Saudi Arabia cuts ties to Qatar, citing ‘terrorism’
Saudi Arabia, Egypt, the United Arab Emirates and Bahrain severed diplomatic relations with Qatar on Monday, accusing it of support for Islamist militants and Iran. Yemen, Libya’s eastern-based government and the Maldives joined later. Transport links shut down, triggering supply shortages. The three Gulf states gave Qatari visitors and residents two weeks to leave, and Saudi Arabia, Bahrain and Egypt banned Qatari planes from landing and forbade them from crossing their air space. Some residents in Qatar began stockpiling food and supplies. (The Star Online)
(Image from Vox)
MRCB tendering for RM6bil worth of construction jobs
MRCB is tendering for RM6bil worth of construction jobs related to civil engineering projects to beef up its construction segment. The company is also reportedly tendering for the 1,000 tonne-per-day incinerator project in Taman Beringin, Kepong, and the redevelopment of the KL Putra World Trade Centre. It currently has a construction order book of some RM7bil to sustain over the next five years. However, the Bandar Malaysia integrated transportation terminal project was not included in its current tender book. In terms of its property development business, MRCB is planning to launch RM1.8bil worth of property development projects and is targeting RM1.3bil in sales. (The Star Online)
Ikhmas Jaya bags RM189mil BBCC job
Ikhmas Jaya Group Bhd has been awarded a contract worth RM188.6mil for substructure works for the Bukit Bintang City Centre (BBCC) project in Jalan Pudu, Kuala Lumpur. Its unit Ikhmas Jaya Sdn Bhd had received the letter of award from BBCC Development, the developer of the RM8.7bil BBCC project. The works, comprising earthworks, piling, and diaphragm wall & reinforced comcrete works, is expected to start on June 8 and is slated for completion in two years. The BBCC project is a redevelopment of the former Pudu jail site that will take between eight and 10 years. (The Star Online)
Construction of TNB large scale solar project to begin next month
Tenaga Nasional Berhad (TNB) is set to begin construction of its first Large Scale Solar (LSS) project in Malaysia next month. The project is located on a 97 ha site in Mukim Tanjung 12, Kuala Langat, Selangor. The land, which is being cleared in phases, will be developed into solar farms (68 ha) while the remaining is occupied by an existing high voltage transmission line (29 ha). Once completed and fully operational by November 2018, the project will generate and transmit 50MW (megawatt) of electricity to the national grid. (NST Online)
Location of the TNB Large-Scale Solar (LSS) project (Image from NST)
Naim Holdings plans O&G industrial park in Bintulu
Property developer Naim Holdings Bhd is planning to develop an industrial park in Bintulu to cater for the oil and gas (O&G) sector. The group is proposing for Kidurong Oil and Gas Industrial Park, which could span up to 400ha, next to the Malaysian Liquified Natural Gas complex. It is currently in the feasibility study phase, and Naim would need to discuss with the state government on the proposed industrial park and obtain the necessary approvals to kick-start the project. Sarawak Chief Minister Datuk Amar Abang Johari Tun Openg had indicated recently his strong desire to turn Bintulu into a regional gas-based hub. (The Star Online)
(Source: KWAP)
KWAP fund size to hit RM500bil by 2050
The Retirement Fund Inc’s (KWAP) fund size is expected to hit RM500bil by 2050, growing between 8% to 10% a year, said Datuk Seri Najib Tun Razak. The prime minister said KWAP’s fund size grew 200% from RM42bil in 2007 to RM125bil in December 2016. KWAP also achieved an average gross return on investment of 6.5% for the last 10 years. (The Star Online)
HSR tender briefing likely to attract global entities
An industry briefing, in preparation for the assets company tender for the Kuala Lumpur-Singapore high-speed rail (HSR) project, is expected to attract the participation of regional and global entities. It will be held next month and jointly organised by Malaysia’s MyHSR Corp Sdn Bhd and Singapore’s Land Transport Authority. The asset company will be responsible for the design, building, financing and maintenance of all rolling stock, as well as designing, building, financing, operating and maintaining all rail assets. (The Star Online)
Penang CM: Pulau Jerejak land for sale is only for shipbuilding
The Penang government will only allow shipbuilding activities on a piece of private land on Pulau Jerejak that was put up for sale by the landowner recently. Chief Minister Lim Guan Eng expressed “shock” over the news and said the landowner Boustead Holdings Berhad did not tell the state government it intended to sell a 10.7ha piece of land on the east coast of Pulau Jerejak. The land is a 99-year leasehold land that expires in 2072 and designated for industrial use. Lim stressed the state government will not allow any request for the change of land use for the piece of land. (Malay Mail Online)
Neutral outlook for REIT sector
MIDF Research has maintained its neutral outlook for the REIT sector, following the recent wrap-up of the reporting season on 1QCY2017 which saw REITs post mixed results. Among the seven REITs under MIDF Research’s coverage, Sunway REIT, IGB REIT, and Axis REIT had positive earnings growth while four (AmanahRaya REIT, Pavilion REIT, CMMT, and KLCCP Stapled Group) performed negatively. Sunway REIT reported the highest quarterly earnings growth of 8.6% year-on-year, while IGB REIT recorded the second highest quarterly earnings growth of 3.5% y-o-y. (NST Online)
