MSM to start operations in Dubai on Dec 1

by **Cals** Tue 06 Oct 2015, 02:04

MSM to start operations in Dubai on Dec 1

By Tan Siew Mung / theedgemarkets.com | October 5, 2015 : 8:59 PM MYT

KUALA LUMPUR (Oct 5): [size=16]MSM Malaysia Holdings Bhd ([You must be registered and logged in to see this image.] Valuation: 2.40, Fundamental: 2.40), the country’s largest refined sugar producer, will begin business operations in Dubai, the United Arab Emirates, on Dec 1, as part of its plans to become a top 10 global player by 2020.

In a statement today, MSM said MSM Trading International DMCC (MSM Trading) has received its trading licence from the Dubai Multi Commodities Centre (DMCC).

"From January 2016 onwards, MSM Trading will be responsible to procure and supply raw sugar for MSM Group ([You must be registered and logged in to see this image.]Valuation: 2.10, Fundamental: 1.10)’s requirements. It will also undertake sugar trading activities, both in raw and refined sugar to cater for the growing demand in the region," said MSM.

The group's initial target is to trade raw sugar volume of up to 200,000 tonnes and sell refined sugar volume of up to 250,000 tonnes per year.

MSM president and group chief executive officer Datuk Sheikh Awab Sheikh Abod said with its footing in Dubai, MSM will have the opportunity to diversify its income stream from foreign earnings, through destination trading of raw and refined sugar, on top of export sales of refined sugar.

“Due to the preferable time-zone and ideal location, we have selected Dubai, which sits in the middle of the global sugar trading routes such as Asia, Europe and America. The location is also much closer to other big sugar players in the UK and Switzerland, which will enable us to tap into their market research and other resources that will be much beneficial and advantageous to MSM,” Sheikh Awab said.

“The trading hours in the derivatives market will be more synchronised in Dubai compared with Malaysia, due to the narrower time difference. Our office will be nearer to our brokers in London, which will make the business quicker and efficient, as time is very crucial in the trading business,” he added.

MSM said the setup of MSM Trading in the Middle East will be supported by a representative office located in Indonesia, which is expected to become operational in January 2016.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
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