The recent migration of Halim Mazmin Bhd, to the Main Board of the Kuala Lumpur Stock Exchange is expected to strengthen its expansion plan notably by escalating its involvement in international trade.
 
The shipping company, whose initial growth came mainly from its engagement in the carriage of refined petroleum products in the domestic waters, has set its eyes far and wide in acquiring more containerships and dry bulkers as part of its long-term strategy for growth.
 
Its executive chairman Tan Sri Halim Mohammad said the focus of the company’s expansion would center on container and bulk carriers which presently account for 85 per cent of the company’s revenue. 

 
Although he declined to state the size of the company’s future acquisitions, Halim said the company was looking at few areas that would involve working foreigners partners. 
The company had forged a successful strategy for growth by working with reputable charterers and partners. Its last acquisition –the 150,000 dwt capesize bulker carrier Meridian Polaris – was made in association with NYK of Japan.

 
The core business activity of the company is focused on shipowning and operations. HMB has a fleet of nine vessels with a combined fleet strength totaling 311,272 dwt. The diversified fleet includes clean product tankers, dry bulkers and container vessels. 
   
Halim said the company, which raises it paid up capital to RM68 million with its migration to the main board, has maintained a prudent policy of growth with its strategic alliance with reputable partners.
 
Based on the reported 9-months financial results of the company, HMB is poised to register yet another year of sustained growth for the current financial year.
 
In the first nine months of 2001 the total turnover topped RM94 million (against RM91 million for the whole of 2000) and a profit after tax of RM14.4 million (compared with RM14.4 million for the whole of 2000).

The company’s sustained performance has also been attributed to its earning (totaling 85 per cent) that are US-denominated and the benefit of the pegging of the Malaysian Ringgit to the US Dollar (at RM3.8 to US$1).  
The company, which is slated to secure the lucrative long-term contract for the carriage of coal for the state-owned utility, expects the main board listing to enhance the rating of the company to seek funds for expansion in the capital market.
 
“We will continue to tap the capital market including banks which have rallied around HMB to fund acquisitions which shall be based on quality of the earnings,” said Halim, who although admitted a vision to expand his fleet from nine vessels to a score in his lifetime, will not be rushed into it. 

 
“It is not the number of ships that matters; it is the quality of earnings that we are interested in,” said Halim, who spent 21 years building up the high profile HMB together with his wife Mazmin Nordin 

 
Halim takes particular satisfaction in HMB making positive contributions to the economy, including in helping to stem the outflow of foreign exchange, contributing towards national merchant fleet development, fulfilling the NEP objectives of promoting bumiputra entrepreneurship and providing employment opportunities for Malaysian seamen.
 
Halim maintained the company has taken careful decisions in ensuring the deployment of its vessels in trades that benefit the national economy and “this approach will be central in our expansion plan as HMB intends to play even a bigger role in the national trade.” However, he urged the government to take a closer look at the practice of awarding of contract for shipments that favour foreign carriers. 

“These foreign carriers, with written-down assets, are able to submit unrealistic freight charges when competing with home-grown shipping lines. Under such circumstances it would be extremely difficult for local companies to break into the market for the carriage of cargo for government utilities and agencies unless the government creates the right environment,” Halim noted. 

 
Halim stressed the government had a responsibility to foster the development of the national merchant fleet and this would only be meaningful if fair access is provided for local companies to engaged in the carriage of national cargoes. He felt it was pointless, if in the name of competition, foreign lines are always favoured as it would prevent the emergence of a critical mass in the national shipping capacity.

 BACK TO NEWS PAGE