Hai-O Enterprise To Expand MLM Business To Indonesia

SHAH ALAM, June 30 (Bernama) Hai-O Enterprise Bhd, which sells Chinese herbs and medicine, plans to expand its multilevel marketing (MLM) business to Indonesia by year end.Financial controller Hew Von Kin said today the company has already identified a few local partners and is evaluating options to enter MLM business scene there."We have already identified a few local partners and are negotiating with them. We will review some options and subsequently set up a MLM company in Indonesia by the end of this year," he told a press conference here.Earlier, Hew presented a RM1.025 million cheque to Tabung Haji Travel & Services Sdn Bhd, which has been engaged to manage the Umrah package for Hai-O agents. The package is among the company's incentives for its sales team.Hai-O, 95 percent of whose distributors are Malays, has the potential to penetrate Indonesia market easily as the country shares its language and culture with Malaysia, he said.Three of its main products - Body Beautiful, Bio Aura and traditional Chinese medicine - are likely to be the top sellers there."As 95 percent of our sales team are Malay, these three products have been the selling point for the Malay segment here. We expect these products to have the same effect in Indonesia," he added.Currently, the three products contribute about 70 percent to the company's total revenue, Hew said.For the financial year ended April 30, 2007, the company registered a pre-tax profit of RM15.126 million on the back of revenue of RM146.798 million.Hew said the company is expecting double digit growth in revenue and pre-tax profit for the financial year ending April 30, 2008, to be driven significantly by its MLM business.Hai-O, now on the Second Board of Bursa Malaysia, has applied to the Securities Commission to transfer its listing to the Main Board, and Hew expects this to happen in October.

Malaysia's Balance Of Payments Improves In Q1 2007

KUALA LUMPUR, June 29 (Bernama) -- Malaysia's overall balance of payments during the first quarter of 2007 improved to RM15.5 billion from -RM2.7 billion in the fourth quarter of 2006.The current account continuously remained positive albeit at lower surplus of RM20.1 billion from RM27.9 billion posted in the previous quarter, the Statistics Department said in a statement Friday.The financial account switched to a modest net inflow of RM2.8 billion from net outflow of RM20.0 billion previously, resulting in smaller errors and omissions of -RM7.4 billion from -RM10.5 billion in the previous quarter, it added.Meanwhile, the international reserves held by Bank Negara Malaysia during the period increased to RM15.5 billion from a decrease of RM2.7 billion posted a quarter ago.According to the department, the overall balance surged by RM10.2 billion to RM15.5 billion from RM5.3 billion recorded in the same period last year.On a yearly basis, the surplus in current account declined marginally to RM20.1 billion from RM20.4 billion while the financial account recorded a net inflow of RM2.8 billion from an outflow of RM5.1 billion.The external reserves of Bank Negara which amounted to RM15.5 billion rose substantially when compared with a modest increase of RM5.3 billion posted a year ago, the department said.The surplus in the current account of RM20.1 billion, which declined by 28 percent in the previous quarter, was mainly due to lower surplus on goods amounting to RM27.6 billion, down from RM36.8 billion in the earlier quarter.According to the department, this was mainly attributed to bigger drop on exports f.o.b (free on board) relative to imports f.o.b in the current quarter.On the other hand, the deficits on services, income and current transfers improved by RM0.8 billion to RM0.5 billion, RM0.5 billion to RM3.1 billion, and RM0.2 billion to RM3.8 billion respectively.The reduction on exports f.o.b by RM13.6 billion or 8.9 percent from RM152.2 billion in the fourth quarter of 2006 was mainly reflected in lower demands for palm oil and palm oil-based products, electrical and electronic products, and timber and timber-based products, the department said.At the same time, imports f.o.b which declined by 3.9 percent or RM4.5 billion from RM115.5 billion previously was mainly attributable to lower demand for machinery and transport equipment, and manufactured goods and articles.Year-on-year, the surplus on goods dropped by RM4.1 billion or 12.9 percent to RM27.6 billion in the first quarter of 2007 from RM31.7 billion in the same period last year, the department said.The drop was mainly due to higher increase on imports f.o.b relative to exports f.o.b, it added.

Petronas Registers A Record RM76.3 Billion Pre-tax Profit In FY07

KUALA LUMPUR, June 28 (Bernama) -- Higher crude oil prices lifted the pre-tax profit of Petronas to a record RM76.3 billion for the financial year (FY) ended March 31, 2007, up 9.9 per cent from RM69.4 billion registered in the same period of 2006.Its president Tan Sri Hassan Marican Thursday said the national oil corporation's revenue rose 10 per cent to RM184.1 billion during the period from RM167.4 billion previously.Speaking at a press conference here to announce the group's financial performance, he said net profit jumped to RM46.4 billion from RM43.1 billion, while total asset increased to RM294.6 billion from RM273.0 billion.Shareholders fund grew 16.3 per cent to RM170.9 billion from RM147.0 billion, said Hassan.He said the national oil corporation's manufacturing revenue grew to RM102.9 billion from RM97.6 billion in last financial year."Without manufacturing activities, group revenue would be reduced by one third annually."To a question, Hassan said the domestic manufacturing revenue of Petronas stood at 28.7 per cent of the manufacturing sector's contribution to Malaysia's gross domestic product (GDP).Non-manufacturing revenue jumped to RM184.1 billion from RM167.4 billion.International operation revenue grew 19.4 per cent to RM67.6 billion from RM96.6 billion."There were increasing revenue from international operation reflecting the group's success internationally," he said.As for the strengthening ringgit, Hassan said it had a negative impact on financial results as Petronas conduct its business in U.S. dollar.The exchange rate impact to the revenue totaled RM7.2 billion.-Hassan said the group's total capital expenditure (capex) in FY 2007 expanded to RM21.6 billion from RM18.7 billion, with bulk of the capex for domestic projects.He said the exploration and production sectors continued to incur the biggest capex.On another note, Hassan said Malaysia's total average production in terms of barrels of oil equivalent (boe) per day for FY 2007 declined 2.7 percent to 1,611.4 billion boe from 1,656.1 billion boe.He said assuming the growth of petroleum product consumption grew at four percent annually, Malaysia will be a net importer by 2010.Malaysia's oil reserves during the period rose 1.4 percent to 20.18 billion boe as of Jan 1, 2007, compared with 19.91 billion boe as of Jan 1, 2006.International reserves amounted to 6.31 billion boe as against 5.94 billion boe previously.As for the discovery of new crude oil during FY 2007, Hassan said 30 percent came from deepwater discovery.

Faber Group Unit Sets Up JV Company In India

KUALA LUMPUR, June 26 (Bernama) -- Faber Group Bhd's unit Faber Facilities Sdn Bhd (FFSB) together with India-based Apollo Sindoori Hotels Ltd (ASHL) plans to set up a joint venture company in Chennai, India which will be involved in healthcare and non-healthcare support services.A statement from Faber said the support services will be in the areas of bio-medical engineering maintenance, facility engineering maintenance, cleansing, housekeeping, janitorial services and hospital support services and management of information services.FFSB will hold 51 percent in the joint venture while the remaining 49 percent interest will be held by ASHL.Under an agreement to set-up the new company, ASHL will transfer its existing business of housekeeping services to hospitals valued at a deferred consideration RM7.23 million to the joint venture company.ASHL said it will also ensure that the hospitals it is providing the services to signs contracts with the new company.The entry by FFSB into the joint venture agreement is expected to expand FFSB's current business operations into international boundaries.The synergistic venture augurs well with FFSB's plan to be a comprehensive provider of facility management services by providing related support services and looking beyond Malaysia for the group's long-term growth, it said.

TNB-LedConsortium Gets Approval For IPP Project In Sabah

KUALA LUMPUR, June 25 (Bernama) -- Tenaga Nasional Bhd (TNB) has won government approval for the proposed 300-megawatt coal-fired independent power producer project at Lahad Datu in Sabah.In a filing with Bursa Malaysia, TNB said the project will be carried out by a consortium where its wholly-owned unit, TNB Repair and Maintenance Sdn Bhd, has a 51 percent stake.The other consortium members are Eden-Nova (35 percent stake) and Maser (14 percent).The consortium's interest in the project is 80 percent, with the remaining held by Yayasan Sabah.The details with regard to the project will be discussed among the consortium members and will be announced in due course, it said.

YTL Cement target price to RM7.00

Better days ahead: In conjunction with the recent proposal to implement theAutomated Pricing Mechanism (APM) to regulate steel prices in the future, anannouncement was made on Bloomberg that the APM will be introduced to determinecement prices from CY08 onwards, and that the existing blended ceiling price ofM$220/t will be scrapped.APM = intervention method: We believe the implementation of the APM, coupledwith the removal of the price ceiling, will not result in a short-term "spike"in cement prices. If anything, all it means is that cement prices will becomemore dynamic, will be revised regularly, and there will be only one universalspot pricein the market. This is fundamentally different from the existing dynamicswhereby cement prices are determined by supply-demand economics, albeit with aprice ceiling.We raise our price forecast: Nevertheless, we are factoring in a rise in spotprices by an average of M$10/t in FY08 and M$5/t in FY09 and FY10, primarilyfueled by strong momentum in the sector as demand picks up.We raise our PT by 18.6% to M$7.00: We reiterate our Overweight rating on YTLCement and introduce a June-08 PT of M$7.00, computed based on EV of M$171/tratio. Based on our revised assumptions, we are pegging a higher EV of US$171/tto YTL Cement to primarily reflect the margin expansion from higher sellingprice. We also increase our earnings estimates for FY08 and FY09 by 13% and 11%to M$0.45 and M$0.60, respectively. We highlight both excess capacity and aprice war as key risks to our price target.

Malaysia's First NPLs Auction Nets Maybank RM256 Million

KUALA LUMPUR, June 21 (Bernama) -- In a first of its kind for Malaysia, Maybank Bhd has used an open auction to sell non-performing loans (NPLs) for RM424.8 million and make a gain of RM256 million.Its deputy president and chief financial officer, Datuk Mohammed Hussein, in announcing this Thursday, said the improvement in its net NPL ratio will be reflected in the results for its financial year which ends this month.The two tranches of long outstanding corporate NPLs were bought by two special purpose vehicles - Gale Force Sdn Bhd, which is part of the Standard Bank of South Africa Group; and Popular Ambience Sdn Bhd, which is jointly owned by Standard Chartered Bank (Hong Kong) Ltd and Standard Chartered Bank Malaysia Bhd."We believe that this (open bidding) process has resulted in optimum value creation for the bank as well as its stakeholders, by obtaining predictable outcomes for uncertain assets," Mohammed said in a statement."It also enables our staff, particularly in remedial management and loan recovery, to focus on more income generating activities."The auction, he said, drew 26 potential investors."Maybank believes that what it has done will also benefit the entire banking industry, since in the process of completing the sale, it has whetted the appetite of international investors to NPL sales and cleared any regulatory and legal hurdles to pave the way for other NPL sales to follow," he added.

Sun Tyres Expects 25% Increase In Demand For Retreaded Tyres

SEREMBAN, June 21 (Bernama) -- Sun Tyre Industries Sdn Bhd, a leading retreaded tyre manufacturer, expects demand to go up by 20 to 25 percent for its retreaded tyres this year.It said this following the award of the MS224:2005 certification from Sirim Thursday.Its executive director, Steven Gan Seng Poe, said demand for retreaded tyres in Malaysia was always high and that the company was confident of meeting the demand as they planned to increase production at their new plant in Kota Kinabalu, Sabah.The production at the plant would be raised to about 9,000 units a month by year-end compared to the current production of 2,000 units a month.He said the Seremban based company currently produced 25,000 retreaded tyres a month, which are mostly used for commercial vehicles."About 95 per cent of our tyres are sold locally. We are looking to export our tyres to more countries and are currently identifying suitable markets," Gan told reporters after the presentation of the MS224:2005 certificate to the company by Sirim president and chief executive Datuk Dr Mohd Ariffin Aton.Deputy Agriculture and Agro-based Industries Minister Datuk Mah Siew Keong witnessed the event.He said the company started exporting tyres to Myanmar last year.Sun Tyre is the first retreaded tyre manufacturer to be awarded the MS224:2005 certificate, which is for the specification for retreaded pneumatic rubber tyres for passenger and commercial vehicles.It produces under two brand names, Suntex and Winner.Meanwhile, the director general of the Department of Standards Malaysia, Fadilah Baharin, who was also present at the event, said the Government will soon introduce regulations that will make it compulsory for tyre manufacturers, both local and foreign, to be certified with the MS224:2005 certification. She declined to give further details.

Petronas talks for Energy Projects In Russia

MOSCOW, June 20 (Bernama) - National oil company Petronas is in talks with giant corporations Gazprom and Rosneft to venture into sizeable energy projects in Russia, Prime Minister Datuk Seri Abdullah Ahmad Badawi said today.He said the discussion might lead to some partnership agreements but declined to elaborate on the matter."What they have told me was that they are going to enter into is a very worthwhile investment. Big," he told a news conference after speaking at a Malaysia-Russia Business Forum here.Reports said that Gazprom Deputy CEO Alexander Medvedev had travelled to Kuala Lumpur earlier this month, where he signed initial agreement with Petronas to cooperate in energy projects worldwide.Petronas bought US$1.1 billion worth of Rosneft stock in the company's initial public offering in July last year.The Prime Minister said Russian businessmen had so far shown interest in rubber-based products in Malaysia and there was also cooperation among several Malaysian and Russian companies in the construction business and in the field of education.Speaking at the forum earlier, Abdullah said Malaysia and Russia are now working towards establishing an Investment Guarantee Agreement in their effort to expand bilateral trade and investment."We need the agreement to provide a certain level of comfort for our investors to deal with each other."My hope is that we can finalise this agreement quickly so as to encourage greater flows of investment between Malaysia and Russia," he said.The Prime Minister also expressed hope that Malaysian business houses would view Russia as an important transshipment hub to other countries in Eastern Europe by working together with Russian partners.At the same time Russian companies could look at increasing their sourcing from Malaysia as the country produces a wide variety of quality products and services.The two countries, said Abdullah could also explore the potential for cooperation in information communications technology and the aerospace industry.He said Malaysia was also doing well in the infrastructure for the commercial and industrial sector, while Russia was rich in scientific and technological resources."There is clearly much scope for creating smart partnerships and thereby increase investments between our two countries," he said.At the forum, Abdullah also witnessed the signing of a memorandum of cooperation between the LimKokWing University of Malaysia and five Russian state universities and a memorandum of understanding between Malaysian company, Muhibah Engineering, and a Russian partner.Among areas covered under the deal are internet creativity and security digital imaging for forensic and surgical operations, industry design and multimedia cooperations.Abdullah said he was happy with the outcome of the visit to Russia. The prime minister will leave for Bosnia tomorrow for a two-day official visit.

SPK-Bina Puri JV In Abu Dhabi's Largest Development Project

ABU DHABI, June 19 (Bernama) - SPK-Bina Puri JV is poised to keep the Malaysian flag flying high in this capital of the United Arab Emirates (UAE) when it starts work on Al Reem Island, the country's largest development project.The company, a joint venture between Pembinaan SPK Sdn Bhd and Bina Puri Holdings Bhd, has been awarded a contract valued at 490.779 million dirham (about RM$444 million) by Tamouh Investments, the principal developer which is developing 60 percent of the island.SPK-Bina Puri JV managing director Saiful Aznir Shahabuddin said the company's role was to design, construct and complete Phase 1 B1 and B2 of the residential, commercial and recreational development tower of Al Reem Island.The deal will incorporate a basement car park with two levels of podium and two twin towers extending to 44 levels, he said at a contract agreement signing ceremony between the company and Tamouh Investments here yesterday.The agreement is for the execution and implementation of Al Reem's Phase 1 (Marina Square) Plot 1 Zone B covering residential, commercial and recreational development.Also present at the ceremony were Malaysian ambassador to the UAE Datuk Abdul Mubin Razali, Bina Puri Holdings' executive chairman Datuk Mohamed Feisal Ibrahim, and Tamouh's chief operating officer Lee Allan Smith and project director Allan S.C. Tan.Last year, Tamouh awarded Malaysia's IJM Corporation a 1.3 billon dirham mixed development contract to construct Zone C in the Marina Square plot.Once completed, the natural Al Reem Island, located 350 metres away from Abu Dhabi's north-eastern coast, will be transformed into a complete city.The 6.5 million-square metre island will be turned into a prolific action centre which will include a business district and residential area with facilities like schools, golf courses, art galleries, lush landscapes, shopping malls, healthcare and commercial sports.Tamouh's chief executive officer Joe Ong said the Marina Square, consisting of 70 percent residential and 30 percent commercial development, will include a shopping arcade, a five-star hotel, service apartments, food and beverage outlets, mosques, clinics and eight cineplexes.He said the company was committed to completing Marina Square, the first plot of Al Reem Island.The Marina Square covers an area of 13.2 million square feet and is slated for completion in 2009 while the entire island will be fully developed within 15 years.Apart from Tamouh, two other prominent developers of the island are Sorouh and Reem Investments, each handling 20 percent of the project.Tamouh was established in 2004 as part of the Royal Group, a conglomerate of more than 30 companies based in Abu Dhabi.Since its formation, Tamouh has taken a leading role in transforming the skylines of not only the UAE, but also the Middle East, with real estate developments.SPK currently has four core businesses -- construction, technology, homes (property development), and oil and gas.The construction division has more a track record of over 10 years with more than RM1 billion of completed projects to date.Bina Puri is a construction player with more than 30 years of experience, mainly in civil engineering and building works.It started to venture overseas 10 years ago and had completed diversified multi-million ringgit construction projects which included infrastructure works like highways, airport works, waterworks, hospitals and land reclamation projects, both locally and overseas.

Ecofuture Sees Biomass Products Revenue Growing 10% This Year

PETALING JAYA, June 19 (Bernama) -- Ecofuture Bhd expects revenue contribution of its sustainable products derived from oil palm biomass materials to grow by 10 percent in the financial year ending Dec 31, 2007 due to growing overseas demand, said executive chairman Jang Lim Kuang.She told Bernama recently that 95 percent of the group's export earnings come from these products which include natural oil palm fibre strands under the Ecofibre brand, and the bio-degradeable mulching and soil erosion geotextile mat under the Ecomat brand.Another segment under Ecofuture's belt are the environment-friendly food and general packaging products, which are also bio-degradeable, toxic-free, compostable, microwaveable and made from natural palm fibre, said Jang."The potential for non-wood virgin pulp is great overseas as many countries are strict on preserving their forests, especially in the West. That's why the oil palm pulp price is high at the moment," Jang said."Of course, we are constantly upgrading our products as well."Jang pointed out that although Malaysians are not averse to using environment-friendly products, the premium price deters them."But that is not the case for Europeans and Americans who are into these things especially when it comes to food containers. As long as they can save the environment and themselves from harmful chemicals used in styrofoams and polysterene plastics, they will buy these types of products," she added.According to her, almost 80 percent of the organic shops in Kuala Lumpur are using Ecopak containers and utensils.On the Ecomat, the geotextile mat which helps retain moisture and grows grass and vegetation, Jang said it is gaining interest from West Asian customers who use it in the desert."The Arabs became interested in Ecomat for vegetation on the sand dunes after we successfully planted the mats in the desert, on the outskirts of Beijing, China," she said.She added that the group will be further promoting the Ecomat at the 2008 Olympic Games in Beijing following a government-to-government effort to promote local products there.Meanwhile, Jang said, the group aims to develop and diversify its downstream business from the existing products."Oil palm milling may be our core business, but Ecofuture wants its overall forward looking plan to be based on an environment-friendly dream. This is something I can see us doing in the future," she said.

Ranhill Bhd strikes oil

RANHILL Bhd and its joint venture partners are believed to have struck oil in the Citarum block off West Java late last Friday, according to sources familiar with the company.
It is understood that the top brass at Ranhill are pretty upbeat with the prospects at the Citarum block, with the company having struck black gold after only some 6,000 feet of drilling, which substantially beats earlier projections.
StarBiz understands that Ranhill may make an announcement pertaining to the discovery of oil as early as Wednesday to the Bursa Malaysia.
“It’s quite a big oil field, possibly in the region of 350 million barrels, which is almost five times what was initially estimated.
"It’s also quite promising in that the find comes after only about a month of drilling,” a source familiar with the ongoings at Ranhill said.
In mid-May Ranhill announced to the Bursa Malaysia that drilling works had started in Citarum and had indicated that the oil well would be drilled to a depth of some 10,300 feet with prospects estimated to be about 75 million barrels.
Ranhill’s wholly owned unit Ranhill Energy Sdn Bhd, via West Java Energy Pte Ltd, controls as much as 60% of Bumi Parahyangan Ranhill Energia Citarum Pte Ltd, the joint-venture company which has been given the mandate to conduct the drilling and exploratory works.
Other partners in the jointventure company are Mitra Energia Citarum Ltd and Bumi Parahyangan Energi Pte Ltd, with 20% equity each. Mitra Energia Citarum is a unit of Sound Oil Plc.
Ranhill is controlled by its president and chief executive Tan Sri Hamdan Mohamad who has as much as 54% equity held via his private vehicles Ranhill Corp Sdn Bhd and Lambang Optima Sdn Bhd.
Investor interest in Ranhill picked up after it announced the start of drilling works in Citarum, Indonesia.

Airbus Wins $27 Billion in Qatar, US Airways Orders

June 18 (Bloomberg) Airbus SAS, struggling to hold its lead over Boeing Co., won $27 billion in orders and commitments from Qatar Airways and US Airways Group Inc., including agreements for the new A350 widebody plane.
Qatar's order includes 80 A350 XWB airliners and three double-decker A380s, Airbus Chief Executive Officer Louis Gallois said today at the Paris Air Show. US Airways said at the show it plans to order 92 planes, including 22 A350s, 60 planes of the A320 single-aisle family and 10 A330s.
The A350 deals are a boost for Airbus in the most lucrative segment of the $60 billion-a-year commercial aircraft market, medium-sized long-range jets. Boeing has sewn up 584 orders for its 787 Dreamliner, which enters service in 2008. Airbus had 13 orders for the A350 before the start of the show.
``With Boeing having orders for about 600 Dreamliners, Airbus still has a lot of ground to make up,'' Craig Fraser, a fixed-income analyst at Fitch Ratings Ltd., said at the show. ``Given Qatar's prior commitment to the plane, it's not entirely a surprise. But it definitely helps the A350 program.''
The Qatar A350s are worth $16 billion at catalog prices. The three superjumbos take the total order value to $17 billion at list prices.
Airbus also won a commitment today from Emirates, the largest Mideast airline, to buy eight A380s valued at $2.55 billion. A final purchase would take Emirates' total order for the double-decker plane to 55.
A380 Savings
Emirates expects the A380 to bring fuel savings of between 15 percent and 18 percent compared with a Boeing 777-300, President Tim Clark said.
The carrier also plans to buy 100 mid-sized, long-range planes and will choose between the A350 and Boeing's rival 787 ``in the next few months,'' Chairman Sheikh Ahmed bin Saeed al- Maktoum said.
The so-far unfinished specifications of the A350 were not a concern because Qatar had been an ``instrumental'' Airbus customer in shaping the new plane, Chief Executive Officer Akbar al-Baker said at a press conference. ``The aircraft definition is very tailor-made for Qatar Airways.
``We're going to add two new destinations, Geneva and New York,'' closely followed by new services to Washington, al-Baker said. The carrier will take delivery of its first A350 in 2013, Airbus said. The new planes will eventually replace the A330s in Qatar's current fleet.

Airbus to Slash Cost by EU300 Mil in 2007

June 16 (Bloomberg)Airbus SAS will reach a goal of cutting costs by 300 million euros ($401 million) in 2007 under the so-called Power8 plan after its first loss last year because of A380 delays, Chief Executive Officer Louis Gallois said.
``We're completely on track for the savings of Power8 in 2007,'' Gallois said yesterday at a briefing for journalists before the Paris Air Show, which starts June 18.
Airbus, the world's largest maker of commercial planes, plans to slash costs by 2.1 billion euros annually by 2010, eliminating 10,000 jobs and selling or finding partners for six factories. The company needs the savings to help pay for the development of a new 270- to 350-seat aircraft to compete with Boeing Co.'s 787 Dreamliner.
European Aeronautic, Defence & Space Co., the owner of Airbus, expects two-year delays on the 555-seat A380 will reduce earnings by 4.8 billion euros over the next four years. The company has orders for 160 of the superjumbo aircraft. Boeing has 584 orders for the Dreamliner, which will enter service next year, while Airbus has only 13 for its A350 XWB, scheduled for delivery five years later.
Gallois said higher research costs and an increase in the euro against the dollar mean the 300 million-euro savings won't translate into higher profits. The company has forecast a substantial loss for this year. Airbus, based in Toulouse, France, has about half its costs in euros while planes are priced in dollars.
The dollar has lost 40 percent of its value against the euro since December 2000, when Airbus committed to building the A380. Gallois said every 10-cent decline in the dollar against the euro costs Airbus 1 billion euros in profit a year. He indicated additional savings may be needed.
Euro Costs
``The problem is that our costs are in euros,'' he said. ``We can't stay immobile if we have in front of us a changing environment. We will have to take decisions.'' Asked to specify what that would mean, he responded, ``I prefer not to say.''
Tom Enders, EADS Co-CEO, said at the briefing that that while 60 percent of sales come from outside Europe, the percentage of materials sourced from outside the region is less. About 76 percent of suppliers come from Europe, 21 percent from North America and 3 percent from the rest of the world, he said.
``No doubt about it: This will change as well,'' Enders said. ``We'll need strong industrial footprints, in development and in manufacturing in other parts of the world.''
An example of the trend is Airbus's plan to build an assembly line for single-aisle A320s in China. The planes compete with Boeing's 737 model and both are favored by low-cost airlines.
MBDA Purchase?
Airbus expects to choose a short-list of potential buyers or partners for six plants by the end of July. The factories for which Airbus seeks partners or buyers are in Laupheim, Varel and Nordenham in Germany, in St. Nazaire-Ville and Meaulte in France, and Filton in the U.K.
Gallois, who also holds the title of EADS co-chief executive, said the region's largest aerospace company may be interested in buying out its partners in MBDA, a missile-making venture in which it has 37.5 percent. BAE Systems Plc has 37.5 percent and Italy's Finmeccanica SpA has 25 percent.
``MBDA is a core business for us,'' he said.
Sales at MBDA, the world's second-biggest missile maker after Raytheon Co., rose 3.1 percent last year to 3.3 billion euros after buying Lenkflugkoerpersysteme AG, whose products include the Taurus missile Germany uses on Eurofighter jets.
The venture also makes Aster missiles deployed on Type 45 destroyers built for the U.K. Royal Navy, the Meteor missile for airborne air defense and the Storm Shadow, a conventionally armed, standoff air-to-ground missile.
BAE Won't Sell
BAE said yesterday the stake isn't for sale.
``We do not generally comment on matters of this kind,'' said spokesman Guy Douglas in an e-mailed response to questions. ``However, I can say that we have no plans to sell our stake in MBDA at this time.''
A spokesman for Finmeccanica, who declined to be identified, said the company didn't plan to sell its stake MBDA.
Gallois also said when asked that EADS isn't currently looking to sell its 50 percent stake in turbopropeller plane maker Avions de Transport Regional. Finmeccanica owns the other 50 percent.
Gallois said that only four years ago ATR's owners were wondering whether to shut down the planemaker for lack of orders. Since then, rising oil prices have produced a flood of orders because turbopropeller planes are more fuel efficient than regional jets.
Asked whether EADS might look to sell its 46 percent stake in Dassault Aviation, a maker of fighter jets and corporate planes, Gallois said that's not planned.

Monsanto Boosts 2007 Profit Forecast on Corn Seeds

June 15 (Bloomberg) -- Monsanto Co., the world's biggest seed producer, boosted its profit forecast for fiscal 2007 as rising demand for ethanol and animal feed led to a surge in U.S. corn planting. The shares rose to a record.
Profit in the year ending Aug. 31 will be $1.75 to $1.80 a share, excluding some items, compared with a previous forecast of $1.60 to $1.65, St. Louis-based Monsanto said today in a statement. Earnings were expected to be $1.69, the average estimate of 13 analysts surveyed by Bloomberg.
Monsanto said it increased sales of genetically modified corn seed and grabbed market share from competitors including DuPont Co. U.S. corn farmers, the world's largest growers of the crop, planted 15 percent more acres this year as the price of the grain jumped to a 10-year high. Demand also rose for Monsanto's Roundup herbicide, the company said.
``We're having extraordinary performance in an extraordinary year for agriculture,'' Chief Executive Officer Hugh Grant said in the statement.
For the third quarter ended May 31, profit was about $1 a share, including a 5-cent gain from the resolution of tax audits, Monsanto said in a preliminary earnings statement. Ten analysts surveyed by Bloomberg had estimated 77 cents on average.
Shares of Monsanto rose $2.32, or 3.7 percent, to $65.63 at 11:35 a.m. in New York Stock Exchange composite trading, after earlier rising as much as 7.2 percent to a record $67.86. Before today, the stock had gained 61 percent in the past year.
Market-Share Gain
Much of the increased forecast reflects Monsanto's growing market share for gene-modified corn, spokesman Glynn Young said.
The company may have exceeded its April market-share forecast as competing producers struggled to meet surging demand, said Soleil Securities analyst Mark Gulley, who recommends buying the shares. Monsanto had previously forecast a gain of 3 percentage points in market share.
``It's really a corn story,'' Gulley said in a phone interview. ``The ag market is just really good this year.''
Market-share gains boost profit more than a larger corn crop, said Jason Dahl, who manages $1.2 billion including Monsanto shares at the Victory Capital Focused Growth Fund. When farmers plant more corn, they may buy fewer soybean or cotton seeds, so Monsanto might only trade sales of one for the other, he said.
``We'd much prefer they gain a point of overall market share than have more acres planted,'' Dahl said in a phone interview. ``They got both.''
Excluded Items
The full-year forecast excludes the acquisition of cottonseed producer Delta & Pine Land Co., which will reduce earnings ``moderately'' because of seasonal losses traditional during the fourth quarter, Monsanto said.
Also excluded are pending divestitures of the Stoneville and NexGen cottonseed units, including the write-off of in- process research and development. The Department of Justice is requiring the divestitures as a condition of the Delta & Pine Land acquisition. Monsanto cannot detail the costs until the divestitures are approved, Young said.
The full-year tax rate may be as low as 29 percent, compared with a prior estimate of 30 percent, Monsanto said.
Banc of America Securities analyst Kevin McCarthy said he is reviewing his per-share earnings estimates of 79 cents for the third quarter and $1.65 for the year.
``Favorable fundamental factors accounted for the lion's share of the upside,'' McCarthy in a report. He rates the shares ``neutral.''

Hai-O Doubles Profit, Mulls Transfer To Main Board

KUALA LUMPUR, June 15 (Bernama) -- Pu-Er tea was a star-performing product for Hai-O Enterprise Bhd as the group doubled its pre-tax profit to RM30.608 million for the financial year ended April 30, 2007, from RM15.126 million a year earlier.Revenue rose 28.98 percent to RM189.346 million from RM146.798 million previously, which group managing director Tan Kai Hee attributed largely to tea sales, coupled with aggressive promotions by its multilevel marketing division.Regarded as a wonder tonic with numerous health benefits ranging from removing toxins to improving blood circulation, Pu-Er tea contributed RM10 million in sales for financial year 2007.Tan told Bernama in an interview here today that Pu-Er tea is the only tea with an investment value as its flavour improves with time just like wine and is a star tea product in China.For the fourth quarter ended April 30, 2007, Hai-O turned in a pre-tax profit of RM10.187 million against RM2.856 million in the same quarter in 2006, while revenue rose 63 percent to RM56.72 million from RM34.89 million.Looking ahead, Tan said: "We are debt-free and cash-rich and it's all systems go for us to be transferred to the Main Board in two to three months' time once all the procedures are completed."The group is mainly involved in the wholesaling and retailing of traditional Chinese medicine, wine and tea products.Tan said Hai-O, which also operates modern Chinese traditional clinics, would be able to expand faster when listed on the Main Board.Established in 1975, Hai-O, which has become a household name offering a wide range of Chinese medicine and healthcare products, was listed on the Second Board in 1975.Tan also said that the strengthening of the ringgit against the US dollar had reduced import purchase costs, thus improving the group's profit margins.Looking head, he said Hai-O would continue to benefit from the current buoyant economy with the expected improvement in domestic consumption and trading activities.Together with the company's continuous brand-building campaign, new product launches, marketing promotions and distributors' sale incentives programme, Tan said Hai-O is optimistic of continuing to remain profitable for the next financial year.

Kumpulan Perangsang likely to win Langat 2 job

PETALING JAYA: Kumpulan Perangsang Selangor Bhd (KPS) is the frontrunner for the project to build the Langat 2 reservoir and water treatment plant that will filter and chlorinate raw river water to be transferred from Pahang to Selangor.
Water Asset Management Co (Wamco) CEO Teo Yen Hua was reported as saying on Wednesday that the Pahang-Selangor inter-state water project would be open for tender in the second half year.
When the raw water is piped to Selangor, it would be stored and treated at the proposed Langat 2 facility, which would cost about RM2.5bil to construct, according to reports.
An analyst, who declined to be named, pointed out that Energy, Water and Communications Minister Datuk Seri Dr Lim Keng Yaik said last month that no more water concessions would be given to the private sector and that state governments would lead the development of water supply projects.
In Selangor, the state-owned corporation engaged in this sector is KPS, the analyst said.
KPS executive chairman Datuk Abd Karim Munisar could not be reached for comment yesterday. The company is holding its AGM today.
The company’s direction is clear. It said in its mission statement that it aimed to be a leading integrated provider of infrastructure and utility services.
KPS subsidiary, Konsortium Abass Sdn Bhd, is the concessionaire for the Sungai Semenyih Water Supply Scheme and owns stakes in several associate companies engaged in the same sector.
A heads of agreement was, in fact, signed between KPS and the Selangor government in 2003, under which the former was appointed the main contractor for Langat 2.
That did not, however, amount to a contract award, which is still being awaited from the state government due to an earlier deferment of the inter-state project.
KPS is confident of being awarded Langat 2. In its latest annual report, managing director Datin Paduka Juma’ah Mokhtar said the company “remains a forerunner in securing participation in the much anticipated Langat 2 project which complements the Pahang-Selangor Interstate Raw Water Transfer Scheme.”
The inter-state scheme involves transferring water from rivers in Pahang through pipes to be laid under the Main Range through a 44.6km transfer tunnel to Selangor.
KPS had earlier said it had completed the engineering design and ground survey works for the Langat 2 project.
Selangor Mentri Besar Datuk Seri Dr Mohd Khir Toyo told the media in March that the state had completed plans on aligning water pipes in Hulu Langat for the transfer of water from Pahang, and was working on the costing for the water treatment plant.
The state government, he added, was also negotiating with Pahang for the rates Selangor would have to pay for the raw water.

Government Is Committed To Ensure Synergy Drive Merger Success

KUALA LUMPUR, June 15 (Bernama) -- The government is committed to ensuring the success of mammoth mergers in the country's corporate sector, such as the one spearheaded by Synergy Drive Sdn Bhd, to create efficiency and bring about overall benefits to the economy.Prime Minister Datuk Seri Abdullah Ahmad Badawi said Thursday night the government has given its blessings for the plantation merger exercise and "is as keen as anybody else on what is happening (to the Synergy Drive exercise)".He said mergers are not an easy subject and not an easy task, especially when it involves three big companies."They are working at it, but I really want to see that with this merger, Synergy (Drive) will be truly a company that can be efficient, competitive and can deliver what is expected of it. And shareholders will be very happy," he said during a question-and-answer session after delivering a speech at the Kuala Lumpur Business Club dinner here.Synergy Drive is the special purpose vehicle set up by the CIMB Group to facilitate the merger of three state-run companies - Sime Darby Bhd, Golden Hope Plantation Bhd and Kumpulan Guthrie Bhd - to create the world's largest oil palm plantation company.Abdullah said the CIMB Group, acting as the marriage broker, will have a tough job to marry the three companies, "but we (the government) are committed to see that this merger takes place."Abdullah also said the government is willing to consider extending the Iskandar Development Region's incentives package to other regions in the country as well.On having sufficient talented people to meet Malaysia's needs, Abdullah said both the government's and the private sector's short term approach is to allow for the presence of foreign talent."If you are short of (local) talent, you must do that. There is no other choice," he said when elaborating what he had said in his speech earlier, about not "overly restricting" the entry of foreign skilled workers.Abdullah said the government is always trying to improve the education system at all levels and constantly encourages universities to work closely with the private sector so that market requirements can be satisfied.The existing work force should also undergo retraining to prepare for new responsibilities as they move up the corporate ladder.Under the new arrangement, he said, companies which have set up their operations in Malaysia can bring in their own executives from abroad to overcome the problem of getting the "right kind of (local) talent."However, he said, the foreign-backed corporations are also required to empower the locals with the necessary skills to help generate homegrown talent."Bring them from your countries here, but ask them to train the local people so that they too will be able to perform well and take over their (foreigners') places," he said.Abdullah said the government has also embarked on programmes to entice Malaysians working abroad to return and serve the nation."We have offered a number of incentives and some have shown interest in coming back. They know that the situation in Malaysia today is very different from what it was before."They used to think opportunities for career advancement are better overseas, but today they think it is better here," he said.He cited as an example a Malaysian doctor currently based in Canada who wants to return after he saw the state-of-the-art facilities at Putrajaya Hospital.

IDR is looking For More Foreign Investors

KUALA LUMPUR, June 14 (Bernama) -- The Iskandar Development Region (IDR) in southern Johor is seeking to attract more investors to broaden foreign participation in the project.Tun Musa Hitam, one of the Iskandar Regional Development Authority (IRDA) advisory council members, said IDR was looking for potential investors from the Middle East, China and India."We are looking for possible investors from all over the world. Besides Singapore, we have identified the Middle East, China and India because these are the areas which we feel have got the most to offer," said the former deputy prime minister after the British Malaysian Chamber of Commerce (BMCC) annual general meeting here on Thursday.IRDA is the statutory body responsible for determining the direction, policies and strategies in relation to developments in IDR.

Energy City, Paradigm Consortium To Seal MoU For US$2.6 Billion Project

KUALA LUMPUR, June 13 (Bernama) -- Qatar-based Energy City Qatar Corporation will seal a memorandum of understanding (MoU) with Paradigm Consortium of Malaysia for the development and construction of a US$2.6 billion energy city.The MoU stands to create a non-binding framework of co-operation under which the parties will explore potential collaborative opportunities with the Energy City Qatar project, said a statement here, today.Energy City Qatar, which covers an area of approximately 1.2 million square metres, is part of Qatar government's drive to create a comprehensive home for the Gulf state's energy industry.Paradigm Consortium is a group of world class designers, master planners, contractors, facility management companies and developers.

Celcom reduce Its Capital to Inject RM730 Million Into TM Unit

KUALA LUMPUR, June 12 (Bernama) -- Telekom Malaysia Bhd (TM) subsidiary Celcom (Malaysia) Bhd is to reduce its issued and paid up capital by RM530 million to RM1.237 billion from RM1.767 billion.Celcom also wants to cancel its share premium account of RM199.74 million, said TM in a statement today."Both the RM530 million and RM199 million, totalling RM730.11 million (distribution sum) will be distributed to the wholly owned subsidiary of TM, Telekom Malaysia Enterprise Sdn Bhd," said TM.TM said it feels Celcom has a capital base that is in excess of future operating requirements and financial obligation.So Celcom is able to return part of the shareholder's investment, "having taken into consideration the best interest of TM Group going forward."The distribution sum will enable TM to finance its capital requirements and future investments, thus fully maximising the use of cash within TM Group," it said.

Bank Negara Probes Fund For Suspected Illegal Activities

KUALA LUMPUR, June 12 (Bernama) -- Bank Negara Malaysia is investigating AB Fund for suspected illegal deposit taking and money laundering activities.The activities are offences under the Banking and Financial Institutions Act 1989 and Anti-Money Laundering and Anti-Terrorism Financing Act 2001 respectively, the central bank said.Bank Negara, in a joint operation with the Securities Commission (SC) and the police yesterday, conducted a raid on AB Fund for suspected illegal activities via its websites, www.abfund.us and www.abfundtrader.biz."AB Fund is not licensed by the SC to provide investment advice that is related to securities or futures activities," Bank Negara and the SC said in a joint statement today.They said AB Fund was also not licensed to carry out fund management activities, as stipulated under the Securities Industry Act 1983 and Futures Industry Act 1993.Upon conviction, an illegal deposit-taking operator can be punished with imprisonment of up to 10 years or fine up to RM10 million or both, Bank Negara and the SC said.In the case of a continuing offence, the operator shall be liable to be punished with a daily fine up to RM100,000 for each day the offence continues, they said.For a money laundering offence, a person convicted shall be liable to a fine up to RM5 million or to imprisonment for a term up to five years, or both, Bank Negara and the SC said.Any person convicted of providing investment advice related to securities or futures activities, or carrying out fund management activities without a licence, faces a fine of up to RM1.0 million or imprisonment not exceeding 10 years, or both, they added.Bank Negara and the SC said they would take all measures against illegal investment activities, including enforcement action against operators and agents of illegal investment websites."To safeguard public interests, members of the public are cautioned to place deposits and invest with parties licensed by the authorities so that they are accorded the protection under the country's banking and securities laws," they said.A list of all licensed parties is available on the SC website at www.sc.com.my and the Bank Negara website at www.bnm.gov.my.Bank Negara and the SC urged the public to be vigilant when investing with local or foreign companies offering investment opportunities."Members of the public are advised not to fall prey to unscrupulous parties who promise investors with seemingly high-return investment activities," they said.They also advised members of the public to alert the authorities immediately of any suspicious websites, e-mails or information on the Internet relating to deposit taking activities and investment advice and services.

U.S. Treasuries Decline as Investors Abandon Rate-Cut Forecasts

June 11 (Bloomberg) U.S. Treasuries fell, adding to five weeks of losses, as Federal Reserve Bank of Cleveland President Sandra Pianalto said inflation is ``uncomfortably high.''
Fourteen of the 21 primary dealers that underwrite the government's debt, including Merrill Lynch & Co. and Goldman Sachs Group Inc., boosted their year-end estimate for the central bank's target rate or the 10-year note's yield after the Labor Department reported the economy added more jobs than forecast in May. Yields on 10-year notes exceed two-year securities by 15 basis points, the most since May 2006.
Investors have seen ``a transformation in terms of real yields and a reconfiguration of the yield curve,'' said Bill Gross, who manages Pacific Investment Management Co.'s $103 billion Total Return Fund. The Fed will continue to emphasize inflation risks, and a signal of ``all clear probably doesn't happen until 1.6 percent on the core'' inflation rate, he said.
The yield on the benchmark 10-year note rose 5 basis points, or 0.05 percentage point, to 5.16 percent at 9:04 a.m. in New York, according to bond broker Cantor Fitzgerald LP. The price of the 4 1/2 percent note due May 2017 fell 3/8, or $3.75 per $1,000 face amount, to 94 30/32. Yields move inversely to prices.
The two-year note yield gained almost 2 basis points to 5.01 percent.
`Uncomfortably High'
The Fed ``has described our core rate of inflation as being uncomfortably high and has stressed the importance of further moderation in inflation,'' Pianalto said today at a conference in Dublin. The Fed's Open Market Committee is likely to keep its target rate for overnight loans between banks at 5.25 percent when it meets on June 28, according to the median forecast in a Bloomberg News survey of economists.
The Commerce Department's price gauge tied to spending patterns and excluding food and energy costs rose 2 percent from April 2006, according to data released June 1. The index hasn't been below 2 percent since March 2004.
U.S. Treasuries underperformed their European peers. The extra yield that investors demand for holding the 10-year U.S. note over the equivalent maturity German bund rose to 59 basis points from 53 basis points on June 8.
`Market Is Fearful'
``The market is fearful that not only is the Fed not going to cut rates, but that it may have to raise rates,'' said Nick Stamenkovic, a strategist at RIA Capital Markets Ltd. in Edinburgh. ``The Treasury yield has further to rise. I think at least it will be 5.25 percent, if not 5.50, for the 10-year note before we see investors buying again.''
Options prices on fed funds futures on June 8 showed about 44 percent of investors are betting the Fed's benchmark rate will rise to 5.5 percent and 39 percent wagering on at least one cut by year-end. On May 1, they showed no expectations for an increase.
Fed policy makers kept the overnight lending rate between banks at 5.25 percent at their last seven meetings.
``The current levels actually present a good buying opportunity,'' said Dariusz Kowalczyk, chief investment officer at CFC Seymour Ltd. in Hong Kong. ``I don't think that the gains, especially at the long end of the curve, have been justified fundamentally, so in the medium term it's probably a very attractive level to jump back into the market.''
Fund managers who oversee $1.34 trillion said Treasury and agency securities fell to 26 percent of their holdings from 36 percent as of May 18, according to a survey by Ried Thunberg & Co., a Jersey City, New Jersey-based research firm.
``Ten-year yields at 5.25 percent would be too high,'' said Shun Totani, who helps manage about $600 million of non-Japanese bonds at Asahi Life Asset Management Co. in Tokyo. He bought 10- year Treasuries on June 8 and may add to his holdings should yields rise above 5.15 percent again.

Fund tells Barclays to drop its ABN bid

Atticus Capital, an activist hedge fund with a 1 per cent stake in Barclays, has called on the UK bank to drop its agreed bid for ABN Amro, warning it will vote against it if Barclays proceeds.
In a June 1 letter to Marcus Agius, Barclays’ chairman, Timothy Barakett, Atticus’s chairman, and David Slager, vice-chairman, wrote that the hedge fund viewed the all-paper deal as an offer to buy “an inferior business in an auction at inflated prices”. They said Atticus would seek to persuade other investors, and that further efforts to buy ABN would “harm management’s credibility and anger shareholders”.
Barclays said: “The views expressed by Atticus are not representative of the feedback that we have received from shareholders who remain supportive of our strategy.” It said the bank had met more than 50 shareholders.
Separately, it has emerged that several of Barclays’ biggest UK-based shareholders are warning the bank not to raise the price it is prepared to pay for ABN. Holders of more than 10 per cent of its shares privately say that although they are not opposing the bid at current levels, they will do so if Barclays raises its offer for the Dutch-based group.
The growing shareholder disaffection throws doubt over Barclays’ ability to complete the deal because it might need to improve its offer to beat the €71bn rival cash-and-shares approach from a consortium of banks led by Royal Bank of Scotland. Barclays has offered €64bn for ABN, payable entirely in shares.
However, the rival bid is dependent on the ability of the consortium, which includes Santander of Spain and Fortis, the Belgo-Dutch group, to nullify or amend a deal that ABN struck with Bank of America to sell LaSalle, its US subsidiary, for $21bn. That decision is subject to a Dutch supreme court ruling in July.
Barclays has been meeting its shareholders in recent weeks to discuss the deal and some have privately expressed support. “We do not think their [Barclays’] assumptions about synergies are particularly aggressive,” said one large investor.
Separately, Mr Agius and Bob Diamond, chief executive of Barclays Capital, met Atticus last week to try to persuade it of the merits of its deal.
Mr Slager said that those meetings had not changed his mind. Atticus would like Barclays to invest in its two “best in class” businesses, BarCap and BGI, or else return excess capital to shareholders.
The criticism mirrors some of the concerns of Barclays’ UK-based shareholders.
“If Barclays raises the bid it will look desperate,” said a top 10 shareholder. “RBS has a much stronger story.”
Another said: “There is a lot of disaffection for Barclays’ bid. It doesn’t have the obvious cost and revenue overlaps. The consortium is in a much better position.”

Oil Price May Rise To US$70-US$80 Per Barrel In Medium Term, Says ENOC

KUALA LUMPUR, June 11 (Bernama) -- Oil prices may skyrocket to US$70-US$80 per barrel in the medium term if countries do not stop the continued increase in consumption, an official of the Emirates National Oil Co Ltd said today.Hussain Sultan, ENOC's group chief executive, said that as a result, "world economies will once again seriously have to do their sums again" as the "world is not very comfortable with oil being at around US$60-US$70 per barrel."With the Organisation of Oil Exporting Countries (OPEC) facing a decline in production capacities, the world cannot afford to keep consuming oil at increasing levels, he said in his paper on "Changing Horizons of Oil - the ENOC Experience" at the 12th Asia Oil and Gas Conference 2007 here.He said that Goldman Sachs' prediction two years ago that prices would soon touch US$100 per barrel did not come true mainly because under the present conditions, "that level is not sustainable."He also expressed concern with the rapid expansion in the economies of China and India where between them, the world will need an additional five million barrels per day by 2010 over today's consumption.

Stamford To Gain RM0.383 Mln From Disposal Of SCSSB Shares

KUALA LUMPUR, June 9 (Bernama) -- Stamford Group will gain RM0.383 million from the proposed disposal of eight million ordinary shares of its wholly-owned subsidiary, Stamford College (Selangor) Sdn Bhd (SCSSB), to Quill Construction Sdn Bhd.The proceeds from the proposed disposal will be utilised by the group for working capital purposes and exploring new business opportunities.The disposal, expected to be completed by the financial year ending Dec 31, 2007, will see Quill taking full management control over SCSSB and Stamford ceasing its equity interest to 20 percent.Stamford College Bhd executive chairman Datuk Abdul Halim Abd Samad said the proposed disposal would enable Stamford to diversify its earnings stream via joint venture to develop the land (under SCSSB) for mutual benefits."The joint-venture is based on a win-win situation. We are very happy, the shareholders are happy with our decision," he told Bernama when met at the company's extraordinary general meeting (EGM) here.Approval for the proposed disposal has been obtained from the shareholders during the EGM, said Abd Halim.On May 4, 2007, Stamford College had entered into a sale and purchase agreement (SPA) with Quill, a turnkey interior design contractor and consultants company, for the sale of the shares for RM16.0 million.SCSSB was incorporated in Malaysia in 1993 as a private limited company with an authorised share capital of RM10 million comprising 10 million shares of RM1.00 each.It was principally engaged in the provision of academic, tertiary, professional courses and management service activities. However, SCSSB has been dormant since the date of its incorporation except for rental income collection from its land in Petaling Jaya since November 2005.Its current use is being rented out to a third party for use as an open-air car park for a rental of RM12,500 per month. With the completion of the shares disposal, the land is intended to be developed into office blocks for lease rental or any other development which shall be determined by Quill.

Smart Tunnel Toll Collection Begins Midnight Friday

KUALA LUMPUR, June 10 (Bernama) -- Toll collection at the Stormwater Management and Road Tunnel (SMART) motorway will start at midnight on Friday and the rate will be announced shortly, Works Minister Datuk Seri S. Samy Vellu said."I'll announce the toll rate at a news conference in one or two days," he told reporters after opening the Hindu Dharma Mamandram national delegates' meeting in Batu Caves here Sunday.Asked whether the government would guarantee that the toll rate would be reasonable and would not burden the public, Samy Vellu said they should understand that the cost of building a road tunnel was higher than that of a normal highway."I can't guarantee you that there'll be a reasonable toll because it cost a lot of money to build the tunnel," he said.The RM1.9 billion project between Jalan Sungai Besi and Jalan Ampang includes a 3.3km road tunnel costing RM650 million. Road users have been using the motorway for free since May 14.Samy Vellu said the public had the option of using the road tunnel for speedier travel or other existing roads.The 9.7km SMART project is meant to divert rain water away from the city centre to prevent flash floods and alleviate traffic congestion, especially for those coming into the city from the south.

Crude Oil Tumbles More Than $2 on Signs of Weaker Demand Growth

June 8 (Bloomberg) -- Crude oil plunged more than $2 a barrel from a nine-month high in New York on concern that rising interest rates may lead to slower growth in demand.
U.S. Treasury 10-year notes are poised for their biggest weekly decline in more than a year on concern economic growth and inflation will encourage central banks to raise interest rates. Cyclone Gonu is dissipating after sweeping across coastal Oman and Iran. Oman's ports opened today for partial operations, Gulf Agency Co. reported.
``The most recent economic data points to a slowdown, bond yields are surging and there's a risk of additional rate increases,'' said Eric Wittenauer, an energy analyst at A.G. Edwards & Sons Inc. in St. Louis. ``A weaker economy points to weaker fuel demand.''
Crude oil for July delivery plunged $2.17, or 3.2 percent, to settle at $64.76 a barrel on the New York Mercantile Exchange. It was the lowest close since May 31. Yesterday's close was the highest since Sept. 7. Prices fell 0.5 percent this week and are 8 percent lower than a year ago.
Federal Reserve Bank Chairman Ben S. Bernanke said on June 5 that while inflation will probably ``moderate gradually over time, the risks to this forecast remain to the upside.'' Cleveland Fed President Sandra Pianalto said on June 6 that prices are rising too quickly. The European Central Bank increased its main interest rate to 4 percent on June 6.
``With talk of rising interest rates finally killing the stock market, traders are justifiably concerned about energy demand growth,'' said Michael Fitzpatrick, vice president for energy risk management at Man Financial Inc. in New York.
Cyclone Gonu
Gonu was the strongest storm to hit the Arabian Peninsula since records began in 1945, the Associated Press said. Earlier this week, it was a Category 5 storm, the highest rating on the Saffir-Simpson scale, as it churned across the northern Arabian Sea toward the Persian Gulf.
``There was some concern early in the week that Gonu would hurt Oman's oil industry and move toward Saudi fields,'' said Rick Mueller, an analyst with Energy Security Analysis Inc. in Wakefield, Massachusetts. ``Gonu has dissipated without causing any damage to the energy infrastructure.''
Brent crude oil for July settlement tumbled $2.62, or 3.7 percent, to $68.60 a barrel on the London-based ICE Futures exchange. It was the lowest settlement since May 31.
West Texas Intermediate crude oil, or WTI, traded at a record discount against Brent, produced in the North Sea. Brent has been higher than WTI this year because of rising crude-oil supplies in Cushing, Oklahoma, the delivery point for New York futures, and threats to supply from Nigeria and Iran.
New Markers
``WTI is normally higher than Brent but that's changed because the supply of crude at Cushing has surged due to refinery outages,'' said Frank Verrastro, director of the Center for Strategic and International Studies energy program in Washington. ``I think we are shifting to new markers. Both Brent and WTI are declining areas.''
The North Sea and Texas are mature oil-producing regions where output is forecast to fall. Norway and the U.K., the biggest North Sea producers, pumped 4.35 million barrels a day last year, down from more than 5.4 million barrels a day in 1996, according to the U.S. Energy Department. Texas pumped 1.06 million barrels a day in 2005, down from 2.55 million in 1980.
U.S. gasoline inventories rose 3.51 million barrels to 201.5 million barrels last week, the biggest gain since January, the Energy Department reported June 6. Supplies in the week ended June 1 were 5.3 percent below the five-year average for the period, the department said.
Sharp Rebound
``If last week's numbers are any indication, we will be seeing a sharp rebound in gasoline inventories in the weeks to come,'' said Antoine Halff, a vice president and head of energy research at Fimat USA Inc. in New York. ``This is a welcome development because of how tight inventories have been.''
Refineries operated at 89.6 percent of capacity last week, a 1.5 percentage point drop from the week before, the department said. The amount of crude-oil processed in distillation units fell 1.6 percent. U.S. refineries usually maximize output of the fuel at this time of year to meet summer demand.
``This week's report shows that crude runs aren't the whole story,'' Halff said. ``The big gain in gasoline inventories suggests that secondary units are coming back strongly.''
The driving season, when U.S. consumption peaks as Americans take to the highways for summer vacations, lasts from the Memorial Day weekend in late May to Labor Day in early September.
``I think the gasoline market has seen its day,'' Wittenauer said. ``Gasoline should lead everything lower, which is normal after we get through Memorial Day.''
Gasoline for July delivery in New York tumbled 6.56 cents, or 3 percent, to $2.1271 a gallon. Futures are down 5.2 percent this week and touched $2.105, the lowest since April 20.

Private Investment Has Rebounded, Says Nor Mohamed

KUALA LUMPUR, June 8 (Bernama) -- Malaysia no longer needs to pump prime the economy as private investment has rebounded, Second Finance Minister Tan Sri Nor Mohamed Yakcop tells US rating agencies."Our net foreign direct investment (FDI) inflows are higher than most peers in Asia and the private sector is accounting for 46 percent of total investment," Nor Mohamed said."We don't think the ratings reflect the improvements on this front," he said in his opening remarks at a meeting with rating agencies in New York Friday.The meeting was part of the government's efforts to familiarise rating agencies with positive developments in Malaysia in recent years. Text of the minister's speech was made available by the Finance Ministry.Nor Mohamed said rating agencies have previously linked fiscal deficits to the government's need to pump prime the economy."Our decision to continue running sustainable deficits has been taken from a position of strength. Our economy is transitioning towards a services and higher value-added manufacturing base," he said.Under the Ninth Malaysia Plan (9MP) development allocation, the government has chosen to target development expenditure to help accelerate the transition, including in the development of human capital (23 percent), economic services (41 percent) as well as in health and other social facilities and amenities (17 percent), he pointed out.According to Nor Mohamed, the most obvious strength of Malaysia is its external balance sheet with both the public sector and the country being large net external creditors."We run enormous current account surpluses and have ample external resources that can be drawn upon in times of economic stress," he said."Our external debt accounts for 27 percent of exports, while our debt service ratio stands at 4.8. Our international reserves is seven times our short-term external debt," he added.

Bank Negara's Reserves Rise To RM339.5 Bln

KUALA LUMPUR, June 7 (Bernama) -- Bank Negara Malaysia's international reserves increased to RM339.5 billion (US$98.4 billion) as at May 31, 2007, from RM316.3 billion (US$91.6 billion) as at end of April.The current reserves position is sufficient to finance nine months of retained imports and is 10 times the short-term external debt, the central bank said in a statement today.

RM3.5 Billlion ETFs To Be Floated On Bursa Malaysia By End 2007

KUALA LUMPUR, June 7 (Bernama) -- The cumulative RM3.5 billion worth of exchange traded funds (ETFs) are on track to be floated on Bursa Malaysia by end of this year, Deputy Finance Minister Datuk Dr Awang Adek Hussin said Thursday."We are in the process of formalising the introduction of these ETFs in the market. We have to do a lot of proprietary work," he told reporters at the prospectus launch ceremony of the FBM30ETF, the country's first ETF, by AmBank Group here.He said two joint working groups have been established with the task, among others, of putting up a timetable to facilitate the launch of at least one ETF before the end 2007 target as set out earlier.Second Finance Minister Tan Sri Nor Mohamed Yakcop heads the first working group while Awang Adek leads the second group, with both groups having top management members from government-lined companies (GLCs), policy makers and regulators.The cumulative RM3.5 billion ETF initiative is part of the framework to decrease the government's strategic holdings in GLCs in an orderly manner.The initiative was announced by Prime Minister Datuk Seri Abdullah Ahmad Badawi, who is also the Finance Minister, in March during the Invest Malaysia 2007 conference.The GLCs will participate in the ETFs by selling a portion of their portfolios in exchange for units in the ETFs, thus helping to add liquidity and promote greater retail participation in the equity market.Thin liquidity is considered a major barrier for foreign investment in the local stock market, which is dominated by large GLCs that rarely figure among the most-traded stocks.Many foreign investors fear they may not be able to buy and sell large quantities of shares in these GLCs without the price moving against them.The new ETFs are aimed at releasing some of the shares in GLCs, which account for about a third of the US$270 billion share market, and give investors in the ETFs an indirect and more liquid exposure to these stocks.Awang Adek said the government is also keen to promote Islamic ETFs as part of its effort to make Malaysia an international Islamic financial centre."The Securities Commission is looking into this," he said.Earlier, he delivered the keynote address at the ETFs conference organised by Bursa Malaysia.

TSR Bina Wins Phase 2 East Coast Highway Project

KUALA LUMPUR, June 6 (Bernama) -- TSR Capital Bhd's wholly-owned subsidiary TSR Bina Sdn Bhd has obtained the contracts for three construction projects worth RM216 million located in various parts of Malaysia.In a statement today, the company said the first is the Project East Coast Highway phase two involving the construction of 13.7KM dual carriageways highway for RM145 million. The project is expected to be completed in August, 2009.It has been also awarded the contract to build a school, Sekolah Menengah Kebangsaan Datuk Abu Bakar Baginda in Sepang, Selangor for RM22 million.This project includes the building of a block of administration office, five blocks of classrooms and a multipurpose hall. The project is due for completion in February 2009.TSR Bina has been also awarded a contract for the construction of a main building, quarters and external works for office headquarters in Batu Pahat, Johor for RM49 million. This is expected to be completed by September next year.

Bush Advisers Lower Economic Growth Forecast to 2.30% This Year

June 6 (Bloomberg) -- The Bush administration today lowered its forecast for economic growth in 2007, reflecting slower growth in the first quarter of the year.
Gross domestic product will grow 2.3 percent this year, the White House said. That's lower than the 2.9 percent growth it predicted six months ago.
The White House's revision reflects the slowdown in economic growth to the weakest pace in four years in the first three months of the year. The new projection brings the administration closer to the consensus of other forecasters. The International Monetary Fund in April cut its 2007 U.S. growth prediction to 2.2 percent, from 2.9 percent.
The updated forecasts show slightly higher monthly payroll job growth and a lower unemployment rate. The economy will add 131,000 jobs per month in 2007 and the unemployment rate will remain at a 4.5 percent average for this year.
``Unemployment remains remarkably low, business inventories are lean compared with sales, and now industrial production is on the rise,'' Edward Lazear, chairman of President George W. Bush's Council of Economic Advisers, said in a statement.
The U.S. economy grew last quarter at the slowest pace in more than four years, a 0.6 percent annual rate that may prove to have been the low point of the expansion. Economists have said that spending may slow as record gasoline prices and falling home values pinch consumers.
Treasury Secretary Henry Paulson, in a statement accompanying the CEA report, said he's ``encouraged'' by the economy's ``solid underlying fundamentals.''
``This forecast shows strengthening growth, a healthy job market and contained inflation,'' Paulson said.
The median forecast of 65 economists surveyed by Bloomberg News last month was for a 2.1 percent increase in gross domestic product this year.
Inflation as measured by the consumer price index will be 3.2 percent this year and the yield on 10-year Treasuries will average 4.8 percent in 2007, lower than the 5 percent forecast six months ago, the report said.

Prime Minister To Wed Jeanne Abdullah Saturday

PUTRAJAYA, June 6 (Bernama) -- Prime Minister Datuk Seri Abdullah Ahmad Badawi will marry Jeanne Abdullah, 53, on Saturday, the Prime Minister's Office announced Wednesday.The wedding will take place at the prime minister's official residence, Seri Perdana, here and will be attended by close relatives, the Prime Minister's Office said in a statement.Jeanne was born in Kuala Lumpur on July 29 1953 and is the eldest of four siblings.She was educated at Sekolah Menengah Assunta and has wide experience in administration and hotel management and has worked as supervisor of the official residence of the deputy prime minister and manager of the Seri Perdana Complex.Jeanne has two daughters, Nadiah and Nadene.Abdullah's wife, Datin Seri Endon Mahmood, died on Oct 20 2005 after a long battle with breast cancer.Abdullah, 67, has two children, a son Kamaluddin and a daughter Nori, from his marriage of 40 years with Endon.

Chinese shares hit by further 8.3% slide

Chinese shares slumped another 8.3 per cent on Monday, the biggest one-day drop since February, in spite of an attempt by authorities to calm investors by printing upbeat editorials about the market in the state-controlled press.
In another day of volatile trading in Shanghai and Shenzhen, retail investors ignored official statements about the market's health and dumped shares out of fear the government might bring in more measures to cool the country's stock fever.
However, the sell-off in China appeared to have no effect on other Asian markets, which mostly closed higher on Monday.
The first signs of panic-selling in China began last Wednesday after the government trebled the stamp duty on share trading. The market has now fallen 15 per cent from its high last Tuesday to close at 3,670 points on Monday.
The tax hike was part of an effort to prevent an even larger bubble. But the risk is that a sharp correction imposes heavy losses on the many new retail investors who have recently opened share trading accounts.
The government has a long history of market interference due to its concerns that share price volatility could lead to social unrest involving angry investors.
The country's three official securities newspapers carried editorials on Monday arguing that the market trend was positive and the tax increase was only aimed at speculative investors.
The government's propaganda officials routinely order the media to run articles and reports that support policy initiatives.
"There is no reason not to be optimistic about the long-term development of the capital market," said a commentary in the Shanghai Securities News.
The authorities had been trying to limit speculation, some of which had been "irrational", the paper said, arguing that the stamp duty increase was only a "ripple" in the development of the market and that institutional investors remained confident about Chinese shares.
While selling last week was concentrated on smaller stocks, many blue-chip shares fell sharply on Monday. China Yangtze Power, Shanghai Electric Power and Citic Bank all dropped the daily 10 per cent limit.
Analysts said one reason for the drop was that some investment funds were facing large redemptions as heavy withdrawals by investors had forced them to sell some of their holdings.
Turnover on the Shanghai and Shenzhen markets on Monday was about Rmb220bn ($28bn), just over half the record amount achieved last Wednesday.
Chen Huiqin, analyst at Huatai Securities in Wuhan, said the falls reflected the fact that there were too many retail investors in the market. However, she said: "We believe these heavy losses will gradually moderate over the next few days and that 3,500 points is a strong support level."
US stocks, meanwhile, managed small gains. The Dow Jones Industrial Average gained 8.21 points, or 0.06 per cent, to close at 13,676.32. The S&P500 rose 2.84 points, or 0.18 per cent, to 1,539.18.

Malaysia Pulls In RM12.6 Billion Of Investments In First Four Months

June 4 (Bernama) -- Malaysia continues to be a magnet for investments, especially from abroad, with RM12.6 billion approved in the first four months of the year for 302 projects, according to International Trade and Industry Minister Datuk Seri Rafidah Aziz Monday.Foreign direct investment made up 62.7 percent of this, at RM7.9 billion, while local investors accounted for the remaining 37.3 percent (RM4.7 billion)."Of the projects, 73 worth RM2.3 billion are in the northern states, Kedah having 15 projects with an investment value of RM1 billion, Pulau Pinang 39 projects at RM1 billion, Perak 18 at RM271.9 million and one project in Perlis," she said at the dialogue and seminar here on global competition in trade and investment for the northern region in manufacturing and services.Rafidah said the government is targeting domestic investment to rise to 60 percent of total approved investment in manufacturing and services under the Third Industrial Masterplan (IMP3) between 2006 and 2020.Approved domestic investment in manufacturing set a record last year when it totalled RM25.8 billion or 56.1 percent of the year's total."This trend in increasing domestic investment is continuing, as seen in the January-April period this year when it amounted to an encouraging RM4.7 billion," she added.Rafidah also said that this year her ministry is undertaking several trade and investment promotion initiatives, among them the national seminar on the electric and electronics sector in Kuala Lumpur on June 19-20 and the Sabah trade and investment seminar and dialogue on Aug 14-15, while the Malaysian Industrial Development Authority and the Malaysia External Trade Development Corp have organised 14 trade and investment missions throughout the year.

Plus Expressways Buys Elite And Linkedua

KUALA LUMPUR, June 1 (Bernama) -- Plus Expressways Bhd is to acquire two toll operators - Expressway Lingkaran Tengah Sdn Bhd (Elite) and Linkedua (Malaysia) Bhd - for RM866 million from UEM Group Bhd.Plus Expressways inked a sale and purchase agreement with UEM Group today for the proposed acquisitions.The company said it will fund the acquisitions via bank borrowings.Plus Expressways said the acquisitions would provide growth expansion and value enhancement to the group's bottomline in the future.Elite is the concessionaire for the North-South Expressway Central Link, the Kuala Lumpur International Airport (KLIA) extension link and Putrajaya Link.Linkedua is the concessionaire for the second Malaysia-Singapore crossing between Tuas in Singapore and Tanjung Kupang in Johor.

Talks Still On With Volkswagen, General Motors On Proton, Says Khazanah

KUALA LUMPUR, June 1 (Bernama) -- Volkswagen AG is still talking to national investment arm Khazanah Nasional Bhd on a possible strategic alliance with Proton, as is General Motors, but Khazanah Nasional managing director Datuk Azman Mokhtar was coy today on whether equity participation is still on the table.He explained that when Prime Minister Datuk Seri Abdullah Ahmad Badawi said yesterday that VW was not interested in Proton's offer of an equity deal, he was in fact referring to his invitation to the German car maker to talk to him directly.However, VW has continued to have talks with Khazanah, Azman said. "All the reported interested parties including Volkswagen and General Motors, except for Peugeot who have publicly stepped out of the equation, remain in the picture, notwithstanding some of the statements that may have been made earlier."The Prime Minister, I believe, was referring to the fact that Volkswagen had indicated they wanted a meeting from April, so I think he was still waiting (for feedback from Volkswagen by end of March)."We briefed the Prime Minister today to explain that talks are indeed ongoing and meetings will be set fairly soon," he told reporters at the company's annual review media briefing here.Azman said Khazanah, which has a 42.74 percent stake in the national car maker, has indeed been instructed by Abdullah to continue this process (negotiations with foreign parties).A Hamburg report quoted a VW spokesman as saying today: "At the moment, a further round of talks is being prepared for the near future."On the domestic side, Azman said several parties have declared their interest as well and remain in the picture."We are looking to narrow down the choices on both the international and local strategic alliance. I am determined to solve this soonest, certainly by the end of the year," said Azman.However, he stressed that any structured process done to find a suitable partner will be in an orderly manner from a national governance point of view."We are willing and able to do the strategic alliance in a structure that will basically sell some equity to the partners," he said."We will be happy to share and work on collaborative models in terms of management, to bring in scale and technology."But we will also not disregard the considerable local capability that has been built up over the last 20 years."Asked if it was conceivable for Proton to have both a local and foreign partner on board, Azman said: "It is not inconceivable."He also added that Khazanah isn't surprised by the financial losses incurred by Proton but remains concerned with the declining performance in terms of operation.Yesterday, Proton posted a pre-tax loss of RM619.9 million for the financial year ended March 31, 2007 compared with a RM46.4 million profit a year earlier.

YTL Land

YTL Land & Development Bhd staged a technical rebound to step out of its recentdowntrend yesterday. Its daily price trend rebounded to close at RM1.37yesterday, giving a day-on-day gain of 7 sen, or 5.39 per cent. Chartwise, YTL Land & Development's daily price trend fell from its high ofRM1.47 on May 7 to its intra-day low of RM1.23 on May 15, posting a total lossof 24 sen, or 16.33 per cent. Its daily price trend staged a breakout of its intermediate-term downtrendresistance (B1:B2) yesterday. Its daily price trend continued to rise to its intra-day high of RM1.38. Its daily fast Moving Average Convergence/Divergence (MACD) indicator staged a"golden cross" of its daily slow MACD yesterday. Both its hourly fast and slowMACDs continued to stay above their respective neutral reference lines. YTL Land & Development's daily price trend is likely to stage a follow-throughrebound to re-challenge its previous resistance high.