CORPORATE

Green Packet: Proposes capital reduction to cancel RM455m accumulated losses. Green Packet has proposed to undertake a capital reduction exercise to reduce its share capital by RM455.52m to offset accumulated losses as at 31 Dec 17 (FY17). In a filing with Bursa Malaysia, Green Packet said as at 11 Jun 18, its issued share capital was RM155.88m comprising 758.72m shares, while share premium stood at RM412.8m. The accumulated losses of the company as at 31 Dec 17 stood at RM455.52m. Green Packet said the capital reduction is meant to rationalise the group’s statement of financial position by eliminating the entire accumulated losses via the cancellation of issued share capital, which is in line with the group’s strategies to turn around its business. The group also said this will enable it to pay dividends out of its retained earnings in future, when Green Packet returns to profitability. Green Packet said the issued share capital to be reduced and cancelled will predominantly be made up by the group’s share premium. (Source: The Edge Daily)

Hong Leong: MSIG Takaful to exit general business. Hong Leong MSIG Takaful Bhd (HLMT) will cease to be a composite licensed takaful operator with effect from Sunday, 1 Jul 18 under its internal streamlining exercise. HLMT will exit the general takaful business in line with the legislative requirements under Islamic Financial Services Act 2013 (IFSA) and will focus on its family takaful business. “With this, HLMT is confident of serving its customers better by focusing on family takaful business. The streamlining of the business and operations through this exercise is set to provide an opportunity for HLMT to grow to the next level whilst providing customers more value added, excellent product offerings and services,” it said. (Source: The Star)

Malaysia Airports Holdings: Gets Putrajaya's 'approval in principle' on OA's revenue sharing terms. The government has given its "approval in principle" to revenue sharing terms in managing airports under the new operating agreement (OA) with Malaysia Airports Holdings Bhd (MAHB), according to the airport operator's acting MD Raja Azmi Raja Nazuddin. Raja Azmi said MAHB and the government are still working on finalising the terms under the new OA, and he will engage with the Ministry of Transport to facilitate the progress. "At the moment, the operating agreement stated revenue sharing increases a quarter basis point or 0.25% per year. It is still applicable until such time when we finalise the terms of the new operating agreement, which at the moment we got the approval in principle, so we are still working on it," he said, adding that the current revenue sharing rate is at about "11% plus". (Source: The Edge Daily)

MBM Resources: Names Daihatsu MD Muhammad Iqbal as group president and CEO. MBM Resources has appointed its 51.5%-owned subsidiary Daihatsu (Malaysia) Sdn Bhd’s MD Dr Muhammad Iqbal Shaharom as the group's president and CEO. The appointment will take effect on 2 Jul 18. Muhammad replaces 63-year-old Nor Hadi Daud who retires tomorrow after holding the post since 1 Mar 17. Muhammad, 60, was appointed as MBM trading vice-president on 16 January this year, and has previously served in various capacities in top management positions in DRB-Hicom Bhd, Chery Automobile and Naza Group, the group added. (Source: The Edge Daily)

Parkson: Names Chang Chae Young as CEO of Indochina operations. Parkson Holdings Bhd's 67.96%-owned subsidiary Parkson Retail Asia Limited, which is listed on the Singapore Exchange, has appointed Chang Chae Young as the CEO for its newly formed Indochina Operations. Parkson said Chang has extensive experience in brand management and retail operations, having worked in South Korea, New York, Hong Kong and China for over 20 years. Following his appointment, Parkson said Loh Chai Hoon, who is currently CEO of Vietnam, Cambodia and Myanmar operations, will be redesignated as CEO of Vietnam Operations. (Source: The Edge Daily)

PNB: Wahid says time to take a break, congratulates Dr Zeti as PNB's new chairman. Tan Sri Abdul Wahid Omar says he plans to take a break following his retirement as Permodalan Nasional Bhd (PNB) group chairman. He also congratulated Tan Sri Dr Zeti Akhtar Aziz on her appointment as the new PNB group chairman. The former Bank Negara Malaysia governor's appointment takes effect from 1 Jul 18. (Source: The Star)

Sapura Energy: Unit inks PSC in Mexico. Sapura Energy's unit Sapura Exploration and Production (Sapura E&P) and its JV consortium partners, DEA Deutsche Erdoel Mexico and Premier Oil, have signed a production sharing contract (PSC) for Block 30 with Comision Nacional De Hidrocarburos of Mexico (CNH). Sapura Energy said the PSC was signed on 27 June. It described Block 30, within the Sureste Basin, as a proven and prolific hydrocarbon province in the Gulf of Mexico. (Source: The Edge Daily)

SECTOR

Construction: Sources say MRL would not have signed ECRL contract given a choice. Malaysia Rail Link Sdn Bhd (MRL) would not have signed the East Coast Rail Link (ECRL) project contract if given a choice in the first place, according to sources. A source says that MRL representatives revealed this to the Council of Eminent Persons (CEP), who noted that the contract was heavily skewed against Malaysia’s favour. “Among the reasons was the 15% upfront payment. The project which was mooted by the previous BN government would have to be carried out by the new government because commitments have already been put into place. A cancellation would entail higher additional costs of more than RM21b,” the source says. “So given this scenario, despite the new government having the right to cancel the ECRL project if it went against national interests, they have decided to proceed,” he adds. Among the proposed changes to the present ECRL project include to cut the total number of stations and to do away with the smaller ones. The effect of the cost cutting would now see both Phase 2 and 3 of the ECRL project being cancelled, the sources say. (Source: The Star)

ECONOMICS

Others: EPF members can contribute any amount to accounts from 1 July. The Employees Provident Fund (EPF) has scrapped the RM50 minimum ruling for members who voluntarily contribute to their accounts with effect from 1 Jul 18. While they can contribute any amount to the retirement savings fund, the accumulated maximum amount to be contributed into each account, however, remains capped at RM60,000 p.a.. The voluntarily contribution to the EPF accounts is either through the 1Malaysia Retirement Scheme (SP1M), self-contribution or the top-up savings contribution. In addition to the removal of the RM50 minimum contribution, the top-up savings contribution will now enable members to contribute any amount to Account 1 belonging to their sons or daughters who are also EPF members. Previously, the scheme only allowed EPF members to contribute to their parents’ or spouse’s Account 1. (Source: The Star)

Source: UOB Kay Hian Research - 2 Jul 2018