Reports » Malaysia

Malaysia stock market and companies daily report (January 08, 2013)

Contributed by Shares Investment

Permaju Falls In Active Trade
Shares of Permaju Industries slipped on active trade Monday despite news of it being close to securing timber concession land in Sabah and Sarawak. It was down 4.5 sen and closed at 44.5 sen with 37.9 million shares traded, after it hit its three-month high of 52.5 sen yesterday. Permaju, which is controlled by Tan Sri Chai Kin Kong, was close to securing 809.4 hectares of timber concession land awarded by the state-controlled Yayasan Sabah. At its peak, Permaju had some 129 hectares of state-given land concession in Sabah. The impending award will be for a period of between 30 years to 60 years. Under the terms of the contract, Permaju will help clear the land, said to be a virgin jungle area which is filled with valuable timber, and then plant oil palm. The company will share any proceeds from the planned oil palm estate with Yayasan Sabah.
Significance: The potential concession will make Permaju the largest land concession owner in Sabah. The proceeds from timber will go directly to Permaju, estimated at more than RM1 billion, a source said.

Top Glove Inks IT Collaboration Pact With SAP, Brightree
Top Glove Corporation, the world’s largest rubber glove manufacturer, has entered into an IT agreement with SAP Malaysia and Brightree Solutions to invest in SAP’s solutions for the enterprise-wide IT transformation. Given the increasing complexity of its business operations, Top Glove believes a centralised and systematic business process will enable it to cope with its rapid expansion and development of new facilities. As such, Top Glove and SAP will bring together their expertise to kick-start the myTGSAP project, customising an innovative solution that would help the company strive further. In the meantime, Brightree will implement the SAP solutions for Top Glove in production, quality management, sales and distribution, materials management and finance. “As we expand our business, Top Glove’s existing IT operations systems have certain limitations in capturing all the information from our business processes. The traditional approach has presented challenges in terms of corporate governance hence increased exposure to corporate and governance risk,” Top Glove chairman Tan Sri Lim Wee Chai said. The IT solutions are expected to go live in the second half of 2013.
Significance: With the implementation of SAP applications, Top Glove will be able to adopt world-class solutions to alleviate the risks, reduce the cost of compliance, and standardise its business operation activities in order to achieve operational efficiency, thus further enhance the company’s competitive edge.

MAHB Welcomes KLIA2 Opening Date
Malaysia Airports Holdings (MAHB) is pleased with the government’s decision to extent the opening of the Malaysia’s second low-cost terminal airport, which is initially scheduled on May this year. The official opening of KLIA2 will be held on 28 June, which is coincidence with the anniversary of the Kuala Lumpur International Airport (KLIA) and the commencement of the Malindo Airways. Prime Minister Datuk Seri Najib Razak is of opinion that there should be no rush in launching the new airport until it is ready. The new date will enable the airport authorities to overcome teething problems with the new set-up, Najib added. Costing over RM3.6 billion, KLIA2 will be the world’s largest purpose-built terminal for low-cost carriers (LCCs) with the capacity to serve up to 45 million passengers annually. MAHB managing director Tan Sri Bashir Ahmad said many airports worldwide failed due to their eagerness to start operations without resolving the glitches first. “We must not rush into a big project, we have to do it well and make sure everything is ready when we are open.”
Significance: MAHB is optimistic that this year would be a good year for it. Currently the company is providing airport operation and technical services for several international airports including Hyderabad, India and Turkey and is making a bid for UK’s Stansted Airport.