Summary of business stories July 5 to 10


Among the top read stories are the moratorium, EPF, Digital Nasional Bhd’s appointment of Ericcson and the EMCO.


Bank Negara: Application for six-month moratorium starts Wednesday

  • The six-month moratorium for all individuals, microenterprises and affected small and medium-enterprises (SMEs) begins on Wednesday, according to Bank Negara Malaysia.
  • Opting in for the moratorium or any other repayment packages will be easy with no need for borrowers to provide supporting documentation. Approval will be given automatically, it added.
  • Bank Negara said on Tuesday this moratorium was in line with the National People’s Well-Being and Economic Recovery Package (Pemulih).


More critical support sectors allowed to operate in Selangor – MITI

  • The electrical and electronics (E&E) sector and its supply chains, aerospace sector, machinery and equipment (M&E) sector for the production of healthcare and food products as well as the key food and beverage manufacturing companies are now allowed to operate in localities subject to the Enhanced Movement Control Order (EMCO) in Selangor beginning today.
  • The Ministry of International Trade and Industry (MITI) moved swiftly to implement the decision soonest by convening further discussions with the Finance Minister and the Minister at the Prime Minister’s Department (Economy) after the Cabinet meeting held today.
  • As for aerospace sector, the permission is also given to the maintenance, repair and overhaul sub-sector.

Regaining our retirement nest

  • One of the incentives that the government designed to help cash strapped Malaysians and to tide them over during the pandemic is the tapping of the members’ savings in the Employees Provident Fund’s (EPF).
  • Consequences ofearly withdrawal are, first, members who withdraw will have a lesser sum available upon retirement, and second, for the EPF, they would need to make some provision for this withdrawal, which is expected to be about RM6bil a month for five months.
  • But, we must, at the same time, recognise that the EPF is our retirement fund and not an ATM where we go to every time we run out of cash.

Socso: Govt has disbursed RM15.67bil for wage subsidy programme

  • The government has disbursed RM15.67 billion under the Wage Subsidy Programme (PSU), which has benefited 2.74 million employees and 333, 533 employers in the country.
  • Social Security Organisation (SOCSO) chief executive officer Datuk Seri Mohammed Azman Aziz Mohammed said all sectors have benefited from the programme, starting from PSU 1.0 to PSU 3.0.
  • Following the announcement of PSU 4.0, the total allocation for the programme is expected to grow to RM15.82 billion, he told a press conference today.

Corporate News

Petronas secures 10-year term deal worth RM29bil to supply LNG to CNOOC

  • Petronas LNG Ltd (PLL), a subsidiary of Petronas, has secured a 10-year term deal to supply liquefied natural gas (LNG) worth RM29bil to CNOOC Gas and Power Trading & Marketing Ltd, a subsidiary of China National Offshore Oil Corporation (CNOOC).
  • This long-term supply agreement also includes supply from LNG Canada when the facility commences its operations by middle of the decade, Petronas said.
  • The term deal between Petronas and CNOOC is valued at approximately US$7bil (RM29bil) over ten years, it said in a statement here, today.

Kang Yew Jin new CTO of PLUS Malaysia

  • PLUS Malaysia Bhd has named Kang Yew Jin as its new chief technology officer in a strategic move to drive the company’s goal to assimilate large data applications in its day-to-day operations and continue its success post receiving the IDC Digital Transformation Award 2020.
  • Kang who has a Bachelor of Engineering in Computer Engineering from the University of New South Wales has over 20 years of experience as an IT professional.
  • His vast recognition includes the PIKOM CIO of the Year 2015, CIO 100 Index Award for Growth Category awarded to the Hong Leong Bank’s PEX capabilities in 2016, Asian Banker Technology Innovation Award 2016 for Cloud-based Project, IDC Financial Insights Innovation Award 2015 and 2016, and IDG’s Top 50 Asean CIOs in 2019 and 2020.

Scion of richest Thai family prepares for bad debt bonanza

  • Countless factories, hotels, restaurants and retailers have shut down.
  • The normalization of credit costs may take longer in markets where relief has been extensive but economic outlooks remain under pressure, such as in Malaysia and Thailand, Fitch said.
  • While Rathanon Fookiat, a manager at Bangkok Commercial Asset Management, has echoed Schwin’s views on the likelihood of more distressed assets coming to market, he warned investors against haste.


The RM700mil 5G award clincher

  • The winning bid by Ericsson Malaysia for the 5G network rollout at RM11bil was RM700mil cheaper than the next lowest bid, said Digital Nasional Bhd (DNB) in a statement yesterday.
  • It said the tender for the 5G network began with an initial evaluation of 14 potential bidders, then it shortlisted eight.
  • The eight, according to sources, were said to be Ericsson, Huawei, ZTE, Samsung, Cisco, Nokia, NEC and FibreHome.

DNB shares details on 5G network tender process

  • Digital Nasional Bhd (DNB) has provided some details over the tender process leading to the appointment of Ericsson (Malaysia) Sdn Bhd as its strategic partner in the national 5G network project.
  • In a statement, the government-owned special purpose vehicle overseeing the deployment of the 5G network said the tender process, which began in April this year, was both rigorous and competitive.
  • The design, build and maintenance of the Malaysian 5G network managed by Ericsson is estimated to cost RM11bil, which DNB revealed costs about RM700mil less than the total cost of ownership of the next closest bid.


DASH sub-contractors seek RM100mil due payment

  • Melima Consortium, a group of four sub-contractors appointed to rescue portions of the Damansara-Shah Alam Elevated Expressway (DASH) CA4 construction project, is claiming RM100mil from the project’s turnkey contractor Turnpike Synergy Sdn Bhd.
  • This follows a legal dispute between Turnpike and the main contractor of the project Panzana Enterprise Sdn Bhd (Panzana), according to statement by Melima’s lawyers Thomas Philip Advocates and Solicitors.
  • Melima also said it was forced to bring construction works to a halt in March when Turnpike, which is a member of the Prolintas group of companies, terminated their contract with Panzana.

Source link