Boustead sets aside RM700m as capex


PETALING JAYA: Diversified group BOUSTEAD HOLDINGS BHD has set aside RM700mil as capital expenditure (capex) excluding acquisition allocation for the financial year ending Dec 31, 2015. 

Deputy chairman and group managing director Tan Sri Lodin Wok Kamaruddin said the capex, whhich was similar to last year, was to further strengthen all its six divisions, with the focus on pharmaceutical, property and plantations. 

He said on Monday the group pharmaceutical arm would be the driver for the group earnings this year due to its recession-proof business. 

He was speaking to reporters after Boustead's AGM.

Pharmaniaga Bhd has set aside RM40mil as capex this year with plans to expand its business overseas.
 
Lodin said although the outlook for Pharmaniaga was bright but he anticipated some impact with the Trans-Pacific Partnership (TPP).

The TPP trade deal is being negotiated between the US and eleven other Pacific Rim nations: Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. 

The agreement is slated to further expand its membership, potentially to all 21 Asia Pacific APEC nations. 

It was speculated the TPP agreement would extended patent monopolies and delayed generic competition that would impose challenging business environment for companies like Pharmaniaga.


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