Asia/Pacific News
Malaysian Firm Receives Shareholder Approval to Move into Bunker Markets
Malaysian industrial services company Raya International Bhd (Raya) is one step closer to entering the bunker market after its shareholders approved a proposal last Friday to continue move the company toward bunker supply and trading.
Raya's chairman, Ho Fook Meng, says the company expects to receive its Petroleum Development Act license by the end of the year so it can begin supply operations at the Pasir Gudang Port.
"We look forward to profitability this year with the commencement of oil trading business," said Ho told local media following sharholders' decision on Friday.
Ho says that, although low oil prices that have caused a decline in oil and gas activities, bunkering is steady, and "the margin for this business is steady and it goes on high volume."
Raya's new bunkering business - which the company says will focus on cargo ships, as well as those in the oil and gas industry - is said to be expected to add 25 percent or more to the company's future bottom line.
In January, Ship & Bunker reported that Raya's subsidiary Selatan Bunker (M) Sdn Bhd (Selatan Bunker) had signed a partnership agreement with Tumpuan Megah Development Sdn Bhd (Tumpuan Megah) to work toward the development of bunkering services for marine fuel in Pasir Gudang.
