Global Business Services sector to post strong growth in next 3 years

Posted on : 27-04-2017 | By : sabah today | In : National Business

ISKANDAR PUTERI: The Global Business Services (GBS) sector in Malaysia is expected to grow between 10% and 15% over the next three years, given the fact that many companies strive to run their businesses more effectively and efficiently.

Malaysian Investment Development Authority Chief Executive Officer, Datuk Azman Mahmud, said the growth would definitely help Malaysia to become a high-income and knowlegde-based country.

He said the GBS sector has always been one of core focuses in economic development, with a total of 499 GBS companies having set up their outsourcing centres and back offices in Malaysia.

Out of this, nine was established in GBS Iskandar including Frost & Sullivan, Brandt International, DayThree, Vistra and Odinsoft.

More than 93,000 jobs were created as well.

“It is worthy to note that such performance has surpassed the target set forth under the Business Services National Key Economic Area of generating 43,330 jobs by 2020.

“More importantly, these jobs which provide an average monthly salary of RM7,000 are very much in line with the government’s aim to create middle-to high-income jobs for Malaysia,” he said during the launch of Outsourcing Malaysia (OM) southern office at Medini 6, here, today.

The office, part of OM’s initiative to establish world-class GBS ecosystems across Malaysia, will facilitate the growth of the local industry while enticing the world to Malaysian shores.

The OM’s office is also part of its commitment to support industry members who have established operations in Iskandar Puteri via the GBS Iskandar initiative.

Azman said given its strategic location as the world’s best nearshore to Singapore, its lower cost base, the availability of a high-skilled workers and many incentives provided by the government, GBS Iskandar was well positioned to attract more investors in many years to come.

To-date, GBS Iskandar has created over 2,800 professional jobs within the sector while successfully attracting over RM1.4 billion (US$315 million) in committed investments.

SOURCE— BERNAMA

Moody’s: Malaysian banking outlook stable for 12-18 month

Posted on : 27-04-2017 | By : sabah today | In : National Business

KUALA LUMPUR: The outlook for Malaysia’s banking system is stable over the next 12–18 months, according to Moody’s Investors Service.

In a statement today, Moody’s vice president and senior analyst Simon Chen said the key drivers of the Malaysian banking system’s stable outlook were Moody’s expectation that operating conditions will stabilise on the back of a gradual recovery in global growth, resulting in more stability in the banks’ asset quality and profitability.

“The banks’ strong capital and stable funding levels, and our expectation of a continued high degree of government support, also underpin our stable outlook for Malaysian banks,” added Chen.

Moody’s conclusions are contained in its just-released report titled Banking System Outlook — Malaysia: Stabilizing Asset Risks and Profitability, Strong Capital Drive Stable Outlook, authored by Chen.

The stable outlook is based on Moody’s assessment of five drivers: operating environment (stable), asset quality and capital (stable), funding and liquidity (stable), profitability and efficiency (stable), and systemic support (stable).

With the operating environment, Moody’s says operating conditions are stabilising, with the improvement in global growth, recovery of global commodity prices, and continued growth in domestic demand.

It said real GDP growth should register 4.3% on average in 2017–18, up from 4.2% in 2016, indicating that domestic economic activity will remain robust.

However, Moody’s said ringgit volatility will likely persist because of further adjustment in capital flows, and will weigh on business and consumer sentiment.

On asset quality, Moody’s report says asset risks are stabilising on the back of improving macroeconomic conditions.

“But the high leverage among corporates and households remains a tail risk, with risks mitigated by Malaysia’s diversified economy and stable employment conditions,” it said.

As for capital, the report said the banks will demonstrate stable capitalisation, as capital generation exceeds consumption, owing to moderate loan growth.

In particular, Moody’s says the banks’ capitalisation will remain sufficient to withstand asset quality shocks, even under various stress scenarios.

“With funding and liquidity, the banks will show stable funding and liquidity profiles because of benign credit growth, and despite a tightening in domestic liquidity from volatile capital flows. So far, the impact of fund outflows since late 2015 has been manageable for the banking system, with retail deposits maintaining robust growth and offsetting pressure created by institutional deposit outflows.

“Deposit competition among the banks remains healthy, and banks are positioned well to comply with Basel III liquidity coverage ratio requirements,” it said.

As for profitability, the rating agency said that over the next 12–18 months, profitability will stabilise — as credit costs normalise from elevated levels — owing to stabilising asset risks.

However, it said margin pressure will persist because of keen competition for deposits.

On the issue of government support, Moody’s report says the Malaysian government (A3 stable) will continue to demonstrate a strong capacity to provide support to the banks in times of stress, given its commitment towards fiscal reforms and a narrower fiscal deficit.

Moody’s continues to view Malaysia as a high-support country, pointing out there have been no bank failures since Bank Negara Malaysia was established in 1959.

Moody’s also noted that recent regulatory reforms have not suggested any shift in government policy on the resolution of ailing banks, outside of liquidation.

Moody’s rates 11 banks in Malaysia: eight conventional commercial banks, one investment bank, one Islamic bank and one government-owned development financial institution.

The rated commercial banks accounted for around 80% of Malaysian banking system loans and deposits at end-2016.

SOURCE:- THE EDGE MARKETS

UCSF (University College Sabah Foundation) set up to explore potential of resources – Sabah Foundation

Posted on : 25-04-2017 | By : sabah today | In : Local

SIPITANG - The vision of establishing University College Sabah Foundation (UCSF) is among others to explore all resources including natural resources in the state through education and research.

Sabah Foundation director Datuk Sapawi Ahmad said to achieve the vision, UCSF had and would continue to collaborate with higher education institutions locally and abroad in line with the aspiration of the university college.

According to Sapawi, UCSF which is a Sabah state government subsidiary with 400 students, offers courses in various fields at diploma and first degree level.

“Our focus is on research, tourism and hospitality. But we also have courses in science, entrepreneurship, accounting and economics.

“Sabah Foundation has it own conservation sites for world standard research such as Danum Valley and Malia Basin. The latest project at Imbak Canyon has been completed with Petronas sponsorship which amounted to RM70 million for research infrastructure,” he said.

Sapawi told reporters after opening the ‘Seminar Scor A+ at SPM’ organised by Sabah Foundation with the cooperation of Berita Harian which was attended by students from 15 schools from the districts of Sipitang, Beaufort, Kuala Penyu, Membakut and Menumbuk.

He said UCSF is now strengthening its academic management and communications as well as collaborations with other universities to ensure the university college is on par with foreign universities.

According to him, the emphasis on tourism, economics and hospitality is to assist the planning of the future economic development of Sabah including the Sabah International Convention Centre (SICC) which is expected to be completed by the end of 2018.

“When completed, SICC will create thousands of employment opportunities in tourism, hospitality, hotel and business network,” he said.

SOURCE– BERNAMA

Lepa floating restaurant to highlight Bajau boat building skills

Posted on : 25-04-2017 | By : sabah today | In : Local

SEMPORNA– A local leader agreed that a ‘Lepa’(traditional sailing boat of theBajaucommunity here) floating restaurant would be a good way to showcase the skill of the community in boat-building.

State Finance Assistant Minister Datuk Ramlee Marahabanin concurring with the proposal by State Tourism, Culture and Environment MinisterDatuk Seri Masidi Manjun, added that the community could capitalise on the idea to benefit economically.

He said the traditionalboat-building trade in itself would be a new tourism icon for Semporna which is already known as a tourism hub.

“With the floating restaurant concept in place, the boat would not be at the forefront only during the Regatta Lepa but all the time as a tourist attraction,” he told reporters after launching the entrepreneurcarnival organised jointly byAmanah Rakyat (MARA) and the District Education Office here today.

Meanwhile, Ramleedescribedthe carnival as “a good platform to provide disclosure to the public, especially the youth about the existence of MARA that could serve as tools to assist the people in their business”.

“The people, especially youth should know that MARAwouldbe able to give them opportunity to start their business in line with the government’s recommendation which encourages the youth to engage in business that will be able to help them to generate income,he said.

He said MARAwasa good platform to assist the community ingainingmore income through business and that the organisation of such programme wouldgreatlybenefit the people.

“Seize the opportunity and use the facility such as financial assistance offered by MARA to involve in business and gain profits,” he added.

SOURCE– BERNAMA

RSPO (Roundtable for Sustainable Palm Oil) to release 3rd revision of certification by Nov 2018

Posted on : 25-04-2017 | By : sabah today | In : National Business

SUBANG JAYA: The Roundtable for Sustainable Palm Oil (RSPO) will release the third revision of its certification upon  completion of a review with stakeholders  from next month, said chief executive officer Datuk Darrel Webber.

Speaking to reporters here yesterday, he said the new certification, expected to be launched by November 2018, would include new elements such as labour rights and sustainability.

“Our next standard should be measureable, and  also be smallholders-friendly to attract more of them  to join the scheme.We will also be looking into labour rights,” he said on the sidelines of a two-day RSPO Roadshow 2017 yesterday.

Also present was RSPO director of impact and evaluation, Oi Soo Chin. Webber said it would take up to two years to iron out the RSPO details.

“We want to minimise subjectivity in our standards, especially in the principles and criteria section.

“At the end of the day,  we want RSPO standards to be more objective, and one that can be further quantified by tangible numbers,” he added.

Webber said the RSPO also planned to strengthen its jurisdictional approach, where the palm oil industry group would collaborate with state governments to have palm plantation lands certified by it.

“We have made headway with the jurisdictional approach with Sabah, Central Kalimantan and South Sumatera pledging their commitment. We have also seen Ecuador taking a positive leap towards generating more certified sustainable palm oil,” he added.

SOURCE— BERNAMA

Rahman: M’sia among best in economic planning

Posted on : 25-04-2017 | By : sabah today | In : National Business

KUALA LUMPUR: The International Monetary Fund (IMF) and World Bank have praised Malaysia for its impressive strategic economic planning and in managing to have both long and short term economic plans.

Minister in the Prime Minister’s Department Datuk Abdul Rahman Dahlan said he was happy to have Malaysia mentioned as one of the best nations in the world for its economic planning and on par with other Organisation for Economic Co-operation and Development (OECD) countries.

He also said representatives from both the IMF and the World Bank conveyed the message to him at a meeting about two weeks ago.

He was speaking to reporters after attending the international Sustainable Development Guide (SDG) workshop at Sunway University here today.He was joined at the event by his counterparts from Laos, the Philippines and Indonesia.

Abdul Rahman in his speech earlier, echoed Prime Minister Datuk Seri Najib Abdul Razak’s recent remarks on Malaysia being on the right track towards achieving the global Sustainable Development Goals 2015-2030 agenda.

“We are committed to doubling the average income of the B40 households from US$700 (RM3,066) in 2014 to US$1,500 (RM6,570) and increase the participation of women in the workforce to 59 per cent by 2020,” he said.

SDG is a global transformation plan adopted by countries around the world and seeking to end poverty, protect the planet and ensure prosperity through 17 goals, to be achieved over the next 15 years.

“What is the 2030 global agenda for sustainable development has already been part of our 11th National Development Plan with some aspects conducted before it ,” Rahman said.

Sabahans are loyal workers — director

Posted on : 24-04-2017 | By : sabah today | In : Local

KOTA KINABALU: Employers in the country have rated Sabahans as loyal workers, said Sabah Labour Department director Kamal Pardi.

Sabahans are also known for their productivity, he said at the Kembara Kerjaya Sabah 2017 here yesterday.

Kamal added that some of the employers have been taking part in the career carnival several times.

The first day of the event at the Tabung Haji hotel near here yesterday attracted more than 1,500 job seekers.

The career carnival will be organised at six districts in Sabah namely, Kota Kinabalu, Keningau, Tawau, Semporna, Lahad Datu and Sandakan.

There are more than 150 employers at the Kembara Kerjaya Sabah 2017 providing nearly 5,000 job vacancies in various sectors, said Kamal.

The response for the carnival has been encouraging, Kamal added.

Jobseeker Abdul Razak Datu Lajabiti, 24, described the event as a way for the government to help people who were unemployed to get a job.

The Communications Degree holder who graduated from Universiti Malaysia Sabah (UMS) in September, last year said he had applied for several vacancies using another platform but remained unemployed.

He said that this was the first time he took part in a career carnival to seek out employment opportunities.

Source: The Borneo Post (Sabah)

Cambodia offers investment opportunity

Posted on : 24-04-2017 | By : sabah today | In : Local

Source: The Borneo Post (Sabah)

KOTA KINABALU: Investing in properties in Cambodia, specifically in Sihanoukville, promises good return with minimal risks, said Carey Real Estate (Sabah) Sdn Bhd business development advisor Damien Ooi.

Ooi said Cambodia’s economy has been booming since the country opened up its economy in 2010, with strong Gross National Product (GNP) growth averaging at eight per cent for more than 10 years.

He said Cambodia was one of the top three foreign investor-friendly countries in the Asean region, after Malaysia and Singapore, as there was no capital control imposed on foreigners.

Ooi added that Cambodia allowed foreigners to own real estate on freehold strata title, unlike Thailand and Vietnam where foreigners were not permitted to acquire properties.

There is no restriction in buying and selling properties, nor is there a restriction on remittance of capital or profit in and out of Cambodia, he said, adding that foreigners also enjoyed low tax rates in the country.

Amidst Cambodia’s growing economy, Ooi said there has been a shift of investments from Phnom Penh to the up and coming Sihanoukville town.

“Sihanoukville is the next booming area in Cambodia,” he said in a talk on real estate investment in Sihanoukville here yesterday.

In fact, Ooi likened Sihanoukville to Kota Kinabalu 10 years ago as the Cambodian town has its own port, international airport and Special Economic Zone.

The 20-kilometre stretch of white sandy beach with 30 to 40 islands off Sihanoukville also augured well for the town’s tourism sector.

On top of that, he said Sihanoukville also served as the base for new oil and gas offshore activities in Cambodia.

At present, Ooi Sihanoukville has a said total population of more than 300,000 with approximately 20,000 foreigners, mainly from China and Taiwan, living and working at the Special Economic Zone, construction, casino and food and beverage industries in the town.

As such, Ooi said the new D’Seaview development in Sihanoukville, a mixed development with condominium, retail shops, offices and hotel, was a viable investment.

D’Seaview is developed by PH One Development (Cambodia) Ltd, a member of HLH Group Ltd, Singapore. HLH Group Ltd was listed on the Mainboard Stock Exchange of Singapore on June 21, 2000. Carey Real Estate was appointed as the Malaysia marketing agent of D’Seaview project.

Ooi said D’Seaview offered more than 700 condominium units, with one to three bedrooms, priced at USD95,000 onwards inclusive of Value Added Tax (VAT), which was around RM400,000.

To date, more than 50 per cent of the condominium units have been sold, he said.

With Sihanoukville serving as the base of oil and gas offshore activities, Ooi was confident that the demand for the condominium units would grow soon.

He added that the condominium units would be ready in the next two years, while the hotel and shop lots were slated to be completed next year.

“The developer has done the groundwork and piling. The structure is coming up,” he said.

Ooi said the developer was also offering Malaysian buyers a three-year guaranteed rental return of 10 per cent per annum, as well as fully fitted and furnished units.

Additionally, he said buyers who purchased the condominium units yesterday would be offered a free three-day two-night trip to Sihanoukville to look at the D’Seaview project. Flight tickets to Phnom Penh are not included but the two-night hotel accommodation, lunch and dinner, airport pickup and all ground transfers are provided.

Booking fee is RM2,000, refundable within a week.

“Investors are looking at a very good return with minimal risk because whatever (property) you buy will be in your name,” he said.

Carey Real Estate was established in Kuala Lumpur since 1983 and has two offices in Kuala Lumpur and one in Penang, Johor and Kota Kinabalu.

Source: The Borneo Post (Sabah)

MCCC Sabah welcomes China investments

Posted on : 24-04-2017 | By : sabah today | In : Local

KOTA KINABALU: Malaysia-China Chamber of Commerce (MCCC) Sabah branch president Datuk Frankie Liew welcomed China firms to invest in the tourism, agriculture and herbal medicine sectors in Sabah.

“Sabah has lots of valuable medicinal plants but we lack the expertise, technology and funds to harness its potential,” he said.

On another matter, Liew said Chinese education was gaining importance in Sabah with the rise of China.

“Many of the bumiputera children have enrolled in the local Chinese schools,” he said during a courtesy call by a China media delegation here.

He said the sustenance of Chinese education in Sabah very much relied on financial support and effort from the Chinese community and businessmen, and hoped that their counterparts in China could assist the schools’ development.

Meanwhile, Yu Jieming from The Chinese Overseas Publishing House, Beijing, China said the delegation hoped to learn more about potential investment areas in Malaysia during their visit.

Yu said the delegation also wished to know more about Malaysian policies on Chinese investments and to further promote the Belt and Road collaboration opportunities at the community level.

Source: The Borneo Post (Sabah)

Signboard to promote Sandakan Heritage Trail

Posted on : 24-04-2017 | By : sabah today | In : Local

SANDAKAN: A signboard containing information on the Sandakan Heritage Trail has been put up as part of efforts to promote it as a tourist attraction in the district, Sandakan Heritage Trail Committee chairman Lai King Hang said Monday.

He said the user-friendly board containing drone images of the places along the trail is located at the steps leading to Wisma Sandakan and Wisma Perbandaran Majlis Perbandaran MPS.

It was launched by Sandakan Municipal Council president Datuk James Wong.

The trail covers routes to 11 historical sites Sandakan town, namely the Jamek Mosque, William Prayer Memorial, Sandakan War Monument, the 100-Step Staircase, Agnes Keith Home, Sandakan Heritage Museum, Sam Sing Kung Chinese Temple, St Michael Church, Malaysia Fountain, Wisma Warisan and the Tangga Lama.

SOURCE:- BORNEO TODAY

Petronas launches state-of-the-art gas terminal

Posted on : 20-04-2017 | By : sabah today | In : National Business

KUCHING: Petroliam Nasional Bhd (Petronas) on Tuesday launched its state-of-the art Terengganu Gas Terminal (TGAST) in Kertih, the first of such facility to utilize Petronas-owned carbon dioxide removal technology expected to give a boost to the development of Malaysia’s offshore gas fields with high carbon dioxide content.

The facility was launched by Petronas president and group chief executive officer Datuk Wan Zulkiflee Wan Ariffin, as part of his visit itinerary to Petronas’ operations in the East Coast region from April 17 to 18.

According to a statement yesterday, Wan Zulkiflee said the TGAST project was not only a testimony of the group’s continuous commitment towards adding value to the oil and gas resources found offshore Peninsular Malaysia but also reflected the company’s larger cleaner energy commitment in support of Malaysia’s environmental agenda to reduce its carbon footprint by 2030.

He added that TGAST, with the capacity to process up to 700 mmscfd of gas from the Malaysia-Thailand Joint Development Area (MTJDA) and from the North Malay Basin offshore Terengganu, would help ensure the security and sustainability of supply to Petronas’ customers in Peninsular Malaysia as well as to Petronas’ own facilities in the region, particularly its integrated petrochemical complexes in the East Coast.

Wan Zulkiflee said the launch of TGAST was also a proud moment and achievement for Petronas, as it not only utilized the PN-1 Membrane System for carbon dioxide removal developed by Petronas and a partner, but also because the project involved more than 80 per cent participation of local contractors.

The project was successfully completed four months ahead of schedule. At the launch, TGAST also celebrated 10 million safe man hours without lost-time incident (LTI), and 1,300 incident-free days from the project start date in 2013.

Apart from the gas terminal, the project also includes compressor units, storage tanks and related infrastructure and the installation of temperature control machinery and safety systems.

SOURCE:- THE BORNEO POST

Swedish firms invest RM2.43 billion in Malaysia

Posted on : 20-04-2017 | By : sabah today | In : National Business

NILAI: Swedish investors have recorded  90 manufacturing projects worth US$729.19 million (RM2.43 billion) in Malaysia as of December 2016 and generated 5,800 jobs at various levels.

Second International Trade and Industry Minister Datuk Seri Ong Ka Chuan said Malaysia is pleased that Swedish companies continue to view the country as an attractive investment destination.

“Last year the Malaysian Investment Development Authority (Mida) approved four additional manufacturing projects with Swedish interest, valued at US$438.9 million or RM161.1 million.

“Other than SKF, renowned Swedish companies that have established their global foothold in Malaysia include Volvo, SCA Hygiene, Bromma and Scania,” he added.

He said this in his officiating remarks at the factory expansion and launching of new products namely, Tailored range of spherical roller bearings (SRB) and spherical roller thrust bearings by SKF Malaysia yesterday.

Also present was SKF Group president and chief executive officer Alrik Danielson, SKF Malaysia Managing Director Anders Fogelberg and Swedish Ambassador to Malaysia, Dag Juhlin-Danfelt.

Ka Chuan said Malaysia’s machinery and equipment (M&E) industry is now among the largest and strongest in Asean, in line with the national transformation from being a commodity-based country to manufacturing.

“This industry boasts a strong export performance that contributed more than five per cent to the total export of manufactured goods last year.

“With a healthy Compound Annual Growth Rate (CAGR) of 4.3 per cent, the M&E export is projected to reach US$10.8 billion in 2020,’ he added.

He said Mida approved  88 manufacturing projects last year with investments worth US$4342.1 million or RM1.5 billion from both foreign and local sources.

“We are proud that Malaysia is increasingly becoming a choice destination for multinational companies seeking to outsource their manufacturing processes,” he added.

Ka Chuan said Malaysia as an open economy continues to welcome quality foreign investments and via collaboration with foreign companies such as SKF, it can foster greater partnership with global firms and facilitate strategic linkages between them and local entities.

SOURCE— BERNAMA

Beyond China, carmakers seek new drivers of Asian growth

Posted on : 20-04-2017 | By : sabah today | In : International Business

Shanghai – Southeast Asia’s potential beckons as global automakers look beyond China’s massive market to extend their sales boom in the region, but executives say they face a struggle to match the explosive Chinese growth.

Chinese passenger-car sales have quadrupled over the past 10 years to 24.38 million last year, having become the world’s biggest market in 2009.

But with Chinese economic growth moderating, one question being asked at the Shanghai Auto Show is: where in Asia can carmakers look for the next boom?

“There is a challenge to seek growth where the growth is. You look at countries that are less equipped and are in the process of growth or acceleration,” said Marc Boilard, industry analyst at the firm Oliver Wyman.

Southeast Asia’s potential remains significant, with more than 600 million people, solid economic growth and just 2.1 million passenger vehicles sold last year in the 10-country Association of Southeast Asian Nations (ASEAN).

But carmakers say issues such as import taxes, regional dominance by Japanese manufacturers and lagging infrastructure work against broad-based growth.

ASEAN “is a market that is closed, where import taxes are very high”, making it necessary to invest in local manufacturing, said Carlos Tavares, chairman of France’s PSA, which produces Peugeot and Citroen.

Indonesia has 250 million people, but US automaker Ford pulled out last year in the face of Japanese firms’ more than 90% market share, said David Schoch, CEO of Ford China.

“When I sit back and look at it, and think about electrification, smart mobility, and where the industry is going … where are you going to place your bet?” Schoch said.

Ford has announced plans to double down on China, where electric-vehicle and SUV sales continue to surge.

“Although Indonesia represents a fairly large market and is growing, again, we couldn’t see a way forward that we could be successful there,” Schoch said.

Vietnam holds potential with more than 90 million people and less than 30 vehicles per 1000, compared with China’s 120 and 800 in the United States.

BYD CONCEPT: A Singulato Concept car is displayed during the first day of the 17th Shanghai International Automobile Industry Exhibition in Shanghai. Image: AFP.

“The only downside, however, is that these markets have been dominated by the Japanese for a very long time,” said Franois Jaumain of PwC Autofacts.

Japanese carmakers account for 71% of sales in Thailand and 59% in Vietnam, according to PwC.

PSA, whose China sales plunged 16% in 2016, plans to target 5% of Vietnam’s passenger-car volume, which reached just 158 000 last year.

It also is pursuing a strategic partnership with Proton, the struggling national carmaker of Malaysia, where half a million cars were sold last year.

Infrastructure development, which helped facilitate China’s private-car boom, has not kept up in Southeast Asia.

Sebastien Amichi of consultancy Roland Berger said: “We’ve been talking a long time about the ‘new dragons’, which have had difficulty taking off.

“When we take these countries together, Southeast Asia could be a good growth area, if the infrastructure and banking networks are set up effectively.”

SOURCE:- WHEELS24

Perodua aims for sales target of 202,000 units this year

Posted on : 20-04-2017 | By : sabah today | In : National Business

KUALA LUMPUR— Perusahaan Otomobil Kedua Sdn Bhd (Perodua) has set a sales target of 202,000 units for 2017, a contraction of two per cent from the 207,1000 units recorded in 2016, amid a continuous challenging economic environment.

President and Chief Executive Officer Datuk Aminar Rashid Salleh said despite a three per cent contraction in sales performance for 2016 as compared to the initial target of 216,000, market share last year grew to 35.7 per cent from 32 per cent, the company’s highest on record.

On the total industry volume (TIV), Perodua sees a slight improvement to the market with two per cent growth to 590,000 units this year, from 579,600 in 2016.

“Based on this projection, we target to capture 34 per cent of the market share or sell surpassing the 200,000 mark at 202,000 vehicles in 2017,” he said at the Perodua 2016 Performance Review here today.

Aminar said Perodua’s conservative sales target for 2017 will translate into a decline.

“Under very tough market conditions and probably because other players also face challenges, the industry’s TIV for last year contracted 13 per cent, but we dropped just three per cent.

“We forecast the market to continue to be tough this year as shown in the number of bookings and as competition also gets tougher,” he added.

He said if for any reason there was an improvement in the economic indicators, Perodua would review upward, the target for the year.

Despite the tough sales environment locally, Aminar said Perodua grew export volume by six per cent last year to 4,700 units from 4,400 in 2015, with 63 per cent being to Indonesia.

On the profitability strategy this year, he said Perodua would focus more on after sales for revenue growth.

On capital expenditure (Capex), Aminar said Perodua’s spending would be higher at RM557 million this year, compared to RM492 million in 2016, aimed at improving equipment, process flow, and improving productivity at current plants as well as improving the network.

On impact of the weakness in the ringgit, Aminar said it had an effect on costings for Perodua.

“We do import parts in the US dollar and yen. However, it is somewhat mitigated by our higher localisation.

“We will continue to monitor the situation. At this point, we are continuing to absorb (the weaker ringgit’s impact) and have no plans to review prices,” he added.

Aminar also shared that 2017 marked the beginning of Perodua’s new Transformation 2.0 programme, a five-year roadmap from 2017 to overcome future challenges and the economic environment.

“Our vision is to be a leading affordable automotive brand regionally with global standards,” he said.

SOURCE— BERNAMA

Ka Chuan: M’sia remains on firm economic footing

Posted on : 20-04-2017 | By : sabah today | In : National Business

NILAI: Malaysia remains on a firm economic footing with gross domestic product (GDP) growth projected at 4% to 5% this year, Second Minister of International Trade and Industry Ong Ka Chuan said.

He said the nation’s sustainability growth would be supported by strong domestic consumption, comfortable levels of external reserves, low inflation and accommodative monetary policy.

“Despite the global economic headwinds that have created a challenging environment, we remain steadfast in creating one that is business friendly,” he said.

Ong said this in his address when launching the new products, namely tailored range of spherical roller bearings (SRB) and spherical roller thrust bearings and announcement of factory expansion by SKF Malaysia here today.

He added the government through the Ministry of International Trade and Industry and Malaysian Investment Development Authority would continue to facilitate and nurture a conducive business environment for investors to grow.

Also present at the ceremony were SKF Group President and Chief Executive Officer Alrik Danielson, SKF Malaysia Managing Director Anders Fogelberg and Swedish Ambassador to Malaysia Dag Juhlin-Danfelt.

Meanwhile, in press conference, Ong said Malaysia would be taking part in free trade as much as possible to enable the country to create a market not only for local investors but also international investors.

SOURCE– BERNAMA