Latest news with #RM7.52
The Sun
21-07-2025
- Business
- The Sun
Audit report exposes contract weaknesses in Malaysian Army vehicle deals
KUALA LUMPUR: The Auditor General's (AG) Report 2/2025 has uncovered critical flaws in the Malaysian Army's (TDM) procurement and contract management, raising concerns over national defence preparedness. The audit highlighted delays, unclaimed fines, and improper procurement practices involving RM7.8 billion worth of armoured vehicle contracts. Key findings from the report include a two-year delay in the delivery of 68 GEMPITA vehicles by a local contractor, resulting in an overdue fine of RM162.75 million. The government had already paid RM7.52 billion despite the contractor missing deadlines. Additionally, the RM53.93 million performance bond was insufficient to cover penalties. Maintenance and spare parts delays for GEMPITA, ADNAN, and PENDEKAR vehicles led to unenforced fines of RM1.42 million. The report also criticised small-batch procurement by Responsibility Centres (PTJs), bypassing open tender rules for purchases exceeding RM500,000. The Defence Ministry cited Movement Control Order (MCO) disruptions as a cause for delays, but auditors stressed that timely enforcement of penalties could have mitigated losses. The AG recommended structured contract timelines and centralised approvals for ad hoc procurements to reduce governance risks. – Bernama
New Straits Times
09-07-2025
- Health
- New Straits Times
Private hospital risks seizure over unpaid RM8mil negligence suit
KUALA LUMPUR: A private hospital in the Klang Valley faces seizure after failing to settle RM8.32 million for medical negligence. It is learnt a writ of seizure and sale dated May 26 was issued by the Kuala Lumpur High Court after the hospital failed to pay the claimant the court-ordered sum with interest after first losing the case in 2020. The suit was filed by the family of a newborn baby, which claimed that their child suffered from spastic quadriplegic cerebral palsy due to medical negligence. According to the court judgments sighted by the New Straits Times, the High Court had on Sept 10, 2020 found the hospital liable for the baby's condition, a decision that was upheld by the Court of Appeal and Federal Court. In their suit, the family alleged their child, a girl, was born prematurely at 26 weeks on Feb 26, 2003, as a result of negligent obstetric services at the hospital. She had and continues to suffer from permanent mental and physical disabilities, forcing her to be fully dependent on others for daily activities. The family had filed the suit on March 21, 2018, against the hospital and two doctors and won. They were awarded RM8.12 million in damages. On Feb 4, 2022, the Court of Appeal upheld the High Court decision but allowed the two doctors' appeal. The court also reduced the damages to RM6.03 million. The hospital went on to fight the case at the Federal Court but the appeal was dismissed on Feb 24, 2023. The court documents stated that the hospital had not made full payment of the sum, which at the conclusion of the Federal Court hearing, had accumulated to RM7.52 million, including interest. However, the hospital has since failed to fully comply and settle the damages awarded to the girl. According to the May 26 writ of seizure, the hospital's assets can be sold to settle the sum owed. Checks by the NST showed the hospital was operating as usual, with patients registering and visitors entering and exiting the premises. The NST is withholding the name of the hospital pending a response from it.
The Star
29-05-2025
- Business
- The Star
Analysts offer mixed outlook on RHB
PETALING JAYA: RHB Bank Bhd's prospects for the rest of the financial year appear balanced between resilience and caution, as analysts weigh solid fundamentals against macroeconomic uncertainties following the group's first-quarter results. Despite a 2.7% year-on-year rise in net profit to RM750.03mil for the three months ended March 31, 2025 (1Q25), brokerages are mixed in their outlook, citing slower gross domestic product (GDP) growth projections, credit cost risks and muted non-interest income (NOII) as key variables. Hong Leong Investment Bank (HLIB) Research noted that RHB has revised its loan growth guidance to 5%-6% from 6%-7%), in response to revised GDP growth expectations now 4.5% against 5%. Nevertheless, net interest margin (NIM) guidance remains intact, expected to be flat to +4 basis points (bps), excluding any overnight policy rate (OPR) cut, underpinned by concrete efforts to ease funding cost pressures through portfolio rebalancing, Singapore deposit rate repricing and leveraging statutory reserve ratio (SRR) liquidity, it said. HLIB maintained a 'buy' rating with an unchanged target price of RM7.70, calling the stock attractive at 0.88 times price-to-book (P/B) due to a dividend yield of 6.7%. TA Research was similarly upbeat, reiterating a 'buy' and raising its target price to RM7.52 from RM7.00. It highlighted that 'management remains cautiously optimistic about the outlook for 2025', with credit cost guided at 15–20bps and return on equity (ROE) forecast at 10.4%–10.8%. The bank's focus on mitigating risks through early restructuring efforts was also noted, especially for small and medium enterprises (SME) exposures, with RHB proactively engaging with potentially affected borrowers and has reinforced its early restructuring and rescheduling (R&R) initiatives. TA also underscored stable NIM expectations of 1.86% to 1.90%, aided by the recent SRR cut and an improving current-account-savings-account (CASA) ratio. However, Maybank Investment Bank (MaybankIB) Research struck a more cautious tone, revising its call to 'hold' from 'buy' and cutting its target price to RM7.10 from RM7.70. It stated that 'RHB's 1Q25 core net profit was below expectations, largely on account of lower-than-expected NOII'. Reflecting a weaker macroeconomic backdrop, MaybankIB has cut its 2025-2027 earnings for RHB by 8%-9%, largely to factor in slower economic growth, a potential rate cut and lower NOII, and added that it has raised credit costs by 20% from 3bps. CIMB Research, meanwhile, maintained a 'buy' call with an unchanged target price of RM7.50, asserting that dividend yield will likely remain close to 5.5%, even under a more stressed scenario. It believes key catalysts for RHB include 'higher-than-expected NIM, better asset quality, higher-than-expected loan growth, and sustained dividend payout'. However, it warned of downside risks from 'higher-than-expected cost of funds' and 'uptick in impaired loans'. The bank's key performance index targets for 2025 include ROE of 10.4%–10.8%, loan growth of 5%–6%, NIM of 1.86–1.90%, and a dividend payout ratio of 30%–50%. Credit cost is expected to be kept within 15–20bps, while the cost-to-income ratio is guided at 45.5–46%. For 1Q25, RHB reported revenue of RM4.39bil, marginally lower than RM4.40bil in the previous year. Net profit of RM750.03mil was up from RM730.17mil previously.
The Sun
25-05-2025
- Business
- The Sun
Bintai Kinden completes regularisation, lays foundation for future growthj
PETALING JAYA: Bintai Kinden Corporation Bhd, a mechanical and electrical (M&E) engineering services specialist, construction contractor, medical device manufacturer and facilities operator, has announced its financial results for the fourth quarter and the financial year ended March 31, 2025, alongside the successful completion of its proposed regularisation plan, a significant milestone towards the company's recovery and future growth. For Q4'25, Bintai Kinden posted revenue of RM7.52 million, compared to RM7.63 million in Q4'24, primarily due to a decline in contributions from the M&E engineering segment following the termination of several legacy contracts. The construction segment, which has been reclassified in line with the company's strategic diversification, contributed RM2.5 million or 33.2% to total revenue. The concession segment remained a stable revenue base, contributing RM3.55 million for the quarter. The group said it remained focused on reinforcing its operational foundations and implementing strategic improvements to support long-term sustainability. However, for Q4'25, the group recorded a loss before tax of RM31.55 million, in contrast to a profit before tax of RM10.85 million in the previous financial year. The loss was primarily driven by a combination of elevated expected credit losses and several significant non-recurring items. These included a substantial provision for back-charges arising from the termination of previously awarded contracts, the reversal of a profit guarantee, and the recognition of fair value expenses related to share options granted to a director. While these one-off items have had a material impact on Bintai Kinden's financial performance for the year, they are not expected to persist in future periods. The group continues to take decisive steps to mitigate risk exposures, improve financial discipline, and restore profitability through enhanced operational efficiency and better cost management. Managing director cum CEO Datuk Tay Chor Han said, 'FY2025 has been a year of strategic reset for the group. While our financial performance reflects the challenging transition period, we are encouraged by the progress made in our diversification into the construction segment, and the continued stability of our concession business. Most importantly, the successful completion of our proposed regularisation plan lays a solid foundation for recovery. With improved financial discipline, a leaner capital structure, and stronger shareholder support, we are well-positioned to pursue our growth agenda moving forward.' The company confirmed the completion of its proposed regularisation plan. Following the successful listing of new placement shares on March 24 and the receipt of confirmation from the Companies Commission of Malaysia dated May 21 on the effectiveness of the proposed share capital reduction, Bintai Kinden's regularisation efforts are now deemed completed. This marks a critical step towards its eventual upliftment from Practice Note 17 status, subject to further regulatory review. Looking ahead, Bintai Kinden will continue to focus on project execution, strategic tendering, and disciplined cost management. With a construction order book of about RM127.3 million, M&E order book of about RM4.5 million and RM181.8 million worth of M&E-related tenders under evaluation, Bintai Kinden said it is poised to strengthen its position in Malaysia's recovering construction and engineering sectors.
