Economics

Malaysia: PPI down in September after seven straight months of growth

Malaysia’s producer price index (PPI), which measures price changes of goods at the producer level, fell year-on-year by 2.1% in September after seven consecutive months of growth, according to the Department of Statistics Malaysia (DOSM). Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said the biggest percentage decrease was recorded by the mining sector, which posted a double-digit drop of 16.1% (August: -8.3%). “The indices went down by 18.6% for the extraction of crude petroleum and 7.9% for the extraction of natural gas. “At the same time, the manufacturing sector contracted by 1.5% (August: up 1.0%), attributed to the index of manufacture of coke and refined petroleum products (-18.7%),” he said. (Bernama)

China: Central bank has new policy tool to manage liquidity

China’s central bank is expanding its monetary policy toolkit to get a better handle on liquidity in the financial system as it seeks to add more levers for fine-tuning the economy. The People’s Bank of China (PBOC) will conduct so-called outright reverse repurchase agreements with primary dealers monthly for a timeframe of no more than a year, according to a statement on Monday. The move is aimed at maintaining a reasonable level of liquidity in the banking system and enriching its toolkit for monetary policy, the PBOC said. A repo is a form of short-term borrowing used in money markets, which involves the purchase of a security with an agreement to sell it back at a specific date. Here, the securities will include sovereign bonds, local government notes and corporate debt, the PBOC said. (Bloomberg)

Malaysia: GDS partners global suppliers to bring in RM1bn investment

Leading developer and operator of high-performance data centres GDS International exchanged Memoranda of Understanding (MOUs) with global suppliers in a series of partnerships that will bring an estimated RM1bn investments for integrated factories and service centres. A joint statement between the Malaysian Investment Development Authority (MIDA) and GDS on Sunday, a key player in Malaysia’s data centre industry, said these partnerships are estimated to create up to 5,000 jobs and contribute more than RM5bn annually to the economy, and forge stronger connections in Malaysia’s data centre supply chain. (Bernama)

Malaysia: Export prices slip 0.6% to 149.3 points in September 2024

Malaysia’s export prices in September 2024 slipped by 0.6% to 149.3 points, from 150.3 points in August, while import prices fell 1.9% to 129.5 points, said the Statistics Department of Malaysia (DOSM) on Monday. The department said in a statement that Malaysia’s terms of trade grew 1.3% month-on-month to 117.5 points in September, while on an annual basis, Malaysia’s terms of trade climbed 6.1%, from 110.7 points in September the previous year. Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said the export unit value index edged down by 0.6% in September 2024 against August 2024, driven by declines in the indices of mineral fuels (4. 0%), manufactured goods (1. 4%), and chemicals (0.8%). (Bernama)

Companies

Meta Bright: Secure RM43.9m banking facilities from Hong Leong Bank

Meta Bright Group Bhd’s subsidiaries Expogaya Sdn Bhd (EXPO) and Jesselton Concrete Sdn Bhd (Jesselton Concrete) have secured banking facilities totalling RM43.9m from Hong Leong Bank Bhd (HLB) to boost the company’s concrete business segment growth. In a filing with Bursa Malaysia, Meta Bright said this would further cement its position in the concrete sector as the largest ready-mix supplier in Sabah, allowing it to support the state’s rapidly expanding infrastructure needs effectively. “This added financial support enables us to meet the escalating demand for concrete in Sabah, fuelled by large-scale infrastructure projects outlined in Budget 2025. (Bernama)

KLCCP Stapled: Appoints Salem Kailany as CEO

KLCCP Stapled Group has appointed Datuk Mohd Salem Kailany as the chief executive officer of KLCC Property Holdings Bhd and KLCC REIT Management Sdn Bhd, effective from Nov 1, succeeding Datuk Md Shah Mahmood. Salem, 55, a seasoned professional in the property development and real estate sector, will be stepping into the role to oversee KLCC REIT’s operational and strategic direction. He had served as the president and CEO of UDA Holdings Bhd in 2019, and held roles such as the CEO at PNB Development Sdn Bhd, and senior vice-president at Sime Darby Property Bhd. (The Edge)

Mah Sing: Bridge Data Centres to expand data centre project in Southville City, Selangor

Mah Sing Group Bhd has signed a second partnership with Bridge Data Centres Malaysia Sdn Bhd, a company wholly-owned by Bain Capital, to expand a joint-venture (JV) data centre project named Mah Sing DC Hub@Southville City at the Southville City township in Bangi, Selangor. A press statement on Monday said the latest partnership will see the two parties developing additional plots of land adjacent to the initial one. The plots span 35.68 acres (14.44 hectares) and are poised to offer 200MW of power capacity. (The Edge)

Pintaras Jaya: Buys 33 acres of agricultural land in Kapar for RM22.9m

Construction firm Pintaras Jaya Bhd is acquiring 11 pieces of freehold land in Kapar for RM22.9m cash. The property, which is an oil palm plantation, is currently categorised as agricultural land but is zoned for residential development, Pintaras said. The acquisition represents an opportunity “to diversify substantially into property development in the future”, the group said. It is buying the lands from Tiong Lee Co, whose shareholders are Ng Wee Chit, Ng Kheng Lau and Ng Koon Keng, its filing showed. The company will pay for the acquisition using internal funds, it said. As at end-June, Pintaras had cash and bank balances of RM12.9m. Borrowings totalled RM15.7m. (The Edge)

Barakah Offshore: Sell KL101 Barge for US$9.7m

Barakah Offshore Petroleum Bhd has proposed the disposal of the Kota Laksamana 101 Barge (KL101 Barge) to PT Wintermar Rajawali Asia for US$9.7m (RM41.8m) in cash. In a filing with Bursa Malaysia, Barakah said its indirect wholly-owned subsidiary, Kota Laksamana 101 Ltd entered into a conditional memorandum of agreement with PT Wintermar Rajawali Asia for the proposed disposal of KL 101 Barge. “The proposed disposal presents an opportunity for Barakah Group to dispose of a non-revenue/profit generating asset. Despite the final disposal consideration of US$9.7m is lower than the minimum disposal consideration approved by Barakah’s shareholders at the EGM held on March 25, 2024, the final disposal consideration represents the only offer received by Barakah Group after conducting an auction and a private tender,” it said. (The Star)

Source: Mercury Securities Research - 29 Oct 2024