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Malaysian billionaire Robert Kuo enters Taiwan’s wind energy market

Tycoon Robert Kuok is entering the wind energy market in Taiwan through a collaboration between two companies linked to him.

In a joint statement yesterday, Singapore-listed PACC Offshore Services Holdings Ltd (POSH) and Kerry TJ Logistics, a unit of Hong Kong-listed Kerry Logistics Network Ltd, said they were forming a joint-venture (JV) company – POSH Kerry Renewables (POSH Kerry) – in Taiwan.

The JV aims to provide an integrated solutions platform for offshore wind farm developers, EPCI (engineering, procurement, construction and installation) contractors and wind turbine manufacturers.

“This is the first time that two major players in their respective fields have integrated supply chain and marine solutions on a single platform capable of supporting the entire offshore renewables project life cycle,” POSH and Kerry TJ said in the joint statement yesterday.

“Leveraging the capabilities and assets of both companies, POSH Kerry will provide a comprehensive portfolio including the end-to-end transportation of wind turbines and components, as well as diversified marine solutions during the installation, operations and maintenance of offshore wind farms in Taiwan,” it added.

The JV between POSH and Kerry TJ unveiled yesterday came just weeks after Taiwan awarded the rights to develop its first commercial-scale offshore wind projects.

The projects, expected to be executed over two phases, could deliver more than five gigawatts of wind power to Taiwan’s shores.

Kuok is a controlling shareholder of POSH, an offshore marine services provider. The Malaysian tycoon also owns interests in Taiwan-based logistics firm Kerry TJ through its stake in Kerry Logistics Network.

Meanwhile, the JV partners said they had signed a memorandum of understanding (MoU) with Rolls-Royce to explore suitable designs for walk-to-work and services operations vessels specific to offshore wind operations.

A separate MoU was also signed by the JV partners with Macquarie Capital and Swancor to jointly explore collaboration opportunities in the Taiwan offshore wind market.

According to POSH deputy CEO Lee Keng Lin, Taiwan is one of the fastest growing offshore wind markets in Asia.

Business Times quoted Lee as saying that POSH viewed Taiwan as “an open market that welcomes contributions from foreign players with good track records in the offshore marine services sector”.

By Lee’s estimate, about one-third or 40 vessels on POSH’s current fleet are suited for deployment in offshore wind projects, the Singapore business daily said.

Enterprise Singapore, an agency championing enterprise development, voiced its support for the POSH-Kerry TJ joint venture.

Director for Precision Engineering, Marine & Offshore and Engineering Services, Enterprise Singapore, Ho Chi Bao said: “As renewables form an increasing part of the energy mix in Asia, Singapore companies such as POSH can leverage their expertise in operating offshore vessels and project logistics to contribute to wind energy developments.

“Enterprise Singapore has been working closely with POSH on its entry into Taiwan through sharing insight into the market landscape and facilitating connections to key business partners.

“We will continue to facilitate such partnerships to enable Singapore players to offer their solutions and expand into the renewables space.”

Source: The Star

Posted on : 13 July 2018

Malaysian billionaire Robert Kuo enters Taiwan’s wind energy market


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Source: NST

Posted on : 11 July 2018

PPB to expand global footprint


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Berjaya Food Bhd has entered into a memorandum of understanding (MoU) to expand its Kenny Rogers Roasters (KRR) and Jollibean franchises in India.

The food and beverage company said it planned to open at least 30 KRR outlets and 75 Jollibean kiosks costing about US$50mil (RM205mil) in India over the next five years.

The MoU with World Iconic Brands (WIB) Hospitality Pvt Ltd India will also mark the opening of Jollibean’s first kiosk outside Singapore.

As for KRR, there is currently only one outlet in India, which was opened in October 2016 in the city of Chandigarh.

Berjaya Food group chief executive officer Sydney Quays said the company was looking to enter as many cities in India as possible.

“We will keep opening more stores as we identify more locations – we have the capability to do a lot more than the 30 KRR and 75 Jollibean outlets,” he told reporters after the signing of the MoU.

With the new partnership and the expansion in India, he said it expected to see more interested parties looking to purchase the franchise.

“This is a positive expansion for both brands and like any other business, there will be a gestation period.

“We are hopeful that it will contribute very positively to the group in the future,” he said.

Berjaya Food, in November 2017, completed the disposal of its loss-making KRR operation in Indonesia, while it has put in place several strategies to turn around the KRR business in Malaysia.

The major contributor to its revenue is its Starbucks business.

In the fourth quarter ended April 30, 2018, Berjaya Food posted a net profit of RM837,000, returning to the black after recording losses of RM3.37mil a year earlier.

For the full year, the group saw net profit fall 88% to RM1.4mil, while revenue grew 5.6% or RM34.2mil to RM639.6mil.

WIB Hospitality managing director Gaurav Marya said the company expected to open the first KRR store under the partnership in the next three to four months.

“There is great potential for the business in India, which has 970 shopping malls and another 400 currently being developed.

“We will open a few stores over the next six to eight months to study the preferences of Indian consumers and then we will scale up the business,” he said.

Source: The Star

Posted on : 16 August 2018

Berjaya Food to expand Kenny Rogers ops in India


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Chew: Generally, for foreigners, the lease is 50 to 70 years, and [getting] 70 years is under very special circumstances. What the draft law is proposing is up to 99 years, which is quite lengthy.

Campbell: For a country of this size, it has a significant amount of industrial parks

Vietnam is in the process of transitioning from an agricultural-based economy to becoming one of the most popular manufacturing and industrial countries in Asia. It currently has 356 industrial parks spanning 94,000ha, with more to be launched, said John Campbell, Savills Vietnam industrial service senior consultant.

“For a country of this size, it has a significant amount of industrial parks,” he said during his presentation on ‘Industry and logistics: current opportunities and outlook for Vietnam’. He and other experts from ACSV Legal Vietnam, VSIP, KPMG Malaysia and Vietnam, and Public Bank Vietnam were among the speakers at a talk, entitledPromising investment spotlight — Why Vietnam now? The event was co-organised by VSIP and Public Bank Vietnam. VSIP is one of the largest developers of integrated industrial parks and mixed-use areas in Vietnam.

Of the 356 industrial parks, 220 are operational and 73% occupied, which is “quite a healthy balance right now,” said Campbell.

Vietnam is divided into three economic zones — North, South and Central, which is relatively new. “The north and south are the biggest,” he added.

In Hai Phong in the north, where there are more import and export activities, Deep C Industrial Zones will be opening up 550ha of land.

In the south, a 1,000ha industrial park will be opening up in Phu My, which is located in Ba Ria-Vung Tau province in the southeast of the country.

VSIP will be developing a few industrial parks. In the north, there is the 500ha VSIP Bac Ninh II in Bac Ninh within 20km to 25km of Hanoi central business district. In the south, there is the 1,000ha VSIP Binh Duong III, close to Ho Chi Minh City.

“Bac Ninh is one of the provinces in the north that have been receiving a lot of interest in the past couple of years, especially since the occupancy in Hanoi has increased so much that there is not much land available,” said Campbell.

“VSIP Bac Ninh is close to the central business district. This means that as much as it is built for manufacturing, it is also a logistics option due to its close proximity to the business district.”

As for Binh Duong III, the location is great for investors as it is very close to Ho Chi Minh City. Binh Duong is also known as the manufacturing capital of Vietnam.

Special administrative economic zones

To attract investors, the Vietnamese government is proposing three special economic zones — Van Don, Bac Van Phong and Phu Quoc. According to ACSV Legal Vietnam senior associate Elaine Chew, the government is currently drawing up a draft law on special administrative economic units in Van Don, North Van Phong and Phu Quoc.

Special economic zones are a type of economic zone with a more liberal set of economic laws to foster growth and improve a location’s competitiveness.

Under the draft law, preferential treatment will be given to identified projects in the special administrative economic zones, among which is that no investment projects will be required before organisations are established as well as tax preferential treatment. The enterprise registration certificate will be also issued within three to five days and the investment registration certificate within 15 days.

Under the draft law, the land leases for special administrative economic zones will be longer than normal — 70 years for a normal term lease compared with 50 years in other economic zones, while a special term lease will be 99 years.

“Land use rights are slightly controversial. Land in Vietnam is owned, operated and maintained by the state so there is no concept of ownership but rather the right to use the land in the form of a lease. Generally, for foreigners, the lease is 50 to 70 years, and [getting] 70 years is under very special circumstances. What the draft law is proposing is up to 99 years, which is quite lengthy. In some people’s opinion, it is far too long,” said Chew.

In general, she said, the idea behind the draft law is great but it remains to be seen whether it will be passed. “It is not without controversy, especially issues relating to cluster development and employee working conditions.” She said the government has to find a diplomatic way to overcome the controversy and provide more clarity to enable the law to be approved.

Source: The Edge Markets

Posted on : 10 August 2018

Investment opportunities in Vietnam’s economic zones


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The Holstein Milk Company Sdn Bhd, which produces milk under the Farm Fresh brand, has invested RM85 million to acquire a dairy farm and a plant in Melbourne, Australia, to meet the demand for fresh milk in Malaysia.

Operations Director Azmi Zainal said of that amount, RM45 million was spent to take over the plant from a dairy company there while RM40 million was used to buy a 607-hectare farm as well as to establish a sperm bank for breeding cattle through artificial insemination.

“We started taking over the plant and the farm in July and are in the stage of renovation and bringing in the necessary machinery for processing fresh milk.

“When works are completed early next year, the plant will be able to produce 27,000 litres of milk daily, which will then be brought into this country to be re-processed at the Muadzam Shah Cattle Research and Innovation Centre,” he added.

He was speaking to reporters today after Pahang Mentri Besar Datuk Seri Wan Rosdy Wan Ismail paid an official visit to the company’s farm in Muadzam Shah here along with Pahang State Agriculture, Agro-Based Industry and Biotechnology Committee Chairman Datuk Seri Mohd Soffi Abd Razak.

Azmi said that with the additional production, The Holstein Milk Company was expected to control almost 30 per cent of raw milk production in the country compared with 17 per cent to-date.

The company operates a 12-hectare farm in Muadzam Shah with a production capacity of 80,000 litres of milk daily, comprising 60,000 litres of Ultra High Temperature (UHT) milk and 20,000 litres of fresh milk.

The milk comes from top-quality livestock comprising 2,800 dairy cattle, including Holsteins, at the farm.

“To meet the demand for fresh milk in the country, the company is also assisted by about 15 satellite breeders in the state, including from the Panching and Pekan areas,” he noted.

In its effort to expand its fresh milk market, The Holstein Milk Company recently launched UHT milk in a new 200 ml Tetra Edge pack in chocolate, kurma (date) and cafe latte flavours.

Azmi said the pack, introduced in July, was targeted at school students as the milk would last longer than that marketed by the firm previously.

“For a start, we are producing 12,000 litres daily. We have seen very encouraging response and are in the process of raising production to 30,000 litres daily,” he added.

Besides Malaysia, Farm Fresh is also marketed in Singapore and is expected to penetrate the Philippine market next year.

Source: Bernama

Posted on : 06 September 2018

Farm Fresh invests RM85m in farm, plant in Australia


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Petronas, through its subsidiary Petronas Lubricants International, has opened its Research and Technology Centre in Latin America, the largest facility dedicated to the development of fluid technology to meet the region’s automotive and industrial sector’s growing needs.

The Research and Technology (R&T) facility located at the Petronas Lubricants Brazil’s blending plant here, focuses on development of the latest industrial fluids, lubricants and greases, while serving as a centre for technical expertise, customer assistance, product management and quality control activities.

“For PLI, this new R&T centre in Latin America symbolises our commitment and deep-rooted belief in the power of technology to help industries succeed in the future,” said PLI group managing director and chief executive officer Giuseppe D’Arrigo at the launch.

Also present were PLI’s partners and customers in the automotive and industrial business, as well as Petronas vice-president of marketing (downstream business) Datuk Seri Syed Zainal Syed Tahir and PLI head of Americas, Guilherme de Paula.

The US$8mil investment joins PLI’s network of satellite R&T centres around the world, including China, Malaysia, South Africa and North America. These facilities have their nucleus at the Petronas Global Research and Technology Centre in Turin, Italy, which was opened in March this year.

“We believe in Brazil’s growth ambitions and are committed to our goal to fulfil the market requirements of the largest economy in the region,” said De Paula.

The R & T centre, which covers an area of over 2,400 sq m and houses state-of-the-art facilities including ISO 17025 accredited laboratories for its team of chemists, engineers and technicians to perform more than 105 different ASTM (American Society for Testing and Materials) methodologies.

“This is not just a physical structure that houses the hardware and people who will deliver fluids to our customers. It represents our partnership with worldwide leaders in automotive and industrial sectors. It is our promise to innovate towards your winning performance and future success,” said Syed Zainal.

PLI markets Petronas Selenia, Petronas Syntium, Petronas Urania, Petronas Tutela automotive fluids, and a range of Petronas industrial lubricants and greases to its customers in the region. Over the past six years, the company had moved from seventh to fourth position of the top lubricant players in Brazil, which testifies to its capability and credibility in meeting customers’ needs.

Earlier this year, PLI announced it will be committing 75% of all future R&T projects to achieve its carbon dioxide emissions reduction agenda, through its unique approach in technology and co-engineering of specialised lubricants products.

Source: Bernama

Posted on : 15 September 2018

Petronas opens new R&T centre for Latin America


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Source: Bernama

Posted on : 09 October 2018

Tap opportunities in Oman, firm urged


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Source: NST

Posted on : 29 September 2018

Velesto Energy eyes Middle East markets


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Source: NST

Posted on : 31 October 2018

Sime Darby buys Australia’s Heavy Maintenance Group


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Source: Bernama

Posted on : 13 October 2018

Uganda invites Malaysian firms to invest in its O&G industry


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Argentina’s state-controlled energy company YPF and Petroliam Nasional Bhd (Petronas) are forming a joint venture to invest US$2.3bil (RM9.55bil) over the next four years in the country’s Vaca Muerta shale oil fields, the president’s office announced.

Petronas would have an equal stake in the project through its subsidiary Petronas E&P Argentina SA, the presidency said in a statement. Petronas has not yet commented on the announcement.

The Belgium-sized Vaca Muerta deposit, located in western Argentina, is regarded as having the world’s second-largest shale gas and fourth-largest shale oil deposits.

“This investment will allow us to increase YPF’s petrol production by 30% by 2022, which will represent a total increase for Argentina of 15%,” the statement said.

The companies’ objective is to reach a production equivalent of 60,000 barrels a day by 2022, it said. Total investment could reach US$7bil within 20 years, it said.

Successive governments have targeted Vaca Muerta to reverse Argentina’s energy deficit but the plans have been hindered by a lack of infrastructure.

YPF chief executive Daniel Gonzalez told Reuters last month the company would bolster both unconventional oil and gas production by investing between US$4bil and US$5bil per year through 2022.

Petronas and YPF have already partnered in pilot exploration and production initiatives and will begin development of the unconventional fuel project in the Amarga Chica block in the province of Neuquen.

The announcement is good news for the beleaguered government of Mauricio Macri, which was forced to seek an International Monetary Fund bailout earlier this year.

Macri discussed the deal in a meeting on Tuesday with YPF president Miguel Gutiérrez, Finance Minister Nicolás Dujovne and Energy Secretary Javier Iguacel, the president’s statement said.

Source: Reuters

Posted on : 06 December 2018

Petronas in RM9.55bil JV


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Source: Bernama

Posted on : 23 November 2018

SilTerra to set up RM2.9b wafer fabrication plant in Beijing


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Source: Bernama

Posted on : 08 December 2018

YTL plans to buy Marriot brand hotel in Madrid


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Berjaya Corp Bhd (BCorp) will build Okinawa’s most outstanding hotel at a total investment of about US$400mil (RM1.65bil), inclusive of land cost.

Okinawa Four Seasons would “set a new standard” on the islands south of Japan, executive chairman Tan Sri Vincent Tan said.

Tan said the gross development value (GDV) of Four Seasons Resort and Private Residences Okinawa is expected to be US$1bil.

“Baring unforeseen circumstances, we may make US$600mil on this Okinawa project,” he said at a briefing after signing an agreement with Four Seasons Hotels and Resorts Asia Pacific to manage the Okinawa hotel and residences.

This is his second Four Seasons project in Japan, the first being Four Seasons Hotel and Hotel Residences in Kyoto, which opened in 2016, and which he is in the midst of negotiating with several parties for a sale.

Previous reports said Tan would like to sell the Kyoto hotel for about US$700mil (RM2.93bil) to US$800mil, which translates to a divestment gain of US$400mil.

“(Four Seasons Hotel and Hotel Residences) Kyoto is very good and very successful for us. It is among the top-three hotels in Japan and I believe Okinawa will also be an outstanding success,” Tan said.

He has so far sold half of the 57 residences in Kyoto. Using the same template to reduce construction cost, the plan is to sell all the 120 residences and 40 villas in Okinawa. It will have 120 hotel rooms.

“I am very happy we made the decision to invest in Japan and we are looking for other opportunities too. Japan has been good for us,” he said.

If he succeeds in selling the Okinawa venture as well, Tan would be making a neat US$1bil from both projects.

While the math looks good, it seems a bit odd that Tan is, at the same time, thinking of listing the hotel business on the Singapore stock exchange while selling his trophy hotel assets.

In December 2018, Tan told the media that Berjaya Land Bhd (BLand) was undervalued. As the hotel business was parked under BLand, he was thinking of carving out the hotel assets and list them in Singapore. BCorp has about 70% in BLand.

“It is good for us to bring back proceeds from Kyoto. It will help to manage our debt-equity ratio. People pay a premium for trophy assets, so it does not matter as long as the profit is good.

“There are some Malaysian hotels we will keep. We are entrepreneurs running a business. So we have to be flexible. We are not running a fund,” Tan said.

Going back to his plans for Okinawa, although Kyoto – being an ancient and former capital of Japan – is rich in culture and history, the Okinawa adventure seems a lot more exotic and exciting because of its size and seafront view.

Tan combined various land parcels to get his 100 acres in Onna Village, bought at about the same time as the five acres on which the Four Seasons Hotel and Hotel Residences in Kyoto currently sits on.

Tan declined to say how much he had paid for the 100 acres but according to a 2016 report by The Star, the carrying cost of the land in Okinawa for BLand was RM82.8mil.

Tan did not borrow for the land purchase and said banks would fund the construction. The company said it preferred to work with an anchor bank rather than several banks and it would involve Japanese banks too.

The project is expected to take four years to complete but Tan aims to finish it in three years. He has been to Okinawa 12 to 15 times.

Like its low-rise Kyoto hotel, Tan said the Okinawa hotel will also be a four-storey structure fronting crystal-clear waters.

Tan said the hotel and residences would take up 30 acres and he could build a retail mall and two to four-star hotels on the remaining 70 acres.

“Okinawa is a very good market. We can do a shopping mall and two to four-star hotels. We can build higher (than the Four Seasons), so these other hotels will still get a view,” he said.

Tan has not finalised the room rates but with Kyoto fetching between US$1,200 and US$1,500, he reckoned US$1,000 would be very doable for Four Seasons Okinawa.

“There are many three and four-star hotels there, at between US$700 and US$800 a night,” he said.

Meanwhile, in a November 2018 report, Malaysian Rating Corp Bhd (MARC) affirmed its ratings on BLand’s outstanding RM500mil medium-term notes (MTN) programme guaranteed by Danajamin Nasional Bhd at AAA(fg) and RM150mil MTN programme guaranteed by OCBC Bank (M) Bhd at AAA(bg). The outlook on the ratings is stable.

MARC pointed out that BLand’s standalone credit profile remained weighed down by the weak domestic property market, its sizeable debt obligations and modest earnings from non-gaming subsidiaries.

BLand has mainly relied on proceeds from asset disposals and refinancing to address its financial obligations.

“BLand’s domestic property projects are largely limited to ongoing developments in Bukit Jalil, Kuala Lumpur, and Georgetown, Pulau Pinang, which have a combined GDV of RM1.1bil.

“Unbilled sales from these projects stood at RM153mil as at June 30, 2018, providing some near-term earnings visibility,” said MARC.

Source: The Star

Posted on : 18 January 2019

Berjaya Corp to invest RM1.65bil in Okinawa Four Seasons Hotel


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Source: Bernama

Posted on : 31 December 2018

Top Glove considering setting up factory in Turkey


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TCIE Vietnam Company, a member of Malaysia’s Tan Chong Motor Group, will build a new car factory in Hoa Khanh industrial zone in the central city from 2019, with total investment of US$50 million.

The city’s Investment Promotion Agency (IPA) confirmed that the company has completed procedures to soon commence the project, Vietnam News Agency reported.

The agency said TCIE Vietnam had invested US$55 million between 2013 2017 to produce the first locally-assembled Nissan Sunny and Nissan X-Trail SUV car models at the Da Nang-based factory — the first and only Nissan Sunny assembly plant in central Vietnam.

In a meeting with the city’s leadership last month, TCIE said it would increase investment to US$150 million in the coming years to promote production and sales of cars in the central and nationwide market.

TCIE said it sold 3,500 Nissan Sunny models in 2018 and contributed 2.2 trillion VND (nearly US$95 million USD) to the city’s budget.

The company plans to produce 5,100 cars, with an estimate contribution of US$110 million to the city’s budget in 2019.

TCIE also plans to produce Nissan vans and Nissan trucks in the near future.

Source: Bernama

Posted on : 25 February 2019

Tan Chong Group to invest extra US$50 mil in Vietnam


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Source: NST

Posted on : 14 February 2019

Fairview buys private Scottish school


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Ranhill Holdings Bhd is venturing with Thai-based Treasure Specialty Co Ltd (TS Co) to explore the development of a 1150MW CCGT power plant in Kedah to export power to Thailand.

According to MIDF Research, the collaboration aims to address Thailand’s capacity woes given the availability of infrastructure in Malaysia.

“Southern Thailand is underserved with poor connectivity to Thailand’s existing gas pipelines and weak grid connections.

“A few coal plants had been proposed in recent years to serve southern Thailand but were shelved given strong opposition by environmentalists,” the research house pointed out.

Ranhill is expected to take a 70% stake in the collaboration while TS Co acquires the remainder stake.

TS Co is also advising Ranhill for its Thai-based water businesses and is likely to take the lead in the project development in Thailand.

MIDF Research said feasibility studies are expected to be undertaken with regard to the plant’s development.

Moreover, prior to the project’s special purpose vehicle (SPV) proceeding with negotiations with Thailand’s sub-committee on electric power cooperation between Thailand and neighbouring countries, a government-to-government agreement has to be secured for both Malaysia and Thailand.

For capex, at RM2.5mil per MW to RM3.5mil per MW, MIDF Research expects the Kedah CCGT project to be between RM3bil and RM4bil.

“Given the proximity to southern Thailand and availability of existing gas supply infrastructure in Malaysia, we think Ranhill could achieve competitive rates for its power export, relative to Thailand’s wholesale rates of 2.3 baht per kwh – 4.2 baht per kwh,” the research house noted.

On the returns potential, MIDF Research estimates the power plant to entail “reasonably good” internal rate of returns of 10% to 12% based on a typical 21-year power purchase agreement.

“Potential earnings is massive and may more than double Ranhill’s existing profit base, should Ranhill take even a 50% stake in the project SPV,” it noted.

Despite the share price appreciating substantially since late last year, the research house’s current valuation has yet to factor in the potential of the Kedah CCGT power plant and Johor sewerage project.

“Our call and target price of RM1.30 is under review pending a management meeting this week,” MIDF Research said.

Source: The Star

Posted on : 27 February 2019

Ranhill in tie-up with Thai company


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The government will work on a programme to help accelerate the overseas expansion of Malaysian entrepreneurs, according to Datuk Seri Saifuddin Nasution Ismail.

The Domestic Trade and Consumer Affairs Minister said the initiative would involve getting rid of existing bureaucratic red tape to make it easier and faster for Malaysian companies to expand their brands overseas.

“We will work on a programme to fast track the process for companies wanting to expand overseas so that they can take advantage of the vast opportunities available in foreign markets to grow,” Saifuddin said.

“These companies can inform the ministry which areas they need our assistance in, and we will facilitate them in expanding overseas,” he told reporters after a dialogue session on China-Asean Foods Market Opportunities here yesterday.

Saifuddin said Malaysian companies could leverage on the well-established government-to-government ties that the country has to break into the respective overseas markets.

On China’s market, he said the doors were open for more Malaysian companies to tap into the world’s second-largest economy, citing the recently established ties with China Cooperative Trade Enterprise.

He said the state-owned enterprise, which boasts a business size of 5.4 trillion yuan, has expressed readiness to open up the market for Malaysian products.

Source: The Star 

Posted on : 26 February 2019

Government to facilitate companies expanding overseas


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Prime Minister Tun Dr Mahathir Mohamad’s three day visit to Manila, beginning today, can pave the way for Malaysian entrepreneurs to explore new areas of investment in the neighbouring country.

Charge d’Affaires of the Malaysian Embassy in the Philippines Rizany Irwan Muhamad Mazlan said the halal industry is among the new potential investment areas for Malaysian entrepreneurs to explore in the Philippines.

“As a Muslim nation which has an advanced halal industry, we shall take advantage and venture into the Philippines’ halal industry including in the Islamic finance, logistics, services and other sectors,” he told Malaysian media here.

As the Philippines’ close neighbour, Malaysia could help the country in building the capacity of its people in the various sectors including the economy, trade and social, especially in the southern part of the country, to create a holistic development in the region.

“Malaysia is Manila’s second biggest trading partner in Asean after Singapore and is the country’s fifth largest source of Foreign Direct Investment (FDI) with US$287.3 million recorded last year or 8.2% of the Philippines’ overall investment,” he said.

Currently, several influential Malaysian companies are actively involved in the country’s property, banking, automotive, manufacturing and hospitality sectors.

A Malaysian company, Alloy Mtd Group (AlloyMtd) according to him, were awarded contracts valued at RM400 million to develop government administrative centre in Bataan Province and Nueva Ecija through their local unit, MTD Philippines Inc.

“For me, this adds value to the image of our country in the Philippines,” he said.

On the positive development in the southern Philippines, following the ratification of Bangsamoro Organic Law and the setting up of Bangsamoro Transition Authority (BTA), Rizwan Irwan said it opened up an avenue for the Malaysian government and its private sector to explore various opportunities.

It would also provide a new dimension to the trade relationship between the two neighbours.

“In southern Philippines, they look at Malaysia as a ‘role model’ … we shall take this opportunity to increase our strategic relationship with (the southern Philippines), not only as a partner for peace but also as a partner for development,” he said.

Rizany Irwan also said the administration of the southern Philippines would be more in order following the establishment of the BTA.

This he said, would be the catalyst for vibrant economic ties between Malaysia and the southern Philippines, which should be taken advantage by the Malaysian investors.

“When the people in the southern Philippines see the development, they will not turn to subversive elements. The society will get involved with the development in the southern Philippines when there are economic activities, infrastructure development, a good education and health system,” he said.

The total trade between Malaysia and the Philippines in 2018 rose 8.7% to RM26.1 billion from RM25.5 billion in 2017.

The value of Malaysia’s export to the Philippines last year was RM16.92 billion, compared to the value of its import from the country which stood at RM9.19 billion with the balance of trade favouring Malaysia.

Source: Bernama 

Posted on : 06 March 2019

Mahathir to pave way for new areas of Malaysian investment in Philippines


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Source: Bernama

Posted on : 22 March 2019

Proton to build plant in Pakistan


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Proton Holdings Bhd, a 51%-owned subsidiary of DRB-Hicom Bhd, has been on a roll with its latest plan to set up an assembly factory in Pakistan.

The carmaker, which has been struggling in past years due to declining sales, is seeing signs of recovery following the emergence of China-based Geely which acquired a 49.9% stake in Proton in 2017.

In a statement reply to StarBiz, Zhejiang Geely Holding Group said the move to set up a factory in South Asia was “part of Geely’s commitment to help restore Proton to its position as a bestselling brand in Malaysia and also a leading Asean brand.”

Proton setting up factory in Pakistan will be its first facility in South Asia, tapping into a new market in a country with a population of 210 million.

The plant will be a joint effort between the Malaysian carmaker and its local partner Alhaj Automotive.

Hong Leong Investment Bank (HLIB) Research said the plant in Pakistan marks an important milestone for Proton to expand its export market and becoming an international OEM.

The research house reckons that Proton may not need to pump fresh capital expenditure into the plant in Pakistan as Proton will not own it.

This would, in turn, benefit DRB-Hicom in the long term.

“Al-Haj had already acquired land for an assembly plant for Proton cars nearby Port Qasim area in Karachi.

Al-Haj will own the assembly plant by itself, while Proton will provide the necessary technical support to Al-Haj,” HLIB said.

It reckons that Al-Haj is the exclusive authorised distributor and assembler of Proton vehicles in Pakistan, following an official signing ceremony back in August 2018. It was reported back then that Al-Haj planned to introduce modern and high tech vehicles in different categories including entry level sedans, mid-level sedans, crossovers/SUVs, MPV and hatchbacks in Pakistan.

“We are positive with the new Proton plant set-up in Pakistan, in order to cater to the local Pakistan market, as well as potentially, the regional South Asia market.

“We understand that Proton will not incur capex for the Pakistan assembling plant, as Proton does not own the plant,” HLIB said in its recent report.

It maintained its “buy” call on DRB-Hicom with a target price of RM2.58 on the back of strong demand from Proton’s first SUV model, the X70, which set a precedent to the next model launches by Proton.

“We believe the strong demand for Proton’s new X70 will provide confidence to the market on Proton’s subsequent new model launches (based on Geely platform),” HLIB said.

Three months ago, Proton launched its first SUV model, the X70, which has boosted the carmaker sales significantly.

Proton’s sales rose 42% year-on-year to 12,300 units in the first 2 months, of which almost half was from SUV X70 sales.

The SUV X70 sales had also boosted DRBHicom earnings.

The group recorded a net profit of RM73.02mil for its third quarter ended Dec 31, 2018, compared with a net loss of RM70.03mil in the previous corresponding period, due to better operating financial performances from all of its business divisions.

Revenue in the third quarter rose to RM3.17bil from RM2.9bil a year earlier.

“The higher revenue was contributed by the better performance of the automotive companies, including the sale of the X70 SUV by Proton, which was launched in December 2018,” DRB-Hicom said.

Source: The Star 

Posted on : 25 March 2019

Another boost for Proton


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Lotte ChemicalTitan Holding Bhd’s joint venture in the United States is expected to increase group earnings beginning next year after the operations of its two plants stabilise.

The projects – a one-million-tonne per annum ethane cracker plant and a 0.7-million-tonne per annum mono ethylene glycol (MEG) facility – will add 0.64 tonnes or an additional 18% to Lotte Chemical’s total capacity based on the apportionment of its equity stake.

Maybank IB Research has raised the company’s financial year 2020 (FY20)-FY21 earnings forecast by 8.6% and 19.3%, respectively, on the back of higher expected contributions from the two projects.

“Previously, we assumed a contribution of RM40mil in FY20 and RM80mil in FY21. Based on our latest forecast, it was too modest.

“FY19 earnings estimates are unchanged as the US associates will break even and have zero impact on Lotte Chemical’s earnings, based on our forecast,” it said in a research note.

Contribution from the projects to Lotte Chemical are forecast to be RM162mil in FY20 and RM289mil in FY21.

The research house has also upgraded Lotte Chemical from a “hold” to “buy” with a target price of RM4.70, as the share price has de-rated and is now exhibiting deep value.

“Lotte Chemical’s share price has declined by 6% in the past month and is trading at a deep discount, relative to its peers, based on its price-to-earnings ratio, enterprise value-to-earnings before interest, taxes, depreciation and amortisation and price-to-book value.

“We forecast a 5.4% dividend yield in FY19 despite the current outlook,” the research house said in a note.

The two US projects begun operations in February and is now undergoing commissioning ahead of a full commercial production.

The official launch is scheduled for May 7 and the total project cost is US$3bil, consistent with its initial budget.

Lotte Chemical has associate stakes in both projects, 36% in the ethane cracker plant and 40% in the MEG plant.

These are from its 40% holding in Lotte Chemical US, which then has a 90% shareholding in Lotte Axial Chemical Corp LLC US (ethane cracker plant) and wholly owns Lotte Chemical Louisiana LLC (MEG plant).

The US$1.9bil ethane cracker is run with a local US partner, Westlake Group, which holds the remaining 10%. The MEG plant is a downstream facility, the single-largest of its kind in the US costing US$1.1bil.

Maybank IB Research said the new facility came at a time when US’ ethane cracker margins are under pressure due to the ongoing trade war between the country and China.

The bulk of the petrochemical new builds was meant for exports particularly to China but due to the additional barriers imposed, these have been diverted to non-traditional regions such as Africa, South Asia and SouthEast Asia, causing a big decline in product margin.

The research house believed the US investment would help to diversify and reduce Lotte Chemical’s systemic risk, including in foreign exchange.

It said the lower risk profile could potentially increase investor appeal to Lotte Chemical and warranted a re-rating.

Source: The Star

Posted on : 04 April 2019

Lotte Chemical earnings set to rise on US plants


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ALHAJ Automotive, the official distributor for Proton vehicles in Pakistan, will make an initial investment of US$30 million to build the first completely knocked down (CKD) plant for Proton vehicles in that country.

To be set up on a greenfield site in Karachi, the plant is expected to start operations by the end of next year and create 2,000 direct employment opportunities in its first three years of operations, Proton said in a statement today.

“It is estimated that a further 20,000 indirect jobs will also be created as a result of the new plant being commissioned,” the national carmaker said.

ALHAJ Automotive chairman Al-Haj Shah Jee Gul Afridi said the company would initially source completely built-up units from Malaysia before switching to CKD products once the new assembly plant begins operations.

“We will leverage on our current dealerships located nationwide to start selling Proton vehicles as soon as possible while developing standalone 3S/4S outlets at the same time,” he said.

In Islamabad today, Prime Minister Tun Dr Mahathir Mohamad and his Pakistani counterpart Imran Khan officiated the symbolic groundbreaking ceremony for the plant.

Before they witnessed the ceremony at a hotel there, the two Prime Ministers attended a round table meeting with captains of industry from their countries at the same hotel.

In his speech during the round table meeting, Dr Mahathir said he wanted to promote Proton, so he would give a Proton car to Imran.

“It’s not that I want to bribe Pakistan’s Prime Minister but I want to promote one of Malaysia’s products. I want to give him a Proton car,” he said.

He then presented Imran a replica of the Proton X70 car key.

Proton had in 2017 unveiled the seven stars strategy, a roadmap to achieve their long-term goals including targeting to sell 400,000 units by 2027. A major future growth area for the company is export sales, and the establishment of CKD assembly plants in overseas markets is one of the steps taken to grow those numbers.

To establish Proton in Pakistan, an agreement with ALHAJ Automotive was inked on Aug 29, 2018, with the group being appointed as the sole distributor for Proton vehicles in the country

Source: Bernama

Posted on : 25 March 2019

ALHAJ Automotive to build Proton assembly plant in Pakistan


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MyEG Services Bhd is investing RM6.1mil in Chinabased artificial intelligence (AI) company Jingle Magic (Beijing) Technology Co Ltd.

In a statement, MyEG said its investment arm, MyEG Capital Sdn Bhd, had signed an agreement with Jingle Magic for an investment in a Chinese virtual reality (VR), augmented reality (AR) and AI-based education company.

Jingle Magic, formed in 2016, is known as one of the major VR, AR, AI and 3D Internet education platform providers in China.

“Other investors in this latest funding round are Zhejiang Zhongdi Investment Management Co Ltd, an education sector-focused investment fund that is affiliated with Tsinghua Holdings Group’s Muhua Education Fund; and Beijing Dianjing Zhiyuan Investment Centre, a venture capital firm backed by several leading public-listed Chinese technology names such as Cheetah Mobile, Kingsoft and Xiaomi.

“Among the investors in the previous round of funding in 2016 were Anhui Kexun Venture Capital LLP, a venture capital firm under iFlytek Co Ltd, China’s largest public-listed AI company along with Nantong Muhua Equity Investment Center which is part of Muhua Education, and Beijing Yifan Taihe Venture Capital Centre,” MyEG added.

This investment in Jingle Magic by MyEG marks its second investment in a China-based company following last year’s investment of a 3.125% interest in Guangzhoubased Ximmerse.

MyEG noted that these investments were part of an overall strategy to tap into disruptive technologies with commercial value to the group.

MyEG managing director T. S. Wong believed that schools in the future would use AR systems to enhance the learning experience.

“In this regard, we are excited to work with the leading AR education systems provider, leaders in the AI sector like iFlytek and leaders in the education sector like Tsinghua Group to shape the classrooms of tomorrow,” he said.

MyEG’s portfolio of investments also include a variety of technology businesses, including FashionValet, Agmo Studio and Stampede Solution.

Source: The Star

Posted on : 05 April 2019

MyEG to invest in China-based AI company Jingle Magic


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