Nestle Withdraws Exemption Application

15 Rabiulakhir 1434

KUALA LUMPUR, Feb 25 , 2013 - Following a series of discussions with the Malaysia Competition Commission (MyCC), Nestle Sdn Bhd has withdrawn its application for individual exemption.

In a statement issued today, MyCC said Nestle had previously filed an individual exemption application to exclude its pricing policy called the Brand Equity Protection Policy (BEPP) from the Competition Act 2010 (CA2010).

Nestle's pricing policy was a major concern for the MyCC as it has elements of Resale Price Maintenance (RPM), an anti-competitive conduct that prevents resellers from setting their prices independently, potentially leading to increased prices for consumers.


"While the MyCC recognises the rights of Nestle to promote and enhance its brand equity under the BEPP, the pricing policy as contained in the BEPP was likely to infringe section 4(1) of the CA2010 as it essentially constitutes a RPM.

More information: BERNAMA

Maybank's Pre-tax Profit For 2012 Surges To RM7.894 Billion

10 Rabiulakhir 1434

KUALA LUMPUR, Feb 21 , 2013 - Malayan Banking Bhd (Maybank) registered a higher pre-tax profit of RM7.894 billion for its financial year ended Dec 31, 2012 vis-a-vis RM6.875 billion in 2011.

Revenue for last year also surged to RM27.532 billion from RM23.741 billion in 2011.

Profit after tax for financial year 2012 stood at RM5.917 billion from RM5.121 billion in the previous year.

For the fourth quarter last year, Maybank posted a pre-tax profit of RM1.949 billion, on the back of RM7.027 billion in revenue.

Maybank Chairman Tan Sri Megat Zaharuddin Megat Mohd Nor said the group's results were boosted by sustained growth across most business sectors, complemented by strong contributions from its global operations, spanning 20 countries.

"Total operating income rose 12 per cent despite the challenging global economy as the group leveraged on its strong domestic positioning, diverse capabilities and regional network to grow its franchise and explore new market segments," he told a media briefing today.

Megat Zaharuddin said revenue growth was led by a 14 per cent increase in net fee-based income and 10.8 per cent increase in net fund-based income.

"Revenue grew ahead of overhead expenses, the result of continuous efforts to improve efficiency and implementation of a vigorous cost management exercise.

"These helped offset the pressure on net interest margins during the year," he said.

Maybank's group loans growth remained in double-digit territory, with a healthy 12.2 per cent rise, in addition to loans and debt Securities registering a higher growth of 12.9 per cent.

Deposits expanded strongly across the three home markets, reinforcing the group's regional franchise, with higher growth momentum recorded in Indonesia.

Gross group deposits rose 10.3 per cent to RM347.2 billion, led by a 22.3 per cent rise in Indonesia, followed by Singapore and Malaysia with a 12.7 per cent and 8.5 per cent rise, respectively.

Megat Zaharuddin said Maybank's board of directors had proposed a final dividend in respect of the 2012 financial year of 18 sen, less 25 per cent taxation and a 15 sen single-tier dividend on 8,440,046,735 ordinary shares of RM1 each for the shareholders' approval.

For the previous fiscal year ended Dec 31, 2011, Maybank proposed a final dividend of 36 sen per share, less 25 per cent taxation.


More information: BERNAMA

Danga Bay JV Will Spur More Cross-Border Investments In Iskandar Malaysia

9 Rabiulakhir 1434

JOHOR BAHARU, Feb 19 , 2013- Menteri Besar Datuk Abdul Ghani Othman hopes joint-venture projects by Malaysia and Singapore companies in Danga Bay will help spur more cross-border transactions in Iskandar Malaysia.

Speaking during the signing ceremony of the Head of Agreement (HOA) between Iskandar Waterfront Sdn Bhd (IWSB), CapitaLand Ltd and Temasek Holdings today, he said the "big boys" in Singapore and across the region would take the cue from the historic event today.

"I am confident this will spur even more cross-border transactions as the "big boys" in Singapore and across the region will take the cue from Temasek and CapitaLand to explore more investment opportunities in Iskandar Malaysia," he said.

Prime Minister Datuk Seri Najib Tun Razak and his Singapore counterpart Lee Hsien Loong and several cabinet ministers from the two countries witnessed the signing ceremony at the Danga Bay Convention Centre here.

The three joint-venture partners inked the HOA to jointly acquire and develop parcels of land in Danga Bay known as "A2 Island".

The joint venture will acquire 71.4 acres or 3.1 million square feet of freehold net land in A2 Island, Danga Bay, for a purchase price of RM811 million (S$324 million), which will be paid over a period of four-and-a-half-years.

CapitaLand Malaysia, a wholly-owned subsidiary of CapitaLand Ltd, IWSB and Temasek will hold 51 per cent, 40 per cent and nine per cent stakes, respectively, in the joint venture.

Ghani said Johor welcomed more Singapore government-linked companies to enter into joint ventures with IWSB and other local enterprises to tap the potential for property development that Iskandar Malaysia has to offer.

"This joint venture between a Johor entity and two of the island republic's biggest economic players will give confidence to others waiting on the sidelines that investment in Iskandar Malaysia is an opportunity not to be missed," he said.

He said Johor and Singapore enjoyed a long-standing, friendly and multi-faceted relationship that are bound by common history, intimate geography and deep abiding social ties.

More information: BERNAMA

Palm Oil Stocks In January Fall 1.9 Per Cent

3 Rabiulakhir 1434

KUALA LUMPUR, Feb 13, 2013- Palm oil stocks fell 1.9 per cent to 2.58 million tonnes in January this year from the 2.63 million tonnes in December 2012, the Malaysian Palm Oil Board (MPOB) said Wenesday.

It said crude palm oil (CPO) stocks dipped 0.96 per cent to 1.56 million tonnes in January.

Processed palm oil stocks lost 3.31 per cent to 1.02 million tonnes, it added in a statement.

Palm kernel stocks declined 14.03 per cent to 161,319 tonnes but crude palm kernel oil stocks expanded 3.47 per cent to 296,354 tonnes.

Processed palm kernel oil stocks fell 5.04 per cent to 170,485 tonnes but palm kernel cake stocks rose 0.19 per cent to 466,839 tonnes.

The MPOB said CPO production last month fell 9.98 per cent to 1.602 million tonnes from the 1.780 million tonnes previously.

Palm kernel production was down 7.68 per cent to 413,232 tonnes, while crude palm kernel oil output was 10.79 per cent lower at 199,807 tonnes, and palm kernel cake production slid 11.31 per cent to 220,897 tonnes.

Palm oil exports declined 1.61 per cent to 1.62 million tonnes last month as compared to December, while palm kernel oil exports fell 9.45 per cent to 102,941 tonnes.

It said palm kernel cake exports jumped 41.09 per cent to 294,962 tonnes, but oleochemicals exports were 2.64 per cent weaker at 221,024 tonnes, and biodiesel exports surged 49.31 per cent to 9,407 tonnes.

More information: BERNAMA

S&P Ratings On MISC, Petronas Not Affected By Proposed Takeover

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KUALA LUMPUR, Feb 13 , 2013 - Standard & Poor's Rating Services (S&P) said its ratings on MISC Bhd and Petronas will not be affected by Petronas' proposed conditional takeover of the shipping corporation.

It said the proposed transaction supported its assessment of MISC's strategic importance to its parent company, Petronas.

"In addition, the transaction is unlikely to have any effect on Petronas' financial risk profile," it said in a statement.

Petronas currently owned about 63 per cent of MISC.

The rating on MISC incorporated a three-notch uplift from the company's stand-alone credit profile of 'bb' to reflect strong business and financial support from Petronas.

"As a majority-owned subsidiary, MISC is already consolidated in Petronas' accounts.

"We believe that Petronas has sufficient financial resources to complete the takeover.

"Petronas' financial risk profile is "minimal" and its liquidity is "strong", as our criteria defines these terms," it added.

Recently, Petronas proposed to take MISC private with a cash offer of RM5.30 per share for what it does not already own.

More information: BERNAMA

SilTerra in global fast lane

3 Rabiulakhir 1434

Khazanah Nasional Bhd's semiconductor wafer foundry SilTerra Malaysia Sdn Bhd has to work overtime these days with its plant running at maximum capacity to meet growing global orders.

"Our jobs are completely sold out for the first and second quarters of this year," says chief exectuiveexecutive Dr Kamarulzaman Mohd Zin, adding that with demand thrice its capacity, SilTerra is now boot-strapped to the fast lane.

It will soon be getting jobs from Tier 1 electronic companies for this year and more Asian giants are likely to hook up with its Kulim Hi Tech Park plant as they divert their supply chain ex-China.

Purchase orders are coming in for the chips which are already found in most of the top brand mobile applications, particularly in the display drivers of smartphones.

Google Nexus 4, which is tagged as one of the world's best smartphones, LG Optimus G or the Amazon Kindle e-reader tablet , all have touch controller , with the SilTerra chip.

SilTerra, which has spread its wings in the global tech scene, is today more well-known in Taiwan and China and the giants of the industry worldwide , than in Malaysia.

Malaysia has the attributes to be a sustainable semiconductor fabrication hub for mature technology market (0.22 to 0.09 micron) and it is cost competitive cost-competitive compared to with Taiwan, Korea South Korea and Singapore.

Also, the US IDMs and European foundries are keen to explore extendingextend their footprintfootprints in Malaysia.

Things are already looking up for SilTerra with negative cash flow tides having having been reversed sharply over the past five years.

"We have been operating profitably for five years now, running in a sustainable manner," said Kamarulzaman said, in an interview here last week.

Annual operating profits is are around RM50 million per year and this can be sustained for at least three more years with minimal capital requirements.

But despite its flourishing profits curvecurves, Kamarulzaman admits that he gets flustered by the negative public perception SilTerra is often placed in.

Often mistaken for the others in the assembly and test and product assembly, which describes the traditional electrical and electronics (E&E) industry in Malaysia, SilTerra actually stands inat the top end of an industry where the gestation period can take up to a decade before one can enjoy positive returns.

But that is now all in the past as SilTerra has been kept very busy, having finally found its niche in the small panel display drivers (below five inches). ,However, it is continually continuously facing challenging demands for high and greater resolution as it keeps up with the latest technology.

"It is a challenging industry but one that will always look north, what with electronics already embedded in our lives , from telecommunications, healthcare to transportation," Kamarulzaman said.

SilTerra is ranked number 15 (based on revenue) in the global ranking of leading pure-play foundries, where it serves the mature tech segment of the market valued at US$30 billion (RM90 billion) per year.

One of the reasons for SilTerra to be mired in difficulties in its early years was its attempts to be in the race with the global players.

The big four - highly-capitalised TSMC (Taiwan), Global Foundries (US), UMC Group (Taiwan) and SMIC (China) - control 75 per cent of the global market share, leaving companies like SilTerra to depend on "sustainable scraps" which it considers as substantial.

Cumulatively, SilTerra has exported RM5 billion worth of products since 2001, out of which 75 per cent has local value-added.

The Economic Transformation Programme (ETP) recognises that aspect and Kamarulzaman also pointed out that SilTerra has alreadyachieved many of the targets. envisioned by ETP.

"Local value-adding to its annual revenue of RM500 million to RM600 millon is measured at 70 per cent, far higher than the overall E&E industry average of 25 per cent. of the overall electrical and electronics (E&E) industry."

On the prospects of listing SilTerra's listing prospects, Kamarulzaman said it will likely take place once the debts are cleared.

SilTerraThe company hashad cummulative losses totalling RM7.3 billion for the 10 years up till 2011 which werewas one of the main reasons it has been placed in bad light.

"But have a look at the numbers -as 79 per cent is due to depreciation and impairment plus financing costs (due to initial hefty borrowings), and it has nothing to do with our operations," he said, adding that the company can turn around into profits.

Revenue totalled RM4.8 billion to date while the EBIDTA (Earnings Before Interest, Taxes, Depreciation and Amortisation), which was negative in the initial three yearyears, turned positive for seven years out of the 12 years.

More information: Business Times Malaysia

Golden Palm Growers Scheme Well Planned

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GUA MUSANG, Feb 10 , 2013- The Golden Palm Growers Scheme has been well planned and will not be affected by problems faced by other similar agricultural based investment schemes, said the Executive Chairman of Golden Palm Growers Bhd, Andrew Phang.

"Our plantation in Gua Musang has been moving according to plan and will move forward as promised.

"All schemes are different, every scheme is structured very differently and our business model is structured to reflect the stage of growth of the trees.

"We will pay to investors the returns when the trees start to give commercial yields in six years time which is 2016 and that way we never had a mismatch between revenue and our payout to investors," he told Bernama during a tour of the company's estate here.

While the company's plantations may have similar external problems as what other plantations face, but with proper management, these obstacles could be overcome, he said.

Golden Palm Growers since 2010 has been involved in the oil palm plantation business, in particular the development and subsequent management of oil palm plantations.

It operates an oil palm plantation of approximately 4,550 hectares in Gua Musang, Kelantan.

A total of 44,000 growers' plots have been created in the plantation where each plot is about a quarter acre and costs RM9,600 per plot.

Under the scheme, investors could regain a guaranteed return of six per cent per annum plus a bonus for up to 2016.

More information: BERNAMA