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Wednesday, November 30, 2011

Annual Growth In M3 Moderates Slightly To 11.4 Per Cent In October

5 Muharram 1433 Hijrah

KUALA LUMPUR, Nov 30 , 2011- The annual growth in broad money (M3) moderated slightly to 11.4 per cent in October, said Bank Negara Malaysia (BNM) Wednesday.

The expansionary impact of private sector credit and portfolio inflows on M3 was mitigated by higher placement of deposits by the government arising from the proceeds of the issuance of government securities, it said in a statement here.

BNM said net financing to the private sector grew at a slower pace in October due to a more modest increase in outstanding banking system loans and net issuances of private debt securities (PDS).

"While business loans outstanding moderated slightly due to large repayments during the month, loans disbursed to this sector remained high.

"Loans to households, however, continued to rise steadily, driven mainly by loans for the purchase of residential and non-residential properties and cars," it said.

On banking system, the central banks said the system remained sound with the risk-weighted capital ratio (RWCR) and core capital ratio (CCR) improving to 15 per cent and 12.9 per cent respectively.

"This was mainly attributed to a planned capital raising exercise by a bank and half-year profit recorded by the industry," it said.

BNM noted that the level of net impaired loans remained stable at 1.9 per cent of net loans, while the loan loss coverage ratio was sustained at a high level of 96.7 per cent.

 Source: BERNAMA

Tuesday, November 29, 2011

Good Corporate Governance Practices Ensure Premium Pricing For Bursa Companies

4 Muharram 1433 Hijrah

KUALA LUMPUR, Nov 29 , 2011- Good corporate governance practices are what ensure a premium pricing for companies listed on Bursa Malaysia.

The Chief Executive Officer and Executive Director of HwangDBS Investment Management, Teng Chee Wai said unlike in the 1990s, where the local stock market was able to attract much liquidity, companies listed on Bursa today need to work harder to attract investors.

"The challenge for fund managers in Malaysia, is the difficulty in looking for good companies to invest," he said, during the Bursa Malaysia IPO Seminar here Tuesday.

He said there were not many companies on the local bourse, such as SP Setia, which had market valuation above the regional average.

On average, he added, the Compound Annual Growth Rate (CAGR) for Bursa Malaysia listed Companies share prices from 2001-2011 was at 0.02 per cent per annum.

According to Teng, the top outperformers among Malaysia listed companies had a share price (based on 2011 market capitalisation) of CAGR between 25-33 per cent.

"The outperformers tend to come from those sectors which Malaysia has a clear competitive edge," he said.

In the furniture sector for example, he said, there is a lack of initiatives to move up the value chain.

"What fund managers look for are Malaysian companies which are ambitious and have growth beyond Malaysia, as the domestic market is limited. They must also be good business models," Teng added.

The Managing Director Malaysia division of Aberdeen Asset Management, Gerald Ambrose said among the questions fund managers ask are, if the business plan can grow for eight to 10 years and if the cash flow or cash flow forecast can fund that growth.

"Other related questions are of the balance sheet finance dividend payments and whether the management appears transparent," he added, at the seminar.


Sunday, November 27, 2011

Ornamental Fish Sector Set To Contribute RM600 Million To GDP

2 Muharram 1433 Hijrah

KUCHING, Nov 26 ,2011(Bernama) -- The federal government sees a big potential in the ornamental fish industry under the National Key Economic Area until 2020, said Deputy Minister of Agriculture and Agro-based Industry, Chua Tee Yong.

He said the industry would contribute not less than RM600 million to gross domestic product (GDP) and offer about 100,000 jobs by end-2020.

"The ministry has forecast export of 1.5 billion ornamental fish worth RM1.7 billion under the 10th Malaysia Plan," he said in his speech at the seminar and exhibition on Arowana at Universiti Malaysia Sarawak here today.

The text of his speech was read by deputy director (development) of Fisheries Department, Ismail Abu Hassan.

He said Malaysia was one of the top exporters of ornamental fish in the world.

Chua said the Arowana (kelisa) was highly prized where 316,000 fish worth RM146 million were produced in 2009.

 Source :BERNAMA