Wednesday, 23 April 2014

1MDB shows FY13 profit due to property revaluation gain

1Malaysia Development Bhd has relied on revaluation gain of its property assets to drive property growth for the financial year ended Mar 31, 2013. The detailed accounts released by Companies Commission showed the earnings rise was driven by property revaluation gains totalling RM2.7bn, without which 1MDB would have posted a loss of RM1.5bn, according to Reuters report. Reuters said the fund has been revaluing up its property assets yearly over the last three years, resulting in real estate portfolio to be valued at RM6.2bn by the end of the reported financial year. (Malaysian Reserve) 

MBSB sees higher cost-to-income ratio

Malaysia Building Society Bhd (MBSB) expects its cost-to-income ratio which stood at 18.3% last year, to increase by 4% to 5% over the next two years as its move to become a full-fledged bank, its top executive said. "As we move towards compliance to be a bank, the cost of compliance is going to increase. The bulk of the cost is from compliance costs, while funding cost is also going to increase as we take in deposits," its president and CEO Datuk Ahmad Zaini Othman said. 
  • However, he said, the increase in operating expenses over operating income is still lower than the industry's average. MBSB's cost-to-income ratio has been hovering at 18% to 20% over the last 24 months and is still lower than the industry's average of 38%-40%. "However, we foresee cost-to-income ratio to increase slightly this year as a result of costs of compliance, and other costs relating to prudential measures. Realistically, we're looking at 18% to 23% this year," Ahmad Zaini told. (The Sun) 

Talks on restructuring of Selangor water industry has reached final stage, says Minister

The talks on restructuring of the Selangor water industry have reached the final stage, said Minister of Energy, Green Technology and Water, Datuk Seri Maximus Ongkili. He said once the Selangor state government and the four companies involved signed the memorandum of understanding (MOU), the Langat 2 water treatment plant project and its distribution system (LRAL2) would begin. "After the MOU is signed, the LRAL2 project would begin from the water treatment plant to retention pond and distribution. This is a long-term preparation plan. Negotiations have been delayed for quite some time now," he told. (Bernama) 

Sarawak Oil Palms' unit to build vitamin E plant

Sarawak Oil Palms Bhd has signed an agreement with the Malaysian Palm Oil Board to build a palm phytonutrient production plant in Bintulu, Sarawak. The plant is slated for completion in the second quarter of 2015, MPOB said. Under the agreement, MPOB will undertake the commercialisation of palm phytonutrient using its own technology to produce carotenes and palm vitamin E concentrates - tocopherols and tocotrienols. (Malaysian Reserve) 

Properties transacted declined by 10.9% but total value rose 6.7% in 2013

The various cooling measures on the property sector dampened transactions last year, with the volume of properties bought and sold dipping by 10.9% from 2012, even as total value rose 6.7%, a sign that prices did not come down. According to the Property Market Report 2013 released by the Valuation & Property Services Department, there were 381,130 transactions in the country in 2013 compared with 427,520 the year before, although their value climbed to RM152.37bn from RM142.84bn. The all house price index edged up to 192.9 against 172.8, and all house prices to an average of RM266,304 from RM241,591. 
  • The residential subsector retained the lion’s share of the market at 64.6% of volume and 47.3% of value. Last year saw 246,225 residential property transactions and worth RM72.06bn, which declined 9.7% and rose 6.3%, respectively. There was a slight decrease in the sales of new launches but the number of overhang properties also dipped. 
  • In the primary market, new launches shrunk after three consecutive years of growth, with 48,617 units of new launches rolled out from 57,162 in 2012. Some 45.1%, or 21,904, of these units were sold. (StarBiz) 

Cypark Resources aims to double its renewable energy production to 60MW by 2015

Cypark Resources Bhd aims to double its renewable energy (RE) production to 60 megawatts (MW) by 2015 from the 30MW now. Group CEO Datuk Daud Ahmad said on Tuesday the company has five RE parks nationwide, generating up to 30MW to date. "With 13 more landfills to be developed in the future, the target of 60MW is achievable," he said after the AGM. Daud said the company, which currently faced quota limitation, aimed to secure 20MW from the Sustainable Energy Development Authority Malaysia (SEDA)," he said. 
  • He said Cypark's business transformation programme aimed to have about two-thirds of its revenue and profit margin from environmental and RE business by next year. (StarBiz) 

SeaceraGroup Bhd's 60%-owned subsidiary SPAZ Sdn Bhd had received a letter of award (LoA) worth RM151.9m from Malaysia Airports Holdings

SeaceraGroup Bhd's 60%-owned subsidiary SPAZ Sdn Bhd had received a letter of award (LoA) worth RM151.9m from Malaysia Airports Holdings Bhd to design, construct, complete and commission the Malaysia Airports Academy and other associated work at the KLIA in Sepang. Construction works will commence in Apr 2014 and are expected to be completed by Apr 2017. The LoA had boosted the total contract value of SPAZ to RM339.9m. (Malaysian Reserve)