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https://theedgemalaysia.com/node/84288 | What the FSB entails | English | THE Financial Services Bill (FSB) was passed by the Dewan Rakyat (House of Representatives) last November and subsequently passed by the Dewan Negara (Senate) in December. It has yet to come into force, but is anticipated to be gazetted in the coming months. When the FSB comes into force, it will consolidate the Banking and Financial Institutions Act 1989 (Bafia), Insurance Act 1996 (IA), Payment Systems Act 2003 and Exchange Control Act 1953. The FSB seeks to streamline the regulation of financial institutions (excluding those regulated by Securities Commission Malaysia under the Capital Markets and Services Act), and in step with financial regulation worldwide, introduce measures designed to promote financial stability in the financial sector. Licensing There has been no major change to the licensing regime and the requirement for a person undertaking a banking business or an insurance business to obtain a licence. These businesses continue to fall within the oversight of the Ministry of Finance (MoF) and Bank Negara Malaysia. The MoF remains the issuing authority for licences to carry out a banking business, an insurance business and an investment banking business. Certain types of businesses in the financial sector (for example, insurance broking) will only be subject to Bank Negara's approval before it can commence operations. Others (for example, adjusting businesses) appear to only require registration by way of fulfilment of certain requirements, submission of relevant documents and the circulation of a notice to Bank Negara. Leasing and factoring businesses, as well as businesses granting hire-purchase facilities, would no longer be subject to the supervision of Bank Negara. However, the MoF may on the recommendation of Bank Negara specify an entity carrying on such business as a prescribed financial institution (and hence subject to the FSB) if its business activities could pose a risk to financial stability. The FSB prescribes the general criteria that Bank Negara must consider in making such a decision. These changes proposed in the FSB scales back the level of regulation undertaken by Bank Negara while still retaining the flexibility to regulate any particular financial activity where such activity poses a threat to systemic stability. Acquisition and disposal of interest The acquisition and disposal of 5% or more of the issued share capital of a financial institution, or its controller, have always been subject to the prior approval of MoF. In fact, the approval must be obtained before negotiations can commence, and again before the definitive agreement is signed. There is no change to this two-stage approval process. Applications will continue to be made to Bank Negara although the FSB introduces a lighter and more expeditious regulatory approval process. The main difference between the FSB and existing legislation is that the approval of MoF is only required if the proposed acquisition results in the acquirer obtaining control or holding more than 50% of the equity interest in the licensed person. The FSB also allows a potential acquirer/shareholder to increase its shareholding in the licensed person without having to seek prior approval if such increase does not exceed a multiple of 5%. (For example, a shareholder who already owns 5% of the shares of a financial institution may freely purchase additional shares up to 10%, at which point another approval will be required.) Disposals no longer require the approval of MoF or Bank Negara unless the shareholder is proposing to dispose of more than 50% of its interest or if the disposal results in the shareholder ceasing to have control over the licensed person. There is no definition as to what would constitute "control" under the FSB. The FSB also provides clarity on the definition of "interest in shares", which would include a direct interest in shares, effective interest in shares and also aggregates legal and beneficial interest. These amendments now standardise the treatment of banking institutions and insurance companies, which previously had requirements that were subtly but significantly different. Another interesting change under the FSB that will affect mergers and acquisitions in the Malaysian financial services sector is the absence of a requirement to adhere to the single presence rule. This rule has hitherto prevented an acquirer from holding a significant stake in an existing insurance company or bank, from acquiring another insurer or bank. This has meant that acquirers have had to acquire the assets and liabilities of a target and merge them with the assets and liabilities of the acquirer's existing financial services entity. Financial holding company In line with the global regulation of financial institutions, the FSB introduces the concept of financial holding companies. Companies holding, or proposing to hold, more than 50% equity interest in a licensed bank or insurer have to apply to become a financial holding company (FHC). Approval of Bank Negara would be required to acquire such status. The requirement for a shareholder to attain FHC status only applies to companies incorporated in Malaysia. A major or controlling direct shareholder in a bank or insurer that is incorporated outside of Malaysia would not be subject to the FSB. Prudential requirements that apply to licensed banks and insurers apply to an FHC and its subsidiaries under the FSB. This entails having to seek the approval of Bank Negara for the appointment, election, re-appointment and re-election of the chairman, directors, CEO and the auditors of a FHC. The FHC would not be able to establish or acquire a subsidiary, whether within or outside Malaysia, unless it has obtained the prior approval of Bank Negara. Further, to maintain and promote financial stability, the FSB accords Bank Negara broad powers to issue directions to an FHC, its subsidiaries and/or senior officers. This includes the ability to prohibit or restrict transactions proposed to be carried out by a group company of the FHC as well as the right to direct that a capital raising exercise be undertaken by the FHC. These changes will transform the landscape of the financial sector in Malaysia by ensuring not only that a financial institution is sound, but also its major shareholder and management are fit and proper persons/entities. The changes also accord Bank Negara the ability to ring-fence a financial institution from other activities carried on by the major shareholder, to ensure that the risks of these other business activities do not affect the ability of the major shareholder to support the financial requirements of the financial institution. Extension of Bank Negara's powers The FSB gives power to Bank Negara to assume control over the whole or part of the business, affairs or property of the financial institution, manage it and/or appoint any person to do so on behalf of Bank Negara, in a situation where it considers the financial stability of the financial institution is at risk. As an alternative to winding up, Bank Negara can, pursuant to the FSB, designate a bridge institution to be vested with business, assets and liabilities of the distressed financial institution. The bridge institution is given a reprieve from having to be licensed under the FSB and if necessary, be exempted from compliance with the provisions of the FSB. A stay of all legal proceedings and enforcement of any judgment, award or legal order would also be in place to shelter the bridge institution. If required, Bank Negara is also authorised to provide financial assistance to the bridge institution. Director's duty of disclosure The FSB also introduces a stringent requirement for transparency on the part of directors of a financial institution and FHC. A director is required to disclose to the board of directors, the nature and extent of any direct or indirect interest in a material transaction or material arrangement with the financial institution. Following such disclosure, the interested director will have to recuse himself from the meeting, a governance standard that is higher than that prescribed even for listed companies. Insurers carrying on both life and general businesses The FSB prohibits the carrying on of a composite insurance business. A grace period will be granted for composite insurers to de-merge their general and life insurance businesses into separate entities. This would align Malaysian insurers with their counterparts in various developed countries, and will have the effect of facilitating mergers and acquisitions (resulting in a further consolidation) among insurers. Conclusion The FSB (together with the changes proposed under the Islamic Financial Services Bill) will bring far-reaching changes to the regulatory regime for financial institutions. These changes are ineluctably the most significant to have been introduced in the last 20 years. Increased prudential regulation is the central thrust of the FSB, providing for powers of Bank Negara that in many instances go beyond even those of other regulators of more mature financial markets. At the same time, some of the provisions of the FSB are intended to reduce the costs of compliance, by deregulating leasing and factoring businesses, for example, and providing for a more flexible scheme of regulation. The breadth and depth of the changes proposed by the FSB certainly achieves the stated aims of Bank Negara to strengthen the legal framework for the financial sector, to enhance Bank Negara's capacity to manage risks from financial intermediation activities that occur outside the banking system and to provide enhanced powers for timely interventions. A challenge that it faces is to convince market participants that the new regime will not result in undue costs of compliance. Brian Chia is partner and corporate and commercial practice group head of Wong & Partners, the Malaysian member firm of Baker & McKenzie International, a Swiss Verein This story first appeared in The Edge weekly edition of Mar 18-24, 2013. |
https://theedgemalaysia.com/node/49625 | 60% of new London property sold to Asians | English | LONDON: Just under 60% of new-build property sold in central London between November 2010 and April 2011 went to Asian buyers, according to a new Knight Frank study. This was driven by the favourable exchange rate and London’s status as the top destination for international property purchases, with strong capital growth potential and stable, long-term investment appeal. Hong Kong buyers were the largest group (24%), followed by Singaporeans (12%) and mainland Chinese (10%), and then other countries in the region. Knight Frank’s international project marketing team, which sells UK residential developments to the Asian markets, reported that £120 million (RM595 million) of its London property was snapped up by Asian buyers in the last two months alone, with particular success in the £400,000 to £1,000,000 price bracket. Most recently, the King’s Cross mixed-use development by King’s Cross Central Limited Partnership was launched in Hong Kong and Singapore at the start of April and became one of the most successful overseas exhibitions ever. Knight Frank also announced the strengthening of its international project marketing division in Southeast Asia, to support the huge growth in demand from the region. Residential development partner Seb Warner will move across from London to Hong Kong to head the Asia region and will be joined by Mimi Capas, who will oversee a new leasing division to support this expansion. “Asia is the fastest growing region for cross-border sales of London property. Having established this business with significant success in Hong Kong, Singapore and Malaysia, we are now rapidly expanding into mainland China,” said Neil Batty, head of Knight Frank international project marketing in a statement recently. Nick Thomlinson, Knight Frank’s senior partner added, “The decision to strengthen the existing team is a testament to the ongoing importance of the Asia-Pacific markets to Knight Frank and our clients.” This article appeared on the Property page, The Edge Financial Daily, May 27, 2011. |
https://theedgemalaysia.com/node/76039 | #Market Close* KLCI claws back to close higher | English | KUALA LUMPUR (Dec 26): The FBM KLCI reversed its earlier losses and clawed back to close higher on Wednesday, extending its gains. The local index closed 2.18 points higher at 1,671.58. The index had earlier fallen to its intraday low of 1,665.83. Gainers over took losers by 324 to 297, while 314 counters traded unchanged. Volume was 598.86 million shares valued at RM703.93 million. The yen fell to a 20-month low against the dollar on Wednesday, buoying the benchmark Nikkei stock average to nine-month highs, as Japan swore in a new prime minister eager to pursue drastic stimulus steps to drive the country's economy out of deflation, according to Reuters. Asian shares and other assets were capped in thin holiday trade, with investors focusing on the fate of US negotiations to avert a budget crunch looming at the end of the year, it said. Markets in Singapore, Malaysia, Indonesia, the Philippines and South Korea reopened on Wednesday after closing on Tuesday for the Christmas holiday. At the regional markets, Japan's Nikkei 225 rose 1.49% to 10,230.36; the Shanghai Composite Index gained 0.25% to 2,219.13; South Korea's Kospi added 0.02% to 1,982.25; Singapore's Straits Times Index up 0.39% to 3,180.81; meanwhile, Taiwan's Taiex shed 0.03% to 7,634.19. The top gainer on Bursa Malaysia was Tradewinds, which jumped RM1.16 to RM8.91 on Tan Sri Syed Mokhtar Al-Bukhary's privatisation offer of RM9.30 per each of its shares he did not already own. The other gainers were Dutch Lady, which rose 84 sen to RM46.64; Nestlé 50 sen to RM62.48; F&N 20 sen to RM18.20; Public Bank 12 sen to RM16.30; Far East and Lay Horng 10 sen each to RM7.10 and RM1.35 respectively; Theta 9.5 sen to 39.5 sen; and Shangri-La nine sen to RM4.14. Tiger synergy was the most actively-traded counter with 50.13 million shares done. The stock added one sen to 32.5 sen. The other actives included Asia Media, Permaju, DSC Solutions, Patimas, Ingenco, IGB REIT, Axiata and DVM. Decliners included Tradewinds Plantation, Carlsberg, Panasonic, United Plantations, Mentiga, See Hup, HLFG, Aeon Credit, JMR and Boxpak. |
https://theedgemalaysia.com/node/9981 | Decline in vacancy for Australia's industrial property sector | English | Set as a new bi-annual benchmarking tool for the performance of the national industrial sector in Australia, the inaugural survey in September 2008 recorded a national vacancy rate of 3.2%. The latest survey, based on data as at March 31 2009, shows a small decline in national vacancy to 2.8%. The SISS tracked ownership of 887 investment grade properties in the prime, secondary, high tech and development site segments of Australia's key capital industrial markets, comprising 16 million sq m of built gross lettable area (GLA). The survey focuses purely on properties owned for the purpose of investment returns, omitting the owner-occupier market to provide an accurate analysis of the market for investment grade industrial assets. "Australia's economic climate has changed markedly over the last year and the industrial property market has not been immune. However, the flexibility of the industrial market to changing conditions is evidenced in the findings of the report. While results vary from state to state, we recorded a slight overall decline in national vacancy for investment grade industrial," said Savills NSW research analyst Claire Cupitt, also the report's author. Over the period from September 2008 to March 2009 - vacancy has increased in New South Wales from 3.5% to 3.9%. However, for Victoria and Queensland, vacancies decreased from 2.5% to 1.9% and 4.1% to 3.0% respectively, while vacancy for South Australia (only a couple of leases effected the small market in this case) decreased from 6.5% to 1.6%. In Western Australia, vacancy remained at 0%, reflecting the lack of stock in the Perth industrial market. Cupitt added, "The increase in vacant stock in New South Wales relates to a number of vacancies, mainly in secondary stock, in Sydney's west. We expect the vacancy rate in Sydney's west to tighten over the next reporting period due to stagnant development, with tenant demand absorbing the remaining space. "The overall decline in vacancy in the other main states relates to the quick supply side in response to the lack of development funds in the market and the decline in economic conditions. Existing tenant demand has taken up remaining vacancy in the markets," she said. "We expect the general slowing in economic conditions and restrictions to investment finance to lead to a further increase in tenant retention with occupiers opting to lease for shorter time periods rather than owner occupy. Moreover, some business expansion plans may be shelved and tenants may opt to renew or extend their current leases in order to retain flexibility," said the research analyst. The study, which also surveyed over 126 million sq m of industrial land, showed that Real Estate Investment Trusts (REIT) and government sectors dominate land ownership, with strong prevalence of government land ownership in Queensland and Western Australia, reflecting the commitment of these State Governments to industrial development around their port precincts. While Queensland and Western Australia held the majority of industrial land surveyed, New South Wales is the state holding the lion's share of investment grade GLA, with 7.1 million sq m over 348 properties, while the Victorian industrial property market recorded 5.1 million sq m of GLA on 221 properties. Savills attributes this to the influx of REIT activity in Sydney's industrial property market over the last few years. |
https://theedgemalaysia.com/node/52876 | KFCH: More time for India | English | KFC Holdings (M) Bhd(Oct 6, RM3.19)Maintain hold at RM3.20 with a revised target price of RM3.37 (from RM3.97): Slower economic growth is likely to have some dampening effect on consumption demand. Therefore, we have lowered our same-store-sales growth assumption by 0.5 percentage point for 2012 to 1.3% and 1.5% for 2013 and trimmed our profit forecasts for 2012 and 2013 by 5% each year. Our discounted cash flow-based target price is cut to RM3.37 from RM3.97 on lower earnings and a higher cost of equity of 8.6% from 7.9% previously on account of higher economic risks. Valuations are still not appealing, with KFCH trading at a prospective 2012 price-earnings ratio (PER) of 14.2 times and dividend yields of just 2.1%. The group has closed 10 non-performing Rasamas outlets year-to-date, taking the number of outlets down to 29 from 39 as at end-2010. Rasamas’ contribution to the group’s total revenue has dropped from 1.2% in 2008 to just 1% in 2010. The 534 domestic KFC outlets have continued to perform.The average ticket has surpassed RM20 to RM21.50 with the introduction of new products, promotions, and improvements at its drive-through windows. While the management is targeting 28 new outlets in India in 2011, we have factored in 23. The management’s intention is to have 15 restaurants by end-2011 (nine presently) and 30 restaurants by end-2012. Breakeven is expected at around 25 outlets, and is likely to happen only in 2013. As at end-2010, India contributed 3.3% of total revenue in the restaurant segment, compared with 79% of the operations in Malaysia. KFCH’s price-to-book valuation at the lowest point during the global financial crisis in 2008 was 1.6 times, against 2.3 times for 2011 presently. Based on our estimated book value per share of RM1.56 for 2012, the estimated trough in share price would be about RM2.50. KFCH traded at a trough PER of about nine times, against 14.8 times presently. Our base case has factored in slower economic growth but not a recession. We do not expect trough valuations to be revisited. — Maybank IB Research, Oct 6 This article appeared in The Edge Financial Daily, October 7, 2011. |
https://theedgemalaysia.com/node/96601 | JPMorgan close to picking two new directors - source | English | NEW YORK (Aug 21): JPMorgan Chase & Co is
close to naming two new directors with finance and risk
management expertise to its board, a source close to the matter
said, as the largest U.S. bank faces a new wave of regulatory
scrutiny. The bank has identified the candidates but the board has not
yet voted on them, the source said on Tuesday, adding that a
decision is likely to come in September. The names of the
candidates could not be learned, although sources have said that
Chairman and Chief Executive Jamie Dimon has extensive say in
who is named to the board. The new directors, who replace long-time board members David
Cote and Ellen Futter, will join at a tense time for the bank.
JPMorgan has become the target of several new investigations,
the most recent of which, according to a source familiar with
the probe, is a preliminary inquiry by the U.S. Department of
Justice into whether the bank had manipulated energy markets. JPMorgan's board has been pressuring Dimon to improve the
bank's relationship with regulators, after a U.S. Senate
subcommittee report in March detailed how the executive demanded
the bank withhold trading data from one of its regulators, and
later yelled at a subordinate who provided the data. The onslaught on the bank is a distraction for JPMorgan
executives but is unlikely to let up until regulatory focus
turned to another bank, the source said. Dimon, the source said,
was "stoic" as he navigates the situation. Another person who knows Dimon said the CEO dislikes having
to spend so much time at management and board meetings
discussing probes and settlements instead of regular business. Dieter Waizenegger, executive director of the CtW Investment
Group, which had campaigned this year against the re-election of
Cote and Futter, said he hopes that new board members have
experience in bank regulation so that they can help repair the
company's standing with the government and better guard against
trading losses. The so-called London Whale trades cost the bank more than $6
billion and have led to criminal charges against two of its
former traders. Cote and Futter, who came under investor fire
for failing to prevent the losses, resigned in
July. "The company got off on the wrong foot with
regulators earlier this year, so someone who understands this
would be helpful," said Waizenegger, whose group is a JPMorgan
shareholder. All told, JPMorgan is subject to more than a dozen probes in
multiple countries. In addition to the Justice Department probe, investors
recently learned that the U.S. Securities and Exchange
Commission is investigating whether the bank ran afoul of laws
that forbid bribery overseas. The bank has also said that a
federal investigation in California had preliminarily concluded
that the bank violated securities law when it sold mortgage
bonds from 2005 through 2007. The heightened scrutiny could weigh on profits at the bank,
which said in its most recent quarterly filing with regulators
that additional losses from litigation, beyond what it has
already set aside, could be up to $6.8 billion. Charles Peabody, a banking analyst at Portales Partners,
said litigation costs for JPMorgan and other firms could rise in
coming quarters. - Reuters |
https://theedgemalaysia.com/node/92557 | Hot Stock: Al-Hadharah Boustead REIT jumps 10% on proposed privatisation | English | KUALA LUMPUR (July 17): Top gainer Al-Hadharah Boustead REIT jumped as much as 10% on the proposed privatisation of the oil palm plantation-based entity by its controlling shareholder.
At 11.05am, Al-Hadharah Boustead was traded at RM2.03 with some 741,000 shares done. The stock had earlier risen as much as 19 sen to RM2.06. Boustead Holdings Bhd said yesterday it planned to privatise Al-Hadharah Boustead via a selective unit redemption and repayment (SUR) exercise. Under the SUR, holders of Al-Hadharah Boustead units will receive a cash repayment and special dividend amounting to a total of RM2.10 per unit. In a note today, Kenanga Investment Bank Bhd said at RM2.10 per unit, the privatisation of Al-Hadharah Boustead works out to 1.1 times consensus FY14 book value. Kenanga said the valuation appears cheap compared to the industry average of 1.2 times. "Since Al-Hadharah Boustead is smaller in terms of earnings base and market capitalisation compared to other bigger REIT players, it should trade at a discount. "As such, we believe the marginally lower valuation is fair," Kenanga said. Boustead Holdings shares have also risen. The stock jumped as much as 26 sen or 5% to RM5.52 before trading lower at RM5.39 at 10.59am with some 350,000 shares done. Kenanga is maintaining its "market perform" call and target price of RM5.52 for Boustead Holdings. |
https://theedgemalaysia.com/node/53298 | AMMB advances in early trade | English | KUALA LUMPUR: AMMB Holdings Bhd shares advanced on Tuesday, Aug 16 after its net profit for the first quarter ended June 30, 2011 rose 19.9% to RM441.52 million from RM368.28 million a year earlier, underpinned by higher income growth as well as improved asset quality with lower charge offs and allowances. At 9.04am, AMMB added four sen to RM6.52 with 35,500 shares traded. Revenue for the quarter rose to RM1.95 billion from RM1.70 billion in 2010. Earnings per share was 14.75 sen, while net assets per share was RM3.54 MIDF Research maintained its Buy call on AMMB and raised its earnings forecast for FY12 by 12% after taking into account stronger growth in non interest income, improved asset quality as well as consistency in operating expenses against total income. “We maintain Buy recommendation for AMMB with target price of RM7.30 by ascribing a PE of 13.4X against FY12 EPS of 54.4 sen. We have ascribed a lower PE of 13.4X which is the 5 years average of the PE band. “Moving forward, AMMB will embark on a 3 years plan to improve return from FY12-FY14. Key strategies of AMMB are profitable growth and rebalancing, diversification and new business development, non-interest income and deposit growth, and customer centricity,” the research house said on Aug 16. |
https://theedgemalaysia.com/node/90660 | CBIP’s unit bags RM15.8m contract | English | KUALA LUMPUR (July 1): CB Industrial Product Holding Bhd (CBIP) announced that its unit Modipalm Engineering Sdn Bhd has been awarded a RM15.8 million contract to build a “Continuous Sterilization” mill project for a palm oil mill in Pahang. The project involves mechanical and electrical works for upgrading to “Continuous Sterilization system”. “The letter of award (today) is expected to contribute positively to the earnings of our group for the financial year ending December 31, 2013,” said the company. |
https://theedgemalaysia.com/node/34769 | Axiata to sell bulk of RM4.2b sukuk to EPF? | English | KUALA LUMPUR: Axiata Group Bhd is expected to sell the bulk of its planned RM4.2 billion Islamic bonds to the Employees Provident Fund (EPF), sources said. “There’s a signing ceremony with the EPF next week and the provident fund is taking up about RM3 billion. There will be two other investors on top of the provident fund,” said a source familiar with the matter. Bloomberg yesterday quoted Axiata’s chief financial officer Datuk Yusof Annuar Yaacob as saying in an interview with the news agency that the country’s second-biggest mobile phone operator planned to sell RM4.2 billion of Islamic bonds next week to refinance debt. He was reported as saying that the sukuk, which will have maturities of five, seven and 10 years, would be privately placed out. Axiata had hit its 52-week high of RM4.32 on Tuesday, but eased to close at RM4.30 yesterday. Its 52-week low stood at RM2.91 on Oct 29, 2009. This article appeared in The Edge Financial Daily, August 5, 2010. |
https://theedgemalaysia.com/node/74922 | MCA:Wanita DAP belated elections hypocritical | English | KUALA LUMPUR (Dec 10): Wanita MCA today criticised Wanita DAP for being "very hypocritical" in espousing democratic rhetoric when the latter only conducted its election for the first time in four decades. In a statement, Wanita MCA chairman Datuk Yu Chok Tow said Wanita DAP's first ever election yesterday, despite being established since 1972, was "against women's empowerment and deeply regrettable". "DAP claims to uphold high standards of human rights, vowing to defend democracy and freedom. However, within their own party, they do not conduct democratic practices, which thus make them very hypocritical indeed," Yu said. However, Wanita DAP chief Chong Eng had earlier explained that the party's women's wing had never held elections before because it previously did not have enough members to form divisions. Chong, the long time MP for Bukit Mertajam, added that Wanita DAP's membership rose steadily after the 2008 general election which enabled the party to set up 40 women's divisions. Chong was appointed DAP Wanita chief 12 years ago and was chosen again to that position yesterday after securing the highest number of votes. |
https://theedgemalaysia.com/node/8481 | Heating up sales in a downturn | English | One powerful method to boost both revenue and margins is to raise the productivity of your sales force. In good times, increasing sales force effectiveness helps companies grow faster; in a downturn, a scientific approach that puts systems around the art of selling can be critical to keep revenue flowing without cutting margins. The first step is to develop a data-driven “heat map” of accounts and prospects. Every company has its best customers, those that are the most profitable and typically the most loyal. Sales executives usually identify them by analysing win rates, revenue, relative market share and profitability among customer segments. But a downturn like this one demands an even sharper focus. Managers and sales representatives need to know exactly which customers will continue buying. Which have strong cash positions, good access to credit, or both? Which companies or individuals should be your best customers? In a down market, many companies are re-evaluating their suppliers. That creates opportunities to steal share from a distracted competitor. All these high-potential customers are the hot spots in an otherwise cooling economy. Once you have a sense of who they are, you can draw a heat map of the market to guide your sales efforts. Managers can screen out the opportunities that don’t fit the map and focus reps’ efforts on those that do. With the longer sales cycles of a downturn, companies’ selling resources are stretched across more accounts, and managers have to make certain they are aimed at the right targets. A few months ago, for example, a broadcasting company refocused its advertising sales team on a few hot segments. One was health-care providers, which appeared to be less affected by the downturn. Another was speciality retailers, which desperately needed advertising to counter declines in consumer spending. After just two months, sales in the broadcaster’s two test regions were up 90% and 450%. The heat map also helps to reassess territories and quotas. Do territories correspond appropriately to the map? Are quotas realistic in light of the new conditions? One mid-size network equipment company we studied had been pursuing 15 different industry segments. But its heat map showed that just five of those segments accounted for most of its revenue and profits. So it redesigned territories and reset quotas accordingly. With longer sales cycles, managers need to ensure that reps have realistic assessments of when they expect sales to close. The key here is careful forecasting, tracking, and discussion of major opportunities. Even if elapsed time increases, the company should have internal benchmarks on conversion rates from one stage to the next, and historical win rates relative to major competitors — and should apply those benchmarks rigorously. Some companies create a “deal war room”, with the heat map on the wall, to ensure that this kind of discipline is applied consistently. Sales managers face two other challenges in a down market. One is to maximise the time that reps spend in front of the high-potential customers highlighted by the map. You may want to measure the time that reps are with customers compared with total time. If it is less than what you think it should be, or less than benchmarks for your industry, consider channelling some of the reps’ administrative functions to support staff or simplifying the systems that the reps are expected to deal with. A few years ago, Cisco Systems streamlined its sales reps’ administrative chores and freed up a few hours of additional selling time in each rep’s week. The other challenge is controlling costs, which may entail streamlining and rationalising the sales force. Most companies use a variety of sales channels: enterprise or other direct sales, telephone sales, dealers or value-added resellers, and the Internet. Detailed information about the behaviour and profitability of customer segments and microsegments from the heat map, as well as data about the productivity of existing selling efforts allow sales executives to decide how best to deploy these different resources. To keep costs low, for instance, a company may decide to beef up its telesales operation and replace underperforming in-field reps. No downturn lasts forever. When the recession thaws, your sales organisation should be positioned to capitalise on pent-up demand. Companies that win during turbulence often recruit top sales talent from competitors, or may even pursue acquisitions and integrate the acquired company’s best sales reps with their own. A heat map helps show the way to that future. Satish Shankar is the leader of business consulting firm Bain & Co’s Southeast Asia consumer products practice. Dianne Ledingham is a leader of Bain & Co’s sales force effectiveness group, within the firm’s customer strategy and marketing practice area. Adapted from Bain & Co’s forthcoming book, Winning in Turbulence, published by Harvard Business Press. This article appeared in the Manager@work, the monthly management pullout of The Edge Malaysia, Issue 756, May 25-31,2009. |
https://theedgemalaysia.com/node/948 | Soho's newest hotel | English | LONDON: The Sanctum Soho Hotel located at Warwick Street, London, is the newest boutique hotel on the block this March, with its fun entertaining interiors that pay homage to its owner, former music manager turned nightlife impresario, Mark Fuller. Spread out over 2,000 sq m, this £10 million 30-room property takes luxurious living to an edgy but cool level that includes an underground cinema, private rooftop garden and alfresco Hydro Spa, to name a few. This is one place you want to be caught in. Designed by Lesley Purcell from Can Do Architects, the hotel is made up of two Victorian townhouses imbued with a music and entertainment personality synonymous with Fuller’s background. The chosen colour scheme reflect the eccentricities and frivolity of the music and entertainment industry with sexy and masculine deep browns to glittery silver, sensual pinks and exotic mauves. Out of the 30 rooms, there are seven suites and two rooms are disabled accessible, that don’t come with some boring regular description but a hip and happening one such as “crash pad”, where no two rooms look the same. Moreover, there is also a stunning rock star rooftop apartment with its own outdoor garden. Facilities will appeal to the modern urbanite with iPod docking stations, DVD players, Wii game consoles, WiFi while sleeping on 400 thread count Egyptian cotton sheets, amongst others. The piece de resistance is the underground 45-seater “Cinema at Sanctum” for residents and their guests or can be hired for a private function. It comes with its own bar and removable furniture which can morph the room into a meeting and function space for 100.Room rates start at £145 for a “crash pad” or £260 for a superior double, based on double occupancy. Further details are on www.designhotels.com/sanctumsoho |
https://theedgemalaysia.com/node/95627 | MBA Tour comes to KL | English | KUALA LUMPUR: The MBA Tour, an independent resource for business school admissions, has included Kuala Lumpur to its Asian tour itinerary for the first time this year. The MBA Tour will bring representatives of the world’s leading business schools to its MBA Conference to be held here on Sept 12, 2013. The MBA Tour aims to offer reliable information and guidance on admissions to executives who are interested in enrolling into business school. To attend this free conference, individuals must first register their details at the MBA Tour website. Executives exploring business school options will find the September conference particularly useful in their research of the world’s top schools. Participants can also expect to learn more about the strengths and specialisations of participating schools and how admission decisions are made. This article first appeared in The Edge Financial Daily, on September 02, 2013. |
https://theedgemalaysia.com/node/15696 | DiGi announces capital distribution of RM495m | English | DiGi.Com Bhd(May 2, RM4.04)Maintain buy at RM4.04 with target price of RM4.30: DiGi added 16,000 new customers in 1QFY12 (4QFY11: 303,000). The net addition of new customers was lower than the previous quarter due to high churn resulting from seasonally high net additions in the previous quarters. In terms of mobile Internet customers, DiGi continued to report a higher number of small screen users, which totalled 5.3 million at the end of 1Q12, against 5.2 million at the end of 4Q11. Prepaid average revenue per user (ARPU) remains stable at RM41 and postpaid RM85 (4QFY11: RM42 and RM86). DiGi is still waiting for the final decision from the Malaysian Communications and Multimedia Commission (MCMC) on the final allocation for the 2600 MHz spectrum. As for the other spectrum bands including the 900 MHz and 1800 MHz, DiGi has yet to receive any news with regard to the re-allocation process. The telco commenced physical Radio Access Network (RAN) swap in 4Q11, and is on target to complete the network swap by end-2012. DiGi aims to complete the rollout of its new unified mobile network; “The Tomorrow Network”; capable of delivering 2G, 3G and 4G/LTE from a single base station site by end-2012. This will enable the swift rollout of 4G/LTE services once the necessary spectrum is made available, bringing high-speed Internet and next generation services to more Malaysians through larger coverage. We are maintaining our FY12 net earnings at RM1.33 billion and FY13 at RM1.4 billion. DiGi has proposed a first interim dividend of 5.9 sen (tax exempt). With this, we are raising our FY12 dividend forecast to 20 sen from 18 sen for FY12 translating into a yield of 5%. On top of this, DiGi announced a capital distribution of RM495 million or 6.4 sen per share to shareholders, expected to be completed by 1QFY13. Our target price is unchanged at RM4.30, using discounted cash flow methodology (weighted average cost of capital assumption 8.6%). Coupled with a dividend yield of 5% and share price upside of 6.4%, the stock offers potential total return of 11.4%, and we maintain our “buy” recommendation on DiGi. — BIMB Securities Research, May 2 This article appeared in The Edge Financial Daily, May 3, 2012. |
https://theedgemalaysia.com/node/25641 | No sweet tweet on West Ham | English | KUALA LUMPUR: The man who made it possible for everyone to fly, AirAsia Bhd CEO Datuk Seri Tony Fernandes, did not seem to be in high spirits yesterday. “Deal lost on west ham,” he tweeted on the popular social network after failing to land West Ham United, his favourite English Premier League football club. In late December last year, Fernandes ruled out bidding for West Ham, saying he was busy managing local F1 team Proton Lotus 1Malaysia despite news reports that he had met up with West Ham manager Gianfranco Zola after the East London team’s match against Portsmouth. Later, the UK’s Telegraph revealed that Fernandes had been close to agreeing a deal with West Ham chairman Andrew Bernhardt sometime ago. Earlier reports suggested that he had gained the support of many West Ham fans, who were getting tired of the club’s financial uncertainty. West Ham’s chaotic financial situation began when the club was bought over by an Icelandic businessman Bjorgolfur Gudmundsson in 2006. The situation took a turn for the worse after the collapse of Iceland’s banking system, which dragged down Gudmundsson’s business empire. West Ham was £80 million (RM436 million) in debt when its control was handed over to a new company called CB Holdings, a 70% subsidiary of Icelandic bank Straumur. The club confirmed that the race to Upton Park was won by David Sullivan and David Gold, former owners of Birmingham City, who secured a 50% stake from CB Holdings reportedly at £105 million with an option to acquire the remaining shares. However, Sullivan said he was keen to speak to Fernandes about a possible investment in the future. “We have bought 50% and I have an option to buy the other 50%,” Sullivan told the BBC. “If they (wealthy fans) want to get involved with West Ham they will be very welcome. Anyone who wants to put in £10 million or £15 million can buy 10% or 15% of the club and come along and join us. “We will be approaching Tony in the hope that he will join us in a kind of national unity purchase of West Ham. We will welcome other investors,” added Sullivan. Meanwhile, Fernandes said through his Twitter account: “Hopefully, the new owners protect what’s good. We gave (an) awesome deal and new ideas to rejuvenate a club and bring excitement.” This article appeared in The Edge Financial Daily, January 20, 2010. |
https://theedgemalaysia.com/node/73190 | Are we creating our own fiscal cliff? | English | THE long and bitter US presidential election campaign is finally over and Barrack Obama has won a hard-fought second term. Unsurprisingly, political analysts have wasted no time in offering their take on this historic outcome. Beyond that mystical number crunching, three key factors emerge. First, Obama's victory is a testament to a changing America. Obama won in the face of a weak economy by riding the expanding new American political coalition: Hispanics, African-Americans, young voters and women. In contrast, Mitt Romney continued to depend on the fading old American power base: older, whiter and more religiously conservative voters. That enabled Obama to crush Romney decisively among Hispanic voters by a whopping 44 points, a margin of victory that propelled Obama to victories in Nevada, Colorado and possibly Florida. In this high-stake presidential campaign, Obama's Democrats once again demonstrated their superbly sophisticated and efficient campaign machinery. With the help of extensive voter data and analytics, Obama's campaign machinery was able to find, persuade and mobilise voters to support him. And this modern electioneering tactic is simply unrivalled. With the economy as the central theme of this presidential election, many were surprised to see Obama quite comfortably beating Romney, a candidate who is widely regarded as more competent in turning around the troubled US economy. This occurred despite the commonly held fact that economic management is arguably the weakest point of the Obama administration's first term. Many believe the incumbency advantage played a critical role here in tipping the scale in favour of Obama. When there is an incumbent that voters think has not done a good job and a challenger that voters doubt, they would prefer to maintain the status quo by keeping the incumbent. No doubt the US presidential election has also been closely watched by the political operatives from both sides of the political divide in Malaysia. Definitely, many election tactics and strategies used in the just concluded US presidential election will be adopted and applied in the soon-to-be-called 13th general election. Yet we must not lose sight of the bigger and more critical question: What's next after winning the election, be it in the US or Malaysia? This is precisely the problem confronted by President-elect Obama after winning his second term on Nov 7. What awaits Obama is the dreadful fiscal cliff. The world is keenly waiting to see how Obama tackles this, which experts warn could send the US economy into a recession if not addressed by Dec 31 — triggering automatic spending cuts and a tax increase worth US$7 trillion over a decade. In addition, the debt ceiling will need to be raised early next year. Failure to avoid the fiscal cliff and raise the debt ceiling as well as secure an agreement on credible deficit reduction would likely result in another rating downgrade in 2013. In 2011, a fight over the US budget between the White House and Congress saw the nation lose its AAA credit rating by Standard & Poor's. Hence, the real test for Obama in his second term is his ability to tackle the dreadful fiscal cliff, reduce the mammoth budget deficit and create more sustainable jobs. In doing so, he has no choice but to reform the ever-sensitive and polarised tax system, entitlement programme and the role of the government. Make no mistake, our coming general election is equally crucial to Malaysia, given that the long-term outlook for fiscal sustainability and economic well-being of the nation will hinge on the next government's reform agenda and response to external uncertainties and domestic challenges. Externally, the worsening European debt crisis, the uncertain US economic recovery and the slowdown of China's economy have increased fears of another global economic recession. Our overdependence on petroleum money, addiction to subsidies and suspected systemic leakages and wastages in public finance are three structural problems confronted by our policymakers. But we also fear the recent rise in populism, which promotes handouts and goodies, will breed an entitlement mentality and evolve into another addiction, or another sacred cow, which is a taboo subject for any sensible debate later. Already, we have witnessed how populism has made the government more short-sighted and politicians more reckless and less likely to press ahead with intractable issues — like the long-overdue civil service reform — which requires a long-term commitment and strong political will. Our 1.3 million civil servants are arguably the biggest beneficiaries of the populist measure currently being rigorously pursued by both Barisan Nasional and Pakatan Rakyat. Yet we must not ignore the fact that emoluments, which include salaries, allowances, bonuses and pensions, make up 40% of the government's operating expenditure. Populism prevents the government from examining, let alone solving, underlying problems. While both BN and PR agree that it makes economic sense to make the bloated civil service leaner and meaner, it is politically foolhardy as the mere mention of it would cause a massive loss of votes. Similarly, the continued putting off of the politically risky but economically necessary plans to implement the goods and services tax (GST) and subsidy rationalisation, out of fear of their unpleasant socio-political impact and high political cost, has unintentionally brought us closer to what caused the dreadful US fiscal cliff in the first place — a reluctance to reform its tax system and entitlement programme (its various universal social safety schemes). The question now is, driven by populist policies, are we breeding more sacred cows and, hence, creating our own "fiscal cliff" in the not-too-distant future?Khaw Veon Szu, a former executive director of a local think tank, is a practising lawyer. The opinions expressed in this article are the writer's own. This story first appeared in The Edge weekly edition of Nov 12-18, 2012. |
https://theedgemalaysia.com/node/99288 | #SE Asia Stocks* Stronger on U.S. Fed hopes, China economy data; Bangkok, Jakarta lead | English | Sept 9 (Reuters): Southeast Asian stocks made strong gains on Monday, led by Thailand and Indonesia, on China's upbeat export data and hopes that the U.S. central bank would delay, or be less aggressive in, tapering its monthly bond purchases. Thailand's main stock index jumped 3.6 percent — its highest daily gain since July 11, to hit a three-week closing high, led by banks. Jakarta's Composite Index recorded its highest gain since June 28, rising 2.9 percent to its peak since Aug. 30, also helped by Indonesia's financials. Regional share markets staged a mild rebound last week, following a plunge in August, amid rising risk aversion and concerns about a potential cut in monetary stimulus in theUnited States. However, disappointing U.S. job data has sparked views that the Fed could cut its stimulus by less than what was anticipated. Singapore's Straits Times index also jumped 1.3 percent to a two-week high, led by banks. DBS Group shares gained 2.3 percent, United Overseas Bank was up 1.9 percent and Oversea-Chinese Banking Corp rose 1.2 percent. Stock indices in Malaysia gained 1.4 percent to a three-week high, and the Philippines rose 0.4 percent. Vietnam's main stock index bucked the trend, to fall 2.1 percent on profit taking in blue-chip firms. |
https://theedgemalaysia.com/node/36650 | Petronas to list Petronas Chemicals | English | KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) is looking to list its petrochemical arm Petronas Chemicals Group Bhd on Bursa Malaysia’s Main Market, with the national oil corporation remaining as Petronas Chemicals’ controlling shareholder following the initial public offering (IPO). The prospectus exposure filed on the Securities Commission (SC) website yesterday did not state how much Petronas Chemicals intended to raise or specify a time frame for the IPO to be completed. Market speculation is that the IPO may raise about US$2 billion (RM6.24 billion). Petronas Chemicals, which is the umbrella company for Petronas’ 22 petrochemical-related companies, has an authorised share size of 15 billion shares and an authorised share capital of RM1.5 billion. “The final retail price will be determined after the institutional price is fixed on the price determination date and will equal the lower of the retail price and a percentage of the institutional price, subject to rounding to the nearest sen,” Petronas Chemicals said in the draft prospectus. The joint global coordinators and joint bookrunners for the IPO are CIMB Investment Bank Bhd, Deutsche Bank AG (Hong Kong branch) and Morgan Stanley and Co International plc. CIMB Investment Bank is also the principal adviser and managing and retail underwriter. For the year ended March 31, 2010, Petronas Chemicals posted a net profit of RM2.59 billion on the back of RM12.2 billion in revenue. The group had total assets of RM26.89 billion and reserves excluding minority interests of RM17.07 billion as at March 31, 2010. For the same period, Petronas Chemicals’ gross profit margin was 29.8%. The petrochemical industry’s profit margins have historically been cyclical, depending on the changes in supply and demand, as well as the volatility of international market prices for petrochemical products. Under the IPO, Petronas Chemicals is offering for sale existing shares to institutional and retail investors, as well as the public issuance of new shares to Malaysian, foreign institutional and selected investors at the institutional price. Under the institutional offering, a portion of shares would be available to Malaysian institutional and selected investors as well as bumiputera investors approved by the Ministry of International Trade and Industry. Part of the institutional offering would also be placed out to institutional and selected investors outside the US, and cornerstone investors. As for the retail portion, an unknown percentage of the offer shares would be set aside for Malaysian citizens and bumiputera individuals, companies, cooperatives, societies and institutions. Apart from that, a portion of the offer shares has been reserved for eligible directors and employees of Petronas Chemicals and Petronas as well as eligible customers and others “who have contributed to the success” of the group. In the draft prospectus, Petronas said the listing of Petronas Chemicals was to gain better access to funding in the capital markets, which would increase the company’s financial flexibility to pursue future growth opportunities. Petronas Chemicals said it intended to strategically increase its production capacity through enhancements to its existing facilities and potentially through investment in new facilities. Petronas Chemicals added that it intended to examine the possibility of adding new plants and facilities in Malaysia to further capitalise on the country’s advantages as a petrochemical production hub. “We may also review opportunities to expand our production capacity outside Malaysia. In particular, we are studying the possibility of developing a greenfield ammonia and urea production facility that would be supplied with natural gas feedstock available off the coast of East Malaysia,” it said. Petronas Chemicals’ IPO is one of the two listings eyed by Petronas this year. The other is Petronas subsidiary MISC Bhd’s heavy engineering arm Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE). The two planned listings of Petronas’ subsidiaries followed an announcement by Prime Minister Datuk Seri Najib Razak during his keynote address at Invest Malaysia 2010. Najib had also said the government would reduce its ownership in government-linked companies in a move to boost liquidity in the stock market. Petronas’ other listed companies are Petronas Dagangan Bhd, Petronas Gas Bhd, and KLCC Property Holdings Bhd. Petronas Chemicals, formerly known as Kuantan Terminals Sdn Bhd, is the leading integrated petrochemicals producer in Malaysia and is among the largest in Southeast Asia. The group is primarily involved in manufacturing and selling a range of petrochemical products including olefins, polymers, fertilisers, methanol and other basic chemicals and derivative products. With over 25 years of experience in the industry, Petronas Chemicals has a total production capacity of over 11 million tonnes per annum. It operates mainly in Malaysia and the Asia-Pacific. This article appeared in The Edge Financial Daily, September 8 2010. |
https://theedgemalaysia.com/node/78219 | SC: A record year for capital raising | English | KUALA LUMPUR: The Securities Commission Malaysia (SC) said a record RM145.9 billion was raised through corporate bonds and initial public offerings (IPOs) in 2012, an increase of 89% from RM 77.2 billion in 2011. In a statement on the fourth quarter (4Q) scorecard, it said a total of RM123.8 billion worth of issuances were made in the corporate bond market, a 73% increase from RM71.2 billion in the previous corresponding quarter. It thus represents the highest amount raised to date with sukuk issuances amounting to RM97.5 billion or 79% of total bond issuances. A total of 46 applications for corporate proposals (for 4Q of 2012) were recorded compared with 35 applications in the previous quarter, it added. The regulatory agency said 72% of the applications received were in relation to private debt securities (PDS). Also, there were six IPO applications received for the Main Market compared with five from the preceding quarter. Twenty-six PDS and six IPO applications were expected to raise RM25.2 billion; 29 new collective investment schemes and 8 private retirement schemes were approved in the fourth quarter of 2012 by the regulatory agency. Funds raised from IPOs more than tripled to RM22.1 billion from RM6 billion in 2011, stated the SC. This article first appeared in The Edge Financial Daily, on February 5, 2013. |
https://theedgemalaysia.com/node/42715 | Insider Moves: Dec 20-26, 2010 | English | Notable filingsOne of the more notable changes in shareholding for the week of Dec 3 to 10 took place at construction outfit Kumpulan Jetson Bhd. Its founder Datuk Teh Kian An increased his stake after acquiring 4.37 million shares, or 7.21% equity interest, at RM1.05 per share in an off-market trade. With the acquisition, Teh’s stake is 13.55%. Teh acquired the shares from Superior Pavilion Sdn Bhd, the vehicle of brothers S M Nasarudin and S M Faliq S M Nasimuddin, sons of the late motor czar Tan Sri S M Nasimuddin S M Amin of Naza Group. The brothers bought into Jetson in August last year. With the sale of the block, they still have about 21.66% equity interest in the construction company. They also stepped down from their non-executive board positions following the sale. Jetson hit a 52-week low of 91 sen on Dec 8. The counter ended trading last Wednesday down 2.5 sen at 93.5 sen. Bertam Alliance Bhd saw Bond Resources Sdn Bhd buying an additional 10 million shares (4.84% stake), raising its shareholding to almost 16% or 33.06 million shares. Bond Resources could have picked up the block of shares from Miramas Development Sdn Bhd, which had trimmed its stake to 14.71% or 30.42 million shares. According to Bertam Alliance’s latest annual report, Miramas Development is the vehicle of Ng Sing Hwa, Ng Chee Hua, Ng Wei Wei and Ng Eu Jin. Sing Hwa is the executive chairman of Bertam Alliance. According to the Companies Commission of Malaysia, Bond Resources’ shareholders are Gan See Hing (66.22% stake), Tee Ah Seong (20.53%) and Tan Joo Keng (13.24%). Gan and Tee are directors of the company. At ACE Market-listed Ecofuture Bhd, Jang Kim Luang @ Yeo Kim Luang sold off a total of 40 million shares or 16.23% equity interest in the company at four sen a share. With the sale, Jang, who is the company’s executive chairman and managing director, trimmed her stake to 10.81% or 26.67 million shares. Jang’s block could have been acquired by Chow Chuin Hai, who has amassed 67.83 million shares or a 27.52% stake in Ecofuture. Chow was appointed non-independent, non-executive director of Ecofuture in early December while his brother, Chuan Fat, was appointed executive director earlier in the month. Chow emerged as a substantial shareholder in mid-December with 11.29% equity interest. Fantastic Revenue Sdn Bhd ceased to be a substantial shareholder of Tecnic Group Bhd when it hived off four million shares or a 9.9% stake for RM2.23 per share. Fantastic Revenue is the vehicle of Ang Seng Hing and Tan Siew Ping. Graceful Assessment Sdn Bhd, the private vehicle of Datuk Gan Kim Huat, acquired the block. Tecnic’s share price closed unchanged at RM2.38 last Wednesday. Notable movementsSince hitting a 52-week low of 31 sen on Dec 3, oil and gas company Scomi Group Bhd’s share price gained almost 16% to close at 37 sen last Wednesday. Trading volume has been relatively heavy with Kaspadu Sdn Bhd selling its shares. Kaspadu sold 6.25 million shares at 32 sen apiece during the week, trimming its stake to 14.75% or 172.17 million shares. The company is the vehicle of Shah Hakim @ Shahzanim Zain and Datuk Kamauluddin Abdullah. Kamaluddin, the son of former premier Tun Abdullah Ahmad Badawi, is said to be looking to exit Scomi Group. Land & General Bhd’s shares have been actively traded lately. The counter has slipped 18% since early November, after the Employees Provident Fund (EPF) started selling its shares. The EPF sold 9.6 million shares or 1.6% equity interest during the week in review and ceased to be a substantial shareholder. As at end-July, the EPF had a 9.86% stake or 58.97 million shares in the property developer. Land & General shed one sen to close at 47.5 sen last Wednesday. This article appeared in Capital page of The Edge Malaysia, Issue 837, Dec 20-26, 2010 |
https://theedgemalaysia.com/node/542 | KLCI dips below 900 midday | English | KUALA LUMPUR: The key 100-stock KL Composite Index fell below the key 900-level at midday on Tuesday, dragged by losses in Tenaga while Asian markets also retreated on growing recession concerns. At 12.30pm, the KLCI had fallen 8.25 points or 0.91% to 898.94. Turnover was 148.69 million shares valued at RM171.81 million. Declining stocks beat advancers 265 to 80 while 169 counters were unchanged. Asian markets fell, with Hong Kong’s Hang Seng Index down 2.95% or 396 points to 13,059.58, the Nikkei 225 fell 1.65% to 7,622.01 while Singapore’s Straits Times Index lost 1.15% to 1,661.41 and Shanghai’s Composite Index 0.52% lower at 2,376.97. Light crude oil fell 76 cents to US$36.75 while the crude palm oil futures rose RM3 to RM1,925. The ringgit was quoted to RM3.631 to US dollar. PacificMas fell 25 sen to RM2.30 with 1,000 shares done. It announced yesterday the Securities Commission had approved its proposed internal restructuring via the transfer of PacificMas Asset Management Sdn Bhd’s entire business (excluding liquid assets consisting of investment in unit trusts, deposits with financial institutions, cash and bank balances, dividend receivable and interest receivables from all the aforesaid) to Pacific Mutual Fund Bhd. BAT fell 25 sen to RM43.75 with 107,100 shares done. IRM Group lost half of its value, down 25 sen to 25 sen. Hong Leong Bank and DiGi gave up 20 sen each to RM5.30 and RM20.90 while Lafarge eased 12 sen to RM3.86 and KL Kepong 10 sen to RM10.40. Tenaga lost 20 sen with 1.41 million shares. It had expected a reduction of RM1.2 billion in revenue under the reduction in tariffs. Talam fell 0.5 sen to 4.5 sen and it was the most active with 11.6 million units transacted. Resorts fell two sen to RM2.24 and KNM 0.5 sen to 43 sen. Tien Wah was the top gainer, surging 22 sen to RM1.45 but with only 100 shares done. SGGM added 16.5 sen to 75 sen, Quality 11 sen to RM1.20 and Hartalega nine sen to RM2.06. |
https://theedgemalaysia.com/node/94450 | Australian govt considers levy on bank deposits, shares hit | English | CANBERRA (Aug 1): Australia's Treasurer Chris
Bowen confirmed on Thursday he was in discussion with banks
about a possible new levy to protect customer deposits as the
government seeks new revenue to shore up its budget. Initial reports of the levy sent shares in Australia's major
banks down. Bowen is expected to update Australia's budget forecasts on
Friday, ahead of national elections which could be called at any
time, and has said he is committed to returning a surplus budget
by 2016-17 despite falling revenues. Citing unidentified sources, the Australian Financial Review
said the proposed levy is between 0.05 percent and 0.1 percent
on protected deposits, with the level set at A$100,000
($89,700). The paper had initially said the levy was between 0.5
percent to 1.0 percent. Presently, the government guarantees bank deposits up to
A$250,000 without charging the banks. The levy would provide insurance in case future bailouts
were needed, the paper said, adding it was estimated to raise
less than A$1 billion over four years. Shares in Australia's Big Four banks - Australia and New
Zealand Banking Group Ltd, Commonwealth Bank of
Australia, National Australia Bank Ltd and
Westpac Banking Corp - fell by around 2 percent
following the initial report. Bowen said he had held talks with banks about how to better
protect deposits in the unlikely event of a bank failure, but he
stopped short of confirming any new charge. "The IMF has expressed the view for some time that there is
a gap in Australia's public policy when it comes to provisioning
for any bank or deposit-taking institution's failure. Our
financial regulators have expressed the same strong views,"
Bowen told Australian radio. "I've been consulting with banks, and credit unions and
others about how we tackle that issue, how we make sure there is
money set aside in the unfortunate and very unlikely event that
a deposit taking institution in Australia comes into
difficulty." Also on Thursday, Bowen said the government would impose a
12.5 percent increase in tobacco taxes per year for the next
four years, to raise an extra A$5.3 billion, over the period. The Financial Review said the new bank levy was recommended
by Australia's Council of Financial Regulators, which includes
the Reserve Bank of Australia, the Australian Prudential
Regulation Authority, the Australian Securities and Investments
Commission, and the Treasury Department. Australian banks are among the most stable and profitable in
the world, and analysts said they expect banks and bank
customers to absorb the costs of any new levy. "Fundamentally, Australian deposits are protected because
the structure of our banks are such that deposits effectively
are the last in terms of hierarchy, the last to be touched,"
Nomura banking analyst Victor German said. "I don't really see strong justification for it. "The question will ultimately be to what extent pricing will
be impacted. Will banks just absorb additional cost, or they
pass on some of the cost to the consumer? I think there will be
both if this is to be implemented." The Australian Greens, who hold the balance of power in
parliament's upper house Senate, welcomed the new levy, but said
the government needed to make sure the costs were not passed on
to bank customers. - Reuters |
https://theedgemalaysia.com/node/93804 | Ringgit forwards drops most in 5 weeks on Fed tapering concern | English |
July 25
(Bloomberg) -- Ringgit forwards fell by the most in five weeks and bonds
dropped after a U.S. home sales report bolstered speculation the Federal
Reserve will pare stimulus. The
Malaysian Institute of Economic Research cut its 2013 estimate for economic
growth to 4.8 percent from 5.6 percent today, according to a presentation given
to reporters in Kuala Lumpur, joining Australia & New Zealand Banking Group
Ltd. in lowering forecasts. Home
purchases in the U.S. climbed 8.3 percent to an annualized rate of 497,000 in
June, the highest since May 2008, data showed yesterday, spurring the biggest
gain in the Bloomberg U.S. Dollar Index in almost three weeks. “There
was a bit of gain overnight on the dollar side,” said Saktiandi Supaat, head of
foreign-exchange research at Malayan Banking Bhd. in Singapore, forecasting the
ringgit will trade between 3.17 and 3.22 per dollar in the spot market over the
next week. “U.S. data helped the dollar.” Twelve-month
non-deliverable forwards dropped 1 percent, the largest decline since June 20,
to 3.2590 per dollar as of 4:19 p.m. in Kuala Lumpur, according to data
compiled by Bloomberg. The contracts traded 1.8 percent weaker than the spot
rate, which fell 0.3 percent to 3.1995. One-month
implied volatility, a measure of expected moves in the exchange rate used to
price options, rose 60 basis points, or 0.6 percentage point, to 7.29 percent. ANZ
lowered its forecast for Malaysia’s 2013 economic growth to 4.35 percent from
5.2 percent, according to a July 23 research note. The yield
on the 3.48 percent sovereign notes due March 2023 climbed two basis points to
3.84 percent, according to data compiled by Bloomberg. |
https://theedgemalaysia.com/node/92338 | Financial sector to be down in 3Q | English | KUALA LUMPUR: The business optimism of Malaysia's financial sector in the third quarter of this year (3Q13) is expected to show a downtrend following the imposition of stricter personal financing policy by Bank Negara Malaysia (BNM). According to Dun & Bradstreet (D&B) Malaysia's latest Business Optimism Index (BOI) study, the sector's net optimism level for volume of sales and net profit for the quarter are expected to show a negative 28.6% and 0% respectively. This is in sharp contrast to 2Q13 when both volume of sales and net profit were in positive territory, at 28.6% and 28.5% respectively. D&B Malaysia's BOI survey also includes four other indicators — selling price, inventory levels, employees and new orders. The sectors surveyed were financial, agriculture, services, construction, manufacturing, mining, transportation and wholesale. The quarterly survey is a measure of business confidence in the economy where 200 business owners and senior executives were asked if they expect increases, decreases or no changes in their upcoming quarterly sales, profits, employment, new orders, inventories and new orders. D&B Malaysia said following the introduction of the new credit tightening measures by the central bank, non-banking financial institutions are expecting a lower demand for personal loans. "Selling price and inventory levels have remained flat at 0%. Hiring levels have also declined to 14.3% in 3Q13 from 42.9% in 2Q13," the company said in its latest quarterly report on the Malaysian BOI. Agriculture is the other sector that is not expected to be positively optimistic. The sector has zero to minus optimism levels for volume of sales (0%), net profit (0%), selling price (-40%) and inventory (-40%). However, it is expected to post a 20% positive growth for employment. Overall, D&B Malaysia said business firms in Malaysia are upbeat about their businesses in 3Q13. From a sectoral perspective, the services and manufacturing industries emerged as the most optimistic sectors with all leading business indicators in the expansionary region. The wholesale sector ranks third with four business indicators in the expansionary region. D&B Malaysia noted that business leaders are least optimistic on selling prices and inventory levels as selling prices are expected to increase marginally by 2.5 percentage points, while inventory levels are likely to increase by five percentage points. "This represents a significant decrease from 14 percentage points and 10.8 percentage points respectively for both indicators in the second quarter," it said. D&B Malaysia marcom and product manager Eugene Zachariah said: “Domestic conditions have remained favourable to firms in Malaysia for the third quarter as evident from the healthy sentiments we are seeing. "However, the local economy is still largely export-driven and dependent on foreign investments. This implies a greater vulnerability to downside risks, especially within the context of a weakening external trade demand. As such, our projections are likely to be cautious in the months ahead," he added. He also said the focus of economic reforms and structural changes must enable Malaysia to capitalise on its comparative advantages. This will be crucial in allowing local firms to stay competitive in the near and long term, he added. This article first appeared in The Edge Financial Daily, on July 16, 2013. |
https://theedgemalaysia.com/node/27260 | CPO futures contracts close higher | English | KUALA LUMPUR (Jan 16): Crude palm oil futures contracts on Bursa Malaysia Derivatives continued their uptrend to close higher, supported by a weaker ringgit against the US dollar. Phillip Futures Sdn Bhd investment analyst David Ng told Bernama that the uptrend may prompt bargain hunting, but concerns over slowing demand are expected to limit the upside. New spot month February 2014 was RM55 higher at RM2,515 a tonne, March 2014 rose RM18 to RM2,525, April 2014 increased RM16 to RM2,540, and May 2014 advanced RM8 to RM2,545, June 2014 edged up RM2 to RM2,546 and July 2014 eased RM4 to RM2,540, he said. Turnover fell to 208,981 lots from yesterday's 209,075 lots, while open interest eased to 37,087 contracts from 48,956 contracts yesterday. On the physical market, December South was unchanged at RM2,510 a tonne. The market will be closed tomorrow, for the Thaipusam public holiday. |
https://theedgemalaysia.com/node/72376 | Recognising creative talent at Kancil Awards | English | KUALA LUMPUR: David Mitchell thought advertising was the last thing he ever wanted to do. So it is ironic that he not only ended up in the industry, he thrived in it. He is now chief operating officer of Naga DDB Sdn Bhd, the Malaysian subsidiary of the agency founded by William Bernbach, the man who created the famous “Think Small” campaign for Volkswagen. “As I’ve gone along on this path, [the advertising industry] has grown on me. Increasingly, I am more passionate about it because the industry has evolved from simply helping generate business to making a positive impact on people’s lives,” Mitchell told The Edge Financial Daily. “Advertising executives have ‘superpowers’ to influence a lot of people. I want to use the power of persuasion to positively impact people’s lives.” This year, he intends not only to spread goodwill to people outside the advertising industry, but also to his peers and advertising aspirants. As organising chairman of the 2012 Kancil Awards, Mitchell sees the merit of recognising creative talent. Award shows, he said, are a motivating factor for advertising agencies, as they need to set the benchmark for their work. With the elevated credentials, he said, the agencies could attract new clients. This year’s Kancil is themed “Stop Dreaming”, as it urges advertising executives to produce work that provokes creativity beyond the norm. “The best advertising agencies in the world will always deliver what the clients want but also surpass [expectations] with creative initiatives that either boost the clients’ business or brand values,” said Mitchell. However, he believes Malaysian advertising executives still have a long way to go to catch up with their global peers. While the communication model between corporations and consumers has changed to an interactive two-way channel, he thinks Malaysia is lagging behind in shifting towards this method. According to Mitchell, companies in the developed countries are now spending more for online advertising than for traditional media. Malaysian companies, however, still rely heavily on print advertising. While he respects the clients’ decisions, he sees the older ones as unfamiliar with digital media, which makes them cautious to take the leap of faith. “Back then, it used to be push media; we will push the message to television, radio, print and the like. Youngsters today pull everything that they want into their devices. So, understanding how people use and consume media has to change,” he said. He said gone are the days when companies simply disseminate information via advertising. Consumers want to be engaged as well and they can simply discard whatever they do not want to consume. The Kancil Awards, which he described as the haute couture of advertising, is a chance for businesses to see the best of Malaysian advertising works. As the award also accepts initiative advertising work — the ones which were proposed by advertising agencies rather than commissioned by the clients — companies can see the level of creativity that Malaysian agencies possess. Mitchell said young talent is the lifeblood of advertising, which is why Kancil has been continually featuring the student category. “The young minds are important to advertising,” he said. He is also pleased that this year’s number of entries is 30% higher than last year. Judges for this year’s Kancil comprised creative directors from the local advertising scene, and Indonesia, Singapore and the Philippines. The Kancil Awards 2012, hosted by the Association of Accredited Advertising Agents Malaysia, will be held tomorrow at the Mandarin Oriental Hotel, Kuala Lumpur. This article first appeared in The Edge Financial Daily, on Nov 1, 2012. |
https://theedgemalaysia.com/node/14336 | Hartalega’s margins hit by higher costs | English | KUALA LUMPUR: Nitrile glovemaker Hartalega Holdings Bhd’s earnings for the financial year ended March 31 rose 5.95% to RM201.62 million from the year before, much smaller than the 26.7% jump in revenue, as higher costs hit margins. Revenue came in at RM931.08 million, from RM734.92 million in FY11. For 4QFY12, however, net profit attributable to shareholders was down 4.6% to RM50.01 million from RM52.4 million. “Pre-tax tax margin reduced to 26.8% from 34.4% owing to the increase in raw material prices of nitrile latex, fuel cost and more competitive sales pricing for the current quarter compared with the previous corresponding quarter,” notes accompanying its accounts read. Demand growth for nitrile gloves “should be sustainable at 20% annually for the medium term”, said Hartalega, adding that the first production line for its sixth plant, where 10 lines are being constructed, is targeted to begin operations in August. The new plant will boost capacity by 30% or 3.5 billion pieces per annum, the company said. Hartalega announced yesterday another interim dividend of six sen per share for the current quarter, half of what was announced last year, bringing the total dividend in the current fiscal year to 18 sen per share, compared with 21 sen previously. Hartalega’s share price fell two sen to close at RM7.84 yesterday. This article appeared in The Edge Financial Daily, May 9, 2012. |
https://theedgemalaysia.com/node/99036 | Men with tattoos, machetes and firearms arrested in Kedah | English | ALOR SETAR (Sept 6): Police in Kedah today arrested three men with heavy tattoos, firearms and machetes during a suspected gang-related raid on a house that was also stored with substances believed to be heroin. Acting on a tip-off, the operation was conducted at 2.30am on the house at Jalan Permai in Sungai Petani, Kedah Chief Police Officer Senior DCP Datuk Ahmad Ibrahim said this morning. The raid was part of the nationwide Ops Cantas, launched Aug 17, to weed out criminal gangs and secret societies. Ahmad told reporters at the state police headquarters here that the raiding team knocked on the main door several times and called for the occupants to come out several times but there was no response. The team then broke the main grill and a back iron door, and entered the house to find three Indian men hiding in a backroom. Upon searching the premise, they found a Browning pistol together with a cache of bullets with four live bullets, six machetes and one head mask. Police also found 13 packets filled with powder and small lumps believed to be heroin, together with various equipment for packaging of the substance, Ahmad said. The case is being investigated under four crime-related enactments which carry a host of severe penalties. Under Section 8 of the Firearms (Increased Penalties) Act 1971, which deals with unlawful possession of firearms, the suspects, if found guilty, each face maximum imprisonment of 14 years and whipping with not less than six strokes. If convicted for possessing corrosive or explosive substance for the purpose of causing hurt, under Section 3 of the Corrosive and Explosive Substances and Offensive Weapons Act 1958, they face a jail term of not more than three years and whipping. Section 39A (2) of the Dangerous Drugs Act 1952 carries imprisonment for life or not less than five years, as well as whipping with at least ten strokes. The three men are also investigated under Section 43 of the Societies Act 1966 for alleged membership or active affiliation with an unlawful society. Upon conviction, the penalty here carries imprisonment for not more than three years or a fine not more than RM5,000, or both. The suspects and the materials were taken to the Kuala Muda District Police headquarters for further investigations. The raid comes in the wake of police in mainland Penang yesterday remanding three teenagers to facilitate investigations into the attempted murder of a 43-year-old restaurant owner in Nibong Tebal on Wednesday. The victim in this case, whose name had been withheld, was injured in the abdomen and has since lapsed into a coma after being admitted at the Seberang Jaya Hospital. Police say the case is linked to the shooting of six men at same victim's restaurant in Taman Kasawari, Simpang Ampat on Aug 23. |
https://theedgemalaysia.com/node/29137 | DBS Research negative on Thailand, Indonesia, Malaysia | English | KUALA LUMPUR: DBS Equity Research remains negative on Thailand, Indonesia and Malaysia which are the three best performing markets this quarter in Asia. It said in a report issued on Wednesday, March 17 that as the global recovery gains traction, it expects that markets with cyclical upside will benefit the most. DBS Research said Bank Negara Malaysia surprised the market with a rate hike of 25 basis points in the overnight policy rate and became the first Asian country to do so. "The reasons for such a move remain unclear, but if it is all about reform and demonstrating political will, more policy moves should follow," it said. These include a reform to the subsidy structure in Malaysia, where a lot of consumer staples, utilities, fuel, toll fees are on subsidised rates. Then there wll be more reasons to cheer when privatisatons, land sales, and market reform can take place as well. However, for now it views the bank rally after the rate hikes as excessive and will want to see further evidence of reform before making any changes to our underweight recommendations. It sees earnings growth of 13.7% this year and a three-month target of 1,346 for the FBM KLCI while for year-end it is 1,438. In Thailand, the court ruling on Thaksin’s assets to be consficated partially (more than half) is still subject to appeal and protest. Meanwhile Thailand’s valuations are now near average levels - the “political" discount is no more available to Thailand. "We do not expect growth to keep on surprising on the upside as domestic recovery may have been fully priced in an anticipation of a stable political environment. Exit strategy and interest rate hikes are expected in the second half," it said. In Indonesia, the court ruling on the bailout of Bank Century is deemed negative for Susilo Bambang Yudhoyono’s administration. The possible outcome remains fluid at this stage but SBY's political leadership is definitely undermined. A further re-rating in the market is not possible in its view. "All these three markets trade above average valuations, which make them vulnerable in the event of a spike in global risk aversion," it said. |
https://theedgemalaysia.com/node/96116 | On the road to recovery | English | Notion VTec Bhd(Aug 16, 84.5 sen) Maintain buy at 81 sen with a target price of 90 sen (under review): Notion's net profit of RM40 million for the third quarter ended June 30 of FY13 (3QFY13) was 102% higher year-on-year (y-o-y) (more than 100% quarter-on-quarter [q-o-q]) mainly due to insurance receipts of RM35.8 million on loss of assets due to the fire at its Klang factory on Dec 31, 2012. Stripping this out, core net income was RM7 million, 65% lower y-o-y due to lower orders from key clients, Western Digital and Nikon. On a positive note, q-o-q earnings are up by more than 100%, as there has been a recovery in the demand for interchangeable camera lenses (camera segment revenue improved 47%). But given that Nikon SLR and interchangeable lense shipments fell on a y-o-y basis, we are monitoring this development closely. Gross margin was also higher at 21.9% against 16% in 2QFY13. However, slow personal computer sales and a seasonally soft quarter in Europe dampened hard disk drive (HDD) demand (Notion's HDD segment revenue increased by 5%). Core earnings for the first nine months of FY13 were below our estimates but in line with consensus. The second half of 2013 calendar year (CY13) should see a pick-up in key segments on the back of seasonally higher demand and new product launches. We think Notion is poised to recover as HDD demand ramps up, specifically in the capacity enterprise space (Western Digital should progressively roll out its helium sealed cloud storage HDDs in 2014). This is premised on rampant demand for data storage solutions in cloud as well as application processes. In addition, the demand for interchangeable camera lens is expected to improve in the near term as Nikon ramps up newer products in its entry-level single lens reflex cameras. New ventures in the consumer electronics, oil and gas, and robotics components would likely play a part in Notion's medium to long term growth outlook. We cut our forecast FY13 core earnings by 23% to incorporate lower HDD and industrial/auto contributions, as well as lower gross margins but maintain our price target, which is pegged to five times CY14F earnings per share. — Hwang DBS Vickers Research, Aug 16 This article first appeared in The Edge Financial Daily, on August 19, 2013. |
https://theedgemalaysia.com/node/89288 | Highlight: U.S. Congress ends default threat, Obama signs debt bill | English | WASHINGTON (Oct 16): The U.S. Congress on Wednesday approved an 11th-hour deal to end a partial government shutdown and pull the world's biggest economy back from the brink of a historic debt default that could have threatened financial calamity. Capping weeks of political brinkmanship that had unnerved global markets, President Barack Obama quickly signed the spending measure, which passed the Senate and House of Representatives after Republicans dropped efforts to use the legislation to force changes in his signature healthcare law. The White House budget office told hundreds of thousands of federal workers, the bulk of whom had been idle for the past 16 days, to be ready to return to work on Thursday. The down-to-the-wire deal, however, offers only a temporary fix and does not resolve the fundamental issues of spending and deficits that divide Republicans and Democrats. It funds the government until Jan. 15 and raises the debt ceiling until Feb. 7, so Americans face the possibility of another bitter budget fight and another government shutdown early next year. With the deadlock broken just a day before the U.S. Treasury said it would exhaust its ability to borrow new funds, U.S. stocks surged on Wednesday, nearing an all-time high. Share markets in Asia also cheered the deal. Taking the podium in the White House briefing room on Wednesday night, Obama said that with final congressional passage, "We can begin to lift this cloud of uncertainty and unease from our businesses and from the American people." "Hopefully next time it won't be in the 11th hour. We've got to get out of the habit of governing by crisis," Obama said. He outmaneuvered Republicans by holding firm in defense of "Obamacare" to win agreement, with few strings attached, to end the 16-day shutdown. World Bank President Jim Yong Kim said "the global economy dodged a potential catastrophe" with congressional approval of the deal to raise the $16.7 trillion U.S. debt ceiling. The standoff between Republicans and the White House over funding the government forced the temporary lay-off of hundreds of thousands of federal workers from Oct. 1 and created concern that crisis-driven politics was the "new normal" in Washington. While essential functions like defense and air traffic control continued during the crisis, national parks and agencies like the Environmental Protection Agency have been largely closed. Senator John McCain, whose fellow Republicans triggered the crisis with demands that the Democratic president's "Obamacare" healthcare reform law be defunded, said earlier on Wednesday the deal marked the "end of an agonizing odyssey" for Americans. "It is one of the most shameful chapters I have seen in the years I've spent in the Senate," said McCain, who had warned Republicans not to link their demands for Obamacare changes to the debt limit or government spending bill. Polls showed Republicans took a hit in public opinion over the standoff. In the end, the Democratic-led Senate overwhelmingly passed the measure on a 81-18 vote, and the Republican-controlled House followed suit 285 to 144. Obama signed the 35-page bill just after midnight. POLITICAL DYSFUNCTION Although the deal would only extend U.S. borrowing authority until the first week of February, the Treasury Department would have tools to temporarily extend its borrowing capacity beyond that date if Congress failed to act early next year. But such techniques eventually run out. In addition to lifting the federal debt limit, the deal calls for creating a House-Senate bipartisan commission to try to come up with long-term deficit-reduction ideas that would have to be approved by the full Congress. Their work would have to be completed by Dec. 13, but some lawmakers say the panel faces an extremely difficult task. The agreement also includes some income verification procedures for those seeking subsidies under the 2010 healthcare law. But it was only a modest concession to Republicans, who surrendered on their latest attempt to delay or gut the healthcare package or include major changes, including the elimination of a medical device tax. The congressional vote signaled a temporary ceasefire between Republicans and the White House in the latest struggle over spending and deficits that has at times paralyzed both decision-making and basic functions of government. The political dysfunction has worried U.S. allies and creditors such as China, the biggest foreign holder of U.S. debt, and raised questions about the impact on America's prestige. The Treasury has said it risks hurting the country's reputation as a safe haven and stable financial center. Senate Majority Leader Harry Reid and Republican leader Mitch McConnell announced the fiscal agreement on the Senate floor earlier on Wednesday, and its passage was eased when the main Republican critic of the deal, Senator Ted Cruz of Texas, said he would not use procedural moves to delay a vote. The agreement stacked up as a political achievement for Obama, who refused to negotiate on changes to the healthcare law, and a defeat for Republicans, who were driven by Tea Party conservatives in their ranks and suffered a backlash in public opinion polls. There was no immediate sign that House Speaker John Boehner's leadership position was at risk despite having conceded defeat in the budget battle. Several Republican lawmakers suggested he may have strengthened his standing among the rank-and-file, who gave him a standing ovation at an afternoon meeting. But Cruz, a Tea Party-backed senator with 2016 presidential aspirations, denounced the fiscal accord as a "terrible deal" and accused fellow Republicans of giving in too easily in their bid to derail Obamacare. Obama's Democrats avoided claims of victory. "The bottom line is, millions suffered, millions didn't get pay checks, the economy was dragged down," said Senator Charles Schumer. "This is not a happy day, it is a somber day." The fight over Obamacare rapidly grew into a brawl over the debt ceiling, threatening a default that global financial organizations warned could throw the United States back into recession and cause a global economic disaster. Fitch Ratings had warned on Tuesday that it could cut the U.S. sovereign credit rating from AAA, citing the political brinkmanship over raising the debt ceiling. A resolution to the crisis cannot come soon enough for many companies. American consumers have put away their wallets, at least temporarily, instead of spending on big-ticket items like cars and recreational vehicles. "We're sort of 'crises-ed' out," said Tammy Darvish, vice president of DARCARS Automotive Group, a family-run company that owns 21 auto dealerships in the greater Washington area. |
https://theedgemalaysia.com/node/86238 | #Flash* AMMB 4Q net profit rises 25%, revenue up 10% | English | Flash : AMMB 4Q net profit rises 25%, revenue up 10% |
https://theedgemalaysia.com/node/13324 | Ringgit advances on speculation recovery to boost fund inflows | English | The currency advanced as Finance Minister Datuk Seri Ahmad Husni Hanadzlah yesterday said the economy is headed for a “mild” recovery next year, supported by stimulus spending and interest rate cuts. Japan yesterday said overseas sales fell in June at the slowest pace this year and economists predict Taiwan will announce the smallest drop in export orders since October. Malaysian factories may step up production, according to Kit Wei Zheng, an economist at Citigroup Inc. “The cyclical recovery will come and most Asian currencies will experience some appreciation in the second half,” Singapore-based Kit said. “What we hear from local technology companies is that orders are coming back, whether from Japan or the US, and the lag we see in Malaysia is because of supply-side constraints.” The ringgit strengthened 0.2% to 3.5415 per dollar as of 12.10pm yesterday, according to data compiled by Bloomberg. Japan’s exports fell 35.7% in June from a year earlier, versus a 40.9% slide in May, the finance ministry said in Tokyo. Citigroup forecasts the ringgit will climb to 3.48 per dollar by the end of the year as investors warm to Prime Minister Datuk Seri Najib Razak’s reforms. The changes include relaxing restrictions on investment from abroad. Five-year notes were little changed, keeping yields near a two-week high, as traders await details of an auction of similar-maturity security later this month. The yield on the 5.0944% note due in April 2014 held at 3.75%, according to Bursa Malaysia. The yield reached 3.78% on July 21, the highest since July 6. The finance ministry may announce the size and date of the auction of 2014 syariah-compliant bonds as early as this week. The central bank, which conducts auctions on behalf of the treasury, typically releases the information a week before any debt sale. — Bloomberg This article appeared in The Edge Financial Daily, July 24, 2009. |
https://theedgemalaysia.com/node/40710 | The tools might change, but good communication remains the same’ | English | Born and raised in Ireland, Aedhmar Hynes left the country in 1990 to pursue a career in marketing in London when she joined Text 100 Global Public Relations as an account executive. Since then she has helped build the formerly Euro-centric PR agency into a global business. Hynes spearheaded the technology specialist agency’s developments in the US where she navigated it through the dotcom boom and bust and was appointed the agency’s CEO in 2000. Today, Text 100 has 28 offices spanning 30 markets in Asia Pacific, North America and Europe with over 500 staff worldwide. Last year, the agency registered revenue in excess of US$60 million (RM188.4 million) and has a client roster that includes IBM, Cisco, Fujifilm and Lenovo. Text 100 launched in Malaysia in August 2006 and is the company’s fastest growing office garnering awards like the Malaysian PR Awards 2009 Gold Campaign of the Year and the 2007 Asia Pacific PR Award for New Consultancy of the Year. Currently based in New York City, Hynes has steered the agency to explore new avenues like online virtual world Second Life, and social media. Despite her immersion in digital technology, Hynes still loves “a traditional newspaper” on weekends. Have you always been interested in PR? I grew up in Ireland and there (at The National University of Ireland — Galway) I did an economics and English degree followed by a Masters in marketing. When I graduated, I thought that to be a great in-house marketing person I should have experience in PR, advertising and perhaps a little bit of direct marketing. So my first job was in marketing in Ireland, then I moved to London in 1990 and I joined Text100 in order to learn more about PR. That was about 20 years ago and I have remained with the firm ever since. So you’ve seen the firm grow into a global consultancy? Yes. Much of my early career was based in Europe, working with companies like Xerox, Microsoft, and so on. Then in 1997, Text100 started to think about moving into North America and at the same time, into Asia. At that stage of my life I had two children, and I packed up and moved to set up an office in San Francisco! At the time we were working mainly with Xerox. It was, in a very true sense, a partnership and our second office was in Rochester, New York because that’s where the Xerox communications team was based. How has PR evolved over the 20 years you’ve been in the industry? I think the most significant change has actually been in the last two or three years. When I started in 1990, the tools we used were somewhat different — we would fax a press release, for example. The use of the Internet was very limited, unlike today. In that respect, the tools and the use of technology were the main things that changed between 1990 and 2000. It was more about how you communicated than what and it was still predominantly through the media, the journalists. However, in the last two years especially, there has been a shift of emphasis in the brand communicated through the media and its audiences. The technology shift, particularly in social media, now means audiences have a more direct link to corporations, and vice versa. We’re seeing the power of the brand rest more firmly in the hands of the customer. What this generation witnessed is a change in trust. Trusted information comes from different sources now. They are more likely to trust information that comes from a peer or a friend than they are to trust information they consume in the mass media. It’s a social change as much as a change driven by technology. That’s not to say traditional forms of communications will go away. But there will be a shift beyond traditional journalism. Helming a global agency, are there any notable differences in the practice around the globe? There are probably more similarities than differences. People are the same. If you think communications and PR are about people, and people are the centre of a brand, then the thing you can probably do best to understand the differences of the different countries is to understand culture and behaviour. How people consume information and what are the cultural differences between how you communicate with them. The same will be true when you’re dealing with journalists — which I have done across the world. There are subtle differences based on cultural differences. But these days, the Internet has democratised information and the similarities are increasing. However, there is an assumption that the whole world is digitally connected. I was in Africa two weeks ago and it’s mind-blowing to understand that only 5% have Internet access. But 85% have mobile cell phone connectivity. So there you’re seeing a profound difference in how to reach all these people who are not connected. If you assume it’s all about Facebook and Twitter, in countries where there is an issue with literacy, not everybody can read or access the Internet. The important thing is to stand back and see what’s really driving communications instead of getting caught up with the tools. That’s just technology. What in your opinion is the biggest challenge for the PR industry? As someone who is a huge advocate of the power of PR and communications, it was very distressing to me during the dotcom burst that PR was perceived as masking the reality of what happened in these organisations and journalists got caught up in the wave. This really concerned me because I felt effective communications should never have been put in that position. The concept that you can ‘manage a message’ or create a perception of something that doesn’t exist really goes against the principles of effective public relations for me. Whether you’re in corporate communications or an agency, to a large extent the role you need to play is to ensure that the CEO or MD of your firm fully understands what PR can and cannot achieve. If that client or executive believes that PR is about creating an image that doesn’t exist, we (Text 100) are likely to not work with that client. These days though, with the Internet, there is no smoke and mirrors or screen anymore. Because if there is a difference between what you’re communicating and the experience people have of your brand, internally or externally, people are going to find out. In a nutshell, what to you is the role of PR today?PR’s role is about deeply understanding the goals of a corporation, develop an effective communications strategy with the audience at its centre and then to drive and direct that strategy in a way that impacts the business goals of the company. That will hold true no matter what technological advances come our way. What is Text100’s three-year goal? My focus as a CEO is to determine what kind of agency we are in three years. And our goal is to be a leader in digital communications. My view is that at the moment, digital communications represents 20% of what we’re doing and 80% is offline communications. The reality is, the young consumer is more likely to trust a Google search than a direct mail. So in three years, we hope to transition to 80% digital and 20% offline. What would you be doing if you weren’t in PR? One of the things I have the opportunity to do is to sit on the board of a not-for-profit organisation called Technoserve that helps eradicate poverty through business solutions. So we work with very poor countries and distressed locations across the world and I have the opportunity to spend time in Africa, Peru and Columbia. If you had asked me when I was 20, the answer would have been different. But for me today (at 44), the most meaningful thing I can do is to spend time helping people who, by virtue of birth, have less access to the kind of things I have. So even though I can’t give up what I do — I have four children now — and go work in Africa, I am very much inspired to find ways to help those who are less lucky than I am. I think it’s a really big education for my kids to understand that. Your children seem a big part of your life. How do you juggle a high-powered career and your family life? I spend a lot of time with my kids, but one of the things I would advise anyone trying to combine a career and raise a family is to give themselves some time. Some time to think and recharge or you can get burned out. Our lives are becoming 24/7 and I love that — for a long time I used to put a lot of emphasis on work-life balance and now, I feel balance may be the wrong word. Because it feels like life is on a scale and no matter what you do, one side’s getting neglected. These days, the word I like to use is blend. I just feel that I can do so much more by blending both and feel a whole lot less guilty. If I can work at home and at the side of a soccer pitch, then actually that’s benefitting both sides. How do you spend your personal ‘me time’ then?A cup of coffee and a newspaper. A traditional newspaper that has sections, pages and photographs. I love that. I also like to do yoga. I grew up Catholic and I do like to spend an hour in church on Sundays as it’s comforting and peaceful. This article appeared on the Media & Advertising page, The Edge Financial Daily, Nov 25, 2010. |
https://theedgemalaysia.com/node/68021 | UEM Land sees 21% rise in profit | English | KUALA LUMPUR: UEM Land Holdings Bhd’s net profit for the second quarter ended June 30 (2Q) rose 21% to RM107.6 million on the back of increased sales and construction progress from its developments. Revenue was relatively flat at RM 510.8 million compared with RM509.4 million in the previous corresponding quarter. For the six months ended June 30 (1H), group earnings grew 51.8% to RM161.7 million or 3.74 sen a share while revenue gained 20.7% to RM814.5 million from RM697.1 million a year ago. “This is primarily due to an increase in sales and construction progress contributed by our developments in East Ledang, Nusa Bayu, Nusa Idaman, Symphony Hills, MK 28, Summer Suites and Quintet,” said the developer in notes to its financials released yesterday. UEM Land launched several developments during 1H including residential schemes in Nusa Idaman, East Ledang, Nusa Bayu, Summer VOS and Arcoris Soho. According to the group, several of its projects are on course and due to be launched in 2H, including the MK28 development scheduled for completion by year-end. As at June 30, unbilled sales of its ongoing projects stood at RM1.85 billion. The developer is also set to launch by year-end the 1,821ha Gerbang Nusajaya, which has an estimated gross development value of RM18 billion. RHB Research analyst Loong Kok Wen in a recent note said: “We are convinced that Gerbang Nusajaya will be the next phase of growth for UEM Land when the first phase of Iskandar Malaysia successfully reaches its tipping point this year with the opening of Legoland, the Lifestyle Mall, and Marlborough College.” UEM Land closed one sen lower at RM1.89 yesterday. |
https://theedgemalaysia.com/node/53863 | Fuel cost burdens airlines | English | KUALA LUMPUR: High fuel cost continues to weigh on airlines as low-cost carrier AirAsia Bhd saw its 2QFY11 net profit shrink 48% year-on-year (y-o-y) while national carrier Malaysian Airline System Bhd (MAS) languished in the red. AirAsia posted net profit of RM104.3 million for 2QFY11 ended June 30, from RM198.9 million in the previous corresponding quarter. Revenue, however, rose 15% to RM1.1 billion from RM933.4 million previously, supported by a 15% growth in passenger volume. According to notes accompanying its quarterly results, fuel expenses rose 39% y-o-y resulting in a 12% y-o-y increase in cost per available seat kilometre (ASK) to 13.38 sen from 11.96 sen previously. Its Thailand subsidiary made an impressive showing, though, posting profit after tax of 384.4 million baht (RM38 million) for 2QFY11, eight times its profit after tax of 39.4 million baht in the previous corresponding quarter, boosted by improved yields despite an 11% increase in cost per ASK. AirAsia Indonesia, however, saw its profit after tax halved to 41.7 billion rupiah (RM14.5 million) from 80.4 billion rupiah a year earlier with cost per ASK up 14% y-o-y. As for MAS, its losses narrowed in 2QFY11 ended June 30 with a net loss of RM526.7 million compared with a net loss of RM534.7 million in 2QFY10. Its losses include a derivative loss of RM56 million which was smaller than RM217 million in 2QFY10. Both airlines had earlier introduced fuel surcharges to offset higher fuel prices. Although oil prices have come off their peaks, AirAsia CEO Tan Sri Tony Fernandes said the budget airline would not remove its surcharge for the time being due to high volatility in fuel prices. “Our aim is to get rid of it but until there is some stability at the US$100 level, we will keep it in,” Fernandes said during a tele-conference yesterday. AirAsia’s net gearing, which has been a concern, has also been reduced to 1.48 times from 1.57 times previously as cash and cash equivalents rose to RM1.8 billion as at end-June from RM1.5 billion in the previous corresponding quarter. Fernandes is optimistic yields could improve as its peak period is coming up. AirAsia is also looking at increasing its ancillary income via duty free shopping soon, which is expected to be a “good earner”. He added that there is still a lot of upside for AirAsia’s domestic operations despite the local market coming to maturity. The outlook for AirAsia’s regional operations was certainly more bullish as Fernandes said the airline is short on planes and is trying to accelerate the delivery of aircraft and may resort to leasing planes to expand in Vietnam. Fernandes is also eyeing the opportunity to set up a much-desired hub in Singapore in order to cement its expansion in Asean. The low-cost carrier could be looking at more joint ventures in other Asean countries. Full-service carrier MAS is looking at reviewing its network to adjust its capacity. In the notes to its results, MAS said the International Air Transport Association (IATA) reported that the outlook for the airline industry remains bearish as fuel prices could remain high, coupled with fears of the sovereign debt crisis in Europe and the possibility of a recession in the US. MAS said its current forward booking profile indicates key challenges for the Europe, US and Japan markets while forward booking trends for other major regional destinations remain normal. “In response to the tough operating environment, MAS is moderating its short-term capacity growth. The management team shall have a serious review of its current network and shall adjust deployed capacity accordingly,” it said. MAS’ much talked about cash and cash equivalents were still at a comfortable level at RM1.5 billion as at end-June. MAS has tied up with AirAsia as part of its turnaround efforts. The two airlines signed a collaboration and shareholders agreement two weeks ago, under which Khazanah Nasional Bhd will take up a 10% stake in AirAsia while Tune Air Sdn Bhd will hold 20.5% equity interest in MAS. Following the share swap between MAS and AirAsia, an executive committee was set up to oversee the management of MAS until the national carrier appoints a new managing director to replace Tengku Datuk Azmil Zahruddin. The exco is chaired by MAS’ current chairman Tan Sri Md Nor Yusof and comprises Datuk Mohamed Azman Yahya, Mohamed Rashdan Mohd Yusof, AirAsia deputy CEO Datuk Kamaruddin Meranun and Fernandes. “I think within the next two to three weeks, Kamaruddin and myself will be leaving the exco. I believe the search for a CEO is coming to a conclusion,” Fernandes said. The collaboration is expected to save both airlines as much as RM1 billion annually, which Fernandes noted would be easily achieved. On the possible increase of parking and landing charges by Malaysia Airports Holdings Bhd (MAHB), Fernandes said AirAsia and MAS have written “strong” letters to MAHB to put their case forward. “We think the case is very weak for MAHB to raise its charges. I am quite optimistic this won’t happen,” he said. Fernandes also remarked that AirAsia expects a delay in the completion of the KLIA2 terminal and has opened more hubs in Penang, Kota Kinabalu and Kuching in anticipation. He expects the new airport to be ready in 2013. This article appeared in The Edge Financial Daily, August 24, 2011. |
https://theedgemalaysia.com/node/88690 | Malay Press: Zam says Utusan's racism is subjective | English | PETALING JAYA (June 12): Former Information Minister Tan Sri Zainuddin Maidin has defended Utusan Malaysia, saying the allegations that the Malay daily is racist is subjective depending on the reader's education background. Zainuddin was commenting on CIMB Group CEO Datuk Seri Nazir Razak's description of the frank views against Utusan expressed by AirAsia X chief executive Azran Osman Rani as "the hallmark of a great leader." Azran and the Umno-owned daily have been embroiled in a war of words after he tweeted that the paper's articles such as 'Apa lagi Cina mahu' (What more do Chinese want) as "racist" and suggested that AirAsia X should not place advertisements in the daily. "I do not know what is meant by Nazir in praising Azran's forthright attitude. Was it due to his assumption that Utusan is a racist paper because it published 'Apa lagi Cina mahu' or his threat to pull back AirAsia's ads from Utusan. "For me the assumption that Utusan is racist is subjective. It depends on one's way of thinking and also his educational background and it is his right," he said in his weekly column in Utusan. Zainuddin criticised Azran's intolerant attitude and said it was not appropriate for him to suggest the pull back of ads because he does not agree with the newspaper's stance. "Is this the attitude of an educated man who believes in freedom, democracy, openness and globalisation. Is this not a misuse of power or action which is not rational? "In my view, if Nazri considers Azran a great leader for his actions, then it means that he has given his blessings for anarchist practices of CEO or chief executives in corporate bodies and big business," he said. He pointed out that corporate giants and large corporations are more powerful than Western governments, threatening press freedom and manipulating editorial content with their financial power. He said the power of corporations are not seen by many but instead the public only see the government using its authority to curb press freedom especially newspapers. "Utusan knows a lot of negative things about AirAsia and has concealed them as have other newspapers due to monetary interests and ads, but apparently this is not enough for Azran. "He feels that in order to get ads from AirAsia, Utusan must follow its social and political leaning. Therefore, financial pressure should be placed on Utusan," he said. Zam also criticised Nazir for not understanding the crisis of confidence faced by his brother, Prime Minister Datuk Seri Najib Razak, and Umno. "Nazir does not understand that without the support of Utusan to combat elements that want to erode public confidence in the government, Umno will not able to sustain Malay support in the 13th general election. "This brave support of Utusan and the financial risk taken is the reason why Umno was able to increase its parliamentary seats and capture Kedah, Perak and add more seats in the Kelantan state legislative assembly," he said. He said perhaps Nazir feels that Barisan Nasional can get the support of the Chinese voters if Utusan stops "counter-attacking" the extremist attitude in the community. "Actually Nazir is only adding to the problems faced by Najib and Umno." |
https://theedgemalaysia.com/node/20958 | ISDA writes global standards for Islamic derivatives | English | “This is a real innovation in what could potentially be a huge growth area,” ISDA chairman Eraj Shirvani said in an interview in Singapore on Monday.“Establishing market standards with the input of the scholars’ opinions, combined with the expertise and benefits of the ISDA framework, potentially opens up a significant array of new hedging possibilities for issuers and investors.” The New York-based ISDA, which represents more than 830 organisations active in the US$592 trillion (RM2,012.8 trillion) derivatives market, started working on its syariah-compliant master agreement with the Bahrain-based International Islamic Financial Market in 2006. The first version of their framework will focus on swaps for profit-rate and currency transactions, Shirvani said. Islamic finance is the fastest-growing section of the global financial system with US$919 billion of assets under management, including US$114 billion of syariah-compliant bonds, known as sukuk, Prudential Financial Inc said on Oct 7. From being almost non-existent a decade ago, the Islamic bond market has grown to US$130 billion, according to Moody’s. Sukuk have returned 27% this year, an HSBC Holdings Plc index shows, after the market fell four-times as much as conventional investment-grade corporate debt last year. The Dubai government set up a US$2.5 billion Islamic bond programme on Oct 25 as the emirate seeks to sell international bonds for the first time in more than a year. Malaysia, which has 14 Islamic banks and the biggest sukuk market, said in July that it would introduce a trading platform to make it easier for companies to buy and sell commodities like palm oil and rice that are used to back Islamic securities. Sukuk are asset-based bonds that pay a profit rate to investors instead of interest. — Bloomberg This article appeared in The Edge Financial Daily, October 28, 2009. |
https://theedgemalaysia.com/node/11531 | Maybank IB upgrades Media Prima to buy | English | The research house believed adex was poised for an upturn on recovering consumer sentiment, and that Media Prima’s television networks had already shown signs of recovery. In the last two recessions, consumer sentiment troughs were followed by total adex growth resuming six to seven months later. “Improving consumer spend enticed advertisers to resume spending. As consumer sentiment troughed in Dec 2008, we expect total adex growth to resume in 2H09,” it said in a note yesterday. Maybank IB said although 2Q09 television adex declined by low double digits year-on-year (y-o-y), the contraction was much narrower than the 17% y-o-y decline in 1Q09. “We also note that the July 2009 TV adex is well poised to expand y-o-y on higher telco ad spend spurred by mobile number portability,” it said. The research house said it also expects a positive decision on Media Prima’s 70%-owned subsidiary Primedia early next month. Primedia was set up to execute the Block Airtime Agreement with ABC Corporation, and it is the vehicle that operates TV5 Philippines. “It was Media Prima’s intention to inject Primedia into the Media Fund as the seed asset. As at 1Q09, Media Prima has invested RM100 million into Primedia and recognised its share of losses of RM45 million (1Q09: RM13.3 million, 4Q08: RM31.7 million),” it said. Maybank IB added that although Media Prima managed to further narrow Primedia’s losses in 2Q09, it was committed to divesting its 70% stake and cease recognising its share of losses before 4Q09. Although only US$50 million (RM176.5 million) out of the Media Fund’s proposed US$100 million capital has been raised, it is financially able to acquire Primedia at book value (1Q09: RM55 million), it said. The research house said that Filipino companies had expressed interest in acquiring Primedia, and it believed that Media Prima would divest Primedia to the Media Fund or other investors. “In the event that Media Prima shuts Primedia down, it will write off its book value. “While investors may view the write-off negatively, we view the shutdown positively as Media Prima would no longer have to expend RM5 million per month, easily half of its free cash flow, to support Primedia. It would be a heavy burden off Media Prima’s shoulders,” it said. It said this, together with improved contributions from other business segments, and cost containment should translate into larger bottom line expansion at 42% in 2010. Media Prima climbed 11 sen to close at RM1.50 yesterday. This article appeared in The Edge Financial Daily, July 31, 2009. |
https://theedgemalaysia.com/node/38684 | Opposition presses for changes in property management law to be dropped | English | KUALA LUMPUR: Pakatan Rakyat members of parliament (MPs) on Wednesday, Oct 13 urged the Ministry of Finance to withdraw from Parliament the proposed amendments to the Valuers, Appraisers and Estate Agents Act 1981 (VAEA Act) which had already raised the ire of property industry players. The main contention against the proposed changes to the VAEA Act is that only valuers registered with the Board of Valuers, Appraisers and Real Estate Managers would be allowed to practise property management should the amendments be passed by Parliament. PKR vice-president Sivarasa Rasiah said the proposed amendments to the VAEA Act were "problematic" as it would create a "monopoly" in property management by valuers to the detriment of over two million strata-titled flats, apartments and condominium owners. "The exclusivity granted through a monopoly will encourage corruption, rent-seeking and back-door activities in the property management industry. The cost of these negative impacts would be passed on to owners with no proportionate increase in service value," Sivarasa said at a press conference in Parliament's lobby on Wednesday, Oct 13. Sivarasa (Subang-PKR) added that property owners should be allowed the freedom to choose their property managers, a freedom which would be "removed" should the proposed amendments to VAEA be passed. Sivarasa says the proposed VAEA Act would create a "monopoly" in property management by valuers. Sivarasa says the proposed VAEA Act would create a 'monopoly' in property management by valuers. Sivarasa also estimated that owners of stratified properties would have to collectively fork out, an additional RM3 billion to RM4 billion or more annually in fees which would be shared out amongst some 800 registered valuers. Sivarasa, a practising lawyer, added that the proposed amendments to the VAEA Act appeared to be in conflict with the Competition Act, Consumer Protection Act 1999, Building and Common Property (Maintenance and Management) Act 2007 and the Strata Titles Act (1985). The government should consult all relevant stakeholders and industry players before proposing any future amendments to legislation, said Sivarasa. The amendments to the VAEA Act was reportedly proposed over five years ago but did not proceed after heaving criticism from the real estate industry. The property management business is said to be worth between RM3 billion and RM5 billion annually. Since it came to light, the proposed amendments had been heavily criticised by property industry stakeholders including the Building Management Association of Malaysia (BMAM), Real Estate and Housing Developers Association of Malaysia (Rehda), Malaysian Association for Shopping and Highrise Complex Management, Malaysian Institute of Architects and the Institute of Engineers Malaysia. |
https://theedgemalaysia.com/node/36000 | IMCD expands in Asia-Pacific | English | ROTTERDAM: IMCD Group BV has reached a binding agreement with Warwick International Group Ltd, based in Mostyn, North Wales for the acquisition of the latter’s specialty chemical distribution companies. In a statement yesterday, IMCD said the acquisition of 100% of the share capital of all the distribution companies was due to be completed on Aug 31, 2010. The terms of the sale were not disclosed. The businesses included in the transaction are GME Chemicals (Malaysia), Warwick Technology (Slovenia) and Warwick’s distribution companies in France, Italy, Spain and Portugal. Together, they have sales revenue of about €80 million (RM318.19 million) and employ 125 staff. IMCD group is involved in the sales, marketing and distribution of specialty chemicals and food ingredients. Headquartered in Rotterdam, The Netherlands, IMCD has a turnover of €925 million and employs 800 professionals in 32 countries. The deal complements IMCD’s portfolio for coatings, polymers, consumer and personal care, minerals and industrial applications. “With the reputation of a highly transparent partner in Europe and our plans to aggressively expand in Asia over the coming five years, we are now aiming to become a distributor of choice for the leading suppliers of specialty products in Asia,” said IMCD group CEO Piet van der Slikke. Perceived by IMCD group as highly qualified professionals in their field, all the personnel in Malaysia will be retained. IMCD said GME Chemicals was a leading specialty chemical distributors in Malaysia, which was the key reason for IMCD to enter the deal. This article appeared in The Edge Financial Daily, August 26 2010. |
https://theedgemalaysia.com/node/44304 | Buy into weakness on big-cap stocks | English | KUALA LUMPUR: With RM28.1 billion erased from the Malaysian market capitalisation during the Feb 7-11 period and the FBM KLCI below the psychologically important 1,500 level, investors are likely to stay cautious until the foreign selling dries up this week. Last week saw Bursa Malaysia’s capitalisation reduced from RM1,302.61 billion to RM1,274.51 on foreign selling of banks and plantations. The major indices fell more than 2.0% over the week. The FBM KLCI fell 2.67% or 41.08 points from 1,535.60 to 1,494.52. The FBM 100 fell 2.42% or 250.05 points from 10,300.05 to 10,050.00 while the broader FM Emas shed 2.34% or 248.44 points from 10,601.25 to 10,352.81. Meanwhile, global emerging markets recorded US$11.5 billion (RM35.1 billion) of outflows in funds, of which almost half were from China and Brazil, in the past three weeks, according to Credit Suisse. OSK Research director Chris Eng told The Edge Financial Daily while there was still a risk that the market might go down, investors should buy into weakness on big capitalised stocks which would be the first to rebound. “The 13.38 times price-to-earnings ratio (PER) or a -1 standard deviation below mean since 2000)will be a strong support but that is far away at 1,378. Nonetheless, given the equal upside to downside, we advise investors to start buying into weakness as the market may rebound well above the 1,378,” he said. Eng said despite the research house’s views of an interest rate hike in 2H11 and other forms of tightening, banks would still see good loans growth and other forms of income given the fund-raising activities required for the Economic Transformation Programme. “We believe investors should buy into weakness on big-cap stocks as these will be the first to rebound. Our top choice is banks while construction, oil and gas and property are also good trades,” he added. He said local funds may still be holding back somewhat as they had already been taking profit since December. As for foreign funds, he expected them to eventually flow back to developing Asia. MIDF Research head Zulkifli Hamzah said as expected, the selldown by foreign investors continued last Friday. He said it would probably take a couple of more days for the selling to unwind before prices stabilised. On some technical angles, such as the relative strength index, the market was already in the oversold territory. “However, this can persist for a while which is a good opportunity to accumulate in our opinion. There was strong buying by local institutions on Friday and that should mitigate further downside in the market,” he said. As for foreign funds, Zulkifli said he did not think it was a case of foreigners cashing out of Malaysia en bloc. Amidst the selling, some foreign investors have been picking up good stocks at depressed prices. “Indeed, gross purchases by foreigners had been evenly matched until Wednesday, and peaked on Thursday. These came after China’s decision to raise interest rates. Foreign investors dumped Malaysian banking stocks fearing that the local authority may follow suit and tighten monetary condition via the SRR (statutory reserve ratio), rather than the OPR (overnight policy rate) route,” he added. He said with Bank Negara scheduled to announced the fourth quarter 2010 gross domestic product (4Q10) data on Friday, he expected a deceleration of growth rate in the last quarter. “If that is a cue that the authority will let easy monetary condition to prevail, the equity market should rebound,” he said. Stocks to watch include Rimbunan Sawit Bhd, REDtone International Bhd, Latexx Partners Bhd and RHB Capital Bhd. Rimbunan Sawit Bhd’s subsidiary, RH Plantation Sdn Bhd is buying 4,857ha of oil palm plantation in Niah for RM118 million. It had entered into a memorandum of understanding with Sheba Resources Sdn Bhd to purchase the land. Sheba Resources is the registered owner of the land which has been charged to Agro Bank Malaysia Bhd for RM145.69 million. The Edge reported that with REDtone’s Malaysian operations in the red, the telco is looking to prepaid shopping cards in China to innovate its way to profitability. Lembaga Tabung Haji acquired 2.69 million shares in Latexx on Feb 7 to 9, raising its shareholding to 6.97% or 15.38 million shares. On Jan 31, fund management company Navis Asia VI Management Co Ltd had offered RM852.03 million to acquire all the assets and liabilities of Latexx for RM3.10 per share. At Friday’s closing price of RM2.83, there is upside for investors to pick up the shares. In RHB Capital Bhd, its single largest shareholder, the Employees Provident Fund disposed of 5.88 million shares on Feb 7 and 8, reducing its stake to 46.6% or 1.003 billion shares. Last Friday, CIMB Equities Research said it was downgrading the regional plantation sector from “trading buy” to “neutral”. The downgrade was because most of the planters have outperformed the market since its sector upgrade; spot CPO price has done better than expected and is close to its peak and should head south in the second half. CIMB Research also said the sector valuations are broadly in line with market price-to-earnings. But this is balanced by the bright earnings outlook in the current year and potential of M&As. “We raise our CPO price forecasts by 16% to US$1,100 (RM3,355) for 2011 and by 5% to US$1,000 for 2012 given the smaller-than-expected supply.” AmResearch remains positive on the banking sector and it sees minimal impact of any possible increase in the SRR by Bank Negara Malaysia. It said the SRR is currently at a historically low level of 1%. Its sensitivity analysis indicates a –0.3% to –2.2% downgrade to net earnings, based on the SRR rate hike of 1%. “The ones which may be affected the most would be EONCap (-2.2%), Alliance Financial Group (-2.1%), Maybank (-2.1%) and Public Bank (-1.4%). “We estimate every one percentage point increase in the SRR rate to reduce the amount available for lending by RM7.65 billion just for eight local banks alone. Nonetheless, we remain positive about the banking sector. Our buys are CIMB, Maybank, Hong Leong Bank and RHB Cap,” it said. This article appeared in The Edge Financial Daily, February 14, 2011. |
https://theedgemalaysia.com/node/73791 | Hiap Huat debuts strongly at 32 sen, 60% over IPO price | English | KUALA LUMPUR (Nov 26): Waste oil recycler Hiap Huat Holding Bhd (HHH) debuted on the ACE Market of Bursa Malaysia with a big bang, opening at 32 sen with a 60% gain over its IPO price of 20 sen per share, on trades of 15.06 million shares. The opening price of 32 sen also exceeded the target price range of analysts at 20-30 sen per share and the company’s net value per share of 12 sen as at end-September 2012. At 9.18 am today, Hiap Huat was traded at 31.5 sen, up 57.5% over its IPO price of 20 sen, on volume of 58.73 million shares. The most actively traded stock and the top turnover had earlier traded at a high of 33 sen and a low of 29 sen. At the listing ceremony today, HHH’s group managing director Chan Say Hwa said: “I am happy with the opening share price. The share performance was within our expectations.” “The share subscription of the company was over-subscribed by 136 times. It shows the market confidence in the company,” he added. Hiap Huat has raised RM17mil from its initial public offer (IPO). The IPO comprised 85 million new 10-sen shares, of which 80 million were placed out and the remaining five million units were offered to the public at 20 sen per share. In its prospectus, it said it would utilise RM8.2mil for working capital, RM4.5mil for capital expenditure, RM2.3mil to fund the listing process and the remaining RM2mil to repay bank borrowings. The company is a used oil recycler. Its core activity is collecting, recycling, re-refining and producing recycled products. The group stores, treats and recycles waste oil collected from industrial and commercial companies and then formulates them into end products for end consumers. The group's end products are sold under “AF1”, “Top Up”, “NEKKO”, “Cap Rumah” and “Flag” names. Last week, the company said it posted a net profit of RM2.24 million on the back a revenue of RM9.87 million for the quarter to end-Sept 2012. It net asset value per share was 12 sen. For the nine months to end-Sept 2012, its accumulative net profit was RM4.98 million, against revenue of RM28.15 million. |
https://theedgemalaysia.com/node/98746 | KLCCP’s earnings to remain resilient | English | KLCC Property Holdings Bhd(Sept 4, RM6.46) Maintain outperform at RM6.50 with a revised target price of RM7.30 (from RM7): We attended KLCCP’s briefing for analysts on Sept 3. From what we gathered, we expect earnings to remain resilient despite the current oversupply of office space due to its long-term leases. Its planned development of Menara Dayabumi and Lot D1 in Kuala Lumpur will provide KLCCP with more asset injections in the longer term. We retain our “outperform” call on the stock, with a 4% higher dividend discount model-based target price of RM7.30, adjusted for our 2014 financial year (FY14) to FY15 dividend payout ratio estimates. In light of the current rising bond yield environment, we believe that real estate investment trusts (REITs) are not particularly attractive. However, we favour KLCCP for its property development projects that will be a rerating catalyst and provide the REIT with key assets in the long term. We continue to favour KLCCP’s long-term earnings outlook due to: (i) the prime location of its properties;(ii) the long-term leases of its office properties, which will shield it against the softening office occupancy rates in the Klang Valley; and (iii) its property development arm, which will inject more assets into the REIT in the longer term. We believe that investors should accumulate KLCCP. We concede that its current FY14 dividend yield of 4.7% is not particularly attractive, given that the current 10-year Malaysian government securities rate is about 4%. However, we believe that KLCCP’s current share price is a good entry point for exposure to a mix of retail and office properties in some of Kuala Lumpur’s prime locations. — CIMB Research, Sept 4 This article first appeared in The Edge Financial Daily, on September 05, 2013. |
https://theedgemalaysia.com/node/94947 | KLCI futures close lower despite cash market's positive performance | English | KUALA LUMPUR (Oct 2): The FTSE Bursa Malaysia KLCI (FBM KLCI) futures contracts on Bursa Malaysia Derivatives closed lower today, despitepositive performance of the cash market. Phillip Futures Sdn Bhd Dealer Tan Sek Wei said, late selling of index-linked stocks pushed the FBM KLCI futures spot month contract to close at negative territory. He said all Asian shares had mostly advanced today, despite the shutdown in the United States due to disagreements on public finances, as investors anticipated the shutdown to be short. "In near term, we expect the FBM KLCI futures to move in consolidation mode, ahead of Malaysia's 2014 Budget. Trading is likely in the range of 1,750 and 1,790-point level," he added. At close, October 2013 lost 1.5 points to 1,768.5, and November 2013 declined 2.5 points to 1,768.5.December 2013 and March 2014 lost three points each to 1,769.5 and 1,764, respectively. Turnover dwindled to 5,115 lots from yesterday's 7,965, while open interest fell to 44,707 contracts, from 46,939 contracts Tuesday. The underlying FBM KLCI closed 1.32 points higher, at 1,770.35. |
https://theedgemalaysia.com/node/20472 | HLS Corp bought 488,600 Boustead shares | English | The total consideration represented about 10.4% of HLS Corp’s net assets. The loudspeaker manufacturer, formerly known as Foremost Holdings Bhd, informed Bursa Malaysia on Sept 28 that it had acquired RM2.6 million worth of quoted securities, equivalent to 15.9% of its net tangible assets (NTA) on Sept 25, but did not state the stocks it invested in. The RM1.7 million investment in Boustead forms part of the RM2.6 million amount, the company explained in its latest announcement. HLS Corp — in the red for the last three quarters — said in the Sept 28 statement that it had been given a mandate by its shareholders on May 15 to invest in any securities, provided the aggregate consideration did not exceed 200% of its NTA as at Dec 31, 2008. HLS Corp said its investment in Boustead was financed from its own funds and was in line with its policy to invest surplus funds in investments that had reasonable dividend yield, high net assets and potential growth. It said barring any unforeseen circumstances, Boustead’s return on equity (ROE) of 22%, price-earnings ratio (PER) of 3.8 times, earnings per share (EPS) of 90.7 sen and earnings of RM579 million for the financial year ended Dec 31, 2008, would enable HLS Corp to yield a better return in the form of capital appreciation and dividends than placing the extra funds in a fixed deposit. HLS Corp added that it had formed an investment committee to review every potential investment before investing. Nevertheless, it has for now decided to cease further investment in quoted securities. “The board of HLS Corp will review its proposal and seek shareholders’ approval again for its future investment in quoted securities as the board is mindful of the interest of its shareholders,” it said. Boustead’s six-month intra-day high was RM4.20 on May 27. It closed at RM3.63, up 10 sen, yesterday with over one million shares done. HLS Corp was 0.5 sen lower at 30 sen, with 1.4 million shares done. This article appeared in The Edge Financial Daily, October 21, 2009. |
https://theedgemalaysia.com/node/13636 | Investing in properties overseas | English | David Lye, an agent with Chester Properties, cites Trump SoHo, a five-star, 45-storey hotel condominium in New York, as an example. Trump SoHo has seen its price fall by some 30% in these trying times. Lye expects values to rebound by the end of the year, when the economy is expected to recover. Elsewhere, citing a report by London-based Knight Frank LLP dated May 26, Bloomberg reported that Dubai, home to the man-made Palm Jumeirah and The World island developments, saw its house prices fall 32% in the 12 months ended March 31 following the collapse of the investment bubble. Homes in Dubai, the second-largest of the seven sheikhdoms in the UAE, had appreciated at an annual rate of 48% just a year earlier. The Middle Eastern country is also the second-biggest decliner, after Latvia, in the Knight Frank global house price index. In 1Q2009, house prices in Latvia fell 36% while Singapore was the third-worst performing market, with a drop of almost 24%.Where to invest?The managing director of Knight Frank Ooi & Zaharin Sdn Bhd, Eric Ooi, advises investors to put their money in countries they are familiar with and that have clear regulated guidelines on foreign ownership and security of property rights. “The recent economic crisis has seen many countries offer good values for their properties. Traditionally, Malaysian buyers have a preference for properties in Singapore and Australia. Singapore is still a good place to invest in due to its infrastructure and tourism projects that aim to transform the city-state into a global city. “More recently, they have gone to markets like the UK and even the US,” he tells City & Country. Henry Butcher Malaysia Sdn Bhd’s chief operating officer Tang Chee Meng says London and Singapore, two international financial centres, were hard hit by the financial crisis and saw property prices dropping significantly. Investors could thus pick up properties at lower prices. These countries also have clear and transparent regulations on property investments by foreigners, he says. Tang adds that the London and Singapore property markets appear to have stabilised in the past two months, after witnessing some steep price corrections since the start of the financial crisis. Investor sentiment may have been boosted by the improvement in the stock markets as well as the stimulus packages introduced by the various governments. PPC International Sdn Bhd’s executive director Thiruselvam Arumugam says countries with better economic, political and social stability are generally the best choice for overseas investments, although some investors may opt for newly developed countries or emerging economies, which pose higher risks. “European countries such as the UK, Italy and Switzerland, as well as Asia and Australia, have generated more stable yields with continuous capital appreciation and are therefore better bets than developing countries like China, India and even the Middle East,” he says. He adds that investors should be cautious as developments in some countries have been shelved or abandoned due to the slowdown in the economy. Knight Frank’s Ooi says investors need to pay a commission to the agents they engage when they want to sell their properties overseas. Commissions vary, depending on the standard rate of the respective country. Meanwhile, buyers may have to pay property managers to maintain or manage their rental properties. Agency commissions in other countries are known to be higher, he adds. Potential pitfallsOne should beware of the potential pitfalls of investing in property overseas. The developer’s background is important, especially when investors are going for off-the-plan projects. In Malaysia, foreigners need Foreign Investment Committee (FIC) approval for properties above RM250,000. “Developers who are getting financing from financial institutions are generally required to show sales of at least 50% before they will approve a loan. Hence, if they are unable to show that, the project may not proceed,” explains Henry Butcher’s Tang.On guaranteed return schemes by developers, Tang says such schemes should be viewed with caution. “Banks today have a conservative view. They may consider guaranteed return schemes to be marketing gimmicks and assume that the returns have already been factored into the price,” he says. This means that if a purchaser requires financing, he may find that the bank’s valuation of the property is lower than expected. Some countries have also imposed property investment rules or restrictions, so investors should do due diligence or consult agents familiar with such requirements before they make any investments overseas. In Australia, for instance, secondary properties are restricted to citizens or permanent residents. Foreigners can only buy properties off the plan. Henry Butcher’s Tang says it is also good to know the location of the property to ensure that it is in high demand by the locals.He adds that Australia also imposes a capital gains tax on profit made from the sale of the properties, and that there are more factors to consider with regard to taxation. In Singapore, foreigners are not allowed to purchase land or landed properties except in “special zones” such as Sentosa Island.Unlike Australia, Tang says those who invest in properties in London and Singapore are not subject to capital gains tax. The exit catchment market of the two countries is also wider than that of Australia as they do not have restrictions on buyers of secondary properties, he adds. Knight Frank’s Ooi says one should also find out the rules regarding ownership of properties as not all countries allow foreigners’ freehold ownership. “Most countries in Southeast Asia, such as Vietnam and Thailand, have strict policies on foreign ownership. For example, foreigners are only allowed to buy leases of the properties. It is important to ascertain how the ownership issue works as buyers may face difficulties in disposing of the properties later,” he says. This article appeared in City & Country, the property pullout of The Edge Malaysia, Issue 761, June 29 - July 5, 2009. |
https://theedgemalaysia.com/node/20264 | #Parliament* Sept 16 declared public holiday | English | Prime Minister Datuk Seri Najib Razak (Pekan-BN) told Parliament this morning that cabinet has decided to make Sept 16 a public holiday. "Cabinet has decided to make Sept 16 a public holiday. Henceforth, we will celebrate two national days. "Merdeka day will be celebrated on Aug 31 to remind us of our struggle for independence from the colonialists while Malaysia Day will be celebrated to strengthen unity, understanding among races, our achievements and other aspects of our socio-cultural fabric," said Najib. On Sept 16,1963, Malaysia was formed with the union of Sabah, Sarawak, and Singapore with Malaya to establish a new federation while Malaya obtained independence from Great Britain on Aug 31, 1957. Singapore later left the federation in 1965. He was responding to a question from Datuk Dr Marcus Mojigoh (Putatan–BN) on the extent of the people’s response to the slogan "We stand, we think and act as Malaysians – one people" and the programmes to be held to achieve the aspiration. Najib said since he became prime minister some six months ago, he had introduced the concept of 1Malaysia. "With a national unity, the country can become more stable, strong and peaceful," said Najib. "In short, the 1Malaysia concept stresses on acceptance and respect for one another’s cultural differences, reinforces the unity based on the Federal Constitution and Rukun Negara. "And the third point is on social justice, where all Malaysians will be defended especially the groups which need help," he added. The prime minister said another aspect of the campaign involves instilling a high performance culture among the people. According to him, the government has also introduced key performance indices for the various ministries to ensure that people’s issues are given priority. |
https://theedgemalaysia.com/node/90970 | Market Close: KLCI loses 0.15%; region bad | English | KUALA LUMPUR (July 3): The FBM KLCI manifested a volatile trading pattern after the midday break and see-sawed between marginal gains and losses. At 5:00 pm market close, the local benchmark closed 2.68 points or 0.15% lower at 1,769.21 points, its lowest point for the day. The local bellwether was trading higher in the morning and hit a high of 1,776.07 points, but fell in tandem with the region in afternoon trades. The KLCI’s venture into the red territory today came due to losses in select blue chips like British American Tobacco (M) Bhd, Genting Malaysia Bhd, Hong Leong Bank Bhd, Genting Bhd and Hong Leong Financial Group Bhd. While the KLCI closed lower today, the quantum of losses was much less than its regional brethren. JF Apex senior analyst Lee Cherng Wee told theedgemalaysia.com that Asia Pacific indices took a beating today due to the economic and political instabilities in Greece and Portugal. “However, the KLCI is quite resilient today compared to its regional peers. As shown in the past, whenever the regional indices fell, the KLCI usually lost less,” he said over telephone. Lee said the local market is “defensive” due to local sovereign funds having ownerships in many companies listed on Bursa Malaysia. According to the state investment holding arm Khazanah Nasional’s website, Malaysia has seven government-linked investment companies. They are Khazanah, the Employees Provident Fund, Kumpulan Wang Persaraan, Lembaga Tabung Angkatan Tentera, Lembaga Tabung Haji, Perbadanan Nasional Bhd and the Ministry of Finance Inc. Reuters reported today that Greece has three days to reassure Europe and the International Monetary Fund that it can deliver on conditions attached to its bailout in order to receive its next tranche of aid, four euro zone officials said on Tuesday. Meanwhile, Portuguese local media said two more government ministers were preparing to tender their resignation on Wednesday, deepening the turmoil that could derail Lisbon's exit from an international bailout. Reports said Agriculture Minister Assuncao Cristas and Social Security Minister Pedro Mota Soares will follow their CDS-PP party leader Paulo Portas who tendered his resignation on Tuesday. Across Bursa Malaysia, a total of 1.25 billion shares worth RM2.103 billion were traded. Decliners thumped gainers at 385 and 339 respectively. DVM Technology Bhd was the most active entity across the exchange today. It was followed by Luster Industries Bhd and Ingenuity Consolidated Bhd. Today’s top gainer was Aeon Co (M) Bhd. Puncak Niaga Holdings also made handsome gains when it was reported that Prime Minister Datuk Seri Najib Razak had agreed to Selangor government’s move to acquire all four water concessionaires in the state, of which Puncak Niaga has a stake. Top decliners included BAT, Guinness Anchor Bhd and Panasonic Manufacturing Malaysia Bhd. Many Asia Pacific indices closed in the red today. Japan’s Nikkei dropped 43.18 points or 0.31%, Hong Kong’s Hang Seng tumbled by 505.62 points or 2.45%, China’s Shanghai Composite fell 12.29 points or 0.61%, Australia’s ASX 200 lost 89.88 points or 1.86% and Korea’s Kospi shed 30.36 points or 1.64%. Neighbouring Singapore’s Straits Times fell 42.71 points or 1.35%. According to Reuters, world shares pulled back on Wednesday as signs of slowing Chinese growth and escalating political tensions in Portugal, one of the euro zone's crisis hot-spots, spooked investors. |
https://theedgemalaysia.com/node/1759 | Abdullah urged to see through Penang bridge talks | English | Liew Chin Tong (Bukit Bendera-DAP) said today that any increase of cost would put undue burden on the people in Penang who would end up paying toll for generations to come. He said Abdullah should end corporate welfare for the government-linked company. He also wondered about UEM's suggestion to spend RM20 million for "ceremony functions" and RM63.51 million for "HQ overhead ad support". The Economic Planning Unit (EPU) had ordered Zaidun-Leeng Sdn Bhd, a consultancy company, to review the bridge's construction cost last year and a report entitled Proposed Penang Second Bridge Crossing Independent Review: Costing Review was published. The report stated that RM4.3 billion was needed to build the second link, whereby RM2.2 billion would be allocated to China Harbour Engineering Company (CHEC) and another RM2.1 billion would be apportioned to UEM which will acquire land and build the super structure. In November 2008, Jambatan Kedua Sdn Bhd chief executive officer Tan Sri Zaini Omar was reported as saying that the discussion with UEM on the building cost would be completed within a week. Subsequently, Penang Chief Minister Lim Guan Eng (Bagan-DAP) was told during a question-and-answer session in parliament early this month that the discussion would be completed sometime this month. Liew, who spoke in the parliament lobby, said while he welcomed the open tender system for the toll management, he was concerned that UEM would end up having a higher contract price. "The report commissioned by EPU, which was ready last July, was based on material costs which were at a record high and had regarded the RM4.3 billion quoted as fair price. "If that is fair price then UEM must accept the RM2.1 billion as the cost and should not be allowed to suggest a higher price," said Liew. |
https://theedgemalaysia.com/node/14801 | #Update* MBSB sees 12% loan growth for 2014 | English | KUALA LUMPUR (Jan 29): Malaysia Building Society Bhd (MBSB) is looking at an overall loan growth of 12% for 2014, driven by its retail and corporate businesses. For the full year of 2013 (FY13), the group saw its net loan, advances and financing increase by 25% to RM30.3 billion from RM24.3 billion a year earlier. Its president and CEO Datuk Ahmad Zaini Othman said MBSB had achieved impressive loan disbursement on the corporate business front with an increase of 30% from that achieved in 2012. "These disbursements have largely been made to facilitate property development and private finance initiative project financing," he added. Additionally, the group also saw its FY13 profit before tax (PBT) increase 42% to RM932.3 million from RM656.2 million in 2012. "The strong results were mainly contributed by retail business although the portfolio segment registered slower growth," said Zaini. The group will be introducing palm oil plantation financing in the second quarter of this year, which is expected to contribute to its corporate business revenue. |
https://theedgemalaysia.com/node/57878 | Private risk in market volatility | English | KUALA LUMPUR: Effective this Jan 1, those looking to borrow from banks to buy houses and cars will be subject to Bank Negara Malaysia’s (BNM) new guidelines aimed at promoting prudent, responsible and transparent retail financing practices. While much has been documented about the high borrowings of Malaysian households, little has been said about the 33% of households’ financial assets that are in the form of equities and unit trusts, which makes them also vulnerable to market volatility. Malaysia’s high proportion of household debt to GDP of 76% is already a well-known fact. Having targeted the credit card segment earlier by imposing fees and stricter credit limits, the central bank is now tightening the income criteria for mortgages, requiring eligibility to be based on net income rather than gross income as it was previously. Not only that, effective last Friday the tenure for car loans is now capped at nine years. Although much has been said about the high level of household borrowings, what do their balance sheets look like? Earlier this year, BNM published its 2010 Financial Stability and Payment Systems report, highlighting that some 33% of households’ financial assets are in the form of equities and unit trusts, and are susceptible to the performance of the stock market. Equity holdings and unit trust funds accounted for 17% and 16% respectively of household assets at the end of 2010, with endowment policies accounting for 6%. Bank deposits form the biggest chunk of household financial assets at 31%, followed by retirement savings with the Employees Provident Fund (EPF) with 30%, and equities 17%. In fact, equity holdings were at their highest levels since the financial crisis in 2008, recording a 20% change on an annual basis according to the report. This was partly due to the stock market recovery that saw the FBM KLCI gaining 19.34% in 2010. It also contributed to the bulk of the 14.9% expansion in household financial assets last year. If the high volatility in equity markets persists, it may impinge on a household’s ability to service its debt and mortgages, and inadvertently slow economic growth. Equity markets around the world have been on a downhill slide since August, hit by the European debt crisis and a slew of other external concerns. Starting with Standard & Poor’s downgrade of US sovereign debt, worries spread to a possible default by Greece and several other European countries, as well as slowing growth in China and a sluggish recovery in the US. In August itself, 7.9% or RM97.4 billion was wiped off the KLCI’s market capitalisation, with a further RM69.6 billion erased in September. Year-to-date, the KLCI has declined 5.15% to 1,454.4 last Friday, and is off an intra-day high of 1,597.08. From the year’s high to the year’s low of 1,310.53 on Sept 26, the index fell 17.9%. The market has since rebounded from the low rising 10.9% to last week’s close. BNM shared its concern over the stock market’s impact in the report. “With one-third of household financial assets in the form of equity, households are susceptible to volatile swings in equity prices as observed in 2008, when a 39.3% fall in the KLCI precipitated a decline in household financial assets. This in turn, may subject the household financial position to the vagaries of the equity market.” In 2008, the value of equity holdings and endowment policies held by households fell by over 35% when the stock market slumped. The value of unit trusts fell over 15% while bank and EPF deposits chalked up modest growth. However, BNM also said this risk is mitigated by “a substantial and almost equal proportion of household financial assets represented by deposits with financial institutions, which continue to provide a comfortable buffer to support households’ debt servicing ability”. The central bank added that at the end of 2010, the ratio of financial assets-to-debt remained relatively unchanged at 238.4%, with more than 60% of the financial assets held in the form of highly liquid assets. Economists contacted by The Edge Financial Daily were not too worried about the impact of the stock market volatility on household assets. “Investors would have already taken that into consideration when investing,” said Dr Yeah Kim Leng, group chief economist at RAM Holdings. The current market decline would produce negative wealth effects, but this would be offset by rising income and the rally in commodities prices this year, he said. “The question now is what is the threshold that would trigger bankruptcy and defaults,” he elaborated. Yeah said the current correction in the markets is not sizable enough to trigger such a situation. There are other indicators to observe, including employment levels, wage rates and bank credit flows, he said. “If credit lending for retail and households were impinged, then spending would definitely be cut,” he warned. Those who invested in the stock market would be the ones with excess savings, he said, adding that households can still depend on fixed income sources such as unit trusts like Amanah Saham Bumiputera and savings deposits which can provide stable returns. Yeah estimated that the KLCI would have to drop between 30% and 50% from its peak this year to cause any real effects to households. “This time around, the market is more dominated by institutional investors than retail compared with the 1997 Asian financial crisis. So investors won’t be directly burned by this correction,” said Suhaimi Ilias, an economist at Maybank IB Research. Suhaimi said: “Unlike back in the 1990s, leveraged equity investments via share margin financing (SMF) were a big thing so individuals were far more vulnerable to market swings due to margin calls and forced selling. As mentioned, this time around household assets related to equity investments are mainly placed under professional fund managers who are better equipped to monitor the investment portfolio and manage risks. Banks are also far more careful in extending SMF these days. “For that matter, banks are also exercising a great deal of prudence in lending as part of credit risk management, under the close watchful eyes of Bank Negara, which has also been implementing macro prudential measures since late 2010 on mortgages and credit card loan. “To me, 33% of households invested in equities and unit trusts is not that high a ratio. Moreover, the household financial assets to household debt ratio obviously excludes real assets [such as property holdings] but includes mortgages on the debt side ... so the household assets to debt cover could be higher,” he said. Nontheless, Suhaimi said a weakening sentiment can affect the real economy as households and consumers turn more cautious in their spending as they react to market news and movements. “The household assets to debt cover figure is an aggregate statistic, with no breakdown by household income groups, that is high income, middle income, low income,” he added. “Chances are the lower income households and those working in export-based industries, for example, may be vulnerable due to a lower household assets to debt cover, and from the impact of the global downturn, as what we saw in 2008/09 when many people in the manufacturing sector were retrenched outright or had reduced income due to redundancies or working on shorter shifts,” he said. “This can lead to difficulties in repaying loans and rising non-performing loans. Back in 2008/09, Bank Negara stepped in to provide temporary relief for the retrenched workers by allowing banks to grant a six-month moratorium on housing loan repayments,” he said. With high debts and a rising propensity to invest in riskier assets, maintaining near full employment and raising income levels are keys to maintaining households’ financial sustainability. This article appeared in The Edge Financial Daily, November 21, 2011. |
https://theedgemalaysia.com/node/84391 | GST can make prices of goods and services cheaper | English | KUALA LUMPUR (Oct 22): Malaysians can enjoy cheaper goods and services for many basic necessities if the government implements the goods and services tax (GST), replacing the existing sales and service tax (SST). The tax, likely to be implemented by 2015, will see a proposed rate of four per cent to replace the current narrowly-applied 10 per cent sales tax and five per cent services tax. The GST will be levied on the consumption of goods and services at all stages of the supply chain. If implemented, some 40 basic food necessities, including rice, sugar, milk powder and flour will be listed as zero-tax items, while essential services, such as healthcare, may be classified as tax-exempt. Most of the items were currently being taxed under the SST and the transition to GST could ease burden on the poor, Secretary-General of Ministry of Finance, Tan Sri Dr Mohamad Irwan Serigar Abdullah, was quoted as saying. The GST will ensure that the prices of the items will not increase. Besides that, not all products will be charged the full tax under the proposed GST as certain products will be charged only half of the GST rate. "The GST is a must, it's not an option," Irwan Serigar said, adding that should the new tax regime be implemented, the government was confident of trimming the fiscal deficit of gross domestic product by 2015 and hitting a surplus by 2020. Meanwhile, MIDF Amanah Investment Bank Bhd Senior Vice-President/Head of Research, Zulkifli Hamzah, said although the implementation of GST was inflationary, it would only be in the short term as consumption patterns adjusted over time. "We expect the GST to have a transitory inflationary impact on prices, similar to the evidence found in many countries which have introduced the tax. "The inflationary impact of the GST will depend on the rate to be decided, exemptions and parallel measures to mitigate price rises," he told Bernama. The Malaysian Customs Department is of the view that GST's inflationary impact will be minimal as basic and essential foodstuff will be zero-rated and public amenities will be exempted. Another factor is the lower production cost as GST paid on inputs is claimable by businesses, while savings from the input tax credits should be passed on to the consumers in the form of lower prices. GST, a broad-based consumption tax, or value-added tax, was first tabled at the Dewan Rakyat in Dec 16, 2009 to replace the current SST, but was withdrew last year for amendments. The transition will be part of the fiscal reforms undertaken by the government to reduce fiscal deficits and achieve a neutral balanced budget by 2020, helping the country to move towards a high-income economy as well as to achieve a developed nation status. Economist opined that now was the right time to implement the GST as part of efforts to bolster government revenue. Once implemented at a revenue-neutral rate of four per cent, the new tax was estimated to rake in a revenue of RM18 billion, which was quite similar to the current revenue of RM16 billion to RM17 billion from sales and services taxes at an average rate of seven per cent. It is anticipated that Prime Minister Datuk Seri Najib Tun Razak will announced the GST in the Budget 2014 on Oct 25. The GST would take 14 months to be implemented after it was announced. |
https://theedgemalaysia.com/node/75298 | Brent steady above $107; Yellen speech, inventories in focus | English | SINGAPORE (Nov 14): Brent futures held steady
above $107 per barrel on Thursday, as investors balanced dovish
Federal Reserve comments with expectations of a rise in U.S.
crude inventories. In prepared comments to be delivered to a Senate committee
hearing later on Thursday, Janet Yellen, who is poised to be the
next head of the Fed, said she thought the U.S. central bank had
more work to do to aid the economy. "Commodities, including oil, will be very sensitive to any
clues about when the tapering will take place," said Mark
Keenan, head of commodities research in Asia at Societe
Generale. He was referring to the timing of any tapering in the
Fed's massive bond-buying programme. Brent for December delivery was up 16 cents at
$107.28 per barrel at 0640 GMT. The contract closed $1.31 higher
on Wednesday, supported by Libyan supply outages. U.S. crude was 2 cents lower at $93.86 per barrel,
after settling up 84 cents. The Fed's $85-billion-a-month in bond-buying has boosted
liquidity and appetite for risk assets such as oil, with
Yellen's comments also supporting equities and curbing the
dollar. "The market will be pretty focused on the tone of her
address. Hopefully she'll provide some reasonable clarity, so
the market can return to supply and demand dynamics," said
Keenan. Yellen is due to speak in a Senate hearing at 1500 GMT. RISING STOCKPILES Investors will also pay close attention to the weekly
inventory report from the U.S. Energy Information
Administration, due at 1600 GMT, for clues about fuel demand in
the world's biggest economy. Data from industry group the American Petroleum Institute,
released after the Wednesday session's close, showed that U.S.
crude stocks rose by 599,000 barrels overall last week, with an
increase of 1.7 million barrels at the Cushing, Oklahoma
delivery hub. A Reuters survey showed EIA crude inventories were expected
to rise by nearly 1 million barrels. Expectations of an improvement in profits from processing a
barrel of crude into products in the United States could
encourage refiners to ramp up runs when they return from
seasonal maintenance, driving up demand for crude, analysts at
Phillip Futures said in a note to clients. U.S. regional refining margins rose 2.68 percent on average
in the week that ended Nov. 8, iCredit Suisse said in a weekly
report on Monday. Also supporting oil prices were comments from Israeli Prime
Minister Benjamin Netanyahu on Wednesday warning that a "bad
deal" with Iran on its nuclear programme could lead to war. Sanctions against Iran have removed about 1 million barrels
a day from global oil markets, but recent high-level talks with
the United States and other world powers have raised optimism
that sanctions could be eased. A new round of negotiations is
scheduled for next week. Outages in Libya helped push Brent higher on Wednesday with
the head of Italian oil and gas group Eni saying the situation
was getting worse. Output from the OPEC member has remained a
fraction of its pre-war level of 1.6 million barrels per day due
to prolonged protests. "Brent oil was also supported by demonstrations in Libya
that prevented a tanker from loading," Phillip Futures said.
Investors will also be keeping an eye on preliminary euro
zone GDP figures at 1000 GMT for signs of recovery that mean
stronger oil demand. - Reuters |
https://theedgemalaysia.com/node/32234 | Primus seeks contingent RM1.12b damages | English | KUALA LUMPUR: In the latest twist of events, Primus (Malaysia) Sdn Bhd is seeking a whopping RM1.12 billion in damages from EON Capital Bhd’s (EONCap) directors if Hong Leong Bank Bhd (HLBB) were to succeed in acquiring EONCap’s assets and liabilities for RM5.06 billion or RM7.30 per share cash. Primus Pacific Ltd’s managing director and founder Ng Wing Fai, who is non-executive director of EONCap, did not attend the AGM. The crucial deciding EGM on the acquisition has been delayed and EONCap shareholders are caught in a détente as the banking group weighs its options. The damages of RM1.12 billion sought by Primus is equivalent to RM1.61 per EONCap share. This suggests Primus may be “comfortable” with a higher takeover offer of at least RM8.91 per share or 22% above HLBB’s current offer. Industry analysts do not expect HLBB to raise its offer to those levels. Primus had on Monday filed a court petition against certain shareholders and board members of EONCap over what it claimed to be “unlawful” events leading to HLBB making its higher revised offer for the EON banking group. These included the appointment of seven new directors to EONCap’s board. In an announcement to Bursa Malaysia Securities yesterday, EONCap gave further information on the reliefs sought, including the RM1.12 billion damages or any other sum that may be assessed by the court, including “damages arising from the loss of future profits which the company could reasonably be expected to make but for the destruction of the company’s substratum”. The High Court here has fixed July 6 to hear the petition. HLBB has set a deadline of Aug 15 for securing shareholders’ and regulatory approvals for the proposed acquisition. After this date, HLBB reserves the right to withdraw the offer. Primus is the major shareholder of EONCap, the nation’s seventh-largest lender, with a 20.2% stake. From the start, Primus has opposed the takeover by HLBB as the private equity fund purchased its stake at RM9.55 which was well above HLBB’s offer price of RM7.30. Primus also requested interest on the damages at 8% per annum from April 2 onwards. Based on that, the estimated interest would total RM20.1 million up to today. Earlier, speaking to reporters after EONCap’s AGM here yesterday, EONCap’s chairman Gooi Hoe Soon told reporters that he initially received the suit on Monday. Primus petitioned against the company and directors on the grounds that the acts or affairs of the company disregarded interests of certain shareholders. It alleged that the directors had “subjected the interests of EONCap as a going concern to the shareholders wanting to make an exit from EONCap”. Also, it stated that seven directors were appointed to push the HLBB deal forward. Sources close to the company said EONCap was planning to release the notice for the EGM (for shareholders to decide on HLBB’s offer) during the AGM. However, the notice was not distributed, marking a delay of the EGM and the takeover vote. Company officials declined to say when the EGM would take place. Analysts said if HLBB walked away from the deal, the share price of EONCap could potentially revert to the previous price of RM6.80 or lower. Furthermore, analysts agreed that given HLBB’s structured approach to acquisitions, it was unlikely that it would raise the offer price. The company representatives present at the AGM said they could not comment on the HLBB acquisition or the lawsuit as it could be sub judicial, given the court case now. On another note, EON banking group CEO Michael Lor said EONCap’s banking operations would not change and the group would be on track to meet its profit targets. “We are trying to maintain business as usual. During the year, we opened two new branches and we will open two more, one of which is in Penang. At no point have I been told that I can slow down,” he said. Lor added that the company was investing some RM30 million in branch refurbishment. The bank is also looking at data warehousing investments of RM25 million for the next three years as well as upgrade of credit card systems. Yesterday, EONCap ended trading at RM7.02, down two sen, while HLBB closed at RM8.59, 13 sen lower, in line with the market’s downtrend and in view of Primus’ court petition. This article appeared in The Edge Financial Daily, June 23, 2010. |
https://theedgemalaysia.com/node/1584 | #Stocks to watch:* Water companies, Proton, Tenaga, MAS | English | KUALA LUMPUR: The 100-stock KL Composite Index snapped its eighth straight day of gains on April 21, but the local bourse fared better than its regional peers. Stocks which would be in focus on April 22 would include water-related counters, Proton, Tenaga and MAS. Overnight gains on Wall Street as investors were reassured about the US banks' capitalisation should shore up sentiment. Call warrants issued by AmInvest comprising 100 million non-collateralised European-style cash settled zero-strike call warrants over Class B ordinary shares of Berkshire Hathaway Inc will be listed on April 22. The short name is BRKB-C1 while the stock number is 0536C1 and ISIN Code MYJ0536C1O44. Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) executive chairman Tan Sri Rozali Ismail announced the freezing of a RM2.6 billion project to replace old mains and communication pipes. The decision was in view of the restructuring of the water management sector in Selangor, Kuala Lumpur and Putrajaya. According to Rozali, the freeze was imposed at the government ‘s directive. Pipe makers could be impacted by the delay in the implementation of the project. Meanwhile, Proton should continue to see active trade after it announced to Bursa that discussions with EON over the cars distribution network were still ongoing. The distribution is seen as crucial for the consolidation of the fragmented auto industry. Proton’s share price has rallied over the past two weeks ahead of the launch of the Exora MPV last week. It closed at RM3.12 on April 21. Meanwhile, the Malaysian Automotive Association (MAA) expects vehicle sales volume for April 2009 to be better than in March following the recent announcement of the government’s second stimulus package. Its optimism was based on the 20.5% or 7,530 unit increase in sales volume in March this year, compared to February. Tenaga Nasional has repurchased and intends to cancel US$39.08 million nominal value of the US$150 million 7.5% debentures due 2096 issued in January 1996. The repurchase exercise would enable Tenaga to reduce total debt by about 0.8% to RM23.23 billion whilst its foreign currency exposure in terms of US dollar denominated debt reduced from 26.1% to 25.4% based on the group’s total borrowings and exchange rates as at Feb 28, 2009. Malaysia Airlines should benefit from the recent approval given to its unit Fly FireFly to launch flights to Singapore, which has been seen a lucrative destination. |
https://theedgemalaysia.com/node/37464 | Off-Market Trades: Sep 6-12, 2010 | English | Between Sept 1 and 6, some 395 million shares worth RM746 million were transacted off market in blocks of at least 500,000 shares. Carotech Bhd saw 61 million shares, or a 6.69% stake worth RM4.28 million, transacted in block and direct deals at 7 to 7.5 sen each on Sept 1, 3 and 6. According to filings with Bursa Malaysia, Lembaga Tabung Haji emerged as a substantial shareholder after it acquired an additional seven million shares that raised the pilgrim fund’s equity interest to 55.24 million shares or 6.05% as at Sept 1. In July, Carotech, which extracts and sells palm oil phytonutrients and oleochemical products, said it had failed to fulfil some RM213.6 million worth of debt obligations as it had not been able to generate adequate cash from its business. The defaulted loans constitute US dollar-denominated term loans amounting to US$47.78 million (RM150.5 million) and local term and trade facilities worth RM59.12 million. A total of 60 million shares, equivalent to 5% equity interest in Shin Yang Shipping Corp Bhd and valued at RM66.45 million, changed hands in block and direct trades at RM1.10 to RM1.11 per share on Sept 2. The Sarawak-based company, which was listed in June, says it intends to grow its foreign operations, particularly in the Middle East. Shin Yang operates some 250 vessels. At IT firm Technodex Bhd, a 12.6% stake comprising 28.55 million shares worth RM5.71 million was transacted in block and cross trades at 20 sen each on Sept 2. The company, with a capital base of 227.39 million shares, has seen shareholding changes among its board members recently. On Sept 2, managing director and CEO Lee Siew Tat sold 14.34 million shares or 6.3% equity interest, of which 14.27 million shares were disposed of through NLJ Resources Sdn Bhd at 20 sen each. Company chairman Tiong Chiong Ee may have bought over the chunk of shares since a separate Bursa filing shows that Tiong acquired 14.27 million shares at 20 sen each through VF Capital Sdn Bhd. Last May, the company announced its intention to undertake a private placement of 24 million new shares to finance its working capital needs. At conglomerate MMC Corp Bhd, 20 million shares worth RM53.36 million were traded in block and cross trades at RM2.58 to RM2.76 each. Last month, MMC and its 39.25%-owned associate Zelan Bhd formed a joint-venture company, MMC Zelan Sdn Bhd, to jointly bid for infrastructure projects under the 10th Malaysia Plan. MMC holds 60% equity in the JV and Zelan 40%. IT services provider OpenSys (M) Bhd saw 17.62 million shares, or 7.9% equity interest worth RM1.59 million, transacted in block and direct trades at nine sen each. At press time, the vendor and seller of the block of shares were still unknown. The firm recently announced the appointment of Ng Bee Ken, 56, as a non-executive director in the company. Ng has been the managing partner of law firm Lee Swee Seng & Co since 1998. AirAsia Bhd saw 10.5 million shares valued at RM18.77 million traded in block and cross trades at RM1.77 and RM1.81 each on Sept 2. Last month, the low-cost carrier signed an amendment agreement with aircraft manufacturer Airbus to revise the delivery dates of seven Airbus A320 aircraft originally scheduled for delivery in 2011. The planes will be delivered in 2015 instead. AirAsia says the revision was initiated in anticipation of the low-cost carrier terminal, in its present form, not being able to accommodate the aircraft should they be delivered in 2011 as planned. Telco Axiata Group Bhd saw 10 million shares valued at RM45.31 million changing hands in block, cross and direct trades at RM4.48 to RM4.56 apiece on Sept 1, 3 and 6. Axiata recently announced that its group executive director and CFO Datuk Yusof Annuar Yaacob will be relinquishing his position this November. This article appeared in Capital page of The Edge Malaysia, Issue 823, Sep 13-19, 2010 |
https://theedgemalaysia.com/node/98158 | #Random Thoughts* Another reality check | English | FOR some of us who still remember the events that led to the Asian financial crisis in 1997, the recent gyrations in the financial markets and steep currency depreciation have once again evoked fears that the region is becoming vulnerable again. And if there are any lessons to be learnt from the 1997/98 crisis, it is that we ignore these ominous signs at our own peril. This was the case back then; some governments in the region, including Malaysia, did not heed the warning signs of rising current account deficits, the huge hot money inflows that created massive credit bubbles and economic overheating. It was a case of economic growth running way ahead of fundamentals. The thinking at that time, in Malaysia at least, was that the economy was resilient enough to withstand the volatility. Yet, when the crisis came, everyone got hurt. Today, the news flow is not painting a pretty picture, and the prognosis seems to be that things could get worse, going forward. After three-and-a-half years of ample liquidity supply, the inflows are coming to an end. The quantitative easing (QE) exercises will be tapered off, and market views are that it could begin as early as the end of this year. Not only is the inflow ending, but investors have started to withdraw funds from the emerging markets because of deteriorating economic fundamentals. The exit of QE is not unexpected as these money-printing programmes were never meant to be long term. The reality is, the QE programmes were always expected to be destabilising for global financial markets when the time to exit came. As CIMB Group chief executive Datuk Seri Nazir Razak puts it: “We were invited to a party, and we all went. The party is coming to an end, and some people would have drunk too much; there will be some hangover.”The important thing here is that our policymakers should not make the same mistake they did in 1997, underestimating the magnitude and speed of the contagion. Granted, this time around, the Malaysian economy is in a stronger position to weather the storm if it happens. We have a stronger cache of international exchange reserves and up to this point, still enjoy a current account surplus. Additionally, the foreign currency borrowings of Malaysian companies are not as massive today as they were in 1997. Banks, having learnt lessons from 1997 and also the 2008 global financial crisis, are well capitalised and have put better risk management systems in place. Be that as it may, we are seeing some deterioration in fundamentals, not just in Malaysia but the region as a whole. At the moment, all eyes are on Indonesia. The rupiah has fallen by more than 10% this year, spooked by its growing current account deficit which ballooned to 4.4% of GDP in the second quarter of this year, from 2.6% in the previous period. There are projections that the rupiah could fall to as low as 11,800 against the US dollar by next year, from the current 10,800. In Malaysia, we are also seeing some red flags. The prolonged weakness in the external environment has begun to take its toll on export-dependent economies in the region, and Malaysia has seen consecutive months of falling exports and its current account surplus is shrinking. Growth in Asia has slowed as a result because the weak external demand has affected domestic economic activity. Bank Negara Malaysia, for one, has revised downwards Malaysia’s growth for 2013 to between 4.5% and 5%, from the earlier expectation of 5% to 6%. In fact, some economists are of the view that the surplus could turn into a deficit towards the end of the year. The situation becomes grimmer taking into consideration rising household debt, fiscal deficits that have persisted for more than a decade and high government debt The worry is that with the deficits, the government will not have enough bullets to deal with any major economic downturn. The fact that India and China, the two growth pillars in recent years, are also having their fair share of problems is adding stress to the external environment. These concerns were severe enough to push the ringgit to a three-year low of RM3.31against the US dollar last Thursday. The downtrend is expected to continue. For example, Goldman Sachs last week projected the ringgit to slide to RM3.4 vis a vis the US dollar in the next three months. There are mixed views on whether the current turbulence will snowball into a full-blown crisis. Even if there is no crisis, the general view is that the subdued growth in the global economy will likely continue for several years. In his keynote address at the inaugural Network Asean Forum recently, Singapore Deputy Prime Minister and Minister of Finance Tharmar Shanmugaratnam raised the salient point that the region is facing a twin challenge. “On the outside, an adverse shift in external demand, and internally, supply-side and capability gaps that have to be addressed boldly,” he said. “Each of us will have to think hard about structural reforms that are needed in education and skills training, legal and regulatory frameworks for investors and labour markets.” Clearly, there is an urgent need to quicken the pace of structural reforms and and put in place pre-emotive measures to cushion the economy against any financial disasters, which seem to be occurring more frequently in current times. Anna Taing is managing editor at The Edge This story first appeared in The Edge Malaysia Weekly Edition of August 26 - Sept 1, 2013. |
https://theedgemalaysia.com/node/34255 | Perstima concerned about raw material prices fluctuation | English | KUALA LUPUR: Tin plate manufacturer, Perusahaan Sadur Timah Bhd (Perstima), sees the fluctuation in raw material prices due to the new pricing mechanism for iron ore since the beginning of this year and cheaper imports from China as the biggest challanges for the group going forward. However, its managing director, Shigeki Tashiro said on Tuesday, July 27 after Perstima’s shareholders meeting on July 27 that the company hopes to reduce the price fluctuation risk once its main black steel supplier, JFE Steel Corp Ltd of Japan starts production from a new facility in Japan at the end of the year. Black steel is the main material used in the manufacturing of steel plate, which is mainly used in canning of food and edible products. Perstima is also looking to maintain the record dividend payout of 40.5 sen in financial year ended March 31, 2010, as the company has not planned any major capital expenditure in the coming year and will continues to return excess cash to its shareholders. Tashiro said that the Perstima has sufficient internal funds to finance around RM30 million in capital expenditure for the next two years, or RM15 million a year. |
https://theedgemalaysia.com/node/37081 | Water stocks, Dataprep, Proton, Naim | English | KUALA LUMPUR: Blue chips may start off the week on a cautious note on Monday, Sept 20 after the late profit taking last Friday which took investors by surprise but sentiment could be given a boost by the firmer close on Wall Street. Late profit taking on Tenaga Nasional Bhd and Sime Darby pushed the FBM KLCI down nearly six points to 1,466.97. Year-to-date, the 30-stock KLCI is up 15.26%, making it the fourth best performer in Asia. Over the past week, the KLCI had risen 29.19 points, underpinned by the strengthening ringgit and it is above analysts’ earlier forecast of 1,450. On Wall Street, reassuring earnings and an upbeat outlook from Oracle nudged the Nasdaq up last Friday. Oracle Corp, the world's No. 3 software maker, jumped 8.3% to US$27.46, and led the Nasdaq higher after it posted better-than-expected results and gave an outlook that topped Wall Street's forecasts. The Dow Jones industrial average gained 13.02 points, or 0.12%, to 10,607.85. The Standard & Poor's 500 Index added 0.93 points, or 0.08%, to 1,125.59. The Nasdaq Composite Index climbed 12.36 points, or 0.54%, to 2,315.61. For the week, the Dow rose 1.4%, the S&P 500 gained 1.5% and the Nasdaq gained 3.3%. At Bursa Malaysia, stocks to watch include water-related counters, Dataprep Holdings Bhd, Naim Holdings Bhd, Proton Holdings Bhd, MHC Plantations Bhd and Handal Resources Bhd. Malaysian Trustees Bhd is convening a meeting for the Selangor water industry players and bondholders on Sept 24 in a move to resolve the current impasse in the sector and concerns of operating environment uncertainties. Puncak Niaga Holdings Bhd (PNHB) said on Friday, Sept 17, it was informed by Malaysian Trustees the meeting was for all the Selangor water concessionaire holders, operators and bond issuers. Also included in the meeting would be the term loan borrowers -- Syarikat Bekalan Air Selangor Sdn Bhd (Syabas), Puncak Niaga Holdings Bhd (PNHB), Konsortium ABASS Sdn Bhd and Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (SPLASH) Dataprep’ subsidiary has secured a RM34.99 million contract from Syarikat Prasarana Negara Bhd to implement a cashless bus ticketing system for Rapid KL Buses. Its 55% subsidiary Solsis (M) Sdn Bhd received the letter of award dated Sept 7. Naim Holdings Bhd’s plans to set up a joint venture to design and build a 50-storey tower known the Gaddafi Tower in Tripoli, Libya has come to a halt after the memorandum of understanding (MoU) lapsed. Its unit NCSB Engineering Sdn Bhd and Al-Waatasemu Charity Foundation (WCF) had signed the MoU on July 16 this year. Proton adviser Tun Dr Mahathir Mohamad said the national car maker is financially stable and sees no hurry in merging with other car manufactures. "“Financially, Proton is still okay. We too are not very anxious to merge at this moment,” he said, when asked to comment on Proton’s possible plan for merger after recent news report stated that DRB-Hicom was not actively looking to acquire a stake in Proton. MHC Plantations Bhd has increased its stake in Cepatwawasan Group Bhd to 37.01% after it acquired 4.2 million shares or 1.99% on Sept 15 for a total of RM4.59 million. Meanwhile, Handal Resources Bhd saw 11 million shares done off-market on Friday at an average price of 65 sen each. Stock market data showed the shares were transacted below the market price of 80 sen. The 11 million shares represented a 12.22% stake. |
https://theedgemalaysia.com/node/7679 | This week in politics (April 20-24) | English | April 20-24April 24: Datuk Seri Najib Razak chairs first Supreme Council meeting as Umno president. April 24: High Court in KL grants Archbishop of KL leave to review word "Allah" in Herald. April 23: Mohammad Fairus Khairuddin won't face corruption charges, MACC says. April 23: Mohd Saiful Bukhari Azlan files RM2 million defamation suit against a blogger. April 23: KL High Court allows AG to intervene in Nizar vs Zambry suit. Nizar lawyers apply to cross examine Perak state legal advisor in matter. April 23: Gobind Singh Deo files suit Dewan Rakyat Speaker, Dewan Rakyat Secretary, Minister in Prime Minister's Department Datuk Nazri Abdul Aziz, govt to seek declarations on his suspension at High Court. April 23: Sessions Court issues arrest warrant for Raja Petra Kamaruddin for failure to appear in court for sedition trial. April 22: Karpal Singh seeks to discharge his sedition trial on basis of legal requirements of AG's written consent. April 22: Gobind Singh Deo to file suit at KL High Court vs Dewan Rakyat Speaker Tan Sri Pandikar Amin Mulia for suspension, says Karpal Singh. April 21: Perak government to auction off Toyota Camrys used by previous coalition government. April 21: Syabas freezes RM2.6 billioin pipe project on federal government's orders. April 20: Former Perak Menteri Besar Datuk Seri Mohammad Nizar Jamaluddin files an affidavit detailing his version of his earlier meeting with Perak ruler Sultan Azlan Shah. April 20: Jawi Magistrate's Court issues warrant of arrest on PAS vice-president Mohamad Sabu and nine of his followers for failing to attend a hearing on a charge of obstructing a public servant from performing his duty last year. Warrant later cancelled for Mat Sabu. April 20: July 28 for trial of couple charged with insulting Sultan. April 20: House rejects suggestion to discuss Philippines' claim on Sabah. |
https://theedgemalaysia.com/node/55633 | 1 First Avenue bags The Edge-PAM Green Excellence Award | English | 1 First Avenue, the green office building developed by Bukit Utama City Sdn Bhd and the winner of The Edge-PAM Green Excellence Award 2011 will pave the way for more green commercial buildings to be developed in the Bandar Utama township in Petaling Jaya, says its director Datuk Teo Chiang Kok. Bukit Utama City is a subsidiary of See Hoy Chan Holdings Group, the developer of Bandar Utama township, including the popular award winning five million-sq ft 1 Utama Shopping Centre. 1 First Avenue is just beside One World Hotel and integrated with the shopping centre. “Our future commercial buildings in Bandar Utama will incorporate green and energy efficient features that are commercially viable,” said Teo who received the award at the event. “We are most enamoured and privileged to have garnered this prestigious award and most pleased that our initiatives have been recognised by The Edge and PAM (Pertubuhan Akitek Malaysia),” he said. The jury voted 1 First Avenue as an exemplary commercial building that has gone beyond just exhibiting green technologies. There are about six more commercial buildings being planned for future development in Bandar Utama and Teo said 1 First Avenue has set the benchmark for future green buildings here. Teo said the most powerful encouragement to adopt green initiatives has to come from the market where tenants and property purchasers demand and expect these features to be included in the projects. “Many forward-looking and multi-national companies have set their corporate social responsibility requirements for their offices to be located in green buildings,” he added. In fact, 1 First Avenue, was the first private-sector commercial building to receive the Malaysian Green Building Index Provisional Certification in April 2010. The building is also a Multimedia Super Corridor Malaysia Cybercentre status building within the Bandar Utama city centre. It was 90% occupied within six months. The building has a total gross built-up of 2.3 million sq ft and a net lettable area of 637,258 sq ft. Among tenants there are IBM Malaysia, RHB Bank Bhd, My EG Services Sdn Bhd, PayPal Malaysia Services Sdn Bhd and Hong Leong Investment Bank Bhd. “Our future commercial buildings in Bandar Utama will incorporate green and energy efficient features that are commercially viable. In fact for the current renovation of our 1 Utama, we have installed many energy and water efficient building components and have installed LED light fittings which are more energy-efficient than the CFL fittings that had earlier replaced incandescent bulbs.” Teo added that the adoption of green initiatives has gained much momentum by developers. “There is much research being done on environmental-friendly products and energy efficiencies and there will be a continuous stream of new concepts and products coming into the market that will be commercially viable to adopt,” he said. All the efficiency features cost the developer 18% more in building costs. In terms of energy efficiency, the building is said to have cutting-edge technologies including intelligent and high-efficient lifts, low-e glazing windows, chiller plant control system and building energy management system control, monitoring and integration of equipment. Toilets are also naturally ventilated and lighted during the day. There is an estimated 20% savings in electricity for 1 First Avenue, with all its energy-efficient features, compared with a similar sized building with no such features. A vertical garden featuring a climber plant known as peacock flower (bauhinia kockiana), is being cultivated on the building façade which starts from the ground floor right up to the top of the 25-storey tower. Rainwater collected via a rainwater harvesting system will be used for flushing toilets, cooling towers and landscaping. Teo said 30% of the water usage for the building comes from recycled rainwater. An unusual initiative that Bandar Utama City adopted is the installation of a central sewage treatment plant that processes all sewage and food waste and recover up to 95% or more of the water around the area. Wastewater recycling is the result of wastewater treatment, where grey water is reused for toilet flushing, air conditioning cooling towers and landscape irrigation. The building also features a green helipad, instead of the more typical concrete helipads, which the developer believes is the first in the country. Another interesting green feature in 1 First Avenue is the allocated green vehicle parking lots where tenants with hybrid vehicles will enjoy 50% discount on parking rates and have among the best located parking lots in the development. The Edge-PAM Green Excellence Award is a joint initiative of The Edge with the Malaysian Institute of Architects (PAM) to recognise projects that demonstrate innovation in sustainable design while contributing positively to the community. This article appeared in The Edge Financial Daily, October 3, 2011. |
https://theedgemalaysia.com/node/96389 | Sumatec not aware of cause for unusual market activity | English | KUALA LUMPUR: Sumatec Resources Bhd, responding to an unusual market activity (UMA) query from Bursa Malaysia, said there has not been any corporate development related to its business and affairs that may have caused the surge in the trading of its shares. "The board of directors and major shareholders are not aware of any rumour or report concerning the business and affairs of the group that may account for the trading activities," it added. Bursa issued the UMA to Sumatec at noon yesterday with regard to a sharp increase in its price and volume. The stock rose six sen (8.5%) to 76.5 sen at 12.22pm on heavy trade of some 26 million shares, while its warrants were the fourth most actively traded — rising 17% to 48 sen on 45.7 million units. Since early July, the stock has appreciated 264%, from 21 sen to 75.5 sen yesterday. A loss-making company with negative assets per share, Sumatec has recently been in the news. Developments range from its plan to venture into new oil fields overseas to its high projected revenue, as well as updates on its regularisation plan to lift its PN17 status. As at end-March, Sumatec had a net loss of RM5.2 million with zero revenue. It had negative net assets per share of 67 sen. The counter closed at 75.5 sen, five sen or 7.09% higher than its previous close, with 34.5 million shares changing hands. This article first appeared in The Edge Financial Daily, on August 20, 2013. |
https://theedgemalaysia.com/node/57780 | DiGi ties up with Google to offer Gmail SMS | English | KUALA LUMPUR (Nov 18): DiGi.com Bhd is partnering Google to provide Gmail short messaging service (SMS) effective from Friday. DiGi said this latest move expanded the SMS-based Internet applications and services which would enable the telco customers to access their favourite online apps. “This strategic partnership with Google also positions DiGi as the first mobile operator to offer the Gmail SMS service in Malaysia,” it said. The head of mobile Internet & ADS for DiGi, Praveen Rajan said a recent Nielsen survey reported Malaysians spent an average weekly of over five hours accessing the Internet via mobile devices. “The partnership with Google empowers us at DiGi to offer the SMS option to millions of Gmail users in Malaysia to significantly extend their chat community through real-time chat via SMS, regardless of any mobile device type,” he said. Manwhile, Country Head of Google Malaysia Sajith Sivanandan said Google's overall mission was to make information accessible and useful to people. “SMS has long been a common means of mobile communications in Malaysia and many Malaysians still rely on their non-smartphones. Gmail SMS makes instant communication between Gmail and a mobile phone possible via SMS,” he said. Gmail SMS brings the popular Gmail Service to a non-smartphone easily. With Google’s Gmail SMS, people can send free text messages to their friends directly from their Gmail account. Replies and responses to the text message will appear as a reply in Chat. For DiGi customers, the service is free of charge and requires no subscription; chat messages sent via SMS from their mobile phones are billed at 10 sen per SMS. This strategic partnership announcement is made on the back of a global agreement between Google and Telenor announced recently. Telenor’s intention is to roll out a global Android Market initiative in stages to stimulate further growth of the Android ecosystem in all 11 international markets, including Malaysia. |
https://theedgemalaysia.com/node/76851 | Hot Stock: Datasonic rises after RHB Research starts coverage with positive outlook | English | KUALA LUMPUR: Datasonic Group Bhd was among the top gainers at mid-morning on Tuesday, on the back of a positive outlook for the group on potential businesses and contracts. At 10.15am, Datasonic jumped 41 sen to RM6.88 with 231,200 shares traded. RHB Research has initiated coverage on Datasonic with a Buy rating and fair value of RM10.51, as it foresees the group to gain double profit due to potential contracts and business. “We are forecasting for Datasonic to more than double its net profit by FY13F to RM76.7 million. “Taking into account the potential replenishment of 10 million new MyKads come 2014, as well as likely margins enhancement post completion of its new MyKad assembly plant by end of FY13F, we foresee the group’s bottomline potentially breaching the RM100 million threshold come FY15F,” it said. Some of the key projects that the group was involved in are the rolling out of national identification (ID) cards in 2001 and the implementation of a payment multi-purposed card (PMPC) programme in 2003 to replace cards with magnetic stripes with chip-based ones. Looking forward, Datasonic’s management is hopeful of getting another extension on its contract to supply new MyKads come 2014. “Over the medium- to longer-term, Datasonic aims to capitalise on managing applications on new MyKads to help boost its recurring earnings base. “We gather from sources that the company had recently proposed to three public hospitals to incorporate their patients’ medical and health records into their respective MyKads,” said the research house. |
https://theedgemalaysia.com/node/75879 | KLCI rises firmly at mid-morning | English | KUALA LUMPUR (Dec 24): The FBM KLCI rose firmly at mid-morning on Monday, lifted by select blue chips. At 10am, the local index was up 10.58 points to 1,669.43. There were 153 gainers and 129 losers, while 188 counters traded unchanged. Volume was 121.59 million shares valued at RM112.03 million. Asian shares steadied in quiet pre-holiday trade after a slump late last week, with markets cautious over whether the United States can avoid a fiscal crisis, according to Reuters. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.6% after falling to a near two-week low on Friday when House of Representatives Speak John Boehner failed to gain support for a tax plan, raising fears the US may not be able to avert the "fiscal cliff" of automatic spending cuts and tax increases set to start Jan 1, it said. At the regional markets, Hong Kong's Hang Seng Index edged up 0.10% to 22,527.77; Taiwan's Taiex was up 0.12% to 7,549.15; South Korea's Kospi added 0.09% to 1,982.29; and Singapore's Straits Times Index inched up 0.06% to 3,165.39; meanwhile, the Shanghai Composite Index shed 0.03% to 1,982.29. Affin Investment Bank Bhd vice president and head of retail research Dr Nazri Khan said he believed the local equity market will zoom higher from a number of positively received events with the global equities holding onto strong December gains despite being overbought. "Given ample liquidity and rising foreign net equity flow, we are not surprised to see FBMKLCI aiming higher for 1,680 level. Any close above 1,680 will lead FBMKLCI to a good bull rally towards an-all-time-high of 1720-1750 in the early part of next year," he said in a special report for theedgemalaysia.com last Friday. Among the gainers at mid-morning on Bursa Malaysia, Nestlé rose RM1.90 to RM62; BAT 70 sen to RM58.72; United Plantations 60 sen to RM25.20; KLK 56 sen to RM22.08; Petronas Dagangan and HLFG 38 sen each to RM23.94 and RM13.42 respectively; F&N 28 sen to RM18.28; Keck Seng 19 sen to RM4.20; Genting Plantations 17 sen to RM8.50; and UMW 16 sen to RM11.96. XOX was the most actively-traded counter, with 16.5 million shares done. The stock rose two sen to 23.5 sen. The other actives included Karambunai, TH Heavy Engineering, AirAsia, Asia Media, DSC Solutions and MMSV. The decliners included Sunway, Dutch Lady, Top Glove, Felda Global, Bright Packaging, Bursa, PPB and Hong Leong Capital. |
https://theedgemalaysia.com/node/57345 | Benalec to get Johor project? | English | KUALA LUMPUR: Benalec Holdings Bhd has suspended the trading of its shares today, ahead of a likely announcement of a major land reclamation project in Johor. In a statement to Bursa Malaysia asking for the suspension, the company said it intends to release an announcement on a material contract today. Sources said Benalec is likely to announce a land reclamation project to create a large oil and gas (O&G) hub in the Pengerang area, on the southern tip of Johor. Pengerang is home to Dialog Group Bhd’s project to develop a deepwater petroleum terminal and tankage facilities. Dialog’s terminal involves tankage facilities for handling, storing, blending and distribution of crude oil and petroleum products, together with marine facilities capable of handling large crude carriers with a water depth of up to 26 metres. Benalec’s project, it is believed, will likely involve reclaiming land to house a major industrial park for companies and facilities serving the O&G industry there. The park is expected to cater for businesses spanning the entire value chain of the oil and gas industry, including oil terminals, steel industries and shipyards. Benalec, whose niche is in marine construction and reclamation works, is likely to undertake the job and will develop part or all of the land. The project will also be one of the biggest reclamation jobs for Benalac outside its traditional base of Melaka, where it has since reclaimed over 2,000 acres, mostly for mixed development use. The company undertook its first reclamation job in Langkawi, Kedah in 2000, followed by one in Port Klang in 2003, but has since focused mostly on Melaka. A week ago, Benalec announced to Bursa Malaysia that its wholly-owned units Pengerang Maritime Industries Sdn Bhd and Tanjung Piai Maritime Industries Sdn Bhd had acquired equity stakes of 70% in Spektrum Kukuh Sdn Bhd and Spektrum Budi Sdn Bhd respectively for RM7,000 each. While the amounts involved were small, it is interesting to note that Benalec’s partner in these ventures is the crown prince of Johor — Tunku Ismail Idris Tunku Ibrahim. Tunku Ismail Daing A Malek Daing A Rahaman are directors of Spektrum Kukuh and Spektrum Budi and they hold the remaining stakes of 21% and 9% respectively in the two companies. Both companies were incorporated in April 2011 and listed their principal activities as property investment holding. Besides Tunku Ismail and Daing A Malek , other directors are Leaw Seng Hai, Datuk Leaw Tua Choon and Leaw Ah Chye, according to Benalec’s announcement to Bursa Malaysia. Prior to this, Benalac announced on Oct 31 that it had sealed a RM36.60 million contract to reclaim 60 acres of land on the coast of Pulau Konet, Alor Gajah, Malacca. Benalec said its unit Benalec Sdn Bhd had sealed an agreement with Anzeco Coal Terminal Bhd, a unit of Anzeco Corporations (M) Sdn Bhd, to undertake the reclamation. “The contract sum for the reclamation works to be executed by Benalec shall be at RM36.60 million only which shall include all costs, expenses and payments,” it said. To recap, on Feb 1, 2010, the Melaka state government had signed a reclamation agreement with Anzeco Corporations where the latter was given the right to reclaim that portion of the coast of Pulau Konet measuring 60 acres. Benalec said the reclamation would start within four weeks from the date of the agreement or upon Anzeco obtaining all necessary approvals, whichever is later. The reclamation was expected to be completed within 18 months. Among the projects Benalac delivered previously were the turnkey designing-and-building of the jetty, helipad and associated works at Pulau Perak, Kedah; construction of a marina at Puteri Harbour, Nusajaya Johor; and land reclamation and soil improvement works for Glenmarie Cove, Port Klang. Besides marine construction, the company is also involved in the vessel-chartering and marine-transportation businesses. It currently owns around 93 vessels, which are mainly used to support its marine construction activities. The vessels are also deployed for chartering services for third-party clients such as dredging and reclamation contractors, and for the oil and gas, offshore construction, general cargo, and bulk cargo industries. For the financial year ended June 2011, Benalec posted a net profit of RM96.08 million on the back of RM214.49 million in revenue. The stock closed 5 sen higher at RM1.43 with 15.29 million shares traded yesterday. This article appeared in The Edge Financial Daily, November 10, 2011. |
https://theedgemalaysia.com/node/29697 | Taste: Under one roof | English | Once in a state of disrepair, the Bauhaus-inspired bungalow tucked behind Hock Choon Supermarket, a landmark in Jalan Ampang, Kuala Lumpur, has been given a face lift. Terrace at Hock Choon houses an eclectic collection of restaurants under one roof. It is home to Il Divo Ristorante Italiano, IR1968 Indochine Restaurant & Bar from Hong Kong, and Terrace’s own Fukuharu Japanese. A German restaurant, Berliner Stube, is scheduled to open in April. Expatriates and old money KLites who live in this area of town are frequently spotted here.The concept of Terrace is this — have a good meal with your friends, and adjourn to the poolside bar for a cold beer or a nice bottle of wine. End your evening at the cosy Illy Café for coffee or a puff in the cigar room. The friendly and chatty Justin Liang, one of the founders of Terrace, makes the ideal host. He left a career in banking — working for a decade on Wall Street before moving to Singapore and a private equity firm — to return to Malaysia to start Terrace together with his childhood friend Danny Ang. Liang oversees the marketing, finance, and daily operations, while Ang conceptualised the design of Terrace. Ang trained in the prestigious Parson’s Design School, New York, and was accepted into Harvard Architecture School but opted not to go because the course was too long. He is also the proprietor and creative architect of Japanese restaurant Fukuya, which has been featured in design magazine Wallpaper. Liang says, “We always knew we wanted to do something together. And early one morning after several rounds of drinks, Danny brought me here to see this place. It was so rundown that I said to him, ‘You’ve got to be kidding!’ But Danny was very sure of what he wanted and I was sold on his conviction.” Another investor has since joined them — a retired Japanese investment banker who worked in Hong Kong and London before making Malaysia his home. Liang adds, “My wife and I used to come down to Kuala Lumpur (from Singapore) to party every weekend and we were impressed with the dining scene. If we did only one restaurant, we wouldn’t be able to change the scene much. So we decided to have three or four restaurants to have critical mass. We want to create a food and beverage destination.” The property belongs to Ang’s relatives, the Lim family who own Hock Choon Supermarket. It was initially an office for the American Association, then home for staff of the Danish embassy, and eventually occupied by an audio engineering school. Ang had been eyeing this place for the last 10 years, and for good reason. Liang explains, “This is a very strategic location because we are in the embassy area, and there are not many dining choices between Ampang Park and Ampang Point. The alternative is to drive through the KLCC area which is usually congested.” Renovations took six months. Walls were torn down to connect the restaurants and create an interactive space. The windows were removed and replaced with tall glass panels to bring a sense of the outdoors inside. A verandah was built to allow for al fresco dining. Old architectural features were retained, like the exterior stone wall, cement ventilation feature, the high-ceilinged courtyard, narrow spiral staircase, retro iron grilles, and fine terrazzo flooring from the 1950s. A new wing was built to house Fukuharu while the German restaurant will be in the other wing on the ground floor. Il Divo and IR1968 are located on the first floor. The beautifully landscaped garden of bamboo trees and various shrubs lends a homely feel to the place. The inside of Fukuharu is an accidental play of wood, cement and aluminum elements, and the result is one of different textures and depths. An unplanned example is the wooden wall installation. Seized by inspiration one afternoon, Ang picked up some pieces of wood and in a few hours, he had arranged and cut them to form standard rows of vertical and horizontal blocks. The discreet aluminum strip ceiling was supposed to be covered with plaster, but Ang decided to leave it exposed and painted it black. Another interesting feature is a cement wall built in the middle of the dining space, Ang explains, “It’s part of the Japanese culture to be seen but not to be seen. Instead of using a screen, we have a wall to divide the space to cater for private events.” At Fukuharu, new dishes like the unagi kama meshi (eel claypot rice) are introduced every three to five months, and prices are kept reasonable. Liang says, “When you present a RM12 dish like the eringi yaki (eringi mushrooms), everyone will keep an open mind. At this price point, patrons don’t have to think too much about returning here or to come in groups.” The average menu price ranges from RM20 to RM40. The menu is compact and covers the five methods of preparation traditional in Japanese food — raw, simmered, fried, steamed and grilled. In keeping with tradition, the Kaiseki appetisers are a combination of subtle flavours and delicate ingredients. We had tuna sashimi roll with Japanese pickle, fresh salmon roe, radish and two-coloured egg with finely chopped almond as a topping, and sushi wrapped in bamboo leaf. Different ingredients are paired off for contrasting tastes, like the tori shioyaki yuzu koshuo, a salt-grilled chicken served with Japanese citrus paste, the unagi tempura of crunchy coating and tender soft eel, or the eringi yaki perfectly grilled with garlic. Il Divo, the Italian restaurant that moved here from Desa Sri Hartamas, is warm and homey. Il Divo offers hearty meals in a lovely dining area on the balcony. The buffalo mozzarella and tomatoes lightly drenched in olive oil, the homemade tagliatelle in beef and tomato sauce, and rack of lamb are a few of the chef’s recommendations. The owner Vincenzo Cuomo has a larger-than-life personality and no qualms about rolling up his sleeves to serve his guests. Average menu prices range from RM30 to RM70. IR1968, is an Indonesion restaurant orginally opened in Hong Kong in 1968. Here you’ll find a range of curries, rice and noodle dishes, at an average price of RM20 to RM35. Ang says, “I’ve known the owners for years. They are young, energetic, and most importantly, we are on the same wavelength.” IR1968 is run by Hudson Chang, a third-generation member of the family business. The group has outlets in Causeway Bay and Mongkok in Hong Kong. Chang’s grandfather left Indonesia to study in China and then went to Hong Kong to work and settled down there. The affable Chang says, “Our restaurants were totally Indonesian. But I was born in Hong Kong, and influenced by Chinese culture. So now, our food and designs are a mix of Indonesian and Chinese flavours.” IR1968 is a nice contrast to cool Fukuharu, with its cheeky combination of cement flooring, bold red and black walls, rustic wooden furniture accented with colourful cushions and fire-engine red Balinese enamel lamps. Since its inception, Terrace has hosted a few events, and there are plans to host exhibitions by painters and photographers, and possibly wine and cigar talks. The aspiration is to grow and become a regional player. Liang says, “When you’re a global player, you can add more value.” Asked whether he regrets leaving a lucrative career in banking, Liang says after some thought: “The hours in F&B are as long and intense as banking. I have no regrets because we have big plans for Terrace.” If the time is right, the next pit stop may be Beijing. This article appeared in haven, Issue #42, April + May 2010, the deco and garden publication of The Edge Malaysia |
https://theedgemalaysia.com/node/9562 | OSK Research: Near-term outlook in favour of bulls | English | In its technical analysis, it said on June 25 the market gapped up at the opening bell and after the KLCI tested the 20-day MAV line a few times during the session, the moving average line was finally violated. OSK Research said the violation basically confirmed that the KLCI has indeed reached a bottom at the 50-day MAV line. "The fact that the market was able to gain support at the 50-day MAV line and then subsequentlybreak above the downtrend line on June 24 followed by another violation at the 20-day MAV line confirms that the KLCI is establishing a new uptrend. "The near-term technical outlook has now shifted back in favor of the bulls," it said. OSK Research said from the current level, look for an immediate resistance at the tough 200-week MAV line which is now situated at the 1,095-level. To the downside, it said investors should look for the 20-day MAV line or the 1,068-level as the immediate support followed by the “Upside Gap” ranging from the 1,057 level to the 1,064 level. |
https://theedgemalaysia.com/node/65709 | Penang to buy unsold low-cost units for low-income group | English | GEORGE TOWN: In what is seen as an unprecedented move, the Penang government says it plans to buy up unsold low-cost housing units in the state for the purpose of leasing them out to low-income families. To kick off this initiative, it will buy 50 low-cost units in Simpang Ampat, Seberang Perai Selatan (SPS), and gauge the response first before embarking on more such projects in the future. State Local Government, Traffic Management and Flood Mitigation committee chairman Chow Kon Yeow said the state government plans to lease out the RM25,000 single-storey, terraced houses to the low-income group. “We will see how this goes first before we decide to buy more units from developers who cannot sell their low-cost units. “We decided to purchase 50 low-cost units from one developer in Simpang Ampat who could not sell the units because of the disproportion of low-income groups in that district,” he said. Asked about low-cost units in other parts of the state including Seberang Perai Utara, Seberang Perai Tengah and Northeast District, Chow said there were none available there as they have a smaller number of people in the low-income category. He said housing developers are obligated to allocate 30% of their developments to low-cost units under the law and it is the unsold units in these projects that the state government intends to acquire. Chow was speaking after witnessing a signing ceremony between the Penang Development Corp (PDC) and Zubicon Sdn Bhd to build 1,900 affordable housing units at Jalan S P Chelliah here. The project comprises medium and low medium cost apartment units, priced at between RM72,500 and RM400,000 with floor space ranging from 700 sq ft to 1,000 sq ft. Chow said RM50 million proceeds from sales from the project, to be built on 11.04 acres of land belonging to Penang Island Municipal Council (MPPP), would be channelled back to the local council. “Since MPPP is the landowner, RM50 million of the property sales will go to them. The rest will be taken by Zubicon which is not charging the state a single sen,” he said. MPPP has appointed PDC as its project administrator. Zubicon was selected to develop the land after its submission in the open competitive tender was picked as the best bid for the RM500 million project early this year. This project is one of seven affordable housing schemes in the state, comprising three on the island and five on the mainland, Chow said, adding that work will begin in May or June next year. A total of 19,093 units will be built, with Batu Kawan housing the highest number at 11,800 units that would be constructed over a period of 10 years. The other project sites are Teluk Kumbar (696 units) and Jelutong (556 units) on the island, and Kampung Jawa (707 units), Ampang Jajar (1,634 units), off Jalan Berapit (1,000 units) and Bukit Juru (800 units) on the mainland. “Penang’s commitment to ensuring the projects progress smoothly as planned is backed by our Affordable Home Fund which has RM500 million, the biggest compared to other states. “It was set up last year and is managed by Chief Minister Inc (CMI) with PDC as the implementing agency,” he said, adding that the Jalan S P Chelliah project would not receive any allocation from the fund. The green building index (GBI) “gold class” status project includes RM25 million worth of facilities and communal infrastructure such as a pavilion, linear park, riverfront point, ‘big tree’ skyway and bus terminal. 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 November 27, 2013. |
https://theedgemalaysia.com/node/41304 | HDBSVR: KLCI to see marginal upward bias | English | KUALA LUMPUR: Hwang DBS Vickers Research (HDBSVR) said the FBM KLCI, after showing a positive performance on Wednesday, Dec 8, it would probably continue to range-bound with a marginal upward bias on Thursday. The research house said technically, the immediate resistance level stands at 1,525 while the downside will be supported at 1,495 level. Meanwhile, major U.S. equity barometers ended in the positive territory -- up between 0.1% and 0.4% at the closing bell – lifted by optimism on a potential extension of tax cuts and AIG’s planned repayment of the Fed’s credit facilities extended in 2008 to bail out the insurer. In terms of individual company developments, investors are expected to focus on: (a) DRB-HICOM as media reported that Tan Sri Syed Mokhtar is contemplating a privatization of the conglomerate with a potential offer price comparable to its net tangible asset of RM2.50 as at Sept 10; (b) Dayang following the announcement of the disposal of its 40% stake in Borcos for RM135 million cash. |
https://theedgemalaysia.com/node/34738 | Midday Market: Select blue chips drag KLCI lower | English | KUALA LUMPUR (Jan 10): The FBM KLCI drifted lower at the midday break, weighed by select blue chips, in line with the wavering sentiment at most regional markets ahead of crucial data due late in the day in the US and China. At 12.30pm, the FBM KLCI shed 0.70 points to 1,827.51, weighed buy losses including at Tenaga, BAT and PPB. Losers over took gainers by 358 to 303, while 312 counters traded unchanged. Volume was 1.02 billion shares valued at RM917.32 million. The top losers included BAT, UMS, PPB, GW Plastics, Aeon, Tenaga, Hartalega, Naim and Grand Hoover. Hubline was the most actively traded counter with 69.62 million shares done. The stock was unchanged at 6 sen. The other actives included Ingenco, Minetec, China Stationery, Iris Corp, Globaltec, Barakah and Marco. The gainers included Tasek, BLD Plantations, HLFG, MAHB, Tahps, Quality Concrete, 3A, Century Bond, Karex and Batu Kawan. Hong Leong IB Research said trading sentiment was likely to be muted today ahead of the crucial U.S Dec 2013 jobs report tonight. “While we expect the FBM KLCI to remain volatile on the near term direction, we remain optimistic of its ability to build a platform along 50-d SMA near 1821 zones for continuation of the prior uptrend. “Today, KLCI is expected to trade range bound within 1825-1835 zones,” it said. Elsewhere, Asian share markets stayed soggy on Friday after Chinese trade data proved to be a mixed bag, leaving investors with little incentive to take positions ahead of the U.S. jobs report, according to Reuters. While China's exports grew a little less than expected at 4.3 percent in December, from a year earlier, imports easily outpaced forecasts with an increase of 8.3 percent, it said. |
https://theedgemalaysia.com/node/7066 | Advice from the experts | English | Due to time constraints, speakers at The Edge Investment Forum on Real Estate 2009: 'Residential property values: How low can we go?' were unable to take all the questions from the floor. Participants were invited to send in additional questions and indicate to whom they were directed. The responses are published below: Previndran Singhe H M Chiew:Did you or your clients invest in YTL’s D7 or D6 project in Sentul? Do you think the project has potential? Previndran: Yes, they did. In fact, we also looked at it but were a bit too late on the lots we required. Yes, I think it has, being the first proper office-type development in Sentul. Can you refer me to your expatriate rental department? I have a condo to let in Bangsar.Kindly call Antoine Commare at (03) 2092 2008. Adrian Wong: Most of the speakers seldom or never mention the property outlook for the Cheras area... what are the reasons? Previndran: Cheras is a mature location, (and it is a) given it will do well. I think Cheras is a good investment, especially landed developments. How do you think property in the Cheras area will fare in five years? (I am staying in Taman Desa Bukit Cahaya Cheras (MBSB project), somewhere around Damai Perdana Cheras).Landed developments will hold value with growth in selected developments. I bought my house at RM170,000 four years ago. It is freehold, at 18ft x 65 ft, with renovations costing around RM100,000. The bathroom and kitchen have been extended. How much (prediction) would it be if I sold it in 5 to 10 years time?Sorry, I don’t have the skills for a five-year projection. I intend to purchase a 2-storey terraced corner lot, maybe in Cheras Hartamas or Taman Segar Bukit Jaya in the next 5 to 10 years, for my occupation. Are these areas good for capital appreciation?Yes, they are, but I still prefer the more mature developments with lots of amenities. Is the Sky Residences worth a buy? What about its address then? Truly worth a buy. It might be in Kampung Baru, but it has got superb accessibility and it is brought to you by a branded developer. Kumeran: I have invested in a new condominium, Kiara 1888, in Mont’Kiara. This is a new player in Mont’Kiara and the location is pretty good... it is beside the Garden International School. The purchase price was about RM350 psf. What is your opinion on this new development and do you see any solid capital appreciation for condos in this area from 2010 onwards?Previndran: I think the values will be flat and I do not see any solid appreciation, like for most condos, but what you will get is good returns rent-wise. During the forum, a lot of time was spent talking about the KLCC area and other safe havens like Bukit Damansara. What about Mutiara Damansara? Super linked houses here are priced at RM1 million upwards and they don’t show any sign of easing.Mutiara Damansara is a superb development. Boustead truly outdid itself here. I do not see prices going down. Instead, I see prices inching up. What is your opinion on the leasehold area in Damansara Perdana? Good investment? Should I dispose of in a few years, particularly Metropolitan Square condo where Citibank is located?For Damansara Perdana, stick to commercial and landed residential that will be coming soon as I don’t see strong value movement on the high-rises. As for Metropolitan Square, try to retain for rental income, as good tenants in the building will attract more good tenants in the future. Andy: Is it good to invest in the following projects: Suasana Bangsar; Plaza Damas 3 serviced apartments; Setia Walk (Puchong) high-rise apartments; Jade Hills Bungalow by Gamuda; and Hijauan Residence by Mah Sing?Previndran: Suasana Bangsar — resounding yes; Plaza Damas 3 serviced apartments — be selective on the units; Setia Walk (Puchong) high-rise apartments — resounding yes; Jade Hills Bungalow by Gamuda — resounding yes. Hijauan Residence by Mah Sing — yes. Wong Pin Siong: Are the condominiums in Bangsar South developed by UOA an attractive investment?Previndran: Yes. Horlic Lim: My information:Serviced apartment purchased: Casa Suites service apartmentDeveloper: DijayaLocation: Damansara Intan (between Ken II and Tropicana Mall)Size and rooms: 821 sq ft; 1+1Price purchased from developer: RM235,900 with 10% downpaymentLoan: CIMB Bank Flexi Loan (BLR at 1.5% for whole tenure), monthly instalment RM1,137 (based on BLR 6.75%)Purchase date: July 2007VP handover date: May 2008Move-in cost: About RM20,000 (everything, like light fittings, furniture, electrical equipment, and so on)Source/type of income: Fixed salaryMy strategy: Prefer to buy apartment or condo (higher price, smaller unit, but good location) for the first few properties because need them to generate positive cash flow instead of locking in my money in landed property (will only be able to buy landed property at not-so-good locations) which normally do not carry good rental price. Subsales transaction price: RM380,000Rental market: Six months ago at RM2,300, currently about RM2,000My question: Based on the capital appreciation and rental income consideration, should I sell it off or rent out?Previndran: Sell and recycle the money. I don’t see any more upside value. The Edge:Where are we in the property cycle? Are we at the bottom or near bottom?Previndran: Bottomed out. More units are coming into Mont’Kiara and the KLCC. What does this mean for the older ones?Older ones will need to go through gentrification in order to be relevant, as otherwise it will be hard to retain tenants. For example, Eng Lian did a great job with Sri Wangsaria in order to keep the development relevant in Bangsar. Ho Chin Soon Adrian Wong: Is S P Setia’s high-end condo project Sky Residences considered part of the KLCC enclave? Ho: I would not consider Sky Residences as strictly within the KLCC enclave. Sky Residences is just at the edge of the Golden Triangle and its location is unique. However, we cannot discount the fact that a branded developer like S P Setia can create a branded product which will have a demand and thus stretch the definition of where exactly the Golden Triangle should end or begin. The land size of Sky Residences is also relatively large, at almost six acres, and as such quite sizeable, and access to Jalan Tun Razak is definitely a plus point. I believe the proposed pricing for Sky Residences has already factored in its location as being on the outskirts of the Golden Triangle. Jeff: What is your opinion of the KL-Imbi properties in Jalan Padang and Jalan Walter Grenier? Any chance of urban redevelopment since DBKL has rezoned the area for mixed commercial use?Ho: The problem is there would be too many individual shop owners. For an effective and sizeable development which can generate good profits, a developer has to accumulate many parcels and then amalgamate them for redevelopment to be meaningful. Thus, parties on the ground buying up parcels tend to be low profile and secretive until such time when they have reached their objectives. The said location is very good for hotels, entertainment centres and boutique shopping centres. Several parties have already started to accumulate shophouses for redevelopment in the future. Horlic Lim:Glomac Damansara project’s serviced apartments are expected to be launched either at the end of this year or early 2010 at around RM600 to 650 psf. Is the price reasonable?Ho: The location is quite good and in an established mature neighbourhood. You also have the Tropicana City Mall nearby. The site is adjoining Desa Kiara Condominium. Also nearby is a medical specialist centre. I have no problems whatsoever with the location. The question is then a matter of pricing. Presently, RM600 psf sounds reasonable but will that be the price at the end of this year or early next year? Again, what are the features and finishes for the project? If the specifications are good and top class and if the market improves, then probably the price may go up. Let us wait and see. Wong Pin Siong:Are the residential properties in Kota Kemuning, especially those in Kemuning Utama, worth buying for investment?Ho: Generally, landed residential properties (compared with commercial properties) will not offer rents and yields that are as good. However, there may be a good chance for good capital appreciation. Kemuning Utama is at the edge of the first-tier locations of the Klang Valley. You might want to consider it as first-tier due to the Kesas Highway. The Edge:Which are the locations in the second-tier that have the most potential of being elevated to first-tier?Ho: In some of my talks in seminars, I have considered certain locations to be first-tier locations even though they are located within the second-tier as indicated in our Klang Valley maps. These locations are those that are connected and linked to highways that bring the residents to Kuala Lumpur and Petaling Jaya. Examples would be Setia Alam with access to the New Klang Valley Expressway, Alam Impian with access to the Kesas Highway and Melawati fronting the Middle Ring Road II (MRR2). Chris Tan Jeff:I liked your opinion on the landlords’ association but I don’t think it is workable if it is not coming from the authorities (Ministry of Housing and Local Government). Why don’t you propose to the ministry to set up a governing body to manage rental bonds and disputes on tenancy? I propose the amendment of the existing laws and that all tenancy issues be handled directly by this new set-up. This will avoid the lengthy court processes, if problems arise. Also, with the accumulation of tenants information, they can sell the information to all landlords in the future, like how the banks are paying for CTOS search right now.Tan: Having a collective platform like the landlords’ association is always better than our individual lobbying of the authorities. Therefore, the creation of the landlords association is precisely catered to highlight these issues to the authorities. The setting up of a special tribunal to deal with all issues in relation to landlords and tenants, as you have suggested, is definitely part of the agenda of the landlords’ association. There are models we can adopt from countries with similar jurisdictions, for example, Australia, Singapore and the UK. The landlords’ association can therefore adopt the best practices from these jurisdictions for a hybrid model that fits the Malaysian environment. A lot of research and lobbying are required for this purpose and it is definitely not within the individual resources of you and I alone. We therefore propose the setting up of a landlords’ association. To maintain neutrality, the landlords’ association should not commercialise the information gathered and sell it like CTOS. Wong Pin Siong:What is the next course of action if a tenant refuses to move out after an eviction order is obtained?Tan: The next course of action would be to seek the court’s directive to evict the tenant by force. Upon the landlord’s application, the court will order the bailiff to do the following:a) To enter by force if the tenant refuses to allow entrance;b) To remove all items not belonging to the landlord and place them in a warehouse of the district police station; andc) To be assisted by a guardian (normally police officer) during the process.Then, arrangements will be made with the court’s bailiff to execute the eviction order accordingly. The Edge:Since being a landlord can be such a nightmare, with the law favouring tenants, would you be a landlord yourself? Why?Tan: Having nightmares does not prevent you from sleeping, for sure. Similarly, tenants from hell are rare. If the return and yield from the property investment remain attractive and there are ways to prevent and manage this nightmare situation, as we have suggested, it makes sense to be a landlord. With a growing population and scarcity of land, real estate investments always prevail in the long run. The landlords’ association is a good idea but is there a possibility that the idea will be just a pipe dream?The landlords’ association is definitely not a new idea and has been mooted locally in the past. However, there is lack of a champion to make this happen. We, through our Hi5er Club initiative, would like to put ourselves forward to support and sustain the idea of a landlords’ association and hopefully, with your keen participation, we can make it happen. We would like to point out that this initiative remains a self-help. Therefore, it is relative to how much effort that you and I are investing in this proposition. In the next quarter, the Hi5er Club is ready to carry the baby. Your participation shall determine the sustainability of this project and beyond. How can one be sure that the information shared among landlords won’t be used to ‘steal’ tenants?There are pros and cons in everything and the key, as we presented to you last Saturday (in the forum), is always to achieve the equilibrium. We live in a capitalist society and competition is always encouraged. The benefit of making informed choices through information sharing is therefore shared not just among the landlords but the tenants as well. We should not be deterred by healthy competition and instead believe that progress can be achieved though such competition. Furthermore, your interest as a landlord against early termination can be protected within the scope of the tenancy agreement while the landlords’ association can always have a code of ethics to be observed by its members. Kam Wei Tsung Adrian Wong:Speakers seldom or never mention about the property outlook in the Cheras area, why?Kam: Cheras, Kepong and Puchong at one time were about the same, but today Puchong and Kepong property prices outpaced Cheras, mostly due to more demand in those areas but new highways are making Cheras well-connected and easier to access. How do you find property in the Cheras area in five years time? (I am staying in Taman Desa Bukit Cahaya Cheras (MBSB project), somewhere around Damai Perdana Cheras).Definitely, property prices will edge up but we need to compare with other localities, and supply and demand will have to be assessed. I bought my house at RM170,000 four years ago, freehold, 18 x 65, renovations around RM100,000, with extensions to bathroom and kitchen, so how much (prediction) if I sell it in five to 10 years time?I won’t be able to predict the price but how I will do it is, if five years later the price is RM200,000, then I would like to buy it at RM150,000 or less. I normaly make my money buying at the right price and my appreciation is already in my pocket. I intend to purchase a double-storey terraced corner lot maybe in Cheras Hartamas or Taman Segar Bukit Jaya in the next five to 10 years, for own living, so are these good areas for capital appreciation?Yes, landed property normally appreciate better than apartments or condominiums and you need to compare with other possible offerings of similar types of property in the Cheras area to know the whole picture. Also, study other locations to get a better point of reference. Is the Sky Residences property worth buying? What about its address then?I would develop my individual game plan, identify my target market and then only identify my target area to invest. The Sky Residences would cater more for high-end tenants like expatriates, so if you target expatriates, you need to do further research and identify their favourite places of residence, namely, KLCC area, Ampang, Bangsar, Damansara Heights and then decide whether the location of Sky Residences is a hot and preferred address. Jeff:You mentioned creating a community of property entrepreneurs. Is this how you managed to acquire so many properties in just a few years? Did you form a company to acquire, or in your personal name? Where do you normally get information on good buys; from word of mouth, agents, classifieds, auctions?Kam: Yes, we formed this property entrepreneurs community which provides guidance, knowledge and mentoring to members to see property investment as a business and teach them the skills of property investing, habits and the mindset of a property investor. This enables them to know how to evaluate deals and analyse deals together and to have the confidence to go into deals together. After they have established their own property investment, game plan and have excess funds, they can participate in larger projects together and we normally set up a company (Sdn Bhd) to purchase the property. We get to know of good buys by having established links to real estate agents and auctioneers and other channels over the years. You need time to build on these channels. Wong Pin Siong:Are the residential properties in Kota Kemuning, especially those in Kemuning Utama, worth buying for investment?Kam: We would advocate knowing and developing your game plan first before embarking on purchasing a particular type of property. The game plan includes purchasing property for cash flow, capital appreciation, holding for long-term, mid- term or short-term, combination of BTK (Buy to Keep) or BTS (Buy to Sell) portfolio and others before even purchasing a particular property. Horlic Lim:My information:Serviced apartment purchased: Casa Suites service apartmentDeveloper: DijayaLocation: Damansara Intan (between Ken II and Tropicana Mall)Size and rooms: 821 sq ft; 1+1Price purchased from developer: RM235,900 with 10% downpaymentLoan: CIMB Bank Flexi Loan (BLR at 1.5% for whole tenure), monthly instalment RM1,137 (based on BLR 6.75%)Purchase date: July 2007VP handover date: May 2008Move-in cost: About RM20,000 (everything, like light fittings, furniture, electrical equipment, and so on)Source/type of income: Fixed salaryMy strategy: Prefer to buy apartment or condo (higher price, smaller unit, but good location) for the first few properties because need them to generate positive cash flow instead of locking in my money in landed property (will only be able to buy landed property at not-so-good locations) which normally do not carry good rental price. Subsales transaction price: RM380,000Rental market: Six months ago at RM2,300, currently about RM2,000 Based on the capital appreciation and rental income consideration, should I sell or rent out?Kam: If I were in your shoes, as I am a cash flow investor, I would do a top-up loan on this property at new market value of RM380,000 and have a new loan of RM342,000 (subject to getting banks valuation at RM380,000 and getting a new 90% margin of finance). Let’s say my current loan outstanding is RM210,000, then I would have RM132,000 as an overdraft account, and I will only pay interest if I use the funds in my overdraft account. In this manner, I will still be paying the similar RM1,137 per month and getting rental income at RM2,000, and thus a gross positive cash flow of RM863. Therefore, I don’t need to sell the property and I establish a RM132,000 overdraft account and I still hold on to this property and getting positive cash flow. Always remember your wealth is created in BTK portfolio over the longer run and BTS portfolio is to generate seed money to reinvest into BTK portfolio. For me, I normally buy and seldom sell unless the offer is super fantastic. Lau:Is investing in a real estate investment trust (REIT) a good idea? Say, I have RM50,000, should I use this cash to part-finance the purchase of a house bought as an investment or invest in a REIT? My main objective is to have a steady flow of income. (REIT distributes 90% of its income from the rent collected as dividend to unit holders.)Kam: As a property investor, I constantly think of the “concept of best use” for my property. So, I like to invest in physical properties that I can add value to and in this case REITs won’t qualify as I can’t personally add value to them. The Edge:One of your recommendations was to invest in student housing, but students are not often the best of tenants as they may not maintain the property. Your comments?Kam: We choose our student tenants, we run through some interview questions before taking them on as our tenants, thus reducing problematic student tenants. Tell us your top three investments (type and how much, other relevant details) so far.We would advocate knowing and developing your own game plan first before embarking on purchasing a particular type of property. This includes purchasing property for cash flow, capital appreciation, holding for the long term, mid term or short term, deciding on a combination of BTK (buy to keep) or BTS (buy to sell) portfolios. One needs to understand the whole big picture on property investing and it would not be appropriate for me to name you the investments as property means different things to different people at different stages in their lives. For example, a person in his 30s may view property investment as buying his own home, in his 40s may view property investment as a part-time business giving additional income, in his 50s may view property investment as purely retirement income. So by not knowing so many variables, I will not want to name the investment as it may give a wrong or misleading outcome for you. In your talk, you have identified places like Jalan Pudu and anywhere downtown as addresses to invest in. However that may be too expensive for first-time investors. Perhaps you can suggest other locations?Actually, I do not normally recommend hot areas to invest in as it very much depends on each individual’s capacity and game plan on properties and risk tolerance and whether you’ll be holding for the long term, mid term or shor term. So, if Jalan Pudu is pricey, you can look at another property within your budget. So, shall we buy now or wait?First, we need to have a personal game plan on properties, whether we plan to buy a particular type of property and if it hits 50% below market value. We would buy as we have set out in our plan. We have a big margin of safety as we purchase it at 50% below market value. We won’t buy if the price is 30% below market. It’s important to stick to your plan. Eric Ooi Wong Pin Siong:Are the condominiums in Bangsar South, developed by UOA, an attractive investment?Ooi: Park Residences in Bangsar South have shown commendable sales performance since its launch. The Begonia block, priced between RM320 and RM380 psf, was sold out, while the Acacia block, priced from RM420 psf, is now 50% sold. The rents for Park Residences are expected to range between RM2 and RM2.50 psf, with yields ranging between 7% and 8%. CSP:How does one assess the yearly insurance value of a bungalow with built-up of over 5,500 sq ft, with good finishes, and a 5-storey shop unit with lift. The insurance company indicates a figure to us but how do we know whether the properties are under-insured? Is it calculated on the cost of construction on a sq ft basis and if so, what is it with today’s prices of construction materials?Ooi: The insurance value is basically the replacement cost of the new property to be insured. The replacement cost is essentially the total current construction cost of the building, which varies depending on its construction, structure, finishes and so on, and we recommend that you seek the advice of a quantity surveyor or cost consultant. The Edge:Where will you personally put your money, in what kind of property, and why?Ooi: For high-end condominiums, those in Bangsar and Damansara Heights, as supply is limited and rent demand is good. Furthermore, these are popular addresses. You mentioned that the units due for completion this year in KLCC area are coming onstream at a wrong time. So, how will they impact occupancy and rents there?Rents will be compressed as more supply enters the market. Occupancy of some of the condominiums may be affected too, especially the larger units, as there are fewer expatriates with high rent budget in today’s economic environment. So, is it still a good time to buy properties in KLCC? Or would the surburbs be a better choice?Good time now to prospect for good buys in prime developments. Stephen Tew Jeff:We acquire and manage properties on a very small scale, compared to your quantum, and thus would like to seek your opinion on how we can grow bigger from a small portfolio. We are now facing an obstacle to growing. Issues, such as good properties are not easy to find (therefore, it takes time). Existing properties give you positive cash flow, but that is not sufficient to fund new acquisitions. Normally, we use internally generated funds (that is, shareholders’ own resources) unless we have to refinance the existing portfolio and be higher geared. However, by doing so, we are committing higher repayments to existing portfolio and thus fall into negative cash flow. This is very risky if we don’t manage it properly. How can we turn ourselves into a sizeable property investment group with healthy cash flow? Any good recommendations of industrial lots with 8% yield and above? Such as in Glenmarie and Subang hi-tech? What do you think of Paramount’s Surian industrial park that is offering 10% discount for early bird buyers? At a nett purchase price of RM2.7 million, do you think we can generate RM18,000 rent?Tew: Yes, refinancing to grow can be risky unless your yields are very high and you have multiple tenants. Unfortunately, during the early years into your investing, you will need to sell in order to recycle your capital quickly to generate a higher return on capital. You should only keep for long-term growth when you have reached a certain mass. Recommended locations for industrial investments would be PJ, Shah Alam and Klang North Port. The Edge:You specialise in commercial and industrial properties but if you were to invest in a residential property, where will you put your money?Tew: For residential, I would put my money in Damansara Heights. You have stated that industrial property yields range between 8% and 10%. Can this still be expected during these times?Yes, especially in Shah Alam and Klang North Port. Domestic versus multinational corporation (MNC) tenants — which is better, and why?You buy domestic-tenanted locations with the aim to sell, and you buy MNC-tenanted locations with the aim to collect rent. You mentioned in your talk that now is not a good time to invest in vacant industrial land. Why?Industrial land prices have been moving up quite a fair bit for the past many years and construction costs have also been rising. Rents have not risen much. Therefore, yields are being compressed. The market for industrial land today is merely for purchase by actual end-users who will buy to use not as an investment, so the market is slower. Buying vacant land is also very difficult to finance if you don’t have a very strong track record. This article appeared in City & Country, the property pullout of The Edge Malaysia, issue 750, April 13-19, 2009. |
https://theedgemalaysia.com/node/89535 | Heralding an era of celebrity space explorers | English | SINCE the dawn of time, mankind has pushed the boundaries of exploration. And while Christopher Columbus once set sail to prove that the Earth was round, those who can afford to pay the price for a space ticket can now see it for themselves. Then there are those who can opt to make the Red Planet their permanent address. At least two companies are planning space journeys with the first possibly taking off as early as next year, while another intends to set up permanent settlements on Mars. Volunteers for the Mars One programme will be able to see the earth from their settlement on the Red Planet. And it seems that the advent of space travel is being embraced enthusiastically, considering the 78,000 people who applied for Mars One's astronaut selection programme, just two weeks into the 19-week application period that started in late April. These potential astronauts are signing up to live out the rest of their lives on the Mars settlements that Mars One is planning to establish every four years from 2023. But for those not yet willing to say goodbye for good to the third rock from the sun, fret not, as the race to commercialise space travel is on. Pitted against Richard Branson's Virgin Galactic is Dutch start-up Space Expedition Corp (SXC), both of which hope to start taking tourists up to space as early as 2014, Wired magazine reported recently. SXC's Lynx Mark II is set to blast off by late 2014, with tickets going for US$95,000 ($296,000). Flights to higher altitudes are planned in 2015, priced at US$100,000. Virgin Galactic has two spacecrafts, the VMS Eve and SpaceShipTwo, undergoing flight tests. SpaceShipTwo has been open for booking since 2005, with tickets going for up to US$250,000. While no take-off date has yet been set, below are some famous names who are said to have already reserved their zero gravity seats. Paris Hilton We understand that Paris may be a little disappointed that her steed to space is not going to be pink, but as they say, Stars Are Blind. Princess Beatrice Famed for her infamous hat that stole the show at Will and Kate's royal wedding, this princess has graduated to space helmets.Michael Schumacher, Rubens Barrichello and Nikki Lauda These Formula 1 racing stalwarts have found another source for that adrenaline rush: space exploration.Brad Pitt and Angelina Jolie This power couple have been to the far recesses of earth and to poverty-stricken countries. It's about time they ventured into space. Hopefully, they won't bring along the entire Jolie-Pitt brood. Philippe Starck The French designer has his name on products ranging from furniture and architecture to watches, juicers and even windmills. It'll be interesting to see what a flight to space inspires in this man.Stephen Hawking Who knows more about space-time than the man himself? A trip to space may spark off ideas from this bona fide genius that the scientific community will be pleased to hear. Ashton Kutcher Yes, believe it. Or not. It might just be a potential prank. Justin Bieber As it turns out, having been All Around the World is not enough for the Biebs. This story first appeared in The Edge weekly edition of June 17-23, 2013. |
https://theedgemalaysia.com/node/55668 | MIDF research downgrades ports sector to negative | English | KUALA LUMPUR: MIDF Research had downgraded the ports sector from neutral to negative in face of weaker exports to the faltering US economy and Europe's sovereign debt crisis. It said on Monday, Oct 3 that Malaysia's export slowed down as it posted a 7.1% year-on-year (y-o-y) growth in July 2011 from 9.6% y-o-y increase in June 2011. In terms of sequential month, July's export was 2.2% month-on-month (m-o-m), lower than 5.1% m-o-m posted in the previous month, it said. "We believe that this had led to the decline in Electrical and Electronics exports where it continued to decline for the fifth consecutive month," it said. The research house said the declining exports would add pressure to seaports, especially container based ports given that rates are fiercely competitive. Meanwhile, port traffic is seeing signs of easing as well as NCB Holdings Bhd's faltering port twenty-foot equivalent units (TEU) growth. The group posted a decline of 3.4%y-o-y in its 1H11 port TEU while port revenue fell by 1%y-o-y. Also, port profit before tax margin declined by 5.8 percentage points, which suggest the company was facing margin squeeze and rates pressure. However, the research house maintained its Neutral rating on NCB citing its defensive qualities as its dividend policy would moderate weaken sentiments. |
https://theedgemalaysia.com/node/22576 | Hot Stock: Golsta falls 11.7% on disappointing offer from Clement Hii | English | KUALA LUMPUR (Feb 24): Golsta Synergy Bhd fell 29 sen or 11.7% at noon as investors were disappointed with the takeover offer price of RM2.10 per share. Last Friday, the stock rose sharply by 48 sen or 24% to close at RM2.48 after news broke at noon that journalist-turned-businessman Tan Sri Clement Hii had bought 27.27% stake in Golsta Synergy. At market close last Friday, Hii announced he had acquired a total of 36.69% stake in Golsta Synergy and would launch a conditional mandatory general offer for the rest of the shares at RM2.10. At 12.02 pm, Golsta fell 29 sen or 11.7% to become the fourth top loser on the exchange with trades of 220,600 shares done. Hii had bought Golsta Synergy shares through GS Capital Sdn Bhd. Golsta is an investment holding company which engages in the design, fabrication and installation of industrial machines. It has operations in the cultivation and marketing of oil palm seeds and seedlings. Golsta is currently a loss-making company, reporting a net loss of RM1.61 million in its third quarter ended Sept 30, 2013. It had a net asset value of RM1.161 per share. Hii, a known corporate player, has personal investments in education, properties, media, technology, manufacturing, and food and beverage. |
https://theedgemalaysia.com/node/91201 | TPP to have little impact on Malaysian SMEs | English | KUALA LUMPUR: The Trans-Pacific Partnership (TPP), a free trade agreement initiative involving 11 countries across the world, will have little impact on Malaysian small and medium enterprises (SMEs) when it is implemented.
Centre for Entrepreneur Development and Research (Cedar) director Dr Sheikh Ghazali Abod said the centre sees TPP as having little impact on the industry as it would take a while before it (TPP) could be really impactful. "It really depends on the progress and full arrangement of the agreement to see its effect on the SMEs," he told The Edge Financial Daily after the launch of the SME Bank's new logo yesterday. The TPP aims for a full liberalisation of duties of goods and services among the 11 countries, comprising Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, US and Vietnam. The TPP was first initiated in 2010 and has held 17 rounds of meetings to-date. On the bank's support for the TPP, Ghazali personally feels the free trade agreement has its advantages and disadvantages. "Unless you open the door to competition, these businesses are not able to grow and reach out to a wider market. In a way, it does give us the advantage to be more creative and innovative. "Nevertheless, in some industries there must be some level of protection, such as in automotive, manufacturing and some other services. But until you allow it (TPP), these businesses will never grow," he said. There would also be challenges to local firms if they want to be part of the free trade market, he noted, adding that businesses should remain cautious and be prepared for such challenges. In support of SMEs that want to be part of the free trade market, Cedar will create an avenue for them to be prepared for a different business environment. "We will support them by giving training and preparing small and medium businesses to be part of the free trade business environment. However, we would not be directly involved in accessing the market," said Ghazali. Cedar is a wholly owned subsidiary of SME Bank. It provides training and development for young entreprenuers and SMEs. SME Bank managing director Datuk Mohd Radzif Mohd Yunus said the development bank is targeting a 6% increase in loan growth for this year from RM2.9 billion in 2012. However, the projected loan growth is lower than the 8% recorded last year. Radzif also said SME Bank is looking to increase its market share of total SME financing in the country to 6% to 7% in 2015 from 4% currently.
This article first appeared in The Edge Financial Daily, on July 5, 2013.
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https://theedgemalaysia.com/node/45351 | Tastemaker | English | A person who establishes or strongly influences what is considered to be stylish, acceptable or worthwhile in a given sphere of interest Christian LouboutinDesigner of the world’s most coveted women’s shoes, Frenchman Christian Louboutin is the person responsible for making stilettos sexy again and for reintroducing them into everyday fashion. In the grand scheme of things, the Louboutin brand isn’t all that big — the man has 20 boutiques worldwide and doesn’t advertise or bombard celebrities with freebies. He just makes really beautiful and comfortable shoes, instantly recognisable from their bright red soles. No wonder he can afford to eschew obvious logos: that red sole does it all — a status symbol that purports to not to be one. Phoebe PhiloAfter giving the Stella McCartney label a chic street sensibility and making Chloe cool again, Paris-born English designer Phoebe Philo proved that her creative style was the kind that worked really well with today’s aesthetic. Joining Celine after a three-year break to raise her young children, Philo has really upped her game and established herself as an unbelievably talented designer with wearable creations that speak volumes for her innately witty and fashion forward style. Winner of this year’s British Designer of the Year award, Philo’s creations speak of a creator with an extraordinary knack for knowing what women want before they do — a rare gift indeed. Frida GianniniAs creative director of Gucci, Frida Giannini holds the reins of one of Italy’s most powerful fashion houses. Taking over from Tom Ford was no easy feat, but 38-year-old Giannini has managed to stake her own creative claim over the brand. She’s received glowing reviews for her fresh, feminine take on contemporary fashion and the way she’s completely reviving the Italian fashion label. The stunningly beautiful Giannini has also been instrumental in cementing Gucci’s continuing partnership with Unicef, which supports educational initiatives in Africa. This article appeared in Options, the lifestyle pullout of The Edge Malaysia, Dec 27, 2010 - Jan 2, 2011 |
https://theedgemalaysia.com/node/53489 | #Update* Fighting the real electoral battle | English | Last Updated: 6:22pm, Feb 14, 2014 PETALING JAYA (Feb 14): The intricacies of the electoral system have never been more apparent and digestible than after GE13. Concepts and words like "gerrymandering" and "malappropriation" quickly became political lexicons among those who cared to clear the debris after the pivotal national polls. Other than the lack of the Opposition's penetration in rural areas, nothing mattered to the artisan coffee drinkers, young professionals and retired urban, middle-class than the way boundaries of constituencies are drawn. No post-mortem of the May 5, 2013 general election results could be constructed without consideration of the unfair delineation of boundaries and constituencies. The debate has however been raging way before GE13. Electoral reform groups like Bersih 2.0 were shedding light on grave weaknesses of the political system and gerrymandering served as a hinge, pinning all the pieces of the puzzles together. In light of this, an NGO's initiative aims to change the way boundaries are delineated, by way of citizen action. Band of brothers The main player behind the initiative is non-profit organisation Engage. Its chairperson Thomas Fann spoke to fz.com recently on the initiative, which is a collaboration with Bersih 2.0. Fann said the programme – called Delineation, Action and Research Team or DART – will serve to empower citizens so that they have a voice on how the electoral boundaries are drawn. "Under Schedule 13 of the Federal Constitution, 100 affected voters can put up objections if they don't agree with the way boundaries are drawn. They have to provide reasons for it but the crucial part is, they can also propose the way the boundaries should be drawn," he said. Fann said Engage and Bersih will be there to guide the people, providing them with a formula, maps and other tools to allow them to devise their own schemes. "The main principle is that each constituency should be about the same size. Of course weightage is given for rural areas, which is fine. "Based on that we came up with a certain criteria whereby we judge if it is about the same size. Delineation should not cut local ties. All efforts should be conducted to maintain local ties and areas. "We come up with simple guidelines for people and also provide and give them the necessary resources like maps, the boundaries, compared to road maps, municipal maps, all these things so that when people put up an objection they can put up a strong case," he added. Fann said the NGO will be touring each state to launch the programme. "We are working based on the assumption that the EC is going to start the process by informing the prime minister and the speaker of Parliament in March when Parliament convenes," he said. EC chairperson Tan Sri Abdul Aziz Yusof said last month that the Prime Minister's Department was expected to table the constituency re-delineation motion in March. He told Sin Chew Daily that the EC will announce the commencement of the re-delineation work early this year. Abdul Aziz had said the EC will complete the work within two years after the motion is passed before the recommendation report is tabled in the Parliament, expected to be in 2015. He said that since the number of voters has substantially increased, and the last delineation was conducted a decade ago, re-demarcation is imperative, particularly for constituencies with more than 100,000 voters. It is ascertained that the number of seats in the Dewan Rakyat will be increased to 280 from the current 222 after the re-delineation exercise is completed. Boundaries determine political discourse The process, Fann said, if successful, may change the way politics function here. He said the delineation process is so vital to the electoral system that it has the power to determine the kind of politics-down to the kind of rhetoric, policies, discourse-that are championed by politicians. "They have drawn boundaries to make sure electorates stay true to (a) particular coalition. They will keep feeding the fear," he told fz.com. "But if you force a change in that, the demographics change, the boundaries become more reflective of a community regardless of race, they will have to change the way they pose political discourse," he added. He said this fundamental would change the total political dialogue. "If they (government of the day) draw the boundaries the way they want to, then they will keep on feeding that boundary (with the kind of issues they want), which is racial, rural etc," said Fann. "The political discourse will be on that. You will see more (of) Perkasa, more of all these threats to keep the votes within a certain quarter. "But if we can throw a spanner into the works and force them to delineate fairly for all Malaysians regardless of your ethnicity or religion, or how you voted in last election, I think it will force political discourse and dialogue to also change," he added. He said political parties will then have to win the people over with their ideologies and policies. However, Fann begrudgingly admits the future where political discourse is based on policies and ideologies remains distant. He said although urbanites are increasingly aware of the complexities and dynamics occurring in socio-politics, resulting in a less-partisan view on politics, a large swath of Malaysians on the peripheries remain just that-shadows to electoral reform. "The vast majority of Malaysians are still caught up with existence, day-to-day living. People who do not have access to information, they are still susceptible to emotional manipulation. That is my concern," he said. "They actually become easily manipulated, by what is put as very inflammatory accusations, or baseless things, like racial and religious. It seems to me that that is going to be election strategy of the ruling government," he added. Come free and all Fann said the NGO hopes to get as many people on board the initiative because this is less about getting the Opposition to win Putrajaya and more about fighting against the injustice of the system that underpins a flawed electoral democracy. "There was a study conducted and it showed that Pakatan Rakyat needs to win 63% of the majority of votes to take over Putrajaya," he said. "That cannot be acceptable. That cannot be considered fair when 38% of Malaysians can decide on majority government," he added. For all those wanting change, Fann said the endless jostles between political coalitions, street protests and forums are not the way forward for the nation, but actively getting involved in the delineation exercise is the next step towards a more equitable political system. "This is where the battle is won or lost. In the next election, if we citizens don't do anything, we may as well forget about democracy and elections. Just go on the streets, which is not what we want," he said. "The battle is not between political parties, or between Pakatan and BN. The battle is between the rakyat and the political system," he added. Those interested in signing up for the initiative can contact Bersh 2.0 at [email protected] For more stories, go to www.fz.com, the website for freedom of expression and fairness in articulation. |
https://theedgemalaysia.com/node/44844 | Challenging year ahead for AirAsia | English | AirAsia Bhd(Dec 27, RM2.20)Maintain buy at RM2.22 with a fair value of RM3.70: AirAsia’s share price has retreated by about 12% since the low-cost carrier released its results for the nine months ended Sept 30 of financial year 2013 (9MFY13). We think the selldown has been excessive and was, in part, exacerbated by the US Federal Reserve’s move to start scaling back on its quantitative easing programme. We note that AirAsia’s foreign shareholding had fallen to 49% as at end-November, from 52% in the first half of FY13. In our opinion, the selldown by foreign shareholders may have bottomed out, noting the previous low of 49% in late November 2012. According to recent news reports, Malindo Air’s owners — Indonesian billionaire and owner of Lion Air Rusdi Kirana and National Aerospace Defence and Industries — have had a falling out, and that the latter may pull out from the business. We note that Malindo Air has denied any conflict among its shareholders We expect 2014 to remain a challenging year as Malindo Air continues to spread its wings, but we think the carrier may ease up on the aggressive price competition due to its high cost structure. Carriers in Malaysia are likely to focus on cost savings in FY14, but this is not new for AirAsia as cost control is instilled into its corporate culture. Should both Malindo Air and Malaysian Airline System Bhd (“neutral”, fair value: 30 sen) adopt a more conservative approach in their expansion plans and pricing strategies, it will limit the downward pressure on AirAsia’s yields. We believe the earnings outlook remains promising for AirAsia as competition wanes and as its cost structure improves when klia2 commences in FY14. We maintain our “buy” call on AirAsia, with our fair value intact at RM3.70, based on an unchanged FY14F target price-earnings ratio (PER) of 12 times versus its current FY14 PER of 7.1 times. Incorporating the market cap of the group’s listed entities and valuing its unlisted Indonesia unit at 10 times, the Malaysian unit’s earnings are valued at an FY14 PER of only 5.2 times. — RHB Research, Dec 27
This article first appeared in The Edge Financial Daily, on December 30, 2013. |
https://theedgemalaysia.com/node/93383 | #Market Talk* Perwaja up, may be privatised | English | KUALA LUMPUR (July 23): Word through the grapevine is that Tan Sri Abu Sahid Mohamed is ruminating to privatise Perwaja Holdings Bhd as the beleaguered steelmaker has depressed valuations. This speculation had led to the rise in Perwaja share today despite news that Abu Sahid has quit as chairman of Perwaja and its parent company Kinsteel Bhd, which was traded unchanged at 27.5 sen per share. Perwaja’s latest reported book value per share came in at 67 sen. Its one-year average share price was 47.7 sen. The stock was pushed up by as much as 2.5 sen or 6.02% to settle at 44 sen today. A total of 2.08 million shares were transacted. Some steel sector analysts told theedgemalaysia.com there is speculation that Abu Sahid’s privately-owned Maju Holdings Sdn Bhd, which is the controlling shareholder of Perwaja, is looking for an opportunity to privatise the latter. “Of course, just like any other steel companies, Perwaja’s valuations are depressed. Also, Abu Sahid has enough money to buy all the remaining shares in Perwaja, for sure,” said an analyst. With a 0.9% direct interest and a 69.22% indirect interest in Perwaja, Abu Sahid will require about RM73.62 million to buy off other outstanding shares based on its current market capitalisation of RM246.4 million. “I’ve also heard that Abu Sahid might bail out Perwaja by taking a loan on his personal capacity,” said one analyst. But Abu Sahid might face roadblocks in raising funds to pay off Perwaja’s debts. As at March 31 of this year, the company had RM338.13 million in long-term borrowings and RM985.54 million in short-term borrowings. However, another steel analyst expressed doubts over the possibility of a privatisation exercise. To do so, Abu Sahid needs to offer minority shareholders with a price that is satisfactory. “Frankly, that has always been the biggest problem (for privatisation exercises). The shareholders might not agree with the offer price. Long-time shareholders who had earlier bought the shares at a much higher price might want higher returns on their investments,” the analyst told theedgemalaysia.com This privatisation talk came following news yesterday that Abu Sahid has “retired” as chairman of both Perwaja and Kinsteel. Appointed to the board to replace him was his right- hand man Ravi Manchanda, a 54-year-old Singaporean who is currently the group chief executive officer of Maju Holdings Sdn Bhd. |
https://theedgemalaysia.com/node/32290 | Kimlun's public issue of 11.45m new shares oversubscribed 2.79 times | English | KUALA LUMPUR: Kimlun Corporation Bhd's public issue of 11.45 million new shares of 50 sen, which were made available for application by the public, was oversubscribed by 2.79 times. The company said on Wednesday, June 23 that at the close of offer on Monday, there were 2,491 applications for 43.41 million shares with a value of RM42.11 million were received. The offer price was 97 sen. As for the Bumiputera portion, there were 560 applications for 7.63 million shares, an oversubscription of 0.33 times. For the public portion, there were 1,931 applications for 35.77 million shares, representing an oversubscription of 5.25 times. All notices of allotment for these shares will be mailed to successful applicants on or before June 28. Kimlun executive chairman Pang Tin said the oversubscription rate was very heartening as there were a couple of overlapping IPOs and reflects investors' confidence in the group's prospects. The entire enlarged issued and paid-up capital of Kimlun of RM114.5 million comprising 229 million shares will be listed on the Main Market on Tuesday, June 29. The listing exercise involved a public issue of 64 million new shares and an offer for sale of 11.3 million ordinary shares. The public issue of 64 million new shares would raise gross proceeds of RM62.08 million, the bulk of which will be for the construction of factories and purchase of plant and machinery. The balance would be used to purchase a parcel of industrial land, for working capital and listing expenses. Kimlun budgeted RM35.90 million to build three factories and to purchase plant and machinery to produce tunnel lining segments, spun piles of various sizes and also hollow core slabs and lightweight concrete wall panels. AmInvestment Bank Bhd is the adviser, sole underwriter and sole placement agent for the listing exercise. Kimlun is an engineering and construction services provider specialising in infrastructure and building construction, construction management and manufacture of concrete products. As at April 30, its book order was about RM730.90 million. |
https://theedgemalaysia.com/node/55672 | KLCI pares down losses, global markets slump | English | KUALA LUMPUR: Global markets took a beating on the first trading day of the final quarter of 2011, as gloomy global growth outlook underpinned by the euro zone debt crisis as well as contraction in manufacturing in Europe as new orders shrank at their fastest pace since June 2009. The FBM KLCI closed 1.41% or 19.61 lower at 1,367.52 on Monday, Oct 3, weighed by losses at banking and index-linked plantation stocks. The index had earlier tumbled more than 32 points to its intra-day low of 1,353.45. Market breadth remained negative as losers outpaced gainers by 560 to 167, while 202 counters traded unchanged. Volume was 631.32 million shares valued at RM1.14 billion. At the regional markets, Hong Kong’s Hang Seng Index tumbled 4.38% to 16,822.15, Taiwan’s Taiex fell 2.93% to 7,013.97, Japan’s Nikkei lost 1.78% to 8,545.48 and Singapore’s Straits Times Index was down 2.01% to 2,621.40. China and South Korea’s markets were closed for national holidays respectively. Banking stocks were among the major losers on Bursa Malaysia, with HLFG down 46 sen to RM10.44, RHB Capital 31 sen to RM6.69, Hong Leong Bank 29 sen to RM9.89, AMMB 17 sen to RM5.62, Affin 13 sen to RM2.36, Maybank nine sen to RM7.91, CIMB and AFG seven sen each to RM6.90 and RM3.23, while Public Bank shed four sen to RM12.16. Among plantations, KLK fell 60 sen to RM20.50, Sime Darby 26 sen to RM8.18, IOI Corp 19 sen to RM4.46, PPB 14 sen to RM16.48 and Batu Kawan 34 sen to RM14.62. Other decliners included Panasonic, BAT, F&N, DiGi, Parkson and MMHE. Gainers included Lafarge Malayan Cement, Atis, Supermax, Dutch Lady, SHL, Tasek, Petronas Dagangan, Apollo and Kotra. The actives included GPRO, Dialog, PLUS, AirAsia, OSK, S P Setia, Flonic, UEM Land and Axiata. |
https://theedgemalaysia.com/node/4269 | #Today's diary* What to expect on April 22, 2009 | English | 2. Malaysia Building Society Bhd half-day seminar on MBSB Musharakah Ventures at Royale Bintang Damansara Hotel, PJ, Selangor at 9.30am 3. Malaysian Bulk Carriers Bhd AGM at Saujana Ballroom, The Saujana, Selangor at 10am. 4. Maxis Communications launches the Maxis Team Golf Tour at Cenderawasih Ballroom, Glenmarie Golf & Country Club at 11am 5. Takaful Ikhlas Sdn Bhd launches Ikhlas Big Bike Takaful at Takaful Showroom, Padang Plaza Angsana, Johor at 11.30am 6. Yeo Hiap Seng Bhd AGM at Victorian Ballroom, Level 1, Holiday Villa, Subang, Selangor at 2pm 7. Sime Darby hosts Reverend Jesse L Jackson Sr for its Lecture Series at Sime Darby Convention Centre, KL at 7.30pm |
https://theedgemalaysia.com/node/52956 | Ranhill not seeking alternative offeror to make takeover bid | English | KUALA LUMPUR: Ranhill Bhd, which received a takeover offer from its major shareholders at 90 sen per share, led by its president and chief executive Tan Sri Hamdan Mohamad, is not considering seeking an alternative person to make a take-over offer for the offer shares. The company said on Tuesday, Aug 9 that its board of directors had deliberated on the notice of takeover and decided not to seek an alternative person. The company had earlier in the morning said it had received the notice for the takeover offer at 90 sen per share, or a premium of 15 sen or 20% above the last traded price of 75 sen on Monday. The parties acting in concert with him are Cheval Infrastructure Fund L.P. (acting via its general partner, TAEL Management Co. (Cayman) Ltd), Ranhill Corporation Sdn Bhd, Lambang Optima Sdn Bhd and Pacific Energy Overseas Ltd. They jointly own a 51.86% stake. Ranhill said on Tuesday, Aug 9 the parties made the offer to acquire all the remaining shares they do not already own via Maybank Investment Bank Bhd. Ranhill was the most actively traded counter with 55.63 million shares done. The stock added 13.5 sen to 88 sen. |
https://theedgemalaysia.com/node/13619 | Where are the global problem solvers? | English | One odd and disturbing aspect of global politics today is the confusion between negotiations and problem-solving. According to a timetable agreed in December 2007, we have six months to reach a global agreement on climate change in Copenhagen. Governments are engaged in massive negotiations, but they are not engaged in a massive effort at problem-solving. Each country asks itself, “How do I do the least and get the other countries to do the most?,” when they should be asking instead, “How do we cooperate to achieve our shared goals at minimum cost and maximum benefit?” These might sound like the same thing, but they are not. Addressing the problem of climate change requires reducing emissions of carbon dioxide from fossil fuels, which in turn involves choices in technology, some of which already exists and much of which needs to be developed. For example, coal plants, if they are to remain a major part of the energy mix, will need to capture and store their CO2, a process called “carbon capture and sequestration”, or CCS for short. Yet this technology remains unproved. Similarly, we will need renewed public confidence in a new generation of nuclear power, with plants that are safe and reliably monitored. We will need new technologies to mobilise large-scale solar power, wind power, and geothermal power. We might try to tap biofuels, but only in forms that do not compete with food supplies or with precious environmental assets. The list goes on. We will need improved energy efficiency, through “green buildings” and more efficient appliances. We will need to switch from cars with internal-combustion engines to hybrids, plug-in hybrids, battery-powered and fuel-cell-powered vehicles. Achieving a new generation of electric vehicles will require a decade of public and private partnership to achieve basic technological development (such as improved batteries), a more robust electric grid, new infrastructure for recharging the automobiles, and much more. Similarly, it will take a decade of public and private investments to demonstrate the feasibility of coal-fired plants that capture their carbon dioxide. The switchover to new technologies is not mainly a matter of negotiation but of engineering, planning, financing, and incentives. How can the world most effectively develop, demonstrate, and then spread these new technologies? Where the benefits are unlikely to accrue to private investors, who should pay for the early demonstration models, which will require billions of dollars? How should we preserve private incentives for R&D while committing to transfer successful technologies to developing countries? These are pressing, unsolved questions. Yet the global negotiations on climate change are focusing on a different set of questions. The negotiations are mainly about which groups of countries should cut their emissions, by how much, how fast, and relative to which baseline year. Countries are being pressed to cut emissions by 2020 by certain percentage targets, without much serious discussion about how the cuts can be achieved. The answers depend, of course, on which low-emission technologies will be available, and on how fast they can be deployed. Consider the US. To cut emissions sharply, the US will need to switch over this decade to a new fleet of automobiles, powered increasingly by electricity. The US will also have to decide on the renewal and expansion of its nuclear power plants, and on the use of public lands to build new renewable energy plants, especially using solar power. And the US will need a new power grid to carry renewable energy from low-density population sites — such as the southwestern deserts for solar power and the northern plains for wind power — to the high-density populations of the coasts. Yet all of this requires a national plan, not simply a numerical target for emissions reduction. Similarly, China, like the US, can reduce CO2 emissions through increased energy efficiency and a new fleet of electric vehicles. But China must consider the question from the vantage point of a coal-dependent economy. China’s future choices depend on whether “clean coal” can really work effectively and on a large scale. Thus, China’s emissions path depends crucially on early testing of the CCS technologies. A true global brainstorming approach would first discuss the best technological and economic options available, and how to improve these options through targeted research and development and better economic incentives. The negotiations would discuss the range of options open to each country and region — from CCS to solar, wind, and nuclear power — and would sketch a timetable for a new generation of low-emission automobiles, recognising that market competition as well as public financing will set the actual pace. Based on these building blocks, the world could agree on allocating the costs for speeding the development and spread of new low-emission technologies. This global framework would underpin national and global targets for emissions control and for monitoring the progress of the technological overhaul. As new technologies are proven, the targets would become more stringent. Of course, part of the strategy would be to create market incentives for new low-emission technologies, so that inventors could develop their own ideas with the prospect of large profits if those ideas are right. My plea to discuss plans and strategies alongside specific emissions targets might seem to risk impeding the negotiations. But if we don’t have a strategy to accompany our targets, the world’s governments might not accept such targets in the first place, or might accept them cynically, without any intention of actually meeting them. We need to think hard, and collaboratively, about the world’s real technological options, and then pursue a common global framework that allows us to move into a new era, one based on feasible and sustainable technologies for energy, transport, industry, and buildings. — Project Syndicate Jeffrey D Sachs is professor of economics and director of the Earth Institute at Columbia University This article appeared in The Edge Malaysia, Issue 761, June 29-July 5, 2009 |
https://theedgemalaysia.com/node/57743 | CIMB Research has technical buy on ECM Libra at 82.5 sen | English | KUALA LUMPUR (Nov 18): CIMB Equities Research has a technical buy on ECM Libra Financial Group at 82.5 sen at which it is trading at a price to book value of 0.7 times. It said on Friday ECM Libra’s share price is trying to push above its downward slopping resistance trend line on Thursday (now at 84.5 sen). “If it succeeds, there is a good chance that the candles may charge towards 90 sen and 95.5 sen. “However, only risk takers should look at this stock. This is because selling pressure could pick up if prices fail to push above the 84.5 sen level soon. For investors with lower risk appetite, wait for prices to move above 84.5 sen before going long,” it said. CIMB Equities Research said the MACD signal line has moved back into the positive territory. RSI too is above the 50pts mark. Put a stop at below 80 sen. |
https://theedgemalaysia.com/node/21407 | Malaysian Bonds | English | As for economic data, Malaysia’s exports fell by a slower pace of 19.8% y-o-y in August (-22.9% in July). The figure was the smallest contraction in the past five months though the contraction was larger than the consensus of a 17.8% decline. Export growth reversed to a decline of 2% on a m-o-m basis after three months of consecutive gains. This week, Bank Negara will auction RM4.5 billion of the current 5-year MGS (MGS Feb’15) to add to the RM5.5 billion already outstanding. “When Issued” trading was heard between 3.7% and 3.74%. Players await the latest industrial production data, which is expected to show a slower contraction of 5.7% y-o-y in August, compared with an 8.4% decline in July. Ringgit IRS rates rose 8bps, paring the previous two weeks of declines. Last week, global markets were caught unawares when Australia hiked its policy rate by 25bps to 3.25%. The corporate bond market continued to close on a firm note, reflecting the rising risk appetite among investors. However, fund flows remained slanted in the higher grade AAA and AA1 segments. Among the heavily traded names last week were Rantau 11 (AAA), which shed 5bps to 2.85%, MISC Jul’12 (AAA), which fell 3bps to 3.4%, and PLUS SPV Mar’17 (AA1), which fell 5bps to 5.3%. Meanwhile, pipeline issuances are likely to increase in the short to medium term. Among the corporates with plans for new bond sales are Pengurusan Aset Air Bhd (PAAB), Cagamas, Genting, Sime Darby and Port of Tanjung Pelepas. Issuers are taking advantage of the rising risk appetite and the still low interest rate environment. PAAB is raising funds as it further consolidates the Malaysian water industry via the purchase of assets from current water concessionaires. Total facility size may top RM20 billion. This article appeared in Capital page of The Edge Malaysia, Issue 776, Oct 12-18, 2009. |
https://theedgemalaysia.com/node/19458 | Investors stay cautious | English | The FBM KLCI was in the red throughout the trading day but losses were limited. Note that the benchmark index’s close for Monday was revised to 1,216.5 points, from the initial 1,210.6 points, after taking into account the last-minute surge in KL Kepong’s share price. The latter was due to an erroneous order. Bursa Malaysia rejected the request to cancel the trade. Unsurprisingly, KL Kepong was the top loser on Tuesday. Its share price dropped back to RM13.70 giving back all of its last-minute gains from the previous day. The FBM KLCI ended the day nearly four points lower at 1,212.7. At the close, there were 11 losing counters for every 10 gainers. About 643 million shares changed hands. Shares of Three-A Resources were among the most actively traded. The stock closed at 89.5 sen, giving back some of its gains from the previous day. The company announced a private placement to Wilmar International Ltd, the world’s largest palm oil trader. Elsewhere, in a rather surprising move, Australia became the first of major economies to raise interest rates since the onset of the global financial crisis in 4Q2008. The central bank hiked rates by 25 basis points, to 3.25%, strongly suggesting the economy is well on its way to recovery. This is in contrast with the note of caution struck by leaders of the G20 during its recent meeting, which warned against an early withdrawal of stimulus measures given the fragility of the nascent recovery. Market analysts had expected countries to move away from extremely loose monetary policies next year. Australia’s unexpected decision may prompt other hawkish central banks, especially in Asia, to bring forward their own schedule. |
https://theedgemalaysia.com/node/66404 | Selangor looks into plan to build incinerator | English | Last Updated: 2:31pm, Nov 26, 2013 SHAH ALAM (Nov 26): Selangor aspires to build an incinerator that burns trash and convert 75% of them into energy. Selangor state executive councillor Datuk Teng Chang Khim said recycling efforts only manage 10-20% of the state’s rubbish while the rest usually ends up in landfill dumps. He pointed out that the need for the incinerator came about as the Jeram landfill will be fully utilised in 2016 and if the state government does not seek alternative treatment method, it will need to sacrifice a 100 acre land to make way for a new dumping site. “For a hygienic and disaster free landfill site, it needs to take up 100 acre and that will costs about RM3 million. “Not to forget, if each acre of the land’s GDP is RM60 million, 100 acre allocated to become landfill means we will lose RM6 billion potential profit,” said the councillor in charge of Local Government, Research and Development. Teng said many are fearful of the environmental impact upon hearing the word ‘incinerator’, however, he stressed that incinerators today are capable of filtering toxic gas before it is released into the atmosphere. “The incinerator can take care of 90% of the trash. Only 25% of it will be burnt, the rest is being converted into energy,” he said at the state assembly today. He said the state government will need to determine the type of technology suitable for the state, the financing model, the long term impact of the system, as well as its social and environmental impact before deciding to do away with burying rubbish. “We will make sure a comprehensive study is done before reaching a decision to replace the current landfill method, which has caused us many problems.” The state government will spend the following six months to study the matter. For more stories, go to www.fz.com, the website for freedom of expression and fairness in articulation. |
https://theedgemalaysia.com/node/89143 | Ken Rimba brand attracting buyers | English | PETALING JAYA: With its Ken Rimba name growing in recognition, Ken Holdings Bhd's latest launch, Jimbaran Residences, in the Ken Rimba green township in Shah Alam, Selangor, has received very positive response from buyers. "Our Ken Rimba brand has gone from strength to strength and is now a very recognisable name with homeowners. Homes built inside Ken Rimba have been extremely successful and it is a different approach in developing Malaysia's first green township," said group managing director Sam Tan. Jimbaran Residences is Malaysia's first recipient of Singapore's Building and Construction Authority Green Mark Gold Plus (provisional) for landed residential terraced house development. It has a gross development value (GDV) of RM150 million and 168 freehold homes. A preview of Jimbaran Residences in March for Ken Holdings' repeat buyers saw a take-up rate of 80%. The project was launched on June 15. Tan said Jimbaran Residences is an upgrade of the earlier phase, Legian Residences. "Jimbaran Residences comes with built-in lofts after we noticed the extra rooftop space in Legian Residences." Prices of the houses start from RM620,000, with land area of 22ft by 65ft (intermediate lots), 44ft by 65ft (corner lots) and 39ft x 65ft (zero lots). According to Ken Holdings, there are two more condominium and two more commercial phases within the 60-acre (24ha) Ken Rimba in the pipeline. "We are planning to launch the first phase of our Ken Rimba condominiums by year-end. Already, we have a very big number of registrants eagerly anticipating the launch of these green condos," Tan said. He said while Ken Holdings intends to build the condominiums to achieve a high Green Mark rating, the developer hopes to maintain the affordable price range. The estimated GDV for the first phase of the condo is around RM300 million. The project consists of three blocks with built-ups of 1,100 sq ft and three bedrooms. Among the active and passive green features in Ken Rimba are the north-south orientation for the homes, energy-efficient lighting, breathable roofs with large overhang, high window to wall ratio, transparent skylight, rainwater harvesting tanks, and the use of low volatile organic component paint for interior walls, and reflective paint for exterior walls to reduce external heat. The homes are equipped with solar-powered heaters. The developer also offers composting areas within the community to encourage green practices. Previous phases within the township include Legian Residences and the Ken Rimba commercial centre. In 2010, Legian Residences was Green Mark Gold and GBI certified. The Legian Residences comprises 328 double-storey terraced homes. According to Tan, the homes have appreciated by about 30% in the secondary market.The Ken Rimba commercial centre, which consists of shop lots, is in the midst of being handed over to the owners. It was the first commercial centre to be Green Mark certified (provisional) in 2010. The freehold site for Ken Rimba was acquired from Hock Hup Development Sdn Bhd in 2003 for RM25 million. Ken Rimba, which has a GDV of RM500 million, was launched in September 2010. When completed, the township will comprise two terraced home components, two condominium developments, a commercial centre and a commercial complex. This article first appeared in The Edge Financial Daily, on June 14, 2013. |
https://theedgemalaysia.com/node/76422 | Pirq app latest in discount offering | English | KUALA LUMPUR (Jan 2): The latest smartphone offering comes in the form of Pirq Malaysia, an app that bills itself as ‘instantly amazing’. The app is the latest to jump on the discounts and deals bandwagon with a slight twist, delivering real-time, local, consistent offers at select dining establishments and retail outlets, with a slight twist. Users are able to choose locations from the menu and decide which deals they want to select or even save for later. Users also do not need to prepay for the deals or print out coupons. Instead, once they have selected a deal located near them, all that remains to be done is to scan the tag at the establishment and redeem the offer. The app is available to download for free from the iTunes App Store and Google Play. |
https://theedgemalaysia.com/node/45515 | Proton top loser, investors ignore Nissan tie-up as Lotus woes weigh | English | KUALA LUMPUR: Proton Holdings Bhd is the top loser in afternoon trade on Friday, March 4 as investors ignored its proposed collaboration with Nissan while worries about it becoming profitable weighed on sentiment. At 2.30pm, Proton was down 22 sen to RM3.23 with 1.03 million shares done. The FBM KLCI rose 14.62 points to 1,521.50. Turnover was 522.24 million shares done valued at RM850 million. There were 549 gainers, 150 losers and 242 stocks unchanged. However, AmResearch reaffirm its contrarian BUY call on Proton with an unchanged fair value of RM5.10 a share, pegging it at 0.7 times FY12F adjusted NTA of RM7.30/share. AmResearch said it anticipated the deal with Nissan to involve the use of Nissan Fuga as a replacement model for the Perdana and the use of Nissan March platform for Proton’s EMAS model (whereby the upper body will be Lotus designed). “We are positive about this development. We believe depressed earnings affected by Lotus’ turnaround plan over the mid-term are more than priced-in,” it said. |
https://theedgemalaysia.com/node/99665 | Kenanga says Engtex likely to benefit from Langat 2 project | English | Being one of the top suppliers of water-related pipes in Malaysia, Engtex is poised to benefit from the government spending on water infrastructure. The re-rating catalyst for Kenanga, include big pipe orders from the Langat 2 project. “The next big water project would be the proposed RM1.2 billion Langat 2 treatment plant which requires about RM200m worth of MS pipes “Its share price has risen significantly by 35% YTD. Nonetheless, it is still trading at 22% discount to its 5–year average PER of 6.0x. Benchmarked against the PER of 6.0x FY14E EPS, the stock is valued at RM1.59. The re-rating catalyst include big pipe orders from the Langat 2 project,” said Kenanga Research in a note today. Interestingly, based on checks, some of the shortlisted main contractors of the Langat 2 project are Engtex’s clienteles, it added. Hence, the research house suggested that it would not be surprised should Engtex secure MS pipes orders from this project. The stock’s 1HFY13 revenue climbed 23% YoY largely due to significant rise in manufacturing business, while PBT margin also improved from 6.7% to 7.4% due to increased capacity utilization. Even though the tax expenses was higher in 1HFY13, net margin was sustained at 5.1%, said Kenanga. Engtex is one of the players in the domestic duopoly ductile iron (DI) market and is also amongst the few players able to manufacture large diameter mild steel (MS) pipes up to 2600mm. Other attributes include being the top 3 wire mesh producers in Malaysia and largest player of non-O&G pipes and valves & fittings (PVF). Engtex’s production capacity of about 204k tonne annually is spread out between DI(60k), MS(36k) and wire mesh(108k). |
https://theedgemalaysia.com/node/58530 | Viber Out cheaper alternative to Skype Out | English | KUALA LUMPUR (Dec 10): Mobile messaging and VoIP company Viber has globally released Viber 4.1 for Android
and iPhone, called Viber Out, a new feature that allows users to make
low-cost calls to any mobile or landline phone number. This confirms a report by theedgemalaysia.com last Saturday (Dec 7) that the mobile messaging and VoIP company would release the feature this week.
Citing industry sources, theedgemalaysia.com reported that Viber’s new application, Viber Out was set to go head-to-head with Skype’s Skype Out. Viber
Out has a significantly lower price-per-call than other competing
services due to lower per minute rates and the omission of connection
fees.
Viber’s new service would be cheaper between 31% and 198% compared to Skype Out costs. In
a statement today, Viber said: “To provide free calls from the
Philippines for free, Viber partnered with telcos across the world
including Globe Telecom, Telecom Austria, Telecom New Zealand,
Hutchison, Bharti Airtel, Telecom Italia, Citic, Netvision Cellcom, Mada
Communication and Omantel.
Prior to the release, Viber had enabled Viber Out in the Philippines. “Viber Out gives our millions of users a new way to use Viber and ensures that they can reach any contact at any time.
“We will continue to improve Viber Out, keeping our users connected
at the most affordable rates possible,” said CEO of Viber, Talmon Marco. With
the official worldwide launch, Viber Out will enable all its users to
call anyone worldwide at low rates on Android, iPhone and desktop, with
its app to be available for Windows phone in the future.
|
https://theedgemalaysia.com/node/68493 | Masteel: Near term outlook dampened | English | Malaysia Steel Works (KL) Bhd’s (Masteel; 94 sen) earnings results for the second quarter of financial year ending Dec 31 (2QFY12) registered a strong improvement from the preceding quarter. The company reported a net profit of RM19 million, a reversal from a net loss of RM4.9 million in 1Q and higher than the RM15.5 million earnings in the previous corresponding quarter. The improved profitability was attributed primarily to better margins on the back of higher selling prices for steel, while the cost of raw materials (scrap steel) was flattish. We estimate selling prices for steel bars were roughly 4% to 5% higher quarter-on-quarter (q-o-q) in 2Q. Turnover, on the other hand, was up marginally in the latest quarter by 1.8% year-on-year (y-o-y) and 1.2% q-o-q to RM344.1 million. This suggests some demand weakness amid the global economic slowdown. Positively, domestic demand for steel bars remained fairly resilient on the back of activities in the property and infrastructure sectors. The better 2Q performance boosted the company’s cash flow and balance sheet. Net gearing dipped to 47% as at end-June 2012, from 54% in the immediate preceding quarter and 49% at end-2011. Operating conditions expected to be challenging Masteel’s sharp turnaround in 2Q was underpinned by resilient domestic demand for steel bars and slightly higher selling prices, which aided margin recovery. Nonetheless, we expect operating conditions to be challenging in the near to medium term. In particular, falling steel prices in the international market could have a spillover effect on the local market. Sluggish growth in the US and recession in crisis-wracked Europe are leading the global economic slowdown. Weakening demand is reflected in the recent spate of falling export orders and manufacturing in Asia, including China. The deceleration in the world’s second largest economy has an outsized impact on global steel prices. The country is the world’s largest consumer and producer of steel products, by far. Output levels have remained high as steel mills, especially smaller ones, crank up volume to cover overheads even as domestic demand is faltering on the back of a government clampdown on the housing market and as the effects of stimulus spending post-2008 financial crisis come to an end. China is trying to shift its economic development from an investment to consumption-driven model. Despite many steelmakers suffering losses, there appears little will to cut back on output at this point. This is resulting in depressed domestic steel prices while keeping raw material costs comparatively elevated, at least until very recently. As a result, steel exports from China have been on the rise in recent months, which is exacerbating the global glut and fall in prices. Recent news reports suggest some negative spillover effect on the domestic steel market. Of note is the widening gap between prevailing domestic and global selling prices for steel bars. Thus, we could see renewed weakness in prices in the coming months. This would leave steel manufacturers more exposed to volatility in raw material prices, although prices for scrap steel have fallen in recent weeks. Cautious on earnings in the second half In the immediate term, demand in 3Q is expected to slow due to the month of Ramadan and Hari Raya Aidilfitri celebrations. Outlook for 4Q will still depend on how global events unfold, in particular the lingering sovereign debt crisis in the eurozone. On balance, we doubt the global economy will regain traction before next year. Domestic demand has been relatively buoyant, underpinned by new property, construction and infrastructure projects. But the latter have yet to hit high gear. In June, Masteel signed an agreement to supply some RM500 million worth of billets and bars to Swiss-based commodities trading company Trafigura, which has its regional hub in Singapore to service customers in the Asia-Pacific region, for a three-year period. While the contract amount is not major relative to the company’s turnover — estimated at some RM1.38 billion this year — the deal could pave the way for greater offtake in the future, particularly after its planned capacity expansion. Expanding billet and rolling mill capacity Construction of the company’s new rolling mill is expected to commence very soon. The new plant will raise total capacity to about 500,000 tonnes from the current 350,000. Note that Masteel is currently outsourcing part of its milling operations due to in-house capacity limitations. Once operational, targeted by early 2014, it can divert production back to its own mill. The company also expects better margins from the new rolling mill, which will be adjacent to the meltshop in Klang, through savings from transport and energy costs. The current rolling mill is located in Petaling Jaya. To cater for the higher rolling mill volume, Masteel plans to increase its meltshop capacity to 650,000 tonnes from the current 550,000 tonnes through various production enhancement processes. Decent valuations but upside may be tempered by market uncertainties On balance, we believe Masteel can maintain a double-digit top line growth in 2012 to 2014 but earnings visibility is more uncertain. As such, we are keeping our forecast unchanged despite the strong 2Q results. Net profit is estimated at RM29.6 million this year, up from RM24.5 million in 2011, and about RM40.6 million in 2013. Masteel’s valuations are decent with price-earnings ratios of about 6.7 times and 4.9 times, and 9.4 times and 7 times on a fully diluted basis, for the two years. The stock should perform over the long term but we suspect any upside will be limited in the near term. On a positive note, the downside risks may be limited by its high book value of RM2.43 per share. Note that Masteel recently proposed a private placement of up to 10% of its share capital, slated to be completed by end-2012. Proceeds are intended to fund working capital. The exercise will result in some earnings and net assets per share dilution in the near term. Note: This report is brought to you by Asia Analytica Sdn Bhd, a licensed investment adviser. Please exercise your own judgment or seek professional advice for your specific investment needs. We are not responsible for your investment decisions. Our shareholders, directors and employees may have positions in any of the stocks mentioned. This article is appeared in The Edge Financial Daily on 7 September, 2012. |
https://theedgemalaysia.com/node/12781 | Opposition wants to know why MRCB chosen as master developer | English | KUALA LUMPUR: The opposition has questioned the suitability of Malaysia Resources Corporation Bhd (MRCB) being appointed the master developer of the 3,000 acres (1,214ha) of land in Sungai Buloh in the joint venture between the government and the Employees Provident Fund (EPF). Commenting on a report in The Edge Financial Daily on Wednesday, March 31, that MRCB is tipped to be appointed the master developer of the said land in Sungai Buloh, Tony Pua (Petaling Jaya Utara-DAP) pointed out that in MRCB's recent rights issue exercise, the EPF had to spend RM192 million to buy up 171.4 million shares at RM1.12 each which were not taken up. "It has demonstrated a clear lack of market confidence in MRCB, and its major shareholder, EPF, had to come to the rescue. "If it is true that MRCB will indeed be appointed the master developer of the 3,000-acre piece of prime land in Sungai Buloh, then it will run directly opposite to what the prime minister had promised in the NEM," said Pua. "The joint venture with EPF and the appointment of MRCB raises the following questions: on what basis is the EPF appointed as the joint venture developer for the 3,000 acres of land? On what basis is MRCB appointed as the master developer for the project? Why has there not been any open tender for the project?" Pua asked. He said that when Singapore wanted to build the two integrated resorts in Marina Bay and Sentosa with a gross development value of S$4 billion to S$6 billion (RM9.33 billion to RM14 billion) each, the Singapore government had called for an international bid to attract the best ideas and proposals. A ministerial committee headed by senior ministers was set up to review the proposals in detail before the award was made. "The question is why is the government favouring MRCB, which itself was facing financial difficulties, without any open bidding or proposals from the Malaysian or even international business community for a project which the PM has estimated will cost up to RM5 billion to develop?" asked Pua. "Like the direct award of the proposed largest exhibition and convention centre by Matrade to Naza TTDI without any open tenders, the government has once again shown that it is unwilling to let go of its policy to award sweetheart deals to crony companies without any transparency. "This runs smack in the face of Datuk Seri Najib Razak's promise that 'we can no longer tolerate practices that support the behaviour of rent seeking and patronage', which have tarnished the altruistic aims of the New Economic Model (NEM) in his speech on Wednesday on NEM," said Pua. Liew Chin Tong (Bukit Bendera-DAP) requested that a bipartisan select committee in parliament on the NEM be established to hold a national public hearing. According to Liew, this would be similar to the select committee on the Criminal Procedure Act and Penal Code in 2006. MPs on the committee travelled all over Malaysia to listen to people and groups for feedback on the amendments. "A special session should also be called to debate on the NEM and not to be bundled with 10th Malaysia Plan (10MP). These are two different concepts. One is prepared by National Economic Advisory Council (NEAC) while the 10MP is prepared by the Economic Planning Unit (EPU). The documents are different, hence there should be two separate sessions to deal with them," said Liew. He was also unhappy that MPs were given only six days to debate the 10MP. |
https://theedgemalaysia.com/node/73674 | Mah Sing’s earnings and new sales on track | English | Mah Sing Group Bhd(Nov 12, RM2.18) Maintain neutral at RM2.16 with a fair value of RM2.42: Mah Sing’s results for the third quarter ended September of 2013 financial year (3QFY13) were within our and market expectations. Overall the earnings before interest and tax (Ebit) margin for the first nine months (9M) of the year improved to 18.9% from 17.9% in 9MFY12 due to a better product mix. Mah Sing’s new property sales amounted to RM2.3 billion, up from RM1.5 billion in the first half (1H) of FY13, on track to meet management’s RM3 billion target. Apart from the ongoing projects, the recent previews/launches of D’sara Sentral and Savanna Suites are expected to contribute to property sales in 4Q. On the first day of the VIP preview, the residential block at D’sara Sentral saw a 40% to 45% booking rate, largely due to the affordable absolute value of the units (average selling price of RM660 per square foot with built-ups of 800 to 1,100 sq ft). To be prudent, management is expected to strategically price its property products going forward, considering the weaker market sentiment in the short term. Recently, Mah Sing signed a memorandum of purchase with SwhengTee International Sdn Bhd for the purchase of Tower B of Meridin@Medini Phase 2, which has a gross development value of RM172 million. SwhengTee, a real estate investors club, will undertake to sell the 322 units in Tower B. We understand that all the remaining units that SwhengTee is not able to sell after the first three months will only be recognised as sales by Mah Sing. The remaining two blocks in Phase 2 will be put on the market by Mah Sing before year-end. We make no changes to our earnings forecasts. Near-term earnings are underpinned by strong unbilled sales of RM4.2 billion (RM3.9 billion in 1HFY13). While the market may take a few quarters to digest the impact of the cooling measures, we believe the current valuations have largely priced in the impact. Nevertheless, given the lack of near-term catalysts, we maintain our “neutral” rating on Mah Sing, with an unchanged fair value of RM2.42, based on a 15% discount to realisable net asset value. — RHB Research, Nov 12 This article first appeared in The Edge Financial Daily, on November 13, 2013. |
https://theedgemalaysia.com/node/486 | PR unhappy EC stretching by-election dates | English | KUALA LUMPUR: Opposition leaders from the Pakatan Rakyat (PR) are unhappy with the Election Commission (EC) for stretching the 60-days constitutional limit to hold the Bukit Gantang and Bukit Selambau by-elections and considers the EC decision an act of serving Umno. DAP advisor Lim Kit Siang described in his blog that the EC has provided an example of its "craven subservience" to serve Umno interests in fixing the simultaneous nomination and polling dates for the Bukit Gantang parliamentary seat in Perak and the Bukit Selambau state assembly seat in Kedah. The EC announced this morning that nomination for the by-elections would be held on March 29 while polling on April 7. "Clearly, the fractious and internecine Umno party elections until March 28 had been the primary consideration of the EC when deciding on the two by-election dates," Lim said adding that polling on April 7 meant campaigning for the two constituencies would be after Datuk Seri Najib Razak had officially assumed the Umno leadership and appointed sixth prime minister. Speaking to The Edge today, Lim said the EC should have taken into consideration the voters in both constituencies whom would be without an elected representative for almost two months, adding that it was clear the EC had been pressured with the dates for the by-elections. "If by-elections were held just prior to Umno party elections, the party (Umno) is afraid that it might be faced with heated infighting and discontent among its members. It will certainly not favour them to campaign for by-elections at such a time," he pointed out. On whether DAP would want to contest the Bukit Selambau state seat, Lim said DAP did not discount the possibility of contesting as it understood that DAP Kedah had suitable candidates in mind to contest. "Usually the state leaders would first convey their intention to the national party leaders who will then deliberate and decide," the Ipoh Timur MP said. He added that DAP would nevertheless support PR candidates who were endorsed by the PR Leadership Council in both by-elections. Meanwhile, Parti Keadilan Rakyat's (PKR) information chief Tian Chua said the by-election dates have once again placed the EC's independence and neutrality into question. "The EC should not consider the Umno agenda when deciding on the dates,'' he noted. According to Chua, the EC should look into the practicality and logistics of both by-elections and not fix dates to Umno or Barisan Nasional's (BN) advantage. "It (by-elections) should be held at the earliest possible dates. Not almost on the last day,'' he said. He also said the April 7 polling day meant that the Bukit Gantang constituency would be without an elected representative in the Dewan Rakyat for one parliamentary sitting, adding that Bukit Selambau is without a state assemblyman and the Kedah state short of one state executive councillor for the time being. Chua, who is also MP for Batu, stressed that the EC's decision was to facilitate Najib to be prime minister before the by-election polls and to save further embarrassment for the deputy premier to lose another by-election. "It looks like a new deputy prime minister will lead BN for the by-elections as that is usually the case. But like it or not April 7 will be a referendum on Najib's leadership,'' he added. An Umno leader when contacted said all parties should accept the EC's decision and not give their own conclusions that the EC was biased when setting the dates for the by-elections. "The opposition used to complain of phantom voters during by-election. Now they are complaining that the dates are unfair." he said adding that should the opposition triumph in a by-election they would stop complaining against the EC. |