expansion plans


Hartalega upbeat on US market despite trade tensions

KUALA LUMPUR, Sept 10 — The world’s largest synthetic glove manufacturer, Hartalega Holdings Bhd, is optimistic that the US will remain its biggest export market despite ongoing trade tensions.  Hartalega managing director Kuan Mun Leong…

Hartalega upbeat on US market despite trade tensions

KUALA LUMPUR, Sept 10 — The world’s largest synthetic glove manufacturer, Hartalega Holdings Bhd, is optimistic that the US will remain its biggest export market despite ongoing trade tensions.  Hartalega managing director Kuan Mun Leong…

Genting Q2 earnings up 56.4%

KUALA LUMPUR: Genting Bhd’s net profit for the second quarter ended June 30, 2019 jumped 56.4% to RM599.68 million from RM383.52 million a year ago, driven by higher contribution from the leisure & hospitality, particularly in Singapore, US and Bahamas.

Its revenue was RM5.45 billion, an increase of 12.9% compared with the previous year’s RM4.82 billion.

The group has declared an interim dividend of 6.5 sen per share for the quarter under review.

For the six-month period, Genting’s net profit rose 17.8% to RM1.16 billion from RM986.22 million, while revenue increased expanded 9.4% from RM10.07 billion to RM11.02 billion.

Looking ahead, Genting said Genting Singapore is embarking on the implementation phase of Resorts World Sentosa’s SG$4.5 billion mega expansion plans, which will again elevate its position as the region’s premier integrated resort destination.

In the UK, Genting Malaysia will continue reviewing its operations to identify streamlining opportunities to improve operational efficiencies.

In the US, Resorts World Casino New York City maintained its position as market leader in terms of gaming revenue in the Northeast US region.

Nevertheless, Genting said the group remains focused on executing various initiatives to drive visitation and frequency of play at the property.

Meanwhile, it noted that construction of Resorts World Las Vegas (RWLV) continues to progress well.

“As of Aug 10, 2019, RWLV has completed concrete work for both the West and East Towers, topping off at the 69th level. Structural steel construction has been completed for the low-rise casino podium. Total development and land costs incurred as of June 30, 2019 were approximately US$1.5 billion (RM6.3 billion).”

EA Technique maps out expansion plans to take business higher

KUALA LUMPUR: Marine transportation provider EA Technique (M) Bhd has mapped out plans to take its business a notch higher by extending its current shipyard facilities, growing its port services by providing harbour tugboats, anchoring further in the downstream transportation of refined products and chemicals, and raising funds through private placement.

Managing director Datuk Abdul Hak Md Amin said these strategies were vital in growing EA Technique, as well as strengthening its position in the market, especially ahead of full commencement of the Refinery and Petrochemical Integrated Development (Rapid) project in Pengerang, Johor.

“EA Technique is currently drafting expansion plans to grow the company further. We aim at growing our non-marine transportation segment which involves shipbuilding and ship repairing.

“These activities are operated by our wholly owned subsidiary, Johor Shipyard and Engineering Sdn Bhd, and we are actively engaging the landlords to purchase another 8ha of land adjacent to the current plant that spread across 8.09ha,” he told Bernama.

The current capacity of Johor Shipyard is building one 10,000 deadweight tonnage (dwt) tanker or six units of 60 tonnes bollard pull harbour tugboats (Bollard pull is a conventional measure of the pulling power of a tugboat or watercraft).

The homegrown EA Technique is positioned in the top three among companies in the small size (15,000 dwt) tanker segment, the leader in the tugboat for port and offshore operation, and one of the successful floating storage and offloading vessel (FSO) and FSPO players in the country.

On the preparation to supply vessels to Rapid Pengerang, Abdul Hak said the company is looking into adding chemical vessels into EA Technique’s fleet even though it is taking a “wait-and-see” approach towards Rapid operations before making further decision.

“We are going to enter into that (chemical) market… we do have chemical tankers now but we are looking for more business opportunities in that area. We are going to tender for their projects but for now, we would wait for Petronas or other national petroleum and natural gas companies to come out with order requirement. – Bernama

Humbled Deutsche Bank faces battle in its own backyard

FRANKFURT, Aug 20 — Online retailer Zalando is just the kind of fast-growing German business with foreign expansion plans that Deutsche Bank Chief Executive Christian Sewing needs to help drive the struggling lender’s recovery. In an attempt to…

Food courier Deliveroo pulls out of Germany

FRANKFURT AM MAIN, Aug 12 — British food delivery company Deliveroo said today it would pull out of Germany entirely this week, saying it plans to focus on more promising markets elsewhere. In an email, the company told customers that “from…

Economy may weaken in third quarter

PETALING JAYA: Malaysia’s economy may soften in the third quarter (Q3) taking cue from the July Nikkei Manufacturing Purchasing Managers’ Index (PMI), which contracted to 47.6 from 47.8 in June.

AmResearch said based on the historical reading, the current PMI level may keep the gross domestic product (GDP) growth at 4.5%, which is in line with its forecast.

“Nevertheless, our concern at this juncture is that we are still not seeing signs of global manufacturing sector bottoming out. As such, the risk to the economy is still tilted to the downside. Based on our assessment, our worst-case scenario suggests that GDP growth could hit as low as 4%, should the headwinds intensify,” the research house said in a note last Friday.

It cautioned that the manufacturing players continued to report tougher business environment due to lacklustre demand conditions which had put a strain on production, and discourage firms from hiring.

Although Malaysian manufacturers have reported a net inflow of new businesses from abroad, in particular from the US, Japan, and Turkey, the overall demand condition remains challenging on the back of stiff competition.

“As a result, the survey suggests that the local firms are having difficulties securing more new work, citing concerns over slowing global economic growth and geopolitical tensions as their key headwinds. However, manufacturers indicated that their business optimism remained strong in July, albeit a slight pullback from the peak in June, supported by new projects, expansion plans, and more aggressive marketing.”

Meanwhile, MIDF Research opined that the Malaysian economy still remains on an upward track with leading economic index pointing towards a recovery path.

“The optimistic outlook for the second half of the year is underpinned by lower interest rates in developing and emerging economies, gradual pick-up in commodity prices and firm domestic demand.”

The research house expects exports performance to be quite vulnerable especially with the latest abrupt decision by US President Donald Trump to impose 10% tariffs on a further US$300 billion (RM1.24 trillion) worth of imports from China, which would mean that all trade with China will subject to new taxes.

“With the new tariffs in place, it could add more risks to the global economy including Malaysia due to the supply chain factor.”

MIDF foresees Malaysia’s exports growth to moderate further to 3.6% this year from 6.7% in 2018, due to higher base effects and continuous signs of faltering trade globally derived from rising protectionism and a loss of momentum in some major economies, especially in Europe.

Malaysia’s exports in June saw a year-on-year (yoy) decline of 3.1% to RM76.2 billion, due to lower exports of electrical & electronic (E&E) products.

However, a larger trade surplus of RM10.3 billion was recorded as imports contracted at a faster pace of 9.2% to RM65.9 billion.

Tough demand conditions weigh on PMI in July

KUALA LUMPUR: The headline IHS Markit Malaysia Manufacturing Purchasing Managers’ Index™ (PMI®) – a composite single-figure indicator of manufacturing performance – was largely unchanged in July, falling only marginally from 47.8 in June to 47.6.

At current levels, the PMI is broadly indicative of annual gross domestic product (GDP) growth of 4.5%, according to historical comparisons.

According to IHS Markit, the seasonally adjusted Output Index increased for the first time since April during the latest survey period.

“Firms reported a net inflow of new business from abroad for the first time since April, albeit only marginal, with the US, Japan and Turkey mentioned as particular sources of higher export demand,” it said in a statement today.

The rise in exports helped keep the seasonally adjusted New Orders Index above the weak levels seen at the start of the year, but overall demand conditions remained challenging.

Anecdotal evidence suggested that increased competitive pressures had made securing new work more difficult, and that concerns over global economic growth and geopolitical concerns remained headwinds.

However, when looking towards the coming 12 months, Malaysian manufacturers anticipate order book volumes to pick up and support production growth, said IHS Markit, who noted Malaysia’s remarkably resilient business confidence despite external headwinds, though the July survey saw optimism pull back from June’s 68-month peak.

The latest survey data also highlighted firms taking a more cautious approach to staffing levels, as employment was reduced in July. Difficulties in retaining and hiring staff were also mentioned as a factor behind the weaker jobs numbers.

The cautious approach was also apparent in purchasing and inventories data. Buying levels were tapered in July, as has been the case since last October, while stocks of inputs and semi-manufactured items were also pared back. According to anecdotal evidence, existing stocks were sufficient to meet the current operational requirements.

Elsewhere, input prices continued to rise, propped up by unfavourable exchange rate variation as well as reports of increased charges from suppliers and greater utility costs.

“However, the rate of input price inflation eased to a three-month low from May’s recent peak to hint at an easing of supply chain inflationary pressures. At the same time, Malaysian manufacturers raised their output charges only marginally in July, in most cases to partly share greater cost burdens with customers,” said IHS Markit.

IHS Markit chief business economist Chris Williamson said the pull-back in the PMI from the higher levels seen early in the second quarter comes at a time of weakening global economic growth and rising worldwide geopolitical concerns.

He said the global PMI surveys have indicated the slowest pace of worldwide GDP expansion for three years in recent months, with deteriorating trade flows and reduced business investment acting as major drags.

Williamson said the positive net balance of companies expecting output to continue to rise over the coming year is an encouraging sign of resilience in the face of global headwinds, with optimism commonly being fueled by new projects, expansion plans and more aggressive marketing.

Singapore’s 2019 economic growth likely to be weaker but global economy ‘not headed for a crash’, says MAS chief

SINGAPORE, June 27 — The ongoing tension between the United States and China has stalled three of the world’s growth engines — trade, manufacturing and investments — which means the Singapore economy is likely to end the year weaker than…

CE Technology surges to 28 sen high this morning on market debut

PETALING JAYA: CE Technology Bhd was traded at a high of 28 sen this morning following its debut on the Leading Entrepreneur Accelerator Platform (LEAP) Market of Bursa Malaysia.

It had opened at 26 sen today, 2 sen above its offer price of 24 sen. At 10.59am, CE Technology was up to 28 sen on 110,500 shares traded.

The cleanroom gloves exporter expects to raise RM12.48 million from its LEAP Market listing to fund its expansion plans on the back of growing global demand of cleanroom gloves.

The company manufactures and sells nitrile and latex cleanroom gloves that are targeted for niche markets such as the high-end electronics and life sciences industries which require additional chemical and microbiological hazard protection. Cleanroom gloves are mainly used to control contamination and prevent electrostatic discharge.