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https://theedgemalaysia.com/node/90630 | HLIB retains "buy" on UEM Sunrise, TP RM4.04 | English | KUALA LUMPUR (July 1): Hong Leong
Investment Bank Research (HLIB) has retained a “buy” call and its target price
of RM4.04 on UEM Sunrise Bhd after its chief revealed in The Edge’s City & Country pullout that the property developer plans
for a RM4 billion worth of property launches this year. In the interview, UEM Sunrise
chief executive officer Datuk Wan Abdullah Wan Ibrahim said of the RM4 billion
in gross development value, RM3 billion will come from Nusajaya, Johor, with
the remainder from its central and international developments. In a note today, HLIB analyst
Sean Lim said the research house is “cautiously optimistic” of UEM Sunrise’s
plans to launch RM3 billion worth of projects in Nusajaya due to a robust
demand in the region. “We believe UEM Sunrise has a
safety net in the sense that it is in a position to control the supply/demand
situation in Nusajaya, which should help prevent the dreaded property overhand
situation. Moreover, we expect bulk of the launches to be in the high-value Puteri
Harbour, which continues to enjoy strong demand from foreigners and wealthy
Malaysians,” Lim commented in the note. He also said the research house
expects the property developer to acquire both township and niche high-rise
land banks, given that it now has strong execution capabilities for both segments
of the property market. “(UEM Sunrise) management’s tone suggests
some major deals could be struck soon, before the end of the year,” Lim said. He added HLIB expects land
acquisitions to increase UEM Sunrise’s net gearing level, which currently
stands at 0.16 times. “(The net gearing level) implies
RM4.1 billion of gearing headroom before it hits 0.5 times,” said Lim in the
note. UEM Sunrise shares ceded four sen
to trade at RM3.08 at 2:57 pm. The counter had a trading volume of 1.096 million. |
https://theedgemalaysia.com/node/9450 | Professionals putting in longer hours because of downturn | English | Twenty-five percent of respondents from Malaysia claimed they were putting in between eight and 10 hours overtime a week because of the downturn. They were among the 58% who said they were clocking at least an hour more a week, although the other 42% say their working hours remained the same — downturn or no downturn. The findings were from an online web poll where professionals from 17 countries, including Japan, Singapore and China were asked whether they were working harder as a result of the downturn, Robert Walters said in a statement. It did not specify how many of the total 2,600 respondents were from Malaysia. "You might expect people to work harder in a recession but what is interesting is the amount of extra hours professionals are working," said Ross Mckenzie, country manager of Robert Walters Malaysia. "The fear of redundancy obviously has an effect; many people feel that by putting in more hours, they will be less likely to lose their jobs should further cost-cutting prove necessary. In addition, where job cuts have already taken place, those left are inevitably required to take on more work." Professionals in Hong Kong seemed to be hardest hit by the downturn and were found to be working the longest hours. One third of respondents (33%) said they were working on average between eight and 10 hours more a week, the survey found. Some 23% of respondents in Singapore and Japan claimed to be working eight to 10 hours extra a week, slightly better than Malaysia, but less cushy when compared to the 20% in China and Thailand. In Thailand, however, only 8% of the respondents said they were working the same number of hours following the downturn. Globally, 55% of the respondents said they were working more hours per week: 24% of respondents said they were putting in at least three hours extra per week and 21% said they were staying in the office about eight to 10 hours more per week. |
https://theedgemalaysia.com/node/63646 | CIMB Research has technical sell on Hibiscus Petroleum at RM1.78 | English | KUALA LUMPUR (Feb 16): CIMB Equities Research has a technical sell on Hibiscus Petroleum at RM1.78. It said on Thursday that Hibiscus’ rally from the August lows has been outstanding. The trend is still up but the uptrend could see some consolidation soon. “Yesterday’s bearish harami pattern coupled with the bearish divergence on its MACD Histogram and RSI suggest that a pullback could be on the cards. “Upside is likely capped by the RM2.00 psychological resistance. We expect prices to ease a tad towards RM1.60 and possibly even RM1.46.again. Use any rebound to sell on strength,” it said. |
https://theedgemalaysia.com/node/49331 | Coastal slips but cancellation of MoU with Ramunia minimal impact | English | KUALA LUMPUR: Shares of Coastal Contracts Bhd fell in late afternoon on Friday, May 20 in line with a lacklustre market while analysts viewed the cancellation of the MoU with Ramunia Bhd would have minimal impact. At 3.43pm, Coastal was down seven sen to RM3.57 with 371,000 shares done, off the intra-day high of RM3.65. On Thursday, Ramunia said Coastal’s unit Pleasant Engineering Sdn Bhd and Ramunia had both agreed not to proceed with the MoU signed on Jan 28, 2010 for the proposed collaboration to undertake tendering, bidding and fabrication in relation to structures for the O&G industry. OSK Research said its fair value for Coastal remained unchanged at RM4.85 based on the existing price-to-earnings ratio (PER) of 8.0 times FY11 earnings. “We continue to like Coastal for its strong delivery track record and we think its performance would be sustainable as it still has a strong orderbook of RM760 million which can keep the company busy over the next 12 months while it proceeds to enhance its shareholders’ value by finding a business partner for the O&G opportunities,” it said. |
https://theedgemalaysia.com/node/23214 | No rush to issue halal dim sum bonds | English | KUALA LUMPUR: While Khazanah Nasional Bhd last week scored a landmark deal in issuing the world’s first yuan-denominated offshore sukuk, Malaysian companies are unlikely to rush and follow a similar route to raise funds, fixed income analysts said. Malaysian companies, which may be mulling plans to issue yuan-denominated bonds, syariah-compliant or otherwise, will likely adopt a wait-and-see attitude to gauge the market’s appetite for similar paper, according to analysts. Last week, Khazanah announced that it had issued a three-year benchmark offshore 500 million yuan sukuk (RM246 million) via a special-purpose vehicle, Danga Capital Bhd. Zakariya Othman, RAM Rating Services Bhd’s head of Islamic finance ratings, noted that there is little incentive for Malaysian companies to take the leap to issue bonds in yuan as there is still a healthy demand for ringgit-denominated bonds. “Dim sum bonds are still exotic, in a sense. I don’t think corporates will jump on the bandwagon yet,” said Zakariya. The term “dim sum bonds” refer to yuan-denominated bonds issued offshore (outside mainland China) in Hong Kong. Analysts said issuing yuan bonds would only be attractive for companies conducting most of their business in China. Demand for dim sum bonds is reported to be strong as they are still scarce, but whether the market has the appetite for more syariah yuan-denominted paper is still unclear. Khazanah’s issuance last week may provide some indication. Zakariya pointed out that the government has been attempting to encourage more multi-currency bond issuances as most non-ringgit bonds are issued in US and Singapore dollars. This push is reflected in Budget 2012, which provides two tax incentives to spur the issuance of sukuk. The income tax exemption for non-ringgit sukuk issuance and transactions will be extended for another three years until the year of assessment 2014. Tax deduction on expenses incurred for sukuk wakala will be given for a three-year period beginning from the year of assessment 2012. Although China has emerged as a powerful force in recent years as its economy overtakes that of Japan, trading of its currency is still limited. It was only recently that the Chinese government relaxed its grip on the yuan, allowing it to be traded in Hong Kong on what is now known as the offshore yuan market. China has also been facing pressure from its trading partners to allow a speedier appreciation of the yuan. “Everyone is talking about China being the new economic powerhouse so it is timely for us to test the market. But bear in mind, the yuan is not yet the global currency, unlike the US dollar,” Zakariya said. CIMB fixed income research senior analyst Nik Ahmad Mukharriz said Khazanah’s move to issue the yuan-denominated sukuk represents a first step in a direction many firms in Asia are eyeing. “Although the size of Khazanah’s yuan sukuk is not that large, it is the first. As investors get comfortable with the structure of Islamic securities, there could be more issues,” Nik Ahmad said. He added that market conditions appear to be favourable for yuan-denominated sukuk as funds flow from developed economies to Asian markets on concerns over economic uncertainty in the eurozone and US. In what is seen as a move to test investor appetite, a positive response to Khazanah’s yuan sukuk issuance could pave the way for government-linked companies and other Malaysian firms to eventually explore the option. Khazanah’s yuan-denominated sukuk drew a demand of 3.6 times book size. This prompted the sovereign wealth fund to increase its deal from the earlier announced 300 million yuan to 500 million yuan, Khazanah said in a statement. According to Khazanah, the deal attracted various institutional investors and asset management firms from Malaysia, Singapore, Hong Kong, the Middle East and Europe. “The particular characteristics of a [yuan]-denominated sukuk, with participation from across Asia, illustrate the viability of the ‘new Silk Road’ as an investment theme for Khazanah and others,” managing director Tan Sri Azman Mokhtar said in a statement. This article appeared in The Edge Financial Daily, Ocotber 17, 2011. |
https://theedgemalaysia.com/node/16147 | Tough times for local steel players | English | KUALA LUMPUR: Malaysian steel companies were not spared from plummeting steel prices in the last quarter of 2011. “The prices will definitely affect the earnings during that period,” said a MIDF Research analyst, who covers the sector, when contacted by The Edge Financial Daily. This could provide an insight into earnings announcements for the final quarter of last year that local steel players will be posting in the coming weeks. According to MIDF, margins between steel billets and bars are likely to narrow, potentially causing steel producers to report a net loss in their upcoming quarterly results. According to data from the London Metal Exchange, spot prices of steel billets last year peaked in mid-August at around US$700 (RM2,107) per tonne, but started on a downtrend soon after. The price of steel billets, a semi-finished product used to make steel bars, was US$485 per tonne at press time, having fallen 11% from US$545 per tonne in the past month. According to another analyst who tracks the property sector, local steel bar prices dipped from a high of RM2,500 per tonne during the year to around RM2,120 in 4Q. They are now trading at around RM2,120 per tonne, he added. Several local steel companies have shown signs of slowing profits resulting from the increase in costs between 2Q and 3Q of 2011, when steel prices were declining. An example is Ann Joo Resources Bhd. The group sank into the red with a net loss of RM24.54 million in 3QFY11 ended Sept 30 from a net profit of RM32.75 million in 2QFY11. Lion Industries Corp Bhd also showed signs of slowing net profits over two of its quarters last year in its latest earnings announcement. It posted a net profit of RM27.62 million in 1QFY12 ended Sept 30, 2011 from RM45 million the previous quarter. Besides softening prices, MIDF also said global steel production and utilisation has slowed down. “Latest numbers from the World Steel Association confirmed our worries about the global steel industry. Global steel production was 1.53 billion tonnes in 2011, up by only 6.8% compared with 15% year-on-year in 2010,” said the research house. China’s steel production, which accounts for 45% of the world’s output, is the largest globally and has also showed signs of slowing. In December, China’s steel production rose 4.6% to 52.5 million tonnes, which was 13% lower than its peak of 60.2 million tonnes in May 2011. Global utilisation has also trended lower at 73.4% in November 2011. “[This was] the lowest since April 2011,” said the research house. China’s slowing production is an indicator of worrying times for the steel industry. “This is because the steel industry depends heavily on the property market in China,” said the analyst from MIDF, adding that the reason for China’s slowdown is due to its government’s efforts to curb its property market. Hence, he fears that there could be an oversupply of steel in China, resulting in cheap imports of steel into Malaysia, thus posing a threat to local millers. Global steel demand is tempered by an economic slowdown in China, and a likely recession in Europe, where orders for steel products for construction, cars and machinery are slowing. What could potentially help domestic players are local construction projects like the Economic Transformation Programme (ETP) and the 10th Malaysia Plan (MP). The local projects under these programmes include the Klang Valley MRT (the Sungai Buloh-Kajang line), the Gemas-Johor Baru double-tracking railway and the KL International Financial District. Rather than a sudden surge in demand for steel from these projects, the analyst said “demand will gradually improve because the ETP and the 10th MP will be implemented in stages”. The analyst also said the construction sector would have the choice of buying cheap imports from China or local players. The former would certainly put the local steel industry at a serious disadvantage. Larger steel players like Lion Industries or Ann Joo could probably counter the import of steel, but smaller ones may have a tougher time, according to the analyst. Prices of steel will continue to depend on China and the weakening demand is expected to continue into the rest of the year. This article appeared in The Edge Financial Daily, February 10, 2012. |
https://theedgemalaysia.com/node/51434 | MRCB to upgrade Little India, build government quarters | English | KUALA LUMPUR: A Malaysian Resources Corp Bhd subsidiary has been given a RM128.7 million contract to upgrade Little India in Brickfields and build government quarters. MRCB said its 70%-owned Country Annexe Sdn Bhd signed a privatisation agreement with the government and Syarikat Tanah dan Harta Sdn Bhd (Hartanah) yesterday. Under the agreement, Country Annexe will upgrade and beautify Jalan Tun Sambanthan from the intersection of Jalan Travers and Jalan Tun Sambanthan up to the entrance of the Brickfields Police Station. It will also develop the Pines Bazaar — a three-storey building with office space, 28 stalls and 140 parking bays and it will build 212 government Class F quarters near Jalan Ang Seng to replace the government quarters at Jalan Rozario. In return, Country Annexe will receive two pieces of land at the intersection of Lorong Chan Ah Tong and Jalan Tun Sambanthan, measuring 14,297 sq metres and 5,642.71 sq metres. Country Annexe is a 70:30 special purpose vehicle between MRCB and DMIA Sdn BHd. It was set up to construct projects in exchange for land which it in turn develops. This article appeared in The Edge Financial Daily, July 6, 2011. |
https://theedgemalaysia.com/node/14211 | APFT seeks stability after earnings plunge | English | KUALA LUMPUR: APFT Bhd endured one round of turbulence last year. Its net profit shrank 97% to RM270,269 in FY11 from RM8.86 million a year ago, although its revenue fell only 17% to RM31.56 million from RM38.09 million a year ago. The slowdown in pilot cadet intakes sent its earnings down a steep plunge for the financial year ended Dec 31, 2011 (FY11). The dramatic decline was largely because the bulk of APFT’s earnings comes from its core business of providing flight training, leaving it vulnerable to funding risks in the local education sector and risks associated with the aviation industry. Now, APFT executive chairman Datuk Faruk Othman said the group is working to introduce non-training related businesses within the aviation industry to balance its earnings. “I am looking at other areas to stabilise the income. Our focus now is to have stability,” Faruk told The Edge Financial Daily on the sidelines of a signing ceremony. APFT’s diversification plans include operating chartered flights and providing third party maintenance, repair and overhaul (MRO) services. The group is in the midst of securing regulatory approval and licensing for both plans. “As you know, the industry that we are in is heavily regulated so we need to obtain certification and approvals for everything we do,” said Faruk. APFT’s wholly-owned subsidiary, APFT Services Sdn Bhd, earlier expected to commence charter flights out of the Sultan Ismail Petra Airport in Kota Baru, Kelantan this year. But it has experienced delays in obtaining an air operating licence. “For the charter business, we are trying to focus on private clients. We think there is a lot of potential especially people going to the islands [along the west coast of Peninsula Malaysia] and around the region,” Faruk said. While APFT grows its non-training businesses, Faruk said the group also plans to introduce more stability in its core flight training business. APFT last Thursday signed a partnership agreement with Canada-based simulation and aviation training firm, CAE Inc, to provide training to at least 200 AirAsia Bhd cadets over five years from the third quarter of this year. Under the deal, APFT will provide local support for the first two phases of the four-phase multi-crew pilot licence (MPL) training programme for budget airline AirAsia. “This contract is significant because it stabilises us. In FY13 and beyond, we expect this deal to contribute revenue of between RM5 million and RM10 million annually,” Faruk told a press conference last Thursday. APFT is also in talks with two other regional airlines to implement the MPL programme but Faruk noted that APFT’s partnership with CAE and AirAsia would be the priority for now. Beyond Malaysia, Faruk said APFT has already received approval from Indian authorities to operate a flight school in Hyderabad, India in partnership with GMR Hyderabad International Airport Ltd. The group would be sending over some aircraft in its 39-craft fleet to be used as part of the training, Faruk said. APFT is also working on establishing a flight training academy in Indonesia with its local partner but the plans are still in the preliminary stages. Faruk said APFT’s overseas ventures could enable the group to tap the burgeoning aviation demands of India and Indonesia, thereby reducing dependence on earnings from Malaysia. Faruk is quick to point out that local airlines are still recruiting new pilots and the volume of private pilot cadets depends on the source of funding for the training programmes. As an example, Faruk said APFT saw a significant slowdown in student intakes last year when Majlis Amanah Rakyat (Mara) and the Terengganu Foundation (Yayasan Terengganu), two agencies that fund most of APFT’s cadets, slowed down or stopped funding. From July 2011, APFT students training to be commercial pilots became eligible for study loans from the National Higher Education Fund Corp (PTPTN). APFT, which has a market capitalisation of about RM109.9 million, is largely shunned by investors as Faruk and his family control about 74.95% of the company. Faruk reveals that he is addressing liquidity concerns on APFT’s stock and will soon place out shares to fund managers. APFT’s share price also took a plunge to a record low of 53 sen in December after being listed on Bursa Malaysia’s Main Market last March from the peak of RM1.07 in May last year. It closed unchanged at 70 sen last Friday. This article appeared in The Edge Financial Daily, May 7, 2012. |
https://theedgemalaysia.com/node/97959 | #Global Markets* Oil off highs, shares up on likely delay in Syria action | English | * Anxiety over imminent Syrian attack eases* World equities end sell off, European shares gain 0.6 pct* Oil retreats from 6-month peak, gold off 3-1/2 month high* Indonesia and Brazil lift rates to defend currency LONDON (Aug 29): Signs of delay in expected Western military strikes on Syria ended a three-day sell off on world share markets on Thursday, but investors were on edge over whether any action would trigger turmoil across the Middle East. European stocks led the charge higher, lifted by Vodafone shares surging on renewed talks with Verizon. Emerging market currencies stabilised after a rout, as central banks in India, Brazil and Indonesia stepped up efforts to stem capital outflows back into the dollar. U.S. President Barack Obama has set out the case for a limited military strike, but divisions in Britain and among U.S. lawmakers seem set to delay any imminent action, giving investors a reason to take a breather. "The overall sentiment remains cautious, but the fact that military action against Syria doesn't look imminent any more, is prompting a number of investors to bet on a rebound," said Guillaume Dumans, co-head of research firm 2Bremans. In the oil market, Brent crude edged back below $116 a barrel, as it became clear that an imminent strike by the West in response to last week's alleged chemical weapons attack was less likely, ending its strongest two-day gain since January 2012. Traditional safe-haven gold eased 0.5 percent to around $1,410 an ounce, after gaining 1.2 percent to hit a 3-1/2 month high in the previous session's flight to safety.CalmThe calmer tone in equity markets emerged after energy shares on Wall Street gained on the back of the rise in oil prices, spreading to Asia where MSCI's Asia-Pacific index, excluding Japan, rose 1 percent. The MSCI world equity index, which tracks shares in 45 countries, was broadly unchanged early in the European day, having lost two percent this week. European shares made gains across the board as the anxiety over Syria eased, with sentiment helped by signs of a resolution to the political crisis in Italy, which had threatened to spilt the coalition government. The FTSE Eurofirst 300 index of top European was up 0.6 percent in early trade, with Italy's main benchmark index also gaining 0.6 percent. Italy plans to sell upto 6 billion euros ($8 billion) of new five and 10 year bonds later, which will test investor sentiment. It will show whether the prospect of the Federal Reserve reducing U.S. stimulus will put pressure on peripheral euro zone bond yields. World currency markets have stabilised, with the dollar rising against developed world currencies, while actions among some emerging market nations stemmed their losses against the greenback. The dollar was up about 0.5 percent against the yen, at 98.24 yen, and up a similar amount against a basket of major currencies. Brazil raised its benchmark interest rate to a 16-month high of 9 percent on Wednesday, while in Indonesia, the rupiah strengthened slightly after its central bank hiked its key lending rates. The Indian rupee rebounded from a record low after its central bank moved to provide dollars directly to oil companies, to give the currency some relief. The rupee rose as high as 66.85 per dollar, up sharply from a record low of 68.85 per dollar hit on Wednesday, when the currency posted its biggest single-day percentage fall since October 1995. |
https://theedgemalaysia.com/node/48214 | Bernas gets 10-year extension to contract | English | KUALA LUMPUR: Padiberas Nasional Bhd (Bernas) announced yesterday that the federal government has extended its mandate to manage the country’s rice supplies for 10 years. In an announcement to Bursa Malaysia, the company — which is indirectly controlled by Tan Sri Syed Mokhtar Al-Bukhary — said that Bernas’ agreement with the government will run from Jan 11, 2011 until Jan 10, 2021. This is the second major development for companies under Syed Mokhtar in four days. Last Friday, another of his companies, DRB-Hicom Bhd, won a robust tender process to acquire Khazanah Nasional Bhd’s 32.21% stake in Pos Malaysia Bhd. Now Bernas, which Syed Mokhtar controls through Tradewinds (M) Bhd, has received the extension to the rice agreement, which effectively removes all doubts as to whether the government would open up the rice market. Bernas said that on April 22 the company received a letter from the public-private partnership unit of the Prime Minister’s Department regarding the extension of the agreement dated Jan 12, 1996. “The government has agreed to extend the Bernas agreement for a period of 10 years commencing from Jan 11, 2011 to Jan 10, 2021 subject to the terms and conditions to be mutually agreed between both parties,” it said in the announcement to Bursa. In 1996, when the government privatised Bernas, it handed over the obligation to maintain the national rice stockpile to the company. Bernas’ other obligations include the distribution of the padi price subsidy to farmers on behalf of the government, managing the bumiputera rice millers scheme and acting as buyer of last resort at guaranteed prices. Generally, Bernas used the profit from the importation of rice to subsidise the loss-making domestic operations under the privatisation agreement that was signed for 15 years. A year after its privatisation, Bernas was listed on Bursa. In 2007, the agreement was extended until Jan 11, 2016. However in 2008, sky-rocketing rice prices on the international market drove Bernas into the red. It is believed the terms of the new agreement take into account fluctuations in international rice prices. Bernas, which controls 24% of the local padi market and 45% of local rice demand, said the government had given until July 10 to finalise the terms and conditions of the new agreement. “Pending the execution of the new Bernas agreement, the terms and conditions of the agreement dated Jan 12, 1996 shall apply throughout the interim period,” it said. In December 2009, Syed Mokhtar consolidated his interest in Bernas and put it under Tradewinds. Then, Tradewinds acquired 53.7% of Bernas’ equity for a cash consideration of RM526 million. This sparked a mandatory general offer for the rest of the shares which resulted in Tradewinds holding 72.57% equity interest in Bernas. The acquisition enabled Tradewinds and Bernas to share distribution channels, such as warehousing and transport, and achieve greater economies of scale and operational efficiency. This article appeared in The Edge Financial Daily, April 26, 2011. |
https://theedgemalaysia.com/node/70754 | KLCI stays in negative territory at mid-day, Axiata, Genting weigh | English | KUALA LUMPUR (Oct 8): The FBM KLCI stayed in the red at the mid-day break on Monday on global growth concerns as the World Bank on Monday cut its 2012 growth forecast for developing East Asia. At 12.30pm, the FBM KLCI was down 2.76 points to 1,657.47, weighed by losses including at Axiata, Genting and Maybank. There were 324 losers and 214 gainers, while 298 counters traded unchanged. Volume was 412.43 million shares valued at RM436.63 million. The ringgit weakened 0.47% to 3.0689 versus the US dollar; crude palm oil futures for the third month delivery fell RM6 per tonne to RM2,474, crude oil lost 39 cents per barrel to US$89.49 and gold dropped US$8.57 an ounce to US$1,772.03. Asian stocks edged lower on Monday and other riskier assets such as commodities fell as investors remained cautious about the outlook for the global economy and corporate earnings despite better-than-expected U.S. jobs numbers at the end of last week. The World Bank on Monday cut its 2012 growth forecast for developing East Asia amid a slowdown in China but said economic activity in the region will likely pick up next year, according to Reuters. The bank maintained its 2012 GDP forecasts for Indonesia and Thailand, and raised the outlook for Malaysia and the Philippines, it said. At the regional markets, Hng Kong’s Hang Seng Index fell 0.63% to 20,879.40, the Shanghai Composite Index lost 0.75% to 2,070.52, Taiwan’s Taiex was down 0.92% to 7,619.60, South Korea’s Kospi fell 0.67% to 1,981.81 and Singapore’s Straits Times Index also fell 0.67% to 3,087.08. Among the top losers at mid-day were APM Automotive that fell 24 sen to RM4.71, Warisan 19 sen to RM2.41, Sarawak Oil Palms 16 sen to RM6.04, Petronas Gas and KLK fell 12 sen each to RM19.94 and RM21.30, Ho Hup, Genting and Axiata fell nine sen each to 60 sen, RM8.72 and RM6.67 respectively, whiel Maybank fell four sen to RM8.95. Gainers in the morning session included Lafarge Malayan Cement, Petronas Dagangan, Instaco, MISC, Pharmaniaga, Kluang, HLFG and Southern Acids. The actives included Instaco, Perisai, Metronic, IGB REIT, Astral Supreme and Scomi. |
https://theedgemalaysia.com/node/76959 | TBWA KL is Ad Agency of the Year | English | KUALA LUMPUR: TBWA Kuala Lumpur was crowned Agency of the Year at the Kancil Awards 2013, Malaysia’s largest advertising awards competition organised by the Association of Accredited Advertising Agents of Malaysia (4As). The agency scored 155 points across various media platforms with six silver, 14 bronze and 25 merit awards. It did not win any gold awards. The Kancil Awards 2013 ceremony was held last week. BBDO won the Golden Kancil award for its KFC campaign “Phone Stack”, in which the fast-food chain encourages a dining culture where people pay attention to each other rather than to their phones. BBDO also won the Young Creative award. TBWA Worldwide and BBDO Worldwide are headquartered in New York City. DiGi Telecommunications, meanwhile, won the Advertiser of the Year award. Retired chairman of Lowe Malaysia, Khairudin Rahim, and Star Publications acting CEO and executive director Datuk Seri Wong Chun Wai won the Chairman’s Award. “Winning an award is an outstanding tribute for creative excellence,” said David Mitchell, organising chairman of the Kancil Awards 2013. “This year … there were more entries with participation from more agencies. The work submitted displayed a disciplined creativity.” This year also saw mid-range agencies like Mega Advertising, Star Reacher, Rapp, and People ‘n Rich ranked among the top 10 based on accumulated points. Traditionally, only one or two mid-range agencies are ranked in the top 10. Mega Advertising and People ‘n Rich are local agencies. The Kancil Awards covers outstanding creative work in film, radio, print, cyber, outdoor, craft, design, direct and mobile categories. The 4As is the representative body of the RM10.7 billion advertising industry, with membership of over 130 multinational and local organisations. This article first appeared in The Edge Financial Daily, on November 12, 2013. |
https://theedgemalaysia.com/node/76934 | Midday Market: Limited gains for KLCI | English | KUALA LUMPUR (Jan 9): The FBM KLCI remained in positive territory at the midday break on Wednesday, but the gains were somewhat limited. The FBM KLCI had added 2.55 points to 1,691.46 at 12.30pm, lifted by select blue chips. Losers overtook gainers by 314 to 255, while 295 counters traded unchanged. Volume was 580.77 million shares valued at RM651.96 million. The ringgit firmed up 0.04% to 3,0411 versus the US dollar, crude palm oil futures for the third month delivery rose RM6 per tonne to RM2,436, crude oil fell 13 cents per barrel to US$93.02 and gold shed 35 cents an ounce to US$1,658.90. Asian shares rose on Wednesday after profit taking from a sharp rally at the start of the New Year subsided, while investors waited warily for the corporate earnings season to kick off in full force, according to Reuters. MSCI's broadest index of Asia-Pacific stocks outside Japan rose 0.4%. Australian stocks were among the outperformers, with a 0.4% gain to break a three-day losing streak. Hong Kong shares also climbed 0.4%, it said. Japan’s Nikkei 225 rose 0.71% to 10,582.20, Hong Kong’s Hang Seng Index added 0.37% to 23,196.70, Singapore’s Straits Times Index gained 0.22% to 3,212.67, Taiwan’s Taiex added 0.6% to 7,734.36 and the Shanghai Composite Index edged up 0.07% to 2,277.71, while South Korea’s Kospi fell 0.31% to 1,991.81. Among the gainers on Bursa Malaysia at midday, BAT added 50 sen to RM61, Nestle 44 sen to RM63.32, Tahps 39 sen to RM5.50, United Plantations and Petronas Dagangan 20 sen to RM25.60 and RM23 respectively, HLFG 14 sen to RM14.60, Ajinomoto 11 sen to RM4.20 and KSL nine sen to RM1.52. Patimas was the most actively traded counter with 50.6 million shares done. The stock added half a sen to six sen. Other actives included DSC Solutions, Flonic, Nextnation, Takaso and KNM. The decliners included Tasek, Hong Leong Bank, MAHB, IJM Plantations, Batu Kawan, UMW, KLK, Toyo Ink, KPJ Healthcare and DKSH. |
https://theedgemalaysia.com/node/74503 | Royalists still back military intervention in Thailand | English | THANKS to a retired four-star general, a military tradition in Thailand — of the armed forces staging coups, undermining democratic institutions and throwing their might behind causes championed by pro-royalist elites — has been brought into sharp relief. General Boonlert Kaewprasit is the new poster boy for the kingdom's ultra-conservatives. It was they who were drawn to his first anti-government protest in late October at a Bangkok horse-racing course and his second rally in a historic part of the capital on Nov 24. Their rallying cry was unequivocal: force the elected government of Prime Minister Yingluck Shinawatra to step down after 15 months in office. Help from the Constitutional Court also boosted the cause of Pitak Siam (which means Protect Siam) as this new protest movement is called. It had ruled on the eve of the rally that Boonlert's targeting of the Yingluck administration was not an act of treason. So, expectations of achieving their objective swiftly were high among Boonlert's right-wing troops: "freeze" the country's politics for five years and have the government run by appointed "good people". The prospect of a showdown appeared imminent following a boast by Boonlert that he would attract one million people to the rally's site, the spacious Royal Plaza. By then, journalists with access to the country's intelligence agency had been tipped off that violence was on the cards. These anticipated clashes between the protesters and the riot police guarding government buildings were to create a volatile climate, paving the way for a military intervention, some commentators speculated. As predicted, the clashes did erupt in small pockets by 8am. And later in the day, General Boonlert, a former commander of an infantry battalion, called the commander of the First Region Army, the elite military units that protect Bangkok, for help. But there was no cavalry that came to rescue his few supporters — lobbing tear gas back at the police — at two heavily fortified barricades. And the number of people who made it to the rally — about 12,000 — was a further setback. By evening, Boonlert staged a retreat, informing his supporters that his efforts to spark a mass anti-government movement was over. "I am disheartened that the military did not help the people," Boonlert was quoted as having told Thursday's edition of the Bangkok Post. "I tried to call many commanders but they did not respond." Such failures, however, are not new to Boonlert. While a serving military officer, he was involved in a failed coup attempt against the government in 1977. He had led two battalions on that occasion. But this failed attempt to overthrow a legitimate government is more telling of the culture that runs through the body of the Thai military. It confirmed what analysts say still remains a reality in Thai politics — an appeal for the army to intervene, as it last did in the September 2006 putsch, is still entertained among a powerful and vocal conservative minority. "Even though coups have no legitimacy and do not correspond to international standards of democracy, there is still a strong constituency of royalists in Thailand who continue to accept it as a political option for change," says Thanet Aphornsuvan, a historian at Bangkok's Thammasat University. "These people endorse extreme positions and are prepared to go all out and at any cost to achieve their goals." Boonlert's call to arms may have failed this time, but the sentiments he stirred suggest that electoral democracy remains under threat in Thailand, Thanet warns in an interview. "There was no groundswell of objections to this idea of overthrowing the government. Even the Constitution Court did not see a problem." The last coup, the country's 18th in 80 years, came after months of street protests by the royalist "Yellow Shirt" movement. The prime minister who was forced out of power by the military was Yingluck's elder brother, the twice-elected Thaksin Shinawatra. He was targeted for corruption and nepotism. Following that success, the People's Alliance for Democracy (PAD), as the pro-coup Yellow Shirts called themselves, returned to the streets in 2008 to oust the elected government formed by Thaksin's allies to succeed 15 months of military rule. But their appeal for another bout of military intervention had limited success. The then army commander kept the troops in his barracks but used the national television stations as a platform to flex his power. The current acceptance, in some quarters, of the military as an important actor in Thai politics stands in contrast to what prevailed during the 15-year period preceding Thaksin's ouster. A coup in 1991 and a brutal crackdown of pro-democracy protesters in 1992 saw the military's reputation plummet, giving way to what is often described as the "democratic period" in this kingdom. A new constitution in 1997 to help build strong political parties and democratic institutions had left little room for the old ways of the military. But the old ways, it appears, are being encouraged to return, boosting the political fortunes of the over 300,000-strong military, known for being among the most top-heavy in the world with some 1,600 generals. There is support from three vocal constituencies: the conservative entrenched elites, the urban middle class and sections of the business community. "These groups openly accept the unique role of the Thai military, which goes beyond defending the country's borders to playing a development role and also protecting the institution of the monarchy," says Pantian Wattanayagorn, a national security expert at Bangkok's Chulalongkorn University. "They believe that power is abused by the elected government and checks and balances are threatened." And within the military there is a strong ideology that intervening in civilian-led politics is an option when instability and violence threaten "national values that the military considers important", adds Panitan, a former acting government spokesman for the administration that preceded the Yingluck government. "The possibility of military intervention in Thai politics has not receded substantially. It remains high enough for many people." But public support for the military will be facing a testing time as the Criminal Court hears cases of the more than 90 people, most of them civilians, who were killed in April and May 2010. The deaths in Bangkok came in the wake of a showdown between armed troops and anti-government protesters campaigning against the government of the day, which was propped up by the military, until Yingluck led her party to the thumping 2011 election victory. Last week saw the courts deliver its second verdict, which found soldiers guilty of shooting protesters, turning the heat on the military that has frequently enjoyed immunity from such killings. There are 34 more cases against the troops for the deaths of the "Red Shirt" protesters. "It is too early to say if this will lead to trouble between the government and the military, but we need to pay attention to possible tension that could arise," says Chaturon Chaiseng, a former cabinet minister in the ousted Thaksin administration. "It is just like General Boonlert's protest and what may happen next." "The Yingluck government is popular and has international legitimacy," he adds. "But in the near future, nobody knows. Anything can happen here. Even another coup is possible."Marwaan Macan-Markar is a Bangkok-based correspondent reporting on Indochina affairs for The Edge. This story first appeared in The Edge weekly edition of Dec 3-9, 2012. |
https://theedgemalaysia.com/node/78741 | Najib attends Dong Zong CNY open house | English | KAJANG: The prime minister attended Dong Zong’s Chinese New Year open house yesterday, the first prime minister to do so in the Chinese education group’s near 60-year history. Datuk Seri Najib Razak, who was welcomed with a lion dance performance, was received on arrival at the Dong Jiao Zong Higher Learning Centre by top Dong Zong officials, led by its chairman Dr Yap Sin Tian. Also present were MCA president Datuk Seri Dr Chua Soi Lek and deputy president Datuk Seri Liow Tiong Lai, and Gerakan president Tan Sri Dr Koh Tsu Koon.Dong Zong, or the United Chinese School Committees Association of Malaysia, has been critical of the government on various issues concerning Chinese education in the country. But the group decided to invite Najib to the open house in the hope the move would facilitate its efforts to get the government to accept some of its demands on Chinese schools. Najib tossed the yee sang with Yap and even decided to try some Chinese calligraphy. Local residents were eager to catch a glimpse of the prime minister and the crowd swelled to about 3,000 people as early as 10am, about 15 minutes after Najib arrived. Opposition Leader Datuk Seri Anwar Ibrahim also attended the event later in the morning, after Najib’s departure. The event was organised in collaboration with Jiao Zong, Merdeka University Bhd, United Chinese Associations of Hulu Langat District, Dong Jioa Zong Higher Learning Centre, Chinese School Committee Associations of the various states and New Era College. For more stories, go to www.fz.com, the website for freedom of expression and fairness in articulation. This article first appeared in The Edge Financial Daily, on February 18, 2013. |
https://theedgemalaysia.com/node/64780 | KLCI pares down gains, stays above1,600 at mid-day | English | KUALA LUMPUR (June 25): The FBM KLCI pared down some of its gains at the mi-day break on Monday, in line with the weaker sentiment at key regional markets. At 12.30pm, the index was up 2.62 points to 1,605.70. It had earlier rise 8.06 points to a record high of 1,611.13 at 9.36am. There were 328 gainers and 247 losers, while 318 counters traded unchanged. Volume was 637.29 million shares valued at RM509.21 million. At the regional markets, Japan's Nikkei 225 was down 0.35% to 8,767.77; Hong Kong's Hang Seng Index fell 0.34% to 19.060.10; the Shanghai Composite Index was down 0.56% to 2,248.23; Taiwan's Taiex fell 0.66% to 7,174.74; South Korea's Kospi lost 1.29% to 1,823.60; and Singapore's Straits Times Index shed 0.21% to 2,822.23. Among the gainers in the morning session, Pharmaniaga rose 85 sen to RM9.85; SAM Engineering jumped 33 sen to RM3.38; Apex was up 30 sen to RM1.25; Prestariang gained 22 sen to RM8.67; Nestlé advanced 20 sen to RM58; UME gained 13 sen to RM9.06; Public Bank added 10 sen to RM13.86; while CCB and Carlsberg gained eight sen each to RM3 and RM12.12 respectively. Luster was the most actively-traded counter, with 140.9 million shares done. The stock fell three sen to 15.5 sen. Other actives included GPRO, HWGB, Compugates, Axiata, Sanichi, Prestariang, Naim indah Corp and Ideal Jacobs. Decliners included Dutch Lady, Tradewinds, Aeon, Far East, JT International, IOI Corp, Takaful, Bozpak and Genting Plantations. |
https://theedgemalaysia.com/node/55157 | EON Capital declares tax-exempt final special dividend of 2.45 sen | English | KUALA LUMPUR: EON Capital Bhd shareholders are set to receive a tax-exempt final special dividend of 2.45 sen per share, in addition to the capital repayment of RM2.60 per share to be made on Sept 23. However, the payment of the final special dividend to shareholders on the register as at Sept 15, 2011 would be at a later date. In a statement Thursday, Sept 22, EON Capital executive chairman Datuk Gooi Hoe Soon said the company’s board of directors had been steadfast in its commitment to ensure that its shareholders received the very best return out of their investment in the company and were paid expediently. “Despite the long, protracted corporate exercise, the strong EON Capital team diligently maintained its professionalism and placed the interests of shareholders above all else,” he said. EON Capital had in May this year completed the disposal of its entire assets and liabilities including EON Bank Group to Hong Leong Bank Bhd. At the company’s EGM on Sept 22, shareholders approved to reduce the number of its directors from a minimum of 5 directors to two directors. The two directors that shall remain are Gooi and executive director Nicholas John Lough who would oversee the completion of the final special dividend to shareholders. All other directors will resign effective Oct 1, 2011. Approval from ECB’s shareholders was also sought for proposed directors’ fees of RM687,000 and ex-gratia payments of RM1.125 million. All resolutions were passed. Gooi said the board had proposed ex-gratia payments to seven existing directors in recognition of their contributions to the company. Trading of EON Capital share on the Main Market of Bursa Malaysia had been suspended since Sept 9, 2011. Pending Bursa Malaysia’s confirmation, EON Capital would be delisted on Sept 26, 2011, the next market day after the completion of the capital repayment that shall be made on Sept 23, 2011. |
https://theedgemalaysia.com/node/50496 | Ecofuture’s appeal for more time to find sponsor rejected | English | KUALA LUMPUR: Bursa Malaysia Securities Bhd has rejected Ecofuture Bhd’s application for more time to find a replacement sponsor after its then sponsor ECM Libra Investment Bank Bhd had tendered its resignation on March 10. The company said on Thursday, June 16 its application for an extension of time to appoint a sponsor made on June 6 was rejected. “The board of directors of Ecofuture wishes to inform that Bursa Securities had via its letter dated June 15 rejected the application,” it said. Ecofuture will be suspended from June 23 and ultimately, faces delisting by June 27. Its share price tumbled four sen to 4.5 sen with 683,900 shares done on Thursday. |
https://theedgemalaysia.com/node/98305 | Proton to reveal roadmap this month | English | KUALA LUMPUR (Sept 2): A roadmap for Proton Holdings Bhd is expected to be unveiled this month, Executive Chairman Tan Sri Mohd Khamil Jamil said today. Mohd Khamil, who is also DRB-Hicom's Group Managing Director, said the group has presented the outline of the roadmap to the International Trade and Industry Minister Datuk Seri Mustapa Mohamed. "He is quite pleased with it and wants us (DRB-Hicom) to present in more detail to him. It could be about a couple of weeks' time," he said when asked on the progress of the roadmap, on the sidelines of the group's Hari Raya open house here today. Asked further on the agenda in the roadmap, Mohd Khamil declined to elaborate but stressed that both the proton car manufacturing plants in Shah Alam and in Pekan, Pahang, would not be closed. Also present at the open house were Deputy Prime Minister Tan Sri Muhyiddin Yassin and the Tengku Mahkota of Pahang, Tengku Abdullah Sultan Ahmad Shah. |
https://theedgemalaysia.com/node/38419 | Spotlight on fashion stocks: Bonia known for its quality | English | Asked to define the Bonia’s most enduring brand value, group managing director Albert Chiang immediately replied, “Quality. We know leather.” Bonia Corp Bhd was founded in 1974 by executive chairman Chiang Sang Sem, at the time a leather goods wholesaler. He was inspired by 16th century sculptor Giambologna on a trip to the Leather Trade Fair in Bologna, Italy — so he registered the name “Bonia” in tribute. Since then, he has turned the business from a wholesaler to a leading fashion house renowned for its quality leather handbags, shoes and menswear. Since moving its headquarters from Singapore to Malaysia in 1978, the brand has metamorphosed from a bag-making company into a Malaysian fashion label. Today, the group has a network of over 700 sales outlets and 70 boutiques worldwide in countries that include China, Indonesia, Japan, Saudi Arabia and Syria. “We have menswear and accessories, but the heart and soul of our business is leather,” says Albert Chiang, the younger brother of Sang Sem, during an earlier interview in conjunction with Malaysia’s Most Valuable Brands (MMVB) 2009. Bonia, which debuted at No 30 in 2007, fell off in 2008 only to return again at No 30 in the 2009 rankings. The group’s stable of brands comprises Bonia, targeted at the affordable luxury segment; Carlo Rino, which features cheerful colours and pocket-friendly prices for young adults; and Sembonia, the more affordable version of its sophisticated older sister, Bonia. It also holds the licence for the distributorship and dealership of Santa Barbara Polo & Racquet Club, Austin Reed, Valentino Rudy, Carven and Jeep. More recently, Bonia Corp announced the purchase of Singapore-based Jeco Pte Ltd, adding brands Pierre Cardin (in Singapore), Renoma, Bruno Magli and Braun Buffel to its brand portfolio. Following the appointment of Geoffroy de Drouas as business development general manager, the group started a business strategy of targeting travel retail to transform Bonia into a leading international label. “It’s a way of going beyond Malaysia and giving the brand an international image. By having a presence in international zones, we build a cachet for the brand, associating it with the luxury of travel,” said De Drouas in an interview last year. Currently, Bonia has stores at Kuala Lumpur International Airport, Singapore’s Changi Airport and the SkyPlaza at Hong Kong International Airport. “We are also members of the Tax Free World Association which promotes travel retail in locations like Hawaii, Guam and Fiji — destinations we aim for in the long term,” said De Drouas. Another method the group has used to raise its brand value is the presence of luxuriously appointed Bonia Boutiques, the largest of which was launched in Sogo, Kuala Lumpur, last year. “It is 5,000 sq ft in size and on a street corner with high amounts of traffic. Its presence generates brand awareness of Bonia as a luxury brand,” said De Drouas. A new Bonia Boutique was opened in Terengganu two months ago and the group is planning a “complete facelift” for the boutique in Melaka which will be moved to Mahkota Parade, said De Drouas. In Singapore, a new Bonia concept boutique is scheduled to debut at the Marina Bay Sands in December. The group is also expanding the presence of its Carlo Rino and Sembonia brands with a new Carlo Rino outlet to be opened in Terminal 2 of Changi Airport, and new Sembonia outlets in Pavilion KL and Berjaya Times Square. While the group is not launching new brands, it has extended the Carlo Rino brand to include CR Exchange (trendier fashion) and CR2 (more affordable fashion). Bonia will also be launching fragrances for men and women in December. “Bonia eau de toilette Pour Homme and Bonia eau de parfum Pour Femme will be initially exclusively available throughout Bonia boutiques in Malaysia and Singapore. It will be the ideal product to position ourselves through travel retail channels,” said De Drouas in a recent email interview. For the next three years, the group plans to focus on its strengths — namely, fashion and accessories. “Our expansion plan both vertically and horizontally is within our core businesses. The acquisition of Jeco, which has Braun Buffel, Renoma & Pierre Cardin brands in its stable, augers very well for our plan to further uplift our brand image to a higher level and [increase] overseas exposure. Moving forward, our strategy will remain focused on brand building, increasing our market share via expansion of existing brands with more outlets and higher same store sales growth. Our overseas focus countries are Singapore, Indonesia, Vietnam and the Middle East, especially Saudi Arabia,” said Bonia’s director of corporate finance, Chong Chin Look in a recent email interview. This article appeared in The Edge Financial Daily, October 11, 2010. |
https://theedgemalaysia.com/node/27835 | YTLC engages Samsung for 4G base stations | English | KUALA LUMPUR: YTL Power International Bhd subsidiary YTL Communications Sdn Bhd (YTLC) yesterday entered into contracts with Samsung Electronics Co Ltd to increase the number of base stations towards launching its 4G network nationwide soon. In a statement yesterday, YTLC said Samsung would provide additional 500 WiMAX 2.3GHz radio base stations to increase coverage in the East Coast, in addition to the 1,990 stations currently being deployed. It said Samsung would also supply 2,000 smaller base stations, or picocells, for in-building network coverage. YTLC has said it will roll out the world's first nationwide 4G network this year. It said Samsung was the world's first and foremost mobile WiMAX equipment provider, having launched the world's first commercial service in Korea in 2006 and serving as supplier to 23 major WiMAX operators across 19 countries, such as Clearwire in the US, Yota in Russia and UQ Communications in Japan. "Action speaks stronger than words. The acquisition of additional base stations and picocells from Samsung is a firm commitment we are making to deliver our vision of a nationwide network to serve all Malaysians," said YTLC CEO Wing K Lee. "Together with our world-class partners, we shall soon deliver mobile Internet to the urban and rural communities across the nation," added Lee. Samsung executive vice-president and general manager of telecommunications systems division Woonsub Kim, said: "As a global WiMAX solutions provider, we shall apply our experience from successful implementations throughout the world to support YTL Communications' business goals and we are very excited to play a role in creating the world's first nationwide 4G network here in Malaysia." |
https://theedgemalaysia.com/node/79719 | Zero import duties on Japanese, Aussie cars won’t have much impact, says Fomca | English | PETALING JAYA (Feb 28): The International Trade and Industry Ministry’s (Miti) move to phase out import duties for cars imported from Japan and Australia by 2016 will not have much impact on the average, everyday Malaysian. Federation of Malaysian Consumers Association (Fomca) chief executive officer Datuk Paul Selvaraj said that even though the import duty has been removed, the excise duty for vehicles is still very high. “We need to see the real impact. From what I’m reading many of the cars (from Japan) are already locally assembled. With all these excise and import duties, the prices of non-national cars in Malaysia are overpriced. A 30% reduction is nothing because the ones being imported will be the high-end cars. “How can it be cheaper to purchase a Mercedes in Germany or in the US and it’s so expensive here? It’s ridiculous. In the long term, I believe all these duties and protectionist policies must be phased out gradually so Malaysians can get the best deals. “This means Proton and Perodua must also compete on prices and improve on their quality,” said Selvaraj. He then advocated that the government must focus more on public transport, echoing International Trade and Industries Minister Datuk Mustapa Mohamed’s statement during a press conference on car price reduction earlier today. The Muslim Consumer Association chief activist Datuk Nadzim Johan on the other hand welcomed Miti’s plan, as Malaysian consumers will have access to more brands of vehicles. “Maybe the minister is preparing our mindset for the new brands of cars that may make an entry into our market. However, we must also look at it from the long-term picture. Our locally-made cars can now enter the Australian market without paying import duty,” said Nadzim. |
https://theedgemalaysia.com/node/18322 | Can-One able to reap synergies from Kian Joo acquisition | English | In a statement issued on Sept 16, Can-One did acknowledge that would be able to realise the synergies "despite the possibility of non-cooperation by the existing board members of Kian Joo". It said there could also be potential conflict of interest between Kian Joo and Can-One post-acquisition as Kian Joo had shareholders not associated with Can-One. "Can-One has the required capabilities and expertise in managing Kian Joo on its own in the event that the current dominant shareholders and management leave Kian Joo. "Can-One has sufficient cashflow to repay the borrowings incurred for the Proposed Acquisition in the event that, for any reason, dividends from Kian Joo are not forthcoming or are below the amount projected in the application to the Securities Commission," it added. |
https://theedgemalaysia.com/node/73386 | Market Open: KLCI on course to end correction | English | KUALA LUMPUR (Nov 18): The FBM KLCI looked set to end it correction stage as it edged up in early trade on Monday, lifted by select blue chips. Meanwhile, newly listed Berjaya Auto Bhd made an impressive debut on the Main Market of Bursa Malaysia and was the most actively traded counter. At 9.15am, the FBM KLCI edged up 0.29 points to 1,790.16. Gainers led losers by 171 to 85, while 186 counters traded unchanged. Volume was 135.24 million shares valued at RM85.46 million. The top gainers included Berjaya Auto, Datasonic, Hup Seng, IQ Group, KLK, Carlsberg, Tiong Nam Logistics, Bumi Armada, Suria and Matrix. Berjaya Auto surged RM1.16 to RM1.86 with 17.65 million shares done. Hwang DBS Vickers Research in a market preview Monday said that continuing from where it left off last Friday, the Malaysian bourse could inch a bit higher today. It said that on the chart, the benchmark FBM KLCI may recover further by climbing towards the psychological mark of 1,800 ahead. “Sentiment will likely get a boost from Wall Street’s rise last Friday. Leading US equity barometers advanced between 0.3% and 0.5% at the closing bell to new record highs lifted by investors’ expectation that the new Federal Reserve chairman would maintain the central bank’s monetary stimulus efforts. “In terms of interesting corporate developments, the following counters could be in the limelight today: (a) Bumi Armada, which has secured a Letter of Interim Agreement in relation to an award of a contract (possibly worth US$1.6 billion over 8 years) by an UK-listed oil & gas producer for the supply and operations of a floating production, storage and offloading vessel (FPSO); (b) Magna Prima, after a business weekly reported that a new party with links to large construction companies from China may emerge as the new major shareholder in the company; and (c) Berjaya Auto as its shares are set to be listed this morning,” it said. Elsewhere, Asian share markets were consolidating recent gains on Monday, with investors encouraged both by the prospect of extended stimulus in the United States and real economic reform in China, according to Reuters. MSCI's broadest index of Asia-Pacific shares outside Japan was a fraction firmer, having gained 1.3 percent on Friday for its biggest daily rise in almost two months. Australia's market was steady in early trade, it said. |
https://theedgemalaysia.com/node/18757 | OSK says Salcon shares undervalued | English | In a note yesterday, OSK said the valuation for Salcon, an unrated stock, based on a one-time BV or net assets per share, would point to a fair value of 62 sen. This represents a 21.6% premium to the stock’s closing price of 51 sen yesterday. Salcon’s net assets per share stood at 65 sen as at June, up from 62 sen at the end of last year. “In the past five years, Salcon’s earnings have been choppy following a change in management, which has implemented a restructuring exercise. For that, we think a PER (price-to-earnings ratio) method would be difficult to ascertain Salcon’s value. “As net earnings will grow twofold this year on a year-on-year basis, we see Salcon’s net earnings hitting RM23.2 million by year-end. This figure will be on the back of higher billings momentum from its China construction projects and better contribution from its concession division,” OSK said. Salcon’s net profit in the financial year 2009’s second quarter ended June (2QFY09) surged 74.2% to RM6.41 million from RM3.68 million a year earlier, helped by the firm’s construction business and water concessions in China. Revenue climbed 80.3% to RM111.65 million from RM61.94 million. In FY08, Salcon raked in a net profit of RM8.79 million from a net loss of RM7.84 million a year earlier on the back of RM252.82 million revenue. Salcon is expanding its business. The firm is expected to secure more construction jobs under the Ninth Malaysia Plan where policymakers have earmarked RM8.1 billion to improve 219 water infrastructures, besides another RM3 billion for 11 new wastewater facilities and 47 ongoing projects. On a global scale, Salcon has tendered for some RM1.5 billion worth of construction projects, of which domestic jobs make up 60%. Based on the company’s historical success rate of between 20% and 30%, the builder is expected to clinch between RM300 million and RM450 million worth of jobs towards FY10, at an estimated net profit margin yield of between 7% and 8%, OSK said. Salcon’s water concession business is also a growth story in anticipation that the company, already with seven concessions in hand, will secure more water and wastewater deals in China, possibly on a build, operate and transfer basis. Of the seven concessions, six are in China where these deals are operated at subsidiary level, while the remaining one in Vietnam is run via an associate stake. This article appeared in The Edge Financial Daily, September 25, 2009. |
https://theedgemalaysia.com/node/35292 | Newly listed Berjaya Retail focuses on expansion plan | English | KUALA LUMPUR: Newly listed Berjaya Retail Berhad will focus on expanding its 7-Eleven and Singer stores this year, with its capital expenditure (capex) coming from internally generated funds. 7-Eleven Malaysia Bhd executive director Ng Su Onn said another 100 stores requiring RM25 million will be added to its 1157 store nationwide. According to Ng, it will also collect RM25 million from franchising existing stores this year which will cover the capex required. "About 40% to 50% of our expansion plans will be in Klang Valley," Ng told reporters after the group's listing ceremony on Monday, Aug 16. Meanwhile, Singer Malaysia Sdn Bhd managing director Yeap Dein Wah said that around 10 to 20 stores will be added by year end, costing RM150,000 to RM200,000 each. Berjaya Retail debuted 3% higher at 51.5 sen at the opening bell on Monday. Its chain of 7-eleven stores and franchise is the highest topline contributor at 77%, said Ng. However, its net profit after tax is equally contributed by both 7-Eleven and Singer. |
https://theedgemalaysia.com/node/79478 | Maxis 4Q profit falls 58%; declares 16 sen dividends | English | KUALA LUMPUR (Feb 26): Maxis Bhd posted a net profit of RM378 million for its fourth quarter ended Dec 31, 2012, a 58% down from RM900 million a year ago. Revenue rose slightly to RM2.31 billion, from RM2.27 in the same quarter of 2011 on the back of higher revenue from its business segments. The company declared an interim dividend of 8 sen and proposed a final dividend of another 8 sen. This will bring full year dividends to 40 sen per share. In a filing to Bursa Malaysia, Maxis said, “The lower comparable profit for the year was mainly due to lower earnings before interest, tax, depreciation and amortisation (EBITDA) of RM64 million and higher net financing, and amortisation costs of RM60 million and RM43 million, respectively”. For the full year, the company reported a 26.48% drop in net profit to RM1.86 billion from RM2.53 billion the year prior. In the same period under review, revenue increased marginally to RM8.97 billion, up from the previous year’s RM8.80 billion. “The group expects the telecommunications industry, particularly the mobile business to remain competitive with the establishment of new players in a highly penetrated and fast maturing market,” Maxis said. Given that, Maxis plans to bring added value to existing customers which have growing needs above traditional voice and SMS requirements. “The group will take its current successful experience of seeding the market with smart devices to broaden the base of data users in an effort to leverage its existing mobile subscriber leadership base. “It is offering compelling bundled packages to stimulate voice usage which still forms a major part of its mobile revenue and value proposition plans as part of its customer loyalty programmes to retain its base,” it said. In addition, Maxis expects to grow its market share and revenue in East Coast, Sabah, Sarawak, and the immigrant and traveller segments through initiatives taken in offering IDD, roaming and prepaid packages during the year 2012. It has thus begun an infrastructure modernisation programme including upgrading its 2G network and continuous expansion of its network into underserved areas. Maxis is also currently developing LTE networks. “The group has spent a major part of the year 2012 introducing these market initiatives and investing in growth of future revenue which it expects to begin to take effect in early 2013,” said Maxis. |
https://theedgemalaysia.com/node/70786 | Am Research: Maybank may lower dividend reinvestment plan | English | KUALA LUMPUR (Oct 8): Am Research said the move by Malayan Banking Bhd (Maybank) to raise funds through a new share placement was a surprise and this could be a pre-emptive move to lower dividend. In a research note, it said: "The proposed share placement by Maybank is a surprise, given that Maybank had previously reassured that its common equity ratio of 8.63% as at September 2012 was sufficient under BASEL 3." Maybank announced last Friday it was proposing a private placement of up to 300 million new shares at an indicative price of RM8.80 to raise RM2.64 billion. "We understand the placement is partly for BASEL 3 capital purposes and for working capital… We believe this may be a pre-emptive move for a reduced dividend reinvestment plan ahead." Am Research added that it is maintaining its view that the dividend payout ratio will likely normalise to the official guidance of 40% to 60% post utilisation of Section 108 tax credit by 2013. It has assumed a dividend payout ratio of 58% for FY2013 versus 75% for FY2012. Though maintaining a "Hold" rating on Maybank, Am Research has a lower fair value of RM9.30/share for Maybank compared to RM9.50/share previously. At market close, Maybank fell 5 sen to RM8.94 on turnover of 14.74 million shares. |
https://theedgemalaysia.com/node/66564 | Let Selangor handle the water assets | English | PUTTING aside the objections from Selangor, the federal government will call for competitive bids to build the Langat 2 water treatment plant that is estimated to cost more than RM8.6 billion. This looks like another futile effort by the federal government to force its way into the state's water industry. Matters relating to land and water come under the state. Without its approval, it would be difficult for the federal government to implement the project, let alone come up with a realistic pricing. Well aware of the limitations, Deputy Prime Minister Tan Sri Muhyiddin Yassin, who is also the chairman of the Special Cabinet Committee on Selangor Water Issues, has said the assistance of the Attorney-General has been sought to help look into how to get the project done, considering the state's power over land matters. Assuming the matter goes to court, which cannot be discounted, the state has the resources to fight the federal government, so we could be looking at a prolonged affair. In the meantime, the price will keep going up based on the history of the project. When efforts to implement Langat 2 picked up pace in 2007 and early 2008, the cost was estimated at RM5 billion. This has now risen to RM8.6 billion. Why the escalation in the estimate? There really is no answer but the oft-quoted justification is that material costs have gone up significantly over the years. Whether it is the cost of materials or the consultancy fees for some well-connected companies that have risen is something that needs to be looked into carefully. For now, what is perplexing is the basis for the decision to invite tenders. According to reports, the committee has taken this step to avoid being accused of not being proactive in view of a possible water shortage in the state in three years or so. But without having made a compromise with the state on issues related to the water assets, on what grounds are the tenders being invited? Without any certainty on when the land and other approvals can be obtained, would any contractor worth its salt be able to put in a realistic bid?If there are delays in securing the approvals, the winning bidder would certainly have to adjust the price. Do we want this? Also, without a representative of the Selangor government on the Cabinet Committee, can the outcome be disputed by the state? Even though the bidding is open to companies under the control of the Selangor government, what makes the Cabinet Committee think that the state will participate? Doing so would mean the state is legitimising the process and hence would have no grounds to object to the move to build Langat 2. There is no doubt that the proposed water treatment plant is necessary for a long-term solution to the growing demand for treated water in Selangor, Kuala Lumpur and Putrajaya, thanks to an increase in the population. But whatever the Cabinet Committee decides is moot without the state participating in the decision-making process. Since March 2008, it has been no secret that the federal government has found Selangor Menteri Besar Tan Sri Khalid Ibrahim a handful in dealing with matters related to the state's water assets. He will not go along with the federal government's objective to have Pengurusan Aset Air Bhd (PAAB) lead the consolidation of the water assets. Khalid wants Selangor to take control of Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) — the sole water distributor of the state, Kuala Lumpur and Putrajaya. At the moment, Syabas is under the control of Puncak Niaga Holdings Bhd, which is headed by Tan Sri Rozali Ismail. Selangor has been asking the federal government to revoke the concession agreement that gives Puncak Niaga a 70% stake in Syabas on the grounds that the latter has violated several conditions. One of them is the award of capital works to Puncak Niaga's related companies, which was supposed to have been done on a competitive basis, and another is the procurement of pipes from companies that are reportedly controlled by Rozali in Indonesia. These issues had not gone down well with the federal government, even before March 2008. It was to break Puncak Niaga's monopoly in the Selangor water industry that the federal government gave Kumpulan Darul Ehsan Bhd the mandate in February 2008 to lead the consolidation of the state's water assets. The letter, which KDEB was not shy to display to the media, gave it bragging rights to lead the consolidation of water-related assets in the state. By virtue of the letter, KDEB also said Langat 2 — which would be the biggest plant in the state — should be under its purview. But relations between the federal government and KDEB became frosty after the state was taken over by Pakatan Rakyat in the March 2008 general election. Subsequently, KDEB took a back seat in moves to consolidate the water assets. Instead, the federal government is seeking to take over the water assets in the state — something that has not seen much progress — via PAAB. With regard to Langat 2, the Cabinet Committee has to get real. At the moment, whenever there is a problem, the state blames it on Puncak Niaga while the latter says it cannot undertake capex works to reduce non-revenue water because the water tariff rates, as agreed to in the concession agreement, have not been approved by Selangor. This blame game can, and will, go on as long as no party is responsible for the water supply situation. Under the circumstances, why not go back to the previous solution of letting KDEB consolidate the water assets and allowing it to build Langat 2? The cost is likely to be lower. Moreover, the federal government has nothing to lose because, should it win back Selangor, KDEB would come back under its control. That way, any party that controls the state government would be in full control of water supply. It would not leave any room for shifting the blame, like what is happening now. That is a more practical solution than inviting tenders, which may be stillborn and will only complicate matters. M Shanmugam is deputy editor-in-chief at The Edge. This story appeared in The Edge on July 30, 2012. |
https://theedgemalaysia.com/node/43591 | Ranhill shares climb on major share in RM1.07b Petronas Gas job | English | KUALA LUMPUR: Shares of Ranhill Bhd rose to a high of 91.5 sen in late afternoon trade on Thursday, Jan 27 after it stated its subsidiary has a 70% stake in the JV which was awarded a RM1.07 billion contract. At 3.31pm, it was up 7.5 sen to 91 sen. There were 8.70 million shares done traded at prices ranging from 86.5 sen to 91.5 sen. Ranhill announced to Bursa Malaysia during the midday break that its 51% owned Ranhill WorleyParsons Sdn Bhd has a 70% stake in the consortium with Muhibbah Engineering (M) Bhd, making it the major beneficiary. The consortium was awarded a RM1.07 billion contract from Petronas Gas Bhd. The project involves the engineering, procurement, construction, installation and commissioning for the LNG regasification unit, berth and subsea pipeline in Melaka. |
https://theedgemalaysia.com/node/78757 | #Mid-morning market* KLCI extends loss, CIMB and Genting weigh | English | KUALA LUMPUR (Feb 18): The FBM KLCI extended its loss at mid-morning on Monday, weighed by losses including at CIMB and Genting. At 10am, the FBM KLCI fell 3.54 points to 1,624.39. There were 166 losers and 92 gainers, while 174 counters traded unchanged. Volume was 143.06 million shares valued at RM80.25 million. Among the decliners at mid-morning, Tawin fell 19.5 sen to 20.5 sen, Lysaght and F&N lost 10 sen each to RM2.20 and RM18, PPB down eight sen to 12.16, Cahya Mata Sarawak, RHB Capital, CIMB and Genting lost six sen each to RM3.02, RM7.70, RM7.02 and RM9.78 respectively, while Keck Seng and Tasco lost five sen each to RM4.22 and RM2. Compugates was the most actively traded counter with 32.74 million shares done. The stock was unchanged at 9.5 sen. The other actives included Metronic, Patimas, GPRO, Tiger Synergy, KrisAssets and IRCB. The gainers included LTKM, BLD Plantations, Cycle & Carriage, Shell, UMW, HLFG, Lafarge Malayan Cement and Spritzer. BIMB Securities in its market preview Monday said that Wall Street continued with its consolidation as investors remained sideline with more economic data to be out this week and the market will be taking a break on Monday for President’s Day. As a result, the Dow Jones Industrial Average ended the day (last Friday) flat again at 13,982 (+8.4 points). The research house said that meanwhile, European stocks were lower amid some political uncertainties faced by both Spain and Italy. Whilst Italy will be preparing for a general election in Feb 24/25, Spain’s PM is faced with allegations of corruption, it said, adding that Asian markets were mixed from the lack of catalysts as investors remained tentative. “Locally, the FBM KLCI was down 2.96 points to 1,627.93 as market consolidation is expected to be extended ahead of rumours that the dissolution of the Parliament will be on the 22nd this month. “We see more downside on the benchmark index with the 1,625 level as the immediate support thereafter at the 1,616 mark,” it said. |
https://theedgemalaysia.com/node/56209 | Midday Market: KLCI rises 0.48%, select blue chips lift | English | KUALA LUMPUR (Dec 13): The FBM KLCI rose 0.48% at the midday break on Friday, hovering near its record high lifted by select blue chips, including index-linked plantation stocks and Telekom. At 12.30pm, the FBM KLCI gained 8.84 points to 1,842.71. Gainers led losers by 317 to 304, while 281 counters traded unchanged. Volume was 661.77 million shares valued at RM724.04 million. The top gainers included Petronas Gas, Datasonic, HLFG, Apollo, KLK, PPB, Puncak Niaga and Telekom. The most active stocks included Tiger Synergy, Sona Petroleum, Instaco, CLIQ, Sanichi, XDL, MBSB and DSC Solutions. The decliners included BAT, Tasek, Lafarge Malaysia, Aeon, Hong Leong Capital, GAB, Cahya Mata Sarawak, Dutch Lady and AMMB. Affin IB vice president and head of retail research Dr Nazri Khan said that going forward he expects local equity prices to maintain bullish bias on positive global economic data, continuous carry trades and commodity/plantation sector strength. Nazri said given the extent of the FBM KCLI’s strong rally last four months (a gain of 9.9% over September-December), the local benchmark should have more market inertia to carry the current rally higher at least to end of January 2014. He said that on the domestic front, Bursa Malaysia should get significant catalyst from a strong commodity bounce with crude palm oil, light crude oil, gold and copper made big short-covering-rallies (gaining 1.6%, 8.2%, 1.3% and 1.5% respectively week-on-week) with plantation sector leading the rest of the broad market (gaining 1.4% w-o-w). “Seasonal trends usually favour a strong finish to the month of December with profit taking normally happen just before the Chinese New Year in late January. “With such big price gains on the books for last quarter of 2013, however, it appears that money managers are quietly accumulating the local stocks possibly to post window dressing period in January 2014,” he said. Elsewhere, Asian markets were mostly flatlining on Friday as investors fret over the outlook for U.S. policy stimulus, but Japanese stocks forged ahead as the yen slid to a five-year trough on the dollar, according to Reuters. The U.S. currency romped up to 103.85 yen after finally clearing a mass of offers around 103.70/74, reaching territory not visited since October 2008, it said. |
https://theedgemalaysia.com/node/82861 | Saudi govt terminates MMC’s US$30b Jazan city deal | English | KUALA LUMPUR: The Saudi Arabian General Investment Authority (Sagia) has terminated with immediate effect the contract awarded to the 50:50 joint venture (JV) company of MMC Corp Bhd and Saudi Binladin group to develop the US$30 billion (RM91.8 billion) Jazan Economic City (JEC) in Saudi Arabia. The JV company, Jazan Economic City Land Co Ltd (JECL), was awarded the contract in 2006 to develop the project located in the Jizan province of the Kingdom of Saudi Arabia. “The termination was as a result of circumstances which gave rise to several difficulties that interrupted the progress of the project. “Until the status of the termination is clearer, the board is not in the position to determine precisely the impact on the group’s future earnings. The board will be engaging advisers to advise on matters relating to the termination and compensation,” MMC said in a filing with Bursa Malaysia yesterday. According to the filing, JECL received a letter from Sagia on March 25 informing it of the surprise termination. “We will make further announcements when there is any new material development on the matter,” it said. JEC was envisioned to be a fully integrated and self-contained development to nurture non oil-based industries aimed at generating an alternative source of revenue for Saudi Arabia. Industries within JEC were to benefit from electricity at a competitive tariff made possible by subsidised fuel oil. MMC chairman Datuk Wira Syed Abdul Jabbar Syed Hassan said in the company’s 2008 annual report that among industries that would be set up in JEC were infrastructure projects, such as a port and a power plant; primary industries such as an aluminium smelter; a steel cluster; an oil refinery; and secondary industries such as steel, automotive and shipbuilding. In its 2009 annual report, the group said the project had attracted a total of US$31.6 billion worth of investments by November 2008, which exceeded the US$30 billion investment initially targeted. However, in 2010 when the project was deemed to contribute positively to MMC’s earnings, it started to face problems with its development. Syed Abdul Jabbar, in the group’s 2010 annual report, noted: “On the international front, the JEC project is moving ahead, but progress has not been what we had originally anticipated due to the global financial crisis that had delayed our plans to develop several infrastructure components of the project.” Nevertheless, he said, the company would continuously review its strategy on JEC so as to create value for shareholders. An integral part of the JEC project was the oil refinery, which was to be constructed and completed by Saudi national oil company, Aramco. The oil refinery was projected to produce 250,000 to 400,000 barrels per day, and expected to support the entire JEC project. According to MMC’s 2010 annual report, work on the refinery was supposed to commence in the first quarter of this year. It was due for completion in the fourth quarter of 2015. However, there had been no recent updates on the oil refinery. This article first appeared in The Edge Financial Daily, on April 9, 2013. |
https://theedgemalaysia.com/node/55259 | SP Setia, Maybank, BRDB, Tenaga | English | KUALA LUMPUR: After the battering for the local stock market in recent weeks, investors will be bracing for some selling pressure in the week ahead, starting Monday, Sept 26 especially after the FBM KLCI fell to its lowest since mid-August last year. Concerns for the investors include whether the selling, especially from foreign funds, has eased, especially for fundamentally strong companies. More than 100 stocks closed at their worst for 52 weeks last Friday. Last Friday, the KLCI lost 1.58% or 21.87 points to 1,365.94. Year-to-date, the KLCI is down 10.07%. It is the fourth worst performing market after the Philippines, Thailand and Jakarta which fell 7.50% YTD, 7.11% and 7.48% respectively. The bigger regional markets have slumped between 15% for Singapore and 23% for Hong Kong’s Hang Seng Index. Affin Investment Bank’s head of retail research Dr Nazri Khan said he believed the KLCI could see more negative headwinds in the week ahead on growing fears over the global economy following negative comments from the US Federal Reserve and more evidence of fiscal weakness across Europe. He pointed out the bad inter-market technical picture with traditionally bearish October looming ahead. “We must caution investors that the FTSE All-World has already declined by 23.2% since its May 2011 peak (14 months low), putting the global stocks in the officially defined bear market,” he said. Nazri said with the FBM KLCI below its 1,400 strong psychological support (to its low since May 2010) and FTSE All World is now firmly in a bear market with China Shanghai Composite Index, NYSE Composite Index and Germany Dax Index scoring a fresh 52-week low, he believes the traditional June-August summer rebound have ended. “The high probable forecast next few weeks is clearly down with September and October living up to its reputation as one of the market's most bearish months of the year,” he said. Nazri said the clearest sign that global economy is loosing momentum can be seen from Hong Kong and Singapore exchanges, which are considered most opened and most sensitive to global economic growth. Both Hang Seng Index and Strait Times Index have tumbled 28% and 20% respectively (to their lowest level since July 2009 and June 2010). His concerns were more rating downgrades expected next week following Moody's Investors Service’ downgrade of the credit ratings of US and French banks. "On the local front however, we are expecting some positive surprise in the Budget 2012 to cushion the weaker external economies. Some anticipated measures such as fiscal incentives to attract foreign talent, liberalisation in healthcare and education and fiscal support for GLC on international collaboration are likely budget elements to boost the local market,” he said. Overall, Nazri said despite the positive news on the home front, he retained his cautious view in the near term. He advised conservative clients to stay defensive with deep-value-high-yield-blue-chips while aggressive clients to short index futures. Meanwhile, stocks to watch in the week ahead are SP Setia Bhd, Malayan Banking Bhd, Bandar Raya Developments Bhd (BRDB) and Tenaga Nasional Bhd. Oil and gas companies would also provide buying interest, especially fundamentally strong counters which were affected by foreign selling. However, investors should take a long-term view of the market, based on Malaysia’s stronger economic fundamentals and strong banking system while the Budget 2012 proposals could provide temporary respite. SP Setia is expanding its landbank in Australia with an investment of RM81 million for its second property project in Melbourne with an estimated gross development value of RM772 million (A$250 million). Its unit SP Setia International Ltd had signed a contract of sale with Portbridge Pty Ltd to acquire the 2.23 acres of freehold land in the South Yarra suburb in Melbourne Investors’ interest could also focus on Maybank, a heavyweight in the 30-stock index, which fell 41 sen to RM7.99 on concerns that it could face a derating risk. Its decline, which saw RM3.06 billion wiped out from its market capitalisation, dragged the KLCI down by 7.10 points. Credit Suisse Asia Pacific/Malaysia research, had in a recent report on Malaysia, said there appeared to be growing investor concerns about a possible repeat of the 2008-2009 global financial crisis (GFC). It said while a repeat of the 2008-2009 GFC was not our base case, it assessed the vulnerability of the banks if it was to see a US double dip and debt crisis in Europe. To gauge the downside risk for the banks, three key measures which it focused on were valuation comparison with GFC lows; foreign shareholding levels compared to GFC lows and earnings resilience during 2008–09 GFC period. Credit Suisse research said that by comparing the current valuations to the 2008–09 global financial crisis (GFC) lows, within its own coverage, Maybank and CIMB appeared most vulnerable to a de-rating risk. Stocks with the least downside risk are Alliance (only stock trading below GFC P/E) and Public Bank (P/E at only 5% premium to GFC level and lowest P/B premium to GFC level). “Moreover, we believe that stock prices of potential acquisition targets such as Alliance, RHB and Public should be more resilient,” it said. In terms of foreign ownership risk, it said CIMB was the most widely held banking stock among foreigners. Banks that have seen the largest increase in foreign ownership since the GFC are CIMB (+8.7 percentage points to 36.4%), RHB (+8.4 ppercentage points to 13.6%), Maybank (+2.7 percentage points to 13.5%) and Hong Leong Bank (+0.9 percentage points to 8.0%). On the other hand, foreigners have reduced holdings in Alliance Financial Group, AMMB and Public Bank since the GFC. Meawhile, among the other two stocks to watch would be Bandar Raya Development Bhd and Tenaga Nasional Bhd. News reports said BRDB had been asked to disclose the beneficial owner of a 23.6% block of shares in the property development company. The report said Bursa Malaysia had asked BRDB to disclose the owner of the stake, especially after BRDB’s plan to sell its assets to its major shareholder. Tenaga could also see trading interest on concerns about the current gas supply shortage, high fuel costs and the weakening of the ringgit against the US dollar. Stocks which would see their dividends going ex the week ahead are MISC Bhd and Malaysian Marine Heavy Engineering Bhd (MMHE). MISC’s final 10 sen dividend tax exempt and MMHE’s final single tier dividend of five sen will go ex on Monday. NCB’s interim dividend of seven sen single tier will also go ex on Monday. |
https://theedgemalaysia.com/node/95140 | Highlight: Is art a good alternative investment? | English | ALTHOUGH there are many Malaysians who collect art, not many do it for investment purposes. What should you consider when putting your money in a canvas or two? Art has been in existence since prehistoric times. However, the value of art does not go as far back as that. In Malaysia, art has a fairly new history and the quest for art pieces only goes back to the mid-20th century. For investors, art is an alternative to investing in the traditional asset classes. For those who are taking baby steps into art investment, there are some basic things they should know. For a start, art is subjective and its value is different to each person. So, if there is anything certain about art, they are its uncertainty and volatility. The uncertainty lies in its value — both cultural and commercial. A piece of art may be beautiful and hypnotising to some people, others may not understand it at all. Yet, many are willing to put a price on the beauty of art. Since art prices are not regulated in Malaysia, local artists can value their art as they see fit. According to the owner of Art Accent June Cheong, artists who have been in the industry longer will know how to price their work accurately. "The older artists who have gone overseas and gained knowledge of the industry will value their works higher. The younger ones sometimes consult gallery owners to suggest a price for them. Otherwise, some of them will seek out other artists for advice on valuation." "However, young artists are usually advised to price their work reasonably," she adds. The name of the game is demand and supply, says Cheong. "The supply from artists is pretty erratic. Sometimes, they stop producing for years while the demand [for good art] keeps growing." The unique thing about art's monetary value is that the economic model of price determination is not the only driving factor. Galeri Chandan managing director Mohammad Nazli says there are three things that an art piece is evaluated by: the composition of the piece, the narrative behind it and the technique applied by the artist. Good artists, he says, will deliver on all three levels. Cheong says a good artist is defined by the quality of the artwork, which comprises the three levels mentioned by Nazli and another level of discipline — a good artist will improve over time. So, how can one identify what is good art and what is not? And more importantly, whether it is worth investing in? For Nazli, it is a process of discovery. "There are certain pieces that will speak to you and those are the ones that resonate with you. The value of that is intangible. No analyst can tell you what to buy and what not to buy or whether the price will go up or down. There is no forecast when it comes to art." Cheong, on the other hand, feels that good art and the ability to distinguish what is good is instinctive, and it is something that grows the longer the person is exposed to art. "Of course, a lot of it is about personal preference, but to know what is good in a painting comes from experience and knowledge. This can be gained over the years by looking at art, talking to people in the industry and reading about it in books," she says. Nazli agrees with that, and gives another good tip. "Good art is when an artist can find a balance of commercial and cultural value in his art piece. Some art are created with great cultural value that may be displayed in a museum but can never be sold to someone to display in his home, and vice versa." The gallery owner also stresses that those interested in going into the art market should move quickly. "It is the perfect time to enter the market now." He advises new buyers to look at pieces valued between RM5,000 and RM9,000. "There is a gestation period for artists. If they price their art for RM5,000 and people are buying, it means they have passed the test. Many artists struggle to create a fine piece of art and some quit after a year or two. Those who sell have passed the test of time. If you're buying art at that point of their journey, it is good because the price can only go up, or at the very least, be sold at cost." Sim Tan, a veteran in art dealing, has similar views. "Selecting a work of art you wish to live with is always personal but there are other criteria in deciding which works may appreciate in value. These include the choice of artists who will stand the test of time — their reputation must be maintained in time to come, and they shouldn't be just fashionable for the moment — as well as selecting good examples of an artist's work, because hardly any artists are totally consistent in the quality of the works they produce. While there is the argument that these are all value judgements, and therefore personal, connoisseurship does exist: there are, without doubt, good and bad artists; better and lesser works; a good and a less discriminating eye for art." Many do not understand why art is valued so highly. Nazli, having come from a corporate background, compares artists to other corporate workers. "Think of it this way," he says. "You have corporate executives who earn RM5,000 to RM9,000, general managers who earn RM15,000 and up; and CEOs earning above RM30,000. The same goes with artists, they have degrees, too. So, why shouldn't they earn the same as corporate workers?" Corporate workers, it seems, are one of the biggest buyers of art in Malaysia. Collector Bingley Sim is a corporate executive and an avid collector of local art pieces. As a banker, he first looked into art collection as an alternative investment option in 2004. In 2008, Bingley fell in love with art. "It was after the 2008 election and I saw a piece of Bayu's [Utomo Radjikin] work. Its title, 'Kau sekutu atau seteru' loosely translates into 'Are you with me or are you not with me?' The painting spoke to me as soon as I set eyes on it. That was when I first realised what art collecting truly is." On investing in art, he says: "I think you can start off trying to invest in art but you will fall in love with it and end up being a collector, which will quite certainly make you a poorer person but it will definitely make your life richer." "Why is it that we don't consider our art collection an investment? It is simple. We will never part with our art pieces. Collectors will never release their collection for sale because the art pieces are unique and when we buy works, we would like to believe we have chosen the best pieces from the artist," Bingley says. "There are also some art pieces that are very evidently the best pieces in an art exhibition and they will draw everyone."The emotional attachment to the art pieces is something all collectors have in common. Another one of Malaysia's top collectors is retired lawyer Too Hing Yeap. He started his collection in the late 1990s. His take on investing in art is more reasonable. Not every piece that draws a buyer necessarily needs to be bought. "You can enjoy a piece of art without having to buy it. Of course, if I have the money and a piece of art takes my breath away, I will grab it." "A strong piece of work usually commands a higher price. Who the artist is has a bearing on the price. Established artists whose works are much sought after usually command a higher price than a relatively unknown artist," he advises. "For me, there has to be a wow factor in relation to a piece of work before I would consider buying it. "For popular artists, when they die, the price of their works may increase," he continues. "This does not apply to every artist. I would narrow it down to quality of work and market demand that will determine the value of an art piece." His parting advice: "In collecting art, you should buy something that you really like; something that you will enjoy looking at again and again. I tend to form strong attachments to the pieces that I have collected. My wife thinks this is unnatural. If, in the meantime, its price moves up, it's an added pleasure!" Pakhruddin Sulaiman has a slightly different approach. Like most collectors, he has never once thought of his art collection as an investment. "Don't go for the recognised tastes, it is no fun," he opines. "Don't go for blue-chip artists all the time, go for those who go out of their comfort zones." He says his confidence in buying unconventional art is derived from knowledge. "I read a lot [about art] and I am secure in my art-buying decisions, so I won't be swayed by public opinion. To have the ‘eye' for art is to have knowledge." Art collection to him and other collectors is an adventure. "This is a journey, and when I arrive, I will stop," he says, mysteriously. Collectors and gallery owners alike believe that art is a risky and volatile investment option. However, Nazli feels that art is something that will sell regardless of the economic outlook. "Art has an inherent value. People will buy it at any point at any cost. At the very worst, it will be sold back at cost unless the art is mass-produced, but most artists are not wired that way," he adds. Bottom line: If you're going to buy art, do it with a passion and with heart. You will be looking at it in your home every day. If the price goes up, it is a bonus. |
https://theedgemalaysia.com/node/86245 | KNM gets RM134 mil loan from EXIM Bank | English | KUALA LUMPUR (May 16): KNM Group Bhd has obtained a loan facility worth US$44.6 million (RM134 million) from Export-Import Bank of Malaysia Bhd. The funds will part finance the process equipment manufacturer's project in Tatarstan. In a statement to Bursa Malaysia, KNM said the loan aims to guarantee KNM’s contract performance for the supply of a sulphur-recovery unit in a residue -conversion facility within the Central Asian country. "The tenure for the banking facilities is up to a maximum period of thirty (30) months or up to the date of completion of the contract, whichever is earlier," KNM said. KNM said last February it had secured the US$100.03 million (RM308.6 million) job from Public Stock Company TAIF-NK. The contract is expected to contribute positively to KNM’s financials for the years ending Dec 31, 2013 to 2015, the firm said then. |
https://theedgemalaysia.com/node/50027 | BLand unit, PT Lion sign JV pact | English | KUALA LUMPUR: Berjaya Land Bhd’s (BLand) subsidiary Berjaya Vacation Club Bhd (BVC) has entered into a joint venture (JV) agreement with PT Lion Mentari, Indonesia’s largest private carrier. In a filing with Bursa Malaysia yesterday, BLand said the JV was to jointly operate, manage and develop the business operations of Berjaya Air Sdn Bhd (B-Air), a charter and schedule flight operator company. “The proposed joint venture will be on a 51:49 equity basis,” it said. BLand said the JV would allow B-Air to expand its business horizon beyond Malaysia by capitalising on its Indonesian partner’s experience and economies of scale in the aviation services industry with a large fleet of aircraft and an expansive reach of destinations. B-Air is presently a 99.7%-owned unit of BVC which in turn is a 100%-owned unit of BLand. — Bernama This article appeared in The Edge Financial Daily, June 7, 2011. |
https://theedgemalaysia.com/node/48360 | Seoul shares slightly higher on U.S. data, profit taking caps gains | English | SEOUL (Dec 24): Seoul shares crawled higher on
Tuesday morning, poised to finish stronger for a sixth straight
day, as bullish U.S. data raised hopes for a year-end boost in
consumer spending. Some investors, however, consolidated profits ahead of the
Christmas holiday which capped gains. The Korea Composite Stock Price Index (KOSPI) was up
0.1 percent at 1,998.77 points by 0200 GMT after hitting an
intraday high of 2,000.28, briefly regaining the psychologically
important index level. The KOSPI has risen 1.8 percent in the
past five sessions. "Risk sentiment is gradually improving, backed by bullish
data across the globe and the hopes for a Boxing Day consumption
boost," said Hana Daetoo Securities analyst Chang Hee-jong. U.S. consumer sentiment hit a five-month high heading into
the end of the year and spending notched up its strongest month
since the summer, brightening prospects for year-end consumption
that could lift the index higher. On Monday, Wall Street closed at record highs on the back of
a distribution deal by Apple Inc and China Mobile Ltd
. South Korean suppliers to Apple benefited from the
deal as well, with LG Display Co Ltd and LG Innotek
Co Ltd advancing 1.6 percent and 2.9 percent,
respectively. Meanwhile, investors locked in profits on affiliates of
Hyundai Group, which soared in the previous session
after revealing a plan to improve financial structures. Hyundai
Elevator Co Ltd dropped 3.4 percent and Hyundai
Merchant Marine Co Ltd fell 1.3 percent. Shares in KB Financial Group Inc fell 1.1
percent after Hyundai Merchant Marine said on Tuesday it would
sell 46.5 billion won ($43.84 million) worth of KB Financial
shares as part of its plan to improve its financial structure. The top three KOSPI components also suffered from profit
taking, with Samsung Electronics Co Ltd dipping 1
percent while Hyundai Motor Co and POSCO
slipped 0.9 percent and 0.6 percent, respectively. Institutional investors purchased a net 108 billion won of
local shares, poised to extend their net buying steak to a 15th
consecutive session, their longest since August 2008. Local stock markets will be closed on Wednesday for the
Christmas holiday and reopen on Thursday. The last trading day
for local stocks is Dec. 30. - Reuters |
https://theedgemalaysia.com/node/77807 | Menteri besar, chief minister advised against contesting | English | PETALING JAYA (Jan 25): Several political parties are expected to be forced to drop a few big names from the list of candidates in the 13th general election (GE). According to a Sinar Harian report on Friday, this cannot be avoided as a handful of candidates failed in the screening test conducted by the Malaysian Anti-Corruption Commission (MACC) for having problems with the law. Among the big names that were not expected to be nominated again in this case include a menteri besar, a chief minister and two top leaders of a party. The latest development was only known after an initial screening of the candidates list submitted by a few parties to the MACC, in preparation of the GE, was completed recently. According to the daily's reliable sources, names of hundreds of candidates were given to the MACC and when the screening was over, some big names had failed the test. Based on the results, the parties that were involved were advised not to put the problematic big names as their candidates as there would be implications. MACC deputy chief commissioner (pperation) Datuk Mohd Shukri Abdul refused to comment on the matter but merely asserted that MACC was still filtering through the lists of candidates sent by political parties. He also said political parties intending to take part in the GE are still sending names of their candidates for screening and will continue to do so even after parliament is dissolved later. |
https://theedgemalaysia.com/node/85418 | MPHB: One major step closer to demerger | English | Multi-Purpose Holdings Bhd(May 7, RM3.71) Strong buy at RM3.67 with a target price of RM4.21: Multi-Purpose Holdings Bhd (MPHB) announced yesterday that the Securities Commission Malaysia (SC), vide its letter dated May 6, 2013, had granted its approval-in-principle for the registration of the listing prospectus of MPHB Capital Bhd (MPHB Cap). To recap, the SC approved the proposed listing of MPHB Cap last December, subject to certain conditions, one of them requiring MPHB Cap to conduct an independent valuation of its material property assets and incorporate disclosures relating to the valuation and its financial effects in the listing prospectus. Later, the regulator granted MPHB Cap’s appeal to allow the relevant disclosures on the valuation of its material property assets to be incorporated into the listing prospectus for information purposes based on valuations undertaken by independent valuers engaged by the management for internal purposes, subject to: (i) the valuers updating their valuations to a more current date which must not be more than six months from the date of the listing prospectus; and (ii) the corresponding valuers’ reports are to be made available for inspection. We understand this condition led to the delay of MPHB Cap’s listing, which was initially planned for the first quarter (1Q) this year. As such, the approval-in-principle implies that the group has fulfilled all conditions imposed by the SC since late last year. For now, we maintain that MPHB Cap could be listed in late 2Q, although we do not discount the possibility of one or two months’ delay given the SC’s approval-in-principle came on May 6. We retain our strong “buy” recommendation for MPHB with an unchanged target price of RM4.21, based on our sum-of-parts valuation. MPHB remains our top pick for the gaming sector and we maintain that the group provides thematic plays to the potential domestic gaming liberalisation and capital management. — Alliance Research, May 7 This article first appeared in The Edge Financial Daily, on May 8, 2013. |
https://theedgemalaysia.com/node/66008 | Ringgit closes higher against US dollar | English | KUALA LUMPUR (Oct 10): The ringgit closed higher against the US dollar today on strong buying interest in the local unit, dealers said. The ringgit was quoted at 3.1900/1930 against the greenback from 3.1980/1020 on Wednesday. A dealer said investors' confidence in the ringgit was growing on expectations the currency would strengthen by five per cent by year-end. Against other currencies, the local unit was also traded higher. The ringgit rose against the Singapore dollar to end at 2.5485/5515 from 2.5545/5581 yesterday and soared against the yen at 3.2601/2648 from 3.2830/2881 on Wednesday. The local currency appreciated against the British pound at 5.0839/0900 from 5.1078/1149 yesterday and was higher against the euro at 4.3175/3229 from 4.3250/3313 previously. |
https://theedgemalaysia.com/node/53811 | Excess capacity to weaken steel prices | English | Steel sectorMaintain underweight: Domestic demand for steel products will continue to be fuelled by existing as well as planned infrastructure works. Based on an average growth scenario, the Malaysian Iron and Steel Industry Federation (Misif) expects steel consumption to grow by 3% in 2013 followed by a stronger 4% in 2014 to 9.1 million tonnes. On the export front, in anticipation of improving global economic outlook, we expect export demand for steel products to improve. Based on the International Monetary Fund’s outlook, global output is estimated to grow by a higher 3.6% in 2014 from 2.9% in 2013. Given the ample capacity globally as well as locally, coupled with moderate recovery in global growth, we expect steel prices to remain soft entering into 2014. Locally, domestic steel prices will continue to closely track the international prices as imports can be easily acquired should the price differential widen. As such, we maintain our view that in 2014, both steel rebar and billet prices will continue to be capped at prevailing low levels. The continuous growth in steel production will usually translate into higher demand for iron ore (the main input for steel making). The average price of iron ore fines (63.5% iron content) from China in 2013 remained elevated at about US$137 (RM444) per tonne, about 3% higher than the 2012 average price of US$132 per tonne. Given the softening prices coupled with elevated material costs, we expect steel millers’ margins to continue to be under pressure. Although we expect external demand to improve in 2014, the existing excess capacity will continue to cap any potential meaningful recovery in steel prices. Due to the elevated raw material costs, we believe millers’ operating margins will continue to be under pressure in 2014. As such, we maintain our “underweight” call on the sector. Risks to our view include a stronger than expected demand from both domestic and export markets, which is a function of the global economic recovery process as well as significant pick-up in steel prices. Across the board, we continue to watch with caution on the steel companies under our coverage. Although share prices have fallen to low levels, we do not see any potential catalysts in the near term for a rerating. For exposure to the Economic Transformation Programme theme, we prefer direct construction and infrastructure as well as water related stocks. Maintain “sell” on Ann Joo Resources Bhd (target price [TP]:RM1.10). We have a “buy” on Choo Bee Metal Industries Bhd (TP: RM1.68) and “add” on Tong Herr Resources Bhd (TP: RM2.25) on the anticipated pick-up in external demand. We also like Engtex Group Bhd (non-rated: fair value of RM2.04) on the potential capital expenditure cycle for replacement of water pipes. — Affin IB Research, Dec 17 This article first appeared in The Edge Financial Daily, on December 18, 2013. |
https://theedgemalaysia.com/node/74963 | U.S. aircraft carrier to arrive for Philippines relief in 48-72 hrs | English | WASHINGTON (Nov 12): U.S. Defense Secretary Chuck
Hagel ordered the USS George Washington aircraft carrier to head
to the Philippines to support relief efforts and it should
arrive in 48 to 72 hours, the Pentagon said on Monday,
confirming a Reuters report. A Pentagon statement said crew from the George Washington,
which carries some 5,000 sailors and more than 80 aircraft, were
being recalled early from shore leave in Hong Kong and the ship
was expected to be under way in the coming hours.
Other U.S. Navy ships would also head to the Philippines, it
said. - Reuters |
https://theedgemalaysia.com/node/46953 | Redefining the future of advertising | English | Savarimuthu looks to put his own stamp on 4As’ role in the industry Last Friday, Tony Savarimuthu, CEO of McCann Worldgroup Malaysia, took over the presidency of the 4As (Association of Accredited Advertising Agents Malaysia) from Datuk Vincent Lee, who has helmed the association for the last six years. During his tenure, Lee, who is group executive chairman of Foetus International, more than doubled the association’s membership from about 50 members in 2005. He was also instrumental in establishing the mandatory pitch fees for 4As agencies in 2005, the Malaysian Effie Awards and, in partnership with Interbrand and The Edge, Malaysia’s Most Valuable Brands awards. The council under his leadership also established the Boomerang Training Accreditation system to ensure 4As members invest in training to raise industry standards. Now, Savarimuthu, who was vice-president of the 4As throughout Lee’s tenure, is tasked with carrying on and developing the initiatives Lee set in motion as well as putting his own stamp on the association’s role in the industry. What do you hope to achieve during your term as 4As president? The well-being our members is of paramount importance. We want everyone to be financially successful and our work to be seen to be effective, and noted on the international stage. ‘Growth Through Creativity’ is going to be the main theme for the next two years. However, the big task ahead is to redefine the future of advertising in our country. Advertising agencies are the first port of call for brands and need to be hard-wired to deliver the main currency which brands trade in: creativity. Both agencies and clients need to spend more money understanding consumer movements, playing with technology, and talking and listening to millenials. I believe you’re part of a Future of Advertising taskforce?Yes, I and six other industry players — not all of them members — are part of it. It was something that we have been discussing for months and so far, we’ve completed one conference on Jan 10 titled ‘Agency 2.5: How agencies are transforming the future’ which featured Tim Williams of the Ignition Consulting Group as speaker. We are planning another on the value of creativity but we can only drive the agenda, ultimately it is up to our members to take note of the changes and transform their business. How do you view the role of the 4As and your role as its current leader?I’ve served on the [4As] council for nine years, including three terms as vice president. I’ve developed a number of programmes and worked with Lee. He’s a true blue ad man with an enormous amount of passion and drive for the business. The role of the 4As and its leaders is to set the benchmarks, and help our members contribute to the development of brands in Malaysia and be a beacon for Malaysian brands to be successful globally. We must also be an active participant on retaining and attracting creative talents to drive the service sector and building the creative economy. How can Malaysia improve its creative economy and attract talent?We can’t only look to the government, industry leaders need to encourage better remuneration to match international salary scales. We are losing top talent to more competitive markets because of this. On the government’s part, to attract creative talent, why not implement a tax benefits system for creative professionals? What about addressing the need for talent within Malaysia?There are many colleges offering programmes in the creative arts, and business courses related to marketing and advertising. The main issue we have, however, is to keep the industry top of mind with potential talent through our various programmes. We need to promote ourselves better in the media, to parents and to future talent as a source of employment which is creative, exciting, fulfilling and financially rewarding. Ultimately it is about the work. If the work is creative and people are applauding it or moved by because of its sheer emotional appeal or ingenuity — it will promote and retain talent better than anything else. What are your immediate and long-term goals? We have to keep the current programmes going, which is one reason we have expanded the council. Everyone who sits on the council is a CEO or MD and has immense experience. The long-term goal is ensure that both the strategic planning and creative credentials of our members are of a high standard. We have many world- class creative directors, some of whom have taken on regional and global responsibilities and ventured abroad. We need to build a larger pool of strategic planners. The long-term goal of the 4As is to help redefine ‘The Future of Advertising’ in our country and by doing so, ensure the prosperity of our members and the brands under their care.You brought up the Kancils, MMVB and Effies as a means of raising industry standards. Do you feel that any/all of these awards need to be further refined? How so?I think we have redefined it each year. Each of the programmes have evolved to include education and advocacy of creativity, brand value and effective advertising in all its forms though the media and member programmes. And of course the Kancil Awards which we have redefined over the year by recognising new categories, inviting a world-class jury.Will the 4As be addressing the industry’s falling profit margins? A concerted move towards performance-based compensation perhaps?Margins are a hot topic of conversation. There is definitely revenue erosion and it is a global phenomenon but the main holding groups have had both ups and downs and each has sought to redefine and transform their business by managing costs, investing in talent and new revenue areas like sponsorships, branded entertainment and content development. Currently, the association is working on performance-based remuneration guidelines. Revenue models have changed — clients like Unilever and Coca-Cola have already placed agencies on a performance-based compensation scale. We need to redefine our remuneration strategies and get paid for intellectual capital. While it is easier to charge for strategy, ultimately we need to move beyond science and structure to deliver true creativity in Malaysia. It’s been more than five years since the 4As introduced its mandatory pitch-fee system. How has it shaped the industry since? Will things continue as they are? It has definitely shaped the industry and ultimately for the better. I believe we have had more professional management of pitches since the introduction. Clients are also looking for a better fit in terms of agency selection based on their needs. Many also choose to work with local and entrepreneur-owned agencies due to the close attention given by senior practitioners who have embarked on their own but have the benefit of multinational experience. One way which clients identify partners like this is via agency immersion, rather than calling for a pitch. Agency immersion allows them to get to know the agency’s operations through interviews with agency staff and senior executives. When a pitch is called, the pitch fees inspire a need to shortlist, and in an industry where talent is short, it is costly to spend too many man hours working on pitches. Major pitches can cost an agency upwards of RM500,000 and tends to burn out agency folk! This article appeared on the Media & Advertising page, The Edge Financial Daily, Mar 31, 2011. |
https://theedgemalaysia.com/node/7488 | Nizar seeks to block route to Federal Court | English | Nizar’s application, under Article 4(3) and Article 4(4) of the Federal Constitution, seeks a court declaration that the 1997 amendments to Article 63 of the Perak constitution was null and void on grounds that the Perak state legislative assembly did not have the power to pass the amendments. Perak’s Article 63 states that constitutional questions can, on application of either party to the proceedings, be referred to the Federal Court for a ruling. The Article 63 amendments challenged by the former Perak menteri besar relates to the changing of the words "Supreme Court" to "Federal Court" in line with judicial restructuring performed in 1994. According to Nizar, "Supreme Court" in 1957 did not refer to the apex court because the then apex court was the Privy Council and that "Supreme Court" referred to the current High Court and/or the Court of Appeal. Effective June 24, 1994, the Supreme Court was renamed Federal Court and the subordinate Court of Appeal was established. Prior to 1985, the Supreme Court was the highest court of the land but its decisions could be appealed to the Privy Council in London. Nizar, in his application filed here by Messrs Leong and Tan, said the arising legal issue was whether the 1997 amendment to the Perak Constitution can confer jurisdiction to the Federal Court as the amendment was on a state law rather than a federal law. "Only parliament can confer jurisdiction to the Federal Court, not the state legislative assembly. The Federal Court does not have the jurisdiction to hear an application under Article 63 because it is seised of jurisdiction," Nizar said. Nizar, who is Pasir Panjang assemblyman and Bukit Gantang member of parliament, also said Article 63 of the Perak constitution originally conferred powers to the Council of the State, rather than the courts, to interpret constitutional provisions. Apart from Zambry, Nizar’s application on Monday also named the Malaysian and Perak governments as respondents, as per the requirements under Article 4(4) of the Federal Constitution. Nizar also requested that his application be heard prior to Zambry’s application to refer three questions on interpretations of Article 16(2) and Article 16(6) of the Perak constitution relating to the state assembly’s dissolution and the appointment of the menteri besar. The Federal Court on Tuesday will hear Zambry's application and Nizar’s objections as well as submissions by the Attorney-General's Chambers. Zambry's questions are whether Perak Ruler Sultan Azlan Shah had the right to withhold consent to the assembly's dissolution as requested by Nizar when the latter ceased to command the assembly’s majority support and whether Nizar and his excecutive council members should tender their resignations upon the Sultan's refusal to dissolve the assembly. Zambry’s third question, filed here on April 20, sought a ruling on whether the Sultan had the right to appoint Zambry as menteri besar after due inquiry that Nizar had lost majority confidence of the assembly although a vote of no-confidence had yet to be taken. Should the Federal Court answer Zambry’s questions in the affirmative, it should then declare Zambry the validly appointed Perak menteri besar, Zambry’s application stated. Nizar’s lead counsel Sulaiman Abdullah, who also acted on behalf of Speaker V Sivakumar, had previously raised similar arguments on Article 63 of the Perak constitution during the suit brought by the three Perak independent assemblymen against Sivakumar. The Federal Court then ruled that Article 63 of the Perak Constitution provides the apex court jurisdiction to hear state constitution matters, with the court later deciding that the three independents — Jamaluddin Mohd Radzi (Behrang), Mohd Osman Mohd Jailu (Changkat Jering) and Hee Yit Foong (Jelapang) were still the valid representatives of their constituencies. |
https://theedgemalaysia.com/node/58402 | RHB Research maintains market perform on Axiata, FV RM5.15 | English | KUALA LUMPUR (Dec 13): RHB Research Institute is maintaining a market perform on Axiata Group and a fair value of RM5.15. It said on Tuesday it was positive if Celcom wins the tender to build infrastructure for the country’s digital terrestrial television broadcasting (DTTB) network. The research house said this was due to the potential for recurring income from renting out the infrastructure for the DTTB network to TV broadcasters. “Capex demands on Celcom do not appear too significant. Assuming the cost of building the DTTB network infrastructure is split equally, Celcom only needs to spend an incremental capex of up to RM83 million per annum on top of its existing RM1 billion planned for 2012,” it said. On Monday, Celcom signed a teaming agreement with Broadcast Australia, its technical partner to bid for the DTTB network development. The Edge FinancialDaily said Celcom estimated the cost of building the infrastructure for the DTTB network would be RM500 million over three to five years, but the share of investment and stakeholding by Celcom and Broadcast Australia has yet to be determined. |
https://theedgemalaysia.com/node/24948 | Naza TTDI to launch properties worth RM1.7b in GDV | English | KUALA LUMPUR: Naza TTDI Sdn Bhd, the property development arm of Naza Corp Holdings Sdn Bhd, will launch several properties in the Klang Valley this year worth RM1.7 billion in gross development value (GDV). Deputy executive chairman and group managing director SM Faliq SM Nasimuddin said the property launches will begin in March with the sale of the residential components of TTDI Sentralis and TTDI Alam Impian in Shah Alam, Selangor. There will also be launches at TTDI Dualis in Equine Park, Kuala Lumpur, comprising serviced apartments, linked houses and mixed commercial development. This will be followed by other residential phases in TTDI Grove Kajang and TTDI Alam Impian throughout the year. “The property launches worth RM1.7 billion in GDV are expected to improve the company’s revenue performance. “Despite a potentially challenging year in 2014 in which higher costs of labour and materials and various property cooling measures by the government will have an impact on the property market, I believe that there will still be demand for premium and affordable properties provided that the product can meet and suit the market’s expectations,” SM Faliq said in a statement yesterday. SM Faliq, who took over the helm of Naza TTDI in February 2009, said the company expects more launches in the coming years. On the company’s RM4 billion prime development of Platinum Park in Kuala Lumpur, he said apart from the completed Menara Felda, the other two office towers of Lembaga Tabung Haji and Naza Corp Holdings Sdn Bhd are expected to be completed by the first quarter of 2014 and second quarter of 2015 respectively. The company will launch the first phase of the residential units of Platinum Park in July. The serviced apartment tower, which comprises over 500 units, has a GDV of RM452 million. In Shah Alam, the mixed commercial development of TTDI Sentralis 2 will be launched in May, beginning with the premium five-storey shop offices and followed by the residential apartments. The group has the rights to develop the iconic RM20 billion KL Metropolis in Jalan Duta under a public-private partnership initiative. This article first appeared in The Edge Financial Daily, on January 22, 2014. |
https://theedgemalaysia.com/node/16528 | KLCI caps May on a positive note | English | KUALA LUMPUR (May 31): The FBM KLCI capped the month of May on a positive note, as it advanced firmly on the final trading day of the first quarter earnings reporting season. The index gained 10.06 points for the month after it closed 5.50 points higher at 1,580.67. Losers beat gainers by 375 to 343, while 310 counters traded unchanged. Volume was 1.24 billion shares valued at RM2.90 billion. Regional markets mostly pared down their losses as European shares and the euro regained some stability although worries over Spain and its troubled banks are weighing on market sentiment, according to Reuters. The single currency and world shares are poised for their biggest monthly drops since September while the fall in oil prices in May is set to be the largest for two years as the escalation in the eurozone crisis stokes fears of slower growth, it said. At the regional markets, the Shanghai Composite Index fell 0.52% to 2,372.23; Hong Kong's Hang Seng Index shed 0.32% to 18.629.52; Japan's Nikkei 225 fell 1.05% to 8,542.73; South Korea's Kospi was down 0.08% to 1,843.47; and Singapore's Straits Times Index lost 0.41% to 2,772.54. Meanwhile, Taiwan’s Taiex gained 0.55% to 7,301.50. On Bursa Malaysia, PPB was the top gainer, rising 88 sen to RM17. Shell was up 40 sen to RM9.90; MBMR rose 29 sen to RM3.24; KLK rose 26 sen to RM22.36; Yeo Hiap Seng rose 24 sen to RM3.47; Nestlé rose 22 sen to RM53.22; MAHB rose 20 sen to RM5.80; Chin Teck rose 19 sen to RM8.90; Petronas Dagangan rose 18 sen to RM20.70; and AFG was up 16 sen to RM4.10. Main Market debutant Globaltec was the most actively-traded counter, with 145.7 million shares done. The stock fell one 1.5 to 10.5 sen. Other actives included SapuraKencana, Petronas Chemicals, Flonic, Bursa, Maxis, Bumi Armad and Naim Indah Corp. Decliners included Panasonic, Petronas Gas, F&N, Bursa, Genting Malaysia, Keck Seng, MISC, Mentiga, GAB and Takaful. |
https://theedgemalaysia.com/node/12059 | Tengku Razaleigh: BN's power sharing deal 'broken' | English | MELBOURNE: Umno veteran Tengku Razaleigh Hamzah today said Barisan Nasional's (BN) racial power sharing arrangement was "broken" and urged for a rejection of racialisation in social and political life towards a recognition of "our common humanity." In tracing Malaysia's history, Tengku Razaleigh said the power-sharing arrangement was designed as an "interim work-around" before "a more perfect union" to resolve conflicts in a country deeply divided along communal lines. The deal, he said, was once useful and effective. However, Malaysians now needed to "wake up to the fact that it no longer works." "The racial power-sharing model now practised by Barisan (Nasional) is broken. It takes more honesty than we are used to in public life to observe that this is not a temporary but a terminal crisis. "An old order is ending," Tengku Razaleigh said in a speech to the Umno Club in Melbourne, Australia today. Tengku Razaleigh said the conceived power-sharing model needed special conditions and did not work when political parties were helmed by "the ignorant and the corrupt" who enjoyed no standing in communities they claimed to represent. The formula, he added, would similarly not work if the power-sharing coalition was "overly dominated by one person and the others are there as token representatives." Tengku Razaleigh also cautioned his audience, which he called the "generation of transition", that it was not yet time to "herald a new dawn" as Malaysia was still caught between the past and the future. According to Tengku Razaleigh, while Malaysia had made some progress towards multiracial politics, the government and opposition were still largely mobilised along racial lines while electorates still vote along ethnic and religious considerations. Tengku Razaleigh said the endeavour for a "re-design" of racial relations must begin with our common humanity and the realisation that equality was fundamental to democracy, on which the Federal Constitution was based on. "Even if we might still gravitate towards racial groupings, our allegiance to these groups must never overshadow our allegiance to the Constitution and to the claims of equal dignity that it establishes firmly and permanently," he said. The Gua Musang parliamentarian reminded that while race could unite, it could also "divide and divide disastrously", urging the rejection of race as a fixed and central category of social and political life. "The politics of [race as destiny] will always divide, and the ultimate solution to intra-racial problems it leads us to is, in the end, violence. "It is easy to identify the practitioners of this kind of racial politics. They will rely on veiled threats of communal violence even as they take part in democratic politics," he said, in a copy of his speech made available to the press. Tengku Razaleigh added that political parties based on race or religion must never be allowed to do or say anything contrary to justice and equality. There must be new and more inclusive ways of mediating intra-racial conflicts based on more "open conceptions of who we are" and embracing diversity, Tengku Razaleigh said. He maintained that ethnic and racial affinities must always recognise the primacy of common citizenship as well as equal dignity. "First we are human beings who are open to one another," he said at the end of his speech. The full text of Tengku Razaleigh's speech is available here. |
https://theedgemalaysia.com/node/92621 | Ringgit opens lower against US dollar | English | KUALA LUMPUR, (July 19): The ringgit opened lower against the US dollar today with strong demand for the greenback following the improved economic outlook in the United States, dealers said. However, the local currency strengthened against the yen with the declining of Japanese currency ahead of the upcoming Japanese election. The ringgit fell to 3.2020/2050 to a dollar from 3.1925/1955 Thursday and weakened against the Singapore dollar to 2.5217/5248 from 2.5199/5243 yesterday but it rose against the yen to 3.1775/1821 from 3.1864/1901 yesterday. The domestic currency also weakened against the British pound to 4.8693/8751 from 4.8520/8575 yesterday and dipped against the euro to 4.1930/1979 from 4.1889/1931 Thursday. |
https://theedgemalaysia.com/node/63475 | Esso Malaysia 4Q earnings fall 71.5% to RM34.58m | English | KUALA LUMPUR (Feb 20): Esso Malaysia Bhd’s earnings fell 71.5% to RM34.58 million in the fourth quarter ended Dec 31, 2011 from RM121.51 million a year ago. It said on Monday its revenue was 16.5% higher at RM2.75 billion compared with RM2.359 billion a year ago. Earnings per share were 12.80 sen compared with 45 sen. For the financial year ended Dec 31, 2011, it reported a 42.9% decline in earnings to RM153.35 million from RM268.58 million in FY10. Revenue, however, increased 33.6% to RM11.26 billion from RM8.42 billion. “The lower profit for the fourth quarter and for the full year of 2011 compared to the same periods in 2010 was a result of lower operating margins as higher crude prices were not fully offset by the increase in product prices. The increased crude and product prices, however, generated inventory holding gains totaling RM108 million for the full year 2011,” Esso Malaysia said. |
https://theedgemalaysia.com/node/30596 | N2N expects 30% contribution from abroad in FY10 | English | KUALA LUMPUR: Online stockbroking and trading solutions provider N2N Connect Bhd is expecting its cross-border business to make up at least 30% of its revenue this year from 15% currently. Its managing director Andrew Tiang said N2N is working closely with local brokers as well as brokers from other countries to grow its cross-border business contribution from 15% at the moment. "We are working closely with local partners and hope a few brokers will sign up to achieve the target," he said after the company's annual general meeting (AGM) on Monday, May 24. Tiang said that N2N is currently in talks with five new clients for its e-broking trading business and hopes to sign up at least 10 new clients this year. "We are hoping to widen our current markets in Singapore, Vietnam and Indonesia. We are also talking to a few parties in Europe, which is a new market for us," he said, adding that it also looking out for possible merger and acquisition opportunities in Singapore and Indonesia. For the first quarter (1Q) ended March 31, 2010, N2N's net loss narrowed to RM485,000 from RM4.21 million a year earlier. Its revenue increased marginally to RM3.92 million from RM3.81 million, while loss per share was 0.16 sen versus 1.41 sen. Tiang said that the loss reflected in the account is due to depreciation and the company is currently profitable without taking depreciation into account. "The accounts reflect the provision for depreciation. We believe the business is growing in a positive direction and should be able to offset the depreciation provision going forward," he said. Depreciation for 1QFY10 amounted to RM1.98 million compared to RM2.38 million a year earlier. "If you take away the provisions that we made, you will see that we are making profit," he said. Tiong added that 10% of its revenue would be spent on research and development in order to develop new services and maintain its competitiveness. At the AGM, shareholders also passed N2N's proposal to purchase up to 10% of its issued and paid-up capital that would enable N2N to utilise its financial resources more efficiently. "This will allow management the option to execute a buyback when the right time is presented," said Tiong. Incorporated in 2000, N2N provides applications in accessing global multi-instrument markets information, tools and analysis. Its products and services range from online trading portals, hosting and managing network services to wealth and risk management solutions and m-commerce solutions and sale of mobile devices. Its clients include CIMB Securities Bhd, Kenanga Securities Sdn Bhd, HwangDBS Sdn Bhd and AmSecurities Sdn Bhd. N2N closed at 0.275 sen on Monday with 226,000 shares traded. |
https://theedgemalaysia.com/node/19605 | Frankly Speaking | English | Stay healthy, stay publicThe debate over healthcare reform that is currently raging in the US is indeed highly relevant to Malaysia. This is because since the 1980s, we have chosen to entrust the private sector with an increasingly important role in the provision of health services, while the US — that ultimate example of free enterprise — has been grappling with the inadequacies of its healthcare system for many decades now. It is sobering that some 46 million Americans out of 300 million are not covered by health insurance, and a further 25 million cannot afford adequate coverage. This gives the US the dubious distinction of being the only developed economy that does not provide universal healthcare for its citizens. In Malaysia, private medical facilities have grown exponentially, with hospital beds increasing 10-fold from 1980 to 2003, taking their share of hospital beds in the country from 3.9%-5.8% to 23.4%-26.7% in the same period. Drawn by the opportunities in private healthcare, about 300 doctors and 50 specialists leave the public service annually. Doctors in private practice now account for some 55% of medical practitioners, but cater for just 25% of the population who pay for the quicker access out of their own pockets, through personal insurance or via their employers’ group policies. What is worse, many experienced specialists spend their time treating relatively minor conditions for an affluent clientele. This shows the kind of inefficiencies that blind faith in market solutions can bring about. A constant refrain from public health officials is that escalating healthcare costs are leaving them with no choice but to draw on private capital for life support. However, that view should be more closely scrutinised. The escalation in the procurement costs of pharmaceuticals that was seen after the Government Medical Store was privatised is a case in point. That said, public and private health facilities can play interdependent roles in the healthcare system. The nub lies in ensuring that a well-nourished private health industry does not leave an anaemic public health system behind. Selling at a lossPetra Perdana Bhd last Thursday sold 10.5 million shares, or a 5.4% stake, in Petra Energy Bhd, at RM1.53 per share, raising RM16.07 million cash. In a statement to Bursa Malaysia, the company says it will utilise the cash to pare down borrowings. It is normal for a company to dispose of investments to pare down debts, but in Petra Perdana’s case, the share disposal resulted in a loss of about RM500,000, which translates to 3.1% of the proceeds, according to the company. The question is, why sell the stake at a loss to raise an amount that seems insignificant for paring down the company’s net total borrowings of RM310.27 million as at June 30? It does not seem like Petra Perdana is facing a cash crunch. Based on the company’s balance sheet as at June 30, it was sitting on RM203.78 million in cash versus RM133.79 million in short-term borrowings. (Long-term debt amounted to RM380.26 million.) Meanwhile, its net current assets amounted to RM441.93 million as at June 30, indicating that it has plenty of short-term liquidity at its disposal. Interestingly, two days after the share disposal, on Sept 11, the company announced that it had received a temporary letter of guarantee from a commercial bank for a facility of RM40 million, which matures on Nov 30. This makes one wonder whether the disposal of Petra Energy shares was necessary. Other than incurring a loss of RM500,000 from proceeds of RM16.1 million, the disposal price of RM1.53 was also at a 12% discount to Petra Energy’s average price of about RM1.74 over the last two weeks. The shares were sold via placement by its broker. After the sale, Petra Perdana has reduced its shareholding in Petra Energy to 106.5 million shares, or a 54.62% stake. It is not clear whether it will trim its interest further, but if it does, perhaps it will have a better reason for it. All eyes on PKFZIt is difficult to understand why one more task force is needed to get to the bottom of the Port Klang Free Zone (PKFZ) saga when it is as clear as daylight that the project is the most expensive fiasco involving public funds to date, as well as a blatant example of the breakdown of governance and accountability in public bodies. No doubt the new task force, headed by Chief Secretary to the Government Tan Sri Mohd Sidek Hassan, has the mandate to address the troubling issues that led to the project’s huge cost, which could reach RM12.5 billion. However, the violations unearthed by the PricewaterhouseCoopers audit are substantive enough for the Port Klang Authority (PKA), Transport Ministry, Malaysian Anti-Corruption Commission and Attorney-General’s Chambers to pursue legal and administrative remedies to protect the public interest. It is quite apparent that establishing committees and task forces is a well-tested method of managing the fallout from damaging scandals, such as the PKFZ debacle. Malaysians can remember an endless list of such commissions that had been set up after every major crisis that threatened to erode the public image of the authorities. It is also “convenient” that the new task force serves to limit the scope for Transport Minister and MCA president Datuk Seri Ong Tee Keat and PKA chairman Datuk Lee Hwa Beng to make politically damaging moves against unfriendly figures in the saga. The public will be keenly observing how the PKFZ scandal is finally resolved. No matter how many twists appear along the road to a full accounting of the fiasco, they will not likely forget the gravity of the transgressions that occurred. This article appeared in The Edge Malaysia, Issue 772, Sep 14-20, 2009. |
https://theedgemalaysia.com/node/87358 | #Market Open* KLCI extends gains, set to resume rally | English |
KUALA LUMPUR (May 29): The FBM KLCI extended its gains on
Wednesday and looked set to resume its rally this week. At 9.05am, the local index added 3.25 points to 1,779.41. Gainers led losers by 234 to 35, while 134 counters traded. Volume
was 116.6 million shares valued at RM65.52 million. The early gainers included BAT, Petronas Dagangan, KLK,
Naim, Oriental, Aeon, Genting, Tan Chong and Panasonic. M & A Securities Research in a daily strategy note Wednesday
said volume traded rose to 2.58 billion from 1.62 billion and value traded
increased to RM2.75 billion from RM2.24 billion on Tuesday. The research house said that there was buying support
throughout the whole day yesterday as the regional markets had stabilised,
adding that the FBM KLCI looked to set to resume its rally this week. “We remind investors that our Fair Value for the
FBM KLCI in 2013 is 1,838 points and the current index still has some way to go
to reach our recommended level. Therefore, we advise investors to ride the
rally.
“We have also removed all discounts to the high
Beta sectors – finance, construction and property and upgrade to Overweight on
the Finance and Construction sectors while we are upgrading to Neutral for the
Property sector,’ it said.
Meanwhile,
Asian shares were steady and the dollar remained firm on
Wednesday as U.S. stocks rallied to record highs overnight on signs of
resilience in the U.S. economy and expectations of continued monetary policy
support, according to Reuters. The
Dow Jones industrial average hit another record high on Tuesday as data showed
U.S. home prices accelerated by the most in nearly seven years in March while
consumer confidence picked up in May to its highest in more than five years, it
said. |
https://theedgemalaysia.com/node/27458 | OSK Research: FBM KLCI testing key level | English | KUALA LUMPUR: OSK Research said the FBM KLCI is heading towards the 50-day MAV line and the 100-day MAV line, which are the two crucial levels for the market. Whether the market can reposition itself back above the 100-day MAV line, especially the 50-day MAV line, will have a major impact on the market’s nearer term outlook. In its technical outlook on Friday, Feb 19, it said that after the 50-day MAV line was violated in January, it would not expect the key index to bounce back above this level anytime soon. "It was the first and most critical breakdown experienced by the market since the rally started in March last year. Normally, when such a major breakdown occurs, it would eventually lead to a major shift in trend. OSK Research said however, on its first trading day on Wednesday after the long holiday break, the FBM KLCI surprisingly broke above the short-term downtrend line and even once surpassed the 100-day MAV line during the session. This breakout caught the research house completely off-guard. Nevertheless, it still thinks it is too early to change its view towards the nearer term outlook although the key index has taken out the short-term downtrend. "We are still worried that the breakdown from the longer term trend lines, namely the 50-day MAV line and the 100-day MAV line, may signal a major trend shift. In the meantime, we maintain our bearish view towards the near-term outlook," it said. OSK Research said the immediate resistance is still seen at the 100-day MAV line, which now lies at the 1,260-level, followed by the 50-day MAV line, which is currently at the 1,272-level. To the downside, an immediate support lies at the recent-low of 1,224. |
https://theedgemalaysia.com/node/54943 | Axiata steady despite weaker outlook concerns | English | KUALA LUMPUR: Shares of Axiata Group Bhd dipped at midday on Monday, Sept 19, despite rising concerns from analysts that earnings before interest, tax, depreciation and amortisation (EBITDA) margins could fall over the next few years due to intense competition. At midday, it was down one sen to RM4.78. There were 2.65 million shares done at prices ranging from RM4.77 to RM4.82. The FBM KLCI fell 12.48 points to 1,418.45. Turnover was 323.64 million shares done valued at RM550.88 million. There were 164 gainers, 333 losers and 272 stocks unchanged. At RM4.82, it is 5.85% off its 2011 high of RM5.12 on July 28. Hwang DBS Vickers said EBITDA margins could fall over the next few years due to intense competition in voice, especially with increasing voice/SMS to data substitution in Malaysia and Indonesia. “Rising data income is insufficient to offset this as voice remains a major revenue component. Data only accounts for 35-40% of group revenue. Also, current overall data margins are lower than for voice,” it said. HDBSVR reduced the sum-of-parts derived target price to RM5.10 from RM5.50. The research house said it expected revenue to grow only 4% in FY11F, below its 10% key performance target, on increasing voice/SMS to data substitution and a stronger ringgit. “Axiata is the cheapest stock among peers, but offers the lowest dividend yield and upside is likely limited as management had guided that there won’t be any dramatic increase. We also believe Axiata may try to conserve cash as it did not rule out M&As in the future. At 14x FY12F PE now, the stock is trading close to its historical average,” it said. |
https://theedgemalaysia.com/node/47587 | Further consolidation in the semiconductor industry? | English | Semiconductor sectorMaintain neutral: Texas Instruments (TI) will acquire National Semiconductor Corp (NS), a semiconductor producer that specialises in analogue devices, for US$6.5 billion (RM19.7 billion) in cash. This follows its second acquisition within a year after purchasing two fabrication plants in Japan from Spansion Inc. While TI is already the world’s biggest analogue player (15% of global market share), the acquisition could further boost its market share substantially with NS’ 3%. This implies that TI could control at least 18% of the global analogue market. In addition, this may also elevate TI to the third position among the global semiconductor players after Intel Corp and Samsung Electronics. The acquisition could also see a change in the competitive landscape of the analogue market. Currently, TI’s closest competitors, Analog Devices Inc and Maxim, each holds 6% market share, less than half of TI’s implied market share. Therefore, we believe this could lead to further M&A as other major players seek to consolidate market share. Given that NS is currently not a customer of Unisem (M) Bhd and Malaysian Pacific Industries Bhd (MPI), we believe the takeover could translate into higher volume loading for the two packaging players from TI, which is an existing customer. Note that Unisem and MPI’s current product range includes analogue and power management chips — QFN and X-3 MLP (transient voltage suppression technology). Similarly, this could encourage Unisem and MPI to diversify into the higher-margin industrial segment as TI could gain a stronger foothold in the industrial segment given that NS specialises in the industrial market with 46% of total revenue in FY10 (against 14% of total revenue for TI). Note that Unisem and MPI produce around 12% to 15% of their chips for the industrial segment.Risks to our view include: (i) weaker-than-expected economic recovery; (ii) strengthening of ringgit against the US dollar, and (iii) higher raw material cost. While we highlight that the consolidation of TI and NS could be positive for the semiconductor industry, in particular for third-party packaging and assembly houses, we are keeping our forecasts for Unisem and MPI until the effects of the takeover filter into the market. We reiterate our “neutral” call on the sector with a positive bias, as we believe the semiconductor sector remains on track for stronger growth, underpinned by the pick-up in demand from the US and European Union in addition to the robust demand from Asia-Pacific. Our pick for the sector is Unisem (“outperform”; fair value, RM2.65). — RHB Research, April 12 This article appeared in The Edge Financial Daily, April 13, 2011. |
https://theedgemalaysia.com/node/42317 | Lion Industries waives RM11m interest due from Likom Computer | English | KUALA LUMPUR: Lion Industries Corporation Bhd has accepted RM26.19 million as full settlement from Likom Computer System Sdn Bhd for rental owing. Lion Industries said on Wednesday, Dec 29 that it had agreed to waive the interest of RM11.05 million as Likom had ceased operations in 2004. Likom owed rental and interest amounting to RM37.25 million for the lease of a factory building for its operations in Melaka Technology Park. Lion Industries said the rental due from Likom has been long outstanding and since Likom had ceased operations in 2004, it was unlikely that Likom would be able to make full payments of the outstanding rental plus interest in the short term. “It is common practice for corporations in seeking to recover debts from defunct companies to waive certain portions of the interest outstanding. The proposed waiver is a reasonable amicable solution as Likom will be paying the entire rental due in full and a substantial portion of the interests,” it said. It added the group would use the monies received for its working capital requirements and for repayment of borrowing. In July 1997, Lion Industries and Likom had signed a lease agreement and the lease of the building expired in February 2005. However, the lease was not renewed as Likom had ceased its operations in 2004. Likom had not been able to pay its outstanding rental thereby incurring interest calculated at 8% per annum. Lion Industries said in consideration of the waiver of the RM11.06 million in interest, Likom had paid in full the outstanding principal rental amount of RM11.94 million on Dec 29. “The balance interest amounting to RM14.25 million would be paid in nine equal monthly instalments (amounting to RM1.58 million) commencing January 2011 and ending September 2011,” it said. Lion Industries said on a proforma basis, the proposed waiver was not expected to have a material impact on the group’s earnings for the financial year ending June 30, 2011 as the amount of RM11.06 million had been provided for in the financial year ended June 30, 2010. It said the directors who did not consider themselves independent over the proposed waiver were Tan Sri Cheng Yong Kim, who is a substantial shareholder of the company and had substantial interest in Amble Bond Sdn Bhd, the holding company of Likom. The other directors were Cheng Yong Liang, the brother of Tan Sri Cheng Yong Kim, who had a substantial interest in Amble Bond; Datuk Kamaruddin @ Abas Nordin who is an executive director of Lion Courts Sdn Bhd (a unit of Lion Industries); and Tan Sri Cheng Heng Jem, who is a major shareholder of the company. “The audit committee of Lion Industries, having considered all relevant aspects of the proposed waiver, said the waiver was in the best interest of Lion Industries, fair, reasonable and on normal commercial terms, and not detrimental to the interest of minority shareholders. |
https://theedgemalaysia.com/node/69714 | Philippines struggles to keep typhoon aid, donations graft-free | English | (21/11/13 18:08:12) MANILA (Nov 21): As millions of dollars pour in for more than four million left homeless by a typhoon in the central Philippines, authorities are grappling with a familiar problem — how to stop fraudulent claims and prevent greedy politicians taking advantage. Typhoon Haiyan smashed through the country on Nov 8, laying waste to just about everything in its path, and killing more than 4,000 people. Nearly 13 billion pesos ($298 million) in cash and relief goods have so far been pledged by countries and donor groups, to an overwhelmed government that was criticised for its slow response in the first few days after disaster struck. The World Bank and the Asian Development Bank have committed a total of more than $1 billion in grants and emergency loans, to support reconstruction and relief efforts. Add to that the millions of pesos raised by the private sector, with Filipinos working across the globe gathering friends for fund-raising activities, and you have a lucrative target for scammers and unscrupulous public officials in one of the most corrupt countries in East Asia. The Philippines comes in at 105 out of 176 countries in Transparency International's corruption perceptions index, with the cleanest country, New Zealand, at number one. "It is a big issue in the international aid community, especially insofar as international NGOs are concerned," said Budget Secretary Florencio Abad, when asked about bogus aid agencies and scams. Tricare, a health care programme providing insurance to U.S. military personnel and retirees worldwide, had received claims for damaged homes from two million people from the typhoon-devastated city of Tacloban, when the population, before the storm struck, was only 220,000, said Andrea Colley-Lopez, a programme manager at International SOS Assistance Inc, which provides support for groups, including Tricare. "Everyone on high alert" "The Philippines is always going to be the bane of our existence," she said, adding medical service providers had also submitted fraudulent claims for damaged hospitals, complicating insurance groups' responses to legitimate typhoon victims. Philippine disaster officials this week, warned donor agencies and the public about two individuals — including one using the surname of President Benigno Aquino — who have been soliciting aid for typhoon victims, on behalf of the defence minister. "We would like to warn the public to be vigilant and not fall to this modus operandi by unscrupulous individuals," the Department of National Defence said in a statement. A scandal over lawmakers' misuse of "pork barrel" funds, has become the biggest crisis of Aquino's three-year rule, tainting his image as a corruption fighter and undermining his ability to push economic reforms. This week, Manila launched an online portal called FAiTH to provide information on donations, in answer to concerns that aid money might once again end up lining pockets of local officials. "The (pork barrel) scam has put everyone on high alert," said Vincent Lazatin, executive director at the Transparency and Accountability Network. Social Welfare Secretary Corazon Soliman said, fraud went hand in hand with natural disasters, as was the case with Tropical Storm Washi in 2011, Typhoon Bopha last year and an earthquake in central Bohol province last month. "There are people who take advantage of the good heart of individuals, especially those who only want to give small amounts, but are embarrassed to go to foundations," she said. "For me, every cent counts, so they should give to those organisations they know." |
https://theedgemalaysia.com/node/62114 | #Tong Kooi Ong blogs* Can politicians honestly live on low salaries? | English | RECENTLY, there has been much debate about the salary increments for the Selangor Mentri Besar, speaker, state executive councillors and assemblymen. Most agree that some salary increment is necessary. After all, the current salaries are incredibly low. You cannot expect your elected representatives to be honest and dedicated if they are not even earning enough to survive and provide for their families with a decent livelihood. But there are many who argue over the large quantum of the salary increase. Worse, some even suggest elected representatives should do “national duty” and be paid pittance to serve the people. Thus, the question really boils down to what is the “right” salary. We have already noted that despite a doubling of the Selangor Mentri Besar’s salary to RM30,000 a month, or RM360,000 per year, he would still earn far less than a CEO of a listed company, who typically earns RM1 million to RM5 million annually, many even over RM10 million. Let us take the example of a federal cabinet minister, who officially earns about RM15,000 a month – or RM14,907 to be exact. The cost of living for members of parliament and state assemblymen are harder to simplify due to the varying size of constituencies and where they live. The attached table shows that despite living a frugal and simple life – like many squeezed middle income urbanites today -- they will still be grossly out of pocket.
A cabinet minister earning RM15,000 per month will receive about RM12,311 net of taxes. On the expenses side, we have included a simple frugal lifestyle centred around a family with a house wife and two school going children, a Toyota Camry family car costing RM150,000 (for the wife and family to use, apart from the official car for the minister) and a suburban home costing RM900,000. Much of the monthly expenses will go towards servicing loans for the home and car, both assumed to be taken with about 85% margin of financing. Monthly instalments for the two will cost RM7,425. Other major monthly expenses include food (RM4,500), education (RM4,000) and maid (RM1,200). Using these assumptions, there is a monthly deficit of RM10,067, or RM120,806 per year. Obviously, the table is neither comprehensive nor completely accurate for a minister. But I believe it represents a conservative picture of a typical urban middle class family faced with the rising cost of living and asset prices. As senior politicians with responsibilities for running the country, surely the ministers – by extension all elected representatives -- deserve to be presentable. They must have a clear mind to do what they are entrusted to do. They must be financially comfortable, such that they can enjoy a comfortable, albeit frugal lifestyle totally funded from their salaries, and not from other sources. Some argue that we could opt for rich politicians who do not need to be paid. One example cited by a local newspaper was Michael Bloomberg, the mayor of New York, who is reportedly entitled to a US$225,000 annual salary but waives it for a token US$1. There are a few major holes in this argument. Firstly, don't we want the best person to serve the country, including those who are not wealthy? To attract those who are not already wealthy, we must pay a salary sufficient for their livelihood, even if they want to sacrifice for the good of society. Secondly, in certain countries where the rich are elected to positions, like Bloomberg in New York, he will never be able to benefit personally from the position. Are we ready for the same? Will we have a way to make sure that tycoons who become ministers and PM's do not abuse their positions to promote their own business interests?Are not the business elites already too powerful, making decisions as king makers, often at the expense of the public? If so, then what we need are honest, dedicated and capable people to become our elected representatives, to serve the people and the country. And in order to do so, surely, we must provide them a decent livelihood for their families. So, let us be realistic and bipartisan, and not be hypocritical or delusionary. We should not set government salaries so unrealistically low that the honest cannot even survive and therefore do not see a future in serving the people.
Tong Kooi Ong is executive chairman of The Edge Media Group. Feedback is welcomed at www.tongkooiong.com |
https://theedgemalaysia.com/node/81559 | Kuantan Flour director acquires more shares | English | KUALA LUMPUR: Kuantan Flour Mills Bhd’s (KFM) substantial shareholder Dennis Tow Jun Fye has continuously acquired shares in the company from the open market since his appointment as a non-independent, non-executive director on May 7, 2012. In an announcement yesterday, KFM told Bursa Malaysia that Tow had acquired 108,100 shares on the same day from the open market at 33.5 sen per share. Including the latest purchase, Tow has added one million shares, or some 1.4%, in KFM this month alone. He now holds a total of 5.3 million shares representing an 8.1% stake in KFM, having substantially increased his interest from about 3.93 million shares or 6.03% at the beginning of the year. KFM’s share price has been on a downward trend, falling from 50 sen since last May to 33 sen yesterday, giving it a market capitalisation of RM21.2 million. The company saw 158,100 shares transacted yesterday. Tow is currently the second largest shareholder in KFM, behind Neo Kim Hock who holds 13.6 million shares or 20.84% in the company. Tow’s holding also exceeds that of another individual Tan Boon Kiat, who has 4.2 million shares or 6.4% in KFM. Neo and Tan are not directors of KFM. The flour producer registered a net loss of RM3.36 million for the nine months ended Dec 31, 2012 compared with a wider net loss of RM5.67 million a year earlier. Revenue stood at RM37.2 million, down from RM41.1 million a year ago. This article first appeared in The Edge Financial Daily, on March 26, 2013. |
https://theedgemalaysia.com/node/33987 | Inflation up 1.7% y-o-y in June | English | KUALA LUMPUR: Malaysia’s inflation rose for the fourth consecutive month in June this year, spurred mainly by costlier food and non-alcoholic beverages, besides higher transport expenses, and utility bills. The country’s inflation as measured by the consumer price index (CPI) rose by an annual pace of 1.7% in June, translating into a cumulative 1.4% rise in the CPI during the first half of this year, according to a statement by the Department of Statistics yesterday. June CPI numbers climbed 0.2% from May this year when inflation climbed by an annual pace of 1.6%. In June, the food and non-alcoholic beverages component accounted for 54.1% of the CPI increase while the transport portion contributed 11.7%. The collective portion of the housing, water, electricity, gas and fuel component constituted 11.1%. Analysts foresee the country’s inflation rate to continue rising in the coming months as consumer price numbers are compared to low-base figures from a year earlier. Inter-Pacific Research Sdn Bhd said local inflation would exhibit a cost-push nature in line with the gradual removal of goverment subsidies, which means consumers would have to pay more for essential items like fuel and sugar. The research house also highlighted that inflation would be spurred by demand-pull environment as indicated by stronger liquidity against a backdrop of improving economic performance. “But we expect the upside to inflation will be muted by the stronger ringgit and positive terms of trade,” said Inter-Pacific which anticipated inflation to rise 1.8% and 2.5% in 2010 and 2011, respectively. This compares with the 0.6% rise in 2009. Against the backdrop of rising consumer prices, it said there was a 60% probability that Bank Negara Malaysia (BNM) would initiate another interest rate hike which implied that the overnight policy rate (OPR) might hit 3% by year-end. Inter-Pacific said a potential 25- basis point (bps) hike would be driven by strong liquidity growth despite the central bank having raised OPR by a collective 75 bps between March and July this year. One bp is equivalent to one hundredth of a percentage point or 0.01%. “Should BNM raise the OPR, we are of the opinion the hike is not hawkish. Room for another 25bps hike remains glaring,” Inter-Pacific said. In July 2008, Malaysia’s CPI rose to a high of 8.5% in annual terms as crude oil rates surged to record US$147.27 (RM472.24) a barrel. The country’s inflation sank into negative territory between June and November 2009 before registering positive numbers again beginning last December. Malaysian equities gained amid a strengthening ringgit ahead of the latest CPI update. FBM KLCI rose as much as 7.29 points or 0.5% to a high of 1,344.96 at 10.17am yesterday before closing lower at 1,341.02. The ringgit was traded at its strongest point against the US dollar at 3.2081 as at 8.04am. Investors usually park their money in countries with higher interest rates to generate better returns from their funds. At the same time, investors also place their money in a country deemed to have positive long-term fundamentals, but foreign funds can also come in due to the potential of quick gains which denote speculative elements in the local market. Anticipation that the ringgit will strengthen will spur overseas investors to acquire local assets such as stocks and real estate, hence, the appreciation of the ringgit due to demand for the currency. This, essentially, translates into double gain for foreign investors when they sell their assets as they will be able to reap both the currency exchange gains and capital appreciation of their assets. This article appeared in The Edge Financial Daily, July 22, 2010. |
https://theedgemalaysia.com/node/36454 | Diffusing difficult people through BaZi profiling | English | IN last week’s article, I wrote about diagnosing “difficultness” in individuals within your organisation or business universe, and how to ascertain the manner and nature in which a person’s difficult nature will manifest. Realising a person is difficult and appreciating how they are going to be difficult in their dealings with you is very useful, and for most people, it’s a solution that they need. How do I deal with this difficult person’s “difficultness”? In the modern application of metaphysics, especially BaZi, we are interested in solutions and not just diagnosis or hypothesis. Typically the solution for dealing with any one of the five types of extreme variants lies in either diffusing their difficult nature appropriately or making more effective use of their difficultness. However, it’s also important to appreciate that the nature of the solution depends on whether the person you have to deal with is in a superior position, that is someone who holds the purse strings or is more powerful or influential such as a customer or shareholder, or in an inferior position, that is a member of staff or a supplier. Dealing with the Extreme Wealth Profile: Don’t take anything personally. Ironically, Extreme Wealth types are very good at drawing a clear line between work and personal matters. So do the same when dealing with them. Don’t fight their need to lead forcefully. Let them take the lead, but make sure they understand that leadership is followed by the words “by example”. Give them a mandate, and let them run with it. Or put them in charge of people who need to be whipped into shape or a department that needs micro-managing. Dealing with the Extreme Output Profile: You need to be prepared for debate, and being prepared to defend your point of view for a prolonged period. Come to discussions well prepared as that’s the only way to shut them down. Remember, they only bow to someone who knows more than they do or who they respect because the person is clearly an authority on the matter. Avoid group sessions or group meetings, and go for one-on-one casual chats, if you plan to shoot down their ideas. This lets them save face, and it keeps them on your side. Dealing with the Extreme Resource Profile: Always have an action plan, an agenda, and control discussions or meetings to stop them from wandering or branching off into long, rambling discussions. Force responsibility, commitment and decisions through legal documents, emails, contracts, agendas, time-lines, deadlines and paper trails. Don’t expect them to be organised, so you will need to be doubly organised (or hire them a good assistant). Be prepared for a long trek in getting a decision. If you want to cut short the process, do their homework for them so that they don’t have to waste time on “research”. Dealing with the Extreme Influence Profile: Whatever you do, don’t force their hand. Indeed, it is best not to expect too much from such a person. As they are often respectful of the rules to a fault, you can get your way as long as you can cite line, chapter and verse on why something should be done a certain way. It is also important not to upset the apple cart with these individuals in the form of last-minute changes or alterations to the gameplan or they will prove to be very difficult to handle, and will perform even more poorly. Dealing with Extreme Companion Profile: It’s critical to enforce responsibility, set limits, demand accountability, and most importantly, say no. Always deal with the person in private as they are often emboldened when in a group. Take everything they say with a pinch of salt and always ask for a commitment in writing. Focus on the facts, and make sure they focus on the facts. Be cautious of their attempts to use emotional arguments rather than logical ones and walk away when they attempt to invoke emotions or sentimentality rather than the cold hard facts. Do not give in to their tendencies to bring their mood swings to the workplace. Make it clear that such behaviour is unacceptable. To find your BaZi Profile, go to www.theqiadvantage.com and try out our BaZi Profiler. Joey Yap is an expert in Chinese astrology services and audits, classical feng shui, BaZi, Mian Xiang and other Chinese metaphysics subjects. He can be reached via Facebook: www.facebook.com/JoeyYapFB. This article appeared in The Edge Financial Daily, September 6 2010. |
https://theedgemalaysia.com/node/3249 | Analysts cautiously positive on banking | English | Maybank Investment Bank (Maybank IB), which has an underweight on the sector, said the February statistics still appeared strong and healthy. OSK Research, which has a neutral outlook on the industry, said asset quality remained intact while the net non-performing loans (NPL) ratio remained flat at 2.2%. Both research houses noted that loan growth continued to rise despite the current downturn in the global economy. “Banking loans (net of repayments) expanded to RM729.3 million, up 10.9% year-on-year (y-o-y), driven by household loans, which offset small month-on-month (m-o-m) contraction in business loans,” said Maybank IB. OSK noted that the growth in household loans was mainly driven by loans for the purchase of residential properties and personal loans, which grew by 10.3% and 16.9% m-o-m respectively. Maybank IB said forward indicators such as loan applications and approvals were slightly positive, with both showing growth after five consecutive months of declines. “Loan applications grew at 4.7% m-o-m and 4.8% y-o-y, with business loan applications growing by 11.5% y-o-y while household loan applications slipped 1.5% y-o-y,” said Maybank IB. However, according to BNM figures, while loan approvals were up by 7.9% m-o-m, for y-o-y it was down by 15.9% due to a drop in business segment loan approvals. OSK was concerned, however, when it came to loans approved and disbursed for the small medium enterprise segment. “The leading indicators showed a significant decline in banks’ risk appetite for the SME sector, with loan disbursements declining 15.6% y-o-y. This reaffirms our view that the SME segment carries a significant upside risk in credit defaults,” it said. Both research houses however were positive on the news that the NPLs of the sector had remained status quo. “The banking system’s asset quality remains intact with no signs of NPLs picking up. The three-month net NPL ratio remained stable with net NPLs at 2.2% and the loan loss coverage ratio sustained at 87.5%,” said OSK. It also pointed out that the banking system was still flush with liquidity as the loans to deposit ratio remained relatively stable at 73.6% compared with January 2009’s reported figure of 73.4%. “The banking capitalisation remained strong, with the risk-weighted capital ratio and core capital ratio strengthening further to 13% and 11.1% respectively versus Jan 2009’s 12.6% and 10.7% respectively,” said OSK. However, both research houses pointed out that the forthcoming months would show the effect of the global financial crisis on Malaysia’s banks. “Our concerns remain on rising NPLs, and equity cash calls to boost core capital, although not needed now. The main risk is a more severe and protracted economic downturn, with spikes in unemployment, and asset deflation” said Maybank IB. “Our forecasts assume a 2% to 3% system loans growth in 2009, with absolute NPLs to expand by 50% y-o-y by end-2009; hence, a 10.1% contraction in combined net profit growth,” it said. For the banks in its universe, Maybank IB has a hold on Public Bank Bhd, RHB Capital Bhd and AMMB Holdings Bhd. It has a sell and a fully-valued recommendation on Bumiputra-Commerce Holdings Bhd and EON Capital Bhd. OSK is likewise wary over the prospects of the banking sector, stating: “We remain cautious over the potential lag impact from the uptick in NPLs in the SME and consumer hire-purchase loan segments. As credit cost accelerates, we expect banks’ share price performance to re-test their recent lows.” This article appeared in The Edge Financial Daily, April 2, 2009. |
https://theedgemalaysia.com/node/39745 | CI Holdings 1Q net profit up 43% to RM11.77m | English | KUALA LUMPUR: CI Holdings Bhd’s earnings jumped 43% to RM11.77 million in the first quarter ended Sept 30, 2010 compared with RM8.22 million a year ago, boosted by higher revenue as its beverages division recorded strong growth. The company said on Wednesday, Nov 3 that revenue rose 24% to RM153.38 million from RM123.78 million. Earnings per share were 8.29 sen versus 5.79 sen. CI Holdings said the higher revenue was underpinned by the “beverages division's continued growth in its non-carbonated portfolio, strong growth in isotonic beverages, successful Hari Raya festive selling campaigns, successful promotional campaigns and an aggressive distribution drive”. The company added its historic base of carbonated brands also contributed positively. The higher profit after tax was mainly attributable to the continued revenue growth and prudent cost management of both the beverages and tap-ware and sanitary ware divisions. |
https://theedgemalaysia.com/node/22966 | #Update* Naza TTDI proposal was good, says Mustapa | English | KUALA LUMPUR: Malaysia has a need for exhibition space and Naza TTDI Sdn Bhd's proposal was too good to turn down. Explaining the deal in Dewan Rakyat today, International Trade and Industry Minister Datuk Mustapa Mohamed said that Naza TTDI had proposed to the government to build a new trade exhibition centre for Malaysia External Trade Development Corporation (Matrade) in March 2007. "The proposal was accepted by the cabinet in December 2007," he said. "When the deal was proposed then, the land area to be exchanged with Naza TTDI was valued at RM197 million." Mustapa said the country was in dire need of a big trade exhibition centre and the new Matrade centre would have 90,000 sq m of exhibition space upon completion. "This will double our exhibition area in the Klang Valley," Mustapa told reporters at parliament lobby. According to him, the Kuala Lumpur Convention Centre has 9,710 sq m of exhibition area, Putra World Trade Centre 23,504 sq m, Matrade (current) 13,000 sq m and the Malaysia Agro Exposition Park Serdang 10,000 sq m. "This is small compared to our neighbours. We also need to be competitive against other countries in the region," he added. He said the Singapore Expo had 100,000 sq m of exhibition space, Suntec Singapore 24,000 sq m while Marina Bay Sands (when completed in 2010) would have 120,000 sq m. Hong Kong's Convention and Exhibition Centre had 312,000 sq m of exhibition space while the Asiaworld Expo had 77,000 sq m, he added. In Thailand, the Bangkok International Trade and Exhibition Centre has 50,395 sq m, Queen Sirkit National Convention Centre 35,000 sq m and Impact Arena 140,000 sq m. The minister said that with the new centre, more efforts would be made to market Malaysia as a trade exhibition destination. Despite the aspersions cast by the opposition on the Naza Group unit as a developer, the government said it was confident and satisfied that the property developer was capable of completing the job. "The company has undertaken many other development projects such as the Taman Tun Dr Ismail development and the Laman Seri Business Park in Shah Alam," said Mustapa. When asked if the government would help Naza TTDI to raise funds for the development, Mustapa said: "We are not Port Klang Free Zone." The minister said all the funds would be be internally generated by Naza TTDI and the government would not be guaranteeing any bonds issued by the company. |
https://theedgemalaysia.com/node/84959 | Sugar subsidy rationalisation has no significant impact in Nestle Malaysia, says MD | English | KUALA LUMPUR (Nov 1): Nestle Malaysia said the recent sugar subsidy rationalisation will have no significant impact to the company and that price increase of its products will be a last resort. Its Managing Director and Region Head Malaysia/Singapore Alois Hofbauer said the company have not been receiving any sugar subsidy since last year. "Price increase will be a last resort because we are aware that our products are consumed by millions everyday. "Of course, there are moments when prices have to go up, but we try to avoid them because our products have to be at their most competitive and at affordable price," Hofbauer told a press conference after signing a collaborative agreement with Sime Darby Bhd President and Group Chief Executive Officer Tan Sri Mohd Bakke Salleh. The signing ceremony was witnesses by Sabah Tourism, Culture and Environment Minister Datuk Seri Masidi Manjun, Nestle Malaysia Chairman Tan Sri Syed Zainol Anwar Jamalullail and Governing Council Member of Sime Darby Foundation Caroline Christine Russell. Hofbauer said that to further mitigate the impact of the sugar subsidy removal, the company has been working on reducing the sugar level in its products without compromising on the taste. Following the agreement, Nestle Malaysia and Sime Darby Foundation will jointly undertake "Project RiLeaf", an initiative to reforest critical riparian reserves along the Kinabatangan River in Sabah. Mohd Bakke, who is also the governing council member of Sime Darby Foundation, said the company would co-fund the project for two years from next year, with a total contribution of RM2 million. "Part of the programme is to engage the independent smallholders, subsidise and assist them to eventually attain the Certified Sustainable Palm Oil. "Their involvement will help protect the dynamic biodiversity of the Kinabatangan area, including the inland wildlife corridors and degraded sanctuary areas," he added. |
https://theedgemalaysia.com/node/24328 | #Update* DRB-Hicom shares fall up to 2% on Chevrolet news | English | KUALA LUMPUR: Shares of DRB-Hicom Bhd fell as much as 2% yesterday after the company said it would no longer have the right to import and distribute Chevrolet vehicles in Malaysia beginning next year. The stock declined as much as two sen to an intra-day low of 99 sen at 9.01am before rising to a high of RM1.03 at 10.42am. It ended the day at RM1.02, for a gain of one sen with 189,000 units done. The stock has gained 40.69% so far this year compared with the FBM KLCI's 44.98% advance. On Tuesday, DRB-Hicom said the firm and US-based General Motors Co (GM) had agreed to terminate their colloboration for the import and distribution of Chevrolet vehicles in Malaysia. The over two years joint venture (JV) since August 2007 saw the creation of a jointly owned company Hicom Chevrolet Sdn Bhd where GM and DRB-Hicom own 51% and 49% respectively. Today, Bernama quoted DRB-Hicom group director of automotive Datuk Nik Hamdam Nik Hassan as saying it and GM had discontinued their collaboration because DRB-Hicom had difficulty agreeing on a certain aspect of the business model. According to Nik Hamdam, despite the termination of the JV, DRB-Hicom would continue supplying Chevrolet vehicle components until GM appointed a new local distributor for the automobile brand. "The termination will not have a significant impact on DRB-Hicom's performance as sales contribution from Chevrolet was small at about 1,000-1,300 units per annum compared with its total volume of close to 100,000 vehicles annually," he told a media briefing in Shah Alam. Nik Hamdam said although the parties had now agreed to amicably part ways effective Jan 1, DRB-Hicom would continue to supply the spare parts of Chevrolet vehicles until the appointment of a new distributor by GM. |
https://theedgemalaysia.com/node/30495 | Markets tumble as Wall Street slumps | English | Asian stock markets fell sharply on Friday, May 21 following an overnight slump on Wall Street. On Thursday, the Dow Jones Industrial Average index suffered its biggest single day point drop since February 2009, plunging 376.4 points or 3.6% to 10,068. The slump on Wall Street reflects growing concerns over Europe's debt crisis and the possibility it may cause a contagion effect and affect the ongoing global economic recovery. There are growing concerns whether the EU’s bailout plan can limit the damage caused by Greece's debt problems. Investors were also unnerved by weaker reports on the labour market and a 0.1% drop in a gauge of leading economic indicators. They contradicted the recent spate of economic reports which started to show more sustainable signs of recovery in the US. The latest weekly new claims for unemployment benefits in the US rose by 25,000 to 471,000, the largest increase in three months, and above expectations of a drop to 440,000. US financial stocks were also affected by prospect of further bank regulations and reform that could affect bank earnings. Investors’ mood was still clearly one of great caution – and this is likely to continue for some time as long as the external outlook remains hazy and uncertainties persist. Shares on Bursa Malaysia closed lower on Friday, but closed well off their intra-day lows. The FBM KLCI ended 18.9 points to 1,285.3. Market breadth was negative with declining stocks beating advancing ones by a 5-to-1 margin on volume of 850 million shares. Actively traded stocks include Talam, AIM, CIMB, Unisem, KNM, SAAG, Berjaya Corp and Sime Darby. Major gainers include Panamy, Wijaya, Measat and Puncak Niaga. Losers include Tanjong plc, BAT, KL Kepong and CIMB. |
https://theedgemalaysia.com/node/41281 | My say: Currency wars, monetary policy and emerging markets | English | There has been much talk of currency wars lately. Brazil’s finance minister recently alluded to an impending currency war. Mark Mobius, CEO of Templeton Emerging Markets, warned of a global depression if currency controls, trade wars, and trade restrictions took hold. Others have pointed to the 1930s and the “beggar-thy-neighbour” competitive devaluations that aggravated the Great Depression. The International Monetary Fund (IMF) recently warned of the dangers of using exchange rates to solve domestic problems. The US blamed China, then implicitly devalued its own currency by committing to a second round of quantitative easing (QE2) — large-scale purchases of government bonds, which reduces longer-term interest rates and causes a weaker currency. And almost everybody jumped on Japan when it intervened in exchange markets in September to offset yen appreciation. Is the world going to hell in a handbasket? Let me offer one man’s opinion. The recent episodes offer some interesting twists in political economy. First, trade wars and trade restrictions are indeed disastrous for the world trading system and must be strenuously resisted. But the so-called currency wars are just expansionary monetary policy, or countries trying to jump-start slumping, deflationary economies by expanding their money supplies. In today’s world of generally free capital mobility, monetary policy is equivalent to exchange rate policy. When the US Federal Reserve (Fed) does QE2 or buys domestic government bonds, it increases the supply of dollars in the market. Under free capital mobility, a greater supply of dollars usually leads to a weaker dollar, as excess dollars can be used to purchase foreign assets. The weakening of the currency is what makes monetary policy equivalent to exchange rate policy. But foreign assets are not all that excess dollars can purchase. Excess dollars can also be used to buy many other assets like equities, corporate bonds and so on, even goods and commodities. That’s why stock and gold prices rose when the Fed hinted at QE2. And that’s what expansionary monetary policy is supposed to do, besides lowering interest rates and currency values. When Japan intervened in foreign exchange markets to buy incoming dollars to offset yen appreciation, it too was undertaking expansionary monetary policy. Although Japan intervened to buy dollar bonds (the dollars purchased are next converted into dollar bonds), not domestic bonds, the end result is still supplying the market with more domestic currency, the yen. And again, a greater supply of yen tends to lead to a weaker yen, thus offsetting the pressure to appreciate. Whether the central bank buys foreign bonds or domestic bonds to expand, the money supply is largely irrelevant (in econ speak, industrial country bonds are relatively close substitutes, that is, similar). The only difference with foreign bond purchase is that the effect on currency values is more direct. But the final outcome is the same — expansion of the money supply and a tendency for weakening of the domestic currency. Therefore, it was absurd for the press to condemn Japan for expanding its money supply, but not the Fed for hinting at doing essentially the same thing — although recently, there has been increasing popular recognition of the policy equivalence, and the Fed has come under criticism for the weakening dollar. Notwithstanding the policy equivalence, it is not helpful to sensationalise monetary policy as mere attempts to weaken one’s currency to “steal” demand from abroad. Expansionary monetary policy is more than exchange rate policy in that it tends to affect all asset prices and spending on goods, stimulating both domestic and external demand. For countries facing slumping, deflationary economies, expansionary monetary policy is the correct policy. Rather than sensationalise the issue, the more appropriate inquiry should be the impact on the rest of the world from the QE2 taken by the deflationary advanced economies. To wrap up, Japan has since shrewdly announced that it intends to undertake more regular QE as necessary — instead of the more “radioactive” exchange interventions. QEs are not new. In 2009, the UK did it (purchases of domestic government bonds) plunging the pound, followed by Sweden (purchases of foreign exchange and domestic corporate bonds), the US (government bonds), and arguably even the European Central Bank (ECB) (government bonds) at the height of the Greek crisis. But this impending QE2 appears somehow to have set off more fireworks. What about ‘beggar thy neighbour’ and the 1930s?Barry Eichengreen and Jeffrey Sachs have shown in “Exchange Rates and Economic Recovery in the 1930s” (Journal of Economic History, December 1985) that countries that left the gold standard, devalued their currencies, and expanded their money supplies, recovered faster in the 1930s. The countries that stuck to the gold standard, which constrained the scope for monetary policy and the ability to devalue, suffered more economically. Instead of looser monetary policies, these countries resorted to protectionist measures like tariffs, quotas, and other trade restrictions, which further hampered their recovery. Eichengreen and Sachs concluded that if all the slumping countries had left the gold standard and undertaken competitive devaluations, nobody would have been able to devalue against any other but the resulting monetary expansions in each country would have boosted economic recovery faster. In the deflationary 1930s, a so-called “currency war” would have been an economic stimulant, the right policy, not a problem. And, a coordinated monetary expansion (rather than sequential easing) would have been best as it would have also reduced exchange rate volatility. The situation is similar today. The advanced economies — the US, Japan, the eurozone, and the UK — are mired in deflationary slumps and painfully slow recoveries as they de-leverage from excessive debt. A “currency war” among them may just be what the doctor ordered, preferably via a coordinated monetary expansion to reduce exchange volatility. The difficult question then is: What are the consequences for the rest of the world, which may not be facing deflation? In particular, the emerging market economies are doing fairly well and projected to do well going forward. Here may be where the real currency strains reside. There are two possible sources of such strain — one, among the advanced economies themselves, if one or some of them should refuse to participate in QE; and the other, among the emerging markets, via the devaluation shocks emanating from the advanced economy QEs — the underlying basis of the Brazilian minister’s complaints. A third source of strain frequently lumped into this debate is the ongoing US bashing of China on exchange issues. This dispute is somewhat related but not truly part of the larger one above, which involves deflationary economies’ need for QE and the policy’s disruptive impact on the rest of the world. The US-China dispute far predated the financial crisis that set off the deflationary crisis, and was already well in play in 2006 when both the US and Chinese economies were booming. This dispute resembled more the US-Japan dispute of a few decades past; but because it is part of the currency war conversation, we will also touch on it. Possible currency strains in the advanced economies and emerging marketsAmong advanced country central banks, the ECB has typically been more cautious than others about monetary expansion — for fear of stoking inflation — and as such may not readily participate in QE2. In that event, QE by the US, Japan, and the UK will create pressure on the euro to appreciate. This strain is already evident in Germany’s recent criticism of the Fed’s QE2. As the events play out, it is uncertain how long the ECB can hold out, particularly if the euro should appreciate significantly and further aggravate problems in the weaker euro economies. In the end, the ECB could capitulate to take pressure off the euro, as it did at the height of the Greek crisis. The emerging markets (EM) will experience the advanced country devaluations as a huge, negative, external shock. They are in the position of those 1930s economies that stuck to the gold standard. They have two choices. They could participate in the competitive devaluations by expanding their own money supplies. But this would only be optimal if their economies were also mired in deflation. As noted, EMs are performing significantly better than the advanced economies, and huge capital flows are headed their way. Any attempt to undertake monetary expansion to offset appreciation thus risks a loss of monetary control, inflation, or asset bubbles. Alternatively, they can allow their exchange rates to appreciate. The risk here is that trade is a very large component of EM economies, which are highly open. For instance, exports and imports together are only 24% of US GDP in 2008, but 57% of China’s GDP, 92% of South Korea’s, 169% of Malaysia’s, and over 340% of Hong Kong and Singapore’s GDPs. Significant appreciations could substantially destabilise their economies. EMs are thus left with two difficult choices; they must trade off the risks of over-appreciation against the risks of excessive monetary expansions — depending on their individual economic circumstance. However, pressure will mount on EMs to allow capital inflows to appreciate fully their currencies — in the name of free exchange markets and support for the advanced economies. They should not fall for that argument. Capital inflows are not all the same; hot money flows are not foreign direct investment flows. And neither are all prices the same; exchange rates as prices are more like stock prices, driven by sudden sentiments and notorious for overshooting. EMs should utilise the full panoply of instruments available to them, including certain limits on capital inflows and sterilisations to limit monetary expansions — again in line with the particular circumstances of their economies. Recently, Singapore chose to allow a significant appreciation of its currency, but Brazil, Thailand, and South Korea have implemented some restrictions on capital inflows. A new albeit complicated suggestion from the IMF is a coordinated appreciation in the context of an international agreement. International cooperation should always be considered but international agreements must be accompanied by significantly greater representation for emerging markets at international institutions. Before the US-China dispute, we may wish to consider the appropriateness of US (and other advanced economy) policies (QE) that may negatively impact emerging markets and the rest of the world. Some commentators (for example Wall Street Journal) have criticised the Fed for being hell-bent to print as many dollars as it takes to inflate the US economy, and implying that the rest of the world is on its own to deal with the collateral currency turmoil as they see fit. The Fed’s attitude is actually consistent with the history of American economic policy-making; and reminds us of the famous remark by Treasury Secretary John Connolly to Europeans in the 1970s that the greenback “is our currency, but your problem”. Indeed, there is a modern day equivalent: Regarding a senior European policy-maker’s view that the Fed’s QE2 was “irresponsible” for making US exports more competitive at other’s expense, left-wing columnist Paul Krugman, snidely objected that the European was in effect telling the US: “How dare you act to protect your economy from deflation and double-digit unemployment? By doing so, you make our own inappropriate tight-money policy even more destructive.” A reasonable view is that sovereign nations have the right to determine their own economic policies. Reasonable people can disagree on the appropriateness of certain policies but a nation cannot allow its freedom to make economic policy decisions to be usurped by other nations. It is vitally a question of economic freedom and national sovereignty. US bashing of ChinaAs noted, China-bashing is really not part of the larger issue discussed above but has been lumped with it, so we will consider it briefly. Recently, the US House of Representatives passed a bill threatening trade sanctions against partners that maintain “undervalued” currencies (read: China) — effectively threatening the start of a trade war against a country whose 2008 per capita income was less than El Salvador’s. I covered the US-China exchange dispute in greater detail in my CenPRIS Working Paper 126. China’s earlier fixed exchange rate and now managed float regimes reflect its choice of monetary policy. At heart then, the issue is a question of national sovereignty and economic freedom. While, as noted, we agree with the US defence of the Fed’s monetary policies on national interests/sovereignty grounds, it is rather unseemly for the US to deny the same rights to another nation but instead demand sanctimoniously that China abandons its own sovereignty over monetary policy, which is the basis of its exchange rate policy. And to what end? To protect US special interests (certain manufacturers and unions) at the expense of American consumers, including the poorer Americans, not to mention the working poor in China. Let’s assess some numbers. The US’ trade deficit with China in 2009 was US$227 billion or 1.6% of US GDP. And that somehow makes China its greatest economic villain, inflicting all manner of harm upon US jobs and economy? Consider that the US trade deficit with its two Nafta neighbors (Canada and Mexico) in 2009 was US$148 billion or 1.1% of US GDP; and with the world as a whole, was US$503 billion or 3.6% of GDP. Does that mean those countries are also nefariously raining all manner of harm upon US jobs and economy? If not, why the obsession with China? Let’s see what the US wishes to dictate. The US Treasury has reportedly wanted a 20% yuan appreciation immediately. What would that do to China’s exporters? China’s exports to the US are priced in world markets in US dollars, and cheap, labour-intensive, manufactured goods are mostly a low margin business. A 20% appreciation of the yuan means a sudden 20% jump in costs. It is hard to imagine many exporters/businesses surviving such a shock. China fixed its exchange rate to the dollar in 1993. If it were changing the rate constantly to under-price competitors, one might make a case for manipulation. But it kept the rate constant through 2005 and its success had to have come from improvements in product quality and efficiency, not exchange rate manipulation. China is in the same situation as the other emerging market economies. As the US pursues QE2, China risks a loss of monetary control if it fixes the yuan-dollar rate, and a loss of competitiveness if its currency should over-appreciate. Only China can make this trade-off, on its own terms and at its own pace. To cave in to bashing is not a viable strategy. For the US, continued heavy-handed bashing of a yet economically poor manufacturing competitor can only come at a heavy public relations price among the many countries seeking to climb the development ladder. ConclusionWe have argued that monetary policy is both equivalent to exchange rate policy and more than exchange rate policy. It is equivalent because interventions in foreign exchange markets to affect exchange rates and domestic money supplies, and interventions in domestic bond markets to affect domestic money supplies and exchange rates, are equivalent policies. It is more because monetary policy will also tend to affect other domestic asset values and general spending on goods. For that reason, expansionary monetary policies (QE) are appropriate policies for many deflationary advanced economies to pursue, and should not be reduced to mere nefarious attempts to weaken currency values. It is also a country’s sovereign right to pursue policies deemed appropriate for its economy, and pointless for the rest of the world to whine and complain about it. What’s important for the rest of the world is to anticipate QE’s effects, assess their options, and implement policies appropriate for their economies — while keeping other options open on international policy coordination given appropriate representation. In the just concluded G20 meeting in Seoul, it is almost sweet irony that China has turned the tables on the US. With the growing popular recognition of monetary/exchange policy equivalence, China (along with Germany and others) was able to criticise effectively US exchange rate policy via US monetary policy — a direct challenge to US bashing of China’s exchange rate and monetary policy. If the US arrogates to itself the right to bash another’s exchange rate and monetary policy, it justly deserves the bashing of its own monetary and exchange rate policy by other countries. Dr Lim Ewe Ghee, a graduate of Yale University and the University of California, Davis, is a senior research fellow at the Centre for Policy Research and International Studies (CenPRIS), Universiti Sains Malaysia. He was previously a senior economist at the IMF. This article appeared in Forum page of The Edge Malaysia, Issue 833, Nov 22-28, 2010 |
https://theedgemalaysia.com/node/65448 | Projects of conscience | English | IN my previous article of June 11 Shared values, history and conservation, I mentioned a forum organised by George Town World Heritage Inc and Think City Sdn Bhd on the subject "George Town World Heritage Site — Are we on the right track?" The event attracted a wide range of people, particularly residents and users with a stake in the site. George Town World Heritage Inc, created by the Penang government, is responsible for the management, monitoring and promotion of the George Town World Heritage Site. A special project vehicle established and wholly owned by Khazanah Nasional Bhd, Think City is tasked with implementing and managing the George Town Grants Programme. The programme's objective is to transform George Town into a culturally vibrant and sustainable city through projects that are catalytic, encourage partnership, developmental, inclusive and sustainable. It also encourages projects that are creative and innovative, particularly with regards to solving urban problems. The programme is now into its second year and has supported over 100 projects. A forum participant started the ball rolling by highlighting how there are now countless boutique and budget hotels springing up everywhere in the site and that the commercial imperative is all-consuming. This is driving out long-standing tenants and traditional businesses, thus endangering George Town's outstanding universal values exemplified by the site's living, intangible culture. One inner city gentleman, whom I know only as Chandra, interjected to say there is one shining exception. He gave an account of how my father, Datuk Loh Hoot Yeang, had sold in a collective arrangement a property he owned on Market Street in Little India to the 10 existing tenants at substantially below the market price. He added that Loh would not sell the property to any one single person. To keep the peace, it was either to all or no-one. Chandra remembers Loh as a humble man who treated rich and poor alike and who would always have time for him as a young man. He was grateful that the price for his family's shop was affordable at a time when properties in Little India were fetching the highest rentals and sale prices in Penang. I well remember my father's contention that the Indian tenants had been there since after World War Two and had been paying him rent consistently all those years. He recognised that they had spent their own money to maintain and upgrade what had originally been temporary, single-storey, timber and zinc sheds at the time he had built them. The story behind the 10 terrace stalls is that very soon after the war, my father had set up a contracting company called LO Lee & Co with two friends called Ong and Lee. Their first job was to clear and salvage what they could of the highly decorative, Euro-Classical-Moorish Eclectic St Xavier's Institution building on Farquhar Street that had been bombed by the Allies. The Market Street site was also a bombed-out site. The company had obtained permission from the city council to erect temporary stalls on it and up till today the company pays an annual fee to the Majlis Perbandaran Pulau Pinang for a "Perjanjian Bangunan Sementara" or a temporary building agreement. "The timber used in the construction of Market Street was salvaged from St Xavier's. It was all solid wood and seasoned to last a lifetime," my father would acclaim, as the raconteur in him recounted his days as a budding contractor inspired by the school's motto "Labor Omni Vincit" or "Labour Conquers All", interspersed with tales of authoritarian Irish Christian Brothers and his sneaking off to play football on Renong Ground (now part of Dewan Sri Pinang) after my grandfather had locked the doors of their house in Green Hall. Back to the forum subject mentioned in the opening paragraph. Has listing opened the door to solving urban problems and embedding better site management through the implementation of the Heritage Management Plan (which was a prerequisite of inscription), or has it merely created more opportunities for those with money? I am of the view that more emphasis should be placed on the idea of collective management, for ultimately the protection of George Town's shared values is one huge project of conscience. Everyone involved in the process, especially those in positions of leadership, should start out with this belief. Above everything else, there must be a single management entity with the mandate and power to manage the site from all aspects. Presently, this situation does not exist. It is still status quo. Each government agency performs its traditional duties and as a composite of functions, the city continues to operate in a municipal sense. There are many soldiers but they are not marching to a single drumbeat. These are the sub-managers, but where is the CEO who instills the idea that if George Town is to survive in a sustainable fashion, every single player must have a conscience about delivering the promise of good management practice and care? Today, when it comes to management, it is a waiting game. The draft Special Area Plan for the site is supposed to be the ghost behind the George Town Heritage Management Plan. Unfortunately, the wrong vehicle has been chosen. The Penang Structure Plan and the MPPP Zoning Plan, two key planning documents that govern spatial development and manage space, embody a promise to deliver a clean environment, integrated planning, good public transport, healthy living spaces, no traffic jams, affordable housing, social equity and other feel good conditions. Ironically, the opposite effect has been created. Instead in its place we have development and contextual disparities and there are now many fires of discontent burning. Meanwhile, in the inner city, illegal and unsanitary hawker centres operate with impunity and keep a whole city block awake with loud music from "flower-garlanded" singers. Noisy restaurant exhausts blow their pungent smells into neighbouring residences. Illegal swiftlet houses grow in numbers. Rowdy pubs open in once quiet housing zones showcasing the occasional drunken fight in true Bollywood style. Paper ideas do not translate into good management and delivery. They do not have a soul or a conscience. The state must recognise that we have a dire problem on our hands and a wholesale review of planning policies is urgently needed to put out the fires.Assoc Prof Laurence Loh, an architect by profession, has spent the past 26 years protecting, conserving, managing and sustaining the cultural heritage of Malaysia. He has garnered various Unesco awards for his work, the best-known of which is the restoration of the Cheong Fatt Tze Mansion in Penang. Loh is also deputy president of Badan Warisan Malaysia. This story appeared in The Edge Financial Daily on July 9, 2012. |
https://theedgemalaysia.com/node/64599 | PSC proposes temporary licence for Lynas plant | English | KUALA LUMPUR: The Parliamentary Select Committee (PSC) on the Lynas rare earth processing plant in Gebeng, Kuantan concluded that the facility is not a nuclear plant and proposed a temporary operating licence (TOL) be issued to it. This was among the six findings of the PSC report on the Lynas Advanced Materials Plant (Lamp) tabled in the Dewan Rakyat yesterday, Bernama reported. The report also contained 31 recommendations. The PSC report said: “The committee proposes that a Class A TOL be issued so that the Lamp project can process limited lanthanide concentrates in stages as well as be supervised directly by enforcement agencies.” However, the committee stressed that Lamp needs to adhere to all regular licensing requirements and additional conditions imposed in the TOL. The data obtained from the temporary operations would provide the basis for licence approval. The committee said that based on scientific facts, legal provisions and information obtained from experts, it was satisfied that the LAMP project is a chemical factory that produces rare earth and is not a nuclear plant nor is it involved in mining. “The committee is satisfied that the Lamp project has complied with all necessary standards and legal requirements in Malaysia based on international standard practice. “In fact, some of the legal provisions and standards imposed on LAMP are more stringent compared to international standards,” the report said. The Lynas project is a project of Lynas Malaysia Sdn Bhd that aims to process raw lanthanide concentrates imported from Mount Weld in Western Australia to produce rare earth oxides and carbonates at the Gebeng Industrial Area in Kuantan, Pahang. On March 20, the Dewan Rakyat passed a proposal to set up a parliamentary committee to study issues of public concern as well as the safety standard of the project. However, only five Barisan Nasional members and one independent MP took part after the opposition declined to sit in the committee. The opposition Pakatan Rakyat coalition said the panel was set up to whitewash the dangers posed by the plant. Last month, the Save Malaysia, Stop Lynas (SMSL) coalition walked out of a PSC public hearing because they would not be granted legal immunity for expressing their views. Its move had followed the filing of a suit in April by Lynas Corp of Sydney, Australia, and Lynas Malaysia against SMSL and its two directors, Tan Bun Teet and Lim Sow Teow, over an article published on its blogsite. Yesterday, the High Court here postponed to July 19 the inter partes injunction hearing by Lynas Corp and Lynas Malaysia to restrain SMSL from further publishing the article. SMSL’s counsel Datuk Bastian Pius Vendargon told reporters Lynas had served its affidavit pertaining to the injunction hearing to the defendants on Monday. He said the defendants needed time to file its affidavit in reply. He also said both parties had submitted written submissions on the injunction to the court. Online news site Malaysiakini reported yesterday the SMSL group staged a protest outside Parliament, demanding the right to speak in the Dewan Rakyat. SMSL head Tan said this was necessary because the House could provide immunity for them to speak out against Lynas, the news site reported. Tan also criticised the PSC report, pointing out that it was a foregone conclusion as the panel chief led by Higher Education Minister Mohamed Khaled Nordin had described Lamp as safe even before the committee concluded its work. Among the issues raised by opponents to the plant are the safety of radiation exposure, environment, health and residue management. The PSC said the Lamp project had also provided a control system as required under national legislations and international standards to ensure public safety and health as well as environmental protection for the plant to operate temporarily. The report also said lanthanide concentrates used by Lynas factory are not a radioactive material but a naturally occurring radioactive material (NORM). He said the residue produced from Lamp is also not radioactive waste but residue containing NORM. “As the product contains elements of natural radioactivity such as uranium and torium, it is not controlled in many countries but the material is controlled in Malaysia by the Atomic Energy Licensing Board (AELB),” he said. According to the committee, the Lynas factory is not a major accident hazard installation. On the management of residues, the committee proposed the residue produced by Lamp be sent out of Malaysia if a study on a recycling plant could not identify a location. The committee also proposed that the premises licence should only be issued by the Kuantan Municipal Council to Lynas after it had met all licensing approvals and issuance conditions of the AELB. The committee also proposed that a monitoring committee be set up comprising related agencies, non-governmental organisations and authorised experts to monitor Lamp’s operation continuously. The committee held three public hearings in May and meetings with foreign rare earth experts before preparing the report. This article appeared in The Edge Financial Daily on June 20, 2012. |
https://theedgemalaysia.com/node/82969 | #GE13* Husam all ready to face Ku Nan in Putrajaya | English | KUALA LUMPUR (April 10): PAS's Putrajaya candidate Datuk Husam Musa has set his mind on facing BN incumbent Datuk Seri Tengku Adnan Tengku Mansor in the fight for the parliamentary seat of the country's administrative capital. Calling the Umno bigwig, a "big general" in the war of GE13, Husam said that he believed Tengku Adnan will not leave his seat merely because of the former's decision to contest there. "Tengku Adnan has invested a lot of time, energy and attention in the area. I believe that the 'big general' will not chicken out. If he does not stand in Putrajaya, people will say that he is a coward for not contesting there," said the Kelantan executive council member. Many analysts have written off Husam's chances of winning the seat as Putrajaya is a BN stronghold. In the 2008 general election, Tengku Adnan won the seat with a whopping 2,734 majority. He received 4,308 votes against PAS candidate Mohamad Noor bin Mohamad's 1,304 votes. Husam, whose candidature was announced formally yesterday, said that he was aware of the mammoth task ahead. He reiterated this today saying that: "They (outsiders) don't have to tell me that it is an uphill task. I am saying it myself that it is an uphill task. But it is not impossible," he said with a smile. |
https://theedgemalaysia.com/node/34049 | Bank Rakyat’s 1HFY10 pre-tax profit up 24% | English | KUALA LUMPUR: Bank Rakyat posted a profit before tax and zakat of RM828.6 million for the first half ended June 30, 2010 (1HFY10), an increase of 24% from RM668.5 million a year earlier. Its managing director Datuk Kamaruzaman Che Mat said the improved profit was due to increased financing income in line with the strong growth in financial balance in all business segments of the bank. The bank’s gross income rose 18.5% to RM2.24 billion from RM1.89 billion, while income from financing rose by 21% to RM1.95 billion from RM1.61 billion, it said in a statement yesterday. Its net income after profit distribution to depositors also grew by 19.4% to RM1.65 billion, despite an increase in overnight policy rate by 0.25% in May. The bank had recorded a fee-based income of RM55.3 million, which was a 33.1% increase from RM41.5 million a year earlier, and of which 85.4% was contributed from income on wasiat, commission on takaful and ATM service fee. Meanwhile, its total assets grew by 19.2% to RM55.81 billion from RM46.84 billion, with return on asset remaining at 3.1%. Net financing balance rose 23.9% to RM42.27 billion from RM34.11 billion, while its consumer net financing balance rose 21.7% to RM38.42 billion. Kamaruzaman said consumer financing was the major segment of Bank Rakyat’s business, which accounted for 89.1% of the bank’s total financing in the first-half year. Total deposits grew by 13.5% to RM44.2 billion from RM38.93 billion while liquidity position remained strong at 25% versus 24.5% previously. The bank’s impaired assets under the individual impairment provision accounted for 2.2% of total financing. Meanwhile, the collective impairment provision remained above the 1.5% minimum level as recommended by Bank Negara Malaysia. Shareholders’ fund rose by 16.3% to RM5.92 billion at the end of June 2010 compared with RM5.09 billion a year earlier, while risk weighted capital ratio (RWCR) under the Basel I classification stood at 13.23% and the core capital ratio (CCR) at 11.29%. This article appeared in The Edge Financial Daily, July 23, 2010. |
https://theedgemalaysia.com/node/86527 | Foreign coaches get the hook as Australia fails on world stage | English | SYDNEY: Three foreign coaches have paid the price for Australian humiliation on the international sporting stage this year and the search for a new soccer coach is taking place against a backdrop of hostility to “mercenaries” from overseas. In a miserable 2013 tempered only by golfer Adam Scott’s triumph at the US Masters, a proud sporting nation has endured the continuing travails of their once all-conquering cricket team and the defeat of the Wallabies rugby team at the hands of the British and Irish Lions. The latest humiliation came when the Socceroos, fresh from qualifying unconvincingly for next year’s World Cup finals, were handed back-to-back 6-0 thrashings in friendlies against former world champions Brazil and France. The blame for the latter defeat in Paris last weekend was apportioned less than two hours after the final whistle with German coach Holger Osieck summarily dismissed by Football Federation Australia (FFA) chief David Gallop. Rugby coach Robbie “Dingo” Deans was given a full three days after a third test hammering in July that decided the Lions series before the New Zealander “stood down” to end 5½ years in charge of the Wallabies. The main event of the cricket year had not even been reached when South African Micky Arthur was the victim of a shock pre-emptive strike, his short reign curtailed after a 4-0 defeat in India but before the Ashes series against England. Both were the first foreigners to be put in charge of the respective teams and both were succeeded by Australians. Osieck might yet be replaced by another coach from beyond Australia’s shores but public sentiment, as represented by the media, is resolutely behind giving a local man a chance. “His demise highlights the folly of using foreign coaches to lead Australian national teams over long periods,” columnist Andrew Webster wrote in the Sydney Morning Herald yesterday. “Osieck and his predecessor, Pim Verbeek, are technocrats who never embraced the unique Australian manner in which we play on the international stage: punching above our weight, against nations with far larger player numbers to choose from. “Foreign coaches don’t bleed like homegrown ones. They are merely fulfilling a contract.” The examples of the Australian cricket and rugby union teams suggest, though, that taking the coaching job back “in-country” is no quick-fix for a struggling team. Arthur’s replacement Darren Lehmann oversaw a 3-0 defeat in England and his team face an uphill struggle in the return series, which starts in Brisbane on Nov 21. Ewen McKenzie was handed the Wallabies job ahead of World Cup-winning South African Jake White but has lost two tests each to New Zealand and the Springboks, only tasting victory in his first six matches against Argentina. Melbourne Victory coach Ange Postecoglou, one of the top local candidates for the Socceroos job, initially urged caution over the groundswell of support for an “Australian only” approach to recruitment. “The only thing I would recommend strongly is to appoint the best person for the job,” he told reporters on Sunday. “I don’t like this whole ‘Let’s go local as opposed to overseas’. It’s our national team, whoever the best person for the job is, that’s who should get it.” Yesterday, though, after two days in which he firmed as media favourite for the post, he conceded that an Australian would have more invested in the job. “There’s no doubt, in any code and in any country, if you’re coaching the national team and you come from that country, there’s always that little extra bit you’ll put into it,” he told SEN radio. “An Australian has to live in this country once he’s finished that job. I think there’s some sense in saying that if there’s an Australian who’s ready for it, you know, then that would be the way to go.” Despite saying that recruiting an Australian coach would “make sense”, Gallop said the FFA had already put out feelers to Guus Hiddick, the Dutchman who led Australia to the last 16 at the 2006 World Cup. Whoever takes the job, though, will inherit a very different squad from that Hiddink took over in 2005, a generation of players who blossomed into Australia’s finest. Given that the current teams just managed to squeak past the likes of Oman, Iraq and Jordan to get to Brazil, there is a case for suggesting that, whether led by Australian or foreigner, expectations for the Socceroos might be a little bit too high. — Reuters This article first appeared in The Edge Financial Daily, on October 16, 2013. |
https://theedgemalaysia.com/node/87042 | PKR congress – ‘not a wake but a war room’ | English | The high hopes of the Pakatan Rakyat coalition that it would take control of Parliament in the 13th general election have not borne fruit, but leaders of PKR, which is the second largest of the three-member coalition with 30 seats, are very much in the fighting mood as the party heads for its 9th congress tomorrow. PKR leaders who spoke to fz.com were very much intent on harnessing the groundswell of support that gave the coalition a majority of the popular vote for the first time in Malaysia’s history to drive the party forward as a force in national politics. PKR vice president Tian Chua said that just because the delegates will be dressed in black for the two-day congress, it does not mean it will take on the mood of a wake. "Why should we mourn? For us, black means war. We won the popular vote and the election had so much of fraud. This will be partly a celebration of our victory in making inroads as a truly national party, as well as being a party that can still mobilise the people," said Tian, who was returned as the Batu MP in the national polls on May 5. PKR brands itself as a truly multi-racial party, whereas other parties that make that claim draw their support predominantly from single racial groups. DAP and Gerakan have mostly Chinese support, whereas PAS is virtually Malay-based, being an Islamic party. No doubt the PKR congress will be watched closely not only by PKR members, but also by the 52% of voters who chose Pakatan Rakyat in the general election. Besides these, Barisan Nasional, especially Umno, will be keen to see how the party responds to the outcome of GE13. Observers say that this congress will reveal whether PKR has drawn positive energy from the public support it has gained to propel it forward or if the party will choose to moan over its missed opportunity to form the government. Either way, the post mortem on the party’s performance in GE13 and that of Pakatan on the whole, will definitely take centre stage. PKR deputy president Prof Dr Syed Husin Ali too said that the congress will be in protest of what happened in GE 13 and definitely not a wake. "I suppose the mood will be more of what is the next step forward for the party and the congress, although in actual fact is less than a day long, will give the opportunity for the party to gain input from its members on what is the best way forward," said Syed Husin, who is also part of PKR's political bureau. Tian says that this congress will also see an acknowledgement by the top leaders of the party that it is a convergence of the “streets and seats”. “We will reaffirm with the masses that we are not just parliamentarians who sit in coats and ties in the parliament making legislation but also a party that is for the mobilisation of the people. “We are no more a party that only has the support from the urban middle class but also from the indigenous and remote areas like Sabah and Sarawak. We have made inroads into the rural Malay heartland and I believe that this congress will set the tone for the future of the party,” said Tian. While Tian is very sure PKR will be applauding itself that it has managed to generate support among the rural Malays, Syed Husin on the other hand believes that the issue of why PKR did not manage to win the rural Malay votes will be discussed heatedly. “There will also be attempts to bring up the issue of rebellion within the party,” said Syed Husin, referring to some of the PKR rebels not willing to refrain from contesting despite calls from the top party leaders, causing a split vote for the opposition parties in certain constituencies. On nomination day, PKR candidates found that they would be facing candidates from PAS in seven seats - three in Terengganu - Bukit Besi, Kota Putra dan Seberang Takir, and one each in Perak (Jelapang), Selangor (Kota Damansara), Johor (Panti) and Sabah (Labuan). However, this was soon sorted out by the party leaders to ensure that PAS and PKR did not face each other. Then, there was the issue of a PKR candidate facing a Parti Sosialis Malaysia candidate in Semenyih. In all the seats where the opposition stood in multi-cornered contests, BN won as the votes for the opposition were split. The EC had ruled that although the candidates had withdrawn, their names would remain on the ballot paper. This issue shows that the Pakatan parties have more work to do on electoral cooperation and building the coalition’s cohesiveness. The issue had been raised even at the last PKR congress that was held in Johor Bahru, during the Ma'al Hijrah celebrations in 2011. De facto party leader Datuk Seri Anwar Ibrahim in his closing speech then had talked of the need for a "hijrah" of the party in line with the concept that was adopted by the Prophet Muhammad. (The term "hijrah" refers to the event when Prophet Muhammad made the journey to migrate from the Meccan hostility to begin a new life for the Muslims in the city of Medina. The event also marked the beginning of the Muslim calendar.) Anwar and other leaders had consistently spoken of the need to ensure that the party stays on the right course, undertaking the migration from old politics with a reformed mindset. They also spoke of the need to stand up as leaders who are clean in body and mind, knowledgeable and who work for the people. Although it seemed that the party is still very much upset after the loss in GE13, many young supporters in PKR are hoping that there will be more concrete plans for the party that would open the gates of a new Malaysia. Tian and Syed Husin were echoing what PKR members are saying on the ground. Comments show that the members are looking for the party leaders to give direction to the people’s aspirations. To retain their loyalty, PKR must set the milestones first as it is seen as the lead partner of Pakatan - no matter that Pakatan leaders keep saying there is no big brother in the opposition coalition. Having been deprived of the chance to form the Federal government must be a lesson well learnt, and many among the grassroots are also waiting to see if PKR will lead the call for a strong shadow cabinet as a true government in waiting. Another party leader said that it is important to show the ruling Barisan Nasional coalition, especially Umno, that PKR and Pakatan are not backing down despite losing the GE13. "We must get up and roar again. The congress must show that we will not back down and we may have been bruised but we are not on our knees. I hope the leaders will set out the exact path for us to follow to form the next Federal Government in GE14 and not just give rah-rah speeches," said the party leader who does not want to be named. All said, all eyes and ears will be on the congress, especially the ears and eyes of those who are intent on finding out the Achilles heel of PKR and Pakatan. |
https://theedgemalaysia.com/node/51801 | Ingress, Zhulian, Ngiu Kee, Wijaya | English | KUALA LUMPUR: Stocks which could see trading interest on Thursday, July 14 following fresh corporate news include Ingress Corporation Bhd, Zhulian Corp Bhd and Ngiu Kee Corporation Bhd. Ingress’s joint venture has been awarded a RM85 million contract from Tenaga Nasional Bhd for a transmission line in Bandar Nusajaya, Johor. Its subsidiaries, Ramusa Engineering Sdn Bhd and Multi Discovery Sdn Bhd received a letter of acceptance for the project which is expected to commence in the third quarter of the current financial year ending Jan 31, 2012. Zhulian’s net profit for the second quarter ended May 31, 2011 rose 16.64% to RM21.01 million from RM18.01 million a year earlier, due mainly to increase in demands for both local and overseas markets. Revenue for the period rose to RM92.69 million from RM77.92 million in 2010. Earnings per share was 4.57 sen, while net assets per share was 79.7 sen. Zhulian declared a second interim single tier dividend of three sen per share of 50 sen each in respect of the financial year ending Nov 30, 2011. Ngiu Kee faces suspension on July 21 and delisting on July 25 after it failed to submit its regularisation plan to the regulators for approval within the timeframe. Ngiu Kee failed to submit the plan to Securities Commission or Bursa Malaysia Securities Bhd. Its share price closed 2.5 sen lower at five sen on Wednesday with 53,200 shares done. Loss-making timber-property based Wijaya Baru Global Bhd share price jumped 12.5 sen to 56.5 sen, the highest since March 2008, in the absence of any fresh positive news. The warrants rose two sen to 9.5 sen. However, investors should note the warrants, issued in September 2007, expire in September 2012. The conversion ratio is one warrant for each share. The exercise price is RM1.25 and effectively makes the warrants out of money. The warrants were issued for free to the subscribers of renounceable rights issue of RM110.36 million nominal value of five-year 7% irredeemable convertible unsecured loan stocks (ICULS) at 100% of its nominal value on the basis of one free detachable warrants for every RM1 rights ICULS subscribed for. The issue price for the ICULS was RM1 and the exercise price was RM1.25. The loan stocks expire in September 2012. The loan stocks rose nine sen to 40.5 sen. According to its latest financial statements for the financial year ended Dec 31, 2011, it had total accumulated losses of RM187.80 million at the company level and RM103.14 million at the group level. At group level, it posted net losses of RM69.901 million and at company level, RM96.24 million. |
https://theedgemalaysia.com/node/80961 | Boustead obtains RM2.84 billion syndicated loan | English | KUALA LUMPUR (Mar 15): Boustead Holdings Bhd’s subsidiary Boustead Naval Shipyard Sdn Bhd has obtained the second and final portion of its syndicated loan facility amounting to RM2.84 billion. In a statement to the exchange today, Boustead said RM2.84 billion facility forms a part of the total scheme of up to RM4.9 billion. “The syndicated facilities are mainly to be utilised to part finance the construction of six second-generation patrol vessels with combatant capabilities for the Royal Malaysian Navy,” Boustead said. The RM4.9 billion scheme has been reduced from the earlier figure of RM5.57 billion. The company said it had obtained the initial portion of RM2.06 billion in March last year. Affin Investment Bank Bhd, AmInvestment Bank Bhd and Maybank Investment Bank Bhd are lead arrangers of the loan facilit |
https://theedgemalaysia.com/node/35424 | Dip Ed teachers still not posted amid shortage in Chinese schools | English | Last Updated: 3:12pm, Jan 09, 2014 PETALING JAYA (Jan 9): While Chinese primary schools were facing teachers shortage at the start of the school session this year, a group of diploma-holders temporary teachers claimed they have been waiting for eight months for placement. Comprising some 400 teachers, they said they were still waiting for their postings even after completing their Post-Graduate Diploma in Education Programme (DPLI) on May 23 last year. A temporary teacher from Johor who wished to remain anonymous told fz.com the teachers had to wait for six months to be called up for interviews by the Education Services Commission (SPP). And, even after receiving confirmation that they have passed the interviews two weeks before school opened on Jan 2, they have not heard about their placement from the Education Ministry until now. “I am so frustrated over the ministry’s inefficiency. It had taken them so long to place us. And when I read the news that many primary schools are facing teachers shortage, I feel sad and disappointed,” he said. He said most of the teachers who took the DPLI were in their 30s and already have a family. Thus, they were worried and felt insecure of their future. The long wait had made it difficult for them as they do not have full income. “We cannot go and find other full-time jobs as we are bound by contract. While undertaking the course, we were provided allowance by the ministry,” he told fz.com in a phone interview. The 27-year old temporary teacher has just got married and needs full time employment to make ends meet. When contacted, ministry’s deputy director-general (school) Aminudin Adam said the ministry is going to finish the placement process by end of this month. “We are in the midst of processing the placement. Usually, we need to wait for the approval of the SPP. Then, the list would be sent to the ministry’s School Division. “We already have some names now and would place them in the respective states soon,” he said while giving an assurance that the ministry would prioritise placement of teachers who had undertaken the DPLI. The issue of teachers shortage in Chinese primary schools has always been vital to the Chinese community. It is seen by many as a way to undermine the operation of Chinese primary schools. According to the Headmasters’ Union, there is an estimated shortage of 1,226 teachers for Chinese schools in Peninsular Malaysia and Johor faces the most serious situation with a shortage of 400 teachers. The union believes the shortage is due to some 699 teachers who had graduated in their teachers training courses but yet to be assigned to the schools. Meanwhile, newly elected MCA deputy president Datuk Dr Wee Ka Siong who has been very critical of the ministry on the issue said, there was a roundtable that deliberated on the matter when he was with the ministry. The former deputy education minister said the roundtable had come up with a plan to solve the problem, but it was not followed through. He said when he left the ministry, Chinese schools only had a shortage of 483 teachers. And, according to his own estimate, by end of May last year, there would have been some 460 graduates from DPLI who could be placed in schools, in addition to the 699 graduates from other colleges. “It should be more than enough to cope with the teachers shortage. Regretfully, this was not followed through.The effort was all wasted,” he was reported as saying on Tuesday. For more stories, go to www.fz.com, the website for freedom of expression and fairness in articulation. |
https://theedgemalaysia.com/node/60670 | Stocks To Watch: HELP, Selangor Properites, Astro, Kelington, Hibiscus, Bfood, Boustead | English | KUALA LUMPUR (Dec 5): Based on corporate announcements today, stocks that should not escape attention tomorrow (Dec 6) may include the following: HELP International Corporation Bhd announced that it has received a written take-over offer dated today from Better Education Enterprise Sdn Bhd (BEE) to acquire all the shares not owned by BEE in HELP for a cash offer price of RM2.53 per share. Selangor Properties Bhd (SPH), which holds 72,442,222 HELP’s shares representing 51% of all issued and paid-up share capital of HELP, also made similar announcement to the stock exchange. These official announcements show that a morning story published by theedgemalaysia.com and written by Shalini Kumar on the offer price of RM2.53 was right. SPH said the offeror is a newly set up firm under the Southern Capital Group. Shares of HELP and Selangor Properties will resume trading tomorrow after being suspended for one day. Astro Malaysia Holdings Bhd saw a rise of 4.8% in net profit to RM123.7 million for its third quarter ended October 2013, from RM118.1 million in similar quarter last year. A dividend of 2 sen was announced by the group. The dividend will be payable on Dec 20, 2013. Revenue for the quarter was recorded at RM1.217 billion, a 12.8% increase from RM1.078 billion in the previous corresponding quarter. “The increase in net profit is mainly due to increase in EBITDA of RM75.9 million, which was offset by an increase in depreciation of set-top boxes of RM48.5 million and an increase in net finance cost of RM26.4 million,” said the group. The group attributed the increase in revenue to “the increase in subscription, advertising and other revenue of RM77.5 million, RM27.3 million and RM33.3 million respectively.” Kelington Group Bhd announced that its unit, Kelington Engineering (S) Pte Ltd, has received an award from Kang Hui Maternity Center Services (Shanghai) Co. Ltd to provide UHP mechanical & electrical services and medical system for a total contract value of US$46 million. The contract is targeted to commence in December 2013 and shall be completed by October 2014. “The contract is expected to contribute positively to the earnings and net assets of KGB Group for the financial year ending 31 December 2014,” the company said. Hibiscus Petroleum Bhd has secured the approval of Norway’s Ministry of Petroleum and Energy to acquire an additional production licence in the Norwegian Continental Shelf. In a statement to Bursa Malaysia, the firm said the production licence was granted on Dec 3 this year to Lime Petroleum Norway AS, a wholly-owned unit of Lime Petroleum Plc, by North Energy ASA. Lime Petroleum is jointly owned by Gulf Hibiscus Ltd, Schroder & Co Banque SA and Rex Oil & Gas Ltd. Gulf Hibiscus is a 35% owned subsidiary of Hibiscus. In a separate statement, Hibiscus also said its subsidiary has been awarded a production licence over the West Seahorse oil field in the offshore Gippsland Basin, Victoria, Australia. It said its unit, Carnarvon Hibiscus Pty Ltd, has today been awarded the production licence VIC/L31 for the said oil field, being developed by the VIC/P57 JV. Berjaya Food Bhd’s net profit for the second quarter ended October 2013 rose to RM4.5 million, from RM3.9 million a year ago. Revenue of Bfood (Berjaya Food) also rose to RM33.7 million from RM23.6 million. The company told Bursa Malaysia in a filing: “The higher revenue was mainly due to the effect of consolidating the revenue of Jollibean Foods Pte Ltd for the quarter. “The higher pre-tax profit achieved for the quarter was mainly due to share of higher results from Berjaya Starbucks Coffee Company Sdn Bhd and consolidating the results of Jollibean in this current quarter.” Boustead Holdings Bhd today obtained shareholders’ approval on its proposals to privatise Al-Hadharah Boustead REIT and list its plantation division via an enlarged Boustead Plantations Bhd on Bursa Malaysia. Speaking today after the group’s EGM, Tan Sri Lodin Wok Kamaruddin said the privatisation of Boustead REIT will pave way for Boustead to consolidate all of its plantation assets into one entity with a view towards listing of its plantation business. “This is part of Boustead’s ongoing exercise to rationalise the group’s activities and unlock the best possible value from all our investments,” said Lodin, who is group managing director of Boustead. “In this way, we can gain the best possible returns in terms of dividend yield as well as appreciation in share price for shareholders.” |
https://theedgemalaysia.com/node/95998 | #Global Markets* Asian shares under pressure, Indian currency buckles | English | TOKYO (Aug 16): Asian markets rode a
roller-coaster on Friday, with India's rupee hitting a record
low, the yuan at an all-time high and Chinese stocks roiled by
rumours of government support for the market or even a trading
error. The jitters across Asia followed a similarly strange session
on Wall Street, where normal trading patterns appeared to go out
the window as shares fell, U.S. Treasury yields jumped, gold
surged and the dollar tumbled. The rupee fell to a record low as central bank measures to
tighten capital outflows and curb gold imports were seen as
unlikely to prop up the currency. The rupee hit an all-time low
of 62.03 to the dollar. Chinese shares went on a wild ride, opening weaker before
surging for no apparent reason, taking the Shanghai Composite
Index up as much as 5.6 percent and prompting talk that
Beijing was planning to announce steps to support the market. A trading error was also rumoured. Later, the gains
evaporated as quickly as they had appeared, leaving traders
scratching their heads. China's yuan meanwhile hit a record high against
the dollar as weakness in the greenback spurred some traders to
cover positions ahead of the weekend. The currency was trading
at 6.1115 after touching a record high of 6.1090 at the open. U.S. Treasury yields in Asian trade held near two-year highs
as signs of improvement in the U.S. job market and rising
consumer prices cemented expectations that the Federal Reserve
will start reducing its stimulus next month. The dollar wallowed near a seven-week low, however, as signs
of improvement in Europe and elsewhere undercut the perceived
relative strength of the U.S. economy, especially in light of
some weak U.S. earnings, as well as disappointing factory data. Also not helping the dollar, other U.S. data released
overnight showed China and Japan - the two largest foreign
holders of U.S. debt - were at the forefront of a $66 billion
exodus from long-term US Treasuries in June, dumping a net $40
billion. European shares are expected to fall, with Britain's FTSE
seen falling as much as 0.3 percent and German DAX
0.2 percent. "I'd say the markets are pricing in an 80 to 90 percent
chance that the Fed will announce tapering in September,
although I suspect the Fed will try to send a message to curb
the rise in bond yields," said Arihiro Nagata, head of foreign
bond trading at Sumitomo Mitsui Banking Corp. Tokyo's Nikkei share average fell 0.8 percent while
MSCI's broadest index of Asia-Pacific shares outside Japan
fell 0.4 percent. The falls were moderate compared to Wall Street, where
Standard & Poor's 500 Index shed 1.4 percent, its biggest
fall since mid-June to five-week lows. - Reuters |
https://theedgemalaysia.com/node/83319 | #Highlight* Foreign funds sold M’sia stocks aggressively last week | English | KUALA LUMPUR (Nov 4): Foreign funds exited the Malaysian market for the fourth consecutive week last week, selling more aggressively compared to earlier week, according to MIDF Research. In a research report today, MIDF said Asia’s emerging markets, with the exception of India, appear “to be out-of bound for global investors currently”. “Although the bulk of foreign portfolio money may have left Thailand and Indonesia, the residual outflow continues,” it added. MIDF said concerns over the US Fed’s tapering move are apparently making investors edgy. “After eight weeks of buying, global funds appear in general to have turned bearish on Asian stocks.” On Malaysia, MIDF noted that foreign selling picked up pace last week, with foreign funds selling in the open market (excluding off-market deals) totalling RM480.1 million of Malaysian equity, after offloading RM127.3 million the week before. In the last four weeks, a total of RM1.1 billion had left Malaysian equity market. But it noted the current foreign outflow from Bursa Malaysia is still “moderate and gradual”. “A major outflow has been averted because prices have been supported by local funds. Even after the outflow last week, the overhang of foreign portfolio capital which entered the Malaysian equity market in 2013 remained high at +RM7.6 billion, down from +RM8.2 billion two weeks ago.” MIDF said local institutions were “naturally” net buyers last week, mopping up RM548.7 million. Participation rate surged to RM1.87 billion, the highest in six weeks. Retail players, however still lack conviction in the market, selling RM68.6 million. They had been net sellers in eight out of the last 10 weeks. Participation rate of retailers rose to RM1.04 billion, the first time it exceeded the RM1 billion mark in five weeks. |
https://theedgemalaysia.com/node/55791 | MoF unit to issue RM1b sukuk for building police quarters | English | KUALA LUMPUR: The Minister of Finance Inc’s unit Pembinaan BLT Sdn Bhd (PBLT) will issue its second series of RM1 billion sukuk this month, which is part of the overall 25-year plan to raise RM10 billion to build police quarters and facilities under the “build, lease and transfer” model nationwide.. PBLT said on Wednesday, Oct 5 the fund-raising plan was part of the 25-year Islamic medium term notes programme of RM10 billion to be raised by its unit, Aman Sukuk Bhd. PBLT managing director and chief executive officer Mohammed Redza Mohd Yusof said the second series issuance process was scheduled to take place soon. The inaugural series issued on Feb 28 this year received overwhelming response from investors. The sukuk was upsized from RM1 billion to RM1.1 billion. Total orders received were RM4.36 billion during the two-day book-building period which represents a bid-to-cover ratio of 4.36 times. It carried a semi-annual profit rate of 3.73% per annum for the three-year tranche, 4.05% per annum for the five-year tranche, 4.23% per annum for the seven-year tranche, 4.55% per annum for the 10-year tranche, 4.75% per annum for the 12-year tranche and 5.05% per annum for the 15-year tranche. “With the success of our first series, we are upbeat that our second tranche will attract more orders with strong investor appetite and ample liquidity in the market for high-grade papers” said Redza. He expected a better profit rate from investors for the second series. The sukuk is the long term financing facility matching the expected sub-lease rental payments from the government. Under the programme, PBLT will use income from sub-lease rental payments to redeem Aman Sukuk Islamic debt notes. PBLT would use the proceeds from the debt notes to finance development costs, operating expenses, financing costs and refinance short term financings. Redza said as at Sept 30, PBLT has completed 37 projects with full completion and 19 projects with sectional completion from the total 74 projects undertaken by the company. In terms of value, this represents RM3.65 billion from the total development costs of RM7.5 billion, he said. “With over 50% of our projects completed and delivered, PBLT is firmly on track to complete the balance by end 2014” he added. |
https://theedgemalaysia.com/node/60770 | Are diamonds an investor’s best friend? | English | The last singer to take this song, which has been adapted over the years, to the top of the charts with his own “Sierra Leone” version was American rap artist Kanye West. These days, West is better known as reality TV star Kim Kardashian’s constant companion. Of course, like her sisters, Kardashian knows a thing or two about diamonds herself. She clung on to her 20.5-carat US$2.2 million (RM6.75 million) wedding ring following the annulment of her 71-day marriage to basketball star Kris Humphries. Not surprising, then, that the world’s diamond market, once dismissed as a niche where only a handful of major transactions were made every year, is stirring. Charles Wyndham, the London-based founder of Polished Prices, an independent publisher of diamond price lists, tells me this is not because the Kardashian sisters are constantly changing husbands; it is because, in these days of financial volatility, the wealthy are increasingly looking for something more tangible that they believe will grow in value over time. Who doesn’t love ostentatious adornments? From Russian oligarchs to Arab sheikhs to newly minted mega millionaires and billionaires from India, China, Brazil and Indonesia, everyone seems to want a rock or two. To be sure, diamond prices are soaring and nobody is blaming anyone, even a much maligned Kardashian, for hanging on to a rock for their dear life. By some estimates, sales of diamonds in emerging markets or to emerging market buyers who throng boutiques in London, Paris, New York and others, already exceed sales in developed markets. Over the next two months or so, Graff Diamonds, a London luxury jewellery store chain, will seek a listing in Hong Kong. Graff Diamonds is seeking to raise more than US$1 billion in an IPO that could value the firm at over US$4 billion, according to most estimates. Hong Kong jewellery chain Chow Tai Fook raised US$2.8 billion in an IPO last December. Although its stock has fallen sharply — about 25% from its peak — the gold jeweller still commands a market capitalisation of US$15.4 billion. Graff Diamonds, which cuts, polishes and sells diamonds, already has 34 stores worldwide including those in Beijing, Tokyo, Taipei and Shanghai and a flagship store at the Peninsula Hotel in Hong Kong. Over the next several weeks, Graff Diamonds is due to open new stores in Cotai Central in Macau as well as additional stores in Shanghai’s new Pudong IFC Mall and Hong Kong’s glitzy Ritz-Carlton Hotel. More stores are planned, including one in Singapore, and in several second-tier cities in China. The proceeds of the IPO are meant to help Graff Diamonds fund its Asian expansion. Graff Diamonds’ IPO comes hot on the heels of Prada’s US$2.5 billion IPO and Coach’s secondary listing in Hong Kong late last year. Global brand retailers, CLSA’s Aaron Fischer says, are rushing to the Hong Kong bourse. They want to raise their profile and tap funds from a region where demand for luxury goods is gaining momentum at a time when Europe is mired in what looks like a prolonged recession and the US economy is still sputtering. Luxury goods sales in Asia have been growing at over 20% annually in recent years, and over 30% in markets such as China. In some niche segments, like diamonds, growth has actually been way above luxury sector trends. Billionaire Laurence Graff, the diamond store chain’s founder, has gained fame and set new records in recent years through his over-the-top bids for gems. In December 2008, just nine weeks after the collapse of Lehman Brothers and the advent of the global financial crisis, Graff audaciously bid £16.4 million (RM79.8 million) for the 35.56-carat greyish-blue Wittelsbach diamond at a Christie’s auction in London. It was the highest price paid for a gem at an auction at the time. He went on to re-cut the diamond, removing four carats (800mg) and was criticised in the media and by the glitterati for altering the historic jewel. No matter. The Wittelsbach is reportedly worth more than twice today than it was three years ago. More recently, in late 2010, Graff paid 45.4 million Swiss francs for a pink diamond at a Swiss auction. Part of the surge in the diamond business is purely due to demand and supply. Diamond output has been falling for years. There are few new diamond mines. Moreover, the cost of cutting and polishing rough diamonds, even in cheaper centres such as India, Thailand and more recently China, has been rising. Singers like West and movies like Blood Diamond (which stars Leonardo DiCaprio and is set in Sierra Leone) have brought the worst side of Africa’s diamond trade and the financing of fierce wars to light. Intense media scrutiny and an obsession with corporate social responsibility mean that, these days, companies such as De Beers and Graff Diamonds need to make sure the diamonds they sell are not ultimately financing wars, dictators or mafia in some remote corner of Africa. While the Graff Diamonds IPO is hogging all the attention for now, the best way to play the diamond boom might be through the producers and miners. One way to partake in the diamond story is to buy into smaller producers like New York Stock Exchange-listed Harry Winston Diamond Corp, or London Stock Exchange-listed companies Petra Diamonds (whose mines are mainly in South Africa) and Gem Diamonds. Another way is to go to source by betting on upstream players. Late last year, London-listed mining giant Anglo American bought a 40% stake in De Beers, the world’s top diamond miner, for US$5.1 billion from the Oppenheimer family. Anglo American already owned 45% of De Beers. There is a handful of big players in diamond mining. With its 85% control of De Beers, Anglo American is now the biggest, with nearly a third of total global production. A fast growing player is Russia’s ZAO Alrosa which has almost a third of the market. But a third big global diamond player might be emerging closer to Asia. Australian mining giants BHP Billiton and Rio Tinto are both also-rans in the diamond arena. They mine diamonds in Canada, Africa, India and Australia, but are looking to shed their diamond businesses to focus on core high-growth, higher-margin bulk commodities and metals such as iron ore, coal and copper. Late last year, BHP sold its interest in Canadian diamond exploration project Chidiak to Toronto-listed Peregrine Diamonds. BHP CEO Marcus Kloppers said at the time that his firm was looking at long-term options, including a sale, for its remaining diamond assets. Rio, meanwhile, announced a strategic review of its diamond assets in March. Together, BHP and Rio account for 18% of the global mining of diamonds. Nomura Securities values the diamond businesses of BHP and Rio Tinto at US$2.2 billion and US$1.9 billion respectively. Diamond mines represent less than 1% of the net assets of the two mining giants and less than 1.5% of their total operating profits. There aren’t too many companies queueing up to buy diamond assets as big as those. Anglo American and Alrosa probably won’t bid for the assets. Some of the smaller players would rather buy a smaller stake than fork up the sort of money the assets would fetch in a sale. David Radclyffe, metals and mining analyst for Nomura in Sydney, believes it might make sense to combine BHP’s and Rio’s diamond assets into the world’s largest pure diamond miner and sell it in an IPO. A diamond pure play like that might just turn out to be an investor’s best friend that not even West or a Kardashian could ignore. - The Edge Singapore This article appeared in The Edge Financial Daily, April 17, 2012. |
https://theedgemalaysia.com/node/5527 | ICBC officially starts business | English | KUALA LUMPUR: Industrial and Commercial Bank of China (ICBC), the world’s largest bank in terms of market capitalisation and deposits, officially started business here yesterday, with plans to contribute further to the strengthening of economic and trade linkages between Malaysia and China. Speaking at the launch of ICBC’s subsidiary, Industrial and Commercial Bank of China (Malaysia) Bhd, Prime Minister Datuk Seri Najib Razak said the establishment of the bank here has given a significant boost to Malaysia’s bilateral, financial and economic ties with China, which is already the country’s largest trading partner. “I am confident the establishment of ICBC would contribute towards accelerating the financial linkages underpinning trade between China and Malaysia. “I hope to see bilateral trade with China double over the next five to six years,” he said in his speech. In 2009, trade between China and Malaysia was worth US$52 billion (RM166.92 billion). ICBC Malaysia, whose main office is at Menara Maxis, is expected to have four branches in the country over the near term. ICBC vice-chairman and president Yang Kaisheng said many ICBC customers had economic and trade ties with Malaysian enterprises, with some having direct investments in Malaysia.“The ICBC group would make available its capital resources, network advantage and technology strength to help ICBC Malaysia better serve its clients,” he said. ICBC was granted a commercial banking licence following the signing of an arrangement between the China Banking Regulatory Commission (CBRC) and Bank Negara Malaysia in 2009. The licence is separate from the new commercial banking licences that will be issued under Malaysia’s liberalisation initiative announced in April 2009. The issuance of the licence came a week after both parties signed a deal to increase cooperation in banking supervision during a state visit to Malaysia by Chinese President Hu Jintao. In April 2009, Najib announced measures to liberalise the country’s banking sector, allowing seven new banking and insurance licences and easing foreign ownership limits for non-commercial banks. The new seven licensees are expected to be announced by June. Present at the launch yesterday was BNM governor Tan Sri Dr Zeti Akhtar Aziz and the Chinese ambassador to Malaysia Liu Jian. “The presence of ICBC in our financial system will pave the way for increased business and investment opportunities between our two countries,” said Zeti. She said the regional financial integration process in Asia needed to be accelerated as the overall investment over the next 10 years was estimated to be US$8 trillion. With China being Malaysia’s largest trading partner, BNM had entered into a bilateral currency swap arrangement last year, said Zeti, adding that a cost-effective arrangement is being finalised to provide option for exporters and importers to settle bilateral trade obligations in the local currency by the middle of the year. As at end-2009, ICBC’s total assets of its overseas operations were US$50 billion. For the fiscal year ended Dec 31, 2009 (FY09), it posted a net profit of 129.4 billion yuan (RM61 billion). As at Dec 31, 2009, the banking group’s total deposits stood at 9.7 trillion yuan, according to presentation slides posted on its website. This article appeared in The Edge Financial Daily, April 29, 2010. |
https://theedgemalaysia.com/node/77331 | Affin positive on Hartalega achieving RM230m net profit in FY13 | English | KUALA LUMPUR (Jan 16): Affin Investment said it believed Hartalega Holdings Bhd would be able to achieve the full net profit target of RM230 million for its financial year ending March 31, 2013 (FY2013), as demand for gloves was robust and the company had improved on its operating efficiencies. In FY2012, the company recorded a net profit of RM201.43 million, and forecast an 11% year-on-year growth for FY2013. Affin maintained Hartalega’s target price of RM5.15 and 'add' rating, according to the research house’s note today. At 11.42am, the company’s shares were up one sen to RM4.94, with an intraday high of RM4.95 and low of RM4.92. In the note, Affin said it expected the glove sector to remain healthy this year, as demand for gloves was robust and the company had improved on its operating efficiencies. "In addition, we believe the sector’s key driver -- latex and nitrile costs -- will stay at a favourable level of around RM6 to RM7 per kg and US$2.20 to US$2.40 per kg respectively," said the research house. Affin noted that Hartalega’s new production facility had four production lines that could produce about 45,300 glove pieces per hour per line, whereas the industry’s average was about 28,000 pieces per hour. Six more production lines will be completed by July this year. "We note that the current level of automation is about 80%, and management is targeting 100% full automation by end-FY2014. The remaining 20% labour intensive part is in the quality control and packaging line," said Affin. "[Hartalega’s] management guided that demand for synthetic nitrile gloves from its quality demanding customers in the US, Japan and Germany remained resilient. The company’s nitrile sales have grown at a compound annual growth rate of 72% from 2004 to 2012." |
https://theedgemalaysia.com/node/430 | CIMB Research has technical sell on Tan Chong at RM4.24 | English | KUALA LUMPUR (Dec 2): CIMB Equities Research has a technical sell on Tan Chong Motor Holdings at RM4.24 at which it is trading at a FY13 price-to-earnings of 8.2 times and price-to-book value of 1.5 times. It said on Friday the recent countertrend rebound hit a snag near the 38.2% FR level. It appears that the stock is still trapped in a downtrend channel. With the candles also trading below all its key moving averages, we doubt any short term rebound would be strong. “Unload on strength looks like a good option here, especially near the RM4.37 to RM4.40 resistances. Selling pressure should accelerate once the RM4.15 low is breached. Support is at RM4.00 and RM3.76. “Technical landscape remains lethargic. MACD is still hovering in the negative territory while RSI is below the 50pts mark,” CIMB Research said. |
https://theedgemalaysia.com/node/42327 | Ekovest, TM, Sealink, JAKS, Mitrajaya | English | KUALA LUMPUR: Key Asian markets, including Bursa Malaysia, could advance in late window dressing activities on Thursday, Dec 30, as investors sentiment is galvanized by the firm overnight close on Wall Street. Reuters reported that the S&P 500 headed for its best December in nearly two decades as U.S. stocks advanced in thin trade on Wednesday, lifted by investor optimism about the economy in 2011. The Dow Jones industrial average was up 10.52 points, or 0.09 percent, at 11,586.06. The Standard & Poor's 500 Index was up 1.34 points, or 0.11 percent, at 1,259.85. The Nasdaq Composite Index was up 4.05 points, or 0.15 percent, at 2,666.93. At Bursa Malaysia, the FBM KLCI closed at a seven week high of 1,524.34 on Wednesday, Dec 29, which was just four points below its all-time closing high of 1,528.01 on Nov 10, reflecting the optimism in most key regional markets. The 30-stock benchmark index advanced 0.45% or 6.90 points to close at 1,524.34, lifted by gains in key blue chips including Genting, DiGi as well index-linked plantation stocks. Stocks to watch on Thursday are Ekovest Bhd, Telekom Malaysia Bhd, Sealink International Bhd, JAKS Resources Bhd and Mitrajaya Holdings Bhd. The Edge FinancialDaily reports on Thursday that Tanjong Plc has attracted another bid for its gaming business, this time from Datuk Lim Kang Hoo of construction outfit Ekovest Bhd. Telekom Malaysia will carry out a thorough internal investigation to safeguard the integrity of its procurement process and code of business ethics in the wake of allegations that its employees had received improper payments from Alcatel-Lucent S.A. The company said it had a zero tolerance policy towards improprieties and would take appropriate action against any of its employees, if they had received such payments. The US Securities and Exchange Commission had charged the Paris-based Alcatel-Lucent with violating the Foreign Corrupt Practices Act (FCPA) by paying bribes to foreign government officials to illicitly win business in Latin America and Asia. Sealink has secured contracts for the sale of three offshore support vessels for RM70 million. It said the vessels were expected to be delivered within the first quarter of 2011. Two of the vessels were sold for RM68 million to established overseas buyers whilst a 14 year old vessel was sold as part of the company’s fleet modernisation plan. JAKS posted net profit RM1.19 million in the fourth quarter ended Oct 31, 2010 compared to net loss RM3.13 million a year ago due to recovery in selling prices of various steel related products and better margins as compared with previous year. Its revenue rose 38% to RM85.74 million from RM62.3 million last year, on the back of higher revenue contributed from the steel related products and recognition of works done for the projects in the construction division. Lion Industries has accepted RM26.19 million as full settlement from Likom Computer System Sdn Bhd for rental owing. It had agreed to waive the interest of RM11.05 million as Likom had ceased operations in 2004. Mitrajaya has secured a RM53.5 million hangar construction contract at Subang Airport. Its unit Pembinaan Mitrajaya Sdn Bhd had accepted the contract to build five hangars, a two-storey multipurpose building, two electrical substations and one guardhouse at the Sultan Abdul Aziz Shah Airport. It said the contract was for 10 months from Jan 1, 2011 and was expected to contribute positively to its future earnings. |
https://theedgemalaysia.com/node/97794 | Sarawak to start first export of hydropower with cross-border transmission line | English |
KUALA
LUMPUR (Aug 29): Sarawak will start its first export of hydropower under a plan
by the Asian Development Bank (ADB) and government of Indonesia to build a
cross-border power transmission line linking West Kalimantan with Sarawak,
Malaysia, bringing cleaner, greener hydroelectricity to West Kalimantan and
adding 8,000 households to its power grid. In a
statement on ADB’s website Aug 28, ADB principal energy specialist Sohail
Hasnie said it was a win-win situation. “West
Kalimantan gets renewable energy and will have the ability to exchange power;
Sarawak starts its first export of hydropower; and the region moves one step
closer to establishing a regional power transmission link that crosses Brunei
Darussalam, Indonesia and Malaysia, he said. The ADB
said the project would build a 145-kilometer distribution line, distribution
feeder extensions, and a new substation to improve the reliability of power in
West Kalimantan. It said
an 83-km cross-border high-voltage transmission line and substation will
connect the West Kalimantan power grid to that of neighboring Sarawak. An
estimated 230 megawatt-hour of power could be exchanged every hour between the
two systems, it said. Funding
for the project is via a US$49.5 million ADB loan, while the ADB said it would also
administer a US$49.5 million loan provided by the French development agency
Agence Française de Dévelopment, as well as a US$2 million grant provided by
the Multi-Donor Clean Energy Fund under the Clean Energy Financing Partnership
Facility. ADB is
currently preparing a second loan project to finance the transmission line on
the Malaysia side. Both
countries have agreed to complete the construction by December 2014 and power
flow will start from 1 January 2015. Perusahaan
Listrik Negara (PLN), the Indonesian state-owned electricity company, currently
uses oil for power generation in West Kalimantan, which has pushed the cost up
to 25 cents per kilowatt-hour (kWh). Under
the power exchange agreement signed with Sarawak, the cost of power in West
Kalimantan could be cut to 18 cents/kWh, while carbon dioxide emissions from
fossil fuel-based generation could be cut by 400,000 tons each year by 2020. |
https://theedgemalaysia.com/node/27031 | LME to open Singapore office | English | LONDON: The London Metal Exchange (LME) said yesterday it will open LME Asia, its first overseas office, in Singapore to serve members’ needs and make the most of opportunities in the region. “LME Asia will be led by Liz Milan, the LME’s current commercial director, who will take on the role of managing director Asia,” the LME said in a statement. Milan would not comment on her replacement, but said it will be announced in due course. She also told Reuters that the LME board had approved her appointment and that she is aiming to take up her new responsibilities in Singapore in early April. “A majority of our members have a presence in Singapore and other locations throughout the region, it’s crucial we are there to support them,” she said. “We have significant business which is driven through Asia. And there is an opportunity to look at relationships with exchanges in the region, to look at potential new contracts driven by Asia.” The metals industry has for some month’s talked about the LME expanding its reach into Asia, with some speculating that it could open another exchange in the region. A London-based LME trader said he did not think the LME will ever be allowed to open an exchange in Asia. “It’s for marketing purposes. It’s just for them to be able to serve people who have interests in Asia.” The LME has 26 category 1 and 2 members with offices in Singapore and is hoping they and other market players will use its contracts in metals, steel and plastics. “I’m looking forward to... exploring new opportunities for the LME, whether that is new partnerships in the region (or) new contracts for the exchange,” Milan said.” LME chief executive Martin Abbott said Singapore has strong government support for commodity industries, good regulation, and “a deep pool of talent”. “We already work with many brokerages and warehouse companies there so it really is a natural fit.” — Reuters This article appeared in The Edge Financial Daily, February 10, 2010. |
https://theedgemalaysia.com/node/9512 | Economic slump hits media companies | English | In Malaysia, while the Internet has yet to pose a major threat to the traditional media, the economic downturn and sharp fall in advertising have started to bite. Early 2009 results reported over the last two weeks showed that none of the newspapers have been spared by the RM52 million or 3.8% y-o-y fall in advertising expenditure (adex) to RM1.32 billion in 1Q2009. Leading the declines were smaller spending in the newspaper and magazine segments, which fell 9% to RM731.03 million and 9.8% to RM30.23 million respectively, according to Nielsen Media Research. All six listed news organisations saw significant margin contraction and five of them — Media Prima Bhd, The New Straits Times Press (M) Bhd (NSTP), Utusan Melayu (Malaysia) Bhd, Media Chinese International Ltd (MCIL) and Berjaya Media Bhd — were in the red for the quarter ended March 31. Even Star Publications (M) Bhd, which has the lion’s share of the English print advertisement, saw 1Q2009 revenue falling 11% and net profit diving some 58% y-o-y, reflecting the rigid cost element of traditional media. This prompted at least four more brokerage houses to cut their recommendations on Star to “sell”. RHB Research said in a research note that April was the 10th month The Star saw a y-o-y contraction in gross adex. Advertising agency Aegis Media predicts that the Malaysian adex will shrink 6% in 2009 before recovering to a 4.5% growth in 2010. And that was before Bank Negara Malaysia said last Wednesday that the economy contracted 6.2% in 1Q2009, the first time since 2001, and in a quantum well south of economists’ expectations. The government revised 2009 GDP forecast for the full year to between -4% and -5% from between 1% contraction and 1% growth previously. Adex has strong corelation with economic growth. Expectations are that newspapers, which command 54% of advertising spent in Malaysia last year, would be hit most. Terrestrial TV had a 35% market share, followed by radio with 5%. A pick-up in free-to-air TV and radio spent in March was not enough to save Media Prima, which controls all four of the country’s privately-owned free-to-air television channels (TV3, ntv7, 8TV and TV9). It also owns 43.29% of the NSTP, whose publications include the New Straits Times (NST), Berita Harian and Malaysia’s most widely read tabloid, Harian Metro. Analysts, however, are optimistic that the Media Prima TV stations will recover a lot faster than the print segment as expectations are that advertisers would shift some spending away to cheaper alternative platforms. News regime changeIt is on the back of this tough operating environment that speculation of changes at the very top of news organisations is going on. This buzz and talk of a media clampdown had begun long before Datuk Seri Najib Tun Razak became Prime Minister two months ago. For now, the only clear change, as far as top editorial positions are concerned, is the appointment of Datuk Johan Jaafar as Media Prima’s executive chairman. Two weeks after Johan’s appointment as the group’s new defacto numero uno, Media Prima’s managing director and CEO Abdul Rahman Ahmad, who has been with the group for eight years, announced his resignation on May 15 — the same day the group announced it made a quarterly loss from operations. The only other time Media Prima reported a quarterly net loss was in 1Q2006 when NSTP incurred a RM29 million one-off voluntary separation scheme (VSS) cost and its first consolidated numbers from ntv7 which it acquired in December 2005. Abdul Rahman, instrumental in Media Prima’s transformation from a debt-laden and bleeding entity to a profitable multi-platform media company, will leave when his contract ends in August. His designated successor, Datuk Amrin Awaluddin, Media Prima’s group adviser and CEO of TV3, was promoted to Media Prima’s newly-created position of chief operating officer (COO). In a note on May 18, CIMB Research said news of Abdul Rahman’s resignation struck it as a “negative surprise” due to the critical role he played in the group’s growth. CIMB later said that Media Prima’s management reassured that Abdul Rahman’s resignation “does not alter the strategic direction of the group”. AmResearch said it is “upbeat” on the group’s succession plan as the designated successor has been with Media Prima since 2001.Other key personnel changes are underway, industry insiders say, although their appointments have been delayed by the “noise” in the political scene. Veteran newsman Datuk Ahmad A Talib, who left NSTP in April 2005, will be appointed executive director at Media Prima overseeing all news and editorial content for the group, they say. Insiders also say former Business Times editor, Zainul Arifin Mohamed Isa, who has a well-followed column on Wednesdays in the NST, will be named group editor effective June 1, succeeding NSTP’s group editor in chief (GEIC) Datuk Hishamuddin Aun.Zainul currently heads NSTP’s electronic arm NSTP eMedia Sdn Bhd, a position he assumed in the last round of top editorial regime changes. No official announcement on the speculated appointments of Ahmad Talib and Zainul Arifin had emerged as The Edge went to press. Still, changes are expected, as witnessed at the MCA-controlled Star early this year with the appointment of Datuk Clement Hii Chii Kok as its new executive deputy chairman, succeeding Datuk Steven Tan Kok Hiang, who helmed the group from February 1986 to January 2009. It also remains to be seen if talks of a Utusan-NSTP merger will again surface with the change of guard, following failed discussions to attain a win-win marriage in late 2006. There is also speculation that Malay Mail, which NSTP sold to Dynahall (M) Sdn Bhd for RM5 million in January 2008, would again return under NSTP’s umbrella.But for now, skidding adex is still the bigger worry versus the speculated changes in the editorial regime, analysts say. The moolah from new mediaIt is also during this very challenging advertising environment that top media companies are going ahead with spending on new media platforms, recognising their increasing popularity to certain segments of the market. The Star’s Hii told reporters last Tuesday that it aims to increase revenue from its online business to help cushion any future reduction in revenue from its print business. The Star online website, he says, receives 54 million pageviews a month currently, but revenue is still small. However, advertisers are still adopting a “wait-and-see” attitude on spending their ad dollars online. Media Prima lost RM10 million on its new media venture last year, of which RM5 million was on bandwidth cost to support the huge online traffic. They hope to break even in two to three years. It is the combination of “global trend”, potential new revenue stream and the branding boost from a strong online presence that have seen local traditional news organisations begin putting more resources on the online platform, hiring people who recognise the benefits of so-called Web 2.0 applications like social networking site Facebook, and Twitter, the so-called “SMS of the Internet”. The growing popularity of online news sites where readers can read for free is one reason decision-makers at traditional news organisations find it very hard to raise cover prices for their bread-and-butter print product. A drop in circulation numbers directly impacts the advertising rate a publication commands. The economic downturn also means that a fewer number of news organisations would have the option to raise advertising rates. Already, clients are tightening their purse strings and asking for more discounts and longer payment terms. Nonetheless, in a note last Thursday, CIMB Research reckons investors who are keen to pick-up media stocks would have the opportunity to do so at year-end. “We continue to believe end-2009 will be a good re-entry point for exposure to selected media stocks as positives such as earnings visibility, advertisers’ improved sentiment, cheaper newsprint and gradual economic recovery are likely to kick in as catalysts then,” it said. Until then, media companies are in for a very rough ride. This article appeared in the Corporate page of The Edge Malaysia, Issue 757, June 1-7, 2009. |
https://theedgemalaysia.com/node/62619 | Mielke: Global CPO supply unlikely to meet demand, shortage to boost demand | English | KUALA LUMPUR (March 7): Global demand for palm oil is expected to be 78 million tonnes by 2020 but an industry expert expected a shortfall in supply based on current levels. Thomas Mielke, the executive director of ISTA Mielke GmBH, said on Wednesday the shortfall in production was likely to drive up prices in the near term. Speaking at the second day of the Palm and Lauric Oils conference, he said it was important for palm oil producers to utilise technology in order to raise yield and narrow the gap between supply and demand. |
https://theedgemalaysia.com/node/5965 | Straight Talk: Deposit guarantee fee should not be a burden | English | The 22 commercial banks and 17 Islamic banks operating in the country will know what their respective risk profiles are early next month when they will be informed of their scorecard under a risk assessment system implemented by Malaysia Deposit Insurance Corp (PIDM). These financial institutions will have to pay deposit insurance premiums to PIDM by end-May. Under PIDM’s differential premium system (DPS) — a risk management tool to monitor the financial health of individual banks that was implemented last year — deposit insurance premiums will be based on four categories, depending on a bank’s risk profile. The premium rate for the highest score, category 1, is 0.03% of total insured deposits as at the end of the preceding year, followed by category 2 (0.06%), category 3 (0.12%) and category 4 (0.24%). Under the PIDM Act, the corporation can charge a maximum rate of 0.5%. This year’s collection should be higher than last year’s; PIDM projects that RM147 million will be collected from the 39 banks since this will be the first year of full implementation compared with the transition period last year. In 2008, the collection was RM90 million, which fell short of a projected RM120 million because of the transition period and better DPS ratings as a result of improvements in quantitative marks and supervisory assessment. During the transition period, banks were given a 20% bonus mark under the quantitative score, which takes into consideration matters related to capital, profitability, efficiency, asset quality, concentration and growth. The other aspect of assessment is qualitative that involves mainly supervision. However, there will also be an interesting development in this year’s DPS collection because of a blanket guarantee provided by the government for all deposits. In the wake of the global financial meltdown, the government has decided to fully guarantee all ringgit and foreign currency deposits in specific financial institutions until end-2010 as a pre-emptive and precautionary measure to maintain stability in the financial system and to maintain the confidence of depositors. This step was taken following similar measures adopted by some neighbouring countries. Following the move, 15 investment banks, three international Islamic banks and the five deposit-taking development financial institutions have been included in the cover. Financial sources say the total amount in deposits covered this year could increase fivefold to almost RM1 trillion, from the nearly RM200 billion that is currently insured by PIDM. It has been more than six months since the government’s deposit guarantee was announced and banks have yet to be informed of the quantum to be paid for the additional or new protection over and above the RM60,000 per depositor per bank deposit insurance provided by PIDM. Although the premium needs the approval of higher-ups, banking institutions would obviously be hoping for the amount to be revealed as soon as possible for better financial planning purposes. The question that arises is, what is the right quantum to be paid under this temporary protection measure? The fee could also prevent banking institutions from taking excessive risks or becoming overly exposed. Should the fees for the additional protection of deposits above those covered by PIDM follow the DPS? Or should it be a flat rate? As the government’s blanket guarantee is a special case and is only a temporary measure to protect deposits, it would be better if the amount is lower than the rate under category 1 of the DPS since the fee is an additional cost for the banking institutions. Also, a lower fee structure would not burden the banks. Assuming that 0.03% is used as a yardstick for the additional protection, the total amount could work out to about RM240 million, based on the protection provided for the extra RM800 billion. The RM90 million collected in 2008 from the 39 commercial and Islamic banks accounted for less than 1% of their total profit, estimated at over RM10 billion. The extra cost should not be seem as an additional burden to the banks, especially in the current economic environment. Some banks may question the rationale for paying the fee since the government is providing the guarantee. They could also argue that the banking industry has put in place a strong risk managment control system since the 1997/98 Asian financial crisis, apart from close supervision and monitoring by Bank Negara Malaysia and PIDM. In the current economic downturn, banks could see deposit-taking as a burden because of the difficulty in making loans. In such a scenario, the loan-to-deposit figures will definitely come down. If banks continue to take deposits, they will not only bear interest payments and operating costs but will also have to contend with the deposit insurance fee. This will squeeze their margins further. The government has to strike a balance by ensuring that the fee imposed for full protection of deposits is only a small cost for banking institutions and, at the same time, instil confidence in depositors through its deposit guarantee. Toh Lye Huat is associate editor at The Edge. Comments: [email protected] This article appeared in The Edge Malaysia, Issue 752, April 27-May 3, 2009 |
https://theedgemalaysia.com/node/24174 | FBM KLCI marginally lower | English | KUALA LUMPUR: Malaysian equities traded in the red after giving up marginal gains earlier in morning trade Monday, Dec 28 as regional stockmarkets advanced following positive updates on the US economy. FBM KLCI rose as much as 0.44 of a point to 1,264.38 at 9.37am before declining to 1,263.88 at 9.48am, down 0.06 of a point. Across the board, 125 stocks gained compared to 74 declining entities resulting in 49 million shares worth RM41 million done. Time Engineering Bhd, the most active stock with 3.6 million shares traded, added 0.5 sen to 40.5 sen. Top gainer was Kumpulan Powernet Bhd which rose 25 sen to 70 sen while the biggest decliner was Dutch Lady Milk Industries Bhd which was down eight sen to RM11.62. Regional stock indices advanced. Japan's Nikkei 225 rose 1.06% to 10,606.15 points, while China's Shanghai SE Composite added 0.5% to 3,156.99. Nearer to home, Singapore's Straits Times was up 0.42% to 2,849.66. Stockmarkets in Austalia and New Zealand are closed for national holidays. Commodity prices gained. US crude oil for February 2010 rose nine cents to USD78.14 while spot prices for goldadvanced USD3.10 to USD1108.55. The ringgit was traded at 3.4265 versus the US dollar, 4.9235 against the euro, 5.4626 against the pound sterling, 3.7415 versus the yen, and 2.4367 compared to the Singapore dollar. |
https://theedgemalaysia.com/node/6761 | From Twitter: Activist arrested for sedition | English | The following are the Tweets from Melody Song who was at last night's impromptu candlelight vigil outside Bukit Perdana where activist, academician and columnist Wong Chin Huat was held for alleged sedition. Wong was arrested outside his home in Kuala Lumpur at approximately 8pm last night. At 12:15, he was driven out of the Federal Commercial Crime Investigations Department (CCID) in Bukit Perdana after police personnel had promised his team of lawyers that they would be able to go inside the building to talk to him. For details of his arrest, please read our story here. 23:41 At Bukit Aman*. Big NGO crowd. Some waiting since 8:30pm, nothing. WCH is still inside. Police aplenty. *: The vigil was actually at Bukit Perdana. 23:43 Group of VIPs in front of me--Ambiga, Sivarasa, Dzulkefly. Am eavesdropping. They've been waiting to talk to WCH for ages. Agitated. *Ambiga Sreenevasan (former Bar Council President), R Sivarasa (PKR Vice-President and MP for Subang), Dr. Dzulkerfly Ahmad (MP for Kuala Selangor) 23:46 Opposition MPs and activists demanding to be escorted inside. Things getting heated. 23:48 Everyone's saying "Tahanlah, tahanlah". Cops saying 'boss' has been informed, Opposition fellas gave them 5 min before they march up. *The police had threatened to arrest lawyers and civilians for alleged tresspassing. 23:50 Ragu (Bar Pres) saying if he cannot meet cops' 'boss' "there is something wrong". Cries of "hak perguaman!" and "1BLACKMalaysia!" heard. 23:53 Cops chasing us off. Under whose authority we don't know. Plainclothes Cop demanding we leave, lawyers kicking up fuss. 'Boss' unknown. 23:54 Lawyers demanding that 3 of them go up, everyone else has to leave. We are accused of trespassing in a 'security area' and challenging cops.23:59 Showdown at Bukit Perdana for WCH. http://twitpic.com/4ls49 * seen here in blue batik is YB Ronnie Liu, and Bar Council President Ragunath Kesavan.00:01 Cops. http://twitpic.com/4ls7p00:02 Mood is hostile. 00:05 Gun-stroking cops. http://twitpic.com/4lser00:07 Crowd is getting agitated. Angsty Plainclothes Cop has disappeared. Talking to YB Ronnie Liu, says WCH arrested for asking (the people) to wear black. 00:09 The suasana has been described as "meriah". The crowd is not budging, alternating between angst and high spirits. 00:16 BREAKING: WCH escorted out of the premises. Where to, nobody knows. 00:17 Crowd is disgruntled and invectives abound. Nobody knows where WCH is. He waved at us though. Shouts demanding to know where. 00:18 Cops have retreated behind doors. People slamming on window asking why they were bluffed* and where WCH is. *Earlier, the police had promised lawyers that they would inform their superior and allow lawyers to speak to Wong. 00:19 A few select people are crowding entrance, including Sivarasa and Ragunathan. A lawyer, Siti, is scolding cops violently. 00:21 Public crowding around eavesdropping on soft conversation. Is heard that WCH was seen handcuffed while in marked police vehicle. 00:24 We're moving out. WCH brought to court tomorrow--but nobody knows which. Everyone's pissed off. 00:26 Duta Court tomorrow, WCH to be tried for sedition. No specifics. Cops did not interrogate him today. Ragu says this is violation of rights.00:27 Ragu: No need to remand him. It is punitive, persecution, a violation of rights. Other lawyers very disgruntled about being bluffed. 00:28 Latheefa: They should have allowed lawyers in. Siva: What you saw there was unprofessional police conduct. *Latheefa Koya (lawyer and activist) 00:30 We're officially done. Crowd dispersing quietly, albeit with much irritation. |
https://theedgemalaysia.com/node/90848 | O&G player wins tender rig contract in Myanmar | English | SapuraKencana Petroleum Bhd (July 15, RM4.10) Maintain buy at RM4.12 with a target price of RM4.86: Sapura-Kencana has been awarded a contract by PTTEP International Ltd for the provision of tender assist rig services for a duration of approximately 300 days. The tender rig, SKD T-9, will be deployed for the Zawtika development drilling campaign offshore Myanmar. At a total contract value of US$40 million (RM127.6 million), this would imply a day-rate of around US$133,000. This rate, however, is slightly below the current average day-rate for tender rigs of US$146,000. The job will commence this month. We are positive on this news, not just for the job win, but rather the fact that Myanmar will provide added opportunities to Malaysian oil and gas companies as the country is severely lacking in production infrastructure and technology. Soon, Myanmar will be exporting US$45 million worth of oil and gas a day to China via its onshore Trans-Myanmar pipeline, bypassing the Strait of Malacca and Singapore. The latest contract helps SapuraKencana to keep pace with our estimates of its orderbook replenishment. Hence, we maintain our earnings estimates at this juncture as we have already factored in the potential earnings accretion into our forecasts. With this new job, its current orderbook stands at approximately US$8.3 billion. A quarter of the orderbook is expected to be recognised in the 2014 financial year (FY14) while the rest is expected to be recognised from FY15 onwards. We are bullish on SapuraKencana and maintain our “buy" recommendation on the stock at a target price of RM4.86 per share, on the back of a forward price-earnings ratio (2014) of 20 times and earnings per share (2014) of 24.3 sen. We like SapuraKencana for its integrated oil and gas business model, consistently strong order book replenishment (burn rate of three years) and its status as a strong beneficiary of Petroliam Nasional Bhd's strong capital expenditure spending for the next few years. — MIDF Research, July 15
This article first appeared in The Edge Financial Daily, on July 16, 2013. |
https://theedgemalaysia.com/node/70259 | UOA records lower profit for 3Q | English | KUALA LUMPUR: UOA Development Bhd has entered into sale and purchase agreements (SPA) through its wholly-owned subsidiaries to buy seven pieces of freehold land in Sentul, Kuala Lumpur worth RM130.3 million. The company released its quarterly results yesterday. Its net profit was down 8.8% to RM76.5 million for the third quarter ended Sept 30 on the back of lower revenue of RM216 million. For the nine months ended Sept 30, 2013, the group reported revenue of RM893.5 million, an increase of 42% from RM627.9 million in the previous corresponding period. Its net profit of RM274 million was 19% higher than the RM229.8 million recorded previously. In a filing with Bursa Malaysia, UOA said its subsidiaries, Infinite Accomplishment Sdn Bhd and Orient Housing Development Sdn Bhd, had entered into the respective SPA with several vendors. The vendors for the proposed acquisition include four investment holding companies — Yamashoppe Sdn Bhd, Liew Meow Realty Sdn Bhd, Khiam Huat Industrial Works Sdn Bhd and Khian Huat Industrial Works Sdn Bhd. The remaining vendors are Tan Mui Chwi, Tan Ngee Hong, and the Ng family — Ng Leong Chye, Ng Kong Lean and Ng Neo Eng. “The purchase consideration was arrived at on a willing buyer-willing seller basis after taking into consideration the good development potential of the Sentul land due to its accessibility and close proximity to the city centre,” it said. The 13.5-acre tract is said to be in close proximity to the Kuala Lumpur city centre, and accessible via the Duta-Ulu Kelang Expressway (Duke). On its earnings, the group’s revenue and profit attributable to the company were mainly derived from the progressive recognition of the group’s ongoing development projects namely One@Bukit Ceylon Hotel Suites, Desa Green, Le Yuan Residence, Vertical Office Suites and Scenaria @ North Kiara Hills”, UOA said. “The disposal of the group’s inventories at Healthcare Centre, Binjai 8 and Kepong Business Park during the quarter under review also contributed to the increase in revenue and profit”, it added in its filing with Bursa yesterday. The group’s profit attributable to the owners of RM76.5 million for 3Q13 was lower than the immediate preceding quarter of RM78.6 million due to a higher profit recorded in the preceding quarter contributed by sales of an office tower in The Horizon, Bangsar South. Basic earnings per share (EPS) for its current quarter stood at 5.83 sen. Its year-to-date EPS of 21.35 sen was more than the 18.99 sen in the previous corresponding period. UOA noted that sales of completed properties such as Binjai 8 and The Horizon continued to contribute significantly to the total sales. “While there were no new launches in 3Q13, our sales continued to improve, bringing the total new sales for the nine months ended Sept 30, 2013, to RM1.57 billion,” it said. It also said new launches during the year, such as Vertical Office Suites, Desa Green, and Scenaria at North Kiara Hills formed a substantial proportion of the new sales. Total unbilled sales as at Sept 30, 2013, stood at about RM1.2 billion. UOA expects South View, the project to be launched in 4Q13, to receive encouraging response. “Barring unforeseen circumstances, the development of the group’s land in Jalan Ipoh and Kepong is expected to commence in 2014”, it said. This article first appeared in The Edge Financial Daily, on November 21, 2013. |
https://theedgemalaysia.com/node/73314 | Astro, Tanjung Offshore, MRCB, Mah Sing, Pantech | English | KUALA LUMPUR (Nov 18): The local stock market, which has been sold down along with major markets since Nov 6, may rise on Monday in tandem with 0.37%-0.57% gains seen in US stocks last Friday. The benchmark FBM KLCI may also be cheered by news that the third quarter (3Q) gross domestic product (GDP) growth was higher than projected. Last Friday, Bank Negara Malaysia (BNM) announced that 3Q growth was 5.2% - higher than the consensus 4.7% - on strong domestic demand. Prime Minister Datuk Seri Najib Razak's announcement last Friday of 20 projects that could lure investments totalling RM26 billion to create 64,282 jobs by 2020 could be another booster. The KLCI may be positive to neutral on Monday. The US fiscal cliff problem needs to be sorted out. But we have our own fiscal cliff too, with the government spending so much money to beef up the economy, a senior investment analyst told theedgemalaysia.com. Last Friday, FBM KLCI closed 0.15% or 2.4 points lower at 1,629.28 points on concerns over the US fiscal cliff and European debt crisis. According to Reuters, US stock markets ended higher last Friday on hopes that politicians would find common ground to steer clear of the "fiscal cliff" that would hurt the US economy, while escalating tensions in the Middle East boosted oil prices. The Dow Jones Industrial Average added 45.93 points, or 0.37%, to 12,588.31. The Standard & Poor's 500 Index rose 6.55 points, or 0.48%, to 1,359.88. The Nasdaq Composite Index gained 16.19 points, or 0.57%, to 2,853.13. Stocks to watchBased on news flows, the stocks to watch on Monday may include Astro Malaysia Holdings Bhd; Malaysian Resources Corporation Bhd (MRCB); Tanjung Offshore Bhd; Mah Sing Group Bhd; and Pantech Group Holdings Bhd. Astro said a wholly-owned unit of the company has received a summons naming it as second defendant for a civil suit filed with the South Jakarta district court by PT Direct Vision against Astro All Asia Networks Plc (AAAN) for alleged tort. As second defendant, Astro's 100%-owned unit Measat Broadcast Network Systems Sdn Bhd is summoned to appear before the district court on Jan 10, 2013, according to a statement by the company to Bursa Malaysia last Friday. Astro believes the claim is in relation to on-going disputes in relation to a botched Indonesian pay-TV joint-venture that has been subject to litigation since 2008. MRCB, teaming up with a private company, has submitted a plan to the government to build a railway line for freight trains linking Serendah to Port Klang to ease congestion at the KL Sentral area, reported The Edge weekly quoting industry executives. The MRCB-led team could possibly secure the RM3 billion infrastructure development job in early 2013, the report added. Tanjung Offshore posted a deeper net loss of RM6.94 million for the third quarter (3Q) ended Sep 30, 2012, against a RM429,000 net loss in the corresponding quarter in 2011. Mah Sing may attract trading interest after Nanyang Siang Pau reported over the weekend that major Taiwanese property investors have expressed interest to purchase its properties and projects. The paper said a delegation of leading Taiwanese investors, who visited Mah Sing's projects in Kuala Lumpur, find Malaysian properties to be "relatively cheap" internationally. Fraser & Neave Holdings Bhd (FNH) — whose Singapore-listed parent Fraser & Neave Ltd (F&N) has received competing takeover bids — may be in the limelight again after its share jumped last Friday. The battle for control of F&N of Singapore may spill over to its listed subsidiary in Malaysia, analysts said. Pantech's executive director Adrian Tan told The Edge weekly that the company is expecting an increase in orders given that national oil company Petroliam Nasional Bhd (Petronas) has allocated RM170 billion in capital expenditure to boost local oil and gas production over the next five years. Tan also said Pantech, which has already seen its earnings surge in recent quarters, will benefit from new upstream local and international projects due to increase in demand for pipes and fittings used in platforms and refiners. |
https://theedgemalaysia.com/node/60250 | Khazanah completes multi-bln ringgit acquisition of 60% stake in Turkey’s healthcare provider | English | KUALA LUMPUR (Jan 24): Khazanah Nasional Bhd’s subsidiary Integrated Healthcare Holdings Sdn Bhd (IHH) made its first major direct presence in Turkey’s private healthcare industry in an acquisition deal worth 1.88 billion lira or RM3.18 billion. Khazanah said in a statement on Tuesday that IHH acquired a 60% stake in Acibadem Saglik Yatirimlari Holding A.S. (ASYH). ASYH in turn owns 92% of Turkey’s leading private healthcare services provider – Acibadem Saglik Hizmetleri ve Ticaret A.S. (Acibadem). IHH acquired the ASYH stake from Mehmet Ali Aydinlar and family and Abraaj Capital -- a private equity manager investing in the Middle East, Turkey, Asia and Africa. “This transaction values Acibadem at approximately 3.143 billion lira (RM5.308 billion) for its entire Class A and Class B share capital,” it said, adding the acquisition was financed by cash and newly issued IHH shares. Khazanah’s unit Bagan Lalang Ventures Sdn. Bhd co-invested with Integrated Healthcare and acquired a 15% direct stake in ASYH while the Aydinlar family holds the remaining 25% stake. Khazanah said the consideration amount for ASYH’s 92% stake in Acibadem comprised of 4.249 million Class A share at Turkish lira 163.60 (RM276.31) per share and 87.719 million Class B shares at Turkish lira 25.56 (RM43.17) per share. In compliance with the Turkish Capital Markets Board regulations, a mandatory tender offer will be made to the approximately 8% minorities of Acibadem. Acibadem’s founder, Mehmet Ali Ayd?nlar will continue to remain as chairman and chief executive officer of ASYH and its major subsidiaries. Following the acquisition, the Aydinlar family and Abraaj Capital will emerge as shareholders of Integrated Healthcare owning about 4.2% and 7.1% respectively. “ASYH is also Khazanah's first direct investment in a Turkish company and represents another major step for Khazanah in growing its investments in the healthcare sector,” Khazanah said. Khazanah said with the addition of Acibadem to Integrated Healthcare's existing portfolio of healthcare assets, it was positioned as one of the largest private healthcare providers in the world with a broad footprint of assets in Malaysia, Singapore, Turkey, India and with presence in China, Brunei, Abu Dhabi as well as Central and Eastern Europe.. Khazanah’s managing director, Tan Sri Azman Mokhtar said: “This landmark transaction marks another significant milestone for Khazanah. IHH, a key investee company, continues its regional expansion in a country of focus for us.” IHH chairman Tan Sri Dr Abu Bakar Suleiman said the addition of Acibadem into IHH’s portfolio would strengthen its position as one of Asia's leading healthcare services platforms. |
https://theedgemalaysia.com/node/97227 | Analysts: Turmoil not another Asian currency crisis | English | PARIS: Plunging emerging market currencies on the prospect of US stimulus tapering have stirred memories of the 1997 Asian financial crisis, but analysts doubt a similar catastrophe is in the making. “There are negative linkages (now) but I don’t think that we are in a repetition of the 1990s crisis,” said Jean Medecin, a member of the investment committee at the Carmignac Gestion asset manager. While the Indian rupee has so far taken the worst beating, falling nearly 15% against the US dollar over the past three months, Indonesia’s rupiah and the Brazilian real are down 10%, and the Turkish lira over 5% in a trend that is frightfully reminiscent of the crisis that began in Thailand in mid-1997. Back then, investors reacted by panicking, withdrawing funds en masse, resulting in the Thai bath eventually collapsing. The phenomenon then spread like a wildfire throughout Asia, and even to Russia, with foreign capital vanishing almost with the blink of an eye. Short of capital, emerging countries suffered acute shortages of credit, plunging them even deeper into the crisis. Fifteen years on, India’s Prime Minister Manmohan Singh last week said emerging countries are now much better equipped. In 1991, India had only 15 days worth of foreign exchange reserves, he said. “Now we have reserves of six to seven months. So there is no comparison. And no question of going back to the 1991 crisis,” he said. Last week, Nobel prize winning economist Paul Krugman wrote on his New York Times blog that in retrospect, the flood of money into emerging markets looks like a bubble. But Krugman said “for the moment, I don’t see a good reason to believe that the bursting of this particular bubble will be catastrophic”. Standard & Poor’s rating agency agreed. In a report, it called the capital outflows “disruptive not destructive”, and said most Asian developing nations will “weather the disruption without a sharp slowdown in economic growth or prolonged financial volatility”. Krugman said “what made the Asian crisis of 1997/98 so bad was the high level of foreign currency denominated debt, and that seems less of an issue now”. The Economist’s Ryan Avent wrote on his blog that bigger concerns are potential policy errors on behalf of governments and central banks as they try to stem the slide of their currencies. “Recklessly-imposed capital controls could fuel panic and impair long-run growth,” he said. India’s central bank has tried to stabilise the rupee for months with measures like hiking short-term interest rates and imposing capital controls. “Worse still, central banks may strangle their economies with high rates in an attempt to protect their currencies’ values,” Avent said. Thus, the end of US monetary stimulus “risks squeezing demand around the world” when its purpose was to prop it up in rich countries. Ratings agency Fitch said “policy management will be the key factor in determining whether economic and financial stability is maintained in India and Indonesia following the intensified pressure on currencies and asset prices”. Recent developments have not prompted it to revise ratings, it added. So far, however, central banks seem to prefer hiking short-term rates rather than their main rates, which would slow investment, consumption and growth. However, the current situation is “a painful adjustment phenomenon” for emerging nations, said strategist Maarten-Jan Bakkum at Dutch bank ING IM. “After years of rising currencies, emerging economies are now faced with structural problems. In the absence of remedies to cure the problem, they have corrected this through exchange rates,” he said. Simon Derrick, chief currency strategist at BNY Mellon said “letting the currency take the strain might be the smartest move for some emerging market nations”. He noted that in 2008, when emerging markets last tried to stop the outflow of funds, they failed despite spending up to 20% of their foreign currency reserves. Derrick suggested that central bank forex intervention during a time when easy money poured in only gave investors an artificially cheap exchange rate to enter the markets. “It also provides an artificially advantageous price at which to leave now.” Still, several countries have moved to defend their currencies. — AFP This article first appeared in The Edge Financial Daily, on August 26, 2013. |