Published: Tuesday March 1, 2011
MYT 12:09:00 PM
KUALA LUMPUR: The global mobile worker population is predicted to grow to 1.19 billion or 35% of the worldwide workforce by 2013, thanks to technologies such as desktop virtualisation that has enabled people to work from anywhere and on any device.
Such growth is also due to the fact that mobility of workforce makes a huge difference to both individual and organisational productivity.
"Workshifting", the ability to move work to a more optimal place, be it an office, home or a coffee shop, is becoming the way of life for today's tech-savvy worker, says the IDC 2010 report on "Worldwide Mobile Worker Population".
"Enabled by technologies such as desktop virtualisation, workshifting gives employees on-demand access to their work on the move or at a location of their choice, any time of the day. This concept applies to shifting workloads and processes to more optimal people or locations as well," said IDC.
Meetings can now be moved from the conference room to the web and organisations can support real-time collaboration between dispersed co-workers or overseas customers and partners.
Going forward, IDC said a good workshifting policy can aid recruitment and improve employee productivity and satisfaction, which in turn translated into better workforce retention.
It can also support diversity by making it possible to recruit the best talent globally.
As part of its workshifting policy, organisations can incorporate a "Bring Your Own Mobile Device" policy that would allow employees to bring their own device to work and use it interchangeably and securely for work and personal tasks.
"Organisations benefit from reduced hardware and operating costs while employees enjoy the benefit of more flexible work arrangements and the ability to work on their own terms," it added.
Without the stress of the daily commute or "9 to 5" timelines at the back of their minds, employees are able to give their full attention to their work.
With an aging workforce, a more savvy generation of workers calling for more autonomy in their devices, and with the Malaysian government pushing for more productivity-driven growth, embracing a workshifting model would be a competitive differentiator and was essential for enterprise success, it added. - BERNAMA
http://biz.thestar.com.my/news/story.asp?file=/2011/3/1/business/20110301121702&sec=business
Monday, February 28, 2011
Tuesday, February 22, 2011
Sunday, February 20, 2011
Friday, February 18, 2011
Eye on Stock : Axiata
Saturday February 19, 2011
By K.M. LEE
AFTER retracing from the RM5.16 level on Feb 9 to a low of RM4.91 two days later during the recent brief correction process, Axiata Group Bhd rebounded in the wake of renewed bargain-hunting buying momentum, propelling the shares to a high of RM5.19 during intra-day session yesterday, also the best since May 2008.
Very clearly, a tentative bullish breakout has been carved out on the daily bar chart and according to the books, this type of positive development usually will open the doors for more scaling going forward. However, volumes must expand accordingly to sustain the trend.
Elsewhere, the daily slow-stochastic momentum index was firming. It's oscillator per cent K reversed up and climbed over the oscillator per cent D at the neutral zone to trigger a short-term buy on Thursday.
Likewise, after pulling back from the top to the mid-range, the 14-day relative strength index started inching up again on Monday to settle at around the 75 points level yesterday. The daily moving average convergence/divergence histogram expanded sharply against the daily signal line to retain the bullish note. It flashed a buy on Feb 8.
Analysis on the technical indicators, combined with the latest price action suggest Axiata Group shares are on the right track to challenge the historical peak of RM5.58, established on April 28, 2008. A decisive penetration of this heavy barrier will see the bulls continuing to explore the unknown territory until buying momentum fizzles out. Initial support is envisaged at the RM5-RM5.01 band. An additional floor is pegged at the RM4.90 level, which is the 21-day simple moving average.
● The comments above do not represent a recommendation to buy or sell.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/19/business/8088479&sec=business
By K.M. LEE
AFTER retracing from the RM5.16 level on Feb 9 to a low of RM4.91 two days later during the recent brief correction process, Axiata Group Bhd rebounded in the wake of renewed bargain-hunting buying momentum, propelling the shares to a high of RM5.19 during intra-day session yesterday, also the best since May 2008.
Very clearly, a tentative bullish breakout has been carved out on the daily bar chart and according to the books, this type of positive development usually will open the doors for more scaling going forward. However, volumes must expand accordingly to sustain the trend.
Elsewhere, the daily slow-stochastic momentum index was firming. It's oscillator per cent K reversed up and climbed over the oscillator per cent D at the neutral zone to trigger a short-term buy on Thursday.
Likewise, after pulling back from the top to the mid-range, the 14-day relative strength index started inching up again on Monday to settle at around the 75 points level yesterday. The daily moving average convergence/divergence histogram expanded sharply against the daily signal line to retain the bullish note. It flashed a buy on Feb 8.
Analysis on the technical indicators, combined with the latest price action suggest Axiata Group shares are on the right track to challenge the historical peak of RM5.58, established on April 28, 2008. A decisive penetration of this heavy barrier will see the bulls continuing to explore the unknown territory until buying momentum fizzles out. Initial support is envisaged at the RM5-RM5.01 band. An additional floor is pegged at the RM4.90 level, which is the 21-day simple moving average.
● The comments above do not represent a recommendation to buy or sell.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/19/business/8088479&sec=business
Inflation Putting the Price of House beyond the Reach of New Generation
Saturday February 19, 2011
By JAGDEV SINGH SIDHU
jagdev@thestar.com.my
FOR many, there are a few necessities in life. The basics include food on the table, clothes on one's back and a roof over one's head.
In large part, poverty reduction and programmes by the Government to ensure Malaysians get the minimum calorie intake, have been a success, and clothes have never really been an issue in this country. But in recent times, it has been a stretch for the average Malaysian to afford a home. Prices of property in the hot areas of the Klang Valley rose between 30% and 40% last year, and home price inflation now appears to be spreading elsewhere in the country.
Having a house has always been part of the Malaysian dream. For a long time prior to the boom years of the 1990s, home ownership had been affordable for most of the population. But the increase in the cost of living, led undoubtedly by price hikes of goods and sundries, together with escalating house prices, has made it harder for Malaysians to afford homes. This is especially tough for the younger Generation Y, whose wage increases have in no way kept pace with house price inflation over the past 10 years.
A rudimentary indicator of house affordability is the cost of a normal double-storey terrace house as a multiple of a person's annual salary. For a long time, the norm has been between 4 and 5 times, but the recent price rise has pushed that to 6 to 8 times. When added to the cost of living, that makes home ownership a distant dream for many of today's young. The solution for that problem, however, may be imminent as the Government is proposing that we have a National Housing Policy.
So far, national housing schemes have been for government employees. Quarters for teachers, the police and the armed forces have been constructed for decades, but the provision of homes for other Malaysians has been lacking so far. Much of that supply has been left to the private sector to fill, but with prices of homes skyrocketing, and likewise the price of land, the private sector has in recent years concentrated on where the money is high-end homes.
It appears now, though, that the Government will next tackle the building of homes for the private sector and the everyday Malaysians. There is good reason for that. Feeling disenfranchised in one's own country would not be good for political reasons, and getting down to addressing the issue of affordable housing is a must before the negative sentiments fester and overflow into a backlash.
Late last week, the Government announced that the National Housing Policy would address issues such as abandoned projects, the building of affordable housing and allowing people to rent homes at a reasonable cost.
At face value, the National Housing Policy appears to be a copy of the successful national housing scheme from elsewhere in this part of the world, namely Singapore's Housing Development Board (HDB).
Initially set up to ensure every Singaporean has a place to stay, HDB flats and apartments now house 80% of the republic's population. In the process of building such high-rise housing, HDB also created mini townships that catered to the basic needs of Singaporeans.
Some observers feel the Malaysian government could use quotas to ensure that residents in future national housing projects reflect the social makeup of Malaysia. “The government has a lot of land and greenfield areas which could be developed,'' says DTZ Nawawi Tie Leung executive director Brian Koh. “That should be developed on a joint-ventures basis with a private developer.''
Koh also suggest developers get a slice of the property being built for affordable housing as a sweetener for their own development plans.
Although there is a requirement for developers to include low-cost housing components in their projects, this is hardly adhered to these days. The absence of large-scale townships makes it uneconomical to comply with this ruling because most of today's development projects are on much smaller plots of land.
News of a housing policy for all would go a long way in addressing the concerns of home ownership, but such a move would not be sufficient if it only caters for the low-income segment. Years of urban migration has seen population of towns swell, and the high prices of homes in urban areas make it imperative for the government to also deal with medium-cost houses and property for the middle-class and the upper middle-class.
Unlike in Singapore, land matters in Malaysia falls under the jurisdiction of state governments. Therefore, for the proposed National Housing Policy to succeed, especially in the Klang Valley, the Federal Government and the state governments will have to work in unison to build such homes. Shows of political brinkmanship would not serve any party as housing is a matter that deeply affects all Malaysians.
“In this case, everybody has to work together,'' says AmResearch senior economist Manokaran Mottain.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/19/business/8096503&sec=business
By JAGDEV SINGH SIDHU
jagdev@thestar.com.my
FOR many, there are a few necessities in life. The basics include food on the table, clothes on one's back and a roof over one's head.
In large part, poverty reduction and programmes by the Government to ensure Malaysians get the minimum calorie intake, have been a success, and clothes have never really been an issue in this country. But in recent times, it has been a stretch for the average Malaysian to afford a home. Prices of property in the hot areas of the Klang Valley rose between 30% and 40% last year, and home price inflation now appears to be spreading elsewhere in the country.
Having a house has always been part of the Malaysian dream. For a long time prior to the boom years of the 1990s, home ownership had been affordable for most of the population. But the increase in the cost of living, led undoubtedly by price hikes of goods and sundries, together with escalating house prices, has made it harder for Malaysians to afford homes. This is especially tough for the younger Generation Y, whose wage increases have in no way kept pace with house price inflation over the past 10 years.
A rudimentary indicator of house affordability is the cost of a normal double-storey terrace house as a multiple of a person's annual salary. For a long time, the norm has been between 4 and 5 times, but the recent price rise has pushed that to 6 to 8 times. When added to the cost of living, that makes home ownership a distant dream for many of today's young. The solution for that problem, however, may be imminent as the Government is proposing that we have a National Housing Policy.
So far, national housing schemes have been for government employees. Quarters for teachers, the police and the armed forces have been constructed for decades, but the provision of homes for other Malaysians has been lacking so far. Much of that supply has been left to the private sector to fill, but with prices of homes skyrocketing, and likewise the price of land, the private sector has in recent years concentrated on where the money is high-end homes.
It appears now, though, that the Government will next tackle the building of homes for the private sector and the everyday Malaysians. There is good reason for that. Feeling disenfranchised in one's own country would not be good for political reasons, and getting down to addressing the issue of affordable housing is a must before the negative sentiments fester and overflow into a backlash.
Late last week, the Government announced that the National Housing Policy would address issues such as abandoned projects, the building of affordable housing and allowing people to rent homes at a reasonable cost.
At face value, the National Housing Policy appears to be a copy of the successful national housing scheme from elsewhere in this part of the world, namely Singapore's Housing Development Board (HDB).
Initially set up to ensure every Singaporean has a place to stay, HDB flats and apartments now house 80% of the republic's population. In the process of building such high-rise housing, HDB also created mini townships that catered to the basic needs of Singaporeans.
Some observers feel the Malaysian government could use quotas to ensure that residents in future national housing projects reflect the social makeup of Malaysia. “The government has a lot of land and greenfield areas which could be developed,'' says DTZ Nawawi Tie Leung executive director Brian Koh. “That should be developed on a joint-ventures basis with a private developer.''
Koh also suggest developers get a slice of the property being built for affordable housing as a sweetener for their own development plans.
Although there is a requirement for developers to include low-cost housing components in their projects, this is hardly adhered to these days. The absence of large-scale townships makes it uneconomical to comply with this ruling because most of today's development projects are on much smaller plots of land.
News of a housing policy for all would go a long way in addressing the concerns of home ownership, but such a move would not be sufficient if it only caters for the low-income segment. Years of urban migration has seen population of towns swell, and the high prices of homes in urban areas make it imperative for the government to also deal with medium-cost houses and property for the middle-class and the upper middle-class.
Unlike in Singapore, land matters in Malaysia falls under the jurisdiction of state governments. Therefore, for the proposed National Housing Policy to succeed, especially in the Klang Valley, the Federal Government and the state governments will have to work in unison to build such homes. Shows of political brinkmanship would not serve any party as housing is a matter that deeply affects all Malaysians.
“In this case, everybody has to work together,'' says AmResearch senior economist Manokaran Mottain.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/19/business/8096503&sec=business
Better Than Expected Growth of 7.2%
Saturday February 19, 2011
By JAGDEV SINGH SIDHU
jagdev@hestar.com.my
KUALA LUMPUR: Growth of the Malaysian economy in 2010 beat official expectations as the economy expanded by 7.2% compared with the official projection of 7%. The economy contracted by 1.7% in 2009.
Much of the growth for the year was provided by the two largest segments of the economy services and manufacturing which grew by 6.8% and 11.4% in 2010.
The construction sector, which is universally acknowledged to have the deepest linkages within the economy, expanded by 5.2% last year compared with 5.8% in 2009.
Spending by households and businesses also drove private consumption up steeply to report a growth rate of 5.3% compared with 1.2% before.
“Going forward, the global economic recovery is expected to remain uneven across the different regions,” Bank Negara said in a statement.
“While short-term prospects for the advanced economies improved recently, uncertainties remain over weak fiscal positions, high unemployment and constrained lending conditions.”
It said the growth outlook for Asia, however, remained favourable but regional economies were confronted with the challenges of rising inflationary pressures, particularly from high commodity and fuel prices, and the large and volatile capital flows.
“The pace of growth of the Malaysian economy will be affected by the environment of moderating external demand,'' it said.
Bank Negara said growth would, nevertheless, be supported by continued expansion in domestic demand and private consumption spending would continue to benefit from the favourable labour market conditions, firm commodity prices and access to financing.
“The roll-out of construction and infrastructure activities and the implementation of the economic transformation programme by the Government are likely to provide significant support to the growth momentum in private investment,'' it said.
Bank Islam chief economist Azrul Azwar Ahmad Tajudin expects the pace of moderation of the economy as shown from the second quarter onward to continue until the second half of this year.
He said the higher base effect, the inventory restocking which boosted numbers in the first half of last year and the projected sluggishness of the global economy, austerity measures in Europe and cooling measures by China would be a drag on growth numbers.
AmResearch senior economist Manokaran Mottain, however, feels the slower numbers would relieve the central bank from any pressure to raise interest rates.
For the fourth quarter, the economy expanded by 4.8% as higher private and public sector spending contributed to the expansion in domestic demand but the economy was hampered by a slowdown in external trade.
Domestic demand expanded by 5.7% in the fourth quarter compared with 5% in the third quarter, due mostly to the strong expansion in private consumption and capital spending.
Private consumption grew by 6.5% (third quarter: 7.1%) supported by a favourable labour market, positive consumer confidence and higher income levels. Public consumption fell by 0.3% (third quarter: -10.2%) as the Government spent less on supplies and services.
Gross fixed capital formation increased by 9.2% in the fourth quarter (third quarter: 9.8%) driven by both public and private capital spending.
“Private sector capital spending was led by the expansion in the production of domestic-oriented industries amid high levels of capacity utilisation. Public sector capital investment rose as a result of higher development expenditure mainly in the education and transportation sectors,'' Bank Negara said.
During the fourth quarter, the services and construction sectors registered higher growth rates than the third quarter while the growth rate of manufacturing slowed.
The agriculture and mining sectors contracted in the fourth quarter compared with the third.
Bank Negara said gross inflows of foreign direct investment for the final quarter of last year were higher at RM11.8bil (third quarter: +RM8.5bil) as more money poured into the capital markets.
On a net basis, which is after adjusting for gross outflows due to repayment of inter-company loans, net FDI increased to RM8.3bil (third: +RM4.4bil) as FDI was channelled mainly into the services, manufacturing and mining sectors.
The central bank said investments in the services sector were primarily undertaken by companies in the finance, insurance and business services, as well as wholesale and retail trade sub-sectors.
In the manufacturing sector, the FDI was channelled into the electrical and electronics as well as petroleum-related industries.
Malaysians invested less money abroad in the fourth quarter as the net outflow was RM3.2bil (third quarter: -RM5.4bil) due to lower net extensions of inter-company loans to subsidiaries abroad.
Bank Negara said investments were mainly in the services sector, particularly in the finance, insurance and business services, and wholesale and retail trade sub-sectors and there were also large investments abroad in the oil and gas and the agriculture sectors.
Portfolio investment registered a smaller net inflow of RM2.8bil in the fourth quarter (third quarter: +RM9.8bil) as foreign investors sold off their shares and bond holdings in the country, particularly in November, in reaction to sovereign debt concerns in the eurozone.
“Nevertheless, steady growth in the domestic economy has continued to attract inflows of foreign funds into the domestic equity and bond markets,'' it added.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/19/business/8098176&sec=business
By JAGDEV SINGH SIDHU
jagdev@hestar.com.my
KUALA LUMPUR: Growth of the Malaysian economy in 2010 beat official expectations as the economy expanded by 7.2% compared with the official projection of 7%. The economy contracted by 1.7% in 2009.
Much of the growth for the year was provided by the two largest segments of the economy services and manufacturing which grew by 6.8% and 11.4% in 2010.
The construction sector, which is universally acknowledged to have the deepest linkages within the economy, expanded by 5.2% last year compared with 5.8% in 2009.
Spending by households and businesses also drove private consumption up steeply to report a growth rate of 5.3% compared with 1.2% before.
“Going forward, the global economic recovery is expected to remain uneven across the different regions,” Bank Negara said in a statement.
“While short-term prospects for the advanced economies improved recently, uncertainties remain over weak fiscal positions, high unemployment and constrained lending conditions.”
It said the growth outlook for Asia, however, remained favourable but regional economies were confronted with the challenges of rising inflationary pressures, particularly from high commodity and fuel prices, and the large and volatile capital flows.
“The pace of growth of the Malaysian economy will be affected by the environment of moderating external demand,'' it said.
Bank Negara said growth would, nevertheless, be supported by continued expansion in domestic demand and private consumption spending would continue to benefit from the favourable labour market conditions, firm commodity prices and access to financing.
“The roll-out of construction and infrastructure activities and the implementation of the economic transformation programme by the Government are likely to provide significant support to the growth momentum in private investment,'' it said.
Bank Islam chief economist Azrul Azwar Ahmad Tajudin expects the pace of moderation of the economy as shown from the second quarter onward to continue until the second half of this year.
He said the higher base effect, the inventory restocking which boosted numbers in the first half of last year and the projected sluggishness of the global economy, austerity measures in Europe and cooling measures by China would be a drag on growth numbers.
AmResearch senior economist Manokaran Mottain, however, feels the slower numbers would relieve the central bank from any pressure to raise interest rates.
For the fourth quarter, the economy expanded by 4.8% as higher private and public sector spending contributed to the expansion in domestic demand but the economy was hampered by a slowdown in external trade.
Domestic demand expanded by 5.7% in the fourth quarter compared with 5% in the third quarter, due mostly to the strong expansion in private consumption and capital spending.
Private consumption grew by 6.5% (third quarter: 7.1%) supported by a favourable labour market, positive consumer confidence and higher income levels. Public consumption fell by 0.3% (third quarter: -10.2%) as the Government spent less on supplies and services.
Gross fixed capital formation increased by 9.2% in the fourth quarter (third quarter: 9.8%) driven by both public and private capital spending.
“Private sector capital spending was led by the expansion in the production of domestic-oriented industries amid high levels of capacity utilisation. Public sector capital investment rose as a result of higher development expenditure mainly in the education and transportation sectors,'' Bank Negara said.
During the fourth quarter, the services and construction sectors registered higher growth rates than the third quarter while the growth rate of manufacturing slowed.
The agriculture and mining sectors contracted in the fourth quarter compared with the third.
Bank Negara said gross inflows of foreign direct investment for the final quarter of last year were higher at RM11.8bil (third quarter: +RM8.5bil) as more money poured into the capital markets.
On a net basis, which is after adjusting for gross outflows due to repayment of inter-company loans, net FDI increased to RM8.3bil (third: +RM4.4bil) as FDI was channelled mainly into the services, manufacturing and mining sectors.
The central bank said investments in the services sector were primarily undertaken by companies in the finance, insurance and business services, as well as wholesale and retail trade sub-sectors.
In the manufacturing sector, the FDI was channelled into the electrical and electronics as well as petroleum-related industries.
Malaysians invested less money abroad in the fourth quarter as the net outflow was RM3.2bil (third quarter: -RM5.4bil) due to lower net extensions of inter-company loans to subsidiaries abroad.
Bank Negara said investments were mainly in the services sector, particularly in the finance, insurance and business services, and wholesale and retail trade sub-sectors and there were also large investments abroad in the oil and gas and the agriculture sectors.
Portfolio investment registered a smaller net inflow of RM2.8bil in the fourth quarter (third quarter: +RM9.8bil) as foreign investors sold off their shares and bond holdings in the country, particularly in November, in reaction to sovereign debt concerns in the eurozone.
“Nevertheless, steady growth in the domestic economy has continued to attract inflows of foreign funds into the domestic equity and bond markets,'' it added.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/19/business/8098176&sec=business
Thursday, February 17, 2011
Economists: Little Impact on M’sia from Food Price Hike
Friday February 18, 2011
By DANNY YAP
danny@thestar.com.my
PETALING JAYA: Economists said there is no cause for alarm regarding the spiralling food prices in the domestic market.
The issue of rising food prices was raised when World Bank president Robert Zoellick said last Tuesday that food prices globally were at “dangerous levels” and could lead to countries practising trade curbs.
He said in the latest edition of the World Bank Report: Food Price Watch, the food price index (FPI) had climbed 15% between last October and January. Last month's FPI was 29% higher than a year earlier.
The report said global food prices were just 3% below the all-time high in 2008.
Zoellick said: “It is important that governments increase their focus on food security and there is no room for complacency.”
However, he conceded that rising food prices would impact poorer nations more severely, especially developing countries.
In Malaysia, RAM Holdings group chief economist Dr Yeah Kim Leng said the impact of rising food prices to consumers would not be too significant.
“We don't see rising food prices to be a major concern as the country's economy is overall better than many other developing countries,” he said, adding that the Government had put in place various mechanisms such as price control on essential items, especially on food products and subsidies to alleviate poverty.
However, Yeah said there might be sharp spikes in food prices at certain times and this could impact Malaysian consumers severely when suppliers hoarded food items in anticipation of a hike in prices of selected food products to make a quick gain.
He said Malaysia was not at a dangerous level of spiralling food prices impacting local consumers severely as was the case in some developing countries.
However, he concurred with Zoellick that the spiraling food prices globally was expected to impact countries facing abject poverty more severely.
According to World Bank, 44 million people worldwide have been pushed into extreme poverty since last June by high food costs.
AmResearch senior economist Manokaran Mottain said while he agreed that there was no cause for alarm in Malaysia, there was a need to maintain vigilance on food prices.
“We are in a period of great volatility of commodities, raw materials and essential food items,” he said, adding that while Malaysia economy remained stable and food prices remained reasonable, there was a need for the Government to constantly monitor the situation.
Manokaran said the current rally on commodities was unsustainable and that a correction was on course.
On rising food prices, he said: “So long as basic food items rise incrementally over time, we should not have a major problem.”
Manokaran said in Malaysia, generally there was no shortage of supply for most essential food items as well as commodities.
“It's more the case of speculators trying to make a fast buck from consumers that create market distortions,” he noted.
Another local economist said the current global food hike had not resulted in most countries developed or developing taking severe measures such as trade curbs.
“We're not seeing trade curbs taking place in a big way for now but this does not mean that it will not happen,” he said, adding that such protective measures might be an option taken by selective countries that experience food shortage at critical levels.
The International Trade and Industry Ministry was unavailable for comment at press time.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/18/business/8089671&sec=business
By DANNY YAP
danny@thestar.com.my
PETALING JAYA: Economists said there is no cause for alarm regarding the spiralling food prices in the domestic market.
The issue of rising food prices was raised when World Bank president Robert Zoellick said last Tuesday that food prices globally were at “dangerous levels” and could lead to countries practising trade curbs.
He said in the latest edition of the World Bank Report: Food Price Watch, the food price index (FPI) had climbed 15% between last October and January. Last month's FPI was 29% higher than a year earlier.
The report said global food prices were just 3% below the all-time high in 2008.
Zoellick said: “It is important that governments increase their focus on food security and there is no room for complacency.”
However, he conceded that rising food prices would impact poorer nations more severely, especially developing countries.
In Malaysia, RAM Holdings group chief economist Dr Yeah Kim Leng said the impact of rising food prices to consumers would not be too significant.
“We don't see rising food prices to be a major concern as the country's economy is overall better than many other developing countries,” he said, adding that the Government had put in place various mechanisms such as price control on essential items, especially on food products and subsidies to alleviate poverty.
However, Yeah said there might be sharp spikes in food prices at certain times and this could impact Malaysian consumers severely when suppliers hoarded food items in anticipation of a hike in prices of selected food products to make a quick gain.
He said Malaysia was not at a dangerous level of spiralling food prices impacting local consumers severely as was the case in some developing countries.
However, he concurred with Zoellick that the spiraling food prices globally was expected to impact countries facing abject poverty more severely.
According to World Bank, 44 million people worldwide have been pushed into extreme poverty since last June by high food costs.
AmResearch senior economist Manokaran Mottain said while he agreed that there was no cause for alarm in Malaysia, there was a need to maintain vigilance on food prices.
“We are in a period of great volatility of commodities, raw materials and essential food items,” he said, adding that while Malaysia economy remained stable and food prices remained reasonable, there was a need for the Government to constantly monitor the situation.
Manokaran said the current rally on commodities was unsustainable and that a correction was on course.
On rising food prices, he said: “So long as basic food items rise incrementally over time, we should not have a major problem.”
Manokaran said in Malaysia, generally there was no shortage of supply for most essential food items as well as commodities.
“It's more the case of speculators trying to make a fast buck from consumers that create market distortions,” he noted.
Another local economist said the current global food hike had not resulted in most countries developed or developing taking severe measures such as trade curbs.
“We're not seeing trade curbs taking place in a big way for now but this does not mean that it will not happen,” he said, adding that such protective measures might be an option taken by selective countries that experience food shortage at critical levels.
The International Trade and Industry Ministry was unavailable for comment at press time.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/18/business/8089671&sec=business
Inflation Causes Funds to Shift
Friday February 18, 2011
By YVONNE TAN
yvonne@thestar.com.my
Foreign funds moving money from emerging markets to more matured ones
PETALING JAYA: Most emerging equity markets in Asia have been experiencing sell-downs in recent weeks with foreign funds shifting their money to the more matured markets even as inflation in the region becomes more of a concern.
“Funds will continue to flow out from this region largely on the theme on inflation, the worst of which is not over,” Jupiter Securities research head Pong Teng Siew said.
Extreme weather conditions in most parts of food-producing countries such as Russia, Latin America, Australia and China have kept food grain prices at historical high levels globally, pushing inflation levels up. And emerging markets especially those in Asia, where grains are consumed the most, have been most affected.
Low income nations like India and the Phillipines are the worst-hit as it means that the people there now have to spend a huge amount of their limited income on food, leaving little else to buy other things which can help spur economic growth.
Selling of shares in the emerging markets of India and the Philippines was heavy in the whole of last week, compared to their generally low trading volumes with an estimated outflow of US$178mil and US$48mil respectively, based on information compiled by MIDF Research.
Foreign funds turned net sellers in both nations in early January.
In Malaysia, inflation is still relatively low (at 2.2% in December).
However, that has not stopped foreign funds from cashing out of the market following healthy gains last year.
In Malaysia, according to data compiled by Maybank Research, foreign funds had turned net sellers last week, selling off RM1.18bil worth of shares.
OSK Research head Chris Eng said funds were taking profit following the stellar gains last year made by most emerging markets. In the case of the Malaysian market, it yielded a 31% return in US dollar terms.
The profit-taking is exacerbated by a host of factors including the fact that developed economies were starting to look more attractive, having been under-invested since the global financial crisis of 2008/09 and given their path, albeit a rocky one, to recovery now.
“A flight of funds from emerging markets back to developed markets is happening,” Eng said.
Recent Bursa Malaysia data indicates that foreign investor participation in the local stock market dropped as early as last month as foreign buyers' net purchases took a dip. Net purchases of local stocks by foreigners fell to RM100mil in January, a steep fall from RM2.6bil in December.
Net purchases stood at more than RM4bil at the peak in September last year, the data showed.
Still, MIDF Research does not think that this is a case of foreigners cashing out of Malaysia en bloc.
“Amid the selling, some foreign investors have been picking up good stocks at depressed prices,” MIDF said in its report issued on Feb 14.
The 30-stock benchmark FTSE Bursa Malaysia KLCI index has risen 3.23 points or 0.2% so far this week after losing a total of 45.07 points, or 2.93%, in the last three trading weeks of last week, wiping out all its year-to-date gains.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/18/business/8087457&sec=business
By YVONNE TAN
yvonne@thestar.com.my
Foreign funds moving money from emerging markets to more matured ones
PETALING JAYA: Most emerging equity markets in Asia have been experiencing sell-downs in recent weeks with foreign funds shifting their money to the more matured markets even as inflation in the region becomes more of a concern.
“Funds will continue to flow out from this region largely on the theme on inflation, the worst of which is not over,” Jupiter Securities research head Pong Teng Siew said.
Extreme weather conditions in most parts of food-producing countries such as Russia, Latin America, Australia and China have kept food grain prices at historical high levels globally, pushing inflation levels up. And emerging markets especially those in Asia, where grains are consumed the most, have been most affected.
Low income nations like India and the Phillipines are the worst-hit as it means that the people there now have to spend a huge amount of their limited income on food, leaving little else to buy other things which can help spur economic growth.
Selling of shares in the emerging markets of India and the Philippines was heavy in the whole of last week, compared to their generally low trading volumes with an estimated outflow of US$178mil and US$48mil respectively, based on information compiled by MIDF Research.
Foreign funds turned net sellers in both nations in early January.
In Malaysia, inflation is still relatively low (at 2.2% in December).
However, that has not stopped foreign funds from cashing out of the market following healthy gains last year.
In Malaysia, according to data compiled by Maybank Research, foreign funds had turned net sellers last week, selling off RM1.18bil worth of shares.
OSK Research head Chris Eng said funds were taking profit following the stellar gains last year made by most emerging markets. In the case of the Malaysian market, it yielded a 31% return in US dollar terms.
The profit-taking is exacerbated by a host of factors including the fact that developed economies were starting to look more attractive, having been under-invested since the global financial crisis of 2008/09 and given their path, albeit a rocky one, to recovery now.
“A flight of funds from emerging markets back to developed markets is happening,” Eng said.
Recent Bursa Malaysia data indicates that foreign investor participation in the local stock market dropped as early as last month as foreign buyers' net purchases took a dip. Net purchases of local stocks by foreigners fell to RM100mil in January, a steep fall from RM2.6bil in December.
Net purchases stood at more than RM4bil at the peak in September last year, the data showed.
Still, MIDF Research does not think that this is a case of foreigners cashing out of Malaysia en bloc.
“Amid the selling, some foreign investors have been picking up good stocks at depressed prices,” MIDF said in its report issued on Feb 14.
The 30-stock benchmark FTSE Bursa Malaysia KLCI index has risen 3.23 points or 0.2% so far this week after losing a total of 45.07 points, or 2.93%, in the last three trading weeks of last week, wiping out all its year-to-date gains.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/18/business/8087457&sec=business
Wednesday, February 16, 2011
GDP growth in 2010 exceeded 6%, hints PM
Published: Thursday February 17, 2011 MYT 11:11:00 AM
Updated: Thursday February 17, 2011 MYT 1:07:01 PM
KUALA LUMPUR: Prime Minister Datuk Seri Najib Tun Razak hinted Thursday that the country's Gross Domestic Product (GDP) growth for 2010 may exceed 6%.
The official GDP figures will be announced Friday, he told reporters after officiating a programme to enhance Dewan Negara's activities, at Parliament House here.
Asked if Malaysia was capable of recording double-digit growth in future, Najib, who is also Finance Minister, said: "No, we cannot. Because you must remember that the Malaysian economy is much bigger than it was 20 years ago.
"As we approach to become a matured economy, we cannot get double-digit (growth) but we can get reasonably high. And, I think 6% is considered a very creditable performance.
"We have to be realistic. No developed nation can achieve double-digit."
He also said the country was on track to achieve Vision 2020. - Bernama
http://thestar.com.my/news/story.asp?file=/2011/2/17/nation/20110217112102&sec=nation
Updated: Thursday February 17, 2011 MYT 1:07:01 PM
KUALA LUMPUR: Prime Minister Datuk Seri Najib Tun Razak hinted Thursday that the country's Gross Domestic Product (GDP) growth for 2010 may exceed 6%.
The official GDP figures will be announced Friday, he told reporters after officiating a programme to enhance Dewan Negara's activities, at Parliament House here.
Asked if Malaysia was capable of recording double-digit growth in future, Najib, who is also Finance Minister, said: "No, we cannot. Because you must remember that the Malaysian economy is much bigger than it was 20 years ago.
"As we approach to become a matured economy, we cannot get double-digit (growth) but we can get reasonably high. And, I think 6% is considered a very creditable performance.
"We have to be realistic. No developed nation can achieve double-digit."
He also said the country was on track to achieve Vision 2020. - Bernama
http://thestar.com.my/news/story.asp?file=/2011/2/17/nation/20110217112102&sec=nation
Tuesday, February 15, 2011
Monday, February 14, 2011
Oil Reserves Found Off Sarawak’s Coast to Boost Govt Coffers
Tuesday February 15, 2011
By SHARIDAN M. ALI
sharidan@thestar.com.my
PETALING JAYA: Petroliam Nasional Bhd (Petronas)’s persistency in exploring for the precious commodity within Malaysia has struck gold with major oil and gas reserves discovered off the coast of Sarawak.
Some 100 million barrels of oil and 2.8 trillion standard cubic feet (tscf) of natural gas were discovered from two exploration blocks there.
Spurred by the success, Petronas plans to drill more than 50 exploration wells off Malaysia over the next three years.
“These activities, especially if they result in discoveries, are expected to boost business opportunities in the oil and gas industry and will promote upstream investment in the country,” it said in a press statement yesterday.
A research report said the new oil and gas finds represent 2% of oil reserves and 3% of natural gas reserves.
“These new discoveries underpin our optimism for the industry, as (they) prolong the lifespan of Malaysian reserves – 24 years for crude oil and 38 years for natural gas,” said the report by AmResearch yesterday.
Commenting on the latest find, Petronas said 2.6 tscf of natural gas was struck after drilling almost 4km below sea level at the NC3 well at the SK316 block.
Over at another block called SK306, some 100 million barrels of oil reserves and 0.2 tscf of gas were found after drilling extended beyond 3km.
The well at SK306 block, called Spaoh-1, is currently being prepared for production testing.
Production test results had shown that the deposits were technically recoverable, added the statement.
The decision to concentrate on exploration activities in Malaysia rather than overseas was made recently, with Petronas deciding to engage Malaysian companies to help drill for oil at marginal oilfields offshore.
Petronas had found 106 marginal fields containing 580 million barrels of oil, and believed the high price of crude today makes such drilling activity viable.
http://www.thestar.com.my/news/story.asp?file=/2011/2/15/nation/8067767&sec=nation
By SHARIDAN M. ALI
sharidan@thestar.com.my
PETALING JAYA: Petroliam Nasional Bhd (Petronas)’s persistency in exploring for the precious commodity within Malaysia has struck gold with major oil and gas reserves discovered off the coast of Sarawak.
Some 100 million barrels of oil and 2.8 trillion standard cubic feet (tscf) of natural gas were discovered from two exploration blocks there.
Spurred by the success, Petronas plans to drill more than 50 exploration wells off Malaysia over the next three years.
“These activities, especially if they result in discoveries, are expected to boost business opportunities in the oil and gas industry and will promote upstream investment in the country,” it said in a press statement yesterday.
A research report said the new oil and gas finds represent 2% of oil reserves and 3% of natural gas reserves.
“These new discoveries underpin our optimism for the industry, as (they) prolong the lifespan of Malaysian reserves – 24 years for crude oil and 38 years for natural gas,” said the report by AmResearch yesterday.
Commenting on the latest find, Petronas said 2.6 tscf of natural gas was struck after drilling almost 4km below sea level at the NC3 well at the SK316 block.
Over at another block called SK306, some 100 million barrels of oil reserves and 0.2 tscf of gas were found after drilling extended beyond 3km.
The well at SK306 block, called Spaoh-1, is currently being prepared for production testing.
Production test results had shown that the deposits were technically recoverable, added the statement.
The decision to concentrate on exploration activities in Malaysia rather than overseas was made recently, with Petronas deciding to engage Malaysian companies to help drill for oil at marginal oilfields offshore.
Petronas had found 106 marginal fields containing 580 million barrels of oil, and believed the high price of crude today makes such drilling activity viable.
http://www.thestar.com.my/news/story.asp?file=/2011/2/15/nation/8067767&sec=nation
New Findings A Boost for Country’s Oil and Gas Reserves
Tuesday February 15, 2011
By SHARIDAN M. ALI
sharidan@thestar.com.my
PETALING JAYA: The recent findings of new oil and gas fields by Petroliam Nasional Bhd (Petronas) offshore Sarawak are expected to boost the country's reserves.
Petronas' total average production for oil and gas has been declining for the past two years to 1.63 million barrels of oil equivalent (BOE) per day in the financial year ended March 31, 2010 (FY10) from 1.67 million BOE per day in FY08.
The 1.63 million BOE per day comprised 535,000 BOE of crude oil, 974,000 BOE of natural gas and the rest condensates.
AmResearch said as Malaysia had 85 trillion cu ft of gas reserves with oil reserves at 5.8 billion barrels in FY10, the new discoveries accounted for 3% of the country's natural gas reserves and 2% of its oil reserves.
Petronas yesterday announced that it had found new major discoveries from two wells that had the potential of producing both oil and gas.
The NC3 wildcat well and its subsequent appraisal well in block SK316 have an estimated 2.6 trillion standard cu ft (tscf) of net gas in place; while the Spaoh-1 in block SK306, that was drilled in December 2010, has showed similar potential where preliminary evaluation has indicated about 100 million barrels of oil and 0.2 tscf of gas.
AmResearch also said four new production sharing contracts (PSCs) were awarded by the national oil company in FY10 bringing the total number of PSCs in operation currently to 75.
“Additionally, the completion of the Gumusut-Kakap floating production storage semi-submersible unit, Kebabangan offshore structures, Malikai tension leg platform and marginal field projects will also support stronger growth for Petronas in FY11,” the company said in a report.
Late last month, Petronas announced that it would award the Sepat and Berantai marginal oil field contracts soon, and planned to award two more marginal field cluster contracts by April.
Malaysia currently has 106 marginal oil fields containing 580 million barrels of oil and Petronas planned to develop 25% of the total marginal oil fields to replenish its oil reserves and generate new revenue streams.
A marginal oil field is defined as one that can produce 30 million barrels of oil equivalent or less.
AmResearch said Petronas' capital expenditure (capex) is expected to reach RM40bil in FY11, after falling by 16% year-on-year to RM37bil in FY10.
“The rising values for oil and gas contracts, re-energised domestic spending by Petronas, rampant liquidity against the backdrop of the Government's Economic Transformation Programme to create regional champions in providing oil field and equipment services underscore our continued excitement in the sector,” it said.
“The oil and gas up-cycle is still running full tilt with capex of up to RM10bil largely from enhanced oil recovery, marginal and deepwater fields over the next six months.”
http://biz.thestar.com.my/news/story.asp?file=/2011/2/15/business/8065644&sec=business
By SHARIDAN M. ALI
sharidan@thestar.com.my
PETALING JAYA: The recent findings of new oil and gas fields by Petroliam Nasional Bhd (Petronas) offshore Sarawak are expected to boost the country's reserves.
Petronas' total average production for oil and gas has been declining for the past two years to 1.63 million barrels of oil equivalent (BOE) per day in the financial year ended March 31, 2010 (FY10) from 1.67 million BOE per day in FY08.
The 1.63 million BOE per day comprised 535,000 BOE of crude oil, 974,000 BOE of natural gas and the rest condensates.
AmResearch said as Malaysia had 85 trillion cu ft of gas reserves with oil reserves at 5.8 billion barrels in FY10, the new discoveries accounted for 3% of the country's natural gas reserves and 2% of its oil reserves.
Petronas yesterday announced that it had found new major discoveries from two wells that had the potential of producing both oil and gas.
The NC3 wildcat well and its subsequent appraisal well in block SK316 have an estimated 2.6 trillion standard cu ft (tscf) of net gas in place; while the Spaoh-1 in block SK306, that was drilled in December 2010, has showed similar potential where preliminary evaluation has indicated about 100 million barrels of oil and 0.2 tscf of gas.
AmResearch also said four new production sharing contracts (PSCs) were awarded by the national oil company in FY10 bringing the total number of PSCs in operation currently to 75.
“Additionally, the completion of the Gumusut-Kakap floating production storage semi-submersible unit, Kebabangan offshore structures, Malikai tension leg platform and marginal field projects will also support stronger growth for Petronas in FY11,” the company said in a report.
Late last month, Petronas announced that it would award the Sepat and Berantai marginal oil field contracts soon, and planned to award two more marginal field cluster contracts by April.
Malaysia currently has 106 marginal oil fields containing 580 million barrels of oil and Petronas planned to develop 25% of the total marginal oil fields to replenish its oil reserves and generate new revenue streams.
A marginal oil field is defined as one that can produce 30 million barrels of oil equivalent or less.
AmResearch said Petronas' capital expenditure (capex) is expected to reach RM40bil in FY11, after falling by 16% year-on-year to RM37bil in FY10.
“The rising values for oil and gas contracts, re-energised domestic spending by Petronas, rampant liquidity against the backdrop of the Government's Economic Transformation Programme to create regional champions in providing oil field and equipment services underscore our continued excitement in the sector,” it said.
“The oil and gas up-cycle is still running full tilt with capex of up to RM10bil largely from enhanced oil recovery, marginal and deepwater fields over the next six months.”
http://biz.thestar.com.my/news/story.asp?file=/2011/2/15/business/8065644&sec=business
Bidders for Khazanah’s Stake in Pos Malaysia to GoThrough Rigorous Process
Tuesday February 15, 2011
By RISEN JAYASEELAN
risen@thestar.com.my
PETALING JAYA: Khazanah Nasional Bhd will be putting the bidders for its 32.21% equity in Pos Malaysia Bhd through a vigorous process that includes a detailed assessment of the business plan and whether there will be a “cultural fit” between the new owners and the postal company.
Yesterday was the deadline for all bidders to submit their offer and sources close to the deal said the format required for the bids was broken up into a few parts.
One of them being the business plan, another the indicative offer price and a third being the background information on the bidder such as the name of shareholders (including the ultimate shareholders) and partners as well as financial information of all companies in the consortium.
“The offeror will first look at the business plan of the bidders together with the background information on them.
Khazanah requires a detailed assessment of the bidders’ business plan and whether the party taking over Pos Malaysia has the right model
Pricing is less of a focus at this point,” a source said, adding that Khazanah's interest was to ensure that the party taking over Pos had the right model in place.
“Of course price is important but that comes later,” the source said.
Once Khazanah vetted through all three aspects of the bids, including pricing, it was said to be also keen on ensuring that the bidder could work with the current management of Pos, the source added.
“It is likely that meetings will be held between the short-listed bidders and the management of Pos, with Khazanah sitting in,” an investment banker said.
The banker pointed out that the outcome of those meetings would have a bearing on the selection of the successful bidder for the stake.
The banker also said it was unclear how long this divestment process would take but added that the deal would likely be completed before the Invest Malaysia 2011 conference that was scheduled to begin on April 12 in Kuala Lumpur.
The 32.21% stake in Pos that is up for sale comes with management control of the company.
Khazanah had on Jan 18 announced the opening of bidding for its stake in Pos Malaysia through its adviser, CIMB Investment Bank Bhd.
But news of Khazanah's divestment of its stake in Pos had first surfaced in March last year at the sidelines of Invest Malaysia 2010 conference, where Prime Minister Datuk Seri Najib Tun Razak announced it.
It has been reported that one of the conditions for prospective bidders is that they must be 51% owned and led by a Malaysian company.
It has also been reported that the bidders include Tan Sri Syed Mokhtar Al-Bukhary, Sapura Group and Scomi Marine Bhd.
Khazanah managing director Tan Sri Azman Mokhtar told the media last month that the calling for bids for the Pos stake was part of the second stage of its divestment plan.
The first stage of the divestment plan was about ironing out regulatory issues such as the postage stamp hike and salary of postmen that were necessary to start the bidding process, he said.
“The next milestone would be the Postal Bill. Hopefully, it will go through in the next Dewan Rakyat sitting,” Azman was reported to have said.
Another issue with the Pos divestment has been the Government's golden share in the postal company, which gives it the right to override the board and management.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/15/business/8063340&sec=business
By RISEN JAYASEELAN
risen@thestar.com.my
PETALING JAYA: Khazanah Nasional Bhd will be putting the bidders for its 32.21% equity in Pos Malaysia Bhd through a vigorous process that includes a detailed assessment of the business plan and whether there will be a “cultural fit” between the new owners and the postal company.
Yesterday was the deadline for all bidders to submit their offer and sources close to the deal said the format required for the bids was broken up into a few parts.
One of them being the business plan, another the indicative offer price and a third being the background information on the bidder such as the name of shareholders (including the ultimate shareholders) and partners as well as financial information of all companies in the consortium.
“The offeror will first look at the business plan of the bidders together with the background information on them.
Khazanah requires a detailed assessment of the bidders’ business plan and whether the party taking over Pos Malaysia has the right model
Pricing is less of a focus at this point,” a source said, adding that Khazanah's interest was to ensure that the party taking over Pos had the right model in place.
“Of course price is important but that comes later,” the source said.
Once Khazanah vetted through all three aspects of the bids, including pricing, it was said to be also keen on ensuring that the bidder could work with the current management of Pos, the source added.
“It is likely that meetings will be held between the short-listed bidders and the management of Pos, with Khazanah sitting in,” an investment banker said.
The banker pointed out that the outcome of those meetings would have a bearing on the selection of the successful bidder for the stake.
The banker also said it was unclear how long this divestment process would take but added that the deal would likely be completed before the Invest Malaysia 2011 conference that was scheduled to begin on April 12 in Kuala Lumpur.
The 32.21% stake in Pos that is up for sale comes with management control of the company.
Khazanah had on Jan 18 announced the opening of bidding for its stake in Pos Malaysia through its adviser, CIMB Investment Bank Bhd.
But news of Khazanah's divestment of its stake in Pos had first surfaced in March last year at the sidelines of Invest Malaysia 2010 conference, where Prime Minister Datuk Seri Najib Tun Razak announced it.
It has been reported that one of the conditions for prospective bidders is that they must be 51% owned and led by a Malaysian company.
It has also been reported that the bidders include Tan Sri Syed Mokhtar Al-Bukhary, Sapura Group and Scomi Marine Bhd.
Khazanah managing director Tan Sri Azman Mokhtar told the media last month that the calling for bids for the Pos stake was part of the second stage of its divestment plan.
The first stage of the divestment plan was about ironing out regulatory issues such as the postage stamp hike and salary of postmen that were necessary to start the bidding process, he said.
“The next milestone would be the Postal Bill. Hopefully, it will go through in the next Dewan Rakyat sitting,” Azman was reported to have said.
Another issue with the Pos divestment has been the Government's golden share in the postal company, which gives it the right to override the board and management.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/15/business/8063340&sec=business
New Oil and Gas Fields ?
Petronas finds new oil and gas fields offshore Sarawak
Monday February 14, 2011
PETALING JAYA: Petronas has made major oil and gas discoveries through the drilling of NC3 and Spaoh-1 wells in Blocks SK316 and SK306 offshore Sarawak.
It said that in March last year, drilling of the NC3 wildcat well and a subsequent appraisal well brought significant discovery for Petronas in Block SK316 with early estimation of 2.6 trillion standard cubic feet (tscf) of net gas in place.
“The wells were each drilled to a depth of almost 4,000 metres below sea level. Additionally, production flow test results of the wells demonstrate that the field is technically producible.
“The Spaoh-1 well of 3,000m drilling depth, located in Block SK306, shows similar promise. It was drilled in December 2010 and found both oil and gas,” Petronas said in a statement.
The national oil company said preliminary evaluation indicates around 100 million barrels of oil and 0.2 tscf of gas in place, respectively. Currently, the well is being prepared for production testing.
“These discoveries support Petronas' strategy to intensify exploration activities in Malaysia and is expected to further enhance exploration potential offshore Sarawak.”
In the next three years, over 50 exploration wells are expected to be drilled offshore Malaysia by Petronas and its production sharing contractors.
“These activities, especially if they result in discoveries, are expected to spur business opportunities in the oil and gas industry and will promote upstream investment in the country,” it said.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/14/business/20110214150057&sec=business
Monday February 14, 2011
PETALING JAYA: Petronas has made major oil and gas discoveries through the drilling of NC3 and Spaoh-1 wells in Blocks SK316 and SK306 offshore Sarawak.
It said that in March last year, drilling of the NC3 wildcat well and a subsequent appraisal well brought significant discovery for Petronas in Block SK316 with early estimation of 2.6 trillion standard cubic feet (tscf) of net gas in place.
“The wells were each drilled to a depth of almost 4,000 metres below sea level. Additionally, production flow test results of the wells demonstrate that the field is technically producible.
“The Spaoh-1 well of 3,000m drilling depth, located in Block SK306, shows similar promise. It was drilled in December 2010 and found both oil and gas,” Petronas said in a statement.
The national oil company said preliminary evaluation indicates around 100 million barrels of oil and 0.2 tscf of gas in place, respectively. Currently, the well is being prepared for production testing.
“These discoveries support Petronas' strategy to intensify exploration activities in Malaysia and is expected to further enhance exploration potential offshore Sarawak.”
In the next three years, over 50 exploration wells are expected to be drilled offshore Malaysia by Petronas and its production sharing contractors.
“These activities, especially if they result in discoveries, are expected to spur business opportunities in the oil and gas industry and will promote upstream investment in the country,” it said.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/14/business/20110214150057&sec=business
Sunday, February 13, 2011
Monday, February 7, 2011
A guidebook for directors facing takeovers?
Tuesday February 8, 2011
Raison D'etre - Risen Jayaseelan
IT has been written that directors should be doing their part in overcoming one particular problem posed by takeovers under the assets and liabilities route.
Following from that, perhaps the authorities should consider coming up with a set of guidelines to help directors play their part.
Here's the issue - sometimes bidders make an offer for the asset of a company, providing an indicative price, but then walk away from the deal for various reasons.
In such instances there is concern that bidders may be rigging the market or creating a false market for the shares.
Bidders though are entitled to walk away from deals if they discover something they don't like.
For example, if a due diligence shows up a weakness in the company, then the buyer is perfectly entitled to not buy the asset.
Arguably, if the buyer walks away, the target company should be compensated, and this is the practice in mature markets where failed bidders are made to pay a “break-up” fee.
Aside from the break-up fee, directors can also insist that bidders pay a deposit and show proof of their funding capabilities.
This is to ensure that they can really afford to go ahead with the deal.
This way, potential bidders will be dis-inclined from putting bids they are not really keen on seeing through and this, in turn, prevents the creation of a false market for the shares of the target company.
But to help directors play this role effectively, perhaps Bursa Malaysia should come up with a new set of guidelines for directors.
To be sure, there already are guidelines and rules on how directors should exercise their fiduciary duties and one could argue these guidelines already cover instances of when directors are faced with buyout offers for their companies' assets.
But perhaps a set of specific guidelines for these instances should be drawn up, listing down the many conditions that directors can impose on bidders, such as mentioned above, namely, insisting on a break-up fee and/or a deposit from the bidder as well as asking the bidder to show proof of funding, among other things.
The guidelines could draw from the best practices of real life cases in other markets, and from suggestions of M&A experts as well as minority rights activists.
The guidelines could also drill down further by suggesting formulas on determining the quantum of a deposit required or break-up fee.
Cases such as last year's failed acquisition by UK's Prudential to buy a unit of AIG that had cost the former a break-up fee of US$230.6mil should be studied closely.
Such a move would go some way in helping directors exercise their fiduciary duties and thereby enhance the level of corporate governance and minority rights protection in the country.
Deputy news editor Risen Jayaseelan reckons that if such guidelines were to be drawn up, perhaps the independent directors of PLUS Expressways Bhd should be invited to play a big role in drafting it, considering the good work they had done recently in the takeover of their company.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/8/business/8019067&sec=business
Raison D'etre - Risen Jayaseelan
IT has been written that directors should be doing their part in overcoming one particular problem posed by takeovers under the assets and liabilities route.
Following from that, perhaps the authorities should consider coming up with a set of guidelines to help directors play their part.
Here's the issue - sometimes bidders make an offer for the asset of a company, providing an indicative price, but then walk away from the deal for various reasons.
In such instances there is concern that bidders may be rigging the market or creating a false market for the shares.
Bidders though are entitled to walk away from deals if they discover something they don't like.
For example, if a due diligence shows up a weakness in the company, then the buyer is perfectly entitled to not buy the asset.
Arguably, if the buyer walks away, the target company should be compensated, and this is the practice in mature markets where failed bidders are made to pay a “break-up” fee.
Aside from the break-up fee, directors can also insist that bidders pay a deposit and show proof of their funding capabilities.
This is to ensure that they can really afford to go ahead with the deal.
This way, potential bidders will be dis-inclined from putting bids they are not really keen on seeing through and this, in turn, prevents the creation of a false market for the shares of the target company.
But to help directors play this role effectively, perhaps Bursa Malaysia should come up with a new set of guidelines for directors.
To be sure, there already are guidelines and rules on how directors should exercise their fiduciary duties and one could argue these guidelines already cover instances of when directors are faced with buyout offers for their companies' assets.
But perhaps a set of specific guidelines for these instances should be drawn up, listing down the many conditions that directors can impose on bidders, such as mentioned above, namely, insisting on a break-up fee and/or a deposit from the bidder as well as asking the bidder to show proof of funding, among other things.
The guidelines could draw from the best practices of real life cases in other markets, and from suggestions of M&A experts as well as minority rights activists.
The guidelines could also drill down further by suggesting formulas on determining the quantum of a deposit required or break-up fee.
Cases such as last year's failed acquisition by UK's Prudential to buy a unit of AIG that had cost the former a break-up fee of US$230.6mil should be studied closely.
Such a move would go some way in helping directors exercise their fiduciary duties and thereby enhance the level of corporate governance and minority rights protection in the country.
Deputy news editor Risen Jayaseelan reckons that if such guidelines were to be drawn up, perhaps the independent directors of PLUS Expressways Bhd should be invited to play a big role in drafting it, considering the good work they had done recently in the takeover of their company.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/8/business/8019067&sec=business
Takeover Rules Changes Lauded
Tuesday February 8, 2011
By RISEN JAYASEELAN
risen@thestar.com.my
They bring certainty and clarity to the market, says banker
PETALING JAYA: The recent changes to takeover rules involving the assets and liabilities method have attracted positive responses from various quarters, including investment bankers.
One banker from a foreign investment house said that the changes had brought about a much needed alignment of the rules governing takeovers. “It brings certainty and clarity to the market, which is always good,” he said.
That view is echoed by AmBank Group corporate and institutional banking managing director Pushpa Rajadurai.
“In the past, there were certain transactions that used a simple majority of shareholders to approve the deals. There was uncertainty in the marketplace as to whether the regulators would sanction or impose certain conditions on such deals.
Pushpa Rajadurai … ‘The regulator should be applauded for making this holistic change.’
“Now that the regulator has stepped in and raised the approval bar, the assets and liabilities route can be used with more certainty by any party whether a foreign party or private equity fund to undertake a buyout of a listed company,” she said.
To recap, two weeks ago, the Securities Commission (SC) and Bursa Malaysia announced that companies seeking to take over a listed firm, by buying its assets, must get at least 75% of the target company's shareholder approval.
Previously, such deals needed the approval of just a simple majority of shareholders and this had been a controversial takeover route as it was deemed to be easier for takeovers to go through.
“The regulator should be applauded for making this holistic change that benefits the capital markets in general,” Pushpa said.
Meanwhile, the chief executive officer of the Minority Shareholder Watchdog Group, Rita Benoy Bushon, who had long been fighting to raise the shareholder approval threshold, also applauded the move by the SC.
“The loophole has been plugged. Regardless of the takeover route, all these corporate exercises are now subject to the same minimum 75% shareholder approval level. It is a really good move for minority investor protection,” Rita said.
AmBank's Pushpa also said that there would not be any significant drop in the number and quantum of mergers and acquisitions (M&As) involving listed companies as a result of the rule change.
“First, it should be noted that the assets and liabilities method of takeovers does not even account for half of the total number of M&A deals last year.
“There are a number of other takeover methods used, including general offers under the Takeover Code, a scheme of arrangement under Section 176 of the Companies Act 1965 and a selective capital repayment under the Companies Act,” she said.
(All other takeover methods require the support of at least 75% of shareholders of the target company. This is why the new rules are seen as a streamlining of takeover regulation.)
Pushpa said what was likely to happen, post the recent rule change, was not so much a drop in the number of deals, but rather, a change in the approach of offerors.
“Offerors using the assets and liabilities method would now have to pay closer attention to the structure, strategy and terms of their takeover offer.
“They now will have to pay closer attention to the list of stakeholders of the target company and look at the timing of their deal and the purpose of the takeover. All these factors will have a bearing on how the majority of shareholders of the target company will vote on the deal,” she said.
Pushpa also said the directors of companies faced with a buyout offer for their assets, needed to be more proactive in ensuring that the offerors and their offers were credible.
“They (directors) must ensure that no uncertainty is created because the shares of companies which are subject to a takeover will usually continue to be traded.
“Directors need to take a holistic view, get proper and specialist advice if necessary and understand the implications of the offers being made. The regulators have done their part in streamlining the regulation of mergers and acquisitions. Now directors have to do their part,” she said.
Aside from the low shareholder approval threshold issue of this takeover method, another problem has been concern that the route creates uncertainty in the market where bidders make an offer for the asset of a company, providing an indicative price, but then walk away from the deal for various reasons.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/8/business/8018097&sec=business
By RISEN JAYASEELAN
risen@thestar.com.my
They bring certainty and clarity to the market, says banker
PETALING JAYA: The recent changes to takeover rules involving the assets and liabilities method have attracted positive responses from various quarters, including investment bankers.
One banker from a foreign investment house said that the changes had brought about a much needed alignment of the rules governing takeovers. “It brings certainty and clarity to the market, which is always good,” he said.
That view is echoed by AmBank Group corporate and institutional banking managing director Pushpa Rajadurai.
“In the past, there were certain transactions that used a simple majority of shareholders to approve the deals. There was uncertainty in the marketplace as to whether the regulators would sanction or impose certain conditions on such deals.
Pushpa Rajadurai … ‘The regulator should be applauded for making this holistic change.’
“Now that the regulator has stepped in and raised the approval bar, the assets and liabilities route can be used with more certainty by any party whether a foreign party or private equity fund to undertake a buyout of a listed company,” she said.
To recap, two weeks ago, the Securities Commission (SC) and Bursa Malaysia announced that companies seeking to take over a listed firm, by buying its assets, must get at least 75% of the target company's shareholder approval.
Previously, such deals needed the approval of just a simple majority of shareholders and this had been a controversial takeover route as it was deemed to be easier for takeovers to go through.
“The regulator should be applauded for making this holistic change that benefits the capital markets in general,” Pushpa said.
Meanwhile, the chief executive officer of the Minority Shareholder Watchdog Group, Rita Benoy Bushon, who had long been fighting to raise the shareholder approval threshold, also applauded the move by the SC.
“The loophole has been plugged. Regardless of the takeover route, all these corporate exercises are now subject to the same minimum 75% shareholder approval level. It is a really good move for minority investor protection,” Rita said.
AmBank's Pushpa also said that there would not be any significant drop in the number and quantum of mergers and acquisitions (M&As) involving listed companies as a result of the rule change.
“First, it should be noted that the assets and liabilities method of takeovers does not even account for half of the total number of M&A deals last year.
“There are a number of other takeover methods used, including general offers under the Takeover Code, a scheme of arrangement under Section 176 of the Companies Act 1965 and a selective capital repayment under the Companies Act,” she said.
(All other takeover methods require the support of at least 75% of shareholders of the target company. This is why the new rules are seen as a streamlining of takeover regulation.)
Pushpa said what was likely to happen, post the recent rule change, was not so much a drop in the number of deals, but rather, a change in the approach of offerors.
“Offerors using the assets and liabilities method would now have to pay closer attention to the structure, strategy and terms of their takeover offer.
“They now will have to pay closer attention to the list of stakeholders of the target company and look at the timing of their deal and the purpose of the takeover. All these factors will have a bearing on how the majority of shareholders of the target company will vote on the deal,” she said.
Pushpa also said the directors of companies faced with a buyout offer for their assets, needed to be more proactive in ensuring that the offerors and their offers were credible.
“They (directors) must ensure that no uncertainty is created because the shares of companies which are subject to a takeover will usually continue to be traded.
“Directors need to take a holistic view, get proper and specialist advice if necessary and understand the implications of the offers being made. The regulators have done their part in streamlining the regulation of mergers and acquisitions. Now directors have to do their part,” she said.
Aside from the low shareholder approval threshold issue of this takeover method, another problem has been concern that the route creates uncertainty in the market where bidders make an offer for the asset of a company, providing an indicative price, but then walk away from the deal for various reasons.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/8/business/8018097&sec=business
Ringgit Hits New 13-year High
Tuesday February 8, 2011
KUALA LUMPUR: The Malaysian ringgit hit a new 13-year high of 3.0345 in intra-day trading yesterday before ending trade at 3.036.
A local wire service quoted a currency trader as saying the new high was driven by speculation that Asian central banks may raise interest rates to curb inflationary pressures and the continued demand for the local currency.
An AmBank Group report said yesterday that the ringgit's strength was precipitated by stronger-than-expected December export data, as manufacturers shipped more palm oil and petroleum products to customers in South-East Asia and Japan.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/8/business/20110208070533&sec=business
KUALA LUMPUR: The Malaysian ringgit hit a new 13-year high of 3.0345 in intra-day trading yesterday before ending trade at 3.036.
A local wire service quoted a currency trader as saying the new high was driven by speculation that Asian central banks may raise interest rates to curb inflationary pressures and the continued demand for the local currency.
An AmBank Group report said yesterday that the ringgit's strength was precipitated by stronger-than-expected December export data, as manufacturers shipped more palm oil and petroleum products to customers in South-East Asia and Japan.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/8/business/20110208070533&sec=business
Lebih Ramai Bakal Membeli-belah Guna Internet
Oleh NORLAILI ABD. RAHMAN
bisnes.utusan@gmail.com
KUALA LUMPUR 7 Feb. - Perniagaan membeli-belah di Internet mempunyai masa depan cerah di negara ini berikutan peningkatan kadar penembusan jalur lebar setiap tahun.
Ketua Perniagaan eBay Malaysia, Abhimanyu Lal berkata, syarikat jualan dalam talian itu optimis untuk merekod pertumbuhan jualan tiga digit tahun depan di negara ini.
Menurut beliau, eBay Malaysia mempunyai 552,000 pengguna berdaftar di seluruh negara.
"Malaysia kini berada di kedudukan terbaik untuk pergi lebih jauh di dalam perniagaan dalam talian kerana majoriti rakyatnya terdiri daripada golongan muda selain infrastruktur yang baik membuatkan kami cukup yakin terhadap potensi besar di negara ini.
"Malah perkembangan serupa di negara-negara ASEAN juga menawarkan potensi besar kepada perniagaan ini kerana pembelian secara dalam talian juga memberi peluang kepada pembeli untuk memiliki barangan yang tidak terdapat di negara ini dengan harga yang berpatutan,'' kata beliau kepada Utusan Malaysia di sini.
eBay Malaysia menawarkan tiga format untuk menjana pendapatan di laman web miliknya iaitu menerusi lelongan barangan, harga tetap dan iklan kecil.
Ia menawarkan sehingga 600 kategori produk yang terdiri daripada antaranya barangan antik, barangan kecantikan, pakaian, aksesori, gajet dan barangan koleksi.
"Barangan koleksi, pakaian dan gajet merupakan antara produk-produk yang paling mendapat sambutan hangat oleh pembeli di Malaysia," katanya.
Menurut Abhimanyu, majoriti pengguna berdaftar dengan eBay Malaysia adalah terdiri daripada usahawan Perusahaan Kecil dan Sederhana (PKS) dan Industri Kecil dan Sederhana (IKS) yang menjadikan laman tersebut sebagai platform untuk menjual produk.
Jelas beliau, eBay menjadi pilihan usahawan kerana mahu mengurangkan kos operasi selain mudah mendapatkan pelanggan berpotensi memandangkan laman web itu mempunyai pengikut yang ramai.
"eBay tidak mengenakan caj kepada mereka yang mahu melelong atau menjual barangan di laman web ini kecualilah ada pakej-pakej tambahan yang diminta pelanggan, barulah ada caj yang akan dikenakan dengan kadar berpatutan, " tambah beliau lagi.
Menurut Abhimanyu, pada sesuatu masa, sejumlah 94,000 penyenaraian secara langsung dibuat oleh ribuan penjual bagi 600 kategori produk di laman web eBay Malaysia.
Malah, Kajian Antarabangsa AC Nielsen 2006 menunjukkan 4,000 penjual menggunakan eBay Malaysia sebagai sumber pendapatan utama atau kedua.
eBay Malaysia adalah anak syarikat milik penuh eBay Incorporated dan ia boleh diakses menerusi laman web www.ebay.com.my.
http://www.utusan.com.my/utusan/info.asp?y=2011&dt=0208&pub=Utusan_Malaysia&sec=Ekonomi&pg=ek_04.htm
bisnes.utusan@gmail.com
KUALA LUMPUR 7 Feb. - Perniagaan membeli-belah di Internet mempunyai masa depan cerah di negara ini berikutan peningkatan kadar penembusan jalur lebar setiap tahun.
Ketua Perniagaan eBay Malaysia, Abhimanyu Lal berkata, syarikat jualan dalam talian itu optimis untuk merekod pertumbuhan jualan tiga digit tahun depan di negara ini.
Menurut beliau, eBay Malaysia mempunyai 552,000 pengguna berdaftar di seluruh negara.
"Malaysia kini berada di kedudukan terbaik untuk pergi lebih jauh di dalam perniagaan dalam talian kerana majoriti rakyatnya terdiri daripada golongan muda selain infrastruktur yang baik membuatkan kami cukup yakin terhadap potensi besar di negara ini.
"Malah perkembangan serupa di negara-negara ASEAN juga menawarkan potensi besar kepada perniagaan ini kerana pembelian secara dalam talian juga memberi peluang kepada pembeli untuk memiliki barangan yang tidak terdapat di negara ini dengan harga yang berpatutan,'' kata beliau kepada Utusan Malaysia di sini.
eBay Malaysia menawarkan tiga format untuk menjana pendapatan di laman web miliknya iaitu menerusi lelongan barangan, harga tetap dan iklan kecil.
Ia menawarkan sehingga 600 kategori produk yang terdiri daripada antaranya barangan antik, barangan kecantikan, pakaian, aksesori, gajet dan barangan koleksi.
"Barangan koleksi, pakaian dan gajet merupakan antara produk-produk yang paling mendapat sambutan hangat oleh pembeli di Malaysia," katanya.
Menurut Abhimanyu, majoriti pengguna berdaftar dengan eBay Malaysia adalah terdiri daripada usahawan Perusahaan Kecil dan Sederhana (PKS) dan Industri Kecil dan Sederhana (IKS) yang menjadikan laman tersebut sebagai platform untuk menjual produk.
Jelas beliau, eBay menjadi pilihan usahawan kerana mahu mengurangkan kos operasi selain mudah mendapatkan pelanggan berpotensi memandangkan laman web itu mempunyai pengikut yang ramai.
"eBay tidak mengenakan caj kepada mereka yang mahu melelong atau menjual barangan di laman web ini kecualilah ada pakej-pakej tambahan yang diminta pelanggan, barulah ada caj yang akan dikenakan dengan kadar berpatutan, " tambah beliau lagi.
Menurut Abhimanyu, pada sesuatu masa, sejumlah 94,000 penyenaraian secara langsung dibuat oleh ribuan penjual bagi 600 kategori produk di laman web eBay Malaysia.
Malah, Kajian Antarabangsa AC Nielsen 2006 menunjukkan 4,000 penjual menggunakan eBay Malaysia sebagai sumber pendapatan utama atau kedua.
eBay Malaysia adalah anak syarikat milik penuh eBay Incorporated dan ia boleh diakses menerusi laman web www.ebay.com.my.
http://www.utusan.com.my/utusan/info.asp?y=2011&dt=0208&pub=Utusan_Malaysia&sec=Ekonomi&pg=ek_04.htm
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