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Agreement for first integrated phosphate complex in SCORE <b>...</b> Berita Sarawak - News 2 Sarawak

Agreement for first integrated phosphate complex in SCORE <b>...</b>

Posted: 31 Dec 2013 09:33 AM PST

KUCHING: Cahya Mata Sarawak Bhd (CMS) via its wholly-owned subsidiary, Samalaju Industries Sdn Bhd (SISB) has entered into a shareholders' agreement with Malaysian Phosphate Venture Sdn Bhd (MPVSB), Malaysian Phosphate Additives (Sarawak) Sdn Bhd (MPASSB) and Arif Enigma Sdn Bhd (AESB) for the development of a phosphate plant.

This plant will be Malaysia and Southeast Asia's first integrated phosphate complex and will be located in Samalaju Industrial Park (SIP), an area within the Sarawak Corridor of Renewable Energy (SCORE).

This is to take advantage of the competitively priced long term power supply prices and supporting infrastructure that have been successfully attracting other energy intensive industries to SCORE's SIP.

CMSB's group managing director, Datuk Richard Curtis, said: "CMSB's investment in this project represented its second investment into SCORE located energy intensive industries and was of special significance in that this phosphate Complex embodied two firsts.

"This complex is the first one of its kind in Malaysia and indeed Southeast Asia. Secondly, it is the first non-metal or alloy based plant in SCORE's SIP, thus taking SCORE and CMSB into a dynamic new industrial sector that offers long term sustainable demand growth."

Curtis noted that phosphorus is an essential base nutrient for animal and plant growth with no substitute and is widely used in food, feed and fertiliser products.

He added that demand is growing due to population growth, changing dietary preferences and the increased use of fertilisers.

Meanwhile, MPVSB's executive director, Lim Lee Wan, said: "The success of our first phosphate additives plant in Lumut, Perak has proved the value and scaleability of our particular manufacturing processes.

"Our Sarawak phosphate complex will enable Malaysia to both reduce imports of phosphate products and to expand the production of halal animal feed and fertilisers. For Malaysia's food and fertiliser industries, this will enhance both supplies security and price competitiveness as well as establish a platform for future export orientated downstream industries."

The complex, with an approximate annual production capacity of 500,000mt of phosphate and related products, will be built on approximately 350 acres of land strategically located near to Samalaju's deep water port which is currently under construction.

Construction of the complex is expected to start in 1Q2014 and to be operational in phases starting 1Q2016 and to be fully commissioned by 2Q2018.

It will employ nearly 1,000 skilled workers and staff and will involve an estimated capital expenditure of RM1.04 billion, which will be funded via a mixture of shareholders' equity and long term bank funded debt, which is currently being arranged.

Concurrent with the signing of the Shareholders' Agreement, MPASSB has also finalised the Power Purchase Agreement Term Sheet (PPA Term Sheet) with Syarikat Sesco Bhd for the supply of the 150MW of power required.

The parties are expected to sign the PPA Term Sheet early this month, and this will be followed up with a Power Purchase Agreement between the parties, which is expected to be signed within the first quarter of the year.

Meanwhile, MPASSB has also entered in a Sale and Purchase Agreement with SISB for the purchase of approximately 350 acres of land in SIP to be used for the Complex.

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Rupiah to rupee lead worst year for Asian currencies since 2008 <b>...</b>

Posted: 31 Dec 2013 09:16 AM PST

ASIAN currencies headed for their worst year since the 2008 global financial crisis as overseas investors fled emerging markets in anticipation of the Federal Reserve's decision to taper its record stimulus.

Indonesia's rupiah led losses in the region with its biggest annual decline since 2000, India's rupee weakened for a third year and Thailand's baht fell to the lowest level since 2010 amid concerns about current-account balances and increased political risk before elections due in 2014. China's yuan rose to a 20-year high on optimism the government is stepping up efforts to boost the currency's convertibility and South Korea's won advanced for a second year.

The Bloomberg-JPMorgan Asia Dollar Index declined 1.9 per cent to 115.98 this year as of 11:50am in Singapore, the most since a 5.9 per cent slump in 2008. The  gauge of 10 regional currencies excluding the Japanese yen climbed 2.6 per cent in 2012. The Bloomberg US Dollar Index advanced 3.4 per cent in 2013, the most in five years.

"We see Asian currencies weakening modestly against the dollar next year as the US fundamentals continue to improve and data there could surprise on the upside" in support of tapering, said Irene Cheung, a currency strategist in Singapore at Australia & New Zealand Banking Group Ltd. "There's no clarity yet" as Indonesia, Thailand and India hold elections next year, she said.

The rupiah lost 21 per cent to 12,180 per dollar, the rupee dropped 11 per cent to 61.8363 and the baht depreciated 6.8 per cent to 32.82. The Philippine peso fell 7.5 per cent, its worst drop since 2008, to 44.38.

Indonesia's current-account deficit reached a record 4.4 per cent of gross domestic product in the second quarter, before narrowing to 3.8 per cent in the third.

India's shortfall was an unprecedented 4.8 per cent of GDP in the year ended March 2013, and the central bank estimates the gap in the broadest measure of trade will decline below 3 per cent this fiscal year.

Thailand is set February 2 for polls after anti-government protests that began in late October forced Prime Minister Yingluck Shinawatra to dissolve parliament this month and call for a snap election.

India must hold national elections before May while Indonesia must hold presidential election by July as Susilo Bambang Yudhoyono's term expires.

The Asia Dollar Index suffered the year's worst month in May, falling 1.4 per cent, after Fed Chairman Ben S. Bernanke told lawmakers the US central bank may trim its US$85 billion of monthly bond purchases once it's confident of a sustained recovery in the world's largest economy. The Fed on Dec. 18 announced it will reduce its debt buying to US$75 billion from January, while pledging to keep interest rates near zero.

Net inflows into emerging Asia's equity and bond funds dwindled to US$3.6 billion in 2013 from US$44.2 billion last year, according to ANZ, which cited EPFR GLobal data.

Investors were net sellers of a total of US$8 billion of stocks in Indonesia and Thailand, exchange data show. — Bloomberg

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Neutral outlook for shipping sector in 2014 - The Borneo Post Online

Posted: 31 Dec 2013 09:26 AM PST

by Ronnie Teo ronnieteo@theborneopost.com. Posted on January 1, 2014, Wednesday

KUCHING: With the Baltic Dry Index perking up in December, 2014 is poised to be a better year for overall freight rates as demand and supply within the shipping sector will be more balanced.

The dry bulk sector's valuation has somewhat priced in optimism of a recovery, with tankers expected to catch up eventually, highlights RHB Research Institute Sdn BHd (RHB Research), although caution is advocated due to weaker macro prospects.

"In December, the Baltic Dry Index rose to its highest level in 27 months on the back of higher imports of iron ore in November (increase 18 per cent year on year (y-o-y)) and coal from China," outlined analyst Ahmad Maghfur Usman in his note yesterday.

"This rising demand also boosted iron ore and coal prices.

"Dry freight rates in the spot market have climbed 40 to 70 per cent in the past 30 days, with Handymax and Supramax seeing strong demand.

"The spike in rates for the smaller sized vessels will benefit maybulk given its 55 per cent exposure in these vessels by deadweight tonnage (DWT)."

The six per cent growth in supply of total tonnage of dry bulk vessels in 2013 is expected to marginally exceed the five per cent growth in tonnage demand.

Thus, Ahmad Maghfur believed 2014 is poised to be a better year for overall freight rates as demand and supply will be more balanced.

Meanwhile, crude tanker rates remain volatile, with no clear indications of recovering in the near term as overall demand for oil continues to remain weak amid an oversupply of crude tankers.

The research team behind MIDF Amanah Investment Bank Bhd (MIDF Research) affirmed the challenging outlook for crude tanker shipping amid the overcapacity issue which is still prevalent.

"The booming of US shale oil production had eased the long haul demand of crude oil from the Middle East, impacting VLCC rates," it said.

"In contrast, Aframax chartering rate was relatively steady due to ramp up in US domestic oil production and lightering activities.

"The prospect of product tanker is more promising as the fleet growth was slower at estimated at 2.5 per cent y-o-y for 2013." RHB Research's Ahmad Maghfur added that chemical tankers in Europe are still hit by a surplus of tonnage despite some activities on the Transatlantic Westbound route.

Wood Mackenzie expects China's oil imports to surpass that of the US in 2017, and be the key driver of a recovery in tanker rates by 2015 given that the longer distance from the Atlantic to China will absorb the excess capacity due to higher vessel utilisation.

"Tanker rates are expected to remain volatile in 2014 but we see average rates inching up by 15 per cent in 2014 and 25 per cent in 2015 as the stronger demand eases the over-supply." Looking at the shipping of liquefied natural gas (lng), the rhb research analyst forewarned that the shale gas boom in the us has not only dimmed the outlook for crude tankers but also that for lng shipping.

"We have seen lng buyers show hesitation in signing long term contracts out of fears that lng prices and shipping costs will get cheaper in the future.

"Moreover, the slew of new LNG vessels coming into the market next year will exacerbate the situation and inevitably result in a glut."

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Academy aims to export Sabah hospitality - The Borneo Post Online

Posted: 30 Dec 2013 03:06 PM PST

by Natasha Sim. Posted on December 31, 2013, Tuesday

KOTA KINABALU: Ascot Academy aims to groom its students to international standards next year and provide them with the opportunity to work overseas.

"We want to export Sabahan hospitality," Chief Executive Officer of Ascot Academy, Abdul Razak Egoh, said during the award ceremony at 1Borneo Grand Ballroom yesterday.

However, he said the goal is still in its planning stages.

Egoh added that personnel from Singapore, China and Macau have already approached the academy seeking to employ its graduates.

"These countries have a booming hotelier industry with integrated resorts such as the Venetian and Marina Bay Sands," he said.

Eighty students from across Sabah were awarded with Skill Proficiency Certificates in Basic Housekeeping Services and Basic Food and Beverage Services during the ceremony.

Also in attendance at the event was Deputy Director of the State Human Resources Development Department, Haji Kamlun Haji Pasal.

Egoh said the goal of the institute is to train individuals that are both creative and innovative for the State's hospitality industry.

The awarded vocational certificates are internationally accredited by City and Guilds, a vocational skills training organization based in the United Kingdom.

"Sabah is one of the largest tourist states in Malaysia. Recent reports have stated that Sabah had a 15.3% increase in tourists for the first eight months of 2013 compared to last year," he said.

It is with this indication that the academy targets lower-income background youths below 25 years of age to provide them with skill training needed for work in the hospitality industry.

"Since our operations started in March 2010, we have produced 887 graduates from both long-term and short-term programs, and the success rates for graduates to obtain jobs after graduation is more than 50%," said Egoh.

Meanwhile, Ascot Academy graduates Rolland Lauring, 22, and Prichard Oneal, 19, are grateful to have been immediately offered job positions at respected hotels in the industry prior to graduation.

Rolland will be stepping into his career at Shangri-La's Rasa Ria Resort, Tuaran, while Prichard has accepted an offer to work at YTL Gaya Island Resort.

The duo also received the best student award from the academy for their respective Certificate in Basic Housekeeping Services and Certificate in Basic Food and Beverage Services.

Rolland said that while he had collected work experiences in Peninsular Malaysia, he came back to Sabah to be closer to his family.

"I've always had an interest in the hotel industry so these three months at the academy has been worth it," he said.

Prichard, however, feels that the three months was not enough for training and feels the biggest challenge was that he lacked work experience.

"That's why during my practical I went full blast to adapt to the work conditions and absorb what I needed to learn," he said.

He hopes that his immediate employment will help make things easier for his family of four siblings, whose parents are self-employed.

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