The week at a glance 12 March 2017

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Sabah & Sarawak

Sizeable start to HSL’s year with RM333 mln contract

Analysts laud Hock Seng Lee Bhd (HSL) for procuring a RM333 million contract for the wastewater treatment plant and sewer networks in Miri from the Sarawak Sewerage Services Department. The project announced last Friday is for 48 months and involves earthworks, wastewater treatment plant, sewer networks, pumping station and property connections.

 

Malaysia keen to standardise CPO duty structure with Indonesia

Malaysia is still negotiating with Indonesia on standardising the export duty structure for crude palm oil (CPO). “We have not finalised anything. We have received feedback from various upstream and downstream industries.

Malaysia hopes to work together with Indonesia on standardising the price structure,” Minister of Plantation Industries and Commodities Datuk Seri Mah Siew Keong told reporters at the Global Palm and Lauric Oils Conference.

 

Govt provides RM50 mln grant to assist commodity industry

The government is providing a grant of RM50 million to assist the commodity industry in addressing food safety concerns, including reducing the level of containment in palm oil.

Minister of Plantation Industries and Commodities Datuk Seri Mah Siew Keong in this context, gave an assurance that palm oil and its derivatives are indeed safe for consumption as a food item.

 

X-FAB plans to raise 250 mln euros in IPO in Paris

Semiconductor firm X-FAB Silicon Foundries plans to raise 250 million euros or US$265 million in an initial public offering (IPO) on Paris Euronext to fund acquisitions and strengthen its capital structure.

The listing looks set to be the biggest in Paris so far this year and one of the largest in Europe by proceeds, according to Thomson Reuters data.

 

Global palm oil output likely to increase by six mln tonnes

Global palm oil output is expected to increase by six million tonnes in 2017 as oil palm trees were recovering from the adverse effects of the El Nino, says a leading industry analyst Thomas Mielke.

He said the current good weather, particularly in Malaysia and Indonesia, the world’s top two producers was also aiding output.

 

KTC completes acquisition of Brunei distribution company

Kim Teck Cheong Consolidated Bhd fulfilled all the conditions precedent set forth in the two inter-conditional agreements to enable KTC to collectively own 60 per cent equity interest in Grandtop Marketing Sdn Bhd.

 

National

Corporate credit growth to improve this year

Corporate credit growth for 2017 is expected to improve from last year, supported by the steady pace of economic progress and an improving outlook in key sectors of infrastructure and crude palm oil. Malaysian Rating Corp Bhd (MARC) chief rating officer Rajan Paramesran said the outlook for the oil and gas (O&G) and property sectors, however, remained challenging.

 

Proton can compete internationally with foreign strategic partner

The impending collaboration between national car company, Proton, and a foreign strategic partner (FSP) will not only maximise the manufacturing capacity at both its Shah Alam and Tanjung Malim plants but also allow the company to compete effectively, regionally and globally.

 

Capital market grew to RM2.84 trillion by end of 2016

The Malaysian capital market grew to RM2.84 trillion at end-2016, amid prevailing uncertainties and cautious investor sentiment, the Securities Commission (SC) said. Despite subdued global fundraising, the capital market saw total fundraising of RM98.5 billion, primary market issuances of RM86.7 billion, corporate bond and sukuk market was raised to RM85.7 billion.

 

New regulations could push CPI higher, but prices likely subdued

The new Price Control Anti-Profiteering Regulations 2016 (Mechanism to Determine Unreasonably High Profit for Goods) or PCAP could eventually push the consumer price index (CPI) higher.  However, analysts also believe that businesses might not take an aggressive stance in marking up prices of their products and services.

 

Malaysia’s Feb palm oil stocks down 5.32 pct to 1.46 mln tonnes

Malaysia’s total palm oil stocks in February 2017 slipped 5.32 per cent to 1.46 million tonnes against 1.54 million tonnes in January this year. In a statement, the Malaysian Palm Oil Board (MPOB) said crude palm oil (CPO) stocks fell by 2.21 per cent to 766,713 tonnes in February from 784,033 tonnes in the previous month.

 

Airbus helicopter foresees challenging 2017, rebound seen in 2018

Airbus Helicopters Malaysia Sdn Bhd, the helicopter manufacturing-arm of the Airbus Group, foresees a challenging 2017 due to domestic economic uncertainties and a weaker ringgit. Vice-president for Sales Guillaume Dubreuil said helicopter prices were now 15 and 20 per cent more expensive, due to the weaker ringgit, and this has limited demand.