Monday, 30 July 2012

News Highlights - Malaysia Resources Corporation, Banking Sector


Malaysia Resources Corp Bhd (RM1.73/share)
In line for RM1b MRT job
Malaysia Resources Corp Bhd (MRCB) is expected to win a contract worth about RM1bil this week for the Sungai Buloh-Kajang (SBK) MY Rapid Transit (MRT) line. If awarded, this will be the first railway-related job for MRCB this year. MRCB, which is 42% owned by the Employees Provident Fund, also won a RM1.3bil contract for the Ampang light rail transit (LRT) extension project in August 2011. Business Times learnt that the latest contract is to build viaduct guideways and other associated works between the Taman Mesra and Kajang stations. Sources close to MRT Corp said it was also expected to award several contracts to build stations and a depot over the next few weeks. This includes a contract worth RM1.6bil to supply trains for the SBK line. MRT Corp has received bids from Changchun Railways Vehicle Co Ltd, Siemens SMH Rail Consortium and CSR Zhuzhou Electric Locomotive Co Ltd to supply the trains. So far, MRT Corp has awarded 33 contracts valued at RM15.5bil for the SBK line. There are 21 contracts in the process of evaluation. The remaining 31 contracts will be awarded by the end of this year.  – Business Times

Banking Sector
Developments in S’pore may impact M’sia banking scene
A recent issuance of banking licences in Singapore may have some implications on the Malaysian banking system, according to industry sources. Recently, the Monetary Authority of Singapore (MAS) said it would be granting two full-fledged licences in the city state to two Chinese banks which MAS had not named just yet. The full banking licences, called Qualifying Full Bank (QFB) licences in Singapore, will be issued to two Chinese banks already operating in Singapore. However, what is noteworthy is that this has taken place amidst a long-standing application for a full-fledged banking licence in Singapore by Malaysia’s CIMB Group Holdings Bhd. The only Malaysian bank with this type of privileged licence in Singapore today is Malayan Banking Bhd. Reports have indicated that Singapore’s DBS Bank Ltd is seeking to penetrate the Malaysian market after Bank Negara had in April given the go-ahead for DBS to begin negotiations with Duxton Investments Pte Ltd, a unit of Temasek, for an effective 14.2% equity in Alliance Financial Group Bhd (AFG). However, it is left to be seen if DBS will get the necessary approvals to do all this, especially in light of Singapore’s recent decision to award the QFB licences to two Chinese banks while a Malaysian bank has been waiting for the same. - StarBiz

Source: AmeSecurities 

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