Pecca Group Bhd plans to acquire a 80% stake in an Indonesian car leather upholstery maker firm, in its bid to enlarge its foreign presence in the automotive industry by entering into the Indonesian market.

The group said its wholly-owned subsidiary Pecca Leather Sdn Bhd (PLSB) on Monday (Oct 31) signed a memorandum of understanding with five parties — PT Multi Berjaya Asindo, CSC Automotive Sdn Bhd, Tan Kim Cheang, Neo Hwee Leong and Herny Pramana — for the acqusition of the stake in PT Gemilang Maju Kencana (GMK).

In a filing with Bursa Malaysia, Pecca said PT Multi Berjaya Asindo is involved in the trading of packing, carton box and injection tooling, while CSC is engaged with the production of car interior accessories and trading car accessories.

Neo is the general manager of GMK, while Herny is head of the finance department of the company.

PT Multi Berjaya Asindo is currently the largest shareholder of GMK with a 61% stake, followed by CSC Automotive (22%) and Tan (16%).

Post-acquisition, PLSB will emerge as the largest shareholder of GMK, with an 80% stake. The stake will cost PLSB 6.4 billion rupiah (RM1.94 million).

Neo will also emerge as a substantial shareholder with a 10% shareholding in GMK, with the remaining 10% owned by Herny, who currently owns a 1% stake in GMK. The 10% shareholdings in GMK will cost them 800 million rupiah each.

Pecca said PLSB, Neo and Herny would also inject funds totalling three billion rupiah into GMK for additional working capital, in accordance with the proportion of their shareholding.  

GMK is a company associated with Indonesia’s MPI group of companies.

After the proposed acquisition, Pecca said PLSB will seek to secure business and marketing support from MPI’s founder, Lim See Poh, and will also capitalise on the competency and experience of Neo and Herny.

“The well-established market presence of GMK will help Pecca accelerate its presence in this competitive industry,” Pecca added.  

Pecca’s share price settled 2.5 sen or 2.91% higher at 88.5 sen on Monday, giving the group a market capitalisation of RM666 million.

Source: The Edge Markets

Pecca proposes to acquire Indonesian car leather upholstery maker

Caely Holdings Bhd (CHB) has set plans to expand its manufacturing business segment via a proposed joint venture with an Indonesian counterpart for a new production facility with a total investment value of US$800,000.

Executive director Leong Seng Wui said the company is looking to execute the expansion by the first quarter (Q1) of next year, adding that the investments are to be in cash and machinery available in its Teluk Intan plant in Perak.

“We are in the midst of discussions on the percentage that Caely would take up. Moreover, we feel it is good timing to expand even though we have manufacturing facilities in Malaysia as we rely more on foreign workers,” he said during a press conference here today.

CHB also named seven new members to its board of directors (BoD) to revive its businesses and bring in additional revenue in the near future.

The seven new members are executive chairman Ng Keok Chai, executive directors Leong and Kenny Khow Chuan Wah, independent non-executive directors Datuk Kang Chez Chiang, Krishnan Dorairaju, Chong Seng Ming and Datuk Pahlawan Mior Faridalathrash Wahid.

“The ultimate aim of the new board is to work hard to revive the businesses and to reward all our employees and stakeholders for their long-standing support. We, the new management, will bring the company back on the right track,” he said.

With the appointment of the new members of the BoD, the company aims to stride forward with new business plans.

Besides that, CHB is also looking to re-strategise their direction by identifying and engaging market experts in the property development segment to revive the business.

“With additional land banks in Tapah and Klang Valley, we will be hiring experts in the property development sector to identify potential projects that will contribute positively to the company.

“This will also include future acquisitions to boost Caely’s overall business,” Leong added.

Executive chairman Ng Keok Chai said the new board would fully support and cooperate with the police on the investigation and do its best to recover as much as possible to benefit the company and its shareholders.

“In addition, the newly appointed forensic auditor Virdos Lima Consultancy (M) Sdn Bhd, will be able to continue with their investigation with the support from the new board, including providing the necessary documentation relevant to their investigation to the extent possible,” he said.

Since February 2022, CHB has been embroiled in a legal case of misappropriation of funds which involves the company’s founder and former executive director Datin Fong Nyok Yoon, her husband Datuk Alan Chuah Chin Lai and former BoD.

The couple is alleged to have misappropriated RM30.55 million from Caely (M) Sdn Bhd (CMSB) through 10 questionable related-party transactions.

On 26 August, a change in the boardroom took place when the entire former board members, excluding Fong, were removed, and  Leong, Kang, Ng and Krishnan were appointed as the new BoD.

An additional three members, Khow, Chong and Mior, were appointed to the board on 27 September.

On 5 October, the new BoD lodged a police report requesting a police investigation into the alleged misappropriation of funds amounting to RM30.55 million involving CMSB during the tenure of the previous board members.

In the latest development regarding the civil suit against 12 of its former directors, CHB filed a claim on the possible systematic misappropriation of funds of not less than RM30.55 million in CMSB by Fong and Chuah and other former directors, as they had deliberately concealed and made no disclosure to the public, fraudulent concealment and conspiracy to injure, among others.

“The new board is hopeful of recovering the misappropriated funds which were supposed to be utilised for the business development and growth of the company in the best interests of the stakeholders as soon as possible,” added Ng.

Source: NST

Caely Holdings to expand manufacturing business to Indonesia via joint venture

ETRONAS Chemicals Group Bhd has completed its acquisition of specialty chemicals group Perstorp Holding AB (Perstorp).

“We are delighted to have completed this acquisition. The acquisition is part of our stepping-out strategy, creating a new platform for our growth in the specialty chemicals industry.

“It also goes beyond earnings potential; Perstorp is a strategic fit with similar values and talented workforce who are experts in the industry. We are excited to welcome the Perstorp team to the PCG family,” PCG managing director/ chief executive officer Ir. Mohd Yusri Mohamed Yusof said in a statement.

In May 2022, PCG signed a securities purchase agreement with Financière Forêt S.à.r.l, a company under PAI Partners, a European private equity firm, to acquire the entire equity interest in Perstorp for a base purchase of €1.538 billion (RM7.018bil) cash.

With the completion of the acquisition, Perstorp is now PCG’s wholly-owned subsidiary.

Moving forward post-acquisition, PCG intends to continue preserving and growing the value of Perstorp, as the next few years will be a crucial chapter for both companies.

Among the major development plans include the expansion of Perstorp’s global presence by strengthening its position in the Asia Pacific markets through PCG’s industrial know-how and tapping into its substantial customer base.

Additionally, PCG will also strive to ensure the timely completion of Perstorp’s growth projects in a safe and cost-effective manner.

Perstorp has several projects lined up in the near future, including the launch of Project Air which aims to reduce carbon emissions through the production of sustainable methanol.

Recently, The European Union Innovation Fund selected Project Air, as one of 17 large-scale green tech projects, which together will be granted more than €1.8 billion.

Source: The Star

PetChem completes acquisition of Swedish specialty chemicals group Perstorp

Investments by Malaysian companies in India amounted to US$7 billion (US$1=RM4.63) as bilateral relations continued to flourish in different sectors, Malaysia’s charge d’affaires in New Delhi Amizal Fadzli Rajali said.

Malaysian companies in India operate in areas such as automotive, fast-moving consumer goods (FMCG), infrastructure, healthcare, oil and gas and renewable energy.

“To date, Malaysia’s FDI (foreign direct investment) inflows into India amount to US$7 billion,” he said at the Malaysian National Day reception here on Friday.

On the other hand, he said 150 Indian companies have invested US$3 billion in Malaysia in sectors such as biotechnology, chemicals, financial services, manufacturing, pharmaceuticals and the textile industry.

He said Indian companies are encouraged to expand their operations in Malaysia by taking advantage of the country’s hub position in the Southeast Asian region.

Meanwhile, Indian Minister of State for External Affairs Rajkumar Ranjan Singh, who was the chief guest on the occasion, hailed the growing bilateral relationship and called Malaysia one of India’s major partners in the region.

Singh said the two countries enjoy a “thriving friendship” and their cooperation is growing in various fields.

Those attending the Malaysian National Day reception included ASEAN envoys, diplomats from various missions, Indian government officials, business people and members of the Malaysian and local communities.

Source: Bernama

Malaysian companies invest US$7 billion in India as bilateral relations continue to flourish: charge d’affaires

Scientex Bhd is partnering with Japan’s leading producer of liquid and paste packaging systems, Taisei Lamick Co Ltd, to expand its market share in the region.

Scientex’s wholly owned subsidiary Scientex Packaging Film Sdn Bhd signed a share sale agreement (SSA) with Taisei Lamick to acquire 8,100 ordinary shares representing 80.2 per cent equity interest in Taisei Lamick Malaysia Sdn Bhd (TLM) for RM63.8 million cash.

Upon completion of the SSA, Scientex will hold 80.2 per cent equity in TLM, while Taisei Lamick will hold the remaining 19.8 per cent equity.

Scientex chief executive officer Lim Peng Jin said this partnership is a meaningful step for the company on multiple fronts.

“This collaboration, leveraging on the

strong reputation and collective strengths of Scientex and Taisei Lamick.

“The partnership is poised to bring industry-defining cost-competitive quality products to regional clientele and hence potentially expand our flexible packaging market share,” he said in a statement today.

Lim said the deal would enable Scientex to gain an immediate foothold into the fast-growing film business used in liquid and paste packaging, thus enhancing Scientex’s offering of diversified and customised flexible packaging products, especially in the food and beverage (F&B) sector.

“It will also allow us to expand our capability into producing customised healthcare and hygiene-related packaging and widen the range of value-added packaging solutions in the FMCG sector,” Lim said.

Tokyo Stock Exchange-listed Taisei Lamick is involved in the manufacturing and sale of plastic films, retort pouches, and pouches with zippers for automatic filling with liquids and pastes.

The company also manufactures and sells DANGAN auto fillers for liquids, pastes, peripheral devices, and technical services.

Its subsidiary TLM is primarily involved in the manufacturing and selling of printed and laminated flexible light packaging materials for F&B and fast-moving consumer goods (FMCG) products.

The share acquisition is to be funded by internally-generated funds and bank borrowings and is not subject to the approval of Scientex shareholders and government authorities in Malaysia.

The acquisition is expected to be completed in the second half of this year and is anticipated to contribute positively to the earnings and net assets of Scientex for the financial year ending 31 July 2023.

Source: NST

Scientex partners Japan-based Taisei Lamick to expand into liquid, paste packaging

Farm Fresh Bhd intends to kickstart its regional expansion with its planned entry into Indonesia, the Philippines, and Hong Kong.

“In the shorter term, our immediate focus is on the Singapore market, as the completion of the Taiping processing plant will free up some capacity at our Larkin processing plant, enabling us to focus on our exports to Singapore which have already grown strongly over the last three years,” the dairy company said in a filing with Bursa Malaysia.

Farm Fresh group managing director and group chief executive officer Loi Tuan Ee said its Taiping farm and processing plant are expected to be completed by this year which will cater to the demand from the northern states of Malaysia for its chilled products.

“This, in combination with our increases in capacity at Muadzam Shah Facility, among others, will increase the group’s annual production capacity by 30 million litres in 2022.

“The additional capacity in Muadzam Shah Facility, in particular, will alleviate some of the capacity constraints that we have currently for portion packs within the ambient category,” he said in a statement.

“Moving forward, we are excited to launch our growing up milk this September, which we hope to make great strides among young children who are in need of a good and honest dairy product in their early years,” he said.

In the first quarter ended June 30, Farm Fresh’s net profit fell 20.7% to RM15.2mil, or 0.82 sen earnings per share from RM19.2mil, or 1.17 sem a year ago.

Farm Fresh recorded revenue of RM144mil, up 6.9% increase from RM134.8mil reported in the same quarter last year.

The growth was mainly from the higher revenue from ready-to-drink milk products, in line with the encouraging sales momentum amidst the recovery of economic activities, accompanied by the launching of new products.

Source: The Star

Farm Fresh eyes regional expansion

D’Nonce Technology Bhd (DTB) has proposed to acquire the entire stake in Komark (Thailand) Company Ltd for RM9.1 million from Komarkcorp Bhd’s wholly-owned subsidiary, General Labels & Labelling (M) Sdn Bhd, and diversify its business into the manufacturing and selling of self-adhesive labels.

“The company envisages that the contribution arising from the proposed acquisition will be more than 25 per cent of the net assets and/ or net profits of the group in the future,” it said in a filing to Bursa Malaysia today.

DTB Group is principally involved in end-to-end packaging and design solutions; precision polymer engineering services; cleanroom and contract manufacturing services; and supply chain management and sales and distribution of products.

Meanwhile, DTB has also proposed a renounceable rights issue of up to 434.69 million shares on the basis of one rights share for every one existing share held on an entitlement date to be determined later.

“We have also proposed to terminate the company’s existing employees’ share option scheme,” it added.

Source: Bernama

D’Nonce to diversify into self-adhesive labels manufacturing after Komark acquisition

Greatech Technology Bhd has entered into a memorandum of understanding (MOU), in relation to the proposed acquisition of a 60% equity interest in Irish automation specialist Kaon Automation Ltd.

In a statement on Thursday (Aug 11), the group said Kaon Automation is principally engaged in the provision of automation solutions for leading manufacturing companies globally in the medical device, automotive, electronics, and consumer goods sectors. 

It said the Irish medical technology sector is recognised as being among the top five global hubs, and is reputable for world-class expertise with excellent research centres and initiatives.

“With the combined solid expertise from Kaon Automation and Greatech, this will leverage the strengths of the two companies both in the business aspect as well as in the internal cohesiveness environment. 

“I trust that greater synergy for longer business sustainability will be derived from this strong partnership,” said Greatech executive director Datuk Tan Eng Kee. 

Kee added that the hallmark of the Irish people and their warm culture will influence and drive an incremental value chain to the organisation holistically.

“With this pursuit, technology and cultural integration will shape and transform our market outreach, while exposing our talent to globalisation, leading our team to aim far and soar high.

““I trust that with this notable engagement, Greatech is accelerating itself into a new defining moment, promising a more exciting adventure to come,” he said. 

At Thursday’s noon break, shares in Greatech settled 14 sen or 3.7% higher at RM3.92, giving it a market capitalisation of RM4.91 billion.

Source: The Edge Markets

Greatech enters MOU to acquire 60% stake in Irish automation specialist Kaon

The drone solutions provider has completed a total of 16 foreign M&As over the last 3½ year

MALAYSIAN drone solutions provider Aerodyne Group said they have completed 16 foreign mergers and acquisition (M&A) activities, and are currently closing another one in Brazil.

Aerodyne founder and CEO Kamarul A Muhamed said those were the total M&As were completed over the last three and half years, with 12 offices worldwide.

However, he did not disclose any values on those completed M&As.

“But it’s still barely enough, for example, in Latin America, we have an office in Santiago, Chile, but suddenly, there’s an opportunity in Brazil or Argentina, it will be very costly in terms of logistics.

“So, we might as well have other drone companies to deliver that solution by subscribing to our domain knowledge and our software system,” Kamarul said during the virtual MIDF Conversations event yesterday.

Aerodyne is a DT3 (drone tech, data technology and digital transformation) drone-based enterprise solutions provider which was ranked first in the world by Drone Industry Insights of Germany last year.

The group has over 900 drone professionals to operate on an unprecedented level in the unmanned aircraft systems services sector, has managed more than 560,000 infrastructure assets with 458,058 flight operations and surveyed over 380,000km of power infrastructure across 35 countries.

Kamarul noted that Aerodyne’s investment in Dubai and Australia have grown over five times in the first year of its investment which is in the middle of the pandemic.

“Why so? It is because we provided better technology for them. That’s the synergy, they give us market access, and we provide them with the technology,” he said.

He also highlighted that the pandemic turned out to be an opportunity for Aerodyne to venture into the agriculture division.

“At the start of the pandemic, I found myself with more than 50 people with nothing to do. So, we started agriculture and it turned out to be a very exciting decision.

“In just one and a half years, the agriculture division has now grown to 350 people,” he said.

According to him, the agriculture division has improved its customer productivity with a 30% yield increase per customer.

Meanwhile, when asked regarding the group’s intention for an IPO, he said Aerodynes plans to be listed in the next two years, while looking for the best market to list its business in.

It is also eyeing to expand its business by providing DT3 solutions to India’s agricultural market next month.

“There is a major push for this technology by the government over there, we have done the market study and some people have already started (providing) it.

“So, I am going to India in the first week of August to start the operations,” he added.

Kamarul said Aerodyne has a stable presence in Malaysia and the use of advanced digital technology and other DT3 solutions in agriculture can enable Malaysia to reduce its dependence on cheap labour.

To date, he said the company has an orderbook of about RM400 million in agricultural produce.

Source: The Malaysian Reserve

Aerodyne continues to expand abroad

Malaysia’s direct investment abroad rises in 2021

Inari Amertron Bhd is forming a joint venture (JV) with China Fortune-Tech Capital Co Ltd (CFTC) to carry out outsourced semiconductor assembly and test (OSAT) services in China.

In a filing with Bursa Malaysia, Inari said its wholly-owned subsidiary Amertron International Ltd has entered into a JV contract with CFTC (Yiwu) Equity Investment Fund Partnership (Limited Partnership) and CFTC Equity Investment Management (Beijing) Co Ltd.

CFTC (Yiwu) is a private equity fund administered by CFTC, while CFTC Equity is wholly owned by CFTC.

Inari said Amertron International will take up 54.4648% interest in the JV company, called Yiwu Semiconductor International Corporation, while CFTC (Yiwu) will own the remaining 45.5352% stake.

Amertron International will have to contribute RM283.33 million cash into the JV company while CFTC (Yiwu) will inject RM131.78 million of new cash investment, said Inari.

The group said it will fund the RM283 million with proceeds raised from its private placement completed in July last year, which raised RM1.03 billion.

The contract on Tuesday (June 28) came after Inari and CFTC entered into a memorandum of understanding on Oct 18 last year with the intention to set up this JV.

Inari said on Tuesday that the JV will enable it to improve its existing captive business strategy and expand its existing operations in the China market.

“This would enable Inari Group to diversify its product and customer base as well as adding revenue and earning streams with a potential IPO in China at later stages,” it said.

Inari said the JV also represents an opportunity to partner with a strong local technology fund which will help in opening up the China OSAT market for the group.

Inari closed one sen or 0.4% lower at RM2.66, giving it a market capitalisation of RM9.86 billion.

Source: The Edge Markets

Inari investing RM283 mil in JV with CFTC to carry out OSAT services in China

Pharmaniaga Bhd is looking to expand its market presence to the United Kingdom (UK), Turkey as well as the Middle East and North Africa (MENA) in the next two to three years, while also strengthening its presence in Indonesia.

Group managing director, Datuk Zulkarnain Md Eusope said Pharmaniaga is in active discussions with these countries.

“We are looking at easing the process (of entering the UK market) through products that have already been registered (in the country) and are not being sold properly in the UK market,“ he told reporters after announcing the group’s financial performance for the first quarter ended March 31, 2022, here today.

Zulkarnain added that there is a huge untapped potential in Indonesia that should be explored.

“We are in the midst of revamping the current business model of our public-listed logistics and distribution arm, PT Millenium Pharmacon International Tbk in Jakarta, and expanding the products portfolio of our manufacturing arm, PT Errita Pharma in Bandung,“ he said.

With the strategic business and aggressive marketing plans in place, Pharmaniaga aims to further enhance the profitability of its Indonesian division in the coming quarters, said Zulkarnain.

Meanwhile, on the rising active pharmaceutical ingredient (API) prices, he said the group currently has a buffer stock of three to six months.

“Some pharmaceutical products are affected by API shortages, but we are not relying on only one supplier for the API.

“We have at least three suppliers for now,“ he said, adding that the group will continue to monitor the fluctuations in the API prices.

He also revealed that Pharmaniaga is currently finalising the logistics and distribution contract extension agreement with the Ministry of Health, to be completed by year-end.

Source: Bernama

Pharmaniaga to expand presence overseas

Malaysia which has long ties with African countries has been urged to focus on Africa for more trade, investment, tourism and educational ties as the world’s second-largest continent offers numerous opportunities and vast potential for natural resources to be explored for mutual benefits.

In making the call, Somalia’s ambassador to Malaysia and Dean of African Heads of Missions in Malaysia, Abukar Abdi Osman said the rapidly changing global geopolitics following the military conflict in Ukraine, had forced many European countries to look to Africa for natural resources as well as oil and gas. 

He cited China as a country which dared to explore and invest hugely in Africa despite constraints such as language and cultural differences with the African continent, but today not only has China reaped the benefits of focusing on Africa at the right time but also many African countries have benefitted in terms of infrastructure development like new roads and highways, railway lines, healthcare facilities, ports, sports facilities and agricultural development.

“So, this is the right time… please wake up to the potential presented by Africa and build a strong will to explore Africa’s economic opportunities. In the past Malaysia has been left behind as it failed or was late to grab the opportunities in Africa, but there are plenty of opportunities still available (for Malaysia and other countries) and that’s why European countries are refocusing on Africa now,” he said.

Abukar Abdi, a former Somali federal minister was speaking to Bernama in an interview in conjunction with Africa Day on May 25. Africa Day is the annual commemoration of the foundation of the Organisation of African Unity on May 25, 1963, later transformed into the African Union (AU) on July 9, 2002.

The Celebration for 2022 is under the theme: Strengthening resilience in nutrition and food security in the African Continent. Africa is the world’s second-most populous continent.

Abukar Abdi stressed that at one point of time, Malaysian companies and businessmen were a bit active in entering Africa, but in the past many years, not much progress has been made in terms of doing business with Africa, a continent which today being seen as able to provide food security to the world due to its huge arable and fertile land for agriculture.

Several Arab countries are investing heavily in Africa, purchasing land for food production and cultivating wheat and other crops to ensure the food security of their nations.

Another pertinent point raised by Abukar Abdi is the many similarities that Africa shares with Malaysia, – climate, food and lifestyle, colonial history, people friendliness, rich in culture and being countries which are in the Commonwealth grouping, the Organisation of Islamic Cooperation (OIC) and the Non-Aligned Movement (NAM). All these will make things more easier for Malaysians and Malaysian companies to explore the huge potential and making the right decision to do business in Africa.

He said Africa was endowed with huge arable and fertile land for agriculture, water resources, rich in biodiversity, hydropower potential, metals and mineral reserves, such as gold, silver, zinc, titanium, chromium, platinum, diamond, copper, tin, iron ore, cobalt, coal, bauxite, tantalum, coltan, uranium, tungsten, besides untapped oil and gas deposits. 

According to United Nations, Africa is home to some 30 per cent of the world’s mineral reserves, eight per cent of the world’s natural gas and 12 per cent of the world’s oil reserves.  The continent has 40 per cent of the world’s gold and up to 90 per cent of its chromium and platinum. The largest reserves of cobalt, diamonds, platinum and uranium in the world are in Africa. It holds 65 per cent of the world’s arable land and 10 per cent of the planet’s internal renewable fresh water source.

The ambassador further said that, Africa has cheap labour force, a highly educated and skilled young workforce and a growing middle class who have the means to purchase new products offered in the market such as cars and other vehicles, electronic and electrical gadgets and new real estate properties.

Abukar Abdi pointed out that while Africa has all these resources and potential, Malaysia has financial resources, technology and the know-how as well as huge experiences in industrial development which if matched properly with Africa’s needs and resources, could result in a win-win situation for both sides.

Citing few fine examples, he said Malaysian companies, in the plantation sector could invest in the rubber and palm oil sector, cultivation and production of food crops like corn, cotton growing, garment and textile industries, rice cultivation, food processing, floriculture, livestock industry, agro based industry, fisheries, renewable energy and others.

He cited how Somalia which has the longest coastline in Africa has recently signed fisheries agreements with 30 Chinese companies. On the same note, Abukar Abdi pointed out that in Somalia, only less than one million hectare of fertile land has been cultivated out of the 15 million hectare of fertile land available in the country.

One important area where African countries are still lacking since the independence era – is to provide value addition in the agribusiness sector which could help to lift the living standards of millions of Africans and in this context Malaysian companies could invest in value added industries.

In infrastructure development, can develop affordable housing, build highways and roads, develop ports and airports and manufacturing plants.

“Malaysian national car companies can explore the opportunity to set up plants there, he pointed out.

In recent years, multinational vehicle manufacturers have successfully set up production plants in Africa.

Africa with some 1.3 billion people today has a growing consumer market. It is estimated that Africa has some 170 million people of middle-class category. 

Abukar Abdi said with a growing middle class more and more Africans are travelling, the Malaysian aviation industry should grab this opportunity by exploring the possibility of starting direct flights to African cities from Kuala Lumpur.

He also pointed out that despite negative reports about Africa in the Western media from time to time, the reality is far from that. Today many African countries are more politically stable with governments being democratically elected.

” I would like to advise the Malaysian business community… to visit Africa and explore what it offers, not just tourism attraction but also trade and investment opportunities,” he said.

“We welcome the Malaysian public and private companies with open arms,” he said adding that most African countries offer simple and easy system to attract foreign investors.

Abukar Abdi explained that most Malaysian products and goods to Africa like palm oil are exported through third countries due to lack of direct business or trade ties. This is not favourable in term of cost and this situation could be tackled, if Malaysian companies take a deep interest in Africa and increase their trade with the continent.

He said Malaysian businessmen also can benefit from the African Continental Free Trade Area (AfCFTA) Agreement – the largest free trade area in the world considering the number of countries participating. AfCFTA connects 1.3 billion people across African countries with a combined Gross Domestic Product (GDP) valued at US$3.4 trillion.

“Africa-Malaysia relations have yielded tremendous results. Over the years, particularly during the pre-covid era, both sides witnessed the exchanges of high level visits, a boost in trade and economic cooperation, cooperation in education etc.

“There have been minor issues which have been tackled administratively. However, despite minor setbacks, as I indicated earlier cooperation between Africa and Malaysia has been favourable and we are hoping that the coming years will yield much greater cooperation in various sectors,” he said.

Source: Bernama

High time for Malaysia to invest, increase trade ties with Africa – Ambassador

Kein Hing International Bhd on Thursday announced it has awarded an RM5 million construction contract to a third party main contractor in Vietnam for the proposed construction of a single-storey factory.

Kein Hing’s wholly-owned subsidiary Kein Hing Thai Nguyen (Vietnam) Co Ltd (KHTV), has awarded the job to the contractor for the proposed construction of the factory on a piece of industrial land located at Diem Thuy Industrial Park, Phuc Binh District, in Vietnam.

In a bourse filing, Kein Hing said the proposed construction of the factory with a total built-up of approximately 53,000 square feet will cater for the future expansion plans of the group in Vietnam, particularly the business of metal stamping, precision
machining, assembly of components and fabrication of tools and dies.Advertisement

Kein Hing noted further that the group’s production and warehouse space are expected to increase by approximately 9% against its current total capacity with the proposed construction.

“The growth in customers’ demand for parts and metal components in Vietnam has created a great opportunity for the group to expand its manufacturing business in Vietnam.

“The proposed construction is strategically situated within the Diem Thuy Industrial Park, Thai Nguyen where business activities have been expanding rapidly in recent years.

“Therefore, the intended use of the factory upon completion of the proposed construction would principally be engaged in the business of metal stamping, precision machining, assembly of components and fabrication of tools and dies mostly for the multinational corporation customers in Vietnam,” it said.

Kein Hing added the construction of the proposed construction is expected to commence in May 2022, and barring any unforeseen circumstances it is expected to be completed by December 2022.

KHTV intends to finance the construction costs of the proposed construction through bank borrowings.

Kein Hing’s shares finished three sen or 2.91% lower at RM1, bringing it a market capitalization of RM108.9 million.

Source: The Edge Markets

Kein Hing to construct RM5m factory in Vietnam as part of future expansion plans

Supermax Corporation Bhd via its US-based subsidiary Maxter Healthcare Inc will build an Advance Manufacturing Facility in Brazoria County, Texas, United States.

Supermax said the new facility will be the company’s 18th manufacturing plant worldwide and its first in the United States.

According to the company, the new 215-acre manufacturing facility will showcase cutting edge capabilities through expanded use of artificial intelligence and robotic engineering and will comprise a total of eight buildings.

“Phase one will begin construction in the second quarter of 2022 with glove production expected to start in the second quarter of 2023,” it said in a Bursa Malaysia filing today.

The company had earlier announced an investment of US$350 million (RM1.4 billion) in the first of four construction phases.

The Supermax facility in Texas will cater to at least 10 to 15 per cent of annual medical nitrile glove demand in the US over the next two to four years in the first phase alone. The second phase will follow closely, meeting 20-25 per cent of demand and consumption in the US over the next four to six years.

Supermax founder and executive chairman Datuk Seri Stanley Thai said manufacturing within the US has always been a desire of the company.

Supermax group has engaged ARCO/Murray, the top builder for warehouse and distribution space (according to Engineering News-Record) for this project.

Supermax exports to 165 countries and has distribution centres and operations in the United States, Canada, UK, Ireland, Brazil, Japan, Hong Kong and Singapore.

Source: Bernama

Supermax to build advanced manufacturing facility in Texas, US

Thong Guan Industries Bhd is exploring an opportunity to set up a joint venture (JV) in the mid-western region of the United States that is intended for the US market.

The board of Thong Guan agreed on a possible expansion into the world’s biggest market for stretch films, said CIMB-CGS in a report. However, the Russia-Ukraine war might cause systemic risks to Thong Guan’s sales demand, input costs and margins, said the report.

As the world’s biggest economy, the US is also the biggest user of stretch films. The report said Thong Guan believes the US uses around 1.2 million tonnes of stretch films per annum. In comparison, the group’s annual production of stretch film last year was 78,000 tonnes.

The group is still doubling its expansion capacity in order to reach its forecast of RM2bil in turnover by financial year 2026. In its financial year 2021, revenue amounted to RM1.2bil.

Thong Guan plans to install another production line for stretch films before the end of the first quarter of its 2022 financial year, while the construction of its new courier bag production unit was completed at the end of last year.

“While details on Thong Guan’s US plant are still in the works, we note that this possible endeavour should not strain its balance sheet.

Its cash pile of RM292.9mil at the end of 2021 dwarfed its total borrowings of RM181.2mil.

The report said the interest that Thong Guan pays is almost 70 times less than its earnings before interest and tax of RM127.1mil.

“That gives a lot of headroom to gear up if it sees fit,” said the research report.

The broker is keeping its “add” call but lowered its target price for the stock to RM4.54 from RM5.70 as Thong Guan is believed to have the ability to raise selling prices of its goods to deal with inflationary pressure.

Source: The Star

Thong Guan poised to expand into US market

Main market-listed Caely Holdings Bhd hopes to set up a joint-venture (JV) in Indonesia this year to increase its production capacity to cater to the growing global demand for lingerie.

Chief executive officer Gok Ching Hee said the company is currently in the midst of finalising the terms and conditions of the agreement with a potential JV partner, that would then invest in a plant in the republic.

“Our JV partner will invest in the plant, which will likely be ready in May or June this year. We target to sign the JV agreement by the end of March,” he told Bernama.

Gok said Caely’s current main export destinations for its original equipment manufacturer undergarment products are Germany, the United States and Canada, however, it has recently been getting more enquiries from companies in Turkey, France and Australia.

He pointed out that the enquiries from these companies were already double Caely’s existing production capacity, which led to the company’s decision to expand further, with the plant in Indonesia aiming to increase capacity threefold, compared with its factory in Teluk Intan, Perak.

“We believe that this recent large amount of orders we are getting is due to companies shifting away from sourcing their products in China and that we are benefitting from the trade war in the international arena.

“Judging by the increasing momentum of orders we are getting, we are confident that we will use up the capacity of the Indonesian plant,” he said.

Caely, which was established in 1986 to produce women’s intimate apparels, had allocated RM5 million for working capital in October last year to diversify its products including the production of fabric face mask.

Gok said the company would also utilise part of this investment to produce active wear, nightwear and kids wear, soon.

“We have signed a licensing agreement with Disney and this has opened a lot of opportunities for us because we can produce Disney brand apparels,” he said.

He added that the company had planned to eventually move its lingerie manufacturing to Indonesia while its Malaysian plant would focus on producing face masks and other apparels.

Source: Bernama

Lingerie maker Caely to set up JV in Indonesia to ramp up production

Gading Kencana Sdn Bhd, one of the largest solar farm operator in Malaysia, is collaborating with Saudi Arabia’s March Global LLC to develop US$1 billion (RM4.2 billion) solar farms in the Middle East, Africa and Asean regions.

The memorandum of understanding (MoU) was inked during the Expo 2020 Dubai.

In a statement yesterday, Gading Kencana managing director Datuk Ir Muhamad Guntor Mansor Tobeng said the partnerships covered activities, transactions, relationships, contracts and works related to developing solar farms with a primary focus on the Middle East and North Africa (Mena) region.

“The Mena region was chosen because it has great potential in renewable energy exploration in line with current global developments that want to reduce dependence on conventional energy sources.

“Besides that, this MoU is also a recognition to companies from Malaysia that prove that Malaysia has expertise in the field of renewable energy, especially solar, which is able to play a role globally through such cooperation,” he said.

He said the first collaboration between Gading Kencana and March Global is to develop a solar farm in Khulais, Saudi Arabia with a capacity of 100 megawatts followed by the exploration of investment potential in Ghana and several countries in North Africa.

For the Asean region, he said Gading Kencana and March Global aimed to develop solar farms in Vietnam.

Muhamad Guntor said the MoU enabled Malaysian companies such as Gading Kencana to step onto the international stage by taking advantage of developments in the global renewable energy sector with new generating capacity reaching almost 280 gigawatts by 2020, about 45% higher than 2019.

He said according to the International Energy Agency (IEA), the performance marked the highest year-over-year increase since 1999.

“Global electricity consumption capacity from renewable energy sources is projected to increase by more than 60% between 2020 and 2026, reaching more than 4,800 gigawatts.

“Very high capacity additions will be the ‘new normal’ in 2022,’’ he added. 

Source: Bernama

Gading Kencana inks US$1b solar farms partnership with Saudi’s March Global

ABLE Global Bhd is seeing a surge in enquiries for its products from the Americas, particularly from the Caribbean islands and the surrounding areas such as Haiti, Jamaica, Venezuela and even Port Louis in Mauritius, which is off the eastern coast of Africa.

These countries are not the typical customer base for the majority of Malaysian companies, but they are part of Able Global’s customer portfolio, which is set to grow further with its recently commissioned production plant in Mexico.

If the name “Able Global” sounds unfamiliar, it is probably because investors would have known it as Johore Tin Bhd previously. The group recently underwent a name change to better reflect the change in its main business — from tin can packaging to food and beverage (F&B).

The name change was also to show the continuing investment it is putting into expanding the F&B segment, says CEO Edward Goh in an email reply to The Edge.

The group’s investment in Mexico, under Able Dairies Mexico, is a result of a joint venture between Able Global’s wholly-owned subsidiary Able Dairies Sdn Bhd and three Mexican shareholders. Able Dairies holds 43.13% equity interest in the venture.

“We are targeting 30% to 40% of our production capacity to be sold in Mexico while the remainder can be sold to the US, South America, Central America and the Caribbean. If the freight rate is advantageous, we may even ship to South Africa,” says Goh.

It targets to break even with a 30% utilisation rate by the first year of operations.

At present, the group is selling its products from Malaysia to smaller chain stores in the US, while in Mexico and Venezuela, Able Global’s products are retailed in Walmart through its partner Calkins, Burke and Zannie de México (CBZ).

“We could not sell in larger quantities [to the US] due to the freight rate being more than US$10,000 (RM42,167) (per container) now. Shipping from Mexico is nearer, we can send to the border via train and that will reduce the cost significantly.

“Right now, we have a lot of enquiries coming from the Caribbean islands and the surrounding area such as Haiti, Jamaica, Port Louis, Venezuela, as well as the US, but we are not selling to them on a big scale [yet].

“We have existing customers in the Caribbean islands and [our products] will be exported from Mexico in the future. We are also trying to develop new markets in Haiti, Jamaica, Peru, Venezuela and other countries around this region,” adds Goh.

This is where the commissioning of the production plant in Mexico comes into play for the group’s ambition to stamp its mark on the Americas, despite several setbacks in getting it up and running due to the Covid-19 pandemic.

With the plant operating since July, Able Global will expand into markets in the Americas and Caribbean.

Goh says the group is in the midst of finalising the audit and paperwork with the Mexican authorities and that Able Global’s marketing team has been working hard at contacting customers to take orders for the export market.

Able Global has already obtained the Safe Quality Food (SQF) certification for Able Dairies Mexico in order for the group to list its items in Walmart and other big supermarket chains in the US.

“This [SQF] opens a new revenue stream for our group, and we believe this will also strengthen our foothold in the North American market,” says Goh.

The next step is for the said supermarkets, such as Walmart, to conduct an audit on the factory. Goh says Walmart is scheduling an audit with Able Dairies Mexico.

Able Global is also awaiting the issuance of the health certificate from the Ministry of Health in Mexico following the completion of its audit, in order for Able Dairies Mexico to export products from its facilities. The health certificate is a prerequisite by importing countries before a product can be sold on their shores.

Another important piece of the puzzle for Able Global’s aspirations in the Americas is its partners. The group has the advantage of having CBZ — a wholesale distributor of brands as well as food producer — as its partner.

CBZ is an authorised supplier to Walmart and other American chains, says Goh, so this means Able Global has a ready channel to the big supermarkets as soon as the necessary certifications are obtained.

Aside from successfully commissioning its production plant in Mexico, Able Global is also working on expanding its product portfolio currently, to move beyond sweetened condensed milk, evaporated milk and milk powders.

Soon, the group will be adding UHT milk to its portfolio. The equipment is currently being installed and is set for commissioning in a few months. The group is also looking at the popular plant-based milk alternatives.

“One of the products that we are looking to add is plant-based milk alternatives. They are gaining tremendous interest globally and sales are forecast to grow at a 9.4% compound rate annually from 2020 to 2030.

“Six of the top 10 global markets are situated in Asia-Pacific. Notably, the plant-based beverage category has one of the fastest growth in the post-pandemic era due to changes in customer perception. We see it as a perfect fit for our product portfolio and are looking into this,” notes Goh.

The outlook for Able Global’s F&B segment seems bright, with demand being consistently strong despite the volatility in raw material prices, shares Goh.

Selling prices are adjusted monthly to better reflect costs, he adds.

Notably, Able Global’s dairy business makes up about 75% of group revenue, with the remainder coming from its tin can manufacturing business, which was once the group’s bread and butter. Able Global saw its revenue fall 13% to RM502.26 million in the financial year ended Dec 31, 2020 (FY2020) from RM579.79 million in FY2019, while net profit was down 17% year on year (y-o-y) to RM39.49 million from RM47.48 million.

The huge increase in steel prices, opines Goh, will only decrease demand for tin cans slightly in the near term. The group has managed to pass on the raw material cost for its tin cans to customers, similar to its competitors, given how rapidly steel prices have increased.

“In the past, when the price went up 2% to 3%, we would just absorb it. But this time around, it has increased by 50% to 55% from a year ago. There is no company that can absorb this kind of increase,” he says.

In the long term, it is likely that customers will look for alternative packaging materials if steel prices remain elevated, adds Goh.

While it has pivoted its main business, Goh says the group’s tin manufacturing segment will remain and there are no plans to hive off this operation.

“However, our F&B segment will be one of the important core businesses. We have invested a lot in it, and we also have a lot of technical and supporting teams in our F&B segment,” he says.

Interestingly, the group is also planning to diversify into industrial property development given its belief that demand for warehousing and manufacturing is on the upswing in selected sectors. It sees continued demand for industrial land and properties moving into 2022 and beyond.

For 3QFY2021, Able Global’s net profit dropped 44.2% to RM8.77 million from a year ago, while revenue shrank 16.2% y-o-y to RM117.83 million.

The results were dragged down by lower manufacturing output from its F&B segment owing to the Full Movement Control Order, which restricted the workforce to 60%. The company also had to be closed for almost three weeks in July owing to the Enhanced Movement Control Order.

Able Global’s share price has shed 19.71% year to date to close at RM1.58 last Thursday, valuing the group at RM482.9 million.

Source: The Edge Markets

Able Global looking to stamp its mark on the Americas

Rubber glove maker Supermax Corporation Bhd plans to invest US$350 million (US$1= RM4.21) in the first phase of its manufacturing facility in the United States (US).

In a statement to Bursa Malaysia today, the company said the 87-hectare manufacturing facility in Brazoria County, Texas, would be undertaken by its US-based subsidiary, Maxter Healthcare Inc.

It said the four-phase manufacturing facility is expected to produce 400 million gloves per month in each phase, with phase one construction to begin in the first quarter (Q1) of 2022 and starts production by Q4 2022.

“When all the four phases are completed, the total installed production capacity would be a whopping 1.6 billion gloves per month, or 19.2 billion gloves per annum,” it said.

According to Supermax, phase one facility would consist of the group’s North America manufacturing headquarters, a research and development centre, trading centre and a full-fledged employee facility centre.

“This project will be Supermax’s 18th manufacturing facility worldwide and the first in the US,” it said.

The company said its board of directors had previously approved a capital expenditure of US$550 million for this investment.

Founder and executive chairman Datuk Seri Stanley Thai said the manufacturing plant would be equipped with world-class capabilities, such as automatic, robotic engineering manufacturing with Artificial Intelligence and Industry Revolution 4.0.

“Our manufacturing facilities will also emphasise on renewable energy and waste water management,” he said.

Supermax Healthcare Inc chief executive officer CK Tan said the manufacturing facility, when operational, would strengthen the US personal protective equipment (PPE) supply chain by building capacities.

“We will be capable of catering to at least 10 per cent to 15 per cent of the total annual medical glove imports into the US over the next two to four years.

“As our capacity increases, we will be able to meet 20 per cent to 25 per cent of the demand and consumption in the US over the next four to six years,” he said.

Supermax Healthcare Inc is also a subsidiary of Supermax based in the US.

Source: Bernama

Supermax to invest US$350m in phase 1 of US manufacturing plant

Guan Chong Bhd plans to invest RM50 million in capital expenditure (capex) in the next two years for its Germany plant Schokinag Holding GmbH.

In a statement today, the company said the capex will mainly fund capacity expansions for the Mannheim-based plant, aiming to ride on the recovery in Europe as borders open up in the continent.

The company said the growing revenue contribution from Schokinag also necessitates the expansion.

Managing director and chief executive officer Brandon Tay Hoe Lian said the company finally made its long-overdued visit to Schokinag in October and is happy to physically meet the team to discuss on operation optimisations and growth strategies.

“The better performance in Schokinag, even without new capacity put in, is not only a good indication of economic recovery in the European region, but also a reflection of our German team in growing our market share in industrial chocolate in Europe.

“Hence, we believe the decision to expand Schokinag’s capacity is necessary to support the team in their growth ambition, and we will continue to evaluate other expansion options where needed to capture the ongoing opportunities,” he said.

Meanwhile, Guan Chong’s net profit eased 26.3 per cent to RM34.46 million in the third quarter (Q3) ended September 30, 2021 from RM46.78 million recorded in the same quarter a year ago.

The company said the lower net profit recorded for Q3 was mainly due to the higher freight costs and competitive margins that were committed last year.

Revenue in the same quarter increased 18.6 per cent to RM998.1 million from RM841.59 million, backed by Schokinag’s contributions and better overall sales tonnage.

For the nine month period, Guan Chong’s net profit eased 40.5 per cent to RM104.74 million from RM175.92 million, while revenue grew 6.5 per cent to RM2.83 billion from RM2.66 billion.

Moving forward, Tay said the company is seeing signs of demand for cocoa products and ingredients recovering in tandem with economies reopening and higher vaccination rates worldwide.

“The commencement of the Ivory Coast factory mid-2022 will also be timely to capture the growing demand trend,” he added.

Source: NST

Guan Chong to invest RM50mil in capex for the next two years

Robust demand for power infrastructure fuels growth

As a niche utility infrastructure company with strong expansion plans, Pestech International Bhd is an alternative small-cap play to the domestic utility sector.

It is also a cheaper proxy to the other “big boys” in the sector, judging by forward valuations as compiled by Kenanga Research.

Pestech, which has been deriving its revenue almost entirely from Malaysia and Cambodia, is seeking a bigger presence in the high-growth South-east Asian region.

To achieve this, the group aims to capitalise on the robust demand for power infrastructure in countries like Cambodia, the Philippines and Papua New Guinea.

Given its proven track record of commissioning over 565km of electric transmission lines and cables, Pestech should find it well-positioned to bid for such regional projects.

Pestech, whose shareholders include Norges Bank or the manager of Norway’s Pension Fund, is also going big into the rail electrification business regionally.

Apart from Malaysia, it is already eyeing regional rail projects in Asean, leveraging on the group’s existing full fleet of rail electrification plants and machineries.

In Malaysia, Pestech has been involved in the Gemas-johor Bahru Southern double track project and the Mass Rapid Transit Line 2.

Hong Leong Investment Bank (HLIB) Research has previously said that Pestech has “good chances” to secure contracts for upcoming Malaysian mega-rail projects such as MRT Line 3, the East Coast Rail Link, the high-speed rail and the Klang Valley Double Tracking (Phase 2).

The power infrastructure and rail electrification segments contributed 61% and 35% of Pestech’s revenue in the financial year ended June 30, 2021 (FY21), respectively.

Going forward, Pestech also hopes to take advantage of the growing opportunities in the renewable energy (RE) and electric vehicle (EV) infrastructure segments regionally.

In its 2021 annual report, the group said it wants to venture further into the area of photovoltaic solar generation, waste-to-energy, sustainable mobility solutions and autonomous non-fossil fuel based distributed microgrid

power supply solutions.

It is noteworthy that Pestech’s work for its first large-scale photovoltaic solar plant (LSS) of 20MW located in Bavet City, Svey Rieng Province, Cambodia, has started.

Pestech’s aim to leverage on RE opportunities came at the right time, as Asean targets to achieve a RE capacity of 35GW to 40GW by 2025.

On the EV infrastructure front, Pestech is looking at providing EV charging stations in commercial buildings, condominiums and along the highways.

HLIB Research has previously said that Pestech’s venture into EV infrastructure bodes well with Malaysia’s Low Carbon Mobility Blueprint 2021-2030 to accelerate national EV adoption rate.

In FY21, Pestech reported double-digit growth in both revenue and bottom line, despite the Covid-19-related challenges.

Revenue hit a record high as it grew by 11.5% year-on-year (y-o-y) to Rm889mil,

while net profit expanded by almost 29% y-o-y to Rm66.2mil.

Profit margin in FY21 also improved to 12%, as compared to 8% in the previous financial year.

Moving forward, the group is well positioned to sustain its financial performance momentum, backed by its outstanding order book of Rm1.76bil as at June 30, 2021.

“The contribution of the order book continued to be diversely generated from among the Asean region in line with the strategy of the group to have a well-spread business exposure in this geographical area,” it said in the annual report.

Since the beginning of 2020, Pestech has secured five contracts cumulatively worth Rm438.61mil, which include a traction power supply contract for the Malaysia-singapore Rapid Transit System.

Recently, Pestech won a Rm157mil contract from the National Grid Corp of the Philippines (NGCP) for the South Luzon Substations upgrading project.

Under the contract, the group will deliver engineering, procurement, construction and commissioning (EPCC) works involving seven substations, with project duration ranging from 180 to 600 days.

It is noteworthy that this is Pestech’s sixth contract from the NGCP since 2016.

Kenanga Research analyst Teh Kian Yeong is positive about the contract win and sees the award as a sign of NGCP’S confidence in Pestech to deliver the project.

“Pre-tax profit margin for this new contract is still within the 9% and 11% range.

“We see vast potential in the Philippines for transmission line and substation EPPC projects, as 30% or 28 million of its population are still without access to electricity supply,” he says in a note issued on Nov 23.

Looking ahead, Teh expects a “seasonally weaker” first-half of FY22. This is especially in Cambodia, which is facing a rainy season, deterring project progress.

“We continue to like this niche utility infrastructure play which could potentially benefit from the revival of mega-projects domestically and the fast-growing energy infrastructure development market in Indo-china.

“As such, we continue to rate the stock an ‘outperform’ with an unchanged target price of RM1.39,” says Teh.

Year-to-date, the Pestech stock is up by 6.4%, outperforming key utility players such as Tenaga Nasional Bhd, YTL Power International Bhd and Malakoff Corp Bhd that have declined in the same period.

Yesterday, Pestech reported that its net profit for the first quarter of FY22 ended Sept 30 fell by 21.2% y-o-y to Rm11.87mil.

Revenue dropped by 16.5% y-o-y to Rm207.81mil.

“The group’s revenue reflects the stage of project progress during the quarter under review”, says Pestech.

Source: The Star

Pestech going big into S-E Asia

Malaysia has continued to expand its investments in Indonesia via the signing of five memorandums of understanding (MoU) and agreements that will be sealed by the private sectors of both countries worth US$3.1 billion today, said Prime Minister Datuk Seri Ismail Sabri Yaakob.

The premier said Malaysia’s total investments in Indonesia amounted to US$12.53 billion while Indonesian investments in Malaysia were worth US$1.16 billion in the second quarter of this year.

“I believe Malaysian investments in Indonesia are big,” he told reporters in a media conference with Indonesia’s President Joko Widodo at Istana Bogor in conjunction with his inaugural three-day official visit to the country which started on Tuesday.

Ismail Sabri also called for the involvement of Malaysian companies in the development of Kalimantan, which shares a border with Sabah and Sarawak.

Indonesia is building its new capital in eastern Kalimantan.

The country is an important trade and strategic partner for Malaysia, with the total trade between them worth US$15.67 billion in 2020, according to the prime minister.

Source: Bernama

Malaysia expands investments in Indonesia with signing of MOUs, agreements worth US$3.1 bln

Pestech International Bhd has entered into a memorandum of understanding (MoU) with Gartena Holdings Ltd to explore the opportunity to cooperate in proposing and developing Waste-2-Energy solutions in the ASEAN region.

Gartena is a company operating in the United Kingdom and Sweden which has developed and holds the worldwide patent for the world’s technically advanced, efficient and environmentally friendly Waste-2-Energy process.

According to Pestech’s bourse filing on Wednesday, both parties wish to cooperate in proposing and developing Waste-2-Energy solutions in the ASEAN region under the MoU. 

Pestech said it will have the primary responsibility for new client selection, including identifying potential projects, arranging meetings and preparing potential bidding documents. 

In addition, Pestech — an integrated electrical power technology company — will also be responsible for project management and overall construction of the plant with any possible technology localisation.

Meanwhile, Gartena will be responsible for providing Pestech with technical and marketing materials, applicable cost estimates and appropriate content for agreements and other project documentation.

Gartena will also provide all necessary technical drawings, engineering services, localization of the operational processes of the Waste-2-Energy plant, and all relevant technical know-how of the Waste-2-Energy solution for the Gartena process.

“Pestech and Gartena are collaborating to recycle the energy contents from wastes (either general waste, scheduled waste or medical waste) to generate electricity instead of dumping [them in] the landfill [which] will bring hazardous effects to the environment. If granted, it will bring a positive sustainable development effect to the society,” added Pestech.

Shares of Pestech closed unchanged at RM1.17, valuing the integrated electrical power technology company at RM890.57 million.

Source: The Edge Markets

Pestech signs MoU with UK-Sweden operating firm to develop Waste-2-Energy solutions in ASEAN region

Malaysia remains one of the top trading partners and investment sources of the Philippines, its Secretary of Department of Trade and Industry (DTI) Ramon M. Lopez said.

He said despite the pandemic, Malaysian companies’ interest to invest or expand their current businesses in the Philippines remain strong.

“In 2020, Malaysia is ranked as the 10th trading partner of the Philippines, with balance of trade in the favour of Malaysia. In terms of investment, Malaysia was the 12th source of IPA-approved investments, registering a growth of 43.90 per cent from previous year.

“And this year (Jan to June 2021), Malaysia is placed as the 6th source of FDI (foreign direct investment),” the Philippine Trade and Investment Centre Kuala Lumpur (PTIC-KL) quoted him as saying in a recorded keynote message at the virtual Second Philippine Investment Forum for Malaysia held on Thursday.

According to the statement from PTIC-KL, Lopez assured that the Philippines is open for business, and expressed gratitude to Malaysia for its continued confidence and interest to invest in the Philippines.

He also encouraged more investments from Malaysia in five priority industries – manufacturing, agribusiness, services, infrastructures and construction, and energy.

The statement said that the Philippines also encourged Malaysian investments in halal-specific sectors, from food and beverage companies to Islamic banks.

“Malaysian companies are invited to invest in the Philippines to further grow the Halal industry and serve the Muslim (as much as 10 to 12 million Filipinos) and non-Muslim population.

“It was reported that an investment from Malaysia worth US$130 million, covering some sectors above, has been recently committed,” it added.

Meanwhile, it quoted Commercial Attache at the PTIC-KL Katrina Banzon as saying that the Philippines had received US$1.66 billion worth of Investment Promotion Agency (IPA)-approved investments from Malaysia between 2018 and 2020 in the five priority industries.

The forum was part of the one-day Philippine Investment Forum 2021, held to promote the Philippines as an ideal investment destination and partner for companies in Malaysia.

Among the highlights at the forum were on the Philippines Economic Zone Authority (PEZA) as a one-stop and non-stop shop for investors.

It added that a presentation on the recently-enacted tax and incentives regime under the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE Act) of 2021, which lowers the Corporate Income Tax to 25 per cent and bestows the President power to grant customised incentives for big ticket investments, had also drawn interest from participants.

The Philippine Investment Forum 2021 was organised by the PTIC KL and Philippines Economic Zone Authority (PEZA) in collaboration with the the Philippines’ Department of Trade and Industry in Kuala Lumpur and the Embassy of Malaysia in Manila.

The event was well-attended by potential investors and strategic partners, including government officials, company executives and private sector representatives from Malaysia and other countries in the region, the statement said.

Source: Bernama

Malaysia One Of Top Trading Partners And Investment Sources Of The Philippines