Monday, 9 April 2012

News Highlights - SP Setia, Malaysain Building Society, Construction Sector


S P Setia Bhd (RM3.96/share)
Enters Indonesia in regional expansion
S P Setia continues its regional expansion with the opening of a representative office in Jakarta, giving the developer a foothold in the archipelago.  Jakarta is the fifth overseas destination the developer has ventured into after Vietnam, Singapore, Australia and China.

In a statement, S P Setia president and CEO Tan Sri Liew Kee Sin said the group’s first luxury development – Duta Nusantara – in Kuala Lumpur, was inspired by Indonesian architecture and the serene lifestyle offered by the many world class resorts of Bali.  This led the group to include more Indonesian influences in its subsequent luxury projects such as Duta Tropika and Setiahills.

Liew said S P Setia hopes to be able to directly source Indonesian arts and crafts, building materials and furniture for its projects in the future. – The Edge

Malaysian Building Society Bhd (RM2.28/share)
Extends home financing
Malaysian Building Society Bhd (MBSB) president and CEO Datuk Ahmad Zaini Othman said it will start extending home loan financing facilities to the second generation of property purchasers for its housing project in Sepang.

The non-bank lender, which does not come under the purview of Bank Negara, said this special financing facility would allow home buyers to stretch monthly home-loan repayments to the kids (second generation) of these home buyers, most of whom are retirees in their 50’s.

According to Ahmad Zaini, these property buyers will be offered a slightly higher interest rate of base financing rate (BFR) minus 0.5% with a tenure of 30 years, or age 70, whichever comes first.  These interest rates are slightly higher than the conventional type of housing loans because of the buyers’ advanced age profile.

The offering of such loans sets a precedent for the property sector in Malaysia which has seen other financiers limiting funding for only up to a generation of borrowers until they are aged 70. - StarBiz

Construction Sector
Govt still keen on high-speed rail link
The government is still keen on the high-speed rail project linking Kuala Lumpur and Singapore, the Land Public Transport Commission (SPAD) said. SPAD chief executive officer Mohd Nur Ismal Mohamed Kamal, however, stressed that it will depend on the outcome of a feasibility study.

Mohd Nur Ismal confirmed that the feasibility study, which started last month, will take six to 12  months to complete. The aspects under consideration include the alignment, cost, benefits, risks, economic impact and ridership.

The government reiterated in November 2011 that it may go ahead with the project but recently said the rail network is not a priority for now. The focus currently is to link Johor Baru and Singapore first with a rapid transit system by 2018 as part of efforts to increase connectivity between the two cities.

Three groups have made presentations on the project to the National Key Economic Area laboratory. They are UEM Group-Hartasuma Sdn Bhd, China Infraglobe Consortium-Global Rail Sdn Bhd and YTL Corp Bhd. – Business Times

Source: AmeSecurities

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