|
EXECUTIVE
SUMMARY
|
REGISTRATION NO.
|
:
|
781769-K
|
|
COMPANY NAME
|
:
|
RECRON (MALAYSIA) SDN BHD
|
|
FORMER NAME
|
:
|
REAL AIM DEVELOPMENT SDN BHD (20/08/2007)
|
|
INCORPORATION DATE
|
:
|
20/07/2007
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
WISMA HAVELA THAKARDAS, 1 JALAN TIONG NAM, OFF JALAN RAJA LAUT, 10TH
FLOOR, 50350 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
WISMA HAVELA THAKARDAS, 10TH FLOOR, 67, JALAN RAJA CHULAN, 50200
KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
TEL.NO.
|
:
|
03-20316000
|
|
FAX.NO.
|
:
|
03-20315000
|
|
CONTACT PERSON
|
:
|
UDESHI RAJEN DWARKADAS ( DIRECTOR )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
17299
|
|
PRINCIPAL
ACTIVITY
|
:
|
MANUFACTURING OF TEXTILE AND FIBRE PRODUCTS
|
|
AUTHORISED CAPITAL
|
:
|
MYR
50,000,000.00 DIVIDED INTO
ORDINARY SHARE 50,000,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND
PAID UP CAPITAL
|
:
|
MYR 100,000.00
DIVIDED INTO
ORDINARY SHARES 100,000 CASH OF MYR 1.00 EACH.
|
|
|
|
|
|
SALES
|
:
|
N/A
|
|
NET WORTH
|
:
|
N/A
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
0 [2008]
|
|
BANKER (S)
|
:
|
|
HONG LEONG
ASSURANCE BHD
MALAYAN BANKING BHD
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
N/A
|
|
PAYMENT
|
:
|
N/A
|
|
MANAGEMENT CAPABILITY
|
:
|
WEAK
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
MODERATE
|
|
CURRENCY EXPOSURE
|
:
|
HIGH
|
|
GENERAL REPUTATION
|
:
|
NOT YET DETERMINED
|
|
INDUSTRY OUTLOOK
|
:
|
DECLINING
|
HISTORY
/ BACKGROUND
The SC is a private limited company and is allowed to have a minimum of one
and a maximum of forty-nine shareholders. As a private limited company, the
SC must have at least two directors. A private limited company is a separate
legal entity from its shareholders. As a separate legal entity, the SC is
capable of owning assets, entering into contracts, sue or be sued by other
companies. The liabilities of the shareholders are to the extent of the
equity they have taken up and the creditors cannot claim on shareholders'
personal assets even if the SC is insolvent. The SC is governed by the
Companies Act, 1965 and the company must file its annual returns, together
with its financial statements with the Registrar of Companies.
The SC is principally engaged in the (as a / as an) manufacturing of textile
and fibre products.
The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).
The SC is not qualified to be one of the Top Corporate Performers in the
Malaysia 1000 (M1000) publication, a directory jointly published by Companies
Commission of Malaysia (The Registrar Office), Minister of Domestic Trade and
Consumer Affairs and our publication arm, BASIS Publications House Sdn Bhd.
The major shareholder(s) of the SC are shown as follows :
|
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
|
RELIANCE NETHERLANDS B.V.
|
|
|
99,998.00
|
|
MS. NG LUI KENG @ NG JOO KENG
|
462, JALAN 5/46, TAMAN PETALING, 46000 PETALING JAYA, SELANGOR,
MALAYSIA.
|
480514-04-5106
1771120
|
1.00
|
|
MS. TAN WANG TIANG
|
462, JALAN 5/46, TAMAN PETALING, 46000 PETALING JAYA, SELANGOR,
MALAYSIA.
|
450211-04-5048
0193086
|
1.00
|
|
|
|
|
---------------
|
|
|
|
|
100,000.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MS.WENDY CHIN NGEOK MUI
|
|
Address
|
:
|
3, JALAN IBU KOTA EMPAT, TAMAN IBU KOTA, GOMBAK, 53100 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
IC / PP No
|
:
|
7311328
|
|
New IC No
|
:
|
640423-10-7826
|
|
Date of Birth
|
:
|
23/04/1964
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
08/08/2007
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MS. CHONG SWEE YOON
|
|
Address
|
:
|
10, LORONG 10/10C, 46000 PETALING JAYA, SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
6822933
|
|
New IC No
|
:
|
620902-01-5488
|
|
Date of Birth
|
:
|
02/09/1962
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
08/08/2007
|
DIRECTOR 3
|
Name Of Subject
|
:
|
MR. MAN MOHAN
|
|
Address
|
:
|
41 BAKHTAWAR ANNEXE, 22 NARAYAN DABHOLKAR ROAD, MALABAR HILL, 400
006, BOMBAY, INDIA.
|
|
IC / PP No
|
:
|
F3673620
|
|
Nationality
|
:
|
INDIAN
|
|
Date of Appointment
|
:
|
22/08/2007
|
DIRECTOR 4
|
Name Of Subject
|
:
|
MR. JAIN PRAVEEN KUMAR
|
|
Address
|
:
|
604 NIRAJ BUILDING, RACHNA NIRAJ CO-OP HSG SOCIETY, NEAR KOPRI
POLICE STATION, THANA EAST, MAHARASTRA, INDIA.
|
|
IC / PP No
|
:
|
E0238257
|
|
Nationality
|
:
|
INDIAN
|
|
Date of Appointment
|
:
|
22/08/2007
|
DIRECTOR 5
|
Name Of Subject
|
:
|
MR. UDESHI RAJEN DWARKADAS
|
|
Address
|
:
|
502 SHANTI APARTMENT, 98 WALKESHWAR ROAD, 400 006, BOMBAY, INDIA.
|
|
IC / PP No
|
:
|
G0600014
|
|
Nationality
|
:
|
INDIAN
|
|
Date of Appointment
|
:
|
22/08/2007
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
UDESHI RAJEN DWARKADAS
|
|
|
Position
|
:
|
DIRECTOR
|
|
|
|
|
|
|
2)
|
Name of Subject
|
:
|
NABHESH KHANNA
|
|
|
Position
|
:
|
CHIEF OPERATING OFFICER
|
|
|
|
|
|
AUDITOR
No Auditor found in our databank
COMPANY
SECRETARIES
|
1)
|
Company Secretary
|
:
|
MS. CHEONG CHOON YIN
|
|
|
IC / PP No
|
:
|
A1998972
|
|
|
New IC No
|
:
|
711103-03-5216
|
|
|
Address
|
:
|
11, JALAN USJ 3/4J, 47600 SUBANG JAYA, SELANGOR, MALAYSIA.
|
|
|
Date of Appointment
|
:
|
08/08/2007
|
|
|
|
|
|
|
|
|
|
|
|
2)
|
Company Secretary
|
:
|
MS. CATHERINE MAH SUIK CHING
|
|
|
IC / PP No
|
:
|
5588928
|
|
|
New IC No
|
:
|
600421-10-6364
|
|
|
Address
|
:
|
19, JALAN BK 3/8D, BANDAR KINRARA, PUCHONG, 58200 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
Date of Appointment
|
:
|
08/08/2007
|
|
|
|
|
|
|
|
|
|
|
BANKING
Banking relations are maintained principally with :
|
1)
|
Name
|
:
|
HONG LEONG ASSURANCE BHD
|
|
|
|
|
|
|
2)
|
Name
|
:
|
MALAYAN BANKING BHD
|
|
|
|
|
|
|
The SC enjoys normal banking routine with above mentioned banker(s).
No adverse record was found during our investigation.
|
ENCUMBRANCE
(S)
No encumbrance was found in our databank at the time of investigation.
LEGAL
CHECK AGAINST SC
* A check has been conducted in our databank againt the SC whether the
subject has been involved in any litigation. Our databank consists of 99% of
the wound up companies in Malaysia back dated since 1900.
No legal action was found in our databank.
No winding up petition was found in our databank.
PAYMENT
RECORD
|
|
|
|
SOURCES OF RAW MATERIALS:
|
|
|
Local
|
:
|
YES
|
Percentage
|
:
|
40%
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
60%
|
|
Import Countries
|
:
|
INDIA
|
CLIENTELE
|
Local
|
:
|
NO
|
Percentage
|
:
|
0%
|
|
|
|
|
|
|
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
100%
|
|
Export Market
|
:
|
SOUTHEAST ASIA, AFRICA, MIDDLE EAST,
UNITED STATES, GERMANY, EUROPE, TURKEY
|
|
Credit Term
|
:
|
30 - 60 DAYS
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES,TELEGRAPHIC TRANSFER (TT),LETTER OF CREDIT (LC)
|
|
Type of Customer
|
:
|
TEXTILES AND GARMENT INDUSTRIES,RETAIL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS
|
Products manufactured
|
:
|
|
TEXTILE AND FIBRE PRODUCTS
|
|
|
|
|
|
|
Competitor(s)
|
:
|
|
DHJ (MALAYSIA) SDN BHD
|
|
EMAS KIARA INDUSTRIES BHD
|
|
FIBERTEX NONWOVENS SDN BHD
|
|
HUALON CORPORATION (M) SDN BHD
|
|
PCCS GROUP BHD
|
|
|
|
|
|
|
Total Number of Employees:
|
|
YEAR
|
2008
|
2007
|
|
|
|
|
GROUP
|
N/A
|
N/A
|
|
|
|
|
|
|
|
|
COMPANY
|
0
|
0
|
|
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) manufacturing of textile
and fibre products.
The SC mainly an export-oriented company.
We were informed that the SC started its business activities on 1st December
2007 and mainly involved in producing of a world class textile products
including polyester, cotton and nylon.
The SC's products including resins, synthetic yarns, knitted fabrics, woven
fabrics, speciality yarns, staple fibers and others.
The products are used for making ready made garments, home furnishings,
curtain materials and others.
We were informed that the SC is sharing the working premises with its related
company; Hualon Corporation (M) Sdn Bhd.
Besides that the SC is also sharing the management and staff from Hualon
Corporation (M) Sdn Bhd.
PROJECTS
No projects found in our databank
RECENT
DEVELOPMENT
We have checked with the Malaysian National News Agency's (BERNAMA)database,
but no latest development was noted in our investigation.
CURRENT
INVESTIGATION
Latest fresh
investigations carried out on the SC indicated that :
|
Telephone Number Provided By Client
|
:
|
N/A
|
|
Current Telephone Number
|
:
|
03-20316000
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
WISMA GOLDHILL, LEVEL 8 & 9, 67, JALAN RAJA CHULAN, 50200 KUALA
LUMPUR, WILAYAH PERSEKUTUAN.
|
|
Current Address
|
:
|
WISMA HAVELA THAKARDAS, 10TH FLOOR, 67, JALAN RAJA CHULAN, 50200
KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
Match
|
:
|
YES
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
NO
|
Other Investigations
We conducted an interview with one of the SC's Senior staff from Human
Resource Department, Ms. Wong. She revealed some relevant information on the
SC.
Besides that, we were informed that the SC started its business operation on
1st December 2007.
According to her the SC have not employ any staff because the SC sharing the
staff from its related company; Hualon Corporation (M) Sdn Bhd.
FINANCIAL
COMMENTS
No latest
financial accounts are available at the Registry Office, thus we are not able
to comment on the SC's financial performance.
ECONOMIC
/ INDUSTRY OUTLOOK
|
Major Economic Indicators:
|
2004
|
2005
|
2006
|
2007*
|
2008**
|
|
|
|
|
|
|
|
|
Population ( Million)
|
25.58
|
26.13
|
26.64
|
27.17
|
27.73
|
|
Gross Domestic Products ( % )
|
7.1
|
5.3
|
5.8
|
6.0
|
6.5
|
|
Domestic Demand ( % )
|
7.5
|
7.3
|
7.0
|
9.0
|
6.8
|
|
Private Expenditure ( % )
|
13.1
|
9.5
|
7.0
|
8.6
|
8.2
|
|
Consumption ( % )
|
10.5
|
9.2
|
7.1
|
9.0
|
7.9
|
|
Investment ( % )
|
25.8
|
8.5
|
7.0
|
7.1
|
9.5
|
|
Public Expenditure ( % )
|
<2.1>
|
3.6
|
6.8
|
10.1
|
3.2
|
|
Consumption ( % )
|
6.0
|
5.4
|
5.0
|
10.8
|
5.5
|
|
Investment ( % )
|
<8.7>
|
1.9
|
8.9
|
9.3
|
0.5
|
|
|
|
|
|
|
|
|
Balance of Trade ( MYR Million )
|
80,663
|
99,760
|
108,192
|
99,965
|
99,599
|
|
Government Finance ( MYR Million )
|
<19,419>
|
<18,684>
|
<19,109>
|
<19,948>
|
<20,933>
|
|
Government Finance to GDP / Fiscal Deficit ( % )
|
<4.3>
|
<3.8>
|
<3.3>
|
<3.2>
|
<3.1>
|
|
Inflation ( % Change in Composite CPI)
|
1.4
|
3.1
|
3.9
|
4.0
|
4.0
|
|
Unemployment Rate
|
3.5
|
3.5
|
3.4
|
3.5
|
3.3
|
|
|
|
|
|
|
|
|
Net International Reserves ( MYR Billion )
|
254
|
266
|
290
|
-
|
-
|
|
Average Risk-Weighted Capital Adequacy Ratio ( % )
|
13.84
|
13.63
|
12.91
|
-
|
-
|
|
Average 3 Months of Non-performing Loans ( % )
|
8.46
|
6.74
|
5.41
|
-
|
-
|
|
Average Base Lending Rate ( % )
|
5.99
|
6.00
|
6.61
|
-
|
-
|
|
Business Loans Disbursed( % )
|
10.5
|
8.7
|
<2.5>
|
-
|
-
|
|
Foreign Investment ( MYR Million )
|
13,143.9
|
17,882.9
|
20,228.0
|
-
|
-
|
|
Consumer Loans ( % )
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Companies ( No. )
|
38,580
|
37,474
|
38,293
|
-
|
-
|
|
Registration of New Companies ( % )
|
6.8
|
<2.9>
|
2.2
|
-
|
-
|
|
Liquidation of Companies ( No. )
|
3,334
|
3,069
|
8,647
|
-
|
-
|
|
Liquidation of Companies ( % )
|
<15.8>
|
<7.9>
|
181.8
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Business ( No. )
|
189,206
|
193,095
|
216,147
|
-
|
-
|
|
Registration of New Business ( % )
|
4.6
|
2.1
|
11.9
|
-
|
-
|
|
Business Dissolved ( No. )
|
51,301
|
73,355
|
52,879
|
-
|
-
|
|
Business Dissolved ( % )
|
7.0
|
43.0
|
<27.9>
|
-
|
-
|
|
|
|
|
|
|
|
|
Sales of New Passenger Cars (' 000 Unit )
|
380.6
|
400.8
|
374.1
|
-
|
-
|
|
Cellular Phone Subscribers ( Million )
|
14.6
|
18.5
|
19.5
|
21.3
|
-
|
|
Tourist Arrival ( Million Persons )
|
15.7
|
16.7
|
17.5
|
20.1
|
-
|
|
Hotel Occupancy Rate ( % )
|
60.8
|
63.6
|
64.8
|
-
|
-
|
|
|
|
|
|
|
|
|
Credit Cards Spending ( % )
|
19.3
|
13.9
|
15.4
|
-
|
-
|
|
Bad Cheque Offenders (No.)
|
70,465
|
57,316
|
36,555
|
-
|
-
|
|
Individual Bankruptcy ( No.)
|
16,251
|
15,868
|
13,596
|
-
|
-
|
|
Individual Bankruptcy ( % )
|
31.6
|
<2.4>
|
<14.3>
|
-
|
-
|
|
|
|
|
|
|
|
|
INDUSTRIES ( % of Growth ):
|
2004
|
2005
|
2006
|
2007*
|
2008**
|
|
|
|
|
|
|
|
|
Agriculture
|
5.0
|
2.5
|
5.3
|
3.1
|
3.5
|
|
Palm Oil
|
3.9
|
7.1
|
5.8
|
<0.6>
|
-
|
|
Rubber
|
16.5
|
<2.9>
|
12.6
|
1.0
|
-
|
|
Forestry & Logging
|
4.3
|
2.0
|
<0.4>
|
2.8
|
-
|
|
Fishing
|
5.5
|
<0.4>
|
9.3
|
5.2
|
-
|
|
Other Agriculture
|
2.4
|
3.2
|
5.3
|
7.0
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
620.3
|
563.7
|
516.5
|
487.3
|
0
|
|
% of Industry Non-Performing Loans
|
1.38
|
1.19
|
1.06
|
1.08
|
0
|
|
|
|
|
|
|
|
|
Mining
|
3.9
|
0.8
|
<0.4>
|
3.3
|
4.0
|
|
Oil & Gas
|
4.5
|
1.6
|
4.6
|
-
|
-
|
|
Other Mining
|
<8.0>
|
<1.0>
|
5.1
|
-
|
-
|
|
Industry Non-performing Loans ( MYR Million )
|
62.6
|
68.8
|
55.4
|
42.2
|
-
|
|
% of Industry Non-performing Loans
|
0.1
|
0.1
|
0.1
|
0.1
|
-
|
|
|
|
|
|
|
|
|
Manufacturing #
|
9.8
|
5.1
|
7.3
|
3.1
|
3.8
|
|
Exported-oriented Industries
|
15.5
|
3.0
|
11.1
|
<1.9>
|
-
|
|
Electrical & Electronics
|
17.8
|
3.6
|
13.4
|
3.0
|
-
|
|
Rubber Products
|
14.8
|
2.4
|
0.4
|
8.0
|
-
|
|
Wood Products
|
12.7
|
0.9
|
0.7
|
3.3
|
-
|
|
Textiles & Apparel
|
<11.7>
|
<4.4>
|
12.6
|
<10.1>
|
-
|
|
Domestic-oriented Industries
|
9.7
|
6.9
|
5.0
|
5.3
|
-
|
|
Food, Beverages & Tobacco
|
3.8
|
7.7
|
4.8
|
5.6
|
-
|
|
Chemical & Chemical Products
|
14.6
|
6.9
|
1.7
|
9.2
|
-
|
|
Plastic Products
|
13.5
|
18.6
|
21.3
|
<3.6>
|
-
|
|
Iron & Steel
|
2.7
|
<6.7>
|
<6.9>
|
17.5
|
-
|
|
Fabricated Metal Products
|
29.2
|
<7.5>
|
20.0
|
26.2
|
-
|
|
Non-metallic Mineral
|
<4.8>
|
<6.0>
|
<1.9>
|
6.6
|
-
|
|
Transport Equipment
|
8.6
|
10.4
|
5.3
|
<19.0>
|
-
|
|
Paper & Paper Products
|
2.3
|
4.6
|
4.1
|
14.9
|
-
|
|
Crude Oil Refineries
|
<2.4>
|
8.2
|
12.1
|
8.6
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
7,765.4
|
6,035.6
|
6,181.3
|
6,366.2
|
-
|
|
% of Industry Non-Performing Loans
|
17.3
|
12.7
|
12.7
|
14.1
|
-
|
|
|
|
|
|
|
|
|
Construction
|
<1.5>
|
<1.6>
|
<0.5>
|
5.2
|
6.3
|
|
Industry Non-Performing Loans ( MYR Million )
|
5,547.7
|
5,172.7
|
5,527.3
|
5,116.7
|
-
|
|
% of Industry Non-Performing Loans
|
12.4
|
10.9
|
11.4
|
11.3
|
-
|
|
|
|
|
|
|
|
|
Services
|
6.8
|
6.6
|
7.2
|
9.0
|
8.6
|
|
Electric, Gas & Water
|
8.1
|
5.5
|
5.2
|
4.6
|
5.0
|
|
Transport, Storage & Communication
|
8.5
|
6.3
|
5.2
|
7.6
|
7.8
|
|
Wholesale, Retail, Hotel & Restaurant
|
7.1
|
8.0
|
7.1
|
11.6
|
10.0
|
|
Finance, Insurance & Real Estate
|
6.3
|
7.0
|
7.7
|
10.7
|
9.2
|
|
Government Services
|
6.5
|
7.6
|
9.8
|
4.6
|
8.6
|
|
Other Services
|
4.9
|
5.0
|
4.7
|
5.0
|
5.9
|
|
Industry Non-Performing Loans ( MYR Million )
|
8,913.7
|
8,716.8
|
11,593.2
|
10,207.8
|
-
|
|
% of Industry Non-Performing Loans
|
19.9
|
18.4
|
23.9
|
22.6
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Estimate / Preliminary
|
|
|
|
|
|
|
** Forecast
|
|
|
|
|
|
|
# Based On
Manufacturing Production Index
(Source : Department of Statistics / Economic Report / Bank Negara Report)
|
|
|
|
|
|
|
|
INDUSTRY COMMENTS
|
MSIC CODE
|
|
17299 : Manufacture of other textiles n.e.c.
|
|
|
|
|
INDUSTRY :
|
TEXTILE
|
|
|
|
|
|
|
The textiles and textiles products industry comprises four sub-sectors,
namely primary textiles which cover activities such as polymerization,
spinning, weaving, knitting and wet processing; made-up garments; made-up textiles;
and textile accessories.
|
|
The production of textiles, apparels and footwear industry declined by
10.1% in the first six months of 2007 (January-June 2006: 12.6%). The
decline was due to 21.4% contraction in output of textiles and 2.5% in apparels
(January- June 2006: 9.8%; 31.4%), as a result of stiff competition from
low-cost producing countries, in particular China, India, Thailand and
Vietnam. In an effort to improve profit margins, the textile and apparels
manufacturers are engaging in outsourcing and cross-border investments.
|
|
The textiles industry continues to make significant contributions to
exports and employment. In 2006 (January-November), the textiles and
textile products industry was the seventh largest export earner, contributing
RM9.7 billion or approximately two per cent of total exports of
manufactured goods. Malaysia's major export destination for textiles and
textile products in 2006 was USA, accounting for 27.8 per cent of the total
exports. Other major export destinations were ASEAN countries (16.1%),
Turkey (6.3%), Japan (4.8%) and People's Republic of China (3.8%).
|
|
Most Malaysian manufacturers act as sub-contractors and supply their
products to well-known global brands, besides developing their own. Demand
for better designs as well as quality clothing and footwear has enabled
manufacturers to focus on higher value-added production. Some producers
have embarked on investments in high-tech equipment and improving product
quality and productivity as well as brand building, undertaken during the
economic downturn three years ago. Consequently, they are in a better
position to compete with the recovery in external demand and better global
economic performance.
|
|
In 2006, the International Trade and Industry Ministry's effort to launch a
free trade agreement (FTA) with the US have propel the local textile and
apparel industry into the global market place and assist the industry
players to gain market shares in US. FTA could pave the way for import
duties for Malaysian textile and apparel products entering US to be reduced
or abolished and thus bring down the prices of the products.
|
|
There are over 1,000 factories involved in the textile and apparel industry
and the competitiveness are highly dependent on their ability to deliver
good quality products on time with competitive pricing. Malaysia is
dependent on imports for the basic natural raw materials for the textile
and apparel industry. There is increasing competition from low-cost
producing countries like China, Thailand, Indonesia and Vietnam.
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Decline
|
COMMENTS
|
Established in 2007 as a private limited company, the SC is principally engaged
in the manufacturing of textile and fibre products. The SC is a new
start-up and only activates it business recently. It is only deals with a
very limited number of clients. Its position in the industry is not stable.
Presently, the issued and paid up capital of the SC standing at RM100,000.
|
|
We noted that all of the SC's products are exported to overseas countries.
Thus, the business risk is well mitigated. However, as an export-oriented
company, the SC faces high foreign exchange risk. The SC's business
operations is overseen by its Director, Udeshi Rajen Dwarkadas. Overall,
its management capability is weak.
|
|
As the SC is a new start-up, no financial accounts are available for
analysis. As such, we are not able to comment on the SC's current financial
standing.
|
|
Investigation revealed that the SC's supplies are sourced from both local
and overseas suppliers especially from India. Hence, the SC is subjected to
currency fluctuation risk and high operating costs.
|
|
The SC is clear of any litigation action.
|
|
The industry demonstrates downward trend and the immediate outlook for the
industry is uncertain. If the SC fail to anticipate or respond timely to
changes in the markets, the unfavourable outlook of the industry would
adversely affect the SC's operating results as its market shares would
likely to fall.
|
|
In view of the above, we only recommend a small amount of credit be
proceeded to the SC with guarantee.
|
|
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