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3decades

 

MIRA INFORM REPORT

 

 

Report No. :

487537

Report Date :

20.01.2018

 

IDENTIFICATION DETAILS

 

Name :

SIME DARBY GLOBAL TRADING (LABUAN) LIMITED

 

 

Registered Office :

Level 15 (A1) Main Office Tower Financial Park Labuan Jalan Merdeka, 87000 Labuan, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Date of Incorporation :

Not Available

 

 

Com. Reg. No.:

LL13148

 

 

Legal Form :

Offshore company

 

 

Line of Business :

The Subject is principally engaged in the commodity trading.

 

 

No. of Employees :

Not available

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

C

 

Credit Rating

Explanation

Rating Comments

C

Medium High Risk

Business dealings permissible preferably on secured basis

 

 

Status :

Offshore company

 

 

Payment Behaviour :

Unknown

 

 

Litigation :

--

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List

 

Country Name

Previous Rating

(30.06.2017)

Current Rating

(30.09.2017)

Malaysia

A2

A2

 

Risk Category

ECGC

Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

MALAYSIA - ECONOMIC OVERVIEW

 

Malaysia, an upper middle-income country, has transformed itself since the 1970s from a producer of raw materials into a multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move further up the value-added production chain by attracting investments in high technology, knowledge-based industries and services. NAJIB's Economic Transformation Program is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. Malaysia is vulnerable to a fall in world commodity prices or a general slowdown in global economic activity.

The NAJIB administration is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Domestic demand continues to anchor economic growth, supported mainly by private consumption, which accounts for 53% of GDP. Nevertheless, exports - particularly of electronics, oil and gas, and palm oil - remain a significant driver of the economy. In 2015, gross exports of goods and services were equivalent to 73% of GDP. The oil and gas sector supplied about 22% of government revenue in 2015, down significantly from prior years amid a decline in commodity prices and diversification of government revenues. Malaysia has embarked on a fiscal reform program aimed at achieving a balanced budget by 2020, including rationalization of subsidies and the 2015 introduction of a 6% value added tax. Sustained low commodity prices throughout the period not only strained government finances, but also shrunk Malaysia’s current account surplus and weighed heavily on the Malaysian ringgit, which was among the region’s worst performing currencies during 2015. The ringgit rebounded in early 2016, but hit new lows following the US presidential election amid a broader selloff of emerging market assets.

Bank Negara Malaysia (the central bank) maintains adequate foreign exchange reserves; a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments, although it remains vulnerable to volatile global capital flows. In order to increase Malaysia’s competitiveness, Prime Minister NAJIB raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but retreated in 2013 after he encountered significant opposition from Malay nationalists and other vested interests. In September 2013 NAJIB launched the new Bumiputra Economic Empowerment Program, policies that favor and advance the economic condition of ethnic Malays.

Malaysia signed the 12-nation Trans-Pacific Partnership (TPP) free trade agreement in February 2016, although the future of the TPP remains unclear following the US withdrawal from the agreement. Along with nine other ASEAN members, Malaysia established the ASEAN Economic Community in 2015, which aims to advance regional economic integration.

 

Source : CIA

 

 

EXECUTIVE SUMMARY

 

REGISTRATION NO.

:

LL13148

COMPANY NAME

:

SIME DARBY GLOBAL TRADING (LABUAN) LIMITED

FORMER NAME

:

N/A

INCORPORATION DATE

:

N/A

COMPANY STATUS

:

EXIST

LEGAL FORM

:

OFFSHORE COMPANY

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

Level 15 (A1) Main Office Tower Financial Park Labuan Jalan Merdeka, 87000 LABUAN, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

N/A

TEL.NO.

:

N/A

FAX.NO.

:

N/A

CONTACT PERSON

:

N/A

INDUSTRY CODE

:

469

PRINCIPAL ACTIVITY

:

COMMODITY TRADING

ISSUED AND PAID UP CAPITAL

:

N/A

SALES

:

N/A

NET WORTH

:

N/A

STAFF STRENGTH

:

N/A

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

N/A

PAYMENT

:

UNKNOWN

MANAGEMENT CAPABILITY

:

N/A

COMMERCIAL RISK

:

N/A

CURRENCY EXPOSURE

:

N/A

GENERAL REPUTATION

:

N/A

INDUSTRY OUTLOOK

:

MARGINAL GROWTH

 

 

HISTORY / BACKGROUND

 

The Subject is principally engaged in the (as a / as an) commodity trading.

The Subject is not listed on Bursa Malaysia (Malaysia Stock Exchange).

CHARACTERISTICS OF OFFSHORE COMPANIES

 

To participate in the offshore activities and enjoy the special tax advantage provided under the Labuan Offshore Business Activity Tax Act 1990, an entity must be an offshore company.
 An offshore company in Labuan shall have the following characteristics:

 

(a) It must be a company limited by shares (sec 14(3) of the Offshore Companies Act 1990);

(b) Any person may form an offshore company by subscribing to a memorandum;

(c) It is required to engage a trust company which is a company registered under the Labuan Trust Companies Act 1990 to discharge its statutory duties seince all documents required to be filed with the Labuan Financial Services Authority must be filed through a trust company;

(d) There is no minimum capital requirement;

(e) It can be alter its share capital by a special resolution (sec. 51(10 of the Offshore Companies Act 1990);

(f) It can reduce its share capita special resolution (sec.51(10 of the Offshore Companies Act 1990);

(g) It may purchase its own shares (sec. 48(2)(3) of the Offshore Companies Act 1990); and;

(h) There is no restriction in issuing share warrants.

PROHIBITED ACTIVITES

Offshore companies are prohibited from carrying on the following activities:

(a) the business of banking or insurance or any such similar business unless it is licensed so to do under the relevant laws currently in force in Malaysia;

(b) it must only carry on business in, from or through Labuan;

(c) it must not:

(1) except as permitted by the Offshore Banking Act 1990 or by the Labuan Financial Services Authority carry on business with a resident of Malaysia;

(2) except as permitted by the Offshore Banking Act 1990, carry on banking business;

(3) Except for defraying its administrative and statutory expenses and where Sec. 147 of the Offshore Companies Act 1990 applies, carry on business in Malaysian currency;

(4) Except as permitted by the Offshore Insurance Act 1990, carry on business as an insurance or a reinsurance company;

(5) Carry on shipping or petroleum operations in Malaysia; or

(6) Carry on any business of a trust company.

PERMITTED ACTIVIES

An offshore company may do the following:

(a) Make or maintain deposits with a person carrying on business within Malaysia;

(b) Make or maintain professional contacts with any counsel and attorney, accountant, book-keeper, trust company, domestic company wholly owned by a trust company made available by the trust company to act or be appointed as a resident director or a resident secretary of an offshore company;

(c) Prepare or maintain books and record with Malaysia;

(d) Hold, within Malaysia, meetings of its directors or members;

(e) Acquire or hold any lease of any property for the purpose of its operation or as accommodation for its offices or employees; or

(f) Hold shares, debt obligations or other securities for the purposes of a transaction entered into in the ordinary course of business in connection with the lending of money.

No shareholders was found in our databank at the time of investigation

 

 

DIRECTOR


No director found in our databank.

 

MANAGEMENT


No data found in our databank.

 

AUDITOR


No Auditor found in our databank

 

COMPANY SECRETARIES


No company secretary was found in our databank.

 

BANKING


No Banker found in our databank.

 

ENCUMBRANCE (S)


No encumbrance was found in our databank at the time of investigation.

 

 

LITIGATION CHECK - SUBJECT COMPANY AS A DEFENDANT


* A check has been conducted in our databank againt the Subject whether the Subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.

No legal action was found in our databank.

No winding up petition was found in our databank.

 

DEFAULTER CHECK AGAINST SUBJECT


* We have checked through the Subject in our defaulters' database which comprised of debtors that have been blacklisted by our customers and debtors that have been placed or assigned to us for collection.

No blacklisted record & debt collection case was found in our defaulters' databank.

 

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

N/A

Overseas

:

N/A

 

 

CLIENTELE


No data found in our databank.



OPERATIONS

 

Goods Traded

:

COMMODITY

 

Branch

:

NO

 

Other Information:


The Subject is principally engaged in the (as a / as an) commodity trading.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

N/A

Match

:

N/A

Address Provided by Client

:

LEVEL 7, MAIN BLOCK, PLANTATION TOWER 2 JALAN PJU 1A/7, ARA DAMANSARA, 47301 PENTALING JAYA. SELANGOR DARUL EHSAN

Current Address

:

N/A

Match

:

N/A

Latest Financial Accounts

:

NO

 

Other Investigations


We were unable to contact the Subject and its Directors.

We contacted the Subject's Corporate office and she only provided limited information.

The address provided is the Subject's corporate office.


FINANCIAL ANALYSIS

 

No latest financial accounts are available at the Registry Office, thus we are not able to comment on the Subject's financial performance.

Overall financial condition of the Subject : N/A

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2013

2014

2015

2016*

2017**

Population ( Million)

29.8

30.0

31.0

31.7

32.1

Gross Domestic Products ( % )

5.3

6.0

4.6

4.9

4.2

Domestic Demand ( % )

5.6

6.4

6.2

6.3

-

Private Expenditure ( % )

8.6

7.9

6.9

7.4

-

Consumption ( % )

5.7

6.5

6.1

5.1

-

Investment ( % )

13.3

12.0

8.1

10.0

12.0

Public Expenditure ( % )

4.4

2.3

4.2

3.3

-

Consumption ( % )

(1.2)

2.1

4.3

2.0

-

Investment ( % )

4.2

2.6

(1.0)

1.1

-

Balance of Trade ( MYR Million )

71,298

82,480

91,577

52,206

-

Government Finance ( MYR Million )

(38,584)

(37,414)

(37,194)

(38,727)

(40,344)

Government Finance to GDP / Fiscal Deficit ( % )

(3.8)

(3.4)

(3.2)

(3.1)

(3.0)

Inflation ( % Change in Composite CPI)

2.5

3.2

4.0

-

-

Unemployment Rate

3.0

2.9

3.1

3.7

3.8

Net International Reserves ( MYR Billion )

422

417

390

391

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

3.10

4.00

3.50

-

-

Average 3 Months of Non-performing Loans ( % )

2.00

2.10

2.00

1.90

-

Average Base Lending Rate ( % )

6.53

6.85

6.79

6.81

-

Business Loans Disbursed( % )

(1.0)

18.6

2.2

-

-

Foreign Investment ( MYR Million )

38,238.0

43,486.6

43,435.0

-

-

Consumer Loans ( % )

-

-

-

-

-

Registration of New Companies ( No. )

46,321

49,203

45,658

43,255

-

Registration of New Companies ( % )

1.9

6.1

(7.2)

(5.3)

-

Liquidation of Companies ( No. )

13,788

11,099

7,066

-

-

Liquidation of Companies ( % )

(15.4)

(19.5)

(36.3)

-

-

Registration of New Business ( No. )

329,895

332,723

364,230

376,720

-

Registration of New Business ( % )

2.0

1.0

9.0

3.0

-

Business Dissolved ( No. )

18,161

21,436

-

-

-

Business Dissolved ( % )

(10.9)

18.0

-

-

-

Sales of New Passenger Cars (' 000 Unit )

576.7

598.4

591.3

464.4

527.8

Cellular Phone Subscribers ( Million )

43.0

44.0

44.2

44.0

-

Tourist Arrival ( Million Persons )

25.72

27.40

25.70

30.20

30.10

Hotel Occupancy Rate ( % )

62.6

63.6

58.8

61.2

-

Credit Cards Spending ( % )

6.0

5.8

6.8

6.3

-

Bad Cheque Offenders (No.)

28,876

-

-

-

-

Individual Bankruptcy ( No.)

21,984

22,351

18,457

-

-

Individual Bankruptcy ( % )

12.3

1.7

(17.4)

-

-

 

INDUSTRIES ( % of Growth ):

2013

2014

2015

2016*

2017**

Agriculture

2.0

2.1

1.2

(3.3)

1.5

Palm Oil

2.6

6.7

7.0

8.2

-

Rubber

(10.1)

(10.4)

(11.0)

(12.3)

-

Forestry & Logging

(7.8)

(4.2)

(7.2)

(4.8)

-

Fishing

1.6

2.7

2.1

2.9

-

Other Agriculture

8.2

6.2

6.0

6.8

-

Industry Non-Performing Loans ( MYR Million )

314.9

303.8

343.7

420.3

-

% of Industry Non-Performing Loans

1.4

1.4

1.5

1.8

-

Mining

1.2

3.5

4.7

1.1

1.4

Oil & Gas

2.0

3.0

3.5

4.5

-

Other Mining

47.6

46.6

47.1

42.6

-

Industry Non-performing Loans ( MYR Million )

152.7

63.5

180.1

190.0

-

% of Industry Non-performing Loans

0.7

0.3

0.8

0.8

-

Manufacturing #

3.4

6.2

4.9

4.0

4.1

Exported-oriented Industries

3.3

5.6

4.8

4.7

-

Electrical & Electronics

6.9

11.8

9.2

7.0

-

Rubber Products

11.7

(1.3)

5.1

3.9

-

Wood Products

(2.7)

7.8

7.0

7.0

-

Textiles & Apparel

(2.6)

10.8

7.5

6.7

-

Domestic-oriented Industries

5.9

7.7

4.7

3.0

-

Food, Beverages & Tobacco

3.6

6.1

8.9

7.5

-

Chemical & Chemical Products

5.6

1.4

3.5

5.1

-

Plastic Products

3.4

2.7

3.9

5.1

-

Iron & Steel

5.0

2.8

1.6

2.2

-

Fabricated Metal Products

9.9

2.8

4.6

5.1

-

Non-metallic Mineral

(2.0)

6.9

6.8

5.5

-

Transport Equipment

13.8

14.4

5.2

(3.1)

-

Paper & Paper Products

1.8

4.7

3.2

3.9

-

Crude Oil Refineries

11.8

13.0

14.3

13.7

-

Industry Non-Performing Loans ( MYR Million )

6,165.3

5,730.8

4,243.7

4,214.1

-

% of Industry Non-Performing Loans

27.2

25.6

19.0

18.5

-

Construction

10.6

11.7

8.2

8.7

8.3

Industry Non-Performing Loans ( MYR Million )

1,658.2

1,666.4

1,638.0

1,793.9

-

% of Industry Non-Performing Loans

7.3

7.5

7.3

7.9

-

Services

5.9

6.6

5.1

5.6

5.7

Electric, Gas & Water

4.4

3.8

3.5

5.9

5.0

Transport, Storage & Communication

7.30

7.50

7.55

7.55

7.70

Wholesale, Retail, Hotel & Restaurant

6.3

8.9

6.9

6.2

6.7

Finance, Insurance & Real Estate

3.7

4.7

4.3

6.6

-

Government Services

7.4

6.2

4.0

6.5

4.5

Other Services

5.6

4.8

4.7

4.6

5.3

Industry Non-Performing Loans ( MYR Million )

5,084.6

5,373.5

6,806.6

7,190.6

-

% of Industry Non-Performing Loans

22.5

24.1

30.5

31.5

-

* Estimate / Preliminary

** Forecast

# Based On Manufacturing Production Index 

 

 

INDUSTRY ANALYSIS

 

MSIC CODE

 

469 : Non-specialized wholesale trade

INDUSTRY :

TRADING

Malaysia's retail sales will likely grow 3.7% in 2017, slower than previously estimated 3.9%, as consumer sentiment remains weak amid rising cost of living in Southeast Asia's third largest economy.

The cut in forecast was the second of such revision by Retail Group Malaysia, a retail consulting firm, from an initial target of 5% retail sales expansion pace in 2017. The estimate follows a survey of members of Malaysia Retailers Association on their second quarter performance and outlook for the year. Retail sales grew 1.7% in 2016.

According to Retail Group Malaysia (RGM), Malaysian retailers have seen the sales expanded 4.9 % from April to June 2017, reversing a dismal performance in first three months 2017. For the first six months 2016, the retail sale growth rate was 2.5 %. However, the businesses in the next three months are not optimistic, estimating an average growth rate of 2.9 %. The department stores cum supermarket operators are expecting to return to red with a contraction of 2.5 %. Similarly, the department store operators expect their businesses to dip with a negative 1.5 %.

The rise of purchasing power will continue to fall behind the increase in prices of retail goods. More retail goods are expected to raise prices because of higher fuel prices in recent months.

The wholesale trade sub-sector index increased 5.9 % to 165.9 points year-on-year (y-o-y) driven mainly by other specialised wholesale (7.5 %), wholesale of agricultural raw materials and livestock (7.3 %) and wholesale of machinery, equipment and supplies (6.2 %).

Over 60% of Gross Domestic Product (GDP) is contributed by domestic consumption. Therefore the wholesale and retail sector plays a crucial role in driving Malaysia's growth over the next decade despite the ongoing global economic slowdown. By 2020, Malaysia's wholesale and retail sector is expected to boost the country's total Gross National Income (GNI) by RM156 billion, creating 454,190 new jobs.

OVERALL INDUSTRY OUTLOOK : Marginal Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 


During our investigation, we were unable to contact the Subject as well as its Directors. In view of this, the Subject's existence in the market is in doubt. Based on the above condition, the Subject is not qualified for credit assessment.



FINANCIAL ACCOUNT


No latest financial accounts are available at the Registry Office.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 63.72

UK Pound

1

INR 88.64

Euro

1

INR 78.14

MYR

1

INR 16.21

 

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

NIS

 

 

Report Prepared by :

TRU

                                                


 

RATING EXPLANATIONS

 

Credit Rating

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

NT

No Trace

No recommendation can be done as the business is not traceable

 

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors are as follows:

 

·         Financial condition covering various ratios

·         Company background and operations size

·         Promoters / Management background

·         Payment record

·         Litigation against the subject

·         Industry scenario / competitor analysis

·         Supplier / Customer / Banker review (wherever available)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.