Reports » Malaysia

Malaysia stock market and companies daily report (October 04, 2012)

Contributed by Shares Investment

Malaysia 2012 GDP Growth Up To 4.6% By ADB
Asian Development Bank (ADB) has revised its forecast for Malaysia’s economic growth from 4.0 percent this year to 4.6 percent as domestic demand rose more than expected in the first half. However, the updated ADB Outlook Report for Asia reduced Malaysia’s GDP growth forecast for 2013 to 4.8 percent from 5.0 percent in view of a slower global recovery. According to ADB, the Malaysian economy’s higher than projected growth in the first half of 2012 was mainly attributed to strong consumption and investment that benefited from fiscal stimulus; this had helped the robust domestic demand outweigh weakness in exports. In the updated assessment, weak external demand will continue to hamper economic growth. The forecast also assumes that national elections to be held by or before April 2013 will go smoothly where government policies will be maintained and continue to provide significant support for growth.
Significance:  The country’s Economic growth had been resilient despite weaker-than-expected growth in major export markets. Nevertheless, the export driven economy is closely linked to global growth, so prospects for next year would be challenging if the global recovery comes short of expectation.

MAHB Subsidiary In JV To Maintain Qatar Airport
Malaysia Airports Holdings (MAHB) through its wholly owned subsidiary, Malaysia Airports Consultancy Services (MACS) have set up a joint venture (JV) company with a Qatari. The JV company that is known as Malaysia Airports Consultancy Services Gulf LLC incorporated in Doha, Qatar will enable MACS to undertake the facilities maintenance task at airports, including the new Doha International Airport. The Qatari, Hamad Abdullah Al-Attiyah will carry a 51 percent equity share while MACS will hold the remaining, according to a filling with Bursa. Internally generated funds have been used to finance the initial funding of approximately RM170,000, while working capital requirements of the MACS Gulf LLC are to be funded through the initial share capital, shareholder’s loan as well as external finance facilities. Earlier this year, MAHB was awarded the MS1900:2005 Quality Management System from Islamic Perspectives Certification, in which is likely to boost the group’s chances of securing the project in the Middle East Market.
Significance: The establishment of the JV would help MAHB to continue pursuing opportunities and strengthen the company’s presence in the overseas market in terms of development, operation and management of airports.

Instacom Targets RM88m Revenue for FY12
Instacom Group has forecast its revenue to reach RM88 million for its 2012 financial year. The chief executive officer of the Sarawak-based telecommunications engineering and services provider is optimistic on achieving this target based on the approximate RM15 million after-tax profit guarantee which was made for the current and next financial year. According to the CEO, Anne Kung; the group achieved a turnover of RM87 million and profit after tax of RM9.9 million last year . Furthermore, the company had recently announced the relisting of Instacom on the main board of Bursa Malaysia on Monday, 8 October. The re-listing exercise was initiated after the conclusion of a reverse takeover of I-Power. Anne further commented that the re-listing is a very important milestone for Instacom, being a Sarawak based company whose forte is in the service sector, rather than resource or manufacturing.
Significance: Instacom’s operations are focused in the southern region of Klang Valley, Malacca and Johor as well as East Malaysian states of Sabah and Sarawak. It also has bases in the northern states. This provides the group an edge over competitors to participate in or bid for major projects implemented by the government that are expected to be constructed over the next five to 10 years.