AEC Feed

CIMB Equities Research is positive on the likely pick-up in the progress of the Kuala Lumpur-Singapore high speed railway (HSR) project in second-half of this year, but concludes that it would be too early to name potential winners. 
It said yesterday it believes IJM Corp, WCT, Sunway, MRCB and YTL Corp would be keen to participate in the HSR project. 
“Within our coverage, Gamuda remains our top pick for the rail theme while Muhibbah Engineering remains our preferred small/mid cap stock. We maintain an Overweight on the sector, with job delays and funding hurdles as key risks,” it said.
CIMB Research pointed out MyHSR confirmed that the tenders for the KL-Singapore HSR’s AssetsCo will be called in 4Q17. This brings the HSR project to the next level, as the tenders will appoint a privately-financed assets company for the development of the HSR project. – The Star

Investors flee from Wang’s Wanda shares and bonds
Chinese billionaire Wang Jianlin’s Dalian Wanda Group Co was in focus yesterday as the shares and bonds of its units plunged.
Wanda Film Holding Co tumbled 9.9 per cent in Shenzhen, its biggest loss since January 2016, while Wanda Properties International Co’s US$600 million 2024 notes plunged 10.1 cents on the dollar to 101.7 cents as of 12:06 pm in Hong Kong yesterday, the biggest drop on record, according to Bloomberg-compiled data. Wanda Group representatives couldn’t immediately comment.
Both companies are units of Wanda Group, the property-to-entertainment conglomerate that stood out in recent years for making acquisitions in Hollywood such as the purchase of Legendary Entertainment. Wang is China’s second-richest man with a fortune of US$31.1 billion, according to the Bloomberg Billionaires Index.
There is speculation about political risks surrounding the Wanda Group, said Castor Pang, head of research at Core-Pacific Yamaichi HK.
“We don’t know if this is true yet. The most important factor of doing business in China is the company’s political stance. It is important for the company to ‘stand at the right side’. Political risks are the factor that is most difficult to evaluate in China. Even it is just a rumor, investors will choose to sell off first.” Wanda Properties’ US$600 million 2018 note also dropped 4.5 cents to 97.4 cents. – The Star 

Airports gear up for 7.1m Idul Fitri travellers
Indonesia’s state-owned operator Angkasa Pura I expects to see 7.15 million passengers flying in and out of its 13 airports in central and eastern Indonesia during this year’s mudik (homecoming journey) season from June 15-July 11. 
The estimated number of passengers is 14.3 per cent higher than last year’s figure for the 13 cities and regencies, including Surabaya in East Java, Makassar in South Sulawesi and Balikpapan in East Kalimantan.
Angkasa Pura I president director Danang S Baskoro said the firm had prepared for the increased traffic by rearranging airport interiors to allow swifter crowd movement and setting up posts staffed by Indonesian military, police and airport personnel to assist passengers. – The Jakarta Post 

RP tax reform not covering remittances 
The proposed comprehensive tax reform programme (CTRP) does not cover remittances from overseas Filipino workers (OFWs) since these are funds. coming from outside the country, according to the Philippines’ Department of Finance.
Finance Undersecretary Karl Kendrick Chua yesterday clarified that the Philippine government had no jurisdiction over such inbound funds.
Chua has told relevant committees at the Senate and House of Representatives that laws apply only to remittances sent from within the country and, even then, the principal amount itself is not taxed.
He said the value-added tax (VAT) slapped on domestic remittances are applied to fees charged by remittance companies.
“We have to distinguish between the foreign and the domestic remittances. Those coming from abroad are not within our tax regime, so that is not [covered] (under the CTRP),” Chua said.
He pointed out that under existing tax laws, transfer fees for domestic remittances have long been subject to VAT but have not been fully collected by the Bureau of Internal Revenue (BIR). – Philippine Daily Inquirer