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
Monday, May 12, 2008
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
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
Thursday, May 8, 2008
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
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
Wednesday, May 7, 2008
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.
Tuesday, May 6, 2008
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
“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
Sunday, May 4, 2008
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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