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Wednesday, 28 September 2011

PM: Positive investment trend from Middle East

He said his administration's efforts in drawing in capital from the Middle East were paying off, with investors like Mubadala, Abu Dhabi's investment arm, investing in Johor's Iskandar region and helping develop the upcoming US$8 billion (RM25 billion) Kuala Lumpur International Financial District.

Read more: PM: Positive investment trend from Middle East http://www.btimes.com.my/articles/zanax/Article/#ixzz1ZF2mwnt9



Kuala Lumpur: Malaysia is seeing a positive investment trend coming from the Middle East, Prime Minister Datuk Seri Najib Razak says. "I'm picking up a very positive trend coming from that part of the world. They're asking me for projects now ... and sometimes I'm embarrassed because we're not quite ready yet," he said during a question-and-answer session at the close of the Khazanah Megatrends Forum 2011 here yesterday. He said his administration's efforts in drawing in capital from the Middle East were paying off, with investors like Mubadala, Abu Dhabi's investment arm, investing in Johor's Iskandar region and helping develop the upcoming US$8 billion (RM25 billion) Kuala Lumpur International Financial District. It is also partnering 1Malaysia Development Bhd to build a US$4.2 billion (RM13.2 billion) aluminium smelter in Sarawak. The oil-rich Abu Dhabi also has a stake in Malaysia's fifth largest banking group, RHB Capital Bhd.

Tuesday, 27 September 2011

Details of business plan out next month

Kuala Lumpur: Details on how Malaysian Airline System Bhd (MAS) and AirAsia Bhd can work together to boost revenue, cut costs and create new business opportunities are likely to be revealed next month, said Tan Sri Tony Fernandes.

Read more: Details of business plan out next month http://www.btimes.com.my/articles/tones/Article/#ixzz1Z59rACuM

"A lot of it is subject to legal requirements in terms of anti-competitiveness, and so that has to be cleared by lawyers. But I would imagine within the next month or so," Fernandes, AirAsia's chief executive officer, told reporters when asked when more details on the two airlines' collaboration would be unveiled. Fernandes was speaking on the sidelines of the Khazanah Megatrends Forum here yesterday. The major shareholders of MAS and AirAsia last month agreed to a share swap deal in a bid to collaborate as competition in the airline industry heats up. The two can collaborate in areas such as training, cargo, sales and distribution, maintenance, repair and overhaul (MRO), catering and logistics, Fernandes said. "If you put the volumes of MAS and AirAsia together, it becomes a mega MRO that, in partnership with someone else, could become a real competitor to Singapore's MRO. I think in the next few months you'll see some very exciting announcements," he remarked. Pitting the academies of MAS and AirAsia together could also create one of the world's biggest training academies amid a surge in demand for pilots, he noted. "Malaysia could become the biggest trainer of pilots in Asia, if not the world, when you put the strengths of MAS and AirAsia academies together. Both airlines have had excellent records of pilot quality, engineering quality ... so this could be a hub," he said. The two airlines could also cut costs in terms of catering. "We don't use LSG, but maybe together we can get a much better deal from LSG and better quality," he said. He was referring to LSG Sky Chef, MAS' caterer. Fernandes said he was optimistic on the MAS-AirAsia collaboration and urged sceptics to give them time to flourish. "The energy between the two airlines is something I never believed I'd see. It's fantastic. "I think we're going to give a lot of airlines a run for their money," he said. The share swap deal will see MAS' biggest shareholder Khazanah Nasional Bhd taking up a 10 per cent stake in AirAsia, and Tune Air Sdn Bhd - the investment arm of Fernandes and Datuk Kamarudin Meranun - getting a 20.5 per cent stake in MAS. On the stock market yesterday, MAS shed 3 sen to RM1.28, while AirAsia eased 6 sen to RM2.76.

Monday, 26 September 2011

Kuwait Finance House eyes Indonesia

Kuwait Finance House (Malaysia) would prefer to go in on a fresh licence, but the group is also looking at some potential acquisitions.

Read more: Kuwait Finance House eyes Indonesia http://www.btimes.com.my/articles/kfhj/Article/#ixzz1Z0tODln8

Kuala Lumpur: Kuwait Finance House (Malaysia) Bhd (KFH) is keen on expanding in Indonesia to tap Islamic banking opportunities in the world's most populous Muslim nation. "We're looking at Indonesia, but we don't want to rush into anything," chief executive officer Jamelah Jamaluddin told Business Times in an interview. She said KFH would prefer to go in on a fresh licence, but the group is also actively looking at some potential acquisitions. The group has been eyeing "some conventional and some Islamic banks". "We're currently in very preliminary talks .... some (targets) talk to our parent. Maybe next year, the end of next year, (you'll see something) because we really have to do due diligence. It's a long-drawn process as our syariah governance is quite different (from other jurisdictions) ... that's the dificult part," she said. Jamelah said potential changes in rules pertaining to foreign shareholding in Indonesian banks has not deterred KFH's interest. Indonesia is considering capping foreign shareholding in banks to less than 50 per cent. "Not necessarily, as there are various ways to explore a tie-up in Indonesia. The Indonesian market holds much potential, especially for Islamic financing and we are certainly considering exploring opportunities there," she said. As it stands, the group is already active in Indonesia, focusing mainly on investment and corporate banking. KFH has long wanted to use Malaysia as a hub to grow in the region. It is also keen on Australia. "If there's an opportunity for a new Islamic banking licence there, we'd be interested," Jamelah said, adding that KFH is also "taking a look" at Thailand and the Philippines. KFH, which ventured into Malaysia in 2005, is fast turning around after a turbulent two years, which saw it making losses amid concerns about its asset quality. It returned to the black in the final quarter of last year, turning in a profit of RM13 million after six consecutive quarters of losses. It reported a full year net loss of RM75.6 million, which was more than double its net loss in 2009. Jamelah is hopeful KFH will be in the black for the full year this year as it is still clearing up its books and declassifying loans. She is confident the bank will be completely in the black next year. To date, KFH has managed to recover or restructure close to RM200 million out of almost RM800 million of debt. Jamelah expects net financing to grow by between 8 per cent and 10 per cent this year after negative growth of 14.1 per cent last year. KFH, under its five-year transformation plan that ends in 2014, is putting bigger focus on retail and wholesale banking, which it sees as more sustainable businesses. It used to focus mainly on corporate and investment banking.

U Mobile plans to secure double-digit mart share

For U Mobile to hit a double-digit subscribers market share, the mobile operator will need to sign up at least 3.5 million customers.

Read more: U Mobile plans to secure double-digit mart share http://www.btimes.com.my/articles/umob21/Article/#ixzz1Z0stSpvQ

Kuala Lumpur: U Mobile Sdn Bhd, the fourth largest mobile operator in the country, aims to secure a double-digit subscriber market share in as early as three years as it continues to aggressively expand its network and launch more innovative and quality products and services. Malaysia has about 35 million mobile phone users and mobile broadband subscribers in total. For U Mobile to hit a double-digit subscribers market share, without factoring the near-term growth of the total market size, the mobile operator will need to sign up at least 3.5 million customers. "We aim to have a double-digit market share in three to five years. We believe it's an achievable goal, it is an aspiration, all of us need to have that," said Dr Kaizad Heerjee, chief executive officer of U Mobile, in a Business Times interview recently. Kaizad said over the past six to nine months, the company has seen renewed interests in U Mobile, while the brand is becoming well accepted in the market. "I believe that as long as we continue to expand our network, distributors continue to be committed, network quality remains very good, and brand is appealing, customers will give it a shot," he added. Kaizad said customer base has been growing "very strongly". The company, which has merely several thousands of subscribers over a year ago, now has one million subscribers. To achieve its goal, the company is banking on differentiating itself from the rest of the rivals. It plans to position itself as a leader in high speed data services. "For us, voice is a commodity, regardless if it's 3G or 2G, it doesn't really make much of a difference. I don't think customers are going to come into our network by the millions if we lower our rates by one or five sen. The differentiator really is high speed data. That's our core focus," he said. Kaizad said people often said Malaysian market is saturated, but in reality, that is not the case. "Saturation is for voice, but for data, the market continues to grow, the appetite for speed and bandwidth continue to explode. The best part is, the calculation for data penetration is not by number of users, but by the number of devices, and the penetration of devices is exploding in the market today," he explained. The company offers both conventional voice services, as well as data services. It has nationwide coverage for its voice services, thanks to a domestic roaming pact with Celcom Axiata Bhd. However, its mobile broadband service currently covers the Klang Valley, Ipoh, Penang and Johor Baru only. U Mobile plans to expand its wireless broadband coverage to 80 per cent of the population over the next two to three years.

Saturday, 24 September 2011

'New Bursa rules are good but enforcement is key'

Bursa Malaysia has introduced a Corporate Disclosure guide that will see companies having to raise their standards of disclosure.

Read more: 'New Bursa rules are good but enforcement is key' http://www.btimes.com.my/articles/bursieef/Article/#ixzz1YsTANAb5

Kuala Lumpur: Analysts and fund managers like the fact that listed companies will have to make more timely and detailed disclosures from next year under changes to the listing rules, but stress that enforcement is key. Bursa Malaysia this week announced changes to its listing rules and introduced a Corporate Disclosure guide that will see companies having to raise their standards of disclosure. "It's one thing to have rules, but whether companies are complying with them is another. The regulator must be able to ensure compliance without fear or favour ... we don't want to see selective enforcement," said the head of research at a local brokerage outfit. From next year, for example, a company will be required to give a detailed analysis - as opposed to a review - of the performance of all its operating segments in the notes to its quarterly reports. It must comment on the prospects of each segment, including details such as contracts in hand, competitive challenges, significant changes in raw material prices, financial impact from recently completed deals, and new regulations that might affect its activities. Bursa will no longer accept general statements - such as "the board is optimistic of achieving better performance for the financial year" or "the board expects the group's results for the remaining period to be profitable" - if they are not followed by a discussion. The company also must announce when any director or external auditor has resigned and provide the reason for it. Interestingly, a company will also have to ensure that each of its directors, chief executive or chief financial officer "has the character, experience, integrity, competence and time" to discharge his or her roles. The new rules will help investors make better informed decisions, said Kaladher Govindan, head of research at TA Securities Bhd. Any move to improve disclosure and transparency will always be welcomed by investors, said Choo Swee Kee, executive director at TA Investment Management Bhd. "But how you set the standard and how you enforce it ... those will be issues that need to be looked at as well," he added. Most companies in Malaysia are scarce on details in their corporate announcements and tend to disclose the minimum possible in quarterly reports, analysts and fund managers often complain. "Based on actual rules, we're probably comparable to regional markets, but it's just the mentality that we're probably behind on. Companies here don't seem to have the desire to disclose more than necessary. Boards need to have a mindset change," Choo said.

MISC to proceed with capex plan

MISC has 14 newbuilds on order for the next two years for its petroleum shipping division.

Read more: MISC to proceed with capex plan http://www.btimes.com.my/articles/pmis-2/Article/#ixzz1YsSdvBva



Kuala Lumpur: MISC Bhd, the world's largest owner and operator of liquefied natural gas (LNG), will proceed with its committed capital expenditure of between RM4 billion and RM5 billion in mainly new vessels for the next two to three years despite the signs of a prolonged economic downturn. "We are not the sort of company that will not take deliveries (of committed programmes). Capital expenditure plans on new (intended) programmes, however, like clean petroleum production freight, have been deferred," MISC's president and chief executive officer Datuk Nasarudin Md Idris told reporters after the company's annual general meeting yesterday. According to its annual report, MISC has 14 newbuilds on order for the next two years for its petroleum shipping division. MISC recently saw both Standard and Poor's and Moody's rating agencies downgrade its debt paper ratings on concerns of continued operating losses in its petroleum, chemical and liner businesses and large capital expenditure plans. "It didn't come to us as a surprise, but what is important to note is that we are still investment grade. The strong support from Petronas gives us a much better position compared to other players in this space. Obviously, the downgrade will have an impact on our capability to raise funds in the future," MISC chairman Datuk George Manharlal Ratilal said. The company has over RM3 billion of cash, according to Ratilal. It also has a few unutilised credit lines to draw down from. MISC expects its petroleum, chemical and liner shipping divisions to continue to suffer losses this year, but is hopeful that its other divisions, mainly LNG shipping, tank terminal and offshore business, will help cushion the effects of it. "As we speak, we are working very hard to plug those losses... in its good times a very large crude carrier was earning US$200,000 (RM623, 000) a day, but today it is earning less than US$20,000 (RM63,000) a day. That's how the market has turned," Nasarudin said. On reports that MISC's subsidiary, Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE), plans to lease out newly acquired Pasir Gudang fabrication yard to a third party, Nasarudin said there were no such plans. MMHE is awaiting full possession of the yard from Sime Darby Engineering Sdn Bhd, which is still in use by the company to complete contracts to customers before handing it over to MISC. MISC is hopeful that the yard will be handed over by March 2012.

Foreign suitors for Kurnia Insurans?

Liberty International and Chartis Malaysia Insurance are believed to be vying for the stake owned by Kurnia Asia

Read more: Foreign suitors for Kurnia Insurans? http://www.btimes.com.my/articles/kurneef/Article/#ixzz1YsS8X2HV

Kuala Lumpur: At least four foreign insurers, including two from the US, are among several parties believed to be close to making a bid for Kurnia Insurans (Malaysia) Bhd, according to industry sources. US-based Liberty International Holdings Inc and Chartis Malaysia Insurance Bhd, whose parent AIG Inc was rescued by the US government in 2008, are believed to be vying for the stake owned by investment holding company, Kurnia Asia Bhd. Another potential suitor for the stake in the largest general insurer in the country is Insurance Australia Group Ltd (IAG), which holds a 49 per cent stake in AmBank Group's general insurance arm, AmG Insurance. AmG Insurance is on the lookout for a sizeable insurer having failed to buy MAA Holdings Bhd's general insurance business arm after protracted negotiations. IAG sees a lot of potential in Malaysia and has intention to up its stake to 70 per cent from 49 per cent currently in AmG Insurance, the third largest motor insurer in the country. Another party that had tried but failed to buy an insurance company here was Liberty International. In June, it attempted to buy a 52.21 per cent stake in Malayan United Industries Bhd's insurance arm, MUI Continental Insurance Bhd. The Boston-based insurer is part of Liberty Mutual Holding Company Inc, a diversified global insurer and third largest property and casualty insurer in the US. Liberty Mutual is on an acqui-sition trail in the Asean region and has put Malaysia, a country where it has no operations at the moment, high on its radar. Chief executive officer of Liberty International Holdings Inc, Luis Bonell Goytisolo, said recently that the insurer would like to expand into Malaysia, Indonesia and Thailand within two years. Malaysia has been seen as more attractive now since the government announced liberalisation measures in 2009 by raising the foreign equity limit to 70 per cent from 49 per cent. The move is aimed at wooing more established international players to set up operations here. Meanwhile, for Chartis, capturing a stake in Kurnia would quicken its target to double its business here in the next four years. It would also propel the group to be the largest motor insurer in the country. Currently, it is widely known in the property and casualty business. According to Bank Negara Malaysia's 2010 Annual Report, Chartis Malaysia's gross motor insurance direct premium was RM158.8 million while Kurnia's stood at RM384.1 million. Another name bandied about is German insurer Allianz Group, which has a large motor portfolio and is the second largest general insurer in Malaysia when it completed the acquisition of Commerce Assurance Bhd in 2007. It is not known if Allianz would be interested to buy another large motor insurance portfolio after it paid RM990 million to purchase Commerce Life Assurance.

Malakoff to build third Johor plant?

Kuala Lumpur: Malaysia's biggest independent power producer (IPP), Malakoff Bhd, may build another power plant in Johor to meet future power demands of the state.

Read more: Malakoff to build third Johor plant? http://www.btimes.com.my/articles/MMCPOW-2/Article/#ixzz1YsRIaFtL

A source said the plant will be located in Johor to supply power to existing industries, but priority may be given to the upcoming petrochemical complex to be built by Petroliam Nasional Bhd (Petronas). "Part of the power plant will supply to existing oil and gas activities, help meet Petronas' expansion of its petrochemicals business and further spur the growth of Malaysia's oil and gas downstream sector," the source said. Petronas announced in May that it will be setting up a RM60 billion refinery and petrochemical integrated development roughly the size of Singapore in Pengerang, southern Johor, by 2015. MMC Corp Bhd, controlled by tycoon Tan Sri Syed Mokhtar Al-Bukhary, is the parent of Malakoff, with a 51 per cent stake in the IPP. When contacted, MMC Corp managing director Datuk Hasni Harun declined to comment. Malakoff owns or partly owns a total of five power plants in the country with a combined power capacity of 7,253 megawatts (MWs). In June, it accepted a government offer to build a 1,000MW plant in Johor. The new plant will be adjacent to the existing Tanjung Bin power plant, which is owned by Tanjung Bin Power Sdn Bhd, a subsidiary of Malakoff. It is expected to start commercial operation on March 1 2016.

Bandar Raya accepts offer

Upon completion of the RM914 million deal, BRDB is also proposing to pay RM390.12 million or 80 sen a share as cash dividend to shareholders

Read more: Bandar Raya accepts offer http://www.btimes.com.my/articles/BDIVI/Article/#ixzz1YsQyRudO

Kuala Lumpur: Bandar Raya Developments Bhd (BRDB)'s board of directors have accepted an offer from Ambang Sehati Sdn Bhd to acquire some of its assets and liabilities in a deal valued at RM914 million. Upon completion of the deal, BRDB is also proposing to pay RM390.12 million or 80 sen a share as cash dividend to shareholders, upon receiving the cash from Ambang Sehati. Early this month, the BRDB board hired CIMB Investment Bank to evaluate the deal. Ambang Sehati is 26 per cent-controlled by BRDB's chairman Datuk Mohamed Moiz Jabir Mohamed Ali Moiz. Moiz also has an 18.8 per cent stake in BRDB. "This was an unsolicited offer. We did receive offers from other parties before but there was nothing serious on the table. After weighing the offer from Ambang Sehati against what is happening in the market, we found it a very interesting deal," said BRDB's chief executive officer Datuk Jagan Sabapathy. Speaking to newsmen after the close of the stock market yesterday, Jagan said the board's decision took into account the advice and opinion of its main adviser CIMB and independent adviser Public Investment Bank Bhd.

Post titleFelda takes bigger bite of Turkey mart

IZMIR (Turkey): Felda Iffco Gida Saneyi (FIGS), a unit of Felda Global, is banking on an indirect approach to help increase the usage of palm oil products in the European market.

Read more: Felda takes bigger bite of Turkey mart http://www.btimes.com.my/articles/FELXX/Article/#ixzz1YsQfoVFH

The Turkey-based FIGS is a test case in this new game plan, which has two giant entities backing and bankrolling its sucesss. FIGS is a unit of Felda Iffco Sdn Bhd, an equal venture between Felda Global Ventures Holdings Sdn Bhd and Iffco Group. Felda Global is the world's biggest plantation group by land, producing mainly palm oil, followed by rubber and cocoa, while Iffco is a food producer with operations in 84 countries spanning West Asia, Europe, and the United States. FIGS' chief operating officer Mehmet Sahin explains that in Turkey, FIGS is directly supplying to the consumer markets such as bakeries and food services. "Palm oil is healthy and easy to use, that is why we have targeted such sectors instead of going directly to the retail market," Sahin said at a media briefing. According to Sahin, in Turkey alone, sunflower, corn and olive oil currently control some 75 per cent of the soft oil market. FIGS, like other Malaysian controlled entities, has been targeting Europe as the next big market for palm oil. In May, Wilmar International Ltd, the world's biggest palm oil producer, said it will partner with a rival to refine and sell cooking oil in Europe, seeking to ease its reliance on China. Wilmar, controlled by Robert Kuok Hock Nien, will supply refined palm oil from New Britain Palm Oil Ltd (NBPO)'s farms in Papua New Guinea and the Solomon Islands. Wilmar also plans to build a natural alcohol plant in the Netherlands. Analysts, meanwhile, said that the route being taken by FIGS in targeting the fats market instead of merely selling cooking oil to the European market is a step in the right direction. They pointed out that this is the same route taken by IOI Corp Bhd nearly a decade ago when it bought Unilever group's specialty oils and fats division for RM814 million, a move which gave it an instant market presence and manufacturing facilities in Europe, North America and Latin America. "Targetting Turkey is a good move, as it is a growing economy, and there is also a possibility of the country being a member of the European Union," said Pong Teng Siew, the head of research of Jupiter Securities. For the first six months of this year, the Turkish economy has grown by as much as 10 per cent, making it the fastest growing economy in the world. With this in mind, Sahin outlined a plan to beef up the operations in Turkey. He said FIGS plans to invest as much as US$20 million (RM62.2 million) at its plant in Izmir, to strengthen its palm oil fats production capabilities. "We expect to recoup the investment in five years' time," said Sahin. He said the plant in Izmir has a soft oil production capacity of 150 tonnes a day, which should double with the investment. "By 2012, the facility for the palm oil fats will also be up and running."

Plan to invest US$20m in Turkey plant

They pointed out that this is the same route taken by IOI Corp Bhd nearly a decade ago when it bought Unilever group's specialty oils and fats division for RM814 million, a move which gave it an instant market presence and manufacturing facilities in Europe, North America and Latin America. "Targetting Turkey is a good move, as it is a growing economy, and there is also a possibility of the country being a member of the European Union," said Pong Teng Siew, the head of research of Jupiter Securities. For the first six months of this year, the Turkish economy has grown by as much as 10 per cent, making it the fastest growing economy in the world. With this in mind, Sahin outlined a plan to beef up the operations in Turkey. He said FIGS plans to invest as much as US$20 million (RM62.2 million) at its plant in Izmir, to strengthen its palm oil fats production capabilities. "We expect to recoup the investment in five years' time," said Sahin. He said the plant in Izmir has a soft oil production capacity of 150 tonnes a day, which should double with the investment. "By 2012, the facility for the palm oil fats will also be up and running."

Another vote against Aussie palm oil Bill

Kuala Lumpur: Malaysia is on a victorious path in its battle against Australia's proposed palm oil labelling Bill.

Read more: Another vote against Aussie palm oil Bill http://www.btimes.com.my/articles/rup19bb/Article/#ixzz1YsQ1U4Vt

The Food Standards Amendment (Truth in Labelling - Palm Oil) Bill 2010 was rejected by Australia's House of Representatives Economics Committee in Canberra yesterday, the second committee to do so since it was tabled in Parliament. Malaysia now has to wait for the Parliament to take the final vote against the Bill before it can celebrate. The committee has released a majority report recommending the Bill not be allowed to proceed due to several reasons including the risk Australia may face should Malaysia and Indonesia take up the dispute to the World Trade Organisation (WTO). The Bill evoked a strong response from Malaysia when it was first announced, upsetting the palm oil industry because the proposed legislation explicitly labelled palm oil and also blamed the industry for reducing the orang utan population. It would also require makers or distributors of foods with palm oil as an ingredient to list palm oil on its contents label, instead of the general term, "vegetable oils". Malaysia sent two teams for the public hearings in April and August, appealing to the Australian legislators to consider the plight of the farmers due to this form of indirect trade barrier. The hearing chaired by the Community Affairs Legislative Committee was successful but the Australian Senate chose to proceed and brought it to the House of Representatives. Yesterday the committee, chaired by Julie Owens (member for Parramatta, New South Wales), provided reasons why the majority government members believed this Bill would be mostly ineffective in changing labelling laws and also in slowing deforestation. The committee was concerned with the "legal effects" of the Bill, especially with neighbouring New Zealand with which it has joint treaties. The Bill would have also required the Food Standards Australia New Zealand to draft a standard, but the states and territories which have powers to legislate on food labelling would not be required to comply. "We understand the strong feelings in the community about palm oil and any link it may have to deforestation and the reduction of orang utan habitat," she said in a statement. "But the Bill will not fix the problem. It is not drafted around the laws that already exist and will have no useful effect. "Instead, it will harm our international relationships with New Zealand, expose us to a WTO dispute, and threaten national uniform laws that annually save billions of dollars in costs for consumers and businesses." But the Council of Australian Governments (COAG), Owens said, is already looking into this. The Coalition and Green members of the committee have also produced dissenting reports on the proposed legislation. The government is already considering the Labelling Logic review, which recommended that, where sugars, fats or oils are added to a food, the source ingredients should also be listed. The Australia and New Zealand Food Regulation Ministerial Council will consider its response to the review on December 9 2011.

Monday, 19 September 2011

Petronas Dagangan flaunts its assets

Petronas Dagangan is looking 'sexy' to investors, says its chief executive officer

Read more: Petronas Dagangan flaunts its assets http://www.btimes.com.my/articles/toona/Article/#ixzz1YMcAMghX



Turin (Italy): Petronas Dagangan Bhd, the top performing stock on Bursa Malaysia's so far this year, is looking "sexy" to investors possibly because it delivers on its promises and has rosy outlook, its chief executive officer Amir Hamzah Azizan said. The retail arm of national oil corporation Petroliam Nasional Bhd (Petronas) also plans to spend some RM250 million to upgrade facilities and product line-up over the next three to four years. Petronas Dagangan will spend more money if it were to buy Petronas' retail businesses in Indonesia and Thailand to extend its overseas reach, Amir Hamzah added. Petronas Dagangan closed 10 sen higher to RM17.34 last Thursday, bringing its total gain so far this year to 49.8 per cent. Over one year, the stock had gained 67.63 per cent. It is the best performer in the benchmark FTSE Bursa Malaysia KLCI Index, which had dropped more than 4 per cent to date. Interestingly, the index's second best performer is Petronas Dagangan's sister company Petronas Gas Bhd, which has gained 32.25 per cent this year. "We have been reliable and able to deliver what we had promised. Over the years, we have become the leader in two of the four sectors we have been participating. "As we grow, our margins get higher because of economies of scale, and with net profit of nearly RM1 billion, it's hard (for investors) to ignore such company," said Amir Hamzah, who is also Petronas executive vice-president for downstream operations. He spoke to Malaysian reporters during a visit to Petronas' lubricant factory and research and development centre here in Italy last week. Investors could have also attracted with Petronas Dagangan's newly-introduced dividend policy of paying about 55 per cent of its profits, which should reflect its sustainable growth prospects. Petronas Dagangan supplies 60 per cent of commercial demand for petroleum products in Malaysia and more than half of the country's liquefied petroleum gas. It is second only to Royal Dutch Shell plc in the local lubricant market. MIDF Amanah Investment Bank Bhd believes that Petronas Dagangan's future earnings growth would be driven by continuous expansion of its petrol stations. This would be supported by its fuel hydrant system project at the new KLIA 2, which is progressing as scheduled and expected to be completed by April next year. The company, MIDF noted in a recent report, will see stronger performance in the second half of this year as a result of higher fuel consumption on travelling during the festive seasons such as Hari Raya Puasa, Christmas as well as year-end school holidays. Amir Hamzah said Petronas Dagangan may buy sister company, PT Petronas Niaga Indonesia, which runs 19 petrol stations in the most-populated country in Southeast Asia, and another sister company in Thailand as part of efforts to consolidate Petronas group's retail businesses overseas. It has started selling its products in Indonesia to Petronas Niaga, which is wholly-owned by Petronas. Petronas runs two more petrol station businesses in South Africa and Sudan, but acquisition of either operation by Petronas Dagangan is unlikely in the medium term mainly because of their size. In South Africa alone, Petronas owns some 2,000 petrol stations. This translates to a hefty amount if Petronas Dagangan were to buy them over, although it has cash of more than RM900 million at the end of June this year. "We will take a step at a time. Our focus is on Asean first," Amir Hamzah said. Petronas Dagangan, set up in 1982, now has 962 petrol stations in Malaysia, he said. It wants to add 30 more by the end of the year as it strives to raise its market share to 40 per cent from some 32 per cent in the retail segment. It also wants to increase its lubricant market share to 28 per cent from 22 per cent over the next five years. Petronas Dagangan posted a net income of RM869.7 million for the year ended March 31, 16 per cent more than a year earlier.

Sime to benefit from Caterpillar-Bucyrus deal

The gain will come from better sales of equipment and parts, lower production cost and improved service

Read more: Sime to benefit from Caterpillar-Bucyrus deal http://www.btimes.com.my/articles/CATRUS-2/Article/#ixzz1YMbiEg3C

Kuala Lumpur: Sime Darby Bhd, the exclusive distributor for Caterpillar Inc is expected to benefit from Caterpillar's US$8.8 billion (RM27.28 billion) purchase of Bucyrus International Inc. The gain will come from better sales of equipment and parts, lower production cost and improved service. Sime Darby executive vice president industrial division Scott William Cameron said there will be a good spillover effect on Sime Darby, especially for its Hasting Deerings operations in Australia. "With the acquisition of Bucyrus, it will give a positive impact towards Sime Darby especially in Australia and China. The benefits include higher sales of new equipment and aftermarket parts and support, lower product cost and greater reliability, driven by the use of Caterpillar engines and components in Bucyrus products," Cameron said in an e-mail interview. He said Sime will benefit from an improved service and lower owning and operating costs, propelled by Caterpillar's global manufacturing, supply chain and purchasing capabilities. US-based Caterpillar, which is one of the world's leading makers of heavy equipment, completed its Bucyrus purchase last July. Bucyrus produces huge machines and equipment for the mining sector. New York Stock Exchange-listed Caterpillar said with the deal, it has created a mining equipment group with unmatched product range. Caterpillar is one of the world's leading manufacturers of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Sime Darby, which is one of Malaysia's largest conglomerates, has six business divisions, namely plantations, property, energy and utilities, industrial, healthcare and automotive. Sime Darby Industrial Division is the world's fifth largest Caterpillar dealer. It has been distributing Caterpillar products for the past 80 years. Sime's industrial division registered its highest ever operating profit of RM1.1 billion for the financial year ended June 2011. The 41 per cent increase over the previous financial year was due to strong sales in Australia/Pacific Islands, China and Malaysia, as well as better price realisations across all regions.

Step up domestic investments, PM tells firms

Malaysia's domestic investments so far are way off the RM94 billion full-year target, says Prime Minister Datuk Seri Najib Razak

Read more: Step up domestic investments, PM tells firms http://www.btimes.com.my/articles/ddi15f/Article/#ixzz1YMbJIsn3

Kuala Lumpur: Malaysia's domestic investments so far are way off the RM94 billion full-year target, which will dampen the country's ambition to be a high-income and developed status by 2020. Prime Minister Datuk Seri Najib Razak urged "more local investors to stand out and to channel their funds in the country". Najib said the country needs domestic investments of about RM940 billion over 10 years, or roughly RM94 billion per year, in order to attain high-income and developed country status by 2020. Direct domestic investment (DDI) in manufacturing from January to July amounted to RM15.9 billion. Another RM11 billion was poured into the services sector in the first quarter of the year, for a combined DDI of RM26.9 billion. "We have quite some way more to go to reach our DDI target of RM94 billion for the whole year," Najib said, adding that the government always believes there is potential to further boost domestic investment. "I would like to call upon domestic investors to put up your capital in Malaysia, we have provided the platform for you to explore the opportunities and you may create your own wealth in your beloved country," he added. Speaking at the Domestic Investment Summit yesterday, Najib said that the Economic Transformation Programme (ETP) aimed at reversing the foreign direct investment (FDI) to DDI ratio, which stood at 60:40 in the past five years. The government hopes that the ETP can reverse the ratio to 73 per cent in favour of DDI. Up to July this year, manufacturing investments were split evenly between foreign and domestic sources. "With your interest in investing your money in Malaysia, it will support the plan laid out in the ETP and be more sustainable country in the long term," Najib said. At a press conference, International Trade and Industry Minister Datuk Seri Mustapa Mohamed said the RM94 billion DDI target is achievable. "Despite the very challenging economic and financial environment, Malaysia is on track to attract DDI and FDI," added Mustapa. He also noted that the prime minister has assured the private sector that the government has no plans to withdraw the re-investment allowance. Najib has guaranteed that both local and foreign investors will enjoy the same incentives and there will be no unfair treatment. The government, he said, has provided a wide and diverse range of fiscal and non-fiscal incentives to attract quality DDIs to capital intensive, high technology as well as creative and knowledge-based industries. "We are also making major investments in education and training to increase our pool of knowledge workers and improve the quality of our graduates," he added. The government has identified specific sectors which will be given support and high-impact funding. This includes halal, green energy, biotechnology, aerospace, advanced electronics, pharmaceutical and medical devices and maintenance-repair-overhaul engineering industries. "We have worked to reduce the cost of doing business by removing regulatory obstacles, simplifying rules and procedures, and promoting transparency and accountability in the government's delivery system," he added.

Ahmad Jauhari is MAS MD

Mohammed Rashdan Mohd Yusof remains as the executive director and reports to Ahmad Jauhari.

Read more: Ahmad Jauhari is MAS MD http://www.btimes.com.my/articles/ajyy/Article/#ixzz1YMax1zO2

Kuala Lumpur: After weeks of speculation, the country's national carrier has picked Ahmad Jauhari Yahya as its new managing director (MD). On August 26, Business Times reported that Ahmad Jauhari, the former Malakoff Bhd MD, was offered the job to lead the embattled national airline. Malaysian Airline System Bhd (MAS) told Bursa Malaysia yesterday that he will start work on Monday, September 19. The company added that Mohammed Rashdan Mohd Yusof remains as the executive director and reports to Ahmad Jauhari. Last month, MAS said it did not expect to make money this year after higher fuel costs kept it in the red for the second straight quarter. It made a net loss of RM526.6 million for the quarter to June 30 2011, up from the first quarter loss of RM242.3 million. It was also in August that MAS and AirAsia unveiled a share-swap deal between their major shareholders in a bid to collaborate as the airline industry in Asean nears free-for-all competition come 2015. Ahmad Jauhari, 56, is an electrical and electronic engineering graduate from University of Nottingham and from 1994 to 2010, he was the chief at Malaysia's independent power producer, Malakoff. Prior to that, he was the MD at Malaysian Resources Corp Bhd in 1993 and MD of Time Engineering Bhd in 1992. Ahmad Jauhari started his career in Esso Malaysia Bhd in 1977 until 1979 and in 1990 was the senior group general manager for production and circulation at the New Straits Times Press (Malaysia) Bhd. It is understood that Rashdan was also on the shortlist for the MAS top job. Sources also said that Datuk Kamarudin Meranun, the co-founder of budget carrier AirAsia Bhd, and Datuk Seri Shazalli Ramly, chief executive officer of mobile operator Celcom Axiata Bhd, were considered too.

Palm oil exports tipped to touch record RM80b

According to the Malaysian Palm Oil Board, Malaysia has achieved RM52.46 billion in palm oil exports in the first eight months of this year.

Read more: Palm oil exports tipped to touch record RM80b http://www.btimes.com.my/articles/forbo/Article/#ixzz1YMaTHpVp

Kuala Lumpur: Malaysia's palm oil exports forecast for this year is raised again to RM80 billion, which will be a new record, thanks to higher average palm oil prices and improved global demand. The current record was in 2008 when palm oil shipment topped RM65 billion as the crude palm oil (CPO) price averaged RM2,800 per tonne then. "Global demand for palm oil continues to be strong. India and China have been buying more palm oil. Africa has also placed more orders for Malaysian palm oil," said Malaysian Palm Oil Council chairman Datuk Lee Yeow Chor. Stronger commodity exports have helped the country offset weaker shipments of electronics, traditionally the major contributor to overall exports. According to the Malaysian Palm Oil Board (MPOB), the country has achieved RM52.46 billion in palm oil exports in the first eight months of this year. Two months ago, Plantation Industry and Commodities Minister Tan Sri Bernard Dompok forecast that this year's palm oil exports could top RM70 billion. In the first eight months of this year, palm oil futures prices were averaging at RM3,200 per tonne, higher than last year's RM2,700 per tonne. "We should do better than last year's RM60 billion as crude palm oil prices are still relatively high," Lee told reporters after speaking at Forbes Global CEO Conference on Tuesday. "Although we've milled 12.01 million tonnes of crude palm oil in the first eight months, 8 per cent more than the same period last year, prices are averaging at around RM3,200 per tonne. "Also, since palm oil is trading at a significant discount of more than US$200 per tonne (RM616) to soya oil, demand for palm oil should pick up in the months to come," he said. Asked if a new target of RM80 billion is achievable, Lee replied, "based on all the factors outlined, I would say yes". He reiterated MPOB's 18.3 million tonnes CPO output forecast for this year. This is good news for palm oil consuming countries worldwide because Malaysia, which supplies almost half of the palm oil, has experienced falling output in the last two years. In presenting his view on "fuel and sustenance for a green economy" at the conference, Lee explained how Malaysia has more than 400 mills that can convert waste to steam and electricity. The government, in reducing fossil fuel dependence, has called for more production of renewable energy and provided incentives in the form of feed-in tariffs that will kick off in December 2011. "Palm oil mills that are fuelled by biomass and biogas are already co-generating steam and power. Some of us are even supplying this green energy to the national grid to leverage on the feed-in tariffs," he said. When asked on green products the palm oil sector makes, Lee highlighted that the oleochemical industry produces biodegradable detergent and plastics. "The key ingredients that our oleochemical industry supply to detergent and surfactants manufacturers are biodegradable. It does not harm living organisms in our rivers and lakes," he said. Lee then cited Oil World's data, showing how the oil palm tree is the world's most efficient oil crop because one can harvest five tonnes of oil per hectare. This is 10 times more productive than soya oil planted in the US and five times more than rapeseed oil, Europe's main oil crop.

TNB: Gas shortage may force us to borrow

Kuala Lumpur: For the first time ever, Tenaga Nasional Bhd (TNB) may have to go to the banks to seek money for its operational expenditure if the gas supply shortage persists next year.

Read more: TNB: Gas shortage may force us to borrow http://www.btimes.com.my/articles/jrtnb/Article/#ixzz1YMa1zkqY

TNB president and chief executive officer Datuk Seri Che Khalib Mohamad Noh said the company had spent close to RM2.1 billion from January 2010 to August this year to substitute gas with distillates (diesel) as a temporary measure. Distillates cost five times more than gas. "We have never asked for opex (operational expenditure) before. This would be our first time ever. All this while we kept going to the banks for capex (capital expenditure)," he told reporters after TNB's Hari Raya Open House yesterday. "We cannot go on like this. Right now, the additional cost is being incurred by us through our reserves. We used to have RM5 billion (in reserves) which have depleted and we cannot finance that kind of money for next year all by ourselves anymore," Che Khalib added. TNB has proposed to the government that the extra fuel costs be shared between the utility, Petronas and IPPs (independent power producers). "This is bleeding the company now. If that proposal comes through, then we won't go to the banks for opex, but if it doesn't, then we have no choice, but to head to the banks," he added. TNB expects the cost for distillates to reach an estimated RM3 billion by the end of this year. "This is why we don't think we can do well this year. Don't expect our fourth quarter results to be good, it will be bad or possibly the worst ever result," Che Khalib added. However, he said consumers will not have to worry because any additional cost will not be passed on to them. The gas problem would only end after Malaysia's first liquefied natural gas import terminal in Malacca is up by next July. "We really hope it comes up on time," he added.

Hilangnya Dinar dan Dirham dari Arab Saudi


Ramai yang suka bertanya: mengapa Pemerintah Arab Saudi memakai wang riyal kertas, dan bukan Dinar dan Dirham?
Ini sebahagian dari jawapannya. (Sumber dinar2dirham.com)
Untuk menjawab pertanyaan mengapa Saudi Arabia memakai wang kertas riyal dan bukan Dinar emas dan Dirham perak, kita perlu mengetahui kedudukan kerajaan ini. Pada mulanya wilayah Hijaz adalah sebahagian dari Daulah Uthmaniah yang tentu sahaja, menggunakan Dinar emas dan Dirham perak sebagai mata wangnya. Pada pertengahan abad ke-18, sebuah amirat lokal, dipimpin oleh amirnya, Muhammad ibn Sa’ud (meninggal 1765)telah menguasai suatu desa yang kering dan miskin, Dariyah. Kegiatannya yang selalu membuat masalah dan mengganggu jamaah haji, kelompok Al Sa’ud terus-menerus dalam konflik dengan pemerintahan Utsmaniah. Mereka mendapat bantuan dari Kerajaan British.
Pada tahun 1924, Parlimen Turki melalui Kamal Artarturk telah mengistiharkan bahawa Khilafiah Uthmaniah sudah berakhir dan mengistiharkan penubuhan Republik Turki. Undang-undang shariah pada masa yang sama digantikan dengan undang-undang sekular. Empat hari selepas pengistiharan tersebut, Sharif Hussain yang menjadi penjaga haramain wilayah Othmaniah selama ini mengistiharkan dirinya sebagai Khalifah.
Salah satu mata rantai awal pemberontakan ini sendiri adalah Amir di Najd waktu itu. Abdullah Ibn Sa’ud berhasil ditangkap dan akhirnya dipancung di depan istana Topkapi, di Istanbul setelah diadili dan dinyatakan sebagai seorang zindiq, pada tahun 1818.
Pada 13 Oktober dan 5 Disember tahun 1924, Abdul Aziz bin Saud telah menawan Kota Mekah dan Madinah. Jeddah di awal tahun 1925. Pada tahun 1925 juga, di bulan Disember, Ibn Sa`ud menyatakan diri sebagai Raja Hijaz dan pada awal Januari 1926 ia menjadi Raja Hijaz dan Sultan Najd dan daerah-daerah bawahannya. Untuk pertama kali, empat wilayah penting di Jazirah Arabia, yaitu Najd, Hijaz, `Asir, dan Hasa, kembali berada di tangan kekuasaan suku Saud. Pada tahun 1932, Ibn Saud telah berhasil menyatukan apa yang sekarang dikenal sebagai Kerajaan Saudi Arabia.
Sebuah bank asing ditubuhkan di Jeddah pada tahun1926, tetapi kepentingannya sangat kecil. Bank-bank asing dan tempatan telah terbentuk apabila pendapatan minyak mula  meningkat. Perniagaan mereka mengandungi kebanyakannya membuat memberi pinjaman jangka pendek, membiayai import, dagangan perdagangan dan syarikat-syarikat yang memenuhi keperluan jemaah-jemaah haji.
Meninggalkan Muamalat
Sejak awal, Pemerintahan Saudi Arabia merupakan sekutu Barat (bermula dengan British, kemudian Amerika Syarikat), dan menjadi semakin erat dengan penemuan minyak pada tahun 1950-an. Beroperasinya perusahaan minyak raksasa (Aramco = Arabian-American Oil Company) dengan markas besarnya di Dahran, di tempat yang sama dengan Pangkalan Tentera AS (i 1946), di Hijaz, merupakan simbol dan sekaligus sumber kekuasaan Rejim Sa’ud sampai ketika ini. Semakin hari kita semakin kita ketahui Rejim Saud makin meninggalkan muamalat dan mendakap kapitalisme barat.
Raja Abdul Aziz bin Sa’ud, pengasas Saudi Arabia, berkuasa penuh mulai tahun 1926 sampai 1953. Pada mulanya, setelah memasuki Mekkah (8 Jumadil Ula 1343 H), beliau menolak wang kertas di wilayahnya setelah memusnahkan wang kertas lira Turki sekular yang beredar di Haramain. Pada masa pemerintahannya, jamaah haji dari penjuru dunia menggunakan belbagai jenis koin emas dan perak dari negara masing-masing. Namun koin dinar Hashimi dan riyal perak Austria – Maria Theresa, juga riyal perak Hijaz yang paling popular di sana.

Maka pada tahun 1950-an, adat kisah Raja Abdul Aziz yang selalu membawa harta kerajaan yang berupa koin emas-perak kemana pun dia pergi bagaikan orang kolot dan primitif. Namun setelah dia wafat, penggantinya iaitu Raja Sa’ud bin Abdul Aziz (1953-1964), bersikap lain. Sejak ia berkuasa, dengan bantuan teknikal Amerika Syarikat pada tahun 1952, Arab Saudi Monetary Agency (SAMA) ditubuhkan dan menerbitkan wang kertas riyal pada tahun 1961 melalui Dekrit Kerajaan 1.7. 1379 H, dalam pecahan 1 – 100 riyal.

Raja tergiur menerbitkan wang kertas kerana lebih menguntungkan daripada mencetak koin-koin riyal perak. Idea wang kertas diambil dari usaha SAMA atas penerbitan wang kertas resit yang berjalan dalam percubaan (trial) pada musim haji sepanjang tahun 1953-1957. Dengan menerbitkan Haj Pilgrim Receipt dalam satuan riyal perak, SAMA mulai menarik balik semua jenis koin emas dan perak yang beredar di Haramain. Para jamaah haji dari luar negera pun diwajibkan menukarkan koin emas perak yang mereka bawa.



Setelah menjadi semakin popular, kupon haji itu pun kemudian dinyatakan tidak digunakan lagi sejak Oktober 1963 dan akhirya tanggal 20 Mac 1964, digantikan dengan wang kertas riyal.
Masalahnya sejak saat itu, ONH atau BPIH (Biaya Perjalanan Ibadah Haji)wajib dibayar dalam wang kertas dolar AS, bukan dengan wang kertas riyal! Sebab Kerajaan Saudi Arabia telah menyepakati pula berlakunyaperjanjian Bretton Wood (1944), yang menyatakan bahwa dolar AS adalah satu-satunya mata wang yang laku untuk transaksi internasional.
Segala transaksi dengan koin dinar Hashimi dan riyal perak (1 riyal = 4 dirham), termasuk koin real Maria Theresa di batalkan oleh negara Saudi Arabia. Maka umat Islam sedunia berduka atas hilangnya matawang syariah dinar dan dirham.
Genaplah sudah makna hadis dengan maksud berikut: “Tak seorang pun manusia yang tidak memakan riba” yang diriwayatkan oleh Abu Daud, semoga Allah merahmatinya.
Dinar dan Dirham dihapuskan sampai dua kali, pertama 1914 oleh Sultan-sultan boneka sisa Daulah Uthmaniah(Turki), dan keduanya pada tahun 1964 oleh Kerajaan Saudi Arabia tersebut di atas. Tapi para ulama belum dapat mengambil kesimpulan dari terbitnya wang kertas riyal ini, tentang status halal-haramnya wang kertas. Sampai akhirnya, diterbitkan fatwa tentang wang kertas, pada tahun 1984, yang menyatakan bahwa wang kertas adalah halal.
Lahirlah Fatwa :  “Berkenaan hukum wang kertas fiat : Ia adalah matawang pada hukumnya disebabkan padanya terdapat sifat nilai harga yang lengkap, dan oleh itu semua hukum hakam yang ada pada emas dan perak adalah jatuh kepada wang kertas fiat seperti hukum berkaitan riba, kewajiban zakat, jual beli secara salam, dan seluruh hukum emas dan perak. (qararat wa tawsiat, Majma Al-Fiqh Al-Islami, hlm 40)
Begitulah, sejarah Islam yang dapat kita ketahui, fatwa Saudi Arabia yang menghalalkan wang kertas, satu-satunya fatwa resmi dari suatu pemerintahan (“Islam”) di dunia ini. Tetapi, kisah ringkas sejarah ekonomi politik Saudi Arabia sebagaimana diuraikan di atas, kiranya cukup menjelaskan mengapa Saudi Arabia menggunakan riyal kertas dan bukan Dinar emas dan Dirham perak.

Monday, 12 September 2011

Gold Price Monitor Chart (KFH) 12.09.2011


Petronas revs up lubricant ambitions

Alliances with OEMs like Group Lotus can help Petronas achieve its global target as well as become the number one lubricant company in Malaysia

Read more: Petronas revs up lubricant ambitions http://www.btimes.com.my/articles/PETTALI-2/Article/#ixzz1XkYVJ7Nj

Turin (Italy): Petroliam Nasional Bhd (Petronas) will soon unveil a strategic tie-up with a British sports-car maker as it ramps up its lubricants and other fluid business to become one of the world's top five players by 2016. Petronas also has approved a 50 million (RM209 million) budget to set up a new research and development centre at its lubricant manufacturing facility here in Italy. The centre is expected to be ready by 2015 and will be one of Europe's largest, if not the biggest. Petronas has roped in Group Lotus as its latest original equipment manufacturer (OEM) partner, expanding the portfolio that already boasts of the likes of Germany's Mercedes Benz, Italy's Fiat Automobiles Group, US' Chrysler and New Holland, the world's largest manufacturer of agricultural equipment. The alliance will be revealed at the Frankfurt Motor Show in Germany this week, according to senior executives of two Petronas subsidiaries that lead the national oil company's charge in the lubricant business. Alliances with OEMs like Group Lotus can help Petronas achieve its global target as well as become the number one lubricant company in Malaysia, executives of Petronas Dagangan Bhd (PDB) and Petronas Lubricants International (PLI) said. Petronas is just outside the world's top 10 in the segment, and is the second largest player in Malaysia, which consumes 250 million litres of lubricant a year. PDB senior general manager of retail business, Izuddin Husaini Mohd Yusoff said OEMs are very central to Petronas' lubricants business as they offer greater access to the lucrative after-sales market. "We want to be a top notch lubricant giant," Izuddin said, adding that the acquisition of FL Selenia of Italy had paved the way for Petronas to be big in the global lubricant scene. Petronas paid some 1 billion (RM4.17 billion) to buy Selenia in 2008, which was later consolidated into PLI. "OEMs are the driver of new technology in the (lubricant) market," PLI chief executive officer Aldino Bellazzini told Malaysian reporters during a visit to PLI's production and research and development centre here last week. Bellazzini said Petronas will supply all the lubricants and fluid needs of Lotus, which is owned by Proton Holdings Bhd, under the partnership. It will also support Lotus in the latter's motorsport activities except for Formula 1. He said although Lotus has a small production volume, such partnership is vital to help Petronas make more inroads in the after-sales market of premium brands. According to Parsippany, NJ-based consulting firm Kline and Co, the present top five global lubricant marketers by market share are Shell, ExxonMobil, BP, Chevron and Total. PDB lubricant business division general manager, Mohd Shobri A. Bakar said lubricant growth in Asia should be exponential in the coming years, with China and India being good markets for Petronas to go into. Big growth is also expected in South America. "Growth in Asia is going to be very good. China and India are good markets to go in. For international business, the focus will be on the growth in Asia and South America as well as some parts of North America." Petronas markets its lubricants under various brands including Syntium, Syntium Moto and Urania. It exports to European countries as well as China, India, Thailand, Indonesia and Sudan, among others. Petronas is ranked among Fortune Global 500's largest corporations in the world.

Gas Malaysia guarantees dividends in first 2 years

The dividends areto reward shareholders' loyalty over the years, says MMC Corp group managing director

Read more: Gas Malaysia guarantees dividends in first 2 years http://www.btimes.com.my/articles/GASDEN-2/Article/#ixzz1XkY63Bn3
Kuala Lumpur: Gas Malaysia Bhd will pay a guaranteed dividend of 100 per cent and 75 per cent in the first two years, respectively, after floating its shares on Bursa Malaysia in December this year. MMC Corp Bhd group managing director, Datuk Hasni Harun said Gas Malaysia is on track for a listing as part of MMC's strategy of unlocking value and reducing debt. "The dividends are also to reward shareholders' loyalty over the years," Hasni told Business Times in an interview last Friday in conjunction with MMC's 100-year anniversary. MMC and Shapadu Group own 55 per cent of Gas Malaysia. Tokyo Gas-Mitsui and Co (Holdings) Sdn Bhd and Petronas Gas Bhd hold another 25 per cent and 20 per cent, respectively. Petroliam Nasional Bhd (Petronas) also has a golden share in Gas Malaysia. Gas Malaysia submitted its initial public offer (IPO) request to the Securities Commission on August 23 and is waiting for approval. "Gas Malaysia's strong balance sheet with zero debt will attract good response for the IPO. MMC is optimistic of Gas Malaysia's prospects as it is poised to deliver strong and sustainable performance driven by continued demand from industrial customers," said Hasni. Gas Malaysia is the sole supplier of natural gas to the non-power sector and supplies energy to over 31,000 residential and 600 commercial customers as well as industrial costumers throughout Peninsular Malaysia. The company enjoys strong backing from Petronas and has a long-term agreement with the national oil corporation to supply 300 million standard cubic feet per day of gas. Gas Malaysia's recession-proof gas reticulation business will continue to provide MMC with a steady stream of cashflow. Hasni revealed that Gas Malaysia's volume grew six per cent in the first half of 2011, underlying stable demand for the product. Hasni was reported to have said that Gas Malaysia could have a market value of about RM5 billion and raise up to RM167 million. MMC's stake would be diluted to 30.93 per cent from 41.80 per cent. MMC, controlled by tycoon Tan Sri Syed Mokhtar Al-Bukhary, is also planning other IPOs after Gas Malaysia. These include 51 per cent unit Malakoff Bhd next year and subsequently either wholly-owned Johor Port Bhd, subsidiary Port of Tanjung Pelepas (PTP) or Johor Port and PTP combined. "We will see what happens. We want the port business to mature first generating RM300 million or RM400 million of profit by 2013 before we go for listing," Hasni added. PTP and Johor Port made a pre-tax profit of RM52 million and RM155 million, respectively, in 2010. Hasni said the listing of the ports is necessary as they are hitting maximum capacity. It would, therefore, need to spend some RM1 billion to expand. MMC, which operates ports and power plants, is the country's largest container port operator, commanding 40 per cent of Malaysia's total container throughput with a maximum capacity of 8.5 million twenty-foot equivalent units (TEUs) last year. MMC is also the project delivery partner for the country's RM36 billion mass rapit transit project together with Gamuda Bhd, its joint venture partner.

Record mall deals in Malaysia

Kuala Lumpur: The country's fascination with shopping malls have turned these properties into highly sought-after assets.

Read more: Record mall deals in Malaysia http://www.btimes.com.my/articles/ibuymall/Article/#ixzz1XkXlqLuo

So far this year, the number of deals involving malls or retail assets has reached a record and there is a possibility that more could be announced this year, industry experts say. At least nine deals valued at over RM2 billion have been reported in the first nine months of the year, stretching from the northern state of Penang to Johor in the south and from the west of Klang Valley to the eastern state of Pahang. Improved consumer spending and liberalisation of the market has helped spur interest in retail assets. As the global economic recovery continues to be shaky, Malaysia has turned to domestic demand to boost its economy, chief economist at Bank Islam Azrul Azwar Ahmad Tajudin said. "Malaysian consumers have proven to be rather resilient even during times of crisis. During the 2009 recession, the economy contracted by 1.7 per cent but private consumption was still in positive territory," he added. In year 2000, private consumption or consumer spending accounted for 43.8 per cent of the gross domestic product (GDP) while in 2010 the number surged to 53.3 per cent of GDP. Azrul reckons private consumption will grow further to 54 per cent in 2011 and 54.6 per cent in 2012. Malaysia Retailers Association has projected retail sales to grow 6 per cent this year, probably faster than the broader economic expansion seen at 5-6 per cent. CB Richard Ellis (CBRE) Malaysia's managing director Allan Soo expects a few more deals this year. "REITs (real estate investment trusts) tend to look for both yield accretion and steady income streams. Retail assets here have a great accretion opportunity at the moment. "Passing yields at acquisitions are mostly at 7 per cent but for trophy assets this may be pressured down to below 6 per cent. The pressure on yields results in higher valuations, so on a per sq ft basis, malls are now seeing better valuation than about five years ago," Soo said. At the same time, higher valuations have triggered previously less willing owners to part with their assets. Another major factor was Malaysia's decision to scrap a rule that required foreign investors to have a 30 per cent Bumiputera partner. In addition, the Securities Commission's endorsement of REITs as an investment alternative have also helped. In January this year, CapitaMalls Malaysia Trusts (CMMT) said it would be buying The Gurney Plaza extension in Penang for RM215 million and in June it announced that it would be buying East Coast Mall for RM310 million. In May, ARA Asia Dragon Fund won the bid for three shopping complexes - Klang Parade in Selangor, Ipoh Parade in Perak and Seremban Parade in Negri Sembilan. It paid some RM450 million to TMW Asia Property Fund, which had bought the malls for RM340 million in 2005. Meanwhile, Adzman Shah Mohd Ariffin, founder of Hektar Property Services Sdn Bhd agreed that for some owners, a sale is actually part of their exit strategy to cash out. "At the same time, foreign purchasers have found that the land/ownership law is more straightforward and properties in Malaysia are still cheaper than in other countries although at lower returns at times," he said. This week, we also received news that Bandar Raya Developments Bhd (BRDB)'s major shareholder Ambang Sehati Sdn Bhd, controlled by its chairman Datuk Mohamed Moiz Jabir Mohamed Ali Moiz, had offered to buy three retail assets belonging to BRDB. The properties are The Bangsar Shopping Centre (BSC), CapSquare Retail Centre in Kuala Lumpur, and Permas Jusco Mall in Johor. BRDB is believed to have received many offers for its trophy asset - BSC.

Laos, Thailand to boost Maybank's regional foothold

Maybank has applied for a banking licence in Laos and plans to expand retail banking in Thailand

Read more: Laos, Thailand to boost Maybank's regional foothold http://www.btimes.com.my/articles/maylog/Article/#ixzz1XkXRIcif

Kuala Lumpur: Malayan Banking Bhd (Maybank), which launched its refreshed logo yesterday, is implementing plans to become a regional player with the latest expansion in Laos and Thailand. Maybank president and chief executive officer Datuk Seri Abdul Wahid Omar said Maybank has applied for a banking licence in Laos and hopes to open the first branch next year. The country's largest banking group already has two branches in Vietnam and a 20 per cent stake in An Binh Bank. "We plan to expand retail banking in Thailand, but we are already the number one brokerage there via Kim Eng (Holdings Ltd)," he told a news conference after the launch of Maybank's new logo by Prime Minister Datuk Seri Najib Razak yesterday. Maybank's network currently includes over 2,100 offices in 17 countries where it has over 42,000 employees serving more than 21 million customers. On the collaboration with Japan's Mizuho Corporate Bank, Wahid said following the partnership deal signed in December last year, a Japanese desk headed by Mizuho executives was set up at Maybank. However, both parties have mutually agreed to terminate the Japanese desk and now the collaboration is based on a deal-to-deal basis. He said Mizuho is interested in a few Maybank Islamic products to be offered to its clients in Malaysia and Japan. On the new logo, Wahid said the investment is part of the bank's efforts to upgrade the physical infrastructure of the bank and its branches. "The incremental cost is marginal, about RM13 million," he said, adding that the bank will also embark on a media campaign across Southeast Asia to showcase Maybank as a regional banking group. He said the biggest signages of the new logo will be put up on Menara Maybank and Dataran Maybank in Kuala Lumpur, and Maybank Tower in Singapore.

ItraMAS Technology Swith Sirim joint product development of LED

ItraMAS Technology Sdn Bhd has signed a memorandum of understanding (MOU) with Sirim Bhd on technical cooperation and joint product development of the former's next-generation light emitting diode-based (LED) lighting products. ItraMAS chairman, Datuk Khairuddin Ibrahim, said under the MOU, the company would be able to produce new products with green technology in LED lighting at a lower cost as they would use its manufacturing facility in Penang. "The collaboration will leverage on ItraMAS' strength as one of the pioneering homegrown companies specialising in research and development (RandD) of LED-based applications and Sirim's in RandD on composite materials," he said after the signing of the MOU here today. ItraMAS chief executive officer, Lee Choo Boo, said with the new products, ItraMAS aimed to grow its sales by 20 per cent next year. "Our sales this year will be approximately RM52 million," he said. ItraMAS has over 10 years' experience in the design, development, manufacturing and marketing of LED products globally. Acting president/chief executive of Sirim, Dr Zainal Abidin Mohd Yusof, said the collaboration with ItraMAS was timely as the company aimed to spur its technology further while helping the country gain a competitive edge in the LED lighting industry. "Sirim is also in the midst of developing a national industrial standard on LED lighting to spearhead the development of a LED cluster in Malaysia," he said. -- Bernama

RM1.43b investments to create 10,000 jobs

More than half of the new investments come from two companies, namely Kuala Lumpur Kepong and Vasseti Datatech

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Kuala Lumpur: The government yesterday announced fresh investments of RM1.43 billion from eight new projects as part of the Economic Transformation Programme (ETP). The new projects, ranging from manufacturing to broadcasting and aerospace engineering training, are expected to create almost 10,000 new jobs. The ETP is part of Malaysia's plan to boost investment from the private sector and also transform the country into a high-income economy by 2020. More than half of the new investments announced by Prime Minister Datuk Seri Najib Razak yesterday came from two companies, namely plantation group Kuala Lumpur Kepong Bhd (KLK) and Vasseti Datatech Bhd. KLK is investing RM706 million in an integrated methyl ester sulphonate and fatty alcohol plant and a world-class research and development centre, among others. Najib also announced that Vasseti will supply all government health facilities with television sets to broadcast the Health Ministry's official MedikTV channel as part of efforts to educate the people on healthcare. "This project will involve an investment by Vasseti Datatech of RM400 million by 2020, and this will be recouped by the company through advertising revenue and will create about 650 jobs," he said. Last year, Tan Sri Syed Yusof Syed Nasir emerged as a 30 per cent shareholder of Vasetti, a telecommunications and information technology group. Its other shareholders are Ranjeet Singh Sidhu and Datuk M. Harisharan Pal Singh, according to other media reports. On a collective basis, the ETP has recorded RM171.21 billion in investment, RM228.55 billion in gross national income and 372,361 new jobs. Najib also announced three schemes under the Strategic Reform Initiatives (SRIs) that will help improve people's skills and address the development of Bumiputera companies. SRIs are the second critical component of the ETP and it deals with improving Malaysia's competitiveness. The first is MSC Malaysia's MyProCert, a programme to further train Malaysians towards international certification standards. The first course to be launched in September is the MyProCert (SAP) certification. The second is the National Talent Enhancement Programme (NTEP), a 12-month training programme to help develop industry-relevant skills via partnerships with electrical and electronic companies. Engineering graduates with between one or two years work experience and those who wish to upskill or re-skill to enter the electrical and electronics (EandE) sector and green technology field are welcome to join the NTEP. The third scheme is the High Performing Bumiputera SME (HPBS) Programme known as TERAS. It aims to help Bumi small and medium enterprises compete in the open market without relying too much on government contracts.

DRB-HICOM plans RM1b capex

The bulk of the capital expenditure will be used to expand its automobile assembly plant in Pekan, Pahang

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Shah Alam: DRB-HICOM Bhd, a conglomerate, plans to spend up to RM1 billion in its current financial year mainly to grow its automotive business. According to group managing director Datuk Seri Mohd Khamil Jamil, the bulk of the capital expenditure will be used to expand its automobile assembly plant in Pekan, Pahang, for the assembly of Volkswagen Passat as well as the manufacture of 8x8 armoured wheeled vehicles. The rest of the money will be used to set up an International College of Automotive Manufacturing, its flagship campus, as well as for property development projects. It also plans to raise as much as RM1.7 billion over the next five years. The funds will be used to finance the group's expansion in its automotive business as well as to part-finance its recent acquisition of Pos Malaysia Bhd. "We are looking into the (fund-raising) programme now, within this year or next year (to start the programme)," Mohd Khamil said after the company's annual general meeting yesterday. Mohd Khamil added that the company is looking at several funding options, including sukuk. On its automotive business, Mohd Khamil said the company is in talks with Audi to assemble Audi cars in the country. "We are the franchise holder (of Audi) here ... that is one of the things in my Key Performance Indicator (KPI)," he said. DRB-HICOM has been the local sole importer and distributor of Audi vehicles since 2003 through wholly-owned Euromobil Sdn Bhd, achieving a total sales of 745 units in the financial year to March 31 2011, an improvement of 55 per cent against 2010's sales of 480 units. On its property business, Mohd Khamil said several property launches have been lined up for the current financial year, with an estimated gross development value of RM500 million. These property launches include the subsequent phase of Glenmarie Gardens bungalows, Laman Glenmarie residential units, semi-detached houses and commercial developments in Proton City and bungalows in Glenmarie Cove in Carey Island.

Shell Malaysia HQ on sale for RM140m

The 25-year-old building, with a total net lettable area of 212,867 sq ft, is on offer for sale by private treaty as opposed to an auction.

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Kuala Lumpur: Bangunan Shell Malaysia in Damansara Heights has been put up for sale for an estimated RM140 million. The 25-year-old building, which has been Shell Malaysia's headquarters ever since, is on offer for sale by private treaty as opposed to an auction. The building is a 12-storey tower with a basement car park and is adjacent to Wisma Chase Perdana on Changkat Semantan. It has a total net lettable area of 212,867 sq ft. According to property consultant Rahim and Co's website, it had been hired as the exclusive marketing agents for the office building by the owners, Haluan Gigih Sdn Bhd. Officials from Rahim and Co declined to comment. Shell Malaysia occupies the entire building on a leaseback arrangement which expires on September 15 2012, with the option to extend the tenancy on a quarterly basis up to September 15 2013. Shell, in 2009, said that it planned to move to 348 Sentral where it had signed as an anchor tenant under a 15-year lease. It is understood that the purchaser will likely be able to collect rent up until early 2013. The new owner would also have a year to look for a new tenant. Rental in the area hovers around RM4 to RM4.50 per sq ft, including service charge. It is a freehold building with a land area of 124,173 sq ft. There are also badminton and squash courts in the building. Unlike most landlord and tenants agreements, where the landlord usually spends on renovation and the upkeep of the building, Shell has, over the years, ploughed in money for the upgrade and maintenance. Bukit Naga Development Sdn Bhd originally invested RM69.4 million in the property between 1985 and 1987. In 2003, Exclusive Skycity Sdn Bhd bought it from Bukit Naga for RM79 million. According to a filing to the stock exchange, Exclusive Skycity is wholly-owned by Metacorp Bhd (which was delisted in 2009). Metacorp, in turn, is a wholly-owned unit of MTD Capital Bhd. In 2009, MTD Capital entered into a sale and leaseback agreement with Haluan Gigih for RM105 million. Haluan Gigih is a wholly-owned subsidiary of Alloy Consolidated Sdn Bhd which was a major shareholder of MTD. MTD Capital was delisted in May 2011.

MIDF banking on revamp to boost returns

Kuala Lumpur: Malaysian Industrial Development Finance Bhd (MIDF) is aiming to achieve double-digit returns on equity (RoE) in the next five years, helped by a restructuring exercise.

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The revamp, according to group managing director Datuk Mohd Najib Abdullah, has primed the organisation to become a trusted financial adviser with a unique cradle-to-maturity approach. He said MIDF's revamp of its business model has put it in a stronger position to achieve its objective. "This involves changes in how each of MIDF's core business operates," he told Business Times in an interview. MIDF was established in March 1960 to ensure access to financing for manufacturing-based small and medium enterprises (SMEs). Today, the group is a financial services provider in three core areas, namely investment banking, asset management and development finance. Under the revamp, the focus of its development finance division was reverted to its original intent, which is to assist the government in restructuring the economy, while targeting specific sectors of the economy. This entails a move towards assisting SMEs in the services sector and assisting companies in certain core sectors as in the New Economic Model, Najib said. MIDF Asset Management Bhd (MIDF Amanah) now offers a full range of products, ranging from unit trusts to corporate asset management. MIDF's investment banking division, under MIDF Amanah Investment Bank Bhd (MIDF Investment), has been revamped into a niche, value-accretive and sustainable provider of services with targeted and specialised offerings. Currently, the investment banking division is the major contributor to the group's business, generating some 70 per cent of MIDF's revenue. "Our strategy is that we want to achieve acceptable returns on equity and returns on investment. It's not so much on the top line numbers, but being focused on creating value for our shareholders," Najib said. According to him, MIDF's three core businesses are very much intertwined, offering longstanding relationships with clients in a cradle-to-maturity lifecycle. He said development of finance division provides a starting point for SMEs, and as they grow and progress, they can tap into the services provided by MIDF Investment. As these companies expand further, they could then engage MIDF Amanah for services such as corporate asset management. "Some of our clients have been with us for many generations," he said, adding that many of MIDF's SME clients are now publicly-listed companies. Besides financial services, MIDF also provides advisory services to clients to assist in their corporate and debt structuring. "We don't intend to compete with privately-owned financial institutions as we have a niche, a space to operate for which we can create value to our various stakeholders," he said. Najib also said that the global economic crisis presented some challenges to the group in terms of portfolio management. "But, with the improved economic environment, local companies have been able to strengthen their operations and have experienced a positive turnaround in business. Problem loans have improved significantly," he added.