Thesun 2009-06-30 Page16 Tm In Talks With 13 Firms On Broadband Services

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theSun

| TUESDAY JUNE 30 2009

business Bank Pembangunan posts record high net profit of RM1.07bil KUALA LUMPUR: Bank Pembangunan Malaysia Bhd’s net profit has surpassed the RM1 billion mark for the first time in its 35-year history. In a statement here yesterday, the bank the RM1.070 billion net profit was largely due to the increase in both operational and non-operational income, lower expenses as well as reduction in loan loss provisions. The bank said it has implemented

several proactive measures to further strengthen asset quality. “Among them are annual review and new classification of ‘watch list’ to ensure proper pre-emptive measures are taken on such loan accounts. “In addition, the screening process of new applications was enhanced to weed out unproductive and non-viable applications resulting in considerable reduction in loan approvals in 2008,”

Vita Cat to expand to Mid-East

as at end-2008 continued to be one of the strongest in the industry whereby the shareholders’ fund had increased by another RM965.3 million in 2008 resulting in the risk-weighted capital ratio to stand at 28.3% as against the banking system average of 12.7%. Bank Pembangunan said enhanced credit management has a positive impact as evidenced by its ability to reduce its non-performing loan (NPL)

ratio to 0.8% as at Dec 31, 2008 despite the reduction in loan portfolio by 2.7%. It said quality of assets continued to improve given the decline in the amount of NPLs by RM205.6 million. It said the bank would continue to strive to improve its effectiveness in supporting the nation’s developmental programme and ensuring its sustainability over the long-term. – Bernama

TM in talks with 13 firms on broadband services When it pays to follow rules pg 18

KUALA LUMPUR: Telekom Malaysia Bhd (TM) is in discussions with 13 potential companies for its high-speed broadband (HSBB) wholesale services. TM group chief executive officer Datuk Zamzamzairani Mohd Isa said the HSBB wholesale service was made available from last month and negotiations were ongoing with access-seekers on a one-to-one basis. TM’s wholesale offerings comprise three services – HSBB (transmission), HSBB (access) and HSBB (connection) services. Zamzamzairani said the companies concerned included those involved in providing WiMAX (Worldwide Interoperability for Microwave Access), content providers and mobile and telecom players. “For the wholesale service, we have to engage and understand their business requirements. The service delivered to them is customised and peculiar to their needs. It takes time to do this,” he told reporters after the launch of physical work for HSBB access infrastructure in Taman Tun Dr Ismail yesterday. Information, Communications and Culture Minister Datuk Seri Utama Dr Rais Yatim launched the ceremony to mark the commencement of the work. Also present were Federal Territories Minister Datuk Raja Nong Chik Raja Zainal Abidin and TM chairman Tan Sri Md Radzi Mansor. Zamzamzairani said TM has commenced physical work for the laying of HSBB access infrastructure in 22 exchange areas around the country that would be covered by the initial roll-out of the services. He said the roll-out in Taman Tun Dr Ismail, Bangsar, Subang Jaya and Shah Alam was expected to be completed by year-end. “Fibre access work related to the coming HSBB network is now in full swing,” he said. Zamzamzairani said TM was also targeting HSBB retail service commercial roll-out for consumers and businesses in the first quarter of next year. He said under the Public Private Partnership agreement with the government, signed

Rais (second from right), Raja Nong Chik (third from left), Mohd Radzi (fourth from left) and Zamzamzairani (third from right) press the symbolic panel to mark the commencement of the project. BERNAMAPIX

KUALA LUMPUR: Edaran Vita Cat Sdn Bhd, a halal cat food producer, plans to expand its market in the Middle East after making inroads in Dubai recently. Its head of business development, Halim Baba, said the company proposed to take part in trade missions organised by Malaysia External Trade Development Corporation (Matrade) end of this year to seek new markets in the Middle East. Besides Dubai, Vita Cat is also exporting its products to Brunei, he told Bernama on the sidelines of the Buy Malaysian Products Expo here recently. Established in April last year, the company is currently exporting 15,000kg of food to Dubai and 8,000kg to Brunei each month. For the domestic market, the company’s products can be found at hypermarkets and supermarkets like Giant, Carrefour, Mydin and Jusco. “Our products entered all the hypermarkets recently and demand has been encouraging,” Halim said, adding that one of the hypermarkets was able to record sales up to RM12,000 monthly. “Previously our products were available only in the north, and we supplied to veterinary authorities in Kangar in Perlis, and Kulim and Alor Setar in Kedah,” he said. – Bernama

it said. The bank said net interest income rose by RM236 million from RM441.4 million in 2007 to RM677.3 million last year. “Concurrently, the non-interest income increased from RM134.5 million in 2007 to RM510.6 million in 2008, arising from the divestment of SME Bank,” it said. It said the bank’s capital position

on Sept 16 last year, TM would invest RM8.9 billion of its own money over 10 years to finance the HSBB network infrastructure rollout, while the government was co-investing RM2.4 billion, making up the total of RM11.3 billion. “A total of approximately 1.3 million premises nationwide will have access to HSBB by 2012. “HSBB offers bandwidth at network speeds of 10 megabits/second (Mbps) and above while

broadband for general population delivers at network speeds of 384Kbps (kilobit/second) to four Mbps,” he said. Zamzamzairani said HSBB roll-out would be focused on Zone One, a high economic impact areas, namely, Inner Klang Valley, Iskandar Malaysia and key industrial zones throughout the country. “The HSBB is expected to contribute 0.6% to gross domestic product and create 100,000 jobs by 2017,” he said. – Bernama

Handal Resources to expand business regionally KUALA LUMPUR: Handal Resources Bhd, an integrated offshore crane service and manufacturing provider in the oil and gas industry, will utilise the bulk of proceeds from its initial public offering (IPO) for business expansion in East Malaysia and regionally. The group is looking to expand into East Malaysia first, setting up base in either Labuan or Miri or both locations, executive chairman Datuk Mohsin Abdul Halim said at a press conference after the launch of Handal’s prospectus yesterday. He said Handal was already selling cranes to Sarawak Shell while the possible targets in its regional expansion included Vietnam, Thailand, Brunei and

Indonesia. Besides organic growth, the group is also exploring the prospects of expansion through acquisitions, joint ventures and strategic alliances in the oil and gas industry to complement its current and future businesses. Handal expects to raise RM13.32 million from the public issue of 18.5 million shares priced at 72 sen each. From the amount, RM8.5 million will be for business expansion within two years of listing, RM3.42 million for working capital and RM1.4 million for estimated listing expenses. Under the public issue, six million shares are allocated for application by Malaysian public,

four million shares for directors, employees and persons contributing to the group’s success, and 8.5 million shares allocated through private placement to identified investors. There will also be an offer for sale of six million shares to identified investors. The IPO involves the public issue of 18.5 million shares at an issue price of 72 sen each, and also an offer for sale of six million shares. Mohsin is confident the IPO will be well received and oversubscribed despite the current cautious sentiment among investors. According to him, Handal chose to go listing now is because it is confident that the incentives

under the government’s stimulus package will have a positive impact on the economy, and also in the group’s fundamentals. “We want to be ready when the economy recovers,” he added. Handal is one of only two American Petroleum Institutelicensed companies operating in Malaysia that manufactures offshore pedestal cranes and the only company to provide fully integrated offshore crane services in the oil and gas industry. For its financial year ended Dec 31, 2008, Handal posted a profit of RM9.247 million on revenue of RM60.577 million, up from RM8.712 million on revenue of RM55.595 million in the previous year. – Bernama