Tuesday, October 2nd, 2018

 

GDEX acquires 44.5% stake in Indonesian courier

KUALA LUMPUR: Despite the abolishment of the goods and services tax (GST), there are other costs components contributing to high house prices, according to UEM Sunrise Bhd managing director Anwar Syahrin Abdul Ajib.

He said these include development cost, premiums and land prices which has to be taken into account.

Some cost components have seen a hike hence increasing the price of the development.

“We would like to reduce the prices of houses so that it becomes more affordable for more people but from a cost perspective there are various different cost components in development,” he told reporters at the strategic partnership inking ceremony between UEM Sunrise and GrabPay.

If there are savings, we can pass it to our customers but like I said there are other costs that has come into force – for example, development charges, premiums, so those things have come in and that affects the prices. Our land price is very high and when development charges come in, it can be up to 25%… that adds up to all the cost,” he said.

On the implementation of the sales and services tax, Anwar said he has to research before commenting on it.

The property developer will scrutinise its cost in accordance to the announcement of Finance Minister Lim Guan Eng, who urged developers to reduce the prices of houses.

He was recently quoted as saying that he hoped to receive positive response from the housing industry by month-end to reduce property prices.

On a separate note, Anwar said that UEM is looking to launch projects for the remaining of the year with a gross development value of between RM350 million and RM500 million.

UEM Sunrise today inked a strategic partnership with Grab Malaysia to enable in-store cashless payment via the e-hailing service provider’s, GrabPay platform.

This will be made available for retailers and merchants at Publika and malls in Iskandar Puteri.

As part of the partnership, UEM Sunrise will assist Grab to ensure that a significant number of their tenants at the two locations adopt GrabPay as their preferred cashless payment method.

For starters, GrabPay is looking to enable at least 60% of the 284 merchants in Publika to utilise its platform.

GrabPay which was rolled out three months ago with 100 merchants on board has seen the numbers increase by four folds ever since. This is expected to double by the year-end.


House prices depend on many cost components: UEM Sunrise

PETALING JAYA: Nearly five months after the Pakatan Harapan government came into power, an investors’ conference, akin to the annual capital market event “Invest Malaysia”, is set to take place next Tuesday at a time when the country is grappling with domestic and external uncertainties.

The local stock market has seen a massive outflow of foreign funds since the government change, pending clarity on government policy, exaggerated by heightened US-China trade tensions and emerging market currencies crisis.

The year-to-date outflow from Bursa Malaysia as of last Friday stood at RM8.5 billion.

The ringgit is not spared from the sell-off, having fallen 2.3% year-to-date.

According to Finance Minister Lim Guan Eng, the conference, themed “Malaysia: A New Dawn”, aims to bring together over 2,000 fund managers, investors, bankers and corporate leaders from Malaysia as well as throughout the region at Shangri-la Hotel, Kuala Lumpur. It also serves as a precursor to the tabling of the Budget 2019 scheduled for Nov 2.

He said in a statement today that the main objective of the conference is to convey the government’s medium- to long-term aspirations and to reinforce confidence in the new administration among industry stakeholders and foreign investors.

“The new administration hopes to inform the local and international investors of our findings, our goals and our approach to resolve and overcome the many challenges especially on fiscal issues that we have identified.”

Lim noted that the new government has managed to instill public confidence in the management of the economy, the monetary sector and capital markets despite facing the severe fiscal issues brought about by the RM1 trillion federal government debt.

“The challenge begs the issue of how should the government balance the needs of containing the fiscal deficit and generating sustainable economic growth, growth that is necessary to bring about higher wage growth, reduce income inequality, and improve the economic well-being of the rakyat.”

The conference will see participation from key representatives from the government, industry stakeholders (both local and foreign), to discuss the New Malaysia’s economic, social and political conditions. Other aspects of discussion include sustainable infrastructure, affordable housing, agri-commodities and Malaysians’ socio-economic well-being.

Prime Minister Tun Dr Mahathir Mohamad will deliver the keynote address, while Datuk Seri Anwar Ibrahim will deliver the closing speech at the conference.

Other speakers include Lim, Bank Negara Malaysia governor Datuk Nor Shamsiah Mohd Yunus, Communications and Multimedia minister Gobind Singh Deo, International Trade and Industry minister Ignatius Darell Leiking, Energy, Technology and Science minister Yeo Bee Yin and Khazanah Nasional Bhd managing director Datuk Shahril Ridza Ridzuan.

The programme includes plenary sessions with ministers, members of Parliament, heads of government-linked companies and leading industry experts.

The conference is jointly organised by Malayan Banking Bhd, CIMB Group Holdings Bhd and RHB Banking Group.


No need for consolidation of Islamic banks for now, Bank Muamalat CEO says

KUALA LUMPUR, Oct 2 ― There is no need for consolidation in the Islamic banking industry for the time being, said an industry player.    Bank Muamalat Malaysia Bhd Chief Executive Officer Datuk Mohd Redza Shah Abdul Wahid said…


Amazon to raise minimum wage to US$15 for US employees

NEW YORK, Oct 2 ― Amazon.com Inc said today it is raising its minimum wage to US$15 (RM62) per hour for all US employees including full-time, part-time, temporary and seasonal employees, starting Nov. 1. The increased raise comes at a time when…


ECB urges stronger EU powers on money laundering, governments cautious

LUXEMBOURG, Oct 2 ― The European Union needs clearer rules against money laundering that would apply equally to all EU countries, European Central Bank Vice President Luis de Guindos said today, but several governments, including Germany, urged…


Berjaya Sompo aims to be top 5 general insurer

KUALA LUMPUR: Berjaya Sompo Insurance Bhd aims to become one of the top five general insurance providers in Malaysia by 2023.

Berjaya Sompo CEO Tan Sek Kee said in the first six months of this year, it ranked eighth in terms of gross written premiums.

With a growing network of 20 offices and 2,800 agents nationwide, Berjaya Sompo is committed to being the leading insurer of choice by providing quality solutions and services in the best interest of its customers.

Berjaya Sompo's digitalisation initiatives include online product innovation, increasing digital distribution channels, introducing new B2C channels as well as strengthening its digital infrastructure.


Petronas and JV partners finalise investment in LNG Canada project

PETALING JAYA: Petroliam Nasional Bhd, together with its joint venture participants, it has taken a final investment decision (FID) on LNG Canada, a major liquefied natural gas (LNG) project in Kitimat, British Columbia, Canada.

Petronas, through North Montney LNG Limited Partnership (NMLLP), holds the second largest participating interest in the project with a 25% stake; Royal Dutch Shell plc, through its affiliate Shell Canada Energy the largest interest with 40%; PetroChina Company Limited, through its subsidiary PetroChina Canada Ltd and Mitsubishi Corporation, through its subsidiary Diamond LNG Canada Ltd 15% each; while Korea Gas Corporation, through its wholly-owned subsidiary Kogas Canada LNG Ltd holds 5%. The project is operated through LNG Canada Development Inc.

The LNG export facility, which will be built in Kitimat, British Columbia, includes the design, construction and operation of a natural gas liquefaction plant and facilities for the storage and export of LNG, including marine facilities. LNG Canada will initially consist of two LNG liquefaction processing units referred to as “trains,” for a total of approximately 14 million tonnes per annum with the potential to expand to four trains in the future.

“The final investment decision with our joint venture participants is a significant milestone for Petronas and for the energy industry in Canada. The decision is a testimony of the strong collaboration among our partners and stakeholders who share the same aspiration of delivering long-term value via LNG, in line with our commitment to sustainable and responsible development of resources,” said President and Group CEO Tan Sri Wan Zulkiflee Wan Ariffin.

“This is the first LNG project in Canada and the project will pave the way for us to add value to our world-class gas resources in the North Montney area and strengthen our supply portfolio for LNG to the Asian markets,” he added.

Petronas and its North Montney joint venture partners, are one of the largest natural gas resource owners in Canada with over 52 Tcf of reserves and contingent resources.


Invest in big data, AI, deputy minister tells companies

KUALA LUMPUR, Oct 2 — Firms must start embracing big data and artificial intelligence (AI) to stay relevant in an increasingly competitive environment, Deputy Communications and Multimedia Minister Eddin Syazlee Shith said today. Eddin Syazlee…


Dutch tax break change cheeses off expats

THE HAGUE, Oct 2 — Plans by the Netherlands to scrap a major tax break for foreigners have left expatriates in a spin at a time when the country is hoping to lure multinationals as part of a Brexit exodus. Thousands of foreign workers face a big…


MDV makes RM200m payment for government guaranteed sukuk programme

PETALING JAYA: Malaysia Debt Venture Bhd (MDV), a wholly owned subsidiary of the Minister of Finance Inc. had on Sept 26, 2018 made payment of RM200 million of its RM1.5 billion government guaranteed sukuk programme.

This represents the company's third schedule payment, with a cumulative payment value of RM900 million.
Full payment is scheduled by 2023.

This is the second fund by MDV, with the first being a RM1.6 billion one from the Japanese Bank for International Cooperation via a G2G programme, that was successfully repaid in 2015.

In August 2017, MDV set-up its third fund of RM1 billion government guaranteed sukuk programme, of which RM230 Million has been issued to date.

The first two funds of RM3.1 billion allowed MDV to disburse more than RM11.5 billion in financing to more than 800 companies.

The third fund is expected to allow MDV to continue financing companies that fall under its technology mandate, particularly newly emerging sectors, and help steer the nation towards a knowledge economy and provide affordable financing to the underserved sectors in Malaysia.

It also serves as a catalyst for MDV to further extend its product offering to Venture Financing and support on-going Fintech initiatives in the market to broaden the financing ecosystem for high-value start-up and early stage companies in the technology sectors.

MDV has thus far serviced all past funding commitments on a timely basis and remains confident of continued timely payment of our funding obligations in accordance with the respective maturity of its Sukuk.