DOCSLIB.ORG

POSITIVE [Upgrade]

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
POSITIVE [Upgrade] January 14, 2020 Malaysia Construction POSITIVE [Upgrade] Improving optics Analyst U/G to POSITIVE Near-term sector re-rating catalyst would be the formalization of the Adrian Wong, CFA PTMP PDP agreement, allowing the Bayan Lepas LRT to officially roll-out. (603) 2297 8675 Job awards are also expected to gradually pick up in 2020 with the ECRL [email protected] subcontracting works in focus. While the KL-SG HSR and KVMRT 3 remain wildcards at this juncture, any announcement of their revival in 2020 will excite the market. We are upbeat on the sector’s outlook in 2020; U/G to POSITIVE with Gamuda as our preferred BUY pick. 2020: Job awards to pick up Construction We expect the value of new job awards to gradually pick up in 2020 with the ECRL subcontracting packages in focus. With the 3-month long public display of the realignment of the Kota Bahru-Dungun stretch set to complete by Feb 2020, we believe tenders for the subcontracting civil work packages could start by 2Q20 with awards in 2H20. We also expect awards of the remaining packages from the on-going projects in East Malaysia such as the Pan Borneo Sabah Highway, Sarawak Coastal and Second Link Road (details of projects in Fig 9) in 2020. Malaysia 2020: PTMP close to fruition The Penang State Government had, in Oct 2019, received a Federal Government Guarantee to raise bonds to fund the Bayan Lepas LRT (e.MYR8b), which will expedite the start of the Penang Transport Master Plan (PTMP) project. Assuming the Project Delivery Partner (PDP) agreement is finalized within 1Q20, we could see the first awards by end- 2020. An official start for the PTMP could re-rate the sector with Gamuda as an early beneficiary. We see earnings upside potential for Gamuda, pending finalization of SRS Consortium’s PDP agreement (Gamuda has a 60% stake in SRS Consortium). Sector BUY picks In the near term, finalization of the PTMP’s PDP details and securing the necessary bond funding to kick start the PTMP’s Bayan Lepas LRT project could present the sector with a re-rating catalyst. Gamuda (GAM MK; U/G to BUY) is our preferred sector pick as an early beneficiary of the PTMP. We also like Sunway Construction (SCGB MK; U/G to BUY) for its strong replenishment pipeline, supported by in-house development projects from its parent, Sunway Berhad (SWB MK; HOLD; TP: MYR1.74). CMS (CMS MK; maintain BUY) remains a proxy to development activities in Sarawak as the State heads for a State Election before Sep 2021. Stock Bloomberg Mkt cap Rating Price TP Upside P/E (x) P/B (x) Div yld (%) code (USD'm) (LC) (LC) (%) 19E 20E 19E 20E 19E 20E Gamuda GAM MK 2,424 Buy 3.99 4.50 16 12.7 13.6 1.1 1.2 3.2 3.0 IJM Corp IJM MK 1,991 Hold 2.23 2.10 (3) 20.4 20.7 0.8 0.8 1.8 2.7 Lingkaran Trans Kota LTK MK 613 Buy 4.70 5.21 11 9.4 9.5 2.4 2.3 5.9 5.3 Cahya Mata S. CMS MK 606 Buy 2.30 2.85 26 12.8 11.8 0.9 0.9 2.4 2.6 Sunway Const'n SCGB MK 574 Buy 1.81 2.05 17 17.5 15.1 3.7 3.3 3.9 3.9 Hock Seng Lee HSL MK 179 Hold 1.33 1.40 7 12.0 11.2 0.9 0.8 1.8 1.8 Kimlun KICB MK 103 Buy 1.23 1.50 25 6.5 6.2 0.6 0.5 3.1 3.2 THIS REPORT HAS BEEN PREPARED BY MAYBANK INVESTMENT BANK BERHAD PP16832/01/2013 (031128) SEE PAGE 10 FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS Malaysia Construction A recap of 2019 Renewed optimism With a series of major infra projects (KVMRT 2, KVLRT 3) having undergone their cost reviews in the previous year, 2019 brought some relief to the sector with the revival of key projects such as the i) East Coast Rail Link (ECRL) [MYR44b]; ii) Bandar Malaysia (GDV: e.MYR140b) and iii) Johor-SG RTS Link (e.MYR3.2b). The slightly higher Gross Development Expenditure (GDE) allocation of MYR56b for 2020 (+4.3% YoY) announced in Budget 2020 also signals the Government’s commitment to develop public infrastructure and rural development especially in the deeper parts of Sabah and Sarawak. Fig 1: Status of revived major infrastructure projects Estimated Projects Value Updates (MYR b) ECRL 44.0 Project to be implemented at a lower cost of MYR44b which includes infrastructure, tunneling, system & track works except for land acquisition. Up to 50% of project cost could be for civil/infra works, of which local participation is expected to make up 40% of the civil works portion. Kota Bahru to Dungun stretch (Package A; 210km) is undergoing its public inspection process. Subcontracting awards expected to start in 2H20. Site clearing and earthworks for the Dungun to Mentakab stretch (Package B; 223km) currently in full swing. Johor-SG RTS Link 3.2 Malaysia Government intends to continue with the implementation of the Johor-SG RTS Link as announced in Budget 2020. Singapore and Malaysia to defer the project implementation till 30 Apr 2020, pending review of the costs. Bandar Malaysia 140.0 Bandar Malaysia to be developed over 20 years with IWH-CREC reinstated as its master developer. The project will house a 28.3ha People’s Park and 10,000 units of affordable housing and greater Bumiputera participation. Source: Various No expropriation of tolled highways In Jun 2019, the Government of Malaysia has offered to acquire Gamuda’s four urban highway concessions – KESAS, LDP, SPRINT and SMART - for a total cash consideration of MYR6.2b (details in Fig 2). We deemed the implied effective equity value of MYR2.36b (MYR0.96/Gamuda shr) for the four highways to be fair when compared against our DCF value of MYR2.56b. The proposed acquisition by the Government essentially alleviates concerns of any potential expropriation of the tolled highways and could set the precedence for future takeovers. Fig 2: Individual highway equity value based on proposed offer price Highways Purchase consideration Gamuda’s effective stake Anticipated equity value, Gamuda's share of anticipated (MYR b) (%) calculated by Gamuda (MYR b) equity value (MYR b) (a) (b) (a)x(b) KESAS 1.377 70.0% 1.23 0.86 LDP 2.470 43.6% 2.34 1.02 SPRINT 1.984 51.8% 0.87 0.45 SMART 0.369 50.0% 0.06 0.03 Total 6.200 4.50 2.36 Source: Gamuda announcement *Purchase consideration figures have yet to deduct any form of indebtedness (outstanding dividends, interests, loans etc) January 14, 2020 2 Malaysia Construction What’s in store for 2020? 1) Job awards to gradually pick up We believe the momentum on contract awards and job flows would gradually pick up in 2020. With the proposed new alignment of the Kota Bharu-Dungun stretch (Package A; 210.4km) of the ECRL currently undergoing its 3-month public inspection process till 24 Feb 2020, we expect tenders for the ECRL’s subcontracting civil work packages to start in 2Q20. We estimate local contractors stand to secure up to MYR10b of jobs from the ECRL based on the rule of thumb that 40% of total civil works will be awarded to local contractors. Fig 3: Selected contractors with exposure/interest in the original ECRL project Companies Details Civil works IJM Corp Supply of spun piles to the ECRL and potential station works near Kuantan Port. Its 60%-owned Kuantan Port is also a long-term beneficiary of the ECRL. Gabungan AQRS Submitted tender for a sub-contracting package under CCCC previously. AQRS is also the master developer of KotaSAS in Pahang. Kimlun, WCT, Sunway Expressed interest to bid for construction works from the ECRL. Construction Supply of materials Malayan Cement Awarded a MYR270m contract to supply cement to ECRL. Others HSS Engineering Secured consulting engineering works for ECRL with a value of MYR82.5m. Econpile Expressed interest to bid for piling works from the ECRL. Advancecon Expressed interest to bid for land clearing works from ECRL. Gabungan AQRS (AQRS MK, Not Rated), WCT (WCTHG MK, Not Rated), Malayan Cement (LMC MK, HOLD, TP: MYR3.30), HSS Engineering (HSS MK, Not Rated), Econpile (ECON MK, Not Rated), Advancecon (ADVC MK, Not Rated); Source: Company data, Maybank Kim Eng; List is non-exhaustive KL-SG HSR and KVMRT 3 projects remain wildcards. To recall, both Malaysia and Singapore have set 31 May 2020 as a deadline to decide on the High-Speed Rail (HSR) project pending on-going cost reviews. As for the KVMRT 3, newsflow from the earlier part of 2019 indicated that the project could be revived with a lower cost of MYR22.5b (50% discount). We believe both major infra projects are likely to feature under the 12th Malaysia Plan (2021-2025). 2) PTMP close to rolling out The Penang State Government had, in Oct 2019, received a Federal Government Guarantee to raise bonds to fund the Bayan Lepas LRT (e.MYR8b) portion of the Penang Transport Master Plan (PTMP). This development is positive, suggesting that the execution of the Bayan Lepas LRT will not solely be contingent upon funding from the Penang South Reclamation (PSR) which would require at least four to five years before its reclaimed land can be monetized. Assuming the Project Delivery Partner (PDP) agreement between the Penang State Government and SRS Consortium (60%-owned by Gamuda) is finalized within 1Q20, we could see the first job awards for the Bayan Lepas LRT to start by end-2020.
Load more

Recommended publications
  • HSS Engineers Is Currently Bidding for Railway, Renewable Energy and Water-Related Projects to Expand Its Order Book
    28 January 2019 Water play Company Update HSS Engineers is currently bidding for railway, renewable energy and water-related projects to expand its order book. The government’s ongoing water asset consolidation exercise and planned water tariff HSS Engineers hikes nationwide will support crucial capital expenditure to expand the HSS MK water supply and improve distribution efficiency. The potential revival Sector: Engineering Construction of highway and railway projects will also improve HSS’ new contract procurement prospects. HSS remains our top small-cap sector BUY RM0.99 @ 25 January 2019 with a new target price of RM1.20, based on a FY19E PER of 22x. Bidding for water projects BUY (maintain) State-owned water utility Pengurusan Air Selangor Sdn Bhd has a capex Upside: 21% plan of RM30bn over 30 years starting from this year. Other state governments also plan to increase their capex to improve their water supply Price Target: RM1.20 and distribution systems. We gather that HSS has submitted 10-12 bids for Previous Target: RM1.18 (RM) water infrastructure design contracts nationwide. Some tenders are 2.00 1.80 submitted in partnership with contractors for design and build projects. 1.60 1.40 1.20 High order book even with ECRL cancellation 1.00 0.80 HSS’ order book stood at RM588.6m as at 30 Sept 2018, providing earnings 0.60 0.40 visibility for the next 2-3 years. It has good prospects of winning new 0.20 0.00 contracts this year with potential tenders worth more than RM300m. HSS’ Dec-16 May-17 Oct-17 Mar-18 Aug-18 Jan-19 suspended contracts for the East Coast Rail Link (ECRL) project (remaining Price Performance value of RM95m or 16% of its order book) will likely be cancelled with the project termination; we excluded them from our forecasts earlier.
    [Show full text]
  • Economic Performance and Prospects
    (FRQRPLF 3HUIRUPDQFHDQG 3URVSHFWV Chapter 3.indd 47 9/30/11 4:42:27 AM 48 Chapter 3.indd 48 9/30/11 4:42:27 AM Economic Performance and Prospects Overview by the Government such as tax incentives and liberalisation measures to attract investment, Economy continues to expand particularly in the oil and gas as well as services sectors. Public expenditure is envisaged to remain he Malaysian economy continued to expand supportive of economic activities with expansion Tdespite the more challenging external in capital spending by the Non-Financial Public environment. Real Gross Domestic Product Enterprises (NFPEs). (GDP) registered a growth of 4.4% during the first half of 2011. The moderation was On the supply side, all sectors are expected due to slowing exports following the weaker- to post positive growth, except mining due than-expected United States (US) economic to lower production of crude oil. In tandem performance, deepening euro sovereign debt with robust private consumption, the services crisis, global supply chain disruptions resulting sector is envisaged to grow strongly led by from earthquake and tsunami in Japan as well the wholesale and retail trade, finance and as rising global inflation. The moderation was insurance, real estate and business services as also partly attributed to the high-base effect well as communication sub-sectors. Despite the as GDP grew at a strong pace of 9.5% during contraction in output of electrical and electronics Economic Performance and the same period in 2010. However, the growth (E&E) and transport equipment in the first half momentum is expected to pick up in the second of 2011, the manufacturing sector is expected to half of the year on the back of resilient private record positive growth supported by strong output Prospects consumption and strong private investment.
    [Show full text]
  • Construction Sector Remains Challenging As the Federal Government Is Reviewing Ongoing Infrastructure Projects to Reduce Costs by 20-33%
    4 October 2018 Waiting for the other shoe to drop Sector Update The outlook for the Construction sector remains challenging as the federal government is reviewing ongoing infrastructure projects to reduce costs by 20-33%. Projects that could be affected include the Construction Klang Valley MRT Line 2 (MRT2) and LRT Line 3 (LRT3), Pan Borneo Highway (PBH) and Gemas-Johor Bahru Electrified Double Tracking (EDT). There are opportunities in state government projects in Penang and Sarawak. Maintain our NEUTRAL call. Top BUYs are IJM, Suncon Neutral (maintain) and HSS. Potential MRT2 cost cuts We gather that the MRT2 project could see a 25% reduction in cost to RM24bn from an initial estimate of RM32bn. The MMC Gamuda Joint Absolute Performance (%) Venture (JV) will be the most affected as it is the main contractor for the underground section and the Project Delivery Partner (PDP) for the above- 1M 3M 12M ground section of the MRT2. Other listed contractors that could be affected AQRS (6.4) (14.9) (37.9) due to ongoing work on above-ground packages secured include Ahmad Gamuda (10.0) 2.8 (37.1) HSS Eng 2.2 33.3 (9.5) Zaki, Gadang, George Kent, IJM Corp, MRCB, MTD ACPI, Mudajaya, IJM Corp (6.3) 1.7 (45.9) SunCon, TRC, TSR and WCT. Since the cost reductions will come from MRCB 0.7 15.8 (23.2) the reduction in the scope of works, we believe only the contract values will Suncon (0.4) (6.5) (37.4) be reduced while profit margins should be preserved.
    [Show full text]
  • About the Movement Control Order Ministry of Transport of Malaysia
    Frequently Asked Question (FAQ) About the Movement Control Order Ministry of Transport of Malaysia (MOT) NO 2 LAND 1. Are the department / agency counters under the MOT (JPJ, APAD, LPKP Sabah and LPKP Sarawak) operating during the duration of this Movement Control Order? All JPJ, APAD, Sabah LPKP and Sarawak LPKP service counters are fully closed to the public from March 20, 2020 until the expiry of the Movement Control Order. The RTD service at the Post Office was also discontinued during this period. However, during the MCO period, the Minister of Transport applied the provisions of the law under Section 66 (1) of the Road Transport Act 1987 (Act 333) by granting EXEMPTION to all drivers with driving license from the need to RENEW THEIR DRIVER'S LICENSE through special law effective March 25, 2020. This means that anyone with an expired driving license can still use their vehicle provided that the vehicle is required to have valid insurance coverage and drivers are advised to bring a copy of their insurance certificate or e-cover note of driving while driving during the MCO period. Licensees must renew their licenses within 30 days after the MCO is declared end. Another reminder, as required by law, all commercial vehicle owners and private vehicle owners must ensure that vehicles have valid insurance coverage during the MCO period. 2. Does driving study and driving test at the Driving Institute continue during this period? All activities and courses, Driving Education Curriculum (KPP) talks, driving training, theory testing and practice testing at the Institute for Driving and Part 1 testing (KPP01 - theory) at the e-Services Center (MyEG, KOMMS and MYSPEED) are postponed to March 18, 2020.
    [Show full text]
  • MY Credit Outlook 2020 – Chartbook & Views
    January 6, 2020 MY Credit Outlook 2020 – Chartbook & Views Late Cycle, Not End of Cycle FIXED INCOME FIXED Malaysia Winson Phoon|+65 6812 8807|[email protected] Se Tho Mun Yi|+603 2074 7606|[email protected] THIS REPORT HAS BEEN PREPARED BY MAYBANK KIM ENG RESEARCH SEE PAGE 61-66 FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS Contents Supply Review: 2019 3 Bumitama Agri Ltd 33 DRB-HICOM Bhd 35 Supply Outlook: 2020 8 Eco World Capital Assets Bhd 37 Eco World International Bhd 39 Demand Profile 10 First Resources Ltd 41 Fortune Premiere Sdn Bhd 43 GG Bonds 15 Gamuda Bhd 45 Genting Malaysia Bhd 47 Credit Condition & Spreads 17 IJM Corporation Bhd 49 Kuala Lumpur Kepong Bhd 51 Sector Outlook Mah Sing Group Bhd 53 Banking Sector 25 Press Metal Aluminium Hldgs Bhd 55 Construction Sector 26 UEM Sunrise Bhd 57 Plantation Sector 27 Power Sector 28 Appendix Property Sector 29 List of Outstanding GG bonds 60 Solar Sector 30 PDS maturity in 2019: Toll Road Sector 31 Corporates 61 FI (Bank) 64 Credit Views: Selected Issuers FI (Non-bank FI & Others) 65 Strictly Private & Confidential Page 1 MYR Credit: Supply Review, Supply Outlook and Demand Profile Strictly Private & Confidential Page 2 Supply Review 2019: Gross PDS supply was little changed at MYR105b (2018: MYR104b) Gross PDS Issuance by Rating: Lower high-grade supply Gross/Net PDS Issuance, 2015–2020F was offset by an increase in unrated bond issuances *2019: Urusharta Jamaah’s MYR27.55b issuance related to the restructuring of non-performing assets under LTH is excluded
    [Show full text]
  • 016 Market Study with Focus on Potential for Eu High-Tech Solution Providers
    Co-funded by MALAYSIA’S TRANSPORT & INFRASTRUCTURE SECTOR 2016 MARKET STUDY WITH FOCUS ON POTENTIAL FOR EU HIGH-TECH SOLUTION PROVIDERS Market Report 2016 Implemented By SEBSEAM-MSupport for European Business in South East Asia Markets Malaysia Component Publisher: EU-Malaysia Chamber of Commerce and Industry (EUMCCI) Suite 10.01, Level 10, Menara Atlan, 161B Jalan Ampang, 50450 Kuala Lumpu Malaysia Telephone : +603-2162 6298 r. Fax : +603-2162 6198 E-mail : [email protected] www.eumcci.com Author: Malaysian-German Chamber of Commerce and Industry (MGCC) www.malaysia.ahk.de Status: May 2016 Disclaimer: ‘This publication has been produced with the assistance of the European Union. The contents of this publication are the sole responsibility of the EU-Malaysia Chamber of Commerce and Industry (EUMCCI) and can in no way be taken to reflect the views of the European Union’. Copyright©2016 EU-Malaysia Chamber of Commerce and Industry. All Rights Reserved. EUMCCI is a Non-Profit Organization registered in Malaysia with number 263470-U. Privacy Policy can be found here: http://www.eumcci.com/privacy-policy. Malaysia’s Transport & Infrastructure Sector 2016 Executive Summary This study provides insights into the transport and infrastructure sector in Malaysia and identifies potentials and challenges of European high-technology service providers in the market and outlines the current situation and latest development in the transport and infrastructure sector. Furthermore, it includes government strategies and initiatives, detailed descriptions of the role of public and private sectors, the legal framework, as well as present, ongoing and future projects. The applied secondary research to collect data and information has been extended with extensive primary research through interviews with several government agencies and industry players to provide further insights into the sector.
    [Show full text]
  • Malaysian News: Auto Fuel, Car Sales, Public Transit, Ports September 23, 2004
    Malaysian News: Auto fuel, car sales, public transit, ports September 23, 2004 1. Calls have been made to move the nation's auto fleets towards becoming diesel driven, similar to Europe, in move to reduce emissions and costs 2. Car sales continue to increase, with non-national brand sale increases outpacing national brand sale increases 3. About 65% of KL's public transit capacity for rail and buses will be nationalized under a new agency. The purpose is to provide more integration and coordination of physical infrastructure, fare structure, routes and scheduling. This is a big change from the many separate privately owned rail and bus lines! 4. Port Klang's throughput continues to grow 5. Port Klang is moving to a new system of tracking cargo that requires shipping agents to provide additional information on freight. Shipping agents are refusing to provide new information and resulting impass could cause massive delays in Port Klang when new system is implemented Oct. 1. 6. Malaysia port has new system to route and inspect cargo in more automatic manner, but also has backup plan in place in case new system fails ******************************************************** ***1. Calls for move towards diesel as private auto fuel*** ******************************************************** http://www.bernama.com/ September 22, 2004 18:39 PM Call For Use Of More Diesel-Powered Engines KUALA LUMPUR, Sept 22 (Bernama) -- Tan Lian Hoe (BN-Bukit Gantang) Wednesday called for more use of diesel-powered engines as the fuel is cheaper than petrol. Tan said diesel was cheaper and cleaner, and engines which used the fuel emitted less noxious gas as compared to the more expensive petrol which produced a lot of carbon monoxide.
    [Show full text]
  • MRT-Progressreport2016-ENG.Pdf
    PB Mass Rapid Transit Corporation Sdn Bhd 2016 Annual Progress Report 1 i Content 3 1 Mass Rapid Transit Corporation Sdn Bhd 63 4 MRT Sungai Buloh - Serdang - Putrajaya Line 6 Vision, Mission and Guiding Principles 66 Construction 8 Chairman’s Message 68 Procurement 10 Chief Executive Officer’s Review 69 Land 14 The Year at A Glance 70 Centralised Labour Quarters 18 Board of Directors 71 Bumiputera Participation 24 Board Committees 73 Industrial Collaboration Programme 26 Organisational Structure 74 Safety, Health and Environment 28 Leadership Team 75 Stakeholder and Public Relations 30 Heads of Department 36 Integrity 79 5 Commercial 80 Introduction 37 2 The Klang Valley MRT Project 81 Property 38 Klang Valley Integrated Urban Rail Network 81 Advertising 82 Retail 41 3 MRT Sungai Buloh - Kajang Line 82 Multi-Storey Park and Ride 44 Construction 83 Commercial Telecommunications 46 Operations Readiness 83 New Technology and Events 48 Feeder bus 49 Procurement 85 6 Financial Report 52 Land 53 Centralised Labour Quarters 89 7 Awarded Work Packages 54 Bumiputera Participation 90 MRT Sungai Buloh - Kajang Line 55 Industrial Collaboration Programme 100 MRT Sungai Buloh - Serdang - Putrajaya Line 57 Safety, Health and Environment 58 Stakeholder and Public Relations 2 Mass Rapid Transit Corporation Sdn Bhd 2016 Annual Progress Report 3 i Abbreviations KVMRT Klang Valley Mass Rapid Transit MRT Corp Mass Rapid Transit Corporation Sdn Bhd PDP Project Delivery Partner Prasarana Prasarana Malaysia Berhad SBK Line MRT Sungai Buloh-Kajang Line SPAD Suruhanjaya Pengangkutan Awam Darat SSP Line MRT Sungai Buloh-Serdang-Putrajaya Line 2 Mass Rapid Transit Corporation Sdn Bhd 2016 Annual Progress Report 3 Mass Rapid 1 Transit Corporation Sdn Bhd 4 Mass Rapid Transit Corporation Sdn Bhd 2016 Annual Progress Report 5 Mass Rapid Transit Corporation Sdn Bhd TESTS: View of the Kota Damansara Station with an MRT train undergoing test runs.
    [Show full text]
  • Construction
    Sector Update Malaysia 13 July 2018 Construction & Engineering | Construction Neutral (Maintained) Construction Stocks Covered: 11 Derailed By Project Reviews Ratings (Buy/Neutral/Sell): 1 / 10 / 0 Last 12m Earnings Revision Trend: Negative The construction landscape has seen drastic changes post-GE14. Mega- Top Picks Target Price infrastructure projects such as the ECRL, MRT2, MRT3, LRT3, and HSR Sunway Construction (SCGB MK) – MYR 2.42 have been reviewed – and are subject to either cost-cutting measures, BUY deferment or cancellation. Projects that have been spared thus far include the Pan Borneo Highway, PTMP and TRX. With fewer large-scale projects commencing in the near term and news flow likely to remain unexciting, we Historical performance (KLCON & FBM KLCI) maintain our NEUTRAL stance on the sector. 1950 400 1900 The KLCON Index has fared poorly, falling 31% after the 14th general election 350 1850 (GE14). This comes amid a review of large-scale infrastructure projects that 300 would either be subject to cost-cutting measures, deferment or cancellation. 1800 1750 250 These reviews are part of the present government’s plans to rein in fiscal 1700 200 spending in areas it views as unnecessary. 1650 150 1600 MRT2 and LRT3 to proceed at a reduced cost. Following a meeting with the 100 1550 CEP, project owner MRT Corp will study measures to reduce the cost of the 1500 50 MYR32bn MRT2 project. However, no specific targets in terms of the quantum or 1450 0 timeline for the cost cuts have been provided. We believe that measures that 08/16 02/17 12/16 04/17 06/17 08/17 10/17 12/17 02/18 04/18 could be implemented include a reduction in the number of stations, a shorter rail 10/16 alignment or a lower PDP fee.
    [Show full text]
  • Factors to the Successfulness of Corporatization
    FACTORS TO THE SUCCESSFULNESS OF CORPORATIZATION STUDY CASE OF MARA LINER SDN BHD MOHD HANIF BIN IBRAHIM MASTER OF SCIENCE (MANAGEMENT) UNIVERSITI UTARA MALAYSIA APRIL 2015 PERMISSION TO USE This project paper submitted to meet the requirements of a Master of Science Graduation Program Management, Universiti Utara Malaysia (UUM). I agree to allow the Library UUM posting as general reference material. I also agree that any copy of either the whole or part of this project paper for academic purposes is allowed with the permission of the supervisor of the research project paper or Dean Othman Yeop Abdullah Graduate School Of Business, UUM. Any copy or print form for non-academic purposes without prior written permission is strictly prohibited researchers. Statement reference to researchers and authors of this paper and the UUM must specify as a reference of this research paper. Permission to copy or use this research paper either in whole or in part shall be applied through: DEKAN OTHMAN YEOP ABDULLAH GRADUATE SCHOOL OF BUSINESS UNIVERSITI UTARA MALAYSIA 06010 SINTOK KEDAH DARUL AMAN iii ABSTRACT Kenderaan Bas MARA (KBM) is a government entity that is managed exclusively by the Transport Division of MARA (BKN) is one of the major operators in the transport industry for Malaysia, especially in rural areas. In 2009-2011 KBM suffered significant losses in terms of financial implications of the process of rationalization of diesel subsidy by the government, which is 40% of the cost of operating the Kenderaan Bas MARA (KBM) finally proposed by management MARA to be corporatised. Apart from the limited research conducted in Malaysia to focus on recovery strategies involving the public sector, the aim of this study is to explore the key factors that influence the success of corporatization.
    [Show full text]
  • HSS ENGINEERS BERHAD Company No: 201501003232 (1128564-U)
    HSS ENGINEERS BERHAD Company No: 201501003232 (1128564-U) UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2019 (The figures have not been audited) Quarter ended Year to date ended 30 Sept 30 Sept 2019 2018 % 2019 2018 % Note RM'000 RM'000 +/(-) RM'000 RM'000 +/(-) Revenue B1 36,125 53,829 (32.9) 108,088 142,914 (24.4) Direct costs (25,714) (32,409) (80,790) (91,085) Gross profit 10,411 21,420 (51.4) 27,298 51,829 (47.3) Other operating income 426 443 1,361 1,285 Administrative expenses (5,156) (6,535) (15,566) (21,653) Other operating expenses (2,607) (1,289) (8,195) (3,008) Profit for the year from operations 3,074 14,039 (78.1) 4,898 28,453 (82.8) Finance costs (1,761) (1,987) (5,563) (4,437) Share of results of associates 76 119 211 271 Profit/(Loss) before taxation 1,389 12,171 (88.6) (454) 24,287 (101.9) Taxation B4 (515) (3,022) (1,147) (7,358) Profit/(Loss) for the financial period 874 9,149 (90.4) (1,601) 16,929 (109.5) Other comprehensive income/(loss): Item that may be reclassified subsequently to profit or loss Foreign currency translation (loss)/gain (4) (3) 3 (34) Total comprehensive income/(loss) for the financial period 870 9,146 (90.5) (1,598) 16,895 (109.5) Profit/(Loss) for the financial period attributable to:- Owners of the Company 874 9,149 (90.4) (1,601) 16,929 (109.5) Total comprehensive income/(loss) attributable to:- Owners of the Company 870 9,146 (90.5) (1,598) 16,895 (109.5) Earnings/(Loss) per share (sen) - Basic B11 0.18
    [Show full text]
  • Malaysia Sustainable Urban Transport Country Report
    MALAYSIA SUSTAINABLE URBAN TRANSPORT COUNTRY REPORT 1. INTRODUCTION Malaysia is home to over 30 million people, with about 50% Malays, 23% Chinese, 12% natives of Sabah and Sarawak (the two eastern provinces on the island of Borneo), 7% Indians and 8% non-Malaysians (typically foreign guest workers). The current population growth rate is approximately 1.8% per year, and highest among the Malays. The climate is tropical, with average temperatures of around 28°C and rainfall of 2500mm anually. Most population centres developed along the river mouths near the sea, with a few located along the rivers further inland. As the economy has shifted from a more agricultural base, to manufacturing and services, the population has migrated into ever growing cities and towns. It is estimated that over 75% of the population now lives in urban settings Statistics on passenger car kilometres driven is available from the Malaysian National Automobile Inspection Department (Puspakom) as well as the Malaysian Institute of Road Safety (MIROS). Puspakom records the odometer mileage during periodic inspections, and MIROS collects the data from vehicles involved in accidents. Their work indicates that new passenger cars are driven about 24,000 kilometres per year. Ridership is not known, but estimated to be between 1.2 and 1.6 passenger per car. This yields around 36,000 passenger km per year per car, or with a fleet of 11.7M cars this works out to 420 billion car passenger kilometres annually for Malaysia. Goods vehicles, predominantly diesels, are measured via the same source to travel 70,000 km on average annually.
    [Show full text]