Posted by CartoonInvesting > 2020-01-15 22:29 | Report Abuse

12¢, 15¢,17¢,20¢¿¿¿¿®©

Posted by MohdZaha > 2020-01-16 08:48 | Report Abuse

Sleeping giant will awake & rebound .... no more worried of placement

Posted by MohdZaha > 2020-01-16 08:50 | Report Abuse

Investing in Financially Distressed and Bankrupt Securities: Issuer Responses to Financial Distress

There are three principal alternatives for an issuer of debt securities that encounters financial distress:
continue to pay principal and interest when due,
offer to exchange new securities for securities currently outstanding, or
default and file for bankruptcy.
A potential investor in distressed securities must consider each of these three possible scenarios before committing capital.

Financially troubled companies can try to survive outside bankruptcy by resorting to
cost cutting,
asset sales, or
an infusion of outside capital.
Such efforts can be successful, depending on the precise cause of the debtor's woes. Short-term palliatives, however, can contribute to the erosion of long-term business value.

Efforts to conserve cash by cutting back inventory, stretching out accounts payable, or reducing salaries, for example, can get a business through a short-term crisis, but in the long run some of these measures may hurt relationships with customers, suppliers, and employees and result in a diminution of business value.

A second option for a company is to make an exchange offer to replace outstanding debt and, where relevant, preferred stock with new securities. The possibility of an exchange offer adds a strategic dimension to investing in financially distressed securities absent from most passive investments. An exchange offer is an attempt by a financially distressed issuer to stave off bankruptcy by offering new, less-onerous securities in exchange for some or all of those outstanding.

An exchange offer can serve as an out-of-court plan of reorganization. Sometimes an offer is made to exchange for only one security; perhaps the issuer needs only to extend an upcoming maturity. Other times most or all outstanding debt securities and, where relevant, preferred stock are offered the opportunity to exchange.

Exchange offers are difficult to complete. Typically they involve persuading debt holders (and preferred stockholders, if any) to accept less than one dollar's worth of new securities for each current dollar of claim against the debtor. The greatest difficulty in consummating an exchange offer is that, unlike stockholders, bondholders cannot be compelled to do anything. Depending on state law, a vote of 50 percent or 67 percent of the stockholders of a company is sufficient to approve a merger; the minority is compelled to go along. However, the majority of a class of bondholders cannot force the minority to accept an exchange offer. This results in a free-rider problem since the value of "holding out" is typically greater than the value of going along with a restructuring.

Suppose Company X needs to cut its debt from $100 million to $75 million and offers bondholders an opportunity to exchange their bonds, currently trading at fifty cents on the dollar, for new bonds of equal seniority valued at seventy-five. This offer may be acceptable to each holder; individually they would be willing to forego the full value of their claims in order to avoid the uncertainty and the delay of bankruptcy proceedings as well as the loss of the time-value of their money. They may be concerned, however, that if they agree to exchange while others do not, they will have sacrificed 25 percent of the value owed them when others have held out for full value. Moreover, if they make the sacrifice and others do not, the debtor may not be sufficiently benefitted and could fail anyway. In that event those who exchanged would be rendered worse off than those who did not because, by holding a lower face amount of securities, they would have a smaller claim in bankruptcy.

An exchange offer is somewhat like the Prisoner's Dilemma. In this paradigm two prisoners, held incommunicado, are asked to confess to a crime. If neither confesses, they both go free. If both confess, they incur a severe punishment but not a lethal one. If one confesses and the other holds out, however, the holdout will be executed. If they could collude, both prisoners would hold out and go free; held in isolation, each fears that the other might confess.

The Prisoner's Dilemma is directly applicable to the bondholders in an exchange offer. Each might be willing to go along if he or she could be certain that other holders would also, but since no bondholder could be certain of others' cooperation, each has a financial incentive to hold out. Exchange offers often require a very high acceptance rate in order to mitigate this problem. If all bondholders could be brought together, there might be a chance to achieve voluntary cooperation. Historically, however, bondholders have been a disparate group, not always even identifiable by the debtor and hard to bring together for negotiations.

Posted by MohdZaha > 2020-01-16 08:50 | Report Abuse

One way to overcome the free-rider problem is a technique known as a prepackaged bankruptcy, in which creditors agree to a plan of reorganization prior to the bankruptcy filing. Because negotiations have already been completed, a prepackaged bankruptcy is reasonably expected to be dispatched in months rather than years; the duration is not much greater than the time involved in completing an exchange offer. The advantage of a prepackaged bankruptcy over an exchange offer is that since a majority in number and two-thirds of the dollar amount of each creditor class must approve a bankruptcy plan, up to one-third of the dollar amount of a class can be compelled to go along with the other creditors, effectively eliminating the freerider problem. It seems likely that there will be increased use of the prepackaged bankruptcy in future efforts to restructure overleveraged companies in order to expedite the reorganization process, avoid the high administrative costs of a traditional Chapter 11 filing, and circumvent the free-rider problem.


If measures to keep the patient alive prove unsuccessful, the third option is to file for court protection under Chapter 11 of the federal bankruptcy code and attempt to reorganize the debtor with a more viable capital structure. This is typically a last resort, however, for there is still considerable stigma attached to bankruptcy.

Posted by ariehazimi > 2020-01-16 08:56 | Report Abuse

Lead Story: Construction space is overcrowded

THE rally in construction stocks this year has been fuelled by the resumption of mega infrastructure projects, including the RM44 billion East Coast Rail Link (ECRL) and RM16.6 billion Light Rail Transit Line 3 (LRT3). The news of the ECRL’s revival cheered the market, but is the pie big enough for all?

Construction Industry Development Board data show that up to June, only RM40 billion worth of construction jobs had been dished out. Annualised, this would translate into a contract value of RM80 billion this year, about 40% lower than the RM134 billion achieved last year.

With the construction order book at an all-time high and positive news flow on mega projects seemingly reaching its peak, are the valuations for the sector justified? Will a strong order book replenishment continue for most construction companies?

While analysts generally agree that the sector’s valuations are lofty, they have mixed views on whether the outlook for the sector has turned negative. However, most agree that there are few short-term catalysts to justify the current valuations.

“Most of the construction jobs for the revived mega infrastructure projects were awarded in the first half of the year, so there is not much to look out for in the second half. Therefore, valuations are deemed quite expensive,” says an analyst, who has a “neutral” outlook on the sector.

“At the same time, some of these stocks are being supported by expectations of more mega projects to be revived by the government. And in the case of Gamuda Bhd, shareholders are holding on to the prospect of special dividends,” says the analyst.

For example, Gadang Holdings Bhd reported a net loss of RM3.4 million for the fourth quarter ended May 31, 2019 (4QFY2019), compared to a net profit of RM23.3 million in the corresponding quarter last year due to a lower margin from the construction segment and higher finance costs. Although the counter took a beating after the results announcement on July 24, some analysts see market support for the stock as it is expected to be among the contract winners for the local portion of the ECRL.

However, while the government has agreed to go ahead with the ECRL, tender pre-qualification has just been concluded and the local portion of the civil works, amounting to RM17.6 billion, is being sought by 331 subcontractors.

Stiff competition among local players for ECRL contracts would make them less attractive to the big players, says Adrian Ng, an analyst with Kenanga Research who covers the construction sector.

In a July 5 report he says, “We believe this particular space to be overcrowded and competitive as there are 859 Grade 7 classified contractors participating in the pre-qualification exercise — all competing for the 40% civil works portion of the ECRL, possibly valued at about RM18 billion or less.

“Assuming 10% of the Grade 7 contractors are successful in clinching an award from the ECRL, it would translate into an average contract size of RM225 million for each player,” Ng says. He is calling a “sell on strength” for construction stocks.

The revival of the ECRL may be good news for the construction sector, but the fact that many firms are chasing RM18 billion worth of contracts does not really make the project a big catalyst.

“It is like having a cake but the icing may not be as enticing as it was made out to be,” an analyst says succinctly.

At the current level, the Bursa Malaysia Construction Index (KLCON) is trading at 22.68 times trailing 12-month (T12M) earnings, which is almost the same level as in 2017, when the then Barisan Nasional government was ramping up infrastructure projects. The index’s 10-year average T12M price-earnings ratio is 18.1 times.

The high valuation may be the reason why many construction counters have started to fall recently, despite the anticipation of ECRL contracts. KLCON has dropped 6.6% since July 3, reflecting the share price movement of construction companies.

“The dynamic has changed. In 2017, when many contracts were being awarded, construction firms were building up their order books, hence, the valuations were justified. Now, it is already hard to maintain the replenishment rate, let alone grow it,” says the analyst.

Since reaching its year-to-date high of RM4.04 per share on July 2, Gamuda’s share price has lost 8.4% to close last Thursday at RM3.70. IJM Corp Bhd fell 9.96% from its YTD high of RM2.51 on July 2 to last Thursday’s close of RM2.26. This is because the counters have priced in most of the potential upside of securing ECRL contracts.

Apart from IJM and Gadang, investors expect construction outfit Gabungan AQRS Bhd to secure an ECRL contract. AQRS has seen the worst battering among construction counters in recent weeks. Its share price has dropped more than 20% since reaching its YTD high of RM1.54 on July 24 to last Thursday’s closing price of RM1.22.

Posted by ariehazimi > 2020-01-16 08:56 | Report Abuse

“For the rally to sustain, construction companies must secure more big contracts and, in this economic climate, only the government can award big contracts. All eyes are on the HSR (high-speed rail) and MRT3 now, whether or not the government will revive these projects,” says another analyst.

On June 28, MyHSR Corp Sdn Bhd announced that it had appointed Minconsult Sdn Bhd and Ernst & Young as the technical advisory consultant and commercial advisory consultant respectively for the Kuala Lumpur–Singapore HSR project.

The advisers’ roles are to study the technical and commercial aspects of the HSR and recommend to the government ways to reduce its scope and budget. It will then have to make a decision on whether or not to continue with the project.

The Malaysian government has secured a delay in the commencement of the HSR development with the Singapore government until May 31 next year. The project costs RM110 billion, which is prohibitive for the Malaysian government.

Meanwhile, there have been suggestions for the MRT3 to be made fully elevated, which would halve the development costs. It was slated to be fully underground and the original cost to develop the line was pegged at RM45 billion to RM50 billion.

“Even if the projects were given the green light by the government, at best the contracts will only be awarded in the second half of next year. For the short term, there are hardly any big contracts on the horizon,” an analyst tells The Edge.

As it is, domestic contracts awarded fell 7% year on year in the first half of this year to RM8.1 billion, according to HLIB Research analyst Yip Kah Ming. About 30% of the domestic contracts awarded in the first half were infrastructure jobs, compared with 58% in the corresponding period last year.

“The decline in contract values and lower proportion of infrastructure works were mainly due to holding back or downsizing of infrastructure projects post-GE14,” he says in a July 3 sectoral outlook report.

Meanwhile, the sector is also grappling with implementation issues, which cause construction jobs to slow down, and an increase in liquefied and ascertained damages (LAD) on delays. For example, some analysts believe some of the novated LRT3 contracts have yet to start.

After the government resumed the LRT3 project at a much reduced price tag, its turnkey contractor MRCB-George Kent Sdn Bhd will have to relook its funding and costs, before the novated contracts can be restarted.

On Aug 13, George Kent (M) Bhd told Bursa Malaysia that it had served Malaysian Resources Corp Bhd with a notice of arbitration with regards to the difference of interpretation of certain provisions within their joint-venture agreement, particularly the financing requirement.

“With the turnkey contractor having disputes on the financing requirements, it is hard for the subcontractors to restart the novated contracts. This has caused some of the subcontractors to toy with the idea of exiting their contracts altogether,” says an analyst who declined to be named.

With the private market still not picking up due to an overhang in the property development sector, and the public market being sluggish with fewer infrastructure jobs and slower implementation, where else should construction companies look for jobs?

Posted by andychin888 > 2020-01-16 08:59 | Report Abuse

Wow, US-China signing first deal to end the trade war !
As at 12.20a.m, DJI traded at=> 29,075.98 (+136.31)(+0.47%) !

Like that today definitely many shares will spike up their prices!
Huat ah! Heng ah ! Ong ah !

Posted by andychin888 > 2020-01-16 09:03 | Report Abuse

Mega project boost for budget

PETALING JAYA: Several mega-infrastructure projects are expected to kick off following the Budget 2020 announcement, with one of them having its development agreement signed just hours before the tabling of the budget on Friday.

Sources said the government would announce the commencement of the tunnel project in Penang and the revived Bandar Malaysia project, as well as new highway projects to be constructed in Selangor.

It is learnt that on Friday morning, ahead of the budget announcement, the development agreement for the long-delayed controversial tunnel project in Penang will finally be inked between the Penang state government and the main contractor, Consortium Zenith Construction Sdn Bhd.

The RM6.34bil development is expected to commence immediately after the signing of the agreement, which is for the first phase also known as Package 2 of the project. The first phase of the project is the 5.7-km Ayer Itam-Lebuhraya Tun Dr Lim Chong Eu bypass, which has a construction period of 36 months.

The state government-owned project, which has come under heavy criticism over its cost and delays in completing the RM305mil feasibility study, will consist of three toll-free roads and a tolled tunnel. Another mega-project expected to be announced by Finance Minister Lim Guan Eng for the year ahead is the commencement of the revived RM140bil Bandar Malaysia project.

The signing ceremony for this project, sources said, would take place within a week from the budget announcement, with the government expected to reveal further details on the project.

In April this year, the government had announced the revival of the Bandar Malaysia project, which spans 196ha at the site of the former airport in Sungai Besi.

The project, first announced by former Prime Minister Datuk Seri Najib Razak back in 2011, was owned by the controversial 1Malaysia Development Bhd (1MDB) investment fund at the time.

The integrated property development was also supposed to be a terminal for the KL- Singapore high-speed rail – yet another mega-project scrapped by the Pakatan Harapan government when they came into power last year.

In December 2015, the Finance Ministry entered into an agreement to sell a 60% stake in Bandar Malaysia for RM7.4bil to a 60:40 consortium comprising Iskandar Waterfront Holdings Bhd and China Railway Engineering Corp Sdn Bhd. The companies were to be the project’s master developer.

In May 2017, however, the government surprised the market by calling off the deal, citing the failure of the purchasing parties to fulfil payment obligations

Two years later, the revived project will now include 10,000 affordable housing units, a people’s park, bumiputra participation throughout the project and the priority for the use of local content and materials.

Meanwhile, on the expected new highways to be announced in Selangor, a source said one of the highways is expected to stretch across Petaling Jaya.

Previously, plans for the Kinrara-Damansara Expressway (Kidex) had been announced, but it was met with objection from residents living near the planned highway, and subsequently cancelled.

Later, it was speculated that the Petaling Jaya Dispersal Link (PJD Link) highway project would replace the cancelled Kidex project.

Another ongoing development that is likely to see new work packages awarded in the year ahead is the toll-free Central Spine Road (CSR) project.

The 350-km project, estimated to cost RM350mil, links Kuala Krai in Kelantan to Simpang Pelangai in Pahang.

Sources expect the government, during the upcoming budget announcement, to announce the progress of the project as well as the upcoming packages.

Early last month, the Works Ministry stated that the government would prioritise packages three, four and five of the project, which run from Gua Musang in Kelantan to Kuala Lipis in Pahang; Kuala Lipis to Raub in Pahang; and from Raub to Bentong, Pahang, respectively, due to reasons including traffic congestion as well as high incidents of accidents in parts of these routes.

Package five, which is ongoing, commenced under the 10th Malaysia Plan with an approved cost of RM631.98mil and is set to be completed next year.

In August this year, it was reported that the Pahang state would be receiving about RM800mil in allocations for package six of the CSR project, involving the stretch from Bentong town to Simpang Pelangai.

Apart from the infrastructure projects, the government is also expected to announce details on the implementation of the impending digital tax that is expected to be implemented on Jan 1,2020.

During the tabling of Budget 2019, Lim announced that a 6% digital tax would be imposed on foreign service providers, namely, streaming services Netflix and Spotify, and digital game distributor Steam.

The move is meant to create an equal playing field between local and foreign digital service providers.

Posted by nurfarhan > 2020-01-16 09:18 | Report Abuse

happy day, waiting price to surge up. for those who have not buy yet, just clean all up.

Posted by nurfarhan > 2020-01-16 09:21 | Report Abuse

We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.because what Price you pay is what Value you get!

Posted by mming05 > 2020-01-16 10:24 | Report Abuse

Insider news : ECRL (mentakab to Maran) will drop in to Ages new subsidiari, it a joint venture company.

Posted by SolidGold > 2020-01-16 11:17 | Report Abuse

Wha??

Posted by magic01 > 2020-01-16 11:42 | Report Abuse

Buy xdl better

Posted by magic01 > 2020-01-16 11:42 | Report Abuse

Stay tuned 5156 good news

Posted by Youghin > 2020-01-16 13:09 | Report Abuse

5156 is? waiting for a $ break

Posted by ahfad > 2020-01-16 15:30 | Report Abuse

Boat in

Posted by CartoonInvesting > 2020-01-16 19:24 | Report Abuse

All abroad...sapu sapu

Posted by Elaine Tan > 2020-01-17 09:13 | Report Abuse

Insider news :YES CONFIRM- ECRL (mentakab to Maran) will drop in to Ageson7145 new subsidiari, it a joint venture company. clean all the shares now before its too late guys! cheers

Posted by ghazkas064 > 2020-01-17 09:24 | Report Abuse

Why is the stock in selling trend this morning?

Posted by MohdZaha > 2020-01-17 09:29 | Report Abuse

Pahang state govt starts acquiring land for ECRL project

KUANTAN (Nov 19): The state government has started the process of acquiring land for the East Coast Rail Link (ECRL) project in the state on Oct 30, after it was postponed on July 3, the Pahang state legislative assembly was told today.

Menteri Besar Datuk Seri Wan Rosdy Wan Ismail said, in total, the ECRL project in Pahang which will pass through Kuantan, Maran, Bera and Temerloh will involve 978.767 hectares of land from various land status.

“This will include 379,184 hectares of state government land, private land (542.58 hectares), forest reserves (44.074 hectares) and Federal land (12.929 hectares),” he told the assembly in Wisma Sri Pahang here.

Wan Rosdy said this in reply to a question from Mohd Sofian Abd Jalil (PAS-Luit) who wanted to know about the status of the land in Pahang involved in the ECRL project.

Meanwhile, state Human Resources, Youth, Sports and Non-governmental Organisations Committee chairman, Datuk Seri Mohd Johari Hussain, said Pahang athletes who will take part in the Malaysian Games (SUKMA) 2020 will have to undergo a compulsory pre-games doping test six months before the start of the games.

In reply to a question from Datuk Mustapa Long (BN-Padang Tengku), he said the decision was made by the Pahang Sports Council (PSC) to prevent the occurrence of athletes’ involvement in illicit substances.

“This test involves sports that have a high risk of substance abuse especially in the athletes’ food supplements and the test will be fully managed by the Malaysian Anti-Doping Agency (ADAMAS).

He said stern action will also be taken towards athletes who were involved with doping issues such as allowances suspension for both athletes and their coaches so that they will work as a team to avoid the problem.

“The PSC will obtain the full report of athletes with doping issues from the related association and ADAMAS, and based on the report, an internal trial will be held involving the athletes, coaches and associations,” he said.

Posted by ariehazimi > 2020-01-17 09:30 | Report Abuse

i see something big is brewing in this company! whoever sell, sell all to me!

Posted by ariehazimi > 2020-01-17 09:39 | Report Abuse

DONT WAIT AND BUY, BUY NOW AND WAIT!

Many people are afraid to lose money. They want to sleep soundly every night.

So am I. I am just as fearful as everyone else losing money. Therefore, let me recommend you

"PRESENTING AGESON (7145) THE GOOD STOCK FOR INVESTORS"

Why is AGESON (7145) GOOD?

These are my Reasons:

1) AGESON HAS LOW DEBT

Current Liabilities/Non-Current Liabilities

If a company has no borrowings or low borrowings can they go bankrupt if you don't owe money to bank, friends or financial institution?

No one or Company can be low in debt, SO AGESON IS A STOCK ON WHICH YOU CAN BUY AND SLEEP SOUNDLY.

2) Financial Year: 30-Jun-2020

YOY +1801.57%


3)AGESON IS ON THE RIGHT TRACK ECRL PROJECT (mentakab to Maran)

Insider news :YES CONFIRM- ECRL (mentakab to Maran) will drop in to Ageson7145 new subsidiari, it a joint venture company.


GO AHEAD SAPU SAPU AND SAPU TODAY

To me, I’m all in ready for the spike!

PRICE SURE GOING TO RISES VERY VERY HIGH, TIME IS MONEY AND TIME DOES NOT WAIT FOR NO ONE! GO FOR AGESON7145, STRIVE FOR SUCCESS!

Posted by CartoonInvesting > 2020-01-17 09:42 | Report Abuse

Ayo yo, sapu sapu seller by millions.

Posted by Teh1986 > 2020-01-17 09:46 | Report Abuse

All penipu here... Hari hari good news will fly... Talk rubbish

Posted by Teh1986 > 2020-01-17 09:54 | Report Abuse

0.115 pun tak ada org beli... How to fly

Posted by CartoonInvesting > 2020-01-17 10:13 | Report Abuse

Sapu sapu penipu. How do you know? Sapu sapu sapu.

Posted by huski66 > 2020-01-17 10:22 |

Post removed.Why?

Posted by CartoonInvesting > 2020-01-17 10:29 | Report Abuse

Sapu sapu sapu sapu

Posted by Teh1986 > 2020-01-17 10:38 | Report Abuse

Happy died CNY to u

Posted by CartoonInvesting > 2020-01-17 10:46 |

Post removed.Why?

Posted by CartoonInvesting > 2020-01-17 10:46 | Report Abuse

Sapu sapu sapu

Posted by huski66 > 2020-01-17 11:02 |

Post removed.Why?

Posted by huski66 > 2020-01-17 11:03 |

Post removed.Why?

Posted by huski66 > 2020-01-17 12:31 |

Post removed.Why?

Posted by andychin888 > 2020-01-17 12:37 | Report Abuse

Budget 2020: Construction industry happy, expects growth

PETALING JAYA: The construction industry is expected to grow with the announcement of a number of infrastructure projects under Budget 2020, says the Master Builders Association Malaysia.

Its president Foo Chek Lee said the industry was “delighted” with the mega-infrastructure projects in the country, such as the Pan-Borneo Highway, Bandar Malaysia, and the Rapid Transit System from Johor Baru to Singapore.

“This is great support for the sustainability of the construction economy as the growth is expected to be at 3.7% in 2020.

“The industry is definitely looking forward to all the projects to kick off soon as the industry is hungry for projects, ” he said.


Infrastructure projects such as the new cable car system in Penang Hill and housing for the new generation of Felda settlers would also give a boost to the industry.

“There is also the maintenance and upgrading of schools, new hospitals, upgrades to the Ipoh airport, development works in rural areas and new villages.

“We hope all these projects will benefit local contractors.

"This will give a boost of confidence to the Malaysian construction industry as it will provide more job opportunities to the rakyat, ” he said.

Foo, however, said this growth must come with measures to address the lack of workers in the construction industry.

“While we support the improvement of technical and vocational education and training (TVET) and Industrial Revolution 4.0, the government needs to solve the current shortage of workers whilst waiting for more TVET-trained skilled workers to enter the workforce, ” he said.

Posted by andychin888 > 2020-01-17 12:40 | Report Abuse

9,429 construction site notices issued

KUCHING: The development of the construction industry has raised occupational safety and health issues while creating many jobs.

Occupational safety and health advocate Tan Sri Lee Lam Thye said based on the number of fatalities and injuries arising from construction accidents in the country, these issues could no longer be ignored.

He said the Department of Occupational Safety and Health issued 9,429 notices last year from 10,917 construction sites inspected.

The notices included 740 compounds and 113 cases filed for safety and health offences.

Lee urged the department to intensify preventive enforcement activities in the high-risk sector by applying latest enforcement measures and updated risk-control technology.

“The statistics showed that there were 169 deaths and 3,911 accidents in the construction sector in 2018, with the rate of fatality per 100,000 workers in the construction industry at 13.44 in 2018, compared with 14.57 in 2017.

“The construction industry recorded the highest number of fatalities in 2018, compared with other sectors.” he said during the Third Safety and Quality Forum, themed ‘Safety and Quality towards Project Delivery Excellence’, organised by the Sarawak Public Works Department here on Tuesday.

“This should serve as a reminder to us that we should never be complacent when it comes to occupational safety and health.”

He said safety and health budgets should be included as criteria for hiring contractors to promote health and safety aspects in the industry.

Lee said the Occupational Safety and Health Act 1994 needed to be amended and must include an increase in the penalty for non-compliance, so that workers are safer at construction sites.

Posted by andychin888 > 2020-01-17 12:42 | Report Abuse

Local construction sector to be rejuvenated

KUALA LUMPUR: The local construction contracts and job flows are expected to gradually pick up this year with the East Coast Rail Link (ECRL) subcontracting packages being the focus, analysts said.

Maybank Investment Bank Bhd analyst Adrian Wong said the proposed realignment of the Kota Bharu-Dungun stretch (Package A; 210.4km) of the ECRL was undergoing a three-month public inspection process till February 24 this year.

“We believe tenders for the subcontracting civil work packages could start by the second-quarter (Q2) of 2020 with awards in the second-half of 2020.

“We also expect awards of the remaining packages from the on-going projects in East Malaysia such as the Pan Borneo Sabah Highway, Sarawak Coastal and Second Link Road,” he said in a report today.

Although the Kuala Lumpur-Singapore High Speed Rail (HSR) and Klang Valley Mass Rapid Transit 3 (KVMRT 3) remain wildcards at this juncture, he said announcement of the projects’ revival this year would excite the market.

“We are upbeat on the construction sector’s outlook in 2020 with a ‘positive’ stance on Gamuda Bhd with our preferred ‘buy’ pick.”

Wong estimated local contractors to secure up to RM10 billion of jobs from the ECRL based on the rule of thumb that 40 per cent of total civil works would be awarded to local contractors.

He said the Penang State Government had, in October last year, received a Federal Government Guarantee to raise bonds to fund the Bayan Lepas Light Rail Transit for RM8 billion.

“This will expedite the start of the Penang Transport Master Plan (PTMP) project. Assuming the project delivery partner (PDP) agreement is finalised within first-quarter of 2020, we could see the first awards by end 2020.”

He said higher gross development expenditure allocation of RM56 billion for 2020, announced in 2020 Budget also signalled the government’s commitment to develop public infrastructure and rural development especially in the deeper parts of Sabah and Sarawak.

“Spending on public infrastructure and amenities will continue to be in focus as the government continues to reduce the development gap between the urban and rural areas.

“Allocation for the construction and upgrading of hospitals, schools and affordable housing units with an estimated spend of at least RM10.2 billion has been set aside under 2020 Budget.”

Meanwhile, Hong Leong Investment Bank (HLIB) expects contract awards and news flow to accelerate going forward due to recovery in development expenditure as the government rolls out major infrastructure projects.

“Stronger job flows from Sarawak are anticipated with a record high allocation of about RM10 billion for development expenditure,” HLIB said.

The firm maintained a “neutral” call on the construction sector, adding that mega projects news flow and healthy orderbook levels should protect on the downside.

“The first-half of 2020 should be dominated by tender news flow regarding ECRL and Pan Borneo Sabah, which will see packages 28, 29 & 30 (RM980 million) will be tendered out in March 2020 with remaining 20 packages falling under the 12th Malaysia Plan (2021-2025).”

Based on reports, the government is expected to come to a decision on HSR and MRT3 by mid-2020.

HLIB said PTMP (RM24 billion) may feature in the secnd half of the year starting with Bayan Lepas LRT to be rolled out if the bond funding was firmly in place.

Smaller projects including Rapid Transit System (RM3.2 billion) and Iskandar Bus Rapid Transit (RM2 billion) may also come into the foray in the second half of this year.

Posted by CartoonInvesting > 2020-01-17 13:08 | Report Abuse

We shal sew who go hollang. Happy Holland CNY.

Posted by CartoonInvesting > 2020-01-17 14:03 | Report Abuse

Sapu sapu sapu

Posted by stncws > 2020-01-17 15:12 | Report Abuse

11.5

Posted by zhm540 > 2020-01-17 15:19 | Report Abuse

very slow moving!

Posted by Teh1986 > 2020-01-17 15:30 | Report Abuse

1more years also this price lah

Posted by CartoonInvesting > 2020-01-17 16:01 | Report Abuse

Sapu kau kau

Posted by Youghin > 2020-01-17 16:13 | Report Abuse

Broke 0.12

Posted by ariehazimi > 2020-01-17 16:23 | Report Abuse

sudah pecah 0.12, apa kata kamu? tak yah tunggu setahun lagi bai bodoh? this cny kau boleh pi neraka dah teh1986 dan cartoon kimak investing!

Posted by Teh1986 > 2020-01-17 16:47 | Report Abuse

Ada 0.12 kah... I think u buta sebab tak makan babi lah bodoh

Posted by Teh1986 > 2020-01-17 16:50 | Report Abuse

0.12 lalu saja bodoh... Otak babi

Posted by CartoonInvesting > 2020-01-17 16:57 | Report Abuse

Sapu sapu sapu otak babi tak sapu tikus cartoon mickey sapu kaya kaya kau kau

Posted by Teh1986 > 2020-01-17 17:02 | Report Abuse

Wah close 1.15

Posted by MohdZaha > 2020-01-17 17:10 | Report Abuse

East Coast Rail Link (ECRL) Project, Malaysia

PROJECT TYPE
New railway line
LOCATION
Malaysia
CONSTRUCTION STARTED
August 2017
EXPECTED COMPLETION
2026Expand
East Coast Rail Link (ECRL) project is a 640km railway link connecting different parts of the east coast region with the west coast region in Malaysia.

Malaysia Rail Link (MRLSB) is developing the project and will operate it in a 50:50 joint venture with China Communications Construction Company (CCCC). The Ministry of Transport, through Agensi Pengangkutan Awam Darat (APAD), will supervise and regulate the project.

Construction on the ECRL project began with the groundbreaking held in Kuantan, Malaysia, in August 2017, but the work was suspended in 2018 due to financial reasons. Construction resumed in July 2019, with the completion scheduled for December 2026.

ECRL is the biggest economic and trade project between China and Malaysia.

ECRL project background
The ECRL rail project was originally planned to be developed in two phases, with phase one covering 600km of track and phase two with an 88km stretch.

Some modifications have been made to the alignment due to cultural, heritage, and environmental concerns. The realigned stretch will run from Mentakab to Port Klang via Negeri Sembilan to avoid traverse through the Klang Gate Quartz Ridge.

The new alignment also resulted in a significant reduction in construction costs from MYR65.5bn ($15.8bn) to MYR44bn ($10bn), based on a comprehensive value engineering exercise.

ECRL route details
The new rail link will pass through the states of Kelantan, Terengganu, Pahang, Negeri Sembilan, WP Putrajaya, and Selangor. It will originate at Kota Bharu, the state capital of Kelantan, and terminate at Port Klang in Selangor. It will reduce the travel time from Kota Bharu to WP Putrajaya to approximately four hours.

The route will have three interchange stations along, namely Mentakab, Bangi/Kajang, and Putrajaya Sentral.

The Putrajaya Sentral station will be an interchange with Express Rail Link (ERL) for those travelling to Kuala Lumpur International Airport (KLIA) and KLIA2 and with Mass Rapid Transit 2 (MRT2) Sungai Buloh-Serdang-Putrajaya (SSP) line.

The line will interchange with KTM Electric Train Service (ETS) and KTM Komuter service at Bangi / Kajang, while the Mentakab station will allow the ECRL to interchange with KTM Intercity and KTM Kargo service.

The standard gauge double-track railway line will allow passenger trains to travel at speeds up to 160km/h and freight trains at 80km/h.

Stations and tunnels along the ECRL route
The East Coast Rail Link project will comprise a total of 20 stations, including 14 passenger stations, five combined passenger and freight stations, and one freight station.

“Freight transport along the East Coast rail link will account for 70% of the total revenue generated by the rail network.”
The route will have approximately 40 tunnels from Kota Bharu to Port Klang, including the 2.8km-long Kuantan Tunnel, the 1.1km-long Paka Tunnel, and the 871m-long Dungun Tunnel. The longest tunnel measuring 7km will be built in the Jelebu-Semenyih area.

The line will also feature multiple viaducts of approximately 100km in length.

Contractors involved
CCCC is the main contractor, while HSSI was appointed to provide supervising consultancy services, detail design, and shop drawing design consultancy services for the East Coast rail link.

Bursa Malaysia was selected as the engineering and project management consultant for the project, while logistics services are provided by FGV Holdings.

AECOM was contracted to supervise the stations, viaducts, tunnels, and depots of the project.

SANY supplied construction equipment such as cranes, rotary drilling rigs, concrete pump machinery and excavators.

ECRL project benefits
Cooperation between MRLSB and CCCC will increase the involvement of local contractors in ECRL’s civil works up to 40%. It will also improve bilateral relations between both countries.

The project is expected to generate jobs worth MYR17.6bn ($4.2bn) during the construction.

It will boost small and medium-sized businesses, as well as increase the demand for housing, supplies, and transport in the regions along the East Coast Rail Link.

The Kuantan Port-ECRL-Port Klang section will shorten the travel time between the two ports, thus benefiting trade in the region.

Freight transport along the East Coast rail link will account for 70% of the total revenue generated by the rail network, while the remaining 30% will be driven by passenger transport.