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Tag: Malaysia

  • AirAsia carried 16% more passengers in 2018

    AirAsia carried 16% more passengers in 2018

    AirAsia Group Bhd Consolidated AOCs carried a total of 12.1 million passengers in the fourth quarter ended Dec 31, 2018 (4Q18), reflecting a 16% growth from 10.4 million passengers carried a year ago. During the quarter, load factor was 4 percentage points lower at 84% from 88% a year ago, due to significant increase in capacity, which rose 21% to 14.3 million from 11.9 million a year ago.

    The group said in a statement that its available seat kilometres (ASK) grew 14% year-on-year, in line with the group’s strategy to grow its market share.

    For the full financial year ended Dec 31, 2018 (FY18), the group carried a total of 44.4 million, an increase of 14% from 39.0 million passengers carried a year ago.

    Capacity grew 18% to 52.5 million from 44.4 million a year ago while load factor fell 3 percentage points to 85% from 88% a year ago. ASK for the period grew 14%.

    The consolidated AOCs refers to AOCs whose financial and operational results are consolidated for financial reporting purposes, namely the Malaysian, Indonesian and Philippines AOCs.

    In 4Q18, Malaysia AirAsia carried a total of 8.5 million passengers, reflecting a 9% increase from 7.7 million passengers carried a year ago. Load factor fell 5 percentage points to 84% from 89% a year ago.

    The Malaysian operations saw a 16% increase in capacity to 10.2 million from 8.8 million a year ago while ASK rose 9% year-on-year.

    For FY18, Malaysia AirAsia carried 32.3 million passengers, 11% higher than 29.1 million passengers carried a year ago while load factor fell 4 percentage points to 85% from 89% a year ago.

    Capacity grew 16% to 38.0 million from 32.8 million a year ago while ASK rose 12% year-on-year.

    Overall, the group carried a total of 74.8 million passengers in FY18, which is an increase of 14% year-on-year. This includes all operations in Malaysia, Indonesia, Philippines, Thailand, India and Japan.

    The group also expanded its capacity during the year, with ASK up by 15% and load factor of 85%. The group’s total fleet size closed at 224.

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  • Sime Darby Plantation, Salcra ink MoU to uplift Sarawak’s palm oil industry

    Sime Darby Plantation, Salcra ink MoU to uplift Sarawak’s palm oil industry

    Sime Darby Plantation Bhd (SDP) and Sarawak Land Consolidation and Rehabilitation Authority (Salcra) have signed a memorandum of understanding (MoU) to form a collaborative framework to establish, strengthen and encourage synergistic commercial cooperation along the palm oil value chain. The collaboration aims to uplift Sarawak’s palm oil industry standards in terms of operational efficiency and productivity through best agronomic practices, SDP said in a statement yesterday.

    It is also intended to inculcate and enhance sustainability awareness for higher operational performance and bottom-line achievement.

    Under the MOU, both parties intend to combine their resources and expertise to jointly collaborate, evaluate and research on matters relating to the palm value chain and related agronomic inputs.

    These include in the areas of agricultural materials such as oil palm seedlings and saplings, management, consultancy services and training, consultancy services, as well as laboratory analytical services.

    The MoU also includes any other activities that are mutually beneficial to the parties such as logistics and activities connected to rubber plantation and other agricultural businesses.

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  • Maybank Malaysia vaults into list of world’s top 500 brands

    Maybank Malaysia vaults into list of world’s top 500 brands

    Maybank has made it into the world’s top 500 brands for the first time, after it was named in Brand Finance’s Global 500 Brands – the only Malaysian bank and one of two Malaysian brands to be included in this prestigious listing. Maybank achieved a brand valuation of US$4.2 billion (RM17.3 billion), a 32% increase from last year’s valuation of US$3.16 billion according to its statement.

    Maybank said the group also maintained its position as the top bank brand in Malaysia for the fifth year running, improving its previous rating of “AAA-” to “AAA”.

    At the same time, it registered an increase in the Brand Strength Index (BSI) to 86/100 this year from 82/100 previously. BSI is a key driver that contributes to brand valuation and determines the strength of a brand.

    Maybank was among only eight Asean brands listed in the global ranking. It was placed 494 in the world’s top 500 most valuable brands list.

    Maybank group president and CEO Datuk Abdul Farid Alias said the recognition was a reflection of Maybank’s sustained efforts in building closer relationships with its stakeholders and focusing on delivering consistent value through all its products and services.

    “It is definitely a great honour for Maybank to be listed among the top brands in the world today. We believe it also demonstrates how a homegrown brand from Malaysia is defining new standards and raising the bar in the global stage with support from all its stakeholders.”

    Farid added that Maybank’s strategy in developing a meaningful brand experience was centred on its mission to humanise financial services, as well as its commitment to being at the heart of communities where it operates.

    “While we will continue to strengthen our brand positioning across all our engagement channels, we are also focusing on providing next-generation customer experience given that technology is rapidly influencing our lifestyles and the way people do banking today,” he said.

    Brand Finance in its annual survey, values the brands of thousands of the world’s biggest companies. The results of this analysis are then ranked with the world’s 500 most valuable brands featured in the Brand Finance Global 500 report.

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  • Senai Airport Malaysia records 13% passenger growth in 2018

    Senai Airport Malaysia records 13% passenger growth in 2018

    Senai International Airport handled 3.52 million passengers last year, a 13% increase from the number of passengers recorded in 2017. Md Derick Basir, CEO of Senai Airport Terminal Services Sdn Bhd (SATSSB), the airport operator, said growth was mainly driven by domestic passengers with an increase of 234,650 passengers while international passenger traffic rose by 37% to 600,000 in 2018.

    “Growth was fuelled by the southern region’s rigorous economic activities, escalating demand for business and corporate travel, as well as the leisure sector,” he said in a statement.

    Commercial aircraft movement grew 8% with a total of 32,574 landings and takeoffs compared with 2017.

    “The rise in total passenger traffic in 2018 was mainly attributed by the introduction of new routes including Seoul by Jin Air, Sanya and Haikou by Malindo Air, as well as Alor Star and Ipoh by AirAsia.

    “In addition, the increase in flight frequencies to existing sectors such as Kuala Lumpur, Penang, Kota Kinabalu, Langkawi and Bangkok had also contributed to the growth,” he said.

    Md Derick added that SATSSB had also collaborated with industry players including tourism bodies and airlines to promote Johor as a destination, ultimately to encourage the demand for more air connectivity.

    “For 2019, Senai International Airport aims to handle 3.76 million passengers,” he added.

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  • Korean firm to set up halal ramen plant in Malaysia

    Korean firm to set up halal ramen plant in Malaysia

    FGV Holdings Bhd is looking to partner with South Korea’s Samyang Foods Co Ltd for the establishment of Samyang Halal’s production facilities in Malaysia. FGV told Bursa Malaysia that it had signed a memorandum of understanding (MoU) with Samyang. The production facilities will focus on serving halal ramen and instant noodle products for Malaysia and global markets.

    FGV’s newly appointed CEO Datuk Haris Fadzilah Hassan said the collaboration is part of he group’s strategic direction to expand its downstream business by diversifying the product offerings and penetrating into new markets.

    Its logistics and support businesses sector is also set to benefit from this partnership by providing a total logistics supply chain solution.

    “With this MoU, FGV hopes to explore the opportunity for both parties to establish a halal ramen and instant noodle manufacturing plant in Malaysia. The global halal food market is one of the fastest growing segments in the food industry and is expected to reach more than US$740 billion in value by 2025,” Haris said.

    FGV said the collaboration will also give FGV access to Samyang’s supply chain, which includes cooking oil, vegetable fats and sugar for its existing ramen plant in Wonju, South Korea.

    Samyang is listed on the Korean Stock Exchange with a market capitalisation of KRW459.514 billion (RM1.68 billion). It is in the business of manufacturing and selling various food products such as ramen, snacks, dairy products, sauces, and frozen dumplings.

    FGV noted that its downstream entity Delima Oil Products Sdn Bhd (DOP) can leverage on Samyang’s strong R&D and global distribution networks to improve quality and expand the reach of its “Saji” products regionally and globally.

    “In addition, DOP will benefit from Samyang’s ver 50 years’ experience in the ramen and instant noodle industry to strengthen its own products and brand positioning.”

  • OCBC: Malaysia could restore fiscal health in 3 years

    OCBC: Malaysia could restore fiscal health in 3 years

    Malaysia has a reasonable chance of restoring its fiscal health within three years if the economic growth remains stable with new revenue streams and stable expenditure, according to OCBC Bank chief economist Selena Ling. “But if you have a case where the global environment is very serious and dire and there is no deal between US and China… then it becomes a very hostile environment for any developing country to operate in,” she said last Friday.

    She noted that if the global economy remains at a status quo for the rest of the year and crude oil prices stabilise, Malaysia may miss the fiscal deficit target by 0.1-0.2 percentage points.

    Having said that, the potential slippage is not expected to be “very severe” that will derail Malaysia off its targets.

    “Rating agencies also want to see a multi-year plan. If it’s just a slippage of one year that you can attribute to a lot of external factors, probably the rating agencies will give you a pass. It’s really not a one year story they’re looking for,” she explained.

    The government has projected fiscal deficit to ease to 3.4% of gross domestic product (GDP) this year from 3.7% in 2018. It looks to further narrow the fiscal deficit to 3% and 2.8% in 2020 and 2021, respectively.

    Ling projects Malaysia to record a full-year GDP growth of 4.4% for 2019 amid slowing global growth and the ongoing external headwinds.

    Malaysia’s ringgit, on the other hand, could appreciate to RM4 against the greenback in the event of a weak dollar.

    She said the strengthening of the ringgit will have less to do with domestic factors as the slowdown in economic growth is seen as benign, coupled with an unlikely change in the Overnight Policy Rate (OPR).

    Another reason that could be supportive of strong ringgit is the risk of the US economy falling into a recession next year.

    Meanwhile, Ling expects oil prices to be subdued and could result in a shortfall in government coffers if they remain at the current level of around US$50 per barrel until year-end.

    Although Budget 2019 is based on the oil price assumption of US$70 per barrel, she does not see a need to recalibrate the budget at this juncture, but it will exert pressure on seeking new revenue sources.

    “As far as the budget revision is concerned, I suspect (it will) not be so soon because the US$70 is a medium-term price target and oil prices have been volatile in the last six months.

    “But if you look at the average price, it is relatively stable and maybe for the next budget in October 2019, they (the government) may revise the oil price assumption,” she added.

  • Qatar possible partner for Malaysia’s third national car project

    Qatar possible partner for Malaysia’s third national car project

    Malaysia is looking at the possibility of having Qatar on board the third national car project. In a statement, the International Trade and Industry Ministry (Miti) said Minister Datuk Darell Leiking had a bilateral meeting with Qatar’s Minister of Commerce and Industry Ali Ahmed Al Kuwari and Qatar Investment Authority CEO Mansoor Ebrahim al-Mahmoud on Jan 22.

    “The main objective of the meeting is to explore the possibility of having Qatar on board Malaysia’s third national car project. This is to leverage on Qatar’s investments in Volkswagen and Audi. Qatar positively welcomed the idea and reiterated on the need to deliberate the details of the joint manufacturing project,“ Miti said.

    Darell highlighted that Qatar could look at the possibility of collaborating in Malaysia in other parts of the automotive sector such as investment in automotive components or producing electric cars. He also informed Qatar on the recent launching of the latest Proton model X70 and Perodua Aruz.

    “Qatar took the opportunity to update Malaysia on its current investment reforms including the relaxation of foreign investment ownership, of which 100% foreign ownership is now allowed in Qatar in various sectors.”

    Qatar expressed hope that more Malaysian companies to invest in Qatar. Qatar can be seen as a gateway to the Middle East market and Malaysia as a springboard to the Asean market. To this effect, the Second Malaysia-Qatar Joint Trade Committee Meeting is scheduled to be held on March 28-29 2019.

    “Noting the good relationship between Malaysia and Qatar, the minister also expressed the possibility of proposing Qatar to be a dialogue partner in Asean,“ Miti said.

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  • CIMB get permission for banking venture with Philippines

    CIMB get permission for banking venture with Philippines

    CIMB Group Holdings Bhd has obtained the green light to establish its investment banking business in the Philippines. In a filing with Bursa Malaysia, the group said its wholly owned subsidiary CIMB Group Sdn Bhd had on Jan 23 received the relevant approvals from the Securities and Exchange Commission of the Philippines, including the Certificate of Incorporation and Certificate of Registration for an investment house licence.

    The investment banking business in the Philippines will be operated via a 60% shareholding in CIMB Bancom Capital Corporation with the remaining 40% stake to be held by local partners Bancom II Consultants, Inc and PLP Group Holdings, Inc.

    The three parties have entered into a joint venture agreement following the receipt of the approvals.

    CIMB shares went down 1 sen or 0.2% to close at RM5.65 today on 13.4 million shares done.

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  • Tech sector forecast to see slower growth ahead

    Tech sector forecast to see slower growth ahead

    Hong Leong Investment Bank (HLIB) Research anticipates slower growth in the technology sector due to downside risks in the macro environment coupled with waning data trends. However, it expects automotive and Internet of Things (IoT) to take the forefront while smartphone takes a backseat. The research house said in a note that for the first 11 months of 2018 (11M18) global semiconductor sales were outstanding after growing 16%, thanks to the explosive growth of memory followed by discrete and optoelectronics.

    As for 2019, consensus is projecting 3% growth for that segment.

    “However, we see further downside to this projection considering the US-China trade conflict, stagnant smartphone demand, industry-wide inventory adjustment and weaker memory prices,” HLIB said.

    The automotive sector is expected to be the major growth driver for global technology industry supported by its development towards full autonomy. The equipment industry remained solid with billings increasing 11% in 11M18, supported by heavy investments in all regions except Taiwan.

    “However, year-on-year growth has been on a snail’s pace for the past five months, translating into a significant deceleration from past 20 consecutive months’ double-digit growth rates,” the research house explained.

    According to SEMI, this reflected the near-term weakening demand for personal computers, mobile phones and servers as well as pulled back investments in response to recent softening of memory prices.

    “This is in line with its expectation of expansion in capital spending not outpacing sales growth on the long run and potentially lead to industry-wide overcapacity,” said HLIB.

    The research house also highlighted that local semiconductor players may experience strong demand to support the disrupted global supply chain should the procurement levy and technology transfer restriction from US take effect.

    Note that China sources substantial fabrication equipment from US players for its expansionary semiconductor industry towards the “Make in China 2025” vision. Vice versa, US fabless semiconductor players outsource their product fabrication and some are produced in China.

    With strong greenback, HLIB expects tech firms to be marginally boosted thanks to their US dollar-denominated sales while partly offset by the US dollar cost items.

    It estimates the ringgit to be weaker in FY19 with at full-year average of RM4.20 against US dollar.

    Nonetheless, pricier commodities, compounded by stronger US dollar projection, will exert pressures on margins for traditional packaging.

    Maintaining a “neutral” call on the sector, HLIB displayed a cautious stance in the absence of near-term catalyst as it expects global sales and capital spending to grow moderately.

    As for stock picks, it gave Frontken a “buy” call at a target price of RM1.05 on the back of bullish global semiconductor market outlook, robust fab investment, leading edge technology, oil and gas recovery and strong balance sheet.

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  • Sunway, Hoi Hup Realty wins land tender in Singapore

    Sunway, Hoi Hup Realty wins land tender in Singapore

    The Housing and Development Board of Singapore has awarded a parcel of land measuring 2.5ha to Sunway Bhd’s Singaporean unit Sunway Developments Pte Ltd (SDPL) and Hoi Hup Realty Pte Ltd after a successful bid.
    The land is slated for the SG$434.45 million (RM1.32 billion) Executive Condominium Housing Development. The group told the stock exchange that the land located at Tampines Avenue 10 (Lot 7545K MK 28), Tampines, Singapore was awarded to Hoi Hup and SDPL following a successful joint tender submitted by the parties.

    “The land will be acquired by a proposed new joint venture company to be incorporated, in which Hoi Hup or its nominee company(ies) and SDPL will have equity interest in the proportion of 65:35,” it noted.

    The 99-year lease term Executive Condominium Housing Development project is scheduled to go on for 60 months, commencing Jan 22.

    It is expected to contribute positively to the earnings of Sunway Group in the financial year 2023.

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  • AirAsia, AirAsia X in RM400m counterclaim against MAHB

    AirAsia, AirAsia X in RM400m counterclaim against MAHB

    AirAsia Group Bhd and its affiliate AirAsia X Bhd are seeking over RM400 million in counterclaims against Malaysia Airport Holdings Bhd (MAHB) in relation to the suit filed against them over the passenger service charges (PSC) collection. AirAsia and AirAsia X told Bursa Malaysia that they had filed a statement of defence against Malaysia Airports (Sepang) Sdn Bhd (MASSB), a wholly-owned subsidiary of Malaysia Airport Holdings Bhd (MAHB).

    “In the statement of defence, AirAsia Bhd (AAB) contended, amongst others, that the claim by MASSB is misconceived, invalid and/or premature as MASSB has not complied with and/or availed itself of the statutory provisions for dispute resolution within the Malaysian Aviation Commission Act 2015 (Mavcom Act). Accordingly, AAB has filed an application to strike out the suit on the above grounds,“ said AirAsia.

    “Further, AAB together with its affiliate AirAsia X Bhd (AAX), will be availing themselves of the statutory provisions for dispute resolution within the Mavcom Act to seek more than RM400 million in counter-claims against MASSB and/or MAHB for losses and damages experienced by AAB and AAX due to operational disruptions at klia2,” it added.

    Last month, AirAsia was being sued for refusing to collect the additional RM23 PSC per passenger at klia2.

    AAB was served with an unsealed copy of a writ of summons in the sum of RM9.4 million by MASSB pertaining to PSC that AAB has not collected and refuses to collect from traveling passengers. Meanwhile, AAX was served with an unsealed copy of a writ of summons in the sum of RM26.7 million for alleged PSC arrears.

    AirAsia yesterday closed up 1.33% to RM3.05 with 5.17 million shares done; while AAX closed 1.72% lower at 28.5 sen with 12.17 million shares traded. MAHB was up 0.25% at RM8.12 with 3.33 million shares changing hands.

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  • RAM Malaysia lowers inflation forecast for 2019 to 2%

    RAM Malaysia lowers inflation forecast for 2019 to 2%

    RAM Ratings, which expects inflation to inch up to 0.3% in December 2018 from 0.2% in the previous month, has revised its full-year headline inflation forecast for 2019 to 2.0% from 2.7%. The rating agency said in a statement that inflation in December 2018 is estimated to rise to 0.3% from 0.2% in the preceding month due to dissipation of deflationary pressures from the transport fuel component.

    The price of RON95 petrol fell 3.3% year on year in December, after a 4.5% drop in November.

    On that note, overall inflation is envisaged to come in at 1.0% in 2018.

    As for 2019, RAM Ratings has revised its headline inflation projection downwards to 2.0%, mainly due to changing expectations on global oil prices, which are increasingly pointing to a lower average range of US$60-US$65 (RM248-RM269) per barrel for 2019.

    RAM head of research Kristina Fong said the rating firm’s sensitivity analysis indicates that for every US$5/barrel move in the price of Brent crude, headline inflation potentially changes 0.3 percentage point.

    “The move back to the weekly Automated Pricing Mechanism for pump prices – effective January 2019 – is not expected to exert any significant downward pressure on inflation given the short period it will be in place ahead of the anticipated targeted fuel subsidy mechanism to be implemented in second quarter 2019.

    “Moreover, global oil prices are expected to trend a little higher compared to the start of the year, An escalation in oil (petrol) prices beyond RM2.20/litre will trigger the use of subsidies to maintain this ceiling. This will also contain inflationary pressure,” she added.

    The Department of Statistics released the December inflation data yesterday.

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  • Malaysia may feel bite of China economic slowdown

    Malaysia may feel bite of China economic slowdown

    The slowdown in China may impact Malaysia more given the strong trade linkage with China, according to PublicInvest Research. “China is not only our biggest trade partner in 2018 (YTD 2018: 16.7%) but also our largest export market (YTD 2018: 13.9%) and our second biggest import source after Singapore (YTD 2018:19.8%). This could bring negative ramifications not only to Malaysia but also to other peers like Singapore, Thailand, Indonesia and the Philippines and hence, the growth prospects of Asean-5,“ the research house said in a report.

    In fact, it said, the simmering trade stress has caused noticeable dent to export momentum in November with Singapore, Thailand and Indonesia suffering a contraction in exports. This could be repeated in December.

    PublicInvest Research said unfavourable outcomes to the trade negotiation may see longer times taken for growth to normalise due to demand deficiencies which are always more damaging than supply shocks.

    “Other than this, the pullback in global financial and commodity markets arising from pockets of stress mentioned above can hurt Malaysia as well due to contagion effects. This can bring down the ringgit in addition to putting a cap in the prices of our key commodity exports like crude oil, crude palm oil and rubber,“ it explained.

    The slowdown in China is particularly alarming and shows signs of worsening following the release of its 2018 growth of 6.6% (2017: 6.8%), the slowest since 1990.

    “We don’t see negative surprises in this as it is within the People’s Bank of China’s estimates,“ it said, adding that the International Monetary Fund (IMF) expects China’s slowdown to continue, forecast to ease to 6.2% in 2019 amid firmed commitment to reforms and rebalancing on the back of the trade collision with the US.

    PublicInvest Research said the slew of IMF downgrades could result in negative ramifications not only to global financial markets but also commodities. Risk aversion could heighten, pushing investors to take less risks which may be precursor to elevating demand for safe haven assets particularly bonds.

    “Among all the growth risks mentioned by IMF, we are particularly concerned over China given its extensive trade network and huge economy.”

    PublicInvest Research said unfavourable trade negotiations could be harmful not only to China’s outlook but also emerging economies, particularly Asean, given their strong interdependence on trade. This could lead to inexorable downturns to Asean economies, particularly those that depend on China’s exports (intermediate goods).

    “Over and above all, we think that China still has sufficient tools to support growth should trade negotiations turn unfavourable although the impact could still be there.”

  • Malaysia’s GDP growth likely to return to 4.6-5.0% range in 2020: UBS economist

    Malaysia’s GDP growth likely to return to 4.6-5.0% range in 2020: UBS economist

    Malaysia’s real gross domestic product (GDP) growth is likely to return to the 4.6-5% trend range in 2020 as economic drag diminishes, said UBS Investment Bank economist Edward Teather. He said the impact of the trade war and the government’s institutional reforms should go from drags on growth to net positive contributions to the country’s economy this year.

    “Pakatan Harapan’s institutional reforms and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) membership would improve prospects in 2020.

    “Malaysia is also a key potential beneficiary of the CPTPP trade deal,” he said during a conference call on global and Asian 2019 outlook.

    However, he said, Malaysia might lose some potential gains if it decided to pull out of the trade deal and this would impact GDP growth next year.

    “Without CPTPP, there will be less potential to be tapped; but it’s possible without the deal, the government would consider liberalisation, introducing more transparency and level playing field between private companies,” he said.

    Teather said trade war, slower China growth and institutional reform and fiscal consolidation policy initiatives would continue to drive the weakness in growth in the near term.

    Hence, he said, UBS expected Malaysia’s growth to be at 4% this year from the estimated 4.7% in 2018.

    “2019 will likely be a case of pain before gain. First, we expect Malaysia to be impacted by trade war-related disruption, but also to be well placed to subsequently take market share from China in the United States,” he said.

    Meanwhile, Teather expects the ringgit to fall to the RM4.40 level to the US dollar this year before improving in 2020. Malaysia being an open economy, the ringgit was pressured by the lower trade growth, he said.

    “Exports, in dollar terms, rose 10% in 2018 and would only grow 1% in 2019. So it’s quite a strong slowdown and that is partly because of lower oil prices and less demand for products and components,” he added.

    On the Overnight Policy Rate (OPR), he said Bank Negara Malaysia (BNM) may leave interest rates on hold throughout 2019.

    “Soft growth should allow BNM to look at acceleration in inflation driven by the change from the goods and services tax to the sales and service tax in 2018 and fuel subsidy reforms.

    “In early 2020, better growth momentum, confidence in CPTPP and trade war-linked supply-chain adjustments in Malaysia’s favour could lead to a 25-basis point rate hike by BNM,” he said.

    He forecast the US Federal Reserve would raise its benchmark interest rate once this year, in September, and that the Brent crude to hover at US$65 per barrel this year and US$73 per barrel in 2020.

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  • CIMB divests insurance broking business for RM59.6m

    CIMB divests insurance broking business for RM59.6m

    CIMB Group Holdings Bhd’s wholly-owned indirect subsidiary CIG Bhd yesterday entered into a share purchase agreement with HBG Asia Holdings Ltd and HBG Malaysia Sdn Bhd (Howden) to divest its remaining 51% stake in CIMB Howden Insurance Brokers Sdn Bhd (CHIB) to Howden for RM59.6 million.

    The group said approval from Bank Negara Malaysia in relation to the proposed divestment was received by Howden on Nov 27, 2018.

    “CHIB currently operates an insurance broking business and the proposed divestment is in line with CIMB’s aspirations to further streamline and focus on its core banking businesses. As part of the proposed divestment, CHIB will cease to be an associate of CIG,“ CIMB said.