Kossan Rubber Industries Bhd, the country's fourth largest rubber glove maker, will prioritise upstream expansion into rubber plantations to manage the risk of fluctuating latex prices. Managing director Datuk Lim Kuang Sia said upstream expansion has been given a high priority within the group. It is looking for approximately 10,000ha of greenfield land to plant rubber, either in Indonesia or Myanmar. Lim said that having steadily expanded their capacity, they now need to look into risk management and raw material supply management. He added that diversifying upstream will give them a natural hedge against the volatility of rubber prices and ensure sufficient supply in the event of a shortage. This follows in the footsteps of the world's largest glovemaker, Top Glove Corp Bhd, which acquired 30,000ha of greenfield rubber plantation land in Indonesia last month.

' The Edge

AirAsia Group chief executive officer has rubbished comments that his move to Jakarta will lead to the eventual migration of its entire operations to Asean's most populous country. Tan Sri Tony Fernandes insisted that his move to Jakarta is just a way to focus his energy on growing AirAsia's presence in Asean. AirAsia's regional headquarters is currently manned by 20 people, 50% of whom are from its Malaysian office. Fernandes said that AirAsia Asean, which  was launched yesterday will help ensure that their voice, concerns and appeals are heard much more clearly in the corridors of power with Asean. On AirAsia's planned acquisition of Batavia Air, he said the airline will look at other options it is not able to proceed with the deal. However, he is confident that the deal will go through. ' Business Times

UMW Holdings Bhd, Malaysia's biggest carmaker and assembler by market value, expects full-year profit to increase as auto sales climb and its oil and gas business rebounds from two years of losses. Chief executive officer Datuk Syed Hisham Syed Wazir said the company's oil and gas business would be profitable this year as its drilling rigs and the trading of oilfield products and services contributed to revenue. He added that the scenario is very buoyant and opportunities are increasing. The profit gain may help extend its 42% rally this year, the second-biggest gain among South-East Asian automakers and assemblers and the most in the FTSE Bursa Malaysia KL Composite Index. The improving outlook also drew foreign investors, who held 24% of the company in the second quarter from 16% in the previous three months, according to data compiled by UMW. - StarBiz

Source: AmeSecurities