| National Affairs
Najib Rewards Party Loyalists in Malaysia Cabinet Rejig Bloomberg.com 27th Jun 2016
Malaysian Prime Minister Najib Razak rejigged his Cabinet and rewarded party loyalists who have backed him through a year of scandals, further bolstering his grip on power. Abdul Rahman Dahlan, minister of housing, urban wellbeing and local government, will now be head of the Economic Planning Unit, Najib told reporters on Monday. His former position will be filled by Noh Omar, chief of Najib’s United Malays National Organisation in the state of Selangor, where a recent by-election saw the party retain a seat with a wider margin. Johari Abdul Ghani, who was deputy finance minister, is now Second Finance Minister. Najib named Mah Siew Keong, a minister in his office, to be in charge of the Ministry of Plantation Industries and Commodities. The premier said he will reshuffle the duties of ministers in his department and will announce the changes soon.
Malaysian PM reshuffles cabinet amid speculation of snap poll South China Morning Post 27th Jun 2016
Scandal-hit Malaysian Prime Minister Najib Razak Monday announced a cabinet reshuffle, including promoting a trusted ally to manage the economy, in what analysts said could be preparation for a snap election. Najib, 62, who has survived a massive financial scandal linked to state investment fund 1Malaysia Development Berhad (1MDB), said the shake-up would bolster his administration. “This will strengthen the current administration further to ensure the government’s development agenda for the people - economic, welfare and security development - will continue smoothly as promised,” Najib told a news conference. Mahathir takes swipe at Najib over Malaysia’s ‘stupid’ Chinese business deal Analysts and politicians said the reshuffle showed Najib could weather the affair - related to hundreds of millions of dollars of 1MDB money which went missing in complex overseas transactions that have never been fully explained.
Malaysia Well-Positioned To Face Any Volatility Post-Brexit Referendum: PM Malaysian Digest 25th Jun 2016
Malaysia, which has sound fundamentals, diversified economic structure and ample liquidity in its financial markets, is well-positioned to face any volatility following the UK referendum result, said Prime Minister Datuk Seri Najib Abdul Razak.
Brexit’s impact on Malaysians The Star 25th Jun 2016
The immediate impact to Malaysia from UK leaving the European Union (EU) will be a weaker ringgit, which fell steadily against the US dollar at a pace last seen in the Asian financial crisis of 1997/1998 by midday yesterday as investors dumped riskier assets in emerging markets for so-called safe-haven assets such as US treasuries, Japanese government bonds, German bunds and gold.
Survey shows young Malaysians prefer security over flexibility The Star 23rd Jun 2016
As millenials worldwide seek out jobs that offer them flexible working hours, a study has ironically found that young Malaysians prefer the traditional 9-to-5 job.The study by recruitment firm Randstad stated that a third of Malaysians aged 18 to 24 would rather be desk-bound than work out of the office via telecommuting.
Private sectors told to look at alternatives rather than rely on foreign labour The Star 23rd Jun 2016
The Government will examine concerns about the shortage of foreign workers but Prime Minister Datuk Seri Najib Tun Razak (pic) wants the private sector to look at the long-term effects of relying on foreign labour.
Amanah: We will focus on economy, not hudud Free Malaysia Today 15th Jun 2016
Amanah says it is focusing on issues related to the economy, corruption and abuse of power when campaigning in the twin by-elections as these are pressing issues compared with hudud. The party explained this is why the shariah-based law is not on its main agenda when meeting voters in Sungai Besar and Kuala Kangsar. Amanah committee member Phahrolrazi Zawawi stressed that his party was part of Pakatan Harapan (PH), along with partners PKR and DAP, where hudud was not on their agenda.
Govt will still fund projects in Selangor The Star Online 15th Jun 2016
Development projects will still be implemented in Selangor despite the state being under the Opposition, assures Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi. Federal allocation for the state, he said, was a continuous commitment by the Prime Minister should Barisan Nasional win in the Sungai Besar by-election on Saturday. “I believe that this area still needs development. We will bring development despite the state government being held by others,” he said in his speech during a programme at Binjai Jaya mosque here yesterday.
Sarawak to seek more autonomy The Star Online 10th Jun 2016
The state government will proceed with its request for greater autonomy from the Federal Government on a step-by-step basis as it is a complex matter. Sarawak Speaker Datuk Amar Mohamad Asfia Awang Nassar said any devolution of power must be done within the framework of the Federal Constitution and comply with relevant laws such as the Delegation of Power Act 1956. “Non-compliance may result in devolution of Federal powers that may be unconstitutional and subject to legal challenge,” he said in dismissing a motion from Chong Chieng Jen (DAP-Kota Sentosa) on devolution in the State Legislative Assembly yesterday.
Riot: Malaysia to improve minimum wage implementation The Star Online 8th Jun 2016
Malaysia aims to improve policies and the implementation of minimum wage following the ratification of an International Labour Convention on the matter, said Human Resource Minister Datuk Seri Richard Riot. He said the ratification of Convention No 131: Minimum Wage Fixing Convention was in line with Malaysia’s aim to emerge as a high income nation by 2020 and to allow the government further improve the country’s labour standards, particularly on minimum wage.
Second ‘most good’ The Star 7th Jun 2016
Malaysia has been ranked as the second most “good” country in Asean, according to the recent Good Country Index.The index aims to measure the contribution of every country to the common good of humanity relative to its size by tabulating 35 indicators taken from sources like the United Nations and World Bank.
All 82 newly-elected Sarawak assemblymen sworn in The Star Online 7th Jun 2016
All the 82 newly-elected Sarawak state assemblymen on Tuesday took their oath of office before State Legislative Assembly Speaker Datuk Amar Mohammad Asfia Awang Nassar. Twenty-nine of them are new faces, and they include those who won the 11 new seats. A redelineation exercise had increased the number of seats in the state assembly from 71 to 82.
Lifting of sanctions on Iran an opportunity for Malaysian SMEs MITI Astro Awani 6th Jun 2016
The recent lifting of trade sanctions by the US on Iran should pave the way for local companies, especially Small and Medium Enterprises (SMEs), to further increase their market presence there. "The Iranian halal market is big. It is a country with a population of almost 80 million," Deputy International Trade and Industry Minister Datuk Ahmad Maslan said today.
Malaysia clinches 3rd position in 2016 Global Retail Development Index NST Online 6th Jun 2016
Malaysia has jumped six spots to the third position in the A.T. Kearney 2016 Global Retail Development Index (GRDI) - the highest since the index started in 2001. Increased investment from regional and international retailers coupled with a booming market for small-format grocers and hypermarkets has helped boost the sector's growth in the country, said the consulting firm in a statement.
Customs
Customs continues its ‘Jom Minta Resit GST’ programme BorneoPost Online 26th Jun 2016
Customs Department will continue with its ‘Jom Minta Resit GST’ programme to encourage consumers to insist on demanding receipts or invoices after a transaction with business outlets. State Customs director Datuk Dayang Fatimah Johari said the programme would also intensify the effort for business outlets to produce GST sales receipts in line with provision under Section 33, 34 and 36 of the Products and Services Tax Act 2014.
Malaysia To Launch Global Campaign To Drive Export Growth Bernama 16th Jun 2016
The National Export Council (NEC) has formulated several initiatives to promote public-private partnerships in the quest to drive Malaysia's export growth, including through a global campaign. The initiatives were presented at the NEC meeting chaired by Prime Minister Datuk Seri Najib Tun Razak here today. The Malaysia External Trade Development Corporation (MATRADE) said the programme would entail promoting Malaysia's capabilities in areas such as trade, investment, tourism, education and healthcare to clusters of global citizens. "It is aimed at optimising the benefits of strategic cooperation among ministries and government agencies, the private sector, government-linked companies (GLCs) and Malaysian diaspora," it said in a statement issued in conjunction with the NEC meeting. MATRADE said this year's promotional programme is aimed at strengthening the 'Malaysia Brand' in London, Shanghai and Sydney in September, November and December, respectively. The activities arrayed during the programme, including the Malaysia Business Forum, Malaysia Export Day, Malaysia Fest, Malaysia Flavours, Malaysia Art Exhibition, Malaysia Sales Online, and promotions in supermarkets.
TPPA and RCEP How will they benefit Malaysia Astro Awani 16th Jun 2016
Malaysia's International Trade and Industry Minister, Datuk Seri Mustapa Mohamed, said recently that the Regional Comprehensive Economic Partnership (RCEP) is complementary to the TPPA concluded last October. Both TPPA and RCEP embrace similar goals of trade liberalization and economic integration and have received the widest attention in the Asia Pacific region. So what is the RCEP? Both TPPA and RCEP are two mega FTAs in which Malaysia intends to participate. With regards to the TPPA, although the signing of the TPPA by the twelve member states has taken place on February 4 this year in New Zealand, the signing does not indicate that Malaysia has a definitive commitment to implementing the pact, as the TPPA has yet to take its full effect upon ratification.
TPPA seen to have little effect on trade flows The Star Online 15th Jun 2016
The implementation of the Trans-Pacific Partnership Agreement (TPPA) is expected to have muted effects on Malaysia’s trade flows given the already low tariffs that exist between the country and many of the signatories of the new trade deal, says RAM Rating Services Bhd. In its analysis, which was based on Malaysia’s current productive capacity and comparative advantages, the credit rating agency also noted that growth of imports would likely be more pronounced than incremental exports at the onset of tariff reductions, mainly due to Malaysia’s higher tariffs on imported goods.
‘Westports not likely to lose biggest customer’ BorneoPost Online 14th Jun 2016
Westports Holdings Bhd (Westports) is not likely to lose its biggest customer overnight, said the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research), following news that CMA CGM will move its shipping traffic from Malaysia to a new terminal in Singapore. According to a French daily quoting a member of CMA CGM’s senior management, CMA CGM is said to “move its shipping traffic from Malaysia to a new terminal in Singapore” following Temasek Holdings’ acceptance of CMA CGM’s offer to acquire Neptune Orient Lines (NOL). “In the run up to the statement, CMA CGM and the Port of Singapore Authority (PSA) was reported to have established a 49:51 joint venture which will lease and operate four container berths in Singapore with annual capacity of three million twenty-foot equivalent unit (TEU).
Upgrading works cause of Customs’ system disruptions Malay Mail Online 13th Jun 2016
The Royal Malaysian Customs denied there were weaknesses in its Customs Information System (CIS) at Port Klang, and said the services were disrupted due to “external factors”. The department pointed out that there were only two disruptions this year — one last month and the other on Wednesday — and that both incidents were beyond its control. A high-ranking Customs officer, who asked not to be named, said the first incident on May 19 was caused by horizontol directional drilling by Tenaga Nasional Berhad, which accidentally cut the fibre optic cable.
Not just Malaysia, but global trade trend is sluggish, says minister Malaysiakini 10th Jun 2016
Malaysia's total trade, which was quite flat recently, should be viewed more realistically by looking at the global trade trend, says International Trade and Industry Minister Mustapa Mohamed. He said global economic growth is still sluggish, at around one percent, and Malaysia, being a big trade player and ranked 23rd in global trade, is exposed to the downtrend.
No turning back on TPPA now Free Malaysia Today 9th Jun 2016
Regardless of what critics may say about the Trans-Pacific Partnership Agreement (TPPA), there is no turning back on it now, according to Ministry of Human Resources principal assistant secretary Kesavan Karuppiah. Speaking at a forum on the Labour Chapter of the TPPA at the Straits Building here today, Karuppiah said Malaysia was committed to the agreement and that the United States “is very serious”. “Since it (TPPA) was signed on Feb 4, 2016, we have been given the timeline of two years to make the necessary amendments to our legislation and we’ve already embarked on it,” he said. “The US is very serious about it. I was surprised that after signing it they (US officials) came to see the draft on the amendments to labour legislation, but we told them that we’ve been given two years and that we are just beginning to start.”
Malaysia to begin charging VEP on foreign vehicles mid-July: Report The Straits Times 9th Jun 2016
From mid-July, Malaysia will begin charging an RM20 (S$6.70) fee on Singapore-registered cars and foreign vehicles entering Johor under its Vehicle Entry Permit (VEP) system, the New Straits Times newspaper reported on Wednesday (June 8). The VEP system had been activated at the two land entry points in Johor at the Causeway and at the Second Link since June 1, although motorists were not charged the RM20 levy as the authorities were conducting a test run until July 15.
Malaysia will explore bilateral FTA with the UK: Mustapa NST Online 24th Jun 2016
Malaysia will explore the possibility of having a bilateral free trade agreement with the United Kingdom said International Trade and Industry Minister Datuk Seri Mustapa Mohamed.
Defense & Security
TSA What all Malaysians need to know about the Territorial Sea Act 2012 Astro Awani 23rd Jun 2016
The ocean covers 71 percent of the surface of the Earth and has been important in shaping human civilisations for centuries.When de-colonisation began at the end of World War II in 1945, the world was no longer Euro-centric, as there were many emerging nations in Asia, Africa and South America.
International Fusion Centre tackles ship hijackings The Star 21st Jun 2016
When pirates hijack a ship in Asian waters, an international maritime security outfit known as the Information Fusion Centre (IFC) will be among the first to get a full picture on what’s happening.
Southeast Asia Nations Create Shipping Corridor in Battle Against Piracy gCaptain 20th Jun 2016
Indonesia, Malaysia and the Philippines on Monday agreed to designate a transit corridor for commercial vessels crossing a maritime zone hit by a spate of hijackings by Islamist militants in the southern Philippines. Nearly 20 Indonesian and Malaysian tugboat crew have been kidnapped by the Abu Sayyaf militants this year, with Jakarta airing fears that the problem could reach levels seen off the coast of Somalia. Alarmed at the frequency of attacks, port authorities in some areas of Indonesia, particularly Kalimantan on the island of Borneo, have stopped issuing permits to ships taking coal to the southern Philippines. Indonesia is the world’s largest thermal coal exporter and supplies 70 percent of the Philippines’ coal imports. “The ministers have agreed in principle to explore the following measures, including a transit corridor within the maritime areas of common concern, which will serve as designated sea lanes for mariners,” the defense ministers of the three nations said in a joint statement after a meeting in Manila.
Indonesia, Philippines, Malaysia Agree on New Joint Patrols Amid Kidnappings The Diplomat 20th Jun 2016
Indonesia, Malaysia, and the Philippines agreed Thursday to conduct coordinated maritime patrols as part of a broader plan to tackle rising security challenges in the waters bordering the three countries. At a trilateral “2 + 2” meeting of their foreign ministers and military chiefs held in the central Java town of Yogyakarta, the Southeast Asian states agreed to have joint patrols in their surrounding waters. They also said they would set up crisis centers within their countries as well as a hotline between them to ensure speedy communication during maritime emergencies.
Economics
GST – Blessing in Disguise Malaysia Today 26th Jun 2016
GST (Goods and Services Tax) was implemented on the 1st April last year. Though its unpopular among Malaysians, local economists of the view that it is the best ever measure taken by our PM, Dato’ Sri Najib Tun Razak to face the uncertainties in the global-economy partly due to an unexpected dive in oil price since mid- 2014.
Malaysia shows keen interest in investments in the US Astro Awani 25th Jun 2016
The recent summit, SelectUSA, organised under the auspices of the US Department of Commerce, attracted considerable interests from traditional investment destinations to invest in the US.
Ringgit rises as oil rebound boosts sentiment The Star 21st Jun 2016
The ringgit rose, set for the biggest advance in almost two weeks after energy prices rebounded and a poll showing Britons favour remaining in the European Union (EU) boosted demand for riskier assets.
Malaysia must further strengthen domestic economy, says Najib NST Online 16th Jun 2016
Malaysia’s domestic economy needs to be further fortified against challenges facing the world's economic stability, said Prime Minister Datuk Seri Najib Razak. Najib, who is also Finance Minister, said Malaysia must also embrace the opportunities brought about by information and communication technology. “In order for the Malaysian economy to remain on track, we have to depend on the domestic economy. “We must leverage on the transformative power of science and technology, and instil the spirit of innovation and creativity among our entrepreneurs to further energise the domestic economy,” he said. Najib said this in his opening remarks to representatives from the private sector and non-governmental organisations during the 2017 Budget Consultation Council meeting at the Finance Ministry, here today.
Explain shareholding changes The Star Online 10th Jun 2016
Penang MCA wants Chief Minister Lim Guan Eng to explain whether there have been shareholding changes in Consortium Zenith-BUCG Sdn Bhd (CZBUCG), the firm undertaking the massive undersea tunnel project. Its secretary Dr Tan Chuan Hong said Lim also had to explain how the shareholding changes took place “without the knowledge of the state government”. He said the state government had been boasting of a competent, transparent and accountable administration but remained secretive over the multi-billion project and its exorbitant research costs, which subsequently led to several queries on accounting.
PM says federal govt debt still manageable The Star Online 10th Jun 2016
The Federal government debt is manageable and far smaller than that of developed countries like the US and Japan, says Prime Minister Datuk Seri Najib Tun Razak. "The sovereign debt of the US, Japan and Singapore is far bigger when compared with their per capita income," he said on Friday.
Malaysia vows 'prudent' budget to meet fiscal goal Nikkei Asian Review 9th Jun 2016
Malaysia's budgetary authorities said Thursday the country will spend "prudently" to meet the government's budget deficit target amid uncertainties in the global economy. Some of the measures it plans include a freeze on creating new government agencies and hiring foreign consultants. Employment of civil servants will be capped, as will overseas trips, to reduce wasteful expenditure, the Ministry of Finance said in a press release. Malaysia has set aside 215 billion ringgit ($53 billion), equivalent to 17.3% of gross domestic product, for the government's operating budget. As a share of GDP, the budget has shrunk for a second straight year, due partly to lower commodity prices, which have squeezed public coffers.
Late sell-off sends KLCI down more than 7pts The Star Online 9th Jun 2016
Selling pressure picked up pace on Bursa Malaysia in the late afternoon on Thursday, with Sime Darby, AmBank and AirAsia among the casualties, in line with key Asian markets which were open. At 5pm, the FBM KLCI closed down 7.34 points or 0.44% to 1,650.51. Turnover was 1.74 billion shares valued at RM1.61bil. There were 347 gainers, 372 losers and 395 stocks unchanged.
Wahid talks about his three 'action-packed' years as Cabinet minister The Star 7th Jun 2016
Tan Sri Abdul Wahid Omar (pic) describes his three years stint as a Cabinet minister as an “action packed” experience. In a note to the media, the former minister in the Prime Minister’s Department shared some of his experience in the Cabinet, Economic Council and Parliament.
Fiscal Consolidation Among Key Government Measures To Strengthen Nation's Economy - Wahid Bernama 6th Jun 2016
Fiscal consolidation efforts including subsidy rationalisation and implementation of the Goods and Services Tax (GST) are among important measures implemented by the government in strengthening the country's economy.
Wahid: GST among measures implemented to boost economy The Star 6th Jun 2016
Fiscal consolidation efforts including subsidy rationalisation and implementation of the Goods and Services Tax (GST) are among important measures implemented by the government in strengthening the country's economy, according to Tan Sri Abdul Wahid Omar.
A success story of country's New Economic Policy NST Online 6th Jun 2016
TAN Sri Abdul Wahid Omar, the 52-year-old former minister in the Prime Minister’s Department, considers himself an example of Malaysia’s successful economic planning and inclusive policies.
'GLCs spur competitiveness' [VIDEO] NST Online 6th Jun 2016
Government-linked companies (GLCs) such as Tenaga Nasional Bhd (TNB) and CIMB Group have grown to become market leaders in their industries, and are not crowding out the private sector as some people claim, said Tan Sri Abdul Wahid Omar.
Energy
Joint efforts result in Malaysia's first Tension Leg Platform NST Online 25th Jun 2016
Malaysia’s first Tension Leg Platform (TLP), which was completed in April, is a result of a collaboration among major oil players — a signal that joint efforts are needed to remain sustainable during the “lower for longer” period.
Ministry, auto firms in talks for July start to B10 biodiesel scheme The SunDaily 21st Jun 2016
The Ministry of Plantation Industries and Commodities (MPIC) yesterday announced that it is in consultation with automotive companies on the phased implementation of the B10 biodiesel programme for the transport sector starting next month.
Malaysia in talks to move startup of B10 biodiesel program to July Reuters 20th Jun 2016
This takes into account time needed for oil companies to reset blending ratios and procure enough palm methyl ester (PME), said the ministry of plantation industries and commodities in an email reply to Reuters, referring to the bio component of biodiesel that comes from palm oil. Malaysia, the world's second largest palm oil producer after Indonesia, had earlier said it would raise Malaysia's biodiesel mandate to 10 percent for the transport sector and to 7 percent for the industrial sector beginning in June. The new standard would raise the minimum bio content of biodiesel from the current 7 percent, taking up more palm oil supplies and supporting local prices.
Malaysia biodiesel plan faces squeeze from low crude oil prices The Business Times 17th Jun 2016
A new mandate in Malaysia to use more biodiesel will not create enough new demand to drain surplus output of crude palm oil (CPO) in the world's second-biggest producer as exports slow in coming months, planters say. Malaysia said in May it will increase the minimum biodiesel content for the transport sector to 10 per cent from 7 per cent. It will also introduce a 7 per cent mandate for the industrial sector. The current low crude oil prices are expected to make it tougher for biodiesel to compete and government predictions of consumption are seen falling short to tackle the surplus. Both programmes, due to start this month, should increase Malaysia's annual domestic consumption of CPO to 709,000 tonnes, the government said. That would be a marginal increase from the current level of about 500,000 tonnes a year, say industry players. They think consumption should increase to 1.3 million tonnes to siphon off domestic stocks bound to rise in the coming months as export demand slows after the Muslim holy month of Ramadan. Malaysia's palm oil inventories fell 8.8 per cent to 1.65 million tonnes at end-May, but are forecast to rise in the last quarter of the year as output sees seasonal gains.
Malaysian palm oil price hits 4-1/2 month low as Malaysia raises export tax The Star Online 16th Jun 2016
Kuala Lumpur: Malaysian palm oil futures extended losses into an eighth straight session on Wednesday and hit a four-and-a-half month low, pressured by declining rival oils and the announcement of an increase in crude palm oil export tax.Benchmark palm oil futures for August delivery on the Bursa Malaysia Derivatives Exchange were down 0.5 percent at 2,468 ringgit ($602) per tonne in the evening. Earlier in the day, the contract hit its weakest level since Jan. 29 at 2,437 ringgit. Palm oil has lost 4.3 percent so far this week, heading for its sharpest weekly drop since October 2015.Traded volume stood at 62,670 lots of 25 tonnes each at the end of the trading day on Wednesday. "The CPO (crude palm oil) tax rise to 6 percent is negative as it reduces our competitiveness," said a Kuala Lumpur-based trader, comparing with Malaysian and Indonesian exports.
Malaysia's Petronas seeks $7.2-bln loan for RAPID project Reuters 16th Jun 2016
Malaysia's Petronas is seeking to raise $7.2 billion for its Refinery and Petrochemical Integrated Development (RAPID) project in one of the largest project financings from Asia in recent years, Thomson Reuters LPC reported on Wednesday. State-owned Petroliam Nasional Bhd has asked banks for underwriting commitments of at least $500 million by next week, LPC reported, citing sources. A banking source confirmed to Reuters that Petronas has issued a request for proposals for the loan to be used to finance the $16-billion RAPID project. Petronas did not immediately reply to requests for comment. The project in the southern state of Johor is set to be Malaysia's largest liquid-based green-field downstream development. It will consist of a 300,000-barrels-per-day refinery and petrochemical complex, with a combined chemical output capacity of 7.7 million metric tons per year.
AE Multi to invest RM140m in tie-up with JMT Kelantan for hydro-power plants The Star Online 16th Jun 2016
Printed circuit boards manufacturer AE Multi Holdings Bhd is venturing into renewable energy industry with a proposed investment of RM140mil in a tie-up with JMT Kelantan Baru Sdn Bhd. AEM will team up with JMT which designs, constructs and operates mini hydro-power plants. AEM signed a heads of agreement with JMT on Thursday. Pursuant to the agreement, both parties will negotiate the terms and conditions of the proposal. The plan is to finalise and ink a definitive agreement within 45 days. JMT shall grant AEM the right to operate and maintain two 10 megawatt (MW) integrated flood mitigated mini-hydro power project in Joh Labok and Temangan in Machang, Kelantan. AEM shall be entitled to 80% of the total profit from the sale of power to Tenaga Nasional Bhd under the renewable power purchase agreements (REPPAs) signed between JMT and the power company. This is conditional upon AEM investing RM140mil and AEM will undertake a corporate exercise to raise funds for the investment.
Cooperating on renewable energy The Star Online 16th Jun 2016
Investment holding group, VSolar Group Bhd has signed a memorandum of understanding with Universiti Teknologi Malaysia (UTM) to cooperate in research and development (R&D) and commercialisation programmes in solar energy. Representing the company at the signing ceremony was executive chairman Datuk Manan Md Said and executive director Leung Kok Keong, while UTM’s representative was its deputy vice-chancellor (Research and Innovation) Prof Dr Ahmad Fauzi Ismail. VSolar said it would be looking into conducting extensive research and development of solar and photo-voltaic technologies with a view to commercialising them. “Looking forward, the intention is to expand, tapping into the potential of these technologies to create a Renewable Energy Initiative,” it said in a statement. Vsolar, which operates as an investment holding company, is involved in renewable energy, media publishing, software solutions and production house.
Oil & gas market rally in Malaysia fizzles out The Star Online 15th Jun 2016
PETALING JAYA: The recent surge in oil and gas (O&G) counters is fizzling out as new data indicates that the industry’s fundamentals still have some way to go before it catches up with the recovery in sentiment recently, say analysts. The major downturn in equities in recent days has also wiped out a large chunk of the gains in O&G counters, which had previously rallied in line with rising crude oil prices. Shares of SapuraKencana Petroleum Bhd (SapKen) closed at RM1.50 yesterday after rallying to a high of RM1.77 on June 8. Another large cap, Bumi Armada Bhd, retreated to 71 sen on Tuesday after having risen to 78 sen on June 9. While crude oil prices have recently breached new highs, with Brent crude rising to US$53 per barrel as recently as last week, the recovery in sentiment will take a while until it is reflected in the fundamentals of the industry. This is because apart from the perceived abundance of oil, which could still deter a sustained rally in prices, the oversupply of vessels for drilling and exploration works has dented the earnings of many upstream-oriented companies.
Malaysia facing surplus of gas as output jumps Interfax Global Energy 13th Jun 2016
Malaysia’s domestic gas supply could jump by 25% over the next five years, but with the fuel losing market share to coal in the power mix, the challenge will be finding a use for it. Malaysia has significant gas potential, which could see production rise by around 42.5 million cubic metres per day between 2016 and 2020, Edi Saputra, a specialist in Southeast Asian gas and power at energy research company Wood Mackenzie, told Interfax Natural Gas Daily. The figure includes supplies from probable developments. But at the same time as production is growing, gas is starting to lose market share to coal in terms of power generation. Woodmac estimates coal will increase its share of the fuel mix for power from 47% to 65% by 2020. However, the fall in global gas prices could change things. New-build coal power plants made economic sense when oil was near $100 per barrel and gas was selling at $14-15/MMBtu. But lower gas prices will make the fuel more competitive during the post-2020 phase of development as there is little difference between the cost of new-build gas versus coal, Graham Tyler, a Singapore-based senior director at consultancy Galway Group, told Interfax Natural Gas Daily.
Energy World’s Newest Supership Misses the Boat on LNG Pricing Bloomberg 9th Jun 2016
It’s longer than three soccer fields, heavier than two aircraft carriers and powerful enough to chill gas into liquid colder than the surface of Jupiter. And its maiden voyage couldn’t have come at a worse time. The world’s first modern vessel for producing liquefied natural gas was ordered by Petroliam Nasional Bhd in 2012 when LNG traded for more than $15 per million British thermal units. It was launched last month, with prices down by about two-thirds. Royal Dutch Shell Plc faces a similar problem with its version of a floating LNG plant, which will be larger than any ship ever built. The plight of the PFLNG Satu, as the first vessel is known, reflects the larger struggle facing all producers. Projects approved years ago when energy prices were high are coming online now, adding to a global supply glut that has pushed spot LNG down to $4.62 per million Btu this week. Annual LNG demand is forecast to increase by 140 billion cubic meters (5 trillion cubic feet) from 2015 through 2021, which isn’t enough to absorb almost 190 billion cubic meters of new capacity slated to become operational, the International Energy Agency said in its Medium-Term Gas Market Report 2016 published Wednesday. Petronas, Malaysia’s state-owned energy company, is betting the cycles will even out over the long run. PFLNG Satu will produce about 1.2 million tonnes of LNG annually for the next 20 years from the Kanowit gas field, which is located about 180 kilometers (112 miles) north of the coast of Borneo.
Rising oil price results in rising interest in Malaysian oil and gas counters The Star Online 9th Jun 2016
Rising price of crude oil, which had pierced the psychologically key US$50 per barrel level for the first time this year, is buoying investors’ sentiment in the stock market. Shares in battered down oil and gas companies including SapuraKencana Petroleum Bhd and Bumi Armada Bhd are off their recent lows on expectation that demand for their services will recover on higher price of crude oil.
Malaysian Energy Delegation Visits Lithuania to Forge Ties with European Solar Players Bernama 7th Jun 2016
A Malaysian delegation from the energy sector visited a leading solar factory in Vilnius, Lithuania to evaluate the latest European technology in renewable energy and forge ties with European solar players. In a statement today, Lithuania Malaysia Business Council (LMBC) said the Malaysian delegation was led by Secretary-General of the Ministry of Energy, Green Technology and Water, Datuk Loo Took Gee. The LMBC said the Malaysian delegation was invited by Lithuania to review the latest progress in dual glass solar photovoltaic (PV) technology which is used in buildings as opposed to traditional farm, a technology partnership between Lithuania, Germany, Spain, Italy and Japan. Loo said Malaysia had already established itself as a leading player in solar manufacturing in Southeast Asia. "It is currently looking to implement an ambitious large-scale solar programme that will see 1,000 megawatts (MW) of new solar projects to be built over the next four years from 2017 to 2020.
Financial Services
Asia-Pacific banks face lower margins The Star 23rd Jun 2016
: Asia-Pacific (Apac) banks are expected to face shrinking margins and dwindling returns on equity (ROE), in light of weakening balance sheets, slower macroeconomic growth and disruptive financial services from start-up companies.
Fund raising becoming difficult in Malaysia The Star 20th Jun 2016
Fund raising is becoming increasingly difficult in the current market environment.
Malaysia: Regulator to further study risk parameters Asia Insurance Review 21st Jun 2016
Bank Negara is looking to further review the risk parameters for the regulation of the local insurance industry over the next two to three years, while keeping close tabs globally on the development of international capital standards in the industry. Assistant Governor Jessica Chew said that since the introduction of the risk-based capital (RBC) framework in Malaysia in 2009, the central bank has been closely monitoring the development, reported The Star newspaper.
EPF's Shariah savings scheme open for registration on Aug 8 The Star Online 20th Jun 2016
he Employees Provident Fund's (EPF) new Shariah-compliant savings scheme will be open for registration on Aug 8, 2016. The EPF's chief executive officer Datuk Shahril Ridza said on Monday the retirement fund has allocated an initial RM100bil, which is about 15% of its's total investment assets of RM681.7bil as at March 2016. "EPF's venture into Islamic investment assets is not new as more than 45% or RM295bil of EPF's total investment assets are already Shariah compliant," he told reporters at a briefing.
Ringgit opens higher against US$ Monday The Star Online 20th Jun 2016
The ringgit opened higher against the US dollar Monday propped up by stronger global oil prices amid returning interest to emerging markets, dealers said. At 9 am(0100GMT), the local unit was quoted at 4.0750/0810 against the US dollar from Friday's close of 4.0970/0030. A dealer said interest in emerging market assets returnesd following the US Federal Reserve's decision to maintain interest rate last week. Meanwhile, he said the stronger oil prices further drove interest in oil exporting countries' assets.
Growing visibility for insurers Borneo Post 19th Jun 2016
nsurance players are feeling the brunt of a slowing economy, despite a growing level of customer satisfaction. Researchers with MIDF Amanah Investment Bank Bhd (MIDF Research) may revise downwards its 2016 forecast for the country’s gross domestic product (GDP) forecast should the slowdown in manufacturing continue. Last week, the Statistics Department said Malaysia’s industrial production index (IPI) grew at a slower pace of three per cent in April from a year ago – lower than economists’ consensus of a 3.5 per cent increase. On a seasonally adjusted basis, the IPI in April contracted by 0.8 per cent from March, the worst in eight months. MIDF Research said it will maintain its 2016 IPI growth forecast at three to 3.5 per cent and GDP expansion at 4.4 per cent for the time being. “However, a downward revision is likely if the economy continues to slow further. “The moderating manufacturing index, despite the strong private consumption growth in 1Q16, is providing a gloomy outlook to Malaysia economy while the high electricity index is a unique phenomenon due to the El Nino effect,” it said in a note on this point.
Allianz: Malaysia to grow by 4.2% this year NST Online 15th Jun 2016
Challenging external conditions both in terms of trade and capital flows will likely lead Malaysia to see a 4.2 per cent growth this year says Allianz. Chief economist Prof Michael Heise expects it to be supported by consumption activities as a result of households and strong employment. "Sound private gross fixed capital formation and a more diversified economy will contribute towards the growth," he said at a media briefing. Private consumption is however expected to moderate to a 4.5 to 5 per cent range this year he added.
Malaysia's c.bank to adopt new spot fixing system for dollar/ringgit trade Reuters 15th Jun 2016
Malaysia's central bank announced on Wednesday a new spot fixing methodology for U.S. dollar/Malaysian ringgit trade effective on July 18, which will be based on the weighted average volume of transactions by domestic financial institutions. Bank Negara Malaysia said in a statement that the new methodology is more transparent and better reflects underlying trades during the day. Previously, the USD/MYR Reference Rate was based on quotations from selected banks. The central bank also said that trading in the onshore ringgit market will be extended by an hour to 6 pm (1000 GMT)
Going from pen to PIN The Star 13th Jun 2016
Security for credit and debit card usage will move a significant notch higher with the signature-based system to be replaced with PIN (personal identification number) verification. About 39 million – eight million credit and 31 million co-badged debit cards in Malaysia – will be replaced with new PIN-enabled cards to meet the January 2017 deadline set by Bank Negara. Merchant payment terminals are also to be upgraded to accommodate the new security-enhanced system.
A Self-Inflicted Downgrade for Malaysia? Barron's 8th Jun 2016
Goldman Sachs is sharing its giant vampire squid with Najib Razak’s government in Malaysia. The investment colossus has found itself at the scene of many a scandal - a financial Forrest Gump, if you will. From U.S. Treasury bidding probes to Greece’s debt crisis to the subprime meltdown, Goldman’s bankers were there reaping fortunes behind the scenes. In a 2009 Rolling Stone piece, Matt Tiabbi famously branded it “a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.”
Malaysia: Insurance roadmap to hone insurers' competitiveness Asia Insurance Review 6th Jun 2016
Malaysia's phased liberalisation roadmap will positively affect the country's insurance sector by raising insurers' competitiveness over time as economic integration with South-east Asian economies sets in, says Fitch Ratings. The phased liberalisation will provide motor insurers with greater discretion to adequately price risks in the near-term and controlled deregulation will protect fire insurers' profitability from underwriting volatility caused by competitive pricing.
Food & Agriculture
MCA Koperasi Petani urges youths to be urban farmers The Star Online 23rd Jun 2016
MCA Youth’s Koperasi Petani Muda Malaysia (KPMM) is hoping to encourage more city youths to become urban farmers so that Malaysia can be more self-sufficient in food supply. “With techniques like hydroponics, urban farmers don’t need land to cultivate crops, they only need the space to grow fruits and vegetables. “We are also hoping that private companies will come on board to help these youths in their ventures,” he said in his opening address at a KPMM seminar on hydroponics yesterday.MCA Youth chief Chong Sin Woon said youths had the talent and creativity to shake things up in the agriculture industry but they needed the right platform.
Malaysia expanding maize cultivation, with first commercial planting to start in Kemaman The Sun Daily 22nd Jun 2016
Malaysia is expanding its maize cultivation with the first commercial planting to start in Kemaman, Terengganu by month's end. Agriculture and Agro-based Industries Minister Datuk Seri Ahmad Shabery Cheek said Malaysia imported up to four million metric tons of maize grains, worth RM33.33 billion annually. "To overcome rising maize prices, efforts to plant maize in the country will be expanded," he said in a statement issued by the Veterinary Services Department Commodities Livestock Development Division today. He said this following complaints from Federation of Livestock farmers' Association of Malaysia (FLFAM) expressing their indignation against rising prices of maize grain imports. FLFAM president Jeffry Ng Choon Ngee said since last May, the price of maize imports had risen several times from RM800 to RM1,200 per tonne at present. This has increased the burden of the country's poultry farmers as maize is the main raw material in poultry food formulation of between 60% to 65%, he said, adding 80% to 90% of maize grains used in Malaysia are imported from Argentina.
El Nino, La Nina's Real Impact On Malaysia's Palm Oil Production Malaysian Digest 19th Jun 2016
[T]he Dean of the Faculty of Agriculture and Universiti Putra Malaysia Prof. Dr. Abdul Shukor Juraimi believes otherwise, stating that La Nina is beneficial to crops and will increase yields on the agricultural sector in the short term. He noted that La Nina will have an impact especially flooding later in the year, but before that yields will be good. "We are starting to experience a lot of (temporary) rain, due to the monsoon season coming’ he told Malaysian Digest. "It's a good thing for the plantations, rubber estates and oil palms, because we haven't been receiving enough rain for the plants especially those who depend on rivers and do not have their own irrigation system. "Because of the drought we have a reduction of yield. With the rainfall the yield will increase and the income of farmers and other industries will be bountiful this time. "That’s the positive effect of La Nina for agriculture - we need this actually. We need the rain because our agriculture very much depends on rain’.
Rising trend of halal labelling generates concern The Straits Times 14th Jun 2016
The paint tin has a silhouette of a mosque on the label, while the paint company's brochure has the face of a pig crossed out. Indonesian company Bernahal uses these images to show its wall paint is halal, or permissible for Muslims, part of a growing range of goods aimed at winning over pious Islamic consumers in a global market estimated to be worth US$2 trillion (S$2.7 trillion) a year. To emphasise its appeal, Bernahal says the chemicals in its paints are free from lard, which is considered unclean in Islam. In Indonesia, the world's most populous Muslim nation, there are many other items touted as halal, such as a computer mouse, headscarves and even shirt buttons.
Farmers urged to better manage their harvest The Star Online 10th Jun 2016
Farmers have been urged to work together and plan their harvest schedule to ensure sufficient crop supply and price stability in the future. Chong Sin Woon, who spearheaded the MCA Youth’s Koperasi Petani Muda Malaysia (KPMM), said a well-managed harvest programme would ensure a steady supply of crops to maintain optimal prices for both farmers and consumers.
Matrade urges Malaysian firms to familiarise with new US food safety regulation Astro Awani 23rd Jun 2016
The Malaysia External Trade Development Corp (Matrade) is urging Malaysian companies to familiarise themselves with the new food safety regulation introduced by the US Food and Drug Administration (FDA) which was announced in May this year.
Health & Life Sciences
Healthy Ministry to meet Jakim for fatwa on vaccination The Malay Mail Online 26th Jun 2016
The Health Ministry will consult the Malaysian Islamic Development Department (Jakim) over a possible fatwa or religious edict to make it compulsory for Muslim parents to vaccinate their children. Deputy Health Minister Datuk Seri Dr Hilmi Yahaya said that after discussing with Jakim, the ministry will then approach the Muzakarah National Fatwa Committee Council in Islamic Affairs, informally called the National Fatwa Council, on the matter. Two children died of the highly-contagious diphtheria virus recently due to being unvaccinated. “I will discuss with Jakim whether there is a need for us to issue a fatwa to make it compulsory for parents to immunise their children. “We will then see how we can get the National Fatwa Council on the matter,” he was quoted as saying by the New Sunday Times.
CAP supports Health Ministry effort to impose tax on sugary drinks The Star Online 21st Jun 2016
The Consumer Association of Penang (CAP) had expressed its support on the proposal by the Health Ministry to impose tax on sugary drinks. Its president S.M Mohamed Idris said the move would receive a backlash from the people in general but such a step was needed as soft approach such as talks on the harm caused by excessive sugar was ineffective. Idris said that according to statistics from International Diabetes Federation (IDF), in 2015, about 3.3 million Malaysian suffered from diabetes, with a total medical expenditure racking up to RM7bil. On June 16, Deputy Health Minister Datuk Seri Dr Hilmi Yahaya had told the Dewan Negara that the ministry was planning to impose tax on sugar sweetened drinks in an effort to tackle diabetes and obesity in the county.
Malaysia bolsters efforts to attract medical tourists from Myanmar Myanmar Times 20th Jun 2016
Malaysia is stepping up efforts to compete with Singapore and Thailand to attract Myanmar medical tourists. This weekend, the Malaysia Healthcare Travel Council, an organisation set up by the Malaysian Ministry of Health to promote Malaysia as – in the words of its website – “a unique destination for world-class healthcare services”, launched a year-long partnership with a local tourism agency. The council also held its first Myanmar Sales Mission & Exhibition in Myanmar Plaza on June 17 and 18. Though the number of Myanmar patients travelling to Malaysia has increased since the country started offering services, the total still lags far behind those travelling to Thailand and Singapore.
Malaysia issues warning as number of HFMD cases spikes Channel NewsAsia 16th Jun 2016
A total of 1,379 cases of hand, foot and mouth disease (HFMD) were recorded across the country from Jun 5 to 11, an increase of 83 cases (6.4 per cent) compared to the previous week's 1,296. Director-general for health Noor Hisham Abdullah said the increasing trend in cases of HFMD was seen in Apr 24 to 30, during which 794 cases were recorded, surpassing the warning level of 644 cases a week. "The Ministry of Health issued a warning letter on the increasing number of HFMD cases in Malaysia on May 9 to all state health departments so that they can improve monitoring efforts to prevent it from spreading,” he said in a statement on Thursday (Jun 16).
Health Ministry to propose tax-exemption for sugar-less food products NST Online 15th Jun 2016
The Health Ministry plans to suggest a list of 'sugar-less' processed food and drink products which qualify for tax incentives. Deputy Health Minister Datuk Seri Dr Hilmi Yahaya said the ministry would recommend certain products to be eligible for tax reduction or exemption to encourage consumers to opt for products that are less sweet. "For instance, mineral water can be exempted from the Goods and Services Tax (GST). “In promoting a healthy diet, we often use the soft approach by encouraging consumers and manufacturers to use less sugar.
Malaysia warns of leptospirosis risk at natural water spots The Straits Times 10th Jun 2016
At least two people have died of the highly infectious leptospirosis after taking a dip in a waterfall or pond in Malaysia in the last two months, prompting an alert from the health ministry. The ministry is advising schoolchildren and their parents to be extra careful not to contract leptospirosis, a bacterial infection spread mainly by rodents, while vacationing in natural water spots during the school holidays. The so-called rat urine disease killed 78 people last year, according to the ministry. Recreational areas accounted for 32 per cent and 22 per cent of outbreaks of the disease in the past two years. So far this year, there have been 14 outbreaks of the disease and 2,200 people have been infected, the ministry said. Nearly half of the outbreaks occurred in Selangor while Kelantan accounted for the highest number of cases with 365, followed by Sarawak with 362 cases and Terengganu with 323 cases.
Malaysia: Health Minister warns out-of-pocket spending too high http://www.asiainsurancereview.com/ 10th Jun 2016
Malaysia must address its high rate of out-of-pocket payments for private healthcare services to prevent negative financial consequences to patients, cautioned the country's Health Minister Dr S Subramaniam. He said Malaysians’ total healthcare expenditure was MYR45 billion (US$11 billion) annually, of which nearly MYR36 billion was funded out-of-pocket, reported The Star newspaper.
ICT
Strong interest in P2P platform The Star 23rd Jun 2016
A significant number of parties are scurrying to submit their applications to run peer-to-peer (P2P) lending platforms, the latest in financial technology (fintech) initiatives being carried out by the Securities Commission (SC).
SPAD seeks to legalise ride-hailing services The Star 19th Jun 2016
The Land Public Transport Commission (SPAD) has submitted a proposal to the Government to legalise and regulate ride-hailing services such as Uber and Grab. In a statement on Saturday, SPAD said it had taken a "balanced approach" that focuses on ensuring present policy, regulations and requirements form a level playing field for the taxi industry in the future. "We recommend the issuance of new individual taxi licences to drivers with clean track records to encourage entrepreneurial spirit at the individual level," said the Commission. "It also provides a viable exit option for eligible taxi drivers who are burdened under the current leasing (pajak) model."
Astro to grow reach The Star Online 6th Jun 2016
Astro Malaysia Holdings Bhd is targeting to serve 90% of Malaysia’s households and increase its average revenue per user (arpu) to RM119 in five years’ time. Astro’s free satellite TV service, NJOI, which is also Malaysia’s first free satellite TV service, is expected to be the driver of Astro’s reach growth, besides its pay TV model. “Customer reach is extremely important for us to get scale, because scale brings with it the ability to price and compete from a cost-effective basis. “We have every intention of growing within the Malaysian landscape. “We think in five years we can easily be in 90% of Malaysia’s households by virtue of our pay and NJOI models,” Astro CEO Datuk Rohana Rozhan told StarBiz. As of its first quarter ended April 30, 2016, the company reported an arpu of RM99, and served 69% of Malaysia’s households. Astro recorded an increase of 80,300 households for the quarter, making the cumulative customer base of 4.9 million households. From the 4.9 million households, 3.5 million are pay TV customers while the remainder 1.4 million are NJOI customers. Astro spends 35% of its revenue on content cost, and this is expected to increase to 38% as content costs are increasing.
Malaysian consumers not happy with their telcos and banks, study shows Malay Mail 6th Jun 2016
A recent study by Frost & Sullivan looked at the Net Promoter Score (NPS) for companies in the banking, telco, and health and life insurance sectors. — DNA pixKUALA LUMPUR, June 6 — Malaysians consumers are not likely to promote their primary banks and telco service providers to others, compared with their insurance peers, but all three sectors need to improve on the customer experience front, according to a Frost & Sullivan study. The research firm looked at the Net Promoter Score (NPS) for companies in the banking, telco, and health and life insurance sectors. NPS is calculated as the percentage of promoters (customers likely to promote a brand) deducted from the percentage of detractors. Telcos fared the worst, with an average NPS score of -17 per cent, while banks and insurance providers had average scores of -8 per cent and -6 per cent, respectively. Yes, all three sectors are in the negative zone. In the banking industry, CIMB Bank Bhd led with 9 per cent while RHB Bank Bhd had the lowest NPS score of -21 per cent. In the telco space, U Mobile Sdn Bhd scored the highest at -1 per cent, with Maxis Bhd the worst at -29 per cent. In between were Telekom Malaysia Bhd (-7 per cent) at No 2, followed by Digi.com Bhd (-18 per cent) and Celcom Axiata Bhd (-19 per cent).
Legalising Uber and Grab is like throwing sand in our rice bowls, taxi association says The Malaymail 19th Jun 2016
The proposal by the Land Public Transport Commission (SPAD) to legalise Uber and Grab will not augur well for the taxi industry in the country, the Malaysian Taxi Drivers Transformation Association (PERS1M) said today. PERS1M vice-chairman Kamaruddin Mohd Hussain added that such a move would badly affect the revenue of cabbies and urged SPAD to consider their welfare.
More than 2,100 servers in Malaysia have been hacked, says cybersecurity agency The Straits Times 17th Jun 2016
Malaysia's national cybersecurity agency said it detected intrusions in several local servers for years and issued advisories to victims but ignorance was still making them easy targets for hackers. It was found that over 2,100 servers have been compromised and their access sold to hackers for as low as RM29 (S$9.50) up to RM24,600 on an underground cybercrime shopping website, xDedic, the "eBay of cybercrime" where hackers shop access and passwords for infiltrated servers worldwide for criminals to buy.
Is Malaysia's First Online Rental Network The Future Of Housing In Kuala Lumpur? Forbes 16th Jun 2016
Haftarent started out in January and now has 3,000 registered tenants as well as a couple hundred properties across the Malaysian capital. Akhtar says he is looking into expanding to Johor Bahru, Malaysia’s border city with Singapore which is also quite an expat hub with those working in Singapore opting for the 30 minute commute to save on rental prices. He is also looking at Jakarta, Manila, Bangkok, and Vietnam where property markets are booming.
MIS-Asia - Eyeing 'formidable IoT' market, Malaysia's ECS to distribute Orion VR devices MIS Asia 14th Jun 2016
Malaysian ICT distributor ECS ICT has added to its Internet of Things (IoT) distribution portfolio with agreement to distribute Orion VR (virtual reality) goggles. ECS ICT's chief executive officer Soong Jan Hsung said the agreement to distribute Orion VR goggles followed recent deals to handle drones and other wearable technologies with major brands such as Apple and Moto. "From our perspective, bringing in the 'Orion' VR goggles is also complementary to our smartphone distribution segment, seeing that smartphones are an integral part of these goggles," said Soong, adding that the Orion VR device "uses a smartphone as its screen to immerse users into a digital simulation of an environment, allowing users to experience it as if present in that space."
Malaysian’s ICT project making waves in Thailand Free Malaysia Today 13th Jun 2016
Teacher Zainuddin Zakaria initiates project that allows sharing of learning resources by teachers in 15 countries. BANGKOK: A Malaysian has started a project to integrate learning resources across borders via information and communications technology (ICT). Zainuddin Zakaria, who won Thailand’s Princess Maha Chakri Award last year, has networked with teachers in 15 countries including Thailand to implement his ideas.
Grab rolls out cross-border carpooling service between Johor Bahru and Singapore Singapore Business Review 13th Jun 2016
Grab has unveiled GrabHitch, its first inter-country carpooling service which will target commuters travelling between Johor Bahru and Singapore. According to Singapore’s Immigration & Checkpoints Authority and Malaysia’s Immigration Department, an estimated 400,000 commuters pass through the Woodlands and Tuas checkpoints daily. Despite high toll fees and frequent traffic jams, a majority of commuters still prefer to travel by private cars when crossing the border for the convenience of door-to-door transport. The fare for a GrabHitch ride is calculated based on the distance of the ride and a fixed cross-border surcharge. Passengers can pre-book rides up to 7 days in advance, and up to 30 minutes before the pickup time, by simply selecting a convenient pickup and drop-off location. Drivers and passengers will be notified when a successful match of the route is made. The ride-sharing service is still in beta. It will be available for booking in JB and SG starting 20 June.
Infrastructure
Value of construction jobs higher at RM150bil The Star 27th Jun 2016
The value of construction jobs to be given out in the country this year is expected to hit about RM150bil compared with RM124bil in 2015.
Invitation to railway forum in Beijing a timely event for Malaysia: Liow | theSundaily The Sun Daily 23rd Jun 2016
Malaysia's participation in the Railway Cooperation and Development Forum in Beijing, China on Monday was timely, said Transport Minister Datuk Seri Liow Tiong Lai (pix). Liow in a statement today said the forum was organised in conjunction with Modern Railways 2016 and hosted by China Railway. "During the event, I had the pleasure of meeting Yang Chuantang, Minister of Transport China and Lu Chunfang, Deputy General Manager of China Railway," he said. Liow said given the rail prospects within Asean, Malaysia's participation in the forum was indeed timely. "Transport infrastructure is a key driver of the Asean economy, and expenditure for the development of rail infrastructure in Asean alone is projected to be approximately US$119 billion (RM487.9 billion) by 2020," he said. Liow said Malaysia's rail sector has a burgeoning potential and the government is committed to support its continued growth. "We have allocated RM160 billion towards the development of new railway lines, including the MRT project, the extension of LRT lines, as well as the Electrified Double Tracking Project linking Negri Sembilan to Johor," he said. Liow said the Malaysia-Singapore High Speed Rail (HSR) was also in line with the Singapore-Kunming Rail Link which will link Asean nations to China, as part of the One Belt One Road initiative.
No name change for Malaysia's KLIA2: Transport Minister Channel NewsAsia 23rd Jun 2016
There is no name change for Kuala Lumpur International Airport 2 (KLIA2) since it is registered in the International Air Transport Association as part of KLIA’s official code, namely 'KUL’, said Transport Minister Liow Tiong Lai on Thursday (Jun 22). "Names should not be changed for the sake of changing," Mr Liow said in his statement. He added: "Nonetheless, the Ministry of Transport acknowledges AirAsia’s intention to brand KLIA2 as a low-cost terminal as part of their efforts to bring in more travellers to Malaysia. "We are open to hear from them what proposals they may have in place in order to position KLIA2 internationally as a leading low-cost terminal to spur the nation’s tourism and aviation industries." Mr Liow said the government had always supported the nation's low-cost carriers, particularly AirAsia: "We are glad to have played a role in AirAsia's growth to become one of the world's largest low-cost airlines. He said the government was committed to continue supporting and providing such incentives to encourage the growth of Malaysia's low-cost airlines sector.
2016 Strata Ownership Bill amendment eases strata ownership application for old buildings The Malaymail 20th Jun 2016
The 2016 (Amendment) Strata Ownership bill which was approved in Dewan Negara today, will ease strata ownership title applications specifically for buildings before April 2007.
Dredging project a boon for Kuching Port The Star Online 20th Jun 2016
A federal government-funded massive dredging project will be undertaken for a long stretch of silted Sarawak River up to Kuching Port Pending terminal here. The project, estimated to cost some RM360mil, will cover a 23.4km-long navigational channel from the Pending terminal to Tanjung Po. According to Kuching Port Authority (KPA) general manager Rosli Saup, the proposed dredging works, which is expected to take 24 months, would deepen that stretch of the river to 9 metres below chart datum, with tidal water up to 12 metres draught. The river has a current depth of 7.5 metres.
Infrastructure development key to Sarawak's growth NST Online 15th Jun 2016
Concerns were raised over the on-going construction of the multibillion ringgit Pan-Borneo Highway project at the end of the Sarawak Legislative Assembly Sitting last week. On the last day of the sitting — the first assembly held after the 11th Sarawak Election last month — the august house was told that Sarawak’s annual infrastructure development budget was slashed to make way for the development of the RM16 billion dual-carriage highway project. In his winding-up speech, Chief Minister Tan Sri Adenan Satem, in responding to an interjection by state DAP chairman Chong Chieng Jen, promised that the state government would pursue the matter with the Federal Government. Several ministers and political leaders expressed dismay that the annual budget to develop infrastructure in Sarawak had been slashed for the construction of the mega project. There were also concerns that Sarawak would not be able to achieve its long-term goal of becoming a developed state by 2030 if the funds from the Federal Government for infrastructure development was slashed. Adenan’s deputy, Tan Sri James Jemut Masing, who is in charge of infrastructure development, contended that Sarawak’s annual allocation for infrastructure development should be untouched and that the Pan-Borneo Highway project must be executed to realise the dreams of Sarawakians for better road connectivity. The highway project, involving the upgrading and construction of new roads from Telok Melano to Merapok, was launched by Prime Minister Datuk Seri Najib Razak in Bintulu on March 31, last year. When completed in early 2022, the 1,089km-long highway will be the catalyst of growth in the state, thus changing the economic landscape to one of a prosperous Sarawak, leading to developed-state status by 2030. The project will be carried out in 12 phases, with the fourth phase involving the construction of a 76.2km dual carriageway from Bintangor in Sarikei to Sungai Kua in Selangau in Sibu. This phase was launched in April last year. While concerns have been raised on this issue, an assistant state minister, who spoke on condition of anonymity, believed that the matter would be resolved in favour of the state government. “
MCKIP secures RM1.58b additional ventures NST Online 14th Jun 2016
The Malaysia-China Kuantan Industrial Park (MCKIP) has secured additional investments worth RM1.58 billion from China and Malaysia. With the new ventures, total investments in MCKIP, which is located within the East Coast Economic Region Special Economic Zone (ECER SEZ), increased to RM15.08 billion. ECER SEZ encompasses Kuantan Port, Kuantan, Gambang and Pekan in Pahang. The signing of the agreement was witnessed by International Trade and Industry Minister II Datuk Seri Ong Ka Chuan, Prime Minister’s special envoy to China Tan Sri Ong Ka Ting and Giangxi Zhuang Autonomous Region vice-governor Zhang Xiaoqin. MCKIP was launched in 2013 and is the first industrial park in Malaysia to be jointly developed by Malaysia and China, and to be accorded the “National Industrial Park” status. Meanwhile, Ong said Miti planned to use the US$100 billion (RM412 billion) fund under the Asian Infrastructure Investment Bank (AIIB) to strengthen the infrastructure systems and improve trade facilitation between Asean countries.
Penang BN reps snub transport council appointments The Malay Mail Online 14th Jun 2016
The new line up of the Penang Transport Council who were appointed on June 14, 2016. The three Barisan Nasional (BN) assemblymen appointed to the Penang Transport Council (PTC) refused today to attend their installation ceremony, claiming they were not given sufficient details on the body’s roles and functions. In a joint statement, Penang Opposition Leader Datuk Jahara Hamid and two other Umno representatives Datuk Shah Headan Ayob Hussain Shah and Nordin Ahmad said they only received an invitation to the ceremony and no appointment letters. The state lawmakers added that such information was crucial to determine the extent of PTC’s powers, and whether it would be allowed to monitor all stages of planning and implementation for the Penang Transport Master Plan (PTMP). They also claimed the appointment of more members in the PTC was done in a rush “as if the council is merely a rubber stamp”.
Malaysia shuts down first sharia-compliant airline The Business Times 13th Jun 2016
Rayani Air, Malaysia's first Islamic-compliant airline, has been shut down, regulators said Monday, months after it was suspended from flying for breaching aviation regulations. The carrier launched only in December with Muslim flight crew wearing the hijab while non-Muslim members were forbidden from wearing revealing clothing. In-flight meals were completely halal and alcohol consumption banned. But after an "investigation into the administration and safety audit" of the airline, the Department of Aviation (DCA) said it has revoked Rayani's Air Operator Certificate. The DCA launched an inquiry into the airline in April following a string of criticisms from passengers and the government over delays and last-minute cancellations. That month saw pilots of the carrier, which operates two Boeing 737-400s, also go on strike over unpaid wages, further damaging its image. DCA director-general Azharuddin Abdul Rahman said the government took the step to cease Rayani's operation because "safety and security of the aviation industry is of paramount importance".
RM20 Vehicle Entry Permit fee to kick in on Jul 16: Report Channel NewsAsia 9th Jun 2016
After the trial period for the Vehicle Entry Permit (VEP) system for foreign vehicles entering Johor ends on Jul 15, Malaysian authorities are set to begin charging RM20 (S$6.70) for each foreign vehicle, the New Straits Times reported on Wednesday (Jun 8). The Malaysian newspaper quoted State Public Works, Rural and Regional Development Committee chairman Hasni Mohammad as saying that authorities have seen "motorists from the neighbouring country giving their full cooperation and following the procedure" during the trial period so far. The VEP scheme will initially involve foreign-registered vehicles entering Malaysia via Johor and will be implemented at the rest of the 12 road entry points in Malaysia in stages. The second phase will cover Thailand, the third phase Brunei and Indonesia, and the fourth phase other designated entry points. To register for the VEP, vehicle owners will need to create an account at Malaysia’s Road Transport Department website.
Manufacturing
Mobius still bullish on Malaysia The Star Online 16th Jun 2016
Mark Mobius (pic), the executive chairman of Templeton Emerging Markets Group, remains bullish on Malaysia and sees sectors such as oil and gas (O&G) and consumer products as attractive investment bets. In his newsletter to investors, Mobius also noted that the country’s economic growth has been very good while the ringgit is undervalued. He also expressed optimism that issues surrounding 1Malaysia Development Bhd and the related political scandal would not have a long-term impact on Malaysia.
Nestlé's trust in Malaysia NST Online 15th Jun 2016
How do you successfully run a food empire with some 100 years of history in Malaysia and with markets and consumer preference evolving very rapidly? With 2015 revenue of nearly RM5 billion, with the figure projected to rise to RM6 billion next year, Nestlé (Malaysia) Bhd says the secret is that you don’t stop investing, reinvesting and innovating. Displaying some new Nestlé products at his office in Mutiara Damansara, managing director Alois Hofbauer said a big challenge for the giant food company had been producing and selling daily to consumers.
'Proton needs to do a 'Perodua'' NST Online 15th Jun 2016
Doing a “Perodua” is probably best for Proton Holdings Bhd in forming strategic alliance with a global carmaker, said industry observers. Referring to Perusahaan Otomobil Kedua Sdn Bhd’s highly successful tie-up with Toyota Motor Corp’s unit Dahaitsu, they said such alliance will enable Proton to preserve its identity and grow together with its partner. “The equity distribution between Perodua and Daihatsu at both holding and manufacturing levels is a good case study,” said Malaysian Automotive Institute chief executive officer Madani Sahari. “The fair distribution has created a lot of trust and teamwork between the two entities, resulting in the market performance we’ve seen from Perodua for the past few years,” he added. There are several original equipment manufacturers that can be a good fit for Proton in the long term, Madani said. Generally, he said the strategic partner must compliment Proton’s technology acquisition plan, marketing and export platforms, and production capacity optimisation.
Scomi seeks RM365mil claims from Prasarana The Star Online 10th Jun 2016
Scomi Engineering Bhd’s (SEB) unit Scomi Transit Projects Sdn Bhd has served payment claims amounting to RM365mil on Prasarana Malaysia Bhd (PMB) in relation to the Kuala Lumpur monorail fleet expansion project on Friday, a day after PMB gave it 14 days to renew a performance bond connected to the project in lieu of contract termination. In a filing with Bursa Malaysia, SEB said PMB had issued the notice “despite continuous ongoing negotiations with PMB on the matter.”
Honda aims high with new Civic The Star Online 10th Jun 2016
Honda Malaysia has set a monthly sales target of 1,200 units for the newly launched 10th-generation Civic model. “Here in Malaysia, the Civic has sold over 80,000 units since its introduction in 2001. “We are confident that the all-new Civic will not only live up to its name but also be the game changer and up the ante in the C-segment with its stylish design, new powertrain and class-leading advance features,” said Honda Malaysia’s new MD and CEO Katsuto Hayashi
Car sales pick up in May: BATA The Brunei Times 9th Jun 2016
Sales of cars in Brunei rose by 18.5 per cent in May 2016 from the previous month, a slight relief for the automotive industry which has been facing challenges. According to the latest statistics from the Brunei Automobile Traders Association (BATA), a total of 1,125 passenger and commercial units were sold in May 2016 which is up from 949 units from April. On a year-on-year (y-o-y) basis, sales in May 2016 fell by 5.2 per cent when compared to 1,187 passenger and commercial vehicles in the previous year. A total of 4,981 units were sold as of May 2016 which is down by 23.8 per cent from 6,544 units during the same time last year.
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