Monday, March 11th, 2019


Alam Maritim bags RM40m Carigali contract

PETALING JAYA: Alam Maritim Resources Bhd has been awarded a contract with an initial value of RM40 million for the provision of underwater inspection services for Carigali Hess Facilities.

In a filing with Bursa Malaysia, the company said its wholly owned subsidiary Alam Maritim (M) Sdn Bhd was awarded the contract by Carigali Hess Operating Company Sdn Bhd.

The four-year contract is effective from Sept 5, 2018 till Sept 4, 2022 with an option to extend up to one year.

The contract requires Alam Maritim to perform a confirmed base scope of work and “call-out” or unscheduled work for the inspection of Carigali Hess jackets, pipelines and FSO (floating storage and offloading).

The total value of the contract base scope of work and the unscheduled work will be contingent upon the unscheduled work performed by the company. The initial total value of the contract is expected to be about RM40 million.

The contract is expected to contribute positively to Alam Maritim’s earnings and net tangible assets for the financial year ending Dec 31, 2019 till 2022.

Zelan claims RM300m from NRY Architects

PETALING JAYA: Zelan Bhd’s wholly owned subsidiary Zelan Construction Sdn Bhd has initiated arbitration proceedings against NRY Architects Sdn Bhd, with claims amounting to some RM300 million.

In a filing with Bursa Malaysia, Zelan said the arbitration is in respect of the disputes and differences arising between the two parties in relation to the proposed development of academic buildings and college accommodation.

The academic buildings and college accommodation is part of the Centre of Foundation Studies of the International Islamic University of Malaysia (IIUM) in Kuantan, Pahang.

Zelan Construction’s claims against NRY Architects is premised on breach of contract by NRY Architects under the Consultancy Services Agreement dated May 9, 2013 entered into between the two parties.

Zelan Construction is seeking a declaration that NRY Architects has breached the contract by failing to carry out its obligation under the contract and payment for the refund on value of cost savings for deviation items amounting to RM5.97 million resulting from the breaches committed by NRY Architects.

It is also seeking payment for IIUM claims for rental of temporary facilities, utilities bills and other costs from January 2016 until June 30, 2018 amounting to RM38.31 million as well as loss of income for Zelan Construction amounting to RM261.12 million.

MAHB passenger movement up 5.1pc in February

KUALA LUMPUR, March 11 — Malaysia Airports Holdings Bhd’s (MAHB) network of airports, including Turkey’s Istanbul Sabiha Gökçen international Airport (SGIA), reported a 5.1 per cent growth in traffic to 10.6 million passenger movements in…

Pound in doldrums at start of hectic Brexit week

LONDON, March 11 — The British pound sank today to a near three-week low under US$1.30 (RM5.31), as traders fretted over Brexit on the eve of another critical parliamentary vote for Prime Minister Theresa May. In overnight Asian trade, sterling…

KIP to open three more malls in next three years

PETALING JAYA: KIP Group of Companies is planning to open three new shopping malls over the next three years involving RM150 million in gross development cost to cater to the demand of the middle mass market, says group CEO Valerie Ong.

She said the three new malls will be located in Raub, Kuantan and Sungai Petani.

“This means we will have a total of 12 shopping malls in our portfolio, including the six properties that had been injected to our listed entity, KIP REIT,” she told reporters at the launch of its ninth shopping mall — KIP Mall Desa Coalfield, at Desa Coalfield Sungai Buloh.

KIP Reit’s portfolio now comprises one KIP shopping mall in Bangi and five KIP Marts in Tampoi, Kota Tinggi, Masai, Senawang and Malacca.

It had also acquired Aeon Mall Kinta City, Ipoh for RM208 million.

Ong said Malaysia’s retail industry is forecast to grow by 4.5% to RM109 billion this year.

She said although consumers now prefer to buy goods online, the company would not be impacted as the malls are all placed in upcoming or growing markets where consumers still prefer physical buying.

Ong said KIP Mall Desa Coalfield, which will open in the fourth quarter of this year, has already secured an 80% occupancy rate with tenants that include Econsave, Mr DIY, Watson, Metro Optical and KFC.

Founded in 1993, KIP Group of Companies is a developer of value-added products in both property development and retail management.

Foreign selling on Bursa picks up steam

PETALING JAYA: Foreign funds pulled out RM903.2 million net of local equities last week, the largest in 21 weeks.

MIDF Research said offshore investors marked their fourth straight week of exiting Malaysia, at a relatively stronger pace.

“Foreign net selling occurred on every single day of the week, stretching the daily selling streak to 12 days, matching the period between July 2 to 17, 2018,“ the research house said in its fund flow report today.

Foreign net outflow reached RM198.6 million on Monday before swelling further to RM263.3 million on Tuesday, the largest in a day so far this year.

“Nonetheless, we observed that the massive sell down was in sync with other Asian peers namely South Korea, Indonesia and Taiwan after an overnight sell-off on Wall Street amidst an unexpected 0.6% fall in US construction spending for December 2018,“ said MIDF.

The level of foreign net selling gradually tapered on the next two days to reach RM105.2 million on Thursday. The shrinkage of foreign selling mainly came from the news of the Chinese government pledging to enact stimulus measures to boost the economy. The local bourse followed suit to marginally gain on those two days.

However, a heavy sell-off occurred again on Friday at a tune of RM193.3 million net. Losses across Asian markets including Malaysia accelerated following the 20.7% year-on-year slump on China’s exports last month.

For the first six trading days of March 2019, international investors have sold RM1.06 billion net. As such, foreign funds have so far disposed RM849.9 million net on a year-to-date basis.

On the regional front, MIDF said Malaysia is now the nation with the highest foreign net outflow amongst the four Asean markets it monitor while Indonesia continues to lead with a year-to-date foreign net inflow of US$817.9 million (RM3.34 billion) or above RM3 billlion amidst the pre-election hype taking place in the nation.

“We note that participation amongst the three investor groups remained healthy. However, only foreign investors saw an 18.4% decrease in terms of average daily traded value last week while local institutions and retail investors experienced an increase.”

Four APFT shareholders want three directors out, new exec director in

PETALING JAYA: Practice Note 17 (PN17) company APFT Bhd shareholders are seeking to remove three directors and appoint its finance and administration head as an executive director.

In a filing with Bursa Malaysia, APFT said it has received a written requisition from four of its shareholders to convene an EGM for the removal and appointment of directors.

The four shareholders, holding 11.26% stake in the company, are seeking to remove Laxmi Devi Murugan, Logonathan Vadivelu and Datuk Mohd Ismail Hamdan as directors and to appoint Siva Kumar Kalugasalam as an executive director with immediate effect.

The company said it is seeking legal advice on the matter.

In August last year, the aviation training provider went through a boardroom tussle when 14 shareholders with a combined 12.4% stake sought to remove and appoint certain directors.

Subsequently in October, the company appointed Datuk Tan Choon Hwa and Tan Sri Zaini Omar as new non-executive directors.

However, a fresh requisition was received last January for the removal of Tan and Zaini as well as the other three, namely Tengku Shamsulbhari Tengku Azman Shah, Edwin Silvester Das and Saiful Azhar Mohd Yusoff.

APFT was admitted into the PN17 category in January last year when its shareholders’ equity fell below the 50% threshold, more than a year after auditors flagged going concern issues in its audited financial statement for the financial year ended July 31, 2016.

It has until July 18, 2019 to submit its regularisation plan to the authorities for approval.

February palm oil stocks rise to 3.05m tonnes

KUALA LUMPUR: Malaysia’s total palm oil stocks in February increased 1.34% to 3.05 million tonnes from 3.01 million tonnes in January.

Crude palm oil (CPO) stocks rose 2.29% to 1.92 million tonnes during the month under review from 1.87 million tonnes in the preceding month.

Stocks of processed palm oil, however, went down 0.24% to 1.129 million tonnes from 1.131 million tonnes previously, said the Malaysian Palm Oil Board (MPOB) in its “Performance of the Malaysian Palm Oil Industry for the Month of February 2019 ” released today.

It said CPO production fell 11.1% to 1.54 million tonnes in February from 1.74 million tonnes in the previous month.

Palm kernel output was also 11.16% lower at 395,697 tonnes in February versus January’s production of 445,427 tonnes.

The MPOB said palm oil exports slipped 21.38% to 1.32 million tonnes in February from 1.68 million tonnes in January, while exports of oleochemical went up 15.8% to 273,964 tonnes from 236,589 tonnes.

Biodiesel exports in February declined 16.49% to 36,986 tonnes against January’s 44, 287 tonnes, while exports of palm kernel cake shed 15.62% to 190,727 tonnes from 226,022 tonnes.

In February, palm kernel oil exports, expanded by 15.96% to 91, 234 tonnes from 78,674 tonnes in the preceding month.

S&P, Nasdaq futures edge higher following lackluster week; Boeing pressures Dow

NEW YORK, March 11 — The S&P 500 and Nasdaq futures eked out gains today as investors took a cautious stance after a weak US jobs report raised questions of slowing global growth, while a slide in planemaker Boeing's shares pressured Dow…

Saudi Arabia to cut oil exports in April, says Saudi official

DUBAI, March 11 — Saudi Arabia plans to cut its crude oil exports in April to below 7 million barrels per day (bpd), while keeping its output well below 10 million bpd, a Saudi official said today, as the kingdom seeks to drain a supply glut and…