FIM 2013 targets RM370m sales

In line with this, Domestic Trade, Cooperative and Consumerism Minister Datuk Seri Ismail Sabri Yaakob said the organising committee has drafted value-added promotional activities that involve various primary media including international and local promotions.

Speaking to reporters after officiating at the soft launch of the FIM 2013 here yesterday, he said for this year, the franchise sector is expected to contribute RM26 billion to the country’s gross national income.

Also present at the launch were Malaysian Franchise Association (MFA) chairman Abdul Malik Abdullah and Perbadanan Nasional Bhd managing director Syed Kamarulzaman Syed Zainol Khodki Shahabudin.

FIM 2013 will be held from September 20 to September 22 at the Putra World Trade Centre.

Ismail Sabri said the government has also planned various franchise development programmes this year, such as 1Malaysia Franchise Roadshow, Franchise Community and 1Malaysia Franchise Station, to help promote the industry to the public.

Meanwhile, Abdul Malik said FIM 2013 will feature additional events such as franchisee exhibitors.

He said FIM 2013 offers opportunity for franchisees to showcase their products, so that visitors can see the link between franchisors and franchisees in the franchise business.

In conjunction with the FIM2013, Malaysia will play host to the World Franchise Council and Asia Pacific Franchise Confederation Annual Meeting.

MFA expects more than 11,000 people, both local and foreign, to visit the exhibition, while a conference that will be held concurrently with the exhibition, will see a gathering of local and international franchise industry players.

Some 130 local and international exhibitors will take part in the three-day event.

 

Source by: Business Times

 

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Canadian property investment company hopes to capitalise on oil sands boom

Many energy prospectors have been pinning their hopes on Canada’s large oil sands reserves, and one of the latest to join the party is Petronas which recently invested C$5.2bil (about RM16bil) to take over of Canadian firm Progress Energy Resources last December.

Hoping to capitalise on greater economic activity is Malaysian-Canadian company Vision International Properties, a firm which markets Canadian property to Malaysians.

Established in 2005 and having opened a Malaysia office in 2011, Vision International mostly buys Canadian property en-bloc which it then re-sells to buyers in Canada and Asia, including Malaysians, Singaporeans and Chinese. It also manages these properties on the investors’ behalf through a rental pool programme.

“As a result of our marketing efforts in Malaysia, we have been averaging sales of around eight units per month, which is quite encouraging given the challenging economic situation,” says the company’s managing director Virata Gamany. “We are also getting good response in Canada and other parts of Asia. In terms of net rental returns for investors, after deducting service fees, we are looking at about 6.5% annually.”

Representatives from several other Canadian companies such as Bombardier, Manulife and Scotiabank were present.

“I believe we are at the tipping point for Canada as it prepares to enter the new era where United States is no longer the primary market for the country’s exports, while China and Asia are rising to become the world’s top consumer of energy and food resources… Did you know that Canada’s oil reserves are 8 times more than Saudi Arabia’s?” he asked.

The latest offering by Vision International was Chestermere Manor, comprising nine blocks of townhouses in Alberta. What kind of prices? The selling price was between C$220,000 (RM680,000) and C$250,000 (RM770,000) for built-up areas of approximately 850 sq ft, says Virata. That comes up to between RM800 to RM900 per sq ft.

Next up, the company is working together with the local Canadian community to establish a centre called Canada Place in the heart of Kuala Lumpur to promote Canadian education, tourism and property to Malaysians. Located at Wisma Selangor Dredging along Jalan Ampang. Visa applications including consultation on immigration to Canada will also be available at the centre. At the moment, those applying for Canadian visas have to travel to the Canadian High Commission office in Singapore to submit their applications. Vision is targetting Canada Day on July 1 to launch the centre.

 

Source by: The Star

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New twist to Country Heights Grower Scheme saga

KUALA LUMPUR: The ongoing saga of the proposed voluntary termination of Country Heights Grower Scheme (CHGS) – the country’s first oil palm farm-sharing investment scheme – has taken a new turn with a Minority Shareholder Watchdog Group (MSWG)-led group making a counter proposal to its founder Tan Sri Lee Kim Yew for the scheme’s termination.

The first issue the group addressed was the postponement of the general meeting to a later date, from Friday, so as to have more time for pressing issues to be ironed out.

“Investors are quite concerned about the issue of this scheme, and they feel quite short-changed with the early termination. Nevertheless, they are willing to negotiate certain terms,” MSWG chief executive officer Rita Benoy Bushon said.

Some 60-plus of about 10,000 investors in the scheme gathered at the MSWG office in Kuala Lumpur yesterday to discuss Kim Yew’s proposal to terminate the scheme.

In a phone interview, Kim Yew said: “The MSWG might have actually undermined those who might want to vote for the proposed voluntary termination to pass.”

He said that Plentiful Gold-Class Bhd – the management company of CHGS – had proposed to hold the general meeting on Friday as meeting at a later date could result in the scheme’s default.

He added that as per the trust deed of the scheme, if the management company did not fulfil the payout on Feb 14, the scheme would automatically go into default and would then be handled by the trustee – CIMB Commerce Trustee Bhd.

Kim Yew said the management company was receptive to any proposal the group of investors made. “No matter what it is, there will be some objection. We want the ‘minority’ group to understand this,” he said.

He urged CHGS investors to attend the meeting and voice their concerns there.

Bushon, meanwhile, said the Companies Commission of Malaysia (CCM) had been alerted on the issue. “If no action is taken, the growers will get a court injunction to postpone the meeting,” she said.

She also said the investor group would agree to the termination if CHGS paid the 12% dividend, due on Feb 14. Additionally, 10% of their capital is to be paid within a month, while the remaining 90% is returned within six months.

As had been reported earlier, Kim Yew said the management company was unable to deliver the payout; hence it was proposing to terminate the scheme. If the proposal is approved, then the company would return 10% of the capital within a month, and the remaining 90% within two years.

However, he said the remainder could be paid out in six months or earlier, should everything proceed smoothly.

The management company had already paid out dividends totalling 48% yield in the past five years.

Kim Yew said investors would receive about RM294mil compared with the RM215.5mil amount raised when the scheme was first launched in 2007.

The plantation land will be up for sale via an open tender at a reserve price of RM170mil if the proposed termination is approved. Any difference between the sale price and the total buyback amount will be borne by the parent company Bee Garden Holdings Sdn Bhd.

Earlier yesterday, Plentiful Gold-Class sent a letter to MSWG addressing the queries raised.

Plentiful Gold-Class director and chief executive officer Lee Kim Heong said it was a public company with a paid-up capital of only RM5mil.

“The management company proposed to the grower to consider the proposed voluntary termination based on the issues stated in the circular and those highlighted in our chairman’s statement, given the current plantation output that is unable to generate the expected yield income to meet the yield payment,” he said.

Bushon said if the management company did not accept the investors’ counter proposal, they would opt to go against the scheme and let the process take its course.

“CCM must ensure that these schemes are properly managed and properly governed. Even termination should be properly done so that the market has confidence in such other schemes. It should be well conceived and not structured badly. As an oversight body, you must make sure it is a well-conceived scheme,” Bushon said.

It is understood that Plentiful Gold-Class communicated with Bushon later in the day that MSWG should address the issues through an official letter to the company.

Plentiful Gold-Class would need more than 75% of investors to agree for the proposal to go through.

 

Source by: The Star

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More M’sians turning to silver, rather than gold, for investment

KUALA LUMPUR: More and more Malaysians are buying silver as a cheaper alternative to the more expensive gold for investment purposes these days, a trend that began at the end of 2010 when the silver price started rallying to a 30-year high.

Two people with wide knowledge of the silver market here say that the white metal will continue to attract investor attention locally as the silver price, now hovering around the US$30 (about RM91) per ounce level, has been forecast to rise next year.

With the gold price at around US$1,650 (about RM5,030) an ounce, they say silver often referred to as the poor man’s gold is not only a cheaper alternative to gold but also one whose price has greater potential to go even higher in the future.

They agree with international analysts that investors, worried about central bank and government spending policies worldwide, will continue to turn to these precious metals as a safe haven for investment purposes.

They add that silver’s many industrial uses is another reason why its price will trend higher in the future.

Daniel Foo, who shares silver investment information on his websitehttp://silverinmalaysia.com, said jewellery shops in Malaysia were now selling investment-grade silver bars, while more and more small-time traders were importing silver coins and bars from overseas and selling them online.

“The best evidence of the growing interest in silver investment in Malaysia is Maybank starting its Silver Investment Account. More banks are expected to follow suit,” said Foo, who has an e-book titled Practical Guide for Investing in Silver in Malaysia.

He said that about three to five years ago, no one talked about silver in Malaysia.

“Now, many websites, forums and Facebook group pages are selling and discussing silver investment. The potential for physical silver investment in Malaysia is enormous,” he noted.

Foo said while the gold price had increased by about 500%, the silver price had jumped about 650% over the past 10 years.

“Since 2008 to date, (November 2008 until November 2012), among all the investment options, silver has been the best performer, providing 200% in investment return while gold came second just slightly above 100%,” he said.

He said silver was being used, among others, in the electronics industry, solar panels, medical devices and in water purification.

“China, although the third-largest silver producer in the world, does not have enough and is importing the metal from other countries. It is encouraging its citizens to buy silver, while Indian corporations even buy silver as gifts for employees,” he said.

Jonathan Quek, a gold and silver strategist, said sales of silver coins and bars at silvermalaysia.com a site which deals in physical silver besides providing education in silver investment started picking up strongly from October 2010 onwards when the price started its rally from around US$24 to a 30-year high of over US$48 in late April 2011, before plunging nearly 35% in a fortnight due to tighter margin calls.

“From January to May 2011, many people started buying silver. When the price started plunging due to tighter margin calls, some of our investors panicked and sold silver because they thought it was a bubble while some investors started to accumulate,” he said, adding that the silver price was trading at a low of US$26 in 2011.

Quek, who is the founder and chief executive officer of silvermalaysia.com, said silvermalaysia had sold an average of 2,500 ounces of silver monthly this year.

He said his clients included young investors, including students, who bought small amounts of silver coins for investment.

“We expect more investors to buy silver next year because the price is expected to move even higher,” he said in an interview at his office in Mont Kiara.

Quek, who has written a book titled Why Gold? Why Silver? Why Now?,said he was encouraging people to buy the white metal more as insurance than investment.

He strongly believes, like many others globally, in a “financial armageddon” or a global financial collapse some time between 2015 and 2019 when he says money will become worthless.

He said this was when precious metals like gold and silver, which would shoot to US$5,000 and US$500 respectively, would be used, among others, to buy “food” and “property”.

 

Source by: The Star

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Silver sales set to outshine gold in India

Indian retailers are bullish on silver. With supplies tightening, deliveries are slowing down this week in the bullion market in Mumbai. What has also buoyed sentiment is that silver continues to lead precious metals, and sales have jumped over 24% this year.

Snapping a two day losing trend, both the major precious metals, gold and silver, bounced back in the Mumbai market on buying by retailers at existing low levels. While gold rebounded to $575 (Rs 31,205) per 10 grams (US$1788/oz), silver gained by 1.38% to $1,159.49 (Rs 62,930) per kilo ($36.06/oz).

“Strong support is expected in the Silver March contract around $1,159 (Rs 62,900) ($36.05) from the start of the week,” said analysts tracking the white metal. Traders have been taking long position in the Silver March contract above $1,161.49 (Rs63,050) ($36.13) for target near $1,178.88 (Rs 64,000) ($36.67) for this week, they added.

Silver prices have remained steady at around $32 since mid-May. “Though everybody has been gushing about the returns that gold has given over the past four years, it is the white metal that has streaked ahead,” said Manjusha Madani, bullion analyst at an investment house.

She added that silver prices have jumped from $304.39 (Rs 16,525) per kilo ($9.47/oz) in 2008 to $1,381.95 (Rs 75,020) per kilo ($42.98) in 2011, a gain of 354%. Though prices have dropped per kilo, it does not mean that the potential in silver is exhausted, she added.

An analyst report had also shown how silver had risen about 53% from December 2008 through March 2010, twice as much as gold. Silver is expected to keep beating gold.

“More and more people are realising the value of investing in silver coins and bullion bars in India,” added Jayeshbhai Shah, a bullion retailer at Mumbai’s Zaveri Bazaar. “The value of silver has increased rather steadily for the last few years. People who have never invested before are now investing in silver, because they know that buying silver is a great way to ensure that their money is there when they need it,” he added.

SILVER JEWELLERY

“The white metal is now turning out to be the preferred choice for everyday wear, with exquisite silver jewellery on offer, because gold is too expensive. Besides being trendy and contemporary, the metal readily blends with a variety of clothing and other accessories, thereby offering a suite of options to the wearer,” said an official atDhanabhai Export House.

He added that more and more consumers were looking for traditional or contemporary silver jewellery and were even looking at the white metal for classic business gifts, to be given during the festive season.

“There are customers who comes to us asking us for heritage art, or even our templejewellery selection, which is only made in silver. We take great pride in preserving our heritage craft and have several jewellery items that are exact replicas of antique temple jewellery,” he added.

During 2011-12, silver jewellery exports grew to 44% as compared with goldjewellery exports of 30%. India is the biggest consumer of white metal jewellery, and has also found a new class of buyers in the West.

Ketan Shroff, managing director of Pushpak Bullions said investors and jewellery-lovers prefer silver jewellery these days, as gold prices are going up constantly. Silver prices are expected to rise further, if one takes into account the demand potential.

 

 

Source by: 24hgold

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The health benefits of red palm oil

RED palm oil, though having been in existence for several centuries, is now seen as the preferred solution for various health conditions, particularly those relating to vitamin A deficiency.

Malaysian Palm Oil Board (MPOB) director general Datuk Dr Choo Yuen May told Business Times that red palm oil contains the highest source of natural carotenes as well as tocopherols and tocotrienols.

“Carotenes in red palm oil, converted into vitamin A in the body, are a powerful source of antioxidants. These nutrients are used to treat health problems related to vitamin A deficiency, such as night blindness among children.”

“The vitamin A in red palm oil is 15 times more than carrot and 300 times more than tomato in terms of retinol equivalent,” she said in an interview recently.

She also said tocopherols and tocotrienols, which are naturally occuring vitamin E in tropical oils, help scavenge damaging free radicals. This means palm oil vitamin E helps slow down ageing and possibly prevent atherosclerosis and cancer.

According to the United Nations, vitamin A is an essential nutrient needed in small amounts for the normal functioning of the visual system, and maintenance of cell function for growth, red blood cell production, immunity and reproduction.

It also said that vitamin A deficiency is a major nutritional concern in poor societies, especially in lower income countries such as Africa and India.

Choo said night blindness, an eye condition that results in poor vision in low lighting conditions especially at night, affects as many as eight to 10 million malnourished children worldwide. If left untreated, vitamin A deficiency may lead to permanent blindness and death.

“Carotenes in red palm oil are a very good source of pro vitamin A to help treat the disease,” she said.

According to Mayo Foundation for Medical Education and Research, the recommended dietary allowances of vitamin A vary among children with different ages.

On average, children aged one to three years old would need 300 micrograms of vitamin A daily, while those from four to eight years old would need 400 micrograms daily. Those aged nine to 13 years old would generally need 600 micrograms of vitamin A daily.

Apart from local clinical trials, MPOB has also carried out the same research with reputable universities in the US, South Africa, Vietnam, India, China and Australia.

The studies consistently show that red palm oil is able to treat vitamin A deficiency in children who suffer from night blindness.

As an example, Dr A.J. Spinnler Benadé in one of papers titled “A place for palm fruit oil to eliminate vitamin A deficiency” stated that sweet snack or biscuits containing red palm oil given to school children suffering night blindness saw improvement in their vitamin A deficiency problem.

“If 35-50 per cent of the recommended daily intake for vitamin A were to be provided by red palm fruit oil, it is sufficient to prevent vitamin A deficiency,” he said in the research paper.

Dr Benadé fed the malnourished children biscuits baked with Carotino red palm baking fats. The affordable and tasty snack proved to be an ideal carrier for beta-carotenes and other micronutrients.

“The plus point is that children love snacks, so feeding compliance is not an issue. It contains no trans-fatty acids and its rich content of carotenes and vitamin E help to extend the shelf life of the biscuits,” Choo said.

Subsequent studies expanding on Dr Benadé’s research showed “Carotino biscuits” made an important contribution to the intake of beta-carotenes and specific micronutrients in vulnerable groups such as pregnant women, nursing mothers and adults working long hours under strenuous conditions.

“Through MPOB’s technology, red palm oil extracted from the palm fruit is rich in phytonutrients, retaining as much as 80 per cent of carotenes and also contains vitamin E (tocopherols and tocotrienols), phytosterols, squalene and co-enzyme Q10,” she said.

Nowadays, carotenes extracted from red palm oil are fast replacing synthetic vitamin A in multi-vitamin formulations. This is because scientists and doctors warn the dangers of synthetic vitamin A overdose in these supplements.

“Apart from being incorporated in multi-vitamin pills, carotenes are increasingly seen as a popular choice in the food colorant market. As adverse effects of artificial colorants become clear, the demand for natural red palm carotene becomes even apparent,” she said.

 

Source by: Business Times

Picture by: palmoilhealth.org

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Gold can still shine and analysts believe its price still has room to climb

PETALING JAYA: Industry executives say the stimulus measures brought on by the US Federal Reserve and European Central Bank (ECB) have yet to be fully priced into gold, despite the profit-taking that immediately followed the commodity’s rally on Friday when it rose to its highest in seven months.

“Gold is not overbought at all. We think it still has room to appreciate,” said Oversea-Chinese Banking Corp Ltd analyst Barnabas Gan, who has an end-2012 target of US$1,800 to US$1,850 for bullion.

“The US dollar was prior to this our safe haven pick but with the rollout of QE3 (quantitative easing) last week we have shifted our focus to gold as the preferred store of value,” he told StarBiz.

Bullion peaked at US$1,777.51 on Friday, a day after the Federal Reserve announced its third round of quantitative easing.

Both the US central bank and the ECB had since early September introduced plans for open-ended pump priming activities to rouse their economies, with the former committing to buy some US$40bil worth of mortgage-backed securities each month until its labour market improved, and the ECB saying it would purchase, without quantitative limits, sovereign bonds on the open market.

Although gold investors locked in their gains over the past two days, spot gold yesterday briefly overtook its Friday high, climbing to US$1,779.39 per ounce. As at press time, it was up US$3 to US$1,774.25.

“Everytime there is a surge, it is followed by profit-taking. This is called a correction. But the trend we see is that prices are on an uptrend,” Poh Kong Holdings Bhd executive director Ermin Seow said at a briefing.

“Overall, the environment for gold is still quite bullish. Now that QE3 is out, many analysts believe gold can reach US$1,900, if not US$2000, by the end of the year,” Seow said, adding that Poh Kong’s own forecast was a more conservative US$1,800 for this year and US$2,000 next year.

OSK Research technical analyst Mohammad Ashraf Abu Bakar also believes the underlying price trend for gold points upwards, despite some selling. “The current resistance is pegged at US$1,800, the next level being US$1,900. The rally could continue for the next one month. “The selling pressure, if you look at it, has in fact not been able to keep prices down,” he said.

However, OCBC’s Gan noted that a caveat to this was more bad news from the eurozone, which would prompt a flight to safety to the dollar. Factors such as ultra-low interest rates in the developed countries and sustained money printing by central banks have resulted in negative real returns for savers, spurring investors to turn to gold as a hedge against inflation.

Meanwhile, Poh Kong’s Seow said he expected the combined sales of the country’s three listed gold retailers, namely Poh Kong, Tomei Consolidated Bhd and DeGem Bhd, to moderate this year to the mid-teens from last year’s 32% growth on the back of a high base.

An estimated 20 tonnes of gold were sold in Malaysia in 2011 worth some RM4bil, with the three players seizing RM1.5bil of the market.

Poh Kong had the largest share at 52% versus Tomei’s 33% and DeGem’s 15%, Seow explained.

On the outlook for Poh Kong’s sales, Seow said its turnover for the first three quarters this year alone have surpassed last year’s total sales.

“On an annualised basis, our full year revenue should be 20% to 25% higher than last year, Seow said, attributing this to its new outlets, growth in same store sales as well as higher gold prices.

Poh Kong is due to report its financial results for the fourth quarter ended July 31 next week.

The company may also set up shop in neighbouring countries when the Asean Economic Community comes into fruition in 2015, which would enable the duty-free flow of products within Asean, Seow added.

“At the moment we are almost 100% domestic and export very little of our gold. We are more retail-based and do not cater for export markets.

“We could tag along with our retail partners into Indonesia and Vietnam when they venture there.”

 

Source by: The Star

Picture by: numbersleuth

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Malaysia’s economy up 5.4% in Q2, manufacturing, demand support growth

KUALA LUMPUR: Malaysia’s economic growth, as measured by gross domestic product (GDP), for the second quarter ended June 30 rose by an unexpected 5.4% year-on-year, underpinned by an expansion in manufacturing and robust domestic demand.

GDP growth for the first quarter was revised to 4.9% from 4.7%, while growth for the first half of the year stood at 5.1% compared with the same period a year ago. Compared with the first quarter, GDP expanded by 3%.

In the supply side of the economy, only the agricultural sector saw a contraction due to lower crude palm oil production. Manufacturing, services, construction and mining all posted growth. Domestic demand jumped 13.8% for the quarter and rose 11.8% for the first-half.

The country’s second-quarter GDP numbers came as a surprise to many economists, whose median forecast was for a 4.6% expansion. Growth for the quarter even exceeded the most optimistic forecast of 5.2%.

Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz said at a briefing following the release of the GDP data that the surge in private investment was the most encouraging aspect of the economy.

“Private investment has made a strong return because the investment climate has improved tremendously, with Malaysia moving up the rankings of various surveys in terms of competitiveness, costs and ease of doing business,” she said.

Zeti said the improvement was underscored by the higher implementation of investments by domestic and foreign investors. She added that civil engineering projects in the oil and gas, transport, utilities and services industries had helped spur growth in the construction sector.

By numbers, investments from the public and private sectors jumped 26.1% year-on-year for the quarter under review, with the first half rising 21.3%.

By sector, private investments rose 24.6% while public investments surged 28.9%. For the first half, private sector investments grew 22.4% while public sector investments expanded 19.5%.

Consumption rose 8.9% for the quarter and 11.8% in the first half. By sector, private consumption increased 8.8% for the quarter and 8.1% for the first half while public consumption expanded 9.4% for the quarter and 8.4% in the first half.

Zeti said monetary policy continued to be supportive of growth and that for the rest of the year, risks weighed on growth rather than on inflation with external headwinds still overshadowing the outlook.

She said it would take time for the global economy to recover and this would need action from various stakeholders.

“At this point, we’re maintaining our forecast of 4% to 5% GDP growth for the year but this may change when the budget is announced (on Sept 28). This will come in at the upper range of the forecast if growth is robust,” Zeti added.

Alliance Investment Bank Bhd chief economist Manokaran Mottain has revised GDP growth for the year to 4.7% from 4.5% previously, with the second half to record growth of 4.5%.

He told StarBiz the third quarter would see expansion at its slowest.

Manokaran said despite the surprising growth figures, the global and domestic economy’s outlook for the rest of the year would still be dampened by the eurozone debt crisis, slower expansion in China and tepid growth in the United States.

“We believe the eurozone crisis will continue to have an impact on trade and this will show itself in slower exports growth,” he said.

He added that with a drop in manufacturing activity, sentiments would be affected, leading to slower growth in the domestic-oriented services sector as consumption slowed.

Manokaran said Purchasing Managers Index (PMI) for July indicated that exports would slow as demand dropped in developed markets.

CIMB Investment Bank Bhd economic research head Lee Heng Guie said in a report that the leading index for June suggested that the economy could weaken in the second half.

“We caution that a sharply high base in the second half of last year poses a hurdle to year-on-year growth,” he said.

He pointed out that the global Organisation for Economic Co-operation and Development composite leading together with regional high-frequency indicators, including trade and PMI, were still under external pressures.

Meanwhile, the Statistics Department released data showing that July prices as measured by the Consumer Price Index gained 1.4% year-on-year to 104.8 and remained unchanged compared with the previous month.

 

Source by: The Star

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Dijaya keen on RRIM land

PETALING JAYA: Dijaya Corp Bhd is interested to tender for parts of the Rubber Research Institute of Malaysia’s (RRIM) land in Sungai Buloh when the pre-qualification process for the development starts.

However, the company’s group chief executive officer Tan Sri Danny Tan Chee Sing and deputy managing director Dickson Tan declined to comment when StarBiz asked whether top officials of the Employees Provident Fund (EPF), which is the owner of the land, had met with them.

“Dijaya will definitely be interested to tender for certain parcels of land when the pre-qualification process for the RRIM land starts by year-end,” Dickson said.

StarBizWeek reported last week that the EPF and Dijaya were in talks to jointly develop certain parcels of the land in Sungai Buloh.

EPF’s subsidiary, Kwasa Land Sdn Bhd, had on Monday refuted the report, saying that no developers had been selected as partners for the RRIM development yet. Kwasa is the master developer.

Dickson said the company was the best partner for EPF to jointly develop the southern portion of the RRIM land as part of Dijaya’s land bordered the RRIM land.

“We note that our Tropicana Golf and Country Club is located at the southern part of the RRIM land and we stand to have strategic advantage in tendering for the land when the opportunity arises,” he said.

“The development of the RRIM may need an access road. We can relocate a few golf holes to make way for a flyover or access road to connect Petaling Jaya to the RRIM land,” Danny, also the company’s controlling shareholder, said.

The RRIM land, which begins from the Sungai Buloh My Rapid Transit Depot in the north and ends with its southern portion bordering the Tropicana Golf and Country Resort, belongs to Dijaya.

It is learnt that Kwasa would be calling for bids for the RRIM land in Sungai Buloh by year-end.

Kwasa is expected to divide out the RRIM land in portions of 20ha to 200ha each, which would be used to develop affordable residential and commercial properties.

Separately, Dickson said mergers and acquisitions (M&As) were the next phase of growth for Dijaya.

“We are in exploration talks with a few property companies to explore opportunities. We are exploring the M&A route to give Dijaya the quantum leap for growth. The amalgamation exercise will bring our market capitalisation to over RM1bil. My vision for Dijaya is to grow it to a market capitalisation of between RM2bil and RM3bil,” said Dickson.

Dijaya is now in the process of completing its amalgamation exercise, which will see the injection of some 73 properties into Dijaya for RM948.7mil. The EGM to get shareholder approval will be held today.

In March, Dijaya proposed an amalgamation exercise that would see Dijaya’s major shareholder, Danny, inject 73 of his privately-held assets worth some RM1.1bil into Dijaya, making it one of the largest property firms in the country by market capitalisation.

Presently, Danny controls 66.62% of Dijaya. He directly owns 30.5%, and indirectly owns 17.86% through Impeccable Ace Sdn Bhd and 18.26% through Golden Diversity Sdn Bhd.

“I do have plans to institutionalise my stock, but that is when we get bigger, when our market capitalisation gets closer to the RM2bil to RM3bil level. I do not mind paring down my shareholding even to the 30% level if I get to maximise value for my shareholders,” said Danny,

Upon completion of the amalgamation, Dijaya’s land bank will increase to 369.5 ha and gross development value to RM38bil from RM30bil. It will also increase its investment properties’ lettable area from 550,000 sq ft to 1.4 million sq ft. The investment properties are tenanted out, offering average yield of 8%. The undeveloped land parcels are in the Klang Valley, Penang, Negri Sembilan, Johor and Sabah.

With the amalgamation exercise, Dijaya’s market capitalisation will increase to above RM1bil from approximately RM500mil, making it tentatively one of the top 10 developers in Malaysia.

 

Source by: The Star

 

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McDonald’s eyes more franchises

MCDONALD’S Malaysia, the second largest food franchisor in the country, is banking on its franchisees to more than double its business over the next eight years.

Currently, there are 230 McDonald’s restaurants in the country. The plan is to grow its restaurant base to 400 by 2016 and 500 by 2020.

“The overall growth plan is driven by opportunity, and the customers are driving the opportunity in Malaysia.

“The customers are demanding for McDonald’s outlets. So, when we look at the growth of the business, there’s room for 500 restaurants and I am sure we can reach that number by 2020,” said McDonald’s Malaysia managing director Sarah Casanova recently.

Of its 230 restaurants currently, only 17 per cent, or 39 restaurants, are owned and operated by independent franchisees.

Casanova said the ratio would significantly change over the next few years.

“From now, franchisees are going to grow with us. We will have 30 per cent franchise, or about 100 restaurants, by end of 2014. By end of 2016, 50 per cent of our restaurants, or 200 restaurants, will be franchise restaurants,” she said.

The company is on the lookout for franchisee candidates.

While meeting the financial criteria is required, Casanova stressed that it was equally important for the candidate to be passionate about running and operating a restaurant.

“We do on-the-job evaluation because some people have no idea how to run a restaurant. So, we put them on a five-day on-the-job evaluation.

“You go through an interview process and if you are accepted, you go through a year-long training programme where we teach you how to run a McDonald’s restaurant. So, it is a big commitment,” she said.

Casanova said McDonald’s support for the franchisees was continuous.

“It’s being in business for yourself, but not by yourself. We help them with the marketing and to identify the locations for restaurants.

“If a franchisee is looking for support regarding the supply chain, we help them with the deliveries,” he said.

Tan Heng Ree, a McDonald’s franchisee, said one of the benefits of being a franchisee was the support from McDonald’s Malaysia – from marketing to identifying suitable sites.

“Like most franchisees, I am able to break even in five years,” said Tan, who now operates three McDonald’s restaurants.

 

Source by: Business Times

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