Oil hits 7-month low of US$94.13

NEW YORK: Oil plunged US$4 (US$1 = RM3.45) yesterday as investors fled to safer havens due to turmoil in the US financial system and on early signs Hurricane Ike had spared key US energy infrastructure.Lehman Brothers' filing for bankruptcy protection and Bank of America's agreement to buy Merrill Lynch stirred concerns that mounting global economic problems would slow energy demand further, sending investors out of oil.US crude dropped US$4.36 to US$96.82 barrel at 1630 GMT, after hitting a seven-month low of US$94.13 earlier, extending a 34 per cent slide from peaks in mid-July amid mounting evidence of slowing fuel demand.London Brent crude fell US$4.77 to US$92.81 a barrel, after earlier hitting US$91.17 a barrel - the lowest level since February.
Oil companies rushed to check damage to their facilities after Hurricane Ike struck the heart of the US energy industry near Houston on Saturday, leaving a quarter of the nation's oil and refined fuel production idled.Early indications showed no major damage to energy infrastructure, though several Texas refineries remained without power. The US Department of Energy said plants suffered minimal damage and were preparing to restart."The sell-off is partly because Hurricane Ike hasn't done any significant structural damage to the oil facilities, as well as growing concerns about the economy," said David Moore, a commodities strategist for Commonwealth Bank of Australia. - Reuters

Jakarta rejects Maybank's appeal

INDONESIA'S capital markets regulator has refused to relax rules for Malayan Banking Bhd, putting its RM8.8 billion deal to buy PT Bank Internasional Indonesia (BII) closer to collapse while a RM480 million deposit risks being forfeited.Maybank wanted an extension of time for it to cut down its stake in BII to 20 per cent from the stipulated two years.The timeframe came about in a new Indonesian law which was enacted on June 30 this year, months after the deal to buy BII was signed.Malaysia's Bank Negara had revoked its approval on the deal, saying two years is too short a time and Maybank faces risks of material losses should it be made to dispose of the shares to meet Indonesia's requirements.
Now that the Indonesian regulators have shot down Maybank's appeal, it is almost certain that the agreement to buy BII will lapse by September 26."The company respects this latest decision," said Maybank in a statement to Bursa Malaysia yesterday.This also means that Maybank is at risk of losing its deposit of RM480 million to Singapore's Temasek Holdings, unless Indonesia's Capital Market and Financial Institution Supervisory Agency (Bapepam) reconsiders its decision."It will be very unlikely for them (Indonesian authorities) to change their mind, chances are very slim. Looks like there won't be write-backs on the provision they made," said Jupiter Securities head of research Pong Teng Siew when contacted.During its full year ended June 30, Maybank made a provision of RM483.3 million, mainly for a non-refundable deposit it paid to buy BII.Maybank had also asked for Bapepam to let it conduct a partial tender offer of up to 80 per cent of BII shares, as it would meet the objective of a 20 per cent public free float upon the close of tender offer. This idea was also rejected."Bapepam had... informed Maybank that it is unable to consider Maybank's request ... as this would create a negative precedent to the newly introduced regulation," Maybank said.RAM Ratings, in a statement, expects the outcome to have no immediate rating impact on the lender."The bank's AAA (stable outlook)/ P1 ratings are anchored by its strong Malaysian franchise and sound credit fundamentals," said its head of financial institution ratings Promod Dass.Meanwhile, the Minority Shareholder Watchdog Group, which has sent a set of questions to the lender for clarification, said it is satisfied with the response. However, it remains opposed to the deal.Its chief executive officer Abdul Wahab Jaafar Sidek believes part of Maybank's board should be accountable and should step down, if the lender loses its deposit.Maybank shares have taken a beating since it announced the acquisition on concerns that it is overpaying. Its shares have fallen by 12.3 per cent, from RM8.95 each to RM7.85, since the deal was announced.-www.btimes.com.my

Oil prices drop in Asia on Saudi output comments

World oil prices fell in Asian trade Tuesday amid signs that OPEC will maintain production levels when it meets later in the day, analysts said.
New York's main contract, light sweet crude for October delivery, fell 1.15 dollars to 105.19 US dollars per barrel from 106.34 at the close of floor trading Monday in the US.
Brent North Sea crude for October delivery fell 1.17 dollars to 102.27 dollars.
The Organisation of the Petroleum Exporting Countries (OPEC) is due to meet later Tuesday in Vienna to discuss production targets, and the latest comments from its de facto leader, Saudi Arabia, suggest unchanged output levels.
"The market is fairly well balanced," said Saudi Oil Minister Ali al-Nuaimi, as he arrived in Vienna Tuesday for the meeting. "Inventories are in a healthy position, everything is in balance."
Experts said the comments boosted expectations of oil price weakness.
"If the market is coming to a view that OPEC will not be doing anything at all, then I think you might see oil prices lower and I think that is what's happening right now," said Commonwealth Bank of Australia strategist David Moore.
Other OPEC members, including Kuwait and the United Arab Emirates, have called for no change in output levels. But Algeria, Iran, Venezuela and Libya have raised fears of oversupply and suggested the need for a cut.
OPEC President and Algerian Energy Minister Chakib Khelil had said on Monday that a production cut by the 13-member group, which pumps about 40 percent of world oil, would be discussed.
"Everybody agrees that we will have an oversupply problem of between half a million and one-and-a-half million (barrels per day) by early next year," he said as he arrived in Vienna.
OPEC is believed to be producing about a million barrels per day (bpd) more than its official ceiling of 29.67 million bpd, with Saudi Arabia accounting for most of the excess.
Some analysts believe Saudi Arabia would be happy to see prices fall below 100 dollars a barrel to help stimulate economic growth.
Oil prices have fallen 28 percent since reaching record levels of above 147 dollars in July, hit by worries of waning energy demand as a world economic slowdown takes its toll. -www.news.my.msn.com

New investment wave to hit Malaysia

Up to RM4 billion of foreign direct investment (FDI) is expected to flow into the country over the next six months as more investors see Malaysia as a good investment destination amid concern over a global economic slowdown.Its transparent laws on land matters, wide use of the English language and value-for-money destination make the country attractive, an industry observer said.Business Times understands that the inflow of FDI will come from the Middle East, South Korea, Hong Kong, China and Taiwan, and is for land acquisitions in the growth corridors, including the Klang Valley.The deals are believed to be brokered by a local property firm with international interest.
"These new foreign investments could translate into a gross development value (GDV) exceeding RM15 billion," a source close to the deals told Business Times.It is learnt that a Korean developer has acquired 0.4ha in Jalan Kia Peng, Kuala Lumpur, for RM2,500 per sq ft to build a luxury one-block residence for around RM1 billion."The land was acquired at a record price. The residences will be a stunning landmark within the Kuala Lumpur City Centre enclave and may break the record for prices of high-end products."The developer aims to sell the units to Koreans and locals," the source said.The Iskandar Malaysia growth corridor in Johor, which has attracted RM33 billion in investments, or 70 per cent of the Johor state government's target of RM47 billion to date, is also experiencing a new wave of investments.The source said that more investments were expected to come from the United Arab Emirates, Qatar and Bahrain as investors look for prime properties like condominiums and offices in south Johor and in KLCC and Mont' Kiara, Kuala Lumpur.Companies from the Middle East - such as Kuwait Finance House, Aldar Properties, Mubadala Development Co, Millennium Development Co, Damac Properties and Limitless Dubai - are already investing in Iskandar Malaysia.Sabah, which is experiencing a mini-boom after the launch of the Sabah Development Corridor earlier this year, is attracting investors from South Korea, Hong Kong and Taiwan.Some RM500 million worth of investment is expected to be made by the first quarter of next year for resort and the broader property development," the source added.-www.btimes.com.my

Duty Slash Will Increase Agriculture Productivity

KUALA LUMPUR, Aug 30 (Bernama)- The abolishment of import duty on fertilizers and pesticides, as announced in the 2009 Budget, will contribute towards higher productivity at the farm and lower the price of agriculture products, says University Malaya Faculty of Economics & Administration Prof Dr Pazim Fadzim Othman.Prime Minister Datuk Seri Abdullah Ahmad Badawi, when tabling the 2009 Budget in the Dewan Rakyat yesterday said the 5-25 percent import duty on fertilizers and pesticides will be scrapped."Our research on 600 odd farmers shows that only a small percent produce nine tonnes per hectare, compared with four to five tonnes per hectare (by the rest) because they use less fertilizer," he said at the 2009 Post-Budget Dialogue here, Saturday.The programme was jointly organised by Malaysian Economic Association and Standard Chartered Bank Malaysia Bhd.Citing the high price of fertilizers and pesticides as the cause for the low productivity, Pazim said, "Everybody must understand that pesticides and fertilizers are not produced in the country and it must be imported."The import duty slash will encourage farmers to use more fertilizers and increase productivity and this will lower food price, he said.Pazim said the government's measures towards exploration of new areas for cultivation, optimisation of the usage of available resources, encouragement of private sector participation and investment were all good moves towards the goal of increasing domestic food production.The government is projecting an annual growth of 6.2 percent for the food crop sub-sector for the rest of the Ninth Malaysia Plan (2006 to 2010).

Rate move to consider Malaysia's best interest: Zeti

WHATEVER decision Bank Negara Malaysia makes today on the direction of interest rates will be in the country's best interest, its governor Tan Sri Dr Zeti Akhtar Aziz said.Bank Negara's monetary policy committee meets today to decide on the Overnight Policy Rate, which effectively determines interest rates.Economists have said that the central bank is under pressure to raise rates in response to the sharp increase in inflation to a 26-year high of 7.7 per cent last month, from 3.8 per cent in May.Zeti told reporters in Kuala Lumpur yesterday that Bank Negara was monitoring the situation to gauge the impact of rising inflation.
She also said that the ringgit cannot be used as a monetary tool to stem inflationary pressures as its exchange rate is not static.The ringgit is a mechanism to facilitate international transactions, both trade and financial, Zeti said-www.btimes.com.my

Takaful Malaysia eyes 33% share of govt loan scheme

SYARIKAT Takaful Malaysia Bhd (STMB) aims to capture one-third market share of the government housing loan scheme for the financial year ending June 30 2009.STMB group managing director Hassan Kamil said up to June 30 2008, STMB had collected about RM25 million to RM30 million in premium for the scheme, for a 20 per cent share. Yesterday, the company opened its new Treasury Business Centre to cater for the government employees who took housing loan under the scheme at the Ministry of Finance, Putrajaya.To widen its reach to customers, Hassan said, the company is undertaking an initiative to set up a takaful "desk" within Bank Islam's branches nationwide.
STMB will also sell Bank Islam products in all their branches. STMB and Bank Islam are sister companies under BIMB Holdings Bhd.STMB hopes to finalise the consolidation of its branches with those of Bank Islam Malaysia Bhd's by year-end.

Malaysia Has Potential To Be Herbal Hub

KUALA LUMPUR, Aug 21 (Bernama) - Malaysia has the potential to achieve its aspiration of becoming a global herbal hub as more people are turning away from modern medicines, says Minister of Science, Technology and Innovations, Datuk Dr Maximus Johnity Ongkili.Therefore, local herbal entrepreneurs must ensure good practices in business and produce safe and clean natural products in accordance with international health safety regulations and standards.This will be important for Malaysia to achieve greater success in the medicinal plants, health and herbal product sector.It will also enhance its image as a catalyst for providing good business opportunity for the global communities, he said in his speech at the soft launch of Herbal World 2008 here, Thursday.His speech was read by the ministry's director general, Prof Datuk Dr Mohamed Isa Abd Majid.Ongkili said the development of the Malaysian herbal industry has undergone phenomenal changes and has grown by leaps and bounds over the past few years. In terms of herbal products registered in Malaysia with the Drug Control Authority, the number has increased to more than 10,000 products at present from only 339 products in 1995."As Malaysian-made health and herbal products are fast gaining international recognition, local companies and entrepreneurs must take bold measures to willingly invest and develop their brand in order to remain competitive," he said.Meanwhile, the inaugural Herbal World 2008 to be held in November this year is being organised by Cynrix Innovations Sdn Bhd and is expected to pull in over 1,000 participants with 250 exhibitors from 30 countries and 23 renowned international speakers in respective fields.Cynrix Innovations chairman, Tan Sri Dr Sulaiman Daud said he also expects the participation of many international and regional trade bodies and United Nations organisations at the event.It is estimated that the global herbal products market has been growing 15 percent annually with its market size expected to swell to US$5 trillion by 2050.Currently, the medicinal plants market worldwide is worth US$62 billion.

Slower economic growth to cool inflation:Malaysia

MALAYSIA'S slowing economic growth and recent falls in the prices of commodities will help cool inflation, especially in the second half of 2009, Bank Negara Malaysia governor Tan Sri Dr Zeti Akhtar Aziz said."The moderation in growth, as we see it, will have some dampening effect on inflation," Zeti told reporters yesterday on the sidelines of the Malaysian Islamic Finance Issuers and Investors Forum 2008.Malaysia's inflation rate stood at a 26-year high of 7.7 per cent in June after a fuel price increase led to a general rise in prices of goods and services.Zeti said the adjustment in prices was just the first-round effect.
"What we need to monitor is the second-round effect. With the moderation in growth, we expect that inflation will moderate next year, particularly in the second half," she said.Zeti stressed that while there would be a moderation in growth, the country must avoid slipping into a fundamental economic slowdown.A fundamental economic slowdown is said to occur when there is "increased unemployment", she explained.On the ringgit, Zeti said its recent fall reflected the movements of other major currencies worldwide."This is just an inter-national development and we will monitor it closely," she said.On whether Bank Negara has been intervening in the foreign exchange market, as has been speculated by dealers, Zeti said that any intervention it undertakes is to maintain orderly market conditions."We will not be intervening to affect the underlying trend of the currency," she stressed.The ringgit fell against the US dollar to 3.3160/3180 yesterday from last Friday's closing of 3.3000/3030. On issues pertaining to Malayan Banking Bhd's purchase of an Indonesian bank, Zeti declined comment. -www.btimes.com.my

Bank Negara's rate decision risky, says analyst

BANK Negara Malaysia's decision to leave its Overnight Policy Rate (OPR) unchanged at 3.5 per cent is a risky one which could affect its credibility, an analyst said.HSBC Bank economist Robert Prior Wandesforde from the Asian economics team in Singapore said Bank Negara was taking risks with its credibility and he expects this to be reflected in the performance of its domestic asset markets.Currency dealers expect to see a further ringgit sell-off this week. The currency fell to its lowest level in a fortnight on Friday, losing 0.2 per cent to 3.2490 versus the US dollar.Bank Negara, at its monetary policy meeting on Friday, kept its OPR unchanged at 3.5 per cent, a position that has been maintained since April 2006. It bucked the trend by the central banks of Vietnam, the Philippines, Indonesia and India to combat inflation with rising energy and food prices globally.
The central bank also revised its average inflation outlook for the year to a range of 5.5 per cent to six per cent from 4.2 per cent year-on-year in June.Prior Wandesforde said he was puzzled over Bank Negara's move, given that the OPR is more than four percentage points below June's inflation rate of 7.7 per cent."If the highest headline inflation rate in 27 years, four consecutive quarters of double-digit real private consumption growth, the strongest year-on-year rise in bank credit since 1998 and signs that wage growth is picking up were not enough to prompt a hike, then it is hard to see what would."This is emphasised further when one considers that the central bank itself has previously suggested that its interest rate stance is accommodative," he said.Prior Wandesforde said the lack of action by Bank Negara indicated that it was concerned that growth would slow sharply although Malaysia is the "key beneficiary" in the region of strong commodity prices."Although export growth is likely to soften, it is not enough to derail the country's gross domestic product growth rate." -www.btimes.com.my

500km gas pipeline project on track

THE 500km gas pipeline project linking Sabah and Sarawak and 300-megawatt gas-driven power plant in Sabah are on, the chief of national oil corporation Petroliam Nasional Bhd (Petronas) says."At the moment, it (gas pipeline project) is on schedule," Petronas president and chief executive officer Tan Sri Mohd Hassan Marican told reporters after Petronas Gas Bhd's (PetGas) annual general meeting in Kuala Lumpur yesterday.A Sabah Barisan Nasional component party had asked the state government to insist that Petronas call off the project to channel gas from Kimanis to Bintulu in Sarawak.United Pasokmomogun Kadazandusun Murut Organisation president Tan Sri Bernard Dompok said it should be stopped to encourage downstream processing of gas pumped from offshore fields along Sabah's west coast.
Prime Minister Datuk Seri Abdullah Ahmad Badawi had reportedly told Sabah BN component party leaders at a meeting on May 31 that the project would be stopped.On June 11, however, Petronas vice-president of gas business Wan Zulkiflee Wan Ariffin was quoted as saying that the estimated RM390 million project would proceed and that it was due for completion by March 2011.Hassan said Petronas would operate the pipeline, while the project would be carried out by production-sharing contractors.The gas would be channelled to Petronas' liquefied natural gas complex in Bintulu.Hassan also said that the power plant in Kimanis would be jointly built with Yayasan Sabah."It is very much in line with the gas pipeline project," he said, adding that the plant's development cost could not be deter-mined as yet.On another note, Hassan (pic) said he did not foresee the gas price hike as having any major impact on PetGas since it is both a supplier and a user.He said PetGas would talk to its customers to defray some of the impact of costlier gas.PetGas expects things to be a bit more challenging financially as, according to Hassan, its effective tax rate is now on par with everybody's.The company enjoyed tax incentives in recent years, but its tax expense increased ninefold to RM301.2 million in the financial year ended March 31 2008 from RM34.2 million the year before.-www.btimes.com.my

All countries should be allowed to use nuclear power, says Ahmadinejad

KUALA LUMPUR, July 7 (Bernama) -Iranian President Mahmoud Ahmadinejad says all countries should be able to use nuclear energy and there should be no restrictions whatsoever.He said if all countries could use nuclear power, they would not have to face the current sharp increase in crude oil prices.Nuclear power, he said, was cheap and attractive.In an interview with Bernama's Editor-in-Chief Yong Soo Heong and RTM's Editor S. Ganesan here Monday, Ahmadinejad, who is here for the 6th D-8 Group of Eight Islamic Countries Summit, said nuclear technology could be applied in the industrial and agricultural sectors to help boost economic development.However, he said, there were a few Western powers which were opposed to Iran's quest for nuclear power."They are expecting the day will come when our crude oil and gas will be finished. When that happens, they hope to sell these commodities to us at very high prices," he said, adding that when that happens it would impinge on the sovereignty and independence of existing oil-producing countries.Ahmadinejad said it was important for countries to properly manage their energy sources and cited the case of Indonesia which at one time was a net exporter of oil but had become a net importer of oil.He questioned why countries like the United States or Britain, which had crude oil and gas resources, were allowed to develop their nuclear capabilities, while Iran was subjected to all kinds of scrutiny.Asked on the present situation in the Middle East, he said peace would prevail if only all the occupying forces withdrew from the region.Asked on recent developments in that region where Iran had been asked to go to the negotiating table with regard to its uranium enrichment programme while there were also threats of military strikes against Iran, he said these were aimed at making Iran go to the negotiating table with pre-conditions.He said Iran would not bow to such demands and had been used to such psychological warfare from the Western powers.Ahmadinejad questioned why there was a need for Iran to undergo inspection by the International Atomic Energy Agency while some countries in the region were not even subjected to it.Ahmadinejad said most countries in the world would be opposed to such a world order where a few big powers dictated terms and wanted others to obey them.But he said the circumstances of the world had changed and some countries should realise that.Ahmadinejad said the Middle East region should be left to the countries there to decide for themselves their future and there should not be any occupying force to dictate terms.On D-8, Ahmadinejad said Iran was committed to the grouping which he believed had strong potential and influence if they stayed united.He said there were a number of international issues to be discussed since such matters affected the D-8 members' economic and cultural affairs.He described D-8 as a young and very good movement and that Indonensia had done a good job in managing the grouping for the past two years.He believed Malaysia would also manage the grouping well as can be seen from the agenda it had prepared for the Kuala Lumpur D-8 Summit.Asked on what improvements he had brought to his people after becoming president in 2005, he said Iranians had been given a lot of opportunities to excel in various fields including science and technology.For instance, he said, Iran wuld soon send into orbit an Iranian-made satellite which would be launched by a rocket launcher that it had also built itself.

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YLI defends price tag for control of rival

YLI Holdings Bhd, a pipe maker, said its proposal to take control of a rival is not expensive, considering that the latter has an exclusive long-term contract to supply a water distributor in Selangor.YLI announced a RM48 million deal to buy 51 per cent of Laksana Wibawa Sdn Bhd on Thursday and said this was a discount to what Laksana Wibawa is worth, based on the discounted cash flow calculation.However, it did not say why it was using the method to value Laksana Wibawa, neither did it mention that the company has a contract to supply Syarikat Bekalan Air Selangor Sdn Bhd, a subsidiary of Puncak Niaga Holdings Bhd."We have engaged an independent valuer. We have also done a due diligence and we have got legal adviser to go through the contracts. We have verified the information," Khor Song Sim, YLI's general manager of corporate services told Business Times.
Based on what was announced to Bursa Malaysia, the deal appeared to be expensive as YLI is paying a historical price to earnings multiple of 34 times, way above YLI's own valuation of about 11 times. Aseambankers Malaysia Bhd said it was surprised by the price tag and cut its target price for YLI's stock by 36 per cent to RM1.15."We are not positive on this acquisition, due to the pricing. Our main issue is the period of investment return for this new acquisition, as Laksana Wibawa's historical records are not compelling," the investment bank said in a report yesterday.However, its report was released before it had the chance to speak to YLI's management.Khor said Laksana Wibawa's exclusive contract with Syabas runs from 2006 to 2015. It will supply ductile iron pipes and mild steel pipes to Syabas.Laksana Wibawa is worth between RM102 million to RM133 million, based on calculations done by Kenanga Investment Bank Bhd."If it can fulfil demand from Syabas, it can make a lot of money," Khor said.Based on Laksana's accounts, it made a maiden net profit of RM2.8 million in 2007 since starting business in 2003. Over that period, its revenue has grown by almost 10 times to RM65.6 million.Apart from growing YLI's income, Khor said the deal allows the group to deal with competition.YLI would also help Laksana Wibawa to deal with the supply of ductile iron pipes as its facility has excess capacity. Laksana Wibawa is in the midst of building a ductile iron pipe factory."We can take up the slack and delay the factory a bit," Khor said. -www.btimes.com.my

Syed Yusof buys Sutra Beach Resort

BUSINESSMAN Tan Sri Syed Yusof Syed Nasir has added another property to his hotel stable, buying the Sutra Beach Resort in Terengganu for RM20 million.Syed Yusof will purchase the hotel, located in Kg Rhu Tapai, Merang, from Dignity View Sdn Bhd and spend some RM6 million to convert it into a Casa del Mar or a Concorde brand.The purchase will be done via ISY Holdings Sdn Bhd, a company owned by Syed Yusof and Sultan of Selangor Sultan Sharafuddin Idris Shah."We plan to convert the 120 rooms and create a five-star Casa del Mar Terengganu or a four-star Concorde Beach Resort," Syed Yusof told Business Times.
The Casa del Mar hotel chain will be modelled after the successful Mediterranean-inspired maiden venture in Langkawi. Casa del Mar literally means "Home by the Sea" in Spanish.Concorde Kuala Lumpur, formerly the Merlin Hotel, on Jalan Sultan Ismail was Syed Yusof first hotel venture in 1990. He is also involved in Concorde Inn Sepang and Concorde Hotel Shah Alam."The Sutra Beach Resort has 5.06ha of land, of which 2.03ha has been developed. The remaining land will be allocated for the development of suites," he said.Once the renovation is done and should it be a Casa del Mar, Syed Yusof said he hopes to be able to increase the hotel's average room rate (ARR) to between RM300 and RM400 per night from about RM250 now."In Langkawi, our hotel enjoys a 90 per cent average occupancy and an ARR of RM500. We want to bring this new hotel to the level comparable with that in Langkawi," he said.Meanwhile, another boutique hotel called Casa del Rio or "Home by the River" is being built by ISY Holdings in Malacca.The company will also open the Hard Rock Hotel, Penang, previously the Casuarina Beach Resort, in early 2009 and has started the development of the Four Seasons Hotel and Service Apartment in Kuala Lumpur.-www.btimes.com.my

Malaysia Offers Opportunity For Auto Manufacturers Producing Hybrid Vehicles

KUALA LUMPUR, June 26 (Bernama) -Malaysia offers the opportunity for leading automotive companies particularly those producing hybrid vehicles to locate their operations in the country.The companies would be able to cater for the domestic and regional markets, International Trade and Industry Minister, Tan Sri Muhyddin Yassin said Thursday.He said high fuel cost has created demand for such vehicles in the region.The minister's speech was read by the ministry's deputy minister Datuk Jacob Dungau Sagan at the Frost & Sullivan Asean Automotive Awards 2008, here Thursday."Malaysia in fact is well placed to become the hub for hybrid vehicles in the region. I hope automotive assemblers will take advantage of this opportunity," he said.Given that the automotive industry is evolving at such a dynamic pace, he said Malaysia is also paying attention to capacity building and is continuously developing the capabilities of small and medium scale enterprises (SMEs) producing automotive parts and components to ensure these companies remain competitive.Among the programmes undertaken have been the familiarising of SMEs with Lean Production System relating to quality control and improvement, reducing waste, inventory management, control improvements and reduction of rejection rate and in producing upgrading processes.Others have been upgrading the skills of those involved in the automotive industry and enhancing SME capabilities in mould and die designing as well as manufacturing.Under the Ninth Malaysia Plan, the ministry through SMIDEC has provided assistance to SMEs in the automotive sector under various Matching Grant Schemes.As at May 30 this year, SMIDEC approved a total of 612 applications amounting to RM18.35 million, he said.Going forward, he said spiraling energy prices will remain one of the main challenges of the automotive industry.Higher fuel costs also means that consumers will look to fuel efficient vehicles and perhaps vehicles using alternative energy.To meet these demands, continued investment in research and development will be necessary, he added.

Broadband set to be TM's largest revenue contributor

SINGAPORE: Telekom Malaysia Bhd (TM) said broadband business could become the group's largest revenue contributor in three years, as demand for Internet and related services increases.As of first quarter 2008, TM's retail revenue was RM1.61 billion, of which 31 per cent came from its Internet and data services. Voice call services accounted for the bulk or 57 per cent.This compared with a 63 per cent contribution from voice and 27 per cent from Internet and data sales a year ago."We believe broadband business will contribute 60 per cent of the retail revenue in three years, overtaking voice.
"There're two main reasons for that. First, the migration of fixed voice to mobile. Second, we see the trend of Internet becoming more of a necessity rather than a luxury service for Malaysians," said TM group chief executive officer Datuk Zamzamzairani Isa in an interview here on Wednesday.The company also plans to launch its Internet Protocol Television (IPTV) services in the second quarter of 2009, which is expected to boost TM's revenue.Meanwhile, TM expects to sign up more new broadband customers this year, as compared with 2007 when it signed up 401,000 new customers.It believes that its broadband subscriber base could expand by at least 35 per cent this year."Initial signs have been very encouraging. In April, we signed up 43,000 new broadband customers, which was a record for us. May was another strong month where we signed up some 40,000 new customers," Zamzamzairani said.On the RM15.2 billion national high-speed broadband project, TM is considering its funding options.The project comes in two phases. First phase, in which most of the job will be done in the initial three years, involves around RM11.3 billion, of which TM will fund RM8.9 billion."We are finalising the details," Zamzamzairani said.TM and the Government are expected to sign a public-private partnership agreement by the end of this month."We are hopeful that it will materialise this month. But even if it doesn't happen this month, it won't be too far away," Zamzamzairani added. -www.btimes.com.my

RM1b biotech investments

SAN DIEGO: Malaysia is poised to receive investments in biotechnology projects worth RM1 billion over the period 2008-2011 as a result of deals that will be signed during a world-class event this week."These (amounts) are the kinds of benchmarks that we have for events like BIO 2008," Malaysian Biotechnology Corp (BiotechCorp) chief executive Datuk Iskandar Mizal Mahmood told Malaysian journalists here on Tuesday.Six agreements will be signed this week on the sidelines of the world's biggest biotechnology conference, dubbed BIO 2008.Iskandar said that more details will be revealed during the signings, adding that they involve areas like healthcare, agriculture and industrial biotechnology.
Malaysia wants to win a slice of the booming and lucrative biotechnology industry, estimated to be worth billions of dollars. Revenue from biotechnology firms in Asia-Pacific alone was US$36.7 billion (RM119 billion) in 2006.Iskandar is leading BiotechCorp, the agency tasked to develop Malaysia's biotechnology industry, at its fourth BIO event. There are about 82 Malaysian delegates this year, led by Science, Technology and Innovation Minister Datuk Dr Maximus J. Ongkili."We are looking for anything that's new, whether in terms of technology or practice," Ongkili told reporters after opening BiotechCorp's exhibition booth.However, Malaysia's core focus are alternative energy and boosting agriculture production.One example is mapping the complete genetic information of the jatropha plant, Ongkili said. This could lead to a better-yielding and more pest-resistant jatropha, which is used to make biofuel, apart from palm oil and corn.The minister is also conducting about 12 one-on-one meetings throughout the four-day event that ends tomorrow."We are zeroing in on the list of potential investors," he said.BIO 2008, which is bringing together more than 20,000 visitors from 70 countries, features about 2,200 leading biotechnology companies worldwide. -www.btimes.com.my

Iran opposes any Saudi unilateral oil output hike

Iran said on Tuesday it would be opposed to any move by OPEC kingpin Saudi Arabia to raise its oil output without a consensus from fellow members of the oil cartel.
"If Saudi Arabia takes a measure to unilaterally increase (oil) output, it is a wrong move," Mohammad Ali Khatibi, Iran's new representative to OPEC, was quoted as saying by the state television website.
UN chief Ban Ki-moon announced on Sunday that Saudi Arabia had told him it would increase its oil output by a further 200,000 barrels a day in July, although it was not clear if Khatibi was reacting to these comments.
Saudi Arabia is also organising talks among major oil producers and consumers in the Red Sea city of Jeddah next week to discuss the current sky-rocketing prices.
Iran is OPEC's number two producer, behind the Saudis, and has consistently argued that the high oil price has nothing to do with market fundamentals and OPEC's output should not be increased.
"Any increase in production should be approved in the meeting of the organisation's ministers," Khatibi stressed.
Iran's OPEC representative also said there was no shortage in the oil market: "Oil producers are all agreed that the oil market is saturated," he said.
"Evidence shows that consumers will discuss the increase of oil production more than other issues in this (Jeddah) meeting. This is while the producers believe that there is no shortage in the market," he said.
The National Iranian Oil Company's director for international affairs, Hojatollah Ghanimifar, said any boost to output would have little impact on world prices.
"In the current situation even an increase of 500,000 barrels of oil will not make any change in oil prices," Ghanimifar was quoted as saying by the state television website.
Oil futures reached record highs of almost 140 dollars a barrel on Monday.
In Asian trade on Tuesday, the main New York futures contract, light sweet crude for July delivery, dropped 15 cents to 134.46 dollars per barrel after striking an intraday record of 139.89 dollars on the New York Mercantile Exchange.
Earlier on Tuesday, Iranian President Mahmoud Ahmadinejad said that the current high price of oil was artificial and the market was well supplied.
"The rise in consumption is lower than the rise in production," Ahmadinejad told a meeting in the central city of Isfahan of OPEC's fund for international development.
"Certain hands, for political and economic ends, are controlling the price in an artificial manner," he said.-Copyright Agence France-Presse, 2008

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MASkargo bullish on China operations

MALAYSIA Airlines Cargo Sdn Bhd (MASkargo), the cargo arm of Malaysia Airlines (MAS), expects its operations in China to continue to show growth this year, despite soaring fuel prices and the less favourable global economy climate.Managing director Shahari Sulaiman said the bullish outlook is largely attributable to its freight network, which is servicing lucrative trade lanes, namely Asia to Europe, Europe to Asia as well as Europe to Australia."We are serving the right markets. We are big in China, Europe and Australia," he told reporters covering Air Cargo China 2008. "Furthermore, since the end of February, we have diverted 70 per cent of our flights into Europe to Uzbekistan. This has allowed us to serve the same market at a much reduced cost."
Air Cargo China 2008, which starts in Shanghai tomorrow, is dubbed as one of the largest gatherings of the international air cargo community. It is expected to be attended by more than 10,000 executives from the airlines, airports, freight forwarders, shippers, suppliers and service providers from all over the world.Shahari said MASkargo saw a 10 per cent year-on-year growth in cargo throughput at the KL International Airport (KLIA) in Sepang for the first two months of this year and is optimistic that the trend will sustain for the medium term.On its Chinese operations, its station in Shanghai will remain its biggest contributor in terms of revenue and expects the margin to expand although MASkargo plans to reduce the number of flights but carry more cargo there due to rising fuel cost.Fuel makes up about 40 per cent of its total operating cost."We have reduced our capacity (flights) by about seven per cent in the first quarter this year. This has resulted in an improvement in yields and profits," Shahari said.Another factor that would contribute to growth would come from the new cargo building located near the Pudong International Airport which is near completion."The new cargo building will be able to accommodate one million tonnes of freight and there will be more parking bays for freighters," he said, noting that Pudong is leading growth in cargo by more than 10 per cent.The company also plans to look for more strategic partnerships with other airlines that would improve its operations.MASkargo operates four B747-200 and two B747-400 freighters. It also offers belly space capacity on MAS' passenger fleet, servicing almost 100 destinations worldwide.The company more than doubled its operating profit to RM38 million last year, from RM18 million in 2006. -www.btimes.com.my

Sime's Sarawak rice venture

CONGLOMERATE Sime Darby Bhd has identified 7,000ha of land in Sarawak to start its rice production venture, its chairman Tun Musa Hitam said yesterday."As we go on, we'll increase it (the hectarage)," he told reporters on the sidelines of the World Economic Forum on East Asia in Kuala Lumpur yesterday.Musa said that to help meet the country's food needs, Sime Darby will use advanced technology, including Chinese expertise, to produce higher yield compared to existing production methods."God willing, it will be more than the average produced now. The Sarawak state government is positive about this, and they will make available more land," he added.
According to previous reports, the new fields would be able to produce at least nine tonnes of rice per hectare.Malaysia produces about 1.6 million tonnes of rice a year, which accounts for about 70 per cent of annual demand.Amid rising global food prices, the government has identified Sarawak as Malaysia's new rice bowl to boost production. The government has allocated RM4 billion for the Food Security Policy, of which RM2.5 billion has been approved to increase food production. Farmers are also given incentives to boost the national stockpile.Under the Ninth Malaysia Plan, government-linked companies (GLCs), agriculture associations and cooperatives are encouraged to venture into large-scale food production.Musa said that unlike crude palm oil, which Sime Darby sells worldwide, the rice produced in Sarawak will be exclusively for local consumption.He added that details of the project, such as production and investment costs, will be announced later."We have already identified how we are going into it, but the target, the cost, and all that (will be determined later). "Of course, there will be due diligence to make sure that it is productive, economic and contributing."And there will be more of such projects, I should think. The government had announced its intention to intensify rice production."Asked if the latest project was Sime Darby's national service to the country, Musa said: "A little bit of that, but we must make sure that it is viable, going to be profitable, and of quality that can contribute to the food needs of the country."-www.btimes.com.my

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Shell to pump in RM10 billion

THE Royal Dutch Shell Group is looking to invest some RM10 billion in its oil and gas operations in Malaysia in the next five years.Shell Malaysia chairman Datuk Saw Choo Boon said while the investment is spread across the range of business activities, exploration and production will take up most of the expenditure."We have been in the country since 1891, more than 100 years. We intend to stay and continue to grow our business here," he said at a media dialogue in Kuala Lumpur yesterday. Also present was Royal Dutch Shell chief executive officer Jeroen van der Veer.Worldwide, van der Veer said, the company has set aside some US$27 billion (RM87 billion) as capital investment for this year, about the same amount allocated last year.
"We probably have the highest investment among oil companies in the world. I think there are enough opportunities for us, including in the downstream, to come up with more investments," he said.He said the company will probably be shifting its focus to the East rather than the West, with growth likely to come from Malaysia, China, Indonesia, India and Ukraine."We are also building a new chemical cracker plant in Singapore and are active in the downstream segment in Thailand," he said.In Malaysia, he said, the development of the Gemusut-Kakap deepwater field is one of the key projects undertaken by Shell, of which production is expected to begin in 2010.On the outlook of the global oil and gas industry, van de Veer said fossil fuel - namely oil, gas and coal, will continue to play an important role by 2050 to meet the ever increasing demand for those fuels."Within 25 years from now, the world will still use more oil, gas and coal," he said.On the current escalating price of crude oil, van der Veer said he did not see any shortage of oil supplies that would cause the price to increase substantially."There are no physical shortages in the world. We don't have ships waiting in the Middle East, no people queuing up for gasoline. From a stocks point of view, the whole value chain works well," he said, declining to project how high the price of crude will go. -www.btimes.com.my

Petronas in RM8b deal

PETROLIAM Nasional Bhd (Petronas) is strengthening its global liquefied natural gas (LNG) business through the acquisition of 40 per cent interest in Santos Ltd's LNG project in Gladstone, in the Australian state of Queensland, for US$2.5 billion (RM8.1 billion).In a statement yesterday, Petronas said it will make an initial investment of US$2 billion (RM6.5 billion) and a further payment of up to US$500 million (RM1.6 billion) upon a final investment decision approval for a second LNG train.The two companies signed the agreement for Petronas' proposed purchase in the state capital, Brisbane, yesterday.Under the agreement, a 60:40 joint-venture company will be formed to develop and operate a gas liquefaction facility in Gladstone, with an initial one-train capacity of three million tonnes a year.
"The new entity will also build and operate a 450km pipeline from jointly-owned upstream coal seam gas (CSG) assets to the project site as well as undertake all marketing activities for the project's LNG output," Petronas said.It added that the LNG project partners will cooperate in the exploration and production of selected upstream CSG assets in Queensland, with Santos as the operator."The project has received Significant Project Status approval from the Queensland government and is currently in the pre-front end engineering design stage," Petronas said.The final investment decision is expected by the end of next year, while the project's first LNG cargo is planned for 2014. Petronas also said that the LNG project will benefit from the expertise of both companies."Petronas is a leading player in the global LNG industry with more than 25 years of experience and successful LNG projects in Malaysia and Egypt."The joint venture will benefit from Petronas' technical expertise and will have the opportunity to leverage on its capability in LNG shipping," it said.Santos is a major Australian oil and gas exploration and production company with interests and operations in several countries in Asia. It is also Australia's largest producer and marketer of domestic natural gas and a leading CSG player in the region.The acquisition marks Petronas' first investment in CSG assets and in an Australian LNG project.The company views the acquisition as a highly attractive opportunity, paving its entry into the CSG industry in Australia while also strengthening its position as a global LNG player.The acquisition is conditional upon necessary government and regulatory approvals, Petronas said.At the signing, Petronas was represented by its vice president of gas business Wan Zulkiflee Wan Ariffin and Santos, by its acting chief executive officer David Knox. -www.btimes.com.my

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Qatar bank plans US$300m shipping fund in Malaysia

BALI: Qatar Islamic Bank SAQ, the Gulf state's biggest syariah-compliant lender, plans to set up a US$300 million (US$1 = RM3.21) shipping fund in Malaysia through its Asian Finance Bank unit in the next two months to tap growth in the region."We are in the process of getting approval from the regulators in Malaysia," Asian Finance's chief executive officer Faisal Alshowaikh said in an interview from Bali. "We will come up to the market very soon," he said.Qatar Islamic and rivals including Kuwait Finance House, the world's second-largest Islamic bank, have been lured to Malaysia by the tax breaks and incentives for Islamic financial products. The nation also introduced an RM840 million shariah-compliant exchange-traded fund, the first of its type in Asia, in January.About 30 per cent of the Islamic shipping fund will be raised from equity, and the remaining 70 per cent will be generated through bank financing, Alshowaikh said. He didn't elaborate.
Asian Finance also plans to start a US$500 million property fund in 2009 that will invest in Southeast Asia to tap growth in the region's real estate market, Alshowaikh said. He is seeking to raise funds from investors in the Middle East."Investors are looking at Southeast Asia aggressively, and we will help them diversify," he said. "The property market in Malaysia is undervalued compared to neighbouring countries."Asian Finance began operations in Malaysia in January 2007. It also has a representative office in Jakarta, he said.In another development, Ithmaar Development Co, a unit of the Bahraini Islamic lender, Ithmaar Bank BSC, and partners created a US$500 million fund to invest in the property markets of Latin American states.Ithmaar, Kuwait-based Al Safat Investment Co and Bahrain- based Arabian Ventures will use the five-year syariah-compliant fund to invest in Argentina, Brazil, Mexico, Chile Costa Rica, Colombia, Ecuador and Venezuela, the partners said in an e-mailed statement on Wednesday. - Bloomberg

Malaysian inflation rises to 3% in April

Malaysia's inflation rate edged up to 3.0 percent in April from 2.8 percent the month before, driven by higher food prices, according to official data released Wednesday.
Malaysia heavily subsidises a range of basic items including fuel, rice, flour and bread, moderating the effect of rising prices compared to other Asian nations.
However, the growing subsidy bill is putting a strain on government coffers, with fuel subsidies alone expected to hit over 53 billion ringgit (16.4 billion dollars) this year.
Recently, the government said it would spend 4.0 billion ringgit to increase food production and tackle price hikes as the country faces spiralling global oil and food costs.
Prime Minister Abdullah Ahmad Badawi has also said that several projects under the government's multi-billion-ringgit five-year development blueprint are currently under review due to rising costs.
The Department of Statistics said the consumer price index was up 0.3 percent in April from the previous month. For the first four months of the year, inflation averaged 2.7 percent. -
Agence France Presse

Japan's Ibiden investing RM1b in Penang plant

JAPAN'S Ibiden Co Ltd, the world's biggest printed circuit board (PCB) maker, will invest at least RM1 billion to set up its third manufacturing plant in Penang.The plant, which will make and develop multi-layer PCBs, is scheduled to operate by the third quarter of next year.Construction of the 18.5ha facility will begin as early as next month.About RM800 million will be spent over the next two years, mainly on construction of the plant and buying equipment from across the globe.
It is expected to create jobs for 900 Malaysians next year.The plant will be used to manufacture high-performance and high-density printed wiring boards, which are widely used in mobile phones."Worldwide demand for mobile phones is expected to maintain its constant growth. The replacement demand is also anticipated to increase," Ibiden printed wiring board unit manager and executive officer Sotaro Ito said in Kuala Lumpur yesterday.Depending on future demand, the company may build another plant in Penang in 2011, Ito said.Its existing two plants are located in the Seberang Jaya and Prai industrial areas.Ibiden's investment is a big boost for Malaysia's foreign direct investment (FDI). Japanese investments in the manufacturing sector have been increasing significantly since 2003.The Malaysian Industrial Development Authority (Mida) is optimistic that FDI from Japan will surpass its record last year when the country brought in RM6.52 billion, up 48 per cent from RM4.4 billion in 2006."If we can close the deals we are working on, I am confident that we can easily match or surpass last year's number," Mida director-general Datuk R. Karunakaran said.Between January and March this year, 13 projects from Japan were approved in various industries, with capital investment of RM270 million, excluding investment by Ibiden.International Trade and Industry Minister Tan Sri Muhyiddin Yassin will be leading a trade and investment mission to Japan in July.Seminars and roundtable meetings will be organised in Osaka, Yokohama and Tokyo.Mida will also send technical teams and specific product missions to attract Japanese investment in areas such as food ingredients; functional and halal food; petrochemical and polymers; specialised machinery for electrical, electronics and metal working industries; flat panel display; and semiconductors and electronic components. -www.btimes.com.my

TH Plantations to expand oil palm estates

TH Plantations Bhd, the plantation arm of Lembaga Tabung Haji, aims to boost the size of its oil palm estates by 50 per cent this year to boost income.The company's landbank now totals 28,730ha and wants to grow this as crude palm oil prices continue to be strong.TH Plantations managing director Datuk Rashidi Che Omar said the company, which owns estates in Sarawak and Terengganu, is scouting for land in the two states as well as in Kelantan, Sabah and in Riau and Kalimantan in Indonesia."We are in active talks with several parties including our parent Tabung Haji," Rashidi told reporters in Kuala Lumpur yesterday after the company's annual general meeting.
Apart from its own estates, TH Plantations also manages Tabung Haji's 129,660ha oil palm plantations in Sabah, Sarawak, and Riau in Indonesia.
"How much we plan to spend depends on land availability and only then can we determine the financing method but it will be financed by internally-generated funds," said Rashidi.The current market price for existing plantations starts at around RM30,000 per ha while unplanted land could sell for RM7,000 per ha, he said.Rashidi added that the firm also plans to spend RM64 million to develop new areas and upgrade its existing three oil palm mills in Peninsular Malaysia.Meanwhile, TH Plantations chairman Tan Sri Dr Yusof Basiran said CPO prices will continue to be strong, ranging between RM3,000 and RM3,500 per tonne due to tight supply and strong demand for biodiesel.-www.btimes.com.my

AirAsia still owes MAHB RM5.4million

LOW-cost carrier Air Asia Bhd still owes Malaysia Airport Holdings Bhd RM5,443,746, Transport Minister Datuk Ong Tee Keat said yesterday.“AirAsia is still in the process of paying the debt,” he said in a written reply to a question from Wee Choo Keong (PKR-Wangsa Maju) at the Dewan Rakyat sitting yesterday.Wee wanted to know if AirAsia had paid back the subsidy of RM60 million to the government and its debts to MAHB after Malaysia Airlines (MAS) took over the air services in the interiors of Sabah and Sarawak. Ong said following the rationalising of domestic air services carried out by the government in March 2006, it had given AirAsia the mandate to provide the interior air services. AirAsia subsequently appointed Fly Asia Xpress (FAX) to operate the service effective August 1, 2006.
“Considering that the service is a social obligation for the areas in Sabah and Sarawak and a non-economic service, the government therefore will bear in full the operation cost through subsidy,” he said.Whoever the operator of the service, the government will provide the full subsidy which need not be paid back, he added. — Bernama

PIDM Targets RM128 Mln Revenue FY09

KUALA LUMPUR, May 12 (Bernama) -Malaysia Deposit Insurance Corporation (PIDM), which administers the statutory deposit insurance system, is targeting a revenue of RM128 million for the current financial year ending Dec 31, 2008 under the new Differential Premium Systems (DPS) regulation rate structure for its member banks."The target was forecast based on a premium of RM120 million and an expected investment income of RM8 million under the new regulatory system," its chief executive officer, Jean Pierre, told a press conference here today to release PIDMs Annual Report 2007.He said PIDMs net income for last year totalled RM89 million and its total accumulated surpluses stood at RM211 million.Last year, PIDM's revenue was RM115.7 million, comprising RM110 million in premiums and RM5.7 million from investment income, he said."With the growth in deposits held with members, the total insured deposits grew to RM179 billion at the end last year from RM165 billion at end-2006," said Pierre.PIDMs membership increased to 33, comprising 22 commercial banks and 11 Islamic banks as at Dec 31, 2007, he said.Pierre said this year PIDM has rolled out a number of regulations, applicable for its member banks, to further strengthen the deposit insurance system under DPS regulations.He said the new DPS regulation rate structure provides incentives for PIDMs member banks to adopt sound risk management practices as the premiums will be collected based on individual member banks profile."This DPS will reward banks whose risk profiles are low through reduced premiums, and impose higher premiums on banks with higher risk profiles," he added.

Foreign parties keen on halal hub

FOREIGN investors have promised to pour in RM1.4 billion to help develop the Tanjung Manis halal hub in Sarawak.Sarawak Chief Minister Tan Sri Abdul Taib Mahmud said that investors from Taiwan and the Middle East have expressed their interest.The Tanjung Manis halal industrial park is part of a master plan by Halal Industry Development Corp (HDC) to make Malaysia a global halal hub.Abdul Taib witnessed the signing of a memorandum of understanding (MOU) between Tanjung Manis Food and Industrial Park Sdn Bhd and HDC at the third World Halal Forum in Kuala Lumpur yesterday.
Under the MOU, both parties will work together to develop the halal park in Sarawak. They will also promote and market halal manufacturing and commercial activities undertaken there.Abdul Taib also said that about 15,000ha have been set aside in the area to produce halal meat and fish.On another matter, he said that the Sarawak state government has identified several areas to plant padi.However, only areas where investments will definitely "take off" have been approved."So far, Sarawak has about 7,000ha allocated for padi planting for the next five years," said Abdul Taib.The federal government has allocated RM50 million for the planting of padi in Tulai. Another 20,000ha in Limbang will be allocated later."This will only come into effect after we launch the hydro-dam project in Limbang as we need to make sure that these areas have proper irrigation," Abdul Taib said.He added that these areas were extremely conducive to growing padi.The government expects a yield of nine tonnes of rice per hectare from the identified areas.The state government is hoping for an allocation of up to RM3 billion for rice production under the Ninth and Tenth Malaysia Plans.-www.btimes.com.my

RM3b structured fund

THE RM3 billion PNB Structured Investment Fund, launched yesterday to invest in structured products and a property trust that owns Permodalan Nasional Bhd (PNB) buildings, may generate returns of more than six to seven per cent a year, its manager said."Our funds in the past have been giving six to seven per cent annual returns. We are confident we can do better (with this new fund)," PNB president and group chief executive Tan Sri Hamad Kama Piah Che Othman told Business Times after the launch in Kuala Lumpur.The closed-end fund plans to distribute income annually, subject to the discretion of the manager, the company said in a statement. The principal investment is protected when held to the five-year maturity.
Speaking at the launch, Hamad Kama Piah said the new product was conceptualised after considering the current needs of discerning investors.Principal preservation, capital appreciation and yearly dividends remain their priority during this time of market volatility, he said.Up to 80 per cent of the fund will be invested in structured products issued by Deutsche Bank Malaysia, which may include bonds, stocks, equity-linked and hybrid products.The fund will also put up to half of its money in PNB REIT (real estate investment trust), which owns seven properties in Kuala Lumpur and Johor Baru worth about RM1 billion in total.The commercial buildings - Menara PNB, PNB Darby Park, PNB Damansara, Menara Tun Ismail, Wisma KPMG, Menara and Plaza Pelangi, and Pelangi Leisure Mall - are owned by PNB and 93 per cent occupied on average."PNB is 'giving away' its prime properties, at a cost of course, to be incorporated into the REIT as an added security to investors," Hamad Kama Piah said.The REIT is currently private, but there are plans to float it on Bursa Malaysia's main board towards the end of the five-year tenure of the PNB Structured Investment Fund.The structured investment fund is open to individual and institutional investors at a net asset value of RM1 during the offer period, which will last for 45 days until June 25, or upon full subscription of the units.Minimum investment starts at 10,000 units for individuals and 50,000 units for institutions.Minimum additional investment for individuals is 1,000 units and for institutions 5,000 units during the offer period. There is no limit to the amount an investor can put in. -www.btimes.com.my

Malaysian fund sells RHB Capital stake to Abu Dhabi Bank

Malaysia's state-run pension fund sold 25 percent of its stake in the country's fourth largest bank, RHB Capital, to Abu Dhabi Commercial Bank (ADCB), a statement said Thursday.
The deal between the Employees Provident Fund (EPF) and ADCB, a Middle Eastern concern, is valued at 3.876 billion ringgit (1.22 billion dollars), at 7.20 ringgit per share, it said.
The EPF is the single largest shareholder in RHB Capital with an 82 percent stake. Under a central bank ruling, it needs to reduce its holding to 35 percent by June this year.
Based on the purchase price, the deal is the "largest investment to date of a Middle East investor into the Malaysian financial sector," the EPF said.
Upon divesting its stake to ADCB, the EPF will cut its shareholdings in RHB Capital to 57 percent from 82 percent.
The EPF said the landmark deal will drive RHB Capital to become one of the top three banks in the Southeast Asian region by 2020.
"RHB Cap and ADCB will now be uniquely positioned to leverage on growing business flows ... and strengthen both banks' regional position in the global Islamic Banking market," EPF chief executive officer Azlan Zainol said in the statement.
In March last year, EPF beat two rivals, including Kuwait Finance House, to gain control of RHB Capital by acquiring its parent Rashid Hussain Bhd.
Azlan, who is also a director at RHB Capital, said the banking group was planning to double its profit and market capitalisation in three years.
EPF chairman Samsudin Osman said EPF intends to further reduce its holding in RHB Capital, state Bernama news agency reported.
"We hope to bring in more investors and parties, which could contribute positively to the growth of RHB Capital. The EPF however, will remain the single largest shareholder in RHB Capital," he said, according to Bernama.
EPF has requested approval from the central bank to keep 40 percent of RHB Capital instead of 35 percent.
With the sale, the ADCB is now the second largest shareholder of RHB Capital. -
Agence France-Presse

2008 subsidy for fuel & gas to be RM45 billion

KUALA LUMPUR, May 7 (Bernama) -Taxpayers may have to bear a whopping RM45 billion in subsidies for fuel and gas this year, Second Finance Minister Tan Sri Nor Mohamed Yakcop, said here Wednesday.He said the subsidies are based on global crude oil prices hovering between US$100-US$120 per barrel.Of this, RM18 billion is for petrol, diesel and liquefied petroleum gas, RM7 billion in tax relief and RM20 billion is for the Petronas gas subsidy, he told a media conference.The subsidy looks set to increase if the price of oil increases further."It is RM45 billion and rising. If the crude oil price spikes to US$130 per barrel tomorrow then the subsidy will be higher," he said after launching RHB Banking Group's new logo.Tuesday, oil price shot up to a fresh record of US$122 per barrel on global markets on supply worries and a weak dollar.Nor Mohamed said there was no cap for the subsidy amount.However, he said the government was looking at ways to restucture the whole subsidy scheme to make sure that it was sharp and focuses on the right priority sector."We are mindful of the need for the subsidy scheme to be sharp. Any aspect of the present subsidy scheme, if it is blunt, then we've got to sharpen it."Asked on the effect of the restructuring, he: "If we restructure and refocus on the subsidy, the net effect may not be much for the government. It is just that the subsidies will be more efficiently and effectively done. We have to minimise the leakage. So, the cost may not be necessarily higher."Nor Mohamed did not give a timeframe or deadline for the restructuring.Earlier, in his speech, he said "continuous reassessments are required to enable us to build upon our strengths and comparative advantages as well as seek new opportunities, both locally and abroad."More importantly, there is need to be equipped to respond to these new opportunities as well as challenges."It is my hope that the RHB Bank will continously transform and reinvent itself as what is relevant today may not necessarily serve us well in the years ahead," he said.He also said that the banking sector plays a crucial role in attracting foreign direct investors as well as in the country's socio-economic stability.

Scomi Bidding RM5-6 billion monorail projects

PETALING JAYA, May 7 (Bernama) -Scomi Group Bhd, a global service provider in the oil and gas industry, energy and logistics engineering, is bidding for RM5 billion to RM6 billion worth of monorail projects overseas.Disclosing this, its group chief executive officer, Shah Hakim Zain said the group has been shortlisted for final tenders for monorail projects in Iran and India.The projects being tendered include in Marshad, Karat and Tehran in Iran and in Mumbai and Delhi in India.He added that the group will be submitting final tenders to India on June 15 and in Iran soon.Scomi recently signed a collaborative agreement with the Hanoi Metropolitan Rail Management Board to prepare a feasibility study on a monorail system in Hanoi, Vietnam."We are cautiously optimistic of securing these projects, we are focussing on countries that are seriously implementing monorail projects," he said during a press conference today to announce Scomi's employee development programmes.Shah Hakim said Scomi is investing RM2 million a year on its executive management programme (EMP).The Scomi EMP programme represents an opportunity to bring all middle managers throughout the company to a common level of skills and competencies.

Weaker dollar won't hurt exports

THE easing of the American dollar will not affect Malaysia’s exports as the currency is not the instrument that decides the export situation, Second Finance Minister Tan Sri Nor Mohamed Yakcop said.Instead, measures such as the use of an innovative system, reduction in costs and exploration into new markets will be able to raise export levels, he said in reply to a supplementary question from Fong Kui Lun (DAP-Bukit Bintang)at the Dewan Rakyat today.“In the present day, it is too complicated to use the ringgit’s exchange value as the instrument to increase export,” he said. In order for traders to carry out their business, the stability of the currency rate is important and it is not the specific exchange rate such as 3.2 or 2.8.
“The important thing for traders and businesses is that the rate is stable and there is no situation of volatility in the market,” Nor Mohamed said.The government has taken various measures to diversify the country’s exports to the non-traditional export markets, including the signing of bilateral agreements with many south nations.“Therefore, our exports at the moment are highly diversified, and we are not that dependent on the United States or other countries.“The government will continue to look at other measures and incentives for exporters in terms of budget and also use MIDA (Malaysian Industrial Development Authority),” he said.Nor Mohamed said the government would ensure that there is no speculation on the ringgit with the continued policy of not giving loans in ringgit to outsiders. He said the crisis in 1997 and 1998 was brought on by currency manipulators who had been allowed to borrow ringgit and sell the local currency unit.“What we did during the crisis..was very simple. We just did not allow them to borrow ringgit for selling. “That solution is still in our system,” he added.Meanwhile, the minister also said that Malaysia will retain a ban on currency traders borrowing the ringgit for trading.Malaysia has maintained the ban since the 1997/98 Asian financial crisis.-reuters

Maybank buys 15% stake in MCB Bank, Pakistan's largest bank for RM2.17 Billion

KUALA LUMPUR, May 5 (Bernama) -Malayan Banking Bhd is buying an initial 15 percent stake in MCB Bank Ltd, Pakistan's largest bank, for RM2.17 billion, it was announced Monday.Maybank president and chief executive Datuk Seri Abdul Wahid Omar said the bank was looking to acquire up to 20 percent of shares in MCB Bank from Nishat Group.Nishat is a conglomerate with interests in textiles, cement and the financial sector.He said the proposed acquisition of the remaining five percent would be conducted in the next one year.MCB is Pakistan's largest bank in terms of market value and is worth around US$4 billion.With the acquisition, Maybank would be given the right to appoint two directors to represent its interest in the bank, he said.This will be another major foreign acquisition for Maybank this year.In March this year, Maybank, the country's largest lender, bought a 55.7 percent stake in Indonesia's sixth largest bank Bank Internasional Indonesia (BII) from Singapore's Temasek Holdings (Pte) Ltd for RM4.8 billion.It also planned to tender for the other 44.3 percent stake held by the remaining shareholders of BII.Abdul Wahid said as part of the transaction, Maybank and MCB would also enter into a business cooperation arrangement which would include Islamic banking, retail banking, credit cards, asset management and Small and Medium Industries (SME) banking.

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PNB plans RM3b closed-end fund

PERMODALAN Nasional Bhd (PNB) plans to set up a RM3 billion close-end structured fund, its chairman said.PNB Structured Investment Fund will invest in PNB's property trust and other financial instruments.It will be open to local and foreign investors, both individual and institutional. The fund will guarantee an investor's capital, provided the investment is held until maturity.PNB chairman Tan Sri Ahmad Sarji Abdul Hamid said the fund is in line with the group's plan to expand its coffers according to the principle of maqasid syariah.
He was speaking at the closing ceremony of PNB's Unit Trust Week held in Malacca yesterday. He did not say when the new fund will be launched nor did he provide details.Ahmad Sarji said PNB also plans to restructure three of its property companies and financial subsidiaries this year. Part of the plan is for PNB to increase its overseas investment in an effort to increase revenue."PNB needs to have more of a global reach to decrease its dependence on the local economy, minimising the impact of any downturn," Ahmad Sarji said.He said the three strategies are needed to ensure the continued success of PNB.In his speech Ahmad Sarji encouraged companies to give out loans to its staff to enable them to invest in unit trusts as part of its corporate social responsibility programme.He also suggested that companies and sport associations give out PNB unit trusts to winners of sport and recipients of Khidmat Cemerlang to encourage them to invest.Malaysia has a work force of 10.9 million, including 1.14 million civil servants.About RM5.99 billion worth of PNB unit trusts have not been subscribed by the public.Yesterday marked the end of a 10-day Unit Trust Week event organised by PNB which saw some 249,000 visitors walk through its doors.www.btimes.com.my

Pelikan in talks to buy China rivals

PELIKAN International Corp Bhd, a stationery maker, is in talks to buy two Chinese rivals for an estimated US$200 million (RM632 million), its top official said.One is a stationery firm, while the other is involved in hardcopy, or the making of toners and printer cartridges. The companies rake in an annual revenue of more than US$300 million (RM948 million) collectively."To grow our business by 40 per cent to 50 per cent, we need to do M&A (merger and acquisition). We have already engaged investment bankers for this purpose," its chief executive officer Loo Hooi Keat said."We are actively pursuing China. We want a presence in the domestic market in China to merge and grow our business," he told reporters yesterday at a briefing in Subang, Selangor, to mark Pelikan's 170th anniversary.
Loo, who said that Pelikan could pay about US$100 million (RM316 million) for each company, expects the deal to be completed next year.Pelikan's hardcopy business contributes some 40 per cent of total revenue, while its stationery business provides it with a high gross margin of 60 per cent.In the financial year ended December 31 2007, Pelikan's revenue surged 82 per cent to RM1.19 billion largely as a result of the purchase of Pelikan Hardcopy Holding AG.Net profit rose 23.5 per cent to RM93.04 million from RM75.3 million.Loo also said that Pelikan may buy the 80 per cent stake it does not own in a Colombian company that has annual sales of US$20 million (RM63 million).The exercise, scheduled to be completed in the current quarter, could cost between US$6 million and US$8 million (RM19 million and RM25 million).-www.btimes.com.my

Tan & Tan plans RM500m condo sale

TAN & Tan Developments Bhd, the property arm of IGB Corp Bhd, is in talks for an en-bloc sale of its high-end condominium called 6 Stonor in Kuala Lumpur for RM500 million.Tan & Tan's executive director Teh Boon Ghee said that discussions were ongoing to sell the 106 condominium units which will tentatively be launched next year."We are looking for en-bloc sales (for 6 Stonor) as there are many foreign investors interested in properties here today," Teh said.The building will be on 0.58ha of freehold land and its development is currently under building plan.
In an interview with Business Times recently, Teh said that IGB's focus over the next few years will be the Klang Valley."Kuala Lumpur will remain the focal point of real estate development, where the rate of appreciation in capital value has been faster than most other second-tier cities in Malaysia," Teh said.Tan & Tan, whose forte is in condominiums and gated housing, also plans to channel more resources into property development this year."For the past two to three years we have been concentrating on The Gardens project and lending our support to it, (so) other property development projects slowed down a little. Now that it has finished, we will furnish a larger percentage of our resources on property development," said IGB's executive director Tan Boon Lee."We hope to regain lost opportunity over the past year," Tan said.IGB's revenue from property development fell 32 per cent to RM262 million in the year to December 31, 2007.The decline was due to fewer launches as the group focused on completing The Gardens project in Mid Valley.This year, it plans to launch properties with an estimated gross development value (GDV) of RM350 million and RM2.25 billion in 2009.At the same time, it also has ongoing projects worth some RM700 million.It has identified areas surrounding KLCC, Ampang Hilir, Wangsa Maju, Desa Pandan, Mid Valley and Sungai Buloh for projects given the infrastructure support there.Projects planned for launch this year include 40 units of luxury condos in Ampang Hilir (GDV RM80 million), 218 units of serviced residences and 15 units of shop offices in Desa Pandan (GDV RM116 million), 66 units of Sierramas Hillside Villas (GDV92 million) and 17 units of villas in Sierramas Mews (GDV RM32 million).Tan & Tan has some 81ha in the Klang Valley, of which 52.5ha is in Wangsa Maju. This project, with a GDV of RM1.2 billion, will be developed over seven years.-www.btimes.com.my

Interest rate not only answer to curb rising prices, Zeti

KUALA LUMPUR, April 25 (Bernama) - Fiddling with interest rates is not the only answer to curb rising prices, Bank Negara Malaysia's governor Tan Sri Dr Zeti Akhtar Aziz said Friday.Zeti also said that the current increase in prices was due to the structural impact related to supply and demand.She said this when asked whether the central bank will fiddle with the interest rates to curb rising prices.According to Zeti, the current level of interest rates is supportive of growth because it has not dampened consumption and investment activitiesThere is still loan demand for households, small and medium enterprises (SMEs), and other businesses, she said.Zeti said funds were still being raised in the domestic bond market and through sukuk (Islamic bond)."All this reflects that it (the interest rate level) is supportive of growth at this point in time," she said.Asked about the impact on inflation with food prices increasing, Zeti said inflation may increase by three percent "but we expect on the average it will be 2.5 to three percent"."Nevertheless, we are monitoring the new developments where there are increasing shortages of food. It is phenomenal experience globally, and it is being addressed," she said."So the final outcome will be determined on how we address the situation. It has been identified as a key priority area in most countries and the final outcome will depend on how successful the efforts are."Asked whether the countrys growth would be affected with the government delaying some of the projects, Zeti said as the government had made allocations and was committed to disburse the allocations to promote development and growth, there will be no major impact.On the ringgit, Zeti said the local currency was moving in an orderly manner, which was important for international trade, foreign direct investment and portfolio investment.






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DRB-Hicom To Acquire 70 Percent Shares In Bank Muamalat

KUALA LUMPUR, April 24 (Bernama) -DRB-Hicom Bhd has entered into a sale and purchase agreement with Bukhary Capital Sdn Bhd (Bukhary Capital) to buy 70 percent interest in Bank Muamalat (BM) for RM1.07 billion.In a filing to the stock exchange today, the group said the acquisition would be satisfied entirely by the issuance of 548,666,666 new ordinary shares of RM1.00 each in DRB-Hicom (DRB-Hicom shares) at an issue price of RM1.95 per share."The BM purchase consideration was arrived at on a willing buyer-willing seller basis after taking into consideration the independent valuation report by Messrs Ernst & Young, the independent valuer, which values 100 percent equity interest in BM between RM1.30 billion and RM1.53 billion," DRB-Hicom said.Bukhary Capital was incorporated in Malaysia on June, 13 1995 under the Companies Act, 1965 and is principally an investment holding company.ALBUKHARY Corporation Sdn Bhd (ALBUKHARY) holds 99 percent equity interest in Bukhary Capital.Bukhary Capital had in 2004 acquired 90,338,400 BM shares (equivalent to a 40 percent stake in BM) from Khazanah for RM206.8 million and acquired 67,753,800 BM shares (equivalent to a 30 percent stake in BM) from Commerce Assets Holdings Bhd for RM155.10 million."The proposed BM acquisition would result in a change in the controlling shareholder of DRB-Hicom as Bukhary Capital would hold 35.26 percent equity interest in DRB-Hicom," DRB-Hicom said.The group also said that the proposed BM acquisition would lead to DRB-Hicoms participation in the Islamic banking sector and will strategically provide them with a source of income arising from BMs presence in the Islamic banking industry."The said acquisition is timely as DRB-Hicom can capitalise on the growth potential of the local and global Islamic banking sector and enable the group to have a significant presence in the domestic Islamic banking industry via BM," it said.It also said that the proposed BM acquisition is also subject to the approval of the Minister of Finance through Bank Negara Malaysia, of which conditional approval was obtained on April 21, 2008.The applications to the relevant authorities are expected to be submitted by the second quarter this year, DRB-Hicom said.The group said barring unforeseen circumstances, the proposed BM acquisition is expected to be completed in the third quarter this year.

High cost derails KL-S'pore bullet train project

THE cost factor was the main reason the government decided not to go ahead with the high-speed bullet train link between Kuala Lumpur and Singapore proposed by YTL Corp Bhd.“The letters on the decision were sent to parties such as YTL and the relevant agencies in early April,” said Economic Planning Unit (EPU) director-general, Datuk Seri Dr Sulaiman Mahbob, said yesterday.He said the government would have to bear a significant cost based on the financial model that was submitted by YTL.“Based on the financial model submitted by YTL, the government has decided not to go ahead with the bullet train (project),” he said, without elaborating on the amount the government has to bear.
YTL has proposed the RM8 billion project which would take 90 minutes to travel between the two capitals from about seven-and-a-half hours now.It was earlier reported that the government has allowed YTL to do a feasibility study and it (YTL) came back to say the project was feasible.The plan for a high-speed train between the two cities, spanning about 300km, was proposed in late 1990s, but garnered strong interest last year after the government invited companies to come up with ideas for privately-funded projects. -Bernama

2nd Penang bridge delayed due to costs

PRIME Minister Datuk Seri Abdullah Ahmad Badawi said the construction of the Second Penang Bridge will be delayed following problems getting the allocated land, the best design and increasing building costs.“Several matters have delayed its construction. Firstly in getting the land that had been allocated for building the bridge.“Secondly, there is a need to ensure that the given design is the most suited and also the issue of cost where there may be changes due to increased prices,” he told reporters after officiating the Asean-Europe Culture Ministers Meeting in Kuala Lumpur today.Abdullah said this when asked on why the building of the bridge was being reviewed under the Ninth Malaysia Plan (9MP).
He also said several other projects under the 9MP are being reviewed as well.-Bernama

LCL bags RM295m Dubai LRT deal

LCL Corp Bhd, an interior fit-out company, has won a RM295 million contract to carry out works for what will be the world's longest automated light rail transit system.It will carry out fit-out works for the Red Line Stations under the Dubai Metro System, it said in a statement."This project is a promising prospect for the group and will greatly enhance our position as a leading interior fit-out player in the Middle East region and globally," group managing director Low Chin Meng said in a statement.Work will start immediately and is due to be done by the second quarter of 2009. It will do fit-out works for 14 stations across various landmarks in Dubai city.
LCL's United Arab Emirates (UAE) based company, LCL Interiors Contracting LLC received the letter of intent from Japan-Turkey Metro Joint Venture."The Dubai Metro Stations will have the same high-quality design and standards as other construction projects in Dubai. "We are pleased that our established track record in completing interior solutions for some prestigious projects has made the group stand out among other industry players to secure this project," Low said.-www.btimes.com.my

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Islamic Banking In East Asia Growing But Faces Challenges, Says Moody's

KUALA LUMPUR, April 14 (Bernama) - Islamic banking in East Asia is growing but needs more action by regulators to establish legal and regulatory frameworks in order to emerge as a significant segment across the region, according to Moody's Investors Service.Other than Malaysia, where the industry's assets accounted for 15.4 percent (about US$62 billion) of its banking system assets, its market penetration across the region has been slightly patchy, the firm said in a new report titled "Islamic Banking in East Asia -- Growing But Not Without Challenges"."For example, while Islamic banking has achieved relatively high market penetration in Brunei and asset growth in Indonesia has been rapid, Islamic banking services available in the Philippines, Singapore and Thailand remain very small in terms of asset size," Moody's said."There exists a natural business potential for Islamic banking services in Malaysia as approximately 60 percent of its population is Muslim, but it is government reforms during the past 20 to 30 years which have really helped develop the necessary legal and regulatory framework and institutions for the industry to flourish," said the report's analyst and author Christine Kuo.The adoption of various incentives, including tax breaks, has also proven critical to nourishing the business, Kuo said."We believe the Malaysian experience over the last three decades demonstrates how instrumental regulators can and need to be in order to grow the Islamic banking sector," she said.This compares to Indonesia, where the industry's market share is still less than two percent (about US$3 billion) despite rapid growth in recent years.The low penetration, in Moody's opinion, can largely be attributed to the slow pace of change to related regulations and institutions though a few important changes seem to be gathering momentum, the report said.Indonesia has huge long-term potential as it is home to more than 200 million Muslims, the largest Muslim population in the world, Kuo said.She said the growing acceptance of Islamic banking even among non-Muslims, combined with announcements from Singapore, Tokyo and Hong Kong that they are to increase their participation in Islamic finance, has also underlined the industry's potential.However, as Islamic banks expand they will need to deal with the twin challenges of managing their rapid growth while competing against conventional banks, the report said.These included addressing risk issues specific to Islamic financial institutions, such as concentration risk due to a limited scope of eligible asset classes, higher costs for managing liquidity and concentration of liabilities.However, these can be dealt with if the banks are not under undue pressure to grow assets too quickly, according to Moody's."We think that the average bank financial strength ratings (BFSRs) of Islamic banks in East Asia are likely to be lower that their conventional banking peers in the same country because of higher syariah law-related compliance costs and lack of economies of scale," Kuo said."Nonetheless, deposit and debt ratings of Islamic banks could be significantly higher than the levels indicated by their BFSRs, thanks to support from parents and regulators," she said.

IPI for February 2008 up 6.30%

KUALA LUMPUR, April 11 (Bernama) - The Industrial Production Index (IPI) for February 2008 rose 6.3 percent to 132.6 compared with 124.7 a year earlier, the Statistics Department said Friday.The higher index was attributed to increases recorded in all sectors, namely the electricity index which went up 7.6 percent to 149.3 from 138.7, the manufacturing index which gained 6.5 percent to 138.4 from 129.9 and the mining index which climbed 5.1 percent to 111.0 from 105.6, the department said.The increase in the manufacturing sector was driven by positive growth registered by industries, namely glass and glass products which rose 36.5 percent, processing of food, oils and fats (21.5 percent), and office, accounting and computing machinery (14.7 percent), it said in a statement.According to the department, the IPI for February 2008 fell 7.1 percent when compared with the index of 142.8 in the previous month.The drop, it said, was due to decreases recorded in the manufacturing sector which went down by 6.4 percent.

Use Gas Or Hydro Instead Of Coal, Sabah Power Utlities Told

KOTA KINABALU, April 12 (Bernama) - Tenaga Nasional Bhd (TNB) and Sabah Electricity Sdn Bhd (SESB) have been told to consider using hydro or gas to generate electricity in Lahad Datu as an alternative to the RM1.3 billion coal-fired power project that the state government has rejected for Silam within the district.Responding to a TNB article in "TNB Talks" that Sabah could face an acute power shortage by 2010, Chief Minister Datuk Seri Musa Aman said today that this can be averted if the utilities go for alternative fuel sources instead of coal.Speaking to reporters after taking part in the Sabah Malay Golf Association President's Trophy Golf Championship near here, he reiterated that using coal as fuel for the proposed power station is unacceptable because it will be adjacent to areas with sensitive ecosystems such as Teluk Darvel, Lembangan Maliau, the Danum Valley and Ulu Segama."The project was cancelled upon the request of the people in this state, especially those in Lahad Datu. That is why the state Cabinet suggests that SESB and TNB use hydro or gas for their proposed power plant in Lahad Datu," he said."The state government is prepared to offer every assistance to speed up the approval process so that this alternatively-fuelled power project gets off the ground as soon as possible."

YTL keen on more land buys in KL

KUALA LUMPUR: YTL group, which is paying a record RM2,000 per sq ft for a piece of land in Jalan Stonor, intends to make more acquisitions in the Kuala Lumpur city centre.
YTL Corp Bhd managing director Tan Sri Francis Yeoh said yesterday that land price in Kuala Lumpur city was “still very affordable'' compared with Asian cities such as Singapore, Ho Chi Minh City, Hanoi and Jakarta.
“We intend to invest in more properties in prime locations in the city, as the Kuala Lumpur property scene is set to be very exciting,'' he said, adding that this was due to Government measures such as the relaxation of approval from the Foreign Investment Committee.
Yeoh said after a briefing on Climate Change Week 2008 that YTL was planning a residential development comprising apartments on the Jalan Stonor land measuring just under 0.4ha, which it acquired for RM85mil.
In line with Climate Change Week 2008, which will be held from April 29 to May 4, YTL has launched the Renewable Energy and Environment Fund (REEF), a green investment fund for the Asia-Pacific.
“The fund offers an international portfolio of clean technology companies involved in carbon credits, recycling and alternative energies such as wind, solar and biofuels, all of which contribute immensely to these solutions,'' he said.
According to Yeoh, green technology was set to be the century's largest economic opportunity.
This is the second fund in which YTL would be a main investor. It is also the principal investor in the Asian Renewable Energy and Environment Fund (AREEF), which was launched a year ago and has reaped 28% in annual returns.
According to fund manager Kumpulan Sentiasa Cemerlang Sdn Bhd, REEF was expected to provide returns of 10% to 15% a year.
Yeoh said that as a key utilities player, YTL had been working on reducing its carbon footprint. For example, almost 39% of the total energy used in its British utility company Wessex Water was from renewable energies such as biogas, biomass, wind and solar.
“With our targets firmly in sight, by 2020 we aim to get 50% of our energy from renewable sources and eventually grow that to 100%,” he said, adding that the company's proposed Malaysia-Singapore fast train project was another example of a good environmental project.
“Just imagine the reduction of carbon emissions as a result of the cars it will replace. It will provide fuel subsidy savings as well,” he said.
To a question, Yeoh said the Government was very supportive of the project and considered it not just another mega project but one that was economically viable as well.-www.thestaronline.com.my