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Tag: Malaysia

  • Sungei Wang Plaza Will Be Getting a Major Facelift

    Sungei Wang Plaza Will Be Getting a Major Facelift

    Sungei Wang Plaza, one of Kuala Lumpur’s older malls, is getting a facelift.

    The mall’s majority owner Capitaland Malaysia Mall Trust’s (CMMT) has announced plans to transform the tired shopping centre into a “glistening-gold location” by the middle of next year. Renovations will feature a 3D screen that is to be part of a 24 hour lights display.

    Complex manager Yuen May Chee said: “The 3D-patterned screen will give a brand new modern outlook to Sungei Wang Plaza and it will glisten under the sunlight. Furthermore, the screen will form certain patterns during dawn and dusk.”

    The mall will also feature a new “Jumpa” zone to include a family entertainment park, large-format specialty retail stores, fashion brands, F&B, beauty products and a supermarket.

    Previously a noted fashion locale, the mall had declined in popularity as new developments entered the Malaysian shopping centre market. The planned renovations will be the mall’s third major refurbishment since 2013, and is expected to cost CMMT MYR54.5 million (US$13.2 million).

  • KLIA retail space offered for tender

    KLIA retail space offered for tender

    Malaysia Airports has announced 14 tenders for KLIA retail space covering more than 2000sqm.

    The tenders are part of the Kuala Lumpur International Airport rennovation works in the main terminal building.

    The majority of the tenders closed in mid-September, although the deadline for submissions for a 777sqm walkthrough emporium in the level 3 arrivals area, featuring core duty free brands such as perfume and alcohol, remains open until October 11. Tenderers are asked to consider the creation of a seamless walkthrough emporium incorporating a passenger walkway of approximately 30 to 40 per cent of the common walkway.

    The closed tenders include four news, books and convenience goods outlets; two coffee outlets, and two casual dining concepts in the main terminal.

    The tenders are part of MAHB’s five-year plan to evolve KLIA into “a hub with increased connectivity and seamless transfers”.

    The new retail layout at KLIA will be divided into five new zones: the duty free zone, fashion avenue, ‘retailtainment’, sense of place, and F&B.

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  • Astro Malaysia Q2 earnings fall 93%

    Astro Malaysia Q2 earnings fall 93%

    Astro Malaysia Holdings Bhd’s net profit for the second quarter ended July 31 fell 93% to RM16.58 million from RM246.34 million a year ago due to an increase in FIFA World Cup content, merchandise sales and higher net finance costs.

    The decrease in earnings before interest, tax, depreciation and amortisation (ebitda) was mainly due to higher content costs from FIFA World Cup and merchandise sales, while higher net finance cost was mainly due to unfavourable unrealised forex movement arising from unhedged finance lease liabilities and vendor financing and increase in interest expenses from borrowings.

    Revenue for the quarter of RM1.42 billion was marginally lower by 0.2% mainly due to a decrease in subscription and advertising revenue.

    For the six months period, net profit plunged 57% to RM191.31 million from RM442.17 million mainly a year ago due to decrease in ebitda and increase in net finance costs.

    Revenue for the current period of RM2.73 billion was lower by 0.7% against corresponding period of RM2.75 billion, mainly due to a decrease in subscription and advertising revenue.

    The board of directors declared a second interim single-tier dividend of 2.5 sen per ordinary share in respect of the financial year ending Jan 31, 2019 amounting to RM130.35 million.

    Astro chairman Tun Zaki Azmi said Astro continues to be cash generative, cost disciplined and proactive in its capital management whilst navigating through a challenging market and competitive media environment.

    Astro CEO Henry Tan said it experienced increased content costs for the 2018 FIFA World Cup. In addition, financial results were affected by the reduced need to advertise during the tax holiday period from June 1 to Aug 31, 2018 and the depreciating ringgit.

    Nevertheless, it continues to have stable revenues across TV and radio with diversification from digital platforms, e-commerce, licensing income and theatrical sales.

    “Going forward, we expect the group’s second half performance to improve and we will remain focused on key business drivers. Astro is committed to improving customer experience beginning with a new interface for premium customers on TV and Astro GO allowing for a seamless viewing experience across all screens and the introduction of 4K Ultra HD offerings,” said Tan.

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  • Axiata Malaysia evaluating options on stake in M1

    Axiata Malaysia evaluating options on stake in M1

    Axiata Group Bhd, which is evaluating its options on a possible buyout offer by two of M1 Ltd’s major shareholders Keppel Corp Ltd (KCL) and Singapore Press Holdings (SPH), is hoping for accurate future value for its 28.7% interest in M1.

    News reports in Singapore cited that both companies are planning to launch a general offer for shares they do not own in M1. The deal is expected to fetch a market value of S$1.51 billion (RM4.6 billion).

    KCL and SPH hold 19.3% and 13.5% stake in M1, respectively.

    In a statement released today, Axiata said any transaction involving M1 stake should reflect its accurate future value as well as incorporate acceptable control premium based on market norms and precedent transactions of similar nature.

    Axiata said the group is currently reviewing its position in view of a possible transaction to be further announced by KCL and SPH on its M1 shares.

    “The company is already in discussion with a financial institution to act as its adviser to review various options available to Axiata with the sole objective that the company continues to vigorously protect and enhance shareholders’ value of both Axiata and M1, the latter via its board representation.”

    “The financial institution will also advise the company once KCL and SPH officially announce their proposed transaction,” it added.

    Axiata’s share price gained 19 sen or 4.2% to close at RM4.75 today with 3.02 million shares changing hands.

  • US-China trade war dims Asia’s 2019 growth outlook: ADB

    US-China trade war dims Asia’s 2019 growth outlook: ADB

    Developing Asia could grow more slowly than previously thought next year as the US-China trade war inflicts damage on the region’s export-reliant economies, the Asian Development Bank (ADB) said.

    Tightening global liquidity could also weigh on business activity by pushing up borrowing costs, while capital outflows are also a risk.

    The Manila-based institution kept its 2018 economic growth estimate for the region at 6.0% in an update of its Asian Development Outlook. But it trimmed next year’s forecast to 5.8% from 5.9%.

    “Downside risks to the outlook are intensifying,” said ADB chief economist Yasuyuki Sawada, pointing to the potential impact of US-Sino trade tensions on regional supply chains and the risk of sudden capital outflows if the Federal Reserve raises interest rates even more quickly.

    The ADB’s 5.8% growth estimate for 2019 would be the slowest for the region since 2001, when it expanded 4.9%.
    The report covers 45 countries in the Asia-Pacific.

    The ADB’s latest forecasts did not reflect fresh tariffs that the US and China imposed on each other’s goods on Monday.

    Sawada said the additional duties would not significantly change ADB’s growth forecasts, but added the “escalating” trade conflict must be closely monitored.

    China’s economy is expected to grow 6.3% in 2019, the ADB said, slower than its 6.4% forecast in July and weaker than its 6.6% growth estimate for 2018, which was unchanged from its previous projection.

    Domestic consumption in China “seems to be quite robust and supporting 6.6% growth this year”, Sawada said.

    “But admittedly we don’t know (how) the further escalation of the trade dispute may directly affect consumer sentiment,” he added.

    Beijing has set a growth target of around 6.5% this year, the same as last year, which it handily beat with an expansion of 6.9%.

    Chinese authorities have pledged they can still meet the 2018 target, and have started to roll out growth boosting measures as the trade war threatens to put further pressure on the already cooling economy.

    For Southeast Asia, moderating export growth, quickening inflation, net capital outflows and a worsening balance of payments have dimmed the outlook, with growth this year projected to slow to 5.1% from the July forecast of 5.2%.

    “Policy makers have at their disposal an array of policy tools with which to manage pockets of vulnerability and maintain stability, but they must be applied carefully,” Sawada said.

    Inflation across the region is expected to remain under control, helped by country-specific factors like moderate food price inflation in India and China and fuel subsidies in Indonesia and Malaysia, the ADB said.

    Sawada said Asian governments have “enough policy space to handle” shocks and pressure from currency depreciations.

    The ADB lowered its 2018 economic growth forecast for Vietnam to 6.9% from 7.1% projected previously, partly due to the ongoing trade friction between the US and China.

    Vietnam, one of the fastest growing economies in Asia, has an open economy that is heavily reliant on exports, while the US and China are among its biggest trade partners.

    ADB lowered its growth forecast as the ongoing trade tension between the US and China could have a spillover impact on Vietnam. However, the ADB outlook is still higher than the Vietnamese government’s target of 6.7%.

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  • Malaysia’s MAS’ 787 deal lapses, considering future widebody purchases

    Malaysia’s MAS’ 787 deal lapses, considering future widebody purchases

    Malaysia Airlines Bhd said a provisional deal to purchase eight Boeing Co 787 jets had lapsed and the airline was in talks with planemakers about the future of its widebody fleet.

    The national carrier last year signed a memorandum of understanding (MoU) with Boeing to purchase the 787 jets valued at US$2.25 billion (RM9.3 billion) at list prices during a visit to Washington by former prime minister Datuk Seri Najib Abdul Razak.

    In April, It is reported the carrier had expressed interest in buying 20 to 30 widebody jets from either Boeing or its rival Airbus SE that could expand or replace the Boeing MoU.

    The lapse of the MoU was confirmed by a Malaysia Airlines (MAS) spokesman today. A Boeing spokesman declined to comment on ongoing discussions with customers.

    Malaysia Airlines CEO Captain Izham Ismail said that the airline had issued a request for information from aircraft makers for new generation widebody jets, without specifying how many it intended to buy.

    It was open to the advice of the manufacturers on the fleet size the airline would need for further network development, he said, adding any order decision would be made in the fourth quarter at the earliest.

    The airline currently has an all-Airbus widebody fleet including A330s, A350s and A380s.

    Sources said in July that the airline was tapping banks to fund about nine Boeing 737 MAX planes in what would be the airline’s first jet financing with lenders since it was restructured more than three years ago.

    The airline last month said in a quarterly update that it was facing pressure from higher fuel prices, foreign exchange volatility and overcapacity in the domestic market, as well as a shortage of pilots, but it was putting in place strategies to return to a profit next year.

  • Pan Malaysia to form JVCO with Singapore’s Baker & Cook

    Pan Malaysia to form JVCO with Singapore’s Baker & Cook

    Investment holding company Pan Malaysia has entered into a partnership with Singaporean artisan baker and food store Baker & Cook.

    The 50-50 joint venture will serve to diversify Pan Malaysia’s business to include F&B retail outlets, trading as Baker & Cook and Plank Sourdough Pizza. Pan Malaysia’s investment is being made through its wholly owned unit Megafort.

    Under the agreement, Baker & Cook will manage day-to-day operations while Megafort handles concession and sub-franchisee agreements.

    The stock exchange filing announcing the joint venture read: “The group (Pan Malaysia) intends to diversify its business profile and income stream, and it believes that the JV is expected to contribute positively to the earnings of the group in the future.”

  • Korea’s Goobne Chicken enters Malaysian market

    Korea’s Goobne Chicken enters Malaysian market

    South Korean fast-food chain Goobne Chicken has expanded into Malaysia, opening its first outlet in My Town Shopping Center.

    The brand plans to test the market under a franchise agreement with a local partner and has chosen its first location at one of the city’s largest shopping malls, housing more than 400 retail and dining options.

    Located on the fourth floor, the 115sqm store can seat 64.

    “Our employees in overseas management, product development and marketing departments have performed a thorough market study for the Malaysian entry,” said a Goobne Chicken spokesperson.

    “We plan to win over Malaysian consumers with our locally-tailored menu and marketing campaign.”

    Goobne operates 12 outlets overseas, including in Hong Kong, Macao, Japan and Indonesia.

    The company says it will open its first Vietnam restaurant in Ho Chi Minh City in November.

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  • Malaysia’s Berjaya Land Q1 earnings up 44%

    Malaysia’s Berjaya Land Q1 earnings up 44%

    Berjaya Land Bhd’s (BLand) net profit for the first quarter ended July 31 rose 43.8% to RM16.58 million from RM11.53 million a year ago mainly due to Sports Toto Malaysia Sdn Bhd (STMSB) reported higher profit contribution from lower prize payout and operating expenses; and lower finance costs.

    Its revenue also jumped 1.2% to RM1.62 billion compared with RM1.60 billion in the previous year’s corresponding quarter, mainly due to higher new vehicle sales volume reported by HR Owen Plc; and higher revenue from the gaming business segment operated by STMSB.

    The directors expect the number forecast operation (NFO) business to be satisfactory and will continue to maintain its market share for the remaining quarters of the financial year ending April 30, 2019. The performance of the hotels and resorts business is also expected to remain satisfactory whilst the property market outlook is expected to remain lukewarm.

    “The group also expects to record a significant gain upon the successful disposal of the proposed Berjaya Vietnam International University Town One Member Ltd Liability Co (disposal) and proposed Vietnam subsidiary disposal accordingly in due course, going forward,” BLand said.

  • Ideas CEO calls for review of policies as Malaysia slips in economic freedom ranking

    Ideas CEO calls for review of policies as Malaysia slips in economic freedom ranking

    Malaysia’s fall to 79th spot from 67th in the 2018 Economic Freedom of the World Annual Report shows that space for the private sector in the country has been squeezed, businesses have been obstructed and the size of the government has increased.

    Institute for Democracy and Economic Affairs (Ideas) CEO Ali Salman said the findings based on data from 2016, the most recent year of available comparable data, measure economic freedom, that is, levels of personal choice, ability to enter markets, security of privately owned property, rule of law, etc, by analysing the policies and institutions of 162 countries and territories.

    “This calls for a comprehensive review of economic policies under the Pakatan Harapan (PH) administration, spanning critical areas like GLC reforms, size of the civil service and business regulations – areas on which Ideas has researched and advocated vigorously,” Ali said.

    According to research in top peer-reviewed academic journals, people living in countries with high levels of economic freedom enjoy greater prosperity, more political and civil liberties, and longer lives.

    For example, countries in the top quartile (25%) of economic freedom (such as the UK, Japan and Ireland) had an average per-capita income of US$40,376 in 2016 compared with US$5,649 for the bottom quartile countries (such as Venezuela, Iran and Zimbabwe).

    And life expectancy is 79.5 years in the top quartile of countries compared to 64.4 years in the bottom quartile.

    “Where people are free to pursue their own opportunities and make their own choices, they lead more prosperous, happier and healthier lives,” said Fred McMahon, Dr Michael A. Walker Research Chair in Economic Freedom with the Fraser Institute.

    The report was released by Ideas and produced by Canada’s Fraser Institute.

    The Fraser Institute produces the annual Economic Freedom of the World report in cooperation with the Economic Freedom Network, a group of independent research and educational institutes in nearly 100 countries and territories.

    It is the world’s premier measurement of economic freedom, measuring and ranking countries in five areas: size of government, legal structure and security of property rights, access to sound money, freedom to trade internationally and regulation of credit, labour and business.

    Hong Kong and Singapore again topped the index, continuing their streak in first and second place respectively, while New Zealand, Switzerland, Ireland, the US, Georgia, Mauritius, the UK, Australia and Canada (tied for 10th spot) round out the top 10.

    The 10 lowest-ranked countries are Sudan, Guinea-Bissau, Angola, Central African Republic, Republic of Congo, Syria, Algeria, Argentina, Libya and Venezuela.

    Countries such as North Korea and Cuba could not be ranked due to lack of data.

    Other notable country rankings include Germany (20th), Japan (41st), France (57th), Russia (87th) and China (108th).

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  • DHL eCommerce has rolled out a fleet of electric motorbike in Vietnam and Malaysia

    DHL eCommerce has rolled out a fleet of electric motorbike in Vietnam and Malaysia

    DHL eCommerce has rolled out a fleet of electric motorbikes as part of Deutsche Post DHL Group’s commitment to Zero Emissions by 2050.

    DPDHL announced that it will operate 70% of its own first and last mile services with clean pick-up and delivery solutions.

    “In parallel with the continued growth in e-commerce, we expect a strong demand for deliveries and we recognize the need for sustainable delivery solutions. As part of DPDHL’s commitment to Zero Emissions by 2050, our fleet of electric vehicles will provide greener deliveries and we are committed to steadily and consciously increasing our fleet of electric vehicles in our domestic delivery network.” said Kiattichai Pitpreecha, Managing Director, Southeast Asia, DHL eCommerce.

    The first fleet of electric vehicles are already in use and the plan is to increase the fleet gradually by sunsetting older vehicles and prioritizing ‘green and clean’ approaches. Delivery hubs in Puchong and Cheras in Malaysia and Ho Chi Minh and Hanoi in Vietnam will be retrofitted with electric charging points with fast charging capabilities.

    DHL eCommerce provides nationwide domestic delivery with fully-owned operations in Malaysia and Vietnam to enable e-commerce businesses to deliver to their consumers. The domestic delivery network also includes DHL ServicePoints for drop-off and pick-up with convenient locations to provide greater convenience for sellers and consumers while optimizing delivery for greater efficiency.

    “Consumers are becoming more environmentally conscious and are placing greater value on sustainable options when they shop. We are super pleased to be rolling out our electric fleet in Malaysia and Vietnam to support our customers — it is great for us, great for our customers and great for the country.” added Kiattichai Pitpreecha, Managing Director, Southeast Asia, DHL eCommerce

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  • Country Heights plans to issue own crypto called “Horse Currency”

    Country Heights plans to issue own crypto called “Horse Currency”

    Country Heights Holdings Bhd (CHHB) is looking to issue its own asset-backed cryptocurrency (ABC) known as “Horse Currency” through an initial coin offering (ICO).

    The group told Bursa Malaysia that it will seek the support and endorsement from the shareholders at its EGM scheduled to be held on November 8.

    Citing blockchain technology as the way forward, CHHB highlighted that the main and defining difference of the “Horse Currency” and other cryptocurrencies available in the Malaysian market is that it is backed by the group’s existing assets worth of RM2 billion.

    “When launched, the ‘Horse Currency’ will mainly be used as a utility token, a reward token and royalty program with the businesses, products and services under the company’s new business strategies such as stays at the Palace of the Golden Horses, restaurants, golf memberships, private jet trips, Car City Centre, medical treatments and checks at the Golden Horses Health Sanctuary and many others.”

    CHHB said the group is also looking at allowing the “Horse Currency” to be used as legal tender in purchasing and leasing its unique properties scheme, especially the resort properties.

    Founder and chairman Tan Sri Lee Kim Yew proposes to issue 1 billion units, of which an intial 300 million units will be made available to the public.

    CHHB said its assets will be placed in a trust held by a reputable legal firm and a prominent technology partner and other external consultants (if necessary) will be appointed to give back-end support to this exercise.

    “We seek the shareholders to approve the appointment of these external consultants. In the fast moving digital age, the company intends to ride this wave of popularity of blockchain technology and assetbacked cryptocurrencies, in finding new and creative means to raise capital for the expansion of the company.”

    “We seek the shareholders’ support especially on this ABC, which the company will match minimum RM2 worth of assets eventually for 1 ‘Horse Currency’, across all ICO phases.”

    CHHB’s share price fell 1 sen or 0.8% to close at RM1.28 on 5,000 shares done.

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  • KFC Malaysia plans expansion

    KFC Malaysia plans expansion

    KFC Malaysia is considering expansion in Bandar Sri Sendayan, Malaysia, following the launch of the township’s first outlet this month.

    Opened in collaboration with Matrix Concepts Holdings Bhd, the initial response to the launch of the globally popular brand has been encouraging.

    Datuk Seri Mohamed Azahari Kamil, MD of local franchisee QSR Brands (M) Holdings, said: “We believe the demand is high here based on the increasing number of population in the township.”

    The outlet and drive-thru in Bandar Sri Sendayan is the brand’s 700th outlet nationwide and the 21st out of 23 targeted for the region this year. The 24-hour venue can accommodate 170 customers at one time.

    QSR brands is considering four further outlets for Bandar Sri Sendayan, the population of which is expected to reach 120,000 people in the foreseeable future.

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  • Automotive sales in September to be lower than in August: Research

    Automotive sales in September to be lower than in August: Research

    Kenanga Research expects sales volume for the automotive sector in September to be lower than the August 2018 level with the end of the tax holiday, despite certain makes seeing reduction in prices under the sales and service tax (SST) regime.

    “With the new SST gazetted on September 1, 2018, vehicles are charged 10% sales tax. Nevertheless, from the recent announcement by certain car makers, the prices for the locally-assembled and completely-knocked-down (CKD) units have dropped by 1% to 3% (compared with 6%-rated goos and services tax), whereas the prices for the completely-built-up (CBU) units have increased by 1% to 3%,” it said in a research note last Friday.

    Kenanga Research believes the unexpected price decrease in locally-assembled and CKD units was attributed to the better compliance of Industrial Linkage Programme regulation, which provides incentives and duty exemption to the original equipment manufacturers that use local components under the National Automotive Policy 2014.

    The research house is maintaining a “neutral” rating on the automotive sector, with Tan Chong Motor Holdings Bhd being the top pick for its turnaround in earnings after two consecutive years of losses with focus on high-margin vehicles, and expected expansion of its Indochina operations for larger market share volume.

    “Our other top pick for the sector is MBM Resources Bhd, which is trading at an undemanding 6.3 times FY18 PER (price-to-earnings ratio) compared with the five-year forward average of 11 times.”

    According to the Malaysian Automotive Association, Malaysia’s vehicle sales increased 27% year-on-year to 65,551 units in August, ending the historic three-month zero-rated tax holiday.

    However, on a month-on-month basis, car sales dropped 4% due to Perodua’s supply disruption and run-out of popular passenger vehicle models during the first two months of the tax holiday.

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  • US-China trade war boon for Malaysian exporters

    US-China trade war boon for Malaysian exporters

    As US is imposing new tariffs on US$200 billion (RM828 billion) worth of Chinese goods, local exporters are expected to see some increase in orders from the affected players in the two big economies over the next few months.

    It is understood that the US tariffs will take effect on almost 6,000 goods from Sept 24, starting at 10% and increasing to 25% from the start of 2019. Items taxed include everyday items such as suitcases, handbags, toilet paper and wool; and food items from frozen cuts of meat, to almost all types of fish, soybeans, various types of fruit and cereal and rice.

    Sunway Business School Economics Professor Dr Yeah Kim Leng said that he believes the affected firms in both respected countries will be looking at sourcing for other countries and relocate part of their production plants to other countries including Malaysia.

    “Of course they will be exploring and we (Malaysia) already seeing some inquiries. Based on their feedbacks, they are seeking on how they can divert some of their orders to Malaysian companies.

    “Now that the lists of goods are much more wider, they (local firms) are likely to see greater inquiries and look into securing some of the production contracts,” Yeah said, as affected companies are looking to reduce their costs due to the additional tariffs.

    He opined that while the 10% tax is less damaging, the 25% tax will add to the cost pressures for both consumers and businesses in the respective industries.

    Yeah however believes that the slowdown in global growth may deter the affected players from expanding their capacities or relocating their plants to other countries, and instead have them look at existing companies to supply their orders for those affected goods.

    “In the short term, Malaysia may also not be able to capitalise on that given our full capacity constraints.

    “There might be a capacity constraint for Malaysian companies to ramp up production but those with spare capacities will stand to benefit to complete some of the orders,” he added.

    Meanwhile, FXTM global head of currency strategy & market research Jameel Ahmad said that the US’ new tariffs has encouraged further risk aversion across the markets as expected.

    Jameel opined that this move will make investors more sensitive to the ongoing uncertain external environment and expects those currencies belong to markets with weaker external positions to be hit hardest in the aftermath of this decision.

    “The US dollar has once again strengthened on increased trade tensions, while a wide basket of different emerging market currencies is once again on the back foot due to a lack of risk appetite for emerging market assets.This probably means another blow for the likes of the Indian rupee, Indonesian rupiah and South African rand.

    “The outcome is negative for the Chinese yuan, however it has been priced in throughout recent weeks and the reaction in the yuan has not been as negative as would have been first feared. The yuan is down just over 0.10% at time of writing.
    “The ringgit and rupiah are example of two Asian currencies that are trading more negatively than the Yuan, in reaction to this news,” Jameel added.

    The local note was down to 4.146 to the dollar. The FBM KLCI was down about 10 points to 1,792.94 points.

    On another matter, Yeah said the escalating trade war will likely give greater impetus for both China and US to pursue on their respective regional trade agreements and divert them from each other economies.

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