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Tag: Malaysia

  • CAE to train 400 pilots for AirAsia

    CAE to train 400 pilots for AirAsia

    Group Bhd wants CAE to train about 400 cadet pilots to support its growth in the various markets it operates over the next five years.

    The first batch of cadet pilots will begin training in the second half of the year for a 18-month competency-based Multi-Crew Pilot Licence (MPL) programme.

    The airline signed a new agreement with CAE for the training of 400 cadet pilots in Singapore on Tuesday.

    The training will be held at CAE Kuala Lumpur, CAE Melbourne and CAE Phoenix. After the 18-month training programme, the next generation of pilots will become AirAsia’s first officers.

    Apart from Malaysia, AirAsia has operations in Thailand, Indonesia, the Philippines and Japan. It is also looking at setting up operations in Vietnam and China in the medium to long term.

    The entire training cycle involves the rigorous cadet selection process, integrated English language training, a blended training methodology with emphasis on crew resource management and threat/error management.

    CAE said the training cycle followed the airline’s standard operating procedures.

    It said the comprehensive programme also followed the highest industry pilot training standards in the world.

    “CAE has been a tremendous partner since we first started the MPL programme together eight years ago, not only launching an innovative programme that sparked conversations in the industry but continuously refining and adapting the training programme,” AirAsia group chief operations officer Adrian Jenkins said.

    CAE group president, civil aviation training solutions, Nick Leontidis adds that this “new agreement highlights our dedication to effectively train and prepare this next cadre of cadets as they begin their careers as professional pilots.”

    CAE introduced the MPL training programme with AirAsia as a launch customer in 2010, complementing the offering in training paths and programmes for cadets.

    CAE said that since 2010, about 85 AirAsia cadets have been trained through the MPL programme. Since 2017, the first nine AirAsia-sponsored CAE MPL cadets have been flying as captains.

     

  • Maybank Q2 earnings up 18%, declares 25 sen dividend

    Maybank Q2 earnings up 18%, declares 25 sen dividend

    Malayan Banking Bhd (Maybank), which saw net profit jump 18.1% to RM1.96 billion for the second quarter ended June 30, 2018, expects its performance for the second half of the year (2H18) to be driven by its consumer, wealth and insurance businesses, said group CFO Datuk Amirul Feisal Wan Zahir.

    He expects the consumer business to drive the loan growth for Malaysia, cautioning that the corporate side may slow down but pointed out that this remains to be seen.

    “Loan growth from the consumer market was stronger than corporate in 1H18. We don’t think this will change in 2H18. We typically perform better than the industry for Malaysia (in loan growth),” he said after announcing its 1H18 financial results.

    Q2 net profit was up on higher net operating income and lower impairments, while revenue jumped 5.4% to RM11.51 billion from RM10.92 billion.

    The group has proposed to declare an interim dividend of 25 sen for the quarter under review.

    For the six-month period, Maybank’s net profit increased 13.9% to RM3.83 billion from RM3.36 billion a year ago on the back of higher operating income, lower impairments as well as reduced overheads as a result of better cost management. Revenue went up 3.7% to RM23.02 billion from RM22.20 billion.

    Maybank saw a loan growth of 4.6% in 1H18, where Singapore operations expanded 8.9%, followed by Indonesia at 6.6% and Malaysia 6.1%. The Malaysia loan growth of 6.1% was above the industry loan growth of 5% for the country. Singapore and Indonesia fared below its industry loan growth of 9.9% and 10.7% respectively.

    It expects its net interest margin, which stood at 2.33% in June 2018, to maintain at last year’s 2.36% or slightly less.

    Amirul said the implementation of the SST, which will bring a revenue of RM20 billion to RM25 billion to the government compared with RM42 billion under the GST, will result in more disposable income among the people, providing more expansionary spending on the consumer side.

    “The (SST) impact on the bank will be neutral,” he said.

    Meanwhile, he said Maybank’s exposure to the oil and gas sector is at 3.86% of its total loan assets and that the level of provisions has reduced having peaked last year.

    “Going forward we will be vigilant looking at each markets and we will be more cautious on Indonesia given the volatile environment.”

    Amirul also said Maybank’s loan exposure to financially-troubled Hyflux Ltd of Singapore is at the project company Tuaspring Pte Ltd level, which is fully secured and not on the group level.“We made some provisions in Q2,” he said.

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  • Runway-inspired Michael Kors store opened in Malaysia

    Runway-inspired Michael Kors store opened in Malaysia

    Michael Kors Malaysia is opening a runway-inspired store at Suria KLCC.

    The launch is part of the US fashion label’s Runway 2020 strategy intended to modernise its business, which also includes the introduction of e-commerce and wearable technologies to the label. Designer Michael Kors’ strategy was announced last year and will involve an overhaul of stores worldwide.

    Michael Kors GM Kelly Lee said the store is designed to make customers feel like they are part of a fashion show – “our shoppers will feel like they are stepping onto a runway when they walk in”.

    To achieve the effect, store mannequins are positioned in line facing the store entrance as if on a catwalk, allowing shoppers to wander amongst them as they browse.

    The store will also be the first Michael Kors in Malaysia to sell menswear.

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  • New CEO boosted 7-Eleven Malaysia profit

    New CEO boosted 7-Eleven Malaysia profit

    7-Eleven Malaysia says its net profit surged 29.4 per cent in the latest quarter as internal reorganisation began to pay off. Net sales inched up by just 0.4 per cent during the same time.

    Incoming CEO Colin Harvey – into the role just two weeks – said while the result was satisfying there is still room for improvement on key metrics.

    “I am confident that a strategy roadmap focussed on strengthening the key areas of assortment, supply chain, operational excellence, store base, and digitally enabling the organisation will bear fruit in terms of financial performance, and overall customer shopping experience,” he said.

    Revenue for the quarter reached RM557.6 million (US$135 million) on the back of new stores and improved consumer promotion strategies. Post-tax profit reached RM13.1 million, up (US$3.17 million).

    Revenue for the first half reached RM1.09 billion, 1.4 per cent against the same time last year, while post-tax profit was up 21.6 per cent to RM3.9 million.

    The company’s board expects trading conditions during the next quarter to improve, with anticipated heightened consumer sentiment. “We expect to see further improvements in the next quarter by pursuing our core strategy pillars of operations excellence, cost management and commercial innovation.”

    At the end of the second half, 7-Eleven Malaysia operated 2241 stores.

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  • 7-Eleven Malaysia Q2 net profit up 29.4%

    7-Eleven Malaysia Q2 net profit up 29.4%

    7-Eleven Malaysia Holdings Bhd reported a 29.4% rise in net profit to RM13.13 million for the second quarter ended June 30 compared with RM10.15 million in the previous corresponding period, driven by higher gross profit margin.

    Its revenue rose marginally by 0.4% to RM557.63 million from RM555.21 million, thanks to growth in new stores and better consumer promotion activity.

    Gross profit improved by 2.2% or RM4 million to RM183 million compared with the corresponding quarter in the previous year, mainly attributed to the rise in revenue and improvement in gross margin by 0.6% points.

    Most categories saw higher gross profit margins.

    “I am personally excited to have joined the business just over two weeks ago, and I am confident that a strategy roadmap focused on strengthening the key areas of assortment, supply chain, operational excellence, store base, and digitally enabling the organisation will bear fruit in terms of financial performance, and overall customer shopping experience. I look forward to the challenges ahead in ensuring that 7-Eleven Malaysia remains the customers first choice convenience store”, CEO Colin Harvey said in a statement today.

    For the first half of 2018, 7-Eleven’s net profit expanded 21.5% to RM22.07 million from RM18.16 million on the back of a 1.4% increase in revenue to RM1.09 billion from RM1.08 billion.

    The group said in a filing with the stock exchange that it foresees the trading conditions for the next quarter to improve with anticipated heightened consumer sentiment.

    “We expect to see further improvements in the next quarter by pursuing our core strategy pillars of operations excellence, cost management and commercial innovation.”

  • Aeon to shut down Index Living Mall Malaysia stores

    Aeon to shut down Index Living Mall Malaysia stores

    Aeon Co (M) Bhd’s net profit plunged 64.5% to RM9.79 million for the second quarter ended June 30 compared with RM27.55 million in the previous corresponding period, due to the recognition of impairment loss on investment in its associate company Index Living Mall Malaysia Sdn Bhd (ILMM).

    Its revenue however, rose 5.4% to RM1.06 billion from RM1.01 billion.

    Aeon said in a filing with the stock exchange that ILMM will be closing down the remaining of its furniture outlets in Malaysia by the third quarter of 2018. The outlets are located at Aeon Shah Alam and Kota Baru, IOI City Mall, Putrajaya as well as Aeon Mall Tebrau City, according to its website.

    “As such, for the second quarter result, the company has recognised the impairment loss on its investment in the associate company which amounted to RM8.01 million and also share of its year-to-date operating loss which amounted to RM13.7 million.”

    ILMM is a 49:51 joint venture company between Aeon and Index Living Mall Company Ltd which was incorporated in Thailand.

    Aeon said the outlet closures are expected to reduce its earnings per share and net assets per share by about 2 sen for the financial year ending Dec 31.

    For the first six months of the year, the group’s net profit contracted 29.8% to RM37.73 million from RM53.75 million on the back of a 4.4% rise in revenue to RM2.18 billion from RM2.09 billion.

    Looking ahead, Aeon said the sales and services tax implementation will have an impact on consumer spending and product pricing.

    “With such outlook, the board expects the performance for the current year to remain challenging.”

    For the retail business, the group said it will continue to refurbish its selected stores and employ appropriate marketing and pricing strategies.

    Meanwhile, Aeon foresees the occupancy and rental rates for the property management services to remain stable and sustainable.

    Aeon’s share price closed unchanged at RM2.10 on 590,400 shares done.

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  • CIMB Malaysia expects FY18 to be a record year

    CIMB Malaysia expects FY18 to be a record year

    CIMB Group Holdings Bhd, which posted a record net profit of RM3.29 billion for the first six months ended June 30, 2018 (1H18), expects a record net profit to ensue for the full year on a stronger performance in 2H18 partly driven by improvement in loan growth.

    Group CEO Tengku Datuk Seri Zafrul Aziz said CIMB is on track to meet its loan growth target of 6% for this year, compared with a weaker-than-expected 0.2% last year hit by its Indonesian business.

    It saw a loan growth of 3.4% for 1H18, dragged down by the weakening of rupiah in Indonesia. Excluding foreign exchange fluctuations, its 1H18 loan growth would have been 7%.

    “We’re still keeping our loan growth target. 1H18 was slower and we’re optimistic that in 2H18 we will catch up,” Zafrul said in a press conference after announcing its 1H18 financial results here.

    “For 2H18, we hope to sustain (performance). It’s been a strong two months (July-August), we’ve seen a pickup in capital markets (from slower capital market activities in 1H18), but also in the region in Thailand and Singapore. We’re optimistic. Judging from the pipeline that we have, we should see the same, if not better performance in 2H18,” he added.

    Zafrul said CIMB is focused on achieving its T18 targets, subject to recovery of capital markets, and continued improvement in asset quality across Indonesia, Thailand and Singapore.

    Saying the worst is over for its Indonesian business, he said a rate increase is expected in Indonesia to stabilise the rupiah. On the macro side, it is wary of the currency impact and is also mindful of the election in Indonesia. However he said CIMB Niaga has done well in term of its bottom line, adding that it was the best performing bank in 1H18 in Indonesia.

    “If you look at the numbers on Indonesia, the asset quality is better. The problem is the loan growth and this is something that we need to push further and at the same time we’re tracking the industry.”

    For the second quarter ended June 30, 2018, CIMB’s net profit jumped 80% to RM1.98 billion from RM1.10 billion a year ago bolstered by a RM928 million gain from the sale of 20% of CIMB-Principal Asset Management and 10% of CIMB-Principal Islamic Asset Management. Revenue rose 12% to RM4.86 billion from RM4.33 billion in the previous corresponding quarter.

    CIMB posted a record net profit of RM3.29 billion for the first half of 2018, up 44% from RM2.28 billion a year ago, bolstered by the disposal gain. Excluding the gain, CIMB’s 1H18 earnings was RM2.36 billion, translating to a 3.3% year-on-year growth. Revenue rose 5.5% to RM9.17 billion from RM8.69 billion in the previous year.

    Zafrul said CIMB is finalising its next mid-term growth plan post-T18, which will be premised on customers, people and sustainability, among others. He added that any changes to its management are based on performance and will be decided by the board and not one shareholder.

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  • Malaysian businesses expect slower growth in third quarter

    Malaysian businesses expect slower growth in third quarter

    Businesses expect growth to slow in the third quarter due to lower confidence levels after recording positive business performance in the second quarter of the year, according to the Statistics Department.

    The department’s Business Tendency Statistics for the third quarter 2018 which presents statistics on business performance based on a survey conducted on a quarterly basis – said the second quarter of the 2018 was positive with an overall net balance of +3.6%, mainly contributed by services sector (+22.0%).

    As for the third quarter, overall business performance is expected to grow at a slower pace with confidence indicator of +6.0% compared to the +7.8% in the previous quarter.

    On a sectoral basis, services sector is expecting their business performance to continue to grow in the third quarter of 2018 with confidence indicator of +16.5% as compared to +8.6% in second quarter of 2018.

    Other sectors such as industry and wholesale and retail trade which are also of the expectations of their business situation improving albeit at a moderate rate with smaller confidence indicators at +2.1 % and +3.6% respectively.

    However, the construction sector expects their business situation to be less bullish with a confidence indicator of -7.7%.

    “Majority of the respondents in all surveyed sectors which was 45.1%, anticipated that their gross revenue to increase while 44.4% expected unchanged. In contrast, 10.5% of the respondents foresee a decrease in gross revenue,” said chief statistician of Malaysia Datuk Seri Dr Mohd Uzir Mahidin.

    On another note, business performance is expected to continue to grow for the period of July to December 2018 based on a net balance of +11.6%, supported mainly by services sector that was most optimistic with a net balance of +25.3% as compared to +15.3% for the period of April to September 2018.

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  • Celcom Axiata appoints Idham Nawawi as new CEO

    Celcom Axiata appoints Idham Nawawi as new CEO

    Celcom Axiata Bhd has appointed Mohamad Idham Nawawi (pix) as its new CEO effective Sept 1, taking over the reins from Michael Kuehner whose tenure ends on Aug 31.

    The group said in a statement that the succession is part of the original plan two years ago to appoint an internal talent for its next phase of transformation and Idham was appointed following a thorough selection process.

    “As an internal talent with excellent management and operational experience within the group, as well as a member of the Celcom board, Idham is already well versed in Celcom’s strategic directions, operations and challenges. The board is confident Idham will be able to move quickly and efficiently to execute on the next phase of transformation,” it said.

    Idham has been with the group since 2012 and is currently the group chief corporate officer, responsible for regulatory management, corporate communications and sustainability, corporate affairs and government relations for the group. He also manages the group CEO’s office and the Axiata programme and governance office.

    Idham led the transformation programme office for Axiata 2.0 from 2012 to 2015, which was the impetus of Axiata’s expansion beyond its core mobile business into new digital services and tower business.

    As interim COO for Axiata Digital Services during its start-up phase in 2014, he was also instrumental in establishing the RM100 million Axiata Digital Innovation Fund targeted at developing Malaysian digital entrepreneurs.

    Idham has served as member of the board of directors in Axiata’s mobile operating companies in Malaysia, Cambodia, Bangladesh and Pakistan, and several Axiata Digital Services companies.

    Prior to joining Axiata, Idham was COO of Packet-One Networks (P1). He was previously head of strategy for Axis Telekom Indonesia and general manager at Maxis Communications Bhd, and had spent his early career with IBM Malaysia and Carl Zeis Inc in the USA.

    “We are pleased to welcome Idham as Celcom CEO. With his vast leadership and notable accomplishments in many roles, I am confident he will lead Celcom to the next level of transformation into a digital world as well as to pursue our profitable growth strategy. His decades of industry experience and familiarity of Celcom, being already a board member, will certainly help him to move quickly in the transition,” said Celcom chairman and Axiata president and group CEO Tan Sri Jamaludin Ibrahim.

    “At the same time, on behalf of the board of directors of Celcom and all of us, I would also like to take this opportunity to extend our gratitude to Michael for his immense contributions and for positioning Celcom solidly for the great opportunities ahead. We wish him all the best in his future endeavors,” he added.

    Kuehner, who took over from Datuk Seri Shazalli Ramly in September 2016, was previously the CEO of Robi Axiata Ltd in Bangladesh from 2009 till 2013.

    The group said his core strategy to provide the best customer experience in the industry saw Celcom achieve significant improvements in many areas in products and services, network quality and coverage especially in the deployment of 4G, sales and distribution as well as digitisation.

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  • Rado new Suria KLCC boutique open door

    Rado new Suria KLCC boutique open door

    Swiss watchmaker Rado has launched a new boutique at Suria KLCC.

    The brand’s largest store in Malaysia, the store’s layout represents Rado’s latest minimal design concepts contrasted with textured and handcrafted materials. Rado is generally known for its use of unusual materials to create exceptionally durable watches.

    The store is exclusively hosting the brand’s new True Thinline Nature collection, designed in collaboration with Italian historical garden organisation Grandi Giardini Italiani.

    The store’s star-studded launch function featured a fashion show and a showcase of the brand’s latest collections, focusing on Rado’s theme for the year The Elements of Time.

  • SportsDirect Malaysia opens its largest store

    SportsDirect Malaysia opens its largest store

    SportsDirect Malaysia has opened its largest store yet in the country, at Section 51A.

    The British sporting goods retailer’s new Petaling Jaya flagship, together with sister company MST Golf, comprise a 41,000sqft joint destination that is the largest sporting goods retail outlet in the country. The opening reflects the reportedly significant success of the brand in Malaysia.

    Divided into zones for easier navigation, the new SportsDirect Malaysia stores sells a broad range of international sporting brands.

    SportsDirect Malaysia MD Paul Gibbons said: “We are committed to be the leading sports and lifestyle retailer internationally by offering our customers an unrivalled range of high quality leading brands. This store alone carries an inventory of over 23,000 pairs of sports shoes to cover all our consumer requirements”.

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  • July inflation expected to be cushioned by zero-rated GST

    July inflation expected to be cushioned by zero-rated GST

    RAM Ratings expects the zero-rated goods and services tax (GST) to act as a cushion limiting inflationary pressure on Malaysia’s July inflation rate, which is projected to increase to 1% from 0.8% in June.

    Meanwhile, full-year inflation is expected to stand at 1.3 %.

    Transport fuel is seen as a trigger to higher inflation given the 12.4% rise in the average price of RON95 petrol in July (June: 9.9%) amid low-base effects. Prices had averaged RM1.96/litre in July 2017 compared with RM2/litre in June 2017 against the current subsidised level of RM2.20/litre.

    Commenting on the sales and services tax, RAM head of research Kristina Fong said initial assessment on the new tax regime and its potential inflationary impact does not indicate any destabilisation of prices or consumption at this juncture due to the smaller share of products in the consumer price index basket and its nature as a single layer tax applying to manufacturers rather than end-consumers directly.

    This is supported further by the less restrictive administrative costs of implementation and proposed exemptions on raw materials, components, and packaging for registered manufacturers.

    “In view of the deflationary pressure from the change in the taxation system, coupled with lower fuel prices from the reinstatement of fuel subsidies and a persistently weak growth trajectory for food prices, overall inflation is envisaged to average 1.3% this year,” she said.

    Given the lower core inflation and moderating GDP growth (4.9%), RAM said it appears to be a downward bias for the overnight policy rate (OPR) this year.

    However, it expects the interest rate to remain unchanged at 3.25% through the rest of 2018 on the back of lingering policy uncertainties and some macro risks may still pose a risk to capital outflows.

    “That said, we believe that monetary policy will play a bigger role because fiscal consolidation is perceived as a key trend going forward; hence less scope for additional pump-priming.”

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  • WeChat launches digital wallet in Malaysia

    WeChat launches digital wallet in Malaysia

    WeChat, China’s most popular social media app, has launched its digital payments platform in Malaysia. It is the platform’s first market in Asia beyond China and Hong Kong.

    The digital payment feature of WeChat allow its users to transfer money among themselves and make payments to offline merchants in ringgit. Rather than taking the common route of overseas expansion used by Chinese mobile-app providers catering to Chinese tourists or nationals living abroad, Tencent here seems to be building a local payment service.

    Malaysia’s central bank has been implementing policies promoting electronic payments in a bid to boost a network that lags behind other Southeast Asian markets. Their move has triggered the launch of digital wallets by other strong players, including Grab, the south-east Asia ride-hailing company.

    “Malaysia is a vibrant market. Technology-savvy Malaysians are embracing a digital lifestyle and to meet this shift, the payment experience has to evolve. Bringing WeChat Pay to Malaysia is our response to this,” said WeChat Pay Malaysia.

    SY Lau, senior vice-president at Tencent said in November when the company acquired a Malaysian epayment licence, that WeChat had 20m users in the country, equivalent to almost two-thirds of the population.

    The potential for mobile payments is vast in Malaysia, where cash is still king, but the number of mobile phones, mostly smartphones, outstrips a population of 32.1m by more than 10m, according to the central bank.

    But collaborations with local banks, of which WeChat has none, will be just as important for WeChat Pay to flourish there.

    At home, it took Tencent and Ant Financial, Alibaba’s electronic payments affiliate, years to build the links with hundreds of Chinese banks that make their services possible.

    Grab has already partnered with top local bank Maybank to bolster its mobile wallet, GrabPay. Coupled with its strong ride-hailing network in its market of origin, Grab is set to be a tough competitor for WeChat in Malaysia. According to Grab, its app and mobile wallet are already on half of all mobile phones in Malaysia.

    The number of emoney licences issued by Bank Negara to non-bank entities has almost doubled to 44 in the past two years as the central bank looks to reduce cash usage to curb tax evasion and corruption, according to Nor Shamsiah Mohd Yunus, Malaysia’s central bank governor.

    In Asia more broadly, however, some analysts say WeChat might struggle to expand beyond Malaysia, where the population is more than one-fifth ethnic Chinese.

    While the use of mobile payments is rapidly overtaking cash and cards for daily transactions by China’s smartphone users, WeChat Pay also faces the challenges of different local infrastructure and app-use habits in going abroad.

    WeChat Pay’s Malaysia launch comes at a tricky time for Tencent, whose second-quarter earnings were hit by domestic reforms delaying the licensing of new games.

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  • QSR starts selling in Foodpanda Malaysia platform

    QSR starts selling in Foodpanda Malaysia platform

    Malaysia’s largest fast-food operator QSR Brands is partnering with Foodpanda Malaysia to deliver its Pizza Hut and KFC orders, according to a Deal Street Asia report.

    The move is expected to increase food revenue for the firm by 15–20 per cent, and allow delivery outlets for both brands to increase to 480 by the end of this year, and 730 before 2020.

    QSR MD Mohamed Azahari Mohamed Kamil said: “This will provide a new revenue stream by serving not only our non-delivery outlets but also complement existing delivery outlets.”

    QSR is expected to list on Bursa Malaysia this November, seeking to raise around RM2 billion (US$500 million), raising its market capitalisation to an estimated RM6 billion ($1.5 billion).

  • Ikea Malaysia online platform launched

    Ikea Malaysia online platform launched

    Ikea Malaysia has launched an online store.

    The e-commerce site promises to offer the largest online selection of home furnishings in the country. It marks a strong entry into the Malaysian e-commerce market by the Swedish company’s Southeast Asian subsidiary.

    The site’s delivery service will be available nationwide by package or truck, offering more than 9000 products to online buyers throughout Malaysia purchasing with major debit and credit cards accepted.

    Ikea Malaysia recently extended its return policy from 100 to 365 days to provide their customers more time to exchange or return their products after purchase.

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