Malaysia Daily Media Highlights

Tronoh: Win Power Deals
Tronoh and its subsidiary, Zelan Holdings, are set to win potentially lucrative contracts to build coal-fired power plants in Indonesia. Company sources said that working jointly with Indonesia’s PT Primanaya, the consortium has by default won at least one of four jobs tendered out by PT Perusahaan Listrik Indonesia (PLN) to construct power plants in the 300 megawatts (MW) to 400MW category. The four projects within the category tendered out were the Labuan Power Plant (2 x 300MW), Rembang Power Plant (2 x 300MW), Tanjung Awar – Awar Power Plant (2 x 300MW) and Indramaya Power Plant (3 x 300MW). Each of the projects attracted only one bidder, and as a condition to the tenders, should there be only one bidder for any of the projects, that bidder would automatically win the job. (BT).

Boustead: Buying 6.3m naval shipyard shares for RM21.54m
Boustead is acquiring KUB Malaysia’s 4.85% stake in Boustead Naval Shipyard (BNS), formerly known as PSC-Naval Dockyard, for RM21.54mn. Boustead said the acquisition of the stake, comprising 6.3mn RM1 shares, would raise its stake in BNS to 35.62 or 46.3mn shares, and it would be obliged to undertake a general offer for the remaining shares in BNS. However, it said it would seek an exemption from undertaking a mandatory general offer, which may arise from the acquisition, if required. Boustead said the acquisition was in line with its strategic intention to consolidate its investments and control BNS, given the importance of the Offshore Patrol Vessels Contract (theedgedaily.com)

RHBCAP: 2 Middle-East Groups Eyeing UTAMA
It was reported by the Edge Weekly that there are 2 Middle-East (Kuwait and Abu Dhabi based) Groups that are interested to acquire the equity stake of Utama Banking Group (UTAMA) from Cahya Mata Sarawak (CMS). As at 20th April 2006, CMS controls 51.83% of UTAMA.

AIRASIA: SIA to reduce fuel surcharge/Asmara Air no threat to other players
Singapore Airlines (SIA) is reducing its fuel surcharges following a decline in jet fuel prices in recent weeks. There reductions will apply for ticket purchased on or after Oct 14, 2006. The airline said the surcharge for flights between Singapore and the Asean countries would be reduced from US$20 to US$18. For flights between Singapore and the United States or Canada, the surcharge would be reduced from US$90 to US$82 while the surcharge for all other flights woud be reduced to US$54 from US$60. (theedgedaily.com)

In other news, soon to be launched Asmara Air says that it is not a threat to AirAsia or Malaysian Airline System (MAS) as it is expected to provide charter services rather than scheduled services. Asmara Air clarified that it will provide full-service charter flights through KLIA within Peninsular Malaysia. Although initially operating Fokker 50s, Asmara hopes to have B737s by early next year and start flights to Sabah, Sarawak and neighbouring countries. (Star).

Cabinet approves water tariff hike for Klang Valley
Malaysia’s Cabinet has approved a 6% to 15% rise in water tariffs for users in Kuala Lumpur and its vicinity although the effective date has yet to be announced. Water, Energy and Communications Minister Datuk Seri Dr Lim Keng Yaik announced Saturday that the government had agreed to increase water tariff in the Klang Valley but it would not affect 42 percent of its residents consuming less than 20 cubic metres of water a month. (Bernama)

Oil Price drop may cut fuel price
Malaysia could see fuel prices cut if oil prices fall below $50 or $45 a barrel Deputy of Domestic Trade and Consumer Affairs Minister said recently. He added that despite the sharp drop in crude oil prices in recent weeks the government is unable to cut prices now as it is still heavily subsidizing fuel prices. (Bernama)

PROTON: Police buying 2,000 Protons for RM80m
The Royal Malaysian Police is acquiring 2,000 Proton cars this year for about RM80m to beef up its mobile patrol vehicle programme. The Inspector General of Police Tan Sri Musa Hasan said on Oct 13 that the police are considering to buy another 300 more cars next year. Of the 2,000 cars this year, the police will receive 1,000 Wajas, 500 Wiras, 400 Iswaras and 100 Perdana V6s. The police are looking to have a fleet of about 3,990 by the end of next year. Currently, the police have about 1,690 Proton Cars. (theedgedaily.com)

Sarawak wants to take over Bakun Dam Project
The Sarawak state government has expressed interest in wanting to take over the Bakun Hydro-electric dam project as it seeks to keep the electricity generated in the state to help draw foreign investment. The Sarawak state government is keen for the aluminium smelter project to take off which would consume 80% of the power generated from the dam. Sarawak may use its publicly traded company, Sarawak Enterprise Corp Bhd to take over Sarawak Hydro. (BT)