Prasarana: No cost overruns

By Sharen Kaur
Published in NST on July 30, 2013

THE chief of Syarikat Prasarana Negara Bhd says the construction cost for both the Ampang and Kelana Jaya light rail transit (LRT) line extensions will stay within the RM8 billion budget.

Group managing director Datuk Shahril Mokhtar told Business Times that the cost will not exceed RM8 billion although the project will be delayed by more than a year.

Prasarana has always said it is spending some RM7 billion on the extension of both the Kelana Jaya and Ampang LRT rail networks.

"We have always budgeted RM8 billion as the total cost for the LRT line extensions. Tenders were carried out on a competitive basis and that added to cost savings," Shahril said.

He said the line extension was originally scheduled to be completed in 2014 but faced a setback due to issues relating to land acquisition in Puchong and other matters, which have been ongoing for more than 12 months.

The disputed land is located within the approved alignment at Lebuhraya Damansara-Puchong (LDP) next to SRJK (T) Castlefield and squatter houses there.

"The school board is refusing to allow us to pass through the edge of the school field and we have been negotiating for more than 12 months now. No solution has been reached," Shahril said.

The other issues include the relocation of squatter houses at Station 9 in Puchong and concerns raised by residents in Subang and Shah Alam.

However, he said both the matters have been resolved.

Shahril said the relocation works for utitilies such as Telekom Malaysia, Tenaga Nasional and Syabas, and the late award of contracts to some companies, have also contributed to the project delay.

"The relocation works were supposed to have been completed 12 months ago. It is now close to 90 per cent completed. There was also a delay by more than 12 months with regards to the award of contracts by the Finance Ministry.

"As of now, we have awarded more than 95 per cent of the contracts for both the lines. All parties involved will have to play catch-up game," he said.

The Kelana Jaya line will pass through 13 new stations, including Subang Jaya and USJ, before ending at Putra Heights, covering a distance of 17km.

The Ampang line extension will stretch to Putra Heights with a 17.7km of elevated track and passing through high-density residential areas such as Sri Petaling, Bandar Kinrara and Puchong, with 11 new stations.

LRT extension project ‘ready only in 2016’

By Sharen Kaur
sharen@mediaprima.com.my
Published in NST on Julu 30, 2013

KUALA LUMPUR: The Ampang and Kelana Jaya light rail transit (LRT) line extension project has hit a snag and will only be completed earliest by the middle of 2016.

This means that the project, which was originally scheduled to be completed by end-2014, will be delayed by some 18 months.

It raises the alarm that the construction cost for both the Ampang and Kelana Jaya LRT line extensions would surpass RM8 billion, more than the original budget of RM7 billion.

Business Times understands that the delay is caused by the late award of contracts to some companies, including George Kent (M) Bhd, by the Minister of Finance Inc.

George Kent won a RM960 million contract for engineering, procurement, construction, testing and commissioning of system works for the Ampang LRT line. There was a 12-month delay in the awarding of the contract because of concerns raised by several parties on the company’s capability and resources.

It was reported that George Kent was unsuitable for the job as it did not fulfil the project's financial and technical requirements, which involved new rail works and an upgrade of the communications and signalling system for the entire rail network.

George Kent, which two months ago had its water concession in Papua New Guinea terminated, now has to play catch-up, said industry sources.

"The LRT line extension project will only be operational by late 2016 because of the delay in the awarding of contracts and some works carried out by certain contractors," a source said.

It is understood that French-based Thales Group as well as CMC Engineering and its partner, the United Kingdom's Colas, are slow in their works.

This raises concerns as yesterday, Thales inked a memorandum of understanding worth RM380 million with Malaysian Industry-Government Group for High Technology under the Defence Offset Programme for Keretapi Tanah Melayu Bhd for the provision of railway signalling simulator and equipment.

Thales won contracts from Syarikat Prasarana Negara Bhd, the project and asset owner of the LRT, to supply its signalling system, which is worth RM800 million, for the Kelana Jaya and Ampang LRT line extensions.

Thales claims that the civil work contractors involved in the project are delaying its package.

"The French group has no access to the site," a source said.

CMC and Colas, meanwhile, have only completed 25 per cent of their works because of delays in the system design engineering and access to the work site.

The two won a RM673.9 million contract in June 2011 to build an electro-mechanical system for the Kelana Jaya LRT line extension.

KTMB to seal RM380 deal with French group

By Sharen Kaur
sharen@mediaprima.com.my

KUALA LUMPUR: Thales Group is expected to ink a RM380 million deal with national railway company Keretapi Tanah Melayu Bhd (KTMB) to supply railway signalling simulator and equipment.

Sources said under the deal, the French group will also provide facilities and training syllabus to KTMB’s Malaysian Railway Academy (MyRA) via its education arm Thales University.

A memorandum of understanding (MOU)between the two parties is expected to be signed today, witnessed by Prime Minister Datuk Seri Najib Razak and French Prime Minister Jean-Marc Ayrault, who is scheduled for a two-day official visit here to discuss bilateral relations.

The MoU, arranged by the Malaysian Industry-Government Group for High Technology (MIGHT), is in line with the offset programmes under the Ministry of Defence.

Malaysia’s offset objectives are twofold, including to develop its high technology sectors.

Business Times understands that Thales is banking on the offset programmes to promote its railway transportation business in Malaysia.

Thales designs and builds electrical systems and provides services for the aerospace, defence, transportation and security markets.

The group is supplying its signalling system to both the Kelana Jaya and Ampang Light Rail Transit (LRT) line extension projects.

Its subsidiary, Thales Malaysia, was also awarded a contract of ?13.5 million (RM58 million) in 2011 to upgrade Kuala Lumpur’s monorail signalling system, which is still ongoing.

Meanwhile, MyRA, formerly a depot in Batu Gajah, Perak, is set to be the rail industry’s centre of excellence for Asean.

The centre was set up in 2010 to accommodate the relocation of rolling stock maintenance, equipment storage and training activities which were previously in Sentul.

It provides rail-related training such as operations, rolling stock maintenance, permanent way management and maintenance, and signalling system for KTMB employees and any other interested parties in the field of technical and non-technical areas.

Tenders for RM25b MRT project early next year?

By Sharen Kaur
sharen@mediaprima.com.my

LINE 2: Project slated to be a circle line and may ply between Sungai Buloh and Putrajaya, says a source

MASS Rapid Transit Corp Sdn Bhd (MRT Corp) expects to call for tenders for Line 2 of the Klang Valley My Rapid Transit (KVMRT) project, estimated to be worth over RM25 billion, by as early as next year, sources said.

The second line is slated to be a circle line and may ply between Sungai Buloh and Putrajaya, a distance shorter than the 51km-long Line 1 from Sungai Buloh to Kajang.

“Although Line 2 is shorter than Line 1, it may cost more because of land acquisition. The Land Public Transport Commission (Spad) is carrying out a study on Line 2 and Line 3 to finalise the alignment.

“It has not been decided whether Line 2 and Line 3 will be implemented simultaneously or one after the other,” a source with first hand knowledge on the matter told Business Times.

Line 1 is mostly elevated except for an underground portion of 9.5km running through the city centre from Semantan at Jalan Duta to Maluri in Cheras.

MRT Corp chief executive officer Datuk Azhar Abdul Hamid said no date for procurement initiatives has been fixed for Line 2 and Line 3.

“The government has approved Line 2 and Line 3 and Spad is in the process of seeking approval,” he said.

Meanwhile, sources said companies prequalified for Line 1 can bid for Line 2 and Line 3.

“As long as they have been prequalified they can bid for Line 2 and Line 3. New companies can also submit their tenders but they must meet the government’s criteria,” one of them said.

Winners for Line 1 were Sunway Bhd, Gadang Holdings Bhd, Mudajaya Corp Bhd, IJM Corp Bhd, Ahmad Zaki Resources Bhd, Naim Engineering Sdn Bhd, UEM Construction Sdn Bhd and Apex Communication Sdn Bhd.

The project delivery partner for Line 1 is MMC-Gamuda Joint Venture Sdn Bhd. The JV had won the RM8.2 billion tunnelling job.

Japan’s Meidensha Corp, Germany’s engineering group Siemens AG and Canada’s Bombardier Inc are the foreign firms involved in Line 1.

As at end of June, MRT Corp had awarded work packages worth RM21 billion for Line 1.

“There is a balance of RM2 billion worth of work packages which will be awarded by yearend,” the source said.

The final Line 1’s value will be out by yearend, when all the 85 contracts are awarded.

Line 1 is expected to be completed in July 2017 whereby the overall construction is estimated to have reached about 18 per cent.

KL-S'pore high-speed rail link to get SPAD boost

By Sharen Kaur
sharen@mediaprima.com.my
Published in NST on July 15, 2013

THE Land Public Transport Commission (SPAD) will speed up the process of kick-starting the multi-billion ringgit high-speed rail (HSR) link between Kuala Lumpur and Singapore and ensure it is operational by 2020.

Its chief executive officer Mohd Nur Ismal Mohamed Kamal said the feasibility study is in its final stage of preparation. SPAD has been carrying out a study on the HSR project since early last year. The study includes a detailed assessment on the technical and engineering aspects, cost, financial and operations, and benefits of the project.

The project was agreed in principle between Malaysia and Singapore in February this year.

Business Times has reported, quoting reliable government sources, that the rail link is expected to cost around RM40 billion. This includes RM10 billion to buy high-speed bullet trains.

For Malaysia, the HSR project is important to support growth in Iskandar Malaysia in Johor. Investor interest in Iskandar Malaysia is at an all-time high with the completion of key catalytic projects last year and the signing of a new agreement between Malaysia and Singapore this year. Singapore is one of the largest investors and leading contributors to Iskandar Malaysia.

The HSR project will also complement another rail project - the Rapid Transit System Link - that will link Johor Baru to Singapore's Thomson Line, which is set to be ready by 2019.

Singapore, however, has yet to give its full feedback on the HSR link to the government.

Business Times reported last week that Malaysia may call for an international open tender for the HSR link by the end of this year, indicating that the 400km project is viable.

There will be mandatory requirements in the tender procurement that companies must meet before they can make a bid. These include having a few years of expertise in running high-speed trains and operating railway
lines, the transfer of technology, the type of systems used and costs. However, Mohd Nur Ismal said that the tender call will commence once the relevant agreements with Singapore are in place.

"We are working very hard to ensure that the Kuala Lumpur-Singapore railway link is operational by 2020. The government will identify the best mechanism for project tender and according to existing procedures and guidelines," he said.

SYF likely to see profit on back of property venture

By Sharen Kaur
Published in NST on July 23, 2013

RUBBER wood furniture maker SYF Resources Bhd is expected to sustain profitability this year, supported by additional income from its property development activities, say analysts.

SYF posted a net profit of RM50.7 million for the financial year ended July 31 last year, after five consecutive years of losses.

The amount included a RM37.8 million debt waiver and interest write-back upon completion of the company's restructuring scheme, according to its 2012 annual report.

Its profitability during the current financial year is expected to come from both upstream and downstream segments as well as the newly started property development division.

SYF ventured into property development recently with the launch of Semenyih Hi-Tech 5 in Semenyih, Selangor, on a joint-venture basis.

The project comprises 54 units of semi-detached factories and two detached factories. SYF has sold more than 90 per cent of the properties for over RM80 million.

For the nine months ended April 30 this year, SYF registered a net profit of RM11.21 million.

SYF is one of the largest rubber wood furniture manufacturers in Malaysia. Its products are exported to more than 50 countries.

SEG International Bhd founder Tan Sri Clement Hii Chii Kok is a substantial shareholder of SYF with a 20 per cent stake, or 54.48 million shares.

Ng Ah Chai, who is SYF executive chairman and chief executive officer, has a 24.27 per cent direct stake, or 66.1 milion shares.

Going forward, SYF is expected to launch new property projects in the Klang Valley.

SYF is acquiring 3ha of land in Sungai Long in Cheras for RM16 million to build residential properties.

In a filing to Bursa Malaysia, SYF said it expects to launch the project once all approvals and conversions are completed.

Analysts are upbeat on the proposed residential project and expect it to set a new benchmark in pricing for the area.

"Sungai Long is a good growth story with many established property projects and townships nearby. Property sales would depend on what SYF has to offer and how it prices the properties," they said.

"We believe that if the designs are attractive and there are good facilities and connectivity, they would sell like hot cakes," the analysts added.

The proposed project by SYF is located near the Sungai Long Golf & Country Club and Wira Heights.

Wira Heights comprises semi-detached houses and bungalows. The sub-sale price for the properties, built two years ago, is between RM360 and RM425 per sq ft.

PKNS drops injunction against MRCB

By Sharen Kaur
Published in NST on July 23, 2013

LEGAL OBSTACLE REMOVED: Path cleared for MRCB to take over mega PJ project

Malaysian Resources Corp Bhd (MRCB) has cleared a big legal obstacle in its plans to take over a multi-billion ringgit project in Petaling Jaya, Selangor.

Yesterday, an injunction filed against MRCB was dropped by PKNS Holdings Sdn Bhd which however, proceeded with its injunction against Nusa Gapurna Development Sdn Bhd (NGD).

PKNS previously filed a suit in mid-June to block the sale of PJ Sentral Development Sdn Bhd (PJSD) by first defendant NGD to MRCB, the second defendant.

This was on the grounds that NGD had breached a shareholders’ agreement between the two companies with PJSD and that MRCB had “intentionally or recklessly procured a breach of the shareholders’ agreement”.

MRCB and NGD’s parent, Gapurna Sdn Bhd, had earlier sealed a deal for the former to buy certain Gapurna assets, including the PJ Sentral project. In return, Gapurna will own a controlling stake in MRCB.

PJ Sentral is PJSD’s project, which is 70 per cent owned by NGD.

The latter, in turn, is 60 per cent owned by Gapurna and 40 per cent by the Employees Provident Fund (EPF). PKNS holds the remaining 30 per cent PJSD stake.

MRCB yesterday said PKNS informed the High Court that the injunction application was withdrawn with no order to costs.

However, PKNS — a unit of the Selangor State Development Corp — maintained the injunction application against NGD.

“The High Court had fixed the matter for decision on August 1,” MRCB said in a brief filing to Bursa Malaysia.

A positive judgment for Gapurna next Thursday will augur well for MRCB.

The group will have a new mega project in hand to help boost its earnings, besides contribution from the Kuala Lumpur Sentral transport hub in Brickfields.

The deal with Gapurna sees MRCB buying NGD for RM111 million in cash and 398.7 million new shares at RM1.55 each. This was sweetened with 113.9 million free warrants on the basis of two warrants for every seven MRCB shares to be issued.

Besides the land encompassing PJ Sentral, the deal also involves two other parcels of land in Subang Jaya and Jalan Klang Lama and NGD’s construction and security services arms.

PKNS and NGD had offered to buy out each other’s share in PJSD but both rejected the offer.

NGD reportedly offered PKNS around RM86 million for its 30 per cent stake, while PKNS offered NGD RM220 million for its 70 per cent share.

Business Times had in late June quoted a PKNS source as saying that the company was finally willing to sell its 30 per cent stake in PJSD to NGD and settle the dispute out of court.

An NGD official also said it was willing to settle the issue out of court but PKNS was asking for more than RM100 million for its 30 per cent stake.

Two weeks ago, both the PJSD shareholders were reported to be back in a court tussle.

MAS staff key to turnaround plan

By Sharen Kaur
sharen@mediaprima.com.my
Published in NST on July 15, 2013

BIG POTENTIAL: But analysts are divided if it is overstaffed or operating less efficiently than

rivals
MALAYSIA Airlines (MAS)'s workforce is key to the national carrier's turnaround plan, but analysts are divided on whether it is overstaffed or operating less efficiently than its rivals.

A quick check on its financials shows that MAS has 19,406 employees on its wage book, while Singapore Airlines (SIA) has 23,189.

As at end-2012, the actual sales per employee for MAS was US$221,761 (RM707,417), while SIA's actual sales per employee stood at US$524,053 as at end-March 2013.

"The turnaround plan must address this," said MIDF research head Zulkifli Hamzah yesterday.


He added that by increasing capacity, staff productivity will improve. The question now is whether higher capacity will attract a commensurate demand.

"If additional seats can be filled, the airline is a good bet for a turnaround story," Zulkifli said.

His comments came in the wake of a plan disclosed by Firefly Sdn Bhd chief executive officer Ignatius Ong, who had reportedly said a listing is on the cards for the company.

"One of the requirements for listing is to strengthen the company's position," said Ignatius, adding that Firefly is now on an expansion mode.

Mercury Securities head of research Edmund Tham said if value could be squeezed from a listing exercise, MAS shares would rally.

MAS has been trading below the 50-sen barrier and is one of the most actively traded stocks on a daily momentum.

"Capture the imagination of the investing public, MAS, which is a high-beta stock, has the potential to dominate the market, especially since Khazanah Nasional Bhd is a shareholder," said a dealer with RHB Securities.

"Potential" is a key word in the MAS story as the airline has often been tipped for greatness due to its high service standards. However, the inability to live up to its potential has landed it in the corporate restructuring room more times than any other major government-linked companies over the past 15 years.

MAS chief executive officer Ahmad Jauhari Yahya recently said the carrier's latest business turnaround plan has started to yield results.

Despite poor economic conditions, MAS' operating loss reduced by 46 per cent to RM165 million for the first three months ended March 31 2013.

Analysts, though, contend that the market, having seen more than its share of turnaround plans, only for a new one to be introduced now to revive the fledgling carrier, aren't too excited about short-term fixes.

They are looking at a word often missing in most of the turnaround plans - consistency.

MAS to float Firefly?

By Sharen Kaur
sharen@mediaprima.com.my
Published in NST on July 13, 2013

RAISING CAPITAL: Listing of subsidiary will be national carrier’s first
Malaysia Airlines (MAS) may sell Firefly Sdn Bhd shares to the public to raise capital in order to help expand the six year-old subsidiary’s business.

If the initial public offering (IPO) does take place, it will be the first time the national carrier lists a subsidiary.

Over the years, many of the carrier’s plans have outlined the need to list its profitable units to help raise capital and also to better manage it.

The closest it got thus far was the sale of MAS Catering Sdn Bhd to Brahim’s Holdings Bhd and LSG Asia GmbH in 2003.

Brahim’s and LSG paid RM175 million for MAS Catering, besides taking over the company’s accumulated losses. MAS had incurred losses of about RM200 million from the catering business.

The carrier has more than 30 subsidiaries and associate companies. Its profitable units include Malaysia Airlines Cargo Sdn Bhd and Firefly.

Firefly bled red ink in 2011 due to its shortlived jet operations but returned to the black last year. Prior to 2010, Firefly had been making around RM10 million to RM12 million in
net profit.

The company, which is targeting a revenue of RM350 million this year, currently contributes less than five per cent to MAS’ bottom line.

Analysts said MAS’ plan to list its subsidiaries is more of a balance sheet management exercise.

“If the market views MAS’ move to unlock the value of its subsidiaries as positive, the new listed entity will rally,” said Mercury Securities head of research Edmund Tham.

Firefly chief executive officer Ignatius Ong said the listing is in the scope of the company.

“One of the requirements for listing is to strengthen the company’s position. This is where the new ATR 72-600 aircraft comes in.

We are on an expansion mode,” he said. Last December, MAS ordered 36 ATR 72-600 turboprop planes from French-Italian aircraft maker ATR for RM3 billion. Of those, 20 are for Firefly and the rest for MASwings.

Firefly received its first ATR 72-600 earlier this week. The rest will be delivered in batches over the next three years.

“We are increasing frequencies in existing markets and identifying new routes,” Ong said on the sidelines of the launch of Firefly’s inaugural ATR 72-600 commercial flight to Johor’s Senai International Airport from Subang Skypark yesterday.

Firefly also operates 12 ATR 72-500s and flies to more than 25 destinations within Malaysia, southern Thailand, Singapore and Sumatra.

High-speed rail tender may start year-end

By Sharen Kaur
sharen@mediaprima.com.my
Published in NST on July 11, 2013

KL-SINGAPORE LINK: Proof that the 400km rail project is viable, say sources

THE government may call for an international open tender for the high-speed rail (HSR) link between Kuala Lumpur and Singapore by the end of this year.

This indicates that the 400km project is viable, said people with first-hand knowledge of the matter.

The Land Public Transport Commission (SPAD) has been carrying out a feasibility study on the HSR project since early last year.

The study includes a detailed assessment on the technical and engineering aspects, cost, financial and operations, and economic benefit of the project.

Minister in the Prime Minister's Department Nancy Shukri said on Tuesday the government is finalising details of the technical engineering and feasibility study, adding that a full report is expected by the end of this month.

The project, which was agreed in principle between Malaysia and Singapore in February this year, is targeted for completion by 2020.

The rail link is expected to cost around RM40 billion. This includes RM10 billion to buy high-speed bullet trains.


According to sources, there will be mandatory requirements in the tender procurement that companies must meet before they can make a bid.

These include having a few years of expertise in running high-speed trains and operating railway lines, a source said. 

"The other considerations would include transfer of technology, the type of systems used and costs. The government expects train manufacturers from Europe or China to be among the key players," the source said.

Business Times reported recently that several local and foreign firms are in talks to form consortiums. 

MMC Corp Bhd may team up with Gamuda Bhd and Chinese and European system integrators.

YTL Corp Bhd, controlled by Tan Sri Francis Yeoh, may bid for the HSR project with Spanish bullet train maker Talgo or CAF.

UEM Group Bhd, meanwhile, is working with Ara Group, founded by Tan Sri Ravindran Menon, to form a consortium with European companies that may also include Talgo.

Global Rail, a railway engineering firm owned by Fan Boon Heng, is talking to Canada's Bombardier Inc and Chinese firm China Railway Group.

klia2 contractors claim RM250m more

By Sharen Kaur
sharen@mediaprima.com.my
Published in NST on July 4, 2013
VARIATION ORDERS: Airport project cost may rise to RM4.6 billion as a result, says source

MALAYSIA Airports Holdings Bhd (MAHB) has received variation order (VO) claims from several contractors of the low-cost carrier terminal klia2, which may raise its cost to RM4.6 billion, a person with firsthand knowledge on the matter says.

Rumour has it that MAHB received VO claims of more than RM250 million from contractors who were asked to extend runway3, raise earthworks and upgrade public infrastructure.

The amount, however, does not take into account the VO claim of around RM300 million expected from UEM-Bina Puri joint venture (JV).

An MAHB official, however, told Business Times that all the VOs have been accounted for and approved by the airport operator.

MAHB had awarded 53 work packages to build the klia2 terminal building in Sepang, Selangor, in 2010.

It is learnt that more than 120 contractors, involving sub-contractors and consultants, are involved in the project.

The main contractor, UEM-Bina Puri JV, has a RM997.2 million contract.

Other contractors with smaller jobs include WCT Bhd, for Gateway@klia (RM530 million); KUB Malaysia Bhd, for runway3 and taxiways (RM268.79 million); and Gadang Holdings Bhd, for runway3 earthworks (RM291.2 million).

Eversendai Corp Bhd is executing the structural steel works for the low-cost carrier terminal’s contact piers, sky bridge and satellite building, while Japan’s Nippon Road (M) Sdn Bhd is building its aprons.

The MAHB official also said that the airport’s cost will remain at RM4 billion.

“There has been a cost increase since 2010 but all these have been accounted for by MAHB and it falls within the RM4 billion range,” he said.

The official, however, was not able to comment whether the UEM-Bina Puri JV’s VO has been accounted for.

The JV won the contract to build the main terminal and satellite buildings, a sky bridge and four piers.

The contract value rose due to new MAHB requirements, which include a larger terminal building with additional check-in counters and a fully-automated baggage handling system.

KLIA traffic to soar past 40m mark

By Sharen Kaur
Published in NST on July 2, 2013

FLYING STEADILY: Rising connectivity and flight frequency to help surpass capacity, says MAHB PASSENGER traffic at the Kuala Lumpur International Airport (KLIA) in Sepang, which celebrated its 15th anniversary on June 28, will surpass its 40 million capacity by year-end.

Malaysia Airports Holdings Bhd (MAHB) expects KLIA to handle 43 million passengers this year, helped by airlines’ rising connectivity and flight frequency.

MAHB senior general manager for operations Datuk Azmi Murad said growth will also come from new airlines flying to KLIA.

He said the airport’s passenger traffic has been on a steady rise since its opening in 1998 and expects the momentum to continue.

Its passenger volume had risen from 14 million in 1998 to 39.8 million last year, almost reaching its full capacity of 40 million.

The KLIA, which includes the main terminal building and the low-cost carrier terminal, now has 63 airlines flying to 114 destinations.

This year alone, five new airlines have come on stream, namely Thai Smile, Malindo Air, Air France, Turkish Airlines and Philippine Airlines.

MAHB is also anticipating two new airlines between September and December.

“They have confirmed their plan to fly to KLIA. Based on the growth rate at KLIA in the past six months, we believe the 43-million passenger target is easily achievable ... if not, more,” Azmi said yesterday.

In the first six months of 2013, KLIA passenger volume grew nine per cent to 21 million from 19.3 million in the same period last year.

Based on MAHB’s statistics, aircraft movement at the KLIA from January to June this year was 128,731, compared with 114,632 in the first six months of 2012.

Cargo volume rose to 277.1 kg for the period under review from 271.1 million kg.

Meanwhile, Azmi said MAHB will hold discussions with Kuala Lumpur International Airport (klia2) contractors that have been slapped with liquidated and ascertained damages (LAD) for the project delay.

One of the contractors is UEM-Bina Puri JV, which has yet to complete the klia2 main terminal which had been slated for June 28 opening after missing earlier deadlines.

“We will hold discussions with the stakeholders, including Bina Puri and WCT Bhd, to discuss the LAD issue,” he said.

Azmi said klia2 will open on May 2 next year, after the contractors hand over the completed job by April.

UEM Sunrise eyes land in S'pore

By Sharen Kaur
Published in NST on July 2, 2013

LOOKING FOR OPPORTUNITY: Company keen to ride on good demand for properties at Marina Bay UEM Sunrise Bhd, Malaysia's biggest developer by market value, may acquire land at the 360ha Marina Bay in Singapore as demand for office towers and residential units soar.

Its group managing director Datuk Wan Abdullah Wan Ibrahim told Business Times recently that the company will consider buying land at Marina Bay if the opportunity arises.

"The market is good, so why not buy land when there is an opportunity. With this brand we have today, we can showcase ourselves as a company with 35 years of expertise in high-rise development," he said.

UEM Sunrise is a merger between UEM Land Holdings Bhd, famous for township developments, and Sunrise Bhd, well-known for its landmark projects in the Mont' Kiara enclave.

Marina Bay, sprawled on 360ha of reclaimed land surrounded by water and gardens, is located at the Southern tip of Singapore.

Ongoing developments there include Marina Bay Financial Centre (MBFC), Gardens by the Bay and residences by CDL Development.

Completed projects include One Raffles Quay and the Marina Bay Sands Integrated Resort.

M+S Pte Ltd, a 60:40 joint venture between Khazanah Nasional Bhd and Singapore's Temasek Holdings Ltd, is developing Marina One, an integrated development in Marina South and Duo in Ophir-Rochor.

UEM Sunrise is one of two companies tasked with overseeing the development and marketing of the two projects, which have an estimated gross development value of about S$11 billion (RM27.5 billion).

The projects will have office, residential, hotel and retail components.

Marina Bays Suites Pvt Ltd (MBSPL), which is developing the S$4 billion MBFC, is also keen to buy more land at Marina Bay.

Thomas Tan, the head of residential marketing at Raffles Quay Asset Management Pvt Ltd (RQAM) said MBSPL may also acquire land outside of Marina Bay.

MBSPL is owned jointly by Cheung Kong (Holdings) Ltd, Hong Kong Land and Keppel Land Ltd.

Its maiden project at Marina Bay is One Raffles Quay. RQAM was set up by them to market and manage MBFC.

"The market is still hot despite global concerns and demand for new office towers and residences is on the rise," he said recently.

MBFC comprises three office towers, two residential blocks and a mall.