terengganu

 
 

Boustead clinches RM96m deal from Defence Ministry

PETALING JAYA: Boustead Holdings Bhd’s subsidiary Boustead Naval Shipyard Sdn Bhd announced that it has accepted a RM95.99 million contract from Malaysia’s Defence Ministry.

According to its filing with the stock exchange, the contract is for refitting works on Malaysian navy vessel KD Terengganu.

A formal contract between the government and the group will be signed at a later date.

“The contract is expected to contribute positively to current and future earnings of Boustead group,” it said.


ECRL civil works portion attracts 1,321 contractors

PETALING JAYA: The civil works portion of the RM44 billion East Coast Rail Link (ECRL) project has attracted 1,321 submissions from construction companies during the pre-qualification exercise held on May 29 and 30.

According to the main contractor China Communications Construction Company Ltd (CCCC), participation of G7 category of CIDB rated companies topped the list with 859 submissions or 65% of total submissions.

This was followed by the Grade G5 category with 134 submissions and Grade G4 category with 132 submissions. The remaining consisted of Grade G3 and Grade G6 with 104 submissions and 92 submissions respectively.

The exercise, which was held to identify potential subcontractors, also attracted submissions from 994 Bumiputera engineering and construction companies representing 75.25% of overall registration.

Malaysia Rail Link Sdn Bhd (MRL) and CCCC said in a joint statement today that the response shows that local contractors are ready to demonstrate their willingness and capabilities to participate in mega infrastructure projects.

The revised ECRL project includes an increase in civil works participation for local contractors from 30% to 40% of the project, as agreed by the asset-owner MRL and CCCC.

“We also hope that ECRL project will be an exemplary government project that demonstrates the capabilities of our local contractors to work with an international contractor in carrying out and meeting the high standards of a large-scale infrastructure project,” said MRL CEO Datuk Seri Darwis Abdul Razak.

“With the participation of local contractors, this will not just act as stimulus to the local construction sector but will also serve as a catalyst in the transfer of knowledge and technology in view of the ECRL project to be among the most challenging engineering and construction projects in Malaysia,” he added.

MRL urged local industry players to participate in the ECRL project not just as contractors, but also as suppliers, consultants and other relevant scopes, and hopes that local contractors can demonstrate their capabilities, technical know-how and offer their services competitively.

“As such, we hope that Malaysian local contractors would highly benefit from the co-operation and sharing of knowledge and technology that will, in the end, maximise the commercial impact of the Malaysian government’s investment by increasing the competitiveness and also improvements in the quality of products and services provided by the Malaysian contractors,” said China Communications Construction (ECRL) Sdn Bhd managing director Bai Yinzhan.

Following the pre-qualification exercise, MRL will be working closely with CCCC in the evaluation and shortlisting process of 1,321 construction companies to be potential tenderers of the ECRL’s civil works packages. Companies that are successful in the shortlisting will be notified in writing by CCCC.

The ECRL project’s rail network would traverse the East Coast states of Kelantan, Terengganu and Pahang as well as the states of Negeri Sembilan, Selangor and Putrajaya. The 640km rail network is scheduled for completion by December 2026 and is expected to link Kota Bharu to Putrajaya in about four hours.


Malaysia's ECRL gets over 1,000 submissions from local builders

KUALA LUMPUR, June 12 — More than 1,000 construction companies nationwide are eyeing the 40 per cent civil works portion of the RM44 billion East Coast Rail Link (ECRL) project following a Pre-Qualification (Pre-Q) exercise to identify potential…


Analysts optimistic of Proton’s outlook after demand surge for its new models

KUALA LUMPUR, May 7 ― Analysts are positive on Proton Holdings Bhd’s outlook following a pent-up demand for its all-new and refreshed models and see no reason why it cannot return to the black next year. The carmaker reclaimed its position as…


Caring Pharmacy plans expansion into second-tier cities

PETALING JAYA: Caring Pharmacy Group Bhd will incorporate more local products in its pharmacies under the ‘Let’s Go Retail’ programme, paving the way for its expansion into second-tier cities in the country.

Managing director Chong Yeow Siang said currently 90% of its products are imported and its merchandise mix is more suitable for urban customers. Hence there is a huge potential for quality local products to be retailed in its outlets and for it to recommend to customers.

The Let’s Go Retail programme is a collaboration between Caring Pharmacy and business consulting & distribution company TriSuccess Global Sdn Bhd to help local entrepreneurs expand their business.

Under the initiative, Caring Pharmacy will commit to retailing Malaysian products that have passed its assessment, review and testing. In the initial phase, Caring will feature more than 20 products from over 120 merchants.

“With this Let’s Go Retail programme, we’re able to localise our merchandise mix and appeal to more customers,” Chong told SunBiz after signing the memorandum of agreement with TriSuccess here on Tuesday.

Some of the participating Malaysian brands are Ella, Serai Mas, Ana, Mary Jardin le fleur, Habada, Yooba Belle, Dominance, Kayman Beauty, Qaseh Bonda, Narinar, Turbo Gel and Dr Mama. All participating brands will be available from June 2019 onwards at selected Caring Pharmacy outlets by batches.

TriSuccess CEO Mohd Shahrilwan Mohd Sidek said there are many high potential “blue ocean” local brands in Malaysia and one of the objectives of the programme is to identify these brands and capitalise on the potential of these products and enable them to penetrate the retail market.

As the largest pharmacy chain in Malaysia, Caring Pharmacy has 126 outlets in Malaysia, except Perlis, Kedah, Terengganu and Sarawak.

In the East Coast region, Chong said, it only has an outlet each in Kelantan (Kota Baru) and Pahang (Kuantan); and also only one in Sabah (Kota Kinabalu) and will focus on adding more outlets in these places in the next financial year ending May 31, 2020.

Caring Pharmacy opens 12 to 15 outlets a year and Chong estimates that it will have 180 to 200 outlets in five years.

“Hopefully in five years, we’re able to be present in all the cities and second-tier towns in Malaysia to be a truly national pharmacy chain where customers can access our services and products,” said Chong.

Also present at the signing ceremony was Deputy Entrepreneur Development Minister Datuk Dr Mohd Hatta Md Ramli, who said that the government is finalising details of the National Entrepreneurship Policy, which will be submitted to the National Entrepreneur Strategic Development Council (NESDC).

“We’re now at the end of our findings and yesterday we had a townhall gathering of stakeholders and interested parties.

“We’re finalising the policy for entrepreneur development for the country. That will be submitted to NESDC to be confirmed as a national policy and we’ll find a proper direction of entrepreneur development,” he told a press conference after witnessing the signing ceremony.

The National Entrepreneurship Policy is expected to be launched by the Prime Minister in July.

Mohd Hatta declined to reveal what areas the National Entrepreneurship Policy will hinge on, only saying that “all important areas” will be covered.

The Entrepreneur Development Ministry is the secretariat to the NESDC, which is chaired by the Prime Minister.


Pharmaniaga a ‘buy ’ despite Cabinet scrutiny

PETALING JAYA: MIDF Research has upgraded Pharmaniaga Bhd to a “buy” call from “neutral” previously, with a revised target price of RM2.45 from RM2.63 pre-viously, despite concerns over the government not renewing its concession agreement with the company.

Pharmaniaga has a 10-year concession agreement with the government which is slated to end in November 2019. The group, along with My EG Services Bhd, Padiberas Nasional Bhd and Puspakom Sdn Bhd are currently under scrutiny by the cabinet com-mittee on market monopolies.

MIDF Research said there is a fair chance that the concession business still be awarded to Pharmaniaga given its years of experience and expertise in the logistics and distribution business; the huge amount of investment to ensure efficient deliveries; and the massive savings enjoyed by the Health Ministry from Pharmaniaga’s handling capability.

“We estimate that it will take up at least four years for other competitors to reach the same capability. In addition, the group has renewed its focus on its non-concession business by streng-thening business synergies between its Indonesian sub-sidiaries to expand its presence in the Indonesian market,” it said in its report today.

MIDF Research said these factors will help support the group’s earnings going forward while the recent decline in the share price presents an oppor-tunity to accumulate the stock.

“In addition, the stock commands an attractive dividend of more than 7% in comparison with its peers. All things considered, we upgrade our call on the stock to ‘buy’,” it added.

Based on a meeting with Pharmaniaga, MIDF Research concluded that the company’s logistics and distribution of medical supplies is vital to all 148 government hospitals and 1,700 clinics nationwide.

Pharmaniaga’s concession business involves the logistics and distribution of 750 items listed under the Health Ministry’s approved product purchase list. The company is required to organise tender exercises that involve all prospective vendors but the selection of vendors is managed by the ministry.

“The company is allowed to submit its own bid to supply the products but their tender documents need to be sub-mitted two weeks in advance before the public call for tender. This ensures a level playing field to all other potential vendors. In fact, Pharmaniaga’s in-house products only accounted for about 27% of the concession business,” MIDF Research noted.

Pharmaniaga has incurred huge investments on system and process improvements over the 10-year tenure of the concession agreement, including RM300 million for the development of the Pharmacy Information System (PhIS) across the ministry’s 1,118 facilities.

In FY19, the company plans to invest some RM122 million to increase its warehouse capacity, particularly in Terengganu and Sarawak to further reduce delivery time. Its current ware-house capacity is about 430,000 sq ft nationwide.

Meanwhile, the group is also working on reducing its depend-ency on the concession business, with a mid-term target revenue contribution of 40% from the concession business and 60% from the non-con-cession business.

“Going forward, we expect the growth momentum to continue given the company’s focus on manufacturing seg-ment which commands a better margin. In fact, Pharmaniaga has allocated about RM52 million to build up its manufacturing capabilities,” said MIDF Research.

The research house, however, revised Pharmaniaga’s earnings forecasts downwards for FY19F and FY20F by RM5.9 million and RM5.8 million respectively, based on higher finance costs to fund the planned capital expenditure and higher effective tax rate of 30%.


RM20m HERS fund to assist rural women entrepreneurs, says minister

TASEK GELUGOR, March 31 — The Rural and Regional Development Ministry has allocated RM20 million this year under Harapan Entrepreneurship Realisation Strategy (HERS) Fund to assist rural women entrepreneurs to expand their business. Minister Datuk…


Selangor Dredging’s Fortress Minerals receives approval for listing in Singapore

PETALING JAYA: Selangor Dredging Bhd’s (SDB) unit Fortress Minerals Ltd (FML) has been given the green light to list on the Catalist Board of the Singapore Stock Exchange.

The listing date is March 27, according to the group’s filing with Bursa Malaysia.

FML is a 37%-owned associated company of SDB Mining Sdn Bhd, which in turn is a wholly owned subsidiary of SDB.

FML is principally involved in the business of exploration, mining, production and sale of iron ore concentrate. It produces iron ore concentrate with TFe grade of 65.0% and above from iron ore mined from the East, Valley and West Deposits of its Bukit Besi Mine, situated in Terengganu, Malaysia, through its subsidiary Fortress Mining Sdn Bhd.

The mining right for Bukit Besi Mine covers a total area of about 526.2 hectares, and will expire in early 2033. It sells its iron ore concentrate primarily to steel mills and trading companies in China and Malaysia.

SDB said proceeds from the initial public offering (IPO) will be used to further develop the Bukit Besi Mine, including continuing and future exploration and geology work, as well as expansion of iron ore processing capacities.

“On top of using the proceeds for general working capital purposes, the group will also look at acquisition, joint venture and/or development of new mines, whether in Malaysia or elsewhere.”

FML’s IPO is sponsored by PrimePartners Corporate Finance Pte Ltd.

At the noon break, SDB’s share price gained 1 sen or 1.6% to 65 sen on 76,800 shares done.


Selangor Dredging’s associate Fortress Minerals receives approval for listing in Singapore

PETALING JAYA: Selangor Dredging Bhd’s (SDB) unit Fortress Minerals Ltd (FML) has been given the green light to list on the Catalist Board of the Singapore Stock Exchange.

The listing date is March 27, according to the group’s filing with Bursa Malaysia.

FML is a 37%-owned associated company of SDB Mining Sdn Bhd, which in turn is a wholly owned subsidiary of SDB.

FML is principally involved in the business of exploration, mining, production and sale of iron ore concentrate. It produces iron ore concentrate with TFe grade of 65.0% and above from iron ore mined from the East, Valley and West Deposits of its Bukit Besi Mine, situated in Terengganu, Malaysia, through its subsidiary Fortress Mining Sdn Bhd.

The mining right for Bukit Besi Mine covers a total area of about 526.2 hectares, and will expire in early 2033. It sells its iron ore concentrate primarily to steel mills and trading companies in China and Malaysia.

SDB said proceeds from the initial public offering (IPO) will be used to further develop the Bukit Besi Mine, including continuing and future exploration and geology work, as well as expansion of iron ore processing capacities.

“On top of using the proceeds for general working capital purposes, the group will also look at acquisition, joint venture and/or development of new mines, whether in Malaysia or elsewhere.”

FML’s IPO is sponsored by PrimePartners Corporate Finance Pte Ltd.

At the noon break, SDB’s share price gained 1 sen or 1.6% to 65 sen on 76,800 shares done.


More Malaysians starting to shop online, says Shopee

KUALA LUMPUR, March 15 — Shopee Malaysia has made it into the top 10 most visited sites in Malaysia, making it the number one e-commerce site in the country, Comscore, the trusted currency for planning, transacting and evaluating media across…