Tuesday June 2, 2009
By JACK WONG
KUCHING: Construction company Naim Holdings Bhd is eyeing major infrastructure and property development projects in Sarawak Corridor of Renewable Energy (SCORE). Senior vice-president/director Ahmad Abu Bakar said Naim was in talks with state agencies and other interested parties on several development proposals within SCORE. “However, discussions are still at the preliminary stage,” he told StarBiz.
SCORE will be driven by the development of Sarawak’s abundant hydro and coal resources to generate electricity to power energy-intensive industries, like alunimium smelters, to be set up with the regional economic development belt.
Sarawak is now building the proposed Murum dam – which could generate about 900MW - in the upper Rejang Basin in central Sarawak. Murum is located upstream of the on-going Bakun hydroelectric dam project capable of generating up to 2,400MW.
Several other hydro dam projects have also been planned in the upper reaches of the Rejang River.
To provide accessibility to these proposed dam sites, Sarawak Second Finance Minister Datuk Wong Soon Koh said recently that six major road projects, with a combined length of 403km, within SCORE would be built. The design for the access road from Jalan Bakun extended to Murum has been completed while other proposed access roads are still being designed.
Meanwhile, Naim was close to securing two road projects worth RM250mil in Sarawak, said Ahmad. The projects are funded by the federal government under the stimulus package. e said Naim had an outstanding net order book of RM2.5bil that could keep the group busy in the next five years.
Its ongoing projects include a RM630mil contract from Syarikat Perumahan Negara Sdn Bhd to build some 5,000 residential homes in Kuching (average RM126,000 per house - blogger) , Samarahan and Miri divisions, the RM310mil Bengoh dam near here, RM150mil phase one, Kuching flood mitigation project in Matang (the entire project is estimated to cost RM1.6bil), a RM188mil road project in Sibu and the proposed RM90mil Sarawak Islamic Centre project here.
Ahmad said Naim sold 633 houses and shophouses worth RM165mil last year. For the 2009 first quarter, it raked in some RM26mil from the sales of 103 such properties. Our target this year is to sell 800 units, 80% of them residential homes. Unsold houses (mostly high end), commerical units and detached lots are worth about RM20mil,’’ he said, adding that the company was carrying out various promotion activities to attract buyers.
Ahmad said Naim would save at least RM5mil this year through a series of cost-cutting measures introduced last year. Naim posted a group net profit of RM83mil on a turnover of RM524mil for the financial year ended Dec 31, 2008 compared with RM80mil and RM646mil respectively in 2007. For the first quarter ended March 31, Naim chalked up a group net profit of RM17mil on revenue of RM95mil. Naim’s 36%-owned Dayang Enterprise Holdings Bhd contributed RM22mil in net profit to the group last year.
Showing posts with label stimulus. Show all posts
Showing posts with label stimulus. Show all posts
Tuesday, June 2, 2009
Tuesday, May 5, 2009
Major construction projects awaiting government decision
4/5/2009 The Star
Edited
THERE is urgency for a heightened pace of construction works flowing to keep at least one economic component pumping hard. With a new Cabinet line-up and by-elections (almost) out-of-the-way, we anticipate a refocus on development priorities.
Of the RM7bil first fiscal stimulus unveiled in November, only RM2.4bil worth of projects was awarded as at April 17. Of this, RM350mil has been spent; the balance is still “work-in-progress”.
Plans are for a total RM5.2bil worth of projects to be awarded by June, and a full roll-out of RM7bil (38,000 projects) by August. Of the RM7bil first fiscal stimulus, we estimate the construction component to be RM4.6bil.
As for the RM60bil mini-Budget unveiled in March, RM15bil is fiscal allocation (RM10bil development, RM5bil operating), direct from the government’s coffers. The RM60bil mini-Budget offers RM11bil worth of works; the largest being the RM2bil LCCT, KLIA.
The 9MP, too, is not forgotten. Of the RM230bil 9MP allocation for development for 2006-2010, only RM119bil has been spent as at end-2008, implying a potential RM111bil spending over 2009-2010 assuming the RM230bil is maintained.
For 2009, government’s gross development spending was projected at RM56.7bil (2008: RM42.8bil) before imputing the stimulus allocations. Including the second fiscal stimulus package, this would reach RM60bil in 2010.
We expect a heightened pace of construction tenders and awards from mid-2009. Major projects awaiting decisions are the Pahang-Selangor water transfer (decided oredi May 2009, Shimizu-Nishimatsu-IJM-UEM consortium awarded the job - Ed) and Klang Valley LRT system. The government has clearly no problem in fund raising, without the distraction of a banking crisis, as in 1998.
Year-to-date, RM30.5bil worth of MGS-GIS has been issued, out of a total RM95bil estimated for 2009. Of the RM95bil, RM42bil is for refinancing while the balance RM53bil is new financing.
The RM30.5bil issued is already more than half of the official projected budget deficit of RM53.8bil for 2009. This should be sufficient for the immediate roll-out of construction packages.
More focus on east Malaysia
Higher allocations under the 9MP and second fiscal stimulus, and the new Cabinet line-up imply “urgency” for more infrastructure development in Sabah and Sarawak.
Of the RM10bil development allocation under the RM60bil mini-Budget, Sarawak has the highest allocation of RM1.2bil while Sabah’s allocation was the sixth largest. Sarawak Corridor of Renewable Energy (Score) and Sabah Development Corridor remain very relevant and we expect more construction works in Sabah and Sarawak.
We expect more positive news flow benefiting construction by mid-2009, with more mid-sized contracts of less than RM500mil each to lead the momentum for construction.
Top on the list of potential beneficiaries are contractors with long experience, excellent delivery track records and strong balance sheets to carry the weight of a turnkey contractor.
Our top picks for contractors of mid-sized projects are WCT and IJM Corp, which we upgraded to “buy” last week. Increasing momentum of works at Sarawak should benefit home-grown contractors like Hock Seng Lee (HSL) and Naim Cendera.We expect HSL, (outstanding order book of RM1.27bil), to record strong earnings growth in 2009 (+>20% year-on-year), while further job wins should sustain earnings into 2010.We upgrade HSL to a “buy”.
We also expect Loh & Loh to gain from water- and energy-related works under Score.
WCT and IJM Corp, which have built up good track records, could benefit in Sabah.
Gamuda remains known for its construction ability in mega projects – SSP3 in 1999 and SMART in 2002 - and we think Gamuda may play a lead role in the Klang Valley LRT works.
However, it is a little early to review our “hold” call on the stock.
Our TP is raised after removing a 20% discount to our unchanged RNAV of RM2.50/sh.
Edited
THERE is urgency for a heightened pace of construction works flowing to keep at least one economic component pumping hard. With a new Cabinet line-up and by-elections (almost) out-of-the-way, we anticipate a refocus on development priorities.
Of the RM7bil first fiscal stimulus unveiled in November, only RM2.4bil worth of projects was awarded as at April 17. Of this, RM350mil has been spent; the balance is still “work-in-progress”.
Plans are for a total RM5.2bil worth of projects to be awarded by June, and a full roll-out of RM7bil (38,000 projects) by August. Of the RM7bil first fiscal stimulus, we estimate the construction component to be RM4.6bil.
As for the RM60bil mini-Budget unveiled in March, RM15bil is fiscal allocation (RM10bil development, RM5bil operating), direct from the government’s coffers. The RM60bil mini-Budget offers RM11bil worth of works; the largest being the RM2bil LCCT, KLIA.
The 9MP, too, is not forgotten. Of the RM230bil 9MP allocation for development for 2006-2010, only RM119bil has been spent as at end-2008, implying a potential RM111bil spending over 2009-2010 assuming the RM230bil is maintained.
For 2009, government’s gross development spending was projected at RM56.7bil (2008: RM42.8bil) before imputing the stimulus allocations. Including the second fiscal stimulus package, this would reach RM60bil in 2010.
We expect a heightened pace of construction tenders and awards from mid-2009. Major projects awaiting decisions are the Pahang-Selangor water transfer (decided oredi May 2009, Shimizu-Nishimatsu-IJM-UEM consortium awarded the job - Ed) and Klang Valley LRT system. The government has clearly no problem in fund raising, without the distraction of a banking crisis, as in 1998.
Year-to-date, RM30.5bil worth of MGS-GIS has been issued, out of a total RM95bil estimated for 2009. Of the RM95bil, RM42bil is for refinancing while the balance RM53bil is new financing.
The RM30.5bil issued is already more than half of the official projected budget deficit of RM53.8bil for 2009. This should be sufficient for the immediate roll-out of construction packages.
More focus on east Malaysia
Higher allocations under the 9MP and second fiscal stimulus, and the new Cabinet line-up imply “urgency” for more infrastructure development in Sabah and Sarawak.
Of the RM10bil development allocation under the RM60bil mini-Budget, Sarawak has the highest allocation of RM1.2bil while Sabah’s allocation was the sixth largest. Sarawak Corridor of Renewable Energy (Score) and Sabah Development Corridor remain very relevant and we expect more construction works in Sabah and Sarawak.
We expect more positive news flow benefiting construction by mid-2009, with more mid-sized contracts of less than RM500mil each to lead the momentum for construction.
Top on the list of potential beneficiaries are contractors with long experience, excellent delivery track records and strong balance sheets to carry the weight of a turnkey contractor.
Our top picks for contractors of mid-sized projects are WCT and IJM Corp, which we upgraded to “buy” last week. Increasing momentum of works at Sarawak should benefit home-grown contractors like Hock Seng Lee (HSL) and Naim Cendera.We expect HSL, (outstanding order book of RM1.27bil), to record strong earnings growth in 2009 (+>20% year-on-year), while further job wins should sustain earnings into 2010.We upgrade HSL to a “buy”.
We also expect Loh & Loh to gain from water- and energy-related works under Score.
WCT and IJM Corp, which have built up good track records, could benefit in Sabah.
Gamuda remains known for its construction ability in mega projects – SSP3 in 1999 and SMART in 2002 - and we think Gamuda may play a lead role in the Klang Valley LRT works.
However, it is a little early to review our “hold” call on the stock.
Our TP is raised after removing a 20% discount to our unchanged RNAV of RM2.50/sh.
Monday, April 13, 2009
Contractors awarded jobs worth RM1.4b
Friday April 10, 2009
Contractors awarded jobs worth RM1.4bil
Government provides details of stimulus packages on Internet
PUTRAJAYA: The Government has todate awarded contractors RM1.39bil worth of projects planned under the second economic stimulus package, according to the its newly launched website www.rangsanganekonomi.treasury.gov.my.
Of the RM60bil package tabled in Parliament on March 10, only RM15bil was actual extra fiscal spending by the Government.
Of this amount, the Education Ministry gets the biggest chunk – RM2.09bil.
Meanwhile, a total of RM5.59bil of the RM7bil allocated under the first stimulus package announced on Nov 4 last year, had been disbursed as at April 2. All 38,000 projects under the first package would be rolled out by the end of this month, the website said.
“The website carries a comprehensive breakdown of allocations, progress reports on spending and current status of all projects under the two economic stimulus packages,’’ said Datuk Mohamad Othman Zainal Azim, chief oper ating officer at the Finance Ministry’s project management unit (PMU).“The English version of the website will be available next week,” he told reporters at a briefing yesterday.The PMU together with the Prime Minister Department’s implementation coordination unit (ICU) and other relevant agencies have been tasked to monitor the progress of the economic stimulus packages.Othman said the website would be regularly updated, at least once a week. Feedback and queries from the public were welcomed, he said.
Contractors awarded jobs worth RM1.4bil
Government provides details of stimulus packages on Internet
PUTRAJAYA: The Government has todate awarded contractors RM1.39bil worth of projects planned under the second economic stimulus package, according to the its newly launched website www.rangsanganekonomi.treasury.gov.my.
Of the RM60bil package tabled in Parliament on March 10, only RM15bil was actual extra fiscal spending by the Government.
Of this amount, the Education Ministry gets the biggest chunk – RM2.09bil.
Meanwhile, a total of RM5.59bil of the RM7bil allocated under the first stimulus package announced on Nov 4 last year, had been disbursed as at April 2. All 38,000 projects under the first package would be rolled out by the end of this month, the website said.
“The website carries a comprehensive breakdown of allocations, progress reports on spending and current status of all projects under the two economic stimulus packages,’’ said Datuk Mohamad Othman Zainal Azim, chief oper ating officer at the Finance Ministry’s project management unit (PMU).“The English version of the website will be available next week,” he told reporters at a briefing yesterday.The PMU together with the Prime Minister Department’s implementation coordination unit (ICU) and other relevant agencies have been tasked to monitor the progress of the economic stimulus packages.Othman said the website would be regularly updated, at least once a week. Feedback and queries from the public were welcomed, he said.
Monday, December 22, 2008
Tenders to extend RapidKL LRT may be out in Q1
Tenders to extend RapidKL LRT may be out in Q1
By Sharen Kaur
Published: 2008/12/22
Key players like UEM Builders, IJM Corp, YTL Corp, Ho Hup Holdings, and Loh & Loh Construction are expected to bid
SYARIKAT Prasarana Negara Bhd (SPNB), a unit of the Ministry of Finance Inc, may call for tenders to extend the RapidKL Light Rail Transit (LRT) system by as early as the first quarter of next year. The LRT covers two lines, namely the Ampang Line (previously, Star LRT) and Kelana Jaya Line (formerly Putra LRT). The assets are own ed by SPNB.
The tenders, worth over RM1 billion, is for
track and civil works,
fare collection, and
systems work involving
power supply,
signaling and
communication, industry players said.
Under the plan, the Ampang line will be extended from Bukit Jalil to Puchong, heading towards Subang Jaya, and linking up to the Kelana Jaya line.
The extension will involve
32km of double track and
around 24 new stations, a source said.
Currently, the Ampang Line runs from Ampang to the city centre, and then from Sentul Timur towards the National Sports Complex in Bukit Jalil, while the Kelana Jaya Line starts from Terminal Putra Gombak up until Kelana Jaya."The extension will allow for a more complete integrated rail network.
The project may be government-funded or implemented through private finance initiatives," the source added.
Key players like UEM Builders Bhd, IJM Corp Bhd, YTL Corp Bhd, Ho Hup Holdings Bhd, and Loh & Loh Construction Bhd are expected to bid.
It is learned that low-profile railway engineering firm Global Rail Sdn Bhd will make submissions for the systems work, in collaboration with its foreign technology partners. It is eyeing a portion which is worth RM80 million.
The government is also expected to pump prime part of the RM500 million allocation under the RM7 billion economic stimulus package announced by Deputy Prime Minister Datuk Seri Najib Razak on November 4, to kick-start the project.The allocation will also cover KTM Bhd's requirement for new three-car electronic multiple unit sets to cater for the Klang Valley. KTMB has 60 sets now, but only half can be used. It needs 112 sets."Tenders for the train sets are under evaluation as the government is looking at an option to lease the trains to reduce its capital investment on the assets," the source said.The tenders or lease options will attract manufacturers from Korea, China, Japan and Europe.
By Sharen Kaur
Published: 2008/12/22
Key players like UEM Builders, IJM Corp, YTL Corp, Ho Hup Holdings, and Loh & Loh Construction are expected to bid
SYARIKAT Prasarana Negara Bhd (SPNB), a unit of the Ministry of Finance Inc, may call for tenders to extend the RapidKL Light Rail Transit (LRT) system by as early as the first quarter of next year. The LRT covers two lines, namely the Ampang Line (previously, Star LRT) and Kelana Jaya Line (formerly Putra LRT). The assets are own ed by SPNB.
The tenders, worth over RM1 billion, is for
track and civil works,
fare collection, and
systems work involving
power supply,
signaling and
communication, industry players said.
Under the plan, the Ampang line will be extended from Bukit Jalil to Puchong, heading towards Subang Jaya, and linking up to the Kelana Jaya line.
The extension will involve
32km of double track and
around 24 new stations, a source said.
Currently, the Ampang Line runs from Ampang to the city centre, and then from Sentul Timur towards the National Sports Complex in Bukit Jalil, while the Kelana Jaya Line starts from Terminal Putra Gombak up until Kelana Jaya."The extension will allow for a more complete integrated rail network.
The project may be government-funded or implemented through private finance initiatives," the source added.
Key players like UEM Builders Bhd, IJM Corp Bhd, YTL Corp Bhd, Ho Hup Holdings Bhd, and Loh & Loh Construction Bhd are expected to bid.
It is learned that low-profile railway engineering firm Global Rail Sdn Bhd will make submissions for the systems work, in collaboration with its foreign technology partners. It is eyeing a portion which is worth RM80 million.
The government is also expected to pump prime part of the RM500 million allocation under the RM7 billion economic stimulus package announced by Deputy Prime Minister Datuk Seri Najib Razak on November 4, to kick-start the project.The allocation will also cover KTM Bhd's requirement for new three-car electronic multiple unit sets to cater for the Klang Valley. KTMB has 60 sets now, but only half can be used. It needs 112 sets."Tenders for the train sets are under evaluation as the government is looking at an option to lease the trains to reduce its capital investment on the assets," the source said.The tenders or lease options will attract manufacturers from Korea, China, Japan and Europe.
Tuesday, November 25, 2008
Malaysia to start giving out RM600m jobs soon
Published: 2008/11/25
BT
By March 2009, about 80 to 90 per cent of the people-centric infrastructure projects will have been awarded to contractors, says the Implementation Coordination Unit
THE government will, from next month, start awarding to contractors RM600 million worth of small infrastructure projects identified under the RM7 billion economic stimulus package.Tan Sri Khalid Ramli, director-general of the Implementation Coordination Unit (ICU), said the projects are people-centric, involving the building of basic infrastructure such as roads, jetties and drains.As such, he said, it is vital that they be implemented immediately."Speed is of the essence. You're talking about stimulating domestic growth, so it's very urgent that the projects are implemented fast.
"I'm determined to see part of this RM600 million kick off in December," Khalid said in an interview yesterday.He anticipates that by March next year, about 80 to 90 per cent of these projects would have been awarded to contractors.The ICU, which falls under the Prime Minister's Department, has specifically been tasked to ensure implementation of these projects."We're talking about a vigorous pace of implementation. So perhaps after December, January, February, all these projects must be awarded by this time. Then only you get the effect," he said.Projects will be awarded in several ways, including procurements, tenders and quotations, he added.
BT
By March 2009, about 80 to 90 per cent of the people-centric infrastructure projects will have been awarded to contractors, says the Implementation Coordination Unit
THE government will, from next month, start awarding to contractors RM600 million worth of small infrastructure projects identified under the RM7 billion economic stimulus package.Tan Sri Khalid Ramli, director-general of the Implementation Coordination Unit (ICU), said the projects are people-centric, involving the building of basic infrastructure such as roads, jetties and drains.As such, he said, it is vital that they be implemented immediately."Speed is of the essence. You're talking about stimulating domestic growth, so it's very urgent that the projects are implemented fast.
"I'm determined to see part of this RM600 million kick off in December," Khalid said in an interview yesterday.He anticipates that by March next year, about 80 to 90 per cent of these projects would have been awarded to contractors.The ICU, which falls under the Prime Minister's Department, has specifically been tasked to ensure implementation of these projects."We're talking about a vigorous pace of implementation. So perhaps after December, January, February, all these projects must be awarded by this time. Then only you get the effect," he said.Projects will be awarded in several ways, including procurements, tenders and quotations, he added.
Malaysia to start giving out RM600m jobs soon
Published: 2008/11/25
BT
By March 2009, about 80 to 90 per cent of the people-centric infrastructure projects will have been awarded to contractors, says the Implementation Coordination Unit
THE government will, from next month, start awarding to contractors RM600 million worth of small infrastructure projects identified under the RM7 billion economic stimulus package.Tan Sri Khalid Ramli, director-general of the Implementation Coordination Unit (ICU), said the projects are people-centric, involving the building of basic infrastructure such as roads, jetties and drains.As such, he said, it is vital that they be implemented immediately."Speed is of the essence. You're talking about stimulating domestic growth, so it's very urgent that the projects are implemented fast.
"I'm determined to see part of this RM600 million kick off in December," Khalid said in an interview yesterday.He anticipates that by March next year, about 80 to 90 per cent of these projects would have been awarded to contractors.The ICU, which falls under the Prime Minister's Department, has specifically been tasked to ensure implementation of these projects."We're talking about a vigorous pace of implementation. So perhaps after December, January, February, all these projects must be awarded by this time. Then only you get the effect," he said.Projects will be awarded in several ways, including procurements, tenders and quotations, he added.
BT
By March 2009, about 80 to 90 per cent of the people-centric infrastructure projects will have been awarded to contractors, says the Implementation Coordination Unit
THE government will, from next month, start awarding to contractors RM600 million worth of small infrastructure projects identified under the RM7 billion economic stimulus package.Tan Sri Khalid Ramli, director-general of the Implementation Coordination Unit (ICU), said the projects are people-centric, involving the building of basic infrastructure such as roads, jetties and drains.As such, he said, it is vital that they be implemented immediately."Speed is of the essence. You're talking about stimulating domestic growth, so it's very urgent that the projects are implemented fast.
"I'm determined to see part of this RM600 million kick off in December," Khalid said in an interview yesterday.He anticipates that by March next year, about 80 to 90 per cent of these projects would have been awarded to contractors.The ICU, which falls under the Prime Minister's Department, has specifically been tasked to ensure implementation of these projects."We're talking about a vigorous pace of implementation. So perhaps after December, January, February, all these projects must be awarded by this time. Then only you get the effect," he said.Projects will be awarded in several ways, including procurements, tenders and quotations, he added.
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