific REITs fund, AmAsia Pacific REITs, here today.

He said with these factors in place coupled with an economic recovery, there
would be more upside in the market. AmAsia Pacific REITs invests in a diversified portfolio of REITs listed in the Asia Pacific region.

Ng was optimistic the REITS selected by the group would see high occupancy
rate and increasing rental.

"Selected Asian properties have yet to reach their previous peak, as such,
there is room for potential growth," he said, adding that properties were seen
as a good hedge during the current inflationary period. -- Bernama

Bina Puri keen to build the 'last mile' Read more: Bina Puri keen to build the 'last mile'

2011-07-16T11:19:00.000+08:00

Kuala Lumpur: Bina Puri Holdings Bhd plans to propose building the last section of the Kuala Lumpur Outer Ring Road (KLORR) project for between RM50 million and RM60 million, says a top executive of the company.

The group is preparing to submit a proposal to the Economic Planning Unit (EPU) soon and it will include a plan on how it will complete the last section of KLORR, stretching from Gombak to Karak, its executive director Matthew Tee told Business Times.

"We would be keen to submit our papers for consideration. As we have just completed the Kuala Lumpur-Kuala Selangor Expressway (Latar), it is a logical progression to go for the last piece of the puzzle," he said.

Tee said in building Latar, Bina Puri has established its capability and strengths, enough for the government to consider it for the job.

"With the Latar experience, we have proven ourselves as a capable and highly reliable road builder, therefore a better choice than others.

"We would like to think that we would be given the opportunity to do the stretch between Gombak and Karak," he said.

The 33km Latar forms part of KLORR and connects Ijok near Kuala Selangor to Templer's Park near Rawang.

Latar was built by KL-Kuala Selangor Expressway Bhd (KLS), a 50:50 joint venture between Bina Puri and privately-held company Arena Irama Sdn Bhd, under a build-operate-transfer system for RM958 million.

KLS holds a 40-year concession, starting 2008, to collect tolls on the road which started on June 23.

Latar completed 75 per cent of KLORR, an orbital ring road within the Greater Kuala Lumpur area, which serves as an alternative route to the existing Middle Ring Road 2 already reaching its capacity.

Ahmad Zaki Resources Bhd was given a concession in 2008 to construct a stretch of KLORR from Karak to Hulu Langat for RM300 million.

First MRT line likely to cost RM20bil

2011-07-10T18:28:00.002+08:00

KUALA LUMPUR: Although the actual cost of the country’s first mass rapid transit (MRT) system will be disclosed in September due to a 50% reduction in land acquisition and other tweaks to the initial alignment, estimates have put the price tag for the first of three lines at around RM20bil.

Land Public Transport Commission (SPAD) CEO Mohd Nur Kamal said more time was needed to finalise the cost as the revised alignment was only recently approved given the changes to accommodate public feedback.

“We have done a lot of changes as we are responsive to public feedback and are looking at August or September to nail down the actual cost,” he told reporters after the launching of the MRT, dubbed My Rapid Transit, which was officiated by Prime Minister Datuk Seri Najib Tun Razak yesterday.

The launch revealed the final alignment of the 51km Sungai Buloh-Kajang MRT line, of which 9.5km will be underground. The line will have 31 stations.

The final alignment not only reduced land acquisition cost, has led to better integration with existing rail network and reduced the number of stations but has become more cost effective than the initial alignment.

A SPAD official said the new alignment would run across 70% of road reserve land. The remaining 30% of the line will traverse private land which will be acquired to build the tracks.

“The tweaking of the alignment concentrates mainly on Taman Tun Dr Ismail, Bukit Bintang, Cheras and Kajang,” said the official.

An analyst familiar with the matter estimated the cost of the first MRT line could be around RM20bil. “And the cost of the underground works may be RM7bil to RM8bil,” he said.

The MRT’s project delivery partner (PDP), MMC-Gamuda Joint Venture Sdn Bhd, in which Gamuda Bhd and MMC Corp Bhd hold equal shareholdings, will be responsible for managing the project and its cost.

The analyst that was present at the event was also surprised that the remaining two lines were still under study.

The initial joint-proposal by MMC-Gamuda called for three MRT lines, including one circle line to be built at a then price tag of RM36.6bil.

“We need to see the whole picture and integration. But, the cost of the three lines that was quoted in 2009, could have ballooned up to a total of RM50bil by now, considering the increase in construction raw material prices,” he said.

It was reported the Government might plan to sell as much as RM30bil Islamic bonds under a programme to help finance the MRT. A special financing vehicle would be formed by the Government to raise the funds which would be used for the country’s biggest infrastructure project to date.

Meanwhile, Najib foresaw that the MRT would improve existing real estate value and should be a catalyst to new property development adjacent to the MRT line.

“It is estimated that new real estate development along the line could reach as much as RM15bil to be completed in a decade.

“Additionally, gross national income (GNI) of about RM3bil is expected to be churned out based on the 20% increase in gross real estate value in terms of commercial and residential property in the 1.2 million sq ft of area in the radius of 0.5km to 1km from the MRT line in 10 years time,” he said in his speech at the launching.

Residential and commercial property earmarked for development along the MRT lines are located in Cochrane, Rubber Research Institute land in Sungai Buloh, Menara Warisan as well as Bandar Malaysia Sg Besi.

Also, Najib added that the GNI derived from the construction works of the MRT was expected to be RM3bil to RM4bil annually starting from this year to 2020.

By SHARIDAN M.ALI

马来西亚房价其实并不贵，现在才开始有贵起来的苗头。

2011-07-06T09:02:00.000+08:00

在欧洲很多国家，由于有城市历史建筑保护法令，所以旧区是不能起新建筑物的。所有的屋子，都必须改造。所以，很多法国，德国，荷兰这些首都地区的房子，外面是石头和砖头，里面楼板全部是木，踩在上面叽叽声的。而且浴室防水一般做得暴差。随便一层楼这样的房子就卖300千-400千euro，上下6层，基本就2.4million euro了。在台北，600-700sf的condo，马币就卖过百万。其实这种condo规格，也就等于这里的flat，不过是新版的，外观由于台湾是地震和飓风区，所以都是shearwall structure，简简单单，实实在在，和本地的flat外观比稍好，至少有个露台，除了下面有景观，基本无差别。要知道台湾人的薪水平均只比本地人高 50%。
至于在美国，其实也好不到那里。这就是为什么欧美设计师的设计作品搞很多attice，搞很多loft，或者很多仓库改造的原因。这是旧区昂贵房价下的城市改造产品。

kl其实充斥着不少价格低廉，有待改造的建筑物。如果放到欧美设计师那里，就是改造了，基本上市场不会说什么卖不出，或者格局限制。kl也有这个趋势。很多高价卖旧区屋子，然后改造。本地嘛，就是个跟随外国潮流的市场。

很多人错误的以个人的负担能力和意愿来揣测本地房价的走势。这是不对的。
就好像目前kl适婚女性70%未嫁那样，我们不能说，因为这样，马拉西亚人就要灭绝了。不是这么一回事。

世界变了。很多东西都不同了。以前女孩子只要嫁得出去就好。以前的大公司只要请到人开工就好。以前的人只要读到大学就很好。以前的人有工开就好。以前，屋子只要能住就好，卖得出就好。
现在，女孩子认为不能因为婚姻降低生活品质。现在的公司，不只要大学毕业，还要3-5年工作经验，最好特定知名企业浸过。现在不只要看读到什么成绩，还要看出自哪一家recognized university。现在的人，不只要选优雅的工作环境，最好还要固定花红。现在的屋子，新起的没有说不种树。不做景观的。现在的人，一个中古屋卖不出，就不要卖。不管多么差，多么远，多么烂，只有一个价格，要买就买，不买，继续挂，三个月后提价。

时代变了。

马来西亚在转型。工业国是做不到，信息化大国也做不到，马来西亚会变成一个冰岛那样的国家。非常高的金融杠杆，非常高的消费水准，非常高的人均收入。
很多不懂金融的人说，房价高，有金融风险。其实，就是因为要房价高，那么金融企业的规模才能扩张！那么在retained earnings高情况下，才能对外大肆并购。所以人民负债越多，等于金融产业越发达。没有人欠钱，哪里来金融产业。而政府是要把马来西亚打造成金融强国的。

由于本地的工业开始瘫痪，现在的步伐是马币不断升值。债务规模不断扩张，物价不断上升。
10年后，或者会看到本地社会前20%人的生活形态是大学去外国参加夏令营，参观国际赛事和户外活动。到处去品尝michelin美食。穿着是换月，不是换季换年的。大部分人平常是坐公车和地铁，偶尔驾贵车。
kl一栋双层排屋400-600万马币。一碗面15-20块。人均年收入72000，美元兑马币1:2。

如果一碗面不升到15-20块，双层排屋不升到400-600万块，面粉商员工，面档小贩，原有屋主，这么多人，哪里来钱扩充企业，自身都不能达到年收入72000，又怎样给一个普通员工72000的年薪呢？

这是个很现实的问题。不管白领的薪水去到多少，小贩档价格不升，人均收入就被拉住后腿，不能升了。
最后，说一句可能会被人群殴的。。。。结论
如果日本的房价崩溃后不是本地的10多倍，物价不是本地的5倍。而是由于它伟大的政府高明的政策导致房价物价比本地还要便宜的话，那么日本一定有很多低素质的非法移民。城市会完全塞到不能动。因为人人都买得起车，也付得起停车费。路上还会有很多流浪汉。。。跑去日本行乞。。因为乞讨收入高。。而物价低，性价比高！

http://cforum.cari.com.my/viewthread.php?tid=2399386

2011-06-24T20:27:00.001+08:00

2011-06-18T10:05:00.002+08:00

KUALA LUMPUR: TOP GLOVE CORPORATION BHD [] net profit for the third quarter ended May 31, 2011 fell 60.3% to RM25.60 million from RM64.48 million a year earlier due mainly to higher latex price and weakening US dollar.

Revenue for the quarter dropped 3.7% to RM535.36 million from RM555.85 million in 2010. Earnings per share was 4.14 sen.

The glove maker declared a first single tier net interim dividend of 5 sen, payable on July 21, 2011.

For the nine months ended May 31, Top Glove’s net profit fell to RM87.06 million from RM200.22 million a year earlier, while revenue was also lower at RM1.51 billion compared to RM1.54 billion in 2010.

In a statement Friday, June 17, Top Glove chairman Tan Sri Lim Wee Chai said the result for 3Q ended May 31, 2010 was an anomaly as the influenza A (H1N1) virus outbreak caused a surge in demand, and latex prices and the US dollar exchange rate were also more favourable then.

He said average latex price had increased by 39% year-on-year in 3Q ended May 31, 2011 while the US dollar had weakened against the ringgit 7.4%.

Lim said the company’s average selling prices (ASPs) were regularly revised to reflect the increase in costs.

However, due to an oversupply situation in the glove industry, it was difficult for Top Glove to pass on the rise in costs to its customers in full, he said.

“Up until now in this fiscal year, we have only been able to pass on around 70% to 80 % of the increase. Furthermore, there is a time lag in the cost pass-through that we have to contend with.

“Latex price has declined about 14% in the past one month from its all-time high of RM10.99 on 11 April 2011 to around RM9.40 in recent weeks. As latex price stabilised, we expect customers who had adhered to minimum inventory holding before, to resume buying,” he said.

Lim said that although business conditions had been challenging, he was confident that the company’s strong balance sheet and cash flow position would allow it to make the necessary investments and improvements to stay competitive and counter the headwinds.

“Besides, Top Glove has been rebalancing its product mix by producing more nitrile gloves to avoid over reliance on natural rubber gloves.

“However since nitrile is also dependent on crude oil, which is depleting and competing with other types of usage, our new production lines have been built to be inter-switchable between producing natural rubber gloves and nitrile gloves,” he said.

Lim said Top Glove’s new factory in Klang, the F21, had 16 lines dedicated to produce nitrile gloves and was already up and running.

Two additional new factories, F22 and F23, which are slated to be completed by October 2011 and March 2012 respectively, will also be installed with nitrile glove production lines, he said, adding that the expansion would increase Top Glove’s capacity from 35.25 billion pieces per annum to 41.55 billion pieces.

Lim said the company has also been investing more heavily in R&D in order to continue innovating new products, to further enhance its product quality and to improve productivity and cost efficiency.

“Top Glove believed the glove industry still remains resilient, for gloves are a necessity especially in the medical and healthcare industry.

“The increased awareness of healthcare and hygiene in developing countries also helps sustain the demand for rubber gloves,” he said.

Written by Surin Murugiah of theedgemalaysia.com

2011-06-15T21:42:00.000+08:00

2011-06-10T23:37:00.000+08:00

2011-06-01T20:58:00.001+08:00

MMC Corp 1Q net profit up 29.5% to RM43.04m

2011-05-31T21:51:00.002+08:00

KUALA LUMPUR: MMC CORPORATION BHD [] net profit for the first quarter ended March 31, 2011 rose 29.5% to RM43.04 million from RM33.23 million a year earlier, due mainly to higher contributions from most of its divisions.

Revenue for the quarter increased to RM2.23 billion from RM2.06 billion in 2010. Earnings per share was 1.41 sen while net assets per share was RM2.19.

Reviewing its performance on Tuesday, May 31, MMC Corp said its energy and utilities division’s profit rose by 39.1% or RM85.1 million due to higher volume of gas sold, lower other operating expenses, improved associates performance and lower finance cost following repayment of loan during the period.

The transport and logistics division’s higher earnings were higher driven by the increase in throughput volume, it said.

Meanwhile, the engineering and CONSTRUCTION [] division earnings were higher mainly due to the absence of profit revisions for the double track project despite the project losses of Zelan Berhad, an associate company of the group, it said.

However, its corporate division’s contribution was lower was due to no gain on disposal of investment recorded as in the corresponding financial period, it said.

On its prospects, MMC Corp said that in line with the improvement in its businesses, the company expects its current year results to be better than that for the year ended Dec 31, 2010.

Written by Surin Murugiah of theedgemalaysia.com

2011-05-28T08:57:00.000+08:00

2011-05-25T22:05:00.001+08:00

2011-05-23T21:28:00.001+08:00

MMC plans to list Gas Malaysia, Malakoff, Johor Port

2011-05-17T11:03:00.001+08:00

KUALA LUMPUR: MMC CORPORATION BHD [] plans to list its subsidiaries -- Gas Malaysia Sdn Bhd and Malakoff Bhd -- and also its unit Johor Port.

MMC group managing director Datuk Hasni Harun said on Monday, May 16 the first company to be likely listed would be its 51% owned Gas Malaysia.

He said the three companies were ready for listing but it would hinge on factors such as timing and the growth of the respective company.

Hasni said its 51% owned independent power producer Malakoff was going through price discovery process at the moment. It was previously listed and then taken private.

According to Hasni, Malakoff is worth about RM7 billion currently while Gas Malaysia and Johor Port are worth RM5 billion and RM1.5 billion respectively.

However, he was non-committal when asked if the listing would take place this year.

He denied Gas Malaysia had obtained approval to list from the Securities Commission (SC) as reported by a newspaper on Monday.

“It is not true. In order for us to list Gas Malaysia, we have to get approval from our partners namely PETRONAS GAS BHD [] and Tokyo Mitsui Gas Holding. We have yet to get shareholders approval,” he said adding that MMC has yet to submit any application to the SC.

On whether there are discussions with Gas Malaysia’s other partners on the possibility of listing, Hasni said there are discussions at board level but is yet to be brought to the shareholders.

On MMC’s bid for the extension of the 1,000 MW coal-fired generation capacity in Tanjung Bin, Johor, Hasni said the company was informed that its bid is technically and commercially competitive.

He said MMC and Malakoff have its financing in place already should it win the bid.

Hasni also said that MMC would bid for the tunnelling work for the mass rapid transit (MRT) project, which is slated to begin in July, through a Swiss challenge.

He said at least 10 international companies were likely to bid for the tunnelling based on their experience in casting limestone and the diameter of the tunnel.

On its port business, Hasni said Johor Port and Port of Tanjung Pelepas (PTP) constituted 40% of the country’s throughput.

“Based on our growth that we have seen this year, we are quite confident that we will be hitting our maximum capacity of PTP of 8.5 million TEUs soon,” he said, adding that an expansion plan is in order.

He said there are currently 12 berths in PTP and the expansion will include the CONSTRUCTION [] of an additional two berths.

“The land has already been reclaimed. It will be the equipment cost and wharf which we need to construct and will cost us about RM1 billion,” said Hasni.

Malakoff and PTP expected RM150 million and RM170 million in capital expenditure this year.

Written by Sharon Tan of theedgemalaysia.com

2011-05-14T11:21:00.001+08:00

2011-05-11T22:59:00.001+08:00

2011-05-10T22:22:00.001+08:00

CIMB Research has Buy on Mudajaya at RM4.51

2011-05-05T21:03:00.001+08:00

KUALA LUMPUR: CIMB Equities Research has a Buy on MUDAJAYA GROUP BHD [] at RM4.51 where it is trading at FY12 price-to-earnings of 5.8 times and a price-to-book value of 2.6 times.

It said on Thursday, May 5 the stock appears to be on its last leg of a huge triangle consolidation pattern. Prices are also now testing the 200-day SMA at RM4.56. As long as prices remain above the RM4.42 levels, the triangle pattern holds.

CIMB Research said the technical indicators are still in consolidaiton mode. MACD is still trickling lower while RSI is also on an easing trend.

“A breakout above RM4.78, its 30-day SMA would likely signal that the bulls are back in business. For now, aggressive traders may opt to buy on weakness with a stop placed below RM4.40. Upside resistance is seen around RM5.05, the triangle resistance and RM5.44,” it said.

Written by theedgemalaysia.com

2011-05-04T19:39:00.001+08:00

OSK maintains 'buy' call on MMC

2011-04-29T22:16:00.002+08:00

OSK Research is maintaining a "Buy" call on MMC Corporation, with an unchanged fair value of RM3.62.

The company based its optimism on expectation that some good news was coming MMC's way following news that Gulf International Investment Group Holdings Sdn Bhd had entered into a joint-venturent with Aluminium Corp of China (CHALCO) for the development of a US$1.6 bil aluminium smelting plant in Sarawak.

MMC Corp Bhd is the flagship company of local tycoon Tan Sri Syed Mokhtar Albukhary.

Syed Mokhtar's companies had previously worked with CHALCO, especially to set up a US$3 billion smelter in Jazan Economic City, Saudi Arabia.

"With MMC having built a relationship with CHALCO in relation to Jazan some four years ago, we continue to see Syed Mokhtar's companies being mutually beneficial," OSK Research said.
As at 3.15 pm, MMC Corp stood at RM2.68, down one sen. - Bernama

2011-04-29T20:31:00.001+08:00

2011-04-27T20:19:00.000+08:00

2011-04-26T18:38:00.001+08:00

2011-04-25T22:17:00.001+08:00

房屋价指数上扬5.9% 首都房价乃大马之冠

2011-04-24T12:22:00.000+08:00

（吉隆坡20日讯）2010年大马房屋价格价格指数比2009年上扬5.9%，达到144.1点，同时，所有房屋年均价格也从2009年第4季的18万4574令吉，上涨至2010年第4季的19万9636令吉（8.2%），吉隆坡一带房屋价格仍是大马之冠。

财政部副部长拿督林祥才今日出席2010年第3季至第4季大马房地产报告推介礼，在会上致词时这么表示，大会同时也推介2010年房地产市场报告、2010 年第4季房产情况报告及2010年第4季房地产库存报告，出席者有产业估价局总监拿督阿都拉塔里及国家产业咨询中心主任再兰博士等等。

林祥才说，2010年大马房屋价格价格指数比2009年的136.1点上扬5.9%，达到144.1点，同时，所有房屋年均价格也从2009年第4季的18万4574令吉，上涨8.2%，2010年第4季数据为19万9636令吉。

其中，国内房屋价格排名最高的事吉隆坡，为43万163令吉，依次是沙巴及雪兰莪，分别是31万5769令吉与30万1443令吉。

“排屋价格年均价格也从2009年第4季度的16万5033令吉，涨至2010年第4季的17万9111令吉，上扬8.5%；吉隆坡排屋年均价格是42万3583令吉，而雪兰莪则是29万9255令吉。”

他表示，在政府多项政策支持下，国内经济稳固使得本地房产在2010年发展良好，创下11.4%最高点，成交量达37万6583宗，总值1亿770万令吉；比2009年的8100万令吉、33万8089宗成交量的记录，多出1亿令吉，成交量总额上升了32.6%。

他说，政府已采取多项措施，预防大马发生如美国及爱尔兰的产业泡沫危机，如在2010年1月1日开始，重新征收5%产业盈利税，避免投机者在5年内转售房屋，影响市场价格浮动，同时让房产领域发展稳健。

他指出，根据资料显示，首要房屋产业市场买卖率比往年来得低，仅有4万7698间房屋推出市场，卖出的数量为2万1799间（45.7%）；而在售出的房屋中，价值25万令吉及以下的房屋仍有市场，共卖出55.91%；排屋方面仍受欢迎，在新推出的房产中，已有56.1%售出。

“在2010年房屋兴建计划中，不难看出的是发展商采取小心之上的态度，已建竣、刚开始兴建及房屋新计划分别下降6.5%、2.9%及4.1%，以减少需求和供应之间的不平衡。”

在产业供应方面，已建竣的产业自2009年下降24.1%，刚开始兴建的房产计划则上升近3倍，共有38座建筑大厦一开始在全国各地动工；另外，办公室空间设计比2009年的规划来得小，比2009年的计划小了2万1422平方尺（38%）。

同时，他也表示，因为市场推出不少新办公楼的关系，全国办公室入住率只有84.1%，较往年来得低，吉隆坡的办公室入住率为81.2%、雪兰莪及柔佛同样是76.9%，槟城方面则是78.2%。

他说，办公室空间占用率也仅有18万556平方尺，比2009年的51万9244平方尺还要低，排名依次为马六甲、吉隆坡及霹雳，显示了投资者岁对大马经济环境有信心，却还未开始实行新计划。

至于2010年的商场入住率也从往年的81.5%下降至80.2%，原因很可能是因为市场对刚建竣的商场需求有所下降的关系。

他说，去年共有33座商场建竣，提供5万1106平方尺的空间，而在2010年年底，全国共有1059万平方尺商用空间已经入住。

虽说刚开始兴建以及商场兴建新计划较往年各下滑2.3%及57.6%，但他相信，需求下滑的趋势可在短期内，帮助市场吸纳现有商业空间。

加快产业转换手续流程提高竞争力

他透露，为方便营商，产业估价局已加快产业转换手续流程，从8个工作天时间缩减至1个工作天，希望借此提高大马房产在国际上的竞争力。

“经过利商工作队与公共领域的努力，大马在世界银行经商环境报告排名，从往年的第23名，升至2010年的第21名，与此同时，在管理发展学院发表的2010年世界竞争力年度报告中，大马也从第18位的排名，升至第10名。”

他认为，随着国家银行在3月宣布维持隔夜官方利率（OPR）在2.75%后，有利于市场融资环境，提升国内房屋买卖成交量。

在 2011年财政预算案中，政府针对有需要人士，拨出5亿6800万令吉发展3项房屋兴建计划，包括城市房屋发展计划（300间）、人民组屋计划（7万 9000户）以及房屋租赁计划（8000间），而其中5000万令吉作为园丘工人房屋贷款，如享有4%最低贷款利息，可借贷长达40年等等，以协助他们可购买最高售价6万令吉的房屋。

KWONG WAH e news

2011-04-21T20:28:00.001+08:00

Double-digit growth for Malaysian property market

2011-04-20T18:31:00.002+08:00

KUALA LUMPUR: Malaysia's property market enjoyed double-digit growth in 2010, expanding 11.4% and 32.4% in volume and transaction value respectively.

The Finance Ministry's National Property Information Centre (NAPIC) said on Wednesday, April 20 that Kuala Lumpur,Selangor and Sarawak recorded the highest house prices while overall, the Malaysian All House Price Index rose 8.9 points to 140.7 in 2010.

“Houses priced below RM150,000 represented 57.1% of total residential transactions, with the bulk 17.3% formed by houses priced between RM100,000 to RM150,00,” said the report.

NAPIC said for 2011, it expected the property market to benefit from the various economic initiatives undertaken by the government.

Projects such as the Kuala Lumpur International Financial District (KLIFD), mass rapid transit (MRT) in Greater KL,Warisan Merdeka the development of the Malaysian Rubber Board land in Sungai Buloh and the redevelopment of Pudu prison is expected to have positive spillover effects.

"In the long term,the property sector should benefit from these projects. As new areas open up and communities materialise, these will likely push up demand for housing and other facilities."

"The implementation of infrastructure projects in these regions is expected to spur new growth areas and hence activate the local market" NAPIC said.

Written by Sheikh Al-Zaquan of theedgemalaysia.com

Residential property prices to grow by 10pc

2011-04-18T22:08:00.001+08:00

Residential property prices are expected to grow 10 per cent this year given the rebound in transaction volume and higher
replacement costs, AmResearch says.

The research unit of the AmInvestment Bank group said its previous forecast was a growth of five per cent.

It said replacement costs were on the rise due to escalating land cost as well arising prices of building materials from timber, aluminium, cement to steel.

The recent aggressive bids for land surrounding mature neighbourhoods would solidify the strong pricing trends as land traditionally accounted for between 25 and 30 per cent of residential prices, it said in a research report today.

"The expected reacceleration in residential prices would also be preceded by a sustained expansion in transaction volume, which is already underway now," it said.

It said developers had revealed that demand rebounded strongly in the past month as evident from the strong response to recent launches.

"We reaffirm our overweight stance on the property sector with SP Setia and IJM Land as our deep convictions buys," the research house said, raising its fair value for SP Setia from RM7.38 to RM8.10 and IJM Land from RM3.88 to RM4.00 per share. -- Bernama

2011-04-16T11:24:00.001+08:00

2011-04-14T21:28:00.001+08:00

Chevron’s US$37b Gorgon project on track, Wah Seong involved in RM551m pipe coating

2011-04-13T19:34:00.002+08:00

KUALA LUMPUR: Chevron's giant US$37 billion Gorgon liquefied natural gas(LNG) project is still on track to come online 2014 and in which Wah Seong Corp Bhd is involved in a RM551 million pipe-coating job.

Reuters quoted Chevron gas and midstream president John Gass as saying Gorgon remains on schedule for first gas in 2014.

“We've passed significant CONSTRUCTION [] milestones over the past year," he was quoted saying at an oil and gas conference in Perth.

Gass also said that he expects Chevron to spend A$20 billion (US$20.887 billion) on Australian goods and services during Gorgon's construction.

AmResearch said in a report in February that Wah Seong managed to largely overcome the glitches for the Gorgon job and is currently operating its pipe-coating operations at normal efficiencies.

“This is clearly evident in 4QFY10 results. Hence, we maintain our FY11F earnings, which already incorporate a 63% on-year rebound on faster recognition of the Gorgon pipe-coating job,” it said.

In 2010, Wah Seong was affected by the disruption in the award of major contracts back in 2009 and the delays in implementing the RM551 million Gorgon pipe coating job.

Written by Joseph Chin of theedgemalaysia.com

2011-04-12T20:03:00.000+08:00

2011-04-11T19:38:00.000+08:00

IOI Corp invests S$114.77m in JV for Singapore property dev

2011-04-10T12:11:00.000+08:00

KUALA LUMPUR: IOI Corp Bhd is investing S$114.77 million in a Singapore property company which will develop premium office space, luxury hotel, high-end retail outlets and prestigious city residences along Beach Road in the island republic.

IOI Corp said on Friday, April 8 the land, measuring 376,295 sq ft (8.64 acres), had a leasehold tenure of 99 years.

IOI Corp said the investment would be via its unit, IOI Consolidated (Singapore) Pte Ltd, which had subscribed for a 49% stake in Singapore’s Scottsdale PROPERTIES [] Pte Ltd for cash consideration of S$114.77 million.

Scottsdale owns 66.67% of South Beach Consortium Pte Ltd (SBC), which was incorporated to take part in a design tender for the piece of land along Beach Road under the Singapore Government land sale programme in 2007.

IOI Corp said SBC was successful in the tender and acquired the land for S$1.689 billion. As at Dec 31, 2010, SBC has total assets of S$2.02 billion and net assets of S$681.8 million,” it said.

“The acquisitions present an opportunity for IOI to be involved in an iconic development in Singapore downtown area with a sizeable mix of office, hotel, residential and retail components.

“The substantial size and location of the development which is in close proximity to such landmarks as Suntec City Convention Centre and Raffles Hotel will make this development one of the most popular and prominent mixed-use developments in downtown Singapore,” said IOI Corp.

The other shareholder in Scottsdale is Ascent View Holdings Pte Ltd, a unit of City Developments Ltd, which holds 50.1%.

IOI Corp said IOI Consolidated would advance S$27,730,499 to Scottsdale as a shareholder loan which was in proportion to its shareholding in Scottsdale upon the completion of the subscription.

IOI Consolidated and Ascent View might be required to contribute further equity in proportion to their respective shareholdings in Scottsdale (about S$500 million each) to acquire/redeem existing mezzanine notes earlier issued by SBC, for working capital requirements and to part finance the CONSTRUCTION [] of South Beach.

“The acquisitions will entail a total investment of up to S$816.8 million (equivalent to RM1.96 billion) by IOI Consolidated,” it said.

South Beach is a mixed use development land parcel bounded by Beach Road, Bras Basah Road, Nicoll Highway and Middle Road. IOI Corp said the total land area is 376,295 square feet (8.64 acres) and has a leasehold tenure of 99 years.

The development will comprise of premium office space, luxury hotel, high-end retail outlets and prestigious city residences.

“It is preliminary to ascertain the total development cost or expected profit from the development as SBC is in the progress of refining the design plans and undergoing value-engineering reviews to enhance South Beach’s development efficiency and cost effectiveness,” it said.

Written by Joseph Chin of theedgemalaysia.com

Gamuda Land targets RM1.3b sales in 2011

2011-04-07T20:20:00.001+08:00

Gamuda Land Sdn Bhd, a unit of Gamuda Bhd, is targeting sales of RM1.3 billion from domestic and overseas projects for the financial year ending July 31, 2011, surpassing last year's sales of RM800 million.

Managing Director Chow Chee Wah said the projection was based on the bullish property market and the company's current sales which had already hit RM860 million.

"The current financial year should see record sales for Gamuda Land," he told reporters after launching Madge Mansion, a 52-unit luxurious condominium project in Jalan Madge parallel to Jalan Ampang, here today.

Chow said the bulk of the group's revenue would come from the sale of its Bandar Botanic property project in Bukit Tinggi, Klang, while its projects in Vietnam were expected to start contributing to the bottomline beginning next month.

Meanwhile, Madge Mansion expected to be completed by Jan 2014, is an upmarket low-rise condominium which promises low density, privacy and a friendly neighbourhood to discerning buyers and a gross development value of RM320 million to the developer. The smallest unit has a floor space of 3,900 sq ft and is retailing for RM4.95 million while the largest unit, which is more than double, at 8,379 sq ft has a whopping price tag of RM11.33 million. -- Bernama

2011-04-06T22:07:00.002+08:00

MRCB expects to land more govt jobs

2011-04-05T20:04:00.002+08:00

KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB) (1651)is expecting more government jobs under the Economic Transformation Programme (ETP), having bid for projects worth over RM2 billion.

Chief executive officer Datuk Mohd Razeek Hussain said one of its key performance indicators for 2011 is to grow the company's revenue by 20 per cent to RM1.3 billion and achieve RM150 million in profit before tax (PBT).

For fiscal 2010, MRCB posted a PBT of RM97.6 million on revenues of RM1.1 billion.

Among the projects MRCB is bidding for are package A and B of the LRT extension project, worth some RM1 billion and RM600 million respectively.

"If we can get one of the two packages, we would have achieved 40 per cent of our target," he said yesterday after the company's shareholders meeting.
MRCB has secured two projects under the ETP - the development of the 6-star St Regis Hotel at Kuala Lumpur Sentral in Brickfields, and the River of Life project.

Razeek said MRCB is negotiating with the government on the scope of works for the project, where it holds the letter of intent with its joint-venture partner, Ekovest Bhd.

The project includes cleaning and beautifying the Klang and Gombak river, and planning some developments along it. He declined to reveal the project cost.

OSK Research estimates the project to be worth RM8 billion to RM10 billion.

Meanwhile, MRCB, which has RM4.2 billion worth of ongoing property projects, plan to launch three new developments valued at RM2.6 billion between May and December this year.

These include an office tower and residences at KL Sentral and a high-end condominium project at Jalan Kia Peng, Kuala Lumpur.

MRCB is also aiming to launch Penang Sentral soon, Razeek said.

"We are looking at substantial growth this year, majority of that will be contributed by our existing projects," he said.

2011-04-04T20:01:00.002+08:00

SP Setia eyes RM300m from villas project

2011-04-03T11:19:00.001+08:00

Property developer SP Setia Bhd aims to achieves sales of RM300 million for its luxury Duta Villa project this year, its Bandar Setia Alam, General Manager, Tan Hon Lim said.

The amount is equivalent to 10 per cent of the group gross development value (GDV)of RM3.0 billion, he said.

"We will conduct a more exclusive product preview to attract and convince potential buyers, especially from Petaling Jaya, Damansara, Kuala Lumpur and Shah Alam," he told Bernama in an interview.

Duta Villa comprises 300 units of three-storey villas priced from RM1.62 million as well as three-and-a-half storey villas from RM1.95 million.

The project is located at one of the highest spots in the 1,600 hectare Setia Alam and Setia Eco Park site in Shah Alam and allows residents to enjoy a 360 degree view from the club house.

This gated and guarded strata landed development combines elegant architecture, with a big built area, of a minimum 4,515 sq ft.

Tan regards the project as an investment type product, similar to its development, Duta Tropika in Hartamas several years back, which now has appreciated from RM1.6 million to RM3.5 million.

SP Setia will launch the first phase comprising 123 units of villas by end-April and expects completion by June 2013, he said.

"About 400 people have registered during several private preview sessions and are very keen to purchase the units," he added.

The company is still offering its 5/95 home loan package with a considerably low interest rate.

On new projects, Tan said SP Setia plans to launch cluster homes by May, small office home offices (SOHO) by August as well as medium low and medium cost apartments by October.

He said the launch of the apartment units is in line with the government campaign of a 100 per cent loan for those earning RM3,000 and below for houses priced between RM100,000 and RM220,000, with an up to 30-year repayment.

Meanwhile, Tan said the demand for properties will continue to be strong for years to come, backed by the support from government under the Economy Transformation Plan (ETP).

"There is still a lot of demand in the market, especially for landed properties at good locations.

"A good track record of the developer and development concept, competitive prices and an attractive financing package will help sustain the sales," he added. --Bernama

Buffett says Japan quake presents buying opportunity

2011-03-22T21:12:00.002+08:00

SEOUL: US billionaire investor Warren Buffett said on Monday that a massive natural disaster would not hamper the future of the Japanese economy and could prompt a new bout of stock buying.

"I'm not looking at Japan's economic future differently from 10 days ago... extraordinary events offer (a) buying opportunity," he told reporters.

Buffett, the chairman of investment firm Berkshire Hathaway, was visiting South Korea to attend a ground-breaking ceremony for a local unit of Israel's Iscar Metalworking Companies, 80 per cent owned by Berkshire Hathaway.

Japan's Nikkei index lost around 10 per cent in the week following the devastating March 11 quake and tsunami.

Buffett, however, urged against selling Japanese stock -- markets were closed in Tokyo on Monday -- and said Japan would recover relatively quickly, Yonhap news agency said.

The disaster, which has left 8,649 people dead and 13,262 missing, could cost the Japanese economy up to US$235 billion, the World Bank said Monday.

Growth, however, should pick up in subsequent quarters "as reconstruction efforts, which could last five years, accelerate", it said.

Buffett, known as the "Oracle of Omaha" for his investment savvy, said Berkshire was seeking further acquisitions worldwide including South Korea following its US$9 billion purchase of US lubricant maker Lubrizol.

"We're looking at a number of big businesses in Korea, the US, the UK. We hope to find good companies wherever they may be. Basically, it's the bigger, the better," he said.

The tycoon also played down military and nuclear threats from North Korea, saying the communist country "isn't a big threat" to the firm's investment in the capitalist South.

Buffett was scheduled to meet with South Korean President Lee Myung-Bak later Monday. -- AFP

Bank Negara raises minimum income requirement for new credit card holders

2011-03-18T20:56:00.002+08:00

KUALA LUMPUR: Bank Negara Malaysia has tightened the rules for the credit card industry to inculcate sound financial and debt management among credit card users while issuers were barred from increasing cardholders’ credit limit without obtaining their consent.

“These measures are also aimed to promote fair and responsible business practices by credit card issuers with further enhancements in the cards security infrastructure,” it said on Friday, March 18.

With immediate effect, BNM raised the minimum income requirement of new card holders to RM24,000 per annum from RM18,000 a year.

The central bank also limited the maximum credit limit for card holders earning RM36,000 a year or less to two times their monthly income of card holder per issuer.

BNM's deputy governor Nor Shamsiah Mohd Yunus said at a press conference on Friday that “these new guidelines are to promote public confidence in the usage of credit card as a viable and safe payment.”

“In addition, it will ensure fair business practices as well as greater transparency and disclosure," she said.

Nor Shamsiah said credit card debt in Malaysia currently remained at a manageable level. As at end 2010, outstanding credit card debt totalled RM30.8 billion or 5% of total household debt.

"Although credit card usage continued to increase, non-performing loan ratio remains low. As at end 2010, credit card non-performing loans were only 1.7% of total credit card loans and 2% of the total banking system’s non-performing loans," she said.

In a statement issued by BNM, it said on the new ruling for cardholders earning RM36,000 per annum and less, the cardholders could only hold credit cards from a maximum of two issuers.

BNM said existing cardholders with credit cards from more than two issuers had until the end of 2011 to select their preferred issuers.

Cardholders would also be given at least two years to service their outstanding credit card debt for the credit cards that have been cancelled for the purpose of meeting this requirement.

For existing cardholders, whose credit card outstanding balance exceeds the maximum credit limit, a grace period of two years will be given to them to meet with the new requirement.

BNM said the card issuers would engage with the affected cardholders to assist them in restructuring their repayments to facilitate the smooth implementation of this measure. Cardholders can also seek the assistance of Agensi Kaunseling dan Pengurusan Kredit (AKPK) for advice on their debt management.

The central bank said to ensure responsible business practices in provision of credit cards, the issuers must adopt fair, transparent and responsible approach in marketing and offering of credit cards to consumers.

“Issuers are not allowed to increase cardholders’ credit limit without obtaining their consent. Issuers are also not allowed to offer a credit advance in the form of cheque payable to the cardholders unless the cardholders have requested for the credit advance,” it said.

BNM said to enable consumers to make comparison and informed decisions; card issuers must provide a product disclosure sheet that contains key information on the card’s features, fees and obligations of the cardholders.

It said issuers had to display prominently alerts to communicate to cardholders the implications of meeting only minimum and partial repayments.

At the end of each year, customised information on how long it will take to fully pay off the cardholder’s outstanding balance and the total interest costs if the cardholder only makes minimum repayment will be issued to each cardholder. This will be effective for annual statements issued from December 2011.

BNM said to further enhance credit card security and to promote public confidence in the usage of credit cards as a safe payment instrument, from Jan 1, 2012, transaction alerts via short messaging service (SMS) will be implemented by card issuers for their cardholders after transactions are performed.

“This will be followed by the implementation of the personal identification number (PIN) verification for all card transactions from Jan 1, 2015 onwards,” it said.

Timber stocks buck market trend

2011-03-15T21:34:00.000+08:00

BURSA Malaysia closed flat yesterday as investors digested the full impact of Friday's earthquake and tsunami in Japan.

Timber stocks, however, bucked the trend, while rubber and palm oil futures took a hit.

The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) closed 0.27 point lower to 1,495.35 points yesterday.

Timber-related counters rose after RHB Research Institute Sdn Bhd said timber companies are likely to benefit from a surge in demand from Japan as the country rebuilds after last week's earthquake and tsunami.

Ta Ann Holdings Bhd added 8 sen to RM4.84, Jaya Tiasa Holdings Bhd climbed 16 sen to RM5.01 and WTK Holdings Bhd rose 7 sen to RM1.33.

A fund manager from TA Investment Management Sdn Bhd said the rise in timber stocks was quite benign.

On the converse, futures prices of commodities such as rubber and palm oil were pressed down.

August delivery for rubber, the most active contract on Tokyo Commodity Exchange, plunged 5 per cent to 383.5 yen a kg before settling at 384.1 yen (RM14.19), triggering a circuit breaker that suspended trading on all contract months.

Japan, one of the world's top five rubber consumers, mainly imports its rubber supply from Southeast Asia.

Taking the cue from Japan, the Malaysian Rubber Board's SMR 20 plunged 74 sen to RM12.85 per kg, while latex-in-bulk dropped 33.5 sen to RM9.49 sen per kg.

Palm oil prices also declined on concerns that Japan, one of Malaysia's top five clients, is facing difficulties receiving cargo as some of its ports had been destroyed by the earthquake and tsunami.

One trader said the bulk of shipment had to be re-routed.

Another trader said the aftershock of the earthquake and tsunami may worsen. This will likely lead to "force majeure" and subsequently, trigger contract defaults.

Yesterday, the third month benchmark palm oil futures on the Bursa Malaysia Derivatives Exchange dropped RM29 to RM3,335 per tonne.

Mercury Securities head of research Edmund Tham said there is no certainty on the extent of damage at Japan's seaports.

"There are no real figures out yet although Japan's logistic sector is hit hard," Tham added.

Investors may have sold off some of their shares here to take profit but Tham said there were no major selldowns.

"I don't see any major concern. If anything, the FBM KLCI is likely to trade rangebound over the next few days," he added.

MMC-CB

2011-03-10T20:27:00.001+08:00

MRT briefing draws massive crowd

2011-03-05T15:52:00.000+08:00

IT WAS meant to be a closed-door session. But nearly three times more contractors came to a briefing on the Mass Rapid Transit (MRT) project that the hotel's ballroom doors could not be closed.

Having advertised the briefing in mainstream newspapers for three days, Syarikat Prasarana Negara Bhd (SPNB) anticipated 250 contractors to turn up on Thursday night.

But much to their surprise, close to 700 came to the Petaling Jaya hotel, some from as far as Sarawak.

Snacks and coffee served by the hotelier finished in 20 minutes.

SPNB's brochure revealed that the planned construction period for MRT Sungai Buloh-Kajang line is from 2011 to 2016. When completed, it is expected to move 1.2 million people along the route.

The line will be integrated with existing KTM Komuter and LRT lines and feeder bus networks with a common ticketing system.

Reporters could not enter the hall but questions emanating from the ballroom touched on whether there would be opportunities for vending machine operators at MRT stations.

There were also offers for SPNB to buy the latest ticketing systems and bathroom facilities that can handle ultra-high traffic flow.

A government official, who declined to be named, attested that SPNB had in the past months received enquiries from custom-fitted furniture manufacturers and energy-efficient lighting suppliers.

Indeed, the construction sector is not just brick and cement.

Pemandu director of Greater Kuala Lumpur/Klang Valley NKEA Ahmad Suhaili Idrus told Business Times, "the MRT is the biggest infrastructure project the country is undertaking. Today's overwhelming crowd is reflective of the economic multiplier effects of the MRT project."

He estimates the MRT project to support more than 100 types of businesses, ranging from contractors, construction professionals, building material suppliers to logistics and even telecommunication services.

Malay Contractors Association president Datuk Mokhtar Samad commended SPNB for giving the opportunity for Bumiputera contractors to gain an insight into the intricacies of the project.

Yesterday, Zulkifli Mohd Yusoff, group director of the project management division at SPNB, in a statement, said: "The contractors briefing is to ensure all are given the correct information regarding the type of work involved in the project including underground tunneling, elevated structures, track, system and rolling stock works."

The pre-qualifying stage is to identify contractors who are financially strong, possess the technical expertise and track record to take on the relevant job packages. Only contractors who are pre-qualified will be allowed to bid for the job packages.

He then said tenders will be called once public feedback has been gathered and project details confirmed after the public display period ends on May 14 2011.

As SPNB wrapped up the briefing at 9.30pm, throngs of contractors lined up to pay their parking tickets.

After a while, the machine let out a groan and stopped working. A clearly exasperated contractor turned around to the bemused queue behind him and joked, "well, the supplier of this hotel's parking system definitely cannot pre-qualify for the MRT ticketing package!"

MMC-CB

2011-02-26T20:21:00.000+08:00

MMC-CB

2011-02-23T20:50:00.001+08:00

2011-02-20T11:20:00.000+08:00

MRT

2011-02-17T22:36:00.001+08:00

Opposing view on impact of MRT. Consultants: Prices of some properties may be adversely affected

PETALING JAYA: While some property consultants and analysts have been bullish on the overall impact of the mass rapid transit (MRT) on property prices, another group of property consultants has reservations about the blanket “price hike” touted by their counterparts and other parties.

This second group of property consultants, together with sources familiar with the project, have an alternative view.

Their conclusion is: not all properties affected by the Sg Buloh-Kajang line will have a positive impact. In fact, there will be properties that will have an adverse impact.

A source who declined to be named said: “If you can hear it, see it, feel the vibration, but cannot access it, your property will be negatively impacted. You want it (MRT) close, but not too close.”

The 50km line that begins from Sg Buloh will splice through the monorail and light rail transit (LRT) in the city and head south towards Kajang, affecting a total 91,900 properties along the way. Of these, 82,700 units, or 90%, will be residential units with a total population of about 341,000. About 40% of these are located in the Sg Buloh-Semantan area, and 46% in the Cheras-Kajang area.

It will be the country's largest infrastructure project, reportedly costing RM36.6bil.

A source said: “Logically speaking, people should not oppose the MRT or any form of public transport. But, if it is going to affect your standard of living, either by the noise, vibration or visual impact, then it is logical for them to oppose it.

“Imagine this: you live in a quiet, serene area for years, and all of a sudden you have the MRT line running in front or behind your property. Your serenity is broken, your standard of living is negatively impacted, and so will the value of your property.”

The noise level will be tremendous. The MRT begins from 6am to midnight. In time to come, the MRT will run every 1.8 minutes.

The affected areas are Section 4 and 6 of Kota Damansara; Pelangi Damansara condominium; Taman Tun Dr Ismail; Damansara Utama; Section 17/52 Petaling Jaya; Bukit Bandaraya; Jalan Bukit Ledang; Bukit Damansara; Taman Desa Aman; Taman Connaught; and Taman Koperasi.

According to the executive summary posted on the Department of Environment website, as the line enters Kota Damansara, which is predominantly residential and remains so until TTDI, the line visual, vibration and noise level will be significant to properties in that area. And as the line enters the residential area of Cheras, the visual impact, noise and vibration level will also impact negatively on the property values there.

“Most of the measured noise levels exceeded the recommended limit for suburban residential area and urban residential area,” the executive summary said.

Reports that property prices would go up by between 100% and 500% were “too bullish”, said the group of property consultants. A property developer who has several projects in Kota Damansara said the visual impact, noise and vibration would affect values negatively.

Last week, the Land Public Transport Commission (LPTC) and Prasarana exhibited the alignment at Mid-Valley Megamall. They are seeking a location in Petaling Jaya to exhibit the alignment.

The MRT route will be displayed for three months at local authority offices in the Klang Valley, in Bangsar LRT station and at LPTC in KL Sentral. The environmental impact assessment will be displayed for one month from Feb 14 to March 14.

THE STAR

MMC-CB

2011-02-16T18:57:00.001+08:00

MMC-CB expired date 18 Oct 2011.

MMC

2011-02-15T12:52:00.001+08:00

IGB to sell The Gardens Mall to subsidiary

2011-02-15T11:41:00.004+08:00

IGB Corp Bhd (1597)plans to sell The Gardens Mall, which has an indicative value of RM820 million, to its subsidiary KrisAssets Holdings Bhd, for cash as part of its ongoing streamlining scheme.

KrisAssets, its 75 per cent unit, essentially operates like a real estate investment trust, and the purchase will give it a new source of recurring income.

IGB entered into an agreement yesterday for KrisAssets to buy all of the shares in Mid Valley City Gardens Sdn Bhd (MVCG).

The purchase price will depend on the net tangible asset of MVCG for the fiscal year ended December 31 2010. The four-year-old The Gardens Mall has an indicative value of RM820 million.
KrisAssets now has two subsidiaries - Mid Valley City Sdn Bhd, which owns and operates the Mid Valley Megamall and Mid Valley Capital Sdn Bhd (MV Capital), which is the funding vehicle for the issuance of the RM400 million redeemable secured serial bonds in September 2004.

IGB said the proposed sale will enable the group to streamline its property holdings whereby its retail properties will be consolidated and held under KrisAssets. It would also allow the group to achieve greater operational efficiency and synergistic benefits.

IGB will use the sale proceeds for new investment opportunities.

"IGB will continue to derive benefits from the future growth of The Gardens Mall via KrisAssets," it said.

KrisAssets said the deal would enable it to achieve the required scale to enhance its competitiveness in the retail sector.

"There would be potential synergistic benefits arising from the proposed acquisition, which include, amongst others, cost savings, operational streamlining and collaborative marketing strategies in the Mid Valley City as a whole," KrisAssets said.

Trading in shares of both IGB and KrisAssets have been suspended since February 11 pending the announcement.

www.btimes.com.my

SINOTOP

2011-01-30T10:45:00.002+08:00

Borrowing costs likely to stay low

2011-01-27T22:49:00.000+08:00

Bank Negara Malaysia (BNM) is likely to leave borrowing costs unchanged today, preferring to wait for economic growth to pick up momentum and the global economy to have a sustained recovery.

Economists think the central bank will keep the Overnight Policy Rate (OPR) at 2.75 per cent when its monetary policy committee meets today.

Low borrowing costs have kept the economy buzzing with corporate deals, which in turn fuelled the stock market's rise to fresh records.

Consumer spending was also strong in big-ticket items. Malaysia is set to post record car sales in 2010, while lending curbs were introduced to rein in speculative buying of properties.

But economists polled by the Business Times expect BNM to start raising the OPR at the next meeting on March 11. Central banks typically raise interest rates to curb inflation.

Kit Wei Zheng, an economist with US bank Citi, said prices of goods and services are likely to continue rising.

He expects the Consumer Price Index (CPI), the measure of inflation, to breach 3 per cent by year-end.

"With oil prices likely to head north and expectations for oil at US$100 (RM305) per barrel by the end of the year, there will be greater urgency to cut the RON95 subsidy further to maintain the subsidy bill at current levels.

"With RON97 no longer subsidised and subject to an automatic pricing mechanism since July 2010, there could be a somewhat swifter and more direct pass-through from crude prices to petrol prices," he commented.

But Malaysia's 2.2 per cent CPI level would be the envy of regional nations like China, India, Vietnam and Indonesia, said DBS Bank economist Irvin Seah.

"Credit should be given to the policymakers in BNM for taking decisive and pre-emptive tightening move in early 2010 despite the risks associated with the European debt crisis then," Seah said.

When central banks across the region put on hold their plans to raise interest rates, BNM went ahead with 75 basis points rate hikes to nip inflation in the bud and to prevent financial imbalances.

That best explains the current modest inflation that the economy is enjoying, said Seah.

"The appreciation in ringgit has also an important role in keeping imported inflation at bay."

The local currency was one of the best performing emerging Asia currencies last year. It appreciated by 10.6 per cent against the greenback in 2010.

Alvin Liew of Standard Chartered Bank expects BNM to prepare the markets for another round of OPR hikes given the central bank's proactive approach to monetary policy formulation.

IOI to set up own broadband services

2011-01-26T19:54:00.000+08:00

IOI Properties Bhd plans to come up with its own broadband services for its townships in order to provide faster and better broadband connection to home owners.

By the second quarter of the year, the developer plans to come up with its own application called One IOI Net for some 150,000 households and 2,500 businesses in IOI townships in the Klang Valley and Johor.

"With this high-speed broadband, our townships will become one of the most connected places to live and work in.

"This presents a good opportunity for us and other businesses to provide value added mobile applications and services to our community."

"For example, residents will be able to get first hand information on the promotions available in IOI Mall and also get updated information on the estimated time of arrival of the IOI free shuttle service buses on their mobile phones," said IOI Properties Bhd senior general manager for marketing and business development Lee Yoke Har at a press conference in Putrajaya yesterday.

The first stage of this broadband services will be rolled out at the Bandar Puteri and Bandar Puchong Jaya commercial areas in Puchong.

The area includes Puchong Financial and Corporate Centre and the IOI Boulevard.

With this plan in mind, IOI Properties has entered into a partnership with Observation Sdn Bhd and Wi-Net Telecoms Sdn Bhd to collaborate and deliver the most advanced broadband network and related services to all IOI township developments within the next three to five years.

"The investment (to roll out the broadband services to all IOI townships) is RM20 million for the next three to five years," said Wi-Net Telecoms Sdn Bhd chief executive officer Lee Wai Tuck.

In recent months, there has been a surge in the number of developers offering similar broadband services in their townships such as Sunrise Bhd, which had entered into a partnership with Time dotCom Bhd to provide free and fast broadband services..

Besides Sunrise, UEM Land Holdings Bhd is also offering broadband services at its recently launched residential property in Symphony Hills, Cyberjaya.

Wall St mixed despite positive Q4 earnings

2011-01-22T20:57:00.000+08:00

NEW YORK: US stock markets closed mixed on Friday despite positive fourth-quarter earnings reported by major companies like eBay, Google and General Electric.

The Dow Jones Industrial average finished 49.04 points higher (0.41 per cent) at 11,871.84, while the S&P 500 rose 3.09 per cent (0.24 per cent) to 1,283.35.

But the tech-heavy Nasdaq dropped 14.75 (0.55 per cent) to 2,689.54, as key components like Apple, Google and Microsoft all lost ground.

The Dow got propulsion from GE, which posted banner fourth-quarter profit of US$3.9 billion and said its order backlog was at "a record US$175 billion."

GE closed the day up 7.11 per cent to US$19.74.

Bank of America, the country's largest bank, fell 1.99 per cent after reporting a net loss of US$1.2 billion for the fourth quarter, far worse than analyst forecasts.

The bank cited falling revenue and a hefty US$2.0 billion writedown on its home-loan business, saying that excluding the writedown, it would have earned a profit of US$756 million in the quarter.

The Nasdaq got hit by Apple's 1.79 per cent drop, Google's 2.38 per cent fall, and Microsoft paring 1.17 per cent.

Google started the day in positive area after having turned in strong results after the bell on Thursday, and simultaneously announcing that company co-founder Larry Page would replace Eric Schmidt as chief executive.

"This is the third straight session that participants have pushed harder against the Nasdaq than either of its counterparts. Most of that is due to a rejection of large-cap tech issues," said analysts at Briefing.com.

"A lot of investors were expecting more," said Owen Fitzpatrick, of Deutsche Bank. -- AFP

SP Setia plans project, in talks with govt on KL site

2011-01-18T10:17:00.000+08:00

SP Setia Bhd (8664)plans to undertake a mixed residential and commercial project in Bangsar, Kuala Lumpur, giving the government a 20 per cent share of its net profit from it.

The 16.3ha of prime land along Jalan Bangsar, where it proposes to undertake the project, is owned by the government.

SP Setia is currently in talks with the government to be given that land in exchange for building an integrated health and research complex for the Ministry of Health (MoH) on 22.4ha of land it owns in Setia Alam, Shah Alam.

It told the stock exchange yesterday that its unit, Sentosa Jitra Sdn Bhd (SJSB), has the government's in-principle approval for the land swap proposal.

The proposal was mooted by SJSB to the government along the lines of the public-private partnership concept.
The land in Bangsar currently houses five National Institute of Health agencies under the MoH's purview, which will be relocated to Setia Alam.

SP Setia said SJSB had finalised its design and costing for the new complex, to be known as the 1National Institute of Health (1NIH), and is now ready to commence negotiations with the MoH and the Public-Private Partnership Unit in the Prime Minister's Department.

The proposed new 1NIH will serve as a hub and centre of excellence for health research, training and consultation at both the local and global level.

"The land swap nature of the deal means that the MoH/government will not have to fund any part of the cost for the construction of the new 1NIH complex."

This, it said, will be paid for by the difference between the current market values of the Bangsar and the land in Setia Alam.

SP Setia told the stock exchange in a separate filing later that it plans to place out up to 15 per cent of its issued and paid-up capital. The issue price will be determined by way of book-building.

http://www.btimes.com.my/Curre

Priceworth set to seal foreign deal

2011-01-06T14:04:00.001+08:00

Priceworth Wood Products Bhd (7123)is in final leg of negotiations to manage two timber concessions overseas that have a combined land size in excess of 100,000 hectares, says its executive director Michael Chok Syn Vun.

"The concessions are in Papua New Guinea (PNG) and Solomon Islands," Chok told Business Times in an interview at his office in Sandakan, Sabah, yesterday.

He said Priceworth would have to spend as much as RM2 million in the first phase to help move machinery and other related assets to these places if the deal goes through.

Chok did not want to provide a timeline on when a decision will be known.
However, it is reliably understood that Priceworth could make an announcement on the matter before the month is over.

On the financing, Chok said the company has several options. These include tapping its own cash holdings, which stood at RM12 million as at end of its 2010 financial year, or proceeds of its planned warrant exercise.

Priceworth is proposing one warrant for every two mother shares at a conversion price of 50 sen a share. The book value per share of Priceworth as at end June last year was RM1.55 a share.

The Sabah-based timber company is banking on the overseas ventures to help expand its revenue base above the RM500 million mark in the coming financial year ending June 30 2012.

Priceworth posted revenue of RM446.08 million last year against RM457.28 million in the year before.

If the deal to manage the two concessions comes through, it will be a blessing for Priceworth as the company has been absorbing the effects of the stronger ringgit against the US dollar.

"About 85 per cent of our revenue comes from abroad, namely from Japan and the US," said Chok, adding that the lower value of the export currency had crippled its margins.

In 2010, Priceworth registered a pre-tax profit of RM3.2 million, while in the year, before its pre-tax profit stood at RM7.14 million.

"It is a capital-intensive business," said Chok, adding that the company has more than 3,000 people on its payroll to help manage its seven factories located within the Sandakan district.

Maybank to buy Kim Eng for RM1.9b

2011-01-06T13:57:00.001+08:00

Maybank through its wholly-owned subsidiary, Aseam Credit Sdn Bhd (ACSB), has proposed to acquire a 44.6 per cent stake in Kim Eng Holdings Ltd today at S$3.10 per share, amounting to S$798 million (approximately RM1.90 billion).

It entered into conditional sale and purchase agreements with Ronald Anthony Ooi Thean Yat and Yuanta Securities Asia Financial Services Ltd for the acquisition of 15.4 per cent and 29.2 per cent stakes respectively in Kim Eng.

Kim Eng is a leading stock broker in ASEAN with a top five position in Singapore, Thailand, Indonesia and the Philippines.
It also has a presence in global financial centres, including Hong Kong, London and New York.

As of Sept 30, 2010, Kim Eng''s total assets and shareholders' equity amounted to S$2.697 billion and S$938 million, respectively.

Upon completion of the acquisition, Maybank will be required to make a mandatory general offer for the remaining 55.4 per cent shares in Kim Eng, with an intention to privatise the company.

The total consideration for the acquisition of 100 per cent of Kim Eng would amount to S$1.79 billion (RM4.26 billion).

The proposed transaction represents an acceleration of Maybank''s investment banking and equities platform in ASEAN, addressing an important gap in Maybank''s footprint, said Maybank Chairman Tan Sri Megat Zaharuddin Megat Mohd Nor in a statement today.

"Kim Eng gives us the immediate platform to aggressively build up our global wholesale banking capabilities in Asean and beyond.

"Immediately, Kim Eng, gives us an entry into Thailand,"he said.
-- Bernama

IJM Land falls, MRCB up after merger off

2011-01-03T20:39:00.000+08:00

IJM Land Bhd fell to a six-week low in Kuala Lumpur trading after scrapping plans for a RM6.4 billion (US$2.1 billion) merger with MRCB to form the Southeast Asian nation’s second-biggest property developer.

The stock dropped 3.2 per cent to RM2.77 at 11:01 a.m. local time, set for its lowest close since Nov 16. Malaysian Resources rose 0.5 per cent to RM2.00, after initially losing 1 per cent in opening trade.

“The aborted merger is a major disappointment,” Wong Chew Hann, an analyst at Maybank Investment Bank Bhd, said in a report today.

“Expectations have been built in for a much stronger outlook under an enlarged group.”

This was one of three separate tie-ups proposed in November by Malaysian developers, keen to take advantage of improving economic conditions to grow in hopes of winning bigger projects.

IJM Land and MRCB said on Dec 30 they aborted their merger after failing to agree on terms.

IJM Land’s fair value was cut to RM3.50 from RM3.65 at RHB Research Institute Sdn Bhd, according to a report today. RHB maintained its “outperform” rating on the stock. Malaysian Resources’s share price estimate was reduced to RM2.05 from RM2.30 at OSK Research Sdn Bhd, which said in a separate report it kept its “neutral” rating on the stock.

Bulking Up

The two companies first announced plans for a share swap on Nov. 23. A union would have created a group with 9,000 acres of land bank and assets worth more than RM3 billion, Rafidz Rasiddi, head of investment banking at RHB Investment Bank Bhd, one of the advisers on the deal, said at the time.

A merged group would have boosted share trading liquidity and improved the chances of winning key government land development projects, including one at Sungai Buloh outside Kuala Lumpur, said Maybank’s Wong.

The government plans to develop Malaysian Rubber Board land in Sungai Buloh at an estimated cost of RM10 billion, Prime Minister Najib Razak said on June 10. The land covers an area of 3,300 acres, he said.

IJM Land is primarily involved in township developments, while Malaysian Resources is known for its high-rise office projects.

Malaysian Resources is controlled by the Employees Provident Fund, the country’s biggest pension fund, while IJM Land is a unit of IJM Corp, a construction and plantations group.

UEM Land Holdings Bhd, the biggest publicly traded developer in Malaysia, made a RM1.4 billion takeover offer for smaller rival Sunrise Bhd on Nov 4. Malaysian businessman Jeffrey Cheah said on Nov 24 that he plans to merge Sunway Holdings Bhd and Sunway City Bhd, two property and construction companies he controls, in a transaction valued at US$2 billion.

Malaysian Resources gained 1 per cent to RM2.01, after initially shedding 1 per cent in opening trade. -- Bloomberg

CPO futures may test new highs next week

2011-01-01T18:30:00.000+08:00

Crude palm oil (CPO) futures on Bursa Malaysia Derivatives may test new highs next week as they move into the New Year, fuelled by renewed interests from traders and concerns over tight
supplies, dealers said.

A dealer said although it would be tough to predict the direction of the prices next week, they definitely would be on the uptrend.

"We expect the uptrend for the first two weeks of January, which may potentially push prices pass the psychological RM4,000 resistance," he said.

He said the supporting level would be at RM3,700 with resistance at RM3,800 next week.

Another dealer said CPO price would increase further after profit-taking on Wednesday on the overall sentiments of the global grain market and supply concerns due to the local wet weather.

For the holiday-shortened week, CPO futures hit a 33-month high on Tuesday on the strength from other vegetable oils markets.

The feat was repeated on Thursday with the third month contract hitting a high of RM3,792.

The seven-day rally extended from last week was snapped on Wednesday when traders decided to take profits before year-end.

On a weekly basis, January 2011 rose RM84 to RM3,814 per tonne, February 2011 climbed RM124 to RM3,820, March 2011 gained RM123 to RM3,788 and April 2011 increased RM122 to RM3,768.

Volume for the week declined to 55,382 lots from 80,204 last week while open interest was lower at 87,737 contracts from 91,035 previously.

On the physical market, January shipment rose to RM3,820 per tonne from RM3,675 last Friday. -- Bernama

JAKS wins RM201m construction contract

2010-12-28T23:22:00.000+08:00

JAKS Resources Bhd wholly-owned subsidiary, JAKS Sdn Bhd, has secured a construction contract worth RM201 million from MNH Global Assets Management Sdn Bhd.

JAKS Resources in a filing to Bursa Malaysia today said the contract is for the earthworks, retaining wall, piling works and sub-sector works of the proposed commercial development at Jalan PJU 1A/4, Ara Damansara, Petaling Jaya, Selangor.

The work is expected to be completed by March 2012 and is expected to improve the future earnings of the JAKS Group.--BERNAMA

PLUS，5052

2010-12-22T23:02:00.001+08:00

（吉隆坡22日讯）任何对南北大道（PLUS，5052，主要板贸易）有意的买家，需在明年1月10日前交付5000万令吉现金的订金，分析员一致叫好，赞赏此举有助让浑水摸鱼的人士知难而退。

至于明天（23日）将展延的股东特别大会，预计无法在短期内召开。

侨丰投资研究分析员吴杰敏指出，南北大道董事局拟定的最新献购条件确是好事，有助解清小股东心中的疑团。

他告诉《中国报》，特别是征收5000万令吉现金、但献购遭拒后可退还的订金，更有效抑制存心搅局的有心人士浑水摸鱼。

“否则，任何来路不明的单位都可竞相献购，股价必然水涨船高，最后却宣称融资不足以致计划告吹，但恐怕早已从直线攀扬的股价大赚一笔。”

对Jelas Ulung有所保留

问到这是否马股企业并购的惯例时，他坦言，自己也是第一次听闻。

“市场对Jelas Ulung的背景非常陌生，但必须在23日前提供所有股东和董事、相关人士等的资料，小股东到时会较容易比较。”

大马投资研究分析报告也认同说，对Jelas Ulung的献议始终有所保留，毕竟相关细节并不完整。

“媒体报导Jelas Ulung需筹资高达380亿令吉，其中330亿令吉源自中国银行，余下50亿令吉则是股票融资。”

UEM集团董事经理兼总执行长拿督依查汀另回覆《中国报》询问强调，如今有待南北大道的独立董事展开所有评估工作，所以目前无法置评。

“我们预计，南北大道的股东特别大会相信不能在短期召开，但至少所有事情无需赶在今年底完成，或许仍是件好事。

Two projects lift Glomac Q2 net profit

2010-12-03T22:41:00.003+08:00

KUALA LUMPUR: Glomac Bhd posted a higher net profit of RM15.9mil for the second quarter ended Oct 31 against RM9.3mil a year earlier, mainly due to contributions from on-going progress completion from Glomac Tower and Glomac Cyberjaya.

Its pre-tax profit for the period almost doubled to RM32mil from RM16.3mil previously. Revenue for the period was 86.3% higher at RM140.9mil versus RM75.6mil a year ago.

For the six-month period ended Oct 31, Glomac posted a net profit of RM31.4mil on revenue of RM267.2mil.

Glomac said its unbilled sales as at the end of October remained high at RM572mil, and this remained one of the key earnings growth drivers for the group going forward.

We are confident that our sales momentum can be sustained. Glomac is well positioned, having more than RM2.5bil worth of development projects for launch, group executive chairman, Tan Sri F.D. Mansor said in a statement.

Our balance sheet is healthy, giving us the capacity to further seek out landbank acquisition opportunities, he said.

Muhibbah sees profit rise to RM21m in Q3 Read more: Muhibbah sees profit rise to RM21m in Q3

2010-11-26T22:39:00.001+08:00

Muhibbah Engineering (M) Bhd posted a higher pre-tax profit of RM21.3 million for its third quarter ended Sept 30,2010 compared to RM5 million in the previous corresponding quarter.

Despite an increase in profit, revenue fell to RM289.13 million from the RM610.94 million recorded previously. In a filing to Bursa Malaysia today, the group said its shipyard and cranes division continues to be the main earnings contributor to the group.

It currently has a total outstanding secured order book of RM2.78 billion which can last until 2013.

For its nine-month period ended Sept 30, 2010, it achieved a lower pre-tax profit of RM49.57 million, compared to RM53.01 million recorded previously. Revenue declined to RM1.162 billion from RM1.572 billion previously.

The group expects to achieve a satisfactory performance for its current fiscal year on the back of an improving sentiment in the global oil and gas industries.-- Bernama

Landed property prices to rise further

2010-11-23T22:18:00.000+08:00

Property prices will continue with the uptrend despite speculation of a bubble building up in the property market, said SP Setia Deputy President and Chief Operating Officer, Datuk Voon Tin Yow.

"The market is still very strong. In terms of the uptrend in landed property prices, it is just a matter of catching up, with the higher income individuals are receiving, and other factors related to society," he added, after speaking as a panelist at the launch of the Bursa Malaysia Business Sustainability Programme today.

He added the uptrend seen is due to the supply shortage in landed properties and is an adjustment, rather than a bubble.

"If we analyse the price of a RM1 million landed property, it would be very expensive. But if we analysed in terms of built-up area, it would be worth the price.

"Of course, the uptrend, cannot go on for the next 10 years at this rate," he quipped.

He added the increase in prices are mostly in landed properties, but not strata title developments.

"The trend will continue for sometime but in the foreseeable future, there would not be any bubble forming in the property market," Voon said. - Bernama

Read more: 'Landed property prices to rise further' http://www.btimes.com.my/Current_News/BTIMES/articles/20101123165445/Article/index_html#ixzz167CX7EcW

2010-11-20T11:36:00.001+08:00

IOI Corp 1Q net profit up RM19.7 million

2010-11-18T21:43:00.000+08:00

PETALING JAYA: IOI Corp Bhd saw its first quarter net profit increase by 4.13% to RM498.13 million from a year ago while pre-tax profit was 6% higher at RM661.7 million due to higher profits from its plantation unit and higher unrealised translation gain on foreign currency denominated borrowings.

The company told Bursa Malaysia on Thursday that it expects satisfactory performance for its present fiscal year due to strong crude palm oil (CPO) prices and a resilient property market.

For the three-month period ended September 30 2010, the plantation segment recorded a 38% gain in operating profit to RM345.3million from a year ago due to higher CPO prices realised and a marginal increase in fresh fruit bunches production.

Average CPO price realised for the first quarter was RM2,598/MT compared to RM2,294/MT from the previous corresponding period.

IOI Corp's first quarter revenue grew by 7.4% to RM3.52 billion.

2010-11-15T21:37:00.000+08:00

2010-11-14T19:01:00.000+08:00

2010-11-10T19:12:00.001+08:00

2010-11-09T23:07:00.000+08:00

Most Malaysians cannot afford the high price of property

2010-11-07T13:27:00.003+08:00

In Kuala Lumpur, land prices have appreciated even more sharply and the recent sale of a piece of land for over RM7,000 per sq ft has raised alarm among some consumer groups and industry players.

They worry that the high price transacted for the land will be used as the bargaining power for other land owners to push their land prices upwards in the surrounding areas.

This will inevitably be an unhealthy prelude to an overheating in the property market as land is the basic commodity in a property development process. When the price paid for a piece of land escalates way beyond the market norm or the last transacted price, it has actually moved ahead of market fundamentals.

The question is who then will have to bear the high cost at the end of the day. Certainly it will not be the developers as they will factor into their total project costing and recoup the cost by pricing the property they build higher.

And if the property is not for sale but for leasing, the rental rates can also be expected to be higher. Although property buyers are not directly or immediately affected by the high land cost, they will also have to share part of the burden when the prices of goods and services are fixed higher (as the business operators who rent the space will factor the high rent into their pricing.)

The Government’s plan to redevelop the 160ha Sungei Besi airport and the 1,320ha Rubber Research Institute land in Sungei Buloh should help to ease the land-scarcity problem.

The initiative should be accorded a top priority and, if possible, a dedicated agency is set up to oversee the whole planning and development process for these large parcels of land, taking into account the real needs of the people.

This will ensure better integration of public transport services and other infrastructure, housing and other commercial property needs that are more long-term and sustainable.

Given the huge need for more affordable housing in the Klang Valley, especially homes priced between RM200,000 and RM350,000, this will be the golden opportunity to plan for such housing projects. Hopefully at least 30% of the land for housing development will be allocated to affordable housing for all eligible Malaysians.

It is indisputable that real estate is an important economic sector, accounting for 50% of the country’s wealth. But the cap on the sector’s growth could be the relatively lower earning and purchasing power of Malaysians compared with those in other high income countries. For the industry to leapfrog to another level of growth, the people’s purchasing power has to grow faster or at least in tandem with the rising property prices as we will need investors who can afford to pay for the high-end properties that are to be built.

The Government’s iniatitives to turn Malaysia into a high income economy will create the platform for the people to earn higher per capital income to support their higher purchasing power.

Expanding the pool of buyers who have the means to absorb the high-end property that are being churned out by developers now will hopefully create a more sustainable property market – one where demand matches supply.

THE STAR

2010-11-05T12:54:00.002+08:00

2010-11-03T21:13:00.000+08:00

2010-11-02T20:12:00.001+08:00

2010-10-25T21:37:00.000+08:00

Karambunai SPV set up

2010-10-23T12:56:00.002+08:00

THE controlling shareholder of Karambunai Corp Bhd (KCB), together with a Beijing-based contractor, has set up a Special Purpose Vehicle (SPV) to assess the feasibility of developing an integrated eco-nature resort in Karambunai.

With local and overseas consultants, including its financial consultant China Construction Bank International, the SPV has presented proposals to the government to assess the relevance of developing Karambunai to spearhead tourism growth in the Eastern Corridor.

To date, KCB holds no equity in the SPV, nor has it received any official notification from the government or signed any agreement with the SPV to develop Karambunai, the company noted to Bursa Malaysia yesterday.

Read more: Karambunai SPV set up http://www.btimes.com.my/Current_News/BTIMES/articles/20101023001717/Article/index_html#ixzz139RnkThd

2010-10-15T21:57:00.003+08:00

2010-10-13T22:11:00.000+08:00

2010-10-11T21:16:00.000+08:00

Mah Sing on aggressive land acquisition trail

2010-10-10T11:30:00.000+08:00

MAH Sing Group Bhd (8583), the country's fifth largest property developer by revenue, is in talks with the government and private land owners to buy land in the Klang Valley, Penang and Johor.

Group managing director Tan Sri Leong Hoy Kum said the company is on an aggressive land acquisition trail.

For government land, Leong said Mah Sing is open to cooperation with relevant government-linked companies, but he declined to disclose the name of the company it is talking to.

"We are confident that we will lock in more land soon. We do not want to miss the chance to buy government land, more so with the mass rapid transit (MRT) project that is coming up.

"There are also many government projects being tendered out from now until the middle of next year ... so we must get ourselves ready to capitalise on the opportunity," Leong said.
The three-line MRT project, costing more than RM30 billion, is to improve public transport in the Klang Valley.

Mah Sing has RM300 million cash in hand, some of which will be used to buy land. By early next year, it expects to receive RM215 million from the sale of an eight-storey building to Koperasi Permodalan Felda Bhd.

"We have enough funds," Leong said yesterday after the company's extraordinary general meeting in Kuala Lumpur.

Mah Sing has 21 ongoing projects worth RM6.3 billion in the Klang Valley, Penang and Johor. It is planning 10 more projects, expected to be launched from year-end.

Among them are Kinrara Residence, a RM830 million medium- to high-end housing development in Puchong, featuring 836 bungalows as well as semi-detached and super-link homes.

Leong said he is confident the company's sales this year will surpass the RM1.5 billion mark, due to strong numbers already locked in from its balanced and diversified property portfolio. Up to July this year, it had raked in RM1.02 billion.

Leong also said that he is bullish on the property market for the next one to two years.

"We should not worry too much about over-heating. We are promoting Malaysia 'My Second Home' scheme in China, Singapore, Hong Kong, Taiwan and Europe. Some 10 per cent of foreigners contribute to our sales and we expect more going forward," he said.

Mah Sing also hopes the government will further open up its policies to encourage foreigners to buy properties in Malaysia, especially those in the high-end segment, he added.

Mudajaya to develop power project in Laos

2010-10-07T22:48:00.001+08:00

Mudajaya Corp Bhd has entered into a memorandum of understanding (MOU) with the government of Laos to develop a nominal 60 MW Nam Poui 1 Hydroelectric Power Project.

Mudajaya Corporation is a wholly-owned subsidiary of listed Mudajaya Group Bhd.

In a filing to Bursa Malaysia today, Mudajaya Group said that under the MOU, the Lao government would grant the developer the sole mandate and exclusive right to develop, implement and operate the project on the build-operate-transfer (BOT) basis, if it was feasible in all aspects.

The MOU, signed yesterday, is valid and enforceable for 21 months from its execution.

"Provided the project appears feasible in accordance with the terms of the MOU, the parties shall negotiate to conclude a project development agreement (PDA) before the expiry of the mandate period.

"The PDA shall confirm the terms of the exclusive mandate granted by the government of Laos to the developer in order to enable the development and implementation of the project on a BOT basis with a concession period of 30 years inclusive of construction period commencing from the signing date of the concession agreement to be entered into by and between the government of Laos and the project company.

"The project company is targeted to be jointly held by the developer and government of Laos on 75:25 equity basis," Mudajaya Group said. -- Bernama

Mixed views on MMC move to buy UEM Read more: Mixed views on MMC move to buy UEM

2010-10-06T20:27:00.000+08:00

OSK says it would be an unusual move by MMC while Mercury Securities sees the deal as a good fit for MMC to strengthen its construction and infrastructure business

Analysts gave mixed views over MMC Corp Bhd's (2194) plans to buy over UEM Group Bhd, with many saying that they were not sure of its rationale and that the intention had been made known only in recent days.

On Monday, MMC acknowledged that it had made a preliminary proposal to acquire UEM. It was responding to a query from Bursa Malaysia following reports of the takeover bid.

Earlier reports, which did not name sources, said MMC was making a RM15.6 billion offer to buy over UEM whose ultimate prized possession is undoubtedly PLUS Expressways Bhd, concessionaire of several highways, including the North-South Expressway.

OSK Research said the RM2.8 billion offer that MMC supposedly made for Khazanah's 16.7 per cent stake in UEM would also mean that PLUS would be valued at RM16.7 billion, still significantly lower than its current market capitalisation value of some RM21 billion.
"Furthermore, MMC's two largest shareholders - Permodalan Nasional Bhd and the Employees Provident Fund - have not been consulted in the structuring of the proposal," it said.

If that was so, it would be an unusual move by MMC, which has generally ensured the support of its two largest shareholders (other than Tan Sri Syed Mokhtar Al Bukhary) in all of its major proposals," OSK said in its research note.

OSK also said it was unsure if the proposal would be accepted by the Ministry of Finance (MOF).

The research house is maintaining the stock's "neutral" recommendation for now given the many uncertainties, with no change to its earnings or fair value of RM3.07.

Little has been heard from UEM itself apart from chief executive Datuk Izzaddin Idris telling Business Times last week that he was unaware of any takeover plans by MMC.

OSK said MMC's net gearing as at June this year was 271.7 per cent, which was uncomfortably high and not expected to excite potential bondholders should the deal be financed by debt papers.

However, Mercury Securities analyst Edmund Tham sees the deal as a good fit for MMC to strengthen its construction and infrastructure business.

Tham said that MMC could leverage on UEM's status as master developer of the Iskandar Malaysia development project in Nusajaya, Johor, and find synergies for future development projects involving property, commercial, logistics, warehousing, industrialisation or the port business.

Another analyst from CLSA felt that the proposal was surprising given UEM's sheer size and the high financing required for the purchase.

"Historically, MMC is mostly known for its power and port businesses. So the move is unusual, but possibly MMC, which has stakes in IJM Corp Bhd, wants to expand and beef up its construction and property businesses," said the analyst.

Talam, fajar-wa, waseong-wa

2010-10-01T21:30:00.002+08:00

Glomac eyes RM5b GDV in next 5 years Read more: Glomac eyes RM5b GDV in next 5 years

2010-09-30T20:02:00.002+08:00

Glomac Bhd expects to generate RM5 billion in gross development value (GDV) for its 14 to 16 projects in the next five to six years, said its Chief Executive Officer Datuk Fateh Iskandar Tan Sri Mohamed Mansor.

"All the projects will be run in Greater Kuala Lumpur except one in Johor," he told reporters after the company's 26th annual general meeting here today.

Of the amount, he said its township project was expected to generate RM1 billion in GDV while the rest will come from its commercial buildings.

Glomac has a landbank of around 1,000 hectares in the Klang Valley presently.

On the government's Economic Transformation Programme (ETP), Fateh Iskandar said the plan opened up opportunities for Glomac as well.

For the first time, the government engaged the private sector and stakeholders, and they could give their views in terms of promoting the property sector and the overall economic growth as well, he said.

Glomac which concentrates on its business in Malaysia currently also has investments in Bangkok, Thailand and Melbourne, Australia.

The company expects to see returns on these investment first before it moves further, Fateh Iskandar said.

For the first quarter financial period ended July 31, 2010, the company's revenue jumped 114 per cent to RM125.3 million from RM59.0 million in the same period last year. - Bernama

Ringgit may breach 3.06 in 2 weeks

2010-09-26T21:06:00.000+08:00

The ringgit temporarily broke to 3.08 level this week and is expected to remain strong next week.

"The market may hold up at this current level," a dealer said, adding that robust domestic demand and credit growth were expected to entice fresh funds from foreign investors.

RHB Bank forex dealer Badeeudin Mohd Abu Bakar said that the ringgit might breach the 3.06 mark against the greenback in about two weeks’ time, after hitting its strongest level since October 1997 at 3.0873.

The local unit rallied to new 13-year highs in four straight weeks amid speculation that rules would be further loosened to enable the local currency to be traded offshore.

Some analysts believe that changes in the foreign exchange regime seem like a step in the right direction in allowing the appreciation of the local currency.

Yesterday, the local unit ended higher at 3.0900/0930 against the US dollar compared to Thursday's closing of 3.0950/0980 after the local bourse managed to pare some of its earlier losses on bargain hunting activities.

Bloomberg reported that Barclays Capital Plc had raised its forecast for the local currency, predicting a 6.1 per cent appreciation over the next 12 months as foreigners plow more funds into the nation's assets.

FTSE Group, a global index provider, had also upgraded Malaysia to "advanced emerging market" status, a move that will attract as much as US$3 billion of new inflows to the local stock market, Bloomberg quoted Barclays as saying.

Early this week, trading of the ringgit began on a strong note before drawing back on Thursday, reflecting the strengthening of the dollar against other major currencies.

It, however recovered in late trading Friday to close at 3.0900/0930 compared with last week's closing of 3.1010/1040.

Against the British pound, the ringit appreciated to 4.8460/8526 from 4.8710/8770 but declined against the euro to 4.1335/1381 from 4.0762/0794.

The local unit weakened against the Singapore dollar to 2.3287/3328 from 2.3237/3273 and against the yen to 3.6521/6569 from 3.6097/6129. -- Bernama

AirAsia maintains no fuel surcharge policy

2010-09-22T21:51:00.000+08:00

Low-cost airline, AirAsia Bhd, is maintaining its no fuel surcharge policy despite reports that other airlines are increasing previously-imposed charges.

In a statement here today, AirAsia said it was committed to keeping air travel affordable and would tackle fuel price incease with aggressive marketing and the strengthening of its ancillary business instead of relying on fuel surcharge to offset rising fuel cost.

Its regional commercial head, Kathleen Tan, said the airline has no intention of resurrecting fuel surcharge since it was scrapped in November 2008.

She said its strong seat sales and successful ancillary income were enough to offset the rise in fuel price, adding that it would use innovation to drive its costs down and were looking at various other revenue streams rather than impose a fuel surcharge.

"Imposing fuel surcharge may be an easy way out, but it can also be an addiction in driving artificial revenue to a company," she said. - Bernama

KNM proposes to consolidate shares

2010-09-01T21:57:00.000+08:00

KNM Group Bhd has proposed to consolidate its shares to improve its capital structure by reducing the number of shares but without affecting value of the securities.

The group is proposing to consolidate every four of its shares of 25 sen each into 1 ordinary share of RM1 each. The company has also proposed to amend its memorandum and articles of association to effect the share consolidation exercise.

As at August 30 2010, the issued and paid-up share capital of KNM (7164) is about RM1 billion, comprising 4.004 billion shares.

Upon completion of the proposed share consolidation, the issued and paid-up share capital of KNM would be rounded down to about RM1.0 billion, comprising about 1.0 billion consolidated shares.

The actual number of consolidated shares to be issued will however be determined based on the issued and paid-up share capital of KNM as at the entitlement date of the proposed share consolidation.
KNM said with the introduction of SPEEDS by Bursa Malaysia Securities Bhd, there will not be any suspension on the trading of the consolidated shares, pursuant to the exercise.

KNM said following the exercise KNM's capital structure there would be an immediate reduction in the number of KNM shares.

KNM shall benefit from easier management of a smaller number of shares, where the consolidated shares shall bear the same value of the existing KNM securities but at no expense to neither KNM nor its investors, it added.

24-8-10 INGRESS

2010-08-24T20:59:00.001+08:00

Kwong Hing buys Menara Pan Global

2010-08-20T20:22:00.001+08:00

Property developer and manager Kwong Hing Group has bought Menara Pan Global, located within the Golden Triangle, for an estimated RM160 million from PanGlobal Bhd, sources say.

Menara Pan Global, a 38-storey building in Jalan Puncak, off Jalan P. Ramlee, houses 18 levels of office space with a total built-up of 400,000 sq ft.

The 18-year-old building also houses nine levels of hotel suites operated by Pacific Regency, while another eight levels have a total of 420 parking bays.

A source told Business Times that Kwong Hing paid a deposit for the purchase last week.

The group, whose prized assets includes Wisma Hamzah Kwong Hing in Lebuh Ampang, now has assets valued at RM600 million.An official from Kwong Hing declined to comment when contacted.

It is understood that Kwong Hing may invest further to upgrade both the office space and suites to better compete with offices in the Golden Triangle.

The office lots are said to have 70 per cent tenancy.

Similarly, Kwong Hing will do some work on the 153-suite Pacific Regency, famous for its rooftop Luna bar, to improve its average room rate.

This purchase will see the group venturing for the first time into the hospitality sector.

A source said that the management team and the staff of Pacific Regency will be maintained where possible.

However, the name of the building could change.

It is understood that the sale forms part of PanGlobal's restructuring exercise. The company was delisted from Bursa Malaysia in July last year.

The Kwong Hing group's properties include Wisma KH in Jalan Sultan Ismail, Plaza Pengkalan in Jalan Ipoh and Wisma Fui Chui in Jalan Cheng Lok.

It also owns shopping centres along Jalan Tuanku Abdul Rahman and Jalan Petaling and Bangunan HSBC in Medan Tuanku.

19 Aug FBMKLCI

2010-08-19T22:00:00.000+08:00