Malaysia Airlines, Singapore Airlines to share revenue on Malaysia-Singapore flights

PETALING JAYA: Malaysia Airlines Bhd (MAB) and Singapore Airlines (SIA) have entered into a wide-ranging commercial agreement, which includes the sharing of revenue on flights between Malaysia and Singapore.

The move will significantly strengthen the long-standing partnership between the two airlines, according to a joint statement issued today.

Other initiatives are the expansion of codeshare routes and joint marketing activities to develop tourism, subject to regulatory approvals from the relevant competition authorities.

The new agreement also includes SIA’s subsidiaries SilkAir and Scoot, as well as MAB’s sister airline, Firefly.

It follows the signing of a memorandum of understanding in June 2019, which aimed to provide new customer benefits as well as new business opportunities.

Under the partnership, flights between Singapore and Malaysia will operate under a joint business arrangement.

“MAB and SIA intend to coordinate flight schedules to provide customers with more flight choices and frequencies for passenger convenience.”

As part of the agreement, the two airlines also plan to offer joint fare products, align corporate programmes to enhance the value proposition to customers, and explore tie-ups between their frequent-flyer programmes.

Both parties will also expand their codeshare arrangements to include more destinations on each other’s networks.

At the moment, the airlines codeshare on flights between Singapore and Kuala Lumpur, Kota Kinabalu, Kuching and Penang.

With the expansion, SIA and SilkAir plan to codeshare on MAB’s domestic flights and as such serve a total of 16 destinations in Malaysia.

In turn, MAB will progressively codeshare on flights between Singapore and Malaysia, Europe, South Africa and other destinations once necessary approvals are granted.

This represents a significant expansion of the existing codeshare agreement and will provide MAB with more opportunities to expand connectivity to and from Malaysia.

In addition, MAB and SIA have agreed to work on joint marketing activities to boost long-haul tourism to Malaysia and Singapore.

With the partnership, the airlines will also explore the potential development of airpasses, which will enable customers travelling to Malaysia through the Kuala Lumpur and Singapore hubs more choices to visit other parts of the country.

source https://www.thesundaily.my/business/malaysia-airlines-singapore-airlines-to-share-revenue-on-malaysia-singapore-flights-FX1550171

Khazanah MD: No mood to sell PLUS

KUALA LUMPUR: The government sovereign wealth fund, Khazanah Nasional Bhd, is not in the mood to sell PLUS Malaysia Bhd, the country’s biggest expressway toll firm, its managing director Datuk Shahril Ridza Ridzuan (pix) said.

He said Khazanah, which owns 51 per cent of PLUS, retained its stand not to dispose of its stakes in PLUS.

“We are not in the mood of selling the asset and we actually haven’t got any kind of bidding process going on,“ he told reporters on the sidelines of Permodalan Nasional Bhd (PNB) Corporate Summit 2019 here today.

Shahril Ridza said he is also on the same note as the Prime Minister Tun Dr Mahathir Mohamad that feels all the offers were unattractive.

“(Prime Minister) Tun (Dr Mahathir Mohamad) already mention that none of the offers are attractive. so, I leave it to that,“ he said.

News emerged today that Widad Business Group Sdn Bhd has upped its offer to acquire 100 per cent equity interest in PLUS at a total enterprise value of RM38.34 billion.

This includes RM5.3 billion for the equity interest, RM3.04 billion compensation waiver and RM30 billion debt assumption.

Other offers for PLUS are from businessman Tan Sri Halim Saad, who partnered with Datuk Wong Gian Kui, to take over PLUS whole equity holding for RM5.2 billion.

Maju Holdings Sdn Bhd, the operator of Maju Expressway, had also submitted its offer to acquire PLUS at an enterprise value of RM34.9 billion including PLUS’s debt to its bondholders. -- Bernama

source https://www.thesundaily.my/business/khazanah-md-no-mood-to-sell-plus-JG1549913

Sony first-half net profit drops 14.9%, full-year net profit forecast up

TOKYO: Japan's Sony said Wednesday half-year net profit fell nearly 15 percent but it upgraded its annual net profit forecast on solid growth in its image sensor and music sectors.

The PlayStation manufacturer said net profit dropped 14.9 percent to 340 billion yen ($3.12 billion) for the April-September period, and forecast annual net profits of 540 billion yen, up from an earlier 500 billion yen forecast.

The company said it saw sales jump in the image sensor sector, thanks to the growth in demand due to mobile phones.

"Sales of image sensors remain strong. Demand for image sensors is expected to grow further as high-spec smart phones equipped with multiple lens are getting more popular," Hideki Yasuda, an analyst at Ace Research Institute in Tokyo, told AFP before the results were announced.

Sales for Sony's music business also rose, helped by its integration of EMI Music Publishing and an increase in streaming revenues.

Sony's half-year sales dipped 2.1 percent to 4.04 trillion yen while operating profit jumped 17.3 percent to 510 billion yen.

Sony spent years struggling to recover from deep financial trouble, a process that entailed aggressive restructuring, the loss of thousands of jobs and the sale of business units and assets.

It has seen a slowdown in its games and network businesses, and has said it expects revenue from the core sector to sag thanks to a continued fall in game hardware sales, and the cost of developing a next-generation console.

"Sales of PS4 consoles, which had spearheaded the company's recovery, are slowing down further as users' interest is now shifting to PS5," Yasuda said.

"Sales of its electronics products remain weak due to tough competition in the global market," he added. - AFP

source https://www.thesundaily.my/business/sony-first-half-net-profit-drops-14-9-full-year-net-profit-forecast-up-LG1549782

Details on 2nd Samurai Bond to be made via formal statement - Lim

KUALA LUMPUR: Information on the second Samurai bond issuance will be announced through a formal statement, said Finance MinisterLim Guan Eng.

He said this was to avoid misinterpretation on the Samurai bond.

"We will let you know by a formal statement because this one involves international issuance, let it be done through a formal statement so there is no misunderstanding," he told reporters at the Parliament lobby here, today.

The Samurai bond is a government-to-government arrangement and also the efforts by both Prime Minister Tun Dr Mahathir Mohamad and his Japanese counterpart Shinzo Abe, which aims to foster closer economic and cultural ties between Malaysia and Japan.

Meanwhile, asked on the Auditor-General's ((AG) suggestion to limit government guarantees, Lim said at the moment, although the decision on the guarantees was made by his ministry, all approvals would go through the Cabinet first.

"We always go through Cabinet to get approval. It must get Cabinet approval.

"After the separation between the post of the prime minister and finance minister, there is check and balance," said Lim.

On Oct 15, AG Datuk Nik Azman Nik Abdul Majidsaid there was a concern over the ability of five subsidiaries under the Ministerof Finance Incorporated (MoF Inc) to meet their debt obligations.

He stated that the companies had the obligation to repay the advances from the government, referring toSection 8 of the Loans Guarantee (Bodies Corporate) Act.

The five subsidiaries are Kuala Lumpur International Airport Bhd, GovCo Holdings Bhd, Asset Global Network Sdn Bhd, Jambatan Kedua Sdn Bhd and DanaInfra Nasional Bhd. - Bernama

source https://www.thesundaily.my/business/details-on-2nd-samurai-bond-to-be-made-via-formal-statement-lim-BG1549762

RM43m to drive Industry4WRD programmes next year

KUALA LUMPUR: The government has set aside RM43 million to enhance the existing Industry4WRD programmes for next year, says International Trade and Industry (MITI) Minister, Datuk Darell Leiking (pix).

He said, about RM112 million was allocated for Industry4WRD implementation, which includes programmes such as Readiness Assessment (RA), Intervention Programme for RA, Facilities Upgrade via the creation of Competence Centres, Skim Latihan Dual Nasional and reskilling programme and High-Speed Broadband in industrial areas.

Next year focus will still be on RA, Intervention Programme and talent development.

The ministry according to him, targets 450 qualified Small and Medium Enterprises (SME) to sign up with the RA programme next year.

This year, MITI according to him targets 500 qualified SMEs to join the government-funded programme, which assesses the firms’ readiness in adopting Industry 4.0.

To date, 713 applications have been received and 361 eligible SMEs were approved, he said.

About 82 onsite assessments have been conducted since August and the process is still ongoing for the rest of the approved applicants, said Darell at Industry4WRD Summit 209 here, today.

The two-day summit beginning today was held in conjunction with the one-year implementation of the national policy on Industry 4.0 or Industry4WRD.

Industry4WRD was launched by Prime Minister Tun Dr Mahathir Mohamad on Oct 31, 2018.

“Industry4WRD’s first-year performance is quite good although there was some setback in response by our SMEs, but we understand that.

“People are more focus on making their business successful through traditional ways and maybe some of them afraid on (higher) cost,“ added Darrel.

Hence, he urged companies to take advantage and sign up for RA and financial facilities offered by local banks to adopt Industry 4.0.

The summit was held in collaboration between MITI and the Federation of Malaysian Manufacturers (FMM).

FMM president, Tan Sri Soh Thian Lai said the federation has sent 8,000 letters to its members to encourage them to sign up for MITI’s RA programme, adding that FMM is working hard to ensure more local SMEs adopt Industry 4.0. -- Bernama

source https://www.thesundaily.my/business/rm43m-to-drive-industry4wrd-programmes-next-year-MG1549680

StanChart flags growth, interest rate headwinds after Q3 profit beat

HONG KONG/LONDON: Standard Chartered posted a forecast-beating 16% rise in quarterly profit, helped by rising income from corporate and private banking clients, but the bank flagged headwinds from a likely drop in global growth and lower interest rates.

The third-quarter results underscored StanChart's steady progress in its second three-year turnaround plan, where it has a goal to double returns and dividends in three years by cutting $700 million in costs and boosting income.

The first of those in 2015-2018 under Chief Executive Bill Winters focused on repairing a balance sheet ravaged by ill-advised lending in Asia, improving the bank's internal controls, reducing costs, and shedding unwanted businesses.

Winters said on Wednesday the execution of the new strategy remained a priority to drive profitability.

StanChart's pretax profit for the three months ended Sept. 30 rose to $1.24 billion from $1.07 billion in the same period a year ago, it said in a statement, above the $1 billion average of analysts' forecasts compiled by the bank.

The bank's corporate and institutional banking income grew 13% during the quarter, while private banking rose 14%, it said, adding its core capital ratio remained within the 13-14% target range at 13.5%.

The near-term outlook for the bank, however, is clouded by a Sino-U.S. trade war, Britain's protracted withdrawal from the European Union, an easing monetary policy cycle, and unrest in its core market of Hong Kong.

Five months of political turmoil in Hong Kong are set to weigh on HSBC and StanChart credit growth and asset quality in the near to medium term, people with knowledge of the matter said last week.

The Chinese-ruled city brought in a third of StanChart's income in the first half of this year, as per the banks' financial filings. The bank said on Wednesday its income grew in Hong Kong in the third quarter, without giving details.

StanChart's bigger rival HSBC abandoned on Monday its own return target of greater than 11% by 2020, blaming a worsening revenue outlook and tougher than expected market conditions.

"We continue to focus on executing our strategy ... but there are growing headwinds from the combination of continuing geopolitical tensions and expectations of declining near-term global growth and interest rates," StanChart said.

The London-headquartered bank reported a jump of 160 basis points in return on tangible equity to 8.9% in the third quarter, bringing it closer to its more than 10% goal it has set itself by 2021.

The Hong Kong-listed shares of the bank, which makes bulk of its revenues in Asia, rose as much as 3.3% after the results, in a weaker Hong Kong market.

The London-listed shares of StanChart are up 14% so far this year, compared to a 9% drop in rival HSBC's shares.

source https://www.thesundaily.my/business/stanchart-flags-growth-interest-rate-headwinds-after-q3-profit-beat-KG1549639

Ideas: Concentration of corporate power in hands of PM

KUALA LUMPUR: A major, but covert, reconfiguration of control of government-linked companies (GLCs) has occurred since Pakatan Harapan took power in a manner that suggests concentration of corporate power in Prime Minister Tun Dr Mahathir Mohamad’s party Parti Pribumi Bersatu Malaysia (Bersatu).

The “GLC Monitor: The State of Play since GE14”, launched by the Institute for Democracy and Economic Affairs (Ideas) this morning, revealed that sovereign wealth fund Khazanah Nasional Bhd and leading bumiputra-based investment fund Permodalan Nasional Bhd have been transferred to the Prime Minister’s Department, from the Finance Ministry previously.

“These two government-linked investment companies have enormous investments in Malaysia’s leading publicly-listed companies, thus giving the Prime Minister significant influence over these enterprises,“ Ideas senior fellow Prof Dr Edmund Terence Gomez (pix) said.

In its election manifesto, the Buku Harapan, the government promised to reform governance of GLCs, including ensuring that the appointment of their board of directors would be made based on merit, not on political considerations.

However, changes have been made to the ministerial reporting lines for GLCs in five key ministries, thus resulting in the concentration of important economic institutions under Bersatu ministers as well as those widely perceived to be aligned to the Prime Minister.

source https://www.thesundaily.my/business/ideas-concentration-of-corporate-power-in-hands-of-pm-HG1549584