News Highlights - Kumpulan Perangsang Selangor, Automotive Sector, Banking Sector, Construction Sector, Telecommunication Sector

Kumpulan Perangsang Selangor Bhd (RM1.06/share)

Mulls selling highway stake

Kumpulan Perangsang Selangor Bhd (KPS) is looking at a potential sale of its 20% stake in Sistem Penyuraian Trafik KL Barat Holdings Sdn Bhd (Sprint), which is the concession holder of the 26.5km Sprint Highway. KPS chairman Raja Idris Raja Kamarudin said their investment of RM130.0mil in 2002 has not seen any dividends or profitability. The other stakeholders in Sprint are Gamuda Bhd (30%) and Lingkaran Trans Kota Holdings Bhd (50%). Raja Idris said the group was looking for investments that could provide quick returns, within five to six years. – StarBiz

Automotive Sector

All eyes on NAP

Indications are that some aspects of the revised National Automotive Policy (NAP) will soon make its appearance, ending the long wait for liberalisation of the sector. One government source said phases of the NAP were expected to be announced soon and would include a liberalisation of the segment below 1,800cc, making it more attractive for new players to enter the marketplace. Minister of International  Trade and Industry (Miti) Datuk Seri Mustapa Mohamed said his ministry, which is reviewing the NAP, was in the final stages of streamlining the incentives for energy-efficient vehicles (EEVs). He added that the Government was talking to “a few Japanese automakers” to manufacture EEVs locally. According to reports, the Government has put in place strategies under the upcoming revised NAP to turn Malaysia into a regional hub for EEVs. Mustapa also said that the Government was in the final stage of setting up the Malaysian Automotive Council, which would oversee the overall implementation of NAP. – StarBiz

Banking Sector

BNM clarifies guidelines on NPL sales

Bank Negara Malaysia (BNM) said less than RM3.0bil in non-performing loans (NPLs) have been sold by local banks since 2005, much less than what was reported in recent news reports. In a statement yesterday, the central bank also clarified the guidelines on the sale of NPLs by Malaysian banks, stating that banking institutions, as part of their risk management practices, are permitted to sell NPLS to non-banking institutions, adding that the sale helps ensure maximum recovery. The guidelines state that purchasers of these NPLs must be locally incorporated companies, with a maximum foreign equity cap of 49%. BNM also said that NPL sales should not affect any debt restructuring agreements and borrowers of these NPLs must be informed.  – The Edge

Construction Sector

RM160b to lift rail transport

The Land Public Transport Commission (SPAD) yesterday said Malaysia’s railway industry will pump up to RM160.0bil in total investment between now and 2020 to develop the rail infrastructure.  SPAD chairman Tan Sri Syed Hamid Albar also said the government has invested more than RM50.0bil in rail transport since the 1990s. SPAD is currently undertaking a series of studies under the Urban Rail Development Plan. Among them are the KL Monorail extension plan from Jalan Tun Sambanthan in Brickfields to Happy Garden in Old Klang Road; MRT 2 circle line from Sentul Timur to Ampang; MRT 3 north-south line from Selayang to Putrajaya; and the KTMB freight relieved line from Subang to Port Klang. SPAD has also started a feasibility study on a high-speed rail project linking Kuala Lumpur and Singapore. Syed Hamid said the study was expected to be completed by year-end. – Business Times

Telecommunication Sector

MCMC finalising allocation

The Malaysian Communications & Multimedia Commission (MCMC) is finalising its allocation of the 2.6GHz spectrum that will accommodate the shift to fourth generation wi reless and  long- term evolut ion networks by Malaysian  telecommunicat ion companies. Referring to the commission’s aim to increase efficiency by encouraging infrastructure tie-ups among telco, chairman Datuk Mohamed Sharil Tarmizi said the telco players will get to keep their brands, but will need to share the spectrum across maybe two to three networks. He added that not all nine players will get the spectrum. In June last year, the MCMC called for a resubmission of the spectrum allocation proposals from telcos. The frequency will only be available from Jan 1, 2013 but all players have the right to apply for the spectrum for trial purposes, with most reportedly having already done so.  - StarBiz

Source: AmeSecurities