You think, I think.

Yup, you are right. VADS definitely not getting any special preferences. We are understand that this is the USUAL preference you got.

Quoted "I think we have to fight like everyone else. I don't think we have any special preference even though we are a GLC,".

I "think" you are not telling the truth. I "think" you think the wrong thing.

Well, we all know the inner workings of GLCs.


Anyway, VADS is a quite a decent company to invest in. Backed by TM, what else you afraid of.

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Original Source: Click Here

18-06-2007: VADS not getting special preference
By Kevin Tan
Email us your feedback at fd@bizedge.com


VADS Bhd is not finding it any easier to get a slice of the huge allocation for information technology projects under the Ninth Malaysia Plan (9MP) despite it being a government-linked company (GLC), its chief executive officer Dennis Koh said.

"I think we have to fight like everyone else. I don't think we have any special preference even though we are a GLC," he told The Edge Financial Daily in an interview recently.

Koh said the company was in a good position to serve the public sector as it had a track record of delivering quality services for its customers in the private sector.

It could also leverage on its existing infrastructure such as contact, data and security centres as well as wide area network (WAN), he said.

Thus, VADS would not need to build new infrastructure and this gives the company the edge to win government projects, especially those that require quick delivery.

VADS, which is a subsidiary of Telekom Malaysia Bhd (TM), is eyeing lucrative contracts from the public sector following the government's allocation of RM12.88 billion for IT under the 9MP.

On its strategy to win projects under the 9MP, Koh said the company had been advocating the advantage of buying services rather than equipment, as there was the risk of inability to operate and maintain the equipment.

"If people are worried about delivery, this is where using managed services ensures delivery of the service," he added.

Koh said organisations that outsourced their IT projects would not only get the services they required but would have the ability to deal with change.

On the perception that VADS relied on its link to its parent company for jobs, Koh said this was due to the limelight given to the huge projects that it secured from TM, especially those for the provision of contact centre services (CCS).

"It is just that the big deals that we announced happened to be (with) Telekom," Koh said, adding that 90% of its customers were actually unrelated to TM and a large chunk of its revenue came from managed network services (MNS).

As at Dec 31, 2006, VADS derived 55% of its RM368.09 million from MNS while CCS and system integration services (SIS) contributed 29% and 16% respectively.

Despite the high profile of its CCS jobs, the company expected MNS to continue to be its largest source of revenue this year, Koh said.

VADS recently announced that it would acquire Meganet Communications Sdn Bhd for RM8.2 million in cash from TM and NTT Communications Corporation of Japan.

Koh said the acquisition would strengthen its MNS capabilities as it allows VADS, which mostly focused on wide area network (WAN), to broaden its suite of solutions to include local area network (LAN).

"With Meganet experience in LAN systems, it will enhance our delivery for the contracts that we have secured," he added.

Among others, Meganet was involved in providing the security management systems for all TM's buildings and implementing the IT network for the Ministry of Domestic Trade and Consumer Affairs, and the Immigration Department.

In terms of CCS, Koh said the company did not face much competition from other local players.

With 3,200 customer service representatives in seven contact centres nationwide, it was the biggest player in the industry, he said.

Ranking of Malaysian Banks based on Market Capitalization

The following figure shows the market capitalization ranking of our very own banks.



Let us try to guess which of these banks will merge and buy more on these counters. :p

Source from Business Times.

Who got the Money $$$?

Who got the money? I mean CASH!!!! You guess.

Of course, YTLPower.

The intention of YTLPower to acquire the previously mentioned power plants.

Previous Post

Since this is not a surprise, I wouldn't hope much changing in YTLPower target price.

I call a BUY on YTLPower on a target price of RM3.00, a potential 25% upside based on the closing price of RM2.39 yesterday.

Usually, YTL's practice is to secure facilities in the form of bonds, loans, warrants, etc instead of using the cash in hand or treasury shares to sufficiently funding projects/acquisitions. Pros and cons. You can expect to see marginally higher assets leverage of YTL in the future. Good, I like it.

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YTL Power open to buying plants in Singapore

KUALA LUMPUR: YTL Power International Bhd. is open to buying power plants in Singapore, its managing director said Tuesday.

YTL Power was interested in investing in all types of infrastructure projects, "especially in stable countries like Singapore,'' Francis Yeoh said on the sidelines of an economic conference.

His remarks follow a recent move by Singapore's state-owned investment company, Temasek Holdings Pte. Ltd., to revive the sale of three domestic power generation companies, possibly in the next 12 to 18 months.

The companies - PowerSeraya Ltd., Senoko Power Ltd. and Tuas Power Ltd. - supply about 90 percent of Singapore's power and have a combined generation capacity of 9,070 megawatts.

Sale of the companies has been delayed several times since 1998.

In 2002, analysts estimated the companies were worth about 2 billion Singapore dollars (US$1.3 billion; euro0.97 billion) each.

Outside Malaysia, YTL Power - a subsidiary of YTL Corp. - has power generation assets in Indonesia. - AP