Tuesday, June 11th, 2019

 

Uber hurt by political ‘market swirl’ after IPO, says CEO

WASHINGTON, June 11 — Uber chief executive Dara Khosrowshahi said today the company’s slump following its share offering last month was due to a “market swirl” over tariffs that won’t affect its long-term performance. Speaking at a…


US says it will help boost world minerals output to reduce reliance on China

WASHINGTON, June 11 — The United States plans to help countries around the world develop their reserves of minerals like lithium, copper and cobalt, the State Department said today, part of a multi-pronged strategy to reduce US reliance on China…


EU says Switzerland must endorse treaty before June 18

BRUSSELS, June 11 — The European Union’s chief executive warned Switzerland today that it needs to sign a new partnership treaty before June 18 that is central to maintaining Swiss stock exchange access to the bloc’s financial markets. In a…


Thomas Cook shares take off on Fosun bid approach

LONDON, June 11 — Embattled travel company Thomas Cook yesterday said it had received a takeover approach from Chinese tourism group Fosun for the British group’s tour operator business, sending its shares surging. “Thomas Cook confirms that…


Exxon to proceed with oil development in Argentina

IRVING (Texas), June 11 — Exxon Mobil Corp said today it was going ahead with an oil development project in Argentina that could produce up to 55,000 barrels of oil-equivalent per day (boepd) within five years. The project will include 90 wells, a…


BoE policymakers bang drum for higher rates despite Brexit clouds

LONDON, June 11 — Bank of England Deputy Governor Ben Broadbent added his voice to reminders from the central bank that it still wants to raise interest rates, but one of his colleagues, Gertjan Vlieghe, struck a different note by highlighting…


Wall St opens higher on China stimulus, Mexico tariff relief

NEW YORK, June 11 — US stocks opened higher today, edging back toward record territory, as signs of more fiscal stimulus from China and some easing of last week’s tensions around Mexico buoyed investors’ appetite for risk. The Dow Jones…


Seacera posts quarterly net loss of RM102m

PETALING JAYA: Seacera Group Bhd reported a net loss of RM102.15 million for three months ended March 31, 2019.

The net loss was due to impairment of plant, machinery and equipment due to permanent shutdown of the tiles factory of RM23 million; impairment of amount due from associate company ,namely SPAZ Sdn Bhd of RM43 million; and recognition of liability on corporate guarantee in favour of SPAZ Sdn Bhd of RM31 million as demanded by SME Bank.

Revenue for the quarter under review came in at RM783,000.

Seacera’s financial year end has been changed from Dec 31, 2018 to June 30, 2019.

For the 15-month period, its net loss stood at RM151.95 million on the back of RM24.09 million in revenue.

The group also anticipates a challenging year ahead with its Practice Note 17 (PN17) status and insufficient cash flow to support the operations and repayment of its banking facilities.

“In addition, there are uncertainties of local and global economies particularly slowdown in property development and construction industries, lower consumer demand and US-China trade war,” it said.

Nevertheless, Seacera said it will continue to formulate and develop strategies to propose a regularisation plan that will uplift the PN17 status within the 12 months period stipulated under the listing requirement.

In a separate filing with Bursa Malaysia, Seacera said there will be no suspension in trading of its shares following the submission of its unaudited quarterly report.


3 out of 8 allegations on Xin Hwa have basis

PETALING JAYA: The independent review on Xin Hwa Holdings Bhd has found that out of the eight allegations pertaining to irregularities on some transactions and payments with several companies, three allegations had some basis or substantiated.

The first allegation is the dividend payment of a subsidiary of Xin Hwa to a third party instead of the registered shareholder, but the arrangement was meant to settle a personal debt and with instruction from the registered shareholder.

The second allegation is the subsidiary’s company funds had been used to pay personal expenses of the executive directors. These payments were partially made out of directors’ fees and the remaining payments were recognised as debts owed by the directors to the company which have since been repaid.

The third allegation is payments made on behalf of a substantial shareholder. However, the amount paid had since been fully repaid by the substantial shareholder.

KPMG Management & Risk Consulting Sdn Bhd, which conducted the review, also noted that there were provisions of financial assistance by a subsidiary of Xin Hwa to several companies in the form of interest-free advances and payments mainly relate to those companies’ operating expenses. Some of these advances and payments had since been repaid.

KPMG added that the revision of the executive directors’ remuneration was not tabled to the Remuneration Committee (RC) and the board as required under the company’s directors’ remuneration policy and procedure.


Premiums won’t go up for current ILP policyholders: LIAM

KUALA LUMPUR: Insurance premiums will not be going up for current investment-linked product (ILP) policyholders following the implementation of new guidelines for ILPs by Bank Negara Malaysia (BNM) on July 1, 2019, says Life Insurance Association of Malaysia (LIAM).

CEO Mark O’Dell said the premiums for ILPs bought before the guidelines come into effect should sustain the policy for the full contract term.

“Nothing changes after the guidelines are in effect,” he told Bernama in an interview recently, quashing the misleading information by insurance agents who claimed that the premiums would be going up following the introduction of new guidelines.

BNM issued the Policy Document on Investment-linked Business in January this year, with the primary objective of protecting the interest of consumers.

The document introduced several key initiatives, including the minimum standard of sustainability tests and minimum allocation rate to protect the account values of ILP policy/certificate owners.

The disclosure of the sustainability of coverage aim to improve transparency at the point of sale and ensure that consumers are provided with sufficient and timely information to facilitate active management of their ILP policies.

“Starting from Jan 1, 2020, you will receive an annual statement telling you the length of your coverage based on your current premium. If you find you need a longer coverage, you can voluntarily increase your premium payment,“ said O’Dell.

He noted that it was important to differentiate between policies bought before July 1 and new policies purchased after the date, as insurance companies would quote premiums for the entire contract term as required by the central bank.