Wednesday, April 15, 2015

News of the Day - 16 April 2015


• Eco World wins rights to develop 190ha site in Batu Kawan, Penang 

Eco World Development Group has won the rights to develop the 190ha site in Batu Kawan on mainland Penang. The property group was notified last week of the Penang government's decision to award the tender. Eco World is expected to pay RM1.2bn for the land. As the winning bidder, Eco World will have to develop a golf course on 60ha of the total 190ha. The company is expected to sign a letter of award next week. 

The remaining land will see a mixed development project called Eco-Marina, which will include a waterfront city overlooking Penang island. On the drawing board is said to be the proposed development of a mini mall comprising shops and offices in line with the company's "Eco" theme that emphasises sustainability and liveability. 


• Cheaper broadband upcoming

Fees for mobile internet broadband packages will drop an average 14% while basic fixed packages will be lowered by as much as 57%, said the Ministry of Communications and Multimedia Malaysia. In a statement yesterday, Minister Datuk Seri Ahmad Shabery Cheek said mobile broadband packages will be offered at RM25 per month and consumers who sign up for these will have a monthly data cap of 1GB and at least 3G high-speed packet access for both prepaid and post-paid services.


• Penang is set to get its maiden LRT project, 17.5km elevated stretch 

Penang is set to get its maiden LRT project – a 17.5km elevated stretch linking Komtar with the Penang International Airport. With construction slated to begin next year, the RM4.5bn project is part of a package of solutions for an island that has long been choking on its traffic. The LRT project – expected to be awarded in June – will mark the realisation of the long-awaited implementation of the RM27bn Penang Transport Master Plan (PTMP), which also includes a 25km expressway linking Bayan Lepas and Tanjung Bungah. According to reliable sources, Gamuda Bhd, IJM Corp Bhd, and a Chinese company have been shortlisted to undertake the projects, the bulk of which would be funded through land reclamation rights in the state. 

The LRT and new expressway will be built using the Project Delivery Partner (PDP) concept, where the PDP will step in to resolve problems should parts of the construction fail to meet construction criteria. In Penang’s case, should either one of the Malaysian companies get the award, it would have to partner with the Chinese company, especially in the construction of the LRT project. It would be likewise should the Chinese company win the contract.


• Petronas Dagangan will offer RON97 petrol by Sep 

Petronas Dagangan Bhd's (PetDag) CEO Mohd Ibrahimnuddin Mohd Yunus said PetDag will offer RON97 that complies with Euro-4M standard by September this year. "We have not set the selling price yet," he said. Currently, RON97, RON95 and diesel supplied by Petdag is complying with with Euro-M2. 


• Tropicana sells explosive manufacturing business for RM194.7m cash 

Tropicana Corp is hiving off its explosive manufacturing business by selling its entire 73% stake in Tenaga Kimia Sdn Bhd for RM194.7m cash to Austin Powder Asia Pacific, a subsidiary of US-based Austin Powder Holdings Company. Tropicana expects to record a net gain of RM48.5m from this proposed transaction. With the asset sale, its potential net gearing could fall to about 0.3x


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