BSL Positive on Opportunities Arising From US-China Trade Dispute

KUALA LUMPUR, Dec 28 (Bernama) -- Electronic manufacturing services firm BSL Corporation Bhd is optimistic of potential business opportunities to be derived due to the trade dispute between the United States and China. “We foresee electronics manufacturing companies venturing out of China and to Malaysia to move its production base,” chief executive officer Ngiam Tee Wee said in the company’s annual report released to Bursa Malaysia Friday. BSL, which swung into the red with a net loss of RM1.1 million in the financial year ended Aug 31, 2018 (FY18), against a net profit of RM3.2 million previously, aims to be more effective and efficient in its production methods. Ngiam said this was to enable the company to remain competitive without compromising its high level quality standards. “We are also aggressively looking for new customers local and overseas to grow our repertoire of electronic manufacturing services products to further showcase our manufacturing and assembly capabilities,” he said. Meanwhile, he said, the company continued to be concerned over the impending rise in minimum wage next month. “We are expecting continued pressure on our bottom lines but are also concerned over our local clients affected by this ruling,” he added. For FY18, BSL posted its highest turnover at RM158.8 million, an increase of 8.6 per cent from the previous financial year, contributed by agricultural and industrial products as well as higher orders for television back chassis. Despite the strong top-line performance, the company suffered a loss mainly due to a provision for impairment in goodwill amounting to RM4.6 million made during the year. The goodwill arose from its 22.5 per cent equity interest in Hong Kong-incorporated Petapak Holdings Ltd, which faced setbacks in the testing of its specialised metal collar fitted onto polyethylene terephthalate (PET) aerosol containers. "Despite the provision made in the current financial year, the group is still highly committed to ensure the success of this project with its business partner by aggressively searching for new target customers and concurrently addressing the issues pertaining to the PET aerosol containers,” Ngiam said. -- BERNAMA