New York: 07:33 || London: 12:33 || Mumbai: 16:03 || Singapore: 18:33

Reports Malaysia

Malaysia stock market and companies daily report (June 12, 2014)

June 12, 2014, Thursday, 06:49 GMT | 01:49 EST | 10:19 IST | 12:49 SGT
Contributed by Shares Investment


Malaysia’s April IPI Up 4.2%

- The country’s industrial production index (IPI) grew 4.2 percent year-on-year in April as a result of stronger external demand for manufactured products.

- The rise was attributable to improvement in all sub-indices – manufacturing (up 4 percent), mining (4.7 percent) and electricity (3.9 percent).

- Separately, the manufacturing sector posted a 7.7 percent growth in sales, underpinned by higher transaction value from refined petroleum products as well as electric and electronic components.

Significance: Affin Investment Bank is maintaining its forecast of 5.5 percent in gross domestic product growth, supported by export and domestic demand.


MSM In Discussion With Foreign Sugar Producers

- In order to expand its downstream and upstream businesses overseas, MSM Malaysia Holdings is in talks with three to four overseas sugar players for collaborations or merger and acquisition opportunities.

- For its upstream business, the firm is eyeing several countries in Indochina while Asia and Africa are its geographical choices for its downstream segment due to their growing consumption rate.

- Separately, MSM expects its joint-venture (JV) agreement with Al-Khaleej International to develop a sugar refinery at the Port of Tanjung Pelepas, Johor, with a target completion in 2016.

Significance: More involvement in the downstream business would enable MSM to lower the cost of importing raw materials and lift its profit margin in the future.


Scomi Energy Awarded 7-Year Risk Service Contract

- Scomi Energy Services’ joint venture, Ophir Production (OP), has bagged a seven-year small field risk service contract from Petroliam Nasional for the development and production of petroleum from the Ophir field, offshore Malaysia.

- OP is tasked to implement the approved field development plan with activities including the drilling of wells, the installation of a production platform and export and storage of oil via a floating storage facility.

- The development portion of the project is estimated to cost US$135 million (RM432.2 million) with first oil expected to be produced within 18 months.

Significance: The contract widens Scomi’s service offerings in the upstream segment and enhances its position in the oil, gas and petrochemical value chain.