Malaysia Daily Media Highlights

MCMC to proceed with evaluation of WIMAX Spectrums
The Malaysian communications and Multimedia Commission (MCMC) has been given the go-ahead to proceed with the evaluation of the 17 applications for the 2.3GHz wireless broadband access WiMAX spectrum. Energy, Water and Communications Minister Datuk Seri Dr. Lim Keng Yaik said: “They (MCMC) are going through the applications and will be seeking clarifications where necessary. If the applications have been made based on the wrong premise, for instance a state rollout instead of the nationwide rollout that we want, the MCMC will ask the applicant to clarify its position” Up to four block of spectrum will be up for grabs, but the minister said early last month that he was “inclined” to award only two blocks of spectrum of 30MHz each initially. (theedgedarily.com)

IJM: Award of RM331m contract
IJM Corporation Bhd’s unit has secured a RM331.4m contract from Bandar Raya Developments Bhd for the superstructure of a condominium project in Jalan Binjai, Kuala Lumpur. IJM said on Nov 2 that IJM Construction Sdn Bhd would build the superstructure for three b locks of residential units and four basement parking levels. The construction period was 32 months. Its 49% associate IJM Construction (Middle East) LLC had received a letter from Swiss Tower about the cancellation of a contract. It said Swiss Tower’s representative; Asteco Development Management LLC had informed IJM construction about the withdrawal of the letter of acceptance dated Aug 6 for the RM177.5m Swiss Tower Project Dubai.

Nam Fatt: No talks to sell Nam Fatt Stake
Nam Fatt Corp Bhd president and chief executive officer, Datuk Ng Keng Joo has not entered into any negotiations to sell his entire 16.6% or any part of his stake in the company. Shares in Nam Fatt had attracted buying interest since Oct 30 on market talk of a possible management buyout of major shareholders at a significant premium to its current share price. (theedgedily.com)

SIMEENG: Bids for jobs worth RM3bn – Rm4bn
SIME Engineering Services Bhd is bidding for contracts worth between RM3bn and RM4bn, most of them in the Middle East. Managing Director, Mohd Shukri Baharom said the company’s order book currently stands at RM2.4bn and that it has submitted further bids for engineering, procurement, construction, installation and commissioning (EPCIC) projects – mostly in the oil and gas sector.

MFCB: Proposes internal revamp, selling power plant
Mega First Corporation Bhd (MFCB) has proposed to sell its 51% stake in the Tawau-based Serudong Power Sdn Bhd for about RM39.3m under its internal corporate reorganisation. The stake comprised 8.2m shares to be sold to its own unit Mega First Power Industries Sdn Bhd (MFPI). Serudong Power has been operating a 35MW power plant in Tawau since December 1996. it said the RM39.3m would be used by MFCB to repay bank borrowings. Under a group debt settlement, MFCB’s three units, Mega First Mining S/B, Mega First Industries S/B and Mega First Resources S/B, would write off RM97.7m which MFCB owed them. MFCB would then provide for impairment losses totalling RM54.8m arising from a diminution in the value of its investments in the three units. (theedgedaily.com)

Malaysia: Rolling out of RM100bn High Impact Projects soon
Minister in the Prime Minister Department said twenty high-impact projects worth at least RM100bn are expected to be implemented soon to boost growth and rural development. He said some of there projects are already listed under the 880 projects announced earlier and are already budgeted under the 9MP. The Government is still seeking the best source of financing for projects not covered under the 9MP, which may include funding through private financing initiative (PFI) and foreign-currency denominated bonds. The Minister also expects 2H GDP growth to be strong with 3Q growth exceeding the 2Q performance of 5.9%.

EURO: ECB keeps interest rate unchanged
The European Central Bank (ECB) left its benchmark interest rate unchanged at 3.25% as predicted by most economists, after five rate hikes since December 2005. however, the ECB signalled that it is ready to raise interest rate next month given the concern over faster-than-expected economic expansion and cheaper oil which may fuel wage demand.

US: Productivity growth stagnates in 2Q, weekly jobless claims rises
Worker productivity in the US grew by 1.2% in 2Q, matching the rate of expansion in 1Q. Meanwhile, labour costs increased by 3.8% y-o-y and was up 5.3% for the first nine months of 2006. The report suggests that productivity growth may not be strong enough to deliver a strong economic growth and low inflation. In a separate report, the US initial jobless claims jumped by 18,000 last week to 327,000, the highest reading in three months, suggesting that companies may have stepped up the pace of firings as the economy slows.

IMF: US 2007 growth forecast cut to 2.6%
The IMF revised downwards the growth forecast of the US economy to 2.6% from 2.9% project earlier in September. The revision was prompted by the shaper-than-expected housing slump and weaker consumer spending. However, the IMF maintains its forecast of 3.4% for the US economy in 2006.