Latest news with #RM79mil
The Star
14-06-2025
- Business
- The Star
New RM79mil Mara Professional College campus to serve Kapit students
KAPIT: A new Mara Professional College campus, costing RM79mil, will be constructed in Kapit to serve students in the division. The campus would have the capacity to accommodate up to 300 students and would emphasise soft skills instead of technical or TVET (Technical and Vocational Education and Training) courses. Works Minister Datuk Seri Alexander Nanta Linggi stated that the project was approved in 2019 but could not commence earlier due to various necessary processes that had to be completed. 'This project has been eagerly anticipated and is much needed, as it will be the only higher education institution available to students after secondary school in this remote area,' he said following a handover ceremony at the Kapit Civic Centre meeting room on Saturday (June 14). Nanta mentioned that the original allocation for the project was RM90mil, but after an open tender process, the contract was awarded for RM79mil. He said there would be only a one-time registration fee upon enrollment, with no tuition fees. 'Additionally, students will receive a monthly allowance of RM300,' he said. The project, located on Jalan Song-Kapit, is scheduled for completion on Dec 5, 2029. After the ceremony, Nanta attended the Gawai Dayak open house at Dewan Sarawak.
The Star
21-05-2025
- Business
- The Star
Gradual recovery forecast for PetChem
Kenanga Research has cut its projected FY25 and FY26 earnings on lower polyolefin price assumptions. PETALING JAYA: Petronas Chemicals Group Bhd 's (PetChem) valuations appear lofty at the moment and could be vulnerable to any weakness moving forward. Maybank Investment Bank Research (Maybank IB) expects a profit contraction in the financial year 2025 (FY25) due to the consolidation of Pengerang Petrochemical Co's (PPC) losses into PetChem's financials. 'We believe that the worst is not over for the petrochemical sector. 'We deem PetChem's valuations rich at 22 times price-to-earnings ratio (PER) of our revised forecast FY26 earnings per share, given the cyclical nature of the industry and challenging sector outlook,' it said. The PPC registered a wider earnings before interest, taxes, depreciation, and amortisation loss of RM170mil in the first quarter on Pengerang Refining Company's (PRC) unscheduled maintenance, which was extended till June 2025 from March 2025 previously. The research house noted PetChem's recent first-quarter results appeared weak with a core net profit of RM79mil, which it said missed its and consensus' full-year estimates. Compared to its expected forecasts, its financial results were impacted by weaker-than-expected olefins and derivatives product spreads and the operational disruption in Kerteh, Terengganu in the quarter. Maintaining its 'sell' rating, Maybank IB lowered its target price on the counter to RM2.59 from RM3.06 before based on a rolled-over forecast FY26 PER of 15 times from 17.5 times, in line with its five-year mean PER valuation multiples. Meanwhile, Kenanga Research said polyolefin prices remain weak below US$1,000 per tonne due to the weaker near-term demand outlook, although the recent development in the US-China tariff war meant a relief from a potential severe global economic downturn. 'Urea prices are expected to remain firm as China still restricts exports of fertilisers. As for PPC, we do not expect a swift turnaround in profitability as it is uncertain whether its feedstock supply issue will be solved in the near term,' it said. 'In the near term, demand weakness coupled with oversupply will still plague petrochemical prices, but the bottom could be near given lower recession risks,' it added. Kenanga Research has maintained its 'market perform' rating and cut projected FY25 and FY26 earnings on lower polyolefin price assumptions. The research house raised its target price to RM3.40 from RM3.11, rolling forward its valuation to FY26 forecast price to book value of 0.7 times from 0.6 times on the tariff relief.
The Star
15-05-2025
- Business
- The Star
Open tender process was ‘staged', says prosecution witness
KUALA LUMPUR: A key prosecution witness in the ongoing trial of the Penang undersea tunnel project involving former Penang chief minister Lim Guan Eng said the purported open tender process was 'staged' for his company to secure the project, the Sessions Court heard. Consortium Zenith Construction Sdn Bhd (CZCSB) former director Datuk Zarul Ahmad Mohd Zulkifli said the project was not awarded through an open tender. He was being re-examined by deputy public prosecutor Mahadi Abdul Jumaat about the nature of the meetings between Chinese construction firm Beijing Urban Construction Group (BUCG) – a special purpose vehicle for the project – and the Penang state government. 'The project's memorandum of understanding (MOU) did not state that the project would be done through an open tender. That is the reality. 'The MOU did not mention an open tender at all; the meetings we attended with the state government showed that, although it was an open tender, it was staged for us to secure the project. 'Since the RFP (request for proposal) was prepared together with us, it gave us a head start. When the RFP was called to include other bidders, they were given a short time to prepare their submission,' he said. Zarul Ahmad noted that his company had a 'head start' since 2011. 'We were also one of the parties involved in the RFP preparation stage, so there was indeed insider information.' Zarul Ahmad also confirmed that apart from three official meetings with the state government, there were informal meetings with state officials to gather information for the RFP. Zarul Ahmad also confirmed that Lim informed him in early May 2011 about the change of the project's bidding to an open tender. Despite this, he said BUCG was still invited to attend meetings, which took place both before and after the announcement of the open tender by Lim. Zarul Ahmad also revealed that a RM19mil payment made to businessman G. Gnanaraja was for the sole purpose of stopping an investigation by the Malaysian Anti-Corruption Commission (MACC) and had nothing to do with an ongoing investigation by the Inland Revenue Board (LHDN). Last Nov 14, Zarul Ahmad testified that LHDN officers raided his home and office in 2017 at the height of public debate over the project. He also said that a large amount of cash in a safe he kept was untouched despite the LHDN and MACC raids. 'I received RM79mil from Datuk Ewe Swee Kheng for a land-swap deal for Lot 702 between 2013 and 2016. I cashed out some of the money and kept it in my office safe for emergencies, as well as the general election, as I would give contributions to those I supported. But the officers did not touch it during the raids,' he said. Lot 702 was part of a land swap agreement related to the feasibility and detailed design studies for the Penang undersea tunnel project. Ewe, who was Ewein Bhd founder and executive chairman, was due to be called as the 15th prosecution witness, but was found dead after a fall from a condominium on Oct 5, 2021, in Pulau Tikus, Penang. Lim, 64, is facing an amended charge of using his position as then Penang chief minister to solicit RM3.3mil in bribes as an inducement to assist Zarul Ahmad in securing the undersea tunnel project worth RM6.34bil. Lim allegedly committed the offence at the Penang Chief Minister's Office, Level 28, Komtar, George Town, between January 2011 and August 2017. In the second amended charge, Lim is accused of soliciting a 10% profit from the company as gratification to secure the project. The offence was allegedly committed near the Gardens Hotel, Lingkaran Syed Putra, Mid Valley City here, in March 2011. Lim, who is Bagan MP, faces two further charges of causing two plots of land worth RM208.8mil, belonging to the Penang government, to be disposed of to two companies linked to the project. The trial before Judge Azura Alwi continues on May 27.
