growth potential

 
 

Saudi crown prince says to finalise US$533m privatisation deals this year, reports Asharq al-Awsat

RIYADH, June 16 — Saudi Arabia’s crown prince said today that the government will finalise privatisation deals worth 2 billion riyals (US$533 million) before the end of this year, according to an interview with the Saudi-owned Asharq al-Awsat…


Saudi crown prince says to finalise US$533m privatisation deals this year, reports Asharq al-Awsat

RIYADH, June 16 — Saudi Arabia’s crown prince said today that the government will finalise privatisation deals worth 2 billion riyals (US$533 million) before the end of this year, according to an interview with the Saudi-owned Asharq al-Awsat…


Bursa Malaysia enters blockchain-powered securities borrowing and lending

KUALA LUMPUR: Bursa Malaysia Bhd has embarked on a securities borrowing and lending (SBL) Proof-of-Concept (POC) – a first of its kind in Asean that explores the opportunities afforded by blockchain technology to develop greater transparency and address other operational challenges associated with the SBL market.

The project aims to ramp up efficiency, speed and capacity in securities lending supply and borrowing demand (lending pool).

Developed in partnership with the exchange’s technology partner Forms Syntron Information (HK) Ltd, a wholly-owned subsidiary of Shenzhen Stock Exchange-listed Shenzhen Forms Syntron Information Co Ltd, the POC will involve a diverse range of SBL market participants.

Affin Hwang Investment Bank Bhd, CIMB Investment Bank Bhd, Citibank Bhd, Kumpulan Wang Persaraan (Diperbadankan) and Malacca Securities Sdn Bhd are collaborating with Bursa Malaysia and Forms to drive the development of the blockchain-enabled lending pool to suit the industry’s specific needs, cost and efficiency pressures.

Bursa Malaysia CEO Datuk Muhamad Umar Swift said across different markets, empirical studies show that short selling helps provide additional liquidity and improves price efficiency.

“The growth potential of Malaysia’s SBL market makes it a prime candidate where the power of blockchain technology can create a considerable impact. The collaboration also benefits the wider industry through new knowledge, insights and practical experience in harnessing digital innovation to support and drive the growth of the capital market.”

The initiative also opens the possibility for Bursa Malaysia to undertake deeper explorations in blockchain technologies to address other operational challenges prevalent to SBL activities in Malaysia and discover more opportunities to drive end-to-end functionalities such as market interest discovery, trade capture and collateral management.


Bursa Malaysia takes first step into blockchain-powered SBL

KUALA LUMPUR, May 6 — Bursa Malaysia Bhd has embarked on a securities borrowing and lending (SBL) Proof-of-Concept (POC) that explores the opportunities afforded by blockchain technology to develop greater transparency and address other…


Draw up national strategy plan to revitalise private investments, SERC urges govt

KUALA LUMPUR: The Socio-Economic Research Centre (SERC) has urged the government to draw up a National Investment Strategy Plan to revitalise private investments, which are critical to sustain economic growth.

SERC executive director Lee Heng Guie said reinvigorating private investment is a key priority to sustain economic growth, raise future growth potential, create high income jobs and increase exports.

He said government policies should focus on how to improve competitive edge, which kind of economic policies should be adopted and mapping up the voyage to higher and more sustainable economic growth.

“For the short term, policies should focus on some quick fixes that we can look into to enhance our investment climate,” he told reporters at a briefing on SERC’s quarterly economy tracker today.

Lee said an example of a quick gain for the government is tourism, citing the Visa on Arrival requirements for tourists from China and India which may be relaxed.

He said policymakers need to focus on reforms that will help Malaysia catch up with its regional peers in terms of supply of skilled and creative workforce, adapting to a rapid shift in technological advancement, state-of-the-art infrastructure, industrial development as well as good governance and best business practices.

Lee said the National Investment Strategy Plan must have equal emphasis on direct domestic investment, especially for small and medium enterprises and high quality foreign direct investments.

SERC recommends that the government examine factors restraining business investment decisions, such as economic and investment prospects, domestic policy uncertainty, regulatory and investment policies and the “crowding out” effect from the participation of government-linked companies (GLCs).

Lee applauded the government’s effort to remove ineffective GLCs, which he said would free up resources for public use and provide more room for the private sector.

“The most important function of private investment determinant is profitability, cost of capital, rate of return, equity return to investment and opportunities. People want to know where are we heading,” he said.

He said the government needs to be an effective facilitator by creating the right environment for investments while continuing to invest in sectors that will raise the economy but stressed that the government has limitations as it needs to contain its debt.

“The new government says it needs three years to fix the economy so the private sector has to step up to fill up the void or else the overall economy will be affected,” he said, adding that the private sector should not be overly cautious as the economy is still growing, albeit not as strong as expected due to the government’s transition period.

“The private sector needs to take the lead and step up. Don’t always rely on the government to kick start investments. The government’s role is to create a conducive environment,” he said.


AirAsia drops Vietnam joint venture, to seek other opportunities

PETALING JAYA: AirAsia Group Bhd has scrapped its joint venture (JV) plan to set up a low-cost carrier (LCC) n Vietnam with local partners.

The group told Bursa Malaysia that its wholly owned subsidiary AirAsia Investment Ltd, together with Gumin Company Ltd and Hai Au Aviation Joint Stock Company had amicably agreed to terminate and release each other from all obligations under the transaction agreements in relation to the proposed joint venture in Vietnam, effective April 17, 2019.

Despite the termination, AirAsia stressed that it remains interested in operating a low-cost airline in Vietnam due to its favourable geographical location, expanding aviation market and overall growth potential.

“The termination of the joint venture is not subject to the approval of the company’s shareholders and is not expected to have any financial impact on the net assets or gearing of the company.”

AirAsia first announced its intention to establish an LCC in March 2017 and a memorandum of cooperation was signed in December 2018.

AirAsia Group CEO Tan Sri Tony Fernandes had said Vietnam is one of the last remaining countries with a large population within the region that AirAsia is not in.

AirAsia is already the largest foreign airline group in Vietnam by capacity, currently operating to five destinations in the country, including its latest addition of Phu Quoc.

Its shares gained 1 sen or 0.4% to close at RM2.48 today with 8.08 million shares changing hands.


AirAsia’s subsidiary abandons joint venture in Vietnam

KUALA LUMPUR, April 17 — AirAsia’s wholly-owned unit, AirAsia Investment Ltd, together with Gumin Company Ltd and Hai Au Aviation Joint Stock Company, have mutually agreed to terminate the agreement to set up a joint venture in Vietnam,…


Saudi Aramco to buy Sabic in US$69b chemicals megadeal

RIYADH, March 28 — The world's largest oil producer Saudi Aramco has agreed to buy a 70 per cent stake in Saudi Basic Industries Corp (Sabic) from the kingdom's wealth fund for US$69.1 billion (RM281.2 billion) in one of the biggest deals in the…


OCR, Permaju Industries to develop RM1 billion project in Kota Kinabalu

PETALING JAYA: OCR Group Bhd and Permaju Industries Bhd’s 70%-owned subsidiary Hardie Development Sdn Bhd will jointly develop a RM1 billion project in Kota Kinabalu, Sabah.

In a filing with Bursa Malaysia, OCR said its wholly owned subsidiary O&C Construction Sdn Bhd signed a memorandum of under-standing (MoU) with Hardie Development for the Princess Heights Project.

The project is located on 44.28ha of land belonging to Hardie Development.

O&C Construction and Hardie Development intend to jointly develop Stage 2 and Stage 3 of the Princess Heights Project on a 50:50 profit sharing basis.

Stage 2 of the project comprises Phase 1E (four-storey hypermarket) and Phase 1F (80 units of three-storey terraced shop/offices).

Meanwhile, Stage 3 of the project has been allocated for future development of commercial and residential properties, including e-commerce and lifestyle hub.

The gross development value of the project, excluding Phase 1E, is estimated at RM1 billion.

Upon completion of Phase 1E of the project, it will be leased to MYDIN Mohamed Holdings Bhd for a period of 20 years for the establishment and operation of its hypermarket and retail business. The total collectable rental is estimated at RM433 million.

Permaju Industries executive director Yvonne Chai Woon Yun the MoU is part of the group’s overall strategy to diversify into the property development.

“The Princess Heights project, will capitalise on the opportunities and benefits arising from the growth potential of Sabah’s property market. Going forward, we believe this project will further contribute to the company’s future earnings and improve its financial performance.”


Russian firms eye wider cooperation with Malaysian counterparts

KUALA LUMPUR, March 23 — Russian business entities are exploring opportunities to intensify their interaction with Malaysian businesses and go beyond primarily military-technical cooperation relations. Russian Rostec State Corporation deputy chief…