Monday, May 26, 2014

ERL line extension plan

By Sharen Kaur
Published in NST on May 26, 2014

RM8b COST: Express rail link service may be extended to Seremban, Malacca

THE government is looking at extending the express rail link (ERL) service from Kuala Lumpur International Airport (KLIA) in Sepang to Malacca.
   The RM8 billion project will comprise the purchase of new train sets, construction of a new alignment and installation of the communications and signalling system.
   Government sources said yesterday there could be two to four stations, including a confirmed stop in Seremban.  
  Depending on the alignment, the  KLIA-Seremban stretch could be about 45km,  and another 45km to 55km from Seremban to Malacca, the sources said.
   They said  the go-ahead   for the project would depend on a feasibility study to   be undertaken by the Public Transport Commission (SPAD).
   Express Rail Link Sdn Bhd (ERLSB)  operates the ERL services between KL Sentral in Brickfields and KLIA.
   ERLSB is a joint-venture company between YTL Corp Bhd, Lembaga Tabung Haji and Trisilco Equity Sdn Bhd, with a 50, 40   and 10 per cent interest in the company, respectively.
   The government awarded the company a 30-year concession in August 1997 to finance, build, maintain and control the operations.
  The RM2.4 billion 57km-ERL line  was financed through equity mergers (RM500 million), loans from Development and Infrastructure Bank of Malaysia (RM940 million) and  import credit from four German financial institutions.
  This means ERLSB spent about RM42 million per km, which includes buying the train sets and installing the communications and signalling system.
   ERLSB took three years to build the line and achieved profits in 2003, after only a year of operations.
  After its completion, YTL had proposed extending the high-speed rail line to Singapore for about RM8 billion.
  The ERL trains run at a maximum commercial speed at 160kph, the fastest speed for rail travel in Malaysia.
  ERLSB chief executive officer Noormah Mohd Noor said the proposed ERL extension to Malacca would help  ease congestion on  major highways in the Klang Valley.
   "It is a good idea as it would help ease the burden of passengers travelling daily from Seremban and Malacca to Kuala Lumpur. Instead of building more roads, the government should channel the funds for railway development.
  "With the ERL, travel time from Kuala Lumpur to Seremban should be about 50 minutes, and an additional 30 minutes to Malacca," she told Business Times.
 


ETI Tech targets new revenue streams

By Sharen Kaur
Published in NST on May 26, 2014

PETALING JAYA: ETI Tech Corp Bhd, which is tipped to be taken over by Zenith Construction Sdn Bhd, is focusing on renewable energy and construction jobs in a bid to turn profitable.

  Chief executive officer Datuk Phang Chow Huat is  confident that the company  can be turned around this year or next.
   He said ETI Tech is  discussing with the government on building solar farms in Kedah.
    According to  Phang, ETI Tech has built a few solar farms in Kedah,  with the most recent  costing RM5 million.
   "We are building for third parties and  the latest project will contribute positively to  company's revenue and pre-tax profit this year.
     ETI Tech recorded a full-year net loss of RM9.7 million for fiscal year 2013.
   The company, which has a market capitalisation of RM77.7 million based on last Friday's closing  price of 10 sen, is involved in solar and battery manufacturing and has a plant in Kulim, Kedah.
    It developed the world's first lithium-polymer battery system for solar-powered homes more than four years ago.
    The lithium ion battery is  environment-friendly and can store more power than  the lead acid battery.
   Phang said the company may look at building more production plants, in line with its growth strategy.
   Newly-appointed executive director Zarul Ikhwan Zarul Ahmad, who is the son of Zenith Construction founder Datuk Zarul Ahmad Zulkifli, said ETI Tech will bid for  more construction projects, including  road development.
   The company recently won its first construction job, worth RM70 million, to build 500  apartment units in Alor Star.
    It is understood that ETI Tech is expected to win another construction job soon  worth RM35 million.
   "ETI Tech's  main revenue contributor is solar and battery manufacturing, and we hope to change that, with construction contributing the bulk to our earnings," he said at a media briefing last week.

Thursday, May 22, 2014

Zenith targets ETI Tech?

By Sharen Kaur
Published in NST on May 22, 2014

GAINING CONTROL: Appointment of two directors said to be a prelude to reverse takeover

ETI Tech Corp Bhd, controlled by AirAsia Bhd’s Datuk Kamarudin Meranun, is likely to be a reverse takeover (RTO) target of Zenith Construction Sdn Bhd, part of a consortium that will develop the proposed RM6.3 billion Penang undersea tunnel project.
Last Friday, two Zenith directors, Zarul Ikhwan Zarul Ahmad and Datuk Mohamad Amin Mohamad Salleh, were appointed to the ETI Tech board.
Sources said Zarul Ikhwan and people aligned to him have gained control of ETI Tech after taking over the 10 per cent new shares issued by the company through their privatelyheld Hong Kong vehicle.
“This is not a hostile takeover. They have briefed the major block shareholders of ETI Tech of their long-term plans for the company.
They do not wish to change the core business of ETI Tech but are seeking a natural change,” said a source close to Zarul Ikhwan.
The biggest block is held by Kamarudin, one of the founding shareholders of AirAsia.
According to Forbes magazine, Kamarudin is Malaysia’s 27th richest person, worth nearly US$800 million (RM2.6 billion), based on shares in listed firms.
Maybank Investment Bank (Maybank IB) said in its reseach note on Monday that the entry of Zarul Ikhwan could be a prelude to an RTO.
Corporate Malaysia has seen a slew of RTOs over the past 12 months, starting with Eco World Development Group Bhd, Malaysia Aica Bhd and Damansara Realty Bhd.
Shares of such companies have risen by more than 100 per cent, based on RTO announcements and value of assets injected.
Zarul Ikhwan is the son of Datuk Zarul Ahmad Zulkifli, the executive chairman of consortium Zenith BUCG Sdn Bhd, which is undertaking the undersea tunnel project.
Mohamad Amin is the former chief of government- owned Syarikat Perumahan Negara Bhd (SPNB).
Maybank IB said the entry of Zenith could revive ETI Tech, a PN1/GN5 company.
 “If an RTO  takes place, we believe interest in ETI Tech will pick up as Zenith BUCG will be a prime beneficiary of infrastructure development in Penang. For Zenith, there is also a compelling factor to go for ETI Tech’s listing status for fund-raising in future,” it said.
    ETI Tech has been making losses in the past two years and is in need of capital injection.
   At a recent analyst briefing, Mercury Securities said the management of Zenith had indicated it was looking at taking over a public-listed company and ETI Tech was one of the companies under its radar.
   The Zenith management likes ETI Tech as it is reasonably priced on absolute terms and the company is based in Penang, where the jewel of Zenith’s crown is located, it said.
  Business Times understands that ETI Tech is expected to get two construction jobs worth RM255 million this week.
 It will seal a joint venture with several privately-held Bumiputera firms, which will secure  contracts from SPNB.


Tuesday, May 20, 2014

PPB unit wins KL Eco City job

By Sharen Kaur

KUALA LUMPUR: PUTRAJAYA Perdana Bhd (PPB), which plans to re-list this year, has won a RM626 million contract to build boutique and strata offices at KL Eco City.

This brings the total value of the contracts secured by the construction, property development and concession business group, this year to RM1.8 billion.

About two months ago, PPB won a RM358 million contract from Perdana ParkCity to build mixed commercial properties in Desa ParkCity, Kuala Lumpur.

The other contracts include Tasek Central Shopping Mall in Johor Baru, and the raw water supply project for Petronas in Pengerang, Johor.

Executive chairman Datuk Rosman Abdullah said, the RM626 million contract is the biggest this year for PPB and it increases the group's outstanding order book to RM2.5 billion.

The contract was awarded by KL Eco City Sdn Bhd to PPB's wholly-owned unit, Putra Perdana Construction Sdn Bhd, he said in a statement yesterday.

PPB's outfit is expected to construct three office towers comprising 15, 16, and 17 floors each, and a block of four-storey business space on a two-storey podium car park.

It will also be responsible for the main building works of strata offices and five-storey car park area podium and two-storey basement car park area.

KL Eco City, which has a gross development value of over RM6 billion, is an integrated urban city development located on a 10ha site across Mid Valley City.

`MNCs keen on Warisan Merdeka move'

By Sharen Kaur

KUALALUMPUR:Permodalan Nasional Bhd(PNB) is talking to multi national corporations (MNCs) on leasing space at the RM5 billion Warisan Merdeka tower, here.

Several MNCs have indicated their interest to move into the tower when it is completed in 2020, said a company official, who declined to be named.

"PNB is not worried about the take-up rate as almost 70 per cent of the building space will be occupied by the group and its subsidiaries. A mall and luxury hotel will take up more than 10 floors and the rest is for MNCs and other corporate players," the official said.

However, the concern is more on rising raw material prices, shortage of foreign labour and keeping the cost within budget.

PNB Merdeka Ventures Sdn Bhd (PNBMV), a unit of PNB - the country's biggest asset manager - is undertaking the development of the 118-storey Warisan Merdeka tower project.

The project, which will be developed on a 7.6ha site, is located within the enclave of Merdeka Stadium and Stadium Negara.

The two stadiums will be retained as national heritage buildings.

The project was met with scepticism by some parties due to the oversupply of commercial real estate here but PNB has gone ahead with the development as it is bullish on its prospects.

In March, PNBMV awarded the first contrac worth RM74 million to Pintaras Geotechnics Sdn Bhd, a unit of Pintaras Jaya Bhd, to undertake the foundation works for the tower.

PNBVW is expected to award a few more contracts over the next several months for clearance works and infrastructure development, the company official said.

He added that the contract for the superstructure will also be tendered out by year-end.

It has been reported that the gross development cost of the tower, which will exceed 500m in height, is between RM2.5 billion and RM3 billion.

Warisan Merdeka tower will have a gross floor space of three million sq ft and net floor space of 2.2 million sq ft. Once completed, it will be the tallest building in Malaysia, surpassing the 452m Petronas Twin Towers.

FGV on aggressive global expansion mode

By Sharen Kaur

TOP 10 TARGET: Group to buy plantation land, planters and consumer brands

BOSTON : FELDA Global Ventures Holdings Bhd (FGV) is on an aggressive growth mode and is spending to build its upstream plantation businesses and boost downstream activities.
Chief executive officer Mohd Emir Mavani Abdullah said FGV plans to buy plantation land, smaller planters and consumer brands, targeting Southeast Asia first.
He told Business Times that FGV is in the midst of identifying a few brands and plantation-based businesses like palm oil, sugar and rubber.
“The company is very focused on its vision to be among the top 10 agriculture commodity players in the world,” he said at the commemoration of FGV’s oleochemical plant, here, in Quincy on Wednesday.
FGV not only operates refineries, oleochemicals and specialty fats plants, it also reaches the end customers with its cooking oil brands, which enjoy more than 10 per cent of market share in Malaysia.
Its strategy for 2014 is three-pronged with focus on operational improvement, high performance and portfolio optimisation.
The company is looking at setting up more plants and increasing its market presence, especially in North America and Asia Pacific, Mohd Emir said.
“FGV’s strategy is to be where customers are... so having operation in key markets is important for us. As long as we can make profits, Felda settlers will be happy. Every year we will give them 20 per cent dividends,” he said.
FGV is also looking at growing its market share in existing markets, like China, Pakistan, Turkey and Indonesia.
“We are targeting overall annual growth of between eight and 10 per cent in the next three years,” he said.
Meanwhile, the oleochemical plant in Quincy is expected to record a pre-tax profit of US$19 million on a US$220 million revenue this year, against US$14 million pre-tax profit and US$210 million revenue in 2013.
FGV has invested between US$135 million and US$150 million in the plant, via its subsidiary Twin Rivers Technologies Holdings. This includes the US$75 million paid to acquire it from Procter & Gamble (P&G) in 2007.
The plant produces intermediary products, such as fatty acids and glycerin, using raw materials like tallow (45 per cent) and vegetable oil (55 per cent) for more than 100 clients, including P&G, Unilever, Colgate, Goodyear and BASF.
Some of the brands that it produces in the United States are Tide, Vasaline, Olay, Pantene, Colgate, Mobil 1, Dove, Goodyear, Suave, Dow, Bounce and Irish Spring.
“The strength of the plant is its own deep-water infrastructure that has enabled it to competitively import vegetable based feedstock directly from the Far East. It is also backed by long standing key customers and has the broadest product portfolio offering,” Mohd Emir said.

 
FGV chairman Tan Sri Isa Samad (left) with chief executive officer Mohd Emir Mavani Abdullah (right) and Twin Rivers Technologies Holdings president and CEO Scott Chatlin with some of the products using materials supplied by TRT-US.
 Bernama pic


FGV plants seeds for RM100b revenue

By Sharen Kaur

BOSTON: Felda Global Ventures Holdings Bhd (FGV) will acquire new businesses and increase plantation acreage and crude palm oil (CPO) production to achieve its revenue target of RM100 billion.

    FGV manages 853,000ha of plantations in Malaysia and Indonesia.  Last year, the company produced 3.21 million tonnes of CPO.
    According to president and chief executive officer Mohd Emir Mavani Abdullah, FGV aims to manage more than one million hectares of plantations.
    It also plans to increase CPO production to above four million tonnes.
    "To be a RM100 billion turnover company, we need to grow by eight times. We plan to achieve this by increasing  investments in upstream and downstream activities. Downstream is more of a defence strategy to protect upstream volatility.
     "We are scouting for plantations in Southeast Asia. We are looking at oil palm estates in Indonesia and rubber plantations in Cambodia."
   Mohd Emir said FGV is also eyeing new markets in China and investments in India and eastern Africa.
   He was speaking  after the commemoration of FGV's oleochemical plant in Quincy, here, last Wednesday.
    FGV is worth about RM16.56 billion based on current market capitalisation.
   For fiscal year 2013, FGV's net profit surged 21.72 per cent to RM980.99 million, despite the tough economic conditions. Revenue for the full year was  RM12.6 billion.
    Its cash and near cash as at end-December stood at RM5.02 billion.
   FGV is engaged in five main business  clusters, namely plantation (palm oil and rubber), sugar, downstream, research and development, and manufacturing and logistics.
    It operates in more than 10 countries, including the United States, Canada, Turkey, China, Indonesia, Australia and others in Europe.
   FGV produces soyabean and canola products as well as oleochemicals at its facilities in the US, a multi-seed crushing plant in Canada and  palm oil refineries and downstream processing facilities in Malaysia, Indonesia, China, Turkey and South Africa.
    Its subsidiary, MSM Holdings Malaysia Bhd, produces 57 per cent of Malaysia's domestic refined sugar supply.
 


Thursday, May 8, 2014

Tropicana marks assets for sale

By Sharen Kaur
Published in NST on May 8, 2014

WORTH MORE THAN RM2B:, Disposals can help firm achieve target gearing level of below 0.3 times

 TROPICANA Corp Bhd has identified assets worth more than RM2 billion, which it wants to  dispose of over the next two years to unlock value.
Group chief executive officer Datuk Yau Kok Seng said the assets include raw development land, properties and other non-core assets.
“We have RM2 billion debt and our gearing ratio is 0.8 times. We want to dispose of the assets to achieve our target gearing level of below 0.3 times and strengthen our balance sheet,” Yau said.
This was part of Tropicana’s transformation business strategy and aim to become a top five developer in Malaysia within the next few years.
Tropicana is currently the ninth largest property developer in Malaysia by market capitalisation. In terms of sales, it is the fifth biggest company after SP Setia Bhd and UEM Sunrise Bhd.
“We want to be a top five premier developer by focusing on core assets and developments in strategic areas with strong emphasis on our DNA,” he said recently.
The DNA refers to the company’s focus on accessibility, connectivity, innovative concepts and designs, generous open spaces, amenities, facilities, multi-tiered security and quality.
Tropicana has undeveloped land with gross development value (GDV) of RM70 billion in the Klang Valley, Iskandar Malaysia and Penang.
In March, it sold 128ha near Kota Kemuning, Selangor, to Eco World Development Group Bhd for RM470.67 million.
Tropicana is expected to announce a new land deal soon.
CIMB Research said in a report in March that the company’s market capitalisation of only RM1.9 billion puts its GDV to a market-cap ratio of 41 times, the highest in the property sector.
It also said the company’s valuations are very attractive due to a selldown in its share price on perceived conflict of interest issues. 
“Applying a 30 to 40 per cent discount to its fully diluted revaluated net assets of RM5.11, the lower end of our discount range, and in line with discounts accorded to smaller-cap property stocks, we get a valuation range of RM3.07 to RM3.58 for Tropicana. This would offer investors substantial upside of 121 per cent to 158 per cent,” it said.


Encorp scaling up construction unit

By Sharen Kaur
Published in NST on May 8, 2014

EARNINGS BOOST: Company eyeing projects that can provide returns of between 10 and 15 per cent

ENCORP Bhd, which is being taken over by Felda Investment Corp (FIC), is scaling up its construction division to boost earnings.
According to people close to the company, it is eyeing projects specifically related to property development that can provide returns of between 10 per cent and 15 per cent.
The company’s construction arm, Encorp Construct Sdn Bhd, has RM2.5 billion worth of projects in hand and are mostly related to residential and commercial development.
The construction division, coupled with Encorp’s concession business, currently contributes about 30 per cent to the company’s overall revenue.
The rest is derived from property development and the division has on-going projects with a gross development value of RM3.5 billion.
“Encorp hopes to secure contracts to build high-rise and low-rise residential and commercial properties and facilities. It will also venture into other areas in construction, that would fit its growth strategy,” the sources said.   
Encorp group chief executive officer Yeoh Soo Ann was not avaiable for comment. 
The sources said the owners of Encorp have a lot of plans for the company and that they are expanding the business and earnings of the company so new investors will come in.
Encorp was formerly controlled by Sarawak politician Datuk Seri Effendi Norwawi, who was once an agriculture minister, until a management buyout (MBO) in mid-2013.
The MBO was undertaken by Yeoh, and its chief operating officer Mohd Ibrahim Masrukin. Under their control, Encorp’s net profit surged threefold for the financial year ended December 31 2013 to RM95.6 million.
This was due to higher sales, progress of works achieved and from the revaluation of certain assets in compliance with the accounting guidelines on the company’s investment properties.
On Tuesday, FIC confirmed a Business Times report that it was finalising the prospect of buying a substantial stake in Encorp.
It plans to pay a total of RM239.7 million for the 49.45 per cent stake in Encorp. It has also offered to buy the remaining securities it does not own in Encorp.
The proposed acquisitions are in line with FIC’s strategy to build its capabilities in property development and to acquire investment properties.
“That is the whole synergy between Encorp and FIC. They have the landbank and Encorp has the capabilities,” the sources said.
Encorp’s property developments projects include its flagship Encorp Strand in Kota Damansara, Encorp Cahaya Alam in Shah Alam, The Enclave Hillside Villas in Batu Feringghi and Encorp Marina Puteri Harbour in Nusajaya, Johor.
In Australia, Encorp is developing Residences on McCallum Lane in Perth.


Wednesday, May 7, 2014

Accor to ramp up presence

By Sharen Kaur
Published in NST on May 5, 2014

KUALA LUMPUR: France-based hotel group Accor S.A. is ramping up its presence in Malaysia as it is upbeat on the local tourism industry, says Eric Tan, the general manager for Pullman Kuala Lumpur Bangsar.

According to him, Accor will manage hotels for operators in Langkawi, Penang, Malacca, Port Dickson, Kota Baru, Johor Baru and Sandakan.

"There are many places in Malaysia that require hotel rooms. We are in talks with hotel owners who have approached us to manage their properties under our brands.

"We will do our own assessment and study the development theme to see if it suits any of our brands.

"We will also evaluate the potential of our brand in that area. We are very strict and will not compromise on the brand," he told Business Times in an interview, here, recently.

Accor is the world's largest hotel chain manager with a presence in 92 countries and operates close to 4,000 hotels with more than 600,000 rooms.

The group provides an extensive range of accommodations - from luxury to budget, and serviced apartment facilities - operating under 13 brands.

In Malaysia, it manages eight hotels with 2,520 rooms under the Pullman, Novotel and Ibis Styles brands in Kuala Lumpur, Putrajaya and Kuching.

Tan said Accor will be adding more hotels to its portfolio over the next two years.

These include Mercure Kota Kinabalu, Mercure Selayang, Mercure Bandar Sri Damansara, Mercure Shaw Parade, Ibis Styles Sandakan and Novotel Malacca.

For fiscal year 2013, the Accor group reported a profit of Euro126 million (RM567 million) and Euro5.5 billion revenue. As as the end-2013, it has total assets of Euro7 billion.

"Indonesia is the best performer for Accor in Asia and Malaysia is catching up. Accor will focus on growth in Malaysia," Tan said.

PNB merger plan to create global giant

By Sharen Kaur
Published in NST on May 5, 2014

Permodalan Nasional Bhd's (PNB) plan to merge three of its biggest property companies, including SP Setia Bhd, is to create a giant that can compete globally.

PNB, the country's biggest asset manager, is reportedly studying a proposal to consolidate SP Setia Bhd, Island & Peninsular (I&P) Sdn Bhd and Sime Darby Properties Bhd.

Its president and group chief executive Tan Sri Hamad Kama Piah Che Othman said recently the company is also looking at the feasibility of investing overseas.

He said all the research and preparations for an overseas venture have been completed.

"By consolidating the three companies, there will be more streamlining of businesses and operations. Except for I&P, the other two have international presence. As a single giant, it would be easier to buy more assets overseas, undertake major developments and expand earnings," an industry source told Business Times.

SP Setia has 1,913ha and 40 projects in five countries, with gross development value of more than RM70 billion, in addition to RM2.6 billion in cash.

Sime Darby Property has 7,600ha and is looking at another 7,520ha for future development. It has projects in Malaysia, Singapore, Vietnam, Australia and the United Kingdom.

I&P has 2,066ha, mostly in Selangor.

PNB has invested in more than 200 companies locally and has three properties in London and one in Australia.

Its funds under management are close to 80 per cent of the total net asset value of RM300.19 billion of the unit trust industry, according to latest regulatory statistics.

PNB is eyeing to manage RM500 billion worth of assets by 2020 by offering more value added and innovative products.

FIC conducting due diligence on Encorp’

By Sharen Kaur
sharen@mediaprima.com.my
Published in NST on May 6, 2014

KUALA LUMPUR: Felda Investment Corp (FIC), a unit of Federal Land Development Authority (Felda), is carrying out a due diligence on Encorp Bhd, sources said.

FIC, which was set up last year, is ramping up property development and investment activities and is looking for a good vehicle to support its growth plan.
According to sources, it has identified property development and tourism projects as core activities.
It was reported that FIC is looking to buy a substantial stake in Encorp, a mid-cap construction and property group controlled by chief executive officer Yeoh Soo Ann and chief operating officer Mohd Ibrahim Masrukin.
Yeoh and Ibrahim undertook a management buyout of Encorp last year by taking over Lavista Sdn Bhd, which owned a 30.55 per cent stake in the company. Lavista is a private vehicle of former Encorp executive chairman Datuk Seri Effendi Norwawi.
Encorp has several projects in hand with a combined gross development value of about RM3.5 billion.
Its construction division’s order book is worth about RM2.5 billion while its concessions are valued at RM2.2 billion.
For fiscal year 2013, Encorp’s net profit jumped threefold to RM95.6 million from RM29.7 million a year ago.
The sources said FIC is evaluating the synergies between the two companies.
“This includes efforts to enhance coordination and cooperation between the two entities and scale up businesses. The Felda group has plenty of landbank and some parcels can be turned into integrated developments and mixed housing. There will be profit-sharing between FIC and Encorp,” a source said.
FIC is one of the four income-generating models that will support new generations of Felda settlers.


Saturday, May 3, 2014

New role for LCCT

By Sharen Kaur
Published in NST on May 1, 2014

INVESTMENT PLAN: MAHB to spend up to RM200m turning terminal into global cargo and logistics hub, say sources

MALAYSIA Airports Holdings Bhd (MAHB) will spend  RM40 million to RM200 million to transform the Low-Cost Carrier Terminal (LCCT) in Sepang into a global cargo and logistics hub.
    The  investment will depend on the requirements for the said hub, according to people with knowledge on the matter.
    "If a large luxury jeweller or pharmaceutical group wants to come in, then the investment will be RM200 million as it will require tighter security and faster processing. But if only smaller industries want to utilise the hub, MAHB will retain the whole shell with  upgrading costing about RM40 million.
    "MAHB will do whatever it takes to get the investment so that shareholders' dividend wont't be affected," said one of the sources.
    The sources said MAHB's aim is to turn the LCCT into one of Malaysia's major cargo and logistics hubs, and help local logistic players to be the "future DHL of Southeast Asia".
    DHL is a global market leader in the logistics industry.
    According to the source, the transformation of  LCCT will take place soon after all the  airlines have moved to the Kuala Lumpur International Airport 2 (klia2).
    Malindo Air, the Philippines' Cebu Pacific Air, Singapore's Tiger Airways and Indonesia's Mandala Airlines and Lion Air will move to klia2 today, while the AirAsia Group will relocate on May 9.
    "As soon as all the airlines have moved to klia2, MAHB will make plans to  redevelop the LCCT," another source said.
    The source said MAHB has received offers from local and institutional funds to  fund the development in return for a stake in the project.
    These include Permodalan Nasional Bhd and  Employees Provident Fund.
   "Currently, valuable cargo and lower-end products go to Singapore.
   "MAHB hopes that with the transformation of the LCCT into a modern cargo and logistics hub, it will attract some of the players, especially those who are moving expensive cargo," the source added.