KUALA LUMPUR ― Zhejiang Geely Holdings Group’s purchase of a stake in Proton Holdings Bhd is proving to be highly positive as the national car manufacturer will now be able to tap into advanced auto technology given the Chinese group’s acquisition of Mercedes Benz owner Daimler AG just last month.
There is now the looming prospect of sharing electrical car technologies since Proton has become part of a potentially lucrative and technologically-advanced auto group.
This includes international brands such as Daimler, Mercedes Benz, Volvo cars and trucks, Lotus as well as London Taxi Cabs.
Geely bought Daimler as it is racing to build electric cars to meet tough Chinese emission standards and produce energy-efficient cars.
Continue reading “Proton set to share advanced technologies from Geely’s involvement”
Moody’s Investors Service says its six rated Malaysian banks showed solid performance in 2017, with additional improvements likely in some areas in 2018.
Moody’s Vice President and Senior Analyst, Simon Chen, said the asset quality and profitability of the six banks generally improved in 2017, while capitalisation and funding remained accommodative.
“We expect loan demand to recover further in 2018, strengthening profitability, but also tightening funding conditions.
“As a result, profit growth among banks with weaker deposit franchises could be limited by higher funding costs,” he said in a statement today on its report titled, “Banks — Malaysia: 2017 Sees Asset Quality Stabilise, Profits Improve”.
Continue reading “Malaysian banking sector to continue showing growth in 2018, says Moody’s”
Many questions arise on the departmental store operator, Parkson Holdings Bhd’s growth strategy due to its decision to close a number of stores in recent weeks in Malaysia and around the region .
For example, the Sungei Wang Plaza outlet located in downtown Kuala Lumpur was the latest store to be closed, which shut down on Feb 26. Parkson had had a presence there for about 30 years.
Just early last month, the Maju Junction store was shut down.
According to The Star, the company spokesperson said the mall visitors to Plaza Sungei Wang were no longer aligned with the market that they were seeking.
“The customer profile (in Sungei Wang) has changed,” the spokesperson told StarBiz.
Continue reading “Closing down few stores, Parkson outlines mall strategy”
DRB-Hicom Bhd, a diversified group, plans to swap its large portion of non-industrial property assets and its entire hospitality portfolio for industrial land in Tebrau, Johor, in a deal worth RM1.93 billion.
The group, with its controlling shareholder Tan Sri Syed Mokhtar al-Bukhary said in a statement on March 8 that the disposal was part of an exercise to set a new direction for its property business.
According to The Star, the plan to sell its non-industrial land assets and exit the hospitality industry, and acquire a sizeable industrial land in Johor is a move to take advantage of its experience in the development industrial properties.
Under the initiative, the group would sell several subsidiaries, owning some 2,268.43 acres of land, as well as its entire equity in Horsedale Development Bhd and Rebak Island Marina Bhd to Prisma Dimensi Sdn Bhd (PDSB) for RM1.93 billion.
Continue reading “DRB-Hicom sells real estate assets for industrial land in Tebrau”
A rally in Asian equities looked set to prolong into a third week after US stocks posted strong gains and Treasury yields dipped with US monetary policy back in focus in a week that includes two appearances from Federal Reserve Chairman Jerome Powell. The yen dropped.
Futures in Japan, Australia and Hong Kong all signaled equities will rise when Monday trading starts after the S&P 500 Index rose 1.6 per cent Friday.
Powell will address the House Financial Services Committee tomorrow and the Senate Banking Committee two days later to give his Humphrey-Hawkins testimony.
Bond traders are pricing less than the three quarter-point rate hikes that Fed officials havesignalled as likely this year.
Continue reading “Stocks set to rally as bond yields dip, Powell to signal direction of rate hikes in the US”
Oil prices prolonged gains to hit two-week highs on Monday, supported by comments from Saudi Arabia that it would continue to curb exports in line with the OPEC-led effort to cut global supplies.
U.S. West Texas Intermediate crude for April delivery was up 25 cents, or 0.4 percent, at $63.80 a barrel by 0301 GMT after rising 3 percent last week.
London Brent crude gained 13 cents, or 0.2 percent, to $67.44, after climbing nearly 4 percent last week.
Both benchmarks earlier hit their highest since Feb. 7.
Continue reading “Saudi Arabia maintains oil export cuts as oil hits a 2 week high”
Mexico and Canada are planning to revise lesser contentious chapters of the NAFTA trade deal with the United States , hoping to clear the path for a deal on the toughest issues before upcoming elections.
Ranging from calls for major changes to automotive content rules and dispute resolution mechanisms, to imposing a clause that could automatically kill NAFTA after five years, the chief stumbling blocks laid by the White House look unlikely to be removed in the latest Mexico City round, officials said.
Trump has said it many times that US would withdraw from NAFTA unless big changes are made to a pact he blames for U.S. manufacturing job losses.
“I think there’s going to be major progress on the technical issues and major obstacles on the critical issues,” Bosco de la Vega, head of the Mexico’s National Agricultural Council farm lobby, said of the talks running until March 5.
Continue reading “Mexico and Canada try to overcome impasse in NAFTA talks”
The politically-linked stocks have started to show signs of strength on the back of election fever heating up, despite the volatility of the global market, reported by The Star.
With the Dow Jones’ sharp correction in the last two weeks even with the fact that most stocks have fallen, it might be a good idea to start positioning oneself in stocks that are deemed beneficiaries of the ruling government.
The first stock to detect is MyEG Services Bhd as the company which started out as a government concession has now seemed to offer every service under the sun – plus, political connection is one thing.
Currently, commercial services, not government concessions, contribute 70 per cent to its bottom line.
Continue reading “Politically-linked stocks show signs of strength on the election fever”
Takata Corp’s U.S. unit has reached a settlement with its creditors, lawyers for victims injured by its deadly air bags and automakers that paves the way to end its Chapter 11 bankruptcy and sell its viable operations, according to court papers.
The Japanese company’s air bags can explode with too much force and have been linked to at least 21 deaths and hundreds of injuries, prompting the largest recall in automotive history and forcing Takata and its U.S. unit, TK Holdings Inc, into bankruptcy.
The U.S. unit was gearing up for a court fight starting on Tuesday to get approval for its plan to exit bankruptcy over the opposition of a committee for injured drivers and a separate committee of unsecured creditors.
But those two committees, automakers and Key Safety Systems, which is acquiring the viable business lines of Takata, reached a deal that resolves the biggest objections to the plan, according to court documents sighted on Saturday.
Continue reading “Takata, injured drivers reach deal to end U.S. bankruptcy and sell viable operations”
Speculation as to Malaysia’s future economic priorities have frequently focused on the country’s oil and gas reserves, palm oil production, high-tech manufacturing, real estate and, of course, tourism.
While its potential strengths in the hydropower sector have remained largely overlooked, two high-profile dam projects may be about to change all that, with Sarawak’s long-mooted Corridor of Renewable Energy now set to become a reality.
Last month, Sarawak Energy Berhad, the power generation company owned and operated by the state government of Sarawak, completed its purchase of the 2,400 mW Bakun Dam from Malaysia’s Ministry of Finance.
The company paid RM2.5 billion in cash, with a further RM6 billion in loan facilities, to take possession of one of Southeast Asia’s most significant – and controversial – power projects. Work on the dam was originally completed in 2010, but the site didn’t come fully online until July 2014.
Continue reading “Malaysia steps up the gas on hydropower”