tiong nam

 
 

The changing e-commerce landscape

With a smartphone in almost every pocket of the developed world, it’s safe to say that the way we shop and do business has changed drastically. Gone are the days where we rush to malls for year-end discounts – nowadays, most of us are eagerly awaiting by our phones or laptops waiting for the right […]


2019: A year of adjustments and adaptation

After a turbulent 2018, 2019 promises to be a slightly better year for Malaysia’s corporate world, with the absence of uncertainties such as the general election held in 2018, the transition of power in the Federal Government, the introduction of several new policies, and others. However, with the changes in policies, and several macro uncertainties […]


Encorp’s JV with Sinmah Capital for Bukit Katil project falls through

PETALING JAYA: Encorp Bhd’s plans to develop its Bukit Katil land in Malacca has hit another setback as plans to jointly develop the land with Sinmah Capital Bhd fell through.

In a filing with Bursa Malaysia, Encorp said the conditions precedent (CP) of the joint venture and shareholders agreement (JVSA) dated June 8, 2017 for the proposed joint venture were not fulfilled as of Dec 6, 2018.

The JVSA was entered into between Encorp Bukit Katil Sdn Bhd (EBKSB), Sinmah Development Sdn Bhd (SDSB) and Sinmah Development JV Sdn Bhd (SDJSB) in June last year.

“The CP period for the JVSA has lapsed and has not been extended by EBKSB and SDSB. As such, the JVSA has been rescinded and the parties shall revert to its original position prior to the JVSA,” said Encorp.

The expiry of the JVSA is not expected to have any financial effect on the earnings per share and net assets per share of Encorp.

Under the JVSA, the parties were to jointly develop 77.9 acres of the land into a mixed development comprising a medical college, hospital and residential properties with a gross development value of RM865 million.

SDSB is a wholly-owned unit of Sinmah Capital while SDJSB is a JV company set up to carry out the development project. EBKSB and SDSB held 70% and 30% stake respectively in SDJSB.

To recap, EBKSB had in October 2016 signed three memorandums of understanding (MoUs) with Kean Leng Construction Sdn Bhd, Tiong Nam Logistics Holdings Bhd’s unit Tiong Nam Properties Sdn Bhd and SDSB, to develop 640.9 acres of leasehold land in Bukit Katil.

However, in July last year, the MoU with Kean Leng Construction lapsed and the parties had mutually and amicably agreed not to further extend the validity period of the MoU. A month later, the MoU with Tiong Nam Properties lapsed, with no conclusion reached on the negotiations between the parties.

The MoU with Kean Leng Construction was to develop 49 acres while the MoU with Tiong Nam Properties was to develop 100 acres.

EBKSB is the master developer of the land, which belongs to Federal Land Development Authority (Felda). Felda holds about 67% stake in Encorp via Felda Investment Corp.

Encorp’s share price fell 2.22% or 1 sen to close at 44 sen today with 31,000 shares traded.


Digital tax may impact parcel delivery logistics

KUCHING: Local authorities looking to implement a digital tax on eCommerce transactions may have indirect impact on logistic players in the form of parcel delivery volume growth. The research team at Affin Hwang Investment Bank Bhd (AffinHwang Capital) in a special report said Malaysia was not alone with conventional tax mechanisms falling behind the emerging […]


Tiong Nam’s property arm buys JB land for RM40m

PETALING JAYA: Tiong Nam Logistics Holdings Bhd’s wholly owned subsidiary Medini Heritage Sdn Bhd (MHSB) has entered into a sale and purchase agreement (SPA) with Pasti Prestij Sdn Bhd (PPSB) to purchase a piece of freehold land measuring measuring 40.613ha in Johor Baru for RM40.22 million.

MHSB, which is in the business of property development, plans to carry out real estate development of the land which is expected to be completed within two years.

The land is located in the Eastern Gateway of Iskandar Malaysia, close to Pasir Gudang Industrial Hub and Tanjung Langsat Industrial Park. The land is 5.5km away from the Senai-Desaru Highway, one of Johor’s major expressways, which connects to other major road arteries in the state and 30km away from Johor Baru city centre and the Customs, Immigration and Quarantine complex.

The group intends to fund the payment of purchase price and the development cost of the land through internally generated funds and/or bank borrowings.

The sale and purchase of the land is estimated to complete within six months from the Estate Land Board’s approval.

“The rationale for the purchase of the land is to enlarge Tiong Nam group’s existing land banks in strategic location in order to enhance its future revenue and profit.”

The gearing ratio of Tiong Nam group is expected to increase by 4% following the payment of purchase price. The group’s latest audited gearing ratio as at March 31, 2017 is 109%.


Tiong Nam logistics unit buys land in JB for RM40.21m

KUALA LUMPUR, June 6 — Tiong Nam Logistics Holdings Bhd’s subsidiary Medini Heritage Sdn Bhd has acquired 40.6 hectares of vacant land from Prestij Sdn Bhd in Johor Baru for RM40.21 million. Medini Heritage’s principal activities consist of…


Neutral on M’sian transport sector over US tariffs

KUCHING: Analysts are neutral on three major transport subsegments – aviation, shipping and logistics – following the possibility of the US imposing additional tariffs on China. Looking at aviation, MIDF Amanah Investment Bank Bhd’s research arm (MIDF Research) believed travel demand should stay elevated based on the strong underlying demand of passenger traffic despite the […]


Tiong Nam faces near term challenges but long-term prospects intact

KUCHING: Tiong Nam Logistics Holdings Bhd (Tiong Nam) could face earnings pressure in the short-medium term as a result of rapid expansion and the start-up of new businesses but analysts are still positive on the group’s long term prospects. Following an analysts’ briefing with Tiong Nam, MIDF Amanah Investment Bank Bhd’s research arm (MIDF Research) […]


The week at a glance 3 September 2017

Sabah & Sarawak SC: Small unlisted companies encouraged to adopt MCCG Besides listed companies, Securities Commission Malaysia (SC) also encourages smaller, unlisted firms to adopt the Malaysian Code on Corporate Governance (MCCG), a set of best practices to strengthen corporate culture anchored on accountability and transparency. “We are always trying to encourage small unlisted companies […]


Tiong Nam on RM100 million Capex Expansion Plans in FY18

KUCHING: Leading logistics and warehousing provider Tiong Nam Logistics Holdings Bhd (Tiong Nam) continues to expand its logistics and warehousing services segment and is allocating capital expenditure (capex) of RM100 million for the financial year ending 31 March 2018 (FY2018). The capex will be utilised to purchase new vehicles to grow the group’s transportation fleet, […]