Friday, June 27, 2008
9MP mid-term review:
2008/06/27
9MP mid-term review:'People-centric' projects to cushion oil shocks
9MP mid-term review:'People-centric' projects to cushion oil shocks
By : V. Vasudevan, Eileen Ng, Joseph Sipalan, Irdiani Mohd Salleh, Ili Liyana Mokhtar, Annie Freeda Cruz, Audrey Dermawan, Sharanjit Singh and Marina Emmanuel
NST
KUALA LUMPUR: An additional RM30 billion will be set aside for the rest of the Ninth Malaysia Plan period to cover the rising costs of existing projects.
NST
KUALA LUMPUR: An additional RM30 billion will be set aside for the rest of the Ninth Malaysia Plan period to cover the rising costs of existing projects.
Funds would also be channelled to "priority" areas such as regional corridor developments and food production.The money, in addition to the original allocation of RM200 billion, will come from the recent fuel subsidy restructuring. Prime Minister Datuk Seri Abdullah Ahmad Badawi said the government would undertake "people-centric" projects for the remaining period of the 9MP from 2008 to 2010 in light of rising oil prices and uncertainty caused by external factors. Tabling the Mid-Term Review of the 9MP in Dewan Rakyat yesterday, he said the government was committed to easing the burden on the people.
People-centric projects provide basic amenities and directly benefit the people, such as water supply, electricity, health facilities, education, low-cost housing, poverty eradication and public safety.The aim of the review is to implement strategies and programmes that will turn the country into a strong and united nation.As such, he said, one of the main goals of the second phase of the 9MP was to protect Malaysians' quality of life.As part of efforts to eradicate poverty by 2010, a focus group has been set up to streamline, coordinate and assess programmes at state and district levels, said Abdullah, who is also the finance minister.Programmes to increase earnings and provide social safety nets would be boosted.Help will be extended in the form of aid to children, the aged, those with special needs, patients with chronic diseases and those with artificial limbs."These are additions to existing policies that make education and health services affordable or even free." Abdullah said the Mid-Term Review did not ignore the nation's need to boost capacity and competitiveness.Turning to basic infrastructure, particularly water and electricity, he said the use of technology such as solar-powered generators, wind turbines and rainwater harvesting would be intensified. "In populated areas such as the Klang Valley, the quality of water supply and sewerage systems will be enhanced with the establishment of the National Water Services Commission," he said
Meanwhile, Deputy Prime Minister Datuk Seri Najib Razak said RM13 billion of the allocation would be derived from the restructuring of the fuel subsidy."If we didn't do this (restructuring of fuel subsidy), the country's financial situation will be dire. With the global economic slowdown, we must have a reserve margin," he said at Parliament's lobby.Najib added the money would also come in the form of external loans.Increases in food and fuel prices also prompted the government to expand the social safety net, with an allocation to alleviate the burden of the low-income group. "There is a need for additional funds for public facilities, especially in Sabah and Sarawak." He said the Mid-Term Review highlighted the government's commitment to eradicating hardcore poverty.
Thursday, June 26, 2008
2nd Penang bridge deal has variable cost clause
2nd Penang bridge deal has variable cost clause
The Star
26 June 2008
KUALA LUMPUR: The building cost of the second Penang bridge is expected to be higher than the estimated RM4.3bil, as the agreement includes a variable cost clause which accounts for possible increase in building material prices. According to UEM World Bhd chairman Tan Sri Ahmad Tajuddin Ali, the RM4.3bil price tag was based on building material prices as at end-December 2007 and included the cost of land acquisition and design. Since January, international prices of steel and cement have escalated close to 50%. Locally, the Government has also liberalised both the sectors by removing the ceiling prices of certain-related products.
Managing director and chief executive officer Datuk Ahmad Pardas Senin said, however, having the clause did not mean that the group “would be irresponsible to allow the project cost to increase. This project won't be completed next month but will last until 2011. Today, the prices are up but we don't need to buy all the steel and concrete unless we're so conservative to assume that the uptrend will continue for the next two years,” he said after the company AGM yesterday.
Saying that construction was likely to pick up speed in the “next couple of months,” Ahmad Pardas added that the group could leverage on its subsidiary, Cement Industries of Malaysia Bhd, to manage part of the material cost.
Ahmad Tajuddin noted that the Government planned to open the tender for the concession to operate and maintain the bridge. “The bridge will be owned by the Government, which will determine the toll rate later,” he said, adding that UEM World intended to submit a bid for the concession.
Ahmad Pardas said the group saved about 25% in procurement cost for its Nusajaya project, thanks to e-bidding and pre-buying strategies. Despite the current challenging economic conditions, UEM World is determined to achieve its key performance index of 13% growth in revenue and return on equity (ROE) of 13% for the year ending Dec 31, 2008. This would be driven by its engineering and construction, healthcare and property development businesses, Ahmad Pardas said. Last year, UEM World's revenue grew 46% while generating a ROE of 41%.
The Star
26 June 2008
KUALA LUMPUR: The building cost of the second Penang bridge is expected to be higher than the estimated RM4.3bil, as the agreement includes a variable cost clause which accounts for possible increase in building material prices. According to UEM World Bhd chairman Tan Sri Ahmad Tajuddin Ali, the RM4.3bil price tag was based on building material prices as at end-December 2007 and included the cost of land acquisition and design. Since January, international prices of steel and cement have escalated close to 50%. Locally, the Government has also liberalised both the sectors by removing the ceiling prices of certain-related products.
Managing director and chief executive officer Datuk Ahmad Pardas Senin said, however, having the clause did not mean that the group “would be irresponsible to allow the project cost to increase. This project won't be completed next month but will last until 2011. Today, the prices are up but we don't need to buy all the steel and concrete unless we're so conservative to assume that the uptrend will continue for the next two years,” he said after the company AGM yesterday.
Saying that construction was likely to pick up speed in the “next couple of months,” Ahmad Pardas added that the group could leverage on its subsidiary, Cement Industries of Malaysia Bhd, to manage part of the material cost.
Ahmad Tajuddin noted that the Government planned to open the tender for the concession to operate and maintain the bridge. “The bridge will be owned by the Government, which will determine the toll rate later,” he said, adding that UEM World intended to submit a bid for the concession.
Ahmad Pardas said the group saved about 25% in procurement cost for its Nusajaya project, thanks to e-bidding and pre-buying strategies. Despite the current challenging economic conditions, UEM World is determined to achieve its key performance index of 13% growth in revenue and return on equity (ROE) of 13% for the year ending Dec 31, 2008. This would be driven by its engineering and construction, healthcare and property development businesses, Ahmad Pardas said. Last year, UEM World's revenue grew 46% while generating a ROE of 41%.
Sime Darby pulls out of undersea cable project
Sime Darby pulls out of undersea cable project
Business Times
2008-June-26
SIME Darby Bhd has pulled out of the planned RM6 billion submarine cable project across the South China Sea, saying that it does not fit in with its business strategy.The cable was to carry power between Sarawak and Peninsular Malaysia.In a statement issued in Kuala Lumpur yesterday, Sime Darby said it would not buy equity stakes in Sarawak Hidro Sdn Bhd, developer of the cable project and owner of the Bakun Dam in Sarawak.Sime Darby president and group chief executive officer Datuk Seri Ahmad Zubir Murshid said the decision was made after a thorough review of the project."Our board is of the view that the project economics do not fit in with our business strategy. We are withdrawing our proposal to take up an equity interest in the project, but will continue in our role as a contractor to complete the construction of the dam," he said.The company's decision to pull out may surprise the market.In November last year, Sime Darby, via letters of intent, had received the green light to own 60 per cent of Sarawak Hidro, with the remaining stake to be equally shared between the Ministry of Finance and the state government.The letters of intent allowed Sime Darby to begin detailed discussions on the cost of the undersea cable project as well as outline tariff proposals for Tenaga Nasional Bhd."This is definitely a bankable project. Our intention is to bring back power to Peninsular Malaysia," Ahmad Zubir told the media then.The project, dubbed the High Voltage Direct Current transmission link, involves laying two 700km submarine cables from Sarawak to Johor. The first cable was expected to have been ready for transmission by 2013 and the second, by 2015.
Business Times
2008-June-26
SIME Darby Bhd has pulled out of the planned RM6 billion submarine cable project across the South China Sea, saying that it does not fit in with its business strategy.The cable was to carry power between Sarawak and Peninsular Malaysia.In a statement issued in Kuala Lumpur yesterday, Sime Darby said it would not buy equity stakes in Sarawak Hidro Sdn Bhd, developer of the cable project and owner of the Bakun Dam in Sarawak.Sime Darby president and group chief executive officer Datuk Seri Ahmad Zubir Murshid said the decision was made after a thorough review of the project."Our board is of the view that the project economics do not fit in with our business strategy. We are withdrawing our proposal to take up an equity interest in the project, but will continue in our role as a contractor to complete the construction of the dam," he said.The company's decision to pull out may surprise the market.In November last year, Sime Darby, via letters of intent, had received the green light to own 60 per cent of Sarawak Hidro, with the remaining stake to be equally shared between the Ministry of Finance and the state government.The letters of intent allowed Sime Darby to begin detailed discussions on the cost of the undersea cable project as well as outline tariff proposals for Tenaga Nasional Bhd."This is definitely a bankable project. Our intention is to bring back power to Peninsular Malaysia," Ahmad Zubir told the media then.The project, dubbed the High Voltage Direct Current transmission link, involves laying two 700km submarine cables from Sarawak to Johor. The first cable was expected to have been ready for transmission by 2013 and the second, by 2015.
Wednesday, June 25, 2008
MAHB: LCCT expansion works to be finished in 11 months
Wednesday June 25, 2008
MAHB: LCCT expansion works to be finished in 11 months
By LOONG TSE MIN
The Star
SEPANG: Work on the expansion of the Low-Cost Carrier Terminal (LCCT) is “on track” and should be completed in 11 months, says Malaysia Airports Holdings Bhd (MAHB) operations senior general manager Datuk Azmi Murad. The expansion, being undertaken by MAHB, is expected to boost the LCCT capacity by 50% to 15 million passengers a year from 10 million at present. “A permanent site for the LCCT will be decided at a later stage,” Azmi told reporters at the launch of Touch 'n Go payment facility for parking at the LCCT and KL International Airport (KLIA) yesterday.
MAHB had previously announced that a permanent terminal, which would handle up to 35 million passengers a year, was expected to be built in three to four years.
On the current expansion, Azmi said MAHB would be adding another 400 seats in the waiting areas. Meanwhile, toll fare payment operator Touch 'n Go Sdn Bhd expects an average revenue of RM240,000 per month from the parking facilities at the KLIA and LCCT. Chairman Datuk Yahya Yaacob said the company expected to capture about 10% revenue of the parking payment traffic at the two airports as the remainder would likely be in cash. The two airports are the 23rd and 24th parking payment sites for Touch 'n Go.
On the impact of high petrol prices, Touch 'n Go chief operating officer Hasni Zarina Mohamed Khan said the company expected a slowdown in road traffic. This, she said was likely to be offset by the higher use of light rail transit and monorail where the Touch 'n Go card could also be used.
On the surcharge for the use of its card for parking, Hasni said: “Some sites have it, and some do not. “I think it's a matter of convenience for the customer, with the charge being only about 10 sen or 20 sen more.” There were also plans in the near future to expand the use of the Touch 'n Go card for retail outlets at both airports, Yahya added.
Following the high acceptance rate in the Klang Valley, it also planned to expand the use of its system for parking payment to Johor Baru and Penang by next year, he said.
MAHB: LCCT expansion works to be finished in 11 months
By LOONG TSE MIN
The Star
SEPANG: Work on the expansion of the Low-Cost Carrier Terminal (LCCT) is “on track” and should be completed in 11 months, says Malaysia Airports Holdings Bhd (MAHB) operations senior general manager Datuk Azmi Murad. The expansion, being undertaken by MAHB, is expected to boost the LCCT capacity by 50% to 15 million passengers a year from 10 million at present. “A permanent site for the LCCT will be decided at a later stage,” Azmi told reporters at the launch of Touch 'n Go payment facility for parking at the LCCT and KL International Airport (KLIA) yesterday.
MAHB had previously announced that a permanent terminal, which would handle up to 35 million passengers a year, was expected to be built in three to four years.
On the current expansion, Azmi said MAHB would be adding another 400 seats in the waiting areas. Meanwhile, toll fare payment operator Touch 'n Go Sdn Bhd expects an average revenue of RM240,000 per month from the parking facilities at the KLIA and LCCT. Chairman Datuk Yahya Yaacob said the company expected to capture about 10% revenue of the parking payment traffic at the two airports as the remainder would likely be in cash. The two airports are the 23rd and 24th parking payment sites for Touch 'n Go.
On the impact of high petrol prices, Touch 'n Go chief operating officer Hasni Zarina Mohamed Khan said the company expected a slowdown in road traffic. This, she said was likely to be offset by the higher use of light rail transit and monorail where the Touch 'n Go card could also be used.
On the surcharge for the use of its card for parking, Hasni said: “Some sites have it, and some do not. “I think it's a matter of convenience for the customer, with the charge being only about 10 sen or 20 sen more.” There were also plans in the near future to expand the use of the Touch 'n Go card for retail outlets at both airports, Yahya added.
Following the high acceptance rate in the Klang Valley, it also planned to expand the use of its system for parking payment to Johor Baru and Penang by next year, he said.
Tuesday, June 24, 2008
Scomi eyes Penang, India monorail deals
Scomi eyes Penang, India monorail deals
By Kamarul Yunus
Published: 2008/06/24
Business Times
SCOMI Engineering Bhd, a unit of Scomi Group Bhd, is upbeat about securing a monorail contract in Mumbai, India, but hopes to secure the monorail project in Penang first.Its president, Hilmy Zaini, said the company wants to introduce its second generation monorail called Sutra, which was launched in November last year in Penang, before launching the new innovative system to other parts of the world."It would be good for us to launch the new Sutra at the company's hometown in Penang," he told reporters after Scomi Engineering's annual general meeting in Kuala Lumpur yesterday.Hilmy was asked to update the progress of the monorail project in Penang, which is currently facing uncertainty.
"There is nothing much to update. We are waiting for the results (whether to go on with the project or not). We don't know when (a decision will be made)."The Mumbai monorail project is closing the tender in a few weeks time. But we hope to get the Penang monorail first," he said.Scomi is part of a group that includes Malaysian Resources Corp Bhd (MRCB), which is bidding for the monorail project on Penang island.In January this year, Syarikat Prasarana Negara Bhd awarded a letter of intent for the project to MRCB, which formed a consortium with Penang Port Sdn Bhd and Scomi Engineering Bhd.However, the project has been put in doubt after the Pakatan Rakyat win in Penang during the last general elections on March 8.Apart from Mumbai and Penang, Hilmy said, the company is also looking to bid for monorail projects in the Middle East, Vietnam, Africa and several cities in India.He said the company has been engaged to conduct feasibility studies in Vietnam and Saudi Arabia."We hope to complete the study in Vietnam in three months times, while in Saudi Arabia it will take between six months and a year to complete. "When completed, we will present our findings to the respective authorities and submit our bids for the projects," he said.Hilmy said the company aims to set up two new machine shops in a year, starting from 2009.
By Kamarul Yunus
Published: 2008/06/24
Business Times
SCOMI Engineering Bhd, a unit of Scomi Group Bhd, is upbeat about securing a monorail contract in Mumbai, India, but hopes to secure the monorail project in Penang first.Its president, Hilmy Zaini, said the company wants to introduce its second generation monorail called Sutra, which was launched in November last year in Penang, before launching the new innovative system to other parts of the world."It would be good for us to launch the new Sutra at the company's hometown in Penang," he told reporters after Scomi Engineering's annual general meeting in Kuala Lumpur yesterday.Hilmy was asked to update the progress of the monorail project in Penang, which is currently facing uncertainty.
"There is nothing much to update. We are waiting for the results (whether to go on with the project or not). We don't know when (a decision will be made)."The Mumbai monorail project is closing the tender in a few weeks time. But we hope to get the Penang monorail first," he said.Scomi is part of a group that includes Malaysian Resources Corp Bhd (MRCB), which is bidding for the monorail project on Penang island.In January this year, Syarikat Prasarana Negara Bhd awarded a letter of intent for the project to MRCB, which formed a consortium with Penang Port Sdn Bhd and Scomi Engineering Bhd.However, the project has been put in doubt after the Pakatan Rakyat win in Penang during the last general elections on March 8.Apart from Mumbai and Penang, Hilmy said, the company is also looking to bid for monorail projects in the Middle East, Vietnam, Africa and several cities in India.He said the company has been engaged to conduct feasibility studies in Vietnam and Saudi Arabia."We hope to complete the study in Vietnam in three months times, while in Saudi Arabia it will take between six months and a year to complete. "When completed, we will present our findings to the respective authorities and submit our bids for the projects," he said.Hilmy said the company aims to set up two new machine shops in a year, starting from 2009.
Thursday, June 19, 2008
PLUS eyes more overseas highway jobs
PLUS eyes more overseas highway jobs
By Zuraimi Abdullah
BTimes
Published: 2008/06/19
There are tremendous opportunities in India and Indonesia, says PLUS Expressways managing director
PLUS Expressways Bhd will focus on getting more highway jobs abroad, particularly in India and Indonesia, as domestic opportunities dwindle, its top executives say.They said the government's plan to spend on projects that benefit the masses more amid tough economic conditions means that the prospects for new highways in the country "will be quite minimal".Managing director Noorizah Abdul Hamid said there are tremendous opportunities in India and Indonesia. Already, PLUS has toll concessions and highway construction contracts in the two countries.India has planned to add another 1,500km to its highway network, while Indonesia wants to put up an extra 1,000km.
"The tender for the Indian job will be called out by this year," Noorizah told reporters after PLUS' annual general meeting in Kuala Lumpur yesterday.She said PLUS is also keen to offer its services in highway maintenance, both locally and abroad.PLUS' toll rates are scheduled for a raise by 10 per cent once every three years based on the revamped concession agreement sealed in January 2002.The first three years expired in 2004, meaning that the new rates for the subsequent three years were effective from 2005 and 2008. Noorizah said the current new rates would have been implemented from January this year, if not for a deferment following the government's decision to review all highway concessions.The company has since been partially compensated by the government for not charging the new toll rates on its highways, including the North-South Expressway."We have yet to engage in official talks on the toll revision, but we have been providing the information requested by the government," she said.
PLUS' chairman Tan Sri Mohd Sheriff Mohd Kassim said it is still early to estimate the impact of the recent fuel hikes on the traffic at PLUS highways, but generally a slowdown can be expected in the interim.He added that during the previous increase in 2005, the traffic decreased, with the downtrend lasting for about six months before demand stabilised once the public finally got a grip with the reality."Last year, our traffic grew 7.5 per cent, the highest year-on-year growth since 2001. "The figures for January also showed strong growth," Sheriff said.
By Zuraimi Abdullah
BTimes
Published: 2008/06/19
There are tremendous opportunities in India and Indonesia, says PLUS Expressways managing director
PLUS Expressways Bhd will focus on getting more highway jobs abroad, particularly in India and Indonesia, as domestic opportunities dwindle, its top executives say.They said the government's plan to spend on projects that benefit the masses more amid tough economic conditions means that the prospects for new highways in the country "will be quite minimal".Managing director Noorizah Abdul Hamid said there are tremendous opportunities in India and Indonesia. Already, PLUS has toll concessions and highway construction contracts in the two countries.India has planned to add another 1,500km to its highway network, while Indonesia wants to put up an extra 1,000km.
"The tender for the Indian job will be called out by this year," Noorizah told reporters after PLUS' annual general meeting in Kuala Lumpur yesterday.She said PLUS is also keen to offer its services in highway maintenance, both locally and abroad.PLUS' toll rates are scheduled for a raise by 10 per cent once every three years based on the revamped concession agreement sealed in January 2002.The first three years expired in 2004, meaning that the new rates for the subsequent three years were effective from 2005 and 2008. Noorizah said the current new rates would have been implemented from January this year, if not for a deferment following the government's decision to review all highway concessions.The company has since been partially compensated by the government for not charging the new toll rates on its highways, including the North-South Expressway."We have yet to engage in official talks on the toll revision, but we have been providing the information requested by the government," she said.
PLUS' chairman Tan Sri Mohd Sheriff Mohd Kassim said it is still early to estimate the impact of the recent fuel hikes on the traffic at PLUS highways, but generally a slowdown can be expected in the interim.He added that during the previous increase in 2005, the traffic decreased, with the downtrend lasting for about six months before demand stabilised once the public finally got a grip with the reality."Last year, our traffic grew 7.5 per cent, the highest year-on-year growth since 2001. "The figures for January also showed strong growth," Sheriff said.
Monday, June 16, 2008
Tenders may be called
Tenders may be called
Published: 2008/06/16
BTimea
DRB-HICOM and IJM Corp may bid for the RM8 billion contract to lay rail tracks connecting Gemas to Johor Baru, says an industry source
THE government may call for tenders for the Gemas-Johor Baru railway project by the year-end, says a government source.A source from the Ministry of Transport said it was in the government's interest to complete the southern portion of the country's electrified double tracks."The government will call for tenders, but this is subject to the mid-term review."The single tracks are now running from Singapore to Kuala Lumpur and from Kuala Lumpur to Butterworth. So the whole stretch of the double tracks must be completed to improve efficiency," he told Business Times.
An industry source said that DRB-HICOM Bhd and IJM Corp Bhd may bid for the RM8 billion contract to lay new rail tracks connecting Gemas in Negri Sembilan to Johor Baru.DRB-HICOM, a car and banking group that also has expertise in engineering, is expected to submit a detailed proposal comprising design, layout and cost structure to the government in the second half of the year."DRB-HICOM is keen to work on the double tracks. They may either work with a local or foreign party in securing the contract or bid for it on their own," the source said.The source said DRB-HICOM had previously made a presentation to the government for the project late last year.Key executive officials of DRB-HICOM were not available for comment at press time.The project involves building over 200km of parallel railway tracks, including stations, depots, halts, yards and bridges.Work will also cover systems such as electrification, signalling and communications.
Both DRB-HICOM and IJM are experienced in railway work.IJM is one of three sub-contractors for the RM3.45 billion Seremban-Gemas double-tracking railway project.IJM managing director Datuk Krishnan Tan Boon Seng, however, told Business Times through e-mail that IJM was not involved in any submission for the Gemas-Johor Baru stretch.DRB-HICOM, meanwhile, was a main contractor for the RM4.6 billion Rawang-Ipoh double-tracking project awarded in 2000.However, the project faced delays and the government eventually asked UEM Builders Bhd to complete it.The Rawang-Ipoh project was finally completed last year.Malaysia's other double-tracking project is the RM12.5 billion rail link between Ipoh and Padang Besar. This is being done by Gamuda Bhd and MMC Corp Bhd, and slated for completion in 2013.
Published: 2008/06/16
BTimea
DRB-HICOM and IJM Corp may bid for the RM8 billion contract to lay rail tracks connecting Gemas to Johor Baru, says an industry source
THE government may call for tenders for the Gemas-Johor Baru railway project by the year-end, says a government source.A source from the Ministry of Transport said it was in the government's interest to complete the southern portion of the country's electrified double tracks."The government will call for tenders, but this is subject to the mid-term review."The single tracks are now running from Singapore to Kuala Lumpur and from Kuala Lumpur to Butterworth. So the whole stretch of the double tracks must be completed to improve efficiency," he told Business Times.
An industry source said that DRB-HICOM Bhd and IJM Corp Bhd may bid for the RM8 billion contract to lay new rail tracks connecting Gemas in Negri Sembilan to Johor Baru.DRB-HICOM, a car and banking group that also has expertise in engineering, is expected to submit a detailed proposal comprising design, layout and cost structure to the government in the second half of the year."DRB-HICOM is keen to work on the double tracks. They may either work with a local or foreign party in securing the contract or bid for it on their own," the source said.The source said DRB-HICOM had previously made a presentation to the government for the project late last year.Key executive officials of DRB-HICOM were not available for comment at press time.The project involves building over 200km of parallel railway tracks, including stations, depots, halts, yards and bridges.Work will also cover systems such as electrification, signalling and communications.
Both DRB-HICOM and IJM are experienced in railway work.IJM is one of three sub-contractors for the RM3.45 billion Seremban-Gemas double-tracking railway project.IJM managing director Datuk Krishnan Tan Boon Seng, however, told Business Times through e-mail that IJM was not involved in any submission for the Gemas-Johor Baru stretch.DRB-HICOM, meanwhile, was a main contractor for the RM4.6 billion Rawang-Ipoh double-tracking project awarded in 2000.However, the project faced delays and the government eventually asked UEM Builders Bhd to complete it.The Rawang-Ipoh project was finally completed last year.Malaysia's other double-tracking project is the RM12.5 billion rail link between Ipoh and Padang Besar. This is being done by Gamuda Bhd and MMC Corp Bhd, and slated for completion in 2013.
Saturday, June 14, 2008
Builders want mandatory clause on price fluctuations
Saturday June 14, 2008
The Star
Builders want mandatory clause on price fluctuations
PETALING JAYA: The Master Builders Association of Malaysia (MBAM) has requested the Government to consider a mandatory fluctuation cost clause for all future construction contracts due to rising building material and fuel prices. MBAM said in the interim, for existing projects without the clause, builders should be compensated for additional costs due to the increase in material prices.
“This additional cost can be computed using the same mechanism provided in the conventional ‘build' contract for government projects,” it said in a statement yesterday. For future projects, it said, the inclusion of adjustments for price fluctuations should be extended from the conventional “build” contracts, to all “design and build” contracts, direct negotiation contracts and other projects undertaken by semi-government bodies and agencies.
For private contracts, the tender documents should state building materials for private jobs to be supplied at a fixed price and deducted from the main contract. The association said the recent diesel and petrol price hikes were having an impact on its members, while contractors were finding it harder to manage construction costs due to rising material costs. Due to the uncertainty of costs, it said contractors wanted the Government to look into measures to ensure the delivery and sustainability of projects, especially due to some cost-push factors.
The factors included high construction demand due to the sudden implementation of projects under the Ninth Malaysia Plan and the economic corridors; high-end property development projects; and also the continued demand for building materials and labour worldwide.
The Star
Builders want mandatory clause on price fluctuations
PETALING JAYA: The Master Builders Association of Malaysia (MBAM) has requested the Government to consider a mandatory fluctuation cost clause for all future construction contracts due to rising building material and fuel prices. MBAM said in the interim, for existing projects without the clause, builders should be compensated for additional costs due to the increase in material prices.
“This additional cost can be computed using the same mechanism provided in the conventional ‘build' contract for government projects,” it said in a statement yesterday. For future projects, it said, the inclusion of adjustments for price fluctuations should be extended from the conventional “build” contracts, to all “design and build” contracts, direct negotiation contracts and other projects undertaken by semi-government bodies and agencies.
For private contracts, the tender documents should state building materials for private jobs to be supplied at a fixed price and deducted from the main contract. The association said the recent diesel and petrol price hikes were having an impact on its members, while contractors were finding it harder to manage construction costs due to rising material costs. Due to the uncertainty of costs, it said contractors wanted the Government to look into measures to ensure the delivery and sustainability of projects, especially due to some cost-push factors.
The factors included high construction demand due to the sudden implementation of projects under the Ninth Malaysia Plan and the economic corridors; high-end property development projects; and also the continued demand for building materials and labour worldwide.
Thursday, June 12, 2008
On track for more deals
On track for more deals
By Ooi Tee Ching
Business Times
Published: 2008/06/12
Fajarbaru, which won the RM316 million Tampin-Batang Melaka package, is bidding for jobs in the northern portion of the double rail tracking project.FAJARBARU Builder Group Bhd is poised to clinch more double tracking rail packages and add to its current order book of RM500 million.Last month, India's Ircon International Ltd, the main contractor for the double railway tracking project from Seremban to Gemas, awarded Fajarbaru a RM316 million package that runs 30km from Tampin to Batang Melaka."We're tendering for jobs in the northern portion too," Fajarbaru managing director Datuk Low Keng Kok told Business Times in an interview recently.Work has started and is due to be finished by March 2009.Having held the post of joint managing director for the Road Builder Group for 18 years, Low is now leading Fajarbaru.Last year, the Road Builder Group was taken over by IJM Corp Bhd after founder Tan Sri Chua Hock Chin cashed out from the company.In his first interview since helming Fajarbaru from August 2007, Low said, "the change in Road Builder's shareholding prompted a change for myself"."I didn't have a contract to stay on with IJM Group. I was accorded gratuity by Road Builder Group when I decided a change for myself. If there had been no change in Road Builder's shareholding, I would have most likely retired there," Low said."Not long after the merger with IJM, Fajar's shareholders approached me with an offer," he said.It was not a fat salary package that attracted him to Fajarbaru."Although I was offered a seven per cent (stake) in Fajar, the determining factor was the opportunity to build up this company to a higher level to take on higher margin jobs," he said.Last month, Transport Minister Datuk Ong Tee Keat, in a Parliament session said the RM123.9 million job to upgrade Sepang's low-cost carrier terminal was awarded to Fajarbaru through direct negotiations because the government did not have time to launch an open tender system.The minister said the LCCT upgrade is to accommodate the increasing number of passengers, which is expected to rise from the current 10 million to 15 million annually until 2015.
By Ooi Tee Ching
Business Times
Published: 2008/06/12
Fajarbaru, which won the RM316 million Tampin-Batang Melaka package, is bidding for jobs in the northern portion of the double rail tracking project.FAJARBARU Builder Group Bhd is poised to clinch more double tracking rail packages and add to its current order book of RM500 million.Last month, India's Ircon International Ltd, the main contractor for the double railway tracking project from Seremban to Gemas, awarded Fajarbaru a RM316 million package that runs 30km from Tampin to Batang Melaka."We're tendering for jobs in the northern portion too," Fajarbaru managing director Datuk Low Keng Kok told Business Times in an interview recently.Work has started and is due to be finished by March 2009.Having held the post of joint managing director for the Road Builder Group for 18 years, Low is now leading Fajarbaru.Last year, the Road Builder Group was taken over by IJM Corp Bhd after founder Tan Sri Chua Hock Chin cashed out from the company.In his first interview since helming Fajarbaru from August 2007, Low said, "the change in Road Builder's shareholding prompted a change for myself"."I didn't have a contract to stay on with IJM Group. I was accorded gratuity by Road Builder Group when I decided a change for myself. If there had been no change in Road Builder's shareholding, I would have most likely retired there," Low said."Not long after the merger with IJM, Fajar's shareholders approached me with an offer," he said.It was not a fat salary package that attracted him to Fajarbaru."Although I was offered a seven per cent (stake) in Fajar, the determining factor was the opportunity to build up this company to a higher level to take on higher margin jobs," he said.Last month, Transport Minister Datuk Ong Tee Keat, in a Parliament session said the RM123.9 million job to upgrade Sepang's low-cost carrier terminal was awarded to Fajarbaru through direct negotiations because the government did not have time to launch an open tender system.The minister said the LCCT upgrade is to accommodate the increasing number of passengers, which is expected to rise from the current 10 million to 15 million annually until 2015.
It's a govt mandate: Fajarbaru
It's a govt mandate: Fajarbaru
Business Times
Published: 2008/06/12
ESTABLISHED companies are partnering smaller firms to build parts of a RM3.45 billion rail contract because of a government mandate.This was explained by Datuk Low Keng Kok, managing director of Fajarbaru Builder Group Bhd. Fajarbaru is one of the companies that won a slice of the rail job.About three large companies have won contracts under a project to lay parallel railway tracks between Seremban and Gemas in Negri Sembilan.However, IJM Corp Bhd, Fajarbaru and Loh & Loh Corp Bhd had to partner smaller firms. IJM, for instance, won a RM490 million job but had to share 30 per cent of the work with Norwest Holdings Sdn Bhd.
Fajarbaru is partnering LTP Development Sdn Bhd, a Class A contractor, Low said. The contract is worth RM316 million."The federal government mandates that at least 30 per cent of the double tracking of railway packages go to Bumiputera contractors," he said.
Business Times
Published: 2008/06/12
ESTABLISHED companies are partnering smaller firms to build parts of a RM3.45 billion rail contract because of a government mandate.This was explained by Datuk Low Keng Kok, managing director of Fajarbaru Builder Group Bhd. Fajarbaru is one of the companies that won a slice of the rail job.About three large companies have won contracts under a project to lay parallel railway tracks between Seremban and Gemas in Negri Sembilan.However, IJM Corp Bhd, Fajarbaru and Loh & Loh Corp Bhd had to partner smaller firms. IJM, for instance, won a RM490 million job but had to share 30 per cent of the work with Norwest Holdings Sdn Bhd.
Fajarbaru is partnering LTP Development Sdn Bhd, a Class A contractor, Low said. The contract is worth RM316 million."The federal government mandates that at least 30 per cent of the double tracking of railway packages go to Bumiputera contractors," he said.
Wednesday, June 11, 2008
Taliworks eyes highway concession business
Wednesday June 11, 2008
Taliworks eyes highway concession business
By FINTAN NG
The Star
PETALING JAYA: Water resources concessionaire
Taliworks Corp Bhd is eyeing a more meaningful role in the highway concession business following its acquisition of a stake in
Sunway Infrastructure Bhd (SunIn fra), the operator and owner of the 37km Kajang SILK Highway. A source with knowledge of the deal said
Cerah Sama Sdn Bhd acquired a14% stake in
SunInfra, equivalent to 25.48 million shares, at 21 sen a share or RM5.34mil.
Cerah Sama is
55%-owned by Taliworks and
35%-owned by Singapore-based South East Asian Strategic Assets Fund (Seasaf). Filings with Bursa Malaysia showed the stake was acquired on June 2.
According to its website,
Seasaf was launched in March 2006 with a mandate to invest in energy, infrastructure and natural resources sectors in South-East Asia.Its Malaysian investments include
US$8.1mil in International Medical University and
US$29.1mil in Malakoff Corp Bhd. It has also committed to invest a further
US$14.5mil in Metal Reclamation Bhd while it has invested
US$20.4mil in Cerah Sama.
Taliworks currently manages six water treatment plants with a combined design capacity of 1.04 million litres of water per day that serves more than two million people in Selangor, Kuala Lumpur and Langkawi. Through
Cerah Sama subsidiary
Grand Saga Sdn Bhd, it is also the owner and operator of the 11.5km Cheras- Kajang Highway.
The source said through the stake acquisition,
Taliworks hoped to have a more meaningful role in the management of tolled highways in Malaysia and the surrounding region in the years to come.
“Taliworks intends to use
Cerah Sama to build a portfolio of tolled highways in Malaysia and the Asean region and the shareholders have the intention to list Cerah Sama in seven years,” he said.
The acquisition of the SunInfra stake comes on the heels of a failed takeover bid by Infra Bumitek Sdn Bhd, which already owned 65.09 million shares, or 36.16%, of the company that it acquired on Feb 27 for 17 sen per share.
Infra Bumitek had, via a mandatory takeover offer on April 8, offered to acquire the remaining 114.91 million shares, or 63.84%, of SunInfra for 17 sen per share and warrants at 0.01 sen each but shareholders were advised by brokerage PM Securities Sdn Bhd to reject the offer because SunInfra shares had been trading above 17 sen since last October.
Taliworks eyes highway concession business
By FINTAN NG
The Star
PETALING JAYA: Water resources concessionaire
Taliworks Corp Bhd is eyeing a more meaningful role in the highway concession business following its acquisition of a stake in
Sunway Infrastructure Bhd (SunIn fra), the operator and owner of the 37km Kajang SILK Highway. A source with knowledge of the deal said
Cerah Sama Sdn Bhd acquired a14% stake in
SunInfra, equivalent to 25.48 million shares, at 21 sen a share or RM5.34mil.
Cerah Sama is
55%-owned by Taliworks and
35%-owned by Singapore-based South East Asian Strategic Assets Fund (Seasaf). Filings with Bursa Malaysia showed the stake was acquired on June 2.
According to its website,
Seasaf was launched in March 2006 with a mandate to invest in energy, infrastructure and natural resources sectors in South-East Asia.Its Malaysian investments include
US$8.1mil in International Medical University and
US$29.1mil in Malakoff Corp Bhd. It has also committed to invest a further
US$14.5mil in Metal Reclamation Bhd while it has invested
US$20.4mil in Cerah Sama.
Taliworks currently manages six water treatment plants with a combined design capacity of 1.04 million litres of water per day that serves more than two million people in Selangor, Kuala Lumpur and Langkawi. Through
Cerah Sama subsidiary
Grand Saga Sdn Bhd, it is also the owner and operator of the 11.5km Cheras- Kajang Highway.
The source said through the stake acquisition,
Taliworks hoped to have a more meaningful role in the management of tolled highways in Malaysia and the surrounding region in the years to come.
“Taliworks intends to use
Cerah Sama to build a portfolio of tolled highways in Malaysia and the Asean region and the shareholders have the intention to list Cerah Sama in seven years,” he said.
The acquisition of the SunInfra stake comes on the heels of a failed takeover bid by Infra Bumitek Sdn Bhd, which already owned 65.09 million shares, or 36.16%, of the company that it acquired on Feb 27 for 17 sen per share.
Infra Bumitek had, via a mandatory takeover offer on April 8, offered to acquire the remaining 114.91 million shares, or 63.84%, of SunInfra for 17 sen per share and warrants at 0.01 sen each but shareholders were advised by brokerage PM Securities Sdn Bhd to reject the offer because SunInfra shares had been trading above 17 sen since last October.
Vale favours Malaysia for US$1b pellet plant
Vale favours Malaysia for US$1b pellet plant
SINGAPORE: Brazil's Vale favours Malaysia for a US$1 billion (RM3.27 billion) Southeast Asian iron ore pelletizing project, a company official said yesterday."We've been looking at a lot of options in Southeast Asia ... Vietnam, Thailand, Malaysia, but Malaysia has more development options," Renato Hendriksen, marketing manager for Vale, said on the sidelines of the Steel Outlook 2008 conference in Singapore."We are looking of course for political and economic stability, but I think the main issue is a deep-sea port ... natural gas, though not that much, and all the government and financial (systems)."
He added that Vietnam and Thailand had not yet been ruled out. "But discussions are more advanced in Malaysia. If things move well, we could make a decision within the next two years, then maybe one year more for construction." Hendriksen said the plant would have a minimum capacity of seven million tonnes and would supply steel mills in Malaysia and Indonesia and further afield in Asia."We will sell locally for sure, we can even reach the coast of India - they really need pellets there. We can send to our colleagues in Japan, southern China, South Korea - all those countries."
He said the project will also include a deepwater port that could take some of the new breed of Very Large Ore Carriers (VLOC) with tonnages of around 400,000 tonnes.Hendriksen said Vale would commission its own VLOC fleet and hopes to have these vessels after 2013.Vale has already settled annual contracts with Asian buyers at levels around 70 per cent above last year, but Rio Tinto and BHP Billiton, which with Vale dominate the global seaborne iron ore trade, are holding out for more, and have been selling on a spot basis instead. - Reuters
SINGAPORE: Brazil's Vale favours Malaysia for a US$1 billion (RM3.27 billion) Southeast Asian iron ore pelletizing project, a company official said yesterday."We've been looking at a lot of options in Southeast Asia ... Vietnam, Thailand, Malaysia, but Malaysia has more development options," Renato Hendriksen, marketing manager for Vale, said on the sidelines of the Steel Outlook 2008 conference in Singapore."We are looking of course for political and economic stability, but I think the main issue is a deep-sea port ... natural gas, though not that much, and all the government and financial (systems)."
He added that Vietnam and Thailand had not yet been ruled out. "But discussions are more advanced in Malaysia. If things move well, we could make a decision within the next two years, then maybe one year more for construction." Hendriksen said the plant would have a minimum capacity of seven million tonnes and would supply steel mills in Malaysia and Indonesia and further afield in Asia."We will sell locally for sure, we can even reach the coast of India - they really need pellets there. We can send to our colleagues in Japan, southern China, South Korea - all those countries."
He said the project will also include a deepwater port that could take some of the new breed of Very Large Ore Carriers (VLOC) with tonnages of around 400,000 tonnes.Hendriksen said Vale would commission its own VLOC fleet and hopes to have these vessels after 2013.Vale has already settled annual contracts with Asian buyers at levels around 70 per cent above last year, but Rio Tinto and BHP Billiton, which with Vale dominate the global seaborne iron ore trade, are holding out for more, and have been selling on a spot basis instead. - Reuters
Tuesday, June 10, 2008
Second Penang bridge on track, cost may rise
Second Penang bridge on track, cost may rise
By Chong Pooi Koon
Business Times
Published: 2008/06/10
The government has approved an increase in construction cost for the bridge but the mechanism and quantum are still to be worked out, says UEM Builders
UEM BUILDERS Bhd, a contractor for the second Penang bridge, said the project is on track for completion in 2011 and that the government has agreed in principle on a price increase as the cost of raw materials surges."The project value is at RM4.3 billion now. There will be a mechanism to take into consideration price rise and a formula will be worked out," managing director Datuk Ridza Abdoh Salleh said after a shareholder meeting in Kuala Lumpur yesterday.In general, he said, contractors should be allowed to raise project costs as the recent sharp jump in building material prices was far beyond any contractor's projection.While the government said that it may stop certain mega projects in favour of more people-centric programmes, Ridza is positive that the project to build a second link from the mainland to Penang island will continue.
"If you read further on the Second Finance Minister's statement, he said that the Penang bridge may not be affected. We'd like to look at this positively," Ridza said.He said the company has committed over RM200 million on the project and have spent RM50 million so far."As far as we are concerned, the preliminary work is going on. Some 70 per cent to 80 per cent of the land has been cleared and we have also done the advanced soil investigation," he said.
UEM Builders' current order book stands at RM4.8 billion, 35 per cent of which is from overseas. Chairman Datuk Abdul Rahim Abu Bakar said it is aiming for a balanced earnings mix to cut reliance on domestic projects.He said the company hopes to increase its activities in India and the Middle East while it pursues new construction and infrastructure projects in Singapore, Indonesia and Papua New Guinea.
By Chong Pooi Koon
Business Times
Published: 2008/06/10
The government has approved an increase in construction cost for the bridge but the mechanism and quantum are still to be worked out, says UEM Builders
UEM BUILDERS Bhd, a contractor for the second Penang bridge, said the project is on track for completion in 2011 and that the government has agreed in principle on a price increase as the cost of raw materials surges."The project value is at RM4.3 billion now. There will be a mechanism to take into consideration price rise and a formula will be worked out," managing director Datuk Ridza Abdoh Salleh said after a shareholder meeting in Kuala Lumpur yesterday.In general, he said, contractors should be allowed to raise project costs as the recent sharp jump in building material prices was far beyond any contractor's projection.While the government said that it may stop certain mega projects in favour of more people-centric programmes, Ridza is positive that the project to build a second link from the mainland to Penang island will continue.
"If you read further on the Second Finance Minister's statement, he said that the Penang bridge may not be affected. We'd like to look at this positively," Ridza said.He said the company has committed over RM200 million on the project and have spent RM50 million so far."As far as we are concerned, the preliminary work is going on. Some 70 per cent to 80 per cent of the land has been cleared and we have also done the advanced soil investigation," he said.
UEM Builders' current order book stands at RM4.8 billion, 35 per cent of which is from overseas. Chairman Datuk Abdul Rahim Abu Bakar said it is aiming for a balanced earnings mix to cut reliance on domestic projects.He said the company hopes to increase its activities in India and the Middle East while it pursues new construction and infrastructure projects in Singapore, Indonesia and Papua New Guinea.
Monday, June 9, 2008
Airports make different plans for different needs
Airports make different plans for different needs
Business Times
Published: 2008/06/09
THE sky above Asia is no longer dominated by government-backed airlines as more people are jetting point-to-point with affordable flights served by low-cost carriers (LCCs).According to the Centre for Asia-Pacific Aviation, LCCs now account for some 10 per cent of airline capacity in the region, up from just one per cent six years ago.In fact, the LCC fleet in the Asia-Pacific is poised to almost triple to 1,000 planes by 2020.
The changing face of air travel means that airport operators must also adjust their facilities and services accordingly. Airport operators now have to contend with both full-service airlines and LCCs.Balancing their needs was one of the issues highlighted at the recently concluded third Airport Council International (ACI) Asia-Pacific Regional Conference and Exhibition, held in Australia.Some 250 airport operators and industry partners converged at the 100,000-population seaside town of Cairns in Queensland to discuss issues affecting the industry and brainstorm ways to build growth and sustainable markets.Many shared the view that different airports require different strategies.
Malaysia Airports Holdings Bhd (MAHB) managing director Datuk Seri Bashir Ahmad said that different airlines have different expectations of airport operators. Speaking at a discussion panel on "Infrastructure Development for Airports - Balancing Low Cost with Full Service", Bashir said that LCCs want airports to adapt to their operational requirements and support their business model, and that they expect free or minimum charges and high incentives.If the LCCs were the ones initially to change the rules of the game in the air travel industry, the full-service carriers are now adjusting their business models in response to the challenges that have surfaced.Bashir observed that the business models of all airlines, full-service as well as low-cost, are changing.He said full-service carriers have taken to offering low fares, while LCCs are venturing into long-haul services."So, it is important for airports to acknowledge this evolution and adapt to the changing requirements of these carriers," Bashir said.Even if an airport has a dedicated LCC terminal (LCCT), it does not mean that all LCCs will use it.Jetstar Airways, for instance, prefers to use the full-service terminal at the KL International Airport in Sepang."Similarly, up to now, AirAsia does not operate at Singapore's LCCT," Bashir said.MAHB manages and operates 39 airports in Malaysia, out of which five are international. It also has operations in Kazakhstan, India and Turkey.
Another speaker, Sydney Airport associate director (Macquarie Airports) Shelley Roberts, said that Macquarie has different strategies for different airports.It manages Sydney, Copenhagen, Brussel and Bristol airports, among others.
Meanwhile, Cairns airport, which is being upgraded, is adopting a common-use concept.Cairns airport executive general manager Kayleen Collins said the airport is building the most efficient terminal space for all carriers.According to Collins, LCCs contribute 18 per cent of domestic and 26 per cent of international passengers at the Cairns airport."The preferred option is to build the most efficient terminal space for all carriers."We balance demands of low-cost and full-service through cost- effective design of the airport," she said, adding that the LCCs and full-service carriers have to share all the facilities at the airport.
Business Times
Published: 2008/06/09
THE sky above Asia is no longer dominated by government-backed airlines as more people are jetting point-to-point with affordable flights served by low-cost carriers (LCCs).According to the Centre for Asia-Pacific Aviation, LCCs now account for some 10 per cent of airline capacity in the region, up from just one per cent six years ago.In fact, the LCC fleet in the Asia-Pacific is poised to almost triple to 1,000 planes by 2020.
The changing face of air travel means that airport operators must also adjust their facilities and services accordingly. Airport operators now have to contend with both full-service airlines and LCCs.Balancing their needs was one of the issues highlighted at the recently concluded third Airport Council International (ACI) Asia-Pacific Regional Conference and Exhibition, held in Australia.Some 250 airport operators and industry partners converged at the 100,000-population seaside town of Cairns in Queensland to discuss issues affecting the industry and brainstorm ways to build growth and sustainable markets.Many shared the view that different airports require different strategies.
Malaysia Airports Holdings Bhd (MAHB) managing director Datuk Seri Bashir Ahmad said that different airlines have different expectations of airport operators. Speaking at a discussion panel on "Infrastructure Development for Airports - Balancing Low Cost with Full Service", Bashir said that LCCs want airports to adapt to their operational requirements and support their business model, and that they expect free or minimum charges and high incentives.If the LCCs were the ones initially to change the rules of the game in the air travel industry, the full-service carriers are now adjusting their business models in response to the challenges that have surfaced.Bashir observed that the business models of all airlines, full-service as well as low-cost, are changing.He said full-service carriers have taken to offering low fares, while LCCs are venturing into long-haul services."So, it is important for airports to acknowledge this evolution and adapt to the changing requirements of these carriers," Bashir said.Even if an airport has a dedicated LCC terminal (LCCT), it does not mean that all LCCs will use it.Jetstar Airways, for instance, prefers to use the full-service terminal at the KL International Airport in Sepang."Similarly, up to now, AirAsia does not operate at Singapore's LCCT," Bashir said.MAHB manages and operates 39 airports in Malaysia, out of which five are international. It also has operations in Kazakhstan, India and Turkey.
Another speaker, Sydney Airport associate director (Macquarie Airports) Shelley Roberts, said that Macquarie has different strategies for different airports.It manages Sydney, Copenhagen, Brussel and Bristol airports, among others.
Meanwhile, Cairns airport, which is being upgraded, is adopting a common-use concept.Cairns airport executive general manager Kayleen Collins said the airport is building the most efficient terminal space for all carriers.According to Collins, LCCs contribute 18 per cent of domestic and 26 per cent of international passengers at the Cairns airport."The preferred option is to build the most efficient terminal space for all carriers."We balance demands of low-cost and full-service through cost- effective design of the airport," she said, adding that the LCCs and full-service carriers have to share all the facilities at the airport.
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