Monday, October 7th, 2019

 

MAHB unit receives AirAsia, AirAsia X writ of summons

PETALING JAYA: Malaysia Airports Holdings Bhd’s (MAHB) wholly owned subsidiary Malaysia Airports (Sepang) Sdn Bhd (MASSB) has been served with a writ of summons by AirAsia Bhd and AirAsia X Bhd.

The writ was in respect to alleged losses and damages of RM479.78 million.

“On May 14, AirAsia had initially filed a judicial review leave application seeking for, amongst others, an Order of Mandamus to compel the Malaysian Aviation Commission to decide this dispute.

“AirAsia’s judicial review leave application was subsequently dismissed by the Kuala Lumpur High Court on June 25,” MAHB said in a stock exchange filing today.

In a statement to the exchange last week, AirAsia said the claims were made for the loss and damage caused by negligence on the part of MASSB, its servants and/or agents in the management, operation, maintenance and/or provision of airport services and facilities at klia2.


PropertyGuru files for IPO in Australia

SINGAPORE: Southeast Asian online realtor PropertyGuru Ltd filed a prospectus in Australia seeking an initial public offering (IPO) that could raise as much as A$380.2 million (RM1.1 billion).

PropertyGuru, whose backers include buyout firms TPG Capital and KKR, has set an indicative price range of A$3.70 to A$4.50 each, according to its prospectus filed with the Australian Securities and Investment Commission today.

Last month, Reuters had reported the Singapore-based company’s plans to list in Australia.

PropertyGuru operates in Singapore, Vietnam, Thailand, Malaysia, and Indonesia.

“We intend to use part of the proceeds from the offering to pursue our growth strategy,“ PropertyGuru’s CEO Hari Krishnan said in a statement, adding that the company was looking at providing property seekers in the company’s core markets with access to mortgage financing through an online mortgage marketplace.

“PropertyGuru’s proforma revenue has grown at a 26% compound annual growth rate over the last three years. 2018 also marked the first year PropertyGuru became both EBITDA and free cash-flow positive,“ Krishnan said.

PropertyGuru is set to have an indicative market value of up to A$1.36 billion. The retail offer will open on Oct 16 and close on Oct 22 and trading is set to begin on Oct 25.

Credit Suisse, KKR Capital Markets, TPG Capital BD and UBS are the joint lead managers to the IPO. – Reuters


OCK to raise up to RM62.46m from private placement

PETALING JAYA: OCK Group Bhd is expected to raise up to RM62.46 million from a proposed private placement exercise of up to 10% of its total issued share.

The group told the local bourse that the estimated figure is based on an indicative price of 55 sen for the private placement of 113.55 million new shares.

OCK revealed that some RM57.36 million from the proceeds raised will be allocated towards the development and acquisition of green energy assets, while RM5 million will be used towards working capital and the remaining RM100,000 to defray the cost of its private placement exercise.

OCK highlighted that in 2018, the group’s green energy and power solutions business generated a revenue of RM30.28 million, amounting to 6.6% of its total revenue for the year.

Meanwhile, telecommunication network services business accounted for the bulk of the group’s business with a revenue contribution of RM390.25 million or 85.3% of total revenue for 2018.


Experts hope for broader income tax bands, refined SST

PETALING JAYA: In the lead up to Budget 2020, EY tax experts expect to see a number of measures announced, particularly on income tax and the sales and service tax (SST).

In a statement today, EY said from a personal income tax perspective, the government should consider broadening and reducing the number of income tax bands.

“Broader income tax bands would encourage individuals to improve their earning capability through increased productivity and self-development as they would be able to enjoy the fruits of their labour, thereby improving our efforts to become a high-income nation.

“The additional take-home income would also allow for the increase in consumption of goods and services, some of which are subject to SST,” it said.

The statement also said the government should seek to simplify reliefs by reducing the number of reliefs available whilst increasing the amount of relief for self, spouse and children.

“This would reduce the record-keeping burden on taxpayers and the effort required by the authorities to audit such claims which ultimately have a relatively small tax impact,” it added.

On the SST, EY recommended some measures that can be made available to preserve it as a single-tier tax.

These include setting up an advisory panel of industry experts for consultation with Customs on SST matters; a reintroduction of an input tax mechanism or a credit system into the service tax regime to counter the effects of tax-on-tax; and an expanded coverage of the business-to-business (B2B) and intragroup exemptions to include other groupings of taxable services.

Meanwhile, EY said they hoped more attention will be given to measures to support growth of businesses and enhance the current tax administration.

“Key policies should be centred around innovation and research and development, skilled manpower and talent development, embracing digital technologies, automation, adapting new technologies, as well as growth of certain sectors/industries. Attention needs to be given to innovation-related businesses such as cloud computing, mobile wallets, blockchain, robotics and big data,” it said.

On the real estate sector, EY said the government could introduce some measures targeting the M40 group as they would likely be the group of people who could provide further traction to the housing market.

This could include extending the period of stamp duty exemption on the purchase of a residential property under the National Home Ownership Campaign without a cap on property price; reintroducing the personal relief on housing loan interest for a period of three consecutive years; and providing double tax deduction on housing loan interest subsidised by employers.

For the oil & gas sector, EY said that while external factors cannot be controlled, the government could continue to support the industry domestically and consider the gaps in the international supply chain which Malaysia can focus on filling.

“One potential area is oil trading – with the Global Incentives for Trading (GIFT) programme announced in 2011, we took a big step towards providing a platform to attract oil traders. Eight years on, we should refine our focus on and promotion of this incentive to attract the industry’s biggest players,” it said.


Experts hope for broader income tax bands, refined SST

PETALING JAYA: In the lead up to Budget 2020, EY tax experts expect to see a number of measures announced, particularly on income tax and the sales and service tax (SST).

In a statement today, EY said from a personal income tax perspective, the government should consider broadening and reducing the number of income tax bands.

“Broader income tax bands would encourage individuals to improve their earning capability through increased productivity and self-development as they would be able to enjoy the fruits of their labour, thereby improving our efforts to become a high-income nation.

“The additional take-home income would also allow for the increase in consumption of goods and services, some of which are subject to SST,” it said.

The statement also said the government should seek to simplify reliefs by reducing the number of reliefs available whilst increasing the amount of relief for self, spouse and children.

“This would reduce the record-keeping burden on taxpayers and the effort required by the authorities to audit such claims which ultimately have a relatively small tax impact,” it added.

On the SST, EY recommended some measures that can be made available to preserve it as a single-tier tax.

These include setting up an advisory panel of industry experts for consultation with Customs on SST matters; a reintroduction of an input tax mechanism or a credit system into the service tax regime to counter the effects of tax-on-tax; and an expanded coverage of the business-to-business (B2B) and intragroup exemptions to include other groupings of taxable services.

Meanwhile, EY said they hoped more attention will be given to measures to support growth of businesses and enhance the current tax administration.

“Key policies should be centred around innovation and research and development, skilled manpower and talent development, embracing digital technologies, automation, adapting new technologies, as well as growth of certain sectors/industries. Attention needs to be given to innovation-related businesses such as cloud computing, mobile wallets, blockchain, robotics and big data,” it said.

On the real estate sector, EY said the government could introduce some measures targeting the M40 group as they would likely be the group of people who could provide further traction to the housing market.

This could include extending the period of stamp duty exemption on the purchase of a residential property under the National Home Ownership Campaign without a cap on property price; reintroducing the personal relief on housing loan interest for a period of three consecutive years; and providing double tax deduction on housing loan interest subsidised by employers.

For the oil & gas sector, EY said that while external factors cannot be controlled, the government could continue to support the industry domestically and consider the gaps in the international supply chain which Malaysia can focus on filling.

“One potential area is oil trading – with the Global Incentives for Trading (GIFT) programme announced in 2011, we took a big step towards providing a platform to attract oil traders. Eight years on, we should refine our focus on and promotion of this incentive to attract the industry’s biggest players,” it said.


With new spare capacity, Russia joins ranks of oil’s swing producers

MOSCOW, Oct 7 — When Saudi Arabian oil installations sustained major attacks last month, Russia’s energy minister, Alexander Novak, was ready to ramp up production to fill the supply gap. “If there had been a need we would have been ready for…


Unilever to halve use of new plastic

THE HAGUE, Oct 7 — Anglo-Dutch commercial giant Unilever said today it will cut its use of new plastic by half by 2025 as pressure grows on multinational companies to do more for the environment. The firm, which owns brands including Dove soap,…


US: Nord Stream 2 to boost Russian influence on EU

VILNIUS, Oct 7 — US Energy Secretary Rick Perry warned today that the controversial Nord Stream 2 natural gas pipeline would increase Russia’s political influence on European Union foreign policy. On a visit to Lithuania to promote US energy…


Stocks hover as weak European data, trade anxiety offsets US jobs boost

LONDON, Oct 7 — Global stocks were little changed today as broadly positive US jobs data quelled some fears about an economic slowdown, but nervousness over US-China trade talks persisted and more weak European economic data trickled in. European…


European shares muted as gains in defensives outweigh nerves on trade, Brexit

BERLIN, Oct 7 — European shares were little changed in choppy trade today, after their steepest weekly loss this year, as bids in defensive shares outweighed nervousness ahead of crucial US-China trade talks and Brexit negotiations. Bayer climbed…