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Reports Malaysia

Malaysia stock market and companies daily report (July 11, 2014)

July 11, 2014, Friday, 05:19 GMT | 00:19 EST | 08:49 IST | 11:19 SGT
Contributed by Shares Investment

May’s IPI Up 6%

- Malaysia’s industrial production index (IPI) improved 6 percent year-on-year in May, surpassing economists’ expectations of between 4 percent and 4.5 percent.

- Among the three main sectors, manufacturing led the way with a 7.8 percent rise while electricity and mining were up 4.6 percent and 1.4 percent respectively.

- Year-to-date, IPI has expanded 5.1 percent on a year-on-year basis with the manufacturing gauge the fastest growing among the three sectors.

Significance: In view of the uptick in the first quarter and sustained recovery in external demand from advanced economies, Alliance DBS Research has revised its 2014 gross domestic product forecast to 5.3 percent, up from its earlier forecast of 5 percent.

Parkson To Venture Into F&B, Corporate Gift Sales And Fashion

- Parkson Holdings has proposed to acquire a 60 percent stake in Giftmate and AUM Hospitality as well as a 50 percent stake in Valino International Apparel for a total cash consideration of RM59 million.

- Parkson plans to boost earnings by acquiring equity in firms involved in corporate gifts sales, food and beverage and fashion retail that complements the group’s shopping mall retail segment.

- Giftmate is involved in the production of branded premium and premium gift related products. Valino specialises in menswear, specifically the Kent brand from the Indonesia and Geoffrey Beene brand from the US. AUM operates 12 brands under its name, mainly Johnny Rockets, Quiznos, Bumbu Desa and The Library Coffee Bar.

Significance: These acquisitions have provided synergy to the Parkson group’s existing retail locations and represent a new business and income stream for the group.

Perak To Develop RM390m Animation Theme Park

- Animation Theme Park, a joint venture between Perak Corporation and Sanderson Project Development Malaysia, is looking to develop Asia’s first animation theme park in Ipoh, Perak.

- The theme park, known as Movie Animation Park Studio (MAPS), is set to cost RM390 million and is expected to be completed by end-2015.

- In order to finance the development expense, Perak has entered into a syndicated term loan facility worth RM280 million to partly fund the project.

Significance: With over 40 attractions including a car stunt show and 4D theatre, MAPS is set to transform the landscape of Perak’s tourism industry.