Advancecon secures two East Coast Rail Link contracts worth a total of RM80.8m

PETALING JAYA: Advancecon Holdings Bhd has secured two East Coast Rail Link (ECRL) contracts totalling RM80.8 million, from China Communications Construction (ECRL) Sdn Bhd.

The first contract is worth RM53.7 million starting from Sept 7, 2020 to Jan 6, 2023. The second contract is valued at RM27.1 million, commencing Sept 7, 2020 to Sept 6, 2022.

Advancecon group CEO Datuk Phum Ang Kia said these contract wins are a timely boost for the group’s existing earthworks and civil engineering works orderbook, and signifies the confidence its client has in the group to be part of the country’s biggest infrastructure development.

“These contracts prepare the group to be well-positioned and more competitive in future ECRL tenders due to the presence of mobilised resources. The government’s ongoing plan to implement the ECRL in the next few years is certainly positive for the group’s future prospects within this infrastructure megaproject,” Phum said in a statement.

With the addition of these two contracts, Advancecon’s orderbook expanded to RM771.1 million, with earnings visibility for at a minimum of 28 months.

source https://www.thesundaily.my/business/advancecon-secures-two-east-coast-rail-link-contracts-worth-a-total-of-rm808m-JM3806694

Iconic Worldwide to diversify into PPE manufacturing with RM155.5m investment

PETALING JAYA: Iconic Worldwide Bhd is looking to diversify its existing core businesses to include manufacturing and trading of personal protective equipment, as well as disposable face masks and gloves (PPE business), with a total investment of RM155.51 million.

A filing with Bursa Malaysia shows that the group plans to install and commission glove and disposable face mask production lines which are expected to yield a minimum production capacity of 3.1 billion pieces of gloves a year and 222.7 million pieces of face masks a year.

The RM155.51 million investment will be used for land acquisition, construction of a manufacturing facility, installation and commission of production lines, other equipment and working capital. It will be financed via a combination of internally generated funds, bank borrowings, and/or fundraising exercise.

Iconic has identified and plans to acquire a parcel of land measuring 6 acres in Batu Kawan, Penang, for the construction of the new manufacturing facility.

A total of 22 production lines comprising 12 glove-dipping lines and 10 mask production lines will be installed and commissioned over 12 months, at a total cost of RM78.2 million.

The exercise is expected to be completed by second half of 2020. Furthermore, the new factory is expected to be completed within 12 months from the commencement of construction and operate by second half of 2021.

Iconic Worldwide managing director Datuk Tan Kean Tet (pix) expects demand for PPE to be sustainable even after the Covid-19 pandemic due to prevailing public awareness of the need for self-protection and hygienic practices.

“Therefore, it is timely to capture the rising demand for the product offerings under the PPE business. We will also be targeting countries with high Covid-19 infection rates such as European & US as principal export markets for the PPE business.”

He added that the proposed diversification will provide an alternative income stream to the group, and will also provide an opportunity for the group to grow its revenue and enhance its business portfolio.

source https://www.thesundaily.my/business/iconic-worldwide-to-diversify-into-ppe-manufacturing-with-rm1555m-investment-AK3804211

Oil prices to trade sideways in September, says Fitch Solutions

PETALING JAYA: Fitch Solutions has projected oil prices to remain at an average of US$44 (RM182.58) per barrel for 2020, before rising to an average of US$51 in 2021.

It noted that the Brent continues to trade sideways as it faces key points of resistance around US$45-45.20 per barrel.

“A sustained break to the upside will likely require an improvement in sentiment, which to-date has remained weak, despite a marked tightening in the physical crude market since the April price lows,” said the research arm of Fitch Ratings.

It opined that the market will continue to rebalance over the second half of the year and into next year, driven by continued drawdown of global inventories and further gains in prices.

Fitch Solutions noted that the rebalancing will be slow, reflecting a gradual recover on demand and return of shut-in wells and the unwinding of the Opec+ deal on the supply side.

“Moreover, the contango term structure in Brent has gradually deepened this month, typically an indication of market loosening and a bearish sign of sentiment and prices,” it said.

Fitch Solutions highlighted that the market management by Opec+ has been unprecedented, as the market saw 8.9 million barrels per day (bpd) – equivalent to around 9.0% of global supply – removed by Opec and Russia in May with a further 1.43 million bpd cleared in June.

Under the agreed schedule, cuts will decline from 9.7 million bpd to 7.7 million bpd on Aug 1.

On the whole it noted that these measures will be insufficient to prevent significant increases in the group’s output and that the core Gulf Cooperation Council (GCC) producers – Saudi Arabia, Kuwait and the United Arab Emirates – will be sensitive to price action and may limit the growth in their production, should market conditions dictate it.

Outside Opec+ particularly in the US, Fitch Solutions pointed out the supply shelved in Q2 due to weakened demand and Covid-19 related disruption are being brought back online, leading to a rise in production which may weigh on prices in the short run.

Although, its effect is expected to be temporary as the data signalled a year-on-year (y-o-y) decline in global crude, condensate and NGL supply in both 2020 and 2021.

In response to the price collapse, producers have aggressively pared back on spending and it forecasted a drop in global capex of 23% year on year in 2020.

Fitch Solutions elaborated that the initial rebound in demand was somewhat stronger than anticipated, as a result it has improved its forecast for global fuel demand from a 7.2% y-o-y decline to a 5.9% y-o-y drop in 2020.

source https://www.thesundaily.my/business/oil-prices-to-trade-sideways-in-september-says-fitch-solutions-KK3804194

Paramount remains bullish on property sector’s second-half outlook

KUALA LUMPUR: Paramount Corporation Bhd remains bullish on the property sector’s prospects in emerging markets, especially in Malaysia, for the second half of the year (H2’20), despite the uncertainties due to the Covid-19 crisis.

Group chief executive officer Jeffrey Chew Sun Teong (pix) said the property take-up rate is expected to recover in H2’20 due to the gradual reopening of the economy since the implementation of the conditional movement control order.

“Our employment market is very stable, if compared with the United States, and that is just for government services. We also have a number of government-linked companies (GLCs) in the country, which makes it a bit harder for them to retrench because the government wants to preserve employment,” he told a media briefing on the company’s first-half financial performance 2020 here today.

Besides the employment market, he said Malaysia has other strengths to support its economic recovery moving forward, including its status as a commodity-based country.

“(Global) Oil prices are stabilising and that is even before the full recovery of the MCO. When full normalisation kicks off, oil prices will continue to pick up. That is good for Malaysia because we are among the oil-producing countries,” he said.

In addition, he said the low-interest-rate environment, coupled with the reintroduction of the home ownership campaign in June 2020, is expected to incentivise property purchases.

As at June 30, 2020, the group’s unbilled sales stood at RM873 million, with a couple of ongoing projects on track for completion this year, including Suasana at Utropolis Batu Kawan and Urbano at Utropolis Glenmarie.

The group is also scheduled to launch five new property projects in the second half of this year, mostly in the third quarter, with an estimated total value of RM640 million, namely in Sepang, Klang, Cyberjaya, Shah Alam and Sungai Petani. – Bernama

source https://www.thesundaily.my/business/paramount-remains-bullish-on-property-sector-s-second-half-outlook-YK3804177

LKL International bags maiden contract, worth US$19m, to supply medical gloves to China firm

PETALING JAYA: LKL International Bhd’s wholly owned subsidiary, LKL Advance Metaltech Sdn Bhd, has secured a US$19 million (RM78.5 million) sales contract to supply nitrile examination gloves to a China-based company.

The contract is its first export contract to China as well as its maiden venture into the distribution of gloves to the medical and healthcare sector.

The group said it would continue to broaden its product portfolio, which currently encompasses the manufacturing of medical beds and peripherals, and distribution of personal protective equipment as well as other medical peripherals and devices.

Its managing director, Lim Kon Lian, commented that the sales contract would boost its export contribution from Asian markets and significantly enhance its performance for FY2021.

“Thus, this major development demonstrates the benefits of expanding our exports network to play a greater role in supplying medical/healthcare equipment and related products to all regions,” he said in a press release.

For its financial year ended April 30, 2020, LKL International’s revenue contribution from exports stood at RM9 million or 16.5% of total group revenue, rising from RM6.6 million worth of exports in the preceding financial year.

source https://www.thesundaily.my/business/lkl-international-bags-maiden-contract-worth-us-19m-to-supply-medical-gloves-to-china-firm-HJ3803810

SPiCE VC first digital security to list on Labuan's Fusang Exchange

KUALA LUMPUR: SPiCE VC, the leading venture capital (VC) fund in the Blockchain/Tokenisation ecosystem, will be the first digital security to list on Fusang Exchange, one of Asia’s first digital securities exchanges.

According to a statement, the listing signals accelerating growth of the digital security ecosystem, especially in the Asia-Pacific region of three billion people.

The announcement also solidifies SPiCE VC’s leadership as the pioneer in the ecosystem creating the standards and partnerships which are delivering accessibility, predictability and security for investors in digital securities.

“The barrier-breaking partnership will advance our mission to provide market participants more diverse investment opportunities and access to liquidity, and to further the digital revolution in capital markets,” said SPiCE VC Founder & Managing Partner, Tal Elyashiv.

Most international investors, subject to the relevant jurisdictional regulatory constraints, will now have access to SPiCE via the Fusang Exchange (in addition to the current marketplaces listing SPICE).

Fusang Exchange is a fully licensed Securities Exchange in Labuan. The exchange facilitates the public listing of securities, exactly the same as the traditional exchanges.

Fusang’s end-to-end solution, which serves both sophisticated and retail investors, offers digitally issued securities the opportunity to easily and securely list on the exchange – offering investors greater opportunities to unlock liquidity.

This latest announcement comes on the heels of SPiCE VC’s significant partnership with Coinbase Custody, which will

source https://www.thesundaily.my/business/spice-vc-first-digital-security-to-list-on-labuan-s-fusang-exchange-CM3806848

Affin bank bags insurance product innovation, start-up banking initiative awards

KUALA LUMPUR: Affin Bank Bhd bagged the ‘Insurance Product Innovation of the Year - Malaysia’ and ‘Start-Up Banking Initiative of the Year’ awards at the Asian Banking and Finance Retail Banking Awards 2020.

President and group chief executive officer Wan Razly Abdullah Wan Ali said although the bank’s start-up banking proposition was recognised previously, this is the first win for Affin SMEasy Protect, a business continuity insurance product designed for small and medium enterprises and micro-businesses with the lowest annual premium starting from RM15 per year.

“This marks a unique win for Affin Bank for its differentiated insurance protection for the SME community,” he said in a statement today.

The highly prestigious awards honour outstanding banks that have introduced ground-breaking products and services successfully in a rapidly evolving tech and business landscape. -Bernama

source https://www.thesundaily.my/business/affin-bank-bags-insurance-product-innovation-start-up-banking-initiative-awards-YL3805643