DANAVEST

(The Edge) Selangor government officials are meeting the state’s four water concessionaires, looking to make renewed offers for their assets, sources said. The Edge Financial Daily has learnt that state officials met representatives of water treatment company Konsortium Abass Sdn Bhd yesterday, and were slated to meet the top brass of another water treatment company Syarikat Pengeluar Air Selangor Holdings Bhd (Splash) either today or by end this week.

(The Edge) Ingress Corporation Bhd said yesterday it had been unable to deposit RM25 million into an ijarah service reserve account (ISRA) in relation to its RM160 million sukuk al-Ijarah by the deadline. It had to deposit the amount into the ISRA latest Tuesday, which represents the remaining 50% of the sukuk’s first principal repayment of RM50 million that is due on July 9.

(The Edge) Singapore’s Oversea-Chinese Banking Corporation Ltd (OCBC) is on the lookout to expand its presence in Malaysia. “OCBC is always out looking for opportunities to grow our presence in this country. Definitely, with the recent liberalisation, the opportunities are even more interesting for OCBC as a foreigner,” said the banking group’s executive vice-president and head of group investment banking, George Lee.

(The Edge) PacificMas Bhd has found another interested party to acquire its insurance business and an application has been made to Bank Negara Malaysia (BNM) to enter into negotiations, PacificMas non-independent director George Lee said.

(The Edge) Sunway City Bhd (SunCity) is buying a hotel called Sunway Hotel Hanoi from its sister company Sunway Holdings Bhd (Sunway) for US$17 million (RM60 million) cash.

(The Edge) Tamadam Bonded Warehouse Bhd has signed a memorandum of understanding (MoU) with Netz Toyota to establish a joint-venture company in Malaysia to enable the parties to develop service centres for automobiles in the country.

(The Edge) Mudajaya Group Bhd unit Mudajaya Corporation Bhd has secured a RM19.89 million contract from Tune Hotels Sdn Bhd to design and build a seven-storey low-cost hotel in Johor Bahru.

(The Edge) Pembinaan Limbongan Setia Bhd (PLS) has received a letter of award from the Ministry of Public Works to design and build a RM188 million women’s and children’s ward block at the Seremban Hospital in Negri Sembilan.

(The Edge) The Employees Provident Fund Board acquired 5.98 million shares of MMC Corporation Bhd from May 28 to June 4. According to filings with Bursa Malaysia, the EPF acquired one million MMC Corp shares on May 28 and two million shares the next day. It went on to acquire 352,700 shares on June 1 and one million shares the next day and on June 4, it bought 1.628 million shares.

(Business Times) BUDGET airline AirAsia Bhd (5099) will start flights between Colombo and Kuala Lumpur on August 15, with daily direct flights between the two cities. It is offering promotional all-in fares from as low as RM99 one-way, which is only available online via the airline’s website at www.airasia.com.

(Business Times) MALAYSIA’S ringgit rose yesterday, snapping a six-day loss, on optimism investors will pump more funds into higher-yielding assets as a global financial crisis abates. The currency climbed from a two-week low after the government reported a smaller drop in industrial production than economists forecast and the US Treasury gave 10 banks approval to repay emergency funding.

(Business Times) THE Malaysia International Halal Showcase (Mihas) 2009 has generated sales of RM3.2 billion last month, indicating sustained business confidence among buyers and exhibitors despite the global economic downturn. With the prospect of economic recovery and outbreak of H1N1 contained, Mihas organiser Malaysia External Trade Development Corp (Matrade) expects to see higher participation and sales for next year’s trade fair.

(Business Times) THE Securities Commission (SC) today issued revised guidelines to allow exchange-traded funds (ETFs) from recognised jurisdictions to be cross-listed on Bursa Malaysia. The revised guidelines, which come into effect tomorrow, are part of the ongoing efforts to enhance the depth and breadth of the capital market, the SC said in a statement.

(Business Times) THE Employees Provident Fund (EPF)’s investment income dropped 10.47 per cent to RM3.26 billion for the first quarter ended March 31, from RM3.64 billion recorded in the fourth quarter of 2008. The decline is due to lower investment returns from both fixed income instruments and equities, said EPF in a statement in Kuala Lumpur, today.

(Bernama) The Inland Revenue Board says it has issued 10,550 replacement cheques for the cheques for which payment had been stopped. The cancelled cheques refer to refund cheques which have not been deposited or cashed, the IRB said in a statement Wednesday. It said taxpayers involved will be receiving the new cheques via post anytime from now.

(Bernama) Redza Safe Deposit Box Sdn Bhd has invested RM3.5 million to open its first branch in Seremban which offers 3,600 safe deposit boxes. The company, a subsidiary of Redza Security Sdn Bhd, plans to open its second branch in Klang, Selangor, within three months, followed by other branches in Penang and Johor Baharu this year.

(Bernama) Jia Yu Home Entertainment Sdn Bhd, a company owned by MSC Venture Capital has inked a co-production deal with two of China’s top television stations, Nanning TV and Changsa TV. The deal enables the Malaysian creative multimedia content company to enter the Chinese market.

(The Edge) Speculation has been rife that Maxis Communications Bhd would be relisted either on the local bourse or overseas, and yesterday a local brokerage house reported that it may be done via its injection into Astro All Asia Networks plc, a sister firm in tycoon T Ananda Krishnan’s stable of companies.

(The Edge) Crude palm oil (CPO) futures continued its gains for a second day, tracking crude oil and soybeans as commodity prices rally in the wake of manufacturers rebuilding inventories in preparation for an economic rebound. CPO for August delivery on the Malaysia Derivatives Exchange closed 2.5% or RM65 higher at RM2,625 a tonne.

(The Edge) SilkAir, which commenced flights to Penang from Singapore yesterday, is working with Penang Global Tourism Sdn Bhd, the state government’s tourism promotion agency, to package Penang as a tourism destination. SilkAir chief executive Chin Yau Seng said the airline would focus on leisure packages, flying in to Penang from its various routes and those serviced by its parent company Singapore Airlines.

(The Edge) In a landmark deal covering multiple Asian markets, Merchant Solutions and Chinese bankcard association China UnionPay (CUP) have announced an alliance that enables thousands of merchants outside China to accept CUP debit and credit cards. In a statement yesterday, Merchant Solutions said it already enabled merchants in Hong Kong and Macau to accept CUP cards and the new agreement extended these services to Singapore, Malaysia, Brunei, Bangladesh, India and Sri Lanka.

(The Edge) ANALYSTS are pricing in the impact of a tougher economic landscape on national carmaker Proton Holdings Bhd for the current financial year (FY) ending March 2010. This comes against the backdrop of weaker demand for big-ticket items such as houses and cars.

(The Edge) As China is recovering from the global economic slump, CIMB-Principal Asset Management Bhd has launched the CIMB Islamic Greater China Equity Fund, its second fund in the year, to invest in high-growth sectors including the industrial and consumer sectors. These sectors are expected to benefit from the recovery in China’s economy, mainly driven by the government’s economic stimulus packages totalling US$585 billion (RM2.04 trillion), according to CIMB-Principal chief executive officer J. Campbell Tupling.

(The Edge) CIMB Bank Berhad has received the Securities Commission’s approval for its proposed bonds totaling RM5 billion (or its foreign currency equivalent) in nominal value. Bumiputra-Commerce Holdings Bhd (BCHB) said on June 2 that the corporate exercise involved the Tier 2 subordinated bonds programme and proposed Tier 2 junior sukuk programme.

(The Edge) Mamee-Double Decker (M) Bhd has proposed to acquire Charmille Pte Lte, which has a controlling 60% interest in the development of an oil palm plantation in central Kalimantan, from Golden Seed Holding Ltd (GSH) at an undisclosed price. Mamee-Decker said yesterday its sub-subsidiary Rosedale Investments Pte Ltd had signed the sale and purchase agreement with GSH on Monday.

(The Edge) HwangDBS Investment Management Bhd (HwangDBS IM) has declared an interim income distribution of one sen per unit for its flagship global feeder and income type fund, the HwangDBS Global Property Fund (GPF), for the financial period ended May 31, 2009.

(The Edge) Green Packet Bhd has subscribed for an additional 699,991 shares in its 90%-owned subsidiary Packet One International Pte Ltd (P1i) for S$699,991 (RM1.68 million) cash. Green Packet said yesterday P1i had also issued 200,000 shares and 99,999 shares fully paid to Telnet Technologies Sdn Bhd and Tang Pen San, respectively.

(Business Times) EON Bank is targeting 50,000 account holders with deposits amounting to RM400 million this year for its newly launched SaveMonthly Account deposit product. EON Bank Group’s consumer banking head Michael Lor said with the new product, account holders will enjoy higher interest rates on their deposits compared with conventional saving accounts.

(Business Times) Malaysian firm Weststar has abandoned a deal to buy LDV, the British van maker said today. “The directors of LDV Group have been forced to reapply for administration to protect the assets of the business,” LDV said in a statement. “This is due to the fact that essential funds required to maintain the business and workforce as a going concern are not being made available.”

(Business Times) HICOM-Chevrolet Sdn Bhd is banking on the Cruze 1.8 sedan passenger car, to be launched in the third quarter of this year, to boost sales in Malaysia. “It will be launched in late July or early August,” said its chief executive officer Sanjeev Garg at a media briefing in Petaling Jaya today. He said the car would be brought in from South Korea.

(Bernama) Sime Darby Bhd has targeted over 10,000 households in townships developed by the group for its energy efficiency initiative. The first activity under the initiative called “Switch” is the energy-saving bulb programme, which involves the exchange of old incandescent bulbs for the new energy-saving ones.

(Bernama) Despite General Motors (GM) entering bankruptcy protection in the United States, its Southeast Asia operation is going ahead with future expansion, including exploring plans to open a manufacturing plant in Malaysia. Steve Carlisle, president of General Motors Southeast Asia Operations and Chevrolet Sales Thailand, said there was no specific plan at the moment but the company would continue to explore the possibility of setting up the plant.

KUALA LUMPUR, June 2 (Bernama) — OSK-UOB Unit Trust Management Bhd has increased the size of its OSK-UOB Big Cap China Enterprise Fund to 900 million units due to strong demand from investors.

“This increase is again required to meet the steady and constant stream of applications for its units”, its chief executive officer Ho Seng Yee said in a statement here today.

The initial units offered for subscription was 400 million units. It was increased to 600 million units in early 2008, he said.

Ho said the fund invests up to 98 percent of its net asset value in Chinese companies, with a market capitalisation of at least US$1 billion (US$1.00 = RM3.47).

He said these companies have business operations in China and listed on the international stock exchanges of Hong Kong, Shanghai, Shenzhen, the U.S., London and Singapore.

“The fund excludes investing in Chinese companies listed on the domestic A-share market,” he said.

The attraction of China as an investment destination has not been diminished by the global financial crisis as recent economic data coming out of China have shown indications of recovery and its economy was bottoming out, he said.

“The fund is well attuned to this and capitalises on this recovery and growth opportunities of the China market,” he said.

(The Edge) KUALA LUMPUR: HwangDBS Investment Management Bhd (HwangDBS IM) has declared an interim income distribution of one sen per unit for its flagship global feeder and income type fund, the HwangDBS Global Property Fund (GPF), for the financial period ended May 31, 2009.

HwangDBS IM said this was its seventh distribution since the fund’s launch on April 19, 2006. To date, GPF has distributed a total of 9.5 sen since inception.

In a statement, HwangDBS IM chief executive officer and executive director Teng Chee Wai said global real estate investment trust (REIT) markets were sharply down in January and February as increasing unemployment rates and continued financial sector woes weighed on the property sector.

He said, however, as at the end of the first quarter, an improvement in economic numbers and evidence of falling US mortgage rates helped the sector regain some ground alongside its other broader equity peers.

Teng said that in April, with the exception of the Japan REIT market, a strong rebound in global REIT markets especially the US REIT market was seen.

“2009 may continue to battle with some of the challenges of 2008. HwangDBS IM’s focus will continue to be on credit quality. Moreover, the company will also look to extend portfolio duration and will continue to hold a defensive position as further confirmation is needed before a sustainable recovery can be ascertained,” Teng said.

RHB Investment Management Sdn Bhd has declared an interim income distribution of 3.50 sen gross per unit for its RHB GoldenLife Today (GL Today), RHB GoldenLife 2010 (GL2010) and RHB GoldenLife 2020 (GL2020) funds.

The company also declared a special income distribution for the RHB GoldenLife 2030 (GL2030) at a rate of 5.00 sen gross per unit.

Based on the average net asset value per unit of the funds from March 1 to April 30, 2009, the gross income distribution yield is 5.8636 per cent for the GL Today; 5.5955 per cent for the GL2010; and 6.2825 per cent for the GL2020.

The gross income distribution yield for the GL2030 is 8.4789 per cent, the company said in a statement today.

The RHB GoldenLife funds aimed to provide investors with a steady income stream after retirement, it added.

RHB Investment Management, a wholly-owned subsidiary of RHB Investment Bank, currently has a stable of 25 retail funds.

(Business Times) Red Bull Malaysia today stressed that the Red Bull energy drink it distributes in the country does not contain any element of drug or alcohol. The drink was issued with a halal certificate when its distribution started in Malaysia in 1993, the company said in a statement in Kuala Lumpur.

(Business Times) Multimedia Development Corp (MDeC) expects revenue from open source-related software and services to increase to RM800 million within two years. Its chief executive officer, Datuk Badlisham Ghazali, said statistics from MSC Malaysia showed that about 420 companies had collectively earned close to RM420 million from professional services and customised software development.

(Business Times) EXPORTS of Malaysian palm oil products for May rose 1.7 per cent to 1,211,716 tonnes from 1,191,960 tonnes shipped in April, cargo surveyor Intertek Testing Services said today. Meanwhile, another cargo surveyor Societe Generale de Surveillance said exports of Malaysian palm oil products for May rose 5.1 per cent to 1,227,894 tonnes.

(Business Times) Tetra Pak, the world leader in food processing and packaging solutions, expects the global consumption of milk and other liquid dairy products to increase by a compound annual growth rate (CAGR) of 2.2 per cent over the next three years.

(Business Times) Malaysia Airlines (MAS), Malaysia’s national carrier, said today a European arbitration tribunal had ordered it to pay Advanced Cargo Logistic GmbH (ACL) 6.9 million euros (US$9.8 million) for breach of a cargo handling contract. In 2004, ACL had sought to claim 62.7 million euros from MAS after the Malaysian firm breached an agreement to maintain its European cargo hub at Germany’s Frankfurt-Hahn airport for 10 years from 1999.

(Business Times) Proton Holdings Bhd’s business model is “clearly not working” and Malaysia’s state-controlled carmaker needs a “radical overhaul” to stay relevant, Maybank Investment Bank Bhd said in a report today. Maybank reiterated a “sell” rating on the stock.

(The Edge) Total outstanding balances due from cardholders in the first four months of 2009 for payments in the near term rose as more cardholders face difficulties in servicing their credit card payments on time in an environment of a global economic slowdown. According to Bank Negara Malaysia statistics, total outstanding balances for the period of three to six months due from cardholders rose 15% in the first four months of 2009 to RM2.12 billion from RM1.84 billion in the period of September to December of 2008.

(The Edge) REDtone International Bhd may consider a cash call via rights issue as part of its fund-raising effort over the next 12 months, said its group CEO Zainal Amanshah.

(The Edge) In a report released by the World Gold Council (WGC) last week, total investments in gold vaulted by 248%, or 596 tonnes, year-on-year in the first quarter of the year (1Q). In value terms, this represented a net inflow of US$17.4 billion (RM60.9 billion) from US$5.1 billion a year earlier.

(The Edge) The Labuan Offshore Financial Services Authority (Lofsa) today issued the Guideline on Co-Location of a Labuan Holding Company, which will allow Labuan holding companies to establish their operational and management office here. The guideline issued is part of the national financial liberalisation package announced by Prime Minister Datuk Seri Najib Razak in April 2009.

(The Edge) The ringgit traded at its strongest level in four months versus the US dollar today, against the landscape of a weakening greenback and higher demand for the local currency. Economists said an improving global economic outlook had prompted investors to hold less US dollars, deemed a safe-haven currency during market uncertainties, and focus instead on the potential upside of emerging market assets, such as Malaysian equities.

(The Edge) TA Enterprise Bhd’s (TAE) wholly owned subsidiary Flamingo Projects Sdn Bhd is acquiring a parcel of freehold land measuring 3,629 sq m, together with a four-storey commercial building, Wisma Dijaya, and one level of basement carpark in Damansara Utama from Elite Meridian Sdn Bhd for RM26 million.

(Bernama) The 10th Malaysia Plan (10MP) will be based on a new economic model to ensure that all efforts towards economic recovery in the country run smoothly. Minister in the Prime Minister’s Department, Tan Sri Nor Mohamed Yakcop said that although 10MP will take effect only in 2011, the government has started early planning on the five-year economic programme to ensure a sustainable development.

(Bernama) Permodalan Nasional Bhd (PNB) is confident that its 9.3 million investors will continue to see profit amid the current economic downturn. Its President and Group Chief Executive, Tan Sri Hamad Kama Piah Che Othman said the group was monitoring the performances of more than 300 of its investee companies so that they can compete amid the economic uncertainty.

(Bernama) Majlis Agama Islam Selangor (MAIS) plans to soon propose to the Selangor state government the ways of carrying out Syariah based administration and finances in all the government linked companies (GLCs) in the state.

(Bernama) The amount of tax collected for the first four months of this year showed an increase compared to the same period last year, said the Deputy Minister of Finance Senator Datuk Dr Awang Adek Hussin. However, he said the sluggish global economy at present is expected to affect the overall amount in taxes collected for this year.

(Bernama) More members of the Employees Provident Fund (EPF) are opting for flexible withdrawals as they reach 55 years of age to better manage their retirement savings. In a statement here Monday, the EPF said the Flexible Age 55 Withdrawal saw a significant increase in its take-up rate during the first quarter of 2009 (Q1 09).

(Business Times) PUBLIC Bank’s wholly-owned subsidiary, Public Mutual Bhd, today declared the final dividends for five of its funds for the financial year ended May 31, 2009.

The distributable income comprised 6.00 sen for the Public Ittikal Fund, 1.75 sen for the Public Islamic Equity Fund, 2.00 sen for the Public Dividend Select Fund, 5.00 sen for the Public Balanced Fund, and 2.50 sen for the Public Select Bond Fund.

In a statement today, Public Mutual’s chairman Tan Sri Dr Teh Hong Piow said he was pleased that the company was able to declare distributions on the five funds despite the current trying times.

“Although the market conditions were challenging, our funds still managed to outperform their respective benchmarks and achieved respectable double-digit three year returns to investors,” he said.

Based on The Edge-Lipper report dated May 18 this year, Public Ittikal Fund and Public Islamic Equity Fund generated a three-year return of 16.87 per cent and 19.26 per cent respectively for the period ended May 8 this year.

Public Mutual said both funds outperformed the benchmark, which registered a return of 7.92 per cent for the same period.

Meanwhile, Public Dividend Select Fund generated a three-year return of 23.33 per cent for the period ended May 8 this year, outperforming the benchmark, which registered a return of 6.30 per cent for the same period.

Public Balanced Fund and Public Select Bond Fund also surpassed their respective benchmarks by registering three-year returns of 26.33 per cent and 13.85 per cent respectively.

Public Mutual, which is the largest private unit trust company in Malaysia, manages 69 funds for more than two million account holders.

As at May 8 this year, the total net asset value of the funds managed by the company was RM27.4 billion.