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The Star
12 hours ago
- Business
- The Star
Hong Leong Bank issues RM400mil Tier 2 subordinated notes
KUALA LUMPUR: Hong Leong Bank Bhd (HLB) has issued RM400 million in nominal value of Tier 2 subordinated notes under its multi-currency Tier 2 subordinated notes programme (HLB T2 Programme). In a filing with Bursa Malaysia today, the bank said the issuance comprises two tranches: Tranche 6 Series 1, amounting to RM75 million and Tranche 6 Series 2 totalling RM325 million. "Tranche 6 Series 1, with a tenure of 10 years, has a coupon rate of 3.78 per cent per annum, and is non-callable for five years, while Tranche 6 Series 2 has a tenure of 12 years, a coupon rate of 3.85 per cent per annum, and is non-callable for seven years. "Both tranches pay coupons every six months, with Tranche 6 Series 1 callable from June 20, 2030, and Tranche 6 Series 2 from June 21, 2032, on any subsequent coupon payment date," it said. HLB added that the proceeds from the subordinated notes will be utilised, without limitation, for its working capital, general banking, and other corporate purposes, and the refinancing of any existing borrowings incurred, subordinated debt issued by the bank and/or any existing subordinated notes issued under the HLB T2 Programme. RAM Rating Services Bhd has assigned an AA1 rating for the subordinated notes programme. - Bernama
The Sun
2 days ago
- Business
- The Sun
MSM Malaysia unfazed by influx of sugar imported from Thailand
KUALA LUMPUR: Local sugar producer MSM Malaysia Holdings Bhd remains confident in its competitive position despite the influx of imported sugar from Thailand. The group is well positioned to compete with imported products, leveraging its established domestic scale and operational capabilities and will continue to maintain its market presence and deliver value to customers in the face of increased competition. Group CEO Syed Feizal Syed Mohammad said the company has a total scale of two million tons and is adopting a strategy of competing with imported sugar for a certain given volume. 'We still retain a good number of market share, and we have a specific price strategy to counter Thai imports, while the government considers other mitigating factors. 'Our refineries got good efficiencies, and we see significant improvement in Johor, so it's not a matter of economics,' he said after the company's 14th annual general meeting today. Syed Feizal said that special actions must be taken to mitigate dumping practices and that the joint industry has taken measures in that direction. MSM marked 2024 with a turnaround for the group, continuing its positive momentum to produce a year-on-year improvement, which was made all the more significant by a return to profitability. This progress was underpinned by stronger operational performance at MSM Sugar Refinery (Johor) Sdn Bhd and the continued optimisation of steady operations at MSM Prai Bhd. In FY24, MSM Malaysia recorded a profit before tax of RM75 million, a significant reversal from the loss before tax of RM28 million in FY23. Revenue grew 15% year-on-year to RM3.54 billion in FY24 compared to RM3.09 billion in FY23, supported by an 8% increase in sales volume and a 6% higher average selling price. The positive growth was underpinned by the execution of transformation and turnaround strategy, focusing on cost optimisation, efficiency enhancements and market expansion. Despite market challenges, including volatile raw sugar prices and rising freight costs, MSM Malaysia effectively managed risks through proactive hedging strategies and improved cost structures. 'FY24 marked a pivotal year for MSM Malaysia as we successfully delivered a significant turnaround, returning to profitability and achieving notable financial and operational improvements. 'One of the most significant contributors to our improved performance was stronger production efficiency. In 2024, the group recorded a capacity utilisation factor of 54%, up from 48% in 2023, while our yield improved to 96% from 95%,' Syed Feizal said. He noted that these gains were supported by operational discipline at both MSM Prai and MSM Johor, where they streamlined processes, enhanced preventive maintenance and improved energy efficiency. 'MSM will continue to mitigate input costs such as raw sugar, forex and freight with gradual hedging as part of risk management to ensure margin sustainability while optimising cost management through production and supply chain efficiencies,' Syed Feizal said. For 2025, MSM aims to expand market presence, particularly in China and the Asean region, including Vietnam, Indonesia, Singapore and the Philippines. The goal is to increase total export volumes to 360,000 metric tons in 2025, with an emphasis on value-added products, such as liquid sugar and premixes, from MSM Johor. Looking ahead, MSM Malaysia approaches 2025 with cautious optimism, supported by the progress achieved over the past year and the solid foundation established through its ongoing transformation. The company's priority will be to unlock greater operational efficiency while driving strategic growth initiatives to strengthen long-term sustainability. A key focus will be on boosting overall sales through enhanced domestic and export strategies, including targeted collaborations and partnerships. Separately, in a Bursa Malaysia filing yesterday, MSM Malaysia noted that the company aims to sustain growth amidst geopolitical challenges and market volatility. MSM Malaysia said it is closely monitoring market dynamics as the sugar industry continues to face challenges driven by persistently high input costs and volatile raw sugar prices, which are influenced by fluctuating global production. This is particularly heightened by the increased geopolitical tensions and ongoing trade wars, which may further disrupt global supply chains and foreign exchange rates. To address these risks, MSM Malaysia is reinforcing its domestic market position while managing export pricing pressures. The group is also leveraging steady domestic demand and actively pursuing opportunities in value-added products to diversify revenue streams. MSM Malaysia said engagement with government stakeholders remains a priority. The company is working to finalise a sustainable pricing mechanism for the domestic retail segment and advocating for effective controls on imported refined sugar. These measures are essential to support national food security and ensure the long-term sustainability of Malaysia's sugar industry.
The Star
2 days ago
- The Star
Customs uncovers illicit ciggy stash in abandoned Cheras house
SEPANG: An abandoned house in Cheras was found to have been used as a store for illicit cigarette stash during an inspection by the Customs Department. KL International Airport Customs director Zulkifli Muhammad, at a press conference at the department headquarters here on Thursday (June 19), said that the find was made on May 22 in Cheras. 'The building didn't even have doors on it. Inspections led to the discovery of 1,878,800 cigarettes of various brands, and 377kg of tobacco that we believed had yet to be taxed. 'The value of the cigarettes was placed at RM187,880, with duties and taxes worth RM1.26mil. The tobacco was estimated to be valued at RM75,400, with taxes valued at RM43,618.90,' he said. He added that the building was still under investigation including tracing down its owner Another case highlighted saw around 1.44mill of ganja buds seized and a local male suspect arrested. The suspect was caught on April 17 after he found that he had been blacklisted when attempting to leave the country for a holiday. 'The suspect and his baggage were then handed over to the Customs department for security checks. 'Scans on his bag showed that he had been carrying around 14.653kg of ganja buds. He had also attempted to run away but was stopped by Customs officers,' he said, adding that the man has since been charged in court.
Barnama
5 days ago
- General
- Barnama
Urban Renewal Initiative Offers New Hope To Flat Dwellers
T he parking area at the Kuchai Jaya Flats in Seputeh here is riddled with overgrown bushes and potholes, as well as puddles of stagnant black water which emit a nauseating stench. It turns out that the foul-smelling water is caused by leaking sewage pipes from the residential units in the four six-storey apartment blocks built during the 1980s. Cracked walls, dark corridors and clogged drains are also a common sight throughout the area. 'We call this place 'Jumanji Flats',' shared Saiful, 33, a resident of the low-cost flats, when met by Bernama. Saiful has been renting a unit there for RM350 a month for the past 10 years and, according to him, the condition of the flats and facilities had deteriorated over the years due to a complete lack of maintenance. 'There is a lift but as far as I know, it has been out of order for decades,' said Saiful, who lives on the fifth floor with his heavily pregnant wife. 'I just hope my wife doesn't end up giving birth to our first child on the stairs,' he joked. PROPERTY VALUE DECLINES Kuchai Jaya Flats residents' representative Hamid Kadir, 55, who has lived there for the past 30 years, said to his knowledge, two people died of dengue a few years ago. 'When someone dies, we have to carry the body down the stairs using a stretcher,' said Hamid, who bought his unit for RM20,000 back in the 1990s. Gazing at the fairly new 42-storey condominium located just 50 metres away from his block, he added, 'Back then, this flat (Kuchai Jaya Flats) symbolised affordable housing.' Although located only about nine kilometres from downtown Kuala Lumpur, the Valuation and Property Services Department estimates the value of a unit at Kuchai Jaya Flats at between RM75,000 and RM120,000. At the neighbouring condominium, units are priced at around RM800,000 each, with a minimum rental rate of RM1,500. ABANDONED FLATS LURE DRUG ADDICTS The same fate has also befallen the Selangor State Development Corporation (PKNS) public flats at Jalan Kuching here – a 15-block, four-storey housing complex comprising 600 residential units. According to its residents' association treasurer Ridzwan Mohd Ali, 61, the condition of the area deteriorated after 10 blocks, which had served as army quarters, were vacated in 2008. The parking area at Kuchai Flat, which is only covered with dirt and gravel, is full of holes and puddles of black water. 'Those blocks have since been left abandoned and are filled with overgrown weeds. They have, in fact, turned into hotspots for criminal and immoral activities. There are drug dens over there… stolen goods are also said to be stored there,' he claimed. A survey by Bernama indicated that the area may be used as shelter by foreigners and the homeless, evidenced by the presence of old mattresses, broken sofas, worn luggage, discarded clothes and makeshift kitchens, despite the lack of electricity and water supply. According to Ridzwan, two people have been found dead in two of the blocks due to drug overdoses. Having lived there for the past 45 years, Ridzwan said these issues have created a sense of unease among the nearly 1,000 residents still living in the remaining five blocks of flats. He, however, acknowledged that the residents have become hopeful after learning that the area is among 139 sites earmarked for redevelopment by Kuala Lumpur City Hall (DBKL) under the government's urban renewal plan, aimed at revitalising aging urban areas in Malaysia, addressing the issue of abandoned or structurally unsafe buildings, and creating more spacious and livable homes for residents. So far, he said over 70 percent of residents at their scheme have agreed to participate in the redevelopment project, under which they will be given replacement units. He also expressed hope that their new homes will have a minimum size of 800 square feet (sq ft), given that their existing units range from just 450 to 650 sq ft each. ONE RAZAK MANSION A successful example of an urban renewal project undertaken by DBKL is 1 Razak Mansion in Salak Selatan here. Where residents once lived in cramped homes of just 399 to 504 sq ft in a public housing scheme built in the 1960s, they now enjoy more comfortable three-bedroom units measuring 800 sq ft each. Their new housing scheme, located about 300 metres from the original site, also includes shops and a market, and facilities such as a surau, preschool, Islamic kindergarten and multi-purpose hall. One of the successes of the urban redevelopment program is 1 Razak Mansion in South Salak here. 'Our old units only had one bedroom and it was very uncomfortable. Now, it's much better here. There are also plenty of facilities for us,' said resident Azni Saharin, 71, who is also a teacher at the Islamic kindergarten. 1 Razak Mansion Management Corporation chairman Anthony Tan Gim Guan said the redevelopment project involving 658 residential units was successfully implemented after 100 percent of the original residents agreed to the proposed replacement units. The project began in 2014 and residents received their house keys in March 2017. He admitted that there were various challenges initially, especially in convincing residents about the new homes that would be built. However, these obstacles were overcome through a series of negotiations, engagement sessions and signing of agreements. 'My advice is that communities need to be open to negotiating with the government and developers. They must also ensure they are well informed about all processes and agreements related to urban renewal,' he said. Tan also hoped the government would consider the affordability of monthly maintenance fees when drafting urban renewal laws as residents now have to pay hundreds of ringgit in monthly maintenance fees compared to just tens of ringgit when they were living in the old flats. Referring to the original residents of Razak Mansion, he said nearly 80 percent were from the B40 income group, earning just enough to get by, with many of them being senior citizens who were no longer working. REDEVELOPMENT POTENTIAL Based on statistics compiled by the Department of Town and Country Planning (PLANMalaysia) under the Ministry of Housing and Local Government, 534 potential redevelopment sites have been identified across Peninsular Malaysia. Of that number, 139 are located in Kuala Lumpur, with an estimated gross development value of RM355.3 billion. The Department of Town and Country Planning (PLANMalaysia) stated that 534 sites and buildings in cities in Peninsular Malaysia are in a dilapidated condition and have the potential to be redeveloped. Currently, urban renewal projects are subject to Section 57 of the Strata Titles Act 1985, which requires a 'unanimous resolution' from property owners (in sites identified for redevelopment) before the management body can assume the role of trustee to implement urban renewal works. This means all property owners must agree before redevelopment can proceed. To enhance the efficiency of urban renewal efforts, the Ministry of Housing and Local Government is drafting the Urban Renewal Bill, which is expected to be tabled in Parliament this year. The Bill proposes to lower the threshold for owners' consent to redevelop properties. The ministry is suggesting a consent threshold based on the age of the buildings concerned: 75 percent for buildings over 30 years old, 80 percent for those under 30 years old, and 51 percent for buildings deemed dilapidated or unsafe for occupancy. Housing and Local Government Minister Nga Kor Ming and several lawmakers recently went on an 'urban renewal expedition', visiting two redevelopment project sites – Taman Desa Bakti in Selayang and Kuchai Jaya Flats Block A – and two completed projects, 1 Razak Mansion and Residensi Kerinchi in Bangsar South. Commenting on the proposed Urban Renewal Act, Nga stressed that, contrary to claims by the opposition, the law is not meant to seize people's rights. He said the main obstacle to urban renewal efforts currently lies in securing residents' consent. 'If 99 percent agree but one person refuses, the entire project is cancelled. It's unfair to residents stuck in old flats with broken lifts and plummeting property values,' he said, citing the example of Desa Kudalari Apartments at Jalan Tun Razak here, where redevelopment has stalled because of a single objection. SAFETY RISKS The new Act is based on the Urban Renewal Implementation Guidelines, which were approved by the Cabinet on Aug 30, 2023. According to Nga, these guidelines did not 'fall from the sky' but have existed since 2013 and were not implemented by the previous administration. The community must be prepared to negotiate with the government and developers, especially regarding the negotiation and agreement process for PSB (Urban Renewal). 'All the ministers before me only agreed in principle but none had the political will to carry it through. Don't stop the MADANI government from helping the people,' he said. In an interview with Bernama in February this year, PLANMalaysia director-general Datuk Dr Alias Rameli said the government has no intention of 'sidelining communities and forcibly seizing their homes or land' through the proposed Urban Renewal Act. The Institute of Real Estate and Housing Developers Association was also reported as saying that property values would continue to decline in the absence of a clear and comprehensive urban renewal plan, which could drag urban communities into a cycle of poverty that is difficult to reverse. According to the institute, urban renewal must be implemented to ensure the safety of residents as many strata properties are now in a state of disrepair, posing serious risks to their lives as well as their well-being. 'Delaying action on urban decay can lead to severe social and economic problems, such as rising crime rates, economic downturns, inequality and declining property values,' it said in a statement. It also noted that warning signs of urban decay are already visible in several areas of the capital, particularly involving old flats suffering from poor maintenance.
New Straits Times
5 days ago
- General
- New Straits Times
'Jumanji Flats' residents endure squalor, pin hopes on redevelopment plans
KUALA LUMPUR: The parking area at the Kuchai Jaya Flats in Seputeh here is riddled with overgrown bushes and potholes, as well as puddles of stagnant black water which emit a nauseating stench. It turns out that the foul-smelling water is caused by leaking sewage pipes from the residential units in the four six-storey apartment blocks built during the 1980s. Cracked walls, dark corridors and clogged drains are also a common sight throughout the area. "We call this place 'Jumanji Flats'," shared Saiful, 33, a resident of the low-cost flats, when met by Bernama. Saiful has been renting a unit there for RM350 a month for the past 10 years and, according to him, the condition of the flats and facilities had deteriorated over the years due to a complete lack of maintenance. "There is a lift but as far as I know, it has been out of order for decades," said Saiful, who lives on the fifth floor with his heavily pregnant wife. "I just hope my wife doesn't end up giving birth to our first child on the stairs," he joked. PROPERTY VALUE DECLINES Kuchai Jaya Flats residents' representative Hamid Kadir, 55, who has lived there for the past 30 years, said to his knowledge, two people died of dengue a few years ago. "When someone dies, we have to carry the body down the stairs using a stretcher," said Hamid, who bought his unit for RM20,000 back in the 1990s. Gazing at the fairly new 42-storey condominium located just 50 metres away from his block, he added, "Back then, this flat (Kuchai Jaya Flats) symbolised affordable housing." Although located only about nine kilometres from downtown Kuala Lumpur, the Valuation and Property Services Department estimates the value of a unit at Kuchai Jaya Flats at between RM75,000 and RM120,000. At the neighbouring condominium, units are priced at around RM800,000 each, with a minimum rental rate of RM1,500. ABANDONED FLATS LURE DRUG ADDICTS The same fate has also befallen the Selangor State Development Corporation (PKNS) public flats at Jalan Kuching here – a 15-block, four-storey housing complex comprising 600 residential units. According to its residents' association treasurer Ridzwan Mohd Ali, 61, the condition of the area deteriorated after 10 blocks, which had served as army quarters, were vacated in 2008. "Those blocks have since been left abandoned and are filled with overgrown weeds. They have, in fact, turned into hotspots for criminal and immoral activities. There are drug dens over there… stolen goods are also said to be stored there," he claimed. A survey by Bernama indicated that the area may be used as shelter by foreigners and the homeless, evidenced by the presence of old mattresses, broken sofas, worn luggage, discarded clothes and makeshift kitchens, despite the lack of electricity and water supply. According to Ridzwan, two people have been found dead in two of the blocks due to drug overdoses. Having lived there for the past 45 years, Ridzwan said these issues have created a sense of unease among the nearly 1,000 residents still living in the remaining five blocks of flats. He, however, acknowledged that the residents have become hopeful after learning that the area is among 139 sites earmarked for redevelopment by Kuala Lumpur City Hall (DBKL)under the government's urban renewal plan, aimed at revitalising aging urban areas in Malaysia, addressing the issue of abandoned or structurally unsafe buildings, and creating more spacious and livable homes for residents. So far, he said over 70 percent of residents at their scheme have agreed to participate in the redevelopment project, under which they will be given replacement units. He also expressed hope that their new homes will have a minimum size of 800 square feet (sq ft), given that their existing units range from just 450 to 650 sq ft each. ONE RAZAK MANSION A successful example of an urban renewal project undertaken by DBKL is 1 Razak Mansion in Salak Selatan here. Where residents once lived in cramped homes of just 399 to 504 sq ft in a public housing scheme built in the 1960s, they now enjoy more comfortable three-bedroom units measuring 800 sq ft each. Their new housing scheme, located about 300 metres from the original site, also includes shops and a market, and facilities such as a surau, preschool, Islamic kindergarten and multi-purpose hall. "Our old units only had one bedroom and it was very uncomfortable. Now, it's much better here. There are also plenty of facilities for us," said resident Azni Saharin, 71, who is also a teacher at the Islamic kindergarten. 1 Razak Mansion Management Corporation chairman Anthony Tan Gim Guan said the redevelopment project involving 658 residential units was successfully implemented after 100 percent of the original residents agreed to the proposed replacement units. The project began in 2014 and residents received their house keys in March 2017. He admitted that there were various challenges initially, especially in convincing residents about the new homes that would be built. However, these obstacles were overcome through a series of negotiations, engagement sessions and signing of agreements. "My advice is that communities need to be open to negotiating with the government and developers. They must also ensure they are well informed about all processes and agreements related to urban renewal," he said. Tan also hoped the government would consider the affordability of monthly maintenance fees when drafting urban renewal laws as residents now have to pay hundreds of ringgit in monthly maintenance fees compared to just tens of ringgit when they were living in the old flats. Referring to the original residents of Razak Mansion, he said nearly 80 percent were from the B40 income group, earning just enough to get by, with many of them being senior citizens who were no longer working. Based on statistics compiled by the Department of Town and Country Planning (PLANMalaysia) under the Ministry of Housing and Local Government, 534 potential redevelopment sites have been identified across Peninsular Malaysia. Of that number, 139 are located in Kuala Lumpur, with an estimated gross development value of RM355.3 billion. Currently, urban renewal projects are subject to Section 57 of the Strata Titles Act 1985, which requires a "unanimous resolution" from property owners (in sites identified for redevelopment) before the management body can assume the role of trustee to implement urban renewal works. This means all property owners must agree before redevelopment can proceed. To enhance the efficiency of urban renewal efforts, the Ministry of Housing and Local Government is drafting the Urban Renewal Bill, which is expected to be tabled in Parliament this year. The Bill proposes to lower the threshold for owners' consent to redevelop properties. The ministry is suggesting a consent threshold based on the age of the buildings concerned: 75 per cent for buildings over 30 years old, 80 per cent for those under 30 years old, and 51 per cent for buildings deemed dilapidated or unsafe for occupancy. Housing and Local Government Minister Nga Kor Ming and several lawmakers recently went on an 'urban renewal expedition', visiting two redevelopment project sites – Taman Desa Bakti in Selayang and Kuchai Jaya Flats Block A – and two completed projects, 1 Razak Mansion and Residensi Kerinchi in Bangsar South. Commenting on the proposed Urban Renewal Act, Nga stressed that, contrary to claims by the opposition, the law is not meant to seize people's rights. He said the main obstacle to urban renewal efforts currently lies in securing residents' consent. "If 99 per cent agree but one person refuses, the entire project is cancelled. It's unfair to residents stuck in old flats with broken lifts and plummeting property values," he said, citing the example of Desa Kudalari Apartments at Jalan Tun Razak here, where redevelopment has stalled because of a single objection. SAFETY RISKS The new Act is based on the Urban Renewal Implementation Guidelines, which were approved by the Cabinet on Aug 30, 2023. According to Nga, these guidelines did not "fall from the sky" but have existed since 2013 and were not implemented by the previous administration. "All the ministers before me only agreed in principle but none had the political will to carry it through. Don't stop the MADANI government from helping the people," he said. In an interview with Bernama in February this year, PLANMalaysia director-general Datuk Dr Alias Rameli said the government has no intention of "sidelining communities and forcibly seizing their homes or land" through the proposed Urban Renewal Act. The Institute of Real Estate and Housing Developers Association was also reported as saying that property values would continue to decline in the absence of a clear and comprehensive urban renewal plan, which could drag urban communities into a cycle of poverty that is difficult to reverse. According to the institute, urban renewal must be implemented to ensure the safety of residents as many strata properties are now in a state of disrepair, posing serious risks to their lives as well as their well-being. "Delaying action on urban decay can lead to severe social and economic problems, such as rising crime rates, economic downturns, inequality and declining property values," it said in a statement. It also noted that warning signs of urban decay are already visible in several areas of the capital, particularly involving old flats suffering from poor maintenance. – BERNAMA
