Summary of business stories from June 21 to 26

Oil services and engineering company Serba Dinamik Holdings Bhd is taking legal action against its external auditor KPMG PLT for alleged negligence, breach of contract and breach of statutory duty.

Top read stories from June 21 to 26 include Astro, Serba Dinamik, EcoWorld Malaysia, BSL Corp, Sunway REIT and real property gains tax

Corporate News

Astro signs Netflix as new streaming partner

• Astro and Netflix have entered into a partnership that will see the streaming service brought on to Astro's platform.
• The content providers announced in a joint statement that Astro customers will soon be able to access Netflix on their connected Ultra Boxes, first at launch, and subsequently on Ulti Boxes.
• The partnership offers their Malaysian customers greater convenience by having Netflix with their Astro subscription, which will provide easy access for payment in a single bill at the best value.

See you in court

• Oil services and engineering company Serba Dinamik Holdings Bhd is taking legal action against its external auditor KPMG PLT for alleged negligence, breach of contract and breach of statutory duty.
• Since then, Serba Dinamik chairman Datuk Mohamed Ilyas Pakeer Mohamed said the company has had to endure a lot of adverse market speculation that had resulted in, among other things, a significant drop in its share price and overall market capitalisation.
• Ilyas said the negative news had resulted in the company's share price taking a beating and wiping out more than RM3bil from Serba Dinamik's market capitalisation.

Serba Dinamik MD: Daily operations running as usual, group revamp if needed

• Despite the daunting challenges, the day-to-day operations of global integrated engineering services provider Serba Dinamik Holdings Bhd are still running as usual and remain relevant as an intact Bumiputera company.
• Group managing director and chief executive officer Datuk Dr Mohd Karim Abdullah acknowledged that the issue of external auditor needed the management's attention, but each branch of the group's business remained focused on their respective roles.
• He said Serba Dinamik was also in discussions with several international banks to get business loans so that every plan could be implemented.
• Mohd Karim said the companies in the Serba Dinamik group continue to show interesting developments in every branch of business at home and abroad.

EcoWorld Malaysia registers strong sales, higher earnings in Q2

• Eco World Development Group Bhd (EcoWorld Malaysia) said sales more than doubled in the second quarter ended Apr 30 due to strong take-ups on newly launched property projects.
• Total seven-month sales has reached RM2.53bil, the company said, surpassing the RM2.3bil sales achieved in FY2020.
• EcoWorld Malaysia is targeting sales of RM2.875bil in FY2021.

Sanichi MD, PNE PCB ED launch takeover of BSL Corp

• Sanichi Technology Bhd managing director Datuk Seri Pang Chow Huat and PNE PCB Bhd executive director Ho Jien Shiung have teamed up to launch a takeover of BSL Corp.
• They had acquired a 51.72% stake or 49.98 million shares in BSL Corp for RM57.47mil or RM1.15 a share from Esteem Role Sdn Bhd in the morning session on Wednesday in an off-market deal.
• Pang is also the founder of Sanichi Technology Bhd which is involved in property development and fabrication of precision plastic injection moulds and technology.

Economy

Govt approves RM42.2b solar module manufacturing investment

• The government has approved a manufacturer's licence and incentives under the National Economic Recovery Plan (PENJANA) for the design, development and manufacturing of solar cells and solar modules in Malaysia for Risen Energy Co Ltd with a total investment of RM42.2 billion.
• Prime Minister Tan Sri Muhyiddin Yassin said the investment through Risen Solar Technology Sdn Bhd for a period of five years from 2021 to 2025 is expected to generate 3, 000 jobs for Malaysians.
• Muhyiddin said the presence of Risen Solar would make Malaysia an integrated production hub for solar products.

Banking

Sunway REIT unit picks OCBC to coordinate RM10b debt note

• Sunway Real Estate Investment Trust's (Sunway REIT) unit has mandated OCBC Bank (Malaysia) Bhd to coordinate its RM10bil debt note programme.
• SunREIT Unrated Bond Bhd (SUB), which is a special purpose vehicle incorporated for the fundraising on behalf of Sunway REIT, picked OCBC Malaysia as the sustainability structuring coordinator of the unrated medium term notes (MTN) programme.
• Sunway REIT is one of the largest diversified real estate investment trusts in Malaysia, with a portfolio of 18 strategically located assets across award-winning integrated townships in key locations within the Klang Valley, Penang and Perak.

SMBC Malaysia appoints Wan Fadzmi as chairman

• Sumitomo Mitsui Banking Corporation Malaysia Bhd (SMBC Malaysia) has appointed Datuk Wan Mohd Fadzmi Che Wan Othman Fadzilah as its chairman.
• It said on Monday the appointment of Wan Fadzmi, 56, was effective on May 15.
• He was initially appointed as an independent non-executive director (INED) on April 1, 2018.

BNM's international reserves rise to US$111bil as at June 15

• Bank Negara Malaysia's (BNM) international reserves stood at US$111.0 billion as at June 15, 2021, up from US$110.9 billion as at May 31.
• In a statement today, the central bank said the reserves position is sufficient to finance 8.2 months of retained imports and is 1.1 times total short-term external debt.
• It said the main components of the international reserves were foreign currency reserves (US$102.3 billion), International Monetary Fund reserves position (US$1.4 billion), special drawing rights (SDRs) (US$1.2 billion), gold (US$2.1 billion), and other reserve assets (US$4.0 billion).

Taxation

Understanding real property gains tax

• Whether you’re a property investor, an owner simply looking to sell your current home to purchase your dream home or a corporate group engaging in a corporate restructuring exercise, it is important to be aware of all costs associated with a real estate transaction including the real property gains tax (RPGT) in Malaysia.
• RPGT is a form of capital gains tax levied on profits arising from the disposal of real property or real property company (RPC) shares. Real property is defined to mean any land situated in Malaysia and any interest, option and other right in or over such land.
• The effect of the definition of real property is that RPGT can be levied on interests or ownerships which amount to less than a full title to the land.