The week at a glance 26 October 2014

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Sabah and Sarawak

Besides GST, don’t lose grip on tax affairs – EY

Ernst and Young (EY) has reaffirmed its stance in support for the Goods and Services Tax (GST) which would be implemented next year, stating that it is necessary for the long-term fiscal stability of the country.

During its annual EY 2015 Budget seminar held in Kuching, partner Yong Voon Kar  said it was inevitable that GST will kick in by April next year especially now that the government has re-affirmed income tax cuts to buffer the impact of GST.

 

Sarawak Cable signs SPA to acquire Universal Cable, Leader Cable

Sarawak Cable Bhd (Sarawak Cable) has entered into a sales and purchase agreement for 100 per cent equity interest in Universal Cable (M) Bhd (Universal Cable) and Leader Cable Industry Bhd (Leaber Cable) for a total of RM120 million. The group in a statement to Bursa Malaysia on Tuesday revealed that it had entered into the SPA with HNG Capital Sdn Bhd (HNG) to effect the proposed acquisitions. The target companies are two major cable manufacturers in Malaysia and have been involved in the manufacturing of power and telecommunication cables for more than 30 years, producing an extensive range of power and telecommunication cables.

 

Sheda hopes for continuous dialogue between govt, developers

The Sarawak Housing and Real Estate Developers’ Association (Sheda) hopes the government and property developers will have continuous mutually beneficial discussions on the Goods and Services Tax (GST) to find a solution to both benefit the state and country. This was among the key notes of Sheda’s second seminar on GST Wednesday held in collaboration with IFCA MSC Bhd after receiving overwhelming response from the first one in June.

 

Adabi may start pepper farm in Sarawak

Adabi Consumer Industries Sdn Bhd may start its own pepper farm or a collection/buying centre in Sarawak in order to maintain the taste profile of its products, its business development manager, Syed Mahadzir Datuk Syed Manshor said. He said the packaged food manufacturer had visited several places in the Pakan District of the Sarikei Division to look for a suitable site for the farm.

 

OSV players still resilient despite weakening oil prices

Offshore support velles (OSV) providers such As Dayang Enterprise Holdings Bhd (Dayang) are still seen as resilient despite weakening crude oil prices. AllianceDBS Research Sdn Bhd saw no reason to downgrade earnings for Dayang even if the firm lower crude oil assumptions to US$95 per barrel from a previous US$106 per barrel.

 

Crowe Horwath urges Sarawak businesses to seek clarity on GST

Crowe Horwath together with RHB Banking Group organised a seminar late Wednesday on the 2015 Budget, advising Sarawakian businesses to seek clarity and deepen their understanding of their needs in order to comply with the Goods and Services Tax (GST). The seminar featured KL based speakers from Crowe Horwath’s tax practice as well as from RHB Research Institute. The well received seminar provided insights on the  2015 Budget, strategic tax planning advices as well as commentary on recent tax cases and landmark development in the interpretation of tax legislation.

 

TAS Offshore’s bottomline misses analyst target, remains confident of vessel demand

TAS Offshore Bhd (TAS Offshore) unveiled figures for the first quarter of its financial year 2015 (1QFY15) which analysts say missed target on declining margins.

TAS Offshore’s 1QFY15 revenue of RM76.4 million was up 25 per cent quarter on quarter and 157 per cent year on year, coming in at 24 per cent of RHB Research Institute Sdn Bhd (RH’sB Research) full-year target.

 

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National

MIER expects MAlaysia’s 3Q GDP to moderate below 6 pct

The Malaysian Institute of Economic Research (MIER) on Tuesday expects Malaysia’s Gross Domestic Product (GDP) to moderate below six per cent for the third quarter (Q3) due to the softening business conditions and higher import growth as compared to exports. The GDP for the first and second quarters stood at 6.2 per cent and 6.4 per cent, respectively, resulting in the first-half GDP at 6.3 per cent but full-year GDP is forecast at 5.7 per cent.

 

EPF cannot vote in three-way merger, says Bursa

Bursa Malaysia late Tuesday  has rejected the Employee Provident Fund’s (EPF) appeal to vote on the merger exercise between CIMB Group Holdings Bhd (CIMB), RHB Capital Bhd (RHB) and Malaysian Building Society Bhd (MBSB). EPS has major stakes in all three banks which are merging to form a mega Islamic bank.

 

Muslim world needs to develop revolutionary method in Islamic finance

The Muslim world needs to develop a revolutionary method in Islamic finance to allow entrepreneurs and financiers to leverage each other to contribute to the nation’s economic growth sustainability, Datuk Seri Najib Tun Razak said. The prime minister said Islamic countries had made remarkable progress and became a significant group in the global economy as the total gross domestic products of the Organisation of Islamic Cooperation (OIC) countries had grown to US$9.4 trillion in 2012 from US$7.5 trillion.

 

Carimin Petroleum offers IPO at RM1.10 per share

En route to listing on the Main Market of Bursa Malaysia, offshore oil and gas (O&G) service provider Carimin Petroleum Sdn Bhd (Carimin Petroleum) has proposed 60.7 million new ordinary shares at an issue price of RM1.10 per share for its initial public offering.

In its prospectus, it said 11.694 million new shares will be available for application by the public while three million new shares will be available for application by eligible directors and employees and 46.006 million new shares will be placed to identified investors. It also announced an offer for sale of 5.89 million existing shares by way of placement to identified investors.

 

Public Bank records favourable 3Q14 performance

Public Bank Group (Public Bank) said Thursday it registered favourable performance in the third quarter of 2014 (3Q14), achieving a pre-tax profit of RM1.55 billion that translated to a 14.3 per cent growth as compared to the corresponding quarter in 2013.  ccording to founder and chairman of Public Bank, Tan Sri Dr Teh Hong Piow, Public Bank’s net profit attributable to shareholders also recorded an increase of 13.8 per cent to RM1.19 billion over the same period.