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New Straits Times
10 hours ago
- Business
- New Straits Times
TNB ordered to pay RM547k in late interest to landowner
PUTRAJAYA: Tenaga Nasional Bhd (TNB) has been ordered to pay RM547,105 in late payment interest to a company for delays in compensating it for land used in a transmission line project. A three-member Court of Appeal panel led by Federal Court judge Datuk Lee Swee Seng said the national utility giant must pay the sum to Lambang Kelana Sdn Bhd after finding that the company had been unfairly deprived of its money for over five years due to administrative delays. Other members of the bench were Court of Appeal judges Datuk Azimah Omar and Datuk Wong Kian Kheong. According to court documents, in 2007, TNB had prematurely entered Lambang Kelana's land without due compliance with wayleave procedures under Section 11 of the Electricity Supply Act to install electrical infrastructure. The section stipulates that utility companies must follow specific procedures before entering private land to install or build electrical infrastructure, including giving formal notice to landowners and paying full compensation for any disturbance or loss of use of the land. Lambang Kelana was neither served the statutory notice nor paid proper compensation for the loss of the portion of land acquired as wayleave for TNB. The dispute led to a protracted legal battle, and TNB only paid RM2.1 million in compensation in 2020. However, the payment did not include any interest for the long delay. In 2021, the Negri Sembilan State Authority decided that Lambang Kelana should receive RM1,369,332.95 in late payment interest for the delay in compensation from October 2015 to December 2020. However, TNB filed a judicial review to challenge the decision in the High Court and succeeded in getting it overturned. Azimah, who delivered the unanimous decision in dismissing the lower court's ruling, said the trial judge had misinterpreted the law by adopting a narrow and literal reading of the relevant provisions. "To deprive the appellant of its rightful late payment charges would certainly transgress upon the appellant's constitutional rights safeguarded under Article 13(2) of the Federal Constitution. "Despite the delay caused by the Land Administrator, TNB was still unjustly enriched by being able to utilise and earn interest on the monies that were supposed to be paid to Lambang Kelana for the entire duration of the delay," she said. The appellate court said any interpretation of the law that allows government authorities or licensees to delay compensation with impunity would be unjust. "We are certain that no statute ever legislated within our nation would promote a statutory authority to delay justice with impunity at the expense of unjust losses incurred against innocent landowners. "If that be the case, then TNB would stand to unjustly benefit by holding onto monies that should have been paid to landowners, courtesy of delays by the Land Administrator. "In the meantime, the Land Administrator would not suffer a single sen for the entire duration of the delay. The only party to suffer losses would be the landowner. "Such an interpretation would truly be absurd and unjust," the court added. The court also did not make any order for costs. Lambang Kelana was represented by lawyers Yeoh Cho Kheong and T. Subbbiah, while lawyer David Dinesh Mathew appeared for TNB.
New Straits Times
18 hours ago
- Business
- New Straits Times
TNB ordered to pay RM1.3mil in late interest to landowner
PUTRAJAYA: Tenaga Nasional Bhd (TNB) has been ordered to pay RM1.3 million in late payment interest to a company for delays in compensating it for land used in a transmission line project. A three-member Court of Appeal panel led by Federal Court judge Datuk Lee Swee Seng said the national utility giant must pay the sum to Lambang Kelana Sdn Bhd after finding that the company had been unfairly deprived of its money for over five years due to administrative delays. Other members of the bench were Court of Appeal judges Datuk Azimah Omar and Datuk Wong Kian Kheong. According to court documents, in 2007, TNB had prematurely entered Lambang Kelana's land without due compliance with wayleave procedures under Section 11 of the Electricity Supply Act to install electrical infrastructure. The section stipulates that utility companies must follow specific procedures before entering private land to install or build electrical infrastructure, including giving formal notice to landowners and paying full compensation for any disturbance or loss of use of the land. Lambang Kelana was neither served the statutory notice nor paid proper compensation for the loss of the portion of land acquired as wayleave for TNB. The dispute led to a protracted legal battle, and TNB only paid RM2.1 million in compensation in 2020. However, the payment did not include any interest for the long delay. In 2021, the Negri Sembilan State Authority decided that Lambang Kelana should receive RM1,369,332.95 in late payment interest for the delay in compensation from October 2015 to December 2020. However, TNB filed a judicial review to challenge the decision in the High Court and succeeded in getting it overturned. Azimah, who delivered the unanimous decision in dismissing the lower court's ruling, said the trial judge had misinterpreted the law by adopting a narrow and literal reading of the relevant provisions. "To deprive the appellant of its rightful late payment charges would certainly transgress upon the appellant's constitutional rights safeguarded under Article 13(2) of the Federal Constitution. "Despite the delay caused by the Land Administrator, TNB was still unjustly enriched by being able to utilise and earn interest on the monies that were supposed to be paid to Lambang Kelana for the entire duration of the delay," she said. The appellate court said any interpretation of the law that allows government authorities or licensees to delay compensation with impunity would be unjust. "We are certain that no statute ever legislated within our nation would promote a statutory authority to delay justice with impunity at the expense of unjust losses incurred against innocent landowners. "If that be the case, then TNB would stand to unjustly benefit by holding onto monies that should have been paid to landowners, courtesy of delays by the Land Administrator. "In the meantime, the Land Administrator would not suffer a single sen for the entire duration of the delay. The only party to suffer losses would be the landowner. "Such an interpretation would truly be absurd and unjust," the court added. The court also did not make any order for costs.
New Straits Times
6 days ago
- Business
- New Straits Times
Tropicana reverses Q1 2024 loss with RM1.3mil net profit in Q1 2025
KUALA LUMPUR: Tropicana Corporation Bhd posted a net profit of RM1.3 million for the first quarter to March 31 2025 to reverse its RM9.1 million net loss a year ago. The company's revenue, however, fell 10.6 per cent to RM260.4 million from RM291.3 million previously. Tropicana, in a statement today, said this was due to the completion of the divestment of several investment properties, resulting in a reduction of recurring income. On a positive note, its finance costs were lower in line with its ongoing strategy to reduce overall debt levels through asset monetisation initiatives. "We will continue to strive forward and strengthen our stakeholder engagements, focusing on value creation as well as establishing strategic marketing and sales campaigns across our online and offline platforms. "We believe that the demand for properties in Tropicana's established, mature and developing townships will persist and that the property market should maintain its positive momentum in 2025," it added. Tropicana said its unbilled sales stood at RM2.1 billion, placing the company in a comfortable position to deliver sustainable earnings. The company said 10 of its development across Malaysia achieved full take-up over the past few months, including Tropicana Miyu, Edelweiss Serviced Residences, Freesia Residences, Gemala Residences, Hana Residences and SouthPlace Residences in the Klang Valley. In the northern and southern regions, Assana and Merissa Serviced Suites in Langkawi, as well as Aster Heights and Summit Commercial Hub in Johor, posted full take-up. Tropicana Alam, the company's latest township at Puncak Alam, introduced its Avisa Residences show units, resulting in a positive 76 per cent take-up for the first phase. Tropicana's current landbank stood at 540.73 hectares, with a total potential gross development value of RM168.4 billion The company said the recent appointment of world-class architectural firm Skidmore, Owings & Merrill to lead the transformation of 65.97 hectares Lido Waterfront Boulevard (LIDO) will add more value, placing LIDO as its most prime piece of land in Johor. "This strong land portfolio positions the group to unlock significant value, drive growth and deliver sustainable performance in the next few years," it added.
New Straits Times
6 days ago
- Business
- New Straits Times
Johor data centres drive revenue but strain resources, says Amanah leader
JOHOR BARU: Johor's aggressive push to become Southeast Asia's data centre hub has drawn fresh scrutiny, with a leader from Parti Amanah Negara (Amanah) warning of potential strain on the state's power grid, water supply and environment. Amanah Johor deputy chief Dzulkefly Ahmad said he supports the concerns raised by Kukup assemblyman Jefridin Atan during the recent state assembly sitting, particularly over the long-term sustainability of critical resources. During the session, the Johor government was urged to review the guidelines for data centre development following concerns about environmental impact and resource sustainability. Jefridin said the main issues are high energy and water requirements to support data centre operations, which could strain existing utility systems. Dzulkefly revealed that Johor has approved 50 data centre projects within two years, including in Sedenak Tech Park, Nusajaya Tech Park, YTL DC Park and SiLC Nusajaya, with tech giants like Microsoft, ByteDance and Equinix among the investors. "The conversion of agricultural land and premium payments for industrial use are believed to be key contributors to Johor's RM2.1 billion revenue surge in 2024," he said in a statement today. Malaysia, especially Johor, has emerged as a top destination for data centre investments following Singapore's moratorium on new builds between 2019 and 2022. Investors are drawn by lower land and utility costs, proximity to Singapore, and generous tax breaks. Dzulkefly, however, warned that this growth comes at a cost. "Power demands from data centres in Malaysia have reached 11,000MW, nearly 40 per cent of Peninsular Malaysia's total generation capacity. "This could pressure the national power grid," he said. Water usage is also a concern. Environmental group Sahabat Alam Malaysia (SAM) estimates a 100MW data centre consumes over 4 million litres of clean water daily or equivalent to the needs of a town with 10,000 people. He said Johor buys 16 million gallons (60.56 million litres) of treated water daily from Singapore, exceeding the 5 million gallons (18.9 million litres) stipulated under the 1962 agreement, due to rising domestic demand. In March, the Johor government announced a RM3.5 billion plan to build three new water treatment plants to boost capacity by 41 per cent. The federal government is also investing RM1.5 billion in three water reservoirs, scheduled for completion by 2030. Dzulkefly further raised concerns over deforestation and land clearing for large-scale data centre campuses. He alleged that some centres occupy up to 138 acres (15.37ha), potentially threatening water catchment areas and biodiversity. He added that 49 per cent of the electricity used by data centres comes from coal-fired power plants, significantly contributing to carbon emissions. Meanwhile, Johor Investment, Trade and Consumer Affairs committee chairman Lee Ting Han said the state government had stepped up regulatory oversight on data centre projects with the establishment of the Data Centre Development Coordination Committee in June last year. He said the committee aims to ensure sustainable growth in the booming digital infrastructure sector. "Every application for data centre development is now subject to a multi-agency vetting process, requiring confirmation of power supply from Tenaga Nasional Behd (TNB), water supply from Ranhill SAJ, and right-of-way (ROW) clearances for infrastructure works. "Beyond basic utilities, we are also enforcing evaluations based on Power Usage Effectiveness (PUE) and Water Usage Effectiveness (WUE) to uphold international sustainability standards," Lee told the New Straits Times when contacted. He said the updated regulations also include increased scrutiny of the environmental footprint of energy-intensive data centres, particularly in high-demand zones like Johor. At the federal level, the Data Centre Task Force (DCTF) — co-chaired by the Investment, Trade and Industry and Digital Ministries — was set up to align national policy with sustainable data infrastructure growth. The task force is also expected to streamline coordination and attract high-value investments linked to artificial intelligence (AI) and cloud computing. "Data centres are vital to Malaysia's aspirations to become a regional digital hub. "We are ensuring Johor's rapid economic development does not come at the expense of its environment," Lee said. He said the state's strategic oversight model, anchored on sustainability and federal cooperation, positions Johor as a model for balanced, data-driven development under the Malaysia Digital Economy Blueprint.
BusinessToday
23-05-2025
- Business
- BusinessToday
Looking Beyond YTL Power's Short Term Profit Softness
RHB Investment Bank Bhd (RHB Research), MIDF Amanah Investment Bank Bhd (MIDF Research) and CIMB Investment Bank Bhd (CIMB Securities) have all maintained their BUY calls on YTL Power International Bhd following the group's third quarter results for financial year 2025, with target prices revised to RM4.18, RM4.51 and RM4.00 respectively. The optimism centres on growth in its data centre and UK water operations, despite near-term profit softness from its Singapore power unit, PowerSeraya. RHB Research noted the group's core profit for 9MFY25 of RM2.1 billion, down 15% year-on-year, came in within expectations at 52% of RHB's full-year forecast. The house highlighted that the earnings decline, driven by a 31% drop in PowerSeraya's contribution, was partly offset by stronger performance from Wessex Water and reduced losses in its telco division. The target price was lowered from RM4.53 to RM4.18 to reflect dilution from unlisted warrants, with RHB applying a 2% ESG discount on YTL Power's intrinsic value. MIDF Research similarly flagged weaker-than-expected results, citing a 3QFY25 core net profit of RM551.8 million and a 9MFY25 total of RM1.95 billion, representing 63.5% of its full-year estimate. The house pointed out that the power segment's softness stemmed from a decline in Singapore's pool and retail prices, worsened by currency effects from a stronger ringgit. However, Wessex Water's improved tariffs and contributions from Ranhill Utilities helped cushion overall earnings. MIDF Research expects the UK water operations to strengthen further from the next quarter, boosted by a 21% tariff hike. CIMB Securities noted a 30% quarter-on-quarter drop in PowerSeraya's pre-tax profit to RM511 million due to rollover of contracts to lower tariffs and a fall in unit sales, compounded by a rising solar market share. The house estimates show Wessex Water's pre-tax profit surged 172% quarter-on-quarter to RM164 million on improved consumption and lower financing costs. CIMB Securities highlighted that YTL Power's total data centre capacity of 188MW is now fully contracted, with upcoming launches expected to drive earnings from late 1QFY26. All three research houses pointed to the company's ongoing expansion in artificial intelligence data centres as a key growth lever. RHB Research reported that the first 20MW AI-powered facility is ready for commercial launch within two months, while MIDF Research and CIMB Securities said the 80MW centre initially earmarked for AI will now be used for co-location, already taken up by a third party. According to CIMB Securities, total contracted revenue for YTL Power's data centre business stands at US$2.5 billion. Analysts agree the group's long-term prospects remain positive, anchored by diversification into high-margin infrastructure businesses. An interim dividend of 4.0 sen was declared. At RM3.60 per share, YTL Power trades at an undemanding valuation relative to future earnings potential, with projected yields between 1.8% and 2.5% in FY26. Related
