1 ddo22 WEDNESDAY, SEPTEMBER 2, 205 FBM KLCI KLCI FUTURES STI RM/USD CPO RM OIL US$ GOLD US$ Subscribe NOW! 3 months for RM30 (or more if you like) subscribe.theedgemarkets.com CCM shuts down fertiliser plant in Shah Alam 4 CORPORATE & MARKET 4 Special Economic Committee sees growth despite issues troubling Malaysia CORPORATE & MARKET 5 FGV mulls revising Indonesia deal terms CORPORATE & MARKET 6 2 submit proposals to bid for Bandar Malaysia project MOODY S AND FITCH WARN OF CREDIT NEGATIVE FACTORS TUESDAY, SEPTEMBER 8 Balancing work and life as a team 8 GENERAL NEWS 5 Police to question Bersih 4 rally organisers GENERAL NEWS 6 This digital copy is brought to you by Make Selangor investment firm a statutory body OPINION 7 Maybe this slowdown is different Say political uncertainties could erode economic fundamentals. Ahmad Naqib Idris has the story on Page 4.
2 ddo22 WEDNESDAY, SEPTEMBER 2, 205 FBM KLCI KLCI FUTURES STI RM/USD CPO RM OIL US$ GOLD US$ Subscribe NOW! 3 months for RM30 (or more if you like) subscribe.theedgemarkets.com 4 CCM shuts down fertiliser plant in Shah Alam TUESDAY, SEPTEMBER 8 Balancing work and life as a team 8 CORPORATE & MARKET 4 Special Economic Committee sees growth despite issues troubling Malaysia CORPORATE & MARKET 5 FGV mulls revising Indonesia deal terms CORPORATE & MARKET 6 2 submit proposals to bid for Bandar Malaysia project GENERAL NEWS 5 Police to question Bersih 4 rally organisers GENERAL NEWS 6 Make Selangor investment firm a statutory body OPINION 7 Maybe this slowdown is different MOODY S AND FITCH WARN OF CREDIT NEGATIVE FACTORS Say political uncertainties could erode economic fundamentals. Ahmad Naqib Idris has the story on Page 4.
3 2 WEDNESDAY SEPTEMBER 2, 205 DIGITALEDGE DAILY For breaking news updates go to ON EDGE TV Sime Darby building sustainable, urban communities Confirmed Najib won t be attending anti-graft conference The Edge Markets Sdn Bhd (04546M) Level 3, Menara KLK, No Jalan PJU 7/6, Mutiara Damansara, 4780 Petaling Jaya, Selangor, Malaysia Publisher and Group CEO Ho Kay Tat Editorial For News Tips/Press Releases Tel: Fax: Senior Managing Editor Azam Aris Executive Editors Kathy Fong, Jenny Ng, Siow Chen Ming, Surinder Jessy, Ooi Inn Leong Associate Editors R B Bhattacharjee, Joyce Goh, Jose Barrock, Vasantha Ganesan Editors Cindy Yeap, Kang Siew Li Assistant Editors Adeline Paul Raj, Tan Choe Choe Chief Copy Editor Halim Yaacob Senior Copy Editors Lam Seng Fatt, Melanie Proctor Copy Editor Evelyn Chan Art Director Sharon Khoh Design Team Cheryl Loh, Valerie Chin, Aaron Boudville, Aminullah Abdul Karim, Yong Yik Sheng, Tun Mohd Zafian Mohd Za abah, Noorain Duasa Asst Manager-Editorial Services Madeline Tan Corporate Managing Director Au Foong Yee Deputy Managing Director Lim Shiew Yuin Advertising & Marketing To advertise contact GL: (03) Fax: (03) Chief Marketing Officer Sharon Teh (02) General Manager, Digital Media Kingston Low (02) Senior Sales Managers Geetha Perumal (06) Fong Lai Kuan (02) Peter Hoe (09) Gregory Thu (02) Senior Manager, Integration Shereen Wong (06) Head of Marketing Support & Ad Traffic Lorraine Chan (03) Ad Traffic Asst Manager Roger Lee (03) Operations To order copy Tel: / 8033 Fax: China jitters send global stocks tumbling Global growth likely to be weaker than expected months ago BY MARC JONES LONDON: World stocks and commodity prices tumbled yesterday, as poor Chinese data saw fears about its economic health intensify. After a few upbeat days for world markets, concern about China revived after surveys showed its manufacturing sector shrinking at its fastest pace in three years and its services sector also cooling. Asian stocks, particularly in Japan and Australia, fell overnight, and the gloomy mood extended to Europe. The FTSEurofirst 300 dropped 2.3%, following its worst month in four years. Futures prices also pointed to Wall Street opening 2% lower. Oil CLc fell back US$.50 (RM6.24) towards US$50 a barrel, halting the biggest three-day surge in 25 years. The problem is that we have these brief spells of optimism like we had last week when US gross domestic product was revised up, but the overall theme is still the weakness in China and that is very hard to dispel from markets, said Philip Marey, a strategist at Rabobank in the Netherlands. While shares and commodities remained the focus, the mood was similarly wary in the currency and bond markets. The safe-haven Japanese yen and the low-yielding euro both rose against the dollar, to 20.6 per dollar and US$.323 to the euro. Gold, another favourite of investors during periods of uncertainty, was up at US$,43 an ounce. It had risen 3.5% in August, its best month since January. The head of the International Monetary Fund, Christine Lagarde, summed up the situation in a speech in Indonesia, where she said global economic growth was now likely to be weaker than had been expected just a few months ago. She cited both a slower recovery in major advanced economies and a further slowdown in emerging nations and highlighted the need to be vigilant for spillovers from China s stutters. The transition [in China] to a more market-based economy and the unwinding of risks built up in recent years is complex and could well be somewhat bumpy, she added. Reuters Silicon Valley rule of thumb points right way BY CHRISTIAN ZHANG NEW YORK: Silicon Valley is double-checking its math. In a land that fetishises growth over profitability, there s a new rule of thumb for software firms that establishes a relationship between the two rates. A Breakingviews analysis suggests it can be a useful guideline. Investors should just be wary of extrapolating too much from it. Technology entrepreneurs and their backers typically pay more attention to the top line than the bottom line. That s starting to change a bit, with venture capitalists buzzing about a new back-of-the-envelope calculation. Brad Feld of Foundry Group and Fred Wilson of Union Square Ventures both have blogged about the idea that annual revenue growth plus operating margin call it Gams, for growth and margin sum should equal 40%. That would help a company go some way to justifying losing money. If revenue is growing at, say, 75%, then it could burn cash at a rate of 35% of sales. Similarly, if growth slowed to 30%, an operating margin of 0% would suffice. Just as some investors look to quotients like the PEG ratio, which measures a price-to-earnings multiple against a company s growth rate, Gams could be a useful gauge for fast-growing but unprofitable firms selling shares in an initial public offering (IPO). A Breakingviews analysis of 27 publicly traded, subscription-based software compa- nies found that those that became profitable within three years of their IPO on average had previously generated higher Gams than those that remained unprofitable. The 40% threshold does not necessarily portend investment success, which may be a relief to owners of Box and Zendesk, both of which fall short. Jive Software tallied a sum of -4% before its 20 IPO. Since then, its growth has slowed and its deeply negative margins haven t improved. Jive s share price also has tumbled by 75%. Marin Software s stock has An investor at a brokerage house in Shanghai last Tuesday. Poor Chinese data saw fears about its economic health intensify. Photo by Reuters suffered similarly even though it could tout a pre-ipo Gams of 44%. Any rule of thumb runs the risk of being corrupted or distorted. There s no special magic to the 40% figure. And there s even less evidence the model suits social media, online commerce or other sorts of tech business models. Even so, a reasonable inference from the analysis is that software developers and their investors can afford to look beyond just runaway growth and needn t fear turning a profit. A healthy balance between the two will work. Reuters IN BRIEF MB denies Johor Sultan discredited govt NUSAJAYA: Johor Menteri Besar Datuk Seri Mohamed Khaled Nordin denied yesterday that the Sultan of Johor, Sultan Ibrahim Sultan Iskandar, had issued a statement disparaging the Umno-led government as reported in the social media. Sultan Ibrahim had never written or spoken thus as reported in the social media, he said, adding that spreading such news was malicious. I was instructed by Tuanku Sultan to strongly dismiss the statement being circulated. I emphasise here that the sultan has never written or spoken thus. The act of spreading the libellous statement is of malicious intent, apparently to tarnish the good relationship between the Johor palace and the government, he told reporters after chairing the first meeting of the Green Technology and Climate Change Council here. Bernama Aviva Asia CEO leaving to helm Great Eastern SINGAPORE: Insurer Great Eastern Holdings has named industry veteran Khor Hock Seng as its new group chief executive officer (CEO), it said in a Singapore Exchange filing yesterday. Khor, 56, according to The Business Times report will take over on Nov 2 from Great Eastern s acting group CEO, Norman Ip, who will remain a director there. Khor will be moving over from rival insurer Aviva Asia. His departure from the Aviva group comes barely three months after it tapped Khor in mid-june 205 to be the new CEO of its freshly bought subsidiary, Friends Provident International. Wanita BN pledges full support for Najib KUALA LUMPUR: Wanita Barisan Nasional (BN) pledged its full support yesterday for the leadership of Prime Minister Datuk Seri Najib Razak, who is also BN chairman. As a party machinery which has always been close to the people, we know that the majority of the people at the grass roots are still supporting Najib. Hence, we are bringing the voice of the people and will continue to support the leadership of the prime minister, Wanita BN chief Datuk Seri Shahrizat Abdul Jalil told reporters after chairing the Wanita BN meeting at Menara Dato Onn here. Bernama Wanita Umno leader sacked from party KUALA LUMPUR: A Wanita Umno member who filed a suit against party president Datuk Seri Najib Razak and party executive secretary Datuk Ab Rauf Yusoh was sacked from the party yesterday. Anina Saadudin, who filed a suit against Najib last Friday to account for the chronology of events involving RM2.6 billion channelled into his personal bank accounts, is officially no longer the Langkawi Wanita Umno leader. The Malaysian Insider
4 WEDNESDAY SEPTEMBER 2, 205 DIGITALEDGE DAILY EVERYBODY IS CREATIVE
5 4 CORPORATE & MARKET WEDNESDAY SEPTEMBER 2, 205 DIGITALEDGE DAILY Moody s and Fitch warn of credit negative factors Political uncertainties could erode economic fundamentals BY AHMAD NAQIB IDRIS KUALA LUMPUR: Malaysia catches the attention of international ratings agencies again. Both Moody s Investors Service Inc and Fitch Ratings issued credit reports yesterday highlighting that political uncertainties could erode economic fundamentals. The latest reports by the duo swung share prices on Bursa Malaysia, besides dampening regional sentiment. The FBM KLCI leaped to a high of, points in the first trading hour, soaring 2.94% or points from last Friday s close. But strong selling emerged soon, pulling down the index to a low of, It closed at,609.2, down 3.53 points or 0.22%. Moody s, which has an A3 positive rating on Malaysia, said the continued political uncertainty could dampen business sentiment and economic growth. The agency forecasts gross domestic product growth to slow to 4.8% in 205 from 6% in 204. It noted that the weekend protests reflect the ongoing political uncertainty in the country, which it said could impact sentiment and capital inflows. This, in turn, is likely to chip away at reserves and the growth outlook, both of which have been buffering against market volatility but have trended downwards this year, a credit negative, it said in the report. The credit ratings agency said the country s large reserves and robust growth outlook, along with exchange rate flexibility and fiscal consolidation efforts, had offset the negative impact of market volatility on the sovereign credit profile. However, if business confidence and capital inflows continue to weaken, Moody s opined that this would gradually erode the support that reserves and growth have offered thus far. The pace of economic expansion will moderate as the GST (goods and services tax) and lacklustre sentiment curb consumption and investment, and lower oil prices push down liquefied natural gas prices with a lag, said Moody s. Meanwhile, Fitch Ratings, which has recently revised Malaysia s outlook to stable from negative, pointed out that the large demonstrations highlight the political volatility in Malaysia, but added that weak governance had already been factored in its A3 sovereign rating on the country. The recent political uncertainty in Malaysia falls in line with the country s relatively weak governance ranking. World Bank governance indicators place it in the 62nd percentile, well below the median for A rated countries, which is around the 75th percentile. Malaysia scores particularly poorly on the voice and accountability and political stability indicators within the governance rankings, said Fitch. However, the agency said weakening external accounts are a more pressing credit risk for Malaysia, noting the fall in foreign reserves to US$95 billion (RM395.2 billion) in mid-august and the ringgit s weakness against the US dollar. The agency noted reforms such as the introduction of the GST and the abolishment of fuel subsidies, but said further that fiscal measures are likely needed to achieve the government s long-term plan for a balanced budget by It would be [a] credit negative for Malaysia should the political volatility result in the government backtracking on these reforms. In the longer term, Fitch will continue to assess the credit impact both positive and negative of these economic policies, said the agency. Over at Bursa, Danny Wong, chief executive officer of Areca Capital Sdn Bhd, said the KLCI was dragged down by declines in banking stocks, and said the index s fall was in line with the lower close in US, European and Asian markets. The market was up earlier in the day following the Bersih  rally over the weekend, but there was some speculative selling of some of the banking stocks, which dragged down the index, he said. It was noted that banking stocks such as CIMB Group Holdings Bhd, Hong Leong Financial Group Bhd and RHB Capital Bhd posted declines during yesterday s session. Although the index found its bottom last week, the KLCI is still seen to be unstable. The direction of the KLCI, going forward, will still depend on the direction of oil prices and the ringgit, he said. Wong sees the immediate support level for the index at the,560 points level. In Asia, markets were broadly down, with Japan s Nikkei 225 declining 3.84% to 8,65.69, China s Shanghai Composite Index falling.23% to 3,66.62, Hong Kong s Hang Seng Index decreasing 2.24% to 2,85.43, and South Korea s Kospi settling.4% lower at, In Southeast Asia, Indonesia s Jakarta Composite Index fell 2.5% to 4,42.46; Singapore s Straits Times Index lost.32% to 2,882.77; and Thailand s SET declined.56% to Special Economic Committee sees growth despite issues troubling M sia BY RAM ANAND BY CHESTER TAY KUALA LUMPUR: TH Heavy Engineering Bhd yesterday announced the resignation of its non-independent and non-executive chairman Datuk Azizan Abd Rahman, citing conflict of interest as a reason. It has redesignated its director Datuk Ghazali Awang as non-independent and non-executive chairman to succeed Azizan. According to TH Heavy s website, Azizan, 65, was appointed chairman and a director of the company on June, Azizan started his career as a shipping executive at Harper Gilfillan (M) Sdn Bhd. He subsequently joined JF Apex Securities Bhd in 982 as an executive director and started his career in Abdul Wahid met with the other nine members of the committee in Putrajaya yesterday, and will have another meeting with them on Friday as they begin to formulate their action plan. The Edge file photo KUALA LUMPUR: Malaysia s growth in 205 will continue at between 4.5% and 5.5% despite several issues plaguing the country now, the newly set up Special Economic Committee (SEC) said in Putrajaya yesterday after meeting for the first time. The committee, which was set up by Prime Minister Datuk Seri Najib Razak in a bid to tackle concerns about the free fall of the ringgit and falling commodity prices, said that it would make the necessary proposals to the prime minister, who will have the final say on the proposals. But they refused to delve into specifics of the proposals they would be making. The committee s chairman, Datuk Seri Abdul Wahid Omar, met with the other nine members of the committee in Putrajaya yesterday, and will have another meeting with them on Friday as they begin to formulate their action plan. The meeting proceeded smoothly with a number of suggestions and recommendations, Abdul Wahid said during a press conference yesterday. Najib s younger brother, CIMB Group Holdings Bhd chairman Datuk Seri Nazir Razak, is also part of the committee. The committee discussed the value of the ringgit, the stability of the financial markets and strengthening confidence in the capital market. The ringgit is currently the worst performing currency in Asia, with the currency value hitting a 7-year low, drawing comparisons to the 997 Asian financial crisis. The committee has been tasked to formulate immediate and medium-term plans to strengthen the economy. The Malaysian Insider TH Heavy chairman Azizan resigns over conflict of interest the stockbroking industry. He was an active member of the stockbrokers fraternity and held the post of chairman of the Association of Stockbroking Companies of Malaysia from 994 to 995. He is currently chairman of Eastern & Oriental Bhd, Gefung Holdings Bhd and the investment panel of Lembaga Tabung Haji. In a filing with Bursa Malaysia yesterday, TH Heavy said Ghazali, 68, was appointed to TH Heavy s board of directors on Aug 27. Currently, Ghazali also sits on the board of CCM Duopharma Biotech Bhd as a senior independent non-executive director. TH Heavy shares appreciated.5 sen or 9.68% to close at 7 sen yesterday, with a market capitalisation of RM73.77 million. CCM shuts down fertiliser plant in Shah Alam, retrenches 230 staff BY CHESTER TAY KUALA LUMPUR: The prolonged downtrend in crude palm oil (CPO) prices has taken a heavy toll on Chemical Company of Malaysia Bhd (CCM), whom yesterday announced that it is shutting down its fertiliser plant in Shah Alam and retrenching 230 staff. In a statement yesterday, CCM cited the reason for the shutdown being oil palm planters opting for cheaper fertilisers due to the low edible oil prices. This resulted in poor demand for ammonium nitrate (AN)-based fertilisers that are produced by the plant in Shah Alam. CCM told Bursa Malaysia yesterday that the move is to mitigate risk associated with its business. We are extremely saddened by this situation, and the untenable business proposition left us [with] no choice but to resort to this option, the group said. The plant is owned by CCM Fertilizers Sdn Bhd, in which CCM holds a 50.% equity stake, while Lembaga Tabung Haji owns the remaining 49.9%. According to CCM, CCM Fertilizers posted a pre-tax loss of RM4.3 million in 204, mainly due to changes in market conditions driven by the decline in CPO prices. Like many commodity prices, CPO prices have been drifting lower from the height of RM4,000 per tonne in early 20 to a low of RM,800 last week. The edible oil price closed at RM,976 per tonne yesterday. In the statement, CCM said it would outsource its AN-based fertiliser manufacturing to a third-party manufacturer moving forward, and reiterated that there would be no change with respect to the availability of its Cock s Head brand products as manufacturing of the products would continue at its plants in Lahad Datu, Sabah and Bintulu, Sarawak. CCM expects the redundancy and asset impairment exercise will cost approximately RM30 million, and barring any unforeseen circumstances, the closure of the plant is expected to be completed by June 30, 206. The performance of its fertiliser division has dragged down CCM s earnings. Last week, CCM released its second quarter ended June 30, 205 (2QFY5) financial results which saw net profit shrinking 85% to RM33,000 from RM2.2 million a year ago. Revenue declined 25% to RM233.6 million in 2QFY5 from RM3. million a year ago. The group attributed the disappointing earnings to its fertiliser division.
6 WEDNESDAY SEPTEMBER 2, 205 DIGITALEDGE DAILY CORPORATE & MARKET 5 FGV mulls revising Indonesia deal terms To take into account issues discovered during due diligence KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGV), the world s biggest crude palm oil (CPO) producer, is considering seeking revised terms for its US$680 million (RM2.83 billion) deal to buy a stake in PT Eagle High Plantations, people with knowledge of the matter said. FGV may ask for a lower price to take into account issues discovered during due diligence on the Indonesian company, two of the people said, asking not to be identified as the information was private. The two companies reached a preliminary agreement in June and said they planned to announce a final pact by mid-august, a deadline that has since been extended to Oct 3. FGV said on Aug 4 it had substantially completed due diligence and was in the process of negotiating the terms of the definitive documentation. Eagle High s share price has fallen 42% since the initial deal was announced, while CPO s price has dropped 2% on concerns that slowing Chinese growth will hinder other emerging economies. The Indonesian company currently owns about 425,000ha of land, of which 52,000ha have been planted, according to a June filing. FGV said on June 2 it planned to buy a 37% stake in Eagle High from Indonesian conglomerate Rajawali Group for US$680 million in cash and shares. That implies an enterprise value of about US$7,400 per hectare of land, compared with the US$25,900 that Sime Darby Bhd paid GEORGE TOWN: The fire that razed several buildings of Poh Huat Resources Holdings Bhd s unit Poh Huat Furniture Industries Vietnam Joint- Stock Company (Poh Huat Vietnam) on Aug 23 has resulted in combined damage of US$2.4 million (RM9.98 million). The fire, which lasted from 3.20am till 0.5am the same day, occurred at two factory blocks housing a finishing line and a finished goods warehouse measuring about.05ha, Poh Huat Resources said in a filing with Bursa Malaysia yesterday. Listing its damages, Poh Huat Refor New Britain Palm Oil Ltd in March, FGV chief executive officer Datuk Mohd Emir Mavani Abdullah said in a July interview. FGV said in an ed statement that the deal was still in process for the time being and the final report on due diligence would be announced at the company s upcoming shareholders meeting. Darjoto Setyawan, managing director of Rajawali Group, didn t answer an and call to his mobile phone seeking comment. FGV, which manages 450,000ha of land in Malaysia and Indonesia, has lost nearly three quarters of its market value since its June 202 initial public offering. Its second-quarter net income fell 70% to RM46. million due to lower sale prices of its CPO. Bloomberg Mueller flashing a thumbs up sign at the pilot as the Malaysia Airlines aircraft was moved back from the parking bay at KLIA on Monday. New Malaysia Airlines takes off KUALA LUMPUR: The national carrier yesterday embarked on its new journey as Malaysia Airlines Bhd (MAB), with its chief executive officer Christoph Mueller and senior management holding a special walkabout at the KL International Airport in Sepang on Monday and yesterday, to meet and greet passengers on its flights. The new airline also announced the appointment of Proteek Sengupta as its interim head of revenue management, replacing Shihaj Abdulla Kutty who is leaving the airline. Proteek will lead the efforts to improve the revenue efficiency and network design for MAB. Naza on track to deliver RM556m mega expo centre in 2Q6 Poh Huat's Vietnam fire causes US$2.4m losses BY SANGEETHA AMARTHALINGAM sources said the total net book value of the damaged factory buildings, ancillary structures and installation was US$43,528. The total net book value of the damaged plant and machinery comprising spraying line pallets, tow-conveyor system, woodworking machinery, firefighting system, electrical installations and racking systems is US$283,667. The total net book value of workin-progress furniture parts, finishing materials and finished goods damaged by the fire is approximately US$.65 million, said the group. Poh Huat Resources (fundamental: 2.; valuation: 2.4) said it had put in place production shifts from one single 2-hour shift to two 0-hour shifts to mitigate the interruption caused by the fire. The group said its Vietnam unit was working with the insurer and adjusters for the insurance compensation for the losses from the fire. The insurance proceeds, upon receipt, will be utilised to offset the relevant reconstruction and repair costs and assets impairment charges arising from the damaged fixed assets and stocks, Poh Huat Resources added. Its shares rose two sen or 0.79% to close at RM2.56 yesterday, for a market capitalisation of RM27.08 million. KUALA LUMPUR: Naza TTDI Sdn Bhd, a unit of the Naza Group, said the RM556 million Malaysia International Trade and Exhibition Centre (Mitec), the country s largest exhibition space, is on track to be delivered to the government in the second quarter of 206. Naza TTDI deputy executive chairman and group managing director SM Faliq SM Nasimuddin said despite the challenges faced in the construction of the exhibition centre, it is now 80% completed. Work is now ongoing to complete the roof, façade and interior works. Apart from that, the infrastructure of the exhibition centre is ongoing and scheduled for completion at the same time," he said in a statement yesterday. Mitec is the first component of Naza TTDI s 30.55ha RM5 billion KL Metropolis development at Jalan Duta here. The exhibition centre will have a gross floor area of one million sq ft with a total of exhibition halls. It will also contain a multipurpose hall, meeting and conference rooms, media and press facilities, VIP lounges, restaurants, and food outlets. The exhibition centre will be able to accommodate 40,000 visitors at a time. Apart from the exhibition centre, the KL Metropolis features offices, hotels, regional retail centres and residences. The project had raised concerns after Naza TTDI secured the building-for-land deal from the government, which allowed it to buy the prime land and surrounding parcels for only RM620 million or RM226 per sq ft in 2009.
7 6 CORPORATE & MARKET WEDNESDAY SEPTEMBER 2, 205 DIGITALEDGE DAILY 2 submit proposals to bid for Bandar Malaysia project WTW will review and provide its recommendation to MDB Real Estate BY YIMIE YONG KUALA LUMPUR: Twelve companies have submitted proposals for the final stage of evaluation to participate as development partners in the 486-acre (96.67ha) Bandar Malaysia project in Sungai Besi. In a statement yesterday, CH Williams Talhar and Wong (WTW), the transaction adviser for the Bandar Malaysia request for proposal (RFP), announced that upon the close of bidding on Aug 28, 2 companies had submitted their proposals. We have received highly competitive responses above and beyond our expectations. The 2 final stage bidders comprise domestic private developers, government-linked companies and foreign parties either submitting independently or as a consortium, said WTW deputy managing director Danny Yeo. LBS Bina plans special dividend after China asset sale payment BY CHESTER TAY KUALA LUMPUR: LBS Bina Group Bhd has earmarked 40% of a HK$200 million (RM08 million) part payment as special dividend. In a filing with Bursa Malaysia yesterday, LBS said the HK$80 million would finance the special dividend within five months. The HK$200 million part payment forms a portion of the HK$.65 billion LBS will receive from the sale of its 00% stakes in Lamdeal Consolidated Development Ltd and Lamdeal Golf & Country Club Ltd to Zhuhai Holdings Investment Group Ltd. The board is pleased to announce that the company has today (yesterday) received the second tranche of deferred cash payment of HK$200 million, early by four months from the due date, it said. The board applauded the early payment as it enables the group to reduce its cost of borrowings thus contributing positively to the cash flow and earnings of the group for the financial year ending Dec 3, 205, LBS said. Besides the special dividend, LBS said it will use the HK$200 million to reduce bank borrowings and finance operating expenses. WTW will now review the proposals and provide its recommendation to MDB Real Estate Sdn Bhd (MDB RE), which will then shortlist selected final bidders before entering into financial and share sale agreement negotiations. WTW said the earlier expression of interest stage saw robust interest from 40 local and global players, including Singapore, China, Japan, South Korea and Australia. The bidders received an investment memorandum outlining Bandar Malaysia s development vision and its proposed master plan. To progress to this final selection stage, these companies had to showcase their track record, branding and financial capabilities to be a development partner for Bandar Malaysia. The commercialisation of Bandar Malaysia is part of a rationalisation plan for heavily-indebted Malaysia Development Bhd MWE Holdings' Vietnam unit to generate US$40m revenue in FY7 BY SANGEETHA AMARTHALINGAM NIBONG TEBAL (Penang): MWE Holdings Bhd s wholly-owned subsidiary United Sweethearts Garment Sdn Bhd (USG) expects to contribute about US$40 million (RM66.4 million) to group revenue from the next financial year ending March 3, 207 (FY7) upon the completion of its expansion plan in Vietnam. The number of production lines will increase to 42 from 26 currently in Dong Nai Province, southern Vietnam. USG managing director Tang Chong Chin said with more production lines, the subsidiary targets 60% revenue growth for FY7. With the increase in production lines in our Vietnam plant (United Sweethearts Garment (Vietnam) Co TMC Life Sciences appoints new chief executive officer BY SUPRIYA SURENDRAN KUALA LUMPUR: TMC Life Sciences Bhd has appointed Roy Quek Hong Sheng as its chief executive officer (CEO) effective today. In a filing with Bursa Malaysia yesterday, TMC said Quek, 45, a Singaporean, had served as the deputy secretary of operations and Yeo: We have received highly competitive responses above and beyond our expectations. Photo by Haris Hassan development of the Ministry of Home Affairs, Singapore since 203. He joined the board of directors of TMC on June 2 this year as an executive director (ED). The group added that Dr Wong Chiang Yin, 47, who had been an ED of TMC since January 20, has been redesignated to the post of non-independent and non-ed. (MDB) that was presented to the Cabinet on May 29. Meanwhile, MDB said it is encouraged by the high quality of bids received, and is confident of the success of the process. It is our plan to shortlist selected final bidders, enter detailed negotiations and execute a binding transaction by the end of 205, said MDB RE chief executive officer Datuk Azmar Talib in the statement. He further emphasised that in making a final decision, the board of directors of MDB will be guided by, among other things, value maximisation to MDB s shareholders, deal certainty, and terms that are fair and reasonable. Bandar Malaysia will be a mixed-use urban development that is expected to serve as a catalyst for the transformation of Greater Kuala Lumpur. Located within 7km of the Kuala Lumpur City Centre, the development will serve as Kuala Lumpur s gateway to the high-speed rail line to Singapore and become a central transport hub in the city via mass rapid transit, KTM Komuter, express rail link and future access to major highway networks. Ltd), our total lines will amount to 00, including 58 in Malaysia, he told reporters after MWE Holdings annual general meeting yesterday. We will be able to cater to higher demand in the United States and European markets. We hope to increase our market share in Europe with the additional production lines, he said, adding that its capital expenditure amounted to US$6 million. Tang said the plant expansion of its Vietnam unit, established in 2002, would be completed in the middle of next year, hence the expectation of revenue contribution in FY7. He added that the garment manufacturing sector contributes about 70% of MWE Holdings revenue, while the rest is derived from its telecommunications segment. For its first financial quarter ended June 30, 205 (QFY6), the group recorded a net profit of RM6.75 million on a revenue of RM84.8 million. MWE Holdings (fundamental: 0.65; valuation: 2) shares closed unchanged at RM.20 yesterday, with a market capitalisation of RM276.3 million. The Edge Research's fundamental score reflects a company s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations. Go to for more details on a company's financial dashboard. Wong, also a Singaporean, was formerly an ED of Pantai Holdings Bhd from May 2008 to May 2009 and was the interim CEO of Bright Vision Hospital in Singapore from March 200 to December 200. TMC, which is controlled by Singapore businessman Peter Lim Eng Hock with a 70.5% stake, operates the Tropicana Medical Govt to re-strategise to achieve 3.2% fiscal deficit KUALA LUMPUR: The government needs to relook at and re-strategise its resources in order to achieve a 3.2% fiscal deficit set for this year, Deputy Finance Minister Datuk Johari Abdul Ghani said. There s no more business as usual because we have limited resources [due to slumping oil prices], while our exports are affected, he said. In the first half of 205, the country s fiscal deficit narrowed to 2.8%. So, what we need to do now is for the government to have a relook at its income [from Petronas and other oil and gas companies]. And try to maximise with an option of how best to spend our limited resources and sail through this economic [uncertainty], he told a press conference after officiating at the CFO Summit 205, organised by the Asian Strategy and Leadership Institute, here yesterday. He said the country recorded a gross domestic product growth of 5.6% in the first quarter of this year and 4.9% in the second quarter amid external challenges. With the unstable ringgit, Johari encouraged industry players to use local raw materials to tide over current economic conditions unlike in good times, when they used to import raw materials from China, which were cheaper then. But now, it is high time that we looked at the industry needs where they (the raw materials) can be substituted with local materials, he said. Johari cautioned those with a penchant for converting the ringgit to the greenback. Imagine the impact on the country when everyone started converting the ringgit to the US dollar, unless they have a purpose to use it, such as buying raw materials, he added. Bernama Correction REFERRING to the article titled Aeon 2Q earnings down 66.6% that was published in digitaledge DAILY on Aug 28, it has been pointed out that Aeon Co (M) Bhd does not operate the Aeon Big hypermarkets and supermarkets in Malaysia. The latter comes under Aeon Big (M) Sdn Bhd. The error is regretted. Centre in Kota Damansara, as well as the TMC Fertility Centre in Damansara Utama, both in Petaling Jaya. The stock has gained some investor interest of late when Johor crown prince Tunku Ismail Sultan Ibrahim emerged as a substantial shareholder of the company in July this year, with a 7.68% stake.