UEM Builders posts RM29m Q1 net profit
Business Times
Published: 2008/05/30
UEM Builders Bhd reported RM29.2 million net profit on RM595.8 million revenue in the first quarter ended March 31 2008, compared with RM17 million net profit and RM714.6 million revenue in the same period last year.The firm said the lower revenue was mainly due to completion of major domestic construction projects in 2007 such as the Rawang-Ipoh electrified double track project and PLUS third lane widening project (Seremban-Ayer Keroh), while other new projects are in the start-up phase and have yet to generate revenue."We are happy with the results and will strive to achieve our targets despite a challenging business environment where significant cost escalation in material prices has become the norm," managing director Datuk Ridza Abdoh Salleh said in a statement.He said the company is implementing various measures to counter the impact of price volatility in construction materials and fuel, including the inclusion of negotiated price escalation clauses in the construction contracts.
"Moving forward, the group is positive that the Penang second bridge project will be implemented as planned," he said, adding that progress of works on the project has been significant and the company has incurred more than RM200 million to-date.
Friday, May 30, 2008
IJM defers plan to float unit on Mumbai bourse
IJM defers plan to float unit on Mumbai bourse
By Francis Fernandez Business Times
Published: 2008/05/30
IJM Corp Bhd, the country's third largest builder, has postponed plans to float its subsidiary on the Bombay Stock Exchange, research firm CLSA said in a report.The builder planned to raise as much as RM200 million by selling shares in IJM (India) Infrastructure Ltd, the largest foreign-owned company in the infrastructure and construction sector in India.The listing is important, as IJM wants to completely shed the foreign-owned firm tag in order to be in a position to bite a bigger chunk of India's planned US$1 trillion (RM3.23 trillion) investments in infrastructure spending up to 2017.CLSA notes that IJM's track record is so strong in India that its operating subsidiary is considered as a local company in bids for projects, while most Malaysian companies found the operating environment too hot to handle despite the massive opportunities available.
It initially targeted to list IJM (India) by the fourth quarter of last year, but now it looks like the initial public offer plan may have to be delayed by at least a year.The joint listing of its construction and property divisions has been delayed to 2009 due to a court case with the state government for one of its property projects, which is pending resolution, the CLSA report stated. Business Times understands that the case involves units within the state government of Andhra Pradesh over development land for a housing project in the state.IJM has been banking on its investments in India to sustain its construction business, with nearly a quarter of the IJM group order book value filled by jobs from there. Indian projects comprise 23 per cent of IJM's RM6.5 billion order book, and the builder also has a portfolio consisting of stakes in four toll roads and a power plant in the sub-continent.
By Francis Fernandez Business Times
Published: 2008/05/30
IJM Corp Bhd, the country's third largest builder, has postponed plans to float its subsidiary on the Bombay Stock Exchange, research firm CLSA said in a report.The builder planned to raise as much as RM200 million by selling shares in IJM (India) Infrastructure Ltd, the largest foreign-owned company in the infrastructure and construction sector in India.The listing is important, as IJM wants to completely shed the foreign-owned firm tag in order to be in a position to bite a bigger chunk of India's planned US$1 trillion (RM3.23 trillion) investments in infrastructure spending up to 2017.CLSA notes that IJM's track record is so strong in India that its operating subsidiary is considered as a local company in bids for projects, while most Malaysian companies found the operating environment too hot to handle despite the massive opportunities available.
It initially targeted to list IJM (India) by the fourth quarter of last year, but now it looks like the initial public offer plan may have to be delayed by at least a year.The joint listing of its construction and property divisions has been delayed to 2009 due to a court case with the state government for one of its property projects, which is pending resolution, the CLSA report stated. Business Times understands that the case involves units within the state government of Andhra Pradesh over development land for a housing project in the state.IJM has been banking on its investments in India to sustain its construction business, with nearly a quarter of the IJM group order book value filled by jobs from there. Indian projects comprise 23 per cent of IJM's RM6.5 billion order book, and the builder also has a portfolio consisting of stakes in four toll roads and a power plant in the sub-continent.
Tuesday, May 27, 2008
State to take over water treatment, supply firms
2008/05/27 NST
State to take over water treatment, supply firms
THE state government will take over all four companies involved in the treatment and distribution of water in Selangor.
Menteri Besar Tan Sri Abdul Khalid Ibrahim said the takeover would be carried out through its wholly-owned company, Kumpulan Darul Ehsan Bhd, with the move to be finalised by September.The companies involved are Puncak Niaga Sdn Bhd, Syarikat Bekalan Air Selangor (Syabas), Konsortium Abass Sdn Bhd and Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash).All are involved in the treatment of raw water, with Syabas also handling water distribution in the Klang Valley. Puncak Niaga's subsidiary, Syabas, has the concession to distribute water in Selangor and also owns 29 water treatment plants.
Konsortium Abass has the concession to operate and maintain the Sungai Semenyih Water Supply Scheme while Splash is the concessionaire of the Sungai Selangor Water Supply Scheme phase 1 and 3. With this move, Abdul Khalid said the state would have a free hand to review all concessionaire agreements, which he had described as lopsided. Abdul Khalid said KDEB would acquire all the shares of these companies, adding that the cabinet had given the nod for the deal in January.He said the Energy, Water and Communications Ministry had issued a letter to the state government on Feb 5 giving the approval.He said though it was the previous government that initiated the move, it was more for economic restructuring.The scheme to provide free water for the first 20 cubic metres was included in the reorganisation scheme.Abdul
Khalid said he would meet with ministry officials to find an amicable evaluation for the restructuring exercise. Asked how much the takeover will cost he said: "It will cost money to buy. But it is viable in returns to KDEB. It will not be to the extent that the risks and returns are not acceptable to the people."Abdul Khalid said KDEB had shares in some of these groups. In the takeover, it would offer cash or shares for acquisition of rights in the companies.He said it would also be done through purchase of assets and offers of long-term financial facilities at certain rates.He said Selangor would study the terms of the companies' agreements and their financial models. "We will ensure the benefits flow back to the people."Asked what would happen if the concessionaires refused to sell the companies, he said they would if the price was right."Even if they refuse, they will have to eventually as the water belongs to the state."
State to take over water treatment, supply firms
THE state government will take over all four companies involved in the treatment and distribution of water in Selangor.
Menteri Besar Tan Sri Abdul Khalid Ibrahim said the takeover would be carried out through its wholly-owned company, Kumpulan Darul Ehsan Bhd, with the move to be finalised by September.The companies involved are Puncak Niaga Sdn Bhd, Syarikat Bekalan Air Selangor (Syabas), Konsortium Abass Sdn Bhd and Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash).All are involved in the treatment of raw water, with Syabas also handling water distribution in the Klang Valley. Puncak Niaga's subsidiary, Syabas, has the concession to distribute water in Selangor and also owns 29 water treatment plants.
Konsortium Abass has the concession to operate and maintain the Sungai Semenyih Water Supply Scheme while Splash is the concessionaire of the Sungai Selangor Water Supply Scheme phase 1 and 3. With this move, Abdul Khalid said the state would have a free hand to review all concessionaire agreements, which he had described as lopsided. Abdul Khalid said KDEB would acquire all the shares of these companies, adding that the cabinet had given the nod for the deal in January.He said the Energy, Water and Communications Ministry had issued a letter to the state government on Feb 5 giving the approval.He said though it was the previous government that initiated the move, it was more for economic restructuring.The scheme to provide free water for the first 20 cubic metres was included in the reorganisation scheme.Abdul
Khalid said he would meet with ministry officials to find an amicable evaluation for the restructuring exercise. Asked how much the takeover will cost he said: "It will cost money to buy. But it is viable in returns to KDEB. It will not be to the extent that the risks and returns are not acceptable to the people."Abdul Khalid said KDEB had shares in some of these groups. In the takeover, it would offer cash or shares for acquisition of rights in the companies.He said it would also be done through purchase of assets and offers of long-term financial facilities at certain rates.He said Selangor would study the terms of the companies' agreements and their financial models. "We will ensure the benefits flow back to the people."Asked what would happen if the concessionaires refused to sell the companies, he said they would if the price was right."Even if they refuse, they will have to eventually as the water belongs to the state."
Monday, May 26, 2008
2nd Penang Bridge ready by 2011 - MOF2
2008/05/26
NST
'Bridge will be ready by 2011'
By Audrey Dermawannews@nst.com.my
BUTTERWORTH: The government will stick to its 2011 deadline for the completion of the Second Penang Bridge, Second Finance Minister Tan Sri Nor Mohamed Yakcop said.
He gave an assurance that the RM4.3 billion project, linking Batu Kawan in Seberang Perai Selatan and Batu Maung on the island, would be implemented as scheduled."Work is currently in progress. We will stick to the 2011 deadline," he said after presenting house keys to the 2004 tsunami victims in Kuala Muda here yesterday.
Some 400 people received the keys to their new homes.Nor Mohamed was responding to Chief Minister Lim Guan Eng, who said at the same event that the bridge project was important to attract foreign investments, following a RM1.2 billion pledge by Japanese-based Ibiden Co Ltd last week.
He said prospective investors had asked about the bridge project and wanted an assurance it would proceed as planned.Work on the 24km bridge, scheduled to be opened by January 2011, has been delayed by nine months.
Nor Mohamed, the Tasek Gelugor MP, said the federal government spent about RM33.68 million on the construction of the new homes and another RM9.4 million on the land.Syarikat Perumahan Negara Bhd (SPNB), a wholly owned subsidiary of the Finance Ministry Inc, built the homes. Each home cost RM45,000 but beneficiaries only paid a third of the amount. They also received RM1,000 each as moving expenses.Present were Penaga assemblyman Datuk Azhar Ibrahim and SPNB chairman Datuk Azian Osman.
NST
'Bridge will be ready by 2011'
By Audrey Dermawannews@nst.com.my
BUTTERWORTH: The government will stick to its 2011 deadline for the completion of the Second Penang Bridge, Second Finance Minister Tan Sri Nor Mohamed Yakcop said.
He gave an assurance that the RM4.3 billion project, linking Batu Kawan in Seberang Perai Selatan and Batu Maung on the island, would be implemented as scheduled."Work is currently in progress. We will stick to the 2011 deadline," he said after presenting house keys to the 2004 tsunami victims in Kuala Muda here yesterday.
Some 400 people received the keys to their new homes.Nor Mohamed was responding to Chief Minister Lim Guan Eng, who said at the same event that the bridge project was important to attract foreign investments, following a RM1.2 billion pledge by Japanese-based Ibiden Co Ltd last week.
He said prospective investors had asked about the bridge project and wanted an assurance it would proceed as planned.Work on the 24km bridge, scheduled to be opened by January 2011, has been delayed by nine months.
Nor Mohamed, the Tasek Gelugor MP, said the federal government spent about RM33.68 million on the construction of the new homes and another RM9.4 million on the land.Syarikat Perumahan Negara Bhd (SPNB), a wholly owned subsidiary of the Finance Ministry Inc, built the homes. Each home cost RM45,000 but beneficiaries only paid a third of the amount. They also received RM1,000 each as moving expenses.Present were Penaga assemblyman Datuk Azhar Ibrahim and SPNB chairman Datuk Azian Osman.
Sunday, May 25, 2008
Mild earthquake at Bukit Tinggi
2008/05/25 NST
Mild earthquake at Bukit Tinggi
BERNAMA
KUALA LUMPUR, Sun.:
An earthquake measuring 3.1 on the Richter scale hit an area 17km west of Bukit Tinggi in Pahang today, the Meteorological Department said.
It said the mild quake struck at 3.3 degrees North latitude and 101.7 degrees East longitude at 9.36am.
Mild earthquake at Bukit Tinggi
BERNAMA
KUALA LUMPUR, Sun.:
An earthquake measuring 3.1 on the Richter scale hit an area 17km west of Bukit Tinggi in Pahang today, the Meteorological Department said.
It said the mild quake struck at 3.3 degrees North latitude and 101.7 degrees East longitude at 9.36am.
Saturday, May 24, 2008
Fajar Baru's double tracking sub-package
Fajarbaru unit, partner win deal
Business Times
Published: 2008/05/24
FAJARBARU Builder Group Bhd said its unit and a partner have won a RM316 million contract for civil and structural works of the Seremban-Gemas double tracking rail project. Fajarbaru Builder Sdn Bhd will hold 65 per cent of the venture, with LTP Development Sdn Bhd holding the rest. The joint venture will work under Package 2 or from kilometer 502.6 to 535.5. The job is awarded by India's Ircon International Ltd.
Business Times
Published: 2008/05/24
FAJARBARU Builder Group Bhd said its unit and a partner have won a RM316 million contract for civil and structural works of the Seremban-Gemas double tracking rail project. Fajarbaru Builder Sdn Bhd will hold 65 per cent of the venture, with LTP Development Sdn Bhd holding the rest. The joint venture will work under Package 2 or from kilometer 502.6 to 535.5. The job is awarded by India's Ircon International Ltd.
IJM Construction, Norwest bag job
IJM Construction, Norwest bag job
Business Times
Published: 2008/05/24
IJM Corp Bhd's unit, IJM Construction Sdn Bhd and its partner Norwest Holdings Sdn Bhd won a RM490.1 million contract under the Seremban-Gemas double tracking project. The job, awarded by main contractor Ircon International Ltd of India, is for the construction, commissioning and maintenance of infrastructure work. IJM, which holds 70 per cent in the joint venture while the rest is held by Norwest, will do works from KM461.23 to KM500.40. Construction period is 21 months.
Business Times
Published: 2008/05/24
IJM Corp Bhd's unit, IJM Construction Sdn Bhd and its partner Norwest Holdings Sdn Bhd won a RM490.1 million contract under the Seremban-Gemas double tracking project. The job, awarded by main contractor Ircon International Ltd of India, is for the construction, commissioning and maintenance of infrastructure work. IJM, which holds 70 per cent in the joint venture while the rest is held by Norwest, will do works from KM461.23 to KM500.40. Construction period is 21 months.
Tuesday, May 20, 2008
Government may relax cement prices too
Tuesday May 20, 2008 The STAR
Government may relax cement prices too
By DANNY YAP and YVONNE TAN
PETALING JAYA: The cement industry may see some major price adjustments following the liberalisation of the steel industry on May 12. Most players in the cement industry have voiced their concerns via the Cement & Concrete Association of Malaysia (CCAM), saying a price adjustment was necessary to combat the rising cost of raw materials and fuel.
CCAM had proposed an automatic price mechanism (APM) for the cement industry. The Government is reviewing that. Under the proposed mechanism, cement manufacturers would have greater flexibility to pass on cost increases to customers as the mechanism takes into account production input costs.
Currently, the average price of cement in Peninsular Malaysia is about RM12 per 50kg bag, or RM217 to RM231 a tonne, depending on delivery destination. Cement prices have remained unchanged from 1995 to mid-December 2006 at RM198 per tonne. On Dec 22, 2006 the Government revised upward the price of cement by 3% to 10% due to strong lobbying by industry players. But cement manufacturers say the cost of raw materials and fuel has since risen tremendously, especially this year.
There are about four or five major cement producers locally, commanding 10% to 41% market share each. Most of them are pushing for the APM to be reviewed sooner rather than later. Lafarge Malayan Cement Bhd chief financial officer Yeoh Khoon Cheng said there was an urgent need to address the APM issue. He said the ceiling price approved by the Government in 2006 had only partially offset the 40% increase in costs incurred by the industry since 1995.
“It’s not just about protecting our margins but the price adjustment is necessary so that cement players can continue to support the growth of the local construction industry,” he said. Lafarge would face a tough time this year if the price adjustment was delayed or shelved, he said, adding: “If the APM is not addressed, our margins and bottom line would be significantly affected.”
Other cement players, who declined to be named, echoed the sentiment.
”The cement industry is having a tough time controlling costs, especially this year. We, together with others in the industry, will continue to push for a revision of the current ceiling price and for the proposed implementation of the APM,” a manufacturer said. The 2006 price increase was hardly enough to offset the increase in the costs of raw materials such as fuel and electricity, he added.
In a report dated May 15, Aseambankers Research said it remained unsure if a ceiling price hike would precede the proposed APM implementation. Since the Government announced its move to liberalise the local steel industry on May 9, cement-related stocks have started to appreciate on expectation the sector would be the next to be liberalised. Shares in Gopeng Bhd and Lafarge have gained 8% and 7% respectively since the announcement, while Tasek Corp has appreciated 3%.
Government may relax cement prices too
By DANNY YAP and YVONNE TAN
PETALING JAYA: The cement industry may see some major price adjustments following the liberalisation of the steel industry on May 12. Most players in the cement industry have voiced their concerns via the Cement & Concrete Association of Malaysia (CCAM), saying a price adjustment was necessary to combat the rising cost of raw materials and fuel.
CCAM had proposed an automatic price mechanism (APM) for the cement industry. The Government is reviewing that. Under the proposed mechanism, cement manufacturers would have greater flexibility to pass on cost increases to customers as the mechanism takes into account production input costs.
Currently, the average price of cement in Peninsular Malaysia is about RM12 per 50kg bag, or RM217 to RM231 a tonne, depending on delivery destination. Cement prices have remained unchanged from 1995 to mid-December 2006 at RM198 per tonne. On Dec 22, 2006 the Government revised upward the price of cement by 3% to 10% due to strong lobbying by industry players. But cement manufacturers say the cost of raw materials and fuel has since risen tremendously, especially this year.
There are about four or five major cement producers locally, commanding 10% to 41% market share each. Most of them are pushing for the APM to be reviewed sooner rather than later. Lafarge Malayan Cement Bhd chief financial officer Yeoh Khoon Cheng said there was an urgent need to address the APM issue. He said the ceiling price approved by the Government in 2006 had only partially offset the 40% increase in costs incurred by the industry since 1995.
“It’s not just about protecting our margins but the price adjustment is necessary so that cement players can continue to support the growth of the local construction industry,” he said. Lafarge would face a tough time this year if the price adjustment was delayed or shelved, he said, adding: “If the APM is not addressed, our margins and bottom line would be significantly affected.”
Other cement players, who declined to be named, echoed the sentiment.
”The cement industry is having a tough time controlling costs, especially this year. We, together with others in the industry, will continue to push for a revision of the current ceiling price and for the proposed implementation of the APM,” a manufacturer said. The 2006 price increase was hardly enough to offset the increase in the costs of raw materials such as fuel and electricity, he added.
In a report dated May 15, Aseambankers Research said it remained unsure if a ceiling price hike would precede the proposed APM implementation. Since the Government announced its move to liberalise the local steel industry on May 9, cement-related stocks have started to appreciate on expectation the sector would be the next to be liberalised. Shares in Gopeng Bhd and Lafarge have gained 8% and 7% respectively since the announcement, while Tasek Corp has appreciated 3%.
Saturday, May 17, 2008
RM3.45b rail deal
RM3.45b rail deal
By Sharen Kaur
Published: 2008/05/17 Business Times
Indian Railway is expected to call for tenders soon to pick sub-contractors for the double-tracking project stretching from Seremban to Gemas.
THE award of the RM3.45 billion 100km electrified double-tracking railway from Seremban to Gemas in the southern part of Peninsular Malaysia to Indian Railway Construction Co (Ircon) has put to rest a major controversy that had threatened to sour relations between Malaysia and India.In 2001, the government had awarded a US$3.5 billion (RM11.4 billion) double-tracking project to Ircon, India's national railway company, but withdrew the contract two years later without explanation.Last year, Malaysia invited Ircon to re-submit its bid, leading to the award of the Seremban-Gemas portion in December."I'm happy that relations between India and Malaysia are growing in a comprehensive manner and trends are most positive," India's railway minister Lalu Prasad said at the signing of the contract between the government and Ircon in Putrajaya yesterday.
Prasad said that bilateral trade between Malaysia and India grew 24 per cent to US$8.1 billion (RM26.3 billion) last year, adding that Malaysian firms had been awarded US$6 billion (RM19.5 billion) worth of construction projects in India."There will be more opportunities for Malaysian firms in India, especially in infrastructure construction and railway development," he said.Meanwhile, an Indian official, who declined to be named, suggested that India's idea of building a monorail in Patna, Bihar, which may exceed RM1 billion, could be undertaken jointly with a Malaysian firm, citing Scomi Group Bhd."The idea has been presented to the Malaysian government in a meeting held on Thursday. Ircon is now doing a study on the local monorail model to see if it's feasible in complementing India's other modes of transportation," the official told Business Times.Malaysia's design-and-build double-tracking contract, which will be fully funded by the government, will be implemented in four years.It will cover 34 river bridges, 27 road bridges, 107 culverts, two viaducts of 1.25km and 0.6km lengths and an 8km tunnel.Ircon will build the first stretch from Seremban to Sg Gadut in three years, and then from Sg Gadut to Gemas, finishing the lines by July 2010.The project will benefit Keretapi Tanah Melayu Bhd as it will be able to extend its commuter services to Gemas instead of making its last stop in Seremban.Ministry of Transport finance secretary Datuk Tan Kiong Han said that payments to Ircon will be made progressively, adding that the government had issued two payments since the company started works on January 15.It is learnt that IJM Corp Bhd is the main player for the railway job and that Ircon will call for tenders soon to appoint sub-contractors.
By Sharen Kaur
Published: 2008/05/17 Business Times
Indian Railway is expected to call for tenders soon to pick sub-contractors for the double-tracking project stretching from Seremban to Gemas.
THE award of the RM3.45 billion 100km electrified double-tracking railway from Seremban to Gemas in the southern part of Peninsular Malaysia to Indian Railway Construction Co (Ircon) has put to rest a major controversy that had threatened to sour relations between Malaysia and India.In 2001, the government had awarded a US$3.5 billion (RM11.4 billion) double-tracking project to Ircon, India's national railway company, but withdrew the contract two years later without explanation.Last year, Malaysia invited Ircon to re-submit its bid, leading to the award of the Seremban-Gemas portion in December."I'm happy that relations between India and Malaysia are growing in a comprehensive manner and trends are most positive," India's railway minister Lalu Prasad said at the signing of the contract between the government and Ircon in Putrajaya yesterday.
Prasad said that bilateral trade between Malaysia and India grew 24 per cent to US$8.1 billion (RM26.3 billion) last year, adding that Malaysian firms had been awarded US$6 billion (RM19.5 billion) worth of construction projects in India."There will be more opportunities for Malaysian firms in India, especially in infrastructure construction and railway development," he said.Meanwhile, an Indian official, who declined to be named, suggested that India's idea of building a monorail in Patna, Bihar, which may exceed RM1 billion, could be undertaken jointly with a Malaysian firm, citing Scomi Group Bhd."The idea has been presented to the Malaysian government in a meeting held on Thursday. Ircon is now doing a study on the local monorail model to see if it's feasible in complementing India's other modes of transportation," the official told Business Times.Malaysia's design-and-build double-tracking contract, which will be fully funded by the government, will be implemented in four years.It will cover 34 river bridges, 27 road bridges, 107 culverts, two viaducts of 1.25km and 0.6km lengths and an 8km tunnel.Ircon will build the first stretch from Seremban to Sg Gadut in three years, and then from Sg Gadut to Gemas, finishing the lines by July 2010.The project will benefit Keretapi Tanah Melayu Bhd as it will be able to extend its commuter services to Gemas instead of making its last stop in Seremban.Ministry of Transport finance secretary Datuk Tan Kiong Han said that payments to Ircon will be made progressively, adding that the government had issued two payments since the company started works on January 15.It is learnt that IJM Corp Bhd is the main player for the railway job and that Ircon will call for tenders soon to appoint sub-contractors.
MRCB wants to fully take over TTSB
Saturday May 17, 2008 The Star
MRCB wants to fully take over TTSB
KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB) has proposed to acquire Permodalan Nasional Bhd’s (PNB) 45% equity interest in Transmission Technology Sdn Bhd (TTSB) for RM52.7mil, thus raising its interest to 100%.
TTSB is the 55:45 joint venture company between MRCB and PNB set up to carry out 500kV and 275 kV transmission line projects for Tenaga Nasional Bhd. – Bernama
MRCB wants to fully take over TTSB
KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB) has proposed to acquire Permodalan Nasional Bhd’s (PNB) 45% equity interest in Transmission Technology Sdn Bhd (TTSB) for RM52.7mil, thus raising its interest to 100%.
TTSB is the 55:45 joint venture company between MRCB and PNB set up to carry out 500kV and 275 kV transmission line projects for Tenaga Nasional Bhd. – Bernama
Lafarge wants cement price review
Saturday May 17, 2008 The Star
Lafarge wants cement price review
SUBANG JAYA: Lafarge Malayan Cement Bhd has asked the Government to consider the Cement & Concrete Association of Malaysia’s (CCAM) request to review the price ceiling for cement. It has also asked for the implementation of the proposed automatic price mechanism (APM) to battle rising cost of raw materials.
Newly appointed president and chief executive officer Bi Yong Chungunco said the company fully supported CCAM’s proposal as the cement industry was facing a tough time containing costs in producing cement for the local construction industry.
“The 9% increase in the ceiling price approved by the government in 2006 had only partly offset the 40% increase in costs suffered by the industry over the past few years,” she said after the company AGM yesterday.
Chungunco attributed Lafarge’s performance in 2007 and the first quarter of this year to improved cement demand growth, especially in Peninsular Malaysia, and cost control measures.
For the year ended Dec 31, 2007, its net profit jumped 64% to a record RM284.2mil compared with RM173.3mil previously.In the first quarter ended March 31, Lafarge registered RM66mil in pre-tax profit, against RM59mil a year ago.
Chief financial officer Yeoh Khoon Cheng said rising costs continued to be an industry-wide challenge as cement makers’ profit margins were eroded due to escalating fuel price.
“Coal, transportation, cement paper bags and other materials have all gone up in price,” he said, adding that if adjustments to rising raw material costs were not made, the local cement industry would be significantly affected.
Lafarge commands slightly over 40% share of the local cement market.
About 70% of its output is sold domestically, and the balance 30% exported to Indonesia, Bangladesh and Sri Lanka.
On future plans, Yeoh said Lafarge was looking to invest RM100mil in a grinding mill, which is expected to be operational by 2010.
Lafarge wants cement price review
SUBANG JAYA: Lafarge Malayan Cement Bhd has asked the Government to consider the Cement & Concrete Association of Malaysia’s (CCAM) request to review the price ceiling for cement. It has also asked for the implementation of the proposed automatic price mechanism (APM) to battle rising cost of raw materials.
Newly appointed president and chief executive officer Bi Yong Chungunco said the company fully supported CCAM’s proposal as the cement industry was facing a tough time containing costs in producing cement for the local construction industry.
“The 9% increase in the ceiling price approved by the government in 2006 had only partly offset the 40% increase in costs suffered by the industry over the past few years,” she said after the company AGM yesterday.
Chungunco attributed Lafarge’s performance in 2007 and the first quarter of this year to improved cement demand growth, especially in Peninsular Malaysia, and cost control measures.
For the year ended Dec 31, 2007, its net profit jumped 64% to a record RM284.2mil compared with RM173.3mil previously.In the first quarter ended March 31, Lafarge registered RM66mil in pre-tax profit, against RM59mil a year ago.
Chief financial officer Yeoh Khoon Cheng said rising costs continued to be an industry-wide challenge as cement makers’ profit margins were eroded due to escalating fuel price.
“Coal, transportation, cement paper bags and other materials have all gone up in price,” he said, adding that if adjustments to rising raw material costs were not made, the local cement industry would be significantly affected.
Lafarge commands slightly over 40% share of the local cement market.
About 70% of its output is sold domestically, and the balance 30% exported to Indonesia, Bangladesh and Sri Lanka.
On future plans, Yeoh said Lafarge was looking to invest RM100mil in a grinding mill, which is expected to be operational by 2010.
Wednesday, May 14, 2008
Low-cost terminal not just for AirAsia: Minister
Low-cost terminal not just for AirAsia: Minister
BTimes
Published: 2008/05/13
THE low-cost carrier terminal (LCCT) at the Kuala Lumpur International Airport in Sepang built in 2005 is for the use of all low-cost airlines and not just for AirAsia, the Dewan Rakyat was told yesterday.Transport Minister Datuk Ong Tee Kiat said the government decided to build the LCCT after considering several matters, including the need for such airlines to have a short turnaround time of 20 minutes which is difficult to realise at KLIA’s main terminal.Besides, the operations of these airlines do not require many facilities that are needed by full-service airlines, such as aerobridges and airline lounges, he added. The LCCT construction also helps overcome passenger congestion at peak periods at arrival counters, departure halls and parking lots, he said when replying to Wee Choo Keong (PKR-Wangsa Maju) during Question Time.
"At present, low-cost airlines such as AirAsia X, AirAsia Thailand, AirAsia Indonesia, Cebu Pacific and Tiger Airways also use the LCCT at KLIA,” he pointed out.Ong also disclosed that due to the urgent need for the LCCT, its construction was awarded on a direct negotiation basis to Fajarbaru Builder Group Bhd which had the necessary experience.
"There is not enough space to expand the present LCCT to cater to more than 15 million passengers a year, so the government has short-term plans to build a new LCCT at a new site at KLIA,” he added.The existing LCCT, according to him, will be converted at a reasonable cost into a cargo complex. — Bernama
BTimes
Published: 2008/05/13
THE low-cost carrier terminal (LCCT) at the Kuala Lumpur International Airport in Sepang built in 2005 is for the use of all low-cost airlines and not just for AirAsia, the Dewan Rakyat was told yesterday.Transport Minister Datuk Ong Tee Kiat said the government decided to build the LCCT after considering several matters, including the need for such airlines to have a short turnaround time of 20 minutes which is difficult to realise at KLIA’s main terminal.Besides, the operations of these airlines do not require many facilities that are needed by full-service airlines, such as aerobridges and airline lounges, he added. The LCCT construction also helps overcome passenger congestion at peak periods at arrival counters, departure halls and parking lots, he said when replying to Wee Choo Keong (PKR-Wangsa Maju) during Question Time.
"At present, low-cost airlines such as AirAsia X, AirAsia Thailand, AirAsia Indonesia, Cebu Pacific and Tiger Airways also use the LCCT at KLIA,” he pointed out.Ong also disclosed that due to the urgent need for the LCCT, its construction was awarded on a direct negotiation basis to Fajarbaru Builder Group Bhd which had the necessary experience.
"There is not enough space to expand the present LCCT to cater to more than 15 million passengers a year, so the government has short-term plans to build a new LCCT at a new site at KLIA,” he added.The existing LCCT, according to him, will be converted at a reasonable cost into a cargo complex. — Bernama
New price clause for design-build projects
New price clause for design-build projects
By Hamidah Atannews@nst.com.my
2008/05/14
PUTRAJAYA: A new contract clause for price variations in steel will be introduced for all government design-and-build projects.
The Finance Ministry said this would minimise the risk in price variations shouldered by contractors when the ceiling price of steel is abolished.The current design-and-build contract does not have a clause that takes into consideration changes in the price of steel, the ministry said in a statement released yesterday.Prime Minister Datuk Seri Abdullah Ahmad Badawi said on Monday that the cabinet had decided to scrap the ceiling price of steel effective May 12, in view of numerous complaints on the high price of steel, particularly billets and steel bars and difficulties in getting supplies at the ceiling price.He said steel was sold at a much higher price on the world market and this would affect the construction industry and the implementation of development projects.
Currently, the ministry said, government conventional contracts for civil work and buildings followed a contract clause on price variation.
(a) "For civil work contracts, the calculation formula for price variation currently used is based on the price of transaction and this method will continue.
(b)"For building work contracts, the calculation method is based on the cost index of 15 construction materials, including steel."This formula will be reviewed where changes in the price of steel will be based on the market price and calculated separately from the index of the construction items," he said.It also said
(c) the ministry would be issuing a circular on the implementation of the calculation formula for price variations in the shortest possible time. It said contract applications by contractors should be forwarded to the relevant implementing agencies as was the practice now.The ministry added the calculation methods will also be made effective on May 12.
Abdullah had said that the government had agreed on three liberalisation measures to assist contractors.The cabinet, he said, agreed to
(1)scrap the ceiling price to enable contractors for government projects to apply for changes in the contract price based on the market price for steel. The government also agreed to (2) exempt steel importers from applying for import licences. This will exempt them from paying import duties. Abdullah also said local steel producers or entrepre-neurs
(3) could now export their steel-based products.The measures are in line with the government's aim to make sure national development will take place as planned.They will also make the market for steel-based products more efficient and transparent.
By Hamidah Atannews@nst.com.my
2008/05/14
PUTRAJAYA: A new contract clause for price variations in steel will be introduced for all government design-and-build projects.
The Finance Ministry said this would minimise the risk in price variations shouldered by contractors when the ceiling price of steel is abolished.The current design-and-build contract does not have a clause that takes into consideration changes in the price of steel, the ministry said in a statement released yesterday.Prime Minister Datuk Seri Abdullah Ahmad Badawi said on Monday that the cabinet had decided to scrap the ceiling price of steel effective May 12, in view of numerous complaints on the high price of steel, particularly billets and steel bars and difficulties in getting supplies at the ceiling price.He said steel was sold at a much higher price on the world market and this would affect the construction industry and the implementation of development projects.
Currently, the ministry said, government conventional contracts for civil work and buildings followed a contract clause on price variation.
(a) "For civil work contracts, the calculation formula for price variation currently used is based on the price of transaction and this method will continue.
(b)"For building work contracts, the calculation method is based on the cost index of 15 construction materials, including steel."This formula will be reviewed where changes in the price of steel will be based on the market price and calculated separately from the index of the construction items," he said.It also said
(c) the ministry would be issuing a circular on the implementation of the calculation formula for price variations in the shortest possible time. It said contract applications by contractors should be forwarded to the relevant implementing agencies as was the practice now.The ministry added the calculation methods will also be made effective on May 12.
Abdullah had said that the government had agreed on three liberalisation measures to assist contractors.The cabinet, he said, agreed to
(1)scrap the ceiling price to enable contractors for government projects to apply for changes in the contract price based on the market price for steel. The government also agreed to (2) exempt steel importers from applying for import licences. This will exempt them from paying import duties. Abdullah also said local steel producers or entrepre-neurs
(3) could now export their steel-based products.The measures are in line with the government's aim to make sure national development will take place as planned.They will also make the market for steel-based products more efficient and transparent.
Monday, May 12, 2008
Higher costs affecting construction sector
Monday May 12, 2008 The STAR
Higher costs affecting construction sector
StarBiz talks to Master Builders Association Malaysia president Patrick Wong about the challenges and outlook for the construction industry.
How do you see the performance of the construction industry this year?
There was a marked improvement in the construction sector, which grew 4.6% last year versus -0.5% in 2006, - 1.6% in 2005 and -1.9% in 2004. However, the continuous increase in fuel and construction material prices is proving to be an ordeal and it is hoped the construction industry will be able to tackle these challenges.
Many property developers are also delaying new projects due to the rising costs of construction materials. This is because property developers are unable to fix prices for their properties due to the current “uncontrollable” sharp increase in building material prices.
In addition, the Prime Minister recently said infrastructure projects under the 9MP might be delayed due to escalating costs.
What are the growth areas that can still support the industry and why?
All the country's development corridors are important growth areas that can support the industry. The Government should encourage more foreign direct investments to spur economic growth.
What are the challenges that hamper the growth in the construction industry?
One of the main challenges is the rise in building material costs especially essential building materials such as steel bars and cement. Prices of many construction related materials, machinery and transportation costs have also increased substantially and builders are facing critical problems. The uncertainty in supply of steel bars is another challenge.
Manpower and skills shortage – senior construction personnel, supervisory and skilled staff – are also hampering growth of the construction industry.
Another factor is the difficulty in ensuring feasible terms for modernisation, mechanisation and systemisation of the construction industry. We urge the Government to reconsider relaxing import duty imposed on system formwork and heavy construction equipment used in infrastructure and housing developments. At present, the duty is as high as 30% and sales tax at 10%, which adds to the higher cost of infrastructure construction.
How can we overcome these challenges?
We hope contractors can request for contract prices to be adjusted according to the market price of steel for all contracts from Government agencies and that the private sector will follow suit.
We have to push for and implement the Fair Trade Practices Act and Code of Ethics for millers and manufacturers to ensure local needs for steel bars are met first. We also need to attract more local professionals/supervisors to join and stay in the industry.
The education system should be reviewed to promote interest in the construction industry and to provide more construction-related subjects. More technical and industrial arts subjects should be offered.
MBAM hopes that the Government can further provide a financial assistance scheme to support the industry in innovation and technology to improve the quality and safety at the job site.
What is the outlook for construction companies in these challenging times?
Although the outlook is challenging in terms of building materials' pricing, supply of equipment, human resources and the global economic climate, we believe contractors and builders can rise to the challenges ahead. The key to success lies in having a positive mindset and enhancing both efficiency and productivity in the whole construction value chain.
Higher costs affecting construction sector
StarBiz talks to Master Builders Association Malaysia president Patrick Wong about the challenges and outlook for the construction industry.
How do you see the performance of the construction industry this year?
There was a marked improvement in the construction sector, which grew 4.6% last year versus -0.5% in 2006, - 1.6% in 2005 and -1.9% in 2004. However, the continuous increase in fuel and construction material prices is proving to be an ordeal and it is hoped the construction industry will be able to tackle these challenges.
Many property developers are also delaying new projects due to the rising costs of construction materials. This is because property developers are unable to fix prices for their properties due to the current “uncontrollable” sharp increase in building material prices.
In addition, the Prime Minister recently said infrastructure projects under the 9MP might be delayed due to escalating costs.
What are the growth areas that can still support the industry and why?
All the country's development corridors are important growth areas that can support the industry. The Government should encourage more foreign direct investments to spur economic growth.
What are the challenges that hamper the growth in the construction industry?
One of the main challenges is the rise in building material costs especially essential building materials such as steel bars and cement. Prices of many construction related materials, machinery and transportation costs have also increased substantially and builders are facing critical problems. The uncertainty in supply of steel bars is another challenge.
Manpower and skills shortage – senior construction personnel, supervisory and skilled staff – are also hampering growth of the construction industry.
Another factor is the difficulty in ensuring feasible terms for modernisation, mechanisation and systemisation of the construction industry. We urge the Government to reconsider relaxing import duty imposed on system formwork and heavy construction equipment used in infrastructure and housing developments. At present, the duty is as high as 30% and sales tax at 10%, which adds to the higher cost of infrastructure construction.
How can we overcome these challenges?
We hope contractors can request for contract prices to be adjusted according to the market price of steel for all contracts from Government agencies and that the private sector will follow suit.
We have to push for and implement the Fair Trade Practices Act and Code of Ethics for millers and manufacturers to ensure local needs for steel bars are met first. We also need to attract more local professionals/supervisors to join and stay in the industry.
The education system should be reviewed to promote interest in the construction industry and to provide more construction-related subjects. More technical and industrial arts subjects should be offered.
MBAM hopes that the Government can further provide a financial assistance scheme to support the industry in innovation and technology to improve the quality and safety at the job site.
What is the outlook for construction companies in these challenging times?
Although the outlook is challenging in terms of building materials' pricing, supply of equipment, human resources and the global economic climate, we believe contractors and builders can rise to the challenges ahead. The key to success lies in having a positive mindset and enhancing both efficiency and productivity in the whole construction value chain.
EPIC expansion to propel growth
Monday May 12, 2008 The STAR
EPIC expansion to propel growth
By YEOW POOI LING
EASTERN Pacific Industrial Corp Bhd (EPIC) is generating a consistent earnings stream, and expansion plans are anticipated to propel growth further.
It is currently trading at an undemanding valuation with price-to-earnings of 9.1 times and dividend yield of 3.9% based on consensus estimates for fiscal year ending Dec 31, 2008 (FY08) and Friday’s closing price of RM2.01. The share price is trading at a 39.8% discount from its 52-week high of RM3.32.
Its fundamentals are intact, if not better, given the high crude oil prices, which are currently trading above US$100 a barrel.
OSK Investment Bhd, in a report, said it was expecting a 20% growth in bottom line for FY08.
Growth will be partly driven by anticipated higher utilisation rate at its liquid chemical berth (LCB).
The company also plans to carry out upgrading works to handle higher deadweight tonnage vessels and construct more warehouses this year.
Its Kemaman Supply Base (KSB), a major supply base for oil and gas operations in the east coast, would continue to generate recurring cashflows since most of the production sharing contracts were long term, OSK said.
Besides its current 70%-owned fabricator, Mushtari Engineering & Trading Sdn Bhd, EPIC was also eyeing to develop a fabrication yard on about 24.3ha, OSK noted. “To our knowledge, all fabrication yards in Malaysia are fully utilised to fabricate platforms and modules for shallow and deepwater oilfield developments. It should benefit EPIC, with another 65 new platforms to be constructed over the next five years,” it said. The new yard, could accommodate about 10,000 tonnes to 15,000 of capacity, possibly placing EPIC as the sixth largest fabricator in Malaysia in terms of yard size.The two-phase development, expected to cost RM150mil, will give EPIC a good chance of securing a Petronas fabrication licence when operations commence.
Due to its recurring income, the company is sitting on a net cash of RM74mil as at end December 2007, which is a healthy financial position compared to some oil and gas companies that are highly geared.
Perhaps the rosy future of EPIC is best known by Ahmad Zaki Resources Bhd (AZRB), which bought a 20.5% stake in EPIC at RM2.40 in July last year. Since then, AZRB has been accumulating EPIC’s shares gradually from the open market, with current shareholding standing at 20.99%.
EPIC expansion to propel growth
By YEOW POOI LING
EASTERN Pacific Industrial Corp Bhd (EPIC) is generating a consistent earnings stream, and expansion plans are anticipated to propel growth further.
It is currently trading at an undemanding valuation with price-to-earnings of 9.1 times and dividend yield of 3.9% based on consensus estimates for fiscal year ending Dec 31, 2008 (FY08) and Friday’s closing price of RM2.01. The share price is trading at a 39.8% discount from its 52-week high of RM3.32.
Its fundamentals are intact, if not better, given the high crude oil prices, which are currently trading above US$100 a barrel.
OSK Investment Bhd, in a report, said it was expecting a 20% growth in bottom line for FY08.
Growth will be partly driven by anticipated higher utilisation rate at its liquid chemical berth (LCB).
The company also plans to carry out upgrading works to handle higher deadweight tonnage vessels and construct more warehouses this year.
Its Kemaman Supply Base (KSB), a major supply base for oil and gas operations in the east coast, would continue to generate recurring cashflows since most of the production sharing contracts were long term, OSK said.
Besides its current 70%-owned fabricator, Mushtari Engineering & Trading Sdn Bhd, EPIC was also eyeing to develop a fabrication yard on about 24.3ha, OSK noted. “To our knowledge, all fabrication yards in Malaysia are fully utilised to fabricate platforms and modules for shallow and deepwater oilfield developments. It should benefit EPIC, with another 65 new platforms to be constructed over the next five years,” it said. The new yard, could accommodate about 10,000 tonnes to 15,000 of capacity, possibly placing EPIC as the sixth largest fabricator in Malaysia in terms of yard size.The two-phase development, expected to cost RM150mil, will give EPIC a good chance of securing a Petronas fabrication licence when operations commence.
Due to its recurring income, the company is sitting on a net cash of RM74mil as at end December 2007, which is a healthy financial position compared to some oil and gas companies that are highly geared.
Perhaps the rosy future of EPIC is best known by Ahmad Zaki Resources Bhd (AZRB), which bought a 20.5% stake in EPIC at RM2.40 in July last year. Since then, AZRB has been accumulating EPIC’s shares gradually from the open market, with current shareholding standing at 20.99%.
Saturday, May 10, 2008
Government liberalises steel industry
Saturday May 10, 2008 THE STAR
Government liberalises steel industry
By YEOW POOI LING
PETALING JAYA: The long-awaited liberalisation of the domestic steel industry has finally become a reality.
In a statement yesterday, Prime Minister Datuk Seri Abdullah Badawi said the Government had decided to remove the domestic ceiling price for steel bars and billets and allow importers to be exempted from import licensing and paying import duty. Additionally, local steel makers will be able to export their steel bars and billets. The abolishment will take effect on Monday.
“The liberalisation is in line with the Government's intention to provide smooth development as well as ensure the steel industry continues to operate more efficiently,” Abdullah said.
Industry players contacted by StarBiz welcomed the news. Kinsteel Bhd managing director Tan Sri Pheng Yin Huah said that it was fair to sell at market prices since raw materials were imported and priced at international rates. Also, it would now be “a fair game” for contractors bidding for projects, as price volatility in the past had hindered some of them from tendering competitively. Pheng expected little impact on Kinsteel as its products were already reasonably priced.
Ann Joo Resources Bhd executive director Datuk Lim Hong Thye said domestic steel prices would now better reflect the global trend. “Steel millers will eventually have to face competition and, in this sense, Ann Joo is ready for it,” he said. “If international prices were to continue surging, which we expect for the next two quarters, it would benefit us.”
The news would also bode well for local contractors, especially those involved in government projects, as they would be able to re-negotiate the pricing to consider the impact of steel prices. “We're glad that the Government recognised the issue and the move will help spur domestic demand further,” Lim added.
Master Builders Association Malaysia president Patrick Wong said the supply of steel bars and billets was anticipated to improve, hence addressing the plight of the construction sector.
“The contract price adjustments will alleviate costs and provide better margins for contractors,” he said.
Meanwhile, OSK Investment Bank analyst Ng Sem Guan said steel millers would have to be more competitive in pricing, given that buyers could now import the materials. “It will also address the issue for stockists who complained of insufficient supply,” he said. Domestic steel makers, meanwhile, would be able to reap the export market as global demand was anticipated to remain firm while supply could be tight following the stricter ruling by China to restrict exports of steel products, Ng said. “New capacity is unlikely to come in the next two to three years,” he added.
An analyst with a bank-backed brokerage said the liberalisation would remove the pricing uncertainty faced by smaller contractors. “There is less ambiguity now in how prices are fixed. Contractors can be more confident in bidding for projects,” he said.
Government liberalises steel industry
By YEOW POOI LING
PETALING JAYA: The long-awaited liberalisation of the domestic steel industry has finally become a reality.
In a statement yesterday, Prime Minister Datuk Seri Abdullah Badawi said the Government had decided to remove the domestic ceiling price for steel bars and billets and allow importers to be exempted from import licensing and paying import duty. Additionally, local steel makers will be able to export their steel bars and billets. The abolishment will take effect on Monday.
“The liberalisation is in line with the Government's intention to provide smooth development as well as ensure the steel industry continues to operate more efficiently,” Abdullah said.
Industry players contacted by StarBiz welcomed the news. Kinsteel Bhd managing director Tan Sri Pheng Yin Huah said that it was fair to sell at market prices since raw materials were imported and priced at international rates. Also, it would now be “a fair game” for contractors bidding for projects, as price volatility in the past had hindered some of them from tendering competitively. Pheng expected little impact on Kinsteel as its products were already reasonably priced.
Ann Joo Resources Bhd executive director Datuk Lim Hong Thye said domestic steel prices would now better reflect the global trend. “Steel millers will eventually have to face competition and, in this sense, Ann Joo is ready for it,” he said. “If international prices were to continue surging, which we expect for the next two quarters, it would benefit us.”
The news would also bode well for local contractors, especially those involved in government projects, as they would be able to re-negotiate the pricing to consider the impact of steel prices. “We're glad that the Government recognised the issue and the move will help spur domestic demand further,” Lim added.
Master Builders Association Malaysia president Patrick Wong said the supply of steel bars and billets was anticipated to improve, hence addressing the plight of the construction sector.
“The contract price adjustments will alleviate costs and provide better margins for contractors,” he said.
Meanwhile, OSK Investment Bank analyst Ng Sem Guan said steel millers would have to be more competitive in pricing, given that buyers could now import the materials. “It will also address the issue for stockists who complained of insufficient supply,” he said. Domestic steel makers, meanwhile, would be able to reap the export market as global demand was anticipated to remain firm while supply could be tight following the stricter ruling by China to restrict exports of steel products, Ng said. “New capacity is unlikely to come in the next two to three years,” he added.
An analyst with a bank-backed brokerage said the liberalisation would remove the pricing uncertainty faced by smaller contractors. “There is less ambiguity now in how prices are fixed. Contractors can be more confident in bidding for projects,” he said.
Thursday, May 8, 2008
Ministry's study on highway concessions may see lower rates
Thursday May 8, 2008 The STAR
Ministry's study on highway concessions may see lower rates
KUALA LUMPUR: The Works Ministry will review highway concessions which may result in lower toll rates. Minister Datuk Mohd Zin Mohamed said he would call for a detailed study to be carried out before reviewing the concession agreements. Some of the important factors to be considered were the traffic volume forecasts, toll rates and period of the concession, he said.
“We will compare the toll collections, and maintenance and operational costs, as well as ‘heavy’ maintenance costs,” he told reporters at the Parliament lobby yesterday. Heavy maintenance, he said, referred to scheduled maintenance to resurface the entire highway while normal maintenance involved patching up potholes.
Mohd Zin said there was a toll review mechanism clause in the concession agreements which prevented concessionaires from raising toll rates as they pleased. “If the traffic volume hits a certain level, then the toll increase can be averted,” he said. He said the study would be completed within three months. Asked if the findings of the feasibility study could lead to lower toll rates, he replied: “It is one of the possibilities.”
On whether the Government had paid compensation to any concessionaire as toll rates had not been raised this year, Mohd Zin said no payment had been made as it was reviewing the concessions. He said there were 22 highway concessionaires in the country but seven were not making profits, including the operators of the New Pantai Expressway, Shah Alam Expressway and the Second Link.
Earlier in Parliament, Mohd Zin told Tony Pua (DAP – Petaling Jaya Utara) that the total accumulated income from toll charges of the 22 tolled highways was RM27.6bil, while the accumulated profit was RM3.5bil as of December last year.
To another question by Pua, Mohd Zin said the ministry was discussing with PLUS to redesignate the North-South Expressway into urban and inter-urban areas, to study cost-effectiveness and traffic volume. He said the urban zone would be Rawang to Nilai while inter-urban would be areas in Ipoh, Seremban and Johor Baru.
“Alternative federal roads linking cities will also be given priority to be upgraded and these roads are free of toll charges,” he said.
Ministry's study on highway concessions may see lower rates
KUALA LUMPUR: The Works Ministry will review highway concessions which may result in lower toll rates. Minister Datuk Mohd Zin Mohamed said he would call for a detailed study to be carried out before reviewing the concession agreements. Some of the important factors to be considered were the traffic volume forecasts, toll rates and period of the concession, he said.
“We will compare the toll collections, and maintenance and operational costs, as well as ‘heavy’ maintenance costs,” he told reporters at the Parliament lobby yesterday. Heavy maintenance, he said, referred to scheduled maintenance to resurface the entire highway while normal maintenance involved patching up potholes.
Mohd Zin said there was a toll review mechanism clause in the concession agreements which prevented concessionaires from raising toll rates as they pleased. “If the traffic volume hits a certain level, then the toll increase can be averted,” he said. He said the study would be completed within three months. Asked if the findings of the feasibility study could lead to lower toll rates, he replied: “It is one of the possibilities.”
On whether the Government had paid compensation to any concessionaire as toll rates had not been raised this year, Mohd Zin said no payment had been made as it was reviewing the concessions. He said there were 22 highway concessionaires in the country but seven were not making profits, including the operators of the New Pantai Expressway, Shah Alam Expressway and the Second Link.
Earlier in Parliament, Mohd Zin told Tony Pua (DAP – Petaling Jaya Utara) that the total accumulated income from toll charges of the 22 tolled highways was RM27.6bil, while the accumulated profit was RM3.5bil as of December last year.
To another question by Pua, Mohd Zin said the ministry was discussing with PLUS to redesignate the North-South Expressway into urban and inter-urban areas, to study cost-effectiveness and traffic volume. He said the urban zone would be Rawang to Nilai while inter-urban would be areas in Ipoh, Seremban and Johor Baru.
“Alternative federal roads linking cities will also be given priority to be upgraded and these roads are free of toll charges,” he said.
Tuesday, May 6, 2008
Assurance on projects that benefit rakyat
2008/04/30
Assurance on projects that benefit rakyat BERNAMA
KUALA LUMPUR, WED:
Datuk Seri Abdullah Ahmad Badawi today assured the people of the government’s commitment not to sacrifice people-centred projects under the Ninth Malaysia Plan eventhough existing allocations were inadequate.
The prime minister said this was decided at the Mid-Term Review of the 9th Plan after considering global fuel price hike which had direct impact on the cost of projects slated for implementation.“In reviewing all these, the decision taken was, if there are projects whose allocations had to be slashed or projects had to be postponed, it must be made sure that projects that would provide comfort and ensure the people’s well-being were not sacrificed,” he said when replying to a question from Razali Ibrahim (BN-Muar) during question time.Razali had wanted to know measures to be taken by the government in efforts to improve the people’s living quality.
Abdullah, who is also Finance Minister, said the government had to revise allocations for certain projects while some had to be deferred because the allocations provided under the Ninth Plan were based on the oil prices then which were far lower than now.
The five-year Ninth Malaysia Plan began in 2005. A meeting on the Ninth Plan Mid-Term Review was held yesterday. Abdullah said among projects to be given priority under the Ninth Plan were infrastructure and basic amenity projects in urban and rural areas.He said redevelopment projects in urban areas would be focused in areas with a large populace of urban poor such as squatter areas.The government would ensure the projects would provide congenial living surroundings by offering them affordable low-cost houses which they could either rent or buy at affordable prices.
The prime minister said the cabinet at its meeting on March 19 had considered impacts of the fuel price hike and food supply to be faced by the government. Besides the RM4 billion allocated to ensure sufficient food supply for the people, the government had also decided to set up a food stockpile, he said.“The working paper is ready and will be tabled at the next cabinet meeting,” he said.Abdullah also said the government would strive to reduce income disparities among ethnic groups besides ensuring equal opportunities for all Malaysians. He said the Unity, Culture, Arts and Heritage Ministry had been entrusted with the task of handling these issues.
The prime minister also said the government had incorporated the plan to redevelop new villages and commnity development programmes for the poor and in remote areas in Sabah and Sarawak under the Ninth Malaysia Plan. “This approach needs additional allocations,” he said. Abdullah also said the government would improve crime-prevention measures, including beefing up the police force, and address race relations and religious issues.
Assurance on projects that benefit rakyat BERNAMA
KUALA LUMPUR, WED:
Datuk Seri Abdullah Ahmad Badawi today assured the people of the government’s commitment not to sacrifice people-centred projects under the Ninth Malaysia Plan eventhough existing allocations were inadequate.
The prime minister said this was decided at the Mid-Term Review of the 9th Plan after considering global fuel price hike which had direct impact on the cost of projects slated for implementation.“In reviewing all these, the decision taken was, if there are projects whose allocations had to be slashed or projects had to be postponed, it must be made sure that projects that would provide comfort and ensure the people’s well-being were not sacrificed,” he said when replying to a question from Razali Ibrahim (BN-Muar) during question time.Razali had wanted to know measures to be taken by the government in efforts to improve the people’s living quality.
Abdullah, who is also Finance Minister, said the government had to revise allocations for certain projects while some had to be deferred because the allocations provided under the Ninth Plan were based on the oil prices then which were far lower than now.
The five-year Ninth Malaysia Plan began in 2005. A meeting on the Ninth Plan Mid-Term Review was held yesterday. Abdullah said among projects to be given priority under the Ninth Plan were infrastructure and basic amenity projects in urban and rural areas.He said redevelopment projects in urban areas would be focused in areas with a large populace of urban poor such as squatter areas.The government would ensure the projects would provide congenial living surroundings by offering them affordable low-cost houses which they could either rent or buy at affordable prices.
The prime minister said the cabinet at its meeting on March 19 had considered impacts of the fuel price hike and food supply to be faced by the government. Besides the RM4 billion allocated to ensure sufficient food supply for the people, the government had also decided to set up a food stockpile, he said.“The working paper is ready and will be tabled at the next cabinet meeting,” he said.Abdullah also said the government would strive to reduce income disparities among ethnic groups besides ensuring equal opportunities for all Malaysians. He said the Unity, Culture, Arts and Heritage Ministry had been entrusted with the task of handling these issues.
The prime minister also said the government had incorporated the plan to redevelop new villages and commnity development programmes for the poor and in remote areas in Sabah and Sarawak under the Ninth Malaysia Plan. “This approach needs additional allocations,” he said. Abdullah also said the government would improve crime-prevention measures, including beefing up the police force, and address race relations and religious issues.
Sunday, May 4, 2008
Bridge near Shanghai ... from anilnetto
Is the cost of the second Penang bridge way too high?
China yesterday inaugurated one of the longest sea bridges in the world - a six-lane 36km link (27km over sea) to connect Jiaxing city near Shanghai with Ningbo in the province of Zhejiang. And what is the cost? 11.8 billion yuan, which is RM5.3 billion (RM147 million per km).
In comparison, the cost of the proposed four-lane second Penang bridge, which is 24km (of which only 17km is above sea), is expected to cost at least RM4.3 billion (RM179 million per kim). It’s more than a third shorter than the bridge in China, and yet the cost is only about a fifth lower. The Edge even reported that UEM was seeking as much as RM4.8 billion for the Penang job.
So how? Something doesn’t look right. Why don’t we just expand the ferry service for a start to considerably ease congestion on the bridge while we explore a shorter rail link. Oh yeah, I forgot, that is too cheap a solution!
Still on the subject of transport, while Malaysian officials and planners can only think of multi-billion ringgit monorails and subways for our urban centres, the UK is rapidly turning to guided buses, guided trolley buses and trams as low-cost but efficient solutions to urban public transport in a string of British cities and towns. Check out this list of proposed schemes in the UK.
Again, this may be too cheap a solution for our planners’ liking… For some reason, they just love those multi-billion ringgit price tags.
Saturday, 3 May 2008 - Posted by anilnetto
China yesterday inaugurated one of the longest sea bridges in the world - a six-lane 36km link (27km over sea) to connect Jiaxing city near Shanghai with Ningbo in the province of Zhejiang. And what is the cost? 11.8 billion yuan, which is RM5.3 billion (RM147 million per km).
In comparison, the cost of the proposed four-lane second Penang bridge, which is 24km (of which only 17km is above sea), is expected to cost at least RM4.3 billion (RM179 million per kim). It’s more than a third shorter than the bridge in China, and yet the cost is only about a fifth lower. The Edge even reported that UEM was seeking as much as RM4.8 billion for the Penang job.
So how? Something doesn’t look right. Why don’t we just expand the ferry service for a start to considerably ease congestion on the bridge while we explore a shorter rail link. Oh yeah, I forgot, that is too cheap a solution!
Still on the subject of transport, while Malaysian officials and planners can only think of multi-billion ringgit monorails and subways for our urban centres, the UK is rapidly turning to guided buses, guided trolley buses and trams as low-cost but efficient solutions to urban public transport in a string of British cities and towns. Check out this list of proposed schemes in the UK.
Again, this may be too cheap a solution for our planners’ liking… For some reason, they just love those multi-billion ringgit price tags.
Saturday, 3 May 2008 - Posted by anilnetto
Friday, May 2, 2008
MB ponders two unsolicited contracts
02-05-2008:
MB ponders two unsolicited contracts
by Sharon Tan http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Article_a7f1f2f9-cb73c03a-c789fb00-e74a8952#
KEMAMAN: No sooner had Terengganu Menteri Besar Datuk Ahmad Said warmed his seat as the state’s new chief executive, two unsolicited contracts landed on his desk, awaiting his signature.
Valued at RM100 million and more than RM500 million respectively, the projects need Ahmad’s stamp of approval before they could be implemented, but for reasons known only to himself, he is hesitating to sign on the dotted lines.
“Two contractors came to see me for my signature, seeking consent from the MB. I did not sign,” said Ahmad in an exclusive interview with The Edge Financial Daily here.
He said one of the contractors had even laid the foundation marker for his project even though approval had not been granted.
Asked what he would do with the applications, he gave a wry smile and said: “We’ll see.”
He would not be goaded into hinting at his next course of action. He remarked, however, that there had been many occasions of contracts “coming from the top”.
“There were projects that we proposed and the Federal (government) approved, and there were those that it didn’t (approve). There were also projects from the top, contractor-driven (projects).
“The contractor would come to us and ask us to sign on the dotted lines, as he has gotten the project. We don’t know anything about it. This is the problem,” he said.
Asked if the two projects descended from Putrajaya, Ahmad just reiterated that they were “contractor-driven”.
Ahmad also said he shared the same objectives as those of former menteri besar Datuk Seri Idris Jusoh in wanting to develop the state, but his priorities and approach were different.
“I want to ensure all the development projects will benefit the people and not just to satisfy two or three contractors,” he said.
One of his priorities is the streamlining of state-owned companies and scrutinising the affairs of Terengganu’s three listed entities, particularly the ailing timber-based Golden Pharos Bhd.
“I have identified a few people to sit on a panel to look into whether some companies need to be merged and to wind up dormant ones. They are people that I can trust to do the job well. I have not given them a timeframe.
“When they get a clear picture of things, they would report to me so that when I hold meetings, I can ask for clarifications,” he said.
Ahmad was thrust into the limelight last month when the Terengganu palace and Umno had a three-week standoff on the choice of the MB post-general election.
While Umno-led Barisan Nasional wanted to re-appoint Idris, Ahmad was the palace’s choice. He received his appointment letter from the palace amid threats of expulsion from the party.
As a newly installed MB, he again grabbed national headlines by asking the Federal government to reinstate the 5% oil royalty and scrap the wang ehsan scheme, which was introduced after control of the state fell into PAS hands following the 1999 general election.
The Edge Weekly has a closer look at wang ehsan in its upcoming issue.
MB ponders two unsolicited contracts
by Sharon Tan http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Article_a7f1f2f9-cb73c03a-c789fb00-e74a8952#
KEMAMAN: No sooner had Terengganu Menteri Besar Datuk Ahmad Said warmed his seat as the state’s new chief executive, two unsolicited contracts landed on his desk, awaiting his signature.
Valued at RM100 million and more than RM500 million respectively, the projects need Ahmad’s stamp of approval before they could be implemented, but for reasons known only to himself, he is hesitating to sign on the dotted lines.
“Two contractors came to see me for my signature, seeking consent from the MB. I did not sign,” said Ahmad in an exclusive interview with The Edge Financial Daily here.
He said one of the contractors had even laid the foundation marker for his project even though approval had not been granted.
Asked what he would do with the applications, he gave a wry smile and said: “We’ll see.”
He would not be goaded into hinting at his next course of action. He remarked, however, that there had been many occasions of contracts “coming from the top”.
“There were projects that we proposed and the Federal (government) approved, and there were those that it didn’t (approve). There were also projects from the top, contractor-driven (projects).
“The contractor would come to us and ask us to sign on the dotted lines, as he has gotten the project. We don’t know anything about it. This is the problem,” he said.
Asked if the two projects descended from Putrajaya, Ahmad just reiterated that they were “contractor-driven”.
Ahmad also said he shared the same objectives as those of former menteri besar Datuk Seri Idris Jusoh in wanting to develop the state, but his priorities and approach were different.
“I want to ensure all the development projects will benefit the people and not just to satisfy two or three contractors,” he said.
One of his priorities is the streamlining of state-owned companies and scrutinising the affairs of Terengganu’s three listed entities, particularly the ailing timber-based Golden Pharos Bhd.
“I have identified a few people to sit on a panel to look into whether some companies need to be merged and to wind up dormant ones. They are people that I can trust to do the job well. I have not given them a timeframe.
“When they get a clear picture of things, they would report to me so that when I hold meetings, I can ask for clarifications,” he said.
Ahmad was thrust into the limelight last month when the Terengganu palace and Umno had a three-week standoff on the choice of the MB post-general election.
While Umno-led Barisan Nasional wanted to re-appoint Idris, Ahmad was the palace’s choice. He received his appointment letter from the palace amid threats of expulsion from the party.
As a newly installed MB, he again grabbed national headlines by asking the Federal government to reinstate the 5% oil royalty and scrap the wang ehsan scheme, which was introduced after control of the state fell into PAS hands following the 1999 general election.
The Edge Weekly has a closer look at wang ehsan in its upcoming issue.
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