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PWORTH=TRIVE

KUALA LUMPUR (Sept 7): My E.G. Services Bhd (MyEG) shares rose as much as five sen or 3% to RM1.70 so far today, following news the government is studying the possibility of sales and services tax (SST) exemption for e-commerce and online businesses.
  
At 11:18pm, shares of electronic government services specialist MyEG pared gains at RM1.65, with some 21 million shares traded. CIMB Research wrote in a recent note that CIMB had increased its MyEG share target price to RM1.72, from RM1.47. 

Yesterday, theedgemarkets.com, quoting Finance Minister Lim Guan Eng, reported the government is studying the definition of e-commerce and online businesses to see if they qualify for exemption under the SST regime, for supporting the growth of the country's digital economy.

"We have to see the definition of online business. If you look at information technology (IT) services, for example — it should face a 6% service tax, but we decided to give a leeway.

"For instance, cloud service providers — under IT services — they will be charged 6%, but because it is a cloud service provider [and] rides on the server of telecommunication providers, we don't impose the tax at the business-to-business level to avoid multiple taxation," Lim said.

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Destini Bhd has bagged a US$5.2mil (RM21.17mil) contract from Posco Daewoo Corp (PDC) for the provision of tubular running services (TRS) in Myanmar.

South Korea’s PDC began its offshore gas field project in Myanmar in 2000 and started commercial production in 2013.

Destini has had a foothold in Myanmar since 2012. Its first job was to provide TRS services to Petronas Carigali Sdn Bhd (PCSB) and it has completed a number of offshore projects.

Currently, Destini is commissioning two other land and offshore exploration-related contracts with PCSB and its subsidiaries.

Destini president and group CEO Datuk Rozabil Abdul Rahman said the award of the contract reinforced Destini’s position as a global TRS provider, and it plans to consolidate its position in Myanmar by bidding for more projects in the country.

In the second quarter ended June 30, Destini recorded a net profit of RM5.6mil on a turnover of RM149.1mil, which is lower than the RM6.1mil net profit on a revenue of RM163mil registered in the corresponding period last year.

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Its president and group CEO Tan Sri Shahril Shamsuddin said: “Sapura Energy is in a strong growth phase today and we are determined to capitalise on the emerging opportunities. 

“The rights issue will enable us to strengthen our balance sheet and continue with our growth momentum which includes bidding for and executing higher value projects globally.” 

Shahril said the group was actively venturing into a larger addressable market in key regions including the Middle East, Africa, Latin America, Caspian and Mediterranean as well as South East Asia and Australia. 

To-date, the group has secured contract wins of RM4.5bil. The group’s order book has increased to RM16.7 bil with contract wins across Mexico, Brazil, India, Australia and Malaysia, since the start of the financial year.

Sapura Energy says proposed rights issue involves 9.99b new shares at 30 sen each

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Dr Mahathir met China’s president Xi Jinping, premier Li Keqiang and chairman of the Standing Committee of the National People’s Congress of China, Li Zhanshu yesterday (Aug 20).    

“We must find an exit from the projects at lowest cost possible. We will have to pay compensation. This is our own people’s stupidity; we can’t blame the Chinese for that,” said Dr Mahathir when asked about compensation for cancelling the projects.   

“This is stupidity of the negotiation before. There must be exit clauses in all agreements and the exit clauses must be fair for both parties.

“He (Datuk Sri Najib Razak) is the one…I never see a contract (like this before), that money (is) paid before the work (gets) done….What kind of stupidity of this, (you need) to pay on time, without any conditions that work must be done,” Dr Mahathir commented.  

The money that has been drawn down from the loans extended to the three projects, is not in proportion to the work in progress. “So, we need (to) find out why the money (was) paid and no work done. All negotiation will be done by our people,” Dr Mahathir said.

“We will recover the money from Najib,” he added, when asked how the government would pay back the sum that has been drawn down.

The three projects, namely ECRL, multi-product pipeline in Malacca and Trans-Sabah Gas pipeline which were undertaken by the Barisan-Nasional government, have been under scrutiny after Pakatan Harapan gained controlled of Putrajaya.

The new government has put a stop work notice to the three projects, after they had discovered that the project costs have bloated to unjustified levels. Such high cost of infrastructure projects would further strain the country’s fiscal position.

Dr Mahathir met China’s president Xi Jinping, premier Li Keqiang and chairman of the Standing Committee of the National People’s Congress of China, Li Zhanshu yesterday (Aug 20).    

“We must find an exit from the projects at lowest cost possible. We will have to pay compensation. This is our own people’s stupidity; we can’t blame the Chinese for that,” said Dr Mahathir when asked about compensation for cancelling the projects.   

“This is stupidity of the negotiation before. There must be exit clauses in all agreements and the exit clauses must be fair for both parties.

“He (Datuk Sri Najib Razak) is the one…I never see a contract (like this before), that money (is) paid before the work (gets) done….What kind of stupidity of this, (you need) to pay on time, without any conditions that work must be done,” Dr Mahathir commented.  

The money that has been drawn down from the loans extended to the three projects, is not in proportion to the work in progress. “So, we need (to) find out why the money (was) paid and no work done. All negotiation will be done by our people,” Dr Mahathir said.

“We will recover the money from Najib,” he added, when asked how the government would pay back the sum that has been drawn down.

The three projects, namely ECRL, multi-product pipeline in Malacca and Trans-Sabah Gas pipeline which were undertaken by the Barisan-Nasional government, have been under scrutiny after Pakatan Harapan gained controlled of Putrajaya.

The new government has put a stop work notice to the three projects, after they had discovered that the project costs have bloated to unjustified levels. Such high cost of infrastructure projects would further strain the country’s fiscal position.

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