Second Finance Minister Dato Sri Wong Soon Koh yesterday urged banks to come up with more innovative financing structures to help shipbuilders tide over the current global economic downturn.

WE AGREE: Lau (left) and Wong Chong Kim exchange documents, while (from second left) Wong, TAS Offshore chairman Datu Mohammed Sepuan Anu and Simon Lau look on.

He said better financing facilities were needed to help the state's shipbuilding industry.

Wong, who is also Minister of Environment and Public Health, noted that the industry was always the first to bear the brunt of the economic crisis.

"When the demand for commodities drops, the shipping industry is affected. It's always the first to be hit. Tonnage handling by the ports is indicative of how well (or not well) our economy is doing.

"Shipping and shipbuilding industries are closely related. The prolonged credit crunch has taken its toll on the two industries throughout the world.

"But, every cloud has a silver lining. We've begun to read signs of economic recovery, and the success story of TAS Offshore Berhad is an indication," he said.

Wong, who later witnessed the signing of an underwriting agreement between TAS Offshore and OSK Investment Bank Berhad in conjunction with TAS' proposed listing on the Main Board of Bursa Malaysia, said the company had pulled itself through the trying times.

He said TAS group managing director Datuk Lau Nai Hoh and his staff chose to venture further rather than to sit still and opt for the ‘wait and see' attitude despite the uncertain global economy.

"They've chosen to move one step forward, carrying the company to greater heights," he noted, saying TAS Offshore epitomised the typical business groups in Sibu, which started small but eventually grew bigger through consolidation.

The minister sang Lau praises saying he had transformed himself from a small-time businessman to become one of prominent shipbuilders.

Lau, his son Simon who is the company's deputy managing director and executive director, and OSK Investment Bank Berhad's director and head of Equity Capital Markets Gan Kim Khoon also spoke at the function.

The signing ceremony at RH Hotel at 11am saw Datuk Lau signing for his company and OSK deputy chief executive officer Wong Chong Kim for OSK.

OSK had underwritten the company's Public Issue of nine million new ordinary shares of 50 sen each and Private Placement of 43 million of Bumiputera ordinary share of 50 sen each, which shall be launched in a month or two.

TAS Offshore's total share issuance for its initial public offering (IPO) comprises a Public Issue of 77 million new ordinary shares where 3.5 million new ordinary shares will be made available for application by eligible directors and employees of TAS Offshore and its subsidiary and persons who have contributed to the Group's success; nine million new ordinary shares to be allocated to the Malaysian public; 21.5 million new ordinary shares to be made available by way of private placement to identified investors; and 43 million new ordinary shares to be made available for application by way of placement to Bumiputera investors approved by Ministry of International Trade and Industry.

There will also be an Offer For Sale of 11 million shares to be offered by way of placement to Bumiputera investors approved by the Ministry of International Trade and Industry.

--TheBorneoPost