MAHB receives arbitration notice on klia2 Integrated Complex delay

PETALING JAYA: Malaysia Airports Holdings Bhd (MAHB) has received a notice of arbitration from Segi Astana Sdn Bhd with claims amounting to RM70 million, in relation to the klia2 Integrated Complex.

In a filing with Bursa Malaysia, MAHB said Segi Astana is claiming RM70 million for alleged losses and damages pertaining to the delay in the commencement of the commercial operation of the klia2 Integrated Complex.

MAHB said it is disputing and challenging the claims by Segi Astana. It has appointed a law firm in Malaysia to represent and assist the company in the arbitration proceedings.

The airport operator said the arbitration proceedings are not expected to have any material financial and operational impact to the group or the company’s business operation.

Yesterday, MAHB issued a notice of arbitration against WCT Bhd and Segi Astana to recover the fixed monthly charges of RM958,849 per month for the supply of chilled water for the cooling system of the klia2 Integrated Complex.

Petronas awards two offshore blocks in Peninsular Malaysia

PETALING JAYA: Petroliam Nasional Bhd (Petronas) has awarded Block PM407 and Block PM415 to PTT Exploration and Production Hong Kong Offshore Limited (PTTEP HKO) and Petronas Carigali Sdn Bhd.

PTTEP HKO, a wholly owned subsidiary of PTT Exploration and Production Public Company Limited (PTTEP), is the operator for both blocks with a participating interest of 55% for Block PM407 and 70% for Block PM415.

Petronas Carigali, a wholly owned subsidiary of Petronas, owns the remaining 45% and 30% in the respective blocks.

The two blocks, located about 160km offshore Peninsular Malaysia, were awarded as part of the 2018 Malaysia Bidding Round, an event organised by Petronas to market Malaysia’s acreages to existing and new companies who are interested in conducting exploration and production in Malaysia.

BNM international reserves rise to US$102.6b as at March 15

PETALING JAYA: Bank Negara Malaysia’s (BNM) international reserves amounted to US$102.6 billion (RM416.21 billion) as at March 15, 2019, a 0.2% increase compared with US$102.4 billion as at Feb 28, 2019.

The central bank said in a statement that the reserves position is sufficient to finance 7.4 months of retained imports and is 1.0 time total short-term external debt.

PNB not issuing any exchangeable bond programme

PETALING JAYA: Permodalan Nasional Bhd (PNB) said its board of directors has not approved nor considered the issuance of any exchangeable bond programme, contrary to a recent Bloomberg report about the state-owned fund manager considering its first sale of exchangeable bonds.

“PNB always continually assesses and examines the various means and methods to raise capital for our domestic and global investment activities, including debt instruments such as term loans, sukuk and exchangeable bonds. However, for clarity purposes, to date the PNB board of directors has not approved nor considered any exchangeable bond programme to be issued by PNB,” a PNB spokesperson said in a statement.

According to the spokesperson, such existing or future borrowings, if undertaken, applied and will only apply to PNB’s proprietary portfolio and do not involve its unit trust funds which are segregated and distinct from the proprietary fund of PNB, the company.

The spokesperson noted that the operations and investments of the unit trust funds such as Amanah Saham Bumiputera and Amanah Saham Nasional are strictly regulated by the Securities Commission (SC).

Under the rules of the SC, no unit trust fund manager, including PNB, is allowed to undertake any borrowings for the funds or encumber the assets under these funds for any purpose.

“Accordingly any speculation on this matter is unnecessary and concerns regarding the charging of our unit trust assets are unfounded.

“We wish to state that as the custodian to the wealth of millions of Malaysians, PNB is always guided by its mandate in all of the investment decisions that we make and committed to the highest standards of probity and integrity.”

Yesterday, Bloomberg reported that PNB is exploring options to raise funds for overseas investments, including an offering of exchangeable bonds or notes backed by shares in a listed company.

Quoting sources, the report said that PNB recently asked investment banks to submit proposals for the potential deal but the asset manager had not made a final decision about the underlying stocks for the potential deal.

Wah Seong secures exclusive distributorship for Doosan products in Malaysia

KUALA LUMPUR: Wah Seong Corp Bhd’s indirect 60%-owned subsidiary WDG Resources Sdn Bhd has been made the exclusive distributor for South Korea’s Doosan Infracore Co Ltd construction equipment throughout Malaysia, paving the way for the company to tap vast business opportunities in East Malaysia.

This follows the signing of an exclusive distributorship agreement today between WDG and Doosan, which is South Korea’s global leader in infrastructure support equipment.

The agreement extends WDG’s exclusive distributorship rights to also cover Sabah and Sarawak from just Peninsular Malaysia previously.

In June 2017, WDG had been appointed the exclusive distributor of Doosan range of equipment including excavators, wheel loaders and articulated dump trucks within Peninsular Malaysia.

Wah Seong managing director and group CEO Chan Cheu Leong said the expanded distributorship provides an opportunity for WDG to participate in infrastructure and construction projects in Sabah and Sarawak, including the Pan Borneo Highway.

“The extension of the Doosan distributorship will double the sales potential for WDG. WDG is confident of riding on its excellent track record to break new grounds in Sabah and Sarawak,” Chan said in a statement.

The distributorship is expected to contribute positively to the earnings of WSC group over the period of the distributorship agreement.

Traditionally, Wah Seong group’s industrial trading and services division is mostly entrenched in Peninsular Malaysia; this latest partnership gives the division an opportunity to reach out to Sabah and Sarawak in terms of trade and new opportunities.

Under the two-year distributorship agreement, WDG can leverage on Doosan’s machinery and equipment to take part in infrastructure projects in Sabah and Sarawak. In the past, its focus has been mainly in Peninsular Malaysia.

Doosan vice president of sales and marketing Chris Jeong Kwan Hee said the partnership with WDG will further establish Doosan brand in Malaysia.

“WDG has been effectively and successfully promoting Doosan products in the Malaysian construction industry since 2017. With the exclusive distributorship given to WDG, we are confident to establish a strong presence in the local infrastructure project business,” he added.

Doosan was established as Cho SunMachine Works in 1937 and was renamed Doosan Infracore in 2005. Apart from its own brand of construction equipment and power generation equipment, it also acquired the Bobcat brand in 2015.

WDG is principally involved in the distribution and service of industrial machinery, equipment and parts. It is also an authorised distributor of Mitsubishi Heavy Industries range of diesel generator sets.

After first securing the sole distributorship of Doosan range of construction equipment in Peninsular Malaysia, WDG has established a firm footing in providing its products and services to the local infrastructure and construction sectors.

The distributorship with Doosan also resulted in the group securing contracts to supply construction equipment to the Bandar University Pagoh Project, the Northern Free Trade Zone in Bukit Kayu Hitam, Kedah, the Gemas Double Track Project, Elmina Township in Subang and MCKIP in Kuantan.

Ringgit raised to 4.0 vs US dollar in Public Investment Bank projection

KUALA LUMPUR, March 22 — Public Investment Bank Bhd (PIVB) has revised the ringgit’s projection to RM4.00 against US dollar for 2019, compared with RM4.04 previously, on the back of new developments in the US interest rate direction. In a…

Top Glove's Q2 net profit retreats to RM105.7m

KUALA LUMPUR, March 22 — Top Glove Corporation Bhd’s net profit for the second quarter (Q2) ended February 28, 2019 fell to RM105.79 million from RM109.01 million posted in the same quarter last year. Revenue, however, rose 21 per cent to RM1.16…

TM shares fall 1.86pc on football league lawsuit

KUALA LUMPUR, March 22 — The share price of Telekom Malaysia Bhd (TM) fell by 1.86 per cent at the close of Bursa Malaysia’s morning session on news of the lawsuit by the Malaysian Football League LLP (MFL) over the breach of a sponsorship…

CPI down 0.4% in February 2019

PETALING JAYA: Malaysia’s consumer price index (CPI) recorded a decrease of 0.4% in February 2019 as compared to a decline of 0.7% in the previous month, according to Statistics Department.

In terms of index number, the CPI recorded 120.8 as against 121.3 in corresponding month of the preceding year, the department said in a statement today.

The decrease in the index of transport (6.8%) which contributed 14.6% of overall weight was countered by the increase in the index of housing, water, electricity, gas and other fuels (2%) and food and non-alcoholic beverages (1.0%).

CPI for the period of January-February 2019 declined by 0.5% as compared to the same period last year. On a monthly basis, CPI increased 0.2% as compared to January 2019.

In terms of overall CPI, all states recorded a decrease between 0.2% to 1.4% in February 2019 as compared to February 2018.

However, Kuala Lumpur and Pulau Pinang showed an increase of 0.3% and 0.2%, respectively.

Meanwhile, the higher increase in the index for food and non-alcoholic beverages was registered in most states in Malaysia.

Kuala Lumpur (3.7%), Selangor and Putrajaya (1.3%) recorded higher increases for food and non-alcoholic beverages index above the national index level in February 2019 as compared to the corresponding month in 2018.

Meanwhile, Pulau Pinang recorded the same rate as the national index level for food and non-alcoholic beverages.

Ringgit starts the day unchanged against US dollar

KUALA LUMPUR, March 22 — The ringgit opened unchanged against the US dollar today as investors awaited the release of the Consumer Price Index (CPI) for February by the Department of Statistics later in the day. At 9am, the local currency was…