Sabah & Sarawak
Minimum wage hike bad for planters’ bottomline
The newest hike in national minimum wages will not bode well for plantation companies, says CIMB Investment Bank Bhd (CIMB Research), as it will potentially impact planters’ costs of production.
In Malaysia’s Budget 2016, the government revealed that the national minimum wage will be increased from RM900 to RM1,000 per month for Peninsular Malaysia and from RM800 to RM920 per month for Sabah, Sarawak and Federal Territory of Labuan, effective from July 1,2016.
KTC to utilise RM21 million proceeds for expansion in East Malaysia
Sabah-based Kim Teck Cheong Consolidated Bhd (KTC Group) will carry out its expansion plans more effectively as it heads towards its listing on the ACE Market of Bursa Malaysia.
KTC Group, a consumer packaged goods distributor which launched its prospectus yesterday in conjunction with its listing next month, is looking to raise gross proceeds of approximately RM21 million from its initial public offering (IPO).
The group in its prospectus said the proceeds raised will be utilised to acquire warehousing facilities in Kuching, Sibu and Miri.
Lafarge mulls plans to set up bastions in Sabah, Sarawak
Lafarge Malaysia Bhd is considering to re-operate in Sabah and Sarawak amid the huge potential there with mega projects such as the RM16.1 billion Pan Borneo Highway.
Its newly-appointed president and chief executive officer Thierry Legrand said the company would consider proposing the usage of cement and concrete-based material in the construction of the highway.
Jaya Tiasa expands interest in oil palm segment
Jaya Tiasa Holdings Bhd is expanding its oil palm segment through the acquisition of 9.87 per cent stake in sister company Rimbunan Sawit Bhd (Rimbunan Sawit).
AmResearch said Jaya Tiasa wants to tap into the growth prospects and the potential capital appreciation of Rimbunan Sawit as well as to expand its interest in the oil palm sector.
New MPERS to impact private property, plantation companies
The new Malaysian Private Entities Reporting Standards (MPERS) may leave some adverse impacts for private property and plantation companies as they move towards adopting this new standard by January 1, 2016.
According to accounting firm Ernst and Young (EY), the introduction on the new standard does have potential negative impacts for private property developers and plantation companies.
Sarawak on the radar of Indonesian business community
Sarawak will feature more prominently in the business community of Indonesia following a significant business transaction which was secured by a Sarawakian company at the 30th Trade Expo 2015 in Jakarta that ended last week.
The deal valued at approximately US$400,000 by Aiman Mantap Sdn Bhd was the biggest transaction done by a Sarawakian company at the trade exhibition and the largest deal secured by a Sarawakian
company from trade exhibitions in Indonesia over the years.
—
National
Analysts less than sanguine on RHB’s employee scheme
Analysts are less than optimistic on RHB Capital Bhd’s Career Transition Scheme (CTS) as employees leave the group in batches between November this year and January 2016. On Tuesday, RHB in a statement said it has accepted the application of 1,812 employees for its CTS estimated at RM309 million.
Malaysia can hit 2016 GDP target if oil prices above US$40
Malaysia can achieve the projected Gross Domestic Product (GDP) growth of four to six per cent next year if crude oil prices stay above US$40 per barrel, says Treasury Secretary-General Tan Sri Dr Mohd Irwan Serigar Abdullah. He said the GDP growth target for next year was based on oil prices at US$48 per barrel and slower global growth, driven by private investment and consumption growth of 6.7 per cent and 6.4 per cent respectively.
Commodity prices continue to pressure Malaysia’s outlook – Fitch
International ratings agency Fitch Ratings expects Malaysia’s fiscal and broader economic outlook to remain under pressure from weaker commodity prices into 2016.
According to announcements under Budget 2016, Malaysia’s federal budget projects a reduction in the deficit to 3.1 per cent from 3.2 per cent expected for 2015.
Malaysia can meet 3.1 pct fiscal deficit target
Malaysia is able to meet its fiscal deficit target of 3.1 per cent by end-2016 as the country has strong economic fundamentals, said Deputy Finance Minister Datuk Johari Abdul Ghani. “Look at our financial system, it is very solid, very resilient, while in our current economic scenario, we are quite confident that we will able to achieve the target,” he said.
AirAsia wins Asia’s Leading Cabin Crew at World Travel Awards 2015
AirAsia broke the record again by being the the first low-cost airline to be awarded ‘Asia’s Leading Cabin Crew’ at the World Travel Awards (Asia & Australasia) Gala 2015. Other airlines nominated in the ‘Asia’s Leading Cabin Crew’ category include Air India, Cathay Pacific Airways, China Southern Airlines, Garuda Indonesia, Hainan Airlines, Hong Kong Airlines, Korean Air, Malaysia Airlines, Singapore Airlines, SriLankan Airlines and Thai Airways.