Tuesday, November 13th, 2018

 

Wall Street attempts comeback after yesterday’s sell-off

WASHINGTON, Nov 13 — Wall Street was split in early trading today, as markets attempted a recovery from a broad-based rout in the prior session. Tech giant Apple — which sparked yesterday’s sell-off amid fears of weakening demand for its…


House prices rise in Malaysia in third quarter, says study

KUALA LUMPUR, Nov 13 — The increase of house prices in Malaysia in the third quarter this year was among the highest in the world, a Knight Frank study has revealed. It had risen to the 29th spot by 0.7 per cent from -0.2 per cent last year, when…


Global stocks rebound from big selloff as oil slumps

LONDON, Nov 13 — Global stock markets rebounded today from the previous day’s selloff, with Wall Street boosted by earnings optimism and Europe holding up despite headwinds from Brexit talks and Italy’s budget. London, however, underperformed…


Securemetric second best-performing new listing year to date

PETALING JAYA: Securemetric Bhd emerged as the second best-performing listing so far this year with a 114% premium in its debut on the ACE Market of Bursa Malaysia today.

Retail technology solutions company Radiant Globaltech Bhd, which was listed in July, was the best performer with a 130.43% gain. The stock is currently trading at a 30% premium to its issue price of 23 sen.

Securemetric shares surged as much as 31 sen or 124% to 56 sen before closing the day 28.5 sen or 114% higher at 53.5 sen on 151.45 million shares traded, giving it a market capitalisation of RM130.33 million.

The company's initial public offering (IPO), which raised RM17 million, was oversubscribed by 20.26 times. Its offer price was set at 25 sen per share.

Of the total proceeds, RM5.70 million will be used for development of new digital security solutions, RM5.16 million for working capital purposes and RM1.70 million for business expansion. The remaining RM4.44 million will be used for repayment of borrowings and defrayment of IPO expenses.

Securemetric offers digital security products and solutions mainly across Southeast Asia countries, with local presence in Malaysia, Vietnam, the Philippines, Indonesia and Singapore.

For financial year ended Dec 31, 2017, more than 85% of its revenue was derived from the overseas market.


Khazanah research arm urges govt to reconsider property crowdfunding scheme

PETALING JAYA: Khazanah Research Institute (KRI) director of research Dr Suraya Ismail (pix) has urged the government to reconsider the property crowdfunding scheme under the peer-to-peer financing framework.

“It's an investment scheme. There's nothing to suggest that it's a home ownership scheme because you don't get the sale and purchase agreement,” she told reporters at Rehda's Budget Commentary 2019 today.

“Some people say it is a rent-to-own (RTO) scheme. But even if it';s RTO, first you co-own with local council. It makes so much sense for them to ensure that you won't be disadvantaged because the lost opportunity cost is that you are homeless and therefore local council still have to take care of you. You co-own or have mortgage with bank, that's the normal way we do it,” she said.

However, under the peer to peer framework, the buyer would have to co-own with a number of investors who are seeking capital appreciation.

“It's not something that will increase home ownership. It will only increase house prices because what they want is for it to appreciate,” she added.

Suraya said rapid house price escalation is a strong possibility if the scheme is implemented.

Meanwhile, Rehda Institute chairman Datuk Jeffrey Ng said buyers under the scheme will face problems in coming up with the 20% downpayment required.

“As it is today, a 10% downpayment is already a huge hindrance to home purchase for most first time buyers and as such, will the target group be able to meaningfully participate in the scheme?” he questioned.

He added that the scheme requires a more balanced risk versus benefit treatment between house buyers and investors.

“At the end of five years, the participant will have to either sell, top up the 20% value according to a market value or refinance the house to fund the other 80%.

“Home owners may lose their down payment in the event of a market downturn but will not gain if capital appreciation is not more than 20% over the next five years,” he said.

However, investors will get 100% of the first 20% gain upside and will not lose in the event of 20% depreciation in value.


Securemetric

PETALING JAYA: Securemetric Bhd emerged as the second best-performing listing so far this year with a 114% premium in its debut on the ACE Market of Bursa Malaysia today.

Retail technology solutions company Radiant Globaltech Bhd, which was listed in July, was the best performer with a 130.43% gain. The stock is currently trading at a 30% premium to its issue price of 23 sen.

Securemetric shares surged as much as 31 sen or 124% to 56 sen before closing the day 28.5 sen or 114% higher at 53.5 sen on 151.45 million shares traded, giving it a market capitalisation of RM130.33 million.

The company's initial public offering (IPO), which raised RM17 million, was oversubscribed by 20.26 times. Its offer price was set at 25 sen per share.

Of the total proceeds, RM5.70 million will be used for development of new digital security solutions, RM5.16 million for working capital purposes and RM1.70 million for business expansion. The remaining RM4.44 million will be used for repayment of borrowings and defrayment of IPO expenses.

Securemetric offers digital security products and solutions mainly across Southeast Asia countries, with local presence in Malaysia, Vietnam, the Philippines, Indonesia and Singapore.

For financial year ended Dec 31, 2017, more than 85% of its revenue was derived from the overseas market.


Techbond to raise RM39m via IPO

PETALING JAYA: Industrial adhesives and sealants maker Techbond Group Bhd, en route for a listing on the Main Market of Bursa Malaysia, expects to raise RM39.67 million from its initial public offering (IPO) exercise.

Its managing director Lee Seng Thye said in a statement today that the listing exercise would further strengthen the company’s corporate profile to enhance market awareness of its business as well as provide a platform for its growth regionally.

He said the company would continue to capitalise on its strengths to generate sustainable revenue from its existing businesses.

“We believe our strong fundamentals will put us in good stead, and we are confident that we can deliver commendable performance in the coming years,” he added.

The IPO entails a public issue of approximately 60.11 million new ordinary shares at an issue price of 66 sen per share.

The public share comprises 11.5 million shares that will be made available for application by the Malaysian public, 6 million shares will be available for application by the eligible directors, employees and other persons who have contributed to the company’s success.

Meanwhile, the remaining 23 million shares will be made available for application by way of private placement to bumiputra investors approved by the Ministry of International Trade and Industry and 19.61 million shares to selected investors.

Application for the public issue will close on Nov 23. The company is slated to be listed on Dec 5.

Based on the issue price, the company will have a market capitalisation of RM151.8 million.


SunCon bags RM352m Sunway Velocity 2 works deal

PETALING JAYA: Sunway Construction Group Bhd’s (SunCon) wholly owned subsidiary Sunway Construction Sdn Bhd (SCSB) was awarded a RM352.06 million project for the main building and associated external works for the proposed commercial development of Sunway Velocity Two – Plot A Project.

The letter of award was issued to SunCon by Akitek Akiprima Sdn Bhd on behalf of Sunway Velocity Two Sdn Bhd (SVTSB).

The projects includes Phase 1A – serviced apartment of 53 storeys (Block B1) and Podium Carpark; Phase 1B – serviced apartment of 53 storeys (Block B2); and Phase 1C – office block of 28 storeys (Block A1).

SVTSB is an indirect subsidiary of Sunway Bhd, which in turn is a major shareholder of SunCon.

The project is for a period of 37 months, and is expected to be completed by Dec 14, 2021. The project is expected to contribute positively to the earnings of SunCon from the financial year ending Dec 31, 2019 onwards.

“Upon securing the project, SunCon’s new order book secured to-date amounts to RM1.35 billion,” SunCon said in a stock exchange filing.

The project is a related party transaction by virtue of Evan Cheah Yean Shin being a director and major shareholder of SunCon as well as director of several subsidiaries and major shareholder of Sunway. Tan Sri Dr Jeffrey Cheah Fook Ling, Puan Sri Datin Seri (Dr) Susan Cheah Seok Cheng, Sarena Cheah Yean Tih, Adrian Cheah Yean Sun, Sungei Way Corp Sdn Bhd and Active Equity Sdn Bhd are major shareholders of both SunCon and Sunway as well as person connected to Evan. Datuk Chew Chee Kin is a director of both SunCon and Sunway.

SunCon has obtained its shareholders’ mandate for such recurrent related party transactions entered into or to be entered into by SunCon and its subsidiaries with Sunway and its group of companies at its last AGM held on June 20.


Govt mulls fine-tuning RPGT

PETALING JAYA: The government is considering a review of the Real Property Gains Tax (RPGT), which under Budget 2019 will be increased from 0% to 5% for sales after the fifth year for Malaysian individuals and from 5% to 10% for corporates and foreigners.

Political secretary to the Finance Minister and MP for Damansara Tony Pua said there is room for fine-tuning.

“The minister has heard a lot of feedback on RPGT and we are in the midst of looking at how it can be fine-tuned further, whether it is a time restriction or also to take into consideration enhancements that individuals have made to the property as a cost invested into the property as a deductible expense,” he said during a panel session at the Budget Commentary 2019.

He said the RPGT was one of the areas identified as somewhere the government can transact without distorting the market too much.

On the auction of land, Pua said the purpose of the land will be predetermined before the bidding process starts, thus the government will be able to get the best value of the land.

He said the purpose of the land, for example public housing or free trade zone, will be determined and land conversion will be done before parties are invited to bid.

Meanwhile, Rehda Institute has proposed to establish a Residential Real Estate Investment Trust (REIT) to provide rental public housing for the B40 group.

Its chairman Datuk Jeffrey Ng said it is conducting studies on the REIT after which it will submit the proposal to the Housing and Local Government Ministry and Finance Ministry.

“We are working with investment banks and accountants. Once we have formalised the proposal, we will submit to both ministries. Then the next stage is to submit to the Securities Commission,” he told reporters at Rehda’s Budget Commentary 2019 today.

He said the proposal was made by Rehda Institute through its Affordable Housing Report and it will continue to pursue this financial framework to help the government build more rental public housing.

“The proposed Residential REIT is aimed at assisting the government in building up the supply of public social rental housing for the lower income group who cannot afford to buy. The institute will be formally submitting our proposal and will be engaging the Finance Ministry on this new transformational financial vehicle for the rental housing sector,” he added.

Ng said affordability is still an issue thus providing more homes via public social renting could improve the B40 group’s livelihood instead of encouraging them to buy houses.

The institute is also working with the Malaysian REIT Managers Association to establish the proposed REIT.


‘Focus on talent in adoption of Industry 4.0’

PETALING JAYA: Malaysia should focus on talent and manpower training in the adoption of Industry 4.0 to tackle the shortage of skilled manpower, said Taipei Economic & Cultural Office in Malaysia director of economic division David Hsu.

He said Malaysia’s Industry 4.0 is similar to Taiwan’s Productivity 4.0, which encompasses Manufacturing 4.0, Agricultural 4.0 and Business 4.0.

“Basically, they’re similar to each other because the final goal is to upgrade our economy’s overall capacity and capability so that our technologies and products can compete in the global market,” Hsu told reporters at the Pikom Leadership Summit 2018 today after speaking at a panel session on Industry 4.0 – What Businesses Need to Know the Taiwan Experience.

He said Malaysia and Taiwan can cooperate in the promotion of Industry 4.0 policies. Taiwan can provide assistance such as integrated supply chain, on how to optimise production process and the two countries can work together to develop the international market.

He pointed out that Malaysia should also amend its laws and regulations to create a friendly environment for Industry 4.0.

“In Taiwan, Germany, Japan, US and Korea, we don’t have so many foreign workers to fulfill this obligation. We have to rely on our own people. This is why we have to try our best to cultivate talent for different sectors.”

Hsu said Taiwan is now more focused on technical and vocational set-up and has allocated more resources to universities to provide technical courses, as well as having post-studies for vocational training. Taiwan is encouraging its SMEs to have on-job training and SMEs who undergo training courses will be able to obtain financial assistance from the government.

“We’re forcing our private enterprises, directly or indirectly, to go for talent training because this is core of Taiwan’s economic development.”

He said sectors that are seeing strategic promotion by the Taiwan government are agriculture, food manufacturing, information technology, logistics, machinery & equipment, retailing, textile and transportation.

“We hope Taiwan can be the main suppliers for turnkey solutions, not just cutting edge hardware but also innovative and efficient software and services and we hope we can create smart manufacturing ecosystems. We think Productivity 4.0 is a correct and necessary policy direction for Taiwan government to adopt and we persuade our enterprises to follow this policy.”

As an example, he said Taiwan’s bicycle industry has successfully incorporated high technology knowledge and has evolved into a competitive bicycle industry in the world, which is a successful model for Taiwanese SMEs to follow suit.

Taiwan Excellence, which represents the best of Taiwan’s products and services, is a partner for the summit this year, bringing with it three Taiwanese brands – ICP Das, Hiwin and Advantech to share how Taiwanese enterprises can be Malaysia’s best partner towards Industry 4.0.

Taiwan is one of the first in Asia to invest in the development of Industry 4.0 by focusing on its advantages in research and development (R&D).

Taiwan Excellence is an annual initiative sponsored by the Taiwanese government with the aim of selecting the best product each year based on excellence in design, quality, marketing, Taiwanese R&D and manufacturing. With many of the recent winners being smart products, Taiwan Excellence is a good indicator of Taiwan’s progress in Industry 4.0.