The week at a glance 25 January 2015

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Sabah & Sarawak

Labuan ibfc launches website for centralised resource centre

The Labuan Financial Services Authority (Labuan FSA) and its wholly-owned subsidiary, Labuan IBFC Inc Sdn Bhd (Labuan IBFC), on Monday announced the launch of its joint website, www.labuanibfc.com, offering a centralised resource centre for the jurisdiction.

 

Pestech’s maiden project in Sabah a precursor to more jobs ahead

Pestech International Bhd’s (Pestech) maiden project in Sabah which the company secured recently will serve as a springboard to bid for more jobs from the power sector there in the future. The research arm of Kenanga Investment Bank Bhd (Kenanga Research) in a report said despite the marginal sum of the contract worth RM1.2 million, the job helps to build up a reference for future project tendering.

 

Adjusted Budget 2015 lends positive light on construction sector

The revised Budget 2015 has been viewed positively by analysts as the unaffected development expenses is expected to benefit Malaysian contractors and also alleviate risk of delay in major projects. Despite lower oil revenue, the government has decided to maintain gross development spending at RM48 billion.

Some of the biggest recipients of the allocation include rural transport infrastructure such as the Pan-Borneo Highway, water projects, flood mitigation, affordable housing, and property/facility maintenance.

 

Sarawak plantations, timber sector not seriously affected by floods

Plantation and timber companies are to date not seriously affected by the heavy downfall over the past four days. Sarawak-based timber and plantation companies under the coverage of AffinHwang Investment Bank Bhd (AffinHwang Capital) have not been seriously affected by the floods.

 

Sabah steps up prudent expenditure for economy, financial stability

The Sabah state government on Thursday said it will step up prudent measures in its expenditures to ensure the state’s economic growth and financial stability. Chief Minister Datuk Seri Musa Aman, who is also state Finance Minister, said the proactive measures need to be undertaken to ensure the country’s economic growth is on a solid footing.

 

Timber earnings likely to increase significantly this year – Analysts

Earnings of timber companies are likely to improve in 2015 driven by favourable ringgit and higher log prices.

The research arm of CIMB Investment Bank Bhd in a report on Thursday expected the average price of Sarawak export logs to rise by US$10 to US$15 per metric tonne but plywood could decline around US$10 per metric tonne.

 

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National

Govt to intensify efforts to meet RM178 bln contribution target for palm oil

The government will intensify its efforts to realise the Gross National Income Contribution for the palm oil industry of RM178 billion by 2020. Plantation Industries and Commodities Minister Datuk Amar Douglas Uggah Embas on Monday said the ministry is reviewing the initiatives under the Entry Point Projects while the government would continue to introduce measures to assist the oil palm upstream and downstream sectors.

 

Hazmiah among 14 to participate in inaugural EY women program

Datuk Hazimah Zainuddin from Hyrax Oil Sdn Bhd is among the 14 women entrepreneurs selected from the region to take part in the inaugural EY Entrepreneurial Winning Women (EWW) Asia-Pacific program. The EWW Asia-Pacific Class of 2015 includes women from Australia, China, Hong Kong, Indonesia, Malaysia, New Zealand, Singapore and South Korea.

 

Measures to strengthen M’sia’s economic resilience

Prime Minister Datuk Seri Najib Razak on Tuesday announced a number of proactive measures to ensure Malaysia’s growth, development and deficit ambitions remain on track in responding to changes in the global economic landscape. In a special address, Najib said that the goverment remained confident that the country’s gross domestic product (GDP) will grow by between 4.5 per cent to 5.5 percent in 2015.

 

2014 car sales at all-time high — MAA

Malaysia’s car industry recorded a total industry volume (TIV) of 666,465 units for 2014, an all-time high, said the Malaysian Automotive Association (MAA) on Wednesday. The TIV eclipsed 2013’s 655,793 units, it said. President Datuk Aishah Ahmad said the strong 2014 performance was attributed to factors like a stable economy and employment rate, positive consumers’ sentiment and steady consumer spending, particularly during the first half of the year.

 

Najib meets top guns of corporate world on first day of WEF

Prime Minister Datuk Seri Najib Tun Razak kicked off his first day at the 45th World Economic Forum with a message to investors that Malaysia was ready for business. Making his second appearance as Prime Minister at one of the world’s most important gathering of “great minds”, he would certainly send a solid message that although challenges were there, Malaysia was at the heart of the most potential growth area in the world – Asean.

 

OCBC revises M’sian GDP 2015 forecast to 4.8 pct

OCBC Bank (Malaysia) Bhd is revising its Gross Domestic Product (GDP) for Malaysia this year from 5.1 per cent year-on-year to 4.8 per cent to reflect the effects of fiscal consolidation efforts as well as cutbacks in business investment activities, including those within the oil & gas sector. The group in a statement on Friday said in the near term, lingering uncertainties about oil prices and the impact on Malaysia’s growth may continue to weigh on sentiment.