5 Zulkaedah 1434
PADANG BESAR: Malaysia's smallest state, Perlis, promises high-speed broadband connectivity for its residents and investors by next year.
The RM43 million project, which covers the entire state, is a colla-boration between the Perlis government, Northern Corridor Implementation Authority (NCIA) and Telekom Malaysia Bhd.
Its Menteri Besar Azlan Man said the project will be carried out in two phases. Work on the first phase, which will cover Kangar and Arau, will start early next month.
"The estimated cost for the project in Kangar alone is about RM12 million. Once Phase One is concluded, work on Phase Two in Padang Besar, will resume."
Information and communications technology is a must if Perlis is to attract investors, adding that a mega project such as this will have a spillover effect on the entire state, said Azlan at a "Perlis Maju 2015" programme yesterday.
Meanwhile, NCIA chief executive Datuk Redza Rafiq Abdul Razak said the project is meant to generate a condusive environment for the private sector and the people of Perlis.
Read more: BTimes
Tuesday, September 10, 2013
Monday, August 12, 2013
TPPA: Its benefits and challenges
IMPORTANT INITIATIVE: Country’s GDP set to improve, while
its goods and services will reach a wider market, says Miti
The agreement covers
new elements such as competition, labour, environment, government procurement
and intellectual property rights. The International Trade and Industry Ministry
(Miti) has put together a Q&A (question and answer) to address public
concerns and fears about the ongoing talks.
Here are the excerpts from part one:
Question: What is the rationale of joining the TPPA
negotiations?
Answer: The
government views the TPPA as an important initiative as Malaysia seeks to
expand market access opportunities, enhance its competitive advantage and build
investor confidence. The comprehensive study conducted by the United Nations
Development Programme (UNDP) also identified several major economic benefits to
Malaysia, including welfare gains of 1.46 per cent and higher wages for skilled
and unskilled labour by 2020, in addition to improved GDP growth due to greater
market access among member countries.
The successful
conclusion of the TPPA will form a huge market of 800 million people with a
combined GDP of US$27.5 trillion. This far surpasses Malaysia's limited
domestic market of 29.5 million people and a GDP of US$300 billion.
According to a simulation study done by the Peterson
Institute of Economics in June last year, by 2025, Malaysia will benefit with
an increase in gross national income by RM26.3 billion and increase in exports
of RM41.7 billion.
Admittedly, the government is aware of the challenges and
controversies surrounding the TPPA because unlike other FTAs, it is
comprehensive and covers more areas of interest, which would naturally invite
more public opinion and debate. The government appreciates all views expressed
on the TPPA and will continue to engage the stakeholders and NGOs for inputs
and feedback.
Question: What are the benefits of TPPA for Malaysia?
Answer: Consultations with various stakeholders prior to
joining TPPA negotiations have revealed an increasing request from Malaysian
companies for more open markets and trade facilitative measures. There are
increasing numbers of Malaysian companies becoming global investors and they
require a level of predictability that can be guaranteed effectively through
binding agreements like FTAs.
Concurrently, there
is also interest from foreign companies from non-TPPA countries that are
exploring Malaysia as a base for their operations as the hope to enjoy the
benefits of the TPPA. The combination of greater market access for Malaysian
products and services under the TPPA and the continued inflow of foreign
investments will create a powerful catalyst in driving Malaysia's economic
transformation agenda.
With TPPA, Malaysia will become an integral part of the
greater economic integration within the Asia- Pacific region. It will also
significantly enhance Malaysia's engagement with important trading partners such
as the US, Canada, Mexico and Peru. As a member of TPPA, Malaysia will also be
able to increase it participation in the regional supply and value chains and
facilitate access for Malaysian products and services into bigger markets.
Question: What are the challenges of the TPPA for Malaysia?
Answer: The
government is aware of the many benefits and the challenges involved. For
instance, government procurement is one of the new elements in TPP, which was
never part of the FTAs that Malaysia has signed. This is one strategic area the
government is negotiating cautiously, after taking into consideration feedback
from stakeholders, particularly on the concern of safeguarding the interest of
local enterprises and the Bumiputera commercial and industrial community.
Intellectual Property Rights (IPR) is another difficult
area. One of the main concerns on IPR revolves around access to affordable
medi-cine and healthcare as well as longer protection term which might delay
manufacturing of generic drugs.
Malaysian negotiators will continue to negotiate an outcome
that will give Malaysians access to affordable medicine and healthcare.
Question: What will happen if Malaysia does not join the
TPPA?
Answer: The TPPA offers Malaysia an opportunity to be part
of a consumer market with 800 million people. Abandoning the TPPA negotiations
now would mean allowing other countries to set the terms of agreement without
considering Malaysia's interests and concerns. Acceding to the TPPA later would
result in Malaysia having to accept the rules, disciplines, terms and
conditions decided by others.
By not joining the TPPA, Malaysia would be at a disadvantage
in terms of seeking bigger and better market access for its products and
services. The impact of that disadvantage will be even more significant should
countries like China, Indonesia and other competitors decide to join later.
Once realised, the TPPA will result in a huge consumer
market for Malaysian goods and services. Market access to 800 million people is
not an opportunity we can afford to miss, especially since we are an open
economy highly dependent on international trade. In an increasingly competitive
global environment, our absence will make Malaysia less attractive as an
investment destination, compared with those that are TPPA members. As investors
avoid Malaysia, this could result in fewer opportunities for job creation.
Question: Who is in charge of the TPPA negotiations?
Answer: The cabinet has mandated Miti to coordinate
Malaysia's participation in the TPPA negotiations. Miti acts as the chief
negotiator but other ministries and agencies will lead the working groups for
areas under their responsibility. (See Table 1).
With the mandate from the cabinet, the lead ministries and
agencies involved are focused on safeguarding Malaysia's best interest in the
ongoing negotiations. Before every negotiating round, the cabinet is briefed on
all issues, and for the necessary mandate to be given to all negotiators.
Question: Was there a lack of consultation in forming
Malaysia's position in TPPA?
Answer: The government admits more consultations could have
been carried out. In this regard, Miti has made many statements assuring the
public that consultations have been carried out by negotiators in their
respective fields.
It had also organised a TPPA open day on August 1 to update
the public and the media on issues surrounding TPPA, to clear misconceptions
about it and to hear the public's concerns about it.
Miti welcomes the establishment of a bipartisan caucus in
Parliament. Its minister had met and briefed the caucus on developments and
issues concerning the matter. The caucus provided constructive inputs to the
government.
It must be noted that inputs and feedback from industry
associations, interest groups and business chambers play a key role in the
formation of Malaysia's negotiating positions. To illustrate a point,
Malaysia's position in the negotiations on government procurement, led by the
Finance Ministry, strongly reflects the concerns of stakeholders, the
Bumiputera business community and state-owned enterprises (SOEs) as well as
that the small and medium enterprises (SMEs).
Malaysia has also
maintained the rights of all states on matters related to land and water. On
SOEs, Malaysia's position is determined by the Finance Ministry and Khazanah
Nasional Bhd.
The government will continue to engage all stakeholders. In
addition to the open day, Miti met the Coalition to Act Against the TPPA
Malaysia on August 6 and discussed ways to enhance engagement with
stakeholders. Miti welcomes feedback and opinion from all parties regarding the
TPPA.
Question: Why the secrecy in TPPA negotiations?
Answer: While the negotiating texts have never been made
public as negotiations are ongoing, the government has and will continue to
share its negotiating position with relevant stakeholders during the
consultation sessions.
A level of confidentiality is required for two main reasons:
(a) regulations and the evolving process of negotiations and rules surrounding
TPPA oblige negotiators to maintain confidentiality of the negotiating texts
and (b) negotiators advancing the interests of Malaysia, strategically do not
want to publically disclose their bargaining positions to ensure the best
outcome during the negotiations.
Mindful of the public feedback, the Miti minister will put
this issue on the agenda of the forthcoming TPP Ministerial Meeting in Brunei.
Question: Why rush TPPA by October this year?
Answer: As in all negotiations, there is a need to work
towards a target date to conclude negotiations. It should be noted that the
Trans Pacific Partnership Leaders Statement issued on November 12 2011, in
Honolulu, clearly called on the negotiating teams to continue talks with other
Asia-Pacific partners that have expressed interest in joining the TPPA in order
to facilitate their future participation. TPPA leaders have set an October
target for substantial conclusion of the negotiations.
However, this is not a definitive deadline for the
conclusion of the TPPA as the parties involved are still negotiating on a
number of sensitive issues. It is in Malaysia's best interest that TPPA is
concluded in a manner that benefits the people.
Question: Why is China not in the TPPA?
Answer: The position of all TPPA members is for this
agreement to be a building block for the Free Trade Agreement of the Asia
Pacific (FTAAP), which will encompass all the Asia-Pacific Economic Cooperation
(Apec) economies, of which China is also a member. Membership in TPPA is
voluntary. Every Apec member, including China, is free to decide when to join
TPPA.
China is a very important trading partner to Malaysia. As
such, Malaysia certainly welcomes China into the TPPA.
Read more: TPPA: Its benefits and challenges at Btimes
OSK takeover offer not fair, says Affin
6 Syawal 1434
KUALA LUMPUR: Tan Sri Ong Leong Huat has suffered a setback
in his bid to take OSK Holdings Bhd private after his offer was described as
“not fair” and “not reasonable” by the independent adviser for the corporate
exercise.
Affin Investment Bank
Bhd said the offer price for OSK shares is “not fair” as it is below the fair
value of the company.
Affin had based the fair value of OSK shares using the
revised net asset value (RNAV) concept.
OSK is estimated to have a RNAV of between RM1.88 and RM2.15
per share.
The net asset per share of OSK, meanwhile, stands at RM2.57
a share, meaning that the offer price by Ong is based on an implied
priceto-book ratio (PBR) of 0.65 times.
“This is lower than
the lowest unaudited PBR of comparable companies of 1.0 times and also lower
than the average unaudited PBR of comparable companies of 1.57 times,” Affin
said in a statement to OSK shareholders.
To recap, Ong is seeking to take OSK private through OSK
Equity Holdings Sdn Bhd, which after a series of corporate deals, has a stake
in OSK above the 33 per cent cut-off point.
OSK Equity is 99 per cent controlled by Ong, who is also the
managing director of OSK.A party that breaches the 33 per cent cut-off point in
ownership is required by law to make a mandatory offer for the shares it does
not already own.
Read more: OSK takeover offer not fair, says Affin at BTimes
UMC completes Silterra stress test
6 Ramadhan 1434
TAIWAN’S United Microelectronics Corp (UMC), the world’s No. 3 contract chipmaker, has completed a stress test on Silterra Malaysia Sdn Bhd, people familiar with the matter said yesterday.
It is understood that two other potential buyers from China are waiting in the wings to take over the Malaysian chipmaker in the event the UMC deal does not go through.
Silterra, the country’s first chip fabrication company, is 98 per cent-owned by government investment holding arm Khazanah Nasional Bhd.
Business Times understands that UMC has completed due diligence on Silterra, raising expectations in the marketplace that Khazanah may off-load the chipmaker.
It is understood that two other potential buyers from China are waiting in the wings to take over the Malaysian chipmaker in the event the UMC deal does not go through.
Silterra, the country’s first chip fabrication company, is 98 per cent-owned by government investment holding arm Khazanah Nasional Bhd.
Business Times understands that UMC has completed due diligence on Silterra, raising expectations in the marketplace that Khazanah may off-load the chipmaker.
Khazanah has sold 55 assets worth RM35.7 billion from 2004
until last year. Chief among its sale of strategically important companies are
Proton Holdings Bhd and Pos Malaysia Bhd.
Silterra, which lists itself as a project of national
interest, has failed to meet profit targets as well as a listing on the New
York-based Nasdaq in the second quarter of 2002.
Outside Malaysia, Silterra is highly regarded with the
company being ranked No. 15 (based on revenue) in the global ranking ofleading
pure-play foundries.
Silterra serves the mature tech segment of the market,
valued globally at US$30 billion (RM97.25 billion) per year.
This has helped Silterra rake in profits of about RM50 million
a year over the past five years, though legacy issues have capped its
potential.
Silterra had cumulative losses totalling RM7.3 billion for
10 years up to 2011, putting pressure on its stakeholders to pump in more
capital into the company.
Read more: UMC completes Silterra stress test
http://www.btimes.com.my/Current_News/BTIMES/articles/20130812232059/Article/index_html#ixzz2bnqhc500
Wednesday, February 27, 2013
Malaysia Records RM139.5 Billion Realised Private Investment In 2012, Surpasses Target
17 Rabiulakhir 1434
KUALA LUMPUR, Feb 27 , 2013- Malaysia recorded RM139.5 billion in realised private investment last year, surpassing by 9.1 per cent the targeted investment of RM127.9 billion, Minister of International Trade and Industry Datuk Seri Mustapa Mohamed said Wednesday.
Compared with 2011,the realised private investment grew 24.8 per cent from RM111.8 billion, he said.
Unveiling the investment performance for 2012, Mustapa said Malaysia attracted RM162.4 billion in approved investments last year, which was also the highest amount of investments ever despite the uncertain global economic conditions.
"Of the total investments approved, RM127.6 billion (78 percent) were contributed by domestic investments (DDI) and RM34.8 billion (22 percent) came from foreign investments.
"It is heartening to note that domestic investment inflows increased substantially by almost four times the FDIs achieved in 2012, a sure sign of confidence local business have in the country's ability to prosper its investors" he told reporters here Wednesday.
Of this, Mustapa said services accounted for 72.4 percent, manufacturing was 25.3 percent while primary sectors were at 2.3 percent.
"Much of 2012's investments were in the new and emerging technologies, particularly within the aerospace, semiconductors, solar, machinery and equipment, biotechnology, petroleum and petrochemical products and medical devices industries as well as the oil and gas services sector," the minister said.
The investments approved were in 6,442 projects and are expected to generate 182,841 job opportunities.
When asked whether the trend of declining FDI and increasing DDI would sustain in the coming years, he said last year was a bad year for FDI not only for Malaysia but also globally with some developed countries facing a recession while some Asian economies were experiencing lower growth.
"We believe there will be some recovery in the global economy. Europe and America will help to push the FDI numbers somewhat, so that's our expectation. We are expecting at least US$12 billion in terms of FDI this year, same as last year, with some recovery in electrical and electronics (E&E), which will certainly contribute to FDI this year," he said.
However, Mustapa said the DDI and FDI ratio which was about 78 and 22 percent respectively, was in line with the government's goal under the Economic Transformation Programme (ETP) in encouraging DDI to take the lead in driving the country's economic transformation on the back of global economic uncertainties.
As for this year's target, Mustapa said the government is looking at a similar 20 percent growth for private investment as reflected in realised investment and approved investment last year which grew by more than 20 percent.
Asked whether the upcoming election will affect the private investment numbers this year, he said that will not be the case.
"As we saw, last year was also rumoured to be an election year but we have done extremely well. From my conversation with investors, nobody is witholding this year's investment decisions. You can see it in Iskandar Malaysia, Medini as well as the Malaysia-China Kuantan Industrial Park (MCKIP), where there is continued foreign investment interest," he said.
Mustapa said Malaysia's reputation as a global and regional hub for manufacturing and services, has managed to attract investments that will accelerate the country's shift to high value-added, high technology, knowledge-intensive and innovation-based industries.
More information: BERNAMA
KUALA LUMPUR, Feb 27 , 2013- Malaysia recorded RM139.5 billion in realised private investment last year, surpassing by 9.1 per cent the targeted investment of RM127.9 billion, Minister of International Trade and Industry Datuk Seri Mustapa Mohamed said Wednesday.
Compared with 2011,the realised private investment grew 24.8 per cent from RM111.8 billion, he said.
Unveiling the investment performance for 2012, Mustapa said Malaysia attracted RM162.4 billion in approved investments last year, which was also the highest amount of investments ever despite the uncertain global economic conditions.
"Of the total investments approved, RM127.6 billion (78 percent) were contributed by domestic investments (DDI) and RM34.8 billion (22 percent) came from foreign investments.
"It is heartening to note that domestic investment inflows increased substantially by almost four times the FDIs achieved in 2012, a sure sign of confidence local business have in the country's ability to prosper its investors" he told reporters here Wednesday.
Of this, Mustapa said services accounted for 72.4 percent, manufacturing was 25.3 percent while primary sectors were at 2.3 percent.
"Much of 2012's investments were in the new and emerging technologies, particularly within the aerospace, semiconductors, solar, machinery and equipment, biotechnology, petroleum and petrochemical products and medical devices industries as well as the oil and gas services sector," the minister said.
The investments approved were in 6,442 projects and are expected to generate 182,841 job opportunities.
When asked whether the trend of declining FDI and increasing DDI would sustain in the coming years, he said last year was a bad year for FDI not only for Malaysia but also globally with some developed countries facing a recession while some Asian economies were experiencing lower growth.
"We believe there will be some recovery in the global economy. Europe and America will help to push the FDI numbers somewhat, so that's our expectation. We are expecting at least US$12 billion in terms of FDI this year, same as last year, with some recovery in electrical and electronics (E&E), which will certainly contribute to FDI this year," he said.
However, Mustapa said the DDI and FDI ratio which was about 78 and 22 percent respectively, was in line with the government's goal under the Economic Transformation Programme (ETP) in encouraging DDI to take the lead in driving the country's economic transformation on the back of global economic uncertainties.
As for this year's target, Mustapa said the government is looking at a similar 20 percent growth for private investment as reflected in realised investment and approved investment last year which grew by more than 20 percent.
Asked whether the upcoming election will affect the private investment numbers this year, he said that will not be the case.
"As we saw, last year was also rumoured to be an election year but we have done extremely well. From my conversation with investors, nobody is witholding this year's investment decisions. You can see it in Iskandar Malaysia, Medini as well as the Malaysia-China Kuantan Industrial Park (MCKIP), where there is continued foreign investment interest," he said.
Mustapa said Malaysia's reputation as a global and regional hub for manufacturing and services, has managed to attract investments that will accelerate the country's shift to high value-added, high technology, knowledge-intensive and innovation-based industries.
More information: BERNAMA
Monday, February 25, 2013
RHB Research Maintains neutral Call On Nestle
15 Rabiulakhir 1434
KUALA LUMPUR, Feb 25 , 2013 - RHB Research has maintained a "neutral" call on Nestle (Malaysia) Bhd, with an unchanged fair value of RM61.38.
The research house said Nestle's better performance last year in securing a net profit of RM505.4 million, with an increase of 18.3 per cent year-on-year due to robust domestic sales, aided by its 100th anniversary in Malaysia marketing promotions.
"While domestic spending is projected to be relatively resilient this year, we are cautious on the impact on consumer spending from potential subsidy rationalisation post-general election," RHB Research said in a statement.
However, Nestle's strong brands and market position would enable the group to weather any weakness in consumer spending, it said.
More information: BERNAMA
KUALA LUMPUR, Feb 25 , 2013 - RHB Research has maintained a "neutral" call on Nestle (Malaysia) Bhd, with an unchanged fair value of RM61.38.
The research house said Nestle's better performance last year in securing a net profit of RM505.4 million, with an increase of 18.3 per cent year-on-year due to robust domestic sales, aided by its 100th anniversary in Malaysia marketing promotions.
"While domestic spending is projected to be relatively resilient this year, we are cautious on the impact on consumer spending from potential subsidy rationalisation post-general election," RHB Research said in a statement.
However, Nestle's strong brands and market position would enable the group to weather any weakness in consumer spending, it said.
More information: BERNAMA
Nestle Withdraws Exemption Application
15 Rabiulakhir 1434
KUALA LUMPUR, Feb 25 , 2013 - Following a series of discussions with the Malaysia Competition Commission (MyCC), Nestle Sdn Bhd has withdrawn its application for individual exemption.
In a statement issued today, MyCC said Nestle had previously filed an individual exemption application to exclude its pricing policy called the Brand Equity Protection Policy (BEPP) from the Competition Act 2010 (CA2010).
Nestle's pricing policy was a major concern for the MyCC as it has elements of Resale Price Maintenance (RPM), an anti-competitive conduct that prevents resellers from setting their prices independently, potentially leading to increased prices for consumers.
"While the MyCC recognises the rights of Nestle to promote and enhance its brand equity under the BEPP, the pricing policy as contained in the BEPP was likely to infringe section 4(1) of the CA2010 as it essentially constitutes a RPM.
More information: BERNAMA
In a statement issued today, MyCC said Nestle had previously filed an individual exemption application to exclude its pricing policy called the Brand Equity Protection Policy (BEPP) from the Competition Act 2010 (CA2010).
Nestle's pricing policy was a major concern for the MyCC as it has elements of Resale Price Maintenance (RPM), an anti-competitive conduct that prevents resellers from setting their prices independently, potentially leading to increased prices for consumers.
"While the MyCC recognises the rights of Nestle to promote and enhance its brand equity under the BEPP, the pricing policy as contained in the BEPP was likely to infringe section 4(1) of the CA2010 as it essentially constitutes a RPM.
More information: BERNAMA
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