In today’s edition of Evening 5 — Gamuda’s Singapore branch has secured a design and construction contract for Singapore’s West Coast station, worth roughly half-a-billion Singapore dollars. Meanwhile, IOI Prop has bought the W Hotel KL from Tropicana Corp for RM270 million cash.
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00:00 [Music]
00:04 Kemuda Singapore branch has secured a SGD509.568 million
00:09 or SGD1.77 billion design and construction contract
00:13 for the West Coast Station and Tunnel.
00:16 Kemuda says this project marks its first independent venture in Singapore
00:20 without joint venture partners,
00:21 which it says showcases the Group's strong delivery track record in the region
00:25 and solidifying its role as a key player in the city-state's transportation infrastructure development.
00:31 The project is part of Singapore's 15-kilometre Cross-Island Line Phase 2 MRT line,
00:36 which is also Singapore's eighth MRT line, comprising six stations.
00:40 According to Kemuda's post-filing, the contract had been awarded by the Singapore Land Transport Authority
00:45 and includes the construction of one underground station and two tunnels
00:49 covering approximately 1.9 kilometres.
00:52 The commencement is scheduled within the first quarter of 2024, with completion expected by 2032,
00:58 and is anticipated to make a positive contribution to revenue and earnings for FY2024.
01:04 This is Kemuda's second railway project in Singapore after the Dafu Station and Tunnels
01:08 and its third infrastructure project after the Gali Batu multi-storey bus depot.
01:13 Meanwhile, Kemuda reported a net profit of SGD195 million for its first quarter of FY2024,
01:19 a stark difference compared with the SGD1.168 billion it posted in the previous year's corresponding quarter.
01:26 It should be noted this discrepancy was due to the earnings of SGD1 billion it made
01:30 from the sale of its highways last year.
01:32 Quality revenue doubled year-on-year to SGD2.8 billion on the back of higher contribution from its overseas projects.
01:38 It declared a single-tier interim dividend of SGD0.06 per share.
01:42 On its prospects, Kemuda anticipates that this year's performance will be driven
01:46 by overseas construction activities with projects in Australia and Taiwan gaining momentum.
01:51 Kemuda says this is underpinned by its construction order book of SGD26 billion
01:56 and unbilled property sales of SGD6.7 billion.
01:59 Axiata Group has embarked on a plan to shift towards becoming a Servco and Fibreco via
02:10 the structural transformation of its Indonesian subsidiaries XL Axiata and Linknet.
02:15 In a statement, the Telco conglomerate said that both of its Indonesian units had reached
02:19 non-binding agreements to transfer Linknet's fixed broadband business, including its 750,000 customers,
02:26 to XL Axiata and to roll out an additional 2 million new homes passed by Linknet.
02:32 Upon completion, XL Axiata will leverage Linknet's extensive fibre optics network
02:37 with minimal investment and become the second largest fixed broadband provider in Indonesia
02:42 with 1 million customers.
02:44 Meanwhile, Linknet will be able to concentrate on its network development and become a leading
02:48 wholesale fibre co. with plans to invite investors to partner with them.
02:53 Axiata said that XL Axiata and Linknet will proceed to set out a binding agreement for the terms,
02:58 which will be carried out in compliance with prevailing regulations, including that of the
03:03 Indonesian Financial Services Authority related to affiliated transactions and material transactions.
03:09 Group CEO, Car Managing Director Vivek Sud said with strategic priorities clearly outlined,
03:14 Axiata will drive performance improvements and accelerate profitable growth across Indonesia
03:19 and other geographic footprints to deliver on the full potential of the group's digital telcos,
03:25 digital business and infrastructure segments, supported by focused capital allocations.
03:35 IOI Properties Group plans to acquire five-star hotel W Kuala Lumpur located in Jalan Ampang
03:41 for 270 million cash from Tropicana Corp.
03:45 In Tropicana's boss filing, the group said IOI Prop, via its indirect subsidiaries,
03:49 IOI PFCC Hotel and Flora Development, have signed a sale and purchase agreement
03:54 with Tropicana Residences for the proposed disposal.
03:57 Notably, this is the second major acquisition made by Taekun Lee Yeo-seng,
04:02 CEO and IOI Prop major shareholder, after his private firm Shenton 101 emerged as the sole
04:07 bidder to redevelop Singapore's Shenton House for about S$538 million.
04:12 Tropicana highlighted that the proposed disposal of the WKL represents an opportunity for the group
04:18 to immediately unlock the value of its investment asset as the disposal consideration translates
04:23 to a price per key of approximately S$1.8 million and is expected to provide an estimated net pro
04:29 forma gain on disposal of approximately S$7.41 million.
04:33 The original cost of investment in WKL is approximately S$364.01 million,
04:39 comprising the purchase consideration of about S$43.45 million for the land,
04:43 which was completed in 2010, as well as year-to-date development costs amounting
04:48 to around S$320.56 million as at October 31, 2023.
04:53 The WKL stands at 25 storeys with 150 rooms and as at end December 2022,
05:00 its audited net book value was around S$265 million.
05:03 MyEG Lodging NC, a subsidiary of e-government service provider MyEG Services, has signed a
05:15 30-year lease agreement with Penang Development Corp to develop a foreign workers village project
05:21 worth S$108 million. The lease agreement, valued at S$20.4 million, grants MyEG L the rights to
05:27 build and operate the workers' village and related facilities on an 8.39-acre land parcel in
05:32 Batu Kawan Industrial Park 3, Seberang Perai Selatan, Penang. The agreement was signed by
05:38 MyEG non-independent non-executive director Dato' Muhammad Jimi Wong Abdullah and PDC CEO Dato'
05:44 Aziz Bakar, witnessed by Penang Chief Minister Chow Kwon Yu. The primary objective of the project
05:49 is to provide foreign workers accommodation solutions to the private sector, especially
05:54 for small and medium enterprises. Wong said MyEG is honoured to support the cause as the group
05:59 fully understands its significance and impact. He elaborates that to the group, the project is
06:05 more than a housing project, rather it's a comprehensive solution addressing the challenges
06:10 faced by the foreign labour workforce. Meanwhile, Aziz said working on this project with MyEG L
06:15 signifies a substantial step in alleviating housing and security concerns of Penangites
06:20 with a focus on sustainable development. The workers' village will offer medium-density
06:25 residences capable of housing at least 8,000 foreign workers and is expected
06:30 to be completed by the fourth quarter of 2025, according to MyEG.
06:40 Malaysia's tourism sector is anticipated to fully recover by next year with the tourist
06:45 arrival surpassing pre-COVID-19 levels, driven by better flight connectivity and increased visitors
06:50 from China and India, according to Tourism Malaysia Deputy General of Promotion Dato' Musa Yusof.
06:56 Speaking at the Bursa Malaysia HLIB Stratum Focus Series 16 event titled 'Tourism Welcoming a New
07:02 Dawn', Musa cited revenge travel in the post-pandemic era which reflects a surge in tourist
07:08 activity as individuals explore multiple destinations for their holidays. He added that
07:13 more eco-friendly infrastructure and sustainable options are also increasingly sought after among
07:18 tourists who range from business travellers seeking leisure time as well as a more recent
07:23 trend - digital nomads who can work from anywhere. Following a remarkable increase to 14.4 million
07:29 tourist arrivals in the nine months of 2023, Malaysia has revised its full-year forecast
07:34 upwards by 19% to 19.1 million, up from its initial forecast of 16.1 million. Musa adds
07:41 that it is now heading towards the third phase of its strategic plan, namely strengthen and boost,
07:46 as the country gears up for Visit Malaysia 2026. Meanwhile, the current depreciation of the
07:51 Malaysian ringgit against the US dollar will also boost the country's tourism sector,
07:55 said Hong Leong Investment Bank Head of Research Jeremy Goh. According to Goh, in terms of currency
08:00 depreciation, Malaysia is actually second after Thailand in the Southeast Asia region, adding that
08:05 hotel costs here are also cheaper compared to Singapore and Indonesia. According to Tourism
08:10 Malaysia, the post-pandemic top 10 rankings of tourist arrivals to Malaysia is led by visitors
08:15 from Singapore, followed by Indonesia, Thailand, China, Brunei, India, South Korea, Vietnam,
08:22 Australia, and the Philippines.