Malaysian palm oil production to drop slightly in 2020, pushing the price upward, says expert

KUALA LUMPUR: Palm oil production in Malaysia is set to drop slightly in 2020 from the 20.5 million tonnes recorded in 2019, said a plantation expert.

Thomas Mielke of ISTA Mielke GmbH said Malaysia’s competitor Indonesia would also experience a slow down of the production growth by 1.8 million tonnes in 2020 to 45.4 million from the 43.6 million tonnes this year.

“The consumption of palm oil will increase by 7.7 million tonnes in 2018/2019 with global supply and demand balance expected to tighten in 2019/2020 as production will only be at 78.2 million tonnes while its usage is 80-81 million tonnes,” he said in his presentation at the 15th Indonesian Palm Oil Conference.

Bloomberg reported that the lower production and higher demand would push the crude palm oil price to be trading higher at RM2,600 per tonne for the first half next year.

It said the commodity prices would be “considerably higher” in 2020.

Mielke also noted that one of the world largest palm oil consumers, China, was increasing imports of palm oil, soya oil, sun oil and other oils to compensate smaller domestic production resulting from reduced soybean crushing.

Mielke was one of the speakers during the three-day event that began on Oct 30.

Other palm oil experts at the event are Dr James Fry from LMC International Ltd and Dorab Mistry from Godrej International Ltd.

Themed ‘Palm Oil Industry: Managing Market, Enhancing Competitiveness’, the 15th IPOC convened as the commodity continues to be plagued by low prices and is suffering from a bad image globally, being seen as a major cause of deforestation and following the recent devastating forest and ground fires that have hit the country. -Bernama

source https://www.thesundaily.my/business/malaysian-palm-oil-production-to-drop-slightly-in-2020-pushing-the-price-upward-says-expert-EX1563215

Affin Hwang Capital’s Maimoonah to retire

PETALING JAYA: Affin Hwang Capital’s group managing director Datuk Maimoonah Hussain (pix) will be retiring with effect from Nov 3, the bank announced in a statement today.

Maimoonah has served the bank for 12 years - seven years as Affin Investment Bank Bhd managing director and five years with Affin Hwang Capital as group MD, since the merger between Affin Investment Bank and HwangDBS Investment Bank Bhd in November 2014.

Affin Hwang Investment Bank Bhd chairman Abdul Malik Rahman said that under Maimoonah’s leadership and guidance, Affin Hwang Capital had built a strong foundation for growth.

“Today, the bank is well positioned as one of the leading investment banks in the country, with the right strategy and people culture to drive innovation, accelerate sales growth and enhance profitability.

“Her dedication, commitment and relentless pursuit of excellence have made an indelible impact to everyone who has worked with her. I thank her for being an inspirational leader in the development and progress of the Bank and wish her all the best in her future endeavours,” he said in the statement.

source https://www.thesundaily.my/business/affin-hwang-capital-s-maimoonah-to-retire-MX1563097

PetGas PDT, IDSS suspended

PETALING JAYA: The proprietary day trading (PDT) and intra-day short selling (IDSS) for Petronas Gas Bhd (PetGas) has been suspended for the rest of the day.

Bursa Malaysia Securities Bhd said this is because the last done price of the approved securities dropped more than 15% from the reference price.

At 3.57pm, PetGas fell 1.32% or 22 sen to RM16.42 on 589,600 shares done.

The PDT and IDSS activities of PetGas will only be enabled on Monday at 8.30am.

source https://www.thesundaily.my/business/petgas-pdt-idss-suspended-DX1563027

Yakin Setiamas emerges as new major shareholder in Mudajaya

PETALING JAYA: Yakin Setiamas Sdn Bhd has emerged as a new major shareholder in Mudajaya Group Bhd, with a 27.52% direct stake, after acquiring 162.33 million shares on Oct 29.

In several filings with Bursa Malaysia today, Mudajaya said Yakin Setiamas Sdn Bhd is 90% owned by Ample Full Profits Limited and 10% owned by Chamber Jewels Limited. By deemed interest, Cheerful Talent Holdings Limited and Jovial Day Holdings Limited are also substantial shareholders in the group.

“The shareholders of Chamber Jewels Limited are James Wong Tet Foh and Lee Eng Leong, each holding 50% equity interest. Wong and Lee do not have deemed interest in Yakin Setiamas,” Mudajaya said in its filing.

Meanwhile, Mudajaya also announced that Dataran Sentral (M) Sdn Bhd and Kingsman Capital Limited had ceased to be substantial shareholders in the group, following the disposal of its direct and indirect shares on Oct 29.

By virtue of its deemed interest, First Positive Sdn Bhd also ceased to be a substantial shareholder.

At the time of writing, Mudajaya shares were trading 1.39% higher at 36.5 sen with 24.27 million shares done.

source https://www.thesundaily.my/business/yakin-setiamas-emerges-as-new-major-shareholder-in-mudajaya-LY1562940

Bursa completes first blockchain proof-of-concept for securities borrowing, lending

KUALA LUMPUR: Bursa Malaysia Bhd has completed its first securities borrowing and lending (SBL) proof-of-concept (POC 1) blockchain technology solution designed to increase the efficiency, speed and capacity in the securities lending supply and borrowing demand.

SBL POC 1 was executed and tested with technology partner Forms Syntron Information (HK) Ltd, a subsidiary of Shenzhen Stock Exchange-listed Shenzhen Forms Syntron Information Co Ltd, and industry collaborators Affin Hwang Investment Bank Bhd, CGSCIMB Securities Sdn Bhd, Citibank Bhd, Kumpulan Wang Persaraan (Diperbadankan) and Malacca Securities Sdn Bhd.

A first of its kind in the Asean, SBL POC 1 was executed using an agile methodology comprising robust design thinking, development and testing stages. SBL POC 1 was a successful test of a private-permissioned blockchain-driven SBL lending pool that can enhance market discovery, create increased efficiencies as well as build transparency and trust. It has secure, shared ledgers and smart contracts which enable instant and automated update of asset status. Information stored in the ledger, like records of trade negotiations and order confirmations, are immutable, auditable and traceable. It avoids the need for manual reconciliation, which may introduce errors due to disparate methods of trade

negotiation and order confirmation recording.

Bursa Malaysia CEO Datuk Muhamad Umar Swift (pix) said evidence shows that a vibrant SBL market is one of the key characteristics of a developed capital market.

“As such, it is imperative that we tackle the operational challenges of today with a technologically driven solution that is flexible and scalable into the future. The POC also brings in new knowledge, insights and practical experience in harnessing digital innovation - a core requirement of any exchange that aims to be a leader in its space in the future.”

SBL POC 1 is the kickoff to a longer-term holistic roadmap that leverages emerging technology to address challenges in the SBL market. POC 1 targets the SBL lending pool, the fundamental building block of this roadmap, and sets up the future possibility of developing and testing a blockchain solution that can transform the execution, collateral management and corporate action management areas of Malaysia’s SBL market.

Bursa Malaysia welcomes greater industry collaboration and partnerships for future POCs with the aim of building a future-ready end-to-end SBL technology-driven solution in aid of its progress towards a developed market.

source https://www.thesundaily.my/business/bursa-completes-first-blockchain-proof-of-concept-for-securities-borrowing-lending-GY1562833

Malaysia’s c.bank seen holding rates, eyes 2020 global growth

KUALA LUMPUR: Malaysia’s central bank is expected to keep its benchmark interest rate unchanged at a policy review on Tuesday, according to a Reuters poll, saving its policy ammunition in case global growth falters next year.

Eight out of 11 economists polled forecast Bank Negara Malaysia (BNM) will hold its overnight policy rate steady at 3.00%, after the government announced a marginal expansion in its development budget for 2020.

The three dissenters expect the central bank to cut its key rate by 25 basis points to 2.75%.

Malaysia’s economy is seen accelerating slightly to 4.8% in 2020 from the 4.7% rate forecast this year, the government said, though it will likely lead to a slower pace of fiscal consolidation.

Finance Minister Lim Guan Eng had said the government has set aside funds for stimulus measures should global demand worsen next year.

Malaysia will continue to face risks to growth, especially from the U.S-China trade war, but there is no “screaming call” for a rate cut just yet, said Julia Goh, a Malaysian-based economist with UOB Bank.

Goh also noted recent signs of progress in trade talks between the United States and China.

President Donald Trump said on Thursday that the United States and China will sign a “phase one” trade deal once they decide on a new venue, after Chile cancelled a planned summit set for mid-November.

“So long as we don’t see a marked re-escalation or deterioration in U.S.-China trade tensions, and continue to see stable domestic growth, I think BNM can afford to wait and see,“ Goh said.

BNM lowered its key rate in May, its first cut since July 2016, as a preemptive move to support the economy amid growing concerns over global growth.

Like other countries in the region, Malaysia has not been spared from slowing demand; exports declined 0.2% annually in the first half of this year.

But Malaysia was the only country in Southeast Asia to see growth accelerate from the first quarter. The economy expanded 4.9% in April-June on stronger consumer spending and palm oil production.

“High frequency indicators like retail sales, motor vehicle sales, industrial production all point to growth slowdown in the coming quarters. But the central bank will likely pause now before easing again in 2020,“ HSBC said in a note on Friday. -Reuters

source https://www.thesundaily.my/business/malaysia-s-c-bank-seen-holding-rates-eyes-2020-global-growth-XY1562752

Petron, Hengyuan’s Port Dickson refineries resume normal operations

PETALING JAYA: Petron Malaysia Refining & Marketing Bhd and Hengyuan Refining Company Bhd said today that crude oil intake at their respective refineries in Port Dickson had returned to normal.

In separate Bursa Malaysia filings, Hengyuan said repair works to the underwater valve were completed on Oct 31, 2019 and the crude intake to its refinery had returned to normal operational levels.

“The company is still in the process of investigating the causes of damage and assessing its financial impacts,” it said.

Meanwhile, Petron said repairs to the single buoy mooring (SBM) had been completed earlier than expected.

“Following observation and monitoring of the SBM’s operational capabilities post repair works, Petron Malaysia is able to report that the SBM is now capable of receiving crude oil from ships for purposes of processing at the refinery,” it said.

To recap, on Oct 22, both companies declared to Bursa that their refineries at Port Dickson were unable to receive crude oil for purposes of producing finished products, due to a technical problem with the SBM facility.

Operations were estimated to resume normal levels in early November, according to the previous filings.

source https://www.thesundaily.my/business/petron-hengyuan-s-port-dickson-refineries-resume-normal-operations-LY1562638