16 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,”
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
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 sustain-
ability over the long-term. – Bernama

Vita Cat to Rais (second

TM in talks with 13 firms

from right), Raja

expand to Nong Chik (third

from left), Mohd

Mid-East Radzi (fourth

from left) and
Zamzamzairani
KUALA LUMPUR: Edaran Vita (third from

on broadband services
Cat Sdn Bhd, a halal cat food right) press the
producer, plans to expand symbolic panel
its market in the Middle East to mark the
after making inroads in Dubai commencement
recently. of the project.
Its head of business
development, Halim Baba,

said the company proposed
to take part in trade mis-
sions 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 Ma-
laysian 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 en-
couraging,” 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 vet-
erinary authorities in Kangar in
Perlis, and Kulim and Alor Setar
in Kedah,” he said. – Bernama
BERNAMAPIX
KUALA LUMPUR: Telekom Malaysia Bhd
(TM) is in discussions with 13 potential com-
panies for its high-speed broadband (HSBB)
wholesale services.
TM group chief executive officer Datuk
Zamzamzairani Mohd Isa said the HSBB
When it wholesale service was made available from
pays to last month and negotiations were ongoing
follow with access-seekers on a one-to-one basis.
TM’s wholesale offerings comprise three
rules services – HSBB (transmission), HSBB (ac-
pg 18 cess) and HSBB (connection) services.
Zamzamzairani said the companies con-
cerned 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 re-
quirements. 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 com-
mencement 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 on Sept 16 last year, TM would invest RM8.9 broadband for general population delivers at
Ismail, Bangsar, Subang Jaya and Shah Alam billion of its own money over 10 years to network speeds of 384Kbps (kilobit/second) to
was expected to be completed by year-end. finance the HSBB network infrastructure roll- four Mbps,” he said.
“Fibre access work related to the coming out, while the government was co-investing Zamzamzairani said HSBB roll-out would
HSBB network is now in full swing,” he said. RM2.4 billion, making up the total of RM11.3 be focused on Zone One, a high economic
Zamzamzairani said TM was also targeting billion. impact areas, namely, Inner Klang Valley,
HSBB retail service commercial roll-out for “A total of approximately 1.3 million Iskandar Malaysia and key industrial zones
consumers and businesses in the first quarter premises nationwide will have access to throughout the country.
of next year. HSBB by 2012. “The HSBB is expected to contribute 0.6%
He said under the Public Private Partner- “HSBB offers bandwidth at network speeds to gross domestic product and create 100,000
ship agreement with the government, signed of 10 megabits/second (Mbps) and above while jobs by 2017,” he said. – Bernama

Handal Resources to expand business regionally

KUALA LUMPUR: Handal Re-
sources Bhd, an integrated offshore
crane service and manufacturing
provider in the oil and gas indus-
try, 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 chair-
man 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 mil-
lion 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 contribut-
ing 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 identi-
fied 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 oversub-
scribed despite the current cau-
tious 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 im-
pact 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 Institute-
licensed 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