Some local business news of importance 5.11.2009

It may be too early to say who will eventual top service provider for mobile data, but Norwegian firm Telenor ASA is confident its 49%- owned DiGi.COM Bhd (DIGI MK, Hold, TP: RM20.00) and the latter’s rivals – Maxis Bhd and Celcom (M) Bhd – can fend off competition from new 3G and WiMAX licensees and continue to dominate the marketplace as the window to shake market positioning has close. The 3 largest operators, Telenor group executive vice-president and
head of Asia Region, Sigve Brekke said, would continue to dominate the lucrative voice and growing mobile data market by leveraging on the huge competitive advantage they had built for themselves over the past decade. He said the big players, with their dominant market positions, would always have more money to invest and competitive advantages such as branding, an
existing customer base, and more importantly better understanding of the marketplace and customer behaviour. “We are in Asia for the long run especially after we made the decision of entering India. It is not just one more country. Asia is going to be the biggest part of Telenor with India,” Brekke said. (Financial Daily)


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With China’s President Hu Jintao visiting Malaysia next week, speculation is swirling the Malaysian government may finally seal a deal to sell 10% of planter Sime Darby Bhd (SIME MK, Hold, TP: RM8.10) to a Chinese group. It was reported that Malaysia had offered China the stake in Sime, the country’s biggest palm plantation firm by land ownership, first emerged in September, but were dismissed by Prime Minister Datuk Seri Najib Razak as pure speculation. The chatter about the agreement that could be worth about US$1.6bn (RM5.47bn) is back, with one investment bank spelling out likely
implications of the possible deal. China’s strategic backing will enhance Sime’s business in the country, where it involved in
motor and heavy equipment distribution, water treatment services, port operations, property development and palm oil sales
and marketing. The deal, if it materialises, is expected to serve the national interest of both countries as well as Sime’s which
has invested US$1bn in 6 business segments in China. (Financial Daily)
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Hong Leong Bank Bhd (HLB) (HLBK MK, Hold, TP: RM6.30) has entered into a finance development coorperation
agreement with China Development Bank Corporation (CDB). HLB said the agreement set the platform for the group, including Hong Leong Islamic Bank Bhd and CDB to collaborate in various areas including funding financing opportunities, currency swaps, personnel exchange and training as well as information exchange. “This agreement effectively enables HLB to work closely with CDB, one of three policy banks and one of the largest banks in China. It forms the basis to coordinate with each other for CDB to expand and extend its funding capacity, financing support and financing channels into our local economic projects and financial system,” said HLB group managing director and chief executive Yvonne Chia. (Financial Daily)


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Perusahaan Otomobil Kedua Sdn Bhd (Perodua) has appointed Aminar Rashid Salleh as its new managing director with effect from Nov 16, 2009 to replace Datuk Syed Abdull Hafiz Syed Abu Bakar, who will complete his term on Dec 31, 2009. Perodua said yesterday Aminar Rashid, was currently the executive director and the head of strategic marketing group at UMW Toyota Motor Sdn Bhd, a subsidiary of UMW Holdings Bhd (UMWH MK, Hold, TP: RM5.52). (Starbiz)


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Berjaya Land Bhd (Bland) will start development work on its US$6.3bn (RM21.8bn) integrated property development prject in Vietnam in 2012 the company told Bursa Malaysia yesterday. The Nhon Trach New City (NTNC) township project was scheduled for completion in stages from 2015 to 2030. BLand says the estimated investment cost is US$400m (RM1.4bn). NTNC will be developed and managed by Berjaya NTNC Ltd, a newly incorporated company of BLand’s wholly owned subsidiary Berjaya Leisure (Cayman) Ltd (BL Cayman). BL Cayman received the investment certificate from the Vietnamese licensing authority for the NTNC project. NTNC is a 600ha project in the heart of Nhon TrachCity, about 30km from Ho Chi Minh City. (Starbiz)


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Industrial and Commercial Bank of China (ICBC), will get a licence to open in Malaysia when Chinese President Hu Jintao visits on Nov 10-11 and a raft of commercial deals will be signed. Citing an unnamed sernior Malaysian government official said yesterday that ICBC would get an operating licence and be allowed to open 4 branches. “We hope to get the approvals ready for the visit,” the official said. “There will be other economic initiatives, which will include invitations to
Chinese companies to participate in infrastructure ventures and take strategic stakes in Malaysian companies and projects.” (Financial Daily)