LOCAL BUSINESS NEWS 21.1.2010

Baswell Resources Bhd has bagged a US$100m (RM336m) subcontract from Hong Kong-based project management and building material sourcing company Metroplex Resources Ltd for a mixed development project in Abu Dhabi. Baswell has signed a memorandum of understanding (MoU) with Metroplex to entirely manufacture and install the furniture and fittings of the development. Baswell said it would collaborate with Metroplex and the Al-Amry Group to design, build and install a project for the Al Reem Island mixed development. “The MoU is consistent with Baswell;s market development plans as the company intends to enter into various collaborative agreements with other parties to enhance its international furniture
manufacturing status,” said the company. (Financial Daily)
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Vale to invest RM3bn in Perak. With land and port deals virtually sealed, a Brazilian mining giant’s plan to build a distribution centre in Perak is set to kick off this year. According to Vale SA, the first phase will involve US$900m (RM3bn) in capital expenditure, including US$98m (RM333m) in 2010. The Vale project took a significant step forward on Tuesday when KYM
Holdings Bhd said its agreement to sell 16 parcels of land in Teluk Rubiah, Manjung to Vale International SA, had become unconditional. (StarBiz)
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A mixed development project has been proposed for the site located directly across The Renaissance Kuala Lumpur and next to the Sunway Tower. The developer of an abandoned hotel project at the junction of Jalan Sultan Ismail and Jalan Ampang in Kuala Lumpur has submitted a new proposal for a mixed development project on the site, the city's mayor said. The
site, a prime piece of land located directly across The Renaissance Kuala Lumpur and next to the Sunway Tower (previously Wisma Denmark), was previously slated for the opening of the five-star The Grand Duta Hyatt hotel. However, the project was stalled due to the 1998 Asian economic crisis. Kuala Lumpur City Hall (DBKL) mayor Datuk Ahmad Fuad Ismail said it has
received an application from the developer for a 52-storey mixed development project consisting of service apartments, offices and a hotel. Kuala Lumpur Landmark Sdn Bhd, a subsidiary of Olympia Industries Bhd, was given the contract to develop the RM570m Grand Duta Hyatt in 1994. Mycom Bhd, the holding company of Olympia, then teamed up with Kuala Lumpur
Landmark to develop a 52-storey building to house its headquarters and the hotel. However, construction was halted in July 1998, when the group encountered financial difficulties during the economic crisis. The project was to recommence in 2003, but never did start. The hotel was built up to the 29th level before it was stopped. (BT)
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Sales of new vehicles could hit a new high this year after the industry turned in a better than expected performance in 2009. Malaysian Automotive Association (MAA) president Datuk Aishah Ahmad said total industry volume (TIV) could be higher than the all-time high record in 2005. Aishah, however, said MAA's official forecast for 2010 was 555,000 units, or 2.4%, more
than 2009, amid positive signs of an economic recovery and low interest rates. Last year, the TIV eased marginally 2% to 536,905 units, from the 548,115 units registered in 2008. MAA originally forecast that sales would contract by a double-digit percentage to 480,000 units in 2009. Last July, it revised the figure to 500,000 units. MAA expects the TIV to continue to grow around 3 per cent annually to 566,500 units in 2011 and 583,500 units in 2012 before breaching the 600,000 mark in 2013. Rising consumer sentiment, an improvement in the business confidence level and an expected rise in commodity prices, would provide support to the auto industry, she added. Passenger vehicles accounted for 91%, or 486,342 units, of the total sales in 2009. This was 11,117 units lower than in 2008. The commercial vehicle segment only eased 0.2%, or 93 units, to 50,563 units. Total production last year declined 41,541 units, or 7.8%, to 489,269 units. Of this, the passenger vehicle output stood at 447,002 units, down from 484,512 units in 2008. Aishah said the year-on-year sales volume in December surged by 20% to 47,668 units. On a month-on-month basis, it expanded 5.5%. (BT)
(so proton, EPMB A GOOD BUY ?)
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Malaysia may approve the introduction of a goods and services tax in March to increase revenue as the government seeks to narrow a budget shortfall, second Finance Minister Ahmad Husni Hanadzlah said. Full implementation of the levy may take about one a half years after approval as the system’s infrastructure is put together. The goods and services tax of 4% is expected to generate an additional RM1bn annually in revenue. Essential items such as agricultural products, poultry and livestock products, sugar, rice, flour, cooking oil and eggs will be exempted from the tax, the government has said. “We know very well that the sources of revenue for the government have been dependent heavily on petroleum. By introducing the consumption tax, we can have alternative sources of revenue,” Ahmad Husni said. (Malaysian Reserve)