Datuk Abdul Farid Alias CEO baru Maybank

Sarawak the Asian Economic Dynamo

Ekonomi Malaysia 2013

CMS to build new plant and further increase market dominance

New plant, increasing cement production to spur growth for CMS

Borneo Post July 24, 2013, Wednesday

 Photo shows an aerial view of CMS Clinker’s facilities. RHB Research notes that the plant has been operating without any problems since March, projecting annual cost savings of RM15 million each from efficiency improvement, and switching to a local low calorific value coal source.

KUCHING: With a string of major development projects either underway or in the pipeline, busy years ahead is anticipated for construction players in Sarawak, in particular for Cahya Mata Sarawak Bhd (CMS).

According to RHB Research Institute Sdn Bhd (RHB Research) in a report on the group yesterday, growth in demand for cement will continue to push CMS forward.

To note, cement demand in 2012 was reported to be at 1.64 million tonnes compared to the grinding capacity of 1.6 million tonnes.

In fact, CMS had to import some 95,000 tonnes of cement last year to cope with demand.

“Based on conservative growth estimates of five per cent for 2013 to 2014, and a constant growth of 2.5 per cent from 2015 onwards, the group will be importing some half a million tonnes of cement to meet the shortfall in the state by 2020, although the actual deficit may be greater than estimated,” it highlighted in the report.

“This led to the board approving proposals for a new cement grinding line with a one million tonne per day (tpy) capacity, which will require a capital expenditure (capex) of RM150 million to cater to demand,” it stated.

To note, the plant’s management confirmed the construction of this new plant, which will take 18 to 24 months and is slated to begin early next year.

This was on the back of a RM78 million investment in plant upgrade works for wholly owned subsidiary CMS Clinker Sdn Bhd (CMS Clinker), which will increase the group’s production to 2,800 tonnes per day (tpd), or 896,000 tpy.

RHB Research noted that this particular upgrade had been delayed owing to technical hiccups relating to equipment supply.

“We are relieved to learn that these issues have been resolved and that the plant has been operating without any problems since March,” it stated.

“Meanwhile, we are projecting annual cost savings of RM15 million each from efficiency improvement, and switching to a local low calorific value coal source.

“The additional internally-produced clinker will also boost CMS’ bottomline from 2014 onwards. All in all, we are confident that this division – which recorded a loss of RM29 million as a result of the prolonged shutdown in financial year 2012 (FY12) – is indeed well on track to return to the black in FY13.”

To note, the group supplies about half of Sarawak’s high quality asphaltic concrete (premix) and bitumen emulsion.

It is also a substantial player in stone aggregates and a trader of various types of construction materials within Sarawak.

With the government setting its sights on the state’s infrastructure development, the research house expect the demand for construction-related materials to be well supported.

Separately, the group maintains approximately 4,800km of state roads and 680km of federal roads via two separate concession agreements expiring in December 2017 and August 2018 respectively.

RHB Research further explained that CMS’ share price has surged 75.4 per cent since its March 2013 initiation report entitled ‘Set To SCORE’.

“We believe the group’s cement division remains its c’rown jewel’ given its stranglehold on Sarawak’s cement market.

“Nonetheless, its market cap only represents an approximate estimate of the full value of its cement division, if we apply a multiple similar to its regional peers based on FY14 earnings.”

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Maybank grossly overpaid for BII acquisition?

Amirsham Maybnak CEO in 2008

Maybank lost billions in BII acquisition’

Lisa J. Ariffin | July 23, 2013

DAP's Tony Pua urges Prime Minister Najib Tun Razak to look into Maybank's acquisition of Bank International Indonesia to determine possible reckless abuse of power. UPDATED KUALA LUMPUR: Maybank Berhad has incurred losses amounting to billions of ringgit since its record acquisition of Bank International Indonesia (BII) in 2008, a DAP MP claimed today. Petaling Jaya Utara MP Tony Pua today disclosed that Maybank had “quietly” disposed of 5,065,380,000 ordinary shares to a third party investor on June 20 at Rp355 per share – a significant 21.9% lower than the cost of acquisition. “This 9% (of the issued and paid-up share capital) stake sale will immediately translate to an estimated realised loss of RM157 million. And if these loss is extrapolated, Maybank could be looking at a potential loss of RM1.74 billion,” Pua told a press conference today. He also said that Maybank was “staring at a staggering paper losses of RM2.5 billion” as a result of the acquisition, namely when BII shares closed at Rp315 or 30.7% drop from the acquisition price as of last week. In 2008, Maybank acquired BII at the cost of RM8.25 billion at approximately Rp455 per share and was flayed by critics for paying more than four times the asset value of BII. “In reality, as at Dec 31, 2012, Maybank has already made impairments of RM1.62 billion for the acquisition. This is from Maybank records itself,” he said. He noted that since the acquisition, the return on Maybank’s investment has been abysmal at -0.17%, 1.86%, 2.31% and 6.27% in 2009, 2013, 2011 and 2012 respectively. “Despite the above, in the announcement to Bursa Malaysia, Maybank has claimed that ‘the disposal will not result in any material financial impact to the group’,” Pua said. “However, evidence points to the contrary and in the light of billions of ringgit of losses incurred by Maybank… it is crucial now for Maybank to come clean,” he added, referring particularly to the disposal of 9% of shares. He then explained that Maybank was under pressure to sell its stake in BII due to the Indonesian stock market regulation which requires that at least 20% of BII’s shares to be “free float”. “This condition was imposed by the Indonesian authorities and accepted by Maybank when BII was acquired in 2008,” he said. “More losses will likely be realised when Maybank is forced to sell another 8.3% of BII shares to third parties by Dec 31, 2013, the new extended deadline granted,” he added. ‘Good for the country’ Pua then urged Prime Minister Najib Tun Razak, who is also Finance Minister, to “personally look into this matter”. “We call upon (Najib) to personally look into the matter, whether the cause of losses was ‘a bad business decision’ or possibly a reckless abuse of power,” he said. “Whichever the cause, action must be taken against those found at fault so that the rakyat’s interest in Maybank Bhd will continue to be protected.” In 2008, then prime minister Abdullah Ahmad Badawi defended the acquisition claiming that “the government is confident that the management of Maybank and its board of directors have made the purchase not only in the best interest of Maybank but also for the country”. Najib had insisted then that the “move was still a good one for the country”. In 2012, Maybank chairman Megat Zaharuddin Megat Mohd Nor told Reuters that Maybank is “not going to sell down if we’re going to make a loss compared to what we thought it should be”. Zaharuddin, who is also BII’s president commissioner, said the bank will not sell BII’s stake below Rp510 per share, the price it paid to buy the bank in 2008 before discount.

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Kemasukan pelancong ke Sarawak meningkat 7.2 peratus

Borneo Post on March 11, 2013, Monday

KUCHING: Kemasukan pelancong ke Sarawak men­ingkat sebanyak 7.2 peratus tahun lepas berbanding ta­hun sebelumnya kata Ketua Pegawai Eksekutif Lembaga Pelancongan Sarawak (STB) Datuk Rashid Khan.Beliau memberitahu, jum­lah kemasukan pelancong ke Sarawak mencatat peningkatan yang amat memberangsang­kan iaitu sebanyak 4.07 juta pada 2012 berbanding tahun sebelumnya.

“Untuk kemasukan pelan­cong asing sahaja ia meningkat 12.4 peratus daripada jumlah keseluruhan pelancong tahun lepas hasil promosi, program dan aktiviti yang kita adakan di negeri ini,” katanya.

Beliau berkata demikian ketika berucap pada Program Apresiasi Media Berbasikal di Sama Jaya Forest Park, Tabuan di sini semalam.

“Malah, kita turut memu­lakan tahun ini dengan baik. Dalam laporan awal tahun ini kita telah menerima anugerah perak pada Anugerah HSMAI Adrian 2012 di New York,” tambahnya.

Pada masa yang sama Rash­id memberitahu, Festival Muzik Hutan Hujan Sedunia (RWMF) turut mendapat anugerah untuk kali keempat dalam festival antarabangsa sebagai antara 25 yang terbaik pada 2013.

“Ini adalah hasil sokongan para media yang bersama-sama dengan STB mempromosikan keunikan Sarawak,” katanya sambil menambah bahawa STB akan meneruskan ker­jasama dengan media di negeri ini.

Sementara itu, Pengarah Urusan Biro Konvensyen Sarawak (SCB) Mike Can­non mempelawa para media di Sarawak untuk turut serta dalam anugerah MICE pada tahun ini.

“Antara hadiah yang bakal dimenangi adalah wang tunai RM12,000,” katanya.

Hadir sama pada majlis itu, Pengarah Operasi Pusat Konvensyen Borneo Kuching (BCCK) Eric Van Piggelen, Pengurus Wilayah Sarawak Forestry Corporation Semilan Ripot dan tetamu kehormat lain.

Dalam program itu pihak media diajak bersama-sama mengayuh basikal di sekitar kawasan Pending untuk meng­galakkan atau mempromosikan kawasan itu.

Selain itu, ia bagi merapatkan lagi hubungan STB dan agensi-agensi berkaitan dengan pihak media yang ada di negeri ini.

D-Valley Mall a shopping haven once completed

Posted on March 3, 2013, Sunday

NEW INVESTMENT: Donald (left) talks to a potential buyer during the soft launch of the D-Valley Mall, Apartment and Hotels at the realty office showroom.

KUCHING:  D-Valley Mall, Apartment and Hotels, which is strategically located at Jalan Tun Razak here, will become a true shopping haven upon its completion in 2016.

Situated at the prime city centre area in the midst of rapid commercial and residential development surrounding its catchment area, the modern architecture mall complimented with a seven-storey service apartment and hotel, will be looking to attract medium and above market to suit consumers various financial strength.

Encompassing almost six acres, D-Valley mall offers four designated retail floors occupying approximately a total built-up area of 900,000 square feet (sq ft), about 460,000 sq ft of floor area and a total of 400,000 sq ft area to let out.

The ground floor will accommodate either a hypermarket or supermarket, complimented with various renowned food and beverage outlets facing the main entrance. The food court will be situated on the second floor for the convenience of shoppers. A children amusement park measuring about 12,000 sq ft will be situated at the third floor while some 30,000 sq ft at the fourth floor will accommodate a cinema.

Hotel amenities such as function rooms, fitness/spa centre and poolside will be placed at the fourth levels of the mall. Fifth floor onwards are dedicated to hotel and apartment units totalling 258 rooms. The property is owned by MD Realty & Development Sdn Bhd (MD Realty), a subsidiary of the MD Group of Companies.

“Every aspect of the mall is being meticulously looked into at its planning stage for the past one year. Each floor has proper zoning area so that retail outlets are in order and ensuring the floors are constantly vibrant.

“Negotiations are presently on-going with reputable international and local retail brands, promising a wide spectrum of comprehensive consumer preferences,” Group chairman Donald Lawan told a press conference at MD Realty office here yesterday.

Promising an ideal and convenient shopping environment, the former Bukit Begunan assemblyman said three naturally ventilated basement parking bays for about 1,500 vehicles will be built. Each basement has its own entrance and exits for easy access while avoiding traffic congestion. Entrances are available via Jalan Tun Razak, Jalan Wan Alwi and Jalan Chawan.

D-Valley Mall, with its gross development value (GDV) of about RM400 million, will offer investors an opportunity to convert their surplus funds into lucrative tangible investments as owners of a commercial property in a fast appreciating sector.

“Given the tremendous potential for appreciation in value of commercial properties in Kuching, the retail density provided by the existing shopping malls in this city is still much lower than that of other Malaysian cities.

“Investors can expected to benefit whether or not they utilise the shop units they purchase as similar properties in other parts of the country could fetch a much higher commercial value,” Lawan continued.

He assured that the property management will have control of about 70 per cent of the area while the remaining 30 per cent are those who lease back their properties to the mall. Investors will be given a nine-year initial limit so that they could capitalise on the appreciation in value.

A total of 560 units of retail outlets, with size ranging from 114 sq ft to 782 sq ft, are offered for sale at the mall with prices ranging from an affordable RM116,000 onwards per unit. The duration of the strata title is 99 years. Exclusive studio apartment units are available for sale and leased back to the management for 25 years with a guaranteed return of six per cent annually for the first three years. Buyers are also entitled to six-night complimentary stay at the hotel per year. The studio unit apartments are priced from RM290,000.

Malaysia has 30 USD Billionaires

3 more join Malaysia’s billionaires’ club

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KUALA LUMPUR: Malaysia now has 30 billionaires, three more than last year, despite a slight drop in the combined wealth of the country’s 40 richest individuals.

Hong Kong-based Robert Kuok remains Malaysia’s richest, despite some eight per cent drop in his fortune to RM45.7 billion.

At number two is T. Ananda Krishnan, whose wealth eased six per cent to RM42.9 billion, but narrowing the gap with Kuok.

Malaysia’s 40 richest were collectively worth RM193.2 billion as of Jan 20, a seven per cent decline from RM206.3 billion a year ago, as the global credit crisis and weak equity markets took a toll on them.

In its Feb 16 issue, Malaysian Business magazine said Public Bank founder Tan Sri Teh Hong Piow kept his third spot relatively intact with a fortune of RM12.6 billion, one per cent lower than a year before.

Despite a 10.8 per cent drop in his worth to RM11.3 billion, plantation firm IOI Corp Bhd’s Tan Sri Lee Shin Cheng maintained his fourth position.

Fifth is Bumiputera entrepreneur Tan Sri Syed Mokhtar AlBukhary of DRB-Hicom group, whose wealth grew by eight per cent to RM9.5 billion.

 Hong Leong Group's Tan Sri Quek Leng Chan remained at No. 6 with a 25 per cent decline in value to RM8 billion.

 Next was Genting Group's Tan Sri Lim Kok Thay, who slipped two rungs down to seventh with RM7.5 billion.

 His wealth was down by about 30 per cent while his mother, Puan Sri Lee Kim Hua, widow of Tan Sri Lim Goh Tong, returned to No. 8 with a fortune of RM6.5 billion even though down by some 11 per cent.

 Tan Sri Tiong Hiew King of timber and newspaper group  Rimbunan Hijau,  and Singapore domiciled tycoon Ong Beng Seng, reaffirmed their ninth and 10th spots, respectively.

 Tiong's wealth was estimated at RM6.4 billion, while Ong's soared by 23 per cent to RM4.9 billion.

 The three newcomers to the list are Datuk A.K. Nathan of Eversendai Corp and Ngau Boon Keat of oil and gas firm Dialog Group, who made it to the billionaire's list for the first time.

  Datuk Abdul Hamed Sepawi of timber-based Ta Ann Holdings Bhd also made a comeback after a four-year lapse.

 The full list of the 40 tycoons and details of their wealth are in the magazine's Feb 16 issue. It also features the 10 richest tycoons on the ACE market.

(From left) Datuk A.K. Nathan and Ngau Boon Keat are new billionaires in Malaysia. Datuk Abdul Hamed Sepawi (right) returned to the list after a four-year lapse.