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This digi
FBM KLCI 1758.15
27.82
KLCI FUTURES 1754.00
35.50
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18.93
RM/USD 3.4400
CPO RM2170.00
30.00
OIL US$70.79
0.25
GOLD US$1202.20
PP 9974/08/2013 (032820)
PENINSULAR MALAYSIA RM1.50
THURSDAY DECEMBER 4, 2014 ISSUE 1853/2014
FINANCIAL
DAILY
MAKE
BETTER
DECISIONS
www.theedgemarkets.com
4 HOME BUSINESS
Energy unit drops
‘1MDB’ in name
change
5 HOME BUSINESS
GDex needs
RM200m fresh
capital for regional
expansion
6 HOME BUSINESS
Magna Prima defers
RM1.8b project on
Lai Meng school land
17 C O M M E N T
Asia’s route to riches?
2 8  2 9 L I VE I T !
Victoria’s Secret
‘Angels’ strut in
London for first time
Petronas doesn’t have full say on
dividend paid to govt, says Chua
7 HOME BUSINESS
3.00
2
T HUR SDAY DEC EM B ER 4, 2 0 14 • TH EEDGE F I N AN C I AL DAI LY
For breaking news updates go to
ON EDGE T V
M’sia’s ranking
on TI’s graft index
improves slightly
‘MOL Global
unfairly punished’
Says Vincent Tan as stock plunges to US$1.69 from US$8.86
BY SHALINI KU M AR
Free floating of
pump price may
pose pricing
problems: Govt
Rolls-Royce sees
rise in ultrahigh-net-worth
individuals in M’sia
The Edge Communications Sdn Bhd
(266980-X)
Level 3, Menara KLK, No 1 Jalan PJU 7/6,
Mutiara Damansara, 47810 Petaling Jaya,
Selangor, Malaysia
KUALA LUMPUR: Tan Sri Vincent Tan Chee Yioun feels that the
share price of Nasdaq-listed MOL
Global Inc, in which he personally
holds a majority stake, has been
unfairly punished by “unhealthy
speculation”.
After the announcement on a
sharp fall in earnings on Monday,
Tan issued a statement to express
his confidence in MOL Global’s
prospects and its management.
In a statement yesterday, Tan
said, “I have the utmost confidence
in the management and MOL [Global], and none of these unfortunate
events alters my very positive view
of the underlying business of MOL.
“I have communicated my support to the management team at
MOL, and while I know they are
currently working very hard on
addressing the issues that have
arisen, I have encouraged them
to continue to remain focused on
executing their business plans.”
Tan explained that MOL Global
has encountered some difficulties
over the last several days relating to
an accounting error at its Vietnam
subsidiary, a delayed earnings release, trading halt and the departure of its chief financial officer,
Allan Wong.
“The timing of Allan’s departure
for personal reasons, which unfortunately coincided with the delay in
the earnings release, has resulted
in some unhealthy speculation on
the company’s financial numbers,
and the stock price has been, in my
view, unfairly punished,” he said.
Tan also noted that he was supportive of MOL Global’s decision to
implement a share buy-back plan,
as the stock was significantly undervalued currently.
MOL Global’s share price rebounded 116%, or US$1.96
(RM6.75) to close at US$3.65 on
Tuesday — giving it a market capitalisation of US$246.39 million.
The stock, which made its debut in the United States on Oct 9,
took a nosedive when news on
the company failing to release its
financial results on time spread in
late-November. The stock plunged
to US$1.69 on Monday from a peak
of US$8.86 on Nov 20, wiping out
a market capitalisation of about
US$484 million in a span of three
weeks.
On Monday alone, MOL Global
tumbled more than 60% after it announced that the company’s profit
attributable to shareholders shrank
61.5% to RM3 million for the third
quarter ended Sept 30. It attributed
the large profit contraction to the
rapid shift in consumer gaming
habits, who are now playing more
games on their smartphones, rather
than online.
Its revenue, however, rose 5.6%
from a year earlier to US$14.5 million.
Publisher and Group CEO Ho Kay Tat
Editorial
For News Tips/Press Releases
Tel: 03-7721 8219 Fax: 03-7721 8038
Email: [email protected]
Senior Managing Editor Azam Aris
Executive Editors Kathy Fong,
Jenny Ng, Siow Chen Ming,
Surinder Jessy, Ooi Inn Leong
Associate Editors R B Bhattacharjee,
Joyce Goh, Jose Barrock,
Vasantha Ganesan
Editor, Features Llew-Ann Phang
Deputy Editors Cindy Yeap,
Kang Siew Li
Assistant Editors Adeline Paul Raj,
Tan Choe Choe
Chief Copy Editor Halim Yaacob
Senior Copy Editors Marica Van
Wynen, Lam Seng Fatt,
Melanie Proctor
Copy Editors Evelyn Chan,
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Art Director Sharon Khoh
Design Team Cheryl Loh,
Valerie Chin, Aaron Boudville,
Aminullah Abdul Karim,
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Asst Manager-Editorial Services
Madeline Tan
Corporate
Managing Director Au Foong Yee
Deputy Managing Director
Lim Shiew Yuin
Advertising & Marketing
To advertise contact
GL: (03) 7721 8000
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Chief Marketing Officer
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The exchange of
documents between
Zhu (second from
left) and Rizal
being witnessed in
Beijing on Tuesday
by Muhyiddin
(centre), Liow (left),
and the Ministry of
International Trade
and Industry’s deputy
minister Datuk Lee
Chee Leong.
KUALA LUMPUR: Ever Nexus (M)
Sdn Bhd has teamed up with Shanghai-listed company Shanghai Jiaoda Onlly Co Ltd to set up a special
“green lane” trade access to China
via an exhibition and trade centre in
the Shanghai Free Trade Zone (FTZ).
Speaking at the signing ceremony in Beijing on Tuesday, Deputy
Prime Minister Tan Sri Muhyiddin
Yassin said Malaysia’s conducive
business climate, proven track record and chairmanship of Asean
next year, would be factors for further trade and investment between
the two countries.
Ever Nexus chairman Rizal Faris,
in an interview with The Edge Financial Daily, said the company will
bring to the joint venture its expertise
in developing product certification
processes and its extensive knowl-
Indonesia may disband or
relocate state oil trader
in corruption crackdown
JAKARTA: Indonesia may force
state giant PT Pertamina Tbk
to disband its Singapore trading unit or relocate it to bring
more transparency to operations that supply the country
with one-third of its daily oil
needs, said a member of the
government’s energy reform
team. Even before he took office in October, President Joko
Widodo had broached the subject of halting the trading activities of Pertamina Energy Trading Ltd (Petral) to crack down
on corruption. But it was the
first time a member of his government had raised the possibility of disbanding the Hong
Kong-based company, which
carries out most of its trades in
Singapore. — Reuters
UK to introduce cuts to
stamp duty for nearly
all homebuyers
LONDON: British finance
minister George Osborne said
yesterday he would introduce
sweeping cuts to stamp duty
for nearly all property purchases, addressing a long-standing
grievance of homebuyers five
months before an election. He
said the current system, where
the amount owed jumps at various threshold levels, would be
replaced from today by a graduated rate, similar to income tax.
Stamp duty is currently paid on
the total value of a home or land
over £125,000 (RM674,796) at a
rate that increases in stages as it
rises through the band thresholds in line with the value of the
property. — Reuters
Britain to scrap air travel
taxes for children
Special trade access to China
BY HALIM YAACO B
IN BRIEF
edge of products supply chain in
Malaysia and the Southeast Asian region. “It will also manage government
relations, and advise on supportive
policies and funding,” he added.
According to the Minister of
Transport Datuk Seri Liow Tiong
Lai, the Malaysia National Exhibition
and Trade Centre will be an exhibition and trade centre for Malaysian
products in China.
“It will consist of concept stores
in Shanghai, and mobile concept
stores with roadshows in the neighbouring provinces of the Yangzte
Triangle — which has a market size
of 150 million people,” said Liow.
Ever Nexus managing director
Dr Shahridan Faiez said: “With this
special green lane concept, we will
be able to ensure more effective
and targeted access of Malaysian
products [for] China”.
“We signed a memorandum of
understanding last month to set
up a joint venture that will create
a Malaysian “green lane”, an online
and offline platform and distribution network to supply Malaysian
products to the Chinese market,”
said Shahridan.
Shanghai Jiaoda Onlly president
and chairman of the board Zhu
Minjun said his company will plan,
manage and execute the joint venture’s programmes, and be responsible for establishing a centralised
platform for market research, information support, holistic business
design, value chain facilitation and
custom clearance services.
“We will also be responsible for
promoting the Malaysia National Exhibition and Trade Centre in China,”
he said, while adding that Onlly will
also contribute financial support for
the project, including issuing letters
of credit and providing guarantees.
LONDON: British finance minister George Osborne said he
would scrap a tax charged on
children flying out of the country, making it cheaper for families to travel. Presenting his
half-yearly budget statement to
parliament yesterday, Osborne
said that from May 1 next year,
air passenger duty (APD) would
not be charged on children under 12 and from 2016, it would
be abolished for all under-16s.
Britain’s APD is a tax of between
£13 (RM70.27) and £194 depending on flight distance and
class of travel charged on each
passenger leaving the country,
and which the airline industry
says has a negative impact on
the economy. — Reuters
US private-sector
hiring slows
WASHINGTON: Hiring in the
United States private sector
slowed in November but still
held at a solid growth rate, payroll company ADP said yesterday. Private payrolls rose by
208,000 in November, down
from a revised 233,000 increase
in October. Though the November jobs gain was well below
analysts’ consensus estimate of
225,000, it continued to show
solid job growth above 200,000,
ADP said. — AFP
01
02
4 HOME BUSINESS
Mokhzani buying back
SapuraKencana shares?
Qualitas
Healthcare to use
IPO proceeds
for expansion
BY A H MA D N AQ IB ID R IS
Reveals desire to deal in its shares during close period
THE EDGE FILE PHOTO
BY MA D I HA FUA D
KUALA LUMPUR: SapuraKencana
Petroleum Bhd vice-chairman Tan Sri
Mokhzani Mahathir (pic) and Yeow
Kheng Chew, the company’s non-executive director, have indicated their
intention to deal in SapuraKencana
shares during its close period.
A close period refers to the 30
days before the announcement
of a company’s quarterly results.
In a filing with Bursa Malaysia on
Tuesday, SapuraKencana said the
duo had indicated to the company their desire to deal in its shares
through Kencana Capital Sdn Bhd,
which is Mokhzani’s private vehicle,
during the close period.
While the announcement did
not say whether their intention is to
sell or buy SapuraKencana shares,
it is understood that the duo are
planning to buy the shares.
SapuraKencana saw its shares
battered along with other oil majors
since Monday after Petroliam Na-
sional Bhd group chief executive officer (CEO) Tan Sri Shamsul Azhar
Abbas said the company may cut
its 2015 capital expenditure by 15%
to 20% and the Organization of the
Petroleum Exporting Countries
decided to leave the cartel’s production quota unchanged.
On Monday, SapuraKencana’s
share price plunged 10.36% to
RM2.51 from last Friday’s close
of RM2.80, rebounding slightly to
RM2.56 on Tuesday in tandem with
the market. It closed down 4.69%
or 12 sen to RM2.44 yesterday. Year
to date, the oil and gas (O&G) stock
has fallen 49.9% and lost RM2.33
from its peak of RM4.77 on April 3.
Similarly, its market capitalisation has gone down by more
than half to RM14.62 billion from
RM28.58 billion at its peak this year.
In the latest selldown in O&G
stocks, SapuraKencana remained
one of analysts’ top picks in the
sector.
According to sources, the stock
currently has a single-digit price-earnings-ratio of 9.51 times, which is a
“good long-term investment”.
In February this year, Mokhzani and Yeow surprised the market
when they pared down their shareholdings in SapuraKencana and
relinquished their executive roles
in the company.
The two, through Khasera Baru
Sdn Bhd, another private vehicle of
Mokhzani, then sold some 190.32
million SapuraKencana shares
at RM4.30 apiece, amounting to
RM818.3 million.
After the disposal of the shares,
Khasera Baru’s shareholding was
reduced to 10.1%. According to
Bloomberg, the entity now holds a
9.12% stake.
Other major shareholders in the
company include Sapura Holdings
Sdn Bhd with a 16.71% stake, the
Employees Provident Fund (13.07%),
Seadrill Ltd (8.18%) and Skim Amanah Saham Bumiputera (6.23%).
When Mokhzani’s Kencana Petroleum Bhd merged with Tan Sri
Shahril Shamsuddin’s SapuraCrest
Petroleum Bhd in 2012, Mokhzani
had a stake of about 15% in SapuraKencana. Shahril, who is now SapuraKencana president and group
CEO, still has his interest of 16.71%
through Sapura Holdings.
In June last year, Mokhzani also
bought a stake of some 14% in Yinson Holdings Bhd when it was trading at around RM1.30.
Energy unit drops ‘1MDB’ in name change
BY B EN SHA NE L IM
KUALA LUMPUR: 1Malaysia Development Bhd (1MDB)’s energy
unit has been renamed Edra Global
Energy Bhd in what appears to be a
deliberate move to distance the unit
from its controversial parent ahead
of its multibillion ringgit listing.
It was originally supposed to
be 1MDB Energy Group Bhd. The
name change was submitted to the
Companies Commission of Malaysia on Monday.
“The name change is simply
good sense. This is a listing of energy assets that has nothing to do
with whatever allegations and problems that have been associated with
1MDB at the group level. Why take
that baggage with you to a listing?”
noted one industry executive who
is familiar with the group that has
come under intense public scrutiny
in the past few months.
This may also seem a prudent
move as 1MDB is expected to sell
off most of its stake in Edra Global to
pay off its mounting debts. This will
entail the group relinquishing some
management control in the process.
Based on previous reports in The
Edge weekly, 1MDB may retain as little as 20% equity post-listing, which
is substantial but barely enough to
be considered an associate company. At most, 1MDB is only expected
to retain slightly over 30% in the
soon-to-be listed company.
The size of the listing will also
be huge, with an estimated 4.4 billion shares for sale that will raise
upwards of RM9 billion. It is challenging for the local market to absorb an issuance of this size unless
valuations and growth prospects
are very attractive.
Earlier documents on the listing
show a 48% allocation for institutional investors, 24% for investors
determined by the Ministry of International Trade and Industry,
and an 8% retail portion.
The listing will also be marketed in the United States, with roadshows to begin early next year.
The last thing promoters need
with such a large issuance is the
stream of less-than-positive news
on 1MDB marring the listing.
1MDB has been criticised for
accumulating over RM41.9 billion
worth of debts within five years.
A large portion of the money has
been used to acquire assets at exorbitant prices.
The group seems to be struggling
to manage its huge debts now, requiring an extension on some RM2
billion worth of debts last week.
“Edra” means powerful or
wealthy and is an old name that is
used across many cultures. Investors interested in what comes with
the new name will have to wait for
Edra Global’s draft prospectus.
KUALA LUMPUR: Regional primary
healthcare provider Qualitas Healthcare Corp Bhd, which is slated for
listing on the Main Market of Bursa
Malaysia in 2015, plans to utilise a
major portion of its proceeds to finance its expansion plans.
According to its draft prospectus, the group will utilise 89.6% of
the proceeds from its initial public
offering (IPO) for strategic investments, acquisitions and general
corporate purposes.
Qualitas said it plans to expand the range of services it offers, improve its coverage in existing
markets, and enter new markets
through acquisitions.
The remainder 10.4% of the proceeds will be used to cover its listing expenses.
Reuters in a report yesterday said
bankers expect the exercise to raise
up to US$200 million (RM689.37
million) by the middle of next year.
The group is led by Datuk Noorul
Ameen, its founder and managing director. He holds 31.9 million
shares, representing a 5.11% equity
stake in Qualitas.
The group was previously listed
on the Catalist Board of the Singapore Exchange in 2008 via Qualitas
Medical Ltd. It was delisted in June
2011, following the acquisition of
its entire equity interest by Qualitas
Holdings Ltd.
As at Aug 31 this year, the group
owned and operated 109 primary
care centres, 19 dental clinics, 10
medical imaging centres and one
dental laboratory, with a total of
304 doctors.
The group currently has operations in Malaysia, Australia, Singapore and India.
Correction
In yesterday’s article “Job cuts in
TH Heavy amid dwindling order
book”, the quote in the caption for
the picture was wrongly attributed
to TH Heavy chief executive officer
Nor Badli Munawir Mohamad Alias
Lafti. The error is regretted.
Yeoh family raises shareholding in YTL Power
BY L I EW JI A TENG
KUALA LUMPUR: The Yeoh family
seems to be tightening its grip on
YTL Power International Bhd, the
utility arm of the YTL group.
YTL Corp Bhd, which is already
the controlling shareholder of YTL
Power, bought some 67.72 million
shares or 0.96% equity stake in the
utility group on Tuesday, according to a filing with Bursa Malaysia
yesterday.
The latest share purchase brings
YTL Corp’s direct and indirect
stakes to 56.75% or almost 3.98
billion shares.
Following the acquisition, the
shareholding of Tan Sri Dr Yeoh
Tiong Lay, the founder of YTL Corp,
has increased to 61.15%, while the
family’s investment vehicle Yeoh
Tiong Lay & Sons Holdings Sdn
Bhd’s shareholding is now 60.85%.
Tiong Lay is the executive chairman of both YTL Power and YTL
Corp.
While the block of shares purchased is not large, it raises the
question on the rationale behind
the acquisition. The Yeoh siblings
have also been actively converting
their warrants to YTL Power shares
in the past two months.
A check on the filings with Bursa Malaysia showed that at least 49
million warrants have been converted at the price of RM1.14 per
share since early October.
YTL Power managing director
Tan Sri Francis Yeoh Sock Ping exercised 13.33 million warrants on
Oct 21. The conversion, which cost
him about RM15.2 million, raised
his shareholding to 0.21% in the
utility group, up from 0.01% as at
Sept 26, 2014.
On the same day, Datuk Seri Michael Yeoh Sock Siong converted
7.66 million warrants, Datuk Yeoh
Seok Hong 13.53 million warrants
and Datuk Yeoh Soo Keng 5.18
million warrants.
Meanwhile, YTL Power deputy managing director Datuk Yeoh
Seok Kian converted 3.98 million
warrants and Datuk Yeoh Soo Min
exercised 3.76 million warrants.
Earlier on Oct 9, Datuk Mark
Yeoh Seok Kah also converted 1.6
million warrants.
According to YTL Power’s latest
annual report, the siblings’ combined direct and indirect stakes in
the company stood at 1.28% as at
Sept 26, 2014.
Bloomberg data showed that following the conversion of the war-
rants, their shareholding increased
to 1.87% as of today. All seven siblings are on the board of YTL Power.
The derivatives were issued in 2008
and will only expire on June 11, 2018.
The siblings have held on to the warrants for more than six years, thus raising the question on what prompted
them to convert the warrants now.
It came as a surprise when YTL
Power declared an interim dividend
of 10 sen per share for the fourth
quarter ended June 30. The ex-date
was on Oct 29. This may be a reason why the Yeoh family members
converted their warrants.
But could it be just that?
HOME BUSINESS 5
THU RSDAY D EC E MB E R 4, 2014 • T HEED G E FINA NCIA L DAILY
GDex needs RM200m
fresh capital for expansion
To set up ground operations in Indonesia
BY FOO Y EN N E
KUALA LUMPUR: GD Express Carrier Bhd (GDex) is exploring its options to raise about RM200 million
in the next 12 months to “speed
up” the express delivery company’s
plans to expand its footprint into
the Southeast Asian region.
“We are looking at possibilities
for aggressively expanding to the
whole Asean region, look at how
to raise additional capital through
borrowings or other instruments,”
managing director Teong Teck Lean
told reporters after the company’s
annual general meeting (AGM)
yesterday.
Teong added that GDex is also
considering the option of issuing
new shares of up to 10% of the
GDex’s issued share capital to raise
the necessary funds as the resolution to do so has just been approved
by shareholders at the AGM.
GDex is expected to use the new
Muhibbah bags
projects from
Westports
capital as well as its existing cash
pile of RM41.38 million as at Sept
30, 2014, to support the setting up of
its ground operations in Indonesia,
making it the third country where
the company has “full-fledged” operations in.
Currently, GDex only has a representative office in Jakarta, set up
to manage shipments to and from
the country and to study the Indonesian market before ground operations are set up there.
Even with the additional funds
raised, Teong said it will take at
least two to three years before GDex
can have a foothold in Indonesia.
However, he does not rule out the
possibility of forming partnerships
with regional operators which already have presence in Indonesia.
“We are preparing ourselves
for the expansion. Failing the two
or three years [timeline], I would
consider myself a failure. It has to
happen...our growth catalyst will
Teong said the company is looking at
possibilities for aggressively expanding
to the whole Asean region. The Edge
File Photo
have to come from this regional
expansion,” he continued.
Apart from Indonesia, GDex has
operations in Malaysia and Singapore. It also boasts Singapore Post
Ltd as a substantial shareholder,
holding a sizable 25.81% stake in
the company.
On the domestic front, GDex is
also not resting on its laurels. The
company controls an estimated
15% share of the express delivery
market in Malaysia and has kept a
steady compound annual growth
rate of 17% for its topline.
Despite that, the company is
aiming to further expand its fleet
of delivery trucks, double its package handling capacity at its warehouse and increase the number of
last mile delivery personnel in the
next year.
Specifically, Teong said GDex
had set aside RM15 million to RM20
million for capital expenditure for
the financial year ending June 30
2015 (FY15). The company is aiming to increase its fleet by another
100 trucks for FY15 and increase its
capacity to handle at least 150,000
packages per day due to the increase
in demand for its services.
YFG sees minimal revenue
impact from terminated job
TH Heavy falls
8.64% after
retrenchment
report
BY C H E N S H AUA F UI
KUALA LUMPUR: TH Heavy
Engineering Bhd dipped as
much as 3.5 sen or 8.64% after
The Edge Financial Daily (Edge
FD) reported that the company
is retrenching workers.
At market close yesterday,
the counter was at 37 sen,
with some 13 million shares
having changed hands, giving it a market capitalisation
of RM411 million.
The daily, quoting a memo
issued by TH Heavy to its staff,
reported that the firm had cut
its workforce effective Dec 1 in
order to withstand the current
headwinds in the oil and gas
(O&G) industry. The retrenchment comes amid tumbling
crude oil prices on oversupply
concerns.
The price trend does not
augur well for O&G support
services providers such as
TH Heavy, which has failed
to secure enough contracts
to weather the possible slowdown in the industry. Petroliam Nasional Bhd last Friday
announced a cut in capital expenditure by 15% to 20%.
Nexgram shares
tumble as much
as 12.5%
KENNY YAP
BY GHO C H EE Y UAN
BY JEFF REY TA N
KUALA LUMPUR: Muhibbah
Engineering (M) Bhd has secured a RM135 million contract from Westports Holdings
Bhd to construct and complete
the first 300 metres of Container Terminal 8 wharf and access
bridges and associated works
(Part A) at Westports, Pulau
Indah, Selangor.
Muhibbah announced to
Bursa Malaysia that it had received a letter of award yesterday from Westports Malaysia
Sdn Bhd, a wholly-owned subsidiary of Westport Holdings,
with regard to the contract.
Muhibbah said Westport
had an option, within six
months from the date of the
site possession for Part A, to
award Muhibbah the second
300 metres of Container Terminal 8 wharf (Part B) worth
RM256 million inclusive of government service tax.
“The possession of Part A is
scheduled for this month and
is expected to be completed
within 12 months from the date
of site possession,” it said. Part
B, if awarded, will be completed by the third quarter of 2016.
Muhibbah said the contract
is expected to contribute positively to the earnings and net
assets of the group for future
financial years.
KUALA LUMPUR: Electrical and
mechanical firm YFG Bhd, which
ventured into property development
last year, said it sees minimal impact
on its revenue from the termination
of the RM255.9 million contract by
Palikota Sdn Bhd to build Jesselton
Residences Waterfront in Kota Kinabalu, Sabah.
However, the impact on the
group’s net profit remains uncertain, said its deputy head of finance
and accounts, Wilson Ang.
“It will affect revenue, but the associated cost to that [contract] will
cease [to be accounted for], so the
impact is actually minimal,” he told
reporters after the group’s annual
general meeting yesterday.
Ang said it is still early to ascertain the impact on its profit as there
are a number of claims to be made
against Palikota.
“We have to wait until the hearing,” he added. YFG is set for an in-
ter-parte injunction hearing on Dec
9 after it was granted an injunction
by the Kuala Lumpur High Court on
Nov 26. The move prevents Palikota from calling on the performance
bond of RM12.8 million from YFG’s
banker, United Overseas Bank (M)
Bhd, until YFG’s claim of breach of
contract is heard and decided.
YFG had previously announced it
will sue Palikota for ending the contract, which was awarded to its sub-
sidiary YFG Trolka Sdn Bhd on Aug
1 last year.
YFG managing director Lim
Chong Ling (pic) said the firm will
provide further updates to Bursa
Malaysia on the suit.
Prior to receiving the notice of
contract termination from Palikota
and the call on performance bonds,
he said YFG had sought for mutual
termination following the discovery
of some technical issues. Lim said
YFG was not given time extension
for the construction of the project to
resolve the technical issues, which
Palikota viewed as a ‘delay’.
“We are arguing on the submission for the extension of time,
which was granted to us. So that is
the reason why we are challenging
it. I cannot disclose details to you
[now] because it is part of the court
hearing,” he added.
Meanwhile, YFG expects to win
30% of construction tenders worth
about RM500 million in the next
12 months.
KUALA LUMPUR: Shares in Nexgram Holdings Bhd dropped as
much as 12.5% or one sen to 7
sen yesterday. The stock was also
one of the most active counters
on Bursa Malaysia, with 14.84
million shares changing hands.
On Tuesday, its founder and
chief executive officer Tey Poh
Yee disposed of 1.48% stake in
the company.
Nexgram’s share price
touched an intraday high of 8
sen in early trade to end the day
at 7.5 sen, down 6.25% from the
previous day’s close.
Tey has been trimming his
stake in Nexgram since Nov 7.
He owned as much as 26.12%
of Nexgram as at May 8, 2014,
but subsequently reduced his
stake to 20.02% as of yesterday.
He also acquired 100,000
shares in Protasco Bhd on Tuesday. He now owns about 57.521
million shares or a 17.16% stake
in the company.
Berjaya Land proposes RM650m debt notes
BY GHO CHEE Y UAN
KUALA LUMPUR: Berjaya Land
Bhd (BLand), controlled by Tan
Sri Vincent Tan, is proposing to
set up a RM650 million 10-year
medium-term note programme
to refinance its borrowings and
reimburse investments made in
the hospitality and integrated development businesses.
In a statement yesterday, Malaysia Rating Corp Bhd (MARC) said
it has assigned an AAA rating for
the RM500 million portion guaranteed by Danajamin Nasional Bhd
and AAA for the RM150 million guaranteed by OCBC Bank (Malaysia)
Bhd, with a stable outlook. MARC
said BLand’s borrowings stood at
RM1.1 billion for the financial year
ended April 30, 2014 (FY14). MARC
also noted that Berjaya Sports Toto
Bhd (BToto) remained the key con-
tributor to the group, accounting
for 70.5% and 80% of consolidated
revenue of RM5 billion and operating profit of RM701.9 million
respectively in FY14.
Given BLand’s 40.8% stake in
BToto, dividends amounted to only
RM78.2 million in FY14, it added.
6 HOME BUSINESS
RM1.8b Lai Meng school
land project deferred
Awer: Make
Tanjung Bin
and Jimah East
pay for all
delay costs
Developer delaying development
of Iconic Towers by a year
BY GHO C H EE Y UAN
KUALA LUMPUR: Magna Prima Bhd
is postponing its RM1.8 billion mixed
development called Iconic Towers on
the Lai Meng school land on Jalan
Ampang here by a year to make way
for two other upcoming projects, said
its chief executive officer Datuk Rahadian Mahmud Mohammad Khalil.
“We will concentrate on the development of the RM90 million commercial property development in
Desa Mentari in Petaling Jaya and
the RM1.4 billion integrated development dubbed ‘Magna Eco-City’ in
Shah Alam,” Rahadian told reporters
after the company’s extraordinary
general meeting (EGM) yesterday.
He said that Iconic Towers, to
be built on a 2.62 acre (1.06ha)
site formerly occupied by Sekolah
Jenis Kebangsaan (C) Lai Meng, is
unlikely to take off within the next
year, he said.
“Since it will be the company’s
most high-profile development, we
are taking things slow and easy to
make sure the project comes out
perfect,” he added.
The group completed land acquisition for the project early this
year and had applied for a development order from the authorities,
he revealed.
The Iconic Towers project comprises two 60-storey towers, one of
which is a mixture of serviced apartments, hotel and offices, while the
other tower will consist of grade A
offices with Green Building index
elements.
On the group’s two upcoming
projects, Rahadian said Desa Mentari is set to start by the first quarter
of next year (1Q2015), while Magna
Eco-City will commence by 2Q2015.
Both projects are expected to be
completed in 18 months.
Meanwhile, Magna Prima is
expected to register substantial
sales proceeds from its maiden
overseas property development
project The Istana in Melbourne,
The developer has
postponed the mixed
development on the
Lai Meng school land
in Jalan Ampang to
‘concentrate on a
commercial property
development in Desa
Mentari in Petaling
Jaya and the integrated
development Magna
Eco-City in Shah Alam’.
The Edge file photo
Australia, next year.
Rahadian declined to disclose
the amount likely to be recognised
by the group, only saying that the
gross development value of the
project is A$210 million (RM608.38
million).
The Istana comprises a 25-storey
apartment building on a 2,700 sq m
piece of land. It will have 320 units
with built-ups ranging from 403 sq
ft to 4,458 sq ft. The 403 sq ft 1-bedroom unit is priced from A$309,000,
while the 4,458 sq ft 2-storey penthouse is priced at A$1.3 million.
Rahadian hinted that sales pro-
ceeds from The Istana would be
used for the group’s iconic development in Jalan Ampang and possible
mergers and acquisitions activities.
“We have to diversify [our business] slightly as our earnings mainly
come from property development.
We are also looking to buy small
parcels of land within Klang Valley
to replenish our land bank,” he added. The group only has 28 acres of
undeveloped land bank on hand.
Magna Prima shares closed unchanged at 89 sen yesterday, giving
it market capitalisation of RM296.27
million.
‘Oil prices could dip to US$50 if sanctions lifted’
BY L EVI N A L I M
KUALA LUMPUR: The lifting of
permanent sanctions against Iran,
which would unlease an additional
1.8 million barrels of oil per day into
the market, could drive crude oil
prices to as low as US$50 (RM172)
per barrel, said Institute of Chartered Accountants in England and
Wales (ICAEW) chief economist
Douglas McWilliams (pic).
“The lifting of sanctions is likely
to reduce oil prices by (another)
US$10 due to additional production
from Iran. There is a 95% chance that
negotiations between the United
States and Iran will pan out and the
sanctions to be lifted by next year,”
he told a press conference to reveal
ICAEW’s latest Economic Insight report yesterday.
McWilliams, who is also Centre for Economics and Business
Research Ltd executive chairman,
said despite high volatility in oil
prices in the short term, oil prices
are likely to hover within the range
of US$75 to US$80 per barrel in
the longer term, due to increased
activity in non-conventional energy resources and the competition
dynamics between China and the
US in shale production.
“Depending on how aggressively
they want to run the price war and
also whether there will be a deal with
Iran [as it adds extra supply], there is
a chance that oil prices could go as
low as US$50 per barrel,” he added.
Nevertheless, McWilliams reckoned that even if this happens, the oil
price might not stay low at US$50 per
barrel for more than three months.
“It wouldn’t stay low for too long
because low oil prices would provide a boost to the world economy
[such that] demand will pick up and
[subsequently] the price [of oil] will
also pick up,” he said.
McWilliams expects the oil and
gas services industry to be the most
adversely affected due to an expected slowdown in exploration
and development of oilfields — its
worse since the mid-1980s owing
to a likely slowdown in the price
of oil in the next six to 12 months.
However, he expects the low price of
oil will provide the greatest benefits
for local industries such as metal
producers and ceramics.
Meanwhile, McWilliams said the
ringgit is likely to rebound as the
currency hit a near five-year low to
3.4420 per US dollar yesterday, its
weakest since February 2010. “We’re
not far off from the bottom in terms
of the weakness of the ringgit, and
when the economy, and prices of oil
and commodities pick up — which
tends to happen around the same
time — it will bring up the ringgit
automatically,” he said.
Glomac’s 2Q net profit shrinks 66.4% on lower revenue
BY GHO C H EE Y UAN
K UA L A LU M P U R : G l o m a c
Bhd’s net profit shrank 66.4% to
RM13.17 million for its second
financial quarter ended Oct 31,
2014 (2QFY15) compared with
RM39.2 million in the previous
corresponding period due to lower revenue.
Quarterly revenue retreated to
RM86.29 million, almost 45% down
against RM155.8 million a year ago.
Earnings per share fell substantially to 1.81 sen per share against
5.39 sen per share a year earlier.
In a filing with Bursa Malaysia
yesterday, Glomac said the decline
in revenue was due to the completion of the Damansara Residences
and tail-end projects in Bandar
Saujana Utama in Selangor.
However, its net assets per share
attributable to ordinary equity
holders improved marginally to
RM1.24 from RM1.22 from previ-
ous financial year.
For the six months ended Oct 31
(1HFY15), the property developer
saw its net profit decline sharply
to RM34.02 million from RM63.33
million a year ago, on lower revenue of RM192.83 million versus
RM318.07 million in 1HFY14.
Subsequently, cumulative net
earnings per share contracted 47%
to 4.68 sen per share from 8.78
sen in the previous corresponding period.
Going forward, Glomac said the
property market will continue to
be challenging.
“However, with the unbilled
sales currently in hand and the
future launches, we are hopeful
that the group’s performance for
the financial year ending April 30,
2015 will be satisfactory.”
Glomac closed unchanged at
RM1.05 yesterday, translating
into a market capitalisation of
RM755.88 million.
KUALA LUMPUR: The Association of Water and Energy Research Malaysia (Awer) urges the
government to make the developers of both the Tanjung Bin and
Jimah East power plants pay for
all additional costs — fuel cost
and capacity charges — that will
be incurred due to the delays in
the construction of the plants.
Presently, the government has
imposed a penalty cap of RM108
million for every 1000mw for the
delay in the construction of the
plants and Awer fears that any additional cost due to the delay will
be translated into a tariff hike that
will directly impact consumers.
Both the Tanjung Bin (scheduled for completion on March
1, 2016) and Jimah East (first
unit: Nov 15, 2018; second unit:
May 15, 2019) are now seeking
extensions, said Awer president
S Piarapakaran in a statement
yesterday.
“These new coal plants [Tanjung Bin and Jimah East] are efficient plants which will reduce
the impact of the fuel cost component on the electricity tariff.
Delays will cause extension of
old gas plants which are about
to retire or have retired.
“If the old gas plants are generating electricity at [an] average
efficiency [of ] below 30% compared with the new coal plants
that are supposed to generate
electricity at 55% efficiency, the
additional fuel cost and capacity
charges that will be passed on
to consumers are substantially
high,” said Piarapakaran.
Citing information from Energy Malaysia magazine, published
by the Energy Commission, he
said 41% of the latest average
tariff of 38.53 sen/kWh comprises fuel cost.
Piarapakaran said the piped
gas price review has been loosely
set at RM3 per mmBTU every six
months. Taking this as the basis of
a conservative estimation, he said
the price of piped gas can reach
RM21.20 per mmBTU due to the
delay of Tanjung Bin, he said.
Tanjung Bin is expecting a
six to 12-month delay, he said,
so the additional fuel cost that
will be passed on into the tariff
is about RM321.97 to RM643.94
million per 1,000mw.
“Unfortunately, the penalty
for delay in project completion
is capped at RM108 million for
every 1000mw. Who is going to
pay for the rest of the cost?” he
questioned.
Tanjung Bin, the largest coalfired power plant in Southeast Asia, is by Malakoff Corp
Bhd, which is controlled by tycoon Tan Sri Syed Mokhtar AlBukhary’s MMC Corp Bhd. Jimah
East is controlled by state investment fund 1Malaysia Development Bhd through its ownership
of a 75% stake in Jimah Energy
Ventures Holdings Sdn Bhd.
HOME BUSINESS 7
Petronas doesn’t
have full say on
dividend payment
Amount distributed is partly decided by the government
BY SU L H I A ZMA N
KUALA LUMPUR: National oil company Petroliam Nasional Bhd (Petronas) may have issued an earnings
and dividend forecast warning, but
the quantum of its dividend to the
government is not all up to Petronas, according to Deputy Finance
Minister Datuk Chua Tee Yong.
“Petronas [has] issued a forecast warning, [but] ultimately, the
dividend paid to the government is
also partly decided by the government, not fully by Petronas,” Chua
told reporters after launching the
“Breaking Real Estate Laws” seminar here yesterday.
On Nov 23, Petronas, which contributes almost 40% of the national
coffers, urged the government to
“tighten its belt” as the firm is facing the possibility of less earnings
in light of falling crude oil prices.
Petronas president and group
chief executive Tan Sri Shamsul
Azhar Abbas had said that payments to the federal government
in the form of dividends, tax and
royalties could fall by 37% from
the previous year to about RM43
billion in 2015 if oil prices stay at
around US$75 (RM258) per barrel.
But to Chua, the drop in global
oil prices may not necessarily result
in a negative impact to the government’s fiscal deficit as it may help
boost local industries.
“In general, the drop in oil price
results in better consumer sentiment,
which will help our manufacturing
and exports. So it is not all negative. If global oil price plunges down
to US$30 per barrel, then it will be
something else. At this moment, the
global oil price is still above US$70
per barrel,” he reasoned.
Chua added that Malaysia uses
the Singapore Tapis crude price as
its benchmark. The Tapis crude —
which Malaysia exports — has been
averaging at above US$100 per barrel
as at November, which is still “within the government’s expectations”.
Tapis crude is a blend of crude
found in Malaysian waters. It is con-
sidered one of the highest qualities
of sweet crude in the world and
fetches a considerable premium
over the average blend. Malaysia
currently produces around 467,000
barrels per day of such crude oil.
On the retail side, Chua said
daily fluctuation of petrol prices,
if implemented, will affect petrol
operators as it will be hard for them
to price their products.
He said the government’s move
from a controlled price system to
a managed float mechanism from
Dec 1 was a gradual change to see
how the market reacts to the current context. This has resulted in a
drop in recent petrol prices here.
“We have seen consumers shifting to RON97 as opposed to RON95,
which is due to the reduction in
petrol price,” he added.
Chua, however, declined to
comment on whether the government is moving towards the
free-floating system, where petrol
prices will be fully determined by
the market force.
Maybank Kim Eng partners Taiwan’s Cathay
Securities to expand equities footprint
Ringgit decline may
not impact sukuk
growth, says HLIB
BY TA R A N I PA L A N I
KUALA LUMPUR: The sukuk market will continue to see growth
despite the ringgit’s recent decline and the continuous fall of
crude oil prices, said Hong Leong
Islamic Bank Bhd chief executive
officer Raja Teh Maimunah Raja
Abdul Aziz. “[It may] not be as aggressive
a growth as last year. We will be
experiencing [some slowdown].
Inflation has doubled and [we will
have to deal with] the effects of the
goods and services tax,” she told
reporters after the launch of Express Remit, an e-remittance service which focuses on transactions
between Malaysia and Indonesia.
“However, fuel prices are coming down. It is a function of many
working parts and the economy is
still healthy,” she added.
Some other positive signs, Maimunah noted, are that the global
Islamic bond market is still “doing
okay” and Bank Negara Malaysia’s
sukuk issuance has also gone up. The first half of 2014 saw a record
RM3.25 billion ringgit-denominated sukuk issued by Malaysian
Islamic banks, driven primarily by
rapid asset growth.
According to Moody’s, Islamic
banking assets in Malaysia totalled
RM434 billion at end-May, representing 21% of total banking-system
assets against 16% at end-2009. On Monday, the ringgit posted its sharpest decline since 1998
based on the weakening crude oil
prices. It closed 3.43 against the US
dollar as crude oil prices hit a fiveyear low at below US$70 per barrel. In a note on Tuesday, MIDF Re-
search voiced concerns that should
the oil price continue to hover at the
current level, the ringgit may face
further “downward pressure”, which
will impact bond yields and lead to
significant outflows. The research
house was, however, quick to point
out that this has yet to happen. It was previously reported that
the banking sector’s third-quarter
performance has also been stable,
but with a banking-system loan
growth rate of about 9% year-onyear in October 2014. Maimunah said sukuk is an expansion of services by the banking
sector, but noted that individual
businesses will however have to
review their own expansion programmes. She added that the single-digit
loan growth rate is merely a cyclical phenomenon. “We have been experiencing
double-digit loan growth. You don’t
get that in all of Asia. We are a developing market where our financial market is first world ... We are
not like Indonesia or Thailand [as]
we [have] first-world-market type
of pricing. [So] we can’t have double-digit growth that outpaces the
gross domestic product,” she said. Hong Leong Islamic Bank’s Express Remit e-remittance service
operates from 7am to 11pm, seven days a week, and uses self-service terminals for conversion and
remittance in Bahasa Indonesia.
A standard RM10 service fee will
be charged. Maimunah revealed that RM3
million capital expenditure was
spent on this new service, in line
with the bank’s efforts to digitise
its services.
BY C H EN SHAUA FU I KUALA LUMPUR: Maybank Kim
Eng Holdings Ltd and Taiwan’s
Cathay Securities Corp, a securities
trading arm of Cathay Financial
Holding Co, signed a memorandum
of understanding (MoU) yesterday
to formalise their collaboration in
equity brokerage to tap into each
other’s network and provide their
clients access to new markets.
The partnership will enable Cathay Securities to tap into Maybank
Kim Eng’s network across Asean,
namely Malaysia, Singapore, Indonesia, the Philippines, Thailand
and Vietnam, they said in a joint
statement yesterday.
Maybank Kim Eng will be able
to leverage on Cathay Securities’
presence in Taiwan.
“This synergistic partnership
will further strengthen Maybank
Kim Eng’s equity franchise by widening our reach and allowing us to
offer our global clients access to
key equity markets in Asia-Pacific,” said Maybank Kim Eng Group
chief executive officer John Chong.
“As Asean’s biggest equity franchise, Maybank Kim Eng is in a
strong position to catalyse investment flows into Asean at a time when
Taiwan investors are looking for Asean growth opportunities. Our clients,
Pelaburan Mara’s unit now
an Islamic fund manager
BY TA R A N I PA L A N I
Chu (left) and Chong at the MoU signing ceremony yesterday.
especially in Asean, will also benefit
from good investment opportunities
in the Taiwan market,” Chong added.
Cathay Securities chairman Stanley Chu said the collaboration will
give Cathay Securities a link to Asean
and, more importantly, to six new
markets. “This enables us to serve
our clients better by giving them a
wider and more diversified range of
investment opportunities,” he added.
The initial collaboration will include Maybank Kim Eng’s sales
and research team marketing
TWSE-listed securities to Maybank
Kim Eng’s clients and vice versa, as
well as the sharing of research re-
sources on securities and futures.
Cathay Financial Holdings president Chang-Ken Lee said the rise
of Asean economies has created
tremendous business opportunities and the group has strategically
developed its business to establish
a cross-broader financial service
platform connecting Greater China
and Southeast Asia.
“We believe this partnership not
only reinforces the institutional brokerage and international securities
business for both companies, [but]
holds a greater potential which will
continue to impact the companies’
outlook positively.”
KUALA LUMPUR: Pelaburan Mara
Bhd unit PMB Investment Bhd is now
an Islamic fund management company with assets surpassing RM1 billion.
In a statement, PMB Investment
chief executive officer Ameer Ali
Mohamed said the Securities Commission Malaysia has approved its
application on Monday for the conversion of its capital market services
licence from regulated activity of
fund management to Islamic fund
management.
Ameer said he hopes this development would elevate PMB Investment in terms of products and
services, performance and assets.
“We have been managing only
syariah-compliant funds since
March 7 this year, the day when
the last two of our unit trust funds
were officially made syariah-compliant. And now we are an Islamic
fund management company.
“Being an Islamic fund management company will also distinguish
PMB Investment from other unit
trusts and portfolio managers that
offer both conventional and syariah-compliant windows.
“Furthermore, this will be the
right base for PMB Investment to
expand regionally,” he said.
As at Nov 30, 2014, PMB Investment managed a fund size of
RM1.09 billion. This represented
growth of 135% over the RM463
million as at Dec 31, 2013.
Ameer hoped PMB Investment,
as an Islamic fund manager, would
be eligible for investment mandates, which were available for Islamic fund management companies’ development. These include
seed funds by major institutions.
He said PMB Investment has
achieved one of the targets under
the 2011-2015 transformation plan
of Pelaburan Mara.
The target set was for PMB Investment to be transformed into
a syariah-compliant fund manager, which involved converting
conventional unit trust funds and
discretionary portfolio mandates
into syariah-compliant entities.
T HU RSDAY D EC E MB E R 4, 2014 • T HEED G E FINA NCIA L DAILY
I N V E ST I N G I D E A S 9
I N S I D E R A S I A’S S TO C K O F T H E D AY
Matrix Concepts Holdings Bhd
SINCE listing on May 28, 2013, Matrix Concepts has seen its market capitalisation almost doubled to RM1.3 billion, partly due to
its policy of rewarding shareholders well. It
paid dividends of 30.4 sen per share in 2013,
or a yield of 13.8% against its IPO price of
RM2.20. In July 2014, a 1-for-2 bonus issue
was declared.
Matrix is famed for its flagship 5,233-acre
Bandar Sri Senayan (BSS) township in Seremban. As end-Sept 2014, it has a remaining
landbank of 1,289.5 acres at BSS, including
Sendayan TechValley (STV), with potential
GDV of RM5.1 billion. STV, an established
industrial park within BSS, has attracted RM3
billion worth of investments from multinational companies.
Its other projects in Seremban have estimated GDV of RM1.2 billion on 343.6 acres
of land. Down south, Matrix is developing
the 637.6-acre Taman Seri Impian in Kluang.
It has 294.5 acres left to be developed with
GDV of RM957 million. Last year, Matrix
acquired 1.1 acres of land near Putra World
Trade Centre in Kuala Lumpur and aims
to launch apartments with GDV of RM400
million in 3Q2015.
All in, Matrix’ remaining land bank has
potential GDV of RM6.5 billion to last until
2022. As at end-Sept 2013, unbilled sales
totalled RM410.5 million, equivalent to a
year’s revenue. Thus, longer term earnings
sustainability may be an issue although
industrial property sales are more ad-hoc.
Matrix’ net cash fell from RM 191.9 million
at end-3Q2013 to RM0.1 million in 3Q2014,
due to property development cost of RM556.3
million and the dividend payout. The stock
is trading at a trailing 12-month P/E ratio of
7.8 times and 2.0 times book. It has set a minimum 40% dividend payout policy. However,
the ability to continue paying high dividends
will depend on future profits and cashflows,
since its cash position has fallen sharply.
As the year draws to a close, we are cognizant of the fact that trading will inevitably slow as market participants go away on
longer breaks. Thus, starting from today onwards, InsiderAsia’s Stock of the Day will run the same stock recommendation for two
consecutive trading days. As such, the featured stock today is Matrix Concepts Holdings Bhd, the same as that for Wednesday, 3
December, 2014. We will have a new stock pick tomorrow, on Friday. Thank you for your support.
T O N G ’S
MOMENTUM
P O RT F O L I O
FOLLOWERS of this column would have
noticed that my portfolio has been quite
quiet in recent days. I would like to share
some of the reasons why.
This portfolio only buys stocks that are
highlighted by Stocks with Momentum
on The Edge Markets, which are in turn,
picked out by a mathematical algorithm
based on volume build up and rising stock
price trend over periods of time.
Thus, it is to be expected that the algorithm will pick far fewer stocks when the
broader market is trending down, as is the
case currently.
This also means that the algorithm is
a pretty good leading indicator of market
direction. Indeed, its notably slim pickings
over the past few weeks is the reason why I
have sold most of my stock holdings. Right
now, I am only 36% invested in two stocks.
The balance is in cash.
Importantly, my portfolio continues to
outperform the FBM KLCI, by 9.2%, and is
registering an annualised return of 5.1%
since inception, on 8 July 2014.
Going forward, as and when the algorithm starts picking out more stocks, it
should be a positive signal for the broader
market.
The FBM KLCI index dropped another
27.82 points yesterday to close at 1,758.15.
The benchmark index is now flirting dangerously close to its lowest close for the
year. Market breadth was negative with
losers outnumbering gainers by 3.4 to 1.
This is a personal portfolio for information purposes only and does not constitute a recommendation or solicitation or expression of views to influence readers to buy/sell any stocks.
Portfolio started on 8 July 2014 with RM100,000.
10 B R O K E R S’ C A L L
Survey: 5% drop in Nov CPO output
Plantation sector
Maintain “neutral”. A survey of 19
Malaysian planters conducted by
the CIMB Research futures team
revealed that crude palm oil (CPO)
production in November probably
fell 5% month-on-month (m-o-m) to
1.8 million tonnes. This could be due
to seasonal factors and tree stress
from the drought experienced in
Peninsular Malaysia in the first quarter of financial year ending 2014.
The survey revealed that peninsula estates posted the biggest
decline in CPO production (-16%
to -6% m-o-m) while Sabah may
be the best-performing region for
output (-9% to +8% m-o-m).
Malaysian palm oil exports were
weak, falling by around 10% m-o-m
in November, based on cargo surveyor reports by Intertek Group
plc (-9.8%) and SGS SA (-10.5%).
This was due to weaker exports
to India, Pakistan (lower post-festival demand and competition from
other oilseeds) and Europe (due to
the onset of winter).
We have assumed domestic consumption of 294,000 tonnes and
imports of 83,000 tonnes in November. Based on the above assumptions, we project that palm
oil stocks at end-November will
rise by 7% m-o-m to 2.3 million
tonnes. The Malaysian Palm Oil
Board (MPOB) is set to release the
official figures on Dec 10. The variance in our survey from actual
MPOB stock figures since we started
producing the monthly stock preview in August has been 0% to 5%.
The key takeaway from our survey is the smaller-than-expected
drop in output. This, combined
with weaker-than-expected exports,
is likely to lift the end-November
Malaysian palm oil inventory to
a 21-month high of 2.31 million
tonnes. We view this as negative
for CPO prices in the short term
as it indicates ample stock in the
producing palm oil market.
Malaysian palm oil stocks are
likely to fall this month due to the
seasonal drop in output while exports are likely to be relatively stable
in view of the upcoming Chinese
New Year festivities. Our key concern is the recent sharp decline in
crude oil prices (Brent) to US$72
(RM248) per barrel, which has significantly reduced CPO’s competitiveness as a source of energy in
the form of biodiesel.
CPO prices have remained relatively resilient against the fall in
crude oil prices so far due to concerns about weaker palm oil output,
higher biodiesel mandates and adverse weather effects on key planting areas due to a potential El Nino
occurence. The Australian Government Bureau of Meteorology in its
Benalec to dispose of 24ha
of Malacca land for RM107.3m
Benalec Holdings Bhd
(Dec 3, 68.5 sen)
Maintain “outperform” with a target price (TP) of RM 1.25. Benalec
announced that it had entered into a
sale and purchase agreement (SPA)
with Jadex Land Sdn Bhd (JLSB) and
JLSB’s wholly-owned subsidiary
Quality Paradise Sdn Bhd to dispose
of nine pieces of land amounting to
58.63 acres (24ha) in Pekan Klebang,
Malacca for a cash consideration
of RM107.3 milliom (RM42 per sq
ft [psf]).
The sale consideration will be
satisfied entirely by cash and it is
conditional upon Benalec procuring the issuance of land title. Prior
to and/or upon the signing of the
SPA, 10% of the selling price shall
be paid by the purchaser while
the remaining 90% within six to
12 months of the SPA. The land disposal is expected to be completed
by the end of the fourth quarter of
calender year 2015.
The land sale will provide earnings visibility to Benalec for at least
the next two years. We gather that
almost all the reclamation works
on the land has already been completed. Only about 10 acres are still
ongoing which the group expects
to complete early next year. The
disposal price tag of RM42 psf is
slightly higher than our assumption of RM40 psf. Nonetheless, the
cost to reclaim the land (that is the
net book value) is RM27.3 psf, also
slightly higher than our land reclamation cost assumption of RM25
psf. Hence, in total, the group expects to book RM28.1 million of
net profit, implying a net margin of
26% (in line with our financial year
2016 [FY16] net margin forecasts).
All in, we expect this land sale to
be recognised by end-FY15 to endFY16. Also, with the land sales, the
group’s balance sheet is expected
to improve from a net gearing of
0.38 times (post convertible bond’s
issuance completed) to 0.36 times.
So far, in FY15, we gather that the
group has sold 73.6 acres of land, all
in Malacca. This constitutes about
half of our FY15 land sales assumption of 150 acres. Hence, as of now,
including this land sale, Benalec
has outstanding land sales of about
RM398 million (that is RM291 million from the last FY) which has
yet to be completed pending land
Malaysian palm oil stocks are likely to fall this month due to the seasonal drop in
output while exports are likely to be relatively stable in view of the upcoming Chinese
New Year festivities. Photo by Abdul Ghani Ismail
latest update revealed that most
climate indicators remain close to
El Nino thresholds, with climate
model outlooks suggesting further
intensification of conditions likely.
Spot CPO prices have fallen by 2%
in the past month to RM2,136 per
tonne due to the weaker demand
for CPO. The average CPO price
achieved in the first 11 months of financial year ending 2014 (RM2,402.5
per tonne) was in line with our fullyear projection of RM2,390 per
tonne. We maintain our “neutral”
sector rating and continue to prefer planters that offer strong output
growth prospects to offset weaker
prices.— CIMB Research, Dec 2
BIMB’s first DRP price fixed
at RM3.71 per share
BIMB Holdings Bhd
(Dec3, RM4.20)
Maintain “hold” with a target
price (TP) of RM 4.40. BIMB Holdings has fixed the price of its first
dividend reinvestment plan (DRP)
at RM3.71 per share, a 10% discount
to its five-day ex-dividend volume
weighted average market price of
RM4.26. It is an attractive discount
compared with the average of 5% for
Malayan Banking Bhd (Maybank).
To recall, BIMB declared an interim dividend per share (DPS) of
14.7 sen which will go ex on Dec 12,
with an entitlement date of Dec 16
for both the interim DPS and the
DRP. The new shares are expected
to be listed by Jan 14, 2015.
Assuming a reinvestment rate of
title issuances. Benalec will pocket 80% to 85%, in line with that of its
a net gain of around RM78 million peers such as Maybank, we estimate
throughout FY15 and FY16.
We also estimate Benalec has
about 341 acres of land in Malacca (281 acres) and Pulau Indah (60
acres) which are “held for sale”.
Based on RM40 psf (already imputed in our estimates), these lands
could be worth about RM595 million. Above all, further key rerating
catalysts for Benalec are its Johor
project and the signing of the SPA
with 1MY Strategic Terminal Oil
Sdn Bhd for 1,000 acres of land in
Tanjung Piai. We are maintaining
our sum-of-parts TP of RM1.25, implying price-earnings ratio (PER) of
12.2 times FY15 earnings per share,
in line with mid-cap construction
industry PER average of 12 to 15
times. — Kenanga Research, Dec 3
an average 3.2% to 3.4% dilution to
financial year 2015 (FY15) earnings
per share from this interim DPS,
and up to a 3.7% dilution based on
our full-year DPS forecast.
A point to note is that BIMB’s
interim DPS of 14.7 sen was computed based on the nine-month
earnings of the group and works
out to be a payout ratio of about
50%. As such, we expect the final
DPS to be much smaller in quantum. Nevertheless, the DPS has
still surprised on the upside and
we raise our FY14 and FY15 DPS
to 16 sen and 17 sen from 12 sen
and 13 sen respectively. Dividend
yields are decent at 3.8% for FY14
and 4% for FY15. We maintain our
“hold” call with an unchanged sumof-parts TP of RM4.40. — Maybank
Investment Bank Research, Dec 3
12 B R O K E R S’ C A L L
UMWOG gets
earnings downgrade
UMW Oil & Gas Corporation Bhd
(Dec 3, RM2.52)
Downgrade to “hold” with target
price (TP) lowered to RM2.70: The
continued weakness in crude oil
prices has prompted us to move
UMWOG’s earnings and valuations
to our bear case scenario. We now
expect crude price to average US$70
(RM240.80) to US$80 per barrel in
2015 instead of US$95.
In this scenario, there will be
greater pressure on daily charter
rates (DCR) and utilisation, as five
out of seven units of UMWOG’s
drilling fleet are currently on shortterm charters. Naga 3 comes off
charter in March 2015 while Naga
2, 5, 6 and 7 have optional extensions lined up over second quarter
and third quarter of 2015. Extensions could materialise but possibly at lower DCR. Naga 8 (Sept
2015 delivery) has still not been
contracted out.
With a softer market outlook,
the impact of new rig deliveries
will hit the rig market harder than
previously thought. Clarksons data
indicates 61 and 45 new jack-up
(>300ft water depth) deliveries slated for 2015 and 2016. This compares with only 19 year to date in
October. Some slippage is expected
but deliveries will still be stronger
year-on-year.
This was after reflecting lower DCR (from US$172,000/day to
US$161,000-US$165,000/day) and
utilisation (90% to 79%-84%) over financial year 2015 (FY15) and FY16.
We cut TP to RM2.70 from
RM4.15 previously, after downgrading earnings and target price-earning ratio (PER) to 18 times from 22
times. This is a slight premium to
the sector’s large cap trough valuation of 16 times and reflects UMWOG’s healthy growth and clean
balance sheet. The rerating catalysts for UMWOG would be a sustained rebound in crude oil prices
to above US$80/barrel levels. The
group might also take advantage of
Brahim’s to be major
offtaker of beef from
its abattoir project
Brahim’s Holdings Bhd
(Dec 3, RM1.40)
Maintain fully valued with a target
price (TP) of RM 0.90. Brahim’s
has entered into a memorandum
of understanding (MoU) with Australia-based Carpenter Beef Pty Ltd
to jointly develop an abattoir designed to meet China, EU, and US
halal requirements. Brahim’s will
initially hold a 49% stake, but will
raise it to 51% once it is expedient
to do so. The certification from the
Malaysian Islamic Development
Department is crucial for the project to take off.
To be named Cataby Abattoir,
the facility will have an annual
capacity of 100,000 carcasses with
capex estimated to be around A$15
million (RM43.18 million). The
project is expected to be operational within six to nine months
from investment date. However,
the timing on the final investment
decision (FID) has not been dis-
closed. We believe any earnings
contribution will only materialise
at the earliest in 2016, as it may
take a few months for the FID to
be made.
This project is a vertical integration for Brahim’s. It will be the
major off taker of beef products
produced by the abattoir. We believe a large part of it will be used
for the group’s internal requirements such as its in-flight kitchen
operations. Brahim’s upcoming pilgrim’s catering project (still under
MoU stage) will also require large
amounts of beef.
Brahim executive chairman Datuk Seri Ibrahim Ahmad’s privately-owned businesses Dewina Food
Industries (ready-to-pack meals)
and Desatera (military catering)
also require a substantial quantity of beef.
Our TP is based on 16 times financial year 2016 earnings per share.
— AllianceDBS Research, Dec 3
its strong balance sheet for mergers and acquisations or continue
to grow its fleet as rig prices are
likely to decline. — AllianceDBS
Research, Dec 3
Print media companies hit by challenging market conditions
Maintain neutral sector view
The challenging market climate has
affected all print media companies.
Weakness continues to be seen in
the print segment, largely due to
the lack of a “feel good” factor in
ad spending. Fortunately, newsprint prices have remained at attractive levels, at US$575 (RM1,978)US$585/MT in the first 10 months
of 2014 (10M14).
The challenging market climate
has affected all print media companies, as seen in their recent results (which were largely within our
expectations). TMCIL Multimedia
Sdn Bhd, Star and Media Prima
saw their respective third-quarter
financial year ending 2014 (3QFY14)
print-segment revenue decline yearon-year (y-o-y) by 3% to RM292million, 11% to RM170million and 17%
to RM149million respectively. This
was underpinned by advertisers cut-
ting ad spending due to the MH17
airplane incident, weak consumer
demand due to a slower retail environment and a continuing shift
in advertising revenue to broadcast
and the Internet from print.
In 3Q14, the Malaysian Institute of Economic Research reported weaker consumer confidence in
Malaysia, with the index at 98 points
vs 102 points in 3Q13. This indicates
pessimism among consumers. We
expect Malaysian consumers and
the business sentiment to remain
sombre, with the impending implementation of a goods and services
tax (GST) in April 2015, coupled
with a lack of mega events planned
for 2015 to stimulate consumption.
The good news for print media
firms is that newsprint prices remained at attractive levels. We do
not foresee a sharp decline in newsprint prices because some suppliers
may start to operate at a loss.
We are cautious about the media
sector as we think weak business
and consumer sentiment, coupled
with the implementation of GST,
could affect advertising revenue.
Besides, an increase in online reading could adversely affect demand
for print media.
In view of limited rerating catalysts, we remain neutral on the
media sector. Our preference for
sector exposure is Astro (target price
RM3.70) for its resilient business
model and potential to raise average
revenue per user by offering more
HDTV content.
Key downside risks to our call
on the media sector are much lower-than-expected advertising revenue, a sharp drop in hard copy
newspaper circulation and a sudden spike in newsprint prices. —
AffinHwang Capital, Dec 3
H O M E 13
Malaysia moves
up 3 spots in global
graft index
It ranks No 50 among 175 countries
NAJJUA ZULKEFLI/THE MALAYSIAN INSIDER
BY SHERI DA N MA HAV ERA
& N AT HA L I E TAY
KUALA LUMPUR: Malaysia moved
up three spots on the latest Transparency International (TI) corruption index, ranking at No 50 among
the 175 countries which participated in the 2014 Corruption Perception Index (CPI). Last year, it
ranked 53 out of the same number
of countries.
Score-wise, Malaysia moved up
two points to 52 from 50 last year.
On the CPI, a score of 0 is “highly corrupt” and 100 is considered
“very clean”. The index ranks countries based on the perceived level
of corruption in the public sector.
The index is based on a combination of surveys and assessments
of corruption, collected by various
reputable institutions, said the body
in a statement released to the media yesterday.
TI-Malaysia president Datuk
Akhbar Satar (pic) said that Malaysia’s score and ranking improved
based on the feedback from surveys of eight institutions conducted
between 2011 and 2012.
These surveys could have re-
corded positive feedback from
experts and laymen on the government’s efforts at combating corruption in those years.
These efforts include introducing the Malaysian Anti-Corruption
Commission (MACC) Act of 2009
which established the anti-graft
body that is said to be more independent and powerful than its
predecessor, the Anti-Corruption
Agency.
“This is why if you look at our
rankings and scores, it has been
increasing since that period,” said
Akhbar during a press conference
after launching the report.
In the 2012 report, which would
have measured corruption perception in 2010 when the Act came into
effect, Malaysia scored 49 out of 100
and ranked 54 out of 176 countries.
The score and rank improved in
2013, which used sentiment from
2011, to 50 out of 100, while the
country ranked 53 out of 177.
“I’d like to commend the MACC
and Pemandu (Performance Management and Delivery Unit) for
their efforts in combating corruption. But more needs to be done
if we want to reach a rank of 30,”
said Akhbar.
Malaysia’s intention of reaching
a rank of 30 in the CPI was first announced by Prime Minister Datuk
Seri Najib Razak in 2012.
The top five countries in the CPI
this year in descending order are
Denmark, New Zealand, Finland,
Sweden and Norway.
Compared with similar countries
in the Asia-Pacific region, Malaysia
is ahead of the Philippines, Thailand (both ranked at 85), Indonesia
(107), Vietnam ranked (119) and
Laos (145). — The Malaysian Insider
AirAsia unveils ‘Thank You
Sabah’ aircraft livery
KUALA LUMPUR: Budget airlines
AirAsia Bhd unveiled its latest aircraft livery dedicated to the people
of Sabah at the Kota Kinabalu International Airport (KKIA) Terminal
2 yesterday.
The “Thank You Sabah” aircraft
livery was launched as a tribute to
the state and people of Sabah for
their support in making AirAsia an
airline with a significant presence
in the state, the airline said in a
press statement yesterday.
It is also a mark of AirAsia’s commitment towards Sabah to further
boost its economic standing via
enhanced tourism activities and
business opportunities, it said.
The event was witnessed by
Sabah Minister of Tourism, Culture and Environment Datuk Seri
Panglima Masidi Manjun, Sabah
Tourism Board chairman Datuk
Joniston Bangkuai, AirAsia executive chairman Datuk Kamarudin
Meranun and its chief executive
officer Aireen Omar.
Kamarudin said: “The ‘Thank
You Sabah’ aircraft livery is specially dedicated to its people for
Seen at the launch are (from third from left) Joniston, Aireen, Masidi, Kamarudin, Sabah
Tourism general manager Datuk Irene Benggon Charuruks and AirAsia X director Datuk
Fam Lee Ee, with AirAsia crew members.
all the support given to us and as a
mark of our commitment towards
further developing the economy of
Sabah through more tourist arrivals and heightened business opportunities.”
Sabah Chief Minister Datuk Seri
Panglima Musa Aman said: “I applaud AirAsia for its effort in delivering low-cost flight services for the
benefit of the people in Sabah. The
airline’s significant presence in Sabah and the number of passengers
flown into the state, has resulted
in impressive tourism growth and
expanded economic growth opportunities for us.”
The “Thank You Sabah” livery
was painted on AirAsia’s Airbus
A320 aircraft and took about nine
days to complete, the airline said.
Two production teams consisting
of 30 personnel worked two shifts
a day to paint the design on the
body of the aircraft, with a total of
6,480 man-hours spent.
Selangor says no basis for Khalid’s
‘golden handshake’ to staff
BY MD IZ WA N
SHAH ALAM: The RM2.6 million “golden handshake” paid out to
aides of former menteri besar (MB) Tan Sri Abdul Khalid Ibrahim
was not done according to procedure, a state treasury investigation revealed yesterday.
The 11-page report, distributed at the state assembly sitting,
stated that the compensation to Abdul Khalid’s eight members
of staff, who also quit when he stepped down three months ago,
were in violation of the terms and conditions of their employment
letters. Abdul Khalid’s successor Mohamed Azmin Ali had raised
concern last month over possible elements of wrongdoing in the
matter and asked state-owned Menteri Besar Incorporated (MBI)
to look into the matter.
“Compensations were not mentioned among the terms in the
appointment letters for the eight staff concerned,” the report stated. It also revealed that the calculation of the payments made were
also inaccurate.
“Approvals for the payments were also not forwarded to the MBI’s
Board of Directors for consideration and final approval,” the report
said, adding that all board members did not give their consent for
the payments to be made to the staff.
“The board of directors, except for (Abdul) Khalid (then MBI
chairman), did not at any time after Aug 25 give their final approval
for the implementation,” the report stated.
From the report, former MBI chief executive officer Faekah
Husin was paid the highest — RM581,400 in compensation and
RM114,000 in lieu of three months notice. The report said the compensation should have been calculated based on 53 months and 23
days tenure instead of the 78 months used.— The Malaysian Insider
Marina Mahathir, celebrities star in
HIV/AIDS awareness music video
KUALA LUMPUR: An awareness campaign on the increasing rate
of HIV/AIDS among young Malaysians has received a strong boost
with the release of a celebrity-powered music video.
The #SomebodyLikeMe HIV/AIDS awareness campaign by
Durex Malaysia, currently in its second year, features some of the
biggest names in the local music industry including, Altimet, An
Honest Mistake, Catherine Leong, Danny One, Diandra Arjunaidi
and Narmi.
Notable HIV/AIDS advocate, Datin Paduka Marina Mahathir,
who has thrown in her support for the second year running, made
a special appearance in the video alongside supermodel Amber
Chia. The video debuted online at www.somebodylikeme.my
The organisers encouraged fans to share the music video on
social media to educate their peers and dispel prevailing misconceptions about sexually transmitted infections, including
HIV/AIDS.
“According to the Ministry of Health, 3,393 Malaysians were infected with HIV in 2013. While the total number of new HIV cases has steadily declined, we are seeing an increase of HIV (cases)
through sexual transmission among youths. In fact, 35% of new HIV
patients were below the age of 29,” said Abhishek Chuckarbutty,
marketing director of Reckitt Benckiser Malaysia & Singapore in a
statement announcing the launch of the music video.
In addition, Durex Malaysia has partnered with a major retailer,
Watsons Malaysia. Until Dec 31, users are encouraged to share the
#SomebodyLikeMe music video on their Facebook and receive a
RM5 discount voucher from Watsons for Durex products for each
share. Additionally, Durex and Watsons will contribute one condom for every share to PT Foundation in support of their HIV prevention programmes.
14 H O M E
RCI report does not
reveal names
Ex-MCA chief
files RM12m
defamation suit
against Phang
BY V A N B A L AG A N
Corrupt officials and syndicates blamed for Sabah’s Project IC
KUALA LUMPUR: Syndicates and
people who got help from corrupt
officials set up “Project IC” in Sabah
for a political agenda and money,
according to a royal panel report,
which however was silent on those
whose actions altered the state’s demographics and religious balance.
The Royal Commission of Inquiry (RCI) on illegal immigrants
in Sabah made public its 368-page
report in the state capital Kota Kinabalu yesterday, months after it was
completed and two years after the
commission was formed.
The report did not name any guilty
parties as it was not within the com-
mission’s scope of duties, as stated
in the terms of reference.
The nine-month inquiry from
January to September last year heard
testimonies from former prime minister Tun Dr Mahathir Mohamad,
opposition leader Datuk Seri Anwar
Ibrahim, former federal minister Tan
Sri Aziz Shamsuddin, former Sabah
chief ministers and civil servants
from the national registration and
immigration departments.
Other witnesses included Filipino, Indonesian, Pakistani and
Indian immigrants.
The commission’s report did not
deny the existence of Project IC and
said it “probably existed” based on
the testimonies of witnesses who
had admitted to being a part of it.
But the big names formerly in
government who took the witness stand never admitted to any
wrongdoing, and neither were the
witnesses cross-examined, the report stated.
At best, it noted that citizenship
documents were unlawfully issued
by syndicates and corrupt individuals who exploited a weak system.
Commenting on the release of
the long-awaited report, an opposition federal lawmaker called on
Putrajaya to convene an emergency
parliamentary meeting to debate
the RCI’s findings.
Penampang MP Darell Leiking
said there were a whole lot of questions which needed answers, such
as the names of the syndicates or
government officers involved in
this matter.
“The taxpayers’ money has already been wasted by this RCI and
thus, I believe, before we embark
on another wasteful endeavour as
to what the so-called solution to
the problem is, Parliament must
deliberate on this first,” he said in
a statement yesterday. — The Malaysian Insider
Good antibiotic practices scheme launched
KUALA LUMPUR: The Ministry of
Health is promoting the responsible use of antibiotics by launching the Antimicrobial Stewardship
Programme to curb antimicrobial
resistance.
The programme was launched in
September because the problem is
very much related to the prescribing and dispensing of antibiotics
by health professionals, the ministry said in a statement to Bernama
yesterday.
Good Antimicrobial Stewardship
is the optimal selection of antimicrobial agents for the appropriate indication, dosage and duration of therapy
that results in the maximum benefits
and minimum adverse events for the
patient, and minimises the development of antimicrobial resistance, the
statement said.
Since the 1940s, antimicrobial
medicines have substantially reduced mortality from infectious diseases and have provided protection
against infectious complications for
modern medical practices including
surgery, neonatal care and cancer
treatment, it said.
However, the extensive use and
misuse of antimicrobials in both
human and animal health have increasingly raised levels of resistance
for a wide range of pathogens such
as bacteria, viruses, fungi and parasites in many countries among
patients of all age groups.
Infections caused by drug resistant pathogens increase mortality across all settings and can lead
to prolonged stays in hospital and
increased risk of admission to the
intensive care unit. All of these incur
substantial health and economic
costs, it said.
Malaysian statistics show that
antimicrobial resistance in Malaysia
is increasing. “The National Surveillance on Antibiotic Resistance shows
an increasing resistance trend of
Streptococcus pneumoniae to anti-
biotic erythromycin, with resistance
levels increased from 21% in 2007
to 39% in 2013, while Acinetobacter
baumannii resistance to the antibiotic meropenem increased from
47.7% in 2007 to 58.3% in 2013,” the
statement said.
“Klebsiella pneumoniae also
shows increasing resistance year
by year to cephalosporin. Surveillance on the new superbug carbapenem-resistant Enterobacteriaceae
shows the number of infection has
increased from 65 cases in 2012 to
150 cases in 2013 with increased
mortality rate from 9% in 2012 to
10% in 2013,” it said.
Although the government needs
to take the lead and develop national
policies to combat drug resistance,
health professionals, community
and other related non-governmental
organisations can also make important contributions, the ministry said.
“They can contribute in measures
to prevent infection transmission,
whether drug-resistant or not. These
measures include the appropriate
use of drugs and vaccines, sanitation, hygiene measures, and other
safe behaviours like safe sexual practices,” the statement said.
The ministry said that efforts to
control drug-resistant infections
must become part of everyday practice in health-care settings across the
nation. Partners in many sectors of
society and the general public will
need to be involved in this effort,
it said.
For example, doctors and pharmacists can prescribe and dispense
only the drugs that are required to
treat a patient, rather than automatically giving either the newest
or best-known medicines, it said.
“Doctors should not over prescribe antibiotics to their patients
despite pressure from them, and
should always ... treat their patients
accordingly based on their clinical
judgment,” it said.
KUALA LUMPUR: Former
transport minister Tan Sri Ong
Tee Keat has filed a RM12 million defamation suit against Social Care Foundation chairman
Tan Sri Robert Phang Miow Sin
for allegedly maliciously injuring his reputation repeatedly in
the local Chinese media.
The former MCA president
said he decided to go to court
after Phang refused to retract
his press statements which
contained the alleged defamatory remarks and tender an
apology.
Ong, who filed the suit at
the Kuala Lumpur High Court
on Tuesday, is claiming RM8
million in general damages
and another RM4 million in
aggravated damages.
The former Pandan MP said
he is still a renowned Chinese
language creative writer with
numerous accolades.
In his statement of claim,
Ong said Phang’s defamatory
remarks in their natural and
ordinary meanings gave the
impression that he was an ungrateful and heartless man.
Ong said the statements carried in the media last year also
meant that he had deserted his
supporters and that he lacked
principles. Furthermore, he
said Phang’s statements painted a picture that he was hated
by many people.
Ong’s lawyer Tan Foong
Luen said the court papers
would be served on Phang or
his lawyer SN Nair for the defendant to enter an appearance
and file his defence.
In October 2008, Ong was
elected MCA president while
Tan Sri Dr Chua Soi Lek was
elected deputy president and
this set off a tumultuous relationship between the two.
He remained in the post until he was ousted by Dr Chua
in March 2010. — The Malaysian Insider
MyKuali Penang White Curry Noodle rated best of 2014
MyKuali Penang White Curry Noodle is the No 1 instant noodles for 2014, as decided by
The Ramen Rater. Photo by The Malaysian Insider
KUALA LUMPUR: Having slurped,
chowed on and tasted 1,365 varieties
of instant noodles from every part
of the world, The Ramen Rater has
picked Malaysia’s MyKuali Penang
White Curry Noodle as the No 1 instant noodles for 2014.
The blog, run by an American
instant noodles lover, named the
Penang curry noodles in its Top 10
Instant Noodles Of All Time 2014
Edition at www.theramenrater.com,
where it was described as having a
“strong curry flavour and a hearty
finish”, while the noodles were “not
too wide or too narrow with a chewiness that is perfection”.
Its extremely spicy broth was also
rated No 7 in the blog’s 2013 list of
Spiciest Instant Noodles.
Malaysia had another entry on
the 2014 list of best instant noodles
with Mamee’s Chef Curry Laksa
Flavour — described as “a pleasant
surprise” because of the brand’s “mi
tarik technology” which the blogger
said had produced the “same texture
as hand-pulled noodles”.
Commending Mamee’s broth,
he said it featured a “beautiful hint
of cumin and comes with small bits
of tofu puff as garnish”.
Singapore took second and third
spots with the Prima Taste Singapore
Laksa La Mian and Prima Taste Singapore Curry La Mian, and again at
No 8 with the Singapore Chilli Crab
La Mian.
South Korean instant noodles
also took three spots on the list.
Samyang Foods’ Maesaengyitangmyun Baked Noodle came in at No 5.
It is a mouthful to pronounce but
said to be delectable — smelling
like bread and the broth tasting like
“gomtang”, a traditional beef soup.
South Korea’s Paldo Cheese Noodle was No 6. Besides its cheesy
taste, it also has a rich and spicy
flavour.
The Nongshim Soon Veggie Noodle Soup, which is targeted at vegetarians, was No 9.
Japan, the birthplace of instant
noodles, only had one entry on the
list, with the Sapporo Ichiban Otafuku Okonomi Sauce Yakisoba at No 4.
The noodles are garnished with
green laver (flaked seaweed) and
also features a little mayonnaise
packet and Otofuku, a famous brand
of yakisoba sauce. — The Malaysian Insider
16 H O M E
‘Malaysia does not
condone forced labour’
Ministry says country subscribes to over 60 laws and regulations on labour practices
KUALA LUMPUR: The government
does not condone any act of forced
or child labour within the country’s oil palm industry. The Ministry of Plantation Industries and
Commodities said this in response
to allegations of child and forced
labour in the country’s oil palm
industry in the US Department of
Labor report dated Dec 1.
The ministry said the palm oil
industry is one of the most highly
regulated industries in the country.
It pointed out that Malaysia subscribes to over 60 laws and regulations that include criteria on labour practices, while the industry
recognises the importance of its
workers and has taken great efforts
to ensure their welfare.
“The government does not condone any act of forced and child
labour and takes seriously the allegations and findings in the US DOL
report,” the ministry in a statement.
“As a member of the Internation-
al Labour Organisation, Malaysia
also adheres to its conventions concerning forced and child labour.
“Malaysia has also enacted the
Children and Young Persons (Employment) Act 1966 to provide regulations to protect children and
young persons,” Bernama quoted
the ministry as saying.
The ministry noted that Malaysia
has been listed as one of the countries practising forced labour in the
oil palm industry in The Department
of Labor’s List of Goods Produced
by Child Labor or Forced Labor in
the last five consecutive reports in
2009, 2010, 2011, 2012 and 2013.
Although it refuted the report,
the ministry said labour issues in
oil palm plantations will be continuously monitored and appropriate
action taken to address problems as
the industry is a major component
of the agriculture sector and an important export revenue earner.
Beginning January next year,
Malaysia will implement the Malaysian Sustainable Palm Oil (MSPO)
certification scheme to support
sustainable development of the
industry, the ministry said.
Under the MSPO, the criteria for
certification include compliance
with labour laws and regulations,
health, safety and employment conditions, the ministry said.
The ministry said it had undertaken a six-month preliminary survey on the labour situation in Malaysian oil palm plantations that
was completed in June this year.
The study, which is based on the
ILO Guideline (Hard to See, Harder to Count), covered workers, employers and labour contractors. The
survey was carried out in 68 oil palm
plantations and smallholdings in
Selangor, Perak, Johor, Pahang, Sabah and Sarawak and covered 1,632
workers. The interviews were conducted without the presence of the
employers, the statement said.
The findings showed that (i)
Cases of employers withholding
the passports of foreign workers
were minimal, that is 0.4% of the
total respondents covered, (ii) No
systematic conditions of forced
labour exist in Malaysian oil palm
plantations and smallholdings,
(iii) In the case of Sabah, the study
shows children of foreign workers
accompany their parents to the
work area due to lack of supervision at home and assist in simple
tasks such as loose fruit collection.
However, this is only allowed after school hours, weekends and
holidays and (iv) There is an active labour market in the oil palm
plantations and foreign workers
can find alternative work.
The ministry will coordinate
the outcomes of this study with
the relevant ministries and agencies to strengthen labour laws and
regulations in oil palm plantations,
the statement said.
Nearly 30,000
illegal gambling
dens raided
since 2010
KUALA LUMPUR: Police have
raided 28,378 illegal gambling
outlets in major towns throughout the country from 2010 to
October this year, the Dewan
Negara was told yesterday.
Deputy Home Minister Datuk Dr Wan Junaidi Tuanku
Jaafar said the total comprised
3,992 raids in Penang; Johor
Baru Selatan (4,601); Petaling
Jaya, Selangor (6,117); Ipoh,
Perak (1,698); Dang Wangi,
Kuala Lumpur (8,928); Kuching, Sarawak (2,217) and Kota
Kinabalu, Sabah (825).
Wan Junaidi said to wipe
out illegal gambling totally, the
police would need the support and cooperation of the
people, especially to provide
information of such activities
in their areas.
“Police view illegal gambling
as a serious issue, especially
the use of Internet and online
services to carry out such activities. Police will continuously monitor such activities and
carry out raids to combat the
problem,” he said in reply to
a question from Senator Tan
Sri Mohd Ali Mohd Rustam.
— Bernama
Sabah, Sarawak, KL homes ‘severely unaffordable’
KUALA LUMPUR: Sabah has the
most expensive homes in Malaysia,
said PKR-powered think tank Institut
Rakyat, with the average home in the
country’s easternmost state costing
11 times more than a family’s median
annual income of RM34,320. Citing
official data from the fourth quarter
of 2012, Institut Rakyat executive director Yin Shao Loong said homes in
Sabah were twice as unaffordable as
the national average of RM251,731.
He added that Sarawak and Kuala Lumpur followed on the list. In
Sarawak, the average housing price
is RM330,594, but median annual
household income is only RM36,564.
“Sabah and Sarawak suffer from a
combination of weak household incomes and house prices that are far
higher than the national average, with
average prices comparable to Selangor,” he said in a statement yesterday.
In Kuala Lumpur, the average
house price is RM576,991, but median annual household income in
the capital city is only RM70,164 or
RM5,847 a month. This puts housing in the three states as “severely
unaffordable” in the think tank’s
“Housing Affordability Index”, which
it reached after gathering data from
official sources and compared median household income by state to the
average house price by state in late
2012. Trailing Kuala Lumpur are the
Pakatan Rakyat-led states of Selangor,
Penang and Kelantan.
“The Pakatan Rakyat-run states of
Selangor, Penang and Kelantan rank
as the fourth, fifth and sixth most unaffordable states in Malaysia respectively. They have the opportunity to
distinguish themselves from the na-
tional government by making home
ownership genuinely accessible to
both the lower- and middle-income
groups,” said Yin. Terengganu, Pahang, Perak, Kedah, Perlis, and Johor
are ranked as “seriously unaffordable”.
Only two states — Negri Sembilan
and Malacca — are categorised as
“moderately unaffordable”.
“However, average house prices
for these states still exceeded three
times the annual income of each
state’s median household,” he said.
Housing that costs more than three
times the annual income of the me-
dian household is considered unaffordable. In 2012, the annual income of the median household was
RM43,512.
Yin said by the end of 2012, the average house price was 5.79 times the
annual income of the median household. By the first half of this year, the
national housing affordability index
improved slightly to 5.52. But, he said,
by international standards this makes
local housing severely unaffordable.
dian household income in the first
half of this year was RM4,258 monthly. He said an affordable house for a
middle-income household should
be priced at RM153,000 and below.
The house should be at least 800 sq
ft with three bedrooms, but he added
that such homes are in short supply.
He said the average house price had
more than doubled from 2000 to early
this year, and while this is good news
for homeowners who can enjoy higher values for their properties, 27.2%
The middle income blues
of households do not own homes.
Using the same data, Yin said the me“The government has established
several schemes to make affordable
housing more available to low income
groups. However, the options established for the squeezed middle class
remain sub-optimal,” Yin said. He
also compared Putrajaya’s 1Malaysia
People’s Housing Project (PR1MA)
with Selangor’s Rumah Selangorku
scheme and found the latter to be
“affordably priced”.
Applying its housing affordability
criteria of being within three times the
annual income to PR1MA homes, Institut Rakyat found that a household
earning RM2,500 a month should be
paying RM90,000 and under for an
affordable home, while those earning RM10,000 a month should be
paying RM360,000. “Thus we find
that PR1MA homes are overpriced
by at least 11%,” Yin said.
PR1MA was set up in 2012 to
provide housing for middle income households earning between
RM2,500 and RM10,000 a month.
The price of its properties range from
RM100,000 to RM400,000. But Putrajaya increased the qualifying criteria from RM7,500 to RM10,000 as
announced in Budget 2015. Yin said
the Rumah Selangorku scheme under
Selangor State Development Corp
is affordably priced, with the upper
range of RM250,000 homes for those
earning RM8,000 a month at only 2.6
times annual household income.
“While national and state governments should ... apply downward
pressure on house prices, the federal
government needs to generate upward pressure on wages ... to close the
gap between market conditions and
the desire of families to own a home,”
Yin said. — The Malaysian Insider
COMMENT 17
Asia’s route to riches?
China’s New Silk Road project and other investment initiatives may buoy fortunes of region’s nations
BY A SSI F SHA MEEN
T
he Silk Road captures
the imagination as a fabled highway of traders’ caravans ferrying
treasures, across desert
wastes and mountain
passes, of exotic scented bazaars, storied empires and great conquerors.
It was forged over 2,000 years
ago as a series of interlinked land
and sea routes that grew — allowing trade and cultural exchanges
between Asia and Europe. Along
its route mingled merchants, pilgrims, soldiers and nomads journeying from China and India to
the Mediterranean Sea and back.
The pioneering international
trade route was named for the lucrative trade in Chinese fabric that
became popular during the Han
dynasty. Trade along the route was
instrumental in the development of
the civilisations of China, India, Persia, Central Asia and parts of Europe.
Fast forward 20 centuries, a New
Silk Road is taking shape. It will look
little like the original.During a trip
to Kazakhstan last year, Chinese
President Xi Jinping first proposed
the New Silk Road, an ambitious
plan that encompasses a belt of
land and a maritime route to facilitate trade, investment and cooperation on finance, utilities, new
energy, technology, security, and
culture among the countries along
the route.The land belt would cover
Central Asia, the Middle East, West
Asia and parts of Europe, while the
maritime route would serve Southeast Asia, the Indian subcontinent,
the Persian Gulf, the Red Sea and
the Indian Ocean coast.
Three weeks ago, Xi brought the
audacious plan to the Asia-Pacific Economic Cooperation (Apec)
summit in Beijing and a few days
later touted it at the G-20 summit of
major economies in Brisbane, Australia. China has allocated an initial
US$40 billion (RM138 billion) for a
New Silk Road Fund for investment
overseas and will encourage its own
financial institutions to offer loans
to Chinese companies to win projects abroad to help bring the massive infrastructure plan to fruition.
It is a plan on a scale that only
a mammoth economy — one that
harnesses 1.35 billion people,
boasts US$4.1 trillion in foreign
exchange reserves and a huge current account surplus — could be so
bold as to initiate. Officially called
“One Belt and One Road”, the New
Silk Road plan complements several other ambitious infrastructure
initiatives that China has undertaken since Xi assumed office nearly
two years ago.
He had previously announced
a new US$100 billion Asian Infrastructure Investment Bank and in
Brisbane, mentioned that China
could invest a total of US$500 billion overseas in the next five years,
including investments in the New
Silk Road.
The developing economies that
the New Silk Road passes through
boast a cumulative 4.4 billion people
and gross domestic product (GDP) of
During a trip to Kazakhstan last year, Xi first proposed the New Silk Road, an ambitious
plan encompassing a belt of land and a maritime route. Photo by Reuters
US$2.1 trillion, equivalent to almost
30% of the global economy.
The New Silk Road would, China
hopes, raise its political power and
influence in Asia and speed up internationalisation of the yuan.The plan
will also accrue tangible benefits to
China. For one thing, it will boost
China’s fast-growing overseas construction ventures and ambitious
railway sector, particularly in Asia,
and help it win contracts globally
from Americas to Europe to Africa.
The export of high-speed railway
technology will enable China to help
raise its position as the new global
infrastructure powerhouse. Unlike
roads, bridges or ports which are
handed over to local authorities or
turnkey operators immediately after
they are built, China’s railway companies will provide decades of operating maintenance for projects, ce-
menting their toehold in the region.It
will also boost China’s trade with the
world, boost transportation, logistics
and tourism, and help source raw
materials that the country needs to
keep growing to overtake the US as
the world’s largest economy.
The New Silk Road initiative and
the infrastructure fund are among
China’s most important foreign policy moves this year, says Ian Bremmer, president of Eurasia Group, a
New York-based political risk consultancy. “Together with China’s
new Asian Infrastructure Investment Bank that is strongly opposed
by the US, it reflects Beijing’s efforts
to direct economic investment to
tip the balance of power in Asia
away from US-led multilateral institutions, instead shoring up China-dominated bilateral ties across
the region,” says Bremmer.
Certainly, the US and China
are pushing differing visions for
Asia. “The US is emphasising the
pivot towards Asia, while China
has countered with an ‘Asia Pacific Dream’,” notes Chua Hak Bin,
regional economist with Bank of
America Merrill Lynch in Singapore. “China is playing to its own
strength and emerging Asia’s vast
infrastructure needs,” he says.
The Asian Development Bank
estimates that developing Asia’s
infrastructure will require US$8
trillion between 2010 and 2020.
“If Beijing’s vision is realised,
China will significantly increase its
investment and soft power in Asia,
and internationalise Chinese companies and the yuan,” says Chua.
As the US and China jostle for
influence in the region, all of Asia
stands to be a winner, he believes.
“Geopolitical competition between
the superpowers is benefiting
emerging Asia, with rising foreign
direct investments,” says Chua.
The New Silk Road and other
initiatives recently promoted at the
Apec summit and the G20 summit
are seen as Beijing’s opening gambit in what is likely to be a series of
moves by China to assert its leadership in the region and its broader
economic role globally. The New
Silk Road could be Asia’s ticket to
ride. — The Edge Review
Assif Shameen is contributing editor
at The Edge Singapore. This article
first appeared in this week’s edition
of The Edge Review at http://www.
theedgereview.com
Why economists are paid so much
BY N OA H SMI TH
THE profession of economics periodically finds itself under rhetorical
attack from sociologists.
Part of this is due to the differing
political slants of the disciplines
— sociology tends to lean heavily
to the left, while economics, being
fairly well balanced between liberals
and conservatives, is thus the most
right-wing discipline in academia.
Part of the rivalry is due to the attempts by some economists, such as
Gary Becker, to model phenomena
such as discrimination and family
life that were traditionally in the
realm of sociologists. In the siloed
social sciences, people fear such
“imperialism”.
Sociologists often feel that economics holds itself out as “dominant” or “supreme” among social sciences. That’s the upshot of
a new discussion paper from the
Max Planck Sciences Po Center on
Coping with Instability in Market
Societies.
The paper, called “The Superiority
of Economists”, claims that economics reigns over the social sciences,
and that economists are supremely
arrogant, insular and hierarchical.
In this essay, we investigate the
dominant position of economics
within the network of the social
sciences in the United States. We
begin by documenting the relative
insularity of economics, using bibliometric data. Next we analyse the
tight management of the field from
the top down, which gives economics its characteristic hierarchical
structure.
Economists also distinguish
themselves from other social scientists through their much better
material situation (many teach in
business schools, have external consulting activities), their more individualist world views, and in the confidence they have in their discipline’s
ability to fix the world’s problems.
Taken together, these traits constitute what we call the superiority
of economists, where economists’
objective supremacy is intimately
linked with their subjective sense
of authority and entitlement.
While this superiority has certainly fuelled economists’ practical
involvement and their considerable
influence over the economy, it has
also exposed them more to conflicts
of interests, political critique, even
derision.
Reading the paper, some of this
ends up sounding far-fetched. A lot
of academic disciplines look down
on other disciplines — that’s part of
the fun of academia. Psychologists
certainly don’t think economists
reign supreme over them.
As for economists’ “influence
over the economy”, I am going to
take a wild guess and say that it isn’t
because of their arrogance or hierarchical insularity or “sense of authority and entitlement”. It’s probably
because ... drum roll ... economics is
the discipline that studies the economy. If politicians want to know how
to reduce cancer rates, they should
go to a biologist.
If they want to know how to
shoot missiles at Vladimir Putin,
they should go to a physicist. If they
want to know how to boost productivity at US. companies, or increase
employment, or auction off broadcast spectrum rights, whom should
they ask for advice? A sociologist?
But there is one way in which
economists clearly do dominate the
other social sciences, and that is in
the amount of money they make.
The authors of the paper point this
out in a nice graph.
The authors don’t ask why this is,
but they hint at an explanation that’s
right out of Econ 101. Economists
are scarce relative to demand. They
have many lucrative outside options.
The most important of these are the
consulting and financial industries.
But why do economists have the
option to go work in consulting and
finance? The answer is simple: They
have the technical skills to do so.
I’m not talking about fancy math.
No one hires you to do real analysis
— that’s just something economists
learn as an IQ test, then never use. If
financial companies need someone
to do serious math, they will hire a
mathematician or a physicist. As for
the general equilibrium models that
macroeconomists call “math”, well …
no one uses those for anything except
publishing macroeconomics papers.
The technical skill I am talking
about is statistics. Economists learn
a lot of statistics — much more than
anyone else except for applied math-
ematicians and statisticians. There
is a whole branch of economics,
known as econometrics, dedicated
to statistics. Most of the empirical
work that economists do is applied
statistics.
Statistics is hugely valuable in the
real world. Simply knowing how to
run, and interpret, a regression is
invaluable to management consultants. Statistics is now permeating the IT world, as a component of
data science — and to do statistics,
economists have to learn how to
manage data. And statistics forces
economists to learn to code, usually in Matlab.
Using more and harder statistics
will probably require more quantitative modelling of social phenomena.
But it won’t require sociologists to
adopt a single one of econ’s optimisation models, or embrace any
economics concepts.
Sociologists, someday you too
will be able to command high salaries and send your surplus doctoral
students to lucrative careers in consulting, finance and data science.
It’s time to stop whining and tech
up. — Bloomberg View
18 F E AT U R E
Is Malaysia under threat?
Oil slide puts fiscal progress at risk; Petronas’ contribution could drop 37% next year
BY A NDY MU KHERJEE
Filepic of Petronas’
refinery in Melaka. In the
short run, falling oil revenue
is not good news for Malaysia.
Photo by Petronas
J
ust when Malaysia was beginning to plug the holes in
its public finances, the prospect of a sharp reduction in
oil revenue is threatening to
undermine fiscal progress
and weaken the currency.
Petronas is playing
spoiler. The state energy company
recently warned that its contribution to the government’s exchequer
— in the form of dividends, taxes
and royalties — could slide 37%
next year from an estimated RM68
billion in 2014.
Such a shortfall in the main
source of the government’s oil-andgas revenue would easily exceed 2%
of gross domestic product (GDP).
That would wipe out the 1.7% of
GDP in annual savings the government hopes to achieve by scrapping
domestic fuel subsidies from Dec 1.
The fiscal hit could be even larger if oil prices next year were to remain below the US$75 (RM258) a
barrel on which Petronas based its
forecast. That would threaten the
government’s target of reducing
the budget deficit to 3% of GDP,
from an estimated 3.5% this year.
The finance ministry is refusing
to give up on the 2015 target just
yet. It may hope that Petronas can
be persuaded to make a less drastic
cut in its dividend payment.
Investors, though, aren’t taking
any chances. The Malaysian ringgit
has weakened almost 3% against
the dollar since last Thursday, amid
concerns that the government will
be forced to cut public expenditure,
dragging GDP expansion in the
commodity-exporting economy
well below the current consensus
of 5%-plus growth.
The currency slide may extend —
with tacit approval from the central
bank. At 2.8%, the annual inflation
rate is tame.
A weaker currency could lift the
prices of imported goods, giving
Malaysia’s overburdened household debtors some relief from unexpected disinflation.
A 6% goods and services tax
(GST), which Malaysia plans to
introduce from April 1, might also
boost consumer prices temporarily.
In the long run, the GST will
lower the government’s overdependence on oil and gas revenue
from ageing fields.
Getting rid of wasteful fuel subsidies will protect the budget from
any future spike in world energy
prices.
But in the short run, oil’s slide
is not good news for Malaysia. The
sweet fruits of hard-won fiscal progress have soured rather suddenly.
— Reuters
Wall Street in grip of Geithner nostalgia
BY ROB COX
A WEEK before Thanksgiving,
Wall Street’s top brass were forced
to reckon with an entirely new
sensation: nostalgia for their former overlord Tim Geithner.
Masters of the Universe who
were gathered at Manhattan’s
Pierre Hotel on Nov 20 gave a
warm welcome to the former US
Treasury secretary.
He was a surprise presenter
to Rodgin Cohen, the Sullivan &
Cromwell grandee who has been
involved in most of the deals that
created today’s mega-banks.
Cohen was on hand to receive
The Clearing House’s Annual
Chairman’s Achievement Award,
an honour previously bestowed
upon Mayor Michael Bloomberg
and the Federal Reserve’s Donald Kohn.
The lingering applause Geithner received from leaders of the
country’s biggest financial institutions could be taken as confirmation that he had gone easy
on the industry when he was its
watchdog-in-chief.
That, however, would be too
facile an interpretation. Geithner’s recent ovation was as much
an indication that bankers feel
the current regime doesn’t have
its heart in the business of financial regulation.
From the moment he arrived
with President Barack Obama in
the eye of the financial storm,
to his departure just under two
years ago, Geithner fought off
charges he was in thrall to the
banks. Despite a career in public
service, he was regularly forced to
disabuse people of the notion he
had worked at Goldman Sachs.
Since publishing his memory
of events, Stress Test: Reflections
on Financial Crises, and becoming president of investment firm
Warburg Pincus earlier this year,
Geithner has been decidedly less
visible.
The way his successor Jack Lew
has gone about implementing the
changes Geithner championed,
principally ones mandated under
the Dodd-Frank Wall Street Reform
and Consumer Protection Act, is
casting Geithner’s tenure in a different light. The simplistic question
of who is harder or softer on the
banks has given way to how those
efforts, now enshrined in law, are
coordinated, and how they benefit
the overall public good.
Part of it comes down to priorities. Geithner took over for
Hank Paulson — the actual Goldman alum — amid an existential
firefight.
At the New York Fed, Geithner
had been intimately involved in
helping shape his predecessor’s
bailout programs. His first order
of business at Treasury was to
restore credibility in the banking system.
He did this most lastingly with
the roll-out of stress tests. Forcing
the industry to prepare for economic doomsday was harsh medicine. Banks hated it, especially
the ones forced to raise US$200
billion of capital, and swiftly.
Indeed, the difficulty of im-
posing such draconian measures
is one reason European regulators delayed their own version
of stress tests.
Moreover, weeks after stressing
out the banks, Geithner’s Treasury
provided a white paper on regulation that served as a blueprint
for the bills that both houses of
Congress then developed into the
most sweeping financial reforms
since the Great Depression.
With that historical backdrop,
it was odd to see Geithner receive
hearty applause from executives at
Citigroup, US Bancorp, Deutsche
Bank and BB&T, all of whom attended the Clearing House shindig. These bankers have seen the
alternative, though: a group of
15 regulators, meeting under the
auspices of the Financial Stability
Oversight Council (FSOC), with
no clear direction from Geithner’s
successor.
To be fair to Lew, he was
brought in when the White House
still reckoned there might be a
chance to clinch a grand bargain
on taxes, spending and social safety nets, something his background
as a budget maven would have
facilitated.
That never happened, however,
and Lew has shown less interest
in the weeds of finance, handing
over more authority to surrogates
like Fed governor Daniel Tarullo.
Without a strong hand coordinating the oversight council’s constituents, each has a tendency to
operate within a vacuum, a problem reminiscent of the pre-crisis
regulatory landscape.
Back then, it was a race to the
bottom, with miscreant agencies
like the Office of Thrift Supervision wooing banks with the promise of soft treatment. Now it’s just
breeding confusion.
One prominent example has
been the absence of guidance
from the Fed on applications by
the 31 biggest bank holding companies to disburse capital to their
shareholders as part of the Comprehensive Capital Analysis and
Review, or CCAR.
Tarullo has made clear he
doesn’t want banks to game the
process. That’s fine up to a point.
The unintended consequence is
that it is uniting the banks to share
information and collaborate as a
more powerful lobbying force.
Or consider the recent changes
made by Fannie Mae and Freddie Mac to their representation
and warranty policies. Federal
Housing Finance Agency chief Mel
Watt acknowledged they “did not
provide enough clarity to enable
lenders to understand” when the
two government-sponsored entities might require them to repurchase loans they previously made.
While the clarifications were
designed to get firms lending
again, bankers say they are reluctant to do so without some
acknowledgement that other
agencies, and the Department
of Justice, are on board.
That’s the sort of thing a strong
FSOC leader would be ideally positioned to make happen. Someone maybe like Tim Geithner. —
Reuters
Is Mona Lisa
Chinese?
Italian’s theory
raises eyebrows
AN Italian historian’s theory that
Mona Lisa might be a Chinese
slave and Leonardo da Vinci’s
mother — making the 15th-century polymath half Chinese —
sent online commentators into
a frenzy yesterday.
Angelo Paratico, a Hong
Kong-based historian and novelist from Italy, told the South
China Morning Post: “On the
back of Mona Lisa, there is a
Chinese landscape and even
her face looks Chinese.”
Chinese web users expressed
astonishment and disbelief yesterday, posting dozens of parodies of the painting, with faces
from Chinese comedians to British actor Rowan Atkinson grafted over her delicate features.
Little is known about Caterina, the mother of the artist,
writer, mathematician and inventor, and the identity of the
sitter for the portrait hanging
in Paris’ Louvre museum has
long been a matter of debate.
Paratico, who is finishing a
book entitled Leonardo da Vinci: A Chinese Scholar Lost in Renaissance Italy, cited Austrian
neurologist Sigmund Freud’s
1910 assumption that the painting was inspired by the artist’s
mother.
“One wealthy client of Leonardo’s father had a slave called
Caterina. After 1452, Leonardo’s
date of birth, she disappeared
from the documents,” he told
the paper.
The evidence for a Chinese
connection appears to be slight,
with Paratico saying he was sure
“up to a point” that da Vinci’s
mother was from the Orient.
“To make her an oriental Chinese, we need to use a deductive
method,” he added.
Many posters on China’s
Twitter-like Sina Weibo were
incredulous. “I’m so sad that
you thought I’m a foreigner!”
wrote one, with an image of a
frowning Mona Lisa holding two
rolls of toilet paper and blowing
her nose. “I’d rather be from
wherever I am loved.”
“I now understand why her
smile looks so mysterious and
concealed — it’s typically Chinese,” said another poster. —
AFP
A new theory is circulating that
Mona Lisa might be a Chinese
slave. Photo by Wikipedia
W O R L D B U S I N E S S 19
SGX draws central bank fire
MAS says it will not hesitate to take supervisory action if necessary
BY A RA DHA NA A RAV INDAN
& SA EED A ZHA R
SINGAPORE: Singapore Exchange
Ltd (SGX) came under fire yesterday
after stock trading was interrupted
for a second time in a month, piling
pressure on a bourse and chief executive officer (CEO) grappling with
low trading volume and a dearth of
large listings.
A software error led SGX to open
the bourse three and a half hours
late. The delay came on the heels
of a Nov 5 power failure that halted stocks and derivatives trading,
prompting the Monetary Authority
of Singapore (MAS) to brand the
latest lapse “unacceptable”.
The delay deals a fresh blow
to the ambitions of CEO Magnus
Bocker to make the bourse one of
Asia’s largest through initiatives
such as an increased focus on derivatives.
“I cannot speak for myself, but
on the ground I assess that most
remisiers want him (Bocker) to
leave,” said Jimmy Ho, president
People walking past a logo of SGX outside its premises in Singapore. A software error
led SGX to open the bourse three and a half hours late yesterday. Photo by Reuters
of the Society of Remisiers.
MAS, in a statement yesterday,
instructed Bocker — whose contract expires in June — and the
SGX board to conduct a review and
address any shortcomings leading
to the day’s delay.
“MAS will not hesitate to take
supervisory action against SGX if
necessary,” it said. MAS in the past
has reprimanded and fined financial institutions.
In a statement, Bocker said SGX
understood the market’s “frustra-
tion” and that it was reviewing its
processes to prevent any recurrence.
“We sincerely apologise to all
our securities members and their
customers for the inconvenience
caused by the delay in market open
this (yesterday) morning,” Bocker
said. “This should not have happened and we take full responsibility.”
SGX had delayed trading to enable member firms to reconcile
client positions, and rectify any
errors in end-of-day processing
for Monday on the securities client-accounting system hosted by
SGX on behalf of dealers.
“Obviously never good to have
technical failures, whoever it is to
blame,” said Hugh Young, managing director of Aberdeen Asset
Management Asia, which owns
shares in SGX.
SGX reported a 16% fall in net
profit in its fiscal first quarter due to
lower share trading volume. During
the quarter, the average daily value
of securities traded on the exchange
was 27% lower. — Reuters
ICE targets Asia with yuan, crude futures
BY CHANYAPORN CHANJAROEN
SINGAPORE: Intercontinental Exchange Inc (ICE) will start its first
five futures contracts to be listed
and cleared in Singapore next year,
including products on the Chinese
currency, Brent crude and gold.
A mini contract on the European energy benchmark as well
as products on the yuan, Chinese
cotton and sugar will be cash-settled, while a one-kilogramme gold
contract will be physically settled,
Atlanta-based ICE said. Trade will
start on March 17, subject to regu-
latory approval from the Monetary
Authority of Singapore, it said in a
statement yesterday.
Exchanges are boosting their
presence in Asia as the region’s
commodity consumption rises and
policymakers take steps to open
up economies. ICE spent US$150
million (RM516 million) buying
Singapore Mercantile Exchange Pte
and its clearing house this year after
Hong Kong Exchanges & Clearing
Ltd took over the world’s largest
metals bourse in 2012. China plans
to boost the use of its managed currency as the economic and trading
influence of the top consumer of
fuels and farm products grows.
“ICE selected these contracts
following feedback from market
participants, which emphasised
the regional significance of hedging and trading,” the company said.
More global and regional products
are planned as ICE expands its network of exchanges and clearing
houses, it said.
The new dollar-denominated
contracts will be listed on ICE Futures Singapore, and cleared by
ICE Clear Singapore, it said. The
mini-Brent contract’s size will be
100 barrels, one-tenth of the London-listed contract run by ICE, it
said. The Chinese cotton and sugar contracts are based on similar
futures traded on the Zhengzhou
Commodity Exchange.
The 99.99% purity kilobar contract, with local delivery, will compete
with a product introduced this year
by Singapore Exchange Ltd (SGX),
as well as trading in the Shanghai
free-trade zone offered by the Shanghai Gold Exchange. Singapore is an
offshore trading centre for the yuan,
and SGX started trading yuan futures
in October. — Bloomberg
‘KKR, CJ Korea, XPO shortlisted for
NOL’s APL logistics unit’
Cost of ‘12 Days of Christmas’
rises little, says financial group
BY JOYCE KOH , KYUNGHEE PAR K AND JEFF REY M CC RAC K E N
BY S COTT M ALO NE
SINGAPORE: KKR & Co, CJ Korea Express Co and XPO Logistics Inc
have been picked to make final bids for the logistics unit of Singapore’s
Neptune Orient Lines Ltd, people with knowledge of the matter said.
Bain Capital Partners LLC and CVC Capital Partners Ltd were
also chosen to conduct due diligence on APL Logistics Ltd, the people said, asking not to be named as the process is private. Neptune
Orient is seeking about US$1 billion (RM3.44 billion) for the unit
and has asked for final offers by next month, they said.
Neptune Orient said in October it’s seeking to improve its performance as oversupply of shipping capacity continues to hit freight
rates. In the past two years, it has sold some vessels and its Singapore headquarters building to cut costs.
The logistics business accounted for 18% of Neptune Orient’s
sales in the most recent quarter after generating US$399 million of
revenue, according to data compiled by Bloomberg.
Spokesmen for Neptune Orient and the six bidders declined to
comment or weren’t immediately available.
APL Logistics operates in 60 countries and has more than 5,600
employees, its website shows. The company, set up in 2000, gets
62% of its revenue from the Americas, according to an October
presentation. — by Bloomberg
BOSTON: As the US holiday season spins into high gear, shoppers
with quirky shopping lists got a bit of good news on Monday: The
cost of the gifts in “The Twelve Days of Christmas” carol inched up
just 1.4% this year, a US financial services group found.
The cost of the six geese-a-laying surged 71% over the past year,
according to an annual analysis by PNC Wealth Management of
Pittsburgh. However most of the gifts the carol’s “true love” sent
the singer, including the five golden rings, four calling birds and
nine ladies dancing were unchanged.
Overall, the tab for the gifts in the song’s 12 verses would come
to US$116,273.06 (RM399,979.32) in 2014, up modestly from
US$114,651.18 last year, PNC said. That marked the smallest increase in the song’s cost since 2002, when it dropped 7.6% following a stock-market slide after the collapse of the dotcom bubble.
“While there are exceptions in given years, what’s most interesting
about the index’s history is that since the beginning, year-over-year
increases have averaged 2.8%, which is exactly the same number as the
US inflation index,” said Jim Dunigan, PNC’s chief investment officer.
This year’s increase was less than the 1.7% rise of the US Labor
Department’s Consumer Price Index, a widely watched economic
indicator, in the 12 months ended in October. — by Reuters
IN BRIEF
First Reit to acquire
hospital in South Sumatra
SINGAPORE: First Real Estate
Investment Trust announced
yesterday that it has entered
into a master sale and purchase agreement with PT Bisma Pratama Karya for the proposed acquisition of a hospital
in South Sumatra for S$39.16
million (RM102.85 million),
The Straits Times reported.
The acquisition of the hospital, Siloam Sriwijaya, will be
undertaken through First Reit’s
indirect wholly-owned subsidiary PT Sriwijaya Mega Abadi.
Mainboard-listed First Reit said
the acquisition will expand its
portfolio to 16 properties and
broaden its asset base by 3.54%
from S$1.13 billion (as at Oct
31, 2014) to S$1.17 billion.
SingPost buys Australian
delivery company
SINGAPORE: Singapore Post
said yesterday its wholly-owned
subsidiary Quantium Solutions
(Australia) is acquiring 100% of
Couriers Please Holdings, an
Australia-based parcel delivery
company, from New Zealand
Post Group for A$95 million
(RM274.98 million), The Straits
Times reported. Couriers Please
is one of Australia’s leading metropolitan small-parcel delivery
businesses, said SingPost. It has
a network of 575 franchisees
nationwide and handled nearly
11 million consignments in its
2014 financial year. Its revenue
for the year ended June 30, 2014,
was more than A$100 million.
Local movie producer
seeks listing on SGX
SINGAPORE: The aviation industry has Singapore Airlines,
the food industry has BreadTalk
and the finance industry has
DBS Bank. The Straits Times reported that inspired by these local successes, Singapore-headquartered film producer and
distributor mm2 Entertainment
sought a listing on the Singapore Exchange on Tuesday under the name mm2 Asia Ltd. It
also launched its initial public
offering with a placement of
37.4 million shares at S$0.25
(65.66 sen) each. If all goes well,
it will be the first local film producer to be listed and will be
on Catalist, the exchange’s secondary board.
‘EVA Air best long-haul
airline in Asia-Pacific’
TAIPEI: EVA Airways Corp has
been rated the best long-haul
airline in the Asia-Pacific region for 2015, according to
the latest ratings by AirlineRatings.com, an airline safety
and product rating website.
The Taiwanese airline has also
been ranked seventh in AirlineRatings.com’s World Top
Ten Airlines for 2015, placing
ahead of Lufthansa, All Nippon
Airways and British Airways.
Heading the list is Air New
Zealand, followed by Etihad
Airways, Cathay Pacific Airways, Qantas Airways, Emirates and Singapore Airlines.
— CNA
20 FO CU S
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01
BMW’s plug-in versions of top cars
M
Largest luxury carmaker to meet emissions, fuel economy rules
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01. BMW plans to offer plug-in hybrid
versions of all its main models, including
the best-selling 3-Series sedan.
STORI ES BY EL I S ABETH BEHR M ANN
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MW plans to offer plug-in hybrid
versions of all its main models,
including the best-selling 3-Series sedan, as the world’s largest
maker of luxury vehicles reacts to
tighter emissions and fuel economy regulations.
BMW also took the wraps off a new plugin hybrid system, the Power eDrive, which
promises the sort of power one expects from
a 6-litre V12 Rolls-Royce but combined with
the carbon dioxide (CO) emissions more
associated with a Toyota Prius.
The move signalled the direction Europe’s
leading carmakers are going in order to satisfy increasingly stringent regulations that
are coming into force.
Carmakers are adding electric motors to
improve fuel efficiency and make their vehicles viable in cities such as London, which
has set up a low-emission zone to improve
air quality. Plug-in hybrids have batteries
that can be recharged from electrical outlets, and can drive emission-free for longer
distances than conventional hybrids.
BMW unveiled a prototype of a plug-in
hybrid 3-Series on Monday in France. The
car combines a four-cylinder petrol engine
with an electric motor, and can drive about
35km on battery power.
It also plans to roll out a plug-in hybrid
version of its X5 sport-utility vehicle and
other “core-brand” models. Electric versions
from the Mini and Rolls-Royce brands are
also “a possibility”, said Manfred Poschenrieder, a spokesman for the Munich-based
company.
02. One of the first cars from the BMW i unit
was the i8 plug-in hybrid super car.
02
BMW created the i sub-brand for showcasing its clean-car technology and safeguarding its image as a maker of sporty vehicles.
The first cars from the BMW i unit were the
i3 battery-powered city car and the i8 plugin hybrid super car.
By 2021, companies will have to meet a
“fleet average” emission level of 95g of CO/
km. That’s an easy target to hit for a company like Smart, which only builds two highly
efficient tiny city cars. But for brands like
Volvo, VW and BMW, with potent luxury
sedans, serious sportscars and heavy SUVs
in their ranges, the challenges and costs are
major, a point that was high on the agenda
of this year’s International Conference on
Advanced Automotive 48V Power Supply
Systems held in Düsseldorf, Germany, in
November.
“Until we have a really significant breakthrough with battery chemistry or fuel-cell
technology, the high-voltage approach to
hybridisation and pure battery electric vehicles will remain too expensive for universal application across high-volume vehicle
platforms,” said Paul Bloore, product val-
idation manager for CPT, a multinational
company that provides “clean technology”
to car companies, at the event.
Instead, car companies will gravitate towards solutions that balance efficiency with
expense, which means evolving existing engines, powertrains and hybrid technologies
in the hopes of hitting emissions targets.
But even with that approach, the Power eDrive shows that the cars of the next
decade will be able to meet strict targets,
yet still be exhilarating to drive. The eDrive
uses a 228bhp turbocharged four- cylinder
engine and two electric motors which can
deliver an incredible 670bhp when working together, more power than any car in
BMW’s range (including the Rolls-Royce)
can currently offer.
The engine’s main job is to generate power for the electric motors, but can also send
power to the wheels for extra acceleration.
The car can travel for 100km on electric power alone, and despite only having a 30-litre
fuel tank, will cover 595km before it needs
to be plugged in and the tank topped up.
The new drive train is expected to be offered on BMW’s premium SUVs and could
soon be powering its smaller Rolls-Royce
models, too. — Bloomberg/AFP
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FO CU S 21
T HURSDAY D EC E MBE R 4, 2014 • T HEED G E FINA NCIA L DAILY
Rolls-Royce Ghost Series II debuts in Malaysia
MALAYSIA yesterday witnessed “no ordinary power” with the launch of the RollsRoyce Ghost Series II in Kuala Lumpur.
Since its launch in 2009, the Ghost has
become the ultimate symbol of success for
leading entrepreneurs across the globe and
in Malaysia.
Building on this success is Ghost Series
II, with an updated range of innovative technological, design and engineering features
that position it as the choice modern super-luxury car for the executive on the go.
“Malaysian customers have embraced
Ong (left) and Ritter with the newly
launched Rolls-Royce Ghost Series
II in Kuala Lumpur yesterday.
the Ghost as the benchmark super-luxury
saloon car, along with the Phantom. The
Ghost Series II continues with a higher level
of bespoke exclusivity, quality and perfection that is quintessentially Rolls-Royce,”
said Rolls-Royce Motor Cars Asia-Pacific
general manager for sales Sven Ritter.
“Ghost has been very successful for us
in Malaysia, and it is this reputation that
has helped us win hearts and minds across
the country, including Sabah and Sarawak,”
said Rolls-Royce Motor Cars Kuala Lumpur
managing director Datuk Michael Ong.
Rolls-Royce Motor Cars Kuala Lumpur
will be celebrating its fifth anniversary since
the announcement of its dealership appointment in January 2010. In view of this,
it is planning to hold its “Drive the Icon”
event from tomorrow to Dec 14.
Those interested in attending the event
can register by calling (016) 5522 647/
(012) 2787 505, or by sending an email to
[email protected]
01
Mini line-up shrinks to five ‘Superhero’ cars
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BMW has decided that Mini has become
too big and will shrink the compact brand’s
line-up to five models from eight.
The move reverses course after Mini
rolled out a series of quirky derivatives such
as the coupe and roadster two-seaters in
recent years. While that strategy sustained
sales growth, it added cost and complexity.
Over the long term, Mini will now focus
on “superhero” vehicles like the three- and
five-door versions of the basic hatchback,
the Countryman crossover and the Clubman wagon, which will be revamped next
year, Peter Schwarzenbauer, the brand’s
chief, said last Wednesday.
“Like a superhero, each of these cars
has its own personality and unique capabilities,” said Schwarzenbauer at an event
near BMW’s Munich headquarters. “It is
important to find the right balance between
growth on the one hand and profitability
on the other.”
BMW re-introduced Mini, a 1960s-era
British icon, as an upscale compact in 2001
to target increasing numbers of well-off
urban consumers. Since then, there’s been
a steady stream of trendy city cars such as
the Audi A1, Fiat 500 and Nissan Juke, putting pressure on Mini to differentiate itself.
“Mini now faces competition in areas
where it previously stood alone,” said
Schwarzenbauer, who took charge of Mini
last year after previously heading sales at
Audi.
Three to four current models will retain
their place in the brand’s line-up, which
now includes the two-door Paceman crossover and a convertible. He didn’t say which
Mini models will be cut and didn’t give a
timeframe.
It’s not all backpedalling. Mini will offer
an electric vehicle “soon” as zero-emission
01. Mini introduced the third
generation of its basic
hatchback, known now as the
Hardtop in the US, in 2013.
02. Mini’s electric vehicle could be
modelled on the Superleggera
concept showcased at the
Paris Motor Show in October.
driving will likely become a must in many
downtown districts around the world. An
electric car could be modelled on the sleek
Superleggera concept showcased at the
Paris Motor Show in October.
Mini introduced the third generation of
its basic hatchback, known now as the Hardtop in the United States, in 2013. Demand
for the car will help the BMW unit match last
year’s sales record of about 305,000 vehicles. With the addition of the new Clubman,
Schwarzenbauer anticipates a “significant”
increase in sales next year.
In addition to revamping its line-up,
Mini is looking at more customisation options and alternatives to sales through traditional dealers.
“The brand will continue to evolve over
the coming years to ensure that we remain
leading-edge,” he said. “We will take new
and unexpected directions.” — Bloomberg
01
02
22 W O R L D B U S I N E S S
China rolls ahead with
merger of train makers
Deal will help prevent cut-throat competition between the two
SHANGHAI: China is moving forward with the merger of its two
top train makers, a state-backed
newspaper said yesterday, with a
plan to create a massive group to
export high-speed railway technology.
State media have previously
said the merger of state-owned
China CNR Corp and CSR Corp
will help prevent “cut-throat” competition between the two.
The merger could also put the
combined entity in a stronger position to take on the likes of Germany’s Siemens and Bombardier of
Canada in seeking business over- Workers inspecting a bullet train at a high-speed railway maintenance station in Xi’an,
seas.
Shaanxi province, China. China is going ahead with the merger of its top two train
A draft plan for the merger has makers. Photo by Reuters
been submitted to policymakers,
the 21st Century Business Her- approvals were needed.
CSR will take the lead, taking
ald reported, citing an unnamed
The new entity’s Chinese name over CNR in an all-share deal
source, but did not say who had will be “China Railway Rolling and absorbing its business and
drawn it up or what government Stock Group”, the newspaper said. employees as well as assets and
Luxembourg regulator to fast-track
approvals to use Chinese stock link
BY MI C H EL L E P R ICE
HONG KONG: Europe’s main funds regulator has introduced a
“fast-track” procedure for approving mutual funds that wish to
participate in a landmark Hong Kong-China equity trading scheme.
The announcement, made by the Association of the Luxembourg
Fund Industry (ALFI) on Tuesday, comes amid growing industry
frustration over European regulatory hurdles that have prevented
many asset managers from participating in the Hong Kong-Shanghai Stock Connect scheme.
Luxembourg’s Commission de Surveillance du Secteur Financier (CSSF) will fast-track applications from mutual funds sold to
retail investors, also known as UCITS, whose investment policy
already permits exposure to China shares and which only need to
adapt their existing paperwork, ALFI said.
The move will make it much easier in theory for many large institutional investors to use the Chinese stock link, although how
many funds will benefit from the new process in practice is unclear.
More than 13,000 mutual funds are domiciled in low-tax Luxembourg and regulated by the CSSF, but only a small proportion of
them already invest in Chinese shares through cross-border investment schemes known as QFII and RQFII.
Currently, the CSSF has approved one UCITS fund to use Stock
Connect and has just two other applications for it pending. — Reuters
debts, the report said. Neither
company has commented on the
proposed merger, which came to
light in October through media
reports.
The two companies, both dual-listed on the Shanghai and Hong
Kong stock exchanges, have suspended their shares from trading
pending “important” announcements, exchange filings show.
CSR’s net profit rose 58.29%
year-on-year to 3.97 billion yuan
(RM2.18 billion) in the January to
September period. CNR secured
a deal in October to supply metro
trains to the US city of Boston. Its
net profit jumped 65.1% year-onyear to 3.96 billion yuan in the first
three quarters of this year.
The firms share the same origin,
a rail vehicle manufacturer spun off
from the former railway ministry
in 2000 and split into two. — AFP
GF Fund plans more
US ETFs investing in
Chinese assets
SHANGHAI: GF Fund Management
Co is expanding its range of exchange-traded funds that invest
in China’s US$9 trillion (RM30.96
trillion) bond and stock markets to
meet rising global demand.
“We’re very interested in the US
ETF market, and are talking with our
partners to list more ETF products
there, including A-shares,” said Nathan Lin, chief executive officer of
unit GF International Investment
Management Ltd, referring to stocks
listed in China.
The Hong Kong-based asset
manager has allocated one billion
yuan (RM560 million) of its quota
under the Renminbi Qualified For-
eign Institutional Investor (RQFII)
programme to the US$50 million
Global X GF China Bond ETF, which
was the first such fund to access China’s interbank bond market. RQFII
allows yuan offshore to be invested
in China’s domestic securities.
Bonds and equities in China are
heading for the biggest annual gains
since at least 2009, as China opens
up its capital markets to global investors. The central bank cut interest rates last month for the first
time since 2012 and HSBC Holdings
plc and Barclays plc predict there
will be another two reductions to
support the economy before the
middle of next year. — Bloomberg
India may boast world’s steepest rate cuts in 2015
BY A NDY MU KHER JEE
SINGAPORE: India has decided
against cutting its interest rates. But
that only means next year might
see it slashing them more than any
other major economy. There is both
the scope and the need.
The Reserve Bank of India (RBI)
left the benchmark repo rate unchanged at 8% on Tuesday, fending
off strong pressure from the government to start easing its monetary
policy. Governor Raghuram Rajan
says he first wants to see more proof
of fiscal correction and disinflation.
The wait shouldn’t be long. Rapidly falling energy import costs have
already halved last year’s double-digit inflation to 5.5%, comfortably below the central bank’s
target for January 2016. Price pressures ought to collapse further as
the government curbs spending to
meet its ambitious deficit-reduction target.
Public expenditure has grown
just 4% in the first seven months
of the fiscal year, compared with
a full-year target of 15% increase.
With inflation under control,
the RBI’s most pressing issue is
India’s sputtering growth. Annual gross domestic product growth
slowed to 5.3% between July and
September, below its potential rate
of expansion; manufacturing was
almost flat.
Demand for loans is anaemic.
A reduction in rates by, say, 2 percentage points could make credit
more enticing. It could also boost
Indian stock prices by 18%, according to Jefferies analysts.
The RBI’s most recent announcement dropped enough hints that it
could start easing rates early next
year — possibly even before it holds
its next formal review in February.
Delays beyond that could be risky.
If Prime Minister Narendra
Modi’s “Make in India” manufacturing revival is to click with investors, India needs to demonstrate
that the last few years of stagnation
were an aberration, and the economy is not mired in a middle-income growth trap.
Global demand will be too weak
to be of much help to India’s exports. To get the most juice out of
the domestic economy, the RBI
will need to cut rates, and do so
deeply. — Reuters
IN BRIEF
China’s gold output
growth to slow as price
drop deters mining
BEIJING: China, the world’s
largest gold producer, will see
its output growth next year slow
as falling prices deterred miners
from expanding capacity, according to the China Gold Association. The country’s gold output
growth in 2015 will slow from this
year’s pace of almost 10%, Zhang
Yongtao, vice-chairman at the
association, said in an interview
yesterday. China’s gold output
may exceed 470 tonnes this year,
up from last year’s record 428
tonnes, he said. China ended
South Africa’s century-long run
as the world’s largest bullion producer in 2007 after companies
including Zijin Mining Group
Co and Shandong Gold Mining
Co ramped up production. —
Bloomberg
Single-cell organism
firm joins top ranks of
Japan bourse
TOKYO: The high-tech titans of
Japanese industry were joined
yesterday in the major league
of the Tokyo Stock Exchange
(TSE) by a company exploiting
the 500-million-year-old science of a single-cell organism.
Tokyo-based Euglena, named
after the euglena micro-algae
known in Japanese as “midorimushi” (green bug) was listed
on the first section of the TSE,
joining big names such as Toyota
and Sony, two years after its debut
on the Mothers start-up market.
The company says it is “trying
to create a brighter future using
euglena”, a tiny organism that
is rich in protein, vitamins and
minerals, and can be used in the
production of food or fuel. — AFP
China’s CGN Power prices
Hong Kong IPO at top of
range, raises US$3.2b
HONG KONG: CGN Power Co
Ltd, China’s largest nuclear power
producer, raised US$3.2 billion
(RM11.01 billion) after pricing
its Hong Kong initial public offering at the top of expectations
amid a scramble to invest in a
sector primed for growth as Beijing promotes atomic energy. The
8.82 billion new shares on offer
were priced at HK$2.78 (RM1.32)
each after being marketed in an
indicative range of HK$2.43 to
HK$2.78, Thomson Reuters publication IFR reported yesterday.
That would value the offering
at HK$24.52 billion, the second
largest in the Asia-Pacific region
so far this year. — Reuters
Shanghai Electric Power
says in contact with E.ON
over Italy assets
HONG KONG: China’s Shanghai
Electric Power said yesterday it
was in preliminary contact with
top German utility E.ON over
the possible purchase of its Italian assets. E.ON, whose market
value has plunged by nearly three
quarters since 2008 on the back
of a sluggish European economy,
is in the middle of a massive restructuring that will see it splitting
its business in two to focus on
renewable energies. — Reuters
W O R L D B U S I N E S S 23
Indonesia to lead SE Asian
online shopping boom
Hope is based on expected rapid increase in web users
BY SA M REEVES
JAKARTA: Indonesia is set to lead
a boom in online shopping across
Southeast Asia as Internet access
explodes and investors pour money
into a rapidly growing host of retail
start-ups, analysts say.
Much like China several years
ago, the region is enjoying a rapid
increase in web access that observers say is starting to drive a fundamental shift in shopping habits
among the emerging middle class.
According to a recent report by
investment bank UBS AG, business-to-consumer e-commerce in
Southeast Asia will increase at least
five-fold by 2020, and could reach
as much as US$35 billion (RM121
billion) a year.
It cited strong growth in Thailand
and the Philippines but said Indonesia, the region’s biggest economy,
was the most promising market despite currently having modest online
sales and low Internet penetration.
This hope is based on an expected rapid increase in web users, with
consultancy Redwing saying that
125 million people are expected to
be online by the end of 2015, from
55 million in 2012, coupled with an
increasingly affluent middle class.
“There is huge opportunity,”
Daniel Tumiwa, head of the Indo-
nesian e-commerce association,
told a recent start-up conference
in Jakarta. “The middle class is a
major, major, major driving force.”
E-commerce growth across
Southeast Asia has been given a
kick-start by an explosion in the
availability of cheap smartphones,
analysts say, with many getting their
first taste of the Internet on handsets that come loaded with social
media and popular retail sites.
The past two years has seen a
noticeable shift in Indonesia with
many starting to shop online, for
everything from fashion to electronics, and consumers putting
aside initial worries about fraud to
opt for the convenience of “e-tail”,
Tumiwa said.
The current star of Indonesia’s
nascent e-commerce scene is Tokopedia, a marketplace that allows
users to set up online shops and
handles transactions. In October, the site won a US$100 million
(RM344 million) investment from
Japan’s SoftBank Corp and US firm
Sequoia Capital.
It was the biggest start-up investment in Indonesia to date and the
first in the country by Sequoia, a
Silicon Valley venture capital firm
that has been an early backer of
success stories such as WhatsApp
Inc and Inc Apple. — AFP
If Vodafone wants Liberty it has
to get creative
BY Q U EN TI N WEB B
LONDON: Deals beget deals, as the cliche has it, but still: BT Group
plc eyes a US$15 billion (RM52 billion) takeover in United Kingdom
mobile, and Vodafone Group plc’s measured reaction is to plot a
bid for Europe’s largest cable group, Liberty Global plc. Thing is,
is it worth US$90 billion?
That’s a strategically ambitious way for Vodafone to counter a
new threat to its domestic wireless business. The financial logic is
harder to see.
The good news first. Vodafone is buying, building and renting fibre
networks, as data use explodes and rivals increasingly bundle fixed
and wireless services together. And no other asset matches Liberty.
At a stroke it would make Vodafone a powerful “convergent”
player in Germany, Britain and the Netherlands, selling TV, broadband, landline and mobile.
It is true that officials in Germany, where Vodafone already
owns Kabel Deutschland Holding
AG, have nixed some deals. But
any Liberty deal would probably be scrutinised in Brussels,
which is warming to consolidation and hankers after European
champions.
Now to the financials. Liberty’s chairman, John Malone (pic),
controls the group through super-voting shares. He’s already
on to a good thing: growth and
cash generation, amplified by leverage, bring high returns.
It’s not clear why he and co-investors would sell except for a great
price — especially if they got shares in lower-growth Vodafone in return.
As for Vodafone shareholders, they would need to see big value
creation that isn’t immediately apparent to the market. Analysts
at RBC outlined a Liberty purchase at US$91.4 billion including
debt, or 10 times earnings before interest, taxes, depreciation and
amortisation (Ebitda).
Even if sellers took 45% in stock, Vodafone’s debt would still hit
an uncomfortable 3.5 times Ebitda and earnings accretion would
not come until 2020. And those Vodafone investors who bought for
the 5% dividend yield could see the payout cut after a deal.
So to make this work, Vodafone will have to maximise cost savings
and minimise financial strain. That could mean lining up disposals
of non-core Liberty units in Belgium and Switzerland, or even selling Vodafone assets in emerging markets like South Africa or India.
Alternatively, it could attempt a much smaller deal, targeting
just Liberty’s Virgin-branded UK business.
Many things need to go right for a Vodafone-Liberty tie-up to
happen. If this is plan A, Vodafone must have several plan Bs. Those
could include British broadband operator TalkTalk, European payTV giant Sky — or even BT itself. — Reuters
In a memo to staff seen by Reuters, Pascal (left) and Lynton (right) acknowledged that
“a large amount of confidential data has been stolen by the cyber attackers, including
personnel information and business documents.” Photos by Reuters
Sony Pictures
struggles to recover
after cyber attack
BY RO NALD G ROV E R,
M ARK HO S E NBALL & J I M FI NK LE
LOS ANGELES/WASHINGTON/
BOSTON: Eight days after a massive cyber attack on Sony Pictures
Entertainment Inc, the Hollywood
studio was still struggling to restore
some systems on Tuesday evening
as investigators combed for evidence to identify the culprit.
Some employees at the Sony
Corp entertainment unit were given new computers to replace ones
that had been attacked with the rare
data-wiping virus, which had made
their machines unable to operate,
according to a person with knowledge of Sony’s operations.
In a memo to staff seen by Reuters, studio co-chiefs Michael Lynton and Amy Pascal acknowledged
that “a large amount of confidential
Sony Pictures Entertainment data
has been stolen by the cyber attackers, including personnel information and business documents.”
They are “not yet sure of the
full scope of information that the
attackers have or might release,”
according to the memo first reported by Variety, and encouraged
employees to take advantage of
identity protection services being
offered.Their concern underscores
the severity of the breach, which
experts say is the first major attack
on a United States company to use
a highly destructive class of malicious software that is designed to
make computer networks unable
to operate.
Government investigators led
by the FBI are considering multiple suspects in the attack, including North Korea, according to a
US national security official with
knowledge of the investigation.
The hack, which was launched
on Nov 24, only affected computers with Microsoft Corp’s Windows
software, according to the person
familiar with Sony’s operations.
— Reuters
IN BRIEF
IFR: Archi Indonesia
shelves IPO due to weak
investor interest
JAKARTA: Gold miner PT
Archi Indonesia has shelved a
planned initial public offering
(IPO) to raise up to 4.6 trillion rupiah (RM1.3 billion)
after weak investor interest,
IFR reported yesterday citing
three people familiar with
the matter. The planned IPO
comprised a primary tranche
of 1.6 billion shares and a secondary tranche of 279 million shares, with an indicative
price range of 1,895 rupiah to
2,445 rupiah, IFR said. The
miner said last month the
IPO proceeds were to fund
acquisitions and pay debt.
— Reuters
Fate of Merpati airline to
be known in 3 weeks
JAKARTA: The fate of Indonesia’s heavily indebted state
carrier PT Merpati Nusantara
Airlines will be decided in the
next three weeks, the Jakarta
Post reported late on Tuesday,
citing state enterprises minister
Rini Soemarno. Merpati, which
has a debt of more than 6 trillion rupiah (RM1.7 billion), has
been grounded since February,
struggling with paying employee salaries, insurance and fuel
bills. Soemarno has taken bold
steps to shake up the country’s
state enterprises since taking
office just over a month ago.
Last week, she dismissed the
entire board of directors of state
oil and gas giant Pertamina.
— Reuters
‘Shipping firm Soechi to
boost fleet’
JAKARTA: Indonesian oil and
gas shipping firm PT Soechi
Lines Tbk plans to spend
US$80 million (RM275 million) to expand its fleet next
year to take advantage of a government drive to boost maritime infrastructure, its chief
executive said yesterday. Chief
executive Go Darmadi was
speaking after the company’s
shares rose as much as 27%
on their first day of trading,
outperforming the broader
Jakarta stock exchange which
fell 0.2%. The company raised
around 582.5 billion rupiah
from its IPO last week. Soechi,
which currently has 33 ships,
plans to acquire seven more
ships next year, Darmadi said.
— Reuters
Indonesia plans to issue
euro bond in 2H15
JAKARTA: Indonesia plans to
sell euro bonds in the second
half of 2015 (2H15), its second
issuance of euro-denominated
bonds, an official at the debt
management office said yesterday. Director-general at the
debt management office, Robert Pakpahan, said the government also plans to sell samurai
bonds to the Japanese market
in the first half of next year.
Indonesia will also issue dollar-denominated global bonds
and global sukuk in 2015, Pakpahan added. — Reuters
W O R L D 25
Hong Kong protest
leaders turn themslves in
Occupy founders surrender to police but not arrested
BY D ENN I S CHON G
HONG KONG: The original founders of Hong Kong’s pro-democracy
Occupy movement surrendered
to police yesterday in a symbolic
move as they seek to take the protests off the streets after more than
two months of rallies punctuated
by violence.
Dozens of supporters carrying
yellow umbrellas, which have become a symbol of the movement,
and shouting “I want true democracy without fear”, surrounded the
trio as they turned themselves in
at a police station.
However Benny Tai, Chan Kinman and Chu Yiu-ming quickly
emerged from the station, saying
they had not been arrested despite
admitting to “participating in unauthorised assembly”.
wait and see,” said Tai.
Supporters waiting outside the
“Later we may be arrested,
The three had been joined by police station also queued up to fill
even prosecuted, for more serious outspoken 82-year-old Cardinal Jo- out forms for turning themselves in.
offences. I think we have to seph Zen, who also gave himself up.
Hong Kong and Chinese author-
(From left): Occupy civil
disobedience founders Chu,
Chan and Tai walking to the
Central Police Station in
Hong Kong yesterday.
ities have consistently slammed the
protests as illegal.
Tai said the Occupy movement
would now take a different approach to promoting its cause, including through education and a
new social charter.
China’s communist authorities
insist that candidates for Hong
Kong’s leadership elections in 2017
must be vetted by a loyalist committee, which the protesters say will
ensure the election of a pro-Beijing
stooge. — AFP
SUPERHERO TRIBUTE...
A few years before the Batman TV series
kicked off in the mid-1960s, a man
named Forrest Robinson decided to
profess his love of Batman in the only
way he knew how — by dismantling
a car and remaking it in the image
of the Caped Crusader’s comic book
car. Robinson started with a 1956
Oldsmobile frame with the classic
‘Rocket’ 324 V8 engine underneath, then
slashed away the body and attached his
own custom design. The car ended up
measuring over 5m in length and over
2m in width, including the fin, ‘bat-nose’
front end and pocket sliding doors.
Robinson used it as his personal car. It
is coming up for auction soon with bids
starting at US$90,000 (RM309,600).
Man fined
S$10,000
for forging
marriage, birth
certificates
SINGAPORE: His lover was carrying their child and wanted
to get hitched but she did not
know he was married with children, and would not be able to
register their union, The Straits
Times reported.
To get around this, the daily
said, Ong Tiong San paid someone S$120 to stage a solemnisation ceremony at his home and
created a fake marriage certificate by modifying a scanned
copy of his real one.
He repeated the trick after
she gave birth in February, this
time using his son’s birth certificate as the template for a bogus
one, according to the report.
Zhao Dan, a Chinese national, remained none the wiser. But
the deception finally fell apart
when the retail supervisor returned to work in May, and submitted the false documents to
claim maternity leave benefits
from her employer.
Yesterday, Ong, 43, was fined
S$10,000 after pleading guilty to
two counts of forgery.
The daily said the couple
met while working at NTUC
Fairprice where he was then a
division manager.
The court heard that on
Jan 25, Ong used computer
software to produce the phony marriage certificate. This
stated that his purported union
with Zhao, 30, had been solemnised by an assistant registrar
of marriages.
Sometime between late February and early March, he made
the fake birth certificate, which
said their newborn girl was a
Singapore citizen.
District Judge Carrie Chan
called Ong’s offences “shocking”, noting his previous convictions in 1992 and 1994, for
criminal breach of trust and
cheating, both involved dishonesty.
The judge noted that forgery
carries a maximum jail term
of four years, and warned Ong
imprisonment was likely if he
were to reoffend.
Singapore responds to ‘dishonest’ commentary in WSJ
BY FI ON A CHA N
SINGAPORE: The government has
responded to a commentary in The
Wall Street Journal (WSJ) by opposition politician Chee Soon Juan,
saying he has been “dishonest” to
claim that Singapore’s system is
a failure, or that the state has not
acted to tackle issues such as income inequality, The Straits Times
reported.
Even as the income gap in Singapore has risen, low-income citizens have access to high-quality
education, health care and public
housing, and their wages have been
growing over the last 10 years, Singapore’s Hong Kong-based consulate-general Jacky Foo wrote in a
letter to the WSJ on Tuesday, the
daily reported.
Foo said that while Singapore’s
model “is not perfect... it is dishonest of Chee to claim that it
has failed, or that we have done
nothing”.
According to The Straits Times,
Chee had stated in his commentary, published over the weekend,
that Singapore’s economic success
has “wrought havoc” on values
such as freedom, compassion and
equality, leading to “Singaporeans’
disenchantment with the current
system”.
The secretary-general of the Singapore Democratic Party called for
an “alternative vision” for the republic, where “the wage structure
should ensure that the working
poor don’t see their real incomes
shrink even as the number of billionaires rise”.
In response, Foo was reported
by the daily as saying that the real
wages of low-income Singaporeans have grown by 10% in the past
decade, “unlike the stagnation often seen elsewhere”.
He added that while income in-
equality has also increased in many
other countries, Singapore families
earning just S$1,000 (RM2,625) a
month can afford to own a tworoom apartment here.
Eight out of 10 households in
the poorest one-fifth of Singapore
society own homes, with an average net housing equity of more
than S$200,000 each, Foo observed.
He also addressed Chee’s criticism of government-linked companies as being the “prime drivers of
growth” in Singapore’s economy.
Calling this charge “absurd”, Foo
said such companies, including
Keppel Corp and Singapore Air-
lines, make up just one-tenth of
the economy.
“Privately-owned small- and
medium-sized enterprises employ
seven in 10 Singaporeans and enjoy
the bulk of government support,”
Foo said. On Chee’s claim in his
commentary that Singapore lacks
a democracy, Foo said Singapore
elections are “free and fair”.
“Every time Chee and his party
have contested, Singaporeans have
rejected them,” he said.
“He might do better to take the
interest of Singaporeans to heart,
rather than pander to the editorial
tastes of the Western media.”
26 WORLD
Philippines disaster city
braces for strong typhoon
Hagupit to make landfall as early as Saturday afternoon
TACLOBAN: Authorities in a Philippine city ravaged by Super Typhoon Haiyan were yesterday
faced with how to keep residents
still living in tents after the 2013
disaster safe as a new, powerful
cyclone threatened to bring giant
waves ashore.
The state weather service said
Typhoon Hagupit was heading west
for the central islands of Samar and
Leyte, and would make landfall as
early as Saturday afternoon with
gusts of up to 170km an hour.
Residents in the city of Tacloban,
which bore the brunt of Haiyan
— the most powerful storm ever
to make landfall — last year were
clearing out grocery shelves in an
effort to stock up on emergency
provisions ahead of the storm.
Meanwhile, authorities were due
to meet later yesterday to identify
new evacuation centres far from
shore.
Tacloban city vice-mayor Jerry
Yaokasin said about 500 families
were still living in tents more than
a year after waves up to seven metres high driven ashore by Haiyan
destroyed their homes.
They and some 3,000 other families housed in temporary shelters
are the priority in case the city government orders a mandatory evacuation, he said. — AFP
Pakistan
police register
blasphemy case
against ‘disco
mullah’
Zimbabwe’s Mugabe
says deputy planned
to unseat him
HARARE: Zimbabwe’s President
Robert Mugabe has accused “a
woman” in his party of a plot to
unseat him and work with the
opposition in a coalition government, state media reported
yesterday, in comments seen as
directed at his embattled deputy, Joice Mujuru. Mujuru, a
battle-hardened guerrilla nicknamed “Spill Blood”, has faced
accusations from Mugabe’s wife
Grace and state-owned media
of corruption and plotting to
kill Mugabe in what analysts
say is a smear campaign to end
her immediate political career.
Mugabe, 90, accuses the West,
especially London and Washington, of funding the opposition Movement for Democratic
Change to remove him from
power. — Reuters
HRW urges Saudi to free
two women held in
driving case
DUBAI: Human Rights Watch
yesterday urged Saudi authorities to “immediately release”
two women arrested after one
of them attempted to drive into
the kingdom in defiance of a
ban. Border officers stopped
Loujain Hathloul when she
tried to drive from neighbouring United Arab Emirates into
Saudi Arabia on Sunday. Maysaa Alamoudi, a UAE-based
Saudi journalist, later arrived
to support her. An activist told
AFP yesterday that Hathloul,
25, and Alamoudi were still in
custody in Eastern Province
but neither had been charged.
— AFP
BY MEH REEN ZAHR A-M ALIK
ISLAMABAD: Pakistan police
said yesterday they were investigating blasphemy allegations
against a man dubbed the “disco mullah” who quit a career in
pop music to become a preacher.
The case against Junaid Jamshed, a member of the deeply
conservative Tableeghi Jamaat
organisation, was brought by
Mobeen Qadri, a member of
the religious political party
Sunni Tehreek.
Blasphemy is punishable
by death in Muslim-majority
Pakistan. But the law does not
define what is blasphemous —
anyone can file a case alleging
their religious feelings were
hurt for any reason.
Qadri filed the case against
Jamshed after he used the example of one of Prophet Muhammad’s wives to illustrate an
argument about the failings of
women in a video.
“Now the case is with the
investigators,” said Mehmood
Ahmed, a police officer in Karachi. “We will have to arrest
Junaid Jamshed and it is up to
him if he moves bail and goes
to court against this.”
After the video went viral,
Jamshed released a video apology. “This is my mistake and it
is because of my ignorance, because of my lack of knowledge,”
the 50-year-old said. “With a
clean heart I ask that Allah forgive me and I beg and beseech
all Muslims to forgive me. This
was not on purpose.”
Rights groups say the law is
mostly used against minorities
and the poor to settle personal
scores or seize property.
Before becoming a preacher,
Jamshed was a pop star with a
string of chart-topping songs and
albums. He retired in 2001 and
announced that he was devoting his life to Islam. — Reuters
IN BRIEF
Bill Cosby accused in
lawsuit of molesting girl
in 1974
RHINESTONES, FEATHERS, GLITTER GALORE... Models posing for a group photograph outside the Victoria’s
Secret shop on New Bond Street in central London on Monday. The models had crossed the Atlantic for the lingerie label’s first catwalk show
in London on Tuesday. The 47 models showed off the brand’s most extravagant creations, including jewel-encrusted bras worth US$2 million
(RM6.88 million) each and ‘angel wings’ — the models are known as ‘angels’ — made of gold. Photo by Reuters
MP from former Thai ruling
party jailed over royal slur
BANGKOK: A lawmaker from Thailand’s toppled ruling party was jailed
for two-and-a-half years yesterday
for defaming the royal family, the
latest in a series of such convictions
since the army grabbed power.
Prasit Chaisrisa, 49, a former MP
for the Peau Thai party, confessed
to committing lese majeste during
a speech to “Red Shirt” supporters
of the then-government, shortly
before it was toppled in a May coup.
“The judge initially sentenced him
to five years in prison but halved the
term because he confessed,” a Bangkok Criminal Court official told AFP.
His comments cannot be reported as they would be in breach of
Thailand’s lese majeste law — one of
the world’s toughest — that shields
the king, queen, heir or regent.
Anyone found to have defamed,
insulted or threatened them faces
up to 15 years in jail for each count.
Thai media outlets frequently censor themselves to avoid falling foul
of the law.
Prasit, a former lawmaker for the
impoverished northeastern province
of Surin, was arrested just days after
the May 22 coup and initially denied
the charge. He changed his plea in
hopes of a lighter sentence.
“The suspect is a two-time MP
and must be... more prudent than
ordinary people before speaking,”
the judge said, giving his ruling.
Since ousting the elected govern-
ment, junta leader Prayut Chan-OCha has repeatedly vowed to crack
down on anyone who insults the
monarchy, which attracts deep loyalty among the military and Bangkok-based establishment.
The pledge comes as anxiety
mounts over the future of the kingdom as the decades-long reign of
revered but ailing King Bhumibol
Adulaydej, who turned 87 last Friday, enters its twilight.
A recent study by the Paris-based
International Federation of Human
Rights said lese majeste cases have
surged since the coup, with 18 new
arrests made and outstanding cases fast-tracked through the courts.
— AFP
LOS ANGELES: Bill Cosby was
sued on Tuesday by a woman
alleging he molested her in 1974
at the Playboy Mansion in Los
Angeles when she was 15, in
what is believed to be the first
court case arising from a recent
wave of sexual misconduct accusations against the comedian.
The five-page complaint, filed
in Los Angeles County Superior Court, charged that Cosby
sexually abused plaintiff Judy
Huth by putting his hand down
her pants, and then “taking her
hand in his hand and performing a sex act on himself without
her consent.” — Reuters
Japanese asteroid probe
sets off on six-year
journey
TOKYO: A Japanese space
probe named after a falcon
blasted off yesterday, setting
off on a six-year round trip to
an asteroid for samples that
scientists hope will help reveal
the origins of life. The launch
of the Hayabusa 2, postponed
twice because of bad weather,
comes less than a month after a European Space Agency
probe landed on a comet in a
pioneering mission. Hayabusa means peregrine falcon in
Japanese. — Reuters
W O R L D 27
T HU RSDAY D EC E MB E R 4, 2014 • T HEED G E FINA NCIA L DAILY
N Korea orders all sharing
leader’s name to change it
The name Kim Jong Un is not allowed for newborns too
SEOUL: North Korea has ordered
people who share the name of
leader Kim Jong Un to change
their names, South Korea’s staterun KBS television reported yesterday.
North Korea imposed similar
bans on the use of the names of
its two former leaders, Jong Un’s
father, Kim Jong Il, and grandfather, Kim Il Sung, as part of propaganda drives to build cults of
personality around them.
Kim Jong Un’s name is not allowed for newborns and people
who share the name must not
Filepic of Jong Un. Similar bans
are on the use of the names of
two former leaders, Jong Un’s
father, Jong Il, and grandfather,
Il Sung, as part of propaganda
drives to build cults of personality
around them. Photo by Reuters
just stop using it but must change
it on their birth certificates and
residence registrations, KBS reported, citing an official North
Korean directive.
Jong Il, the father of the current leader, issued the order in
2011, when his son was heir apparent, KBS said. Jong Il died in
December that year and his son
took power.
South Korea’s Unification Ministry, which handles ties with the
North, could not immediately
confirm the report but said it was
plausible.
“The ban is highly possible
since North Korea had the same
policy in the era of Kim Jong Il
and Kim Il Sung,” a ministry official said.
It is not known how many people there are in North Korea called
Kim Jong Un, but Kim is a very
common family name and Jong
Un are common given names.
— Reuters
Thousands get sneak peek of Imperial Palace
TOKYO: Tens of thousands of people were offered a rare — but congested — glimpse of Japan’s exclusive Imperial Palace grounds in
Tokyo yesterday, in a fleeting open
garden event.
By early afternoon, more than
50,000 visitors had turned out to
enjoy a stroll along a 750m, treelined road that is usually off-limits
to the hoi polloi.
Television footage, including
from helicopters, showed ranks
of mostly elderly people shuffling
through the dramatic autumn foliage of crimson maple trees.
The Imperial Household Agency,
the government department responsible for every aspect of the royal
family’s affairs, decided to open a
small section of the grounds for five
days as part of celebrations marking
Emperor Akihito’s 80th year.
The Imperial Palace is a vast
patch of greenery in grey, crowded
Tokyo, one of the biggest cities on
earth, where millions of people live
in cramped apartments.
Surrounded by a moat, the
grounds were the site of a magnificent castle for the storied shogun
warlords of yesteryear, but became
the main residence for the royal
family after the so-called “Meiji
Restoration” of 1868 brought the
emperor back to pre-eminence.
During Japan’s property bubble
of the 1980s, it was said that the
palace grounds were worth more
as a piece of real estate than the
entire state of California.
Although Akihito’s father was
forced to renounce his divinity as
part of Japan’s surrender in World
War II, the imperial family remains
highly revered by most Japanese.
The arcane traditions that surround every aspect of their lives
are a mystery to the public, which
eagerly leaps on any chance to peer
behind the curtain, however briefly. — AFP
IN BRIEF
Do not eat sausage dogs,
says Swiss group
ZURICH: An animal rights
group has petitioned the
Swiss government to ban a
traditional, if rare, practice
of eating cats for dinner and
turning dogs into sausages.
Tomi Tomek, president of the
animal rights group Sos Chats
Noiraigue, which campaigned
successfully last year to ban
the sale of cat fur, said 3% of
the population still eat cat
and dog, mainly in the regions of Appenzell, Lucerne,
Jura and Berne. “You can’t report it to the police because
there’s no law against it,” she
said. Dog meat is traditionally
used to make sausages and a
fatty remedy for rheumatism,
while cat can be served for
Christmas dinner. — Reuters
Indian forces kill 6
militants near Pakistan
HANDWARA (India): Soldiers
killed six militants near the
border with Pakistan in the
Indian state of Kashmir, the
army said yesterday, in the
biggest single-day shootouts
in months at the heavily militarised border. The encounter took place in Kupwara in
northern Kashmir late on
Tuesday, hours after voters
turned out in large numbers
for a state election that separatists and militants are opposed to. — Reuters
Bodies from S Korea
trawler found
SEOUL : Eleven more bodies were recovered yesterday from the area where a
South Korean trawler sank
in the Bering Sea as hopes
dimmed of finding any survivors among 41 crew members
still missing. The 11 comprise
seven Indonesians, three
South Koreans and a Filipino, the South Korean foreign
ministry said in a press statement.— AFP
28
live it!
T HU
WELLBEING . THE ARTS . WINE+DINE . STYLE+DESIGN . LEISURE
Personal
ASSISTANT
COMPI L ED BY LLEW -ANN P HANG
WORK. LIFE. BALANCE
IN the mood
for some early
Christmas cheer?
Head to any La
Bodega outlet
to indulge in its
Christmas Cocktails
promotion,
which offers the
Snowflake Cooler,
the Grinch, Santa’s
Cookies, Christmas
Tree and Candy
Cane for those who
want to quench
their festive thirst. Priced at RM23++ per
glass, this promotion is running at all La
Bodega outlets nationwide all month long.
01
Wings
CELEBRATE the weekend with a musical
presentation at Alexis Bistro as it
presents Bossa Nova Night with Xiong
tomorrow and Saturday. The unassuming
and quiet Xiong, who is a guitarist,
composer and arranger, will serenade
you through the night. Already an artiste
in his own right, Xiong has worked with
the likes of Indonesian artistes Harvey
Malaiholo and Kris Dayanti, and Hong
Kong vocalist Angelita Li, among others.
He has also showed off his skills at many
local music festivals such as the Kuala
Lumpur Arts Festival, Sarawak Rainforest
Music Festival and the Penang and
Sabah Jazz Festivals. Expect a meditative,
thoughtful and romantic finish to his
presentation that kicks off at 10pm
at Alexis Ampang. There is no fee for
admission. For details call (03) 4260 2288
or log on to www.alexis.com.my.
THE 11th Penang
Island Jazz
Festival kicks off
today and ends on
Sunday. The Pearl
of the Orient
will play host
to performers
such as Richard
Bona Group,
Carmen Souza,
Crystal Bowersox,
Monoswezi, Laila
Biali Trio, Jo Yeong Deok Trio, Dutch Swing
College Band, CNIRBS, Fresh Dixie Project
and Schroeder-Headz. Their performances
will be held at the Jazz by the Beach
stage. Tickets are priced at RM80 per
night and are available via www.ticketpro.
com.my and authorised outlets. Call the
Tropical Spice Garden at (04) 881 1797 for
enquiries.
APLENTY
‘Ab
Am
sen
Beh
Klo
at g
Victoria’s Secret ‘Angels’ strut in London for first time
T
op models wearing gold wings
and diamond-encrusted bras
strutted the London catwalk
on Tuesday in the first Victoria’s Secret annual lingerie show to be held in the
British capital.
The event was billed as the US company’s most expensive ever with a price tag
of US$20 million (RM68.8 million), and
featured some of the world’s best-paid
models including Brazil’s Adriana Lima.
It was only the second time the show
was held outside the United States since
1995. The event began on a glamorous
note with the so-called “Victoria’s Secret
Angels” dressed in white and sporting
gold wings.
British singer-songwriter Ed Sheeran took to the stage to perform his hit
Thinking Out Loud as models walked
the catwalk in colourful outfits inspired
by exotic destinations.
US superstars Taylor Swift and Ariana Grande also performed in the show
in London — a city chosen over Paris
because of its “convergence” between
fashion and music, according to marketing director Ed Razek.
“The show is seen in 192 countries, the
show is seen by 500 million people. That
is completely unique in the industry. No
one does what we do,” Razek said.
Wearing long dark tresses and capes,
Lima and fellow Brazilian Alessandra
the
the
gar
the
02
Ambrosio exhibited Fantasy Bras created by jeweller Mouawad, each studded
with 16,000 precious stones including
diamonds, rubies and sapphires valued
at US$2 million.
Swift, dressed in a pink and black negligee, performed her single Blank Space
during the part of the show inspired by
dreams and on a stage decorated with
pearlescent balloons.
A change in ambiance arrived in the
fourth section of the show, which was
hosted by Grande and dedicated to the
brand’s more casual PINK line aimed at
students, with models dressed in leopard
prints and bright colours.
Irish musician Hozier then performed
his hit debut Take Me to Church as models, dressed in pale green and pink, and
with transparent fairy wings, strutted in
a magical setting of white trees and autumn leaves.
live it! 29
T HURSDAY D EC E MBE R 4, 2014 • T HEED G E FINA NCIA L DAILY
03
04
01. Models walking the runway
during the 2014 Victoria’s Secret
Fashion Show at Earl’s Court
exhibition centre. Photo by AFP
02. Swift performing during the
show. Photo by Reuters
03. A model presenting a creation
at the fashion show. Photo by
Reuters
01
04. Models standing backstage.
Photo by Reuters
05. Lima posing for a photograph
with a Dream Angels Fantasy
Bra priced at US$2 million,
ahead of the show. Photo by
Reuters
06. French model Sigrid Agren
walking the runway. Photo by
AFP
Y
07. Kroes walking the runway.
Photo by AFP
05
06
07
Swift then returned to the stage to bring there and made US$6.68 billion from sales
the show to a close with a black and white last year.
themed performance as the Angels modelled
It has been on the British market since
garter belts and stockings sets.
2005 and has a flagship store on London’s
New Bond Street, one of 15 outlets in the
‘Absurd’ controversy
country.
Among the 47 “Angels” chosen to repreThe flashy brand is not to everyone’s taste,
sent the brand were Candice Swanepoel, however.
Behati Prinsloo, Doutzen Kroes and Karlie
Three British students led a successful
Kloss — the latter appeared wearing 18-car- social media campaign that forced the comat gold wings.
pany earlier this month to change its adverts
Created in 1977 and with 1,000 stores in featuring models wearing its new Body bras
the US, Victoria’s Secret is the market leader under the slogan: “The Perfect ‘Body’.”
The ad now reads: “A Body for Every Body.”
But Razek dismissed the controversy as
“absurd” as he said the company had never
intended to present “an example of the one
and only perfect body in the world”.
Describing the models as “healthy” and
“confident”, Razek said that those who performed in the show were “genuinely nice
women” who defied stereotypes.
“The image of a vacuous supermodel who
never eats and only worries about what she
looks like is certainly not the image of our
girls,” he said.
Swedish model Elsa Hosk said she had
prepared for the show, which has helped
launch the career of several famous supermodels, with “a lot of different workouts”,
including a mix of ballet and boxing.
“It’s one of the biggest shows that you
can walk in as a model,” she told AFP ahead
of the event.
“It’s such an honour for a model to walk
in this show, just because it’s huge publicity for us.”
Dutch model Doetzen Kroes said: “It feels
really special.” — AFP
PICK OF THE DAY
02
was
the
d at
ard
med
odnd
d in
au-
BELGIAN-born American fashion designer Diane von Furstenberg celebrated the
40th anniversary of her iconic wrap dress with a retrospective exhibition entitled
Journey of a Dress in Los Angeles. A book of the same name is now available that
beautifully immortalises that exhibition for readers around the world by highlighting its three major parts: the timeline, the wrap army and the art salon. The book
features photographs by Helmut Newton, Annie Leibovitz and Francesco Scavullo,
among others, artworks by close friends such as Andy Warhol and Francesco Clemente, and contemporary Chinese and American art specially commissioned by von
Furstenberg. Journey of a Dress is a private tour, a look-book, an art book, and a
history lesson, all captured in one volume as vibrant as the prints that made von
Furstenberg famous, and as full of character as the woman herself. The perfect
complement to this striking volume is an autobiography of the designer herself,
entitled The Woman I Wanted to Be. Both books are available at RM320 and RM110,
respectively at the brand’s boutiques in Pavilion KL and Suria KLCC.
30
live it!
Zen TODAY
The less routine the more life.
— Amos Bronson Alcott
Rise of the
LEGEND
BY MA E CHA N
Director: Roy Chow
Cast: Eddie Peng, Sammo Hung, Wong ChoLam, Angelababy, Wang Loudan, Jing Boran,
Tony Leung Ka Fai
Rating: ***1/2
Length: 131 mins
Opening: Now showing
Plot: A war between two rival gangs over
the ultimate control of the Guangzhou Pearl
River harbour unravels a heinous human
trafficking crime committed by the Black
Tiger gang, which is led by Thunder (Sammo
Hung). A young Wong Fei-Hung (Eddie Peng)
proves himself a fearless and cold-blooded
fighter determined to join the gang and rise
through the ranks. There is more to it than
meets the eye, however, as signs of an uprising by a group of vagabonds start to play out.
R
ise of the Legend sees the kungfu film heavyweights behind it
take on a visual driven, modern
and highly stylised take on a
classic formula. Produced by
William Kong, who has a track
record of award-winning blockbusters starting from The Blue Kite and followed by epic
historical favourites Crouching Tiger Hidden
Dragon, Hero, House of Flying Daggers, Curse
of the Golden Flower, Fearless and then Ang
Lee’s Lust, Caution among others.
Throwing his weight and money behind
new Chinese directors in recent years, Kong
rejoins director Roy Chow (Crime & Punishment, Nightfall) in a prequel story of Kung
Fu films’ most legendary character — Wong
Fei-Hung. The plot is intriguing enough to
sustain interest — a young and maybe a little
too good-looking Wong comes across as hotheaded and cocky, who mysteriously chooses to join the notorious Black Tiger gang.
Clearly ambitious and calculative, Wong
seems to be driven by a thirst for revenge
and vengeance, a far cry from the unperturbed and gentlemanly Wong Fei-Hung
that we grew up watching. Played by Tai-
wanese heart-throb Eddie Peng who, with
this film, reinvents himself one leap further
as a chiselled action star, Rise of the Legend
succeeds in stirring the imagination with a
new side to a well-worn character.
That being said, however, it’s a good thing
Peng has a natural tortured soul, vulnerable
charm that suits the storyline here, because
his acting leaves quite a lot to be desired. A
crucial scene of loss betrays his limits rather painfully.
The film also takes the brotherhood allegiance to a bromance level at the film’s peak,
ruining what could have been a genuinely
heartfelt moment by tipping it over the edge.
As for proving his chops as a martial arts
actor, the verdict remains open what with the
heavy use of stylised effects and wire action.
Choreographed by veteran Corey Yuan
with Sammo Hung in support as well as in
action, Rise of the Legend brings a hyper-realistic visual impact (with a generous amount
of blood) for the action, clearly designed
to impress. It worked from the beginning,
with enough slow-motion dramatic pauses
to emphasise.
Fans of some old-school Wong Fei-Hung
action may be divided over whether the
modern style detracts from or enhances.
What is definite is that the action sequences
could have been longer, with more focus on
actual martial arts movement, perhaps with
more one-on-one actual fighting than the
multiple one-versus-many scenes we were
subjected to.
At the end, when the anticipated one-onone fight does take place amidst a contrived
fire and fury climax, the over-indulgent use
of style makes for a draggy, uninspiring and
unsatisfying end. Nevertheless, Rise of the
Legend is a timely revisit with a refreshing
new story that expands on the legend that
is Wong Fei-Hung.
S P O RT S 3 1
United in party mood after
fourth consecutive win
Finally beginning to look like themselves after sluggish start under Van Gaal
LONDON: Manchester United
are finally beginning to look like
their old selves at least in terms of
results after a sluggish start to life
under new coach Louis van Gaal.
They were indebted to keeper
David de Gea as they survived
some late scares to beat Stoke
City 2-1 at home on Tuesday and
complete a fourth consecutive
win in the Premier League to cement their place in the top four.
There is still a long way to go
before United can even contemplate a title challenge, but progress is being made after last season’s dismal post-Alex Ferguson
Stoke’s Phillip Bardsley (left) challenging Fellaini (second left) during the Manchester
spiral into mediocrity.
United vs Stoke City match at Old Trafford on Tuesday. Photo by Reuters
Marouane Fellaini, an expensive misfit last season, scored
United’s opening goal — his sec- to 25 points from 14 games.
surgence and Van Gaal’s usually
ond of the season — and Juan MaEven the absence of Wayne gruff demeanour was replaced by
ta’s free kick earned the victory Rooney and Angel di Maria through something more jovial as he chatthat put fourth placed United on injury did not disrupt United’s re- ted after the game.
“I am very happy with the result, it’s the fourth victory in a
row which is also important and
tomorrow is our Christmas party,
and it’s good we are having one.”
But reverting to type, the
Dutchman said he had been disappointed by the first half display.
“I am always more interested
in our performance rather than
the result, I’m a very crazy coach!”
he said.
“I want a better performance.
Against Hull City [whom United
beat 3-0 last Saturday] I liked our
performance but today (Tuesday)
it could have been better.”
United have a home game
against third-placed Southampton next Monday and a fifth successive win would fuel the optimism that is slowly returning
to the 20-times champions. —
Reuters
Gerrard coy over Liverpool contract talks
LEICESTER: Liverpool captain Steven Gerrard refused to be drawn on
his future at the club after scoring in
his side’s 3-1 Premier League success at Leicester City on Tuesday.
The 34-year-old midfielder was
restored to the starting XI after starting last Saturday’s 1-0 win over Stoke
City on the bench and responded by
scoring the crucial second goal as
Liverpool came from behind to win.
Liverpool manager Brendan
Rodgers revealed before the game
that Gerrard has been offered a
new contract, but when asked if
he was ready to put pen to paper,
Gerrard told BT Sport: “I’ll decide
when I’m ready.
“There’s nothing to say on the
contract at the moment. When there
is, the fans have known me long
enough, I’ll come out and say what
I need to say.”
Liverpool fell behind in the 22nd
minute at the King Power Stadium
when Leonardo Ulloa’s shot hit the
post and ricocheted into the net
off visiting goalkeeper Simon Mi-
Real in likely Cup clash with Atletico
MADRID: Holders Real Madrid set up a probable King’s Cup last 16
clash against city rivals Atletico when a second-string side completed
a crushing 9-1 aggregate win over third-tier minnows Cornella on
Tuesday. The last-32, second leg match at the Bernabeu pitted the
world’s richest club by income, with annual revenues of more than
€600 million euros (RM2.55 billion), against a club with a budget of
€1 million a season who were promoted to Spain’s regional Segunda
B for the first time in 2013/14.
Real won the first leg, played at Espanyol’s stadium in Barcelona
at the end of October, 4-1 and a James Rodriguez double, strikes from
Isco and Jese and an own goal from Cornella’s Borja Lopez secured
a 5-0 success in the return.
The victory, with top scorer Cristiano Ronaldo watching from the
stands, extended Real’s club-record winning streak to 17 matches
stretching back to a 2-1 La Liga reverse at home to Atletico in September.
Cornella, whose part-timers include a dentist and a schoolteacher, could have taken a surprise lead in the 14th minute when Alvaro
Arbeloa, captaining Real for the first time, felled Xavi Boniquet in
the area and conceded a penalty.
Boniquet picked himself to take the spot kick but fired wildly over
the bar and Rodriguez made it 1-0 to the home side moments later.
Substitute Jese, returning after knee surgery, completed the rout 13
minutes from time. . — Reuters
gnolet’s back for a cruel own goal.
But Adam Lallana equalised almost immediately and Gerrard put
Liverpool in front nine minutes into
the second half, steering home his
first goal since September after Raheem Sterling’s cross was partially
cleared.
After Leicester centre back Wes
Morgan had been sent off for hauling back Rickie Lambert, Jordan
Henderson made the game safe in
the 83rd minute.
When pressed on his future, Ger-
rard again refused to answer, focusing instead on his team’s improved
form since their 2-2 Champions
League draw at Bulgarian side Ludogorets Razgrad last week.
“I think the last three performances have been superb,” he said.
“We need to keep trying to improve
on that. The reason I don’t want to
answer your question tonight (Tuesday night) is because it’s not about
me; it’s about a great team performance and a great three points.”
— AFP
Clock ticking on Beckham’s
struggle for Miami stadium — MLS
BY S I M O N E VANS
MIAMI: David Beckham’s (pic) plans
to bring a Major League Soccer team
to Miami are showing no signs of
progress and league commissioner Don Garber said on Tuesday the
process “can’t go on forever”. Beckham announced in February that he
would exercise his option to become
the owner of a new MLS franchise
in Miami but he and his partners
have been unable to find political
support for their stadium plans.
“Certainly this can’t go on forever,” Garber, who declined to discuss
whether Beckham’s option could
be switched to another city, told
Reuters.
“It is a private discussion and relationship as it relates to the specific
option and I am not going to get into
those details, but by all means this is
IN BRIEF
No pre-deal with
Real Madrid for winger
Reus — Dortmund CEO
BERLIN: Borussia Dortmund
have no agreement in place
with Real Madrid that gives
the Spanish club first option to
buy winger Marco Reus, chief
executive officer Hans-Joachim
Watzke said yesterday. Spanish media have reported that
Real had an agreement with
Dortmund to get first crack at
the highly rated Germany international, who is out for the
remainder of the year with an
ankle ligament injury. The attacking midfielder’s contract
with Dortmund runs to 2017
but he has a €25 million euros (RM106 million) buyout
clause, a fact that was revealed
by long-time admirers Bayern
Munich. — Reuters
Bulgarian defender
gets 10-match ban for
referee attack
SOFIA: The Bulgarian Football
Union said it has banned Lokomotiv Plovdiv defender Diyan
Moldovanov for 10 matches for
trying to hit a referee with a bottle last Saturday. The 29-yearold centre back was also fined
US$5,000 (RM17,200)following the incident, which occurred after his team’s 1-1 draw
against Cherno More Varna in
the league. Moldovanov was
shown a straight red card after
rushing onto the field after the
final whistle, angrily confronting referee Stanislav Stavrov.
Moldovanov threw a bottle at
the official and verbally abused
him while his teammates tried
to calm him down. — Reuters
Blatter denies
responsibility for Qatar
workers’ welfare
COLOMBO: FIFA is not responsible for the working conditions of labourers helping to
build stadiums for the 2022
World Cup finals in Qatar, the
president of world football’s
governing body Sepp Blatter
said on Tuesday. “In Qatar they
are working in big companies
from Germany, from France,
from England and from other
European countries and they
are responsible for their workers and not FIFA,” Blatter told
reporters on a visit to Sri Lanka. Qatar has come under increasing scrutiny over its labour
practices since FIFA awarded
it the right to host the World
Cup. — Reuters
Levski Sofia fined for
racist monkey chants
not something that can last forever.”
The MLS board of governors will
hear a report from the league’s expansion committee on Saturday and
Garber indicated that they would
aim to make some decisions on
new franchises in the first half of
2015. — Reuters
SOFIA: Levski Sofia, one of
Bulgaria’s biggest football
clubs, has been fined €19,200
(RM81,869) for racist chants
by its supporters, the Bulgarian Football Union said. Fans
made monkey noises directed
at opponents Litex Lovech’s
French-born Senegalese defender Jackson Mendy during
last weekend’s league game at
home that ended 2-2. “I did
not hear the fans, it does not
matter to me,” Mendy said afterwards. — AFP
3 2 S P O RT S
Emotional farewell for
Australia’s Hughes
A lone cricket bat rested against the coffin at a packed service
BY MA D EL EI N E COOR EY
MACKSVILLE: Cricketing greats
bid an emotional farewell to Phillip
Hughes at a funeral service in his
home town yesterday, as Australia
stopped to remember the batsman
whose death from a freak injury
sent shockwaves through the sport.
A lone cricket bat rested against
the coffin at a packed service in his
former high school hall in Macksville on the New South Wales coast
in front of his heartbroken parents,
family and friends and a shattered
Australian Test team.
“Taken from the game, his family
and loved ones at the age of just 25,
Tiger Woods
looks to his
youth for swing
answers
BY L A RRY FI N E
WINDERMERE, Florida: Tiger
Woods pronounced himself
fit for a return to competitive
golf while acknowledging the
ravages of age on Tuesday as
he prepared to tee it up for the
first time in nearly four months
at the Hero World Challenge
tournament.
Having not played since the
PGA Championship in August,
the 38-year-old American returns to action today near his
Florida home at the at Isleworth Golf and Country Club
in a tournament benefiting his
foundation.
All eyes will be on a creaky
back that limited Woods to just
eight events last season where
he missed the cut twice and
withdrew from two others.
“I’m older,” Woods said at a
news conference on Tuesday.
“Father Time is undefeated. We
all eventually are losing some of
the things we are able to do when
we were younger.” — Reuters
left a mark on our game that needs
no embellishment,” tearful captain
Michael Clarke told the funeral. “I
don’t know about you but I keep
looking for him.”
Hughes died from bleeding on
the brain last Thursday after being
hit on the base of the skull by a rising ball during a domestic match.
His tragic death stunned Australia and prompted a rescheduling
of the upcoming India Test series,
while fans around the world placed
bats outside their front doors as a
mark of respect.
Clarke said he walked to the
middle of the SCG last Thursday
night: “Those same blades of grass
beneath my feet where he and I
and so many of his mates here today have built partnerships, taken
chances and lived out the dreams
we painted in our heads as boys.
I stood there at the wicket, I knelt
down and touched the grass, I
swear he was with me ... Telling
me we just needed to dig in and
get through to tea,” he said.
Clarke said the tributes offered
from sports stars and fans across
the globe had sustained him, from a
little girl holding a candle in tribute,
to masters of the game such as Sachin Tendulkar expressing sorrow.
“This is what makes our game
the greatest game in the world. We
must dig in and get through to tea.
And we must play on,” he added.
“So rest in peace my little brother.
I will see you out in the middle.”
Cricket Australia chief executive
James Sutherland said over the past
week the nation and the sporting
world had reeled in shock. “Yet even
within that profound sense of loss the
spirit of cricket has shone through
the darkness,” he told the gathering.
Hughes’ parents Greg and Virginia and siblings invited the whole
town to the service at Macksville
High School, where about 1,000
crammed into the hall and hundreds more watched on screens
in overflow areas. — AFP
Serena’s Slammers lose again
as Aces continue to dominate
BY JOHN O’BRI E N
SINGAPORE: Serena Williams returned to the scene of her WTA Finals win but could not prevent her
Singapore Slammers team slumping to a fourth straight defeat in the
inaugural International Premier
Tennis League (IPTL) on Tuesday.
The world No 1 is the highest-profile player participating in
the four-city mixed team event at
Singapore’s Indoor Stadium this
week but it was the unbeaten Delhi-based Indian Aces who continued to dominate the early proceedings.
The Aces were on court first as
a sparse crowd witnessed the form
side of the tournament ease to a
30-11 victory over the UAE Royals
in the five one-set format tie that is
decided on games won rather than
overall set victories.
Playing in front of a packed arena
in the night session, Williams won
her match against Belgian Kirsten
Flipkens but lost the mixed doubles,
partnering Australia’s Nick Kyrgios,
as her team fell 29-21 to the Manila
Mavericks.
The tournament kicked off in
Manila last Friday and will proceed
mala 3-0 in the third pool C match,
played late Tuesday, according to
the tournament’s website www.
wwt2014squash.com.
Malaysia had earlier defeated Canada and Mexico by the same scores.
In the match against Guatemala,
Low Wee Wern put Malaysia ahead
by defeating Pamela Anckermann
Teenager Cahill stuns
Ding at UK Snooker
Championship
LONDON: Two-time former
champion Ding Junhui of China
crashed out of the UK Championship after losing 6-5 to
18-year-old James Cahill in the
early hours of yesterday morning. Cahill, the world No 100,
cruised into a 5-1 lead in the
third-round match at York’s Barbican Centre, only for Ding to
fight back and take the contest
to a deciding frame. The world
No 3, UK champion in 2005 and
2009, had chances to complete
an improbable comeback, but
a mistake enabled Cahill to
pounce and book a spot in the
last 16. — AFP
China official in corrupt
World Student Games
deals
BEIJING: The security chief of the
Chinese boom town of Shenzhen
allegedly funnelled construction
projects for the 2011 World Student Games worth hundreds of
millions of dollars through his
family, state-run media reported yesterday. More than half of
the 14 billion yuan (RM7.84 billion) spent on the 2011 Summer Universiade went on new
sports facilities, and Jiang was
responsible for projects totalling
two billion yuan, the paper said.
Jiang subcontracted the government contracts through a “bogus
company” owned by his wife,
who would then receive a commission, it added. His wife and
daughter are also under investigation, the paper said. — AFP
Australia bars China’s
Sun after doping ban
Williams recovering after chasing a return from Manila Mavericks’ Kirsten Flipkens of
Belgium during their women’s singles match at the IPTL in Singapore Tuesday. Photo
by Reuters
to Delhi before concluding in Dubai on Dec 13, the event mirroring
its India-based cricket counterpart
by adding bright lights, glitz, glamour and audience participation to
a fast-paced format.
Additional touches include a
20-second serve clock, a “Happiness Power Point” joker that scores
double and can be played once per
set, no advantages, no lets, coaching
timeouts and a five-minute shootout if a match is tied at 5-5.
Ridiculed by some observers
as little more than an extravagant
series of exhibition matches, Williams jumped to the defence of the
tournament, saying it was an ideal
mix of fun and competition.
“I came into this thinking it was
going to be fun and a blast but not
good preparation [for the new season]. However, after I played in
Manila I realised this is a great way
to prepare for the pre-season,” Williams told reporters. — Reuters
Malaysia enters last 8 of Women’s World Team Squash championship
KUALA LUMPUR: Malaysia moved
into the last-eight of the 2014 Women’s World Team Squash Championship after securing their third
consecutive win at the Mark Sachvie
Squash Centre in Canada.
The squad led by world No 1
Datuk Nicol David extended their
winning streak by defeating Guate-
IN BRIEF
with a score of 11-6, 11-3, 11-5 before Delia Arnold secured the second
point by beating Winifer Bonilla 114, 11-3, 11-4 while Zulhijjah Azan
wrapped-up the match by disposing
Nicolle Anckermann 11-4, 11-2, 11-4.
Malaysia was to square off
against the United States who are
the sixth seed, in their final prelimi-
nary match to determine the group
winner, later yesterday.
The United States also moved
into the last-eight after securing
their third straight victory with a
3-0 win over Canada.
They had earlier defeated Guatemala and Mexico by the same
score.— Bernama
SYDNEY: Chinese swimming
sensation Sun Yang has been
barred from training in Australia and his coach plans to sever
ties with the Olympic champion
after he was banned for doping,
it was reported yesterday. The
double Olympic champion and
1,500 metres world record-holder served a three-month penalty after testing positive for the
banned stimulant trimetazidine
in May. He completed his ban
on Aug 17. Swimming Australia high performance boss Michael Scott met Sun’s Australian coach Denis Cotterell and
advised him the star swimmer
was no longer welcome to train
in Australia. — AFP
Canadian hockey legend
Beliveau dies at 83
MONTREAL: Canadian ice
hockey legend Jean Beliveau
died at his Quebec home on
Tuesday at the age of 83 following a long illness, his former club the Montreal Canadiens have announced. The
Quebec native from Trois-Rivieres played 20 seasons with
the Canadiens between 1950
and 1971, winning 10 Stanley
Cups and being nominated
to the Hockey Hall of Fame in
1972. Only his former teammate Henri Richard has won
more Stanley Cups, as a player,
in the history of the game with
11. — AFP

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