Sunday, July 30th, 2017

 

Fire halts part of Europe’s largest oil refinery

THE HAGUE, July 30 — A fire today in the Dutch port city of Rotterdam forced the closure of Europe’s largest refinery run by Anglo-Dutch company Shell. Firefighters brought the blaze, which sent flames billowing into the sky, under control…


Days of ‘cheap’ foreign labour over for builders

PETALING JAYA: A combination of depreciating local currency, insurance and other incidental costs has made it more expensive for construction companies to hire foreign workers than locals.

“The cost for hiring foreign workers has now surpassed that for local workers due to our devalued currency, insurance and other incidental costs in the recruitment process,” Master Builders Association of Malaysia (MBAM) chairman Foo Chek Lee told SunBiz.

Speaking on the rehiring process of foreign workers, Foo said while the cost for the rehiring process is high, the rules are more stringent compared with the 6P programme which ended in 2014.

“Previously, under 6P, any illegal foreign worker can register. Now there are more restrictions, such as the illegal must come before March 31, 2016. Under 6P, registration can be done with Immigration Malaysia which is free or via agents at RM30.00. Currently with the rehiring process, employers will have to go through appointed vendors and there is a RM1,200.00 processing fee,” he said.

Workers from the construction industry are subject to a levy of RM1,850.The rehiring process which includes vendor charges, immigration charges and insurance could average at about RM3,000. The cost varies according to nationality and industry.

The situation has led to a shortage of workers in this labour-intensive industry, which in turn has resulted in delays and affected the progress of construction work and maintenance work for buildings and facilities.

“The delay will definitely affect the revenue of construction works, which varies from project to project. As it is, the cost of running a construction business has increased, and with the cost of rehiring, the revenue of construction companies will definitely be adversely impacted,” Foo said.

He said the rehiring could draw better responses from illegal workers if the conditions imposed are not so strict and if the fee is “not exorbitant”.

SunBiz’s attempts to get the comments of the Immigration Department were unsuccessful.

The rehiring process was to run from February until June 2016, with three vendors namely MyEG Services Bhd, Bukti Megah Sdn Bhd and International Resources and Net Marketing Sdn Bhd appointed to oversee the process. It has since been extended until December 2017. All three vendors will continue to offer the service until the new year-end deadline.


Sime Darby unveils senior leadership for its three pure plays

PETALING JAYA: Sime Darby Bhd has announced a new chairman and senior leadership for its three pure plays as well as a leaner and more focused direction for Sime Darby itself.

The conglomerate said in a statement last Friday that all three companies will be helmed by individuals who have the skills and experience to manage large, complex organisations and are highly regarded for their integrity and business acumen.

“We are confident that all three pure plays have the right leadership to take the companies forward in these challenging times. Their task is to grow the businesses and their challenge is to achieve this while delivering consistent returns for all their stakeholders,” said Sime Darby chairman Tan Sri Abdul Ghani Othman.

Tan Sri Dr Wan Abdul Aziz Wan Abdullah, who is currently the deputy chairman of Sime Darby, has been named the new chairman of Sime Darby, with Jeffri Salim Davidson as the president and group chief executive. Jeffri is the current deputy group CFO of Sime Darby.

The two will be supported by Datuk Lawrence Lee Cheow Hock as managing director of Sime Darby Motors, Scott William Cameron as managing director of Sime Darby Industrial and Timothy Lee Chi Tim as managing director of Sime Darby Logistics.

The new leadership of Sime Darby will reflect the global nature of its business with 80% of revenues generated from outside of Malaysia. With presence in 16 countries and four territories, and a workforce of 20,000 employees, Sime Darby aims to be a more nimble organisation.

Meanwhile, Abdul Ghani has been named the new chairman of Sime Darby Plantation Bhd while current president and group chief executive of Sime Darby Tan Sri Mohd Bakke Salleh will take on the role of executive deputy chairman and managing director of the plantation unit.

Bakke, 63, has been the president and group chief executive of the conglomerate for the past seven years and oversaw the rationalising of the group’s businesses which included its exit from the oil and gas business.

Datuk Franki Anthony Dass, the current managing director of Sime Darby Plantation, will be redesignated as chief adviser and value officer while Renaka Ramachandran will remain in her current role as CFO for Sime Darby Plantation.

The third pure play, Sime Darby Property Bhd, will be led by Tan Sri Abdul Wahid Omar as chairman, Datuk Seri Amrin Awaluddin as managing director and Datuk Tong Poh Keow as executive director and CFO. Tong, 62, is the current group CFO of Sime Darby.

The new leadership line-up comprises internal candidates, with the exception of Abdul Wahid and Amrin. Sime Darby Plantation and Sime Darby Property are on course for listing at year-end.


Beleaguered Rome faces transport meltdown, puts 5-Star in difficulty

ROME, July 30 — Rome’s transport system is suffocating under debts and should declare bankruptcy, the outgoing head of the public company said at the weekend, piling pressure on the 5-Star Movement which runs city hall. Bruno Rota quit Atac…


[Weekend’s Pick] Transforming the insurance landscape

As the global economy shifts, financial markets across the world are constantly introducing new policies and changes to its systems to ensure that the financial cogwheels continue to turn. The same can be said for Malaysia as the whole financial sector is currently undergoing several changes to its regulations, system and its sub-segments, including its […]


Kronologi Asia’s Q2 earnings double

PETALING JAYA: Kronologi Asia Bhd’s net profit more than doubled to RM4.08 million for the second quarter ended June 30, 2017 against RM1.7 million in the previous corresponding period, underpinned by higher sales from its enterprise data management infrastructure technology segment.

Revenue jumped three fold for the quarter under review from RM14.78 million to RM48.34 million.

For the first half of the year, Kronologi’s net profit also doubled from RM3.07 million to RM6.12 million, with revenue jumping 154% from RM28.92 million to RM73.53 million.

Barring unforeseen circumstances, the group expects its financial year ending Dec 31, 2017 to be better than that of FY16.

Kronologi noted that demand for data backup is being driven by the proliferation of data such as emails, staff and business records, legal documents and more.

“Compliance with tighter regulations and business continuity requirements have led to the need for companies to safeguard their data more than ever before. As recent events have demonstrated, a safeguard against ransomware is also critical for business continuity,” it added.


Fajarbaru awarded RM101m building works contract

PETALING JAYA: Fajarbaru Builder Group Bhd has bagged a RM101.3 million contract for building works of a commercial development in Semenyih, Selangor.

The group told Bursa Malaysia that its wholly owned subsidiary Fajarbaru Builder Sdn Bhd had accepted a letter of acceptance dated July 26 from TYL Land & Development Sdn Bhd in respect of the remaining building works and related external works for the proposed commercial development.

The contract period is 27 months from date of commencement. It is expected to contribute positively to the group’s earnings and net assets for the financial years ending June 30, 2018, 2019 and 2020.

In a separate announcement, Fajarbaru said it also received a job from Malaysia Airports (Sepang) Sdn Bhd with a contract sum of RM705,000.

The contract is for the proposed apron line marking, access road connection and associated works at KLIA Air Cargo Terminal 1 at the Kuala Lumpur International Airport.

Works are scheduled to go on for a period of 120 days beginning Aug 1 until Nov 28.

The group’s shares declined half a sen to close at 95.5 sen on Friday with some 1.05 million shares changing hands.

Fajarbaru is listed on the main market of Bursa Malaysia and is involved primarily in the construction business.


Fajarbaru awarded RM101m works job

PETALING JAYA: Fajarbaru Builder Group Bhd has bagged a RM101.3 million contract for building works of a commercial development in Semenyih, Selangor.

The group told Bursa Malaysia that its wholly owned subsidiary Fajarbaru Builder Sdn Bhd had accepted a letter of acceptance dated July 26 from TYL Land & Development Sdn Bhd in respect of the remaining building works and related external works for the proposed commercial development.

The contract period is 27 months from date of commencement. It is expected to contribute positively to the group’s earnings and net assets for the financial years ending June 30, 2018, 2019 and 2020.

In a separate announcement, Fajarbaru said it also received a job from Malaysia Airports (Sepang) Sdn Bhd with a contract sum of RM705,000.

The contract is for the proposed apron line marking, access road connection and associated works at KLIA Air Cargo Terminal 1 at the Kuala Lumpur International Airport.

Works are scheduled to go on for a period of 120 days beginning Aug 1 until Nov 28.

The group’s shares declined half a sen to close at 95.5 sen on Friday with some 1.05 million shares changing hands.

Fajarbaru is listed on the main market of Bursa Malaysia and is involved primarily in the construction business.


Crude Palm Oil Weekly Report – 29 July 2017

This week, Malaysian palm oil futures surged and hit the strongest gain since April 2017, on expectations of lower than forecast production in July, backed by a strong gain in rival soyoil on the Chicago Board of Trade (CBOT) and steady stockpiles. The benchmark crude palm oil futures (FCPO) contract up 3.15 per cent to […]


BPA Malaysia weekly bond market report 30 July 2017

The ringgit bond market was relatively muted over the week as investors awaited the outcome of the two-day Federal Open Market Committee (FOMC) meeting. The Index shed 0.16 per cent during the week to close at 153.472 points from 153.496 points in the previous week. The MGS yields shifted higher by up to seven bps […]