singapore

 
 

Chinese ETF investors throw gold a lifeline

BEIJING, Aug 21 — Just when you thought investors have given up on gold, the Chinese swooped in. On Friday, as prices of Bosera Gold Open-End ETF slumped to the lowest since December 2016, the exchange-traded fund attracted US$68 million (RM279…


PetChem monitors impact of US-China trade war

KUALA LUMPUR: Petronas Chemicals Group Bhd is currently monitoring the impact of the escalating trade war between the United States and China on the petrochemical industry. Managing director/chief executive officer Datuk Sazali Hamzah pointed out that there is no serious threat to the industry at the moment. “Our business is still as usual. But we […]


Hess’ Southeast Asian oil & gas assets draw interest

SINGAPORE: The Southeast Asian offshore natural gas assets of US oil and gas producer Hess Corp, estimated to be worth as much as US$5 billion (RM22.05 billion), have attracted takeover interest from firms including Thailand's PTTEP PCL and Austrian energy group OMV AG, people familiar with the matter said.

Hess, which has a collection of gas fields in North Malay Basin in offshore Malaysia and in the Malaysia-Thailand Joint Development Area (JDA) with 50% equal partner Petroliam Nasional Bhd (Petronas), has not yet decided whether to sell the assets, according to financial and industry sources.

Their estimated market value would be US$4 billion to US$5 billion, the sources said. They declined to be identified because the takeover interest had not previously been made public.

The interest in Hess' assets, among the few long-term and sizeable projects in the region, comes as cashed-up firms such as PTTEP are buying overseas assets, while the likes of OMV and Kuwait Foreign Petroleum Exploration Co have been scouring for acquisitions in Asia.

Hess, which hasn't reported a profit since 2014, has been under pressure from investors to make money. It posted a smaller-than-expected loss in April-June, but many of its peers have turned profitable after the oil price crash two years ago, fuelling questions as to why Hess has not followed suit.

The firm is developing large offshore oil projects in South America and US shale oil. In 2014, it sold its Thai assets to PTTEP for US$1 billion and also sold its Indonesian assets.

“We don't comment on rumours but we continue to believe that our Malaysia assets are an important part of our portfolio and our value creation strategy,” Hess spokeswoman Lorrie Hecker said in a statement.

“JDA and North Malay Basin are significant long-term, low-cost cash generators, producing stable production and free cash flows, which provide funding for our compelling, long-term opportunities in Guyana and the Bakken (in the United States).”

“A number of parties have looked (at the Hess assets) and have teams working on this,” said one financial source.

“Increasing numbers of companies believe a sale is probable,” said the person, adding that Hess' project would also appeal to private-equity backed players and mid-sized energy firms.

He said PTTEP was working with a financial adviser for its interest in the assets.

Another source said some parties had done preliminary work on the assets and were waiting to see if Hess would start a sale process.

OMV and Kuwait Foreign Petroleum Exploration Co declined to comment.

This month, OMV won regulatory approval to buy Royal Dutch Shell's upstream assets in New Zealand for US$578 million. OMV said in March that the acquisition was a key step to develop Australasia into a core region in line with its new strategy.

Petronas declined comment while PTTEP said it was focused on expanding in Southeast Asia.

“PTTEP is interested in M&A deals with particular focus on assets located in PTTEP's region of experience such as South East Asia, which is PTTEP's areas of expertise and the operating risk is moderately low,” the Thai company told Reuters, declining to comment specifically on Hess assets.


‘Supplementary budget not needed’

PUTRAJAYA: The government does not need a supplementary budget for now as the country’s fiscal deficit is under control, says Deputy Finance Minister Datuk Ir Amiruddin Hamzah.

He said a well-managed and sustainable fiscal deficit will strengthen Malaysia’s economy and the country will not need to borrow again.

“We will not need a supplementary as the government is controlling the fiscal deficit in terms of expenditure and income. Even if there are changes, controlling the fiscal deficit is our priority in growing the national economy,” he said after handing over RM34 million in financing under the MyCreative Ventures financing scheme to 19 creative companies here today.

On Aug 12, Prime Minister Tun Dr Mahathir Mohamad said the government was considering tabling a supplementary budget.

Earlier, Finance Minister Lim Guan Eng announced that Malaysia’s projected fiscal deficit would rise to RM40.1 billion in 2018 from RM39.8 billion, which would maintain the federal government budget deficit at 2.8% of gross domestic product (GDP).

Amiruddin in his opening speech urged companies in the creative industry to play a role in formulating a product commercialisation plan by combining the creative arts with the tourism sector.

“This initiative has the potential to contribute to the nation’s economy as the tourism sector, which is based on the arts and culture, could generate a lucrative revenue, for example, a country like France earns about RM934 billion a year from their tourism sector,” he said.

MyCreative CEO Riza Saian said Malaysia’s creative industry contributes just 2% to GDP compared to over 5% in Indonesia, Singapore and Korea.

“Many creative enterprises in Malaysia are at an early stage and need more time to earn substantial profits. Malaysia has a wealth of creative talents, but their business skills on the whole need to be enhanced,” he said.

Riza noted that RM200 million had been invested in 138 creative companies under 10 categories – visual arts, traditional arts, music, fashion, design, creative studies, culinary arts, creative content, literature and performance arts.

The financing is in line with MyCreative’s objective of supporting the implementation of the national creative industry policy and stimulating the growth of the creative industry through a strategic and innovative financing scheme in the form of equities, loans or a combination of both, he said. – Bernama


Supplementary budget not needed for now

PUTRAJAYA: The government does not need a supplementary budget for now as the country’s fiscal deficit is under control, says Deputy Finance Minister Datuk Ir Amiruddin Hamzah.

He said a well-managed and sustainable fiscal deficit will strengthen Malaysia’s economy and the country will not need to borrow again.

“We will not need a supplementary as the government is controlling the fiscal deficit in terms of expenditure and income. Even if there are changes, controlling the fiscal deficit is our priority in growing the national economy,” he said after handing over RM34 million in financing under the MyCreative Ventures financing scheme to 19 creative companies here today.

On Aug 12, Prime Minister Tun Dr Mahathir Mohamad said the government was considering tabling a supplementary budget.

Earlier, Finance Minister Lim Guan Eng announced that Malaysia’s projected fiscal deficit would rise to RM40.1 billion in 2018 from RM39.8 billion, which would maintain the federal government budget deficit at 2.8% of gross domestic product (GDP).

Amiruddin in his opening speech urged companies in the creative industry to play a role in formulating a product commercialisation plan by combining the creative arts with the tourism sector.

“This initiative has the potential to contribute to the nation’s economy as the tourism sector, which is based on the arts and culture, could generate a lucrative revenue, for example, a country like France earns about RM934 billion a year from their tourism sector,” he said.

MyCreative CEO Riza Saian said Malaysia’s creative industry contributes just 2% to GDP compared to over 5% in Indonesia, Singapore and Korea.

“Many creative enterprises in Malaysia are at an early stage and need more time to earn substantial profits. Malaysia has a wealth of creative talents, but their business skills on the whole need to be enhanced,” he said.

Riza noted that RM200 million had been invested in 138 creative companies under 10 categories – visual arts, traditional arts, music, fashion, design, creative studies, culinary arts, creative content, literature and performance arts.

The financing is in line with MyCreative’s objective of supporting the implementation of the national creative industry policy and stimulating the growth of the creative industry through a strategic and innovative financing scheme in the form of equities, loans or a combination of both, he said. – Bernama


Petronas Dagangan Q2 profit up 30pc to RM322.53m

KUALA LUMPUR, Aug 20 — Petronas Dagangan Bhd’s net profit jumped 30 per cent to RM322.53 million for the second quarter ended June 30, 2018 as compared with RM247.78 million in the same period last year. The better performance was due to higher…


Bursa Malaysia ends higher, led by Petronas Chemicals

KUALA LUMPUR, Aug 20 — Bursa Malaysia closed higher today on continued buying in selected heavyweights led by Petronas Chemicals, as well as mid and small-cap stocks, in sync with most regional peers, dealers said. At 5pm, the benchmark FTSE Bursa…


KLCI gains momentum going into midday, PetChem lifts

1

  KUALA LUMPUR: After a slow start at the open, the FBM KLCI moved higher into positive territory, lifted by Petronas Chemicals, and ended the morning session up 4.5 points to 1,787.97. Trading volume was 1.18 billion shares valued at RM851.41mil. There were 335 gainers versus 417 decliners and 377 counters unchanged. Asian markets were cautiously optimistic as investors awaited more details on proposed trade talks about the US and China. Japan Nikkei moved between positive and negative territory, and traded 0.33% lower at midday. Shanghai’s Composite Index was upRead More


RAM revises Malaysia’s 2018 fiscal deficit to 3.2pc

KUALA LUMPUR, Aug 20 — RAM Ratings has revised Malaysia’s fiscal deficit expectations for 2018 to 3.2 per cent of the Gross Domestic Product (GDP), which is a still-manageable level from 2.8 per cent previously. It said fiscal gains derived from…


Ringgit recovers ground against US dollar

KUALA LUMPUR, Aug 20 — The ringgit recovered its position in opening slightly higher against the US dollar today, following a week of weakening against the greenback due to external factors. At 9am, the local note was traded at 4.0970/1020 versus…