myAl-AFDHAL PLAN

This new investment linked plan has been uniquely designed to provide investors with a comprehensive 5-year “peace-of-mind” Syariah compliant investment structure. It is innovatively structured to provide 100% capital protection whilst returns are benchmarked against the performance of the best performing investment portfolios, combining selected international indices related to global equities, commodities and fixed income.
myAL-AFDHAL is offering an affordable investment instrument ranging from a minimum investment of RM7,000 to a maximum investment of RM10 million.
The offer for myAL-AFDAL investment will be open to eligible individuals from the age of 18 to 65 years for a period of 45 days only, from 2 May 2008 to 15 June 2008.
The profit, if any, from myAL-AFDHAL will be distributed to the Participants annually.
The single Contribution paid at the beginning of the term offers the following features:

1. Principal protection till maturity of 5 years

2. 5-year term Takaful coverage

3. Sum Covered

a. Entry age 18-55 : 125% of Single Contribution
b. Entry age 56-65 : 105% of Single Contribution

4. *Investment return in the form of Annual Profits, if any

5. Partial Withdrawal : Minimum of RM10,000 in multiples of RM1,000

6. Fund offer period : 02-05-2008 to 15-06-2008

7. Minimum Fund Size : RM50 Million

*Subject to the actual performance of the investment

To book your valuable unit

EJS Virtual 04-6447659

authorised Syarikat Takaful Malaysia Berhad corporate agent

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

Wah Seong secures RM390m contract

KUALA LUMPUR: Wah Seong Corporation Bhd’s group company Petro-Pipe (Sabah) Sdn Bhd has secured a RM390mil contract to supply pipes for the Sabah-Sarawak Gas Pipeline Project.
It announced to Bursa Malaysia on Thursday that the contract with Petronas Carigali Sdn Bhd involved the manufacturing, coating, delivery and storage of pipes.
The entire pipeline project to be undertaken by Petronas will involve laying an onshore natural gas pipeline from the proposed Sabah Oil and Gas Terminal in Kimanis, Sabah to the Petronas Liquefied Natural Gas complex in Bintulu, Sarawak, and the construction of associated facilities.
”The estimated value of the contract is RM390mil and the pipes are scheduled for delivery to Petronas over a one year period starting from September 2008,” it said.
Wah Seong said it expected the contract to contribute positively to the group’s earnings for the financial years ending Dec 31, 2008 and 2009.-www.staronline.com.my

Aras Kreatif owns 11% of RCE

KUALA LUMPUR: Aras Kreatif Sdn Bhd has emerged as a substantial shareholder in RCE Capital Bhd after acquiring an 11.17% stake on April 1.
A filing with Bursa Malaysia showed the stake accounted for 70.4 million shares. The share price closed at 52.5 sen on that day.
On Monday, the company announced that its placement of 64.63 million shares or 10% of its existing paid-up share capital had been completed with the listing of the shares on April 5.
RCE provides loan financing to civil servants. Its share price hit a 52-week high on Oct 7 last year at RM1.14 while its 52-week low was 49 sen on March 21 this year. It is trading at a price to earnings of 5.21 times.-www.staronline.com.my

PNB's Total Funds At RM130 Billion

KUALA LUMPUR, April 4 (Bernama) The funds of Permodalan Nasional Bhd (PNB), which celebrated its 30th anniversary Friday, currently stands at a total of RM130 billion comprising shareholders funds and proprietary funds.The figure represents about 14 percent of the stock market capitalisation, its Chairman, Tan Sri Ahmad Sarji Abdul Hamid said.With such funds, PNB has been able to hold equities in 313 companies,with 256 of them being listed companies and encompassing various strategic sectors such as plantations, banking, real estate, oil and gas, energy, port and others."In the last 30 years PNB has carried out the efforts to fulfill the duty entrusted to it by Yayasan Pelaburan Bumiputera (Bumiputera Investment Foundation) which was to increase the wealth of Bumiputeras, raise the ownership of Bumiputeras in the country's main economic sectors and enhancing the value of its unit trust shares," he said at a dinner given in conjunction with its anniversary celebration here Friday.Also present at the event were Prime Minister Datuk Seri Abdullah Ahmad Badawi, Datin Seri Jeanna Abdullah, Deputy Prime Minister, Datuk Seri Mohd Najib Tun Abdul Razak, Datin Sri Rosmah Mansor, and the president and chief executive of PNB Group, Tan Sri Hamad Kama Piah Che Othman and his wife Puan Sri Rohani Mohamad.Todate, PNB has distributed a total of RM60.4 billion in dividends and bonus to 8.845 million holders of its nine unit trust funds.The share units that they hold amount to 76 billion, which is about 35 percent of the total industry figure, Ahmad Sarji said."PNB wishes to express its deepest appreciation to all its investors including the 748,303 non Bumiputera unitholders who now hold a total of 10 billion share units."Under the leadership of Prime Minister Datuk Seri Abdullah Ahmad Badawi as the chairman of Yayasan Pelaburan Bumiputera, PNB, he has taken the efforts to ensure that the institution would continue to have the trust of both its Bumiputera and non Bumiputera investors," he said.PNB has also moved into the global level through strategic partnerships with world reknown companies, besides opening up global fund management offices in Singapore and London.It also plans to soon open an office in Tokyo, Japan, he said.Hopefully, these efforts will bring higher returns to the investors especially the lower income earners who make up 7.6 million or the majority 86.12 percent of PNB unit trust funds holders with investments of below 10,000 share units, he said.