Author name: admin

KUALA LUMPUR: Kuala Lumpur Kepong Bhd (KLK) has redesignated Tan Sri Lee Oi Hian as the executive chairman effective February 22, 2024, following the retirement of Raja Tun Alias. The redesignation was made at KLK’s 51st annual general meeting held on February 21, 2024. Raja Tun Alias has served as a board member since July 1, 1978, and was appointed as chairman of KLK on May 1, 2008. KLK in a statement said Raja Tun Alias has shown exemplary leadership and steered the company through some of its most challenging times. “KLK has been most fortunate and indeed privileged to have Raja Tun Alias serve on the KLK board for more than 45 years, the last 15, as our chairman. “We remain forever grateful for his astute leadership and steady oversight of KLK’s expansion and related diversification,” Lee said in the statement. Lee joined KLK in 1974 as an executive and was appointed to the board of KLK on February 1, 1985. In 1993, he was appointed as the group chairman and chief executive officer (CEO) and held the position until 2008, when he relinquished his role as chairman, but remained as an executive director and CEO of the KLK. Lee is also the chairman of Batu Kawan Bhd, the holding company of KLK. KLK board and management thanked Raja Tun Alias for his distinguished service to the KLK over the last 45 years.  

KUALA LUMPUR: Oil palm plantation player MKH Oil Palm (East Kalimantan) Bhd (MOP) signed an underwriting agreement with M&A Securities Sdn Bhd and Kenanga Investment Bank Bhd for its upcoming initial public offering (IPO) on the main market of Bursa Malaysia. Under the IPO, MOP will issue 220.0 million new ordinary shares, constituting 21.5 per cent of the company’s share capital of 1.02 billion. Additionally, 30.7 million existing shares, equivalent to 3.0 per cent of the enlarged share capital, will be offered for sale to selected investors through private placement. Among the 220.0 million new shares, 51.2 million new shares, or 5.0 per cent of the enlarged share capital, will be available for application by the Malaysian public through balloting. Out of these, 25.6 million shares or 2.5 per cent of the enlarged share capital, will be offered to the general public, with an equivalent amount reserved for Bumiputera public investors. Furthermore, 168.8 million new shares, representing 16.5 per cent of the enlarged share capital, will be allocated to chosen investors via private placement. MOP non-independent non-executive chairman Tan Sri Chen Kooi Chiew said this underwriting agreement marked a significant step towards listing the company on the main market of Bursa Malaysia. “With access to the broader equity market, MOP will have the necessary resources and flexibility to capitalise on the attractive opportunities ahead. “In line with our growth strategy, funds raised from the IPO will be used to expand our plantation landbank by acquiring land close to our existing plantation estates. “Additionally, we will also focus on enhancing our operational efficiency and increasing our processing capabilities and product offerings with new machinery and equipment,” Chen said in a statement. Under the underwriting agreement, M&A Securities and Kenanga Investment Bank will jointly underwrite 51.2 million new shares made available to the Malaysian public. MOP, an upstream oil palm plantation company, is engaged in oil palm cultivation, including the production and sales of crude palm oil (CPO) and palm kernel (PK). The company owns two oil palm plantation estates with a total area of 18,205 hectares, one palm oil mill and one jetty, all located in East Kalimantan, Indonesia. Within the plantations, most oil palms are in the prime mature stage, representing peak production years between the ages of 10 and 16. Situated along the equator, the plantations benefit from adequate rainfall and sunshine, creating an optimal climate for oil palm cultivation. The plantation’s operation is further supported by a palm oil mill and a jetty, easing logistics management. The plantation estates are strategically located in a prime area, close to the provincial capital of East Kalimantan, Samarinda, the financial centre of Kalimantan, Balikpapan and Indonesia’s new capital, Nusantara. “Overall, we are upbeat on our prospects, as the increase in global population is a crucial driver for rising demand for edible oils and fats globally. “We are well-positioned to benefit from the expanding global edible oils market and the rise in CPO consumption in Indonesia. “Moreover, MOP is set to gain from the economic transformation of East Kalimantan, spurred by the development of Nusantara, Indonesia’s new capital city,” Chen said. MOP will be listed in April with M&A Securities as the adviser, managing underwriter, joint underwriter and joint placement agent of the IPO exercise. Kenanga Investment Bank is the joint underwriter and joint placement agent. Upon completion of the IPO, MOP will be a 63.07 per cent subsidiary of MKH Bhd, from 100 per cent currently.

KUALA LUMPUR: Paramount Corporation Bhd’s (PCB) subsidiary, Co-labs Coworking, is expected to further grow its network of space offerings in the Klang Valley this year. The coworking space provider is also considering the viability of extending its presence to the north and south of the peninsula. The company officially launched its seventh space at The Five, Damansara Heights today. PCB deputy group chief executive officer Benjamin Teo, who is also a director of Paramount Coworking, said Co-labs Coworking is one of the top three coworking space operators in Malaysia and is poised to grow further beyond. “We are now in the final negotiations for our eighth location that we aim to launch by the middle of the year. “For our members, it means they can cross-locate under our Co-labs Coworking passport system, which means a bigger community and more opportunities for collaboration,” he said after the launching. Co-labs Coworking is a brand under Paramount Coworking, a subsidiary of PCB. “We are at an inflexion point in our industry. In 2024, only two per cent of the total office supply is made out of flexible offices. “Our bullish thesis is that this will grow 10-15 per cent in the next five years,” said Teo. He said with remote work and flexible schedules becoming increasingly popular, coworking is the perfect solution to meet the changing demands of the post-COVID office landscape. “Our spaces are designed to accommodate a mix of in-person and virtual collaboration, with more open spaces and shared facilities. “Through our community programming, we focus more on wellness and sustainability, with our spaces designed to promote employee health and environmental sustainability. “This is, in fact, the beginning of greater things,” he said. Co-labs Coworking’s optimism can be seen by its 47 per cent growth in the last three months as one of Malaysia’s top three coworking space operators. “We have expanded Co-labs Coworking by 52,000 sq ft since November 2023, from 115,000 sq ft to 167,000 sq ft,” said Teo. “We took up an adjoining space at Tropicana Gardens Mall at Kota Damansara and opened up two new spaces, Ken TTDI at Taman Tun Dr Ismail in Kuala Lumpur and The Five at Damansara Heights,” he said. Co-labs Coworking The Five, which offers 15,407 sq ft of coworking space across two levels at Block C of The Five @ KPD, has been open for business since 15 January 2024. It is located at one of the five low-rise buildings that house restaurants, cafés, retail outlets and office spaces. It is also a short walk from the Semantan MRT station. “Our coworking spaces are reenergizing these buildings, built in the early 1970s, with young people and their creativity energy and productivity,” Teo said. “Co-labs Coworking is not just an office space but a space for creativity, collaboration and community, for growth and productivity. Our community team members organise and curate activities that foster collaboration and community,” he said. Photo caption: At the launching of Co-labs Coworking. (From left to right) Paramount Coworking assistant general manager Wayne Yap, Paramount Corporation Bhd deputy group chief executive officer Benjamin Teo and group chief executive officer Jeffrey Chew.

KUALA LUMPUR: Daythree Digital Bhd (DDB) posted a revenue of RM89.9 million for the financial year ended December 31, 2023 (FY23), marking a 38.1 per cent increase over FY22’s revenue of RM65.1 million. This growth is a testament to DDB’s strategic alignment with the surging demand in the global business services (GBS) industry. Net profit increased 22.6 per cent to RM7.6 million in FY23 from RM6.2 million in FY22. In January 2023, DDB received approval in principle from the Malaysian Investment Development Authority (MIDA) for the tax exemption of an additional five-year term to February 15, February 2027. This exemption, however, will only apply upon the gazetting of the relevant tax exemption provisions, and until that time, statutory taxation remains in effect. For FY23, DDB posted a profit before tax (PBT) of RM10.8 million. Excluding the one-off listing expenses of RM1.2 million, the adjusted PBT stood at RM12.0 million. This represents a significant increase from FY22’s PBT of RM9.5 million. The year-on-year (YoY) growth in PBT of 26.3 per cent underscores DDB’s focus on growth, exemplified by securing eight new brands and two new lines of business from an existing client during the financial year. DDB managing director Raymond Davadass said the company prioritises understanding its clients’ unique challenges and crafting tailored solutions to drive their success. “We believe that through our consultative approach, we will not only attract new partnerships but also offer long-term relationships built on mutual growth and prosperity,” he said in a statement. Raymond said as a technology-driven company, DDB remain committed to innovation, focusing on technologies into services to boost efficiency and reduce reliance on manual labour for low value tasks. “Our dedicated digital transformation team continues to seek new ways to streamline processes, eliminate waste, and enhance our clients’ value,” said Raymond. The company’s growth momentum is supported by Malaysia’s digital economy aspirations and the government’s supportive policies, which have fostered a conducive environment for the GBS sector. Malaysia’s appeal as a GBS destination is further enhanced by its cost-effectiveness and minimal natural disaster risks, providing a stable business platform. The company’s energy and utilities sector remains a significant contributor, with RM39.9 million in revenue, embodying the DDB’s diversified strength across various segments including RM16.9 million from fintech and financial services, RM15.0 million from telecommunications and media, RM9.2 million from e-commerce and retail, RM5.4 million from travel and hospitality and RM3.5 million from other sectors. With the global GBS industry on an upward trajectory, DDB is optimally positioned to capture this growth. The Malaysian GBS industry is expected to expand from RM24.8 billion in 2023 to RM31.7 billion by 2027, at a compounded annual growth rate (CAGR) of 6.3 per cent. This promising outlook is mirrored in DDB’s strategic investments and utilisation of the RM33.1 million raised from the successful listing on the ACE Market of Bursa Malaysia, with a balance of RM25.2 million earmarked for further business expansion. Further, RM0.6 million has been utilised to recruit experts in the industry, RM0.3 million for capital expenditure, RM3.3 million for working capital, RM3.7 million for listing expenses, and a maiden RM0.01 million deployed in branding, marketing and promotional activities. As of February 21, 2024, DDB’s share price stood at RM0.355, indicating a market capitalisation of RM170.4 million, reflecting investors’ confidence in the company’s strategic direction and future potential.