KUALA LUMPUR, June 25 — A full-blown trade war between the United States and China will impact Malaysia’s economy, slowing down the growth of its export sector by one to two per cent, Affin Hwang Capital chief economist Alan Tan Chew Leong said….
WASHINGTON, June 25 — A US judge has found three large Chinese banks in contempt for refusing to comply with subpoenas in a probe into North Korean sanctions violations, The Washington Post reported, adding one of them could lose access to the US…
PETALING JAYA: Prestar Resources Bhd’s 51%-owned Tashin Holdings Bhd is looking to raise RM34.41 million from its proposed listing on the ACE Market of Bursa Malaysia Securities Bhd.
Tashin said in a statement that it plans to use RM17.55 million (51%) raised to purchase a piece of industrial land in Seberang Perai, Penang for the construction of a new factory with a total floor space of approximately 90,000 sq ft.
It will further utilise RM7.7 million (22.38%) to purchase machinery and equipment to support its business expansion into the manufacturing of wire mesh and to upgrade the existing steel processing line; RM5.96 million (17.32%) as general working capital while the remaining RM3.20 million (9.3%) to be used to defray listing expenses for the initial public offering (IPO).
The company’s steel products are widely utilised and applied in various industries such as automotive, manufacturing, engineering and steel fabrication as well as construction. Its current factory has an operating capacity of about 224,280 metric tonnes per annum.
Tashin managing director Lim Choon Teik said the new factory is intended to house the company existing manufacturing line for flat and square bars and its new manufacturing line for wire mesh.
“We believe the addition of wire mesh in our manufactured product offerings will allow us to further improve our profitability and strengthen our customer base, which in turn will enhance our competitive position,” he added.
Under the listing exercise, Tashin is issuing 59.33 million new shares at 58 sen per share, of which 17.45 million shares will be made available to the Malaysian public via balloting; 8.72 million shares for its eligible directors and employees as well as eligible directors and employees of the Prestar Group; 17.45 million shares for the entitled shareholders of Prestar while the remaining 15.71 million shares for private placement to selected Bumiputera investors approved by the Ministry of International Trade and Industry (MITI).
Tashin’s existing shareholders will also make an offer for sale of 55.49 million shares to selected investors and selected Bumiputera investors approved by MITI by way of private placement.
Based on the enlarged share capital of 348.99 million shares, Tashin is expected to have a market capitalisation of RM202.41 million upon its listing scheduled on August 1.
The IPO is open for subscription till July 19.
M&A Securities Sdn Bhd is the adviser, sponsor, managing underwriter, joint underwriter and placement agent for the IPO while Malacca Securities Sdn Bhd and JF Apex Securities Bhd are joint underwriters for the IPO exercise.
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PETALING JAYA: Fajarbaru Builder Group Bhd has secured a RM297.54 million job for the main building works (Phase 1) of Duta Park Residences in Kuala Lumpur.
The proposed high-rise residential development is by Malton Bhd’s wholly owned subsidiary Malton Development Sdn Bhd.
The contract is to develop two tower blocks of high rise residential development, made up of 49 levels and 30 levels each, encompassing 572 and 268 units respectively. The construction work for Phase 1 of the development is expected to be completed within 36 months from its commencement.
Fajarbaru has additionally accepted to lock in a sum of RM108 million for the construction of phase 2, a tower block of 46 levels comprising 536 units. The award is subject to confirmation by Malton Development and the locked in price shall remain valid for a period of 12 months from the commencement of Phase 1.
The contract is expected to contribute positively to the earnings and net assets of the group from the financial year ending June 30, 2020 onwards.
KUALA LUMPUR: Serba Dinamik Holdings Bhd has sealed a collaboration with Perbadanan Kemajuan Negeri Melaka to explore opportunities in Malacca related to oil and gas, engineering and civil works as well as construction and development projects.
The collaborative effort is between Serba Dinamik Sdn Bhd, a wholly-owned subsidiary of Serba Dinamik Bhd and a unit of Perbadanan Kemajuan Negeri Melaka, PKNM Energy Sdn Bhd (PKMNE).
Serba Dinamik group managing director and group chief executive officer Datuk Dr Ir Mohd Karim Abdullah said the collaboration would expand the company’s footprint in Malacca, in addition, to its projects in Johor, Sabah, Sarawak and Terengganu.
“We have two rounds of discussion and we have identified quite a number of projects. (Now) We need to sit down and digest all the information in the first round of discussion and fine-tune technical and commercial aspects as well as in line with their policies as the state government.
“Hopefully, we can roll out something in six months from now, which we are quite optimistic that it can happen because Malacca is a vibrant state,“ he told reporters after the signing a memorandum of understanding with PKNME here today.
Meanwhile, Serba Dinamik has secured six operations and maintenance (O&M) as well as one engineering, procurement, construction and commissioning contracts in Malaysia and Qatar through Serba Dinamik International Ltd and Serba Dinamik Sdn Bhd.
The O&M contracts secured in Qatar has an estimated value of US$60 million (about RM250.62 million), while the contracts bagged in Malaysia has no specific value as they were secured on a “call-out” basis, where work orders will be awarded at the discretion of the clients.
Mohd Karim said the group maintained a target of RM10 billion in terms of the order book in the financial year ending Dec 31, 2019.
To date, Serba Dinamik Holdings’ order book stood at RM8.7 billion.
KUALA LUMPUR: The Fintech Association of Malaysia (FAOM) is in discussion with the relevant financial authorities of the Labuan financial centre in facilitating businesses onshore Malaysia and abroad to utilise the uniqueness of Labuan’s financial regulatory framework focusing on fintech startups, SMEs, growth and scaleable companies that seek to tap on foreign investments and funds.
FAOM president Ridzuan Abdul Aziz (pix) said Labuan’s financial regulatory framework is able to facilitate non-ringgit financial services and transactions, provided that the corporations duly established their presence within the relevant financial regulations under the purview of the Labuan Financial Services Authority (LFSA). The process to be approved by LFSA is currently facilitated by the Labuan International Business and Financial Centre (Labuan IBFC).
“A lot of people forget that Labuan is part of Malaysia, which is able to manage ringgit and non-ringgit (trading) at the same time. The ability to manage non-ringgit for the benefit of businesses, especially for start-ups, is unique because no other countries in Asean can do that,” he told SunBiz at the MyFintech Week 2019 last week.
FAOM is in talks with both LFSA and Labuan IBFC for relevant improvements to be made and the possibilities of linking Labuan’s midshore financial ecosystem with Malaysia’s onshore financial ecosystem as well as with other countries.
While the availability of many peer-to-peer lending and equity crowdfunding platforms help to fund the needs of young start-ups, Ridzuan said companies that are seeking Series B and Series C funding or US$10 million-US$30 million, would find it a challenge. He said several areas that need quick improvement include facilitating company registration, opening of bank account and eventually facilitate funding activities, especially if it is to be sourced from abroad.
“FAOM noticed that several Malaysia-registered companies had to shift their business abroad to ease Series B and Series C funding, as they found that it was quite challenging to manage the activity onshore. Thus, the Labuan financial regulatory framework presents an opportunity for the LFSA and Labuan IBFC to link their financial ecosystem with the Malaysia onshore and other countries’ ecosystems in facilitating the needs of these companies, especially in seeking investment from foreign sources.”
Ridzuan is also the country director & head of Asean business of an approved remittance provider WorldRemit Malaysia, a subsidiary of WorldRemit Ltd, London. He was recently appointed as one of the International Advisory Panel members for the LFSA since June 2019 for a two-year tenure.
“The initial understanding about the regulatory structure is this is something that can be done quickly and Malaysia can take advantage of this fairly fast. We could be able to facilitate the flow of foreign money into Malaysia via this method.”
Ridzuan pointed out that if the idea is well executed in Labuan, it can be replicated in other tax-free jurisdictions in Malaysia, such as Langkawi.
The LFSA and Labuan IBFC are already initiating innovative steps and FAOM will work closely in connecting with and creating awareness to the fintech firms of various needs about these opportunities. Among others, the LFSA had approved more than 20 digital asset exchange companies that facilitate trading of various digital assets and are now considering for fund raising via tokenisation and coin offering.
In addition, FAOM is keen to suggest for a sandbox-like framework to the LFSA in facilitating more experimentation under a controlled and non-ringgit environment to spur more innovative business model creation and technology adoption.
Funding is one of the five pillar strategies of FAOM, alongside talent, branding, technology and environment.
PETALING JAYA: Handal Resources Bhd’s unincorporated joint venture, Borneo Seaoffshore – Handal JV has been awarded a RM360 million contract from Petronas Carigali Sdn Bhd.
Handal told Bursa Malaysia that the contract is for the provision of water injection module supply on mobile offshore unit for mobile water injection facilities – Package 4.
The duration of the contract is seven years, commencing from March 2020, with an extension option of a further three years.
Handal said the JV was established to collaborate and submit the technical and commercial proposal to bid for and execute the contract.
The contract is expected to contribute positively to Handal’s earnings for the financial period ended June 30, 2019 and subsequently until the expiry of the contract.
With this latest win, Handal’s order book will surge to more than RM950 million.