11 Muharram 1433 Hijrah
By Christine Lim
KUALA LUMPUR, Dec 6 , 2011 - Malaysia is moving in the right path in terms of transforming its economy to a high-income status through the Economic Transformation Programme, even though this achievement may involve a long term process, said a prominent European economist, Douglas McWilliams.
McWilliams who is chief executive of The Centre for Economics and Business Research (Cebr) based in London said Malaysian economy has evolved from being reliant solely on export to a more diversified base with the services sector emerging to be an important economic driver.
"While economic growth will be impacted by the dismal outlook in the global economy on the backdrop of the escalating Europe sovereign debt crisis, Malaysian economic growth will be right on track with the pick up in global economy in 2013," he said during an interview with Bernama TV on Monday.
He also projected a five per cent growth for Malaysian economy this year and a decline to between 4.2 per cent and 4.3 per cent growth next year in line with global economic weaknesses.
He said Malaysia had a lot of scope in terms of fiscal expansion by the government as its debts were not huge compared with the sovereign debts in Europe.
"The key is to ensure that domestic consumption is able to fill the hole for the slowdown in export growth," McWilliams informed.
McWilliams also expects Bank Negara to continue to monitor the economic situation closely to see if there is a need for a cut in interest rates.
He said the European leaders were also working on a concrete solution to the European debt crisis.
McWilliams said domestic consumption will play a pivotal role in the Asean economy with action by governments to increase domestic consumption.
He said Asean currencies were also rising in value compared with other currencies, while western currencies were getting weaker.
He said the Western economy was also bracing for structural adjustments with higher wages and longer holidays compared to Malaysia and the rest of Asean countries.
Source- BERNAMA
Wednesday, December 7, 2011
Saturday, December 3, 2011
Remisiers Association To Seek Fresh Avenue To Standardise Brokerage Fee
8 Muharram 1433 Hijrah
By Santhia Panjanadan
KUALA LUMPUR, Dec 3 , 2011 - The Remisiers Association of Malaysia (Persama) will continue to seek avenues to standardised transaction cost in order to manage irregular stock price behaviour.
President Sam Ng Soon Lee said the absence of a standardised brokerage fee was one factor that prolonged capital flow bottleneck and loss of confidence among the investing public.
Persama and the Association of Stock Broking Companies had on June 13 agreed on a standardised transaction cost but this was verbally turned down by the Securities Commission.
"We disagree with the current method of brokerage liberalisation," he told Bernama after the association's annual general meeting here today.
At present, the fee structure was to the advantage of local and foreign fund managers and to the disadvantage of retail participants.
"If trading participants believe the current rate is too high, then how low do they want the fee to be?.
"It is unfair to go to zero rate to manage listed companies price volatility as it would result in malpractices and loss of confidence," he added.
Source- BERNAMA
By Santhia Panjanadan
KUALA LUMPUR, Dec 3 , 2011 - The Remisiers Association of Malaysia (Persama) will continue to seek avenues to standardised transaction cost in order to manage irregular stock price behaviour.
President Sam Ng Soon Lee said the absence of a standardised brokerage fee was one factor that prolonged capital flow bottleneck and loss of confidence among the investing public.
Persama and the Association of Stock Broking Companies had on June 13 agreed on a standardised transaction cost but this was verbally turned down by the Securities Commission.
"We disagree with the current method of brokerage liberalisation," he told Bernama after the association's annual general meeting here today.
At present, the fee structure was to the advantage of local and foreign fund managers and to the disadvantage of retail participants.
"If trading participants believe the current rate is too high, then how low do they want the fee to be?.
"It is unfair to go to zero rate to manage listed companies price volatility as it would result in malpractices and loss of confidence," he added.
Source- BERNAMA
MAHB Chairman Extends Support For Bashir To Stay On As Managing Director
7 Muharram 1433 Hijrah
SEPANG, Dec 2 ,2011- Malaysia Airports Holdings Berhad (MAHB) chairman Tan Sri Dr Aris Othman extended his full support to a proposal to extend the service of Tan Sri Bashir Ahmad as the company's managing director.
"I can say with confidence that the entire Board of Directors will extend their full support to him being retained as the managing director.
"In my opinion, the current situation is critical from the aspect of our standing and development. We should not make any changes whatsoever, particularly for this position," he said.
Aris was speaking at the 6th joint signing ceremony with the Peninsular, Sabah/Labuan and Sarawak, Malaysia Airports Holdings Berhad Workers Unions, here.
Bashir's position as managing director came under question again following a media report that he would be replaced by Pos Malaysia Berhad Chief Executive Officer (CEO), Datuk Syed Faisal Albar Syed Albar, whose contract ends at the end of this month.
Bashir's contract with MAHB ends in June next year.
The proposal to extend Bashir's service was voiced by the President of the Peninsular, Malaysia Airports Holdings Berhad Workers Union, Hussin Shaharn at the same ceremony.
It was also proposed at the event that a memorandum be sent to the Prime Minister, Datuk Seri Najib Tun Razak, on the proposal.
Hussin also proposed that another memorandum be sent to the Prime Minister on the confusion at the Low Cost Carrier Terminal (LCCT)yesterday in relation to the, "Say No To Airport Tax Increase", by Air Asia.
Air Asia is protesting MAHB's decision to raise the airport tax by between RM7 to RM14 at its five airports in the country, effective Thursday.
Source:BERNAMA
SEPANG, Dec 2 ,2011- Malaysia Airports Holdings Berhad (MAHB) chairman Tan Sri Dr Aris Othman extended his full support to a proposal to extend the service of Tan Sri Bashir Ahmad as the company's managing director.
"I can say with confidence that the entire Board of Directors will extend their full support to him being retained as the managing director.
"In my opinion, the current situation is critical from the aspect of our standing and development. We should not make any changes whatsoever, particularly for this position," he said.
Aris was speaking at the 6th joint signing ceremony with the Peninsular, Sabah/Labuan and Sarawak, Malaysia Airports Holdings Berhad Workers Unions, here.
Bashir's position as managing director came under question again following a media report that he would be replaced by Pos Malaysia Berhad Chief Executive Officer (CEO), Datuk Syed Faisal Albar Syed Albar, whose contract ends at the end of this month.
Bashir's contract with MAHB ends in June next year.
The proposal to extend Bashir's service was voiced by the President of the Peninsular, Malaysia Airports Holdings Berhad Workers Union, Hussin Shaharn at the same ceremony.
It was also proposed at the event that a memorandum be sent to the Prime Minister, Datuk Seri Najib Tun Razak, on the proposal.
Hussin also proposed that another memorandum be sent to the Prime Minister on the confusion at the Low Cost Carrier Terminal (LCCT)yesterday in relation to the, "Say No To Airport Tax Increase", by Air Asia.
Air Asia is protesting MAHB's decision to raise the airport tax by between RM7 to RM14 at its five airports in the country, effective Thursday.
Source:BERNAMA
Thursday, December 1, 2011
Malaysia To Outperform In Tough First Quarter, 2012, Says Goldman Sachs
6 Muharram 1433 Hijrah
KUALA LUMPUR, Dec 1 ,2011- Malaysia is expected to outperform in a tough first quarter next year against the expected downside for the region, says Goldman Sachs.
The international research house says Malaysia is seen as a safe haven given the uncertain global economic environment.
However, overall, it expects the country to underperform next year.
"We find the Malaysian market is least sensitive to growth factors across Asia," it said in the Goldman Sachs Global Economics, Commodities and Strategy Research on 2012 Outlook.
It said the government's initiatives to boost investments via the Economic Transformation Programme (ETP) continued to gain momentum as reflected in the rising public and private investments.
"We believe investors are not yet fully aware of the economic potentials from these efforts and that this "investible gap" constitutes an attractive opportunity," it said.
Goldman Sachs also said the banking industry would be a good proxy for Malaysia's defensive domestic demand and with huge captive onshore capital, not withstanding its moderate non-performing loan risks.
It expects the ETP to mitigate some potential downside risks to the sector next year, with more private sector involvement.
Goldman Sachs said it has classified the Malaysian market outlook to overweight.
Earnings growth and contribution to growth would be primarily propelled by domestic demand sectors, spanning from consumer staples and plantation stocks to gaming and hotel operators, it added.
Source :BERNAMA
KUALA LUMPUR, Dec 1 ,2011- Malaysia is expected to outperform in a tough first quarter next year against the expected downside for the region, says Goldman Sachs.
The international research house says Malaysia is seen as a safe haven given the uncertain global economic environment.
However, overall, it expects the country to underperform next year.
"We find the Malaysian market is least sensitive to growth factors across Asia," it said in the Goldman Sachs Global Economics, Commodities and Strategy Research on 2012 Outlook.
It said the government's initiatives to boost investments via the Economic Transformation Programme (ETP) continued to gain momentum as reflected in the rising public and private investments.
"We believe investors are not yet fully aware of the economic potentials from these efforts and that this "investible gap" constitutes an attractive opportunity," it said.
Goldman Sachs also said the banking industry would be a good proxy for Malaysia's defensive domestic demand and with huge captive onshore capital, not withstanding its moderate non-performing loan risks.
It expects the ETP to mitigate some potential downside risks to the sector next year, with more private sector involvement.
Goldman Sachs said it has classified the Malaysian market outlook to overweight.
Earnings growth and contribution to growth would be primarily propelled by domestic demand sectors, spanning from consumer staples and plantation stocks to gaming and hotel operators, it added.
Source :BERNAMA
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
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.
Source:BERNAMA
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.
Source:BERNAMA
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
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
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