Singapore Airlines to shift planes from SilkAir to budget arm Scoot

SINGAPORE: Singapore Airlines Ltd said on Thursday it expected to transfer some jets from its SilkAir regional airline to budget carrier Scoot, allowing it to compete more effectively against low-cost rivals like AirAsia Group Bhd and Lion Group. The plan comes after the carrier announced last month it would absorb underperforming SilkAir into the parent […]

Indonesia’s growing thirst for coffee drains premium bean

PANGALENGAN, INDONESIA/NEW YORK: For decades, Indonesia has supplied coffee roasters worldwide with prized beans that give a distinctive taste to brews favoured by connoisseurs. Most locals, however, preferred tea. But now, as younger generations switch to coffee and hundreds of independent coffee shops and roasters pop up across the archipelago, Indonesia’s consumption of beans is […]

Malaysia snaps nine-session losing run, other SE Asian shares subdued

KUALA LUMPUR, June 22 — Southeast Asian stock markets were subdued today as investors assessed the likely fallout of US-China trade tensions on corporate results, while Malaysia snapped nine sessions of losses led by gains in financial and energy…

Coffee trade slow in Vietnam; Indonesia sluggish after holidays

HANOI, June 21 — Coffee trading was slow in Vietnam with domestic prices staying unchanged after hitting a 25-month low a week earlier, while traders in Indonesia were mostly inactive after a long public holiday. In the Central Highlands,…

South-east Asia stocks: Philippines slumps 2pc, move further into bear territory

SINGAPORE, June 21 — Philippine shares slumped 2 per cent on today and moved further into bear territory on persistent foreign investor selling, largely sparked by a weak peso which hit a 12-year low earlier this week. The Philippine Stock…

Tan Chong Motor sole distributor of King Long buses

PETALING JAYA: Tan Chong Motor Holdings Bhd has secured the exclusive rights to distribute King Long coaches and buses in Malaysia for a period of five years.

The working capital for the new business is estimated at RM6.5 million, which will be internally funded by the group.

Tan Chong said in a filing with the stock exchange, its wholly owned subsidiary TC Trucks Sales Sdn Bhd (TCTS) had on June 20 entered into an exclusive distributorship agreement with China’s Xiamen King Long United Automotive Industry Co Ltd for the partnership.

TCTS has been appointed as King Long’s sole and exclusive distributor, assembler and after-sales service provider (including the sale and distribution of spare parts) of King Long coaches and buses, in both completely assembled form and in its bare chassis form, in Malaysia.

TCTS is expected to start sales of King Long products in the fourth quarter of 2018 and to contribute positively towards the group’s earnings in the long-term.

Worth noting is that another wholly owned subsidiary of Tan Chong – TC Motor Vietnam Co Ltd was appointed as King Long’s sole and exclusive distributor, assembler and after-sales service provider of the XMQ6829Y King Long coach model in Vietnam.    

Tan Chong said King Long is familiar with the Malaysian sales and after sales regulations and market situation.

“They have gained the experience via their participation in local tender through their previous distributor in Malaysia whereby they have been able to obtain and comply with the strict tender requirements.”

Tan Chong’s share price edged up 2 sen or 1.1% to close at RM1.84 today on 12,000 shares done.

Most South-east Asia stocks fall as trade tensions escalate

SINGAPORE, June 19 — Most South-east Asian stock markets declined on today, in line with broader Asia, as US President Donald Trump threatened new tariffs on Chinese goods in an escalating trade war between the world's top two economies. Trump…

Asia Pacific advertising to grow as FIFA World Cup stimulates growth

KUCHING: Advertising and digital communications group Dentsu Aegis Network anticipated a more positive 2018 for Asia Pacific’s advertising expenditure (adex) than previously expected. Adex spend growth will rise from 4.0 per cent in 2017 to hit 4.5 per cent in 2018, it said, higher than the 4.2 per cent forecast in January 2018 and taking […]

Bbazaar Malaysia sees strong uptick since Jan

KUCHING: As an online marketplace giving consumers access to customised rate quotes on loans, credit cards and personal finance products, BankBazaar Malaysia sees strong uptake for its services since it began operating in January this year. BankBazaar International chief executive officer Vipin Kalra unveiled to The Borneo Post that it had since received nearly 500,000 […]

Mikro MSC aims to be on Main Market in five years

SHAH ALAM: ACE Market-listed Mikro MSC Bhd aims to transfer to the Main Market of Bursa Malaysia Securities Bhd in five years, when it doubles its profit to RM15-RM20 million a year driven by business growth, from RM10.89 million in the last financial year ended June 30, 2017 (FY17).

Managing director Yim Yuen Wah said although it has met the profit requirement for the Main Market three years ago, it still wants to strengthen its financial muscle before making the leap.

“At this size, if we move to the Main Market, it is still small. We want to make it bigger first, doubling our current profit to at least RM15-RM20 million a year, then maybe we’ll consider the move,” he told SunBiz in an interview.

Yim has been adamant on the company remaining on the ACE Market but is now slightly more receptive to the idea of moving to the Main Market given the better prospects and investors’ interest there.

He said the group’s financials have been steady and it will be more aggressive to drive its business going forward. The company posted a net profit of RM5.48 million for the nine months ended March 31, 2018, down a third from the RM8.25 million it posted for the nine month ended March 31, 2017. This was on revenue falling marginally by 3.35% for the nine month period ended March 31, 2018 at RM35.92 million, compared with RM37.17 million for the same period in 2017.

Mikro MSC is in the research, development (R&D) and design of analogue, digital and computer controlled electronic systems or devices for use in electrical, electronic and other industries. It also provides technical consultancy and maintenance services.

Currently, Mikro MSC produces RM50-RM60 million worth of products a year. Some of its products include protective relays, digital power metres and power factor regulators.

It has estimated a capital expenditure of RM4-RM5 million in FY19 for its new factory and equipment. The new factory in Kota Kemuning is expected to be completed by year-end and will commence operations next year, which will provide the company more room for expansion with the increased demand expected from overseas.

Yim explained that its overseas market share in control products is still small, at about 20-30% in Vietnam and less than 1% in Indonesia and Thailand, which means that there is more room for growth, compared with about 50% in Malaysia.

While Malaysia currently contributes about 55% of its revenue, and the remaining 45% from overseas, Yim hopes that in FY19, this ratio will be reversed.

Yim noted that the company’s FY18 revenue is unlikely to be better than FY17’s revenue of RM50.4 million, because of the expiry of its pioneer status incentive and the slowdown in the Malaysian market this year.

He added however that Mikro MSC’s R&D is constant, especially those in redesigning its products to mitigate the material price increase and increase its profit margin.