IOI

Industry observers say IOI Corp Bhd's brush with the Roundtable on Sustainable Palm Oil (RSPO) is not expected to affect the group's operations for now as it will merely delay the certification of new estates and do not expect the suspension to affect the group's operations. Given the group's willingness to work with RSPO, this issue will be resolved amicably in due course.The issue was expected to be resolved amicably in “due course” given the group's willingness to co-operate. IOI has so far obtained RSPO certification for seven out of its 12 palm oil mills in Malaysia and has set a target of having all of its 78 local estates audited by year-end (2011). In the event that the current issue was not resolved quickly, it could eventually affect IOI Corp's sales to key markets like Europe .

POS

Should the government relax the restrictions on the use of land that the Federal Land Commission (FLC) has given to Pos Malaysia, the redevelopment of some of the land could probably earn the group hefty gains. However, all this is dependent on the (amendment of) the Postal Land Act. Thus far, there have been no updates on the proposed amendment to the Act which would allow additional non-post-related services to be carried out on the land. If the amendments are revised favourably in terms of land use, Pos Malaysia’s valuation would increase.