Five states yet to join national water asset body

January 31, 2013

SEREMBAN, Jan 31 — Five states have yet to join Pengurusan Aset Air Berhad (PAAB), said its chairman Tan Sri Mohd Tajol Rosli Ghazali. 

They are Pahang, Kelantan, Terengganu, Selangor and Kedah. 

“Information and briefing on the advantages of joining PAAB, which manages the development of water for state governments, have been presented to all state governments. But until now, these states are still reluctant to sign up with PAAB. 

“PAAB is prepared to implement all water development, including infrastructure in the state as long as PAAB gets full support from state governments,” he told reporters after the signing of an agreement on the handing over of water asset rights by the Negri Sembilan government to PAAB here yesterday.

Also present were Negri Sembilan Mentri Besar Datuk Seri Mohamad Hasan and PAAB chief executive officer Datuk Ahmad Faizal Abdul Rahman. — Bernama

Minister tells Selangor to go ahead with water concession takeover

Malaysian Insider, January 31, 2013

KUALA LUMPUR, Jan 31 – Selangor can buy out the water concession if the private utility companies contracted to supply it are agreeable, Datuk Seri Peter Chin Fah Kui said today, adding that the federal government will not block the deal.

“To me, this is an ordinary commercial offer which requires consent from the buyer and seller,” the energy, green technology and water minister (picture) told a news conference in Putrajaya.

“If there is an agreement, just let SPAN and myself know,” he added, referring to water company regulator, National Water Services Commission.

Selangor Mentri Besar Tan Sri Abdul Khalid Ibrahim had yesterday announced his Pakatan Rakyat (PR) government will go ahead to take over the state’s water concession within 14 days, and added he had written to Chin’s ministry to inform the latter.

But Chin said today he only knew of Selangor’s plan through news reports.

He said he would reply to the state government once he received the black-and-white.

Selangor has steadfastly opposed the federal government’s Langat 2 project, citing the high costs involved that would force the state to increase the tariffs for water and renege on its pledge to provide the utility cheaply, a policy PR had introduced after winning power in Election 2008.

To facilitate the process, Selangor had first mooted the takeover in 2009, offering to buy Syarikat Bekalan Air Selangor Sdn Bhd (Syabas), Puncak Niaga Sdn Bhd (PNSB), Syarikat Pengeluaran Air Sungai Selangor Sdn Bhd (Splash) and Konsortium ABASS at RM5.7 billion. The offer was rejected.

We are holding on to the word of Tan Sri Muhyiddin Yassin… in Sabak Bernam recently that the federal government will not stop the Selangor government from taking over the state’s water services, says Khalid Ibrahim

Last year, Khalid was reported to have increased the offer to more than RM9 billion to take over all assets and liabilities of the companies, including their bonds.

The tussle for control of treated water supply in the country’s most developed state has become major vote fodder in the run-up to Election 2013 after Syabas raised the alarm last year of a possible crisis in the near future due to near-zero reserves at the state’s water treatment plants.

In recent weeks, Selangor and Syabas again locked horns when each blamed the other for the Klang Valley water crisis.

The blame game between the private company and Khalid’s government has been going on for months and took a new turn earlier this month when the mentri besar mooted a media drive relating their version of events plus a weekly update of the water problem, alleging that the latest disruption was due to Syabas’s poor upkeep leading to faulty pumps in urban Wangsa Maju and Pudu Hulu Baru.

Syabas, in retaliation, placed full-page advertisements in several major newspapers to rebut Selangor’s claims.

The protracted battle for control of water resources Selangor has thrown a spotlight on how much money is at stake in the strategic industry and is potentially another example of Mahathir-era privatisation gone wrong.

It could also tilt the balance in the battle for both Selangor and Kuala Lumpur, depending on who voters ultimately blame for cuts to their water supply. PR parties rule Selangor and control 10 out of 11 parliamentary seats in the Federal Territory.

Selangor says to take over water concession in 14 days

Malaysian Insider

SHAH ALAM, Jan 30 — The Selangor Pakatan Rakyat (PR) government will proceed to take over the state’s water concession within 14 days, Mentri Besar Tan Sri Abdul Khalid Ibrahim said today.

“We have written to the Energy, Green Technology and Water Minister Datuk Seri Peter Chin Kah Fui to notify him that we will take over the state’s water services from the concessionaires within 14 days,” Khalid (picture) told reporters after chairing the state’s executive council meeting here. 

“We are holding on to the word of Deputy Prime Minister Tan Sri Muhyiddin Yassin, who is the chairman of the Cabinet Committee on Water, in Sabak Bernam recently that the federal government will not stop the Selangor government from taking over the state’s water services,” added the PKR leader.

Muhyiddin had reportedly stated as such four days ago when he reiterated that the Langat 2 water treatment plant project will commence despite Selangor’s opposition.

The state has steadfastly opposed the federal government’s Langat 2 project, citing the high costs involved that would force the state to increase the tariffs for water and renege on its pledge to provide the utility cheaply, a policy PR had introduced after winning power in Election 2008.

To facilitate the process, Selangor had first mooted the takeover in 2009, offering to buy Syarikat Bekalan Air Selangor Sdn Bhd (Syabas), Puncak Niaga Sdn Bhd (PNSB), Syarikat Pengeluaran Air Sungai Selangor Sdn Bhd (Splash) and Konsortium ABASS at RM5.7 billion. The offer was rejected.

Last year, Khalid was reported to have increased the offer to more than RM9 billion to take over all assets and liabilities of the companies, including their bonds.

The tussle for control of treated water supply in the country’s most developed state has become major vote fodder in the run-up to Election 2013 after Syabas raised the alarm last year of a possible crisis in the near future due to near-zero reserves at the state’s water treatment plants.

In recent weeks, Selangor and Syabas again locked horns when each blamed the other for the Klang Valley water crisis.

The blame game between the private company and Khalid’s government has been going on for months and took a new turn earlier this month when the mentri besar mooted a media drive relating their version of events plus a weekly update of the water problem, alleging that the latest disruption was due to Syabas’s poor upkeep leading to faulty pumps in urban Wangsa Maju and Pudu Hulu Baru.

Syabas, in retaliation, placed full-page advertisements in several major newspapers to rebut Selangor’s claims. 

The protracted battle for control of water resources Selangor has thrown a spotlight on how much money is at stake in the strategic industry and is potentially another example of Mahathir-era privatisation gone wrong.

It could also tilt the balance in the battle for both Selangor and Kuala Lumpur, depending on who voters ultimately blame for cuts to their water supply. PR parties rule Selangor and control 10 out of 11 parliamentary seats in the Federal Territory.

Noh Omar takes Selangor govt to task for freezing Syabas' capex

STAR, 24 January 2013

TANJONG KARANG: Selangor Barisan Nasional (BN) deputy chairman Datuk Seri Noh Omar has taken the Selangor government to task for freezing Syarikat Bekalan Air Selangor's (Syabas) capital expenditure (Capex).

Noh said the state government should try and solve the water problem rather than taking an action that was politically inclined.

"The people must evaluate the government's action and its unrealistic decision to freeze Syabas' Capex," he told reporters on Thursday.

Noh said the Federal government had allocated RM606 million for the water mitigation programme, replacement of pipes and to build additional treatment plants.

The Federal Government had also provided loans to the Selangor government to carry out water mitigation programmes to resolve the water problems faced by the people of Selangor, he said.

"Mentri Besar Tan Sri Abdul Khalid Ibrahim knows the loan amount, I am not saying how much, but we want him to tell how the money was spent. The Mentri Besar must answer," he said.

Noh said the Federal Government had also set up a special committee to overcome the water issue in Selangor and the committee had agreed with the water restructure plan proposed by the state government.

Selangor turns tap off on Syabas' capital expenditure

Malaysiakini, 24 January 2013

Water concessionaire Syabas' capital expenditure (capex) has been frozen by the Selangor government to prevent the people from being burdened by its "wasteful expenditure", Selangor Menteri Besar Abdul Khalid Ibrahim said.

"This is because every sen spent by Syabas will be reflected in the tariffs paid by the rakyat in their monthly bill.

"Therefore, the Selangor government must defend and prioritise the consumers' interests and value for money. They should not be burdened with increased tariffs from wasteful expenses," Khalid said in a statement issued yesterday.

He reiterated that Selangor's water issues could only be resolved if restructuring was done in accordance with the Water Services Industry Act 2006.

Khalid added that he was still waiting for the federal government's go-ahead to do so.

Projects awarded without open tender

Syabas' capex has been frozen since May 2008, except for emergency works, a move that Syabas and BN say has caused the state to suffer a high proportion of non-revenue water,overworked pumps and other problems.

Although Khalid did not cite any instance of "wasteful expenditure" in his statement, Selangor Times had previously quoted him as saying that it was due to Syabas' practice of awarding projects through direct negotiations.

"The state has procedures. The projects should be awarded based on open tender, not through negotiation," the weekly quoted him as saying on Jan 18.

Kelantan applies for injunction against Petronas

January 22, 2013

KUALA LUMPUR, Jan 22 – The Kelantan state government today applied for an interlocutory injunction to prevent Petroliam Nasional Berhad (Petronas) from paying oil royalties to the Government of Malaysia.

They are seeking to prevent Petronas from paying the five per cent oil royalty on the oil obtained from the state’s coast and sold by the company or its agents, pending the state government’s suit against the national petroleum corporation in 2010.

The application was filed through Messrs Tommy Thomas at the High Court registrars office, naming Petronas and the Government of Malaysia as defendants.

The Kelantan government also applied for an injunction to order Petronas to deposit the oil royalties into a profit earning syariah-compliant account, pending its suit against the company in 2010.

The Kelantan government sued Petronas for breach of contract, on Aug 30, 2010.

In its statement of claim, the state government claimed that the Kelantan Petroleum Agreement, signed on May 9, 1975, clearly stated that Petronas must pay five per cent of its oil revenue from on and off shore explorations.

It further claimed the agreement also stated that the payment must be paid in cash bi-annually.

The Jan 31 hearing at the High Court was postponed pending the application to appeal at the Federal Court. – Bernama

A-G admits to weaknesses in AES

Malaysian Insider, 13 January 2013

KUALA LUMPUR, Jan 13 — Attorney-General Tan Sri Abdul Gani Patail has admitted there are weaknesses in the controversial Automated Enforcement System (AES) to nab traffic offenders, but said his office was still in discussions over how to resolve the matter.

In a report today by Mingguan Malaysia, the country’s top lawyer said the decision over the fate of the thousands of summonses issued so far under the system could not revealed yet as it involves the cooperation of numerous agencies.

“I will release a statement to the media once everything is ready,” he was quoted as saying in the daily.

Abdul Gani (picture), however, said the summonses were still valid but admitted that the problematic issue was centred on the legal aspects of the speeding tickets.

The Attorney-General’s Chambers (AGC) and the federal government came under fire last month for freezing the prosecution of traffic offenders under the AES yet allowing the system to continue operating.

The freeze was ordered following an outcry after the system issued nearly 300,000 summonses since it kicked off on September 23.

But shortly after the freeze, Transport Minister Datuk Seri Kong Cho Ha said the AES would still operate as usual and summonses would continue to be issued, drawing more criticisms from those opposing the system.

“The government will not stop AES summons as it is already been decided in the last cabinet meeting,” Kong had said on December 26, referring to the approval of his ministry’s estimated expenditure under Budget 2013.

Kong also appeared to admit that there are legal issues related to the AES summonses themselves, and that the ministry was in the process of resolving the complication.

“It is almost done... I think this problem will be solved by the ministry soon,” he pointed out.

In the aftermath, PAS vice-president Datuk Mahfuz Omar declared the ongoing row over the traffic system a “political game”, and dared the government to suspend its implementation.

The opposition lawmaker accused Putrajaya of being less than transparent in the deal with the two firms operating the system — Beta Tegap Sdn Bhd and ATES Sdn Bhd, which were both contracted to install and run the speed-trap camera system that has sparked much public anger over what is seen to be a privatisation of traffic law enforcement.

The Malaysian Insider had also reported last month that Putrajaya was considering holding off the implementation of the system as it appeared to duplicate police speed traps along the highways.

The privatised RM700 million project began in September with a pilot phase of 14 cameras but the Road Transport Department has pledged to roll out a total of 831 cameras by end-2013 to catch speeding motorists and prevent more road deaths.

The police, who enforce the speeding laws, have said they will continue enforcement and put up mobile speed traps near the AES cameras, raising the prospect of dual fines for errant motorists.

Culling to reduce egg production could be anti-competition, says group

STAR, 1 November 2012

KUALA LUMPUR: The Malaysia Competition Commission (MyCC) is looking into the culling of 5 million layer chickens by farmers for any anti-competitive elements.

The culling has resulted in a shortage of egg supply and an immediate price increase of between 2 to 5 sen per egg.

"The Competition Act 2010 prohibits enterprises operating at the same level in the production chain to collusively agree to limit or control production of goods and services.

"This is deemed to have the object of significantly preventing, restricting or distorting competition in any market for goods or services," said MyCCchief executive officer Shila Dorai Raj.

The Star recently reported the Federation of Livestock Farmers Association of Malaysia's (FLFAM) layer unit chairman Yap Hoong Chaias saying that farmers typically cull about 10% of their older layer hens from each cycle (of one to three months, depending on the farm size) to make room for younger, more productive hens.

He added that however farmers have recently been culling up to 10% more hens to reduce production costs.

Dorai Raj said unilateral decision by a farmer to reduce his production for purposes of prudent costs management may not be an anti-competitive conduct.

"However, if it is done in agreement with other farmers, then this may be an infringement under the Competition Act 2010," she added.

Under the Act, if the farmers are found to have infringed the law, they may be imposed a penalty of not more than 10% of their worldwide turnover besides other remedial orders.

The MyCC, established in June 2011, is an independent body responsible for enforcing the Competition Act 2010, which was implemented to create healthy competition which would in turn stimulate productivity and innovation, thus creating wider choices of products for consumers with better quality and reasonable prices.

The Act applies to all commercial activities undertaken within and outside Malaysia that affects competition in the Malaysian market.

It provides a regulatory framework including powers to investigate, adjudicate and impose penalties on the perpetrators of the competition laws.

For more information on the Act and MyCC activities, log on towww.mycc.gov.my. - Bernama

Probe warranted if cement makers have pact to raise prices

STAR, 3 August 2012

PETALING JAYA: The slew of price hikes by cement manufacturers do not at this juncture warrant a formal investigation by the Malaysian Competition Commission (MyCC), unlike the situation with the Cameron Highlands Floriculturist Association (CHFA), said MyCC chief executive officer Shila Dorai Raj.

“Price increases are by themselves not anti-competitive in nature. However, if there is evidence of collusion among the competitors to increase prices, this would be of concern to MyCC and may merit an investigation.

“In the case of CHFA, it had publicly declared its intention to raise prices by 10% in a news article in March whereas for the cement industry the announcement that came from the manufacturer was made unilaterally but seemed to be followed suit by other manufacturers,” she told StarBiz.

The commission has yet to receive any formal complaint on the higher prices charged by cement producers.

However, it has put the cement industry on its watchlist.

While not tantamount to a probe or official investigation, MyCC will keep a close eye on any developments that might be in breach of the Competition Act 2010.

StarBiz reported yesterday that all cement manufacturers had decided to raise prices of the building material following an earlier move by the country's largest producer, Lafarge Malayan Cement Bhd.

This was widely expected by industry players after Lafarge hiked up its prices by 6% on Wednesday.

There are six cement producers in Malaysia, namely YTL Cement Bhd,Tasek Corp Bhd, Cement Industries of Malaysia Bhd, Lafarge, CMS Cement Sdn Bhd, and Holcim (M) Sdn Bhd. Only Sarawak-based CMS Cement has confirmed it would keep prices at the current level.

When contacted, MBAM secretary-general Chuan Yeong Ming said if the industry body received any evidence of collusion among cement makers, it would be brought to the attention of the MyCC.

The Cement and Concrete Association of Malaysia, which represents the interests of the cement industry, said on Wednesday it was not in any way involved in the setting of prices by its members as that would count as an infringement of competition laws.

It was earlier reported that MyCC had made a “proposed decision” on CHFA, which was a notice to the affected party listing out the facts and penalties that could be imposed.

A proposed decision is final unless refuted by the affected party.

Under the Act, it is a violation when enterprises in the same level of production or supply chain agree to fix the price of their goods or services.

Tasek shares finished three sen, or 0.3%, higher to RM9.87, gaining 30.5% for the year.

Lafarge, meanwhile, was up 33 sen, or 4%, to RM8.50 yesterday and 21.8% year-to-date on the back of upgrades from three research firms this week.

Hwang DBS Vickers Research yesterday upgraded the stock to “hold” from “fully valued”, saying cement players were poised to ride on Malaysia's infrastructure boom and the existing oligopoly market structure.

It added Lafarge has a controlling 40% market share and the largest spare capacity among its peers, with 30% of production for export.

“The cement price hike is a positive note for Lafarge as the previous hike in May 2011 did not fully compensate for the increase in energy and fuel costs, due to Tenaga Nasional Bhd's 7% average electricity tariff hike and removal of diesel fuel subsidies which increased diesel prices by 22% or 32 sen per litre,” the brokerage said.

Lafarge on Wednesday raised prices by RM1 per 50kg bag and RM20 per tonne for bulk cement from RM16.75 and RM320 currently. The last time prices were higher was in March 2011, also by 6%.

Cement makers were accused of colluding with each other after MBAM received a tip-off from its members last week that a “major” manufacturer planned to raise the list price of cement in the Klang Valley.

It then urged MyCC to investigate whether there had been an abuse of dominant position by the cement firm.

MyCC Issues Final Decision Against CHFA

MyCC Press Release

6 December 2012

The Malaysia Competition Commission (MyCC) today, has issued a Final Decision against the Cameron Highlands Floriculturist Association (CHFA) for contravening Section 4(2) of the Competition Act 2010 (CA2010).

This follows the earlier Proposed Decision issued to CHFA on 24th October 2012 when the CHFA was found engaging in an anti-competitive agreement to increase the prices of flowers by 10%. The CHFA followed soon after with consultations with the MyCC and has since continued to exhibit exemplary cooperation in complying with the Act. 

The MyCC’s Final Decision upholds the earlier proposed remedial actions except for the financial penalty.  

“During the consultations, the CHFA was very cooperative in providing information and undertook to ensure compliance with the Act,” said the MyCC CEO, Pn Shila Dorai Raj.  

She added that the MyCC is stocktaking all trade and professional associations rules and regulations which may infringe the Competition Act 2010.

Background to the MyCC’s Proposed Decision

On 4th March 2012, the online portal of local English daily, The Star, had reported CHFA President, Mr Lee Peng Fo, announcing that its members have agreed to increase the prices of flowers by 10%. Under the Competition Act 2010, it is a violation when enterprises in the same level of production or supply chain agree to fix the price of their goods or services.

This is deemed to have the object of significantly preventing, restricting or distorting competition in the market for the goods. A decision by an association is also defined as an agreement under the Act.

The Proposed Decision sets out the basis for the MyCC’s decision on the case. It was issued to the parties concerned, to give them an opportunity to submit their arguments to the MyCC, and provide any other information for consideration, before the MyCC finalised its decision on whether there has been an infringement.

The CHFA was given fourteen (14) days from the date of the Proposed Decision was served to submit written representations or indicate whether it wished to make an oral representation before the MyCC.

The MyCC’s Proposed Decision earlier had set out the following remedial actions:

1. The CHFA shall cease and desist the infringing act of fixing prices of flowers;
2. The CHFA shall provide an undertaking that its members shall refrain from any anti-competitive practices ;
3. The CHFA shall issue a public statement on the above mentioned remedial actions in the mainstream newspapers; and
4. Once a decision is made by the MyCC under Section 40 of the CA2010 and the CHFA fails to comply according to the directions stated above, a financial penalty amounting to RM20,000 may be imposed. An additional RM1,000 will be imposed for each or part of each following day that the CHFA fails to comply.

The Final Decision currently upheld by the MyCC follows the above except for the financial penalty.

Camerons association being investigated for alleged price-fixing

STAR, 23 July 2012

PETALING JAYA: The Malaysia Competition Commission (MyCC) is investigating the Cameron Highlands Floriculturist Association (CHFA) for allegedly fixing prices of flowers sold to distributors and wholesalers. This follows a news report in The Star in March which quoted CHFApresident Lee Peng Fo as saying the association would increase flower prices by 10% due to the rising cost of materials and labour.

MyCC chief executive officer Shila Dorai Raj said under the Competition Act 2010, it is a violation when enterprises in the same level of production or supply chain agree to fix the price of their goods or services.

This is deemed to significantly prevent, restrict or distort competition for the goods. A decision by an association is also defined as an agreement under the Act.

“Generally, trade guilds or associations and bodies representing businesses are formed to safeguard the interests of its members, to increase productivity and efficiency as well as provide better products to their stakeholders.

“However in Malaysia these bodies continue to be involved directly or indirectly in the business operations of their members by deciding how much a member should produce or at what price he should sell his produce.

“This interference can tantamount to a violation of the Competition Act, which is aimed at protecting the process of competition to ensure the consumers’ interests are protected,” she said in a statement yesterday.

She said MyCC would continue to monitor the activities of all trade associations, including professional bodies to ensure that they did not indulge in activities which could stifle competition and violate the Act.

An infringement under this Act may attract a penalty of not more than 10% of the worldwide turnover of an enterprise over the period of the infringement.

CHFA secretary Yong Leong Meng said that the association had submitted a letter to MyCC explaining its rationale for the price increase.

“What is there to investigate? This is a free market. The prices of everything has increased, so we have no choice but to raise flower prices by 10%. It is not unlawful (to do so),” he said.

Revised West Coast Expressway deal falls short of protecting taxpayers, says Pua

By Ida Lim

Malaysian Insider, January 07, 2013

KUALA LUMPUR, Jan 7 — The revised multi-billion West Coast Expressway (WCE) deal still falls short of protecting taxpayers’ interest and the prime minister’s promises for transparency, DAP publicity secretary Tony Pua said today.

Last week, The Edge business weekly had cited unnamed industry experts in its report that the privatisation deal for the 233km Taiping-Banting highway had revised terms that were more favourable to the government

But Pua (picture) said the deal was given through direct negotiation to Kumpulan Europlus Bhd (KEuro) which, he claims, is a company without the necessary track record and financial capability for the highway project.

He said that KEuro had “generated only RM19.8 million and RM27.7 million in revenues in its financial year 2012 and 2011”, adding that the company’s cash level of RM1.03 million was only 0.2 per cent of the capital required to carry out the project.

He said an “open and competitive tender” would have enabled Putrajaya to get the “best value” in its use of taxpayers’ funds.

Pua further said that Putrajaya had “failed to be transparent in the award because it has steadfastly refused to disclose the terms of the agreement.”

He said that the terms would contain important details such as the “benchmarks set for the cost of the highway, the toll rates to be charged, the details of the proposed profit-sharing formula” and “the rate of return defined for the early termination clause.”

The Petaling Jaya Utara MP again said the disclosure of terms would show whether the people’s interests are well-protected.

Pua said that Pakatan Rakyat (PR) promises to “carry out open, competitive and transparent tenders for all procurement and privatisation projects” and will make public all contracts with concessionaires.

He contrasted Putrajaya with the Penang PR state government, saying an open tender was carried out for the Penang People’s Park and the Subterranean Penang International Convention Exhibition (sPICE) public-private partnership project, with the contracts for the projects made public.

The Edge reported that West Coast Expressway Sdn Bhd (WCESB) had agreed with Putrajaya to hand over control of the highway once the operator recoups its investment from toll collection — even if this occurs before the 60-year expiry of the concession.

“If the highway makes its stated returns in the 50th year, the concession will end and the highway will be given back to the government,” a financial executive familiar with the agreement told the paper.

Apart from the early termination clause, the contract terms have been revised in the government’s favour, the paper reported, pointing to a new revenue-sharing mechanism and the removal of an up to 3 per cent interest subsidy from commercial loans for a period of 22 years.

“The government was of the view that the traffic forecast made by WCESB was too low and this is where the revenue sharing kicks in. If the traffic goes above the forecast, the government gains,” the paper quoted the same executive as saying.

Details of the agreed traffic volume, however, remain confidential.

The project has also been resized after both the government and the highway builder agreed to cut back about 25 per cent of the original plan, with the project now costing RM5.2 billion instead of the initial projection of RM7.07 billion.

Putrajaya is also extending RM1 billion to acquire land needed to build the highway, and a RM2.24 billion soft loan to the company to undertake the project. The loan deal comes with an annual interest rate of 4 per cent commencing in 2013.

WCESB’s parent company, KEuro, reported last year that it recorded a net loss of RM7.52 million for its third quarter ended October 31, 2012 compared with a net profit of RM1 million in the previous corresponding period.

The company told Bursa Malaysia that the loss reported in the current quarter was due to a share of losses in associates of RM2.9 million, a provision for doubtful debt of RM1.83 million and a finance cost of RM2.31 million.

“The preceding quarter’s losses were lower mainly due to the reversal of provision for doubtful debt amounting to RM3.51 million and the reversal of rental charges amounting to RM2.37 million, which were over provided in prior years,” KEuro said in a filing last December.

Revenue, however, increased to RM4.08 million from RM3.84 million a year ago.