Sime Darby Plantation, COFCO establish new collaboration on palm oil

BEIJING: Sime Darby Plantation Bhd (Sime Darby Plantation), the world’s largest producer of certified sustainable palm oil, yesterday signed a Memorandum of Understanding (MOU) with China’s COFCO Group Co Ltd (COFCO) to collaborate on a number of palm oil related ventures. The signing event, held at the China World Summit Wing, was witnessed by Prime […]

Pelaburan Hartanah, Maybank Asset Management encourages AHB investments with prize draw

KUALA LUMPUR: Pelaburan Hartanah Berhad (PHB) and Maybank Asset Management Sdn Bhd (MAM) announced another initiative to promote and increase investment in Amanah Hartanah Bumiputera (AHB) scheme with the launch of “Simpan, Labur dan Menang” prize draw with customers standing a chance to win AHB units worth RM400,000 in overall prize. AHB unit holders with […]

Latest upgrade increases KKIA’s baggage handling efficiency by 70 per cent

KUCHING: The recent completion on the baggage handling system (BHS) upgrade at Kota Kinabalu International Airport has increased the airport’s baggage handling efficiency by 70 per cent from about 4,300 bags per hour to more than 7,200 bags per hour. The upgrade amounting to nearly RM19 million involved the installation of in-line hold baggage screening […]

UOB Malaysia partners SJPP to extend government-guaranteed unsecured financing facilities to SMEs

KUCHING: United Overseas Bank (Malaysia) Bhd (UOB Malaysia) has entered into an agreement with Syarikat Jaminan Pembiayaan Perniagaan Berhad (SJPP) to offer government-guaranteed financing to small- and medium-sized enterprises (SMEs)1. SJPP is an administrator and manager of credit guarantee schemes under Malaysia’s Ministry of Finance. Under the agreement, SMEs can obtain collateral-free loans of up […]

China’s Aminbio plans RM1.02 bln bio-gelatine plant in Melaka

SEPANG: China’s halal gelatine company, Gangsu Amin Bio Halal Gelatine Co Ltd (Aminbio), plans to invest RM1.02 billion to set up a bio-gelatine manufacturing plant in Melaka. Entrepreneur Development Minister Mohd Redzuan Md Yusof said the plant would be the company’s first factory outside of China and the largest in Southeast Asia once completed. He […]

Sunway’s Q2 net profit declines to RM215.8m

KUALA LUMPUR, Aug 21 — Sunway Bhd’s net profit for the second quarter ended June 30, 2018 declined to RM215.76 million from RM232.01 million recorded in the same period last year. Revenue, however, rose to RM1.28 billion from RM1.24 billion…

Versatile Creative’s MD and group CFO dismissed

PETALING JAYA: Versatile Creative Bhd has dismissed its managing director Datuk Wong Kong Choong @ Leong Kong Choong and chief financial officer Tan Quok Eow for failing to satisfactorily answer for an unauthorised payment of RM2.3 million.

The Board of directors told the stock exchange that the dismissal comes into effect immediately as the two had failed to satisfactorily answer the allegations made against them in the show-cause letters that were issued to them on August 13.

To recap, Versatile Creative said in a filing dated August 10 that a forensic audit report by Crowe Malaysia revealed that Wong and Tan could not account for an unauthorised payment of RM2.3 million.

In separate filings with the stock exchange, the group also announced the appointment of two executive directors and two non-Independent executive directors.

Air Selangor cuts Gamuda, Taliworks bulk water supply rate in new agreement

PETALING JAYA: Gamuda Bhd and Taliworks Corp Bhd have been informed by Air Selangor of a cut in the bulk water supply rate for the third phase and first phase of the Sungai Selangor Water Treatment Plant (SSP) by 2 sen/m3 and 5 sen/m3, respectively.

Both Gamuda and Taliworks are required to revert with acceptance of the offer no later than 5pm on August 27.

In a filing with Bursa Malaysia, Gamuda said its 80%-owned Gamuda Water Sdn Bhd had received a letter of offer dated August 21, 2018 from Air Selangor setting out the termination of the existing operations and maintenance agreement (OMA) of SSP3 with Splash as well as the settlement of the outstanding Gamuda Water's receivable from Splash.

Gamuda Water and Air Selangor will execute a new SSP3 OMA, which will commence on the operational date until December 31, 2029.

The bulk water supply rate is set at 44 sen/m3 from the operational date till end-2018; 46 sen/m3 from 2019 to 2022; 47 sen/m3 for 2023; and 53 sen/m3 from 2024 to 2029.

For Taliworks, the bulk water supply rate under the new OMA will be a rate equal to a 5 sen/m3 reduction to the existing rate under the SSP1 OMA from the operational date to end-2029, being the expiry date of the existing SSP1 OMA and a final rate of 52.5 sen/m3 for the seven-year extension from 2030 to 2036.

A letter received by wholly-owned subsidiary Sungai Harmoni Sdn Bhd dated August 21, 2018, spelt out key terms of settlement between Air Selangor, Splash and Sungai Harmoni relating to Sungai Harmoni's outstanding receivables arising from the existing operations and maintenance of the SSP1 as well as key terms in respect of the new OMA between Air Selangor and Sungai Harmoni.

Under the termination and settlement agreements, Splash will pay to Gamuda Water and Taliworks, as full and final settlement of all amounts owing by Splash to Gamuda Water and Taliworks under the SSP OMA, an amount equal to 90% of the outstanding fee.

Gamuda and Taliworks said their board of directors are currently reviewing the terms contained in the offer and will make the appropriate announcement in due course after going through due process internally.

Boustead Heavy Industries earnings down in Q2

PETALING JAYA: Boustead Heavy Industries Corp Bhd’s net profit for the second quarter ended June 30 declined by 69.85% to RM7.21 million from RM23.94 million a year ago, due to lower defence-related maintenance, repair and overhaul (MRO) activities, negative contribution from the associates and higher taxation.

Revenue fell 12.31% to RM49.16million from RM43.77 million

“It is encouraging to see that the new government is determined to maintain the nation’s maritime sovereignty. This would require RMN to be at its optimal state of readiness to support Malaysia’s foreign policy and naval diplomacy. We believe this bodes well for our shipyards and business units involved in MRO of naval assets and we foresee sustained business coming from the RMN’s 15 to 5 transformation programme. The construction of the first four of six LCS by our Associate is currently ongoing, with the keel laying of LCS4 is targeted to be held later this year. In addition, our Associate is making good progress on the Littoral Mission Ship project which is currently at an early construction stage,” its board of directors said.

The contracts awarded to the group for the ISS of the RMAF EC725, ISS of the RMN FENNEC AS555SN helicopters, the supply and delivery of RMN’s Communication Suite for Squadron 23rd Frigate and the ISS for the RMN’s Prime Minister’s Class Submarines are expected to contribute positively towards its future earnings. The acquisition of shares in Airbus Helicopters Simulation Centre Sdn Bhd is expected to strengthen the group’s relationship with Airbus, leading to the opening up of potential business collaborations particularly in the Malaysian aviation industry,” it added.

Whilst the group is guardedly optimistic about the prospect of the defence sector, it remains cautious on the outlook for commercial shipbuilding and energy sector.

Despite signs of recovery in crude oil prices, the outlook for the oil industry remains bearish as oil majors scale back exploration and production activities which result in the commissioning of only a handful of new offshore structures.

This, it said, will continue to put pressure on yards already reeling from the lack of fabrication work, hence it does not expect much business related to oil and gas industry at its yards, until the industry fully recovers.

For the period of six months, its net profit more than halved to RM 11.71 million from RM26.65 million.

Revenue for the cumulative period fell 26.31% to RM88.87 million from RM120.61 million.

Ayer Holdings posts RM6.9m net profit in Q2

PETALING JAYA: Plantation and property group Ayer Holdings Bhd posted a net profit of RM6.9 million for the second quarter ended June 30 compared with a net loss of RM174,000 in the previous corresponding quarter in tandem with higher revenue.

During the quarter, its revenue more than tripled to RM22.7 million against RM6.67 million in the same quarter a year ago due to higher sales from its property division.

For the six months period, its earnings increased slightly by 0.4% to RM9.09 million from RM9.06 million last year, while revenue jumped 52% to RM38.87 million from RM25.6 million previously.

For the financial year ending 2018, the group said it anticipates that the fundamental conditions of the property sector to remain largely unchanged from 2017.

However, it expects the plantation segment to be challenging due to the softening in crude palm oil (CPO) price and rising CPO inventory level in Malaysia.