MONDAYFMC, BNM Announce Operationalisation Of Segregated Securities AccountsKUALA LUMPUR -- The Financial Markets Committee (FMC) and Bank Negara Malaysia (BNM) have announced the operationalisation of segregated securities accounts via the Real-time Electronic Transfer of Funds and Securities System (RENTAS) for payments to further develop the Malaysian bond market. In a statement Monday, BNM said the RENTAS segregated securities account is to be operationalised in two phases, with the first commencing on May 21, while full compliance under the second by Sept

MALAYSIAeBiz May 25, 2018

This Week’s Highlight :1MDB, Mega Projects Contribute To

RM1 Trillion Debt

MALAYSIAeBiz : 1

WEEKLY BUSINESS ROUNDUP 21 - 25 MAY 2018

This Week’s Top Stories

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approved by the previous government.“Yes, I would like to confirm what (Prime Minister) Tun Dr Mahathir Mohamad said on the country’s debt at above RM1 trillion,” he said at his maiden press conference after taking office at the Ministry of Finance here.

Edition 211

PUTRAJAYA -- Newly-appointed Finance Minister Lim Guan Eng Tuesday confirmed that the country’s debt is above RM1 trillion and contributing factors included 1Malaysia Development Bhd’s (1MDB) debts and mega projects

30 is to allow for an efficient transitioning into the segregated account rules.

TUESDAYMOF Has Been Bailing Out 1MDB Since April 2017PUTRAJAYA – The Ministry of Finance (MoF) has been bailing out 1Malaysia Development Bhd (1MDB)’s debt service obligation since April, 2017, said Finance Minister Lim Guan Eng Tuesday.The list of payments by MoF, on behalf of 1MDB, amounted to RM6.98 bilion, inlcuding payments made to International Petroleum Investment Company (IPIC) as part of the settlement agreement amounting to RM5.05 billion, he said at his maiden press conference

after taking over office as the new finance minister.

WEDNESDAYGovt Won’t Buy Back Proton - PM MahathirKUALA LUMPUR – The new government will not buy back Proton Holdings Bhd as it now belongs to tycoon Tan Sri Syed Mokhtar Al-Bukhary, said Prime Minister Tun Dr Mahathir Mohamad. He said this during a press conference after chairing the Cabinet meeting Wednesday. Syed Mokhtar holds an indirect 55.92 per cent stake in DRB-Hicom Bhd via his private vehicle, Etika Strategi Sdn Bhd, in which he has a 90 per cent equity interest.

THURSDAYPayment From BNM, Khazanah Used To Service 1MDB DebtsKUALA LUMPUR – The Ministry of Finance (MoF) confirmed reports published Thursday by The Wall Street Journal and Reuters on payments made by Bank Negara Malaysia (BNM) and Khazanah Nasional Bhd to the ministry, which were then utilised to service debt obligations of 1Malaysia Development Bhd (1MDB). To recap, on Tuesday, MoF, via a statement, revealed that the ministry made payments on behalf of 1MDB amounting to RM6.97 billion due to 1MDB’s inability to pay.

FRIDAYGovt’s Ability To Pay 1MDB Debts Market-PositivePUTRAJAYA — Finance Minister Lim Guan Eng is sanguine about the government’s ability to honour the debt obligations relating to 1Malaysia Development Bhd (1MDB), thus sending positive signals to the financial markets.The government still have funds to pay the debt obligations of the debt-laden state strategic investment fund and the present government was committed to resolve the issue, he told reporters when doorstepped after attending his first Ministry of Finance (MoF) monthly meeting here Friday.

Newly-appointed Finance Minister Lim Guan Eng fielding questions from reporters after taking office at the Ministry of Finance in Putrajaya Tuesday. -- fotoBERNAMA by Adib Hasri

SMEbrief

PropertyupdatePropUPSurvey Shows Malaysians Prefer To Buy Than Rent HomeKUALA LUMPUR -- Despite evolving property market trends and demographics, age-old tradition prevails with 92 per cent of Malaysians preferring to own rather than rent if they can afford it, according to PropertyGuru Malaysia’s latest consumer sentiment survey. Country Manager Sheldon Fernandez said in a statement Monday, 33 per cent of respondents were renting with the balance 67 per cent residing in their “own homes”, defined as owned by those living in it, a family home, staying with a sibling or relative, and other non-rental residences.

Govt To Review Mega Projects - AzminPUTRAJAYA -- The government will review mega projects and projects which have been approved by the previous administration, said Economic Affairs Minister, Datuk Seri Mohamed Azmin

MALAYSIAeBiz : 2

Cosway Eyes Up To 60 Pct Malay StockistsKUALA LUMPUR -- Cosway (M) Sdn Bhd, a member of the Berjaya Group of Companies, aims to increase its number of Malay stockists by between 50 per cent and 60 per cent within the next two years, as they currently account for 30 per cent of the company’s 530 stockists. Executive Director Dr Alice Lee said the Cosway brand was known to be “Chinese-centric” and the company was in the process of repositioning it to be more appealing to the Malay segment. “Malaysia is a multiracial country, and for a country to succeed further and break barriers, it is very important to tap into the right market and expand our target audience,” she told reporters after launching premium skincare line, Diamond Royale and limited edition printed satin scarves, Dignita Monday. Dignita’s line of scarves was created in collaboration with

Ali. “We will see if they are beneficial or otherwise, as we also have to consider the legal implications if the projects are halted,” he told reporters Tuesday.

JHM Consolidation Acquires Land, Factory For RM12.5 Mln

KUALA LUMPUR -- Microelectronics components (MECs) maker, JHM Consolidation Bhd, is set to acquire several land and factory buildings erected on it in Kuala Muda, Kedah, for RM12.5 million from MIDF Property Bhd. In a filing with Bursa Malaysia Wednesday, it said the acquisition was to enable JHM and its subsidiaries to possess its own factory, instead of having its factory and operations offices in rented properties.

Kurnia Launches ‘Homesafe’ CampaignKUALA LUMPUR -- Kurnia Insurans Malaysia Bhd (Kurnia Insurans)

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launched ‘Homesafe’, a campaign to give Malaysians the confidence to leave home without fear.

The campaign sees Kurnia Insurans joining forces with developer Paramount Property and online interior designing start-up BuildEasy, it said in a statement Thursday.

PNB And WeWork Sign 20-Year Lease Contract For London Asset

KUALA LUMPUR -- Permodalan Nasional Bhd (PNB) and WeWork Companies Inc have signed a 20-year agreement to lease the entire office space in Aviation House, in London. In a joint statement Friday, PNB and WeWork said the property was located across the Holborn Underground Station which was close to the upcoming Crossrail, due for completion in December 2019.

homegrown hijab brand, Naelofar Hijab, founded by local celebrity Noor Neelofa Mohd Noor.

SMEs Unlocking Possibilities Through E-Commerce, New TechBy Joan Santani Santanasamy

KUALA LUMPUR -- E-commerce has been a buzzword since the advent of the Internet, and with 77 per cent of the Malaysian population already accessing the Internet since 2016, the virtual market offers an obvious potential for small and medium enterprises (SMEs) to expand and grow their business. This advantage has not been lost on several local SMEs to make leaps and gains in developing and launching their products through assistance from government agencies such as SME Corporation Malaysia, combined with ICT solutions. Taking advantage of women´s propensity for fashion and comfort, Mestrae

Sdn Bhd developed an interchangeable heel for shoes that raked in RM33,000 in sales following the completion of their product prototype. “I personally experienced a lot of pain while wearing heels. The curiosity to find a solution was what led to developing the product, “ said Mestrae executive director, Christine Pamela Chandrakasan.

Sarawak SMEs Urged To Embrace Digitisation, E-CommerceSIBU -- The small and medium enterprises (SMEs) in Sarawak have been urged to embrace digitisation and embark on e-commerce to unlock more business opportunities in the current digital world. Minister of International Trade and E-commerce Datuk Seri Wong Soon Koh said Tuesday, apart from ensuring their competitiveness and survival, the move would help boost the growth of the SME community and accelerate the state and country’s economic growth.

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Bursa Malaysia Snaps Three Days Of Losses To End HigherBy Zarul Effendi Razali

KUALA LUMPUR -- Bursa Malaysia snapped three days of losses to close higher Friday on renewed buying interest as the over-reaction to the national debt level eases, despite the mixed performance by regional peers, dealers said. The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) closed at 1,797.40, up 21.74 points from Thursday’s close of 1,775.66. The index opened 17.14 points higher at 1,792.82 and moved between 1,785.12 and 1,897.81 throughout the day. Hermana Capital Bhd’s Chief Executive Officer and Chief Investment Officer Datuk Dr Nazri Khan Adam Khan said investors heaved a sigh of relief at the over reaction rally Friday after the market sank on concerns over the national debt level of about RM1 trillion. “The statement from the Chinese investors recently saying that they are confident and looking forward to continue their businesses under the new government has also provided some support to the market and this would likely continue into next week,” he told Bernama Friday. On the regional front, another dealer said Asian markets were traded mixed in the early session today due to fresh concerns after the US President Donald Trump cancelled his upcoming summit with North Korean leader Kim Jong Un.

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MARKET

Exchange Rate(Ringgit : Foreign Currency)

USD

EUR

GBP

100 YEN

SGD

Buying

3.9790

4.6606

5.3128

3.6348

2.9721

Selling

3. 9830

4. 6665

5. 3197

3.6391

2. 9753

CLOSING MALAYSIAN FOREIGN EXCHANGE:

May 25, 2018

ScoreboardGainers - 506

Losers - 397

Not Traded - 597

Unchanged - 407

Value - 2952143843

Volume - 21992685

FOREX: Ringgit Closes Flat Against US DollarKUALA LUMPUR -- The ringgit closed a little changed against the US dollar Friday on lack of fresh buying interest, said a dealer. At 6 pm, the local unit was quoted at 3.9790/9830 against Thursday’s close of 3.9790/9820. The dealer said investors remained in a cautious mode on the back of various factors, including declining oil prices and US bond yield, as well as US President Donald Trump’s decision to call off a planned meeting with North Korean leader Kim Jong-Un. Meanwhile, the local unit was mixed against a basket of currencies. The ringgit strengthened against the British pound to 5.3128/3197 from 5.3287/3339 on Thursday and increased against the euro to 4.6606/6665 from 4.6666/6709. It declined against the Singapore dollar to 2.9721/9753 from 2.9656/9685 and eased against the yen to 3.6348/6391 from 3.6265/6299.

Short-Term Rates Close Steady On BNM’s OperationsKUALA LUMPUR -- Short-term interbank rates closed steady Friday on Bank

Negara Malaysia’s (BNM) operations to absorb liquidity surplus from the financial system. The surplus in the conventional system declined to RM26.12 billion from RM31.76 billion earlier, while in the Islamic system, it was easier at RM14.52 billion from RM18.11 billion. Earlier, BNM called for three conventional money market tenders, an Islamic range maturity auction tender, a Commodity Murabahah Programme and a reverse repo tender. At 4 pm, the central bank conducted a RM26.1 billion conventional money market tender and a RM14.0 billion Qard money market tender, both for three-day money. The average overnight interest rate stood at 3.19 per cent, while the one-, two- and three-week rates were pegged at 3.26 per cent, 3.30 per cent and 3.35 per cent, respectively.

KLIBOR Futures End UntradedKUALA LUMPUR -- The three-month Kuala Lumpur Interbank Offered Rate (KLIBOR) futures contract on Bursa Malaysia Derivatives ended untraded Friday. June 2018, July 2018, August 2018 and September 2018 all remained pegged at 96.27, respectively. Both volume and open interest remained nil. At the 11 am fixing, the underlying three-month KLIBOR stood at 3.69 per cent.

KLCI Futures End HigherKUALA LUMPUR -- The FTSE Bursa Malaysia KLCI (FBM KLCI) futures contract on Bursa Malaysia Derivatives ended higher Friday, in tandem with the better underlying cash market. Spot month May 2018 and June 2018 rose 25.5 points each to 1,801 and 1,798.5, respectively, September 2018 added 17.5 points to 1,789 while December 2018 gained 23.5 points to 1,793.5. Turnover rose to 14,314 lots from Thursday’s 14,825 lots while open interest widened to 45,422 contracts from 44,598 contracts Thursday. The underlying benchmark FBM KLCI ended 21.74 points higher at 1,797.40.

Market breadth was positive with gainers trouncing losers 506 to 397, with 407 counters unchanged, 597 untraded and 26 others suspended. Volume decreased to 2.20 billion units valued at RM2.95 billion from Thursday’s 2.87 billion units valued at RM3.86 billion.

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Banking &Finance

Grab Partners Maybank To Drive Cashless Adoption In MalaysiaKUALA LUMPUR -- On-demand transportation and financial technology platform, Grab, has partnered Malayan Banking (Maybank), Southeast Asia’s fourth largest bank by assets, to drive the acceptance and usage of Grab’s new cashless payment method. Their joint statement came Monday as Grab, which received its e-money licence from Bank Negara Malaysia in December last year, was set to launch its GrabPay mobile wallet in beta in the coming weeks.

Cagamas Announces Combined Issuance Worth RM1.8 BlnKUALA LUMPUR -- Cagamas Bhd has announced the combined issuance of its Islamic Medium Term Notes (IMTN) and Islamic Commercial Papers (ICP) totalling RM1.8 billion, bringing its year to-date total issuance to RM6.34 billion. The issuances under the Islamic Commodity Murabahah structure comprised five-year IMTN worth RM1.5 billion and three-month ICP worth RM305 million, and the proceeds would be used to fund the purchase of Islamic financing from the financial system, it said in statement Monday.

PM Agrees To Formation Of 1MDB Special Task ForceKUALA LUMPUR -- A special task force is being formed to investigate the financial scandal of 1Malaysia Development Berhad (1MDB), the Prime Minister’s Office (PMO) announced in a statement Monday. According to the statement, the task force would be jointly led by former Attorney-General Tan Sri Gani Patail, former chief commissioner of Malaysian Anti-Corruption Commission (MACC) Tan Sri Abu Kassim Mohamed, former deputy director of Bukit Aman Special Branch Datuk Abdul Hamid Bador and the new MACC chief commissioner Datuk Seri Mohd Shukri Abdull.

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Zurich Malaysia Absorbs GST For New Applications, Renewals In MayKUALA LUMPUR -- Zurich Malaysia will absorb the six per cent Goods and Services Tax (GST) incurred for new applications and renewal of insurance policies and takaful certificates in May. Zurich Malaysia, which comprises Zurich Life Insurance Malaysia Bhd, Zurich General Insurance Malaysia Bhd and Zurich Takaful Malaysia Bhd, made the decision following the government’s announcement that the GST would be zero-rated from June 1, it said in a statement Tuesday.

BNM International Reserves At US$109.4 BlnKUALA LUMPUR -- Bank Negara Malaysia’s (BNM) international reserves amounted to US$109.4 billion as of May 15, 2018. In a statement Tuesday, the central bank said the reserves position was sufficient to finance 7.6 months of retained imports, and was 1.1 times the short-term external debt.

Muslims Must Not Delay Writing A WillPETALING JAYA -- As life is not eternal, says as-Salihin Trustee Berhad president and chief executive officer Abdul Aziz Peru Mohamed, it would be prudent to do your estate planning early so that heirs are not left in limbo and can reap its benefits. He trusts many Muslims know this, yet they put it off from a mistaken belief that it is for old people to do and that writing a ‘wasiat’ (will) early is akin to wishing for calamity. “If you love your family, make sure your assets are divided according to your wishes,” advised Abdul Aziz in an interview recently.

Dollar Sukuk Issuance Climbs 47.6 Pct In Q118KUALA LUMPUR -- Dollar sukuk issuance boosted the global sukuk market in the first quarter 2018 (Q118), climbing 47.6 per cent year-on-year (y-o-y) to US$10.4 billion (US$1=RM3.98) and accounted for 34.5 per cent of the global sukuk issuance as at end-March 2018 (end-March 2017: US$7 billion). RAM Ratings Services Bhd in a statement Wednesday said the bulk of dollar sukuk stemmed from the United Arab Emirates (31.3 per cent) and Indonesia (28.9 per cent), followed by Malaysia (22.4 per cent), Saudi Arabia (16.9 per cent) and Qatar (0.5 per cent).

Provide Factual Statistics On Malaysia’s Ongoing Projects - MunirKUALA LUMPUR -- Financial statistics made available to the public and related to Malaysia’s ongoing projects, including the East Coast Rail Link (ECRL) must be factual, with no hiding the details, Financial Services Professional Board (FSPB) Chairman, Tan Sri Mohd Munir Abdul Majid told reporters Wednesday. He said from a regulatory standpoint, integrity is fundamental and the integrity of numbers is crucial.

Kenanga Investment Bank To Grow Remisier Base On AcquisitionKUALA LUMPUR -- Kenanga Investment Bank Bhd aims to grow its remisier base with the acquisition of Inter-Pacific Securities Sdn Bhd’s stockbroking business. Kenanga Investment Managing Director Datuk Chay Wai Leong told reporters Wednesday, Kenanga Investment Bank now housed 1,000 remisiers, while Inter-Pacific currently had over 200.

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The BOTTOM LineHengyuan Refining Company’s Net Profit Falls To RM86.81 Mln For Q1KUALA LUMPUR -- Hengyuan Refining Company Bhd’s net profit fell to RM86.81 million for the first quarter ended March 31, 2018 from RM279.49 million recorded in the same period last year. Revenue rose to RM3.06 billion from RM2.93 billion previously. In a filing to Bursa Malaysia Monday, the refining company attributed the better revenue to higher average product prices in the current quarter of US$76 per barrel compared with US$65 per barrel in the comparative period.

BAT’s Profit Declines To RM96.23 Mln In Q1KUALA LUMPUR – British American Tobacco (M) Bhd’s (BAT) net profit for the first quarter (Q1) ended March 31, 2018, declined 19 per cent to RM96.23 million from a year earlier as it wound down its manufacturing operations. Revenue fell 14.8 per cent to RM637.65 million from RM748.37 million registered in the same period,

the company said in a filing with Bursa Malaysia Monday.

Petronas Chemicals Net Profit Declines To RM1.11 Bln In Q1KUALA LUMPUR -- Petronas Chemicals Group Bhd’s net profit declined to RM1.11 billion for the first quarter ended March 31, 2018 from RM1.38 billion in the same period last year. Revenue, however, rose to RM4.95 billion from RM4.70 billion previously. In a filing to Bursa Malaysia Monday, Petronas Chemicals attributed the five per cent increase in revenue to higher sales volumes and product prices, while the 20 per cent lower net profit was due to the impact of foreign exchange loss on its shareholder loans pursuant to the divestment of a 50 per cent equity interest in a subsidiary. Axiata Post Q1 Net Loss Due To Strengthening Ringgit, Idea CellularKUALA LUMPUR -- The combination of a strengthened ringgit and losses resulting from its Indian operations saw

Axiata Group Bhd posting a RM94.35 million net loss in the first quarter ended March 31, 2018, down from a net profit of RM262.03 million recorded in the same corresponding quarter in 2017. The telecommunications group also recorded a lower revenue of RM5.74 billion compared with last year’s RM5.88 billion. In a filing with Bursa Malaysia Tuesday, Axiata said losses from its share in India’s Idea Cellular Ltd widened to RM124.3 million compared with a RM25.4 million loss in 2017.

Inari Amertron’s Net Profit Rises To RM55.51 Mln In 3Q18KUALA LUMPUR -- Inari Amertron Bhd’s net profit rose to RM55.5 million in the third quarter ended March 31, 2018, from RM52.16 million recorded in the same quarter last year. The increase was mainly due to the higher factory output, the group said in a filing with Bursa Malaysia Tuesday.

Serba Dinamik Net Profit Rises To RM92.73 Mln In 1Q18KUALA LUMPUR -- Serba Dinamik Holdings Bhd’s net profit for the first quarter ended March 31, 2018 (1Q18) rose to RM92.73 million from RM77.32 million recorded in the same quarter last year. In a filing with Bursa Malaysia Tuesday, the company said revenue for the quarter increased 19.3 per cent, year-on-year, (y-o-y) to RM730.83 million from RM612.42 million registered previously due to strong activities in its operations and maintenance (O&M) and engineering, procurement, construction and commissioning (EPCC) segments.

MFA Targets 10 Pct Growth In Franchise Industry By Year-EndKUALA LUMPUR -- The Malaysian Franchise Association (MFA) expects 10 per cent growth in the franchising industry by the end of this year compared to eight per cent last year. Its chairman, Datuk Radzali Hassan told reporters Tuesday, the target was achievable as the growth would be supported by

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MALAYSIAeBiz The BOTTOM Linefuture network development.

TM’S Q1 Profit Down By 41.6 Pct Amid ChallengesKUALA LUMPUR -- Telekom Malaysia Bhd’s first-quarter net profit was down 41.6 per cent to RM107.64 million compared with RM184.44 million posted in the same quarter last year amid challenges across all its customer clusters. For the quarter ended March 31, 2018, revenue decreased by 3.9 per cent to RM2.85 billion from RM2.96 billion a year earlier due to a decline in voice, data and other telecommunications-related services. The fall was partially cushioned by an increase in Internet revenue.

Priceworth 9-Month Net Profit Up 6 Times To RM10.3 MlnKUALA LUMPUR -- Priceworth International Bhd’s net profit surged six times to RM10.3 million for the nine months ended March 31, 2018, while revenue rose 17.5 per cent to RM130.4 million. In a statement Wednesday, Priceworth Executive Director Richard Koo said the stable supply of timber from Forest Management Unit 5 (FMU5) has helped Priceworth exceed break-even and it expects financial performance to continue improving in the future.

MSM Malaysia Returns To The Black In Q1KUALA LUMPUR -- MSM Malaysia Holdings Bhd (MSM) returned to the black in the first quarter ended March 31, 2018, as it delivered a net profit of RM15.80 million against a net loss of RM34.62 million recorded in the previous comparable period. The much-improved performance in the current quarter was attributable mainly due to lower raw material costs and favourable foreign exchange rate, said MSM in a statement Wednesday.

Universal Robots Expects Business To Grow By At Least 50 PctKUALA LUMPUR -- Collaborative robotics company, Universal Robots (UR), expects its automation business to grow by a minimum 50 per cent this year. Southeast Asia and Oceania General Manager, Shermine Gotfredsen told a media briefing Wednesday, last year business grew by 72 per cent, and the company wants to maintain it at around this figure, but at a minimum 50 per cent.

Malakoff’s 1Q Profit Down To RM67.37 MlnKUALA LUMPUR -- Independent power producer, Malakoff Corporation Bhd’s net profit fell to RM67.37 million in the first quarter ended March 31, 2018, from RM115.41 million recorded in the same period last year. Revenue for the quarter also decreased 10 per cent, year-on-year, (y-o-y) to RM1.6 billion from RM1.78 billion previously, it said in a filing with Bursa Malaysia Wednesday.

AirAsia Bhd Q1 Net Profit Rises To RM1.09 BlnKUALA LUMPUR -- AirAsia Bhd recorded

a higher first quarter (Q1) net profit of RM1.09 billion for the period ended March 31, 2018, up from RM584.25 million recorded in the same period last year. Revenue increased to RM2.56 billion from RM2.23 billion previously. In a filing with Bursa Malaysia Thursday, the airline said the group delivered an additional 1,933,878 seats in Q1 2018 compared with the previous corresponding period, which represented an additional 19 per cent growth in capacity.

AEON Revenue, Earnings Increase In 1st QuarterKUALA LUMPUR -- AEON Co (M) Bhd’s net profit rose slightly to RM27.94 million in the first quarter ended March 31, 2018, from RM26.20 million recorded in the same period last year while revenue increased to RM1.11 billion from RM1.08 billion, previously. The Japanese retailer said Thursday, its retail business revenue registered RM943.9 million, which was higher by 3.4 per cent, year-on-year, mainly due to the opening of a new store in September 2017.

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ShopBack Sees Online Raya Sales To Peak In Early JuneKUALA LUMPUR -- Online Cashback platform ShopBack, which partners more than 500 online shops in Malaysia, expects Hari Raya sales to peak in the first week of June in view of the zero per cent GST implementation on June 1. ShopBack Malaysia country General Manager Alvin Gill said in a statement Monday, the platform’s partners were preparing for early June promotions as that would likely be the week when consumers rush to make their Raya preparations.

Alipay: Malaysia Ranks Top 10 In Global Chinese Tourist Transactions In 2018KUALA LUMPUR -- Malaysia is the ninth largest market worldwide for Chinese tourists’ overseas spending as recorded by Alipay, a third-party mobile and online payment platform offered by Ant Financial, an affiliate company of Alibaba Group. The transactions, which was recorded during the May Day holiday period, also saw Malaysia beating more developed markets like the United States.

MRCB Expects To Conclude EDL Termination Agreement By Year-EndKUALA LUMPUR -- Malaysian Resources Corporation Bhd (MRCB) expects to conclude negotiations with the new government on the termination of the Johor Bahru Eastern Dispersal Link (EDL) highway concession,

including the settlement sum, by year-end. Executive Director Mohd Imran Mohamad Salim told reporters Monday, the company and the previous government had mutually agreed to the termination of the EDL concession and it would continue to work with the new government to resolve the matter.

Buyers Of Proton Cars To Enjoy Zero-Rated GST PricesKUALA LUMPUR -- Buyers of Proton car will enjoy lower post zero-rated Goods and Services Tax (GST) pricing with immediate effect despite the tax re-rating only due for implementation on June 1, 2018. Perusahaan Otomobil Nasional Bhd (Proton) said in a statement Tuesday the sticker prices would remain the same until the GST is zero-rated.

RAM Expects Inflation To Rise Slightly To 1.5 Pct In AprilKUALA LUMPUR -- RAM Rating Services Bhd expects Malaysia’s headline inflation rate to increase slightly to 1.5 per cent in April against 1.3 per cent in March, mainly attributed to a reduction in the negative growth contribution of retail fuel. In a statement Tuesday, the rating agency said the average price of RON95 fuel fell only 0.3 per cent year-on-year (y-o-y) in April, compared with a 4.4 per cent, y-o-y, decline in March.

Axiata Optimistic Idea Will Turn Around In Three YearsKUALA LUMPUR -- Regional telecommunication company, Axiata Group Bhd, is optimistic that its loss-making affiliate in India, Idea Cellular Ltd, will turn around after the intense price war subsides. President and Group Chief Executive Officer Tan Sri Jamaludin Ibrahim told reporters Wednesday the telecommunications industry in India was expected to rationalise after a period of hyper competition spurred by rival Reliance Jio Infocomm Ltd.

Govt Will Not Raise Fuel Prices Now - PM MahathirKUALA LUMPUR -- The government will not raise fuel retail prices at present even though global crude oil prices have hit above US$70 per barrel currently, said Prime Minister Tun Dr Mahathir Mohamad. He said this at a press conference after chairing the first Cabinet meeting at Bangunan Perdana Putra, in Putrajaya Wednesday.

Perodua Sells 75,500 Cars Within Four Months

KUALA LUMPUR -- Perusahaan Otomobil Kedua Sdn Bhd (Perodua) sold 75,500 vehicles in the first four months of this year, a 17 per cent year-on-year increase compared with the same period of 2017, capturing an estimated total industry volume market share

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MALAYSIAeBizBizTALK

of 41.6 per cent year-to-date. President and Chief Executive Officer Datuk Aminar Rashid Salleh said Perodua’s market share stood at 43 per cent in April, the highest in its 26-year history.

Bursa Malaysia Launches Enhanced US Dollar Denominated FPOLKUALA LUMPUR -- Bursa Malaysia Bhd has launched an enhanced US dollar denominated refined, bleached and deodorised (RBD) palm olein futures contract (FPOL) to promote a more inclusive trading community on Bursa Malaysia Derivatives (BMD). The exchange said in a statement Thursday, this was in line with its aim to enhance product diversity in its trading sphere.

Celcom Axiata To Increase Broadband SpeedKUALA LUMPUR -- Celcom Axiata Bhd will cooperate with the Ministry of Communications and Multimedia to increase broadband speed and reduce the price. Deputy Chief Executive Officer of Business Operations Azwan Khan Osman Khan told a media briefing Thursday, the network provider was very much looking forward to engaging the Minister, Gobind Singh Deo to see what could be done to really support his vision.

Financial Industry Must Set Standards To Support Digital RevolutionKUALA LUMPUR -- There will be an increasing need for financial industry players to come together and set the standards for novel areas of practice to cater for the digital revolution, Bank Negara Malaysia (BNM) said. Deputy Governor Jessica Chew Cheng Lian said Thursday, the digital revolution such as artificial intelligence and big data in finance not only created opportunities for innovation, efficiency and growth but also brought new risks and challenges.

Petronas Sells First LNG Cargo Via Online PlatformKUALA LUMPUR -- Petroliam Nasional Bhd’s (Petronas) unit, Petronas LNG Ltd (PLL), has sold its liquefied natural gas (LNG) cargo for the first time through an online trading platform, GLX. Petronas said in a statement Friday, the usage of the GLX online platform was in line with its effort to promote digitalisation of its business and served as an alternative platform to market cargo.

Malaysia’s Q1 Labour Productivity Up 3.0 PctKUALA LUMPUR -- Malaysia’s labour productivity for the first quarter of 2018 (1Q18) grew three per cent to RM80,440, said the Department of Statistics (DoS)

in a statement Friday. During the quarter, Malaysia’s gross domestic product (GDP) expanded 5.4 per cent and employment increased 2.3 per cent.

CIMB Group, Principal Completes Realignment Of Shareholding In JVKUALA LUMPUR -- CIMB Group Holdings Bhd Friday completed the realignment of ownership stakes with Principal Financial Group in its CIMB-Principal joint ventures across ASEAN. This exercise will see the CIMB Group recording a gain of about RM920 million and about 15 basis points increase in its Common Equity Tier 1 (CET1) ratio. The CIMB-Principal joint ventures, involving CIMB-Principal Asset Management Group and CIMB-Principal Islamic Asset Management, would result in Principal holding a 60 per cent stake with CIMB owning the remaining 40 per cent.

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MALAYSIAeBizBizEVENTSAmInvest Bags Insurance Fund House Of The Year AwardKUALA LUMPUR -- AmInvest, the fund management business arm of AmInvestment Bank Bhd, has been named ‘Insurance Fund House of the Year, Malaysia’ by InsuranceAsia News. The company bagged the award at the Institutional Asset Management Awards 2018 held in Hong Kong recently. AmInvest acting chief executive officer, Goh Wee Peng said in a statement Monday, the investment team had worked hard to provide consistent returns by maximising the best investment opportunities in dynamic market conditions over the long term.

120 HCTM Paediatric Patients Receive Raya Contribution From TekunKUALA LUMPUR -- The National Entrepreneur Group Economic Fund (TEKUN Nasional) Tuesday handed out Hari Raya contribution to 120 patients at the paediatric ward of Hospital Canselor Tuanku Muhriz (HCTM), here. The agency’s senior deputy chief executive officer (Corporate), Datuk Adam Abdul Ghani said the TEKUN Nasional and Puspanita visit programme at this paediatric ward was one of its corporate social responsibility projects and it received the cooperation of Puspanita Tekun Nasional.

MARDI Comes To The Rescue Of BeesSERDANG -- The low hum of global bee decline has become a loud buzz for the Malaysian Agricultural Research and Development Institute

(MARDI) to fly to the rescue of bees. MARDI’s “My Bee Savior” initiative is an open invitation to become a bee rescuer in an effort to halt the dwindling of bee populations that are so vital as pollinators in global food production. The problem is making fruit, vegetable and grain farmers nervous. “We are committed to bee conservation and hope many will sign up as volunteers,” said MARDI director-general, Datuk Dr Mohamad Roff Mohd Noor Tuesday.

Bank Islam Allocates Nearly RM700,000 For Ramadan ProgrammeKUALA LUMPUR -- Bank Islam Malaysia Berhad (Bank Islam) has allocated nearly RM700,000 for its ‘Amal Ihtimam Ramadan Bank Islam’ programme as a commitment to the company’s corporate social responsibility during the holy month. “The charitable activities would take place in areas where the bank operates,” said Bank Islam chief executive officer, Khairul Kamarudin Tuesday. A total of 176 homeless people, 110 firefighters, 100 nurses, 200 needy individuals and 500 underprivileged students from 38 schools would be feted in Perak, Sarawak, Kelantan, Johor and Kuala Lumpur.

Choo Yee Kwan Appointed To Danajamin’s BoardKUALA LUMPUR -- Danajamin Nasional Berhad, the country’s first financial guarantee insurer, announced the appointment of Choo Yee Kwan as an independent non-executive director to the company’s

board of directors for a three-year term, effective May 22. Choo, who holds bachelor’s degrees in Economics from Universiti Malaya and a law degree (Honours) from the University of London, had 38 years of experience in banking and risk management.

Angkasa Chosen To Operate Maya2U.Com For Asia PacificJASIN -- Angkatan Koperasi Kebangsaan Malaysia (Angkasa) has been selected as the operator of portal Maya2U.com at Asia Pacific level with its launching ceremony in November in Tehran, Iran. Angkasa president Datuk Abdul Fattah Abdullah told reporters Thursday, the portal operator selection was unanimously decided at the Asia Pacific International Cooperatives Alliance (ICA) meeting in Kathmandu, Nepal last month.

BNM Raids Axios Group For Using The Word “Bank”KUALA LUMPUR -- Bank Negara Malaysia (BNM) has conducted a raid on Axios Group Sdn Bhd as the company was suspected to have committed an offence under section 139(1)(a) of the Financial Services Act 2013 (FSA) for using the word “bank” in their office premise signage located in Cheras and websites without written approval from the central bank. In a statement Thursday, BNM said during the raid, relevant documents and computers were seized to assist in the investigation.

Insight

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By Tengku Noor Shamsiah Tengku Abdullah and Vinoothene Chandrasekaran

KUALA LUMPUR (Bernama) --With the new Pakatan Harapan (PH) government in place, Malaysians are looking to the future with high hopes and a confidence that is rooted in the leadership of Tun Dr Mahathir Mohamad.

Voters in Malaysia at the recent 14th General Election turned their backs on more than half a century of Barisan Nasional rule.

Senior Adviser for International Affairs Asian Strategy & Leadership Institute (ASLI) Dr Oh Ei Sun said, over the years BN faced a series of allegations of corruption and scandals.“Finally, the people opted for change, and to try out a new administration. The people are eager for a better life and feel confident that the PH government led by Dr Mahathir will fulfil promises made during the election campaign.

“Dr. Mahathir doesn’t act his age. Immediately after taking over power, he was having like three to four press conferences a day and that’s no mean feat, even for a younger person.

DR M SPURS HOPE FOR MALAYSIA

SERIES OF ACTIONS“If you look at Dr Mahathir’s series of actions during his first few days of the new administration, he indeed is a man in a hurry to fullfill promises made,” he added.

He told Bernama News Channel that Dr Mahathir has a solid mandate now to make changes in the way the government operates, especially in matters of corruption and poor governance.

“ I think in voters’ minds, the economy and rising cost of the living, is paramount. They blame the Good and Services Tax (GST) imposed by the previous administration for their lack of buying power.

“So, Dr Mahathir has as a priority, practically scrapped the GST within the first 100 days of his administration, as promised,” he said.

Oh, a noted international columnist and commentator on politics, economics and current affairs, said: “The GST, whether we like it or not, has been felt by most strata of society in Malaysia and has been responsible for the rise in cost of living as well as the slowdown in economic growth.”

ABOLITION OF GSTHe said the abolition of the GST would cause some economists to worry about the shortfalls in government revenue.

“But, as former Central Bank Governor Tan Sri Zeti (Akhtar Aziz) pointed out, one of the easiest ways to tackle the shortfall is to stagger some big projects. But, personally, the important thing is a reduction in the cost of a number of government projects which will help cover the shortfall from the abolition of the GST,” he added.

He also said if Pakatan Harapan can fullfill most promises made within the first 100 days in office,voters will still be pleased and perhaps agree to extend the honeymoon period.

According to Oh, Dr Mahathir has previous experience in handling the economy and what he needs to do now is encourage more foreign investments.

“We need to reassure investors that Malaysia is open for business and all bureaucratic hurdles and so forth will be reduced to a large extent. Foreigners should feel assured that doing business in a reinvigorated Malaysia is a sound and profitable venture and the rule of law will apply at all times,” he said.

Prime Minister Tun Dr Mahathir Mohamad started working from the Prime Minister’s Office in Perdana Putra, Putrajaya on Wednesday. Dr Mahathir had previously operated from his office at the Perdana Leadership Foundation in Putrajaya after Pakatan Harapan, led by him, won the 14th General Election (GE14) on May 9. -- fotoBERNAMA by Harry Salzman