Kenneth Eswaran behind new pay-TV venture

By Jahabar Sadiq
Malaysian Insider, 28 October 2011

 

KUALA LUMPUR, Oct 28 — Businessman Datuk K.K. Eswaran, who has close ties with Datuk Seri Najib Razak’s family, is behind the new cable television venture Nilamas Corporation Sdn Bhd, which is to start service as early as the first half of next year, say industry sources.
The Malaysian Insider understands that the company, which expects to spend RM2 billion to challenge satellite TV operator Astro for a share of the local market, has now been renamed Asian Broadcasting Network Sdn Bhd. The new brand will be launched next month.

“Datuk Kenneth Eswaran (picture) is behind this venture and his ties with the first family have ensured he got fast approval for the required licences,” an industry source told The Malaysian Insider, referring to the Indian businessman’s preferred name.

Those close to the venture confirmed Eswaran’s interest, pointing out that Nilamas shares two common directors with the businessman’s main corporate vehicle, Pinehill Pacific Berhad. The two are former top civil servants Tan Sri Mohamad Noor Abdul Rahim and Datuk Nik Mohd Amin Nik Abu Bakar.

“Eswaran is politically connected. It’s no surprise he got quick approvals but he now has to launch it,” another industry source said, confirming the new brand name launch is slated for next month.

Eswaran is the deputy executive chairman of Pinehill Pacific, where he is a substantial shareholder. The company has made a few name changes from its original Benta Plantations to Best World Land Bhd in 1995, a year after Eswaran came in, and then renamed Multi Vest Resources Bhd in 2000. It took its present name last January.

The businessman was elected president of the Malaysian Associated Indian Chambers of Commerce and Industry (MAICCI) in June 2008 and was linked to Najib’s family by popular blogger Raja Petra Kamarudin, who edits the Malaysia-Today news portal.

The Star daily reported last week that Nilamas had secured all the requisite licences to offer digital cable TV in the country, and will compete in the pay-TV space with Astro All Asia Networks plc (Astro) and several IPTV providers including Telekom Malaysia Bhd (TM).

The set-up cost for the cable network offering is expected to be more than RM2 billion over a five-year period and Nilamas, according to sources, is looking at a 40:60 equity-debt combination to fund its venture.
Retired navy chief and former armed forces chief Admiral (Ret) Tan Sri Mohd Anwar Mohd Nor is one of the directors of the company, which has invested in a building in Puchong for its broadcasting centre.

The newspaper also said the new station plans to offer entertainment and educational programmes with an interactive focus.

Nilamas secured the requisite licences to offer subscription broadcasting in the country from the industry regulator, Malaysian Communication and Multimedia Commission, on August 11 and with this licence it is allowed to offer broadcasting services for a fee.

The company also has network facilities licences that will allow it to build up a network and also a network service provider licence. The licences are valid for five years.

It has begin hiring people and already has a chief executive officer, television industry veteran Sreedhar Subramaniam, who had served as chief financial officer in NTV7 and also as chief executive of The Malaysian Insider.

The Star quoted sources as saying the company now has 20 people and is looking to expand to 800 by the time of its launch.

Sources also said the company was in talks with numerous content providers but added that it might find it difficult to secure content already sold to competitors such as Astro and TM.

Astro began service in 1996 with 22 channels and took a decade to break even. It currently broadcasts some 125 pay-TV channels in four major languages including eight channels in high definition across Malaysia and Brunei to more than 2.93 million households.

Sources told The Malaysian Insider that the new venture would use fibre for its backhaul which will be leased from fibre operators such as TM, Time dotCom Bhd, Tenaga Nasional Bhd, Fiberail and Fibercom.

M’sia committed to liberalising regional air services

STAR, 8 June 2009

KUALA LUMPUR: Malaysia is committed to the Asean roadmap for liberalisation of air services operated in the region.

Prime Minister Datuk Seri Najib Tun Razak said the Asean roadmap would fully liberalise air services arrangements in the region by 2015.

He said Malaysia was also working closely with other Asean member countries to look into the possibility of a single aviation market along the line of the European Union.

“This will probably be some distance away in the future, but it an exciting possibility nonetheless,” he said in his keynote address at the 65th International Air Transport Association (IATA) Annual General Meeting here Monday.

Najib said Malaysia was also helping airlines to reduce fuel consumption and carbon emissions through revised air traffic control procedures as well as the implementation of Continuous Descent Approach (CDA) for aircraft landing at Kuala Lumpur International Airport.

International Air Transport Association (IATA) Chief Executive Giovanni Bisignani, right, walks with Malaysian Prime Minister Najib Razak at the 65th IATA Annual General Meeting in Kuala Lumpur on Monday. - AP

The trial, he said currently involved Malaysia Airlines, AirAsia and Singapore Airlines and would eventually be expanded to include other carriers.

“We are also proud that KLIA will be the first stop in Asia to exhibit IATA’s Environment Booth which showcases the industry’s efforts in curbing and reducing carbon emissions,” he said adding that these were some major initiatives that Malaysia was undertaking to strengthen the aviation industry in the long term.

He also said Malaysia was committed to working with the industry to reduce air travel costs as well as improving efficiency and facilitation of passenger and freight movements at its airports.

Najib also that the industry itself needed to make the necessary changes to prepare itself for an uncertain future.

In order to survive the fuel price volatility, the global recession and the threat of outbreak of diseases, he said the air transport industry and governments must work hand in hand to find solutions to map the way forward.

“Together we must address ways to facilitate trade and revive economies, manage climate change, prepare for the possibility of a pandemic, secure our borders, and liberalise air services arrangements between countries.

“Together, the industry must continue to provide safe, reliable, secure and economical air services for the benefit of global consumers,” he said.

The Prime Minister said the ultimate aim of the entire industry must be long-term sustainability.

“The challenges we face today will likely resurface time and again in the future. We must find a way to insulate the industry so that future stocks in the system can be well absorbed without too much impact or damage to the players in the aviation game,” he added.

Najib said the Government was fully supportive of aviation as a key sector of business and commerce.

“Recognising the difficulties faced by the airline industry, we are firmly committed to playing our part in ensuring, not just the survival, but the continued strengthening of our aviation industry.”

Govt lifts 30% bumi rule for 27 services sub-sectors

STAR, 22 April 2009

PUTRAJAYA: The government has removed the 30% bumiputra equity condition in 27 services sub-sectors, with immediate effect.

Prime Minister Datuk Seri Najib Tun Razak said the sub-sectors, which involved health and social services, tourism services, transport services, business services and computer and related services, would have no equity conditions imposed.

He said the liberalisation was aimed at creating a conducive business environment to attract more investments, bring in more professionals and technology, encourage competitiveness and create higher value employment opportunities.

“We will be progressively undertaking liberalisation of the other services sub-sectors,” he told a press conference at his office on Wednesday.

Saying that the services sector would become a new growth sector of the economy, Najib said it contributed 55% to the GDP in 2008, and accounted for 57% of total employment in Malaysia.

The Government wanted to tap the sector’s full potential and raise its contribution to 60% of the GDP, he said.

However, he assured that the liberalisation would not adversely affect the domestic services industry, which would continue to be supported.

He said a RM100mil services sector capacity development fund was established under the first economic stimulus package, managed by the Malaysian Industrial Development Authority (Mida) to assist the industry to face the more liberalised services environment.

To facilitate investments into the sector, a National Committee for Approval of Investments in the Services Sector had been established under Mida which would receive and process applications of investment in the services sector, excluding investments in financial services, air travel, utilities, Economic Development Corridors, Multimedia Super Corridor and Bionexus status companies and distributive trade.

In a bid to develop Malaysia as an international Islamic financial hub, the legal profession would be liberalised to allow up to five international law firms with expertise in international Islamic finance to practise in Malaysia, Najib said.

Najib also said the liberalisation was in line with Malaysia’s commitment to Asean.

However, some of the measures were better than those undertaken by other Asean countries, he said, adding that they would also make Malaysia more equipped to compete internationally.

“Consultations were carried out and the decision was made based on the reception and acceptance by the sub-sectors,” he said on the selection of the sub-sectors.

Najib said that in 2008, approved investments in the services sector totalled RM50.1bil, exceeding the target of RM45.8bil per annum under the Third Industrial Master Plan.

The share of foreign investments was 11% of the total investments.

“With the liberalisation of the services sector, we expect greater inflow of investments,” he said.

Najib also said he would announce next week the liberalisation of the financial sector.

He declined to give details.

“I want it to be full of surprises” and “It is good for the market to digest (the announcement for the services sector) first.”