Th eEdge Property .com

33 Pages·2016·10.4 MB·English

by  Chau Chee Fei

FBM KLCI 1715.00 0.28 KLCI FUTURES 1713.50 1.50 STI 2814.65 5.41 RM/USD 3.8780 CPO RM2639.00 28.00 OIL US$43.33 0.50 GOLD US$1257.70 0.40
PP 9974/08/2013 (032820)
PENINSULAR MALAYSIA RM1.60 (INCLUSIVE OF 6% GST)
WEDNESDAY APRIL 13, 2016 ISSUE 2145/2016
FINANCIAL
DAILY
MAKE
BETTER Dr M: 1MDB made it sound like
DECISIONS it dealt with legitimate fi rms
w w w . t h e e d g e m a r k e t s . c o m 4 HOME BUSINESS
2
Reach Energy
‘Swiss authorities suspect two offi cials,
mulls fundraising
88 HHOOMMEE BBUUSSIINNEESSSS movie fi rm benefi ted from 1MDB funds’
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Sarawak polls so far
18 HOME
33 critical slopes
identifi ed in
Cameron Highlands
FBM KLCI 1715.00 0.28 KLCI FUTURES 1713.50 1.50 STI 2814.65 5.41 RM/USD 3.8780 CPO RM2639.00 28.00 OIL US$43.33 0.50 GOLD US$1257.70 0.40
PP 9974/08/2013 (032820)
PENINSULAR MALAYSIA RM1.60 (INCLUSIVE OF 6% GST)
WEDNESDAY APRIL 13, 2016 ISSUE 2145/2016
FFIINNAANNCCIIAALL
DDAAIILLYY
MAKE
BETTER Dr M: 1MDB made it sound like
DECISIONS it dealt with legitimate fi rms
w w w . t h e e d g e m a r k e t s . c o m 4 HOME BUSINESS
2
Reach Energy
‘Swiss authorities suspect two offi cials,
mulls fundraising
8 HOME BUSINESS movie fi rm benefi ted from 1MDB funds’
QL Resources
to invest up to 6 HOME BUSINESS
RM100m in
FamilyMart
P
H
O
TO
9 HOME BUSINESS BY SH
NAJIB: 1MDB AH
Daim’s son now RIN
YA
H
a substantial YA
shareholder of
Reliance Pacifi c
A LESSON
TO LEARN
12 PROPERTY SNAPSHOT
Action will be taken
Home close to
nature at Augusta if any evidence of
wrongdoing is found.
17 HOME
Total of 69 BN Ahmad Naqib Idris has the
candidates for
story on Page 7.
Sarawak polls so far
18 HOME
33 critical slopes
identifi ed in
Cameron Highlands
2 WEDNESDAY APRIL 13, 2016 • THEEDGE FINANCIAL DAILY
For breaking news updates go to
www.theedgemarkets.com
Reach Energy may
ON EDGE TV IN BRIEF
www.theedgemarkets.com
Norwegian Cruise eyes
China market
have to raise funds with dedicated liner
SINGAPORE: US-based cruise
liner Norwegian Cruise Line
Holdings (NCL) is on track to
venture into China next year
Talking Edge: with a ship tailor-made for the
Chinese market, a company of-
GE O&G’s plan
fi cial said yesterday. Demand for
for surviving After declaring it has suffi cient capital to fi nance capex
cruises is rising in China, driven
oil’s big by the country’s growing mid-
dle class, said Steve Odell, NCL
squeeze
BY SANGEETHA AMARTHALINGAM fundraising proposal. aeontolol Cooperatief UA (PCUA) senior vice-president and man-
Reach Energy managing director and MIE Holdings Corp (MIEH). aging director for the Asia Pacif-
KUALA LUMPUR: A week after de- Shahul Hamid Mohd Ismail said on Reach Energy plans to acquire a ic. About 2.2 million, or 10%, of
claring it has suffi cient funds to fi - April 6 that the SPAC has no plans 60% stake in PCUA’s wholly-owned the 23 million passengers who
nance the capital expenditure (capex) to launch a cash call on investors unit based in the Netherlands, Pal- made cruise trips worldwide in
to be incurred by its qualifying acqui- to fund the capex incurred by its aeontolol BV, for US$154.9 million. 2014 came from Asia, with this
sition (QA), Reach Energy Bhd now QA in the near term. Palaeontolol owns the Emir-Oil fi gure only set to rise, industry
says it is contemplating a fundraising He told a news conference that fi elds in Kazakhstan. data showed. Odell spoke to AFP
proposal for the purpose. the capex, amounting to about PCUA is a wholly-owned sub- yesterday as the firm opened
“Although Reach Energy esti- US$15 million (RM58.35 million) sidiary of Hong Kong-based MIEH. an office in Singapore for the
mated the near-term capex to be from now till 2019, would be fund- Th e purchase consideration is Southeast Asian market. — AFP
The Edge Communications Sdn Bhd low, the company is currently con- ed internally as the company has 84% of the RM750 million proceeds
(266980-X) templating a fundraising proposal “suffi cient funds” for the exercise. the SPAC raised from its initial pub- Expanded China-
Level 3, Menara KLK, No 1 Jalan PJU 7/6, operated Pakistani port
Mutiara Damansara, 47810 Petaling Jaya, as mentioned in the company’s an- In its statement yesterday, Reach lic off ering. on CPEC ‘almost ready’
Selangor, Malaysia nouncement dated March 5, 2016,” Energy said as per its March 5 an- Reach Energy said the condi-
it said in a statement yesterday. nouncement, the completion of the tions precedent of the agreement GWADAR: Th e newly expand-
The oil and gas special-pur- proposed QA is conditional on the for the proposed QA include ob- ed Gwadar deep-water port in
pose acquisition company (SPAC) conditions precedent of the agree- taining the decision of the Securi- Pakistan that is key to a planned
Publisher and Group CEO Ho Kay Tat
added that it will make the neces- ment entered on the same day. ties Commission Malaysia and the US$46 billion (RM178.94 bil-
EDITORIAL sary announcement when there Th e agreement involves a deal approval of shareholders of Reach lion) Chinese economic cor-
For News Tips/Press Releases is material development on the between Reach Energy with Pal- Energy and MIEH. ridor is nearly complete and
Tel: [phone] Fax: [phone]
expects to process about a mil-
Email: [email protected]
lion tonnes of cargo next year,
Senior Managing Editor Azam Aris the operator said yesterday.
IMF cuts global growth forecast
Executive Editors Kathy Fong, Most of the cargo will be in-
Jenny Ng, Siow Chen Ming,
coming construction materials
Surinder Jessy, Ooi Inn Leong
Associate Editors R B Bhattacharjee, to be used in projects related to
Joyce Goh, Jose Barrock, the China-Pakistan Economic
Vasantha Ganesan WASHINGTON: Th e International Corridor (CPEC), which envi-
Editors Cindy Yeap, Kang Siew Li
Monetary Fund (IMF) cut its global sions linking far-western Chi-
Assistant Editors Adeline Paul Raj,
Tan Choe Choe growth forecast for the fourth time na production regions by road
Chief Copy Editor Halim Yaacob in the past year yesterday, citing through Pakistan for shipment
Senior Copy Editor Melanie Proctor China’s slowdown, persistently low through Gwadar port to over-
Copy Editors Evelyn Chan,
oil prices and chronic weakness in seas markets. — Reuters
Tham Yek Lee, Tham Kid Cheng
Art Director Sharon Khoh advanced economies.
China unveils trial rules
Design Team Cheryl Loh, Th e fund, whose spring meetings
to cut overcapacity
Valerie Chin, Aaron Boudville, along with the World Bank will be
Aminullah Abdul Karim,
held in Washington this week, fore- BEIJING: China’s powerful na-
Yong Yik Sheng, Tun Mohd Zafi an
Mohd Za’abah, Noorain Duasa cast that the global economy will tional planning body yesterday
grow at 3.2% in 2016, compared unveiled a trial “negative list”
EDITORIAL ADMINISTRATION with its previous forecast of 3.4% programme to cut capacity in
Manager Katherine Tan
in January. a range of sectors from coal to
Assistant Manager Madeline Tan
Senior Coordinator Maryani Hassan In its latest World Economic Out- beer. Th e central government
look, the fund warned of widespread has identified overcapacity
CORPORATE stagnation risk and said weaker Filepic of a sign announcing the 2016 spring meetings of the IMF and World Bank and the closure of debt-rid-
Managing Director Au Foong Yee
growth could leave the global econ- outside the IMF headquarters in Washington. The IMF says weaker growth could leave den “zombie” fi rms as one of its
Deputy Managing Director
Lim Shiew Yuin omy more vulnerable to shocks, the global economy more vulnerable to shocks. Photo by AFP main policy priorities for 2016.
such as currency depreciations or Th e National Development and
ADVERTISING & MARKETING worsening geopolitical confl icts. with structural economic reforms, rice Obstfeld said in a statement. Reform Commission’s trial pro-
To advertise contact
Th e fund called on global pol- fi scal stimulus where possible and “Persistent slow growth has scar- gramme will cover the cities of
GL: [phone]
Fax: [phone] icymakers attending the IMF and accommodative monetary policy. ring eff ects that reduce potential Shanghai and Tianjin as well as
Chief Marketing Offi cer World Bank meetings to take co- “Lower growth means less room for output and with it, demand and the provinces of Guangdong
Sharon Teh [phone] ordinated actions to boost demand error,” IMF chief economist Mau- investment.” — Reuters and Fujian. — Reuters
General Manager, Digital Media
Kingston Low [phone]
Senior Sales Managers
Fong Lai Kuan [phone]
Petronas Lubricants CEO not ruling out IPO in growth drive
Peter Hoe [phone]
Gregory Thu [phone]
Creative Marketing
Chris Wong [phone]
Head of Marketing Support & Ad Traffi c BY GIANCARLO NAVACH than 2,100 workers. In 2015, it had gest market, accounting for 48% of unit Versalis in the rubber segment.
Lorraine Chan [phone] & STEPHEN JEWKES sales of around US$2 billion. European sales. Asked if the company was inter-
Email: [email protected]
D’Arrigo, an Italian who took In a factory outside Turin, the ested in buying a stake in Versalis,
MILAN: Petronas Lubricants Inter- over as CEO earlier this year, said company makes the lubricants and he said he could not say where the
OPERATIONS
To order copy national (PLI), the wholly-owned the group aimed to double its busi- fl uids that are tested and used in partnership agreement they had
Tel: [phone] / 8033 subsidiary of Petroliam Nasion- ness in Europe, where it would be Formula One racing by the world might end up.
Fax: [phone]
al Bhd, does not rule out a stock investing between US$250 million champion Mercedes team. “It’s clear we are here and we will
Email: [email protected]
market listing at some point as it (RM972.5 million) and US$300 mil- Th e Kuala Lumpur-based com- look at our options in case there is
TheEdgeProperty.com targets growth in mature as well lion over the next fi ve years. pany is not interested in growing interest,” he said.
Managing Director Au Foong Yee as emerging markets, its chief ex- “Europe is basically a fl at market in downstream distribution busi- Eni has been in talks with US
Editor Lam Jian Wyn ecutive offi cer (CEO) said. but it’s very interesting for us and nesses in Europe, such as petrol fund SK Capital to sell a majority
Contributing Editor Sharon Kam
“We don’t see [a listing in the] we believe we can extract value stations, but it does not rule out stake in Versalis.
Assistant Editor James Chong
short term but we do not exclude even in more mature markets where investing in the chemical and re- But earlier this month, Eni CEO
MARKETING & ADVERTISING it in the future,” Giuseppe D’Arrigo our growth is in double digits,” he fi ning sectors. Claudio Descalzi said a new tender
Account Director told Reuters in an interview. said in a telephone interview. D’Arrigo said the group had for the stake would be launched if
Sharon Chew [phone]
PLI, which makes fl uids and oil Europe, one of PLI’s main mar- worked with Italian oil major Eni for no agreement was reached with
products for the automotive sector, kets, generates 28% of the compa- several years and had partnership SK Capital in the next three to four
BUSINESS DEVELOPMENT
Senior Manager Elizabeth Lay operates in 23 countries with more ny’s total volumes. Italy is the big- deals with the company’s chemical weeks. — Reuters

4 HOME BUSINESS WEDNESDAY APRIL 13, 2016 • THEEDGE FINANCIAL DAILY
Dr M: 1MDB made it sound like
1MDB to
pursue ‘all
it dealt with legitimate fi rms
available
avenues’ on
Aabar issue
Former PM says he doesn’t believe one word of what the fund explained BY MEENA LAKSHANA
regarding the money that was supposed to have been paid to IPIC and Aabar
KUALA LUMPUR: 1Malaysia De-
velopment Bhd (1MDB) said it
will pursue “all available avenues”
BY THE EDGE MALAYSIA open to it after International Pe-
troleum Investment Co (IPIC)
KUALA LUMPUR: Tun Dr Ma- denied having any links to the
hathir Mohamad accuses the be- British Virgin Islands fi rm that
leaguered 1Malaysia Develop- was paid US$3.5 billion (RM13.62
ment Bhd (1MDB) of using similar billion) by the troubled state fund.
names to that of genuine large IPIC, which is owned by the
companies, in order to make it Abu Dhabi government, and
seem as though the strategic in- Dr Mahathir says its unit Aabar Investments PJS
vestment fund was conducting 1MDB is forever (Aabar) on Monday issued a joint
legitimate business dealings with having to explain statement denying ownership
those fi rms when it was not nec- (things). Photo of Aabar Investments PJS Ltd
essarily the case. by Kenny Yap (Aabar BVI). Th ey also denied
Th e former premier said this in receiving any payments from
response to the denial on Monday Aabar BVI or of assuming any
by Abu Dhabi’s sovereign wealth liabilities on behalf of the fi rm.
fund International Petroleum In- In a statement yesterday,
vestment Co (IPIC) and its unit 1MDB said it is confi dent of its
Aabar Investments PJS (Aabar) legal position in relation to the
that it had any connection with US$3.5 billion cash deposits paid
a British Virgin Islands company belong to the Blackstone Group. Real Estate Partners Ltd (BVI). ing received any payments from to Aabar BVI between 2012 and
with a similar name. Both IPIC Blackstone is the name of a com- In the second case, a sum of Aabar BVI or assumed any liabil- 2014.
and Aabar clarifi ed that they had pany in the United States, and it US$472.75 million (RM1.84 billion) ities on behalf of Aabar BVI, after “For an as-yet-to-be-deter-
no dealing with the British Vir- has investments and all that, but that originated from Blackstone Asia the PAC report named Aabar as mined reason, IPIC and Aabar
gin Islands-registered Aabar In- [the company 1MDB has dealings Real Estate Partners Ltd (BVI) was part of the Abu Dhabi group. are only now seeking to deny
vestments PJS Ltd (Aabar BVI), a with is] Blackstone Asia Real Estate deposited into the former chairman “Both IPIC and Aabar confi rm ownership of Aabar BVI or re-
company with which 1MDB had Partners BVI [British Virgin Islands]. of Aabar BVI Khadem al-Qubaisi’s that Aabar BVI was not an entity ceipt of the payments.
questionable deals worth several It takes the name and then use that Luxembourg bank account between within either corporate group,” “Th is will no doubt be the sub-
billion ringgit. name and it gives the impression May 29, 2012 and Dec 4, 2012. Black- IPIC said in a statement to the LSE. ject matter of further enquiry and
Questions pertaining to the that it is dealing with a real compa- stone Asia Real Estate Partners Ltd Dr Mahathir added that the discussion. 1MDB is exploring
legitimacy of 1MDB’s deals with ny. Here it takes the name of Aabar (BVI) is the same off shore company PAC report revealed all the wrong- all its options in this regard,” it
Aabar BVI were raised after the [but] this is Aabar BVI”. which had pumped at least US$120 doings at 1MDB all this while, and added.
Public Accounts Committee’s Blackstone Asia Real Estate Part- million (RM480 million) into Najib’s said that he felt that Najib was Opposition lawmaker Tony
(PAC) report on the fund’s deal- ners and both IPIC and Aabar have personal bank accounts between Jan implicated in the wrongdoing. Pua yesterday said the denial
ings was released last week. been linked to 1MDB in two sep- 3, 2012 and May 23, 2012. Th e PAC had blamed former by IPIC and Aabar had “fi nally
Dr Mahathir scathingly said arate cases where problems have Dr Mahathir said, “So I don’t be- chief executive offi cer of 1MDB confi rmed what critics of 1MDB
during an exclusive interview cropped up. Prime Minister Datuk lieve one word of what 1MDB says Datuk Shahrol Azral Ibrahim Hal- have suspected all along — that
with The Edge Financial Daily, Seri Najib Razak is the chairman of in its explanation for the money that mi, and singled him out for the 1MDB has been making pay-
“1MDB is forever having to explain 1MDB’s advisory board. it was supposed to have been paid wrongdoing. ments of billions of dollars to a
[things]. It [1MDB] uses names Issues surrounding 1MDB in- to IPIC and Aabar.” Commenting on the PAC re- fi ctitious Aabar BVI, pretending
[of companies] in order to make clude Australia’s ABC News’ recent As a result of being implicat- port, Dr Mahathir highlighted that that it was payments to the real
it sound as though it is dealing report that US$1.05 billion or about ed with 1MDB and Aabar BVI, on it lacked a minority report. He Aabar of Abu Dhabi”.
with legitimate companies. RM4.2 billion had been deposited Monday, IPIC and Aabar made also noted that the auditor-gen- Pua claimed that 1MDB was
Th e 90-year old political lead- into Najib’s bank accounts from Saudi statements to the London Stock eral’s report on 1MDB has not never able to provide the proof of
er explained, “Th ere’s a compa- Arabia’s ministry of fi nance, Prince Exchange (LSE), stating that Aabar been released. “It’s just trying to ownership of Aabar BVI because
ny called Blackstone Asia Real Faisal Turki Bandar al-Saud, Tanore BVI was not an entity within their whitewash Najib, nothing more “Aabar BVI is clearly a fake entity
Estate Partners, but it doesn’t Finance (BVI) and Blackstone Asia corporate group, and denied hav- than that,” he said in conclusion. created to siphon the US$3.51
billion or more from 1MDB”.
In response to Pua’s state-
ment, 1MDB reiterated that it
How Malaysia’s 1MDB fund scandal reaches around the world had shared all documents in its
possession, and those it could
obtain, with the National Audit
STATE investment company
Department (NAD).
1Malaysia Development Bhd, or
“It is these very same docu-
1MDB, has been making head-
ments shared by 1MDB with the
lines in Malaysia and around
NAD, which show the ownership
the world in the past year, main-
of, payments to, and underly-
ly for the wrong reasons. Th ere
ing legal documents relating to
are probes reported in at least
Aabar BVI.
ten countries related to 1MDB, or
“Hence, there are no ‘lies’ or
into companies and individuals
suppression of information, as
linked to it.
wrongly claimed by YB Tony,”
Investigations surrounding
said 1MDB, adding that there are
1MDB centre on alleged fi nancial
clear references to the payments
irregularities and possible money
laundering. Both 1MDB and Prime made to Aabar BVI in the 2013
Minister Datuk Seri Najib Razak and 2014 1MDB audited fi nan-
have consistently denied wrong- cial statements.
doing, and the fund continues to “The company has always
state that no foreign legal author- maintained and continues to
ities have contacted them on any maintain that if any wrongdoing
of these investigations. Here’s a is found, then action must be tak-
snapshot of the various probes. en, according to the law,” it said.

6 HOME BUSINESS WEDNESDAY APRIL 13, 2016 • THEEDGE FINANCIAL DAILY
Swiss AG says movie
fi rm benefi tted
from 1MDB
Money was not returned to Abu Dhabi sovereign fund
BY MEENA LAKSHANA amounts,” said the Office of the not approve the US$1.4 billion se-
Attorney-General of Switzerland curity deposit. Filepic of actor Leonardo DiCaprio in The Wolf of Wall Street produced by Red Granite
KUALA LUMPUR: Th e Swiss au- (OAG) in a statement posted on Th e PAC report also noted that Pictures. The production of the movie is suspected of receiving funding from 1MDB.
thorities suspect that money paid its website yesterday. 1MDB had also made payments of
for the guarantee of bonds issued Th is comes after Abu Dhabi sov- US$855 million, US$933 million and the four main chapters of the Swiss pore’s Attorney-General’s Cham-
to fund 1Malaysia Development ereign fund International Petrole- US$295 million as security deposits investigation opened on Aug 14, bers confi rmed yesterday that it
Bhd’s (1MDB) power plants had um Investment Co (IPIC) and its and other guarantees for the bond 2015. has received a request for mutual
benefi ted “two public offi cials” and unit Aabar Investments PJS (Aabar) to Aabar BVI. “1MDB subsidiaries issued two legal assistance in criminal matters
“a company related to the motion on Monday denied ownership of OAG, in its statement, said that series of bonds to fi nance invest- from the OAG.
picture industry.” British Virgin Islands fi rm Aabar as part of the criminal proceed- ments in electric power plants. Th e Wall Street Journal, in a se-
“Th e Swiss authorities have el- Investments PJS (Aabar BVI).Th ey ings on suspicion of embezzlement “Th is chapter of the proceed- ries of articles, had alleged that Red
ements in hand allowing them to also denied receiving payments committed against 1MDB, OAG has ings covers the circumstances in Granite Pictures, the production
suspect that the amounts paid in from Aabar BVI or of assuming extended its proceedings to two which these subsidiaries obtained company behind the Oscar-nom-
connection with this guarantee any liabilities on behalf of the fi rm. former Emirati offi cials, in charge the guarantee to repay these bonds inated fi lm Th e Wolf of Wall Street,
were not returned to the Abu Dhabi 1MDB had previously stated that of Abu Dhabi sovereign funds. from an Abu Dhabi sovereign fund,” had obtained the capital to produce
sovereign fund that supported the it made a total of US$3.5 billion Th e two former Emirati offi cials it added. the movie after receiving funds di-
commercial risk. (RM13.62 billion) in payments to are under investigation for fraud, OAG also said that as part of the verted from 1MDB. Th e chairman
“To the contrary, these funds Aabar BVI, with US$1.4 billion — criminal mismanagement, mis- Swiss criminal proceedings, it has of Red Granite Pictures is Prime
would have benefi ted others, par- from a privately placed bond that conduct in public offi ce, forgery issued two new requests for mutu- Minister Datuk Seri Najib Razak’s
ticularly two public offi cials con- Goldman Sachs raised in 2012 — of a document, bribery of foreign al legal assistance to Luxembourg stepson Riza Aziz.
cerned as well as a company relat- as a security deposit. public offi cials and money laun- and Singapore. Red Granite Pictures have re-
ed to the motion picture industry. Th e Public Accounts Committee dering, it said. “Given the international coop- peatedly denied that the movie,
“A former 1MDB body, already (PAC), in its report on its investi- “Th e extension of the criminal eration, the OAG is thus working to which received fi ve nominations
accused in the Swiss proceed- gation into 1MDB, noted that the proceedings took place within the establish the facts,” it said. at the 2014 Academy Awards, was
ings, has also benefi ted from these state fund’s board of directors did Genting/Tanjong chapter, one of Reuters reported that Singa- funded by capital from 1MDB.
MOST VIEWED STORIES ON
theedgemarkets.com
Berjaya Corp to sell its BAuto stake for RM526m Progressive Impact loses Johor
sewerage treatment plant contract
BY KAMARUL ANWAR sia, BCorp said its wholly-owned per BAuto share into the SPV.
subsidiary Berjaya Group Bhd Of the RM526.26 million consid- BY GHO CHEE YUAN agreed to accept the termination
KUALA LUMPUR: Berjaya Corp (BGroup) yesterday signed a eration, RM120.25 million will be with claims for costs of work done.
Bhd (BCorp), controlled by tycoon memorandum of understanding satisfi ed via an issuance of 120.25 KUALA LUMPUR: Progressive Im- According to Progressive Im-
Tan Sri Vincent Tan, is looking to with Yeoh on the proposed dis- million new SPV shares, represent- pact Corp Bhd, which has bagged pact, the termination was due to
dispose of a 21.88% equity interest posal-cum-injection. ing a 33.33% stake in the SPV, and a RM43.6 million contract for the the recent changes to the design
in Berjaya Auto Bhd (BAuto) to BAuto management will inject the remaining RM406.01 million sewerage treatment plant project of the Sewerage Treatment Plant
a special purpose vehicle (SPV) up to 114.52 million BAuto shares, in cash. Th e SPV proposes to fund in Johor from Danga Bay Sdn Bhd (Module 1), which resulted in an
controlled by key members of representing about 10% equity in- this cash portion through bank early this year, said the contract had increase in the total project cost.
Mazda distributor’s management, terest in BAuto, into the SPV for up borrowings. been terminated. Another reason was that ASET and
including its chief executive offi cer to RM240.49 million or RM2.10 per “Upon completion of the pro- In February, Progressive Impact Danga Bay were unable to reach
Datuk Seri Ben Yeoh Choon San, BAuto share. In return, BAuto man- posed disposal, the SPV, controlled announced that it had bagged the a consensus on the increase, it
for RM526.26 million or RM2.10 agement will receive 240.49 million by the BAuto management, will above contract via its 90%-owned added.
per BAuto share. new shares in the SPV, which work have up to 31.88% stake in BAu- subsidiary, Alam Sekitar Eco-Tech- Th us, both parties have mutually
Upon completion of the dis- out to a 66.67% stake at par value. to, and will manage BAuto and its nology Sdn Bhd (ASET). In a fi ling agreed that based on the prevailing
posal, BCorp will cease to be a BGroup will inject its entire group of companies,” said BCorp. with Bursa Malaysia yesterday, circumstances, it was no longer
direct shareholder of BAuto, hold- stake of up to 250.6 million BAuto The enlarged issued share Progressive Impact said ASET had viable to proceed with the project.
ing only a 33.33% stake in the SPV. shares or a 21.88% stake in BAuto capital of the SPV will be about received a formal notice for the “Th e termination will not have
In a fi ling with Bursa Malay- for RM526.26 million or RM2.10 RM360.74 million. mutual termination of the letter any eff ect on the issued and paid-
of award from Danga Bay and had up share capital,” it added.
Boo Kuang Loon is Yong Tai’s new CEO
TH Plantations lowers KPIs for FY16
BY SUPRIYA SURENDRAN Tai said Boo had been ED of the Lee is also the co-founder of
company since Oct 7 last year. Apple Vacations & Conventions BY SUPRIYA SURENDRAN yield for FY16 at 20.32 tonnes per
KUALA LUMPUR: Yong Tai Bhd Currently, Boo is also CEO of Sdn Bhd. hectare (mt/ha), which is lower
executive director (ED) Boo Kuang PTS Properties Sdn Bhd, a property Yong Tai also announced the KUALA LUMPUR: TH Plantations than its FY15 target of 21.15 mt/ha.
Loon , who holds a 9.378% stake in development company he found- appointment of Zoe Tan Eng Eng, Bhd, which is 72% controlled by Th e group has also set a lower
the property developer, has been ed in 2007, with developments in 42, as the company’s chief oper- Lembaga Tabung Haji, has revealed return on equity target of 3.33%
redesignated as chief executive of- Melaka and the Klang Valley. ating offi cer. a lower set of targeted key perfor- in FY16, as compared to 5.5% in
fi cer (CEO) with immediate eff ect. In a separate fi ling with Bursa She will spearhead the sales and mance indicators for the fi nancial FY15.
Boo replaces Wong Liew Lin@ Malaysia yesterday, Yong Tai also marketing activities of the Impres- year ending Dec 31, 2016 (FY16). Nevertheless, it will maintain
Liew Fat Lin, who resigned as announced the appointment of Da- sion Melaka project, and is also the In a fi ling with Bursa Malaysia its dividend policy to distribute
managing director on March 15. tuk Seri Lee Ee Hoe, 51, as non-in- current executive vice-president of yesterday, TH Plantations said it is approximately 50% of net profi t
In a statement yesterday, Yong dependent ED. PTS Properties. setting its targeted fresh fruit bunch to its shareholders.
WEDNESDAY APRIL 13, 2016 • THEEDGE FINANCIAL DAILY HOME BUSINESS 7
Najib: 1MDB a ‘Cabinet reshuffl e
aided bull market
lesson to learn
on Bursa Malaysia’
BY BILLY TOH ic Co-operation and Development
forecasts Malaysia to average that
KUALA LUMPUR: Prime Minister same healthy growth rate, far higher
Action will be taken if any evidence of wrongdoing is found
Datuk Seri Najib Razak opines that than the global average, over the next
his cabinet reshuffl e on July 28, 2015, four years, according to his speech.
which involved the sacking of for- Th e overall size of the capital
BY AHMAD NAQIB IDRIS billion going missing in 1MDB, as the real legacy of 1MDB. Th ey will mer deputy prime minister Tan Sri market expanded to RM2.8 trillion
some claimed, were false. be what is remembered. And history Muhyiddin Yassin, lent support to in 2015, standing at two-and-a-half
KUALA LUMPUR: Th e controver- On the matter, he explained that will show that the shameful politi- the world’s longest bull market to times Malaysian GDP, that’s up
sial 1Malaysia Development Bhd the reality is that there has been an cally motivated allegations made continue on Bursa Malaysia. 150% since 2009 when Najib took
(1MDB), which is under investi- asset rationalisation process, and it to unseat a democratically elected In his keynote address at In- offi ce. Th e Malaysian capital mar-
gation at home and on the inter- is working. Substantial debts have government were false,” he stressed. vest Malaysia 2016 yesterday, Na- ket remains an important facilitator
national front, is a lesson to learn, already been cleared — including To recap, 1MDB, which is whol- jib told the participants including for fi nancing business growth with
said Prime Minister Datuk Seri Najib the recent repayment of a RM950 ly owned by Minister of Finance foreign fund managers that the RM90 billion raised in the primary
Razak, who is chairman of the in- million standby credit facility pro- (Inc), became cash-strapped and then positive stock market senti- market last year, a level consistent
vestment fund’s board of advisers. vided by the government last year. fi nancially stressed when its core ment showed that investors viewed with previous years.
Speaking at the Invest Malaysia assets, including power plants and “strong leadership, political stabil- Najib, who is also fi nance min-
Conference 2016 yesterday, Najib prime land in Kuala Lumpur, did ity and a credible economic plan” ister, also took the opportunity to
In the years to come,
reiterated that action will be taken not generate suffi cient cash fl ow as crucial criteria for investments. mention that the ringgit had re-
if any evidence of wrongdoing is they will be the real to service its borrowings. Formed “It’s very clear that the markets bounded strongly against the US
found. In addition, 1MDB’s board legacy of 1MDB. in 2009, the investment fund bor- like strong leadership, political sta- dollar. “Th e ringgit is Asia’s best-per-
of directors have off ered their resig- rowed over RM45 billion, through bility and a credible economic plan. forming currency this year to date.
They will be what
nation, he added. issue of bond papers abroad, in a Now I know that there are some Th is may surprise my political op-
“Th e Public Accounts Commit- is remembered. short span of fi ve years. who would like you to think that ponents, who said that if I continued
tee (PAC) last week submitted its And history will 1MDB hired Goldman Sachs as our economy is in trouble. in my job the ringgit would fall to
report to Parliament. It identifi ed the principal adviser for the issue “Some who against their own 4.80 to the [US] dollar. Now it’s 3.88
show that the
weaknesses in 1MDB’s structure of several tranches of bonds. Th e principles even asked for foreign to the dollar!” he exclaimed.
and management, and as I said last shameful politically US-based investment bank is cur- intervention! Some who ought to “As Bloomberg reported just
week, we must ensure that lessons motivated allegations rently under probe by the US Fed- know better have been talking Ma- under two weeks ago, overseas in-
are learned,” said Najib, who is also eral Bureau of Investigation and the laysia down. Indeed, they do know fl ows into Malaysia are the biggest
made to unseat a
finance minister, in his keynote US Department of Justice, which are better. Malaysia is sustainable at the in Southeast Asia and Kuala Lumpur
address at the event. democratically elected looking into allegations of money core. Because the facts — including has the lowest volatility among the
He told the audience, which in- government were laundering and corruption at the those that I have just outlined to region’s markets,” he said.
cluded many foreign fund manag- investment fund. you — are indisputable,” Najib said. The prime minister urged the
false.
ers, that there has been and will be Also, 1MDB has changed auditors In highlighting that the funda- crowd to join the foreign investors,
accountability. “We are insistent twice in that fi ve years of operation. mentals of the domestic economy who have already bought RM5.5 bil-
on that in Malaysia. Th e success Th e investment fund embarked remain intact, Najib pointed out that lion worth of domestic stocks in the
of our GLCs (government-linked in asset sale to raise fresh fund for between 2009 and 2015, gross na- fi rst quarter of 2016.
companies) and our years of con- “Its (1MDB’s) assets are more debt repayment. It has sold its pow- tional income had increased nearly Najib also highlighted that the
sistent growth would not be possi- than its liabilities, and those assets er assets to China General Nucle- by 50%, with 1.8 million jobs creat- government had virtually eliminated
ble without it,” Najib added. are real, as can be seen by the prices ar Power Corp for RM9.83 billion ed while maintaining low infl ation. absolute poverty to less than 1%. Th e
Th e PAC has called for an inves- they are fetching. cash. It has also sold the 60% equity Foreign direct investment has been income of the bottom 40% house-
tigation into 1MDB’s former chief “Th e uses to which some of those stake in Bandar Malaysia to a con- growing at more than 22% a year. holds has increased by a compound
executive officer Datuk Shahrol assets will be put will be evident in the sortium consists of China Railway Last year’s gross domestic prod- annual growth rate of 12%, even high-
Azral Ibrahim Halmi and several future, when two vibrant new cen- Engineering Corp Sdn Bhd and uct (GDP) growth was at 5%, slightly er than the national average of 8%,
executives. tres will spring up in Kuala Lumpur, Iskandar Waterfront Holdings Sdn higher than forecast during a time of since 2009 and through the imple-
Najib said Malaysia’s name had at the Tun Razak Exchange not far Bhd for RM7.42 billion cash. turmoil on the global front, making mentation of minimum wage leg-
been unfairly dragged through the from here, and at Bandar Malaysia, Th e asset divestments are ex- Malaysia one of the fastest-growing islation, the government has lifted
mud, noting that the PAC report had in the south of the city,” said Najib. pected to put 1MDB on better fi - countries in the region, said Najib. 2.9 million people immediately out
shown that the allegations of RM42 “In the years to come, they will be nancial footings. Th e Organisation for Econom- of absolute poverty.
AFG shares climb with emergence of shareholder KWAP not worried about SRC’s
having close ties with Temasek ability to repay RM4b loan
BY MEENA LAKSHANA sold her entire shareholding in fi gure in Singapore’s investing fra- KUALA LUMPUR: SRC International
Langkah Bahagia to three individ- ternity. Sdn Bhd is a responsible borrower,
KUALA LUMPUR: Alliance Finan- uals, namely Ong Beng Seng, Ong Tiong Sin, who is better known which is servicing its loan interests to
cial Group Bhd’s (AFG) share price Tiong Sin and corporate adviser as Richard Ong, is the chief execu- Kumpulan Wang Persaraan (Diper-
surged further amid news about Seow Lun Hoo. tive offi cer and co-founder of RRJ badankan) (KWAP) regularly.
emergence of new shareholders Langkah Bahagia controls a Capital. His brother Charles Ong, KWAP chief executive offi cer Da-
after Lutfiah Ismail, a close asso- 51% equity stake in Vertical Th eme also a co-founder of RRJ Capital, tuk Wan Kamaruzaman Wan Ahmad
ciate of former finance minister Sdn Bhd — the largest sharehold- was once Temasek’s head of in- said SRC International had also ful-
Tun Daim Zainuddin, sold her er of AFG holding a 29.06% stake. vestment for over 10 years. fi lled all conditions attached to the
51% equity interest in Langkah Meanwhile, Singapore’s state-con- It is said that Temasek has in- loan, which has to repaid in 10 years.
Bahagia Sdn Bhd, which has an trolled sovereign wealth fund Te- vested nearly US$1 billion (RM3.89 “Currently, they are paying the
effective 14.8% stake in the bank- masek, through its unit Duxton billion) in RRJ Capital. RRJ Capital interests on their loan, which come Wan Kamaruzaman: Currently, they
ing group. Investments Pte Ltd, holds the and Temasek are co-investors in in two tranches of RM2 billion each, are paying the interests on their loan,
AFG’s share price rose as high remaining 49% in Vertical Th eme. several ventures in China. due in 2021 and 2022, respectively,” which come in two tranches of RM2
as 4.31% in yesterday’s morn- Th e purchase would give the With the close ties between he told reporters on the sidelines of billion each, due in 2021 and 2022,
ing session to an intraday high trio a 14.8% stake in AFG. Tiong Sin and Temasek, eyebrows the Invest Malaysia 2016 here yes- respectively. Photo by Haris Hassan
of RM4.31. The stock closed at Th e changes in shareholding are raised on the trio’s investment terday.
RM4.29 — the highest level since spark speculations on what could in AFG. According to the terms of the of KWAP stakeholders.
July last year, up 11 sen or 2.63%, possibly be brewing in the banking Langkah Bahagia is the largest loan, the company is required to SRC International had earlier em-
with 3.6 million shares changing group in the near future. Many are shareholder of AFG, followed by service interests on the loan in the phasised that the entire RM4 billion,
hands. curious to know whether Temasek the Employees Provident Fund, first five years, and interests and lent by KWAP on normal commercial
Th e Edge Financial Daily re- was being off ered to buy the block which recently upped its stake to principal in the remaining fi ve years. terms, was fully accounted for in its
ported yesterday that former Kuala of shares in Langkah Bahagia. 16.44% on April 6, Malaysia Focus Wan Kamaruzaman said the balance sheet in accordance with
Lumpur City Corp Bhd and Nomad Tiong Sin may not ring a bell in Investment at 4.82% and Med- loan was guaranteed by the gov- standard accounting and govern-
Group Bhd board member Lutfi ah Malaysia, but he is a well-known imetro Sdn Bhd at 3.67%. ernment to safeguard the interest ance practices. — Bernama
8 HOME BUSINESS WEDNESDAY APRIL 13, 2016 • THEEDGE FINANCIAL DAILY
QL Resources to invest up EcoWorld to
launch maiden
project in BBCC
to RM100m in FamilyMart
within two
months
BY BILLY TOH
Th is translates into RM15m to RM20m per annum for fi rst fi ve to six years
KUALA LUMPUR: Eco World De-
velopment Group Bhd (EcoW-
BY TAN SIEW MUNG record in other countries, profi t- neighbouring countries, such as venience store operators, 7-Eleven orld), which is confident of meet-
ability is anticipated to be in the Th ailand. Malaysia Holdings Bhd and Bison ing its sales target of RM4 billion
KUALA LUMPUR: QL Resources seventh year, barring unforeseen “Th ere are also opportunities for Consolidated Bhd. for the financial year ending Oct
Bhd has budgeted for an investment circumstances,” it said, adding that diff erentiation from current play- An RHB Research analyst com- 31, 2016, said the maiden launch
of RM100 million for its venture into the group’s primary target is to grow ers to serve consumers better. We mented that the plan may not bode of its Bukit Bintang City Centre
the FamilyMart convenience store the business and meet consumer will differentiate on quality and well for QL in near term as conven- (BBCC) mixed development here
chain. And profi t is expected to be expectations. [the] variety of food off erings, and ience stores are a completely new is expected to be within the next
in the seventh year of investment. Unfazed by concern about stiff consumer experience,” it added. business for the group, and it takes two months.
QL told Th e Edge Financial Daily competition, QL is confi dent of the Meanwhile, QL emphasises that time for the group to improve busi- EcoWorld president and chief
the group projects the investment to new venture, based on the popu- it does not see this move as a diver- ness effi ciency, margins and gain executive offi cer Datuk Chang Khim
be around RM80 million to RM100 lation demographics, per capita sifi cation, but an extension of the market share. Wah said it had already received
million for the fi rst fi ve to six years. consumption and lifestyle trend group’s food manufacturing and As competition will be intensifi ed positive responses from buyers to
Th is translates into an average of in Malaysia. distribution business. naturally when FamilyMart enters the 45-storey block with strata of-
RM15 million to RM20 million a “Today’s consumer lifestyle in- “Convenience stores are a scale- into the market, he anticipates Bi- fi ces in BBCC, known as Th e Stride,
year, which is less than 10% of QL’s creasingly demands convenience able business and this is a synergis- son to be the winner simply because which is targeted at small and me-
annual capital expenditure. with a comfortable and enjoyable tic way to scale up our Malaysian Bison has better margins as it does dium enterprises.
Th e investment amount will be experience. Th e convenience and business in the long term,” it added. not need to pay loyalty fees, and it The launch will be followed
funded via internally generated proximity retail market is growing, Nonetheless, QL’s share price has also optimised its operating by two blocks of serviced resi-
funds. and there’s still opportunities for fell after the announcement of the hours eff ectively as only 20% of its dences comprising 680 units of
Th e group opines that the con- diff erentiation and additional play- new venture. It fell 12 sen or 2.7% stores are operated 24 hours a day. entry-level apartments with built-
venience store business is expected ers,” it said, adding that there will to close at RM4.32 yesterday. In terms of expansion plans, he ups starting from 450 sq ft. The
to have a long gestation period, but be demand for convenience-store Analysts have raised concerns said 7-Eleven has a more aggres- units are targeted at singles and
it believes it will contribute posi- chains like FamilyMart. about QL’s move into the conven- sive expansion plan as it is going young urbanite families who pre-
tively to shareholder value in the QL noted that the number of ience store business, which is al- to open 200 stores per year, while fer a vibrant city lifestyle with pub-
medium to long term. population per convenience store ready facing intense competition FamilyMart will only expand about lic transport connectivity, work,
“Based on FamilyMart’s track is not high when compared with from the two largest domestic con- 60 stores per year. shopping and entertainment right
at their doorsteps.
“BBCC’s location at the heart of
the [Kuala Lumpur] Golden Tri-
Bank Muamalat may opt for listing, says CEO
angle provides us with unrivalled
opportunities to create a one-of-a-
kind fully integrated development
off ering superb connectivity, com-
BY KAMARUL ANWAR stake in Bank Muamalat; the central year because of higher cost of funds bined with world-class shopping,
bank has instructed the conglom- and impairment charges. It had a entertainment, leisure, residential
KUALA LUMPUR: DRB-Hicom erate to trim it to 40%. Th e merger total asset size of RM22.44 billion as and office propositions, to both
Bhd’s unsuccessful disposal of talks with Affi n Holdings Bhd did at the end of the last fi nancial year. local and international buyers,”
nearly half of its shareholding in not bear fruit in 2013, while the one On the bank’s recently started Chang told a news conference on
Bank Muamalat Malaysia Bhd may with Malaysia Building Society Bhd wealth management business, its the sidelines of the 12th Invest Ma-
lead the Islamic bank to a listing. to form a mega Islamic bank did not vice president and head of wealth laysia 2016 yesterday.
Th e bank’s chief executive offi cer work out as well after negotiations management Nur Ain Ramli said “We aim to work closely with all
(CEO) Datuk Mohd Redza Shah Ab- fell through in February. the group wants to make the divi- our partners, namely UDA Hold-
dul Wahid yesterday said getting For the time being, he said Bank sion contribute 10% to 20% of its ings Bhd, the Employees Provi-
Bank Muamalat to be listed is certain- Muamalat is working on improving revenue in three years. dent Fund, Japan’s Mitsui Fudos-
ly an alternative for the shareholders its performance and diversifying its Th e bulk of the revenue from this an [Co Ltd], Zepp Hall Network
to add value to their investment once product off erings, but it is main- segment, she said, should come Inc and The Ascott Ltd, to make
market sentiment picks up again. ly “business is as usual” as far as from its gold business. In FY15, gold BBCC a significant catalyst for
“Th e market is not right for a list- the management is concerned. products made up about 30% of the helping Kuala Lumpur achieve its
ing at the moment, but when the Due to the softer economy, it will Mohd Redza: When the market turns, wealth management business, but aspirations of becoming a global
market turns, we will look at more see a moderate loan growth in the we will look at more alternatives for the Bank Muamalat wants to double city,” he said.
alternatives for the shareholders. financial year ending March 31, shareholders. Photo by Sam Fong the composition in FY17. Chang also said EcoWorld’s plan
“I wouldn’t say a listing is a defi - 2017 (FY17). While the launch of Muamalat to subscribe to up to 30% of Eco
nite plan, [but it is] an alternative “For the last fi nancial year, we Gold-I was offi ciated yesterday, she World International Bhd’s (EWI)
that the shareholders have,” Mohd had [a] growth of about 7%. Our probably 30% to 40% from the cor- said the product had been off ered enlarged issued capital had seen
Redza told reporters after launching growth will be moderate going for- porate sector,” said Mohd Redza. at all 61 Bank Muamalat branches progress with the approval of the
Muamalat Gold-i, a syariah-compli- ward. We expect profi ts to main- Bank Muamalat made a net profi t since Jan 31. More than 80kg of the Securities Commission Malaysia
ant physical gold bar for investors. tain as in the previous year, driven of RM89.28 million in FY15, which gold was sold since, representing for EWI’s proposed initial public
DRB-Hicom holds a 70% equity mainly by consumer fi nancing and was 41.09% lower than the previous transactions worth RM14 million. off ering.
Chang said it still requires the
approval of shareholders, but the
group is confi dent that the approval
Kossan to continue double-digit growth momentum in FY16
will be obtained.
EWI’s three projects in London,
BY AHMAD NAQIB IDRIS ity utilisation with order overfl ow Kossan’s five-year expansion tively, which are in the vicinity of the United Kingdom, and one pro-
from FY15. plan includes the new plant on a its existing plant. ject in Parramatta, Sydney, Australia
KUALA LUMPUR: Glove maker “Th is year, we’ll see double-digit 56-acre (22.66ha) tract, which will Th e group is eyeing to set up a had collectively secured cumula-
Kossan Rubber Industries Bhd, [net profi t] growth. But of course be developed over four phases. research and development centre tive sales of £712.5 million (RM3.95
which saw its net profi t jump 40% it won’t be as high as last year be- Th e following three phases will be on the 2.5-acre tract, which will billion) as at Jan 31, 2016.
year-on-year to RM203.26 million cause we have no new [production] completed in 2017, 2018 and 2019 also include a training centre and “The close association with a
in the fi nancial year ended Dec 31, capacity except from last year’s respectively, with full completion an engineering centre. successful international brand also
2015 (FY15), expects to sustain its overfl ow,” he told reporters on the by 2020. “We have allocated over RM100 gives us a signifi cant competitive
double-digit growth momentum in sidelines of the 12th Invest Malay- Kossan managing director and million for capital expenditure for edge in marketing our projects to
FY16, although the growth would sia 2016 yesterday. chief executive offi cer Datuk Lim our expansion plans for the year,” our local Malaysian customers. It
be smaller. Yip sees signifi cant growth in Kuang Sia said the group is in the he said, adding that Kossan usually will also potentially open up new
Kossan general manager Edward earnings for FY17 and FY18 when a process of acquiring two parcels of allocates between RM100 million markets for us to sell our invest-
Yip said net profi t growth for FY16 new plant in Bestari Jaya, Selangor land in Jalan Meru, Klang, measur- and RM150 million per year for its ment-grade products to interna-
will be supported by higher capac- starts operating in September 2017. ing 38 acres and 2.5 acres respec- expansion. tional buyers,” added Chang.
WEDNESDAY APRIL 13, 2016 • THEEDGE FINANCIAL DAILY HOME BUSINESS 9
Worst over for Liow: Airfares
Daim’s son now
should not
a substantial
go up with
shareholder of Malaysian property
implementation
Reliance Pacifi c
of new fees
market — Mah Sing
BY SUPRIYA SURENDRAN
KUALA LUMPUR: Datuk Md PUTRAJAYA: Transport Minister Da-
Wira Dani Abdul Daim, the son tuk Seri Liow Tiong Lai said airfares
of former fi nance minister Tun should not be increased when the
Daim Zainuddin, has emerged new service charges on airline com-
as a substantial shareholder of panies are implemented on Friday.
Reliance Pacifi c Bhd, after up- Th is is because the increases in
Demand for housing remains healthy, says executive director
ping his stake in the company the charges only involves the ad-
to 12.29%. ministration and implementation
A fi ling with Bursa Malaysia costs of the Department of Civil
yesterday showed that Md Wira BY AHMAD NAQIB IDRIS Aviation (DCA) and not airfares,
Dani, together with his mother he said.
Toh Puan Mahani Idris, acquired KUALA LUMPUR: Mah Sing Group The new aviation fees, which
66.97 million shares, which rep- Bhd, the country’s second-largest Ng: If you look at the house price have not been reviewed for over
resent a 7.8% stake in the com- property developer by sales value, index, it has moderated to a more 40 years, also would not burden
pany, last Friday via off -market said the worst is over for Malaysia’s sustainable level from 11.8% to (a) airline companies, he said.
transactions. property market as various market single-digit growth of 5.8% now since “I don’t think this will increase
Based on the closing price of indicators point to a bottoming out the cooling measures were introduced airfares as the rate [of increase] is
Reliance Pacifi c shares on last of the market. in 2012. Photo by Shahrin Yahya not too high,” he said when asked
Friday of 39 sen, the 66.97 mil- Its executive director Datuk Ste- about the impact of the implemen-
lion shares purchased have a ven Ng said the indicators include tation of new fees on airfares after
market value of RM26.12 million. the slowing down of a contraction attending the ministry’s Excellence
With the purchase, Md Wira in residential property transactions Service Award 2015 ceremony here
Dani and Mahani now have an and moderating house prices. yesterday.
indirect 12.29% stake, or 105.49 “If you look at the house price Th e proposed increases in avia-
million shares, in Reliance Pa- index, it has moderated to a more tion fees and service charges include
cifi c via their private vehicle Ibu sustainable level from 11.8% to [a] usage of airspace, air traffi c facilities
Kota Developments Sdn Bhd. single-digit growth of 5.8% now as well as pilots’ fl ight licence.
Reliance Pacifi c is well known since the cooling measures were Under the proposal, air navi-
in the tourism sector as it owns introduced in 2012,” he told a press gation fl ight charges will increase
the Avillion Hotel Group, which conference on the sidelines of the tial segment, demand is still very “Last year, we revised our target from the current fi ve sen per nau-
operates a chain of luxurious ho- 12th Invest Malaysia 2016 here healthy, outstripping supply. Th ere in August from RM3 billion, which tical mile to 50 sen for light aircraft
tels and retreats in Port Dickson, yesterday. is no element of speculation. For- was set at the beginning of the year. not exceeding 2,500kg.
Melaka, Janda Baik and Kuala “We believe the current level is eign buyers only account for less We were all prepared for the goods For bigger aircraft such as Airbus
Lumpur in Malaysia, as well as healthy because we fi nd that peo- than 2% of the total property market and services tax implementation, A320/A330 and Boeing B737/B777,
Bali in Indonesia. ple who are buying now are either transactions, unlike what you see in but we did not expect the extent the cost will rise to RM1 to RM2.50
The group’s chief executive buying to stay or for investment,” Hong Kong or Singapore,” said Ng. of the impact of the slump in oil per nautical mile compared with
offi cer Datin Irene Tan and her he added. “And with the ringgit at this lev- prices and the ringgit on consumer 10 sen to 25 sen currently, while
husband Datuk Gan Eng Kwong Ng is of the view that the fall in el, we will probably see some in- sentiment. for planes exceeding 135,000kg,
are the major shareholders of residential property transactions vestors starting to look into Malay- “So, we revised the target down the rate will increase from 30 sen
Reliance Pacifi c with an indirect has hit the bottom, given that the sia,” he added. Th e ringgit closed to RM2.3 billion for 2016. We are to RM3 per nautical mile.
46.21% stake in the company held pace of decline slowed in the fourth 0.23% higher at 3.88 to the US dol- maintaining this target until we see Liow said the implementation
through Reliance Holdings Sdn quarter of 2015 (4Q15), compared lar yesterday. more signs of improvement in the of new fees was to provide the best
Bhd and nominees. with 3Q15 and 2Q15. Despite the slightly more posi- market,” said Ng. air transport system for the coun-
Reliance Pacifi c’s share price He added that demand for hous- tive view on the local property mar- Mah Sing is confi dent of meeting try, besides off ering good services
ended the day down two sen, ing remains healthy, especially in ket, Mah Sing maintained its sales its sales target for 2016, despite scal- to consumers.
or 5.06%, to 37.5 sen yesterday, the aff ordable segment, noting that target of RM2.3 billion for 2016, ing back its launches in 2015 and “Some people say prices will go
with a market capitalisation of speculative activity in the property similar to its target for 2015, after 2016 as it still has enough ongoing up to 1,000%. Before it was fi ve sen,
RM321.96 million. market is at a lower rate now. a revision from its original target of projects to support its performance now it is expected to go up 50 sen.
“For the affordable residen- RM3 billion at the start of the year. for the year, he added. “But if we look in terms of value,
we are providing better services and
assets, and air control equipment
are more sophisticated,” he said.
Guinness Anchor quarterly profi t jumps 29%
Liow said a meeting with airline
operators was held yesterday to
get their feedback and grievances
before an offi cial announcement
THE EDGE FILE PHOTO
BY KAMARUL ANWAR ings through more strategic pro- or 67.79 sen a share from RM170.17 is made today.
curement,” he added. million or 56.33 sen a share, thanks Asked whether there were hid-
KUALA LUMPUR: Guinness An- Th e Irish brewer’s net profi t for to higher sales and improved cost den charges, Liow said: “We are very
chor Bhd (GAB), which saw its net the January to March 2016 period effi ciency in commercial spending. transparent as the DCA has issued
profi t for the three months ended rose to RM50.85 million or 16.83 Revenue for the same period in- a list on what are being charged
March 31, 2016 jump 29% from a sen a share from RM39.46 million creased 3% to RM1.39 billion from and what are not.”
year ago, said it is cautious of in- or 13.06 sen a share a year ago. RM1.35 billion a year ago, mainly He also explained that the new
creasing prices as this will push GAB attributed the improved driven by higher sales. charges needed to be implemented
consumers away from duty-paid quarterly net profi t to it employing On prospects, GAB said the to comply with the standards set by
products to contraband. eff ective strategies and increasing group will continue to focus on the International Civil Aviation Or-
“With the recent increase in ex- business effi ciency. delivering its key strategies for the ganization (ICAO) in order to trans-
cise duties for alcohol products Revenue grew 5% to RM458.91 fi nancial year, while staying agile form the DCA into a statutory body.
effective March 1 and subdued million from RM437.33 million, and adapting quickly to any chang- He said it was a process that the
Malaysian consumer sentiment, mainly due to higher sales volume es in the environment. DCA had to go through to ensure
the group continues to operate in and better brand mix on the back- “Following a resilient fi rst nine the assets and services comply with
a challenging environment,” GAB drop of good festive performance months’ performance, the group ICAO standards before being cer-
managing director Hans Essaadi during Chinese New Year. Th is was remains confi dent that it will de- tifi ed as a Civil Aviation Authority
(pic) said in a statement yesterday. partially off set by the implementa- with Section 168(1) of the Compa- liver a good performance for the (CAA).
“[However,] we expect to main- tion of the goods and services tax. nies Act, 1965. As such, its current fi nancial year ending Dec 31, 2016,” “In line with the request from
tain the momentum going for- On Nov 25 last year, GAB an- fi nancial statements will be for a it added. ICAO, several charges and new fees
ward by leveraging on Heineken’s nounced that its fi nancial year end period of 18 months, from July 1, GAB shares, which have gained must be imposed to show the gov-
strong global brands’ activation will be changed from June 30 to Dec 2015 to Dec 31, 2016. by about 8% this year, closed un- ernment’s commitment to upgrade
platforms, and supported by an ef- 31 to coincide with the fi nancial For the nine-month period end- changed at RM13.82 yesterday, DCA to CAA,” he said, adding that
fi cient global supply chain, which year of its ultimate holding com- ed March 31, 2016, GAB saw its net with a market capitalisation of ICAO would carry out an audit on
opens opportunities for cost sav- pany Heineken NV and to comply profi t rise 20% to RM204.79 million RM4.18 billion. the DCA in May. — Bernama