Malaysia Daily Media Highlights

AIRASIA: Fuel surcharge
Transport Minister, Datuk Seri Chan Kong Choy, said the government would leave it to Malaysian Airline System (MAS) and low-cost carrier AirAsia to decide if they want to reduce fuel surcharges. “We will let their mechanism determine the fuel surcharge,” he said, when asked if the airlines would reduce the charges in view of the lower crude oil prices. On allowing budget airlines to operate flights between Kuala Lumpur and Singapore, he said the government needed more time before deciding on the matter. Singapore’s Transport Minister Raymond Lim was reported as saying that the republic was awaiting the Malaysian government’s go-ahead for budget airlines to fly between the two countries. (theedgedaily.com)

Plus: Appointed concessionaire in Indonesia
Plus’s 55%-owned PT Lintas Sedaya has been appointed as the concessionarie to undertake the design, construction, ownership, management, financing, operation, maintenance as well as toll collection for the 116-kilometre Cikampek-Palimanan toll highway project on a build, operate and transfer basis. The concession period is 35 years. The remaining stake is held by PT Baskhara Utama Sedaya. (Bursa)

MUI: buys Metrojaya for RM273m
Malaysian United Industries (MUI) is buying a 91.06% stake in Metrojaya (MJB) from its parent company Pan Malaysian Industries (PMI) for RM273cash. The deal will allow MUI to strengthen retailing as one of its core businesses and allow PMI to reduce its borrowings. MUI is buying a 24.4% stake or 30.53m MJB shares from PMI for RM73.27m and 66.62% stake or 83.22m MJB shares from PMI’s unit Excelton for RM199.73m. (theedgedaily.com)

Airport: Eyes more management contracts abroad
Malaysia Airports Holdings (MANB) is in talks on managing airports in Jordan, Oman and Saudi Arabia as part of its overseas expansion plan, its managing director Datuk Seri Bashir Ahmad said. MAHB had said last June that it was in talks on airport management contracts in Kazakhstan, Saudi Arabia and a few other countries in the Middle East. MAHB now provides airport operation and technical services for the development, operation and maintenance of the new Hyderabad International Airport in India. (theedgedaily.com)

Gropel: Sells Ladang Bertam
Guthrie Ropel (GRopel) said it has completed the sale of its 914.2ha Ladang Bertam estate to 4 companies – Flora Horizon, Hartawan Development, Pilihan Teraju and Paduwan Development – for RM91.35m. In a statement on Nov 01, GRopel said the gain on disposal was RM65.3m. Ladang Bertam is a freehold property planted with oil palm comprised 4 divisions – Durian Tunggal, Bertam, Parit Melana and Krubong. (theedgedaily.com)

US-Malaysia FTA to open US$250bn of US Government Procurement
The US government will open approximately US$250bn worth of procurement to Malaysia under the US – Malaysia Free Trade Agreement (FTA) currently being negotiated, said US senior procurement negotiator, Jean Hillman Grier. The procurement was presently not available to Malaysian firms because without an FTA, the US government is generally prohibited from purchasing goods or services from Malaysia. (Bernama)

Malaysia: Sale of foreign currency Islamic bonds allowed
The Governor of Central Bank Malaysia said Malaysia will now allow the sale of foreign-currency denominated Islamic bonds for the first time to further strengthen Malaysia’s leading positive in the Islamic bond market. The Securities Commission also said the a non-Ringgit sukuk issued by both local and foreign financial institutions which is rated at least single A will be deemed as approved and may be offered to offshore and onshore investors. The above move will provide additional flexibility for both resident and foreign investors to diversify their investment into non – Ringgit investment in Malaysia.