Malaysia Daily Media Highlights

Malaysian Firms Close to Securing Pakistan Deals
Malaysian companies are on the brink of clinching contracts for road and rail projects in Pakistan, as the governments from both countries will soon sign a memorandum of understanding for a contract to build elevated highways in Rawalpindi and Karachi, estimated to cost about rM202.95m/ Malaysia has also proposed to build a light rail transit system for Karachi. The Malaysian government submitted a conceptual report and another feasibility report, costing RM5.5m, will be done delivered to the Pakistan government soon. By doing the report, Malaysia will be first offered the contract or a first right of refusal, if the project is found to be viable. The Malaysian Works Ministry has given 12 names of Class A contractors to the Pakistan Government. However, one road project, a 17bn-rupee highway connecting Khanewal and Faisalabad may not take off for it is not suitable for privatization due to low traffic. Pakistan’s National Highway Authority and the Construction Industry Development Board signed an MOU to build the 184km highway in 2005. (BT)

Malaysia: Central Bank Malaysia (BNM) Reserves increase to RM293.4bn
BNM international reserves increased by RM0.1bn to RM293.4bn as at 31 October. BNM said the reserves position is sufficient to finance 8.1 months of retained imports and is 6.7 times the short-term external debt. The increase in reserves in October (RM1.3billion) was in tandem with the recent improvement in the stock market amid large trade surplus of RM9.8bn in September.
SIME: Bakun progress and plans to expand Hyundai Plant
Sime Darby said that the Bakun project is more than 60% completed and is “happy” with the rate of progress. In a separate development, Sime Darby is in talks with Hyundai Motor Co. to expand their car factory in Malaysia. The company may spend RM100m to quadruple the production capacity at the plant. Decision on the expansion would com e in the next 12 months. It would take three years for the plant to be expanded to enable it to produce 120,000 cars a year. (Bloomberg)

INTI: Investing RM40m to expand Subang Jaya Campus
Inti Universal Holdings is investing RM40m over 3 years to expand its Subang Jaya campus in 2 phases to accommodate 3,000 students and to tap into the lucrative working adult education segment. The 1st phase will cost RM20m generated from its own funds and is expected to be completed in mid-2008. the 2nd phase is expected to be funded partly from its own internal funds and/or borrowings and will be completed in year 2009. (theedgedaily.com)

Boustead Holdings: To acquire PSCI building and land for RM54m
Boustead Holdings has proposed to acquire 3 pieces of land measuring 6,672sq.m. and Menara PSCI in Penang from PSC Asset Holdings S/B for RM54m cash. The proposed acquisition is expected to be completed in 2Q07. The proposed acquisition will be financed entirely via bank borrowings. As at Sep 30, 2006, Menara PSCI has a total net lettable area of 211,428sq.ft., of which 71% or 149,643 sq.ft. has been let out to 48 tenants. For the financial year ended 2005, it generated a total gross income of RM5.48m. The building had an audited net book value of RM70m as at Dec 31, 2005. (theedgedaily.com)

APLI: To invest RM33m in Vietnam Plant expansion
APL Industries is investing RM33m to increase the output of its Vietnam plant next year, as it is making losses because it is running below capacity. Under the 1st phase of the expansion, APLI will invest RM8m in two boilers – biomass thermal-oil heat energy generators – and upgrade six dipping process machines, which will increase the Vietnam plant’s output and achieve economies. APLI will invest another RM25m in December next year to install 12 new production lines for its Vietnam plant to increase its annual production capacity to 7.1bn pieces of gloves. (theedgedaily.com)

MULPHA: Unsuccessful in Australia’s GHG bid
Mulpha International’s offer for Australia’s Grand Hotel Group (GHG) listed on the Australian Stock Exchange, was unsuccessful after it failed to secure at least 50% of the GHG securities when the offer closed on Nov 7. Mulpha said that it might bid for the GHG assets individually should the opportunity arise. MULPHA had on Aug 18 submitted an unsolicited bid for GHG at 85 Australian cents (RM2.40) per share. However, Singapore-listed Tuan Sing Holdings Ltd had on Nov 2 launched a A$213.4m bid for a 74.96% stake in GHG at A$1.10 each, which is 29.4% above MULPHA’s offer. GHG owns 4 of Hyatt International’s 8 Australian properties including the Grand Hyatt Melbourne, Hyatt Regency Adelaide and Hyatt Regency Perth. It also owns two Chefley hotels in Brisbane and Canberra and the Country Comfort Chain. (theedgedaily.com)

Indonesia: Central Bank cuts interest rates
Indonesia’s central bank cut its benchmark interest rate by 50bps to 10.25%, the sixth reduction in rate from a peak of 12.75% in May. The Central Bank Governor said interest rates may be reduced again next month after inflation slowed to a two-year low and the Indonesian Rupiah Strengthened. Lower borrowing costs are expected to spur consumer spending and revive business activities in the country.