ASEAN BUSINESSMEN

Reblogged

ASEAN BUSINESSMEN

OCT31
2011LEAVE A COMMENTWRITTEN BY CHEDET

1. Asean businessmen wants to know about the European Union and the Eurozone and the financial crisis plaguing them.

2. For this they invited Tony Blair – the failed Prime Minister of Britain. Blair is the least educated about Europe and its management.

3. What he did as PM of the United Kingdom was to trot at the heels of President Bush. When Bush lied, he came up with an even more amazing lie. He claimed that Iraq could attack Britain with missiles etc within 45-minutes, using weapons of mass destruction which he declared Iraq had.

4. To prevent this attack Britain must, together with the United States, attack Iraq in a pre-emptive war.

5. Then after occupying Iraq and searching for weapons of mass destruction, none were discovered.

6. Unfazed Blair declared that the attack on Iraq was to remove “dictator” Saddam Hussein.

7. After he was removed as PM, the British set up a Commission to go into the misdeeds of Blair. The British regarded Blair as the worst PM of Britain. They made it clear he was a liar. His lies resulted in British soldiers being killed and wounded. (That a hundred thousand plus of innocent Iraqis were also killed is of course acceptable).

8. This liar is apparently looked upon by Asean businessmen as a sage, as a man whose words must be listened to in order to understand the problems faced by the EU.

9. The only thing they can learn from the liar Blair is how to lie. This man is guilty of war crimes, of mass murder. He should be tried and punished. And businessmen should not learn how to lie.

THE TRAGEDY OF LIBYA

Read the original HERE

WRITTEN BY CHEDET

1. One is always shocked when someone one knows suffers a tragic end. Maybe for the enemies of Gaddafi, he deserves what he got. But that does not lessen my sadness over the manner of his demise.
2. As Prime Minister I met Gaddafi several times. He was always hospitable. Much of my time with him was spent in answering questions explaining about Malaysia. He seemed to want to learn about developing a country. I believe he wanted to do the same for Libya.

3. In his early years he had plans for improving the lives of the Libyans. He, it was, who initiated the irrigation of the fertile coastal areas through building the great artificial river. A Korean contractor undertook the job, building a huge pipeline to carry underground water from the distant interior to huge tank storage farms and then to irrigate the land.


4. I was much impressed by this project. Obviously he cared enough for his country and people to do this. But beyond that nothing much was done. Despite huge revenues from oil exports the country remained poorly developed. The people were relatively poor for a country with huge oil reserves.
5. The Western press reported about his alleged cruelty against his detractors and enemies. But I have always been leery of the Western press. According to them I am also a great dictator who imprisoned hundreds of my political enemies. I know this is not true. And so I discounted much of the western press reports about Gaddafi.

6. But he was certainly deficient in understanding the purpose of Government. He had no real plan for developing his country and prospering his people. He did not travel much to see how the other countries were developing. But his house where my wife and I had lunch with him and his wife was no palace. It was not even luxurious.

7. Most of the time he was reclusive and after the western attempt to kill him, he feared for his life. He met visitors in a tent in a walled compound.

8. I do not know about the cruelties perpetrated by him or his people. During his retreat recently I did not read about his prisoners being liberated or mass graves of the victims of his cruelty. Maybe these will be discovered later.

9. In war cruelty is to be expected. In fact war legitimises cruelty, including killings. Still to see the cruelty, the killing inflicted on someone you know, shocks and saddens you.

10. I am saddened by the killing of Gaddafi. He should be arrested and tried for his crime. But I know that is not the way today. Osama bin Laden was also executed by the United States’ soldiers. There are contracts made by “civilised democratic” Governments on several people as there were in the past I fear the fate of Gaddafi will befall others who fail to see the writing on the wall. The powerful, with vested interest in a regime change will ensure that this will happen. They have much to gain.

11. I hope and pray that Libya will get a good Government after this, headed by leaders who truly believe in good Government, who will be prepared to lose in clean elections which will not be manipulated.

KL Metropolis expected to woo RM3.5b foreign investments

Foreign companies may invest that amount to build properties, either on their own or in partnership with Naza TTDI

Read more: KL Metropolis expected to woo RM3.5b foreign investments http://www.btimes.com.my/articles/NAZA25/Article/#ixzz1burls8JN

KUALA LUMPUR: The Naza Group's KL Metropolis project is expected to lure foreign investments of some RM3.5 billion over its 15-year development period. Foreign companies may invest that amount to build properties, either on their own or in partnership with Naza TTDI Sdn Bhd, the property arm of Naza Group. "While we can build the structures on our own, we want to give opportunities to others for transfer of technology and expertise," Naza TTDI group managing director SM Faliq SM Nasimuddin said af-ter the project's launch on Tuesday. The RM15 billion project is located next to the existing Matrade building off Jalan Duta and is touted as a new business district. It will feature 22 office and residential towers, which include a 100-storey building and three hotels, as well as the new one million sq ft Matrade centre and two retail centres with more than two million sq ft of space on 30 hectares. Launched by Datuk Seri Mustapa Mohamed, the Minister of International Trade and Industry (Miti), the project will be developed in three phases. Phase 1 will comprise the exhibition centre, two residential towers, two hotels, two office towers and a retail centre, worth a combined RM6 billion. Faliq said tenders to cons-truct the buildings will be called next month. It has appointed a local contractor to do the piling work. Naza TTDI will borrow from banks and use internal funds for the initial stages of development, after which it may raise more money from a bond sale. The company is expected to invest RM500 million on infrastructure alone. "We aim to complete Phase 1 by 2014/2015," he said. Naza TTDI is already in talks with several foreign investors to build the retail and com-mercial properties in a joint venture. It is also in discussions with a few five-star international hotels and mall operators to manage some of its properties. "We are seeking five-star hotel operators and good retail partners for the project. We want to make this a world-class business and tourist destination," Faliq said. Naza TTDI will announce several deals before the end of this year or early next year. Faliq said Phase 2, which will start in 2015, will have five residential towers, three office blocks, a boutique hotel, a healthcare centre and the 100-storey building, worth RM4 billion. Phase 3, worth RM5 billion, will start in 2019, consisting of three residential towers, three office buildings and a retail centre, he added. "We have attracted a lot of local and foreign interest for this project, repositioning Malaysia on the world map. We expect several en bloc deals coming in," Faliq said. KL Metropolis is designed to Malaysia's Green Building Index requirement and is also the first registered LEED for Neighbourhood project in Malaysia. The LEED certification is an internationally-recognised green rating system that incorporates the principles of smart growth, urbanism and green building.

Glenn Marine pitches for new port

Kuala Lumpur: The owner and operator of the Port Klang Cruise Centre (PKCC) in Pulau Indah has come up with a proposal to convert the country's first cruise terminal into Port Klang's third container port.

Read more: Glenn Marine pitches for new port http://www.btimes.com.my/articles/3port-2/Article/#ixzz1bkXuPzQk

Port Klang Authority chairman Datuk Teh Kim Poo told Business Times that owner-operator Glenn Defense Marine (Asia) Sdn Bhd (GDMA) had submitted its proposal to the port authority. GDMA bought over PKCC from Star Cruises Terminal Sdn Bhd for RM118 million in 2009. GDMA is part of the Glenn Marine Group of Companies which is partly owned by Lembaga Tabung Angkatan Tentera (LTAT). "They have shown us the proposal, we did our studies and found that it was a good idea. We have no objections, but it's up to them to get the approval of the Ministry of Transport," he said. When asked why the location was not considered in its 20-year master plan, Teh said the idea of converting the cruise terminal into a container port had not come about then. The Port Klang Development Master Plan 2010-2030 commissioned late last year in effect had identified five locations, which did not include the PKCC site. These were Pulau Che Mat Zin, Klang Bar Channel, Old Klang Bar Channel, Pulau Carey and Kampung Batu Laut. Industry players have questioned the need for a third port considering there is room for expansion in Northport and Westports. Teh, however, begged to differ, saying land for expansion at the two ports were limited. "Westports has land for further development but this is land owned by Tan Sri G. Gnanalingam in his personal capacity, we cannot consider that in our plans," Teh said. PKCC is parked under Glenn Ports and Cruise Terminal in the group. Its chief executive officer Brian Paul did not respond to e-mailed questions as at press time. PKCC, which started operations in December 1995, is the first purpose-built modern dedicated cruise terminal in Malaysia.

Sites for third Port Klang terminal identified

The five options for expansion are Pulau Che Mat Zin, Klang Bar Channel, Old Klang Bar Channel, Carey Island and Kampung Batu Laut.

Read more: Sites for third Port Klang terminal identified http://www.btimes.com.my/articles/pport/Article/#ixzz1bkX3ns6Q

Kuala Lumpur: The Port Klang Master Development Plan for the next 20 years has identified five possible locations for a third terminal. The report lists five options for expansion - Pulau Che Mat Zin, Klang Bar Channel, Old Klang Bar Channel, Carey Island and Kampung Batu Laut. According to an industry source, despite the distance from the current ports Northport and Westports, Pulau Carey and Kampung Batu Laut locations are the most viable for expansion plans. "The other locations are very much limited in scope when it comes to breakwater and it will also involve a lot of costs," he said. According to media reports less than two weeks ago, Port Klang Authority (PKA) chairman Datuk Teh Kim Poo announced that PKA will develop a third terminal for Port Klang. He said the third terminal was necessary to accommodate growth in container throughput for the port. Northport and Westports are expected to be fully utilised by 2016. They handled 8.9 million twenty-foot equivalent units in 2010. Pulau Che Mat Zin is located on the north western bank of the existing channel for Port Klang, opposite Westports. Klang Bar Channel is an extension of the Westports expansion over the channel bar, east of the existing bar. Old Klang Bar Channel is similar to Klang Bar Channel but in this case, the bar channel is moved further north to its original alignment on a straight continuation of the river channel. The alternative at Carey Island will require a new terminal to be constructed in the open sea outside the Klang River Estuary to the south of Carey Island. As for Kampung Batu Laut, it would require the construction of a new port area, about 40km to the southeast of Port Klang. "This is outside the consultancy remit but cannot be ruled out as an option at this stage," the report said.

Rimbunan Hijau shortlisted as lead company

Rimbunan Hijau will invite other Malaysian companies to jointly develop the Qinzhou-Malaysia Industrial Park in China

Read more: Rimbunan Hijau shortlisted as lead company http://www.btimes.com.my/articles/nanno3/Article/#ixzz1bTYXT4Pa

Nanning (China): Rimbunan Hijau Group has been shortlisted as the lead company from Malaysia to jointly develop the 55 sq km Qinzhou-Malaysia Industrial Park in south-west China, Prime Minister Datuk Seri Najib Razak said. Najib said Rimbunan Hijau will invite other Malaysian companies, which can include government-linked companies, to participate in the development of the industrial park. "They (Rimbunan Hijau) have strong financial back-up and good networ-king in China," he told the Malaysian media here yesterday. The Chinese government has invited Malaysian companies to take up a 49 per cent stake in the joint-venture company to develop the park. The first phase of the park, covering 15.1km area, costs about 4.8 billion reminbi (RM2.37 billion). Najib said works on the large-scale industrial park have started and the project will be launched soon. He said the project is significant in the cooperation between Malaysia and China and will enhance trade between Asean and China as the park is near to Asean and is supported by a deepwater port. Malaysian companies will be able to demonstrate their expertise to handle projects of such a scale, he added. The prime minister said he has asked Malaysia-China Business Council chairman Tan Sri Ong Ka Ting to give special attention to the project. "I will appoint him as Prime Minister's Special Envoy to China, so that he will have more influence to deepen the relations between Malaysia and China," he said. The development of the industrial park, which will be done in three phases, is scheduled to be completed within 15 years.

Apology to Dato' Abdul Gani Yusof

The New Straits Times hereby withdraws the statement and imputations unreservedly and apologises to Dato' Abdul Gani b. Yusof for any distress, embarrassment and inconvenience which may have been caused to him.

Read more: Apology to Dato' Abdul Gani Yusof http://www.btimes.com.my/articles/ganiy/Article/#ixzz1bTXkHFM3

On the 14th of January 2011, the Business Times section of the New Straits Times carried on its front page an article wherein it was stated therein that Dato' Abdul Gani bin Yusof had sold 100 million shares of Metronic Global Berhad (Metronic) in the open market without prior notification to Bursa Malaysia Securities Berhad (Bursa). The article implied that Dato Abdul Gani b. Yusof had breached the Listing Requirements of Bursa and that the failure to notify Bursa had caused the shares of Metronic to be suspended from trading from 11.17am to 2.3 pm on the 13th of January 2011. The New Straits Times acknowledges that the above statement and imputations were erroneous. The New Straits Times accepts that there was no requirement for Dato' Abdul Gani b. Yusof to notify Bursa, prior to selling the said Metronic shares. The New Straits Times hereby withdraws the statement and imputations unreservedly and apologises to Dato' Abdul Gani b. Yusof for any distress, embarrassment and inconvenience which may have been caused to him.

RM8b-RM10b Cyberjaya project on drawing board

Known as Cyberjaya City Centre, the 57ha commercial project will take about 15 years to develop, says Cyberview managing director

Read more: RM8b-RM10b Cyberjaya project on drawing board http://www.btimes.com.my/articles/CYBERJ20/Article/#ixzz1bMVyB97u

Cyberjaya: Cyberview Sdn Bhd, the landowner of Cyberjaya, is coming up with a new commercial project worth about RM8 billion to RM10 billion to drive new investments at the cybercity. Known as Cyberjaya City Centre, the 57ha project will take about 15 years to develop, said Cyberview managing director Hafidz Hashim. "We are selling the tender documents now for companies to compose the best masterplan and commercial proposal. "We expect this project to take Cyberjaya to a new level," Hafidz said yesterday after a media briefing on the Cyberjaya progress. It is understood that more than 20 developers are keen in the project, including Mah Sing Group, UEM Land Holdings and Naza Group. Cyberview aims to woo more multinational companies (MNCs) and domestic investments there. More than 500 firms are operating in Cyberjaya, and 35 MNCs. In terms of land deals, Cyberjaya has sold three times more landbank this year totalling 259ha (RM1.23 billion) compared with 82ha (RM404.30 million) in 2010, driven by developers seeking to launch residential projects. Hafidz said this brings total investment into Cyberjaya for 2011 to RM3.04 billion, or RM12.35 billion since its inception in 1997. Meanwhile, Cyberjaya expects RM3.73 billion worth of new developments for next year, which are to be achieved through further land sales of enterprise, commercial, institutional and residential space, Hafidz said. "There is more interest now in Cyberjaya. The investing public are more aware that we are very close to the Kuala Lumpur City Centre and the Kuala Lumpur International Airport in Sepang. "The connectivity has opened up attention to other developers," Hafidz said.

Bullish tone for REDtone

This is definitely a turnaround year for REDtone International, says its managing director

Read more: Bullish tone for REDtone http://www.btimes.com.my/articles/tone19f/Article/#ixzz1bFW8CGEd

Puchong: REDtone International Bhd, a telecommunications service provider, believes the worst is over and it might return to the black in the current financial year, boosted by revenue from its broadband business. "This is definitely a turnaround year for REDtone. Barring unforeseen circumstances, we are likely to break even or be profitable this financial year (ending May 31 2012). As you know, we suffered a net loss of about RM11 million last year, so if we break even, it would mean an improvement of RM11 million ... that's a huge improvement," said its managing director Datuk Wei Chuan Beng in a Business Times exclusive. The company suffered a net loss of RM11.7 million for the fiscal year ended May 31 2011 against a net loss of RM5.4 million a year ago. REDtone has been posting net losses since its 2008 financial year and the market will be keenly watching its first-quarter results, due to be announced sometime this month, for an indication that the company has indeed made a turn for the better. Wei said the wider net loss previously was partly due to the roll-out of its wireless broadband network in East Malaysia, impairment of past investments in China and provision of doubtful debts, among others. "Our core businesses are showing positive signs. Voice business has been profitable for many years. "Our data business is also profitable now, our WiMAX broadband business in East Malaysia is very close to breaking even, and that's a very good progress." He said its broadband business was in an investment mode over the past few years, especially in East Malaysia. REDtone has now stabilised and Wei believes it is at a tipping point where the business can be profitable. REDtone now offers broadband services to close to 10,000 residential customers and 1,000 companies. Wei said that broadband will be a major growth driver for the firm. "Currently, the business contributes about 20 per cent to its overall revenue. Moving forward, especially when the LTE spectrum is awarded, we are looking at revenue contribution of more than 50 per cent in three to five years." REDtone is also banking on its new board of directors to push it to the next level. In July, it announced the appointments of Datuk Wira Syed Ali Syed Abbas Al Habshee as its deputy chairman and Datuk Ismail Osman as its senior executive director. "With the new board (members), I believe REDtone now has all the ingredients needed - the people, the technology, and the experience - to take itself to the next level and become one of the big boys in the telecommunications industry," said Ismail.

Wijaya Baru seeks partner for Indonesian venture

Wijaya Baru Global is in talk with Malaysian entities for a possible joint cultivation venture

Read more: Wijaya Baru seeks partner for Indonesian venture http://www.btimes.com.my/articles/iwbg2f/Article/#ixzz1bFUqR63k

Petaling Jaya: Wijaya Baru Global Bhd (WBG), which has clinched a deal to log and clear 80,000 hectare of land in Indonesia to make way for an oil palm plantation, will seek partners for the cultivation venture. Chief executive officer Datuk Faizal Abdullah said the company is in talk with Malaysian entities for a possible joint venture. Early this month, WBG signed two deals to buy Suffolk Pte Ltd (SPL) and Wealthgagte Pte Ltd (WPL) for US$40 million (RM124.4 million) each. SPL has a joint-venture deal with PT Trimegah Karya Utama, where it has been granted exclusive rights to extract and sell timber in the district of Jair, Regency of Boven Digoel, Province of Papua, Indonesia on 40,000ha. Similarly, WPL also has a joint-venture deal with PT Manunggal Sukses Mandiri where it will have rights to another 40,000ha of land adjacent to SPL's land. Timber activities can only happen after it receives an approval letter from Indonesia's Forestry Ministry. After issuing the approval letter, the National Land Authority will issue the rights to plant oil palm trees on the same land. In June this year, WGB appointed Datuk Che Abdullah@Rashidi Che Omar to its board. He has some 37 years of experience in the plantation industry. Faizal feels that his appointment will help steer the group in the right direction, in terms of roping in a partner and establishing WBG's expertise in oil palm. WBG, which has 20 years of experience in the timber business, expects to set up a joint venture that will see the plantation company holding a majority stake in it. Faizal said once WBG gains expertise in this field, it may consider venturing into oil palm cultivation on its own. However, he added that since Che Abdullah is a non-executive director at Sime Darby Plantations, WBG is unlikely to form a joint venture with Sime as it would be a conflict of interest. According to Faizal, the likely scenario could see WBG divide the land into few blocks of possibly 10,000ha each. "The land is huge ... from the north to south it is about 30km and from east to west, roughly 60km," he said. The entire clearing of the land has to be done within six years.

Parkway Pantai's international push

Singapore: Parkway Pantai Ltd, the healthcare group controlled by Khazanah Nasional Bhd, aims to triple the revenue contribution from its international operations to 33 per cent by expanding in Asia.

Read more: Parkway Pantai's international push http://www.btimes.com.my/articles/pawey/Article/#ixzz1bFSaBlkw

It is already one of the region's biggest healthcare group, operating more than 3,000 beds under 16 hospitals currently, and is in the process of adding another 2,300 beds in eight new hospitals from 2013 onwards. About nine per cent of its revenue in the first half of the year to June has come from international operations or businesses outside of Singapore and Malaysia. Group chief executive officer Dr Tan See Leng declined to say when it will achieve that 30 per cent target but added that it is keen to expand further into China and India. "We are also very excited with the huge expansion of the middle class in Indonesia. These are markets that you cannot ignore," he said at a briefing here on Monday. The briefing was done ahead of a topping-up ceremony for the Parkway Novena Hospital, the group's latest addition in Singapore, yesterday. Apart from three new hospitals in Malaysia, Parkway Pantai is also building five other hospitals in Singapore, Vietnam, China, India and the United Arab Emirates. The group's net profit for the first half of 2011 rose 18 per cent from a year ago to S$78.3 million (RM192.7 million). Revenue in the same period was S$621.2 million (RM1.53 billion), an 11 per cent gain from last year. In China, a 499-bed hospital is under construction in Pudong, Shanghai, and it is already looking for other sites. "We have been building alliances for six years. We are now quite comfortable to go in," Tan said. In India, it has a 425-bed hospital in a joint venture with the Apollo Group in Kolkata and a 450-bed facility is being built in Mumbai. This comes under a joint venture with Koncentric Investments Ltd and Dr Prakash Khubchandani. Parkway Pantai Chairman Datuk Mohammed Azlan Hashim de-clined to confirm or deny if the group is bidding for India's Ster-ling hospitals, which is based in Ahmedabad. India's Economic Times reported that Parkway Pantai has emerged as the favoured bidder for Sterling, which is controlled by the private equity group Actis. Azlan said the group continues to review all opportunities. He also declined to reveal when Integrated Healthcare Holdings Sdn Bhd (IHHSB), the parent of Parkway Pantai, will be listed. IHHSB is 70-per cent held by Khazanah, with Japan's Mitsui and Co owning the rest. In April, Khazanah chief Tan Sri Azman Mokhtar said the listing could happen in a year or two.

MBF in race against time on public share spread

Time is running out for MBF to comply with Bursa's public shareholding spread, even as Tan Sri Ninian Mogan Lourdenadin is busy snapping up shares in the open market.

Read more: MBF in race against time on public share spread http://www.btimes.com.my/articles/mbf18/Article/#ixzz1bFS5A8Eq

Kuala Lumpur: Time is running out for MBF Holdings Bhd to comply with Bursa Malaysia's public shareholding spread, even as its major shareholder, Tan Sri Ninian Mogan Lourdenadin, is busy snapping up shares in the open market, fuelling speculation that he will make a second attempt in as many years to take the company private. In July, the stock market requlator rejected an MBF application for more time to comply with the shareholding spread. MBF had asked for until year end to meet the requirement. The minimum public spread in a listed entity is 25 per cent. As it stands, MBF's public spread is only about 14 per cent. Mogan, however, isn't the only one buying MBF shares this year. Filings to the stock exchange showed that MBF's non-executive director Datuk Azizan Abdul Rahman had bought 160,000 MBF shares in the second half of this year to bring his shareholding in the company to 2.11 per cent. Azizan is the second largest shareholder in MBF. Mogan now owns 84.43 per cent in MBF, up from the 82.66 per cent he had on September 28. His stakes in MBF is now valued at more than RM380 million, based on the company's closing price yesterday.

Daily Unit Trust Prices 14-10-2011

Global brands to expand big in Malaysia

Singapore: Several international brands are looking at expanding their presence in Malaysia in a big way next year.

Read more: Global brands to expand big in Malaysia http://www.btimes.com.my/articles/jrsing/Article/#ixzz1ao3PJLjb

They include Daiso, a Japanese brand that sells everything for RM5, and an emerging Spanish fashion brand called Desigual. Daiso, a shop selling items for a nominal RM5 each, is looking at increasing its presence by ano-ther 10 stores from the present 12. "We are also looking at setting up a 40,000 sq ft warehouse somewhere between Kuala Lumpur and Malacca next year to house goods for the stores in Malaysia and Singapore," Daiso Industries Co Ltd president Hirotake Yano said when met at an inaugural Retail Global Conne-xion event at the Raffles City Convention recently. Daiso stores are currently avai-lable in Kuala Lumpur, Penang, Kota Kinabalu, Malacca, Johor Baru and Port Klang. On the investment for the warehouse and the 10 new stores, Yano said they were still under discussion. He said the outlook for the Malaysian and Singaporean business was positive but did not elaborate. Singapore has eight Daiso stores with the flagship store operating in CapitaMalls Asia's IMM mall in Jurong, Singapore. On whether the company can sustain last year's prices, given rising raw material costs, Yano said: "We take one thing at a time." The company sources its products from Indonesia, Thailand, Japan, Korea, China, Vietnam and Taiwan, he said. Meanwhile, Desigual - a Barcelona-based clothing brand which also produces accesso-ries and shoes - is in talks with several parties to bring the brand in a big way to Malaysia. Desigual chief executive Manel Adell said there is a store within a store in Kuala Lumpur launched two years ago. "This is how we test the market. The brand has been a hit and we are looking for a master franchise to bring the brand big into Malaysia." Adell said the company is in talks with several parties on the matter, but nothing has been finalised yet. He, however, said the first standalone store will be opened in Kuala Lumpur next year. "We went to Singapore in a small way too, by having a store within a store in a mall but now we are opening our fourth outlet," he said. Adell said the company does not compete with other successful Spanish brands such as Zara and MNG as their target markets are different. "They are very good references for us but that's all. They don't pose as competition," he said. For the Malaysian store, it will feature a mix of men's and women's clothings, he added.

MIER revises 2011 growth forecast to 4.6pc

MIER says although there was growth in the third quarter, the economy would be impacted by slowing activities in sectors like manufacturing.

Read more: MIER revises 2011 growth forecast to 4.6pc http://www.btimes.com.my/articles/rup13cc/Article/#ixzz1ao1sXAhq

Kuala Lumpur: The Malaysian Institute of Economic Research (MIER) has cut its 2011 economic growth forecast to 4.6 per cent, which is below the government's target, due to slower exports. It had initially expected the gross domestic product (GDP), a measure of the economy, to grow by 5.2 per cent. The official forecast is for GDP to grow by 5 to 5.5 per cent this year. Executive director Dr Zakariah Abdul Rashid said although there was growth in the third quarter, which spans from July to September, it would be impacted by slowing activities in sectors like manufacturing. "Further implementation of Economic Transformation Programme (ETP) projects and 2012 Budget handouts will boost domestic demand but unlikely to offset underperformance in net exports," he warned. For next year, the think tank has revised its GDP growth forecast to 5 per cent but Zakariah warned this would have to be reviewed with a "global economic outlook remaining fluid and increasingly worrying". He expects economic growth to moderate from the second half onwards arising from weaker exports. Exports grew by 4 per cent in the second quarter this year, down from 4.9 per cent in the first quarter. In the second quarter, all economic sectors with the exception of agriculture, registered slower year-on-year rates of expansion. MIER also expects the Consumer Price Index (CPI), which measures inflation, to moderate to 3.1 per cent in 2011, before trending lower to 2.7 per cent in 2012. This, said Zakariah, was based on a weaker economic outlook and lower global commodity prices ahead. It reckons that Bank Negara Malaysia would keep the Overnight Policy Rate at 3 per cent through 2012, to support growth. Banks use the OPR to set lending rates and keeping it low would stimulate economic activities.

Minor blips in earnings for Malaysia firms

Flood has forced Notion VTec, Eng Teknologi and Fraser & Neave Holdings to halt temporarily their operations in Thailand, but the extent of the damage has yet to be ascertained.

Read more: Minor blips in earnings for Malaysia firms http://www.btimes.com.my/articles/BKOKf/Article/#ixzz1adrqxrPB

Kuala Lumpur: Malaysian companies with operations in Thailand may face a blip in earnings in the current quarter due to the worst floods in well over half a century in the kingdom, analysts say. Thus far, Notion VTec Bhd, Eng Teknologi Bhd and Fraser and Neave Holdings Bhd have announced temporary closures of their respective facilities due to the floods . They said the flood had forced the halt of their operations, but the extent of the damage has yet to be ascertained. Bina Puri executive director Matthew Tee Kai Woon told Business Times that it is business as usual for the company, which has construction contracts worth more than RM50 million in Bangkok. "Despite the chaos, we have not stopped work and we do not think the situation will have any impact on our earnings," he said. Mercury Securities head of research Edmund Tham said here yesterday that the impact will be small as Thailand is not a significant earnings driver, contributing just under 10 per cent to some of the companies' earnings. "The floods have affected the supply chain for manufacturers and logistics firms with railroad and truck services being halted. "We would like to think the worst is over but there is another tropical storm coming, which may affect Bangkok, where most Malaysian companies are located," he said. Mercury Securities is maintaining its earnings forecast on Malaysian firms with businesses in Thailand. "We are more concerned about Europe and the US as it affects global trade," Tham told Business Times. Floodwaters have ravaged 60 of Thailand's 77 provinces over the past two months, forcing operations of over 500 factories, including those operated by Nidec Corp, Honda Motor Co and Canon Inc, being suspended, with some facing shutdowns for as long as three months. OSK Investment Bank, however, is reiterating its underweight stance on the technology sector pending affirmative indications of the quantum of damages suffered by the companies. "The situation prompts us to take a look at the hard-disk drive (HDD) component makers under our coverage, all of which have a presence in Thailand, to gauge the potential impact on the sector should the floods worsen. "In view of the weakness in the end-consumer demand for HDD amid rising demand for solid-state drives, the latest production woes are likely to aggravate the situation. Hence our cautious stance stays," the research house said. Subsequently, Maybank Research downgraded Notion VTEC, one of the HDD players which had to shut down, for the time being, its Thailand operations, to a "hold" from the "buy" recommendation previously. Maybank's 12-month price target for Notion VTEC is now RM1.50 a share. Affin Investment Bank head of research Andy Ong said any disruption in Thailand is temporary and will not be very severe to the business. "In Japan's case, it was a nuclear-tsunami thing. For Thailand, it is only flooding and when the water resides, business will be back to normal. "For technology firms, I don't think the impact would be so severe as demand has been slowing down due to weak global trade," he said.

1 year gold pattern by kitco

Market closed higher again today

Ananda Krishnan, Marshall, Maxis Comms under probe for Aircel deal

Written by Nadia S Hassan
Tuesday, 11 October 2011 12:45

KUALA LUMPUR: The Central Bureau of Investigation of India (CBI) has filed a First Information Report (FIR) commencing formal investigations in relation to the purchase of India’s Aircel Ltd by Maxis Communications Bhd (MCB) in 2006.

In a statement, MCB said it had been aware of the investigations by CBI for some time and has extended its full cooperation.

“Whilst the FIR has not been provided yet to MCB, the company understands that it is expressly named in the report, along with other nominated persons, and that it relates to allegations of coercion and corruption surrounding the Aircel purchase,” said MCB.

The FIR also named businessman T Ananda Krishnan, MCB’s major shareholder, and Maxis Bhd’s non-executive director Augustus Ralph Marshall. MCB is the major shareholder of locally-listed Maxis with a 70% stake, and holds 74% of Aircel.

According to reports out of India, the CBI had registered a case against India’s former telecoms minister Dayanidhi Maran, his brother Kalanidhi Maran, Ananda and Marshall among others on charges of criminal conspiracy under the Indian Penal Code (IPC) and Prevention of Corruption Act.

The CBI was quoted as saying that it had registered the case under section 120(b) of IPC read with 13(2) with 13(1)(d) and also section 7 and 12 of the Prevention and Corruption Act. Once the case was registered last Sunday, the CBI had subsequently conducted raids at the premises of the Maran brothers in Delhi and Chennai. It is unclear whether any raids were conducted at premises belonging to Ananda and Marshall.

MCB steadfastly denied any wrongdoing, stating that the acquisition of Aircel was a commercial, arms-length transaction between a willing-buyer and a willing-seller.

At the heart of the investigation is a complaint by Aircel founder C Sivansankaran, who alleged that Dayanidhi, who was telecoms minister between 2004 and 2007, had favoured MCB in the takeover of the Indian telco, which resulted in his exit. Sivasankaran had alleged that Aircel had not been awarded a 2G telecom licence until it was sold to MCB. It is alleged that Dayanidhi had delayed the application made by Aircel for the licence and spectrum, which placed pressure on Sivasankaran to sell.

Sivasankaran also alleged that in return, privately-owned Astro All Asia Networks Plc, where Ananda is a major shareholder, then acquired a stake in Sun Direct, which is majority-owned by Kalanidhi. Last year, Astro upped its stake in Sun Direct from 20% by another 15%.

However, it should be noted that in early October a three-member arbitration panel in Singapore had dismissed Sivasankaran’s charge that MCB had acted in bad faith by breaching an agreement to do an initial public offering of Aircel within three years of the former’s acquisition of the latter. The three-member panel had ordered Sivansankaran’s Siva Ventures Ltd (SVL) to pay US$7 million (RM21.91 million) to MCB as legal costs, according to reports.

MCB pointed out this recent decision in its statement, adding, “The company paid the asking price demanded by the seller, SVL.”

MCB had acquired its stake in Aircel back in January 2006 for US$800 million. In recent months, MCB had come under the spotlight for its investment in Aircel after reports concerning improprieties about the deal surfaced. MCB had stoically denied the allegations at the time as well, and had stated that as far as it was aware there was no pressure on SVL to sell its stake in Aircel.

“MCB will continue in its commitment to the Indian telecommunications market in which it has invested more than US$8 billion since it acquired Aircel to establish and develop a pan-Indian mobile telephony business, along the way building a subscriber base of more than 50 million customers. This investment includes US$2.5 billion invested in the 2010 Indian 3G/BWA spectrum auction and in respect of the deployment of 3G network over Aircel’s licence areas,” said MCB.

Following the publication of the Indian reports, Maxis also issued a statement to the local bourse saying, “The FIR does not have any impact on Maxis, the entity listed on Bursa Malaysia.”


This article appeared in The Edge Financial Daily, Ocotber 11, 2011.

Treasuries Fall, U.S. Stocks Little Changed

By Cordell Eddings and Michael P. Regan - Oct 12, 2011 5:59 AM GMT+0800

Treasuries fell, pushing 10-year yields to a one-month high, after the U.S. sold $32 billion in three-year notes and concern about Europe’s debt crisis eased. Most U.S. stocks advanced as commodity and industrial companies gained while telephone and utility shares fell.

The 10-year note’s yield climbed seven basis points to 2.15 percent at 4 p.m. New York time as trading resumed following the Columbus Day holiday. The Standard & Poor’s 500 Index climbed 0.1 percent after falling as much as 0.6 percent. The S&P GSCI Index of commodities rallied 0.9 percent after retreating as much as 1.3 percent. The euro strengthened 0.1 percent to $1.3648, recovering from a 0.6 percent slide.

U.S. equities rallied yesterday, sending the S&P 500 up 3.4 percent for its biggest gain since August, as France and Germany pledged to produce a plan to recapitalize banks struggling with losses fromgovernment bonds. Slovakia, the only country that hasn’t ratified the enhanced European bailout fund, failed to approve the package, setting up the need for a second vote. International inspectors said Greece will likely receive its next rescue loan in early November. Alcoa Inc. (AA)reported third- quarter results that trailed analysts’ estimates.

“With bonds closed yesterday, the market is catching up to where stocks were trading,” said Dan Greenhaus, chief global strategist at BTIG LLC in New York. “The idea that European leaders are finally wrapping their head around the issue provides less negative sentiment in the market.”
Treasury Auctions

U.S. three-year note yields climbed for a fifth day, rising three points to 0.52 percent. The notes sold today drew a yield of 0.544 percent, compared with the average forecast of 0.540 percent in a Bloomberg News survey of 11 of the Federal Reserve’s 22 primary dealers. The bid-to-cover ratio, which gauges demand by comparing total bids with the amount of debt offered, was 3.30, versus an average of 3.17 for the past 10 sales. The Fed will sell up to $9 billion tomorrow of Treasuries due in 2013 in a program to support the economy.

The S&P 500 yesterday capped its steepest rally over five sessions since March 2009, extending its rebound from a 13-month low on Oct. 3 to 8.7 percent.

“Investors are a little more confident,” Jonathan Vyorst, who helps oversee $2.2 billion at Albany, New York-based Paradigm Capital Management Inc., said in a telephone interview. “The selling had gotten too extreme. The rallies that we’ve seen were just people calming down a little bit. What happens now depends on corporate earnings and depends on headlines.”
Alcoa Earnings

Alcoa, the biggest U.S. aluminum producer, became the first company of the Dow to report results for the third quarter. Its shares climbed 2.1 percent in regular trading, then tumbled 4.8 percent at 5:08 New Yorktime after the earnings were released. Excluding restructuring costs, Alcoa’s earnings were about 14 cents a share. The average estimate of 15 analysts surveyed by Bloomberg was for 22 cents.

S&P 500 earnings, excluding financial companies, are forecast to have increased 14 percent for the third quarter, the smallest gain since the end of 2009, analysts’ estimates compiled by Bloomberg show.

Goldman Sachs Group Inc., whose shares have fallen more than 40 percent this year, may report its lowest quarterly profit since the 2008 financial crisis while Wells Fargo & Co. is headed for record earnings.
Bank Results

Third-quarter U.S. bank earnings, which kick off with JPMorgan Chase & Co. on Oct. 13, will show that investment- banking businesses such as bond trading and merger advice declined, while retail operations like mortgage lending prospered, according to analysts including Richard Staite at Atlantic Equities LLP in London.

The Morgan Stanley Cyclical Index of companies most-tied to economic growth added 1 percent today. Gauges of utility and telephone providers in the S&P 500 lost at least 1 percent. The Dow Jones Transportation Average, a proxy for the economy, gained 0.7 percent. Apple Inc. increased 3 percent to $400.29. Bank of America Corp. climbed 1.4 percent to $6.37. Caterpillar Inc. jumped 1.9 percent to $80.66.

About three stocks retreated for every two that advanced in the Stoxx Europe 600 Index, which slipped 0.3 percent amid uncertainty over Slovakia’s vote on the revised bailout fund. Europe’s regional index rallied 8.5 percent in four days through yesterday, the most since November 2008.

National Bank of Greece SA and EFG Eurobank Ergasias SA sank more than 16 percent to the lowest levels on record. ASML Holding NV and STMicroelectronics NV led semiconductor shares lower after analyst downgrades. Remy Cointreau SA, the maker of Remy Martin, advanced after Berenberg Bank recommended buying the shares.
Slovakia Vote

After U.S. and European markets closed, Slovak lawmakers failed to approve an overhaul of Europe’s bailout fund, toppling the government. Smer, the largest opposition party, which didn’t back the legislation today, will support the changes in a second vote, ensuring it will pass, party leader Robert Fico told reporters in the capital Bratislava.

Spanish banks including Banco Santander SA and Banco Bilbao Vizcaya Argentaria SA had their ratings cut by S&P, which cited “dimming” growth prospects and “heightened” market turbulence. European Commission President Jose Barroso said he’ll present proposals tomorrow on the recapitalization of banks as Europe’s leaders struggle to tackle the region’s debt crisis.
Greek Bonds

Greek 10-year bonds pared losses, with the 10-year yield up 15 basis points at 24.06 percent after climbing as much as 76 basis points. A European Union, International Monetary Fund and European Central Bank team of inspectors, known as the troika, said Greece has made important progress in fiscal consolidation, according to an e-mailed statement from the European Commission’s offices in Athens on completion of a review of the country’s economy. Once the Eurogroup and the IMF’s Executive Board have approved the conclusions of the fifth review, the next tranche of 8 billion euros will become available, most likely, in early November, the statement said.

Luxembourg’s Prime Minister Jean-Claude Juncker, who leads the group of euro-area finance ministers, said Greek bondholders may need to take a writedown of more than 60 percent on the nation’s debt. His spokesman, Guy Schuller, later said he meant that the so-called haircuts could exceed the 21 percent already agreed in July.

The Italian two-year note yield rose one basis points even as borrowing costs fell and demand climbed at a sale of 9.5 billion euros ($12.9 billion) of 74- and 367-day bills. Greece auctioned 1.3 billion euros of 186-day securities, while the Netherlands issued 2.7 billion euros of 2017 notes.
Euro, Pound

The euro gained for a second day versus the dollar after yesterday surging 2 percent, the most in 15 months. The 17- nation currency strengthened 0.2 percent against the yen after rallying 1.9 percent yesterday.

The pound fell 0.4 percent to $1.5611 after a report showed U.K. manufacturing slid more than economists forecast in August, adding to signs that the recovery continued to struggle in the third quarter. Factory output fell 0.3 percent from July, when it declined a revised 0.2 percent, the Office for National Statistics said today in London. The median forecast of 24 economists in a Bloomberg News survey was for manufacturing to fall 0.2 percent.

Corn and soybean futures posted their biggest gains in more than a year on signs that a plunge in prices last month is increasing demand for supplies from the U.S., the world’s largest grower and exporter.

The MSCI Emerging Markets Index climbed 1.2 percent, driving the benchmark index to its steepest five-day gain since 2009. The Hang Seng China Enterprise Index of Chinese companies traded in Hong Kong jumped 4.4 percent after the Chinese state investment fund bought shares in four banks. The Taiex Index surged 2.6 percent after a holiday in Taiwanyesterday, while South Korea’s Kospi Index climbed 1.6 percent to a three-week high. Russia’s Micex Index slid 1.2 percent after jumping 9.1 percent in the past three sessions.

To contact the reporters on this story: Cordell Eddings in New York atceddings@bloomberg.net; Michael P. Regan in New York at mregan12@bloomberg.net

To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net

More gas-fired power plants

Kuala Lumpur: Malaysia plans to call for bids by as early as the first quarter of next year to help build gas-fired power plants in Peninsular Malaysia.

Read more: More gas-fired power plants http://www.btimes.com.my/articles/ecbid-2/Article/#ixzz1aW26p873

Energy Commission (EC) chairman, Tan Sri Ahmad Tajuddin Ali said the country will need another 4,500 megawatts (MW) from 2017 and all of that will be fuelled by gas. The initial tender will be for a 750MW gas-fired plant. "The 750MW is part of the 4,500MW that will be needed in 2017 ... We hope through this process, we will get offers that are competitive, so we will be able to maintain at least reasonable tariffs to the consumers," Ahmad Tajuddin told newsmen after launching the International Energy Regulatory Forum 2011 in Kuala Lumpur yesterday. The EC is now preparing tender documents and is also in the midst of appointing consultants for the job. Apart from saying that the power plants will be in Peninsular Malaysia, Ahmad Tajuddin did not say where they would be located. Asked if there will be competitive bidding for the new jobs on offer, Ahmad Tajuddin said the bids will be based on an open competitive bidding process. This year alone, two major power plant contracts have been given out by the government to help secure the country's future energy requirements. The government recently awarded 1,000MW coal-fired power plant contracts to Tenaga Nasional Bhd and Malakoff Corp Bhd. These power plants are being built in Manjung, Perak and Tanjung Bin, Johor, and are slated to be commissioned in 2015 and 2016, respectively.

SC: Sime need not make general offer for E

It is the Securities Commission's findings that Sime Darby and Datuk Terry Tham are not parties acting in concert, and as such a mandatory offer obligation would not arise

Read more: SC: Sime need not make general offer for E&O http://www.btimes.com.my/articles/SIMEGO-2/Article/#ixzz1aW1jta5T

Kuala Lumpur: The Securities Commission (SC) has ruled that Sime Darby Bhd does not have to make a general offer (GO) for the shares in Eastern and Oriental Bhd (EandO), which it does not own. Trading in Sime and EandO shares were halted in the first half of trading yesterday to facilitate the announcement. Before noon, Sime issued a statement to Bursa Malaysia on the SC decision. Sime does not have to make a general offer for EandO shares as it is the SC's findings that Sime Darby and Datuk Terry Tham are not parties acting in concert, and as such a mandatory offer obligation would not arise, Sime said in a statement to the stock exchange. In the afternoon session of trade, Sime rose as much as 28 sen before ending the trading day 10 sen higher at RM8.50 a share. The anticipated selldown on EandO shares, however. did not materialise, as investors took a bet that a rival bid for the Penang property developer may emerge in the coming weeks. Last month, ECM Libra Financial Group Bhd had attempted to place two of its nominees on the board of EandO, but shareholders rejected the bid at the company's annual general meeting. ECM owns about 6.5 per cent of EandO, which has been in centre- stage in recent months following Sime's purchase of a 30 per cent stake in EandO for RM2.30 a share. Sime bought the shares at a 60 per cent premium to the open market value of the shares in a deal valued at RM766 million from Tham, Singapore's G.K. Goh Holdings Ltd and Tan Sri Wan Azmi Wan Hamzah. EandO shares closed unchanged at RM1.36whereby it rose to as high of RM1.40 a share yesterday. Meanwhile, in a separate statement, the SC said in the course of the review, parties involved in the transaction were interviewed and relevant documents procured. The review included an assessment of possible concert party relationships between and amongst the parties involved. Having analysed all the evidence gathered, it is the SC's finding that the acquisition of the 30 per cent equity interest in EandO by Sime had not given rise to a mandatory offer obligation under the Malaysian Code on Takeovers and Mergers 2010, the requlator said in a statement. The SC said the review was led by senior independent commission members Datuk Francis Tan and Datuk Gumuri Hussain.

SP Setia's Liew gets 'sweet' offer

Kuala Lumpur: Permodalan Nasional Bhd (PNB) wants Tan Sri Liew Kee Sin to remain at the helm of SP Setia Bhd, following its proposed takeover of the company.

Read more: SP Setia's Liew gets 'sweet' offer http://www.btimes.com.my/articles/mspetia/Article/#ixzz1aQaFyTJD

Analysts said if Liew remains as chief executive officer, there is a strong possibility the various funds with sizeable stakes in SP Setia may not accept the takeover offer and instead choose to remain as shareholders in the company. As at December 23 last year, the various funds, excluding the Employees' Provident Fund, owned close to 19 per cent of SP Setia while as of last Friday, the EPF holds a 14.95 per cent stake. The funds are not expecting better offers from rival bidders, considering the size of the takeover, which is said to be the biggest in more than two decades. PNB is offering shareholders RM3.90 a share, as well as 91 sen for every warrant they hold, after it raised its stake in SP Setia to 33.2 per cent last month, exceeding the 33 per cent threshold. In their first joint statement to Bursa Malaysia, PNB said it appreciated the strong branding of SP Setia, thanks to its entrepreneur-led management team. "Liew will continue to lead SP Setia as its CEO... the existing management team will also continue to manage the company," said PNB in the statement. The asset manager also said "it is committed, once markets stabilise, to maintain an appropriate shareholding spread with the capacity to attract not just local but also foreign institutional funds and retail participation". Liew, in the same statement, said he was "heartened" by the reassurance from PNB president Tan Sri Hamad Kama Piah at their meeting last Friday. The tycoon, who joined the SP Setia board in 1996, owns 11.26 per cent of the company and is widely recognised as the main driving force behind its transformation into one of the country's biggest property developers. TA Securities property analyst, Tan Kam Meng, said following PNB's assurance that it would not be involved in the day-to-day operations of SP Setia, it is now unlikely that Liew will accept the (RM3.90 a share) offer. "This should lend support to the share price as PNB is expected to continue buying SP Setia shares from the open market at any price below RM3.90 per share." PNB said its involvement in its investee companies is mainly through board representation, while the day-to-day operations are left to professional managers. Mercury Securities head of reseach, Edmund Tham, said the statement seems to indicate that Liew may not be seeking alternative bidders. He said since there is no update from AmInvestment Bank as the independent adviser, investors may opt to take up the offer or hold on to the shares. "The immediate concern for the public investors would be the liquidity of the shares, meeting the public spread requirement (at least 25 per cent) and the listing status." Liew, meanwhile, reiterated SP Setia board's advice to non-interested shareholders to wait for both PNB's offer document as well as the independent advice circular before deciding on their next move. When contacted, an SP Setia official said the company needs to see the whole process through before it can comment further.

A380 delay for MAS?

It is understood that the new management of MAS is considering the reconfiguration of its seats to offer a product that will reflect its new premium status.

Read more: A380 delay for MAS? http://www.btimes.com.my/articles/paj2/Article/#ixzz1aObKkld9

Kuala Lumpur: The delivery of Malaysia Airlines' first Airbus 380 jumbo jet may be delayed again, but this time it will not be due to manufacturing issues. It is understood that the new management of MAS is considering the reconfiguration of its seats to offer a product that will reflect its new premium status. It was reported in 2010 that MAS' A380s were configured for 508 seats. This is much higher than those offered by other premium airlines such as Qantas (450 seats) and Singapore Airlines (471 seats). According to the report, the MAS A380s are configured to have four classes - 420 Economy seats, 26 Premium Economy seats, 54 Business and eight First Class seats. Qantas, for example, seats 14 in the First Class, 72 in Business, 32 in Premium Economy and 332 in Economy. Seat plans are typically finalised two years before the delivery of the aircraft. Seats are fitted six months before delivery. Equipment such as seats and in-flight entertainment are buyer-furnished, which means that airline operators deal direct with the manufacturers of the equipment. Supplier-furnished equipment, such as the wiring in an aircraft, is done by the airframe manufacturers. With the first of the A380s due to arrive in the first half of 2012, it is understood that any reconfiguration work would lead to a delay in delivery. MAS has ordered six A380s. Alternatively, MAS could take delivery of the planes and re-configure it later, but such a move is seen as counter productive. "With less than five seat manufacturers worldwide and backlog issues due to a large number of deliveries, a delay appears inevitable," an industry source said. The Boeing 737-800s are also likely to have their seats reconfigured to become "more premium". The aircraft seats 16 Business Class and 144 Economy Class passengers now. "Singapore Airlines and Emirates offer private suites, and most premium carriers have flat beds now. MAS will have to come up with a better offering to compete really," Standard and Poor's aviation analyst Shukor Yusof told Business Times.

Gradual impact

The existing rate is not effective in curbing speculation and could jeopardise the ability of the low- and middle-income groups to buy houses, says Najib

Read more: Real property gains tax: Gradual impact http://www.btimes.com.my/articles/bgtrpgt3/Article/#ixzz1a7N85MmQ

RPGT is a tax on properties sold less than five years after they are bought. Only the profit from the sale of a property is subject to RPGT. It has been doubled to 10 per cent for the first two years and will remain at the previous level of 5 per cent in the third, fourth and fifth year. There will be no tax on gains after the fifth year. RPGT exemption on a residential property is given to both husband and wife on one residential property each, once in a lifetime. Yesterday, Prime Minister Datuk Seri Najib Razak in his 2012 Budget speech said that the existing rate of 5 per cent is not effective in curbing speculative activities and could jeopardise the ability of the low- and middle-income groups to buy houses. These changes, he said, are low enough not to affect genuine property owners and will curb speculative activities. Chairman of the Property Management, Valuation and Estate Agency Division of the Royal Institution of Surveyors Malaysia Adzman Shah Mohd Ariffin said that the move will deter future sales of property within two years of purchase. With prices stabilising and should they sell fast, they will not be able to make a killing. "But, for those who bought a property three years ago, the price appreciation would have been much higher than the 10 per cent RPGT imposed," Adzman said, adding that this category of buyers will continue to make a profit. According to him, properties can appreciate by 20 per cent or more once completed. Real Estate and Housing Developers' Association Malaysia president Datuk Seri Michael Yam welcomed the move. "The fact that there is no drastic change to the ruling on RPGT encourages long-term ownership of property which also helps the owner with capital appreciation and wealth creation as they will hold on to the property longer," said Yam. He added that the first two years are effectively a 100 per cent increase, thus it will help discourage short-term speculation. "It is a gentle/soft landing which will avoid a dip in the supply and demand of property," Yam told Business Times. "The increase in this instance is not unreasonable, given that there are no speculative activities in the entire country but only confined to pockets of urban areas like Kuala Lumpur and Penang. These pockets of activities are insignificant compared with the total supply and demand for housing in Malaysia," he added. However, real estate agent Rahim and Co's managing director Robert Ang said the 10 per cent increase is not an effective measure to try and curb speculation activities. "If you want to curb speculation, why not something higher?" he said.

Firefly jets to be absorbed into MAS fleet?

Firefly will cease all jet operations by year-end, according to sources.

Read more: Firefly jets to be absorbed into MAS fleet? http://www.btimes.com.my/articles/paj3/Article/#ixzz1a7JZ8ldO

It is understood its turboprop operations, which is what the airline started with, out of Subang, will continue until further notice. Firefly has a fleet of eight jet aircraft, six Boeing 737-800s and two Boeing 737-400s. The B737-800s were based in Kuala Lumpur and Kota Kinabalu while the B737-400s were in Johor Baru. It is understood that the jets will then be absorbed into Malaysia Airlines' fleet. Malaysia Airlines and Firefly have been conspicuously silent since the announcement of its plans to re-brand Firefly into a regional premium full-service carrier. This has not stopped the low-cost carrier, however, from winding down its jet operations, in some cases axing routes without prior notice. According to postings on Firefly's Facebook page, the airline has stopped flights from Johor Baru to Bandung and Johor Baru to Surabaya. "Dear (passenger), we would like to advise you that we have not stopped operations for all our East Malaysian routes out of Kuala Lumpur at present. Due to the recent business realignment exercise by our parent company, Malaysia Airlines, we have stopped sales for certain routes only. Flights from KL to Kuching are operating as usual at present," Firefly's social media team said in response to a query by a passenger yesterday. The budget carrier used to fly seven times a day from Kuala Lumpur to Kuching. Checks showed that flights are down to four now. Calls to Firefly's corporate communication team went unanswered. Disgruntled passengers have taken to Firefly's Facebook page to vent their frustrations, asking for refunds for cancelled flights and more information on future flight schedules.

The 2012 Budget Speech

The 2012 Budget Speech

Four Reasons the Fed Consistently Fails

Credit expansion has gone way past the point of diminishing returns...

THE FEDERAL RESERVE'S efforts to revive the economy are failing, writes Fred Sheehan for the Daily Reckoning.

The Fed is failing because of the four topics that never enter the mind of Federal Reserve Chairman Ben Bernanke: money, credit, leverage, and capital.

The productivity of capital is an important consideration, one which most people understand, in their own words. A bank does not lend money to a business that cannot earn its way to paying back the loan.

A potential borrower understands the banker's hurdle. Similarly, an investor buys shares of common stock in a company that will produce the most from the least. The higher the profits produced per share, the more the shares should be worth.

In other words, most folks understand the classic connection between risk and reward. And most folks also understand that merely borrowing more money, without putting that money to productive use, will never solve anything.

Ben and friends do not think this way. They believe that funneling more credit into the economy is a surefire means of "kick starting growth." But the facts say otherwise.

During the quantitative easing programs, the Fed's credit-from-the-heavens produced zero growth.

During the 1980s, the change (rise) in non-financial domestic debt divided by the change (rise) in nominal Gross Domestic Product was 2.2. That is, for every $2.20 borrowed, the United States produced $1.00 of additional goods and services (nominal). In the 1990s, debt was less efficient. The US borrowed $2.70 for every $1.00 of growth. More recently, between 2001 and 2008, this ratio soared all the way to $4.20 for every $1.00 of growth.

In other words, every incremental unit of credit has been less and less productive. But that's the only tool Bernanke has in his toolbox, so he just keeps using it. Since the Fed rolled out its various quantitative initiatives in early 2009, the ratio of debt-to-production has been 3.7:1 (through June, 2011). But, the increase in transfer payments (1-in-7 Americans now receive food stamps, Cash for Clunkers, shovel-ready bank bailouts) exceeds the rise in nominal GDP by a wide margin. Thus, as a measure of financial efficiency, the ratio is now meaningless.

The additional debt being manufactured is not producing any additional goods and services. The more Bernanke applies his senior thesis to the real economy, the less the economy is able to pay down old debt, much less manufacture additional goods and services to pay down the new debt.

The Fed has pegged short-term interest rates at zero; Operation Twist is an attempt to drive long-term rates to zero (or, close to it); the rise of incomes in the United States since 2008 has been zero; "real" GDP growth since QE1 has been less than zero; the FOMC is an absolute zero.

Physical elements tend to behave very strangely as they approach absolute zero (-273 Celsius).

Economic elements, as it turns out, are not so different. The move toward "absolute zero" along the yield curve is producing some very strange behavior — in both the financial markets and the economy at large.

The Authorities have lost control of the markets they have been manipulating. Desperate tactics, with untold unintended consequences, such as the Swiss National Bank doubling its monetary base last month, ensure more fanatical outbursts from the Fed, the ECB, and the Bank of Japan.

In this setting, gold fell more than $150 last week. Strange, isn't it? Other than remote islands, gold is the best bargain around.

Source: http://goldnews.bullionvault.com/fed_failure_100320115

Physical silver running out because its spot price does not reflect true investment demand

 By: Peter Cooper, Arabian Money

 Several readers of ArabianMoney have written to us over the past two weeks to express their astonishment at the current price of silver because demand where they live is so high that stocks have run out. Consider this comment: ‘I used to buy silver from a shop in Kobar in Saudi. From the last four weeks they said they ran out of silver. I cannot find anyone who sells silver in Saudi now. I asked them from where do they get their silver. They said the UAE. The problem is they only have 1kg bars…and I still cannot find any supplier.’ No stock Well don’t bother coming to the UAE. Our information is that the 1kg bars mentioned here and featured in a video on the website last month are all sold out too. We’ve also had feedback about low or no stock in Texas and Australia from big private bullion dealers there. Now what would normally happen when a commodity is in short supply is that the price would go up to encourage sellers to put some more into the market. That is presently not happening because the silver price is being artificially suppressed in the Comex futures market by the bullion banks acting on instructions from the Fed presumably, so why would you sell that silver cheaply if you happened to own some? But something has to give and it is the price of physical silver rather than the Comex price of the shiniest of metals. If you can find any silver these days you will pay quite a substantial premium over the spot price. But pay it because that is probably still a bargain compared to where silver prices are going. The truth is that silver is a rare metal, more rare than gold. Silver reserves have been estimatated at one-hundredth of gold reserves. Silver is after all consumed by industrial processes and reserves have dwindled over the years because the price has been kept so low for so long by market manipulation. Why is that? Silver price fixing This market manipulation dates back to the last silver boom of the late 70s and the spectacular $50 spike in the price in 1980. The central banks then saw suppression of the silver and gold price as a part of their war on inflation. They clearly lost that war but kept gold and silver prices down until this decade. Thirty-one years later and we are still not back to those silver prices despite a seven-fold increase in the global money supply. On that reckoning silver ought to be $350 an ounce, not $30 today. However, the snap back for silver prices now has the capacity to be sensational, and far beyond the mini-spike in the first few months of this year from $30 to almost $50 again. So those who go seeking out physical silver to buy at current prices are going to be very well rewarded and soon, not in 31 years! ArabianMoney continues to stick with silver as our top tip for 2011 and that means a big rebound in the price before the end of the year.

 Source: http://news.silverseek.com/SilverSeek/1317908668.php  

Alkhair eyes Malaysian bank

The Bahrain-based lender, Alkhair International Islamic Bank Bhd, is looking for a small, boutique bank

Read more: Alkhair eyes Malaysian bank http://www.btimes.com.my/articles/alkhair06/Article/#ixzz1a3qMhn9m

Kuala Lumpur: Alkhair International Islamic Bank Bhd, formerly known as Unicorn International Islamic Bank Bhd, is seeking Bank Negara Malaysia approval to start talks to buy a local bank. The Bahrain-based lender, which is the first foreign Islamic bank licensed to do business in foreign currency, currently does not have the licence to do any ringgit financing. "Initially, we targeted Bank Islam. However, the Dubai Group came and acquired it. "Today, we are not looking at a bank of that size. We are looking for a small, boutique bank that will provide the synergy for the strategic vision that we have for Malaysia," said its chief executive officer, Ikbal Daredia, after the launch of the bank's new name yesterday. He added that talks with the central bank are still in the preliminary stage and that it is eyeing a couple of potential targets. He declined to reveal their names. Ikbal also said the lender plans to increase its paid-up capital by US$50 million (RM159 million) to US$74 million by the end of this year. This was in line with the bank's vision to establish a business hub in Malaysia and to emerge as a major industry player. Meanwhile, Ikbal said the lender, which posted a net profit of US$1 million last year, is expected to post higher profits this year. The bank's new name and corporate branding was launched by the Raja Muda of Perak Raja Dr Nazrin Shah, who is also the financial ambassador of the Malaysia International Islamic Financial Centre initiative. The name "Alkhair" was chosen to reflect the group's broad geographical reach across the world's major Islamic banking markets, while at the same time emphasising its roots in the Arab world, said the company.

Watchdog wants probe into SP Setia land buy

The Minority Shareholder Watchdog Group says SP Setia would need shareholders' approval for the land purchase, which was done amid an offer by Pemodalan Nasional Bhd.

Read more: Watchdog wants probe into SP Setia land buy http://www.btimes.com.my/articles/spmswg06/Article/#ixzz1a3pxBKUm

Kuala Lumpur: The Minority Shareholder Watchdog Group (MSWG) has asked the Securities Commission to examine if SP Setia Bhd needs to get shareholders approval for a recent land buy. MSWG said under normal circumstances, SP Setia would not have to do so as the percentage ratios of the deal are below the 25 per cent limit and is a normal course of its property business. However, under the Malaysian Code on Take-Overs and Mergers 2010, MSWG said SP Setia would need shareholders' approval for the purchase, which was done at the same time as a mandatory general offer made by Pemodalan Nasional Bhd. "Section 38 of the code states that the board of directors should not undertake any action or transaction of material amount without obtaining the approval of the shareholders at a general meeting as then, the shareholders would be denied the opportunity to decide on the merits of any bona fide take-over offer," said MSWG chief executive officer Rita Benoy Bushon in a statement. "In addition, the percentage ratio as disclosed by SP Setia in its announcement for the proposed land transaction was 12.82 per cent. And, in the absence of any other information, we are of the view that this hits the materiality threshold of 10 per cent, as defined under paragraph 1.4 of Practice Note 38 of the Malaysian Code on Take-Overs and Mergers 2010." As at press time, SP Setia did not respond to media queries or clarify the matter with an announcement to Bursa Malaysia. Last week, PNB offered to buy the rest of SP Setia shares and warrants it does not own for RM3.90 and 91 sen each, respectively. SP Setia said the takeover offer "fundamentally undervalues" the company and will seek rival bidders. Five days later on Monday, the company announced its plan to buy a site in Semenyih for RM381 million. The purchase consideration for the Semenyih land was RM13 per sq ft, about 70 per cent higher than the price SP Setia paid for the nearby Beranang land just two months ago. The Semenyih land, which is adjacent to its current development, the Beranang Land, is to be developed into a township with an estimated gross development value of RM4 billion.

Govt revenue comes under the spotlight

Kuala Lumpur: The government's revenue has not kept pace with the growth of the economy, which is a worrying trend if another economic crisis comes around, said a leading economist.

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Prof Datuk Dr Mohamed Ariff, a professor of international economics at the INCEIF (International Centre for Education in Islamic Finance), said revenue has shrunk to 22 per cent of the gross domestic product (GDP) compared with previous years when it stood at 34 per cent. "There was also only a marginal increase in revenue by RM1.1 billion in 2010 compared to the previous year although the economy expanded by more than five per cent. Clearly something is wrong with the level of taxes," he said in an interview with the Business Times yesterday. However, with the general election around the corner, Ariff does not expect to see any increases in taxes. Meanwhile, the Goods and Services Tax (GST) will most likely be introduced only after that. To generate revenue in the 2012 Budget, he expects a cut in the individual tax rate to raise disposable income, which will help raise domestic consumption. Ariff also does not expect a cut in subsidies to be sufficient to bring down the budget deficit which stands at 5.4 per cent to the GDP significantly. "From what I see, the government may increase the real property gains tax which stands at 5 per cent to 30 per cent." The coffers have not been growing fast enough while Malaysia started reducing tax rates to attract foreign investors as well as trade agreements to liberalise tariffs. "Last year, the federal government debt stood at RM430 billion in the first quarter of 2010, up by RM23 billion from the first quarter in 2009 - that is an enormous increase in government debt," he said. Although the debt level at 53 per cent of the GDP is not that severe as that during the 1980s, it has been growing by 12 per cent per year on the average and in 2009 it spiked to 18 per cent per year. If not addressed, it can snowball and lead to dire situations faced by economies elsewhere. Malaysia was able to withstand the Asian financial crisis because of a long fiscal surplus period it enjoyed in the 1990s. "Fortunately, our debts now are locally sourced, but with the low revenue level, the government will face the strain to borrow further." The former executive director with the think-tank Malaysian Institute of Economic Research said Malaysia's monetary policy, which is handled by Bank Negara Malaysia, has done well. Banks are now well-capitalised, non-performing loans are also a non-issue while the growth of money supply is also impressive. "It's our fiscal side which is worrying and in serious problems. We have been in deficit since the crisis in 1998 and today we rank as one of the Asean economies with the longest deficit line." Rolling out RM68 billion stimulus package at the height of the global economies crisis has also added more fiscal strain on the government's debt level and economy. "We still lack the fiscal discipline in balancing the book (trimming the deficit). The problem is how to get it done when revenue is not growing. Do we cut expenditure or increase the tax revenue?" With the run-up to the general election, Ariff feared that the focus seemed to be providing sweeteners to the people, saying populist policies do not benefit economies in the long term. Policies should be focused on fixing the economy and getting more revenue while trimming the expenditure so that the economy continues to remain competitive in a global market. Ariff also commented that the recovery of the global economy will be slow and probably take three years for the US and Europe to get back on track, posing further challenges to small trading nations like Malaysia.

Intermediaries need SC nod for CEO appointments

Licensed intermediaries in the marketplace include stockbroking firms, fund management companies and investment banks.

Read more: Intermediaries need SC nod for CEO appointments http://www.btimes.com.my/articles/scscx-2/Article/#ixzz1a3p5j3bE

Kuala Lumpur: The Securities Commission (SC) has done away with a requirement for an annual renewal of licences for those carrying out capital market activities, but now it has to approve chief executive officers of licensed intermediaries. Licensed intermediaries in the marketplace include stockbroking firms, fund management companies and investment banks. The new requirements are part of the significant amendments to the Securities Commission Act 1993 (SCA) and Capital Markets and Services Act 2007 (CMSA), which came into force on October 3. The amendments to the CMSA also empower the regulator to obtain information and issue directions to market intermediaries to take appropriate measures to monitor, mitigate or manage systemic risk. In a statement, the SC said the amendments to the Acts were done to help promote the development of the capital market in line with global standards and the Capital Market Masterplan 2. The amendments also provide for the legal framework for the private retirement scheme (PRS) industry. The PRS framework will provide the public with options to make additional voluntary long-term contributions to supplement their retirement savings within a well-structured and regulated environment. "Under the PRS framework, providers of funds may, subject to the SC's approval, offer a range of funds from which individuals can choose to invest in based on their financial needs, goals and risk appetites," the SC said. The SC also said it expects a framework for the reporting of over-the-counter (OTC) derivative contracts to a trade repository to be established and be operational within the next two years. The amendments also introduced a framework to enable the Audit Oversight Board to grant recognition to foreign auditors who audit the financial statements of foreign corporations listed on Bursa Malaysia.