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KUALA LUMPUR: The Federal Land Development Authority losses doubled to RM1 billion, almost twice the RM545 million losses reported in the previous year. According to the 2022 auditor-general’s report, Felda’s external debt stood at RM8.66 billion in 2022, slightly lower than the RM8.8 billion owed in the preceding year. The agency has recommended that Felda establish a clear path to operate independently, without relying on additional financial support from Putrajaya. It pointed out that Felda has been heavily reliant on financial assistance from the federal government, receiving RM200 million in grants in 2022, a decrease from the RM342 million received in 2021. “The reduction in grants received by Felda affected its operational sustainability,” the report noted. Further, the auditor-general’s report  also suggested that Felda closely monitor its subsidiary companies to ensure their self-sustainability and the ability to yield profits for the company without relying on the parent company. Felda has group-level loans, including a RM2.5 billion tawarruq financing facility agreement with GovCo Holdings Bhd. The report highlighted that FIC Properties Sdn Bhd failed to repay the loan, leading Felda to enter into a new agreement with GovCo as a corporate guarantor for the tawarruq financing facility agreement. Furthermore, PR1MA Malaysia reported a loss of RM257 million in 2022 and is facing challenges in repaying a RM1.75 billion Islamic medium-term note loan due in October 2024, with only RM428 million in cash by the end of 2022. The report recommended that PR1MA ensure cash projections from unit sales fund operational activities and facilitate the repayment of sukuk tranche 2. The report highlighted that the Armed Forces Fund Board (LTAT) had not accounted for impairments for investments in 13 subsidiaries, including Boustead Holdings Bhd (BHB) and Pharmaniaga Bhd, resulting in an overstatement of net profit and investment in subsidiaries by RM0.812 billion. LTAT has been in a negative reserve balance since 2020, with unrealised losses of RM0.662 billion from 41 old share portfolios. The auditor-general advised LTAT to restructure its investment strategies, enhance governance in investment management, and ensure dividend declarations are based on realized gains to maintain payout ability to eligible contributors. Additionally, the report highlighted that four federal agencies have not yet submitted their financial statements for the year 2022.

KUALA LUMPUR: Cypark Resources Bhd has expressed confidence in the solar projects in Kelantan and Terengganu and assured the company has ample funds to fulfil these ventures. The company has opted to postpone the coupon payment scheduled for March 4 on its perpetual sukuk. In a statement, Cypark said it is dedicated to delivering 270 megawatts of solar projects in Kelantan and Terengganu. “The decision to defer the March 4, 2024 coupon payment on the perpetual sukuk is a strategic move aimed at prioritising funds for the completion of the projects by the second quarter of 2024, as permitted by the terms of the perpetual sukuk,” Cypark statement said. The company clarified that this deferment aligns with Cypark’s debt optimisation strategy, strategically matching facilities with long-term concession assets. Despite the deferment, the sukuk remains secure, with Cypark benefiting from 95 per cent cash sweeps from the generated revenue, which currently amounts to RM86.5 million. Highlighting its financial strength, Cypark asserted that it possesses sufficient cash flow to attain its ongoing projects’ commercial operation date (COD). This assurance is backed by the major shareholder’s support through an RM265 million sukuk in the fourth quarter (Q4) of 2023, along with available banking facilities from principal bankers. RHB Investment Bank Bhd is the principal adviser and lead arranger for all three tranches of the unrated perpetual sukuk Musharakah program, totaling up to RM500 million, issued in 2020 and 2023.

KUCHING:  Will the 8 per cent sales and service tax (SST) hike on power usage of more than 600kWh critically impact the B40 and M40 middle-income groups? Malaysian Chinese Association (MCA) president Wee Ka Siong has recently stated that there will be a snowball effect on these lower-income groups despite being directly exempted from the additional 2 per cent spike in the SST rate. “Although those who use less than 600 kilowatt-hours of electricity a month would be exempted from the rise in the SST rate from 6 per cent to 8 per cent,” Wee in a recent video posted on Facebook said. He added that the fact that the two percentage point increase applies to commercial entities means that it would still indirectly impact the B40 and M40 groups. According to Wee, although those who use less than 600 kilowatt-hours of electricity a month would be exempted from the rise in the SST rate from 6 per cent to 8 per cent, he said the fact that the two percentage point increase applies to commercial entities means that it would still indirectly impact B40 and M40 groups. “The B40 group will be affected by the increase in SST. Why? Factories, warehouses, and shops will increase their rent, affecting the price of goods. Who will bear the increased cost? The people. So this is the effect that it will have on consumers,” he added. Echoing Wee’s thoughts, Sarawak Premier Datuk Patinggi Abang Johari Tun Openg said yesterday: “Electricity tariffs in Sarawak are expected to increase in line with the implementation of the revised SST from 6 per cent to 8 per cent. “The state has no option but to comply with the expected changes as the imposition of the tax is in force nationwide.” However, the premier has given assurance that the state government will continue to help domestic consumers through its initiative. “We have exemption (initiative), so we can make our own decisions within the state,” he told reporters in Kuching yesterday. However, a Sarawak politician, Michael Kong, begs to differ. According to him, the SST would only be applicable for electricity usage above 600kWh, which should not affect almost 85 per cent of users nationwide, as announced by the Ministry of Finance last year. “While I note Wee Ka Siong’s concerns about a snowball effect of increased cost, he has first used the wrong example. “Commercial electricity is currently exempt from taxation, and the hike to 8 per cent SST does not affect its exemption status. Thus there will be no snowball effect due to electricity tariff,” he told The Exchange Asia. According to him, it is important to recognise the need for Malaysia to broaden the tax base for a stronger fiscal foundation now. He said the government is equally responsible for this increase in SST and must find ways to alleviate the financial burden of the people. “Therefore while some businesses will have to increase the price for their services, the Ministry of Finance has given its commitment to utilise the additional estimated RM3 billion in revenue to enhance social assistance for the people. “This will not only help to mitigate the costs of living faced by the people but more importantly to redistribute financial assistance to those who need them such as the B40 and M40,” added the DAP politician, a special officer to Sarawak party chief Chong Chieng Jen.

KUALA LUMPUR: The Negeri Sembilan state government and Tanco Holdings Bhd (THB) signed a joint venture agreement to develop Malaysia’s first smart artificial intelligence (AI) container port at Dickson Bay, Port Dickson, in Negeri Sembilan. This pioneering project, which has received a nod from the Ministry of Transport, marks a significant milestone in Negeri Sembilan’s strategic development supporting the nation’s economic growth. Negeri Sembilan chief minister Datuk Seri Utama Aminuddin Harun expressed immense enthusiasm for the project. “This smart AI container port is not just a development. It is a leap towards revolutionising our state’s and Malaysia’s economic landscape. “We are setting the foundation for future generations, ensuring Negeri Sembilan plays a crucial role in both the state’s and nation’s economic growth and global maritime logistics,” he said at the signing ceremony. The event was held in Negeri Sembilan and was graced by transport minister Anthony Loke Siew Fook and Aminuddin. Midports Holdings Sdn Bhd (MHSB), a 79 per cent-owned subsidiary of THB and Menteri Besar Negeri Sembilan (Pemerbadanan) (MBNS), signed a joint venture (JV) to develop the smart AI container port. The deal includes an additional 83.19 acres of seabed land submerged off Dickson Bay in Port Dickson. Both entities will set up a joint venture company (JVC), which will serve as the development backbone of the project, driving forward the construction and future operation of the smart AI container port. The shareholding of the JVC will be 80 per cent by MHSB and the balance will be 20 per cent by MBNS. Aminuddin added that the smart AI container port marks a transformative development for Negeri Sembilan, promising job creation and enhanced land values, potentially leading to the development of new and existing industrial zones close to the smart AI container port and attracting local and foreign investments. This growth in infrastructure will generate significant revenue for Negeri Sembilan and the nation, reinforcing Malaysia’s position in international trade and establishing the region as a key economic hub. Aminuddin further emphasised the project’s significance in attracting investment and technology. “Establishing this port is a clear signal to the world that we are ready to enable the future of trade and technology. “This venture is expected to attract more foreign direct investment that will positively contribute to the gross development product (GDP) and foster the growth of high-tech technology factories, further solidifying Malaysia’s position as a key player in the global economy,” he said. The smart AI container port will be supported by a 480-acre landbank owned by THB, eliminating additional land acquisition costs. The site is strategically located at the midway point of the Straits of Malacca and features natural deep water access with more than 21 meters in depth, which is 1.8km from the shoreline. It can accommodate the largest container ships globally. This strategic advantage is critical, as the Straits of Malacca is one of the busiest straits in the world and positions Negeri Sembilan to capitalise on this bustling maritime route. It is designed to leverage cutting-edge technologies that will enable automated and efficient container handling, predictive maintenance, and enhanced security measures, setting new standards in operational efficiency and environmental sustainability. THB group managing director Datuk Sri Andrew Tan Juan Suan said this port in Port Dickson is a testament to the company’s commitment to innovation and sustainability. “Integrating advanced AI and smart technologies will enhance our logistics capabilities and ecosystem and position Malaysia as a leader in automated and sustainable port operations,” he said. The smart AI container port also offers logistical advantages by significantly reducing transportation costs for gateway containers for businesses dependent on distant ports and enhancing speed and efficiencies for transhipment containers. Tan said that this strategic proximity is also expected to decrease carbon emissions, demonstrating THB’s contribution to sustainable practices. “We have started our groundwork and invited foreign industrialists to the smart AI container port location. “These industrialists have expressed positive feedback and interest in the potential development of new industrial parks close to the smart AI container port to establish a more conducive trade and logistic ecosystem to accelerate the state’s industrialisation plans,” Tan said. With keen interest from various groups expressed to realise this strategic initiative to establish a smart AI container port, Tan said THB also plan for MHSB to seek permission from the relevant local authorities to undertake an infrastructure listing on the local exchange soon.

KUCHING: As Malaysia continues to stand as a prime location for business events in the Asia-Pacific region, the Malaysia Convention & Exhibition Bureau (MyCEB) and Business Events Sarawak (BE Sarawak) forged a partnership to bolster the country’s leading position as the destination for business events. On Monday, the Sheraton Hotel here became the focal point where MyCEB, BE Sarawak, and BE Sarawak Industry Partners and 100 stakeholders from various sectors engaged in a summit dialogue. The stakeholders included professional conference organisers, professional exhibition organisers, event management companies, destination management companies, and relevant government agencies. Central to the agenda of this event was the spotlight on MyCEB’s innovative incentive campaign – MyTripleE, unveiled in August 2023. This initiative showcased Malaysia’s offerings in the targeted market segments namely conventions, exhibitions, as well as corporate meetings and incentives, with a special focus on Sarawak and the state’s potential. The collaboration aims to engage with partners, such as travel agents, hotels, and product owners, in promoting and leveraging the MyTripleE campaign. MyCEB chief executive officer Azman Tambi Chik expressed his desire for the collaborative endeavour and said MyCEB is steadfast in its commitment to bolster the state of Sarawak’s business events and cultivate collaboration with the state bureau. “Our dedication extends to invigorate engagements and foster enduring partnerships. Therefore, we are here to champion the MyTripleE Campaign, highlighting Malaysia’s strengths and opportunities. It brings us great excitement to collaborate with BE Sarawak for this event, marking a significant milestone in propelling Malaysia’s business events sector forward.” Echoing this sentiment, BE Sarawak chief executive officer Amelia Roziman, emphasised the significance of strategic alliances in driving progress within the business events industry. “BE Sarawak will continue supporting MyCEB in propelling business events industry development. Our partnership and collaboration with MyCEB through the initiative of the MyTripleE campaign demonstrate an unwavering commitment to support and attract more business events to Sarawak while elevating Sarawak as a premier destination for business events in Asia.” MyCEB recorded a modest closing at 20 supported international events that brought together 19,173 total delegates with an estimated total economic impact of RM 155.9 million in 2023, for the state alone demonstrating its ability to bring the world together. With representation from around the globe, these large events showcased the state’s sophisticated event infrastructure, excellent connectivity, and engagement with the issues confronting businesses and society. As it becomes an increasingly important platform on the world stage, these strengths are being harnessed for business events of all sizes. MyCEB – BE Sarawak Engagement with BE Sarawak Industry Partners 2024 promises ample opportunities for networking, engagement, and collaboration with the state bureau and industry partners, reinforcing the shared dedication of MyCEB and BE Sarawak to fostering growth and innovation in the business events sector.