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FBM KLCI 1741.48
7.69
KLCI FUTURES 1731.50.00
12.00
STI 3345.00
4.84
RM/USD 3.6950
CPO RM2320.00
26.00
OIL US$63.98
0.18
GOLD US$1182.10
PP 9974/08/2013 (032820)
PENINSULAR MALAYSIA RM1.60 (INCLUSIVE OF 6% GST)
FRIDAY JUNE 5, 2015 ISSUE 1975/2015
FINANCIAL
DAILY
MAKE
BETTER
DECISIONS
Singaporean
billionaire invests in
theedgeproperty.com
PA G E 2
www.theedgemarkets.com
5 HOME BUSINESS
Sembcorp confirms
in early talks to
acquire 1MDB’s
power assets
6 HOME BUSINESS
Daim Zainuddin’s
son being sued
14 H O M E
Najib and Rosmah
can sleep well, share
the same dream
20 F O C U S
Spoilt for choice
by
u
o
y
o
t
t
h
g
u
o
r
b
s
i
y
p
o
c
l
a
t
This digi
2.50
FBM KLCI 1741.48
7.69
KLCI FUTURES 1731.50.00
12.00
STI 3345.00
4.84
RM/USD 3.6950
CPO RM2320.00
26.00
OIL US$63.98
0.18
GOLD US$1182.10
PP 9974/08/2013 (032820)
PENINSULAR MALAYSIA RM1.60 (INCLUSIVE OF 6% GST)
FRIDAY JUNE 5, 2015 ISSUE 1975/2015
FINANCIAL
DAILY
MAKE
BETTER
DECISIONS
5 HOME BUSINESS
Sembcorp confirms
in early talks to
acquire 1MDB’s
power assets
6 HOME BUSINESS
Daim Zainuddin’s
son being sued
14 H O M E
Najib and Rosmah
can sleep well, share
the same dream
20 F O C U S
Spoilt for choice
Singaporean
billionaire invests in
theedgeproperty.com
PA G E 2
2.50
2
FR I DAY JU N E 5 , 2 0 1 5 • TH EEDGE FI N AN C I AL DAI LY
For breaking news updates go to
ON EDGE T V
Tesco hires HSBC for sale of S Korean arm
BY DENNY THO M AS & P RAK AS H
CHAKRAVA RTI
Fitch ‘satisfied’
after meeting
with Arul
Kanda, Finance
Ministry
AirAsia X
directors
forego
RM435,000
in fees
HONG KONG: Troubled British
retailer Tesco has hired HSBC to
explore a sale of its South Korean
operations, valued at about US$6
billion (RM2.26 billion), people familiar with the matter told Reuters
yesterday.
The appointment of an adviser is
Tesco’s first concrete step towards
a sale of some Asian assets, which
analysts think could be its best bet
as it looks to cut debt and fund a
turnaround plan at home.
The supermarket group, whose
credit rating was cut to “junk” status
by Moody’s and Standard & Poor’s
in January, is battling to recover
from an accounting scandal and reverse market share losses in Britain
to discount chains Aldi and Lidl.
South Korea is its largest business
outside Britain, with more than 400
stores, 500 franchise stores and more
than six million customers a week.
The division has attracted several
bid enquiries in the past, which has
encouraged Tesco to explore a formal sale process, the sources said.
However, some analysts questioned whether it would get a good
price.
“It is a forced sell, more of a distressed situation,” Cantor analyst
Mike Dennis said.
“Tesco has considerable debts
and pension deficits to deal with,
let alone a wish list of things to do
to help the UK, but they are significantly short of cash and selling
Peter Lim invests in
theedgeproperty.com
This represents his first foray into the technology sector
The Edge Communications Sdn Bhd
(266980-X)
Level 3, Menara KLK, No 1 Jalan PJU 7/6,
Mutiara Damansara, 47810 Petaling Jaya,
Selangor, Malaysia
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
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 Editor Evelyn Chan
Art Director Sharon Khoh
Design Team Cheryl Loh,
Valerie Chin, Aaron Boudville,
Aminullah Abdul Karim,
Yong Yik Sheng, Tun Mohd Zafian
Mohd Za’abah
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
Fax: (03) 7721 8288
Chief Marketing Officer
Sharon Teh (012) 313 9056
General Manager, Digital Media
Kingston Low (012) 278 5540
Senior Sales Managers
Geetha Perumal (016) 250 8640
Fong Lai Kuan (012) 386 2831
Shereen Wong (016) 233 7388
Peter Hoe (019) 221 5351
Gregory Thu (012) 376 0614
Ad-Traffic Manager
Vigneswary Krishnan (03) 7721 8005
Ad Traffic Asst Manager
Roger Lee (03) 7721 8004
Operations
To order copy
Tel: 03-7721 8034 / 8033
Fax: 03-7721 8282
KUALA LUMPUR: Singaporean
billionaire investor Peter Lim has
acquired a 20% stake in The Edge
Media Group’s new property portal, theedgeproperty.com, for an
undisclosed consideration.
The investment represents Lim’s
first foray into the technology sector. Lim’s major investments, besides the football club Valencia,
include Thompson Hospital, FJ
Benjamin, and McLaren.
The Edge Media Group is owned
by Datuk Tong Kooi Ong, who
helms it as the executive chairman. Apart from the property portal, the group publishes The Edge
Singapore, The Edge Malaysia, The
Edge Review, The Edge Financial
Daily and theedgemarkets.com.
“This unique Internet technology
enables and helps existing shareholders strengthen their business”,
said Lim in a statement issued by
The Edge Media Group yesterday.
“The business model is not disruptive and it is aligned to the interests of the property agents, developers, banks and public users.
Growth prospects are good because
it’s very scalable and revenue generation is immediate. The fundamental
strength in Tong’s theedgeproperty.
com is it wins by enabling existing
stakeholders to win,” he added.
Tong’s experience is the driving
force behind this unique business
model. Starting out as a financial
analyst, he built a successful universal bank in the 1990s.
A pioneering technopreneur, Tong
was the first to introduce an integrated online, mobile, equity trading and
e-commerce banking platform in
the 1990s. As a property developer,
he led Phileo Land in the 1990s and
then Sunrise Bhd in the 2000s.
theedgeproperty.com, which will
have its official launch event in Singapore on July 25, is now live. It successfully debuted in Malaysia on May 7.
The Edge Media Group said
there are no comparable property platforms around in terms of
comprehensiveness.
“Besides listings, it has a full
range of analytical tools including
indicative valuations, past transactions, rental rates, trends, hotspots
and new project launches,” it said.
As identified by Lim, the fully
inclusive property platform’s objective is to assist all the industry
players — from public buyers and
sellers to developers, banks and
other service providers.
It has partnered 10 top developers
in Malaysia and discussions are in
progress in Singapore for the same.
“Offering mortgages within the
platform will be a central feature,
where the full experience of buying
a property — from searching for listings, to contacting the right agents, to
finding the right locations and price,
to evaluating comparable properties
LONDON: Volatile currency markets could hamper Malaysian mortgage lender Cagamas Bhd’s plans
for its first foreign-currency sukuk,
the state-backed firm’s chief executive officer (CEO) Chung Chee
Leong said.
In November, Cagamas set up
a US$2.5 billion programme to issue multi-currency sukuk, or syariah-compliant bonds, in an effort
to broaden its investor base and
after issuing conventional bonds
denominated in yuan, Hong Kong
dollar and US dollar in 2014.
The lender provides liquidity to
primary lenders of housing loans in
Malaysia to promote home ownerships by issuing bonds and sukuk
to make those purchases.
“At this moment, [the US] dollar
is just not attractive,” said Chung in
an interview on the sidelines of an
investment conference in London,
adding that a US-dollar issue is still
the most likely option.
IN BRIEF
Merkel says EU may need
to consider treaty change
to keep UK in — BBC
LONDON: European Union
leaders may have to consider
changing the bloc’s treaties in
order to make the reforms Britain is seeking ahead of an in-out
referendum, German Chancellor Angela Merkel was quoted as
saying yesterday. Prime Minister
David Cameron has promised
to renegotiate the ties between
London and Brussels, before
holding a vote on Britain’s membership by the end of 2017. He
said he believes treaty change
will be necessary to achieve
those reforms. — Reuters
Vietnam’s lawmakers
urge green light for
huge hub airport
Lim says growth prospects are good
because the business model is very
scalable and revenue generation is
immediate. Photo by Reuters
that are available and transacted, to
what price to make an offer and securing a mortgage —is seamlessly
and conveniently integrated,” it said.
“For the first time, property buyers,
sellers and renters will have all the information that is required in making
a better decision, for free,” it added.
“If none of the existing listings meet their complete criteria,
whether it’s the product, location or
the price they are prepared to pay,
simply use the property watch list
and they will be informed once a
new listing that meets their criteria
becomes available.”
Check out www.theedgeproperty.
com or download the app for more
information.
Currency moves hamper Cagamas’ sukuk issue
BY KAR IN S TRO HEC K E R
South Korea or the Asian shopping
malls would be the only two major
assets that are going to get that type
of a valuation.”
Tesco shares rose as much as
1% on the news, bucking a 1% drop
in Britain’s benchmark FTSE-100
Index.
Global buyout firms KKR & Co,
Carlyle Group, CVC Partners and
TPG Capital Management as well as
Asian buyout firms including MBK
Partners, are likely bidders for the
business, the sources said. — Reuters
“At this moment, there are not
many currencies that are attractive
for us to issue in. But rates move all
the time, and when the time comes,
we will issue,” Chung said, adding
that he hopes the issue could still
come this year.
After the government, Cagamas
is the second-largest issuer of debt
instruments in Malaysia, and about
52% of its current portfolio is Islamic.
Chung said Cagamas is not
working on opening subsidiaries
in other countries. — Reuters
HANOI: Vietnamese lawmakers called for speedy approval
of a US$15.8 billion (RM58.62
billion) airport yesterday to get
construction started and address
chronic capacity shortages in
one of the world’s fastest-growing aviation markets. The Long
Thanh International Airport outside the economic hub Ho Chi
Minh City would be Vietnam’s
most ambitious infrastructure
project yet, and aims to eventually handle 100 million passengers and five billion tonnes
of goods a year. — Reuters
Indonesia sees Batang
power plant starting
in late July
JAKARTA: Indonesia expects
work on the long-delayed Batang power plant to begin by
the third week of July, Coordinating Minister for Economic
Affairs Sofyan Djalil said yesterday, two days after saying
he hoped it would start this
month. Work was scheduled
to begin on the 2,000mw coalfired station in 2012, and has
been held up by local opposition. — Bloomberg
Wal-Mart workers can
wear denim in bid to
improve service
BOSTON: Wal-Mart Stores Inc
is updating its dress code to let
store workers wear denim, seeking to appease employees who’ve
complained about the required
wardrobe. Beginning July 1, US
store employees will be able to
wear black- or khaki-coloured
denim pants. — Bloomberg
HOME BUSINESS 3
F R I DAY J U N E 5 , 20 1 5 • T HEED G E FINA NCIA L DA ILY
Explaining 1MDB’s
numbers line by line
We explain why sovereign wealth fund is in financial distress
BY THE ED GE FI NA NCIAL DAILY
KUALA LUMPUR: The figures on
how 1Malaysia Development Bhd
(1MDB) had spent the RM42 billion that it borrowed till March 31,
2014, given by chief executive officer (CEO) Arul Kanda Kandasamy
on Wednesday were just a pure accounting breakdown of expenses.
They do not by themselves explain why 1MDB is in the financial
distress that it is in today — being
on the verge of collapsing under
the heavy debt burden, meaning its
income cannot meet its expenses.
It had a net cash flow deficit of
RM2.6 billion in financial year 2014
(FY14), and continues to have to
borrow to service old debts.
The reasons why 1MDB is in financial distress are:
i) It overpaid for the power assets by RM3.29 billion which is the
amount treated as goodwill by its
auditors a year after purchase
ii) It overpaid by around RM500
million for the Penang land going
by past transactions before its purchase in May, 2013
iii) It overpaid Goldman Sachs
in fees for the three US dollar bond
issues totalling US$6.5 billion, and
it overpaid the interest rate for the
bonds and other loans resulting in
RM4.5 billion in financing cost or
10% of its debts
iv) It entered into questionable
illiquid investments (Brazen Sky
Ltd and 1MDB GIL [1MDB Global
Investment Ltd]) totalling RM11.2
billion whose real value are in doubt
v) It entered into a lop-sided
agreement that required it to hand
over RM4.2 billion to the Abu Dhabi-based Aabar Investments for
co-guaranteeing a bond
Why all the above happened
must be investigated by Bank Negara Malaysia, the police and the
THE EDGE GRAPHICS
ARUL KANDA SAYS:
WHAT THE RM42 BILLION THE FACTS
(RM BILLION)
WAS USED FOR
Powertek
Kuala Langat power plant
Jimah
Inherited debt
Total cost of IPPs
8.5
2.3
1.2
6
18
2
TRX land
Bandar Malaysia land
Air Itam Penang land
Total land costs
0.2
0.4
1.1
1.7
3
Brazen Sky
Aabar Investment deposits
GIL funds
Total investment cost
1
4
5
SAYS:
1 1MDB overpaid for the power assets by RM3.30 billion (RM1.829 billion for
Powertek, RM787 million for KLPP and RM689 million for Jimah) which is
the amount treated as goodwill by its auditors a year after purchase.
2 1MDB benefited from the injection of valuable land at a cheap price by the
government for Bandar Malaysia and the Tun Razak Exchange in 2012. The
parcels of land were sold to 1MDB for RM600 million. In FY 2013, the land
was revalued at RM2.735 billion — giving 1MDB a handsome paper profit
of RM2.135 billion. But it overpaid by around RM400 million for the Penang
land going by past transactions before its purchase in May 2013.
6.1
4.2
5.1
15.4
3 1MDB entered into questionable illiquid investments (Brazen Sky and GIL)
Cost of finance & working capital
Foreign exchange cost
Taxes paid
Financial expenditure
4.5
0.9
0.4
5.8
4 1MDB overpaid Goldman Sachs in fees for the three US dollar bond issues
Surplus cash
0.9
5 The net effect is that the cost of paying its debts was so much more than its
TOTAL OVERALL
Malaysian Anti-Corruption Commission. Was it incompetence or
fraud, or both?
Arul’s breakdown also showed
how the sovereign wealth fund benefited from the injection of valuable land at a cheap price by the
totalling RM11.2 billion whose real value called UNITS are in doubt. It entered
into a lopsided agreement that required it to hand over RM4.2 billion to the
Abu Dhabi-based Aabar Investments for co-guaranteeing a bond.
totalling US$6.5 billion and it overpaid the interest rate for the bonds and
other loans, resulting in RM4.5 billion in financing cost or nearly 11% of its
debts since 2009. Investment banking fees for Goldman Sachs alone was
about US$670 million.
41.8
government for the development
of Bandar Malaysia and the Tun
Razak Exchange in 2012.
The parcels of land were sold to
1MDB for RM600 million.
In FY13, the land was revalued at
RM2.735 billion — giving 1MDB a
operating income, causing its cash position to plunge by RM3.4 billion from
RM6.17 billion to RM2.76 billion in FY 2014.
handsome paper profit of RM2.135
billion. In FY 2014, it again revalued the land upward by another
RM896 million.
The land today is worth much
more, and this is proof that the
government had already saved
1MDB from its financial mess with
the injection of valuable land at a
cheap price.
But the months ahead will show
that this is not enough, and a far
bigger bailout of 1MDB is needed to prevent it from going under.
Credit Suisse: BNM may allow orderly ringgit depreciation
BY MEENA L A KSHA NA
KUALA LUMPUR: Bank Negara
Malaysia (BNM) may allow an orderly depreciation of the ringgit
rather than cutting interest rates
to cap volatility and sustain the
country’s economy, according to
Credit Suisse.
Credit Suisse analyst Santitarn
Sathirathai (pic) said BNM has been
mindful of the ringgit’s depreciation
against the US dollar. However, he
said Credit Suisse believed BNM is
more keen to minimise the foreign
exchange (forex) rate volatility than
curbing the currency’s weakness.
“In Indonesia and Malaysia,
the currencies have already come
under considerable pressure, de-
preciating 5% to 7% in both cases
against the US dollar, and hence
both central banks came out to
express concerns over forex.
“However, we think the central
banks’ move was more to cap excessive volatility than to stop depreciation altogether. We reckon Bank Negara Malaysia
will respond to the likely
slowdown by allowing for
weaker ringgit rather than
cutting rates,” he said in a
research note yesterday.
The ringgit weakened to
3.7073 against the US dollar yesterday afternoon,
but regained
some losses to close
at 3.685. Bloomberg data showed
that over the last one year, the ringgit weakened from its strongest
level at 3.1415 on Aug 28, 2014.
The ringgit had weakened in
tandem with lower prices of crude
oil, which constitutes a crucial portion of the Malaysian economy. However, the ringgit
also depreciated against
a strengthening of the
US dollar in anticipation
of US interest rate hikes
this year.
In its note yesterday,
Credit Suisse has a “neutral” view on the ringgit and
forecasts that the
currency will
hit 3.75 against
the greenback in three months, but
will settle at 3.7 in 12 months.
Credit Suisse also predicts that
Malaysia’s gross domestic product
(GDP) will likely take a hit from
major fiscal drag from the implementation of the goods and service
tax (GST) and further cutback in
government spending.
“We think 2015 GDP growth will
print 4.4%, lower than the government’s target of 4.5%-5.5%,” said
Santitarn.
He said Malaysia was among five
Asian countries that were likely to
favour an orderly depreciation in
their currencies to ensure exports
remained competitive amid domestic demand headwinds.
The list of countries included
South Korea, Indonesia, Taiwan
and Thailand.
“Negative terms of trade shock
in Malaysia and Indonesia, and
serious competitiveness issues
in Thailand could provide some
economic justifications for these
currencies to trade weaker on an
inflation-adjusted, trade-weighted basis.
“Reliance on exports should
increase, as domestic demand
recovery faces some major headwinds. Elevated household debt
should cap consumer spending
strength in Korea, Malaysia, and
Thailand. Subsidy cuts would
weigh on consumer and business
purchasing power in Indonesia
and Thailand,” he said.
4 HOME BUSINESS
Hap Seng sees FY15
operating profit
growing 20%
Target in line with earnings growth over past five years
BY L EVI N A L I M
KUALA LUMPUR: Hap Seng Consolidated Bhd is expecting its operating
profit to grow 20% in the financial
year ending December 2015 (FY15).
“We are growing all our businesses ... which over the last five
years have seen almost 20% growth
in operating profit every year. So,
we should be able to achieve it this
year [as well],” its managing director
Datuk Edward Lee Ming Foo told
reporters after the group’s annual
general meeting yesterday.
He said the property division will
be a strong “locomotive” that will
drive the company’s revenue growth
moving forward, as its properties are
located in prime locations.
“We don’t see any problems
catching up with our performance
last year,” he said, adding that there
are at least two property launches
in the pipeline in the Klang Valley
and five others in Sabah.
Hap Seng’s (fundamental: 1.3;
valuation: 2.1) property segment
contributed 24.7% (RM932.1 million) to the group’s revenue in FY14,
compared with 14.8% (RM517.7
million) in FY13.
In its first quarter ended March
(1QFY15), revenue for the property
segment rose 64.6% to RM288.69
million from RM175.39 million in
1QFY14. Net profit, however, fell
Lee: ‘We don’t see any problems catching
up with our performance last year.’
Photo by Kenny Yap
10.6% to RM122.73 million from
RM137.24 million in the previous
corresponding quarter. This is due
to the sale of some non-strategic
properties in 1QFY14.
“We have about 1,900 acres
(768.90ha) of land bank. Ongoing
property projects have a gross development value (GDV) of RM1 billion, while those in the planning
and development stage amount
to RM3 billion over the next three
years,” he said, adding that 80% to
90% of the group’s planned projects
are residential properties.
Lee said Hap Seng is aggressively
looking for land bank in the Klang
Valley as only 160 acres of its total
land bank are located in the area,
with the remaining 91% in Sabah.
“We are confident this year will
be better because we have a lot of
property developments in Sabah as
well,” said Lee, adding that its plantation land, also mostly in Sabah, is
undervalued as it is still being held
at historical costs.
Lee, however, assured that Hap
Seng will not neglect the growth of
its plantations, as it is keen to expand
its plantation business.
Hap Seng, which is one of the
primary authorised dealers of
Mercedes-Benz vehicles, also saw
a turnaround in its automotive segment with an operating profit of
RM10.5 million in FY14 from an operating loss of RM18.1 million FY13.
Lee said this was due to improved
sales, which were boosted by the
increasing popularity of Mercedes
vehicles among the younger generation. Mercedes-Benz Malaysia
said it saw its best monthly sales
ever in May with 1,143 units, more
than double the 544 units a year ago.
Hap Seng’s counter, which fell to
a low of RM3.67 on Feb 24, has been
on an upward trend lately. It closed
up three sen at RM5.06 yesterday,
up 37.9% from Feb 24, for a market
value of RM11.33 billion.
Directors of loss-making AirAsia X
to forfeit RM434,658 in fees
BY GHO C H EE Y UAN
SEPANG: Nine directors of AirAsia
X Bhd (AAX), which now aims to return to the black in the second half
of this year, have agreed to forfeit
their director’s fees amounting to
RM434,658 for the financial year
ended December 2014 (FY14) at
its annual general meeting (AGM)
yesterday.
“I think we have to be with the
shareholders, and that’s why we
have decided to forfeit the fees,” AAX
group chief executive officer (CEO)
Datuk Kamaruddin Meranun told
reporters after the meeting.
The nine directors are Kamaruddin, Tan Sri Rafidah Aziz, Tan Sri
Tony Fernandes, Datuk Seri Kalimullah Masheerul Hassan, Lim Kian
Onn, Datuk Fam Lee Ee, Tan Sri
Asmat Kamaludin, Datuk Yusli Mohamad Yusoff and Kiyotaka Tanaka.
Meanwhile, AAX acting CEO
Benyamin Ismail said he is optimistic that the long-haul low-cost airline
will return to profit in the second half
of this year on cost reduction in the
human resources and engineering
segments through synergising the
commonality of the operations with
its sister airline AirAsia Bhd.
“We have started our integration
with AirAsia starting this year. So
far, we have integrated the human
resource department and ground
operations with AirAsia.
“The next stage [will have] the
engineering department [reducing]
at least 8% operating expenses per
year [as a goal],” said Benyamin.
For the first quarter ended March
(1QFY15), AAX saw its net loss widen to RM125.9 million from RM11.3
million in 1QFY14. Revenue for the
quarter came in at RM775.4 million, up 3.5% year-on-year, driven by
higher income from its charter, wet
leases and aircraft operating lease
income from Thai AirAsia X Co Ltd
and Indonesia AirAsia X.
This was the sixth consecutive
quarter the airline had posted a loss.
In a filing with Bursa Malaysia
yesterday, AAX (fundamental: 0.2;
valuation: 0.8) also said its 1.78 billion rights shares with free warrants
had been oversubscribed by 14.91%
or 265.03 million shares.
“Successful applicants of the
rights shares will be given warrants
on the basis of one warrant for every
two rights shares successfully subscribed,” it said.
AAX targeted the rights shares
and warrants to be listed on the
Main Market of Bursa Malaysia on
June 11.
It was reported that AAX aims
to raise RM391 million through
the rights issue priced at 22 sen per
rights share, and at an entitlement
basis of three rights shares for every
four existing AAX shares.
MOST VIEWED STORIES ON
theedgemarkets.com
Dayang Enterprise gets RM250m
job from Petronas Carigali
BY J O S H UA L IM
KUALA LUMPUR: Dayang Enterprise Holdings Bhd’s wholly-owned subsidiary Dayang
Enterprise Sdn Bhd has been
awarded a two-year contract for
the provision of facilities improvement project (FIP) by Petronas
Carigali Sdn Bhd worth approximately RM250 million.
In a filing with Bursa Malaysia yesterday, Dayang Enterprise
said the FIP contract is for Petronas Carigali’s Sarawak operations
offshore and Sabah operations
offshore.
The contract shall be performed
on a call-out basis and shall in-
clude any or all other work and
services related to modification
or upgrading, including working
under simultaneous operations,
hook-up and commissioning, and
major construction work.
The contract effectively begins
on June 8, 2015 and will expire on
June 7, 2017.
The group said the acceptance
of the contract is in its best interest, and expects it to contribute
positively towards its earnings
and net assets.
Dayang Enterprise (fundamental: 2.7; valuation: 2.1)
closed 1.22% or three sen higher
at RM2.48 for a market capitalisation of RM2.17 billion.
Sunway bags RM243.69m
commercial building contract
BY G H O C H E E Y UA N
KUALA LUMPUR: Sunway Bhd’s
subsidiary Sunway Construction
Sdn Bhd (SunCon) has bagged
a construction contract worth
RM243.69 million to construct a
commercial building in Bandar
Sunway.
yesterday, Sunway (fundamental:
1.5; valuation: 2.4) said SunCon
accepted the Letter of Award from
SA Architects Sdn Bhd for the proposed development.
The development comprises a
three-storey car park, a three-storey retail space for 46 shop units, a
four-storey office space of 228 units,
another four-storey retail space, a
block of 27-storey serviced apart-
ment comprising 318 units and five
levels of a podium car park.
SunCon is a subsidiary of Sunway Construction Group Bhd,
which in turn is a subsidiary of
Sunway.
Sunway said the project will be
divided into two zones.
“It shall commence on June
25, 2015 with completion date
for Zone 1 and Zone 2 due on
Feb 28, 2017 and March 31, 2018
respectively.
“The project is expected to contribute positively to the earnings
of Sunway from financial year
ending Dec 31, 2015,” it said.
Shares in Sunway inched
up five sen or 1.44% to close at
RM3.52 for a market capitalisation of RM6.08 billion.
Ipmuda proposes private
placement
BY S UL H I A Z MA N
KUALA LUMPUR: Building materials supplier Ipmuda Bhd — controlled by its executive chairman
Tan Sri Abu Sahid Mohamed with
a 31.23% stake — has proposed a
private share placement to raise
some RM8.91 million on an indicative offer price of RM1.23 per share.
yesterday, Ipmuda said some 98.8%
or RM8.8 million will be used to fund
its working capital requirements that
include purchases of trading stock,
raw materials as well as payment to
suppliers and other expenses.
According to Ipmuda (fundamental: 0.6l valuation: 2), the placement shares may be issued at a discount of not more than 10% of its
five-day weighted average market
price, but not lower than its par
value of RM1 each.
Ipmuda expects to issue up to
7.25 million shares, equivalent to
10% of its issued and paid-up cap-
ital, which will enlarge to 79.716
million shares.
Post-completion, the private
placement exercise will dilute Abu
Sahid’s stake to 28.38%.
In financial year ended December 2014 (FY14), Ipmuda’s net profit
trebled to RM13.87 million or 19.15
sen per share from RM4.49 million
or 6.2 sen per share in FY13, despite
a flat revenue at RM635.53 million
from RM628.07 million a year ago.
The stock has gained 77.5% from
80 sen on Jan 12 to close at RM1.42
yesterday for a market capitalisation
of RM102.9 million.
The Edge Research’s fundamental
score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers.
The valuation score determines if a
stock is attractively valued or not,
also based on historical numbers.
A score of 3 suggests strong fundamentals and attractive valuations.
HOME BUSINESS 5
‘Slight slowdown’ in bond issuance, says rating agency
BY Y I MI E YONG
KUALA LUMPUR: RAM Rating Services Bhd (RAM Ratings) expects
2015 to be a challenging year for
the Malaysian corporate bond market, with issuances to face a “slight
slowdown”.
The rating agency is projecting
the gross value of corporate bonds
to amount to between RM75 billion
and RM85 billion this year.
RAM Ratings chief executive
officer (CEO) Foo Su Yin said despite a slow start for the local bond
market in the first two months of
this year, the pace started to pick up
in March and April, although total
private debt securities issuances
were 20% lower than the same period last year.
“Our initial projection was RM85
billion to RM95 billion [in gross value]. There will be a slight slowdown
[this year], but [the market is] still
robust,” she told reporters after
RAM Holdings Bhd’s annual general meeting yesterday.
Foo said the rating agency sees
“a fair bit” of volatility due to external uncertainties, including the potential lifting of interest rates by the
US Federal Reserve (Fed), the sharp
fall in crude oil prices, the weakening ringgit and the dampening
of consumer sentiment, following
the implementation of the goods
and services tax (GST).
According to Bank Negara Malaysia, the total value of domestic
corporate bond issuances stood at
RM85 billion in 2014.
Meanwhile, Foo said the rated
market is still healthy as she doesn’t
see any major downgrades on the
companies in its rating portfolio.
She said most of the issuances
come from financial services, construction and engineering as well
as diversified holdings.
RAM Ratings economist Kristina Fong said it sees some “softening” in private consumption after
the implementation of the GST, but
1MDB probe poses
no systemic risk
RAM maintains ‘stable’ outlook for the banking sector after
taking all concerns into consideration
BY Y I MI E YONG
KUALA LUMPUR: RAM Rating Services Bhd (RAM Ratings) is maintaining its “stable” outlook for the
Malaysian banking system, saying Bank Negara Malaysia’s (BNM)
probe into 1Malaysia Development
Bhd (1MDB) does not pose a systemic risk.
“We have taken all those [concerns] into consideration. Our
banking system is still very strong
and adequately capitalised. We
don’t think there is a systemic
risk for the banking sector,” RAM
Ratings chief executive officer Foo
Soo Yin told reporters after RAM
Holdings Bhd’s annual general
meeting yesterday.
“We are still maintaining a stable outlook [for the Malaysian
banking sector],” she added.
Foo noted that the rating agency had taken into account the
ongoing 1MDB issue for all its
ratings, bond market and economic outlooks.
In its banking bulletin published on March 11, RAM Ratings
said its stress test showed that
the banking system’s gross impaired loan (GIL) ratio will remain
healthy at below 2.5% in 2015.
“This forecast considers our
estimates of the system’s loan ex-
posure to 1MDB as well as a potential uptick in GIL [ratios] of the
oil and gas, property and vulnerable household segments. As RAM
Ratings does not rate 1MDB, we
have relied on information that
has been publicly reported in arriving at our estimates,” it said.
It added that in light of banks’
sound capital buffers, it does not
expect 1MDB to pose a systemic risk to the Malaysian banking
system.
On Wednesday, BNM announced that it had started a formal enquiry into whether 1MDB
and its officers had breached central bank rules and regulations.
Sembcorp in early talks to acquire 1MDB’s assets
BY L EVI N A L I M
KUALA LUMPUR: Singapore’s
Sembcorp Industries Ltd said it
is in “preliminary discussions”
with 1Malaysia Development Bhd
(1MDB) to acquire the latter’s power assets, confirming a report by The
Edge Financial Daily yesterday that
it is looking to take over the assets.
The assets are housed under
1MDB’s wholly-owned subsidiary,
Edra Global Energy Bhd.
“Sembcorp is always looking at
various value-accretive opportunities that are aligned with our growth
strategies, and this project is one of
many that the company looks at as
part of our business development,”
said Sembcorp in an email reply to
the daily yesterday.
According to the company, discussions for Edra are currently in a
“very preliminary” stage.
“In the event that there are material developments, the company
will update the market via necessary announcements,” it said.
The Edge Financial Daily yesterday reported that Sembcorp
is keen to acquire 1MDB’s power
assets, which makes it a strong
contender to IJM Corp Bhd and
Tenaga Nasional Bhd, which had
both indicated their interest in
the same power assets.
The power assets have an enterprise value of between RM16
billion and RM18 billion.
1MDB is looking to raise funds
to address its RM42 billion worth
of debt, and the sale of the power
assets is one of the avenues it is
considering, after the Securities
Commission Malaysia rejected its
application for Edra’s listing.
Selling Edra to a Singapore government-controlled entity would,
however, raises national security
issues, as the Malaysian government may not want a foreign party
to control a big chunk of equity in
the country’s power assets.
But it is said that selling the assets to a foreign party would allay criticisms of a “bailout”, which
would be regarded as such if the
disposal is made to a local government-linked company.
the overall economy is expected to
grow 5.3%.
She said the Malaysian economy will be supported by domestic
demand this year, mainly driven by
robust private consumption and
private investment.
Commenting on a possible hike
in interest rates by the Fed, Fong
said it will have more impact on
the movement of the ringgit rather
than on Malaysia’s monetary policy.
She expects the ringgit to trade
at 3.70 against the US dollar this
year, and the overnight policy rate
to stay at 3.25%.
RAM Holdings group CEO and
executive director Datuk Seri Dr K
Govindan said the agency is looking
at Myanmar, Vietnam and Indonesia to expand its business.
He said some of these countries are in the process of setting
up their capital market, and RAM
can play a role to help set up or
provide training services.
He added that business opportunities to form joint ventures or
partnerships will come after the
capital markets have been set up.
RAM Holdings reported a profit
of RM11.24 million last year, an increase of 35.38% from RM8.3 million for 2013. Revenue was up 4.21%
at RM47.6 billion from RM45.68
million.
AXA Group eyes 100 million
customers in Asia by 2030
BY L IE W J IA T E N G
SHANGHAI: French insurance
giant AXA Group is targeting 100
million Asian customers by 2030,
up from 14 million customers
currently, in view of a larger population and economic growth, as
well as the rising middle class
spending in the region.
According to AXA Asia chief
executive officer Jean-Louis Laurent Josi, the region will continue
to be a key growth pillar for AXA
Group, as the Asian population
is expected to reach 4.9 billion
people by 2030.
“Today, gross domestic product (GDP) of the European Union
is 40% bigger than Asia. But by
2030, the European economy will
be 40% lower [than the latter], as
Asia’s GDP will grow three times
to US$38 trillion by then,” he told
reporters yesterday.
Josi went on to say that Asia’s
middle class is poised to become
the largest in the world, as 60%
of global middle-class spending
will be in the region.
AXA Asia is the largest international general insurer, and the
third-largest life insurer in the
region.
Josi also noted that Asia, despite having one of the highest
savings rates worldwide, still had
an under-penetrated life insurance market.
The emerging Asia’s life premium penetration rate was only
Josi says Asia will continue to be a
key growth pillar for AXA Group, as
the Asian population is expected to
reach 4.9 billion people by 2030.
at between 0% and 2% in 2013,
compared with between 5% and
8% in Europe, he explained.
Meanwhile, there are still huge
life protection gaps and rising
demand in the general insurance
market of the region.
“Asia is characterised as significant under-protection of dependants’ living standards due
to low social welfare and lack of
awareness,” said Josi.
Excluding Japan and Australia,
the total protection gap for Asian
countries is about US$32 trillion
(RM118.72 trillion), he said.
Josi highlighted that AXA
Group’s JVs and distribution
partners in Asia, including Affin
Bank, Bank Mandiri, Krungthai
Bank and ICBC Bank, had given
it access to more than 700 million
potential customers in the region.
Malakoff: Tanjung Bin power plant
completion ‘on track’
BY S UL H I A Z MA N
KUALA LUMPUR: Malakoff Corp
Bhd announced that the completion of its 1,000mw Tanjung Bin
Energy coal-fired power plant
(T4) is on track. This follows the
ignition of the Johor-based power
plant’s boiler on Sunday.
Malakoff chief operating officer
Habib Husin said in a statement
yesterday that T4 is expected to
start running commercially on
March 1, 2016.
“The fuel-firing of the boiler
on May 31, 2015 is a major step
towards the timely completion of
the power plant. It will pave the
way for the next equally important
milestones, such as the boiler’s
coal-firing and thereafter the power plant’s synchronisation to the
national power grid,” Habib said.
According to Malakoff ’s website, the company has 11 electricity-generation projects in Malaysia, Saudi Arabia, Algeria, Bahrain
and Australia.
These power plants have a collective effective electricity-generation capacity of 6,036mw.
In Malaysia, Malakoff ’s effective capacity stands at 5,346mw
from its six power plants here.
6 HOME BUSINESS
Daim Zainuddin’s
son being sued
Westports to replace
FGV as KLCI
constituent
BY C H E S T E R TAY
Over debt for LionGold shares
SINGAPORE: The executive deputy
chairman of LionGold Corp Ltd, one
of three companies being probed in
Singapore after their shares plunged
in October 2013, is being sued to repay money borrowed to buy stock.
Datuk Md Wira Dani Abdul Daim
owed Maybank Kim Eng Securities
Pte Ltd S$2.6 million (RM7.10 million) for LionGold shares bought in
a leveraged account, according to
a lawsuit filed in April in the Singapore High Court. The brokerage
received court approval last month
to serve the lawsuit on the scion of
former finance minister Tun Daim
Zainuddin.
Shares in LionGold, Blumont
Group Ltd and Asiasons Capital
Ltd plummeted in October 2013,
wiping US$6.9 billion (RM25.39
billion) off their market value over
three days. The rout prompted the
Singapore authorities to investigate
suspected stock-trading irregularities and lawsuits by banks and
brokers seeking to recover at least
US$230 million. The three companies said they weren’t aware of
what caused the decline.
Maybank Kim Eng declined
Md Wira Dani
owes Maybank
Kim Eng
Securities Pte
Ltd S$2.6 million
for LionGold
shares bought
in a leveraged
account
to comment in an emailed statement, citing client confidentiality.
Md Wira Dani didn’t reply to three
emails or return seven phone calls
seeking comment.
Md Wira Dani said in a January email to the brokerage unit of
Malayan Banking Bhd, Malaysia’s
biggest lender, that he was “determined to resolve the situation amicably”. It didn’t accept his proposal,
according to court papers.
He had earlier agreed to pay the
bank in instalments, but only paid
Khazanah’s RM100m ethical sukuk
fully subscribed
BY SU L H I A ZM AN
KUALA LUMPUR: Khazanah
Nasional Bhd’s first tranche of
its inaugural ringgit-denominated sustainable and responsible investment (SRI) sukuk
has been fully subscribed
through a day of book-building.
In a statement yesterday,
Khazanah said it had successfully offered and priced
a RM100 million seven-year
sukuk to be issued via a special
purpose vehicle, Ihsan Sukuk
Bhd.
The sukuk was priced at
the price guidance of 4.3% per
year, and saw participation
from a diverse investor group
including a foundation, corporations, banks, a pension
fund and asset management
companies.
Proceeds will be used to
fund schools under the Yayasan Amir (YA) Trust School
Programme for 2015. YA is a
not-for-profit foundation incorporated by Khazanah to
improve accessibility to quality education in government
schools through a public-private partnership with the Ministry of Education.
“The social impact [of ]
sukuk is a new and powerful
concept, and investor aware-
ness and responsiveness will
increase further over time. It’s
a modest but good start,” said
Khazanah managing director
Tan Sri Azman Mokhtar in a
statement yesterday.
The state-owned sovereign
fund said the sukuk allows its
holders to convert their investments into donations at
any point during the tenure.
Under the Pay for Success
sukuk structure, the sukuk is
measured by Key Performance
Indicators (KPIs) which are
assessed over a five-year observation period.
“If at maturity the KPIs are
fully met, sukukholders will
forgo or contribute up to 6.22%
of the nominal value due under the sukuk, which will reduce the yield to 3.5% per year.
“The adjustment is considered part of sukukholders’ social obligation in recognising the positive social impact
generated by the Trust School
Programme. If KPIs are not
met or even partially so, sukukholders will receive up to the
nominal value due under the
sukuk as agreed at issuance,”
said Khazanah.
The SRI sukuk was launched
by Deputy Prime Minister and
Education Minister Tan Sri
Muhyiddin Mohd Yassin on
May 18.
S$100,000 in August 2014. “Cash has
been tight with many investments
made and unfortunately [it is] not
the best of times to cash out and
exit,” he said in his email.
LionGold closed unchanged at
2.2 Singapore cents yesterday, for
a market value of S$26.88 million.
It was valued at S$1.59 billion at its
peak in August 2013.
Singapore police said they’re
working with the central bank to
“expeditiously” complete the probe.
— Bloomberg
KUALA LUMPUR: Westports Holdings Bhd will replace Felda Global
Ventures Holdings Bhd (FGV) in
the list of 30 FBM KLCI constituent stocks come June 22 this year.
In a joint statement yesterday,
Bursa Malaysia Bhd and FTSE Russell said the KLCI reserve list that
comprises the five highest-ranking
non-constituents of the index by
market capitalisation are IJM Corp
Bhd, YTL Power International Bhd,
Gamuda Bhd, Malaysia Airports
Holdings Bhd and Hap Seng Consolidated Bhd.
The reserve list will be used in
the event that one or more constituents are deleted from the benchmark index in accordance with the
index’s ground rules in the run-up
to the next semi-annual review on
Dec 3, 2015.
The Edge Financial Daily on
May 18 reported that FGV (fundamental: 1.15; valuation: 1.4) was
likely to be removed from the list
as the stock had shed almost twothirds of its market value since its
June 2012 initial public offering
(IPO).
FGV was selected as an index constituent in December 2012 at a time
when its market capitalisation stood
at some RM19 billion. Currently, its
market cap is RM7.1 billion.
Meanwhile, Bursa and FTSE
Russell also announced that seven new constituents will be added to the FTSE Bursa Malaysia
Mid 70 Index. They are FGV, Sunway Real Estate Investment Trust,
Press Metal Bhd, Eco World Development Group Bhd, Karex Bhd,
Pharmaniaga Bhd and Hume Industries Bhd.
Two new constituents, namely
IOI Properties Group Bhd and Bumi
Armada Bhd, will also be added to
FTSE Bursa Malaysia Hijrah Shariah Index.
FGV’s counter closed up one sen
or 0.51% at RM1.96 apiece yesterday, compared with its IPO price
of RM4.55 per share.
Westports, on the other hand,
saw its share price moving uptrend
since mid-2014. It has risen 28.86%
year-to-date to close at RM4.42
apiece yesterday, giving it a market
cap of RM14.7 billion.
The Edge Research’s fundamental
score reflects a company’s profitability and balance sheet strength,
calculated based on historical numbers. The valuation score determines
if a stock is attractively valued or
not, also based on historical numbers. A score of 3 suggests strong
fundamentals and attractive valuations.
Malaysia Islamic asset growth to rebound
on deposit transparency
KUALA LUMPUR: Malaysia’s Islamic banks see their asset growth
rebounding closer to 20% as lenders benefit from a two-year effort
to improve transparency for depositors.
The nation’s syariah-compliant
banking industry slowed to an average annual expansion rate of 13%
in the past three years, compared
with 21% in the previous four, central bank data show. Growth eased
as lenders adjusted their products
to better suit the risk appetite of
customers and provide clearer insight into how their cash is invested, Badlisyah Abdul Ghani, who
heads the Association of Islamic
Banking Institutions Malaysia, said
in a Tuesday email interview.
“We expect the growth to go back
to the high teens, if not in the low
twenties, in the near to medium
term,” said Badlisyah, who is also
the chief executive officer (CEO)
of CIMB Islamic Bank Bhd. “We
should see Islamic financial institutions [refocusing] on growth.
However, this is naturally subject
to no Black Swan event occurring.”
The term “Black Swan” was popularised by author and investor
Nassim Taleb in his 2001 book to
denote unexpected financial events
with transformational effects.
“The introduction of this framework is a catalyst for lenders to
move toward risk-sharing product
offerings in line with the spirit of
Islamic finance,” said Hizamuddin
Jamalluddin, chief strategy officer
at Bank Islam Malaysia Bhd. “We
expect the development to give a
competitive edge.”
Malaysian lenders have to comply with the Islamic Financial Services Act by June 30, part of a goal
to boost syariah-compliant banking
assets to 40% of the total by 2020
from about 26% last year. The initiative will [have greater] impetus
in 2017 when the nation’s biggest
pension fund plans to allow customers to choose an investment
option that’s in full compliance
with religious principles for the
first time.
The act was introduced to reclassify existing products based on the
underlying contracts to differentiate
between deposit and investment
accounts. Syariah law forbids the
payment of interest while embracing the sharing of profit and risk.
Islamic banking assets in Malaysia almost doubled to a record
RM625.2 billion in 2014, from
RM351.2 billion in 2010, according to the central bank’s latest annual report.
The Employees Provident Fund
(EPF) will create the world’s largest syariah-compliant fund when
it provides the new investment option, Prime Minister Datuk Seri Najib Razak said in April. It currently
manages RM664 billion, of which
40% complies with religious tenets.
“Naturally, such a fund will add
some zing to the growth momentum but there are many other drivers in the market,” said Badlisyah.
“The simplest and most important
is the increase in demand from the
retail consumer market as greater
awareness of Islamic finance becomes more prevalent.”
The take-up rate should be encouraging based on a survey of
96,448 contributors, EPF CEO Datuk Shahril Ridza Ridzuan said in a
May 18 emailed statement. The poll
showed that 71% was in favour of
such a proposal. Shahriz Ibrahim
Sardar Mohamed, head of media
at the fund, hasn’t yet replied to an
email seeking additional comment.
Since EPF contributions are
compulsory, subscribing to the Islamic fund will definitely increase
syariah-compliant assets, said Baiza
Bain, a director with Islamic finance
consultancy Amanie Holdings Ltd.
Angus Salim Amran, head of financial markets at RHB Investment
Bank Bhd, said the banking asset
target can be met even without the
EPF involvement.
“This is a realistic target given the
current growth rate,” said Angus.
“The rise in syariah-compliant liquidity is the main driver of Islamic
banking assets and this is expected
to continue.” — Bloomberg
ST O C KS W I T H M O M E N T U M 7
KINSTEEL BHD (-ve)
KINSTEEL (Fundamental: 0/3, Valuation: 0.3/3)
was ‘Red Flagged’ by our algorithm due to its
weak fundamentals, suggesting that investors
should exercise extra caution while trading.
Last Friday, the steel maker released a
poor set of 3QFYJun2015 earnings results.
For 3QFY2015, it reported revenue of RM163.6
million and net loss of RM6.2 million, mainly
due to higher operating costs and lower selling prices, arising from influx of imported
steel products.
For 9MFY2015, it posted revenue of RM352.1
KINSTEEL BHD
KINSTEEL BHD
million and net profit of RM23.5 million, bolstered by a gain of RM166.9 million on deconsolidation of a subsidiary, Perwaja Holdings
Bhd. The PN17 company, now a 31.25%-owned
associate company of Kinsteel, is roping in
China-based conglomerate Zhiyuan Investment Group to revive its operations.
K insteel was loss-ma k ing from
FYDec2010-FYJun2014. Net gearing is high
at 507.6%.
The stock is trading at 1.1 times book. No
dividend was paid for the past three years.
Valuation score*
0.30
0.00
Fundamental score**
TTM P/E (x)
TTM PEG (x)
1.05
P/NAV (x)
TTM Dividend yield (%)
171.86
Market capitalisation (mil)
Shares outstanding (ex-treasury) mil 1,041.60
1.23
Beta
0.12-0.29
12-month price range
*Valuation score - Composite measure of historical return & valuation
**Fundamental score - Composite measure of balance sheet strength
& profitability
Stock has momentum but weak fundamentals
Note: A score of 3.0 is the best to have and 0.0 is the worst to have
ML GLOBAL BHD (-ve)
ROOF tile maker ML Global (Fundamental:
0.35/3, Valuation: 0/3) rose 16.5% to 49.5 sen
in active trading after it released its 1QFYMar15 results last Friday. For 1Q15, the company posted a net profit of RM0.2 million,
a 97% decline compared to a net profit of
RM6.9 million in 4Q14.
Following two consecutive profitable
quarters after the completion of its regularisation plan in October 2014, it will make an
application to Bursa to have its PN17 status
ML GLOBAL BHD
lifted. ML Global was loss-making in 20122013 but returned to profitability in 2014
with a net profit of RM0.1 million.
It is monetising its 5-acre vacant land in
Tuaran, Sabah by disposing it for RM2.5 million. After repaying the bank borrowings of
RM1.9 million, it will use the remaining proceeds of RM0.6 million for working capital.
The stock is trading at 2.1 times book
value. No dividend was paid for the past
three years.
Valuation score*
0.00
0.35
Fundamental score**
350.25
TTM P/E (x)
TTM PEG (x)
2.07
P/NAV (x)
41.68
89.63
Shares outstanding (ex-treasury) mil
-0.21
Beta
0.10-0.60
PANSAR BHD (-ve)
PANSAR BHD
Financials
Turnover
EBITDA
Interest expense
Pre-tax profit
Net profit - owners of company
Fixed assets - PPE
Total assets
Shareholders' fund
Gross borrowings
Net debt/(cash)
KINSTEEL BHD
RATIOS
DPS (MYR)
Net asset per share (MYR)
ROE (%)
Turnover growth (%)
Net profit growth (%)
Net margin (%)
ROA (%)
Current ratio (x)
Gearing (%)
Interest cover (x)
ML GLOBAL BHD
& profitability
PANSAR (Fundamental: 2.1/3, Valuation: 2.4/3)
is a supplier and service provider of industrial equipment and construction products.
It operates through five segments: building
products, marine and industrial, wood engineering and supplies, electrical and office
automation, and mechanical and electrical.
The stock saw increased investor interest
after reporting strong 4QFYMar2015 results
last Thursday.
Yesterday, the stock gained another 4.2% to 50
sen with over a million shares changing hands
(ALL FIGURES IN MYR MIL)
Financials
Turnover
EBITDA
Interest expense
Pre-tax profit
Fixed assets - PPE
Total assets
Shareholders' fund
Gross borrowings
Net debt/(cash)
ML GLOBAL BHD
RATIOS
DPS (MYR)
ROE (%)
Turnover growth (%)
Net margin (%)
ROA (%)
Current ratio (x)
Gearing (%)
Interest cover (x)
PANSAR BHD
— 6.3 times its average daily trading volume.
For FY2015, revenue rose 5.6% to RM449.8
million while net profit expanded 5.7% to
RM15.0 million, owing to higher contribution
from the mechanical and electrical segment.
Last year, the company acquired a 20% stake
in Reservoir Link Sdn Bhd, an upstream oil
and gas service provider for RM12.8 million.
The stock trades at a trailing 12-month
P/E of 11.1 times and 0.85 times book value.
Dividends totalled 2.25 sen in FY2014, giving
a yield of 4.7%.
Valuation score*
2.40
2.10
Fundamental score**
11.10
TTM P/E (x)
(0.51)
TTM PEG (x)
0.85
P/NAV (x)
4.69
134.40
Shares outstanding (ex-treasury) mil 280.00
0.61
Beta
0.43-0.53
& profitability
Financials
Turnover
EBITDA
Interest expense
Pre-tax profit
Fixed assets - PPE
Total assets
Shareholders' fund
Gross borrowings
Net debt/(cash)
PANSAR BHD
RATIOS
DPS (MYR)
ROE (%)
Turnover growth (%)
Net margin (%)
ROA (%)
Current ratio (x)
Gearing (%)
Interest cover (x)
FY11
FY12
FY14
FY2015Q2
31/12/2011
31/12/2012
30/6/2014
31/12/2014
1,999.3
(76.8)
140.4
(308.1)
(131.3)
2,283.4
1,653.6
647.1
1,845.8
1,786.4
2,146.5
29.3
160.0
(236.1)
(110.2)
2,288.0
1,233.7
537.2
1,877.0
1,833.1
1,803.8
(990.7)
243.5
(1,248.4)
(546.8)
2,343.4
418.5
111.1
1,947.8
1,931.0
109.7
(79.8)
(11.8)
67.2
115.6
1,140.2
558.1
163.9
860.2
858.3
FY11
FY12
31/12/2011
31/12/2012
30/6/2014
0.62
(18.54)
18.41
(6.57)
(7.17)
0.62
276.06
(0.55)
0.51
(18.61)
7.36
(5.13)
(7.63)
0.58
341.25
0.18
0.11
(168.69)
(15.96)
(30.31)
(66.19)
0.18
1,737.34
(4.07)
FY14 ROLLING 12-MTH
0.16
(44.20)
(62.55)
(26.50)
(18.53)
0.31
523.70
(1.78)
FY12
FY13
FY14
FY2014Q4
31/12/2012
31/12/2013
31/12/2014
31/12/2014
22.3
0.7
1.4
(1.8)
(1.8)
33.9
(12.4)
(12.4)
24.5
24.0
9.9
0.5
2.0
(2.6)
(2.7)
32.9
(15.1)
(15.1)
22.6
22.4
8.5
3.8
1.4
1.4
0.1
24.4
35.2
20.1
21.3
12.2
2.5
8.6
0.4
7.9
6.9
24.4
35.2
20.1
21.3
12.2
FY12
FY13
31/12/2012
31/12/2013
31/12/2014
FY14 ROLLING 12-MTH
(0.13)
(35.66)
(7.93)
15.53
0.38
0.54
(0.15)
(55.61)
(27.56)
19.93
0.19
0.23
0.22
4.70
(14.73)
1.39
1.17
1.65
60.49
2.77
0.22
(1.10)
(14.73)
1.41
(1.33)
1.65
60.49
2.52
FY12
FY13
FY14
FY2015Q3
31/3/2012
31/3/2013
31/3/2014
31/12/2014
399.1
19.7
1.0
21.7
15.8
3.7
130.9
130.9
21.4
1.8
429.9
25.1
0.9
23.2
17.5
4.0
143.7
143.7
12.4
(3.1)
425.8
20.6
0.6
19.1
14.2
3.8
152.9
152.8
20.6
(5.2)
101.4
3.2
0.3
3.4
2.4
4.6
157.3
157.3
21.6
11.4
FY12
FY13
31/3/2012
31/3/2013
31/3/2014
FY14 ROLLING 12-MTH
0.02
0.47
12.64
12.43
(17.19)
3.96
12.64
2.84
1.36
20.66
0.02
0.51
12.72
7.73
10.46
4.06
12.71
3.40
28.75
0.55
9.57
(0.96)
(18.69)
3.33
9.57
3.26
35.18
0.02
0.56
8.18
(10.11)
(23.23)
3.14
8.00
2.77
7.27
21.81
8 I N V E ST I N G I D E A S
I N S I D E R A S I A’S S TO C K O F T H E D AY
DUTCH LADY MILK INDUSTRIES BHD
DUTCH Lady (Fundamental: 2.1/3, Valuation: 1.5/3) should appeal to yield-seeking
investors for its consistent dividends, zero
gearing, enduring franchise and strong
market positioning. Its shares also have a
very low beta, indicating a historical trend
of low price volatility.
Incorporated in 1963, the company manufactures and sells a wide range of dairy
products such as infant formula, milk powder, liquid dairy products and yoghurt.
Revenue grew at a steady annual rate of
7.7%, on average, between 2009-2014. Net
profit grew an outsized 12.7% annually over
the same period — from RM60.4 million
in 2009 to as high as RM138.3 million in
2013 before declining to RM109.8 million
last year. The decline was due, primarily,
to higher raw material costs and unfavourable USD/MYR rate. Net margin averaged
around 11.7% during the six-year period.
For 1Q15, net profit dropped 26.2% y-y
to RM17.0 million, due to a 13.5% decline
in sales and higher marketing expenses.
However, gross margin for 1Q15 improved
to 35.6% from 31.8% a year ago, following
the normalisation of milk powder costs.
In line with weakening of the broader economy and rising costs, outlook for
Dutch Lady is challenging this year. Nonetheless, we believe its long-term prospects
remain positive, supported by the steady
population growth.
The stock has done very well in recent
years, supported by its steady business
and consistent dividends. The company
lowered dividends to RM2.20 per share
in 2014, from RM2.60 in 2012-2013, mirroring weaker earnings. That still gives
shareholders a higher-than-market average net yield of 4.8%.
We are sanguine Dutch Lady can sustain its dividends, taking into account its
RM123.5 million cash in hand, relatively
resilient operating cash flows and low capex
requirements.
The stock is trading at a trailing 12-month
P/E of 28.0 times. ROE is consistently high,
averaging 58% in the past four years.
Insider Asia will feature a new stock pick on every alternate day.
Income Statement
Turnover
EBITDA
Depreciation
EBIT
Associates
Interest income
Interest expense
Extraordinary gain/(loss)
Pre-tax profit
Balance sheet
Fixed assets - PPE
Biological assets
Intangibles & goodwill
Cash and equivalents
Total current assets
ST borrowings
Total current liabilities
Total assets
Shareholders' fund
Long term borrowings
RATIOS
DPS (MYR)
ROE (%)
Turnover growth (%)
Net margin (%)
ROA (%)
Current ratio (x)
Gearing (%)
Interest cover (x)
FY12
FY13
FY14
FY2015Q1
31/12/2012
31/12/2013
31/12/2014
31/3/2015
882.2
171.6
9.0
162.6
6.1
2.9
165.8
123.4
980.1
193.0
8.8
184.2
5.8
3.3
186.7
138.3
1,000.2
156.7
8.5
148.2
3.8
3.6
148.4
109.8
196.9
25.7
2.3
23.4
0.3
0.7
23.0
17.0
73.1
1.2
204.8
329.2
182.5
221.0
216.1
-
77.2
1.6
187.6
337.7
222.8
193.7
188.0
-
82.8
1.8
124.3
260.9
181.8
163.7
157.0
-
85.0
1.7
123.5
295.8
201.8
180.8
174.1
-
FY12
FY13
31/12/2012
31/12/2013
31/12/2014
FY14 ROLLING 12-MTH
2.60
3.38
51.92
8.82
14.15
13.99
50.96
1.80
59.96
2.60
2.94
68.43
11.10
12.06
14.11
66.68
1.52
58.21
2.20
2.45
63.67
2.06
(20.56)
10.98
61.46
1.44
44.13
2.20
2.72
54.49
(3.20)
(21.54)
10.71
52.87
1.47
42.55
B R O K E R S’ C A L L 9
Gamuda has prospects
of clinching PDP contract
Gamuda Bhd
(June 4, RM5)
Upgrade to buy with higher target
price (TP) of RM5.65: We gather
that Gamuda Bhd is one of two
shortlisted bidders for the Penang
Integrated Transport Master Plan
project out of the six initial bidders,
based on our market research.
We believe prospects are good
for Gamuda to clinch the project
delivery partner (PDP) contract
given its strong track record in undertaking large-scale infrastructure
projects.
Assuming RM12.4 billion share
of works over financial year 2018
(FY18) to FY31, a 7% discount rate
and 6% PDP fee rate, we estimate
the project discounted cash flow
value is 12 sen per share. This report marks a transfer of analyst
coverage.
The joint venture between MMC
Corp Bhd and Gamuda was appointed the PDP for the RM25 billion Mass Rapid Transit (MRT) Line
Gamuda Bhd
FYE JUL (RM MIL)
Revenue
Ebitda
Pre-tax profit
Net profit
EPS (sen)
PER (x)
Core net profit
Core EPS (sen)
Core EPS growth (%)
Core PER (x)
Net DPS (sen)
Dividend yield (%)
EV/Ebitda (x)
Change in EPS (%)
Affin/Consensus (x)
2013
2014
2015E
2016E
2017E
3,883.1
613.3
692.6
541.4
25.1
19.9
630.1
29.2
28.7
17.1
12.0
2.4
17.1
-
4,636.4
742.0
922.3
719.4
31.0
16.1
712.3
30.7
5.0
16.3
12.0
2.4
15.3
-
4,738.6
734.7
959.4
732.9
30.5
16.4
732.9
30.5
(0.7)
16.4
12.0
2.4
15.7
(3.4)
1.0
4,037.7
614.3
893.8
677.4
28.3
17.7
677.4
28.3
(7.3)
17.7
12.0
2.4
19.0
(10.0)
0.9
4,385.1
699.1
1,043.7
788.5
32.9
15.2
788.5
32.9
16.3
15.2
12.0
2.4
16.7
3.0
1.0
Source: Company, Affin Hwang forecasts, Bloomberg
2 project in October 2014, and an
agreement finalising the PDP terms
is expected to be signed this month.
The outstanding construction
order book of RM1.6 billion and
PDP order book of RM12.2 billion
should last until 2022.
Gamuda has cut its property presale target to RM1.2 billion
from RM1.6 billion for FY15 (versus
RM1.8 billion in FY14) as tight bank
lending for mortgages and weak
market sentiment have adversely
affected property demand, especially in Johor.
We cut our earnings forecasts
by 3% to 10% for FY15 and FY16
to reflect slower property pre-sales
and the expected delay in the implementation of the MRT Line 2
project.
Gamuda is our preferred largecap pick in the construction sector
given the strong pipeline of large
infrastructure projects and its good
prospects to grow its construction
order book.
We upgrade Gamuda to “buy”
(from “hold”) with a new revised
net asset valuation-based 12-month
TP of RM5.65 (from RM5.07), which
offers 16% return potential (including dividends).
Key risk would be slower property sales, leading to cuts to consensus FY16 earnings. — AffinHwang
Capital, June 4.
AMMB’s FY16 should be a stronger year
THE EDGE FILE PHOTO
AMMB Holdings Bhd
(June 4, RM6.32)
Maintain hold with target price
(TP) of RM6.60: Financial year 2015
(FY15) results reflected a repositioning year for AMMB Holdings,
where portfolio rebalancing remained a key theme.
They also booked one-off gains,
largely related to the sale of the life
insurance and takaful business to
Metlife.
Part of the gains was offset by
restructuring costs and additional provisions. AMMB also saw
lumpy corporate repayments in
FY15. Common equity tier-1 on
fully loaded basis at the financial
holding company (including insurance business deductions) stood
at 9.8%.
FY16 should be a stronger underlying year. Excluding one-off
items in FY15, we forecast net profit
will grow by 4%.
The key underlying key performance indices for this year are as
follows: 15 to 20 basis points net
interest margin compression, 4%
to 5% loan growth (driven by mortgage and small business loans; auto
loans should remain flat), cost-to-
income ratio to be similar to that
in FY15 but targeted to trend down
over time.
Capital markets are expected
to remain soft. Asset quality may
come under pressure due to the
benign macro environment.
The search for a new chief ex-
ecutive officer (CEO) — through a
global search company — is ongoing and may take longer than expected. Meanwhile, AMMB has had
a new CEO at its Islamic banking
outfit from April 1, while the head
of human resources and head of
markets are expected to join this
month.
No change to our point of view
for the stock. Our TP is derived
from the Gordon growth model
and assumes 13% return on equity, 10.8% cost of equity and 4%
long-term growth. — AllianceDBS
Research, June 4.
Oil and gas
sector in a
rebalancing
mode
Oil and gas sector
Maintain neutral: The key takeaway from the recently concluded 18th Asia Oil & Gas Conference (AOGC) is for a transition
period for the O&G sector over
the next 24 months as it adjusts
to the low oil price environment.
Oil price is finding a new
equilibrium after the sharp
fall. Overall, the tone reflects
a restrained outlook. Capital
discipline, cost controls, capital expenditure/operating expenditure cuts are some of the
common themes consistently
highlighted.
The general consensus is
that oil price will be volatile.
The mid-term outlook is for a
range of US$40 (RM148.40) to
US$73 per barrel (bbl) over the
next two years.
It is worth highlighting that
one speaker painted a scenario
of potential weak oil price (to a
low of US$20 per bbl) in June,
shaped by certain key events,
for example the probability of
the Organisation of the Petroleum Exporting Countries (Opec)
not cutting oil output post its
meeting today and the United
States lifting trade sanctions
on Iran soon, further tilting
demand-supply imbalances.
The market has underestimated shale oil, notably in the
US. The revival has completely
transformed the global oil market. As a result, Opec has abdicated its market manager role
(relinquishing price support,
and pushing for market share),
which means a historic return
to a fully free market for oil for
the first time in over 80 years.
Nonetheless, the US will not
be able to replace Opec’s role
as a swing producer. Instead,
US shale will act as more of a
price ceiling for oil than a floor
due to higher production cost
and production flexibility. —
Maybank Research, June 4.
10 B R O K E R S’ C A L L
CBIP supported by resilient
demand for palm oil mills
CB Industrial Product
Holding Bhd
(June 4, RM2.09)
Maintain buy with unchanged
target price of RM2.33: CBIP’s fair
value is based on a fully-diluted financial year 2016 (FY16) forecast
price-earnings ratio (PER) of 13.7
times. The group is currently trading
at a fully-diluted FY15 forecast PER
of 14.1 times and FY16 PER of 11.9
times. In the past seven years, the
group’s PER has ranged from a low
of 2.9 times to a high of 13.7 times.
Average PER was 8.4 times.
We have reduced CBIP’s FY15
earnings per share by 8.1% to account for the expiry of Modipalm
Engineering Sdn Bhd’s pioneer tax
status in March 2015.
Although CBIP is likely to receive
pioneer tax status in respect of its
zero effluent palm oil mill, this would
only come in four to six weeks’ time.
In addition, there is a possibility that
the new pioneer tax status may not
completely recover the loss of savings
from the previous pioneer tax status.
CBIP is expected to win a record
level of new palm oil mill contracts
in FY15 at about RM400 million
to RM500 million compared with
RM270 million in FY14.
The new contracts, coupled with
unbilled sales of RM480 million as
at end-March 2015 are expected to
CB Industrial Product Holding Bhd
FYE DEC (RM MIL)
sustain the group’s profit growth
in FY16.
A significant portion of the contracts are expected to come from
countries such as Liberia while the
balance is anticipated to come mainly from plantation companies in Indonesia and Papua New Guinea.
Based on Bursa announcements,
we estimate CBIP has received more
than RM200 million contracts yearto-date.
It appears that CBIP is still able to
secure mill contracts in spite of weak
crude palm oil (CPO) prices. Depending on a plantation company’s
requirements, a palm oil mill may be
required for mature areas as small
KLCCP Stapled
Group backed by
steady earnings
KLCCP Stapled Group
(KLCC Property Holdings Bhd
June 4, RM7.04)
(KLCC Real Estate Investment
Trust June 4, RM7.04)
Maintain neutral with unchanged
target price of RM6.88: We expect
earnings of KLCC’s office division to
remain steady. Three of its four office
investment properties (Petronas Twin
Towers, Menara 3 Petronas [office
portion only] and Menara Dayabumi)
have been leased out for the long term
to its major shareholder, Petroliam
Nasional Bhd. Menara ExxonMobil
is under a five-year lease agreement
expiring in January 2017. The tenancy
agreement with ExxonMobil is likely
to be renewed. This is in view of the
good relationship established with
ExxonMobil and the prime location
of the property in the KLCC Development Area. In financial year 2014
ended December (FY14), the office
segment was the major contributor to
KLCCP Stapled Group, contributing
44% of its total revenue.
The Phase 3 refurbishment of Menara Dayabumi involves the redevelopment of the City Point podium into
a 60-storey office and hotel tower with
new retail outlets. From our recent
meeting with management, we gather that KLCC has secured Shangri-La
Hotel Group as tenant to occupy the
top half of the tower and to operate
it as a hotel. We are positive on this
development but there will be no
earnings impact until FY19 after the
completion of the new tower.
We believe that the implementation of the goods and services tax
(GST) from the second quarter of
2015 onwards will affect consumer spending in the short term. This
should moderate the rental reversion
growth to 5% in FY15 (from 12% in
Revenue
Operating profit
Profit before tax
Net income
Core net income
Basic EPS (sen)
Core EPS (sen)
Gross dividend (sen)
Net dividend (sen)
Net distribution yield (%)
Core PER
NAV per unit
P/NAV
Core ROE (%)
Core ROA (%)
2013A
2014A
2015F
2016F
1,284
951
1,148
826
554
52.61
35.34
28.94
27.65
3.8
20.6
7.45
0.98
4.7
3.4
1,354
1,012
1,280
938
582
51.95
32.24
33.64
31.67
4.4
22.6
6.66
1.09
4.9
3.5
1,395
1,046
951
593
593
32.83
32.83
32.83
30.90
4.2
22.2
6.66
1.09
4.9
3.5
1,462
1,101
995
617
617
34.17
34.17
34.17
32.17
4.4
21.3
6.66
1.09
5.1
3.6
Source: Company, MIDF Research Forecast
FY14) as tenants due for the lease
renewal may negotiate for lower increase in rental rates than in the past.
For existing tenants, the rental rate
and service charge should remain
the same while the profit-sharing
portion is expected to continue to
contribute less than 1% of its retail
division’s total revenue.
To recap, the retail segment contribution to KLCCP Stapled Group’s
revenue is 33%. Recall that its hotel
division’s revenue declined 36% yearon-year to RM31.5 million in the first
quarter of 2015. This was caused by
weaker market demand for luxury
hotel rooms in Kuala Lumpur in line
with the plunge in oil prices.
We gather that oil and gas accounts
within the hotel division are economising on travel and event expenses for their businesses. In addition,
renovation works have started on
Mandarin Oriental Kuala Lumpur in
2014
2015F
2016F
2017F
600.9
91.2
16.9
15.6
(8.7)
97.9
8.0
12.2
13.3
10.7
3.9
562.9
83.6
15.5
14.4
(8.3)
85.2
7.0
13.3
14.4
10.0
3.4
611.6
99.8
18.5
17.0
19.4
96.4
8.0
11.2
12.2
8.6
3.9
618.6
109.4
20.3
18.5
9.5
95.5
9.0
10.2
11.2
8.3
4.3
Source: AmResearch
as 5,000ha or as large as 10,000ha.
CBIP’s balance sheet is healthy
as reflected in the group’s net cash
and cash equivalents position of
RM141.5million as at end-March
this year.
Capital expenditure is forecast
at RM50 million in FY15, mainly
in respect of new plantings of oil
palm in Kalimantan, Indonesia.
New plantings are targeted between
3,000ha and 4,000ha in FY15 against
1,500ha in FY14. — AmResearch,
June 4
Eyes on Weida’s property
development
KLCC Stapled Group
FYE DEC (RM MIL)
Revenue
Net profit
EPS (sen)
FD EPS (sen)
EPS growth (%)
Consensus net
DPS (sen)
PER (x)
FD PER (x)
EV/Ebitda (x)
Dividend yield (%)
1QFY15 and we expect this to affect
its occupancy rate.
Despite the challenging outlook
for the hotel segment, its impact at
the group level should be minimal
as its revenue contribution to the
group is minimal at 14%.
Post meeting with KLCC’s management, we maintain our earnings
forecasts for both FY15 and FY16
due to limited rerating catalysts
in the near term. Potential earnings growth is only expected in the
longer term after the completion of
its 60-storey tower next to Menara
Dayabumi in FY19. Potential asset
injection from Petronas (Lot 185
and Lot 91) into KLCC should only
happen beyond FY18.
Our target price of RM6.88 is unchanged based on dividend discount
model (required rate of return: 8%,
perpetual growth rate: 3.1%). — MIDF
Research, June 4.
Weida (M) Bhd
(June 4, RM1.61)
Not rated with fair value of
RM1.63: Weida (M) Bhd is a
well-diversified company that operates in four business segments:
(i) manufacturing of polyethylene-based building materials; (ii)
environmental services (waste water management); (iii) telco towers;
and (iv) property development.
Its manufacturing division,
Weida’s core business, drove 54%
of its revenue of RM333.8 million in financial year 2015 ended
March (FY15), followed by telco
towers (19%), property development (13%) and lastly waste water
management (7%).
Apart from being well-diversified, Weida’s balance sheet is
relatively strong with a net cash
position of RM64.7 million or 4.9
sen per share at the end of the
fourth quarter of FY15, providing
ample room to gear up by another RM250 million before breaching our comfortable net gearing
threshold of 0.5 times should it
plan to embark on another development project.
In 2013, Weida launched its
maiden property project, the Urbana residence, with an estimated
gross development value (GDV) of
RM231 million. That project was
well received at 90% take-up within
a month of its launch.
After Urbana residence’s success, we gather that management
intends to launch its second property project in Mont’ Kiara namely
Ardena with an estimated GDV of
RM330 million in the near to medium term (FY16) as most of the
preparation works for the project
are almost in place.
That aside, its proposed joint
development agreement with Pacific Mutiara Sdn Bhd to develop
11.5 acres (4.65ha) of land in the
Cheras area into an affordable to
low-cost development has recently
become unconditional.
Based on a minimum density
ratio of 200 units per acre, we reckon that the project would have an
estimated GDV of RM575 million
assuming an average selling price
of RM250,000 per unit.
Moving forward, while we ex-
Weida (M) Bhd
FYE MAR (RM MIL) 2015E 2016E 2017E
Revenue
333.8 367.2 456.3
Ebit
27.2 30.9 44.8
Net profit (NP) 17.4 21.1 30.3
13.1 15.8 22.7
Core EPS (sen)
BV/Share (RM) 2.76 2.92 3.14
12.6 10.4
7.3
Core PER (x)
0.6 0.6 0.5
Price/BV (x)
Net gearing (x) (0.3) (0.4) (0.5)
Source: Kenanga research
pect its manufacturing, environmental services, and telco tower
division to continue enjoying
steady growth, say 10%, underpinned by the strong demand in
the construction industry and the
need for water supply, sanitation
facilities, housing and general
infrastructure developments in
Sabah and Sarawak, its property
division will still be its core earnings driver.
We are expecting Weida’s earnings catalyst to come from its property development division. Hence,
we are projecting Weida to register
a net profit growth of 21% and 44%
for FY16 and FY17, should they
launch its Mont’Kiara project, Ardena, in FY16.
To recap, its property development division is currently still
loss-making, primarily due to higher operating costs, that is sales and
administration, and marketing
costs incurred for the preparation
works for Ardena.
While we are projecting a
healthy net profit growth for the
next two years, we believe that the
stock is fairly valued at this juncture as we are valuing it at only
RM1.63 based on 10.3 times FY16
price-earnings ratio (PER).
Our applied PER of 10.3 times
is in line with FTSE Bursa Malaysia
Small Cap (FBMSC) Index’s oneyear forward PER of 10.3 times.
Furthermore, our earnings projection relies heavily on the timing of its launch for its Mont’Kiara
project.
We believe there is potential
earnings risk if this particular
project fails to take off in FY16. —
Kenanga Research, June 4
H O M E 11
PAS will remain in
Pakatan, says Hadi
But party’s Dewan Ulama voted to cut ties with DAP
BY A NI SA H SHU K RY
KUALA SELANGOR: PAS president
Datuk Seri Abdul Hadi Awang said
the party will remain in Pakatan Rakyat, even as the PAS Dewan Ulama
on Wednesday voted to cut ties with
coalition partner DAP.
Hadi told the 61st PAS muktamar
here that its cooperation with DAP
and PKR was based on Pakatan’s
common policy, which covered good
governance and the fight against graft
and leakages, among others.
He said all three parties should be
allowed to pursue their own agendas
not included in the common policy.
“That is why, even though we
know our party colleagues are fighting for a secular constitution, which
goes against PAS’ policy, PAS has
never asked them to study and bring
the secular policy into discussions.
“We have never interfered over
who should or should not be in the
Abdul Hadi inspecting a PAS Unit Amal
volunteer group parade before the
start of the muktamar. Photo by Nazir
Sufari/The Malaysian Insider
party’s leadership, even though we
are attacked day and night.
“Because of this, PAS will continue to carry out the tahaluf siyasi
(cooperation) with Pakatan, as long
as it doesn’t go against the Quran
and Sunnah,” Abdul Hadi said in his
keynote address.
However, he reminded delegates
that PAS could not be tied to any
coalition that required it to aban-
Scholars to debate
on ‘Chinese tsunami’
BY JEN N I FER GOMEZ
KUALA LUMPUR: Whether or not
there was a Chinese tsunami in the
2013 general election will be among
the topics discussed at a two-day conference in Kuala Lumpur on Monday.
Universiti Tun Abdul Razak (Unirazak) vice-chancellor Professor Datuk Seri Dr Md Zabid Abdul Rashid
said the popular notion that Pakatan
Rakyat won the popular vote but did
not get into power to rule would also
be addressed at the conference, as
well as findings that the 13th general election (GE13) was actually fair.
The conference, organised by Unirazak, will also look at evidence on
whether Chinese voters were responsible for a greater swing to the opposition, dubbed the Chinese tsunami.
It will be discussed by Serdang
MP Ong Kian Ming in his paper
“Malaysia General Election 2013:
Electoral Apportionment”, said Unirazak school of government deputy
dean Professor Dr Abdillah Noh.
Abdillah said he also had a paper
that would test the same idea, adding that he differed from Ong, who
held that it was Malay votes that had
caused bigger wins for PR in 2013.
Abdillah explained how he had
looked at all the state and parliamentary seats with more than 50%
Chinese votes.
He added that there were 31
parliamentary seats with more than
50% Chinese votes, and found that
all of these seats went to PR.
“So basically, seats that have majority Chinese voters are fixed depos-
its for Pakatan Rakyat,” he said.
He added that of the 89 state seats
that had more than 50% Chinese
votes, 87 were won by PR, with the
exception of two seats from Sabah.
“So you interpret if there was a
Chinese tsunami [or not],” he said
at a media briefing yesterday.
Abdillah said the conference
was a good platform to hear various points of view, for the purpose
of working out strategies to adopt
in the next elections.
He added that the conference
would benefit policymakers and
political parties to look at the bigger picture, including voting patterns in Sabah and Sarawak, and
that ethnicity was a big problem
in Malaysian politics.
“I’m saying that it is a problem
and it is not healthy. People say we
transcend ethnic lines but the last
election results have shown that
people still vote along ethnic lines,
and this is not healthy in terms
of public policymaking. It means
we are going backwards. So it is
important for policymakers and
political parties to interpret these
results and discuss the best way
forward,” he said.
Institute for Democracy and
Economic Affairs (Ideas) chief executive officer Wan Saiful Wan Jan
will also present his paper “Was GE
Free and Fair”.
Abdillah said that Wan Saiful
will reveal that his findings show
that GE13 was actually free, even
though not totally fair. — The Malaysian Insider
don its Islamic agenda.
Abdul Hadi also warned the party not to be carried away by worldly
victories and neglect its duties in upholding Islam to ensure the world was
governed by religious rules.
PAS’ ties within Pakatan were
strained last year after Abdul Hadi
openly opposed PKR’s Kajang Move
and the coalition’s choice for Selangor menteri besar, Datuk Seri Dr Wan
Azizah Wan Ismail.
PAS’ push for hudud in Kelantan
early this year further frayed its relations with PKR and DAP, who oppose
the implementation of the Islamic
criminal law on the grounds that it
is not included in the pact’s common policy.
DAP recently announced it will
freeze all ties with Abdul Hadi, citing his tendency to make unilateral
decisions and continued absence
at the Pakatan leadership council
meetings. — The Malaysian Insider
*
Najib and
Rosmah
‘can sleep
well’
Page 14
PAS leader gets booed at congress
for criticising president
BY A N IS A H S H UK RY
KUALA SELANGOR: PAS leader
Mohamed Hanipa Maidin was
yesterday booed by party delegates during the party’s muktamar (annual congress), when
he questioned why it was wrong
for him to criticise their president,
Datuk Seri Abdul Hadi Awang.
Hanipa said this in response
to a delegate who had asked him
why he did not defend Hadi’s
private member’s bill on hudud
and instead criticised the president in various forums.
Hanipa told the hall that he
did not oppose the enforcement
of hudud in Kelantan, but was
against Abdul Hadi’s decision
to submit the bill without first
consulting PAS or its partners.
“We want to show the people
outside that PAS practises democracy, we can criticise our president and the president can accept it. Why must we panic when
criticism is made? Is it wrong to
criticise? Or are we seen as not
being wala (obedient) when we
criticise?” said Mohamed Hanipa.
PAS deputy chairman Hussin
Ismail immediately interrupted
Mohamed Hanipa to request that
he focus on the question, to which
Mohamed Hanipa replied, “even
the question wasn’t focused!”
This prompted the packed hall
to break into a chorus of loud boos
and shouts, and one delegate even
sprang up from his chair, gesturing
angrily at Mohamed Hanipa.
“Is this what we have been
taught, to boo like this?” Mohamed
Hanipa shouted above the din.
Cries of “Allahuakbar” (God
is great) pierced through the air,
before the delegates finally settled
down. Apparently unperturbed by
the commotion, Mohamed Hanipa said he was accustomed to receiving the same treatment from
Umno MPs in the Dewan Rakyat.
“If I appear to be contradicting
the president, prove it. Otherwise,
I cannot answer the question,” he
said. Hanipa added that he had always defended PAS’ hudud agenda, “even in hostile forums at the
Kuala Lumpur Selangor Chinese
Assembly Hall”, because it pre-dated Pakatan Rakyat’s formation.
“The only problem is that the
bill was never discussed beforehand. I am a central working committee member, and I never saw it
before it was sent to Parliament.
Because of that, I couldn’t give my
views when people asked me about
it. It was difficult for me to defend
hudud when that happened.”
But he added that should the bill
be tabled in Parliament, he would
defend it. — The Malaysian Insider
12 H O M E
Malaysia needs ‘solid wall’
at border, says Zahid
To deal with many issues involving illegal activities
BY MUZL I ZA MU S TAFA
KUALA LUMPUR: Malaysia needs
to build a wall at the border areas
to deal with many issues involving
transborder illegal activities.
Home Minister Datuk Seri Ahmad Zahid Hamidi said this was
necessary as without a proper wall
it would be difficult for any enforcement agencies to conduct
surveillance.
Citing the example of the United
States-Mexico border, Ahmad Zahid said despite the sophisticated
wall placed at the border of the two
countries, there were 11 million
illegals in the US.
“Even with the wall, there are
11 million illegals in the US, what
more if there’s no physical and solid wall? Not only humans can be
smuggled but also firearms, drugs
as well as subsidised items to other countries,” said Ahmad Zahid.
He said although such a pro-
ject would be costly, the Cabinet
has requested the Home Ministry
to come up with a proposal paper
on the matter.
“We have received five proposals to build the wall and the assets
we need, and we will forward the
proposals to the agencies involved
to decide which wall system is the
best to be implemented.”
The proposals will be tabled as
soon as possible.
On surveillance at borders, Ahmad Zahid said the Cabinet had
decided that it would involve the
police and army personnel.
Last month, Deputy Home Minister Datuk Seri Dr Wan Junaidi Tuanku Jaafar said the construction
of a wall would probably be more
effective in securing the border areas, as the security forces were incapable of monitoring more than 100
“rat trails” along the 700km border
separating Malaysia and Thailand.
Ahmad Zahid also said that the
Rohingya Muslims in Malaysia were
not allowed to work in the country
as it was against the law. He said
there were no plans to issue work
permits to the refugees.
“The Rohingya have no right to
work. Even if they have UNHCR
(United Nations High Commissioner for Refugees) cards they are
not allowed to work here. Not by
law,” he said.
Malaysia, on humanitarian
grounds, recently allowed more
than 1,000 boat people comprising
Rohingya Muslims and Bangladeshi
migrants to come ashore after their
boats were abandoned by people
smugglers in the open sea. They
were placed in a temporary shelter in Kedah.
In a joint statement after the ministerial meeting on irregular movement of people in Southeast Asia in
Kuala Lumpur on May 20, Malaysia
and Indonesia agreed to continue
to provide humanitarian assistance
to 7,000 migrants still at sea.
They also agreed to offer them
temporary shelter provided that
the resettlement and repatriation
process will be done in one year
by the international community.
Despite allowing the Rohingya
to stay here, Malaysia is not a signatory to the 1951 UN Refugees
Convention. As such, there is no
legal mechanism in place to give
the refugees any form of status. Because of this, most of them had to
work illegally to feed their families.
The Rohingya were also used as
cheap labour and vulnerable to ill
treatment from their “employers”.
They were faced with constant harassment and detention. The Rohingya have been seeking refuge in
the country since the 1980s, with
the UNHCR stating that there are
36,290 of them here (as of April
2014). There are perhaps a few
thousand more unaccounted for.
—The Malaysian Insider
Top cop keeps mum on corruption report
BY YA SMI N RA MLAN
KUALA LUMPUR: Inspector-General of Police Tan Sri Khalid Abu Bakar
yesterday refused to comment on
reports that the majority of Malaysian border authorities are corrupt,
asking reporters instead to refer the
matter to the Special Branch (SB).
English daily the New Straits
Times ran an article saying a report by the SB indicated that 80%
of Malaysian security and enforcement officers at the borders were
“on the take”.
“Please ask the director of Special Branch. Call him and ask him,”
Khalid said when asked about the
matter.
The report was the result of
10 years of covert operations at
the borders, and covers the police’s General Operations Force,
Anti-Smuggling Unit, Malaysian
Maritime Enforcement Agency and
the Immigration Department.It
also said some officers were on a
permanent payroll from human
trafficking syndicates.
Malaysia’s border security has
come under scrutiny following the
recent discovery of mass graves and
human trafficking camps in Perlis,
near the Thai border, which had
reportedly existed for years.
Meanwhile, PKR’s Alor Star
Member of Parliament Gooi Hsiao
Leung said he would file an urgent
motion in the Dewan Rakyat on
Monday to discuss the report. He
demanded that Ahmad Zahid answer the serious questions raised
by the report.
Malaysia has been downgraded
to Tier 3, the lowest ranking, by the
United States in its annual Trafficking of Persons Report.
Meanwhile, Bernama reports that
work on digging up the 91 graves in
the second phase of the operations
in the Mata Ayer forest reserve in
Lubuk Sireh, Perlis, which began
yesterday, was expected to be completed by next Wednesday.
Khalid said eight vehicles carrying the forensic and security teams
of the police force had entered the
area to carry out the operations.
To date, 35 bags of skeletal remains have been unearthed from
the discovery of 139 graves at 28
transit camps believed to have been
abandoned by the human trafficking
syndicate in the area from Kampung
Wai, Kuala Perlis to Tangga 100 in
Felcra Lubuk Sireh, Padang Besar
near the Malaysia-Thai border since
they were first detected on May 25.
On the masterminds behind the
human trafficking syndicate in the
Wang Kelian area, Khalid did not
discount the possibility of locals assisting the Rohingya national known
as “Yassin” who is suspected of being
an agent of the syndicate. He also
urged the public with information
relating to the case to immediately
make a report at the nearest police
station so that action could be taken.
— The Malaysian Insider
AirAsia, Malindo offer employment to ex-MAS staff, says Liow
SEPANG: AirAsia Bhd and Malindo
Air have offered to take in Malaysia Airlines (MAS) staff whose employment with the national carrier
had been terminated, according
to Transport Minister Datuk Seri
Liow Tiong Lai.
“This is the good thing about
having many airline companies;
they can accommodate staff who
lost their jobs,” he told reporters
yesterday.
Liow earlier launched the inflight connectivity services Malindo WiFi and Malindo Mobile, and
in-flight magazine Malindomag at
klia2 here.
On Monday, MAS chief executive
officer (CEO) Christoph Mueller
said the actual number of staff who
would be leaving the company could
only be confirmed after two weeks.
“It depends on whether the
14,000 staff who had been offered
re-employment by MAS would accept their new jobs.
“According to the plan, 6,000
MAS staff will receive termination
letters and 14,000 will receive a job
offer effective June 1,” he said.
Meanwhile, Malindo Air CEO
Chandran Rama Muthy said the
company had 500 jobs to offer to
ex-MAS staff.
“We have received applications
for various posts such as pilots,
flight attendants and non-technical jobs including marketing and
reservation.
“Basically, Malindo Air has 600
vacancies till the end of this year,
but we will let MAS’ ex-staff fill
them because they already have
the skill and experience,” he said.
— Bernama
Chandran (left) and Liow at the launch
of the in-flight connectivity services and
magazine at klia2 in Sepang yesterday.
Photo by Bernama
Gerakan files
appeal against
dismissal of
hudud suit
PUTRAJAYA: Gerakan filed an
appeal yesterday against a High
Court decision to reject the party’s
suit to challenge an amendment
made to Kelantan Syariah Criminal Code II 1993 (Amendment
2015) or better known as hudud.
One of Gerakan’s counsels
Chai Ko Thing told reporters
that the notice of appeal was
filed at the High Court registry
in Kota Baru, Kelantan.
On May 7, this year, the Kota
Baru High Court dismissed Gerakan’s application to refer constitutional questions to the Federal Court. On the same day, the
High Court also struck out the
party’s originating summons to
challenge the constitutionality
of the state Syariah Criminal
Code, which was amended and
approved by the Kelantan State
Legislative Assembly on March
19 this year. The amendment
was to include a legislation to
penalise criminal acts such as
theft, robbery and rape that
were part of the Federal Legislative List and were punishable
under federal law.
Justice Datuk Azman Abdullah had ruled that Gerakan’s
notice of motion was premature
and akin to “putting the cart before the horse”. He allowed the
preliminary objection raised
by the Kelantan government
that Gerakan should have first
obtained leave of the Federal
Court. Meanwhile, Gerakan’s
application seeking leave to initiate a petition to challenge the
constitutionality of the Syariah Criminal Code came up for
case management at the Federal
Court registry yesterday.
Federal Court deputy registrar Nor Aziah Jaafar fixed
July 9 for further case management to enable the Kelantan
state to file its affidavit-in-reply to Gerakan’s application.
Appearing for the party at the
proceedings were counsel Ong
Siang Liang and Chai. Senior
federal counsel Mazlifah Ayub
appeared for the Attorney-General’s Chambers, while counsel Wan Jawahir Harun for the
Kelantan state. — Bernama
14 H O M E
Najib, Rosmah ‘can sleep well’
PM says this to thousands of BN supporters who overflowed stadium in Kuching
BY D ESMON D DAV IDSON
KUCHING: With Sarawak behind
him and unconditional support
from the state Barisan Nasional
(BN), Prime Minister Datuk Seri
Najib Razak said he and his wife
can now sleep peacefully.
“I’m so glad I am not alone,” he
said, referring to Sarawak Chief
Minister Tan Sri Adenan Satem’s
earlier statement of support.
“Tonight I can sleep nicely. My
wife (Datin Seri Rosmah Mansor)
can also sleep nicely. Sleeping on
the same pillow, dreaming the same
dream,” he told the tickled 4,500 BN
supporters who packed Stadium
Perpaduan and an equal number
outside watching him live on large
television screens.
Najib, who appeared relieved at
the show of support, said he was
sure it was genuine and no one in
Sarawak would backstab him.
“I can read people’s faces. When
I shake their hands, I can read
them,” he said, adding that Ade-
nan’s show of support was sincere
and genuine.
Adenan had in a Gawai Dayak
gathering on Wednesday night said
Sarawak supports Najib “because
it is the right thing to do”.
He said Najib deserves Sarawak’s
support because he has done more
to develop the state than all the five
past prime ministers put together,
including Tun Dr Mahathir Mohamad, one of his fiercest critics who
has also demanded he step down.
Najib said he has gone to small
remote settlements and villages
in the state where no other prime
ministers had gone to.
He said in the five years since
he became prime minister, he has
also approved development allocations totalling over RM1 billion
that were not budgeted.
Najib said with the kind of support he has received and the show
of unity in the state BN, he is sure
the BN would win big in the coming
state elections and Adenan would
get his wish of a mandate of his own
I have a warrior’s spirit, PM tells Sarawak
KUCHING: Prime Minister Datuk
Seri Najib Razak reiterated yesterday
that he will not step down and will
fight harder, telling a huge crowd in
Sarawak that he should not be underestimated.
In the Bornean state for a working visit, Najib said he has a “warrior
spirit” and will work harder, promising to solve all problems facing the
country, including debts of stateowned investment firm 1Malaysia
Development Bhd (1MDB).
Najib was speaking at a rally held
at Stadium Perpaduan. “I will continue to be your prime minister,”
he said, reminding the people not
to be deceived by his “diplomatic”
demeanour. “I have the warrior’s
blood in me and I will continue
to fight and work on the agenda
to develop the state that has not
been fulfilled,” he told thousands
of flag-waving Barisan Nasional
supporters in the indoor stadium.
High on the agenda, he said, is
the Pan-Borneo Highway. “Adenan
tells me he does not just want a
highway. He wants a super highway,
with no toll and no traffic lights from
Lundu to Lawas. There’ll be no toll,
no traffic lights. You’ll get your super
highway. That’s my promise to you.”
He said proposed traffic light
junctions could be redesigned and
replaced with underpasses or other
Najib (right) receiving a scroll containing an oath of loyalty from Adenan during the
rally at Stadium Perpaduan Negeri Sarawak yesterday. The prime minister’s wife Datin
Seri Rosmah Mansor (extreme right) is seen applauding. Photo by Bernama
appropriate designs. “The people of
Sarawak deserve this world-class
super highway.” The upgrading of
the Pan-Borneo Highway from two
lanes to four lanes is estimated to
cost RM15 billion.
But the prime minister said the
promise can only be fulfilled if the
people return the BN to power in the
coming state election and the general
election after that.
Najib also said Putrajaya has
agreed to accede to Sarawak’s re-
quest for greater autonomy in administering the state, describing it
as “devolution of power”. He said
the state and Putrajaya are now in
negotiations over the powers that
can be handed down. He added that
there should not be any reason why
Putrajaya or federal government
agencies should have parallel decision-making powers with the state.
“If the state can decide, why
should Putrajaya or federal
agencies have parallel powers
of decision-making?”
Earlier, Adenan disclosed that
the state had been in negotiations
over the transfer of powers. “We
are negotiating what powers could
be handed back to the state government.”
The handing over of power, Adenan said, would then “give our autonomy meaning”.
Sarawak state secretary Tan Sri
Morshidi Abdul Ghani, when asked
for negotiation details, he said he
was unaware of it.
Alleged erosion of the 18-point
agreement, the list drawn up by
Sarawak proposing the terms of its
agreement to the formation of Malaysia in 1963, have long been debated in the state. Some of the points
that have been hotly debated are on
religion, the English language, Borneonisation or recruitment of more
Sabah and Sarawak-born citizens to
the federal service and education.
The agreement also states that
while the Malay language should be
the national language of the federation and English should continue to
be the official language of Sarawak
for all purposes, the alarming decline in the standard of English in
Sarawak in recent years had led to
calls for the state to take back its
power over education matters in
the state. — The Malaysian Insider
to administer the state.
“Anyway, what’s wrong with giving him the five years? He’s not
asking for 22 years,” he said, taking
a dig at Dr Mahathir, who was the
country’s longest-serving prime
minister.
“You give Adenan the support
(in the state poll) and that would
serve to give me similar support in
the next general election,” he said,
adding that Sarawak would definitely remain a fixed-deposit state
for BN. — The Malaysian Insider
MH370 search
mission to
continue
SEPANG: Transport Minister Datuk Seri Liow Tiong Lai
said efforts to locate Malaysia
Airlines flight MH370, which
went missing in March last year,
will not cease as yet. “We have
scoured almost 60,000 sq km of
the Indian Ocean and we will
increase the coverage and continue the search,” he told reporters after launching the Malindo
WiFi, Malindo Mobile and Malindomag at klia yesterday.
He said the search mission
will continue to scour up to
120,000 sq km. “At a meeting involving Australia, Malaysia and
China, we decided that when
the search had covered 60,000 sq
km, we will expand it by another
60,000 sq km,” he said. He was
commenting on an Australian
media report which quoted the
Joint Action Coordination Centre
as saying that the search area for
MH370 would not be extended.
“Well, that is not true, there
must have been a miscommunication,” he said. He said that
should there be no new leads
after searching 120,000 sq km,
Malaysia, China and Australia
will refer the matter to the experts
for further action. — Bernama
IGP: Ex-CJ’s remarks on cops ‘off the mark’
KUALA LUMPUR: Former Chief Justice Tun Mohamed Dzaiddin Abdullah’s remarks about the police force
during a forum recently were “off the
mark”, Inspector-General of Police
Tan Sri Khalid Abu Bakar said yesterday. In a statement rebutting Mohamed Dzaiddin, Khalid insisted that
there are more good cops than bad
cops in the country, and said there
are many who would be “willing to
give their lives to the nation”.
“To charge us with practicing the
unwritten rule of the blue wall of silence in protecting our own kind is
preposterous,” Khalid said.
Mohamed Dzaiddin said in a forum recently that the police’s indifference to the rule of law is the cause of
deaths in custody in Malaysia. He also
presided over a Royal Commission
of Inquiry on Police Reform in 2004,
which recommended the setting up
of the Independent Police Complaints
and Misconduct Commission (IPCMC), one that has not been followed
by the police to date.
During his keynote address at the
forum titled “Rogue cops: workable
solutions — police. Accountability
in Malaysia”, Dzaiddin said the lack
of training and understanding contributed directly to police’s lack of
regard for life, liberty and rule of law.
He added that a comprehensive and
widespread reform had to take place
to achieve zero-tolerance towards
deaths in police custody, stressing
the need for the government and
civil society to work together.
Khalid, in his response, said that
Mohamed Dzaiddin’s generalisation
that the police are an institution that
thinks of itself as being above the law
was “uncalled for”. “Firstly, we have
never considered ourselves to be
above the law. We view ourselves as
mere enforcers of the law, who are at
the same time, subject to the same
law,” Khalid said. He said that the
force does not deny the existence of
a handful of “black sheep” but added that they form only “a minuscule
portion” of the police force. “It cannot, by any stretch of the imagination,
be termed as ‘institutional’,” he said.
Khalid also said that while many of
Mohamed Dzaiddin’s thoughts warranted introspection by the police, it
would also need to “point out flaws”
in his arguments for the sake of the
force’s good name. “Our main concern is that, there were times when
(Mohamed) Dzaiddin was ‘off the
mark’ in his speech,” he said.
One of those was Mohamed
Dzaiddin’s remark that the police’s
current attitude towards the rule of
law is one of indifference, to which
Khalid said the police are being
“harshly judged”.
“We would like (Mohamed)
Dzaiddin and those with kindred
minds, to know that our training
modules provide for the basic understanding of human rights and
fundamental rights as enshrined in
the Federal Constitution.”
On the concern raised by Mohamed Dzaiddin on custodial deaths,
Khalid went on to highlight medical
reports which state that police officers
were only linked to one death out
of 51 cases that happened between
2010 and 2014. Khalid said the police
have also embarked on numerous
initiatives to reform the force, and
welcome efforts from all quarters to
help them achieve the goal.
“But criticism that tends to generalise [about] us as an organisation
lacking in integrity and honour, is
tantamount to a profiling that could
stigmatise the force as a corrupt institution.” — The Malaysian Insider
16 C O M M E N T
Reform FIFA from the bottom
To make the organisation more accountable and less corrupt
BY L EONI D B ERSHIDSKY
N
ow Fédération Internationale de Football Association’s
(FIFA) Sepp Blatter era is over, the
governing body of
global football has the chance to
reform itself so that fair play applies to the game off, as well as on
the pitch. My colleague Mark Gilbert has proposed turning FIFA
into a public company and I have
advocated auctioning the status
of World Cup host nation, but for
now at least, such radical changes
are unlikely.
So what might plausibly be done
to make this not-for-profit organisation more accountable and less
corrupt, as it continues to control a
large portion of revenues from the
world’s most popular sport?
Experts have been trying to
answer that question for years, as
scandal after scandal rocked FIFA.
For example, in 2011, the Swiss
corruption expert, Basel University
professor Mark Pieth, wrote up his
suggestions for improving FIFA’s
governance.
Pieth may have been paid for the
work by FIFA, but his recommendations, never fully implemented
and reiterated in a 2014 Independent Governance Committee report,
are still worthy of consideration. So
are those of University of Colora-
do’s Roger Pielke, made in a paper
published in the journal Sport Management Review in 2013.
When Blatter said last week
he had been fighting “for the last
three or four years against all the
corruption” at FIFA, he may have
been referring to implementation
of the least effective part of Pieth’s
proposals.
FIFA formed a number of committees that had “ethics,” “audit”
and “independent governance”
in their names. Such structures, of
course, can only serve their purpose
in an organisation that isn’t fundamentally corrupt, which FIFA is.
The proposals Pieth made that
haven’t been implemented would
be more meaningful, including age
and term limits for top FIFA officials
and the addition of independent
members to the organisation’s executive committee. These ideas got
no backing from FIFA’s leaders or
its general membership — and that
last point is essential.
FIFA’s biggest corruption-perpetuating problem lies in its structure. The 209 member associations
— the bodies that run soccer in all
the world’s countries and territories
— all get to choose their FIFA representatives and all have equal voting power in the FIFA congress, the
organisation’s “legislative branch.”
They are also members of six regional confederations, which form
the executive committee. The cor-
Blatter was re-elected after news of the
US corruption case broke, and is only
getting replaced because he resigned.
Photo by Reuters
ruption begins at the national association level, which results in
negative selection: Only those most
gifted at corruption make it to the
top of the regional associations and
then to the top of FIFA.
This rotten pyramid will be
choosing Blatter’s successor and
it’s hardly encouraging that they
re-elected Blatter after news of
the United States corruption case
broke. He’s only getting replaced
because he resigned.
FIFA’s statutes perpetuate this
situation by threatening sanctions
against member associations if
they submit to “third party influence,” primarily from governments.
State meddling generally is bad for
non-profit organisations, and no
doubt that’s the case for football,
especially in countries where the
sport is politically important [which
includes most of them].
FIFA, though, has been exercised by a different kind of government interference. In 2001,
for example, the government of
Belize in Central America told the
head of the local football federation, who had steadfastly refused
to publish the group’s accounts or
to allow competitive elections for
his post, that he could no longer
represent the nation. FIFA promptly suspended Belize from international competition.
It is just such “third-party influence” that has brought about
Blatter’s downfall. The current US
investigation, which resulted in
the indictment of nine current and
former FIFA executives, centred on
Concacaf, the Miami-based Northand Central-American regional
confederation, of which the US is
a member.
I suspect it would have been easier to conduct the investigation had
Concacaf not been in the Cayman
Islands, and had it not been incorporated as a non-profit company
in the Bahamas. As Pielke wrote
in his paper:
Domestic governments have no
formal mechanism to directly sanction FIFA for any cause. The only
exception is the Swiss government
under whose laws FIFA is incorporated. Experience to date suggests
that such a direct legal supervision
necessarily focuses on very narrow
issues of Swiss law, and even then,
little actual supervision of FIFA has
been exercised.
FIFA member associations and
regional confederations need tighter government supervision in their
home countries. Their statutes and
governance practices must be reconsidered by every state that’s interested in the development of football.
Once that happens, the soccer
associations will be only as corrupt
as the countries in which they operate, which will probably make the
organisation as a whole less corrupt.
Any truly reform-minded FIFA
leadership would turn a blind eye
to “third party interference” for a
while, encouraging greater scrutiny
by governments. It would also make
sure the regional confederations are
reincorporated in the least corruption-friendly jurisdictions, where
investigations like the US one would
be easiest. — Bloomberg View
Leonid Bershidsky is a Bloomberg
View columnist.
Japan’s maverick billionaire bets big abroad
BY WILLIAM PESEK
MASAYOSHI Son, the billionaire
founder and chief executive officer (CEO) of SoftBank, Japan’s
telecom and Internet giant, is
one of his country’s few mavericks. When his company placed a
US$20 million (RM74.2 million)
bet 15 years ago on Alibaba, the
Chinese e-commerce company,
plenty of peers considered it too
risky a venture.
Since then, Son’s investment has
paid out more than US$70 billion,
strengthening SoftBank and making
him Japan’s second richest man.
As Son begins scouring the globe
for the next big thing — he recently
made an investment in Snapdeal,
India’s leading web marketplace —
corporate Japan should seriously
consider emulating his gutsy approach to doing business.
When Son invested in Alibaba,
he was motivated not just by China’s
potential, but also Japan’s ageing
and shrinking market. Son realised
something all too many of his peers
still don’t: Japanese deflation isn’t
some passing fad, but a demographic phenomenon the Bank of Japan
can’t reverse by weakening the yen.
Son has matched his strategic sense with tactical ingenuity.
When he pulled off a US$16 billion deal to buy Vodafone in 2006,
it was financed by Japan’s largest
asset-backed loan at the time.
And he turned even more heads
in 2013 with his US$22 billion purchase of Sprint Nextel. Although
Son earned his reputation as a man
who is willing to take risks, the Sprint
negotiations showed he also knew
how to avoid unnecessary ones.
Son hedged the deal by fixing
the cost of dollars needed for the
acquisition at ¥82.2 (RM2.45) each.
With the yen having plunged 30%
since then, Son’s strategy saved
shareholders billions.
Son is now searching for the
next big thing. Only time will tell if
CEO Kunal Bahl’s Snapdeal, which
SoftBank has lavished so far with
US$627 million, is it. But Son is
spreading his bets.
In December, I happened to be
in Bangkok chatting with GrabTaxi
founder Anthony Tan on the day
Son chose to take a US$250 million stake in the Southeast Asian
cab-booking service. This week,
Son invested US$1 billion in South
Korean online retailer Coupang.
There even have been rumours of
a bid for Hollywood’s DreamWorks
Animation.
Son speaking during a news conference in Tokyo on May 11. Son has been using China’s
rise to make a fortune. Photo byReuters
Many of Son’s bets have a common thread: They rely on positive
demographic trends elsewhere in
Asia. While sales of adult diaper
exceeds that of baby nappies in
Japan, much of the rest of Asia has
growing populations with rising incomes and a keen interest in using
the Internet for services, shopping
and entertainment.
ble made-in-China clothes — a
fast-growing share of them being
snapped up by the mainland’s
swelling middle class. Son, meanwhile, is still enjoying the spoils of
his company’s Alibaba wager.
Thanks to those gains, SoftBank’s
default risk recently hit a four-year
low. The price of insuring its bonds
against non-payment fell 10 basis points last month to 112, the
lowest since June 2011. SoftBank’s
stock-investment profits (about
US$81 billion) now far exceed its
net debt of US$67 billion.
And rather than sink into complacency, Son has used the Alibaba
windfall as an opportunity to look
for new targets abroad and skirt
the structural problems in Japan’s
domestic economy.
Son’s tirelessness makes him
an outlier among his peers in Japan. Although Toyota, Suntory
and Japan Post have been looking
for acquisitions in Asia’s developing markets, most other Japanese
CEO’s have been content to let
the weak yen do their work for
them by goosing their exports. —
Bloomberg View
Moreover, Son doesn’t allow
nationalist sentiment to cloud his
judgment. Although Japan’s government has been battling China’s
rise — both rhetorically and financially — the nation’s two richest
men have been using it to make
a fortune.
William Pesek is a Bloomberg News
Tadashi Yanai, purveyor of columnist. The opinions expressed
the Uniqlo brand, sells afforda- are his own.
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17
18 F E AT U R E
India’s private hospitals
go luxe for growth
Indie publishing
houses
strategise to
explore local,
global markets
BY A L I IMR A N MO H D N O O R D IN
Rolling out red carpet to lure affluent locals and tourists who seek medical treatment
BY ZEB A SI DD I QUI & ADITYA KALRA
C
inemas, Rolls-Royces
and rooms so plush
they could belong to
a five-star hotel — private hospital operators in India are all but
rolling out a red carpet to lure affluent locals and tourists to seek medical treatment at their luxe facilities.
Local hospital firms, including
Fortis Healthcare Ltd, Apollo Hospitals Enterprise Ltd and privately-owned Medanta, have built or
upgraded their facilities to tap the
top end of the private healthcare
sector, which industry body Assocham estimates would grow 20% a
year from 2013 to become a US$125
billion (RM463.75 billion) market in
two years’ time.
Overseas rivals, including Dubai-based Aster DM Healthcare and
ABV Group, are also investing in luxury healthcare in India, attracted by
strong demand for quality medical
care which, due to lower costs and a
weaker rupee, they can offer to patients at below international prices.
“The fact that you actually come
for surgery or medical treatment
would be an incidental part of the
experience,” ABV chief executive
Advet Bhambhani told Reuters.
ABV, due to open a luxury hospital in an upscale Mumbai neighbourhood within two years, plans
to provide Rolls-Royce cars to ferry
its patients. It plans to invest US$78
million and is also looking at refurbishing hotels, Bhambhani added.
An overcrowded and underfunded state healthcare system makes
private healthcare the norm for all
but the poorest of Indians.
Those wealthy enough to afford
it travel to the United States or Singapore for treatment, and these are
the patients private hospital operators want to keep at home by offering top-notch facilities and Indian
doctors who have worked or trained
abroad.
At the 450-bed Fortis Memorial
Hospital near New Delhi, for example,
there is an in-house cinema lounge
and a food court. And the rooms at
Aster Medcity’s 575-bed hospital in
Kerala have warm lighting and hardwood floors intended to give them the
feel of a luxury hotel room.
“We feel that in five years’ time,
our Aster Medcity and other hospitals that we will set up will enable us to effectively compete with
Singapore,” chief executive Harish
Pillai said.
The hospital operators are also
courting medical tourists — visitors
who combine surgical procedures
with sightseeing, or who let value
for money determine where they
seek treatment.
The medical tourism sector is
expected to grow to US$10.3 billion in 2020, from US$2.8 billion
now, consultancy PricewaterhouseCoopers (PwC) said. A 2014 study
by consultants KPMG ranks India
as the third-top Asian destination
for medical tourists after Thailand
and Singapore, with 25% growth a
year, outstripping the 16% growth
in Thailand.
“Medical tourists have a lot of
expectations now. The quality is a
very critical factor,” said Prashant
Hedge, group head of marketing at
Wockhardt Hospitals, a unit of one
of India’s largest pharmaceutical
firms Wockhardt Ltd.
Some 1.2 million medical tourists are expected to visit India by the
end of this year, and that number is
likely to double by 2020, according
to PwC.
Popular treatments for these
tourists include bone marrow
transplants, cardiac bypass surgery, eye surgery and hip replacements, KPMG said, and the costs
are below rival destinations. A hip
replacement, for example, can cost
US$7,000 in India, about US$12,000
in both Singapore and Thailand,
and more than US$40,000 in the
US. — Reuters
World Cup’s competition and corruption
BY EB EN N OVY- W ILLIAM S
NO sporting event is more popular
than the World Cup. But long before
nations compete on the field, they
vie for the prestige of hosting the
spectacle to crown the best team in
what most of the world calls football and America calls soccer. That
competition can spell trouble. Corruption scandals plague the sport
and graft was blamed for inflating
costs of the tournament in Brazil.
It’s already an issue dogging future
tournaments in Russia and Qatar,
the chosen host in 2022. The indictments of international football
officials in May in a US government
graft investigation has given new
context to a question as old as the
event itself: Is corruption indeli- resigned in December, after saying
bly staining the crown jewel of the a summary of his report released
world’s game?
by FIFA wasn’t accurate. Russia’s
2018 tournament could become
The situation
a flashpoint like the 2014 Sochi
Swiss police raided a Zurich lux- Olympics, which featured concerns
ury hotel on May 27, after the US about graft and civil rights, and was
Justice Department accused sen- followed by Russia’s annexation of
ior officials at FIFA of racketeer- part of Ukraine. There were calls
ing, fraud and money-laundering to strip Qatar of the 2022 event,
conspiracies. The alleged crimes after claims that it paid bribes to
included bribes and kickbacks, and officials who voted for the tiny deSwitzerland is probing whether an- sert emirate. Qatar was cleared by
yone broke laws in awarding World the FIFA investigation. The counCup tournaments to Russia and try plans to lavish US$200 billion
Qatar. FIFA had previously come (RM742 billion) on air-conditioned
under fire, after its own investiga- stadiums and related infrastruction into allegations of corruption ture. In March, FIFA said Qatar’s
in its host country selection process tournament will be shortened and
found that there wasn’t enough ev- moved to the winter to avoid the
idence of wrongdoing to hold the searing heat, upsetting the provote again. The leader of that probe, fessional league schedule. Sepp
former US attorney Michael Garcia Blatter, the resigned head of FIFA,
benefit to hosting the World Cup.
South Africa, for example, recouped
just a 10th of the money it spent on
stadiums and infrastructure for the
2010 tournament, the first in Africa,
though it provided a much-needed
upgrade to the transport system. Allegations about the award to Qatar,
the first in the Middle East, began
to surface soon after it beat competition from the United States,
Australia, South Korea and Japan
in 2010. While Canada, Colombia,
Mexico and the US are considering
making bids for the 2026 tournament, the US doesn’t plan to submit
an offer unless rules are changed
to provide more transparency in
the voting.
admitted that the decision to host The argument
the World Cup in Qatar’s summer Spreading the World Cup around
the globe drives the sport’s developwas “a mistake”.
ment, and Blatter said pushing into
The background
“new lands” creates an opportuniDisputes over where to hold the ty for countries to showcase their
World Cup have afflicted the event culture on an international stage.
since it was first played in 1930, Critics of the selection process cited
when the selection of Uruguay re- both institutional and philosophsulted in only four European teams ical problems. Some highlighted
making the three-week trip for the the money-losing proposition for
tournament. Eight years later, Uru- developing nations — such as Braguay and Argentina boycotted the zil — that might spend the fund
1938 competition because it was in other ways. Others said the segiven to Europe for the second lection process is made a farce by
straight time. FIFA experimented corruption, a problem that taints
with a rotation around the various many international sporting events,
continents; now it will take bids including the Olympics. While FIFA
only from those continents that said it wants to root out the probhaven’t hosted either of the last lems and had made changes to its
two tournaments. Despite claims corporate governance, critics said
by politicians, recent history shows the moves haven’t gone far enough.
there is little — if any — financial — Bloomberg
THE names Fixi, DuBook and
Terfaktab may be foreign to
some, but these independent
publishing companies already
have a strong presence among
the younger generation in Malaysia.
These independent or indie
publishing houses started with
a small capital and used their
friends as a marketing platform,
quite different from bigger industry players who are blessed with bigger funds and networking.
Wide local market
Fixi founder Amir Muhammad
said Malaysians do not realise
how lively book fairs in the country are.
In Malaysia, even small publishers manage to grab shelf
space in major bookshops like
MPH. Mutalib Uthman, chief
executive officer of DuBook
Press Sdn Bhd in Bangi, Selangor, said being in indie publishing requires them to work
independently, especially on
book sales.
“We cannot depend on bookshops because taking 55% of the
profits is quite high,” he said,
adding that authors have been
encouraged to sell their own
products.
Role of social media
Social media serves as an important platform for indie book
publishers.
“We interact with our customers and build an image of
DuBook through social media,”
Mutalib explained.
Meanwhile, Amir believes
that the best marketing technique is by word of mouth.
“Books are personal. People
don’t buy them because of an
advertisement or billboard, but
they will rarely refuse a recommendation from a friend,” he
said.
Exploring the global
market
The international landscape of
books has allowed publishing
houses to meet the demands of
the content market worldwide.
Amir said Fixi had sold publishing rights of two of its books
to an Indonesian company, while
the sky’s the limit for DuBook.
For Mutalib, DuBook may
venture out as a recording company or acquire an airline company, but strengthening the
brand is of utmost priority.
On the other hand, Terfaktab
Media managing director Syazrul
Aqram said Terfaktab believes
that more writers with various
backgrounds would flood the
industry. “Many out there want
to write. We need to find them, so
that we can give the public more
works with quality,” he said. —
Bernama
W O R L D B U S I N E S S 19
US agencies probe big banks on China nepotism
BY LU C OL I NGA
NEW YORK: US investigations into
the hiring by large banks of the children of powerful Chinese officials
are heating up, people familiar with
the probes told AFP.
The US Securities and Exchange
Commission (SEC) has subpoenaed JPMorgan Chase for its communications with some 30 senior
Chinese government officials, according to the sources.
At least six other banks have
received written demands about
dozens of hires, according to these
people and bank securities filings:
Citigroup, Credit Suisse, Deutsche
Kaisa creditor
says single-B
China property
debt cheap
BY B EI HU
HONG KONG: Benjamin Fuchs
is unfazed by being caught in the
first dollar bond default of a Chinese developer.
The chief investment officer of
BFAM Partners (Hong Kong), a
hedge-fund firm overseeing US$1.2
billion (RM4.45 billion) of assets,
said offshore debt of Chinese property developers with a single-B
credit rating was “extremely cheap”
and the default risk exaggerated.
“That’s precisely where you
should be investing,” he said on
Wednesday at the Sohn Conference Hong Kong presented by
the Karen Leung Foundation, a
gathering where top Asia-focused
hedge-fund managers share ideas
and raise money to combat gynaecological cancers.
BFAM is among eight remaining money managers sitting on the
offshore bondholder committee
of Kaisa Group Holdings Ltd. The
Shenzhen-based company became
the first Chinese developer to default on US-dollar debt in April,
sending shock waves across the
high-yield bond market.
BFAM, which traces its roots to
proprietary trading desks at Lehman Brothers Holdings Inc and
Nomura Holdings Inc, holds single-B rated offshore debt of various
publicly listed Chinese developers, which Fuchs describes as “the
weakest among the strongest”, with
high yields and low default rates.
Such bonds are trading at an
average yield of about 10%, attractive even accounting for the
risk, he said. Even if a cumulative
30% of companies held by investors default on their bonds and
no money is recovered, owners
of a diversified basket of single-B
Chinese developer debt will be
able to break even.
Defaults on that scale are unlikely as that figure is four times the
losses during the global financial
crisis, when the three-year cumulative single-B debt default rate
reached 17% with a 45% recovery
rate, Fuchs added, citing rating
company data. — Bloomberg
Bank, Goldman Sachs, Morgan
Stanley and UBS.
The US Department of Justice
and the Federal Reserve Bank of
New York are also involved in the
investigations.
The banks are suspected of
having hired the well-connected
youth in exchange for other business in China, including with government-controlled corporations.
Such a quid pro quo could run afoul
of the Foreign Corrupt Practices
Act, a US anti-bribery law.
These probes are a lingering
cloud over JPMorgan, which has
paid billions of dollars in penalties over the last two years to settle
probes into its bundling of mortgage securities, its foreign exchange
trades and other matters. The investigation centres on a JPMorgan
hiring initiative between 2006 and
2013 informally known as the “Sons
and Daughters” programme.
Regulators have been troubled
by the 2007 recruitment of Gao
Jue, considered by bank officials
the “worst candidate”, according to
sources. Gao is the son of Chinese
Commerce Minister Gao Hucheng,
who has authority to approve or
block mergers.
The SEC subpoena includes JPMorgan correspondence with Wang
Qishan, who heads the Chinese
government’s anti-corruption campaign, sources said. The SEC has
also demanded JPMorgan provide
a list of any Chinese government
officials who have recommended
so-called “princelings”, the children
of Chinese officials. A JPMorgan
spokesman said the bank is cooperating with the probes.
Credit Suisse from 1999 to 2001
employed Wen Ruchun, the daughter of former Chinese prime minister
Wen Jiabao. Other well-connected
Chinese youth hired by big Western
banks include the granddaughter
of former Chinese president Jiang
Zemin, Jiang Zhicheng, who worked
at Goldman Sachs. — AFP
Alibaba movie unit
joins share-sale fever
Greater China firms seeking to take advantage of surging prices
BY HW EE ANN TAN & FOX HU
HONG KONG: Count billionaire
Jack Ma’s Alibaba Pictures Group
Ltd among the growing number
of companies in the Greater China region seeking to raise money
through the stock market to take
advantage of surging prices.
The unit of Alibaba Group Holding Ltd said yesterday it plans to
raise HK$12.2 billion (RM5.83 billion) by selling new shares in Hong
Kong to help finance potential acquisitions. The sale of 4.2 billion
shares will increase the number
outstanding by 20% — diluting existing ones — leading the shares to
fall as much as 11% in early Hong
Kong trading yesterday.
Alibaba’s offering adds to the
US$21.9 billion (RM81.25 billion)
raised through share sales, excluding initial public offerings (IPOs),
in Hong Kong this year. In mainland China, the stock-market rally
has spurred a frenzy of share sales
with more than 380 companies announcing deals exceeding US$130
billion in 2015.
It’s been a particularly lucrative year for holders of the movie
company. Alibaba Pictures had
IN BRIEF
China May data to show
economy steadying
BEIJING: A deluge of Chinese
data due next week may show
some signs of steadying in the
world’s second-largest economy
thanks to stimulus measures,
but analysts say more support
is needed to counter headwinds
from a property downturn and
patchy exports. Industrial output and retail sales are forecast
to have expanded at a slightly
faster pace in May, a Reuters poll
of 22 economists showed, but
factory deflation is seen persisting while uneven global demand probably remained a drag
on exports. “Thanks to escalating policy support, we expect
May’s economic data to show
another marginal improvement
in production activity, though
demand indicators may have
remained lacklustre,” economists at UBS said in a research
note. — Reuters
‘Step up anti-money
laundering efforts’
HONG KONG: Hong Kong’s
banking regulator has said that
banks in the city need to step
up anti-money laundering efforts, and has warned it would
not hesitate to sanction lapses
in detecting dirty money in the
wake of the FIFA bribery scandal. Stewart Mcglynn, head of
the banking supervision, anti-money laundering and financial crime risk division at the
Hong Kong Monetary Authority, said in a statement yesterday
that it had “found that meeting
anti-money laundering ... expectations, particularly around
higher risk customers remains
a challenge for some banks.
There should be no doubt on
the part of the industry or the
public that where they do not,
we will take action.” — Reuters
Singapore is world’s 7th
most-visited destination
A BYD E6 electric car on display at an auto expo. BYD Co plans to raise up to 15 billion
yuan selling new shares in China. Photo by Reuters
surged more than 160% this year
before today, making it the fifthbest performer on the Hang Seng
Composite Index.
Separately, electric carmaker
BYD Co said on Wednesday that it
plans to raise as much as 15 billion
yuan (RM8.97 billion) selling new
shares in China. Other companies
that have announced share sales
this week in China and Hong Kong
include Kingsoft Corp, Zhongrun
Resources Investment Corp and
CPT Technology Group Co.
And those exclude IPOs, a market that’s just as hot if not hotter. For
example, China National Nuclear
Power Co’s plan to raise US$2 billion drew total bids for an amount
almost equal to the entire annual
economic output of Hong Kong.
— Bloomberg
SINGAPORE: Asian cities dominated the list of top 10 global
destinations index, with Singapore being the seventh most
visited city, ahead of Seoul and
Hong Kong but lagging way behind second-placed Bangkok,
The Straits Times reported. The
annual index released yesterday
ranked Singapore second in the
list of projected visitor arrivals
in the region with 11.88 million
people expected to arrive in
2015, a marginal increase of 3%
from last year. They are expected to spend a projected US$14.7
billion (RM54.54 million).
Obama says China hints at joining TPP
Aussie banks’ response
to rate probe ‘appalling’
WASHINGTON: US President Barack Obama on Wednesday suggested that China could eventually
join a nascent trans-Pacific trade
pact, raising the prospect of an accord spanning much of the globe.
With talks nearing completion
for the 12-member Trans-Pacific
Partnership, Obama hinted that
the leaders of the world’s second-largest economy could jump
on board.
“They’ve already started put-
SYDNEY: Australia’s corporate
watchdog has described the
behaviour of the country’s biggest banks towards an investigation into possible rigging of
the benchmark interest rate
as “absolutely appalling” and
demanded more cooperation.
The Australian Securities and
Investments Commission is
examining trading practices
from 2007 to 2013 in interbank
lending, known as the bank bill
swap rate market. — AFP
ting out feelers about the possibilities of them participating at
some point,” he told Marketplace,
a radio programme.
Although China’s membership
does not appear to be imminent,
Obama’s comments raise the prospect that the trans-Pacific deal
could be a building block for a
broader agreement.
The deal includes large economies like Japan, South Korea, Vietnam, Canada and Australia and
a similar US-European Union accord is also being discussed. But
major hurdles remain, including
for Obama at home.
The White House is currently
struggling to gather enough votes
in Congress to grant Obama trade
negotiating powers.
The prospect of China one day
joining is likely to exacerbate concerns among Obama’s own Democrats about labour standards and
US jobs moving overseas. — AFP
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pro
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Let’s not forget the good old sports car that started it all for Porsche
BY JU ST I N HA RP ER
I
t’s a tough job test-driving a high-performance sports car that comes as a
convertible with a powerful 3.4-litre engine but I guess someone has
to do it. I always get excited when
Porsche brings out a new model or
variant, which seems to be quite regularly
these days.
While its Macans, Panameras and
Cayennes may be enjoying a higher profile
and pushing up sales these days, let’s not
forget the good old sports cars that put the
brand on the map.
In Singapore, there are more than 20
different types of 911s available currently, while the 981 Boxster has four variants.
The latest Boxster is the GTS, essentially a
tweaked Boxster S.
I’m not complaining though, as it gives me
an excuse to get behind the wheel of another
Porsche. But how does it drive compared with
other Boxsters?
For starters, the GTS has the same 3,436cc,
six-cylinder engine as the S; the difference
is that it is now tuned to produce 15bhp and
10Nm more power/torque at 330bhp and
370Nm. But it is not simply a case of beefing
up the engine to make it go faster.
This Boxster GTS feels smoother, more
Porsche Boxster GTS
S$333,988 (RM918,981),
including certificate of entitlement
Engine: 3,436cc, V6
Power/torque: 325bhp/370Nm
Fuel consumption: 8.2l/100km
0 to 100kph: 4.9 seconds
Top speed: 279kph
driveable, noisier and cooler to drive. Even
the roof seems to fold up and down quicker
and more smoothly. In fact, that took just
nine seconds and, crucially, can be operated at speeds of up to 50kph. Handy, if it
suddenly starts to rain while you’re on the
motorway. It soon dawned on me that this
was a very accomplished, very comfortable and very powerful Porsche. The drive
grew better and better with every minute
in the cockpit.
Could it be the drop-down roof, the
retractable fin, the turbo wheels or the
eye-catching white paint that had something
to do with my enjoyment and the coolness
factor? I’m not sure, but the Boxster GTS felt
so natural to drive.
There was hardly any effort needed on
my part, but all the time, the car felt ultraresponsive to my touches and turns. As
usual, the super-slick seven-speed PDK
transmission helped the experience, conveying power to the rear wheels with ease.
In heavy traffic, you can just drop the top
down and let people admire the coolness
of the vehicle as you creep along. And then
when you get onto the expressway you can
really open the engine up and feel the force
of all that power and German engineering.
With most sports cars, there is a real temptation to get above 100kph to feel the car
come into its own. I didn’t need to go so fast
to appreciate the performance of the Boxster
GTS. I was regularly doing below 90kph, but
it felt fast enough for me — perhaps because
I had the hood down and wind accentuates
your speed. This was a good thing as it means
you are less likely to get a speeding ticket, an
occupational hazard when driving a sports
car in Singapore.
On a hot day, you may be tempted to keep
the roof up and sit in an air-conditioned
cabin, but that would be an offence in a
convertible. Thankfully, the air conditioning
is powerful enough to keep you cool even
with the sun beating down on you. Plus, the
breeze helps, even at low speeds. I spent
most of the drive in Sport mode, which gives
a raspier noise to the exhaust and makes the
car that little bit punchier when you put your
foot on the gas pedal.
The GTS comes with a Sport Chrono package that includes an additional Sport Plus
drive mode, Launch Control and active suspension mounts.
Appearance-wise, the Boxster GTS is
the definition of what a roadworthy sports
car should look like. It has a new front with
modified spoiler lip, which makes the car
slightly longer, along with larger air intakes,
smoked bi-xenon headlights and tail lights.
The black-finish tailpipes and a black lower
rear panel give it a slightly menacing look.
And if you opt for the GTS’ larger 20in wheels,
then you have one pumped-up, bad-boy
Porsche at your disposal.
Maybe it’s a sign of age or the fact I had
been playing football the night before, but
I found the GTS very low to the ground and
struggled a little to get in and out smoothly. Sadly, I think it had more to do with my
advancing years.
Given that the GTS is one of four Boxsters
available, you now have it even tougher
picking the right one for yourself. There was
a time when all I wanted was a 911 as my
mid-life crisis sports car, but the 981 Boxster
has opened my eyes. — The Edge Singapore
Justin Harper is a freelance journalist with
a passion for all things fast.
Ho
len
to a
dim
FO CU S 21
Watchmaker MB&F hits lower price point for anniversary
BY S T EPH EN PU LVI RENT
TO celebrate 10 years of making absolutely
crazy watches, niche brand MB&F is releasing Horological Machine X (HMX for short).
Instead of making its most complicated
watch to date, MB&F went in the opposite
direction and made its most affordable watch
yet. At US$30,000 (RM111,300) it’s a fitting
birthday present for the world’s devotees of
haute horology.
The HMX looks like something from the
future, but reading the time is extremely
easy. There are two rotating discs, one for
the hours that jumps instantaneously and
another that spins slowly to show the minutes. They are horizontal, but a pair of lenses
projects them onto the vertical plane, and
you just read the time as on a digital clock.
The colour accents come in four different
colours — blue, red, green, and black — to
suit different tastes.
With the futuristic HMX, the
brand is celebrating 10 years
by becoming more accessible.
Photos by Bloomberg
Telling the time is about
as easy as it gets.
If you’re an MB&F fan, you’ve probably already noticed that the HMX looks a little
familiar. It closely resembles the HM5, nicknamed On The Road — both are inspired
by 1970s wedge cars. The HMX is a little more rounded and has that domed crystal
on top instead of the fins on the HM5. But while the inspiration is the same, the mechanics and construction are radically different.
cklus
us-
The HMX is MB&F’s 10th
anniversary watch.
S is
rts
ith
car
kes,
hts.
wer
ok.
els,
boy
The movement has
MB&F’s anniversary
motto engraved on
the rotor.
The movement’s engine styling is more than just decoration; those little caps on the
engine block bridges can be removed by a watchmaker, allowing him to oil and lubricate the bearings that hold the time discs. Underneath is a full, disc-shaped rotor
made from 22-karat red gold that winds the watch. To optimise value, MB&F chose to
use a gear train from movement maker Sellita to power the two-disc module, instead
of developing something new entirely in-house. Snobs might scoff, but it’s a conscious
decision and for the right reason — to keep price down and the watch within reach
for more people.
The large, curved
crystal lets you look
at the movement
inside.
had
but
nd
thmy
ers
her
was
my
ter
ore
ith
Holding all this is the steel-and-titanium case, with the dramatically curved sapphire
lens on top. This lets you admire the movement, but more importantly, it’s critical
to allowing in enough light to make the projections of the time discs visible, even in
dim rooms. The watch isn’t small, but the materials keep it lightweight and wearable.
For a brand known as a boundary pusher to rein things in and do something restrained
and customer-focused like this for its anniversary is refreshing. MB&F could easily have
made a handful of million-dollar pieces, with high margins, and sold every single one of
them. But not only is this a treat for dedicated collectors; it also offers a way into the brand’s
history for those who have been watching from the sidelines for the past decade. I like it.
The HMX is limited to 20 numbered pieces in each of the four colours (for a total of
80, a high number for MB&F), all priced at US$30,000. — Bloomberg
22 FO CU S
FR I
01
Breathing life into
London’s ghost
tube stations
These could be used for event spaces to art galleries to bars
BY TOM H A L L
BENEATH the streets of London
lie dozens of Underground stations
that have fallen out of use. While
they may not have seen passengers
for decades, they may now have
a new lease on life. Transport for
London is looking at reviving these
“ghost stations”, with Down Street
in Mayfair the first. They could be
used for anything ranging from
event spaces to art galleries to bars.
04.
02
01. Transport for London (TfL) owns
about 5,700 acres (2,308ha) of land
across London including plots
attached to railways, highways and
underground stations. It plans to
raise £1.1 billion (RM6.25 billion)
from property developments over
the next 10 years. Photos by Ben
Stansall/AFP via Getty Images
05.
06.
02. TfL is teaming up with developers as
it tries to generate long-term income
from building on its land and leasing
the completed properties.
03. TfL received more than 50
applications in March from venture
partners interested in developing
their projects.
07.
03
08.
FO CU S 23
04
05
06
07
01
02
04. As many as 10 million sq ft of
offices, homes and other properties
could be developed in the first
phase of its building programme.
05. TfL is looking for joint-venture
partners to develop 40 plots of
land as it seeks to fund additional
infrastructure.
06. Down Street station, located in
London’s Mayfair district, opened
in 1907 and closed in 1932 due to
lack of passenger numbers.
07. During World War II the station
was used by Prime Minister
Winston Churchill and his Cabinet
for a time until the Cabinet war
rooms underground complex was
completed.
03
08. The facade of the station today.
08
24 W O R L D B U S I N E S S
Opec changes approach to US shale oil
BY C A ROL I NE VARIN
VIENNA: The Organisation of the
Petroleum Exporting Countries
(Opec) cartel, which meets on
output this week, appears to have
changed its approach to US shale
oil — which it now welcomes as
part of the global energy landscape.
“Shale oil is a phenomenon that
will stay with us. We have to live together and find a balance,” Opec
secretary-general Abdullah El-Badri
told delegates at a seminar in Vienna
on Wednesday, ahead of the cartel’s
scheduled production meeting today.
Opec’s decision not to limit out-
Nippon Life eyes
NAB insurance
business
TOKYO/SYDNEY: Japan’s
Nippon Life Insurance Co is
in preliminary discussions to
buy National Australia Bank
(NAB) Ltd’s insurance business
for as much as US$2.4 billion
(RM8.90 billion), the Nikkei
business daily reported yesterday.
But a source with knowledge
of the matter told Reuters that
Nippon Life’s interest had not advanced that far, saying that it was
just having a look at the assets.
NAB has underperformed
rivals in recent years, held back
by its troubled UK business
and new chief executive officer
Andrew Thorburn has been
keen to speed up asset sales so
the bank can focus on its core
domestic and New Zealand
franchises.
New global capital rules
have also put further pressure
on banks, forcing them to consider the disposal of non-core
assets and scale back capital
intensive businesses.
NAB’s life insurance business is likely to fetch between
¥200 billion (RM5.93 billion)
and ¥300 billion and that if a
deal was completed, it would
be Nippon Life’s biggest overseas acquisition. — Reuters
put in November was perceived by
market traders as a tactical attempt
to maintain its share of a market
flooded by a vast supply glut —
partly caused by US shale.
Over the past five years, Opec
has shrugged off talk that the US
shale energy revolution would
weaken the influence of the cartel,
whose 12 member nations pump
30% of the world’s crude.
The United States has since significantly ramped up its production of oil
extracted from hard-to-reach shale,
or sedimentary rock, now producing
five million barrels of oil per day and
far less dependent on imports from
the crude-rich Middle East.
“We’re not thinking or imagining
or dreaming that shale oil producers are not going to be there. We
want them to be,” said United Arab
Emirates Energy Minister Suhail
al-Mazrouei.
“They are a very good balance
for the market. We want everyone to
share the responsibility of balancing
the market,” he told the audience at
the seminar, which included chief
executives from energy majors BP,
Chevron, Eni, ExxonMobil and Total.
World oil prices tumbled between June 2014 and January on
the back of faltering global energy
demand and worsening oversupply
— which many observers regard as
being fuelled by booming US shale
oil exploration and production.
Opec opted to keep its official
production ceiling at 30 million barrels per day in November, a strategy backed by kingpin Saudi Arabia
aimed at boosting demand, lowering prices and hurting non-Opec
output — particularly US shale producers that have far higher costs.
As a result, the global oil market
collapsed further to strike six-year low
points in late January — but they have
since recovered to stand at around
US$60 (RM222.60) per barrel. — AFP
Saudi economy
slowing down
Drop in oil prices starting to hurt kingdom
BY DEEM A ALM AS HABI
RIYADH: Saudi Arabia’s oil-fuelled
economic boom is showing signs of
losing steam.
Official data released last week
showed demand for loans growing
at the slowest pace since 2011 and
the kingdom’s currency reserves
plunging for a third month in a row.
An index reflecting the performance
of the non-oil private economy fell
to the lowest level in a year in May.
The numbers signal that the drop
in oil prices is starting to hurt the biggest Arab economy at a time when
the kingdom is undergoing sweeping
political changes at home and waging a regional war. The government is
moving ahead with spending plans
that will widen the budget deficit to
20% of economic output, the International Monetary Fund (IMF) says,
fuelling speculation it will tap debt
markets to plug the gap.
Bank credit to private businesses
and consumers grew 9.5% in April,
the slowest pace in four years. ATM
withdrawals, which reflect consumer
spending, dropped, indicating that
the impact of a two-month bonus
to public-sector employees ordered
earlier this year has faded.
Saudi Arabia is leading a bombing campaign against Yemeni Shiite rebels it says are backed by rival Iran. At home, King Salman
has made sweeping leadership
changes since he took power in
January. The government is also
allowing foreigners direct access
to the stock market for the first
time starting this month.
Gross domestic product (GDP)
is set to expand 2.5% this year, the
slowest pace since 2009, according
to economists’ estimates on Bloomberg. Non-oil GDP growth, which averaged 7% between 2000 and 2011,
will slow to 4.5% in 2015, the IMF
predicts.
For now, the government is fi-
nancing its budget shortfall by drawing down its deposits at the central bank, accelerating the decline
in currency reserves. Economists
and the IMF expect authorities to
plug part of the deficit through the
bond market.
“Saudi Arabia has more than
enough space to issue debt,” said
Raza Agha, chief Middle East and
Africa economist at VTB Capital plc
in London.
Bond sales “will likely be a major
source of financing if lower oil prices
sustain”, he said by email.
Tim Callen, the IMF Saudi mission chief, said Saudi banks have
plenty of funds “so I would imagine
there’s a good demand for government debt in the local markets”.
Still, the Washington-based fund
says Saudi Arabia will need “a sizable fiscal policy consolidation”
after years of government spending to support economic growth.
— Bloomberg
US hedge fund challenges Samsung Group’s restructuring
Kun-hee (centre)
fell ill last year,
paving the way for
a transfer of power
at South Korea’s
biggest family-run
conglomerate.
Photo by Reuters
BY SE YOU NG L EE
& JOYC E L EE
SEOUL: An activist US hedge fund
yesterday threw a spanner in the
works of Samsung Group’s restructuring by opposing a merger that
would allow the controlling Lee
family to consolidate their holdings
ahead of a leadership transition.
In a rare instance of investor
activism in South Korea, hedge
fund Elliott revealed it had built a
major stake in construction firm
Samsung C&T Corp and said it opposed Cheil Industries Inc’s US$8
billion (RM29.68 billion) takeover
offer because it was too low. Both
are Samsung Group affiliates.
The move is the first significant
challenge to a merger that inves-
tors and analysts believe is crucial
to a smooth transfer of power at
South Korea’s biggest family-run
conglomerate, after patriarch Lee
Kun-hee, 73, fell ill a year ago.
It could also galvanise opposition to the deal from other investors
amid growing complaints that South
Korea’s top conglomerates put their
founding families’ interests before
those of other shareholders.
“Elliott believes that Cheil Industries’ proposed takeover of Samsung C&T significantly undervalues
Samsung C&T and that the terms
are neither fair to, nor in the best
interests of, Samsung C&T’s shareholders,” the fund, now Samsung
C&T’s third-largest shareholder
with a 7.1% stake, said.
The fate of the deal may ultimately depend on Korea’s National
Pension Service (NPS), Samsung
C&T’s top shareholder with about
a 10% stake. NPS had yet to decide
on whether to accept the offer, a
spokesman said.
The merger of Cheil and Samsung C&T would consolidate stakes
both companies hold in key Samsung Group affiliates such as smartphone giant Samsung Electronics
Co Ltd under a single entity controlled by heir apparent Jay Y Lee,
46, and his two sisters, tightening
their grip on the business empire.
— Reuters
IN BRIEF
French presidency backs
EDF-Areva reactor
businesses
PARIS: The French presidency
on Wednesday gave its backing
to a tie-up between state-owned
electricity group EDF and Areva’s reactor-building unit, adding that the government would
spend “as much as necessary” to
recapitalise the troubled nuclear
group. The Elysee said EDF was
set to become “a majority shareholder” in Areva’s reactor subsidiary, Areva NP, in what could
signal a considerable restructuring of the nation’s energy sector.
The government’s green light was
announced after a meeting between French President Francois
Hollande, Prime Minister Manuel Valls and ministers of four
interested departments. — AFP
Fresh rate rise for Brazil
to counter inflation
SAO PAULO: Brazil’s central
bank on Wednesday raised its
key interest rate a half point to
13.75%, a sixth straight rise as
Latin America’s largest economy fights to stem inflation
during a slowdown. The bank’s
monetary policy committee
unanimously agreed on the rise
as it stepped up anti-inflationary efforts as prices continue to
outstrip a central government
target of 4.5% after it “evaluated
the macro-economic and inflationary outlook”. The increase
had been expected by analysts
after April saw 12-monthly inflation hit 8.17% in the world’s
seventh-largest economy. —
AFP
German bonds see worst
euro-era decline
FRANKFURT: German 10-year
bonds fell, extending a decline
that pushed them to their worst
two days in the euro’s history.
“There’s no respite,” said Piet
Lammens, head of research
at KBC Bank NV in Brussels.
Bunds “continue to fall quite
sharply. It’s still early days but
it’s clear now that the sentiment has clearly gone away
in the bund market.” Global
fixed-income securities have
slumped this week after data
on Tuesday showed inflation in
the eurozone is picking up and
European Central Bank president Mario Draghi said markets must get used to periods of
higher volatility. — Bloomberg
France’s central bank sees
economy accelerating
PARIS: France’s central bank
yesterday said French growth
would accelerate over the next
two years, in its first-ever annual
projections for the eurozone’s
second-largest economy. The
economy was seen growing at
1.2% this year, rising to 1.8% in
2016 and 1.9% in 2017. The projections were more optimistic
than the government’s forecasts,
even if Paris hopes to do better. The bank said the economy
would be bolstered by a drop
in the oil price, a lower euro exchange rate and the European
Central Bank’s loose monetary
policy. — AFP
W O R L D B U S I N E S S 25
Greek crisis talks end
without breakthrough
Its eurozone partners, creditors wanted a deal by today, when Athens must repay IMF debt
BY DA N N Y KEMP
BRUSSELS: Greece and its creditors
failed to reach a breakthrough at
crunch talks in Brussels, Belgium,
yesterday despite saying they had
made progress towards a deal that
could save Athens from a possible
euro exit.
Anti-austerity Prime Minister
Alexis Tsipras met European Commission (EC) chief Jean-Claude
Juncker in a bid to hammer out a
reform plan that could unlock the
final €7.2 billion (RM30.02 billion)
tranche of Greece’s bailout.
They said they would meet again
soon but left the four-hour meeting without any agreement, leaving
Greece on its own to face a critical
payment to the International Monetary Fund (IMF) today and avoid
a possible default.
“The talks will continue in the
coming days,” said Tsipras — whose
radical Syriza party was elected in
January on the back of promises to
end five years of painful austerity
measures that plunged Greece into
recession.
The Greek premier said that
there were “points that no one
would consider as a base for discussion” during the talks and that
Greece’s reform plan “remains the
only realistic plan on the table”.
International creditors had
presented a rival plan that they
hammered out without Greece at
a meeting in Berlin, Germany, on
Tsipras (left) being welcomed by Juncker ahead of a meeting at the EU Commission
headquarters in Brussels, Belgium, on Wednesday. Tsipras said that there were ‘points
that no one would consider as a base for discussion’ during the talks. Photo by Reuters
Monday attended by the leaders
of Germany and France.
He added, however, that after
months of often bad-tempered talks
between Athens and its creditors,
“there was proof from the EC that it
is at least disposed towards reaching
a realistic agreement very quickly.”
But Eurogroup chief Jeroen
Dijsselbloem, who also attended
the four-hour talks over dinner in
Brussels, told reporters it was a
“very good meeting”.
The EC — the executive arm of
the 28-member European Union
and one of Greece’s three bailout
monitors along with the IMF and
European Central Bank — said in
a statement that there had been
“progress” during the talks.
“It was a good, constructive
meeting. Progress was made in
understanding each other’s positions on the basis of various proposals. It was agreed that they will
meet again,” it said.
Many EU leaders will also be in
Brussels for a Latin American summit next Wednesday and Thursday.
On the way into the working
dinner Juncker and Tsipras shook
hands for the cameras, but there
was none of the horsing around
at earlier meetings when Juncker
mocked the radical Greek leader’s
refusal to wear a tie.
Greece’s eurozone partners and
its creditors had wanted a deal by
today, when Athens must repay the
IMF €300 million.
Fears of a messy Greek exit
from the euro are growing, with
its current €240 billion bailout programme due to run out at the end
of June, and a total of €1.6 billion
in payments due to the IMF in total this month, which Athens does
not have.
In the hours before the Tsipras-Juncker meeting there were frantic efforts to bridge the gap between
the demands of the creditors and the
hard-left Syriza government’s determination to end austerity measures.
German chancellor Angela Merkel
and French president Francois Hollande acknowledged “the necessity”
to lower primary surplus targets — a
key sticking point with Athens — during phone talks on Wednesday with
Tsipras, Greek sources said.
Athens has insisted on lower
targets that would allow it to honour promises to voters to increase
public spending, having already
made compromises on pension
reform and sales tax.
Any deal that does eventually
emerge faces a major hurdle as the
reforms would have to be approved
by the Greek parliament.
This could be tough given that
Tsipras is under intense pressure
from Syriza’s influential radical wing
to reject any plan that piles more austerity on the recession-hit country.
Some Syriza officials have said
they would rather hold snap elections than accept more austerity.
— AFP
Clock ticking on Greece to repay IMF
BY JEREMY TORDJMAN
WASHINGTON: It’s the billion-dollar question. Is Greece going to
repay the International Monetary
Fund (IMF) on time?
Or will it, in the absence of a new
deal with its official creditors, dare
default on the global crisis lender
which has joined two massive bailouts of the Greek economy?
Athens is scheduled to repay
€1.6 billion (RM6.67 billion) to the
IMF in four steps between now and
June 19. The first payment is around
€300 million due today.
But to make those payments,
Athens needs to access more funds
from the European Commission,
the European Central Bank (ECB)
and the IMF, specifically a €7.2
billion transfer under the current
Greece bailout programme that has
been held up for months as the two
sides wrangle over the conditions
tied to the money.
If the first loan repayment does
not arrive tonight, the axe falls:
Greece will be considered officially
in arrears, and will not be eligible
to receive any of the €16.5 billion
in financial support that the IMF
has committed to supporting the
country through 2016.
That risks pushing the already
destitute Greek economy further
into the abyss.
So far the Greek government,
led by the Syriza party, has left unclear whether it will make the payment, while it continues talks with
creditors over the conditions for a
new deal.
At the end of May, Interior Minister Nikos Voutsis warned that
Athens had “no money” to make
the repayments to the IMF. But after that the government stressed it
would pay its debts, if it was in the
position to do so.
As of late Wednesday, crunch
talks between Greek Prime Minister
Alexis Tsipras and European Commission chief Jean-Claude Juncker
were unable to bridge the gap between the two sides, pushing Athens ever closer to default, with the
consequences of that not all clear.
But the IMF has remained stonefaced. “We expect the Greek author-
ities will pay us,” a Fund spokesman
said last week.
One suggestion to buy time for
a deal has been that Athens groups
all of its June IMF payments into
one and deliver the money at the
end of the month.
But the country has not asked
to do that, a source told AFP on
Wednesday.
A default is definitely possible,
said analysts at Commerzbank AG.
“Without fresh bailout funds,
the Greek government is unlikely to have the money to meet the
mid-June repayments,” they said.
“This would be a red flag,” Domenico Lombardi, a former member of the IMF board, told AFP.
The shock of a default could spur
the Europeans to raise the pressure
on Greece, including a move by the
ECB to tighten the flow of funds
that have propped up Greek banks
during the crisis, notes Lombardi.
“The ECB could decide to make
the funding of the Greek banks
more complicated, even vitally impossible,” he said.
A Greek default on IMF loans
would place the country among a
few such countries, with the others all at least able to blame war
(Afghanistan, Iraq, Yugoslavia) or
a political turmoil (Haiti).
But the IMF itself would not
come out unscathed. It put its credibility with its members at risk in
helping arrange and manage the
rescue of Greece with the largest
bailout loans the Fund has ever
approved.
Those loans were sharply contested inside the institution, and
non-payment could renew the controversy. But analysts do not expect a default on the IMF to lead
to the disaster scenario of Grexit
— Greece’s exit from the eurozone.
“The assumption that Greece
will get out of the eurozone if it
misses a payment is completely
unwarranted,” said Lombardi.
Analysts at Commerzbank
agreed, though less definitively.
“If Greece does not service one of
these instalments to the IMF, Grexit
would undoubtedly be another step
closer. But it is unlikely to happen
in the near term.” — AFP
IN BRIEF
United States economy
resumes growth after
stalling in 1Q
WASHINGTON: The United
States economy cranked back
into middle gear during April
and May after stalling in the
first quarter (1Q) of the year,
the Federal Reserve’s Beige
Book regional survey said on
Wednesday. Consumer spending played a big part in the rebound, it said, as did construction and tourism. Respondents
to the regional survey, which
helps shape Fed policy decisions, “were generally optimistic” in their outlook, expecting
growth to continue or pick up.
But the report also showed the
recovery from the January to
March downturn was spotty
from region to region, suggesting some residual weakness
after the winter slump. — AFP
GE said to hire banks
to start sale on US$20b
assets
NEW YORK: General Electric Co
(GE) has put virtually all of its
United States commercial loan
businesses on the market after
hiring banks to unload US$20
billion (RM74.2 billion) of assets
in its healthcare, railcar and franchise finance divisions, according to people with knowledge of
the matter. GE is working with
JPMorgan Chase & Co to sell
Healthcare Financial Services,
a middle-market lender with
about US$10 billion in assets.
GE has engaged Deutsche Bank
AG to find a buyer for the railcar
lessor and Barclays plc to sell
the franchise lender, the people
said. — Bloomberg
Rupiah hits 17-year low,
pressured by high inflation
JAKARTA: Indonesia’s rupiah dropped to a 17-year low
against the dollar yesterday,
pressured by slowing economic growth and high inflation in
Southeast Asia’s largest economy. The rupiah fell 0.4% to
13,271 against the US dollar,
the weakest level since August
1998 when Indonesia was in the
depths of a financial crisis that
led to the ouster of autocratic leader Suharto.The central
bank earlier yesterday said it
stood ready to intervene in the
foreign exchange and bond
markets to ensure stability. —
Reuters
Australia’s David Jones to
open first store overseas
SYDNEY: Australia’s David
Jones plans to open its first department store overseas after
agreeing to take over the lease
of troubled New Zealand Kirkcaldie & Stains’ store in Wellington. David Jones, which
was acquired by Woolworths
Holdings Ltd last August, will
invest A$20 million (RM57.3
million) to refurbish the store
which is scheduled to open
under the David Jones brand
in the middle of next year, a
spokeswoman said. — Reuters
26 WORLD
Italy arrests 44 tied to Rome’s mafia king
ROME: Italian police yesterday arrested 44 people accused of dealings with a powerful one-eyed
mobster, whose gang thrives on
rigging Rome public contracts on
everything from garbage disposal
to park maintenance.
Officers cuffed local politicians
from both the left and right, including regional councillor Luca
Gramazio from Silvio Berlusconi’s
Forza Italia party, accused of serving as a go-between for corrupt
businessmen and the mob.
The investigation, led by Italy’s
anti-mafia police, also focused on
Guide denies
blame after US
tourist killed
JOHANNESBURG: A South African tour guide has denied
responsibility for the death of
his American client, who was
mauled to death by a lion, while
they drove through a game park
near Johannesburg.
Pierre Potgieter, 66, was badly injured as he tried to save the
woman, when the lion leapt
through the open window of
his car.
He accused an employee
at the privately-run Lion Park
of failing to help after the victim, Katherine Chappell, 29,
suffered severe injuries to her
neck in the attack on Monday.
“The tourist had a camera
and, of her own accord, rolled
down the passenger window
in order to take photographs.
A lion then attacked [her]
through the open window,” said
a statement from Potgieter’s
company, Kalabash Tours.
“[He] tried to fend the lioness off and in the process
sustained injuries to his arm.
“When the lion retreated,
Potgieter saw that the tourist
had sustained extremely serious injuries.
“She was bleeding profusely
from her neck.”
The statement, released late
on Wednesday, said Potgieter
tried to save her life, but that
a park employee who arrived
on the scene was “reluctant” to
help give first aid to Chappell.
“The ambulance only arrived some time thereafter. For
Potgieter, it felt like a very long
time,” it added. — AFP
21 other suspects whose businesses or offices were being searched
yesterday.
The arrests were the
second stage of a probe,
which saw one-eyed
boss Massimo Carminati and 36 others, including a former mayor of Rome, arrested in
December.
Police believe that
other than rigging contracts given out by municipal authorities, the mafia network also conspired to skim off cash
from centres established to house
asylum seekers and recently-arREUTERS rived migrants.
The network, “by
means of corrupt practices and collusion, assured itself numerous
contracts and financing
from the Lazio region,
the Rome municipality and associated businesses,” police said in a
statement.
The gang got its
hooks into everything from Rome’s
recycling and garbage disposal,
maintenance of parks and cycling
paths to bad weather responses.
Rome’s mayor Ignazio Marino
(pic) welcomed the arrests, saying
“politics in the past gave a bad example, but today ... we have honest
people who want to restitute the
quality of life, and all the rights
and dignity the capital deserves.”
But the raid was immediately held
up by the head of Italy’s anti-immigration Northern League party, Matteo Salvini, as an example of the incompetence — or worse — of Prime
Minister Matteo Renzi and Interior
Minister Angelino Alfano. — AFP
Cambodia admits
first asylum seekers
Rights groups label them ‘guinea pigs’ for uncaring policy
PHNOM PENH: Cambodia received
its first batch of asylum seekers from
Australian custody yesterday, with
rights groups labelling them “human guinea pigs” for an uncaring
policy by Canberra to offload refugees onto other countries.
The migrants, three Iranians and
one ethnic Rohingya from Myanmar, were flown into Phnom Penh,
the capital of one of Southeast Asia’s
poorest nations with a weak record
for upholding human rights.
“They have arrived now, and we
[have] already handed them to the
IOM (International Organisation
for Migration),” Chhay Bonna, chief
immigration officer at the Phnom
Penh’s airport, told AFP, referring
to the organisation tasked with
helping the four settle into their
new home.
The refugees, three men and one
woman, were greeted by Cambodian immigration officials and representatives from Australia’s embassy
at the VIP section of the airport, an
AFP reporter on the scene said.
In a statement, the IOM said the
group was being taken to temporary accommodation in the Cambodian capital, where they would
undergo language training as well
as “cultural and social orientation”.
“They’re here, they’re healthy
lives and I am lost for words.”
Communications Minister Edward Omane Boamah described the
situation as a “national emergency”.
A senior police officer said that
“the fire service alone retrieved
about 73 bodies”, while Red Cross
disaster management coordinator
Francis Obeng put the death toll at
“more than 70”.
Local hospitals said morgues
were full, with the death toll likely to
rise, according to security officials.
Poroshenko warns of
‘colossal threat’ of new
Ukraine fighting
KIEV: Ukrainian President Petro
Poroshenko warned yesterday of
the “colossal threat” of a resumption of major clashes in Eastern
Ukraine, where at least 24 people
have died in renewed fighting
between government forces and
pro-Russian rebels. Fresh clashes
erupted near the rebel stronghold of Donetsk on Wednesday, reviving fears in Kiev that
the separatists may be gearing
up for a new push into government-controlled territory, four
months after agreeing to a truce.
“There remains a colossal threat
of the resumption of large-scale
fighting on the part of Russian
terrorist groups,” Poroshenko
said in his annual address to
Parliament, referring to the insurgents. Poroshenko alleged
that more than 9,000 Russian soldiers are now in Eastern Ukraine
to support the rebellion. — AFP
Egypt court annuls
decision to drop Mubarak
murder charge
CAIRO: An Egyptian appeals
court yesterday annulled a decision to drop a murder charge
against former president Hosni Mubarak, over the deaths of
hundreds of protesters during
the 2011 uprising. The Court of
Cassation accepted the prosecution’s appeal against the dismissal of the murder charge against
Mubarak, who had initially been
sentenced to life imprisonment.
It was not immediately clear if
the annulment also applied to
Mubarak’s seven co-defendants,
including feared former interior minister Habib al-Adly, who
were acquitted in November. The
court “accepts the prosecution’s
appeal and has set a session on
Nov 5 to review it,” Judge Anwar
el-Gabry announced. — AFP
Iraqi forces foil bomb
attacks on bases — officer
Women riding a motorcycle past a house that will temporarily house the first group of
asylum seekers in Phnom Penh. The group will undergo language training as well as
‘cultural and social orientation’. Photo by Reuters
and we ask for privacy for them,”
IOM regional spokesman Joe Lowry told AFP.
Under Canberra’s hard-line immigration policy, asylum seekers
who arrive by boat are denied resettlement in Australia, and sent
to Papua New Guinea or Nauru,
even if they are genuine refugees.
The deal was inked last September to allow those granted refugee
status in Nauru to permanently
resettle in Cambodia.
Under the agreement, Cambodia
will accept Australia’s unwanted
refugees in return for millions of
US dollars of aid over the next four
years. — AFP
More than 70 dead in Ghana petrol station fire
ACCRA: More than 70 people were
killed in a fire at a petrol station
in Ghana’s capital, Accra, as they
sought shelter from heavy rains
that caused widespread flooding,
police and the Red Cross said
yesterday.
“This loss of life is catastrophic
and almost unprecedented,” a visibly shaken President John Dramani Mahama said as he toured the
scene.
“A lot of people have lost their
IN BRIEF
The fire broke out late on
Wednesday night in the Kwame
Nkrumah Circle area of central Accra, and is thought to have spread
from a nearby residence.
It was not immediately clear
exactly how the victims died,
with reports saying that some had
drowned in floodwater caused
by blocked roadside gutters and
drains that overflowed because of
the rains.
Mahama extended his condo-
lences to the families of those who
lost loved ones, and said “precautionary measures” need to be taken
against flooding that hits the city
every year.
At least two days of rains have
caused chaos in Accra, leaving
many suburbs submerged and
people stranded.
Already sketchy power supplies
had been cut to some communities as electricity substations were
submerged. — AFP
BAGHDAD: Iraqi security forces
used anti-tank missiles to repel
suicide bombers driving explosives-rigged vehicles, who attacked two military bases west
of Baghdad, an army officer said
yesterday. The day before, an
air strike in northern Iraq destroyed one of the Islamic State
(IS) group’s largest car bomb factories, which may help to curb
one of the jihadists’ deadliest tactics, officials said. The IS attacked
a base north of Fallujah, with two
explosives-rigged vehicles driven
by suicide bombers, and another
south of the city with four more,
including a bulldozer, an army
colonel said. — AFP
Mauritian Parliament
yes to woman president
PORT LOUIS: Prominent scientist Ameenah Gurib-Fakim was
yesterday approved by Parliament of Mauritius as the Indian Ocean island nation’s new
president, making her the first
woman to hold the ceremonial
position. Parliament Speaker
Maya Hanoomanjee is also the
first woman to hold the post.
— AFP
W O R L D 27
‘No cover-up’ in China’s
probe into ship sinking
Police have detained the captain and chief engineer for questioning
BY JOHN RUWITCH
& MEGHA RA JAGOPALAN
JIANLI (China): China has pledged
that there would be “no cover-up” of
an investigation into the sinking of
a cruise ship on the Yangtze River,
which has left 75 people dead and
over 370 missing, as angry families
gathered near the rescue site to
demand answers.
President Xi Jinping convened a
special meeting of the ruling Communist Party’s Politburo Standing
Committee, the apex of power in
the country, yesterday to discuss
the disaster, state news agency
Xinhua said.
Authorities are investigating
the crew members who were rescued from the Eastern Star, which
capsized in a freak tornado on
Monday night, and were “gathering evidence”, Xu Chengguang,
the spokesman for the Ministry of
Transport, said.
“We will never shield mistakes
An aerial view showing rescue workers standing on the sunken cruise ship in Jianli,
Hubei province. The disaster has left 75 people dead and over 370 missing, as angry
families gathered near the rescue site to demand answers. Photo by Reuters
and we’ll absolutely not cover up
(anything),” Xu told a news conference on Wednesday night, adding a
preliminary investigation had begun.
Only 14 survivors, including the
captain and chief engineer, have
been found since the ship carrying
456 people capsized.
Police have detained the captain
and chief engineer for questioning.
An initial investigation found the
ship was not overloaded and had
enough life vests on board.
The announcement of the investigation came hours before dozens
of relatives broke through a police
cordon in a bid to reach the disaster site.
Relatives have asked the government to release the names of
survivors and the dead, and questioned why most of those rescued
were crew members. Some have
also demanded to know why the
boat did not dock in the storm, and
why the rescued captain and crew
members had time to put on life
vests but did not sound any alarm.
June 4 marks the anniversary
of the 1989 crackdown on pro-democracy demonstrators around
Beijing’s Tiananmen Square, and
protests are usually quickly halted
in China.
Rescuers are not giving up their
search of the ship, which was carrying many elderly Chinese tourists, despite the fading hopes of
relatives. — Reuters
900 S Korea schools closed over MERS
BY JU NG HA - WON
SEOUL: Hundreds of schools closed
yesterday in South Korea as officials
struggled to ease growing panic
over an outbreak of the MERS virus that has infected 35 people,
killed two and caused thousands
to cancel travel plans.
More than 900 schools — from
kindergartens to colleges — have
now shut their gates in response to
public fears over what has become
the largest outbreak of Middle East
Respiratory Syndrome (MERS) outside Saudi Arabia.
Five more cases were confirmed
yesterday, bringing the total number of known infections to 35, the
health ministry said.
The first case, reported on May
20, was of a 68-year-old man diagnosed after a trip to Saudi Arabia.
Since then, more than 1,660 people who may have been exposed
directly or indirectly to the virus
have been placed under varying
levels of quarantine.
While around 160 were isolated
at state-designated facilities, most
were told to stay home and strictly
limit their interactions with other
people.
The anxiety has been exported,
with the Korea Tourism Organisation reporting yesterday that around
7,000 tourists — mostly from China and Taiwan — had cancelled
planned group trips to South Korea.
The military has also been affected with more than 20 symptomatic
soldiers quarantined.
President Park Geun-Hye’s administration, and health officials
in general, have been criticised for
responding too slowly to the initial
outbreak.
MERS has now infected 1,161
people globally, with 436 deaths.
More than 20 countries have been
affected, with most cases in Saudi
Arabia. — AFP
Japan, Philippines eye stronger Massive Tiananmen vigil
defence ties as China rises
in divided Hong Kong
TOKYO: Japan and the Philippines
were set to demonstrate their deepening defence ties at summit talks
yesterday as the two US allies work
to form a united front against China’s increasing assertiveness.
Japanese Prime Minister Shinzo
Abe and Philippine President Benigno Aquino will jointly address
the media following their meeting
in Tokyo, at which they are expected to affirm their commitment to
ensuring maritime security in the
South China Sea.
Aquino has passionately courted
Japan, along with the United States,
to help serve as a counterbalance to
China’s claims to almost the entirety
of the sea, a major global shipping
route believed to be home to oil
and gas reserves.
Beijing has been aggressively constructing artificial islands, including
what appear to be military-supporting facilities, such as runways — aggravating regional tensions and drawing US demands to stop.
Aquino on Wednesday sparked
ire in Beijing by comparing it with
Nazi Germany in the run-up to
World War II.
Tokyo and Manila are shoring
up military and political ties, with
a joint naval drill last month in the
South China Sea. Washington has
also sent ships and planes to survey the waters.
Ties between Japan and the Philippines are warm, with Aquino having spoken of Japan’s repentance
and praised its decades of pacifism
since defeat in World War II. — AFP
BY LAU RA M ANNE RI NG
& DE NNI S C HO NG
HONG KONG: Tens of thousands
of people joined a candlelit vigil in
Hong Kong yesterday to mark the
26th anniversary of China’s Tiananmen Square crackdown, with the
city deeply divided ahead of a vote
on how to choose its next leader.
Hong Kong is the only location on
Chinese soil to see a major commemoration, with residents gathering in
Victoria Park to mark the military’s
brutal crushing of pro-democracy
protests in central Beijing in 1989.
Hundreds died after the Communist Party sent tanks to crush
demonstrations at the square in the
heart of Beijing, where student-led
protesters had staged a peaceful
seven-week sit-in to demand democratic reforms.
“This is an ongoing struggle for
justice,” said Richard Tsoi of the Alliance in Support of Patriotic Democratic Movements of China, which
organised the Hong Kong vigil.
The United States called for “an
official accounting of the victims” of
the 1989 crackdown, as well as the
release from prison of those serving Tiananmen-related sentences.
The State Department also urged
a halt to the harassment and detention of those who want to commemorate the anniversary.
The Hong Kong vigil comes as
tensions are high just two weeks
ahead of a vote on the government’s
controversial election roadmap.
— AFP
IN BRIEF
3,000 Indons evacuated
as volcano alert raised
JAKARTA: Nearly 3,000 people
have been evacuated from their
homes after Indonesia upgraded
the threat posed by a volcano on
Sumatra to the highest possible
level, an official said yesterday.
Authorities raised the alert status
of Mount Sinabung — a highly
active volcano on Indonesia’s
westernmost island — late Tuesday after a “sharp rise” in activity, said national disaster management agency spokesman
Sutopo Purwo Nugroho. The
amount of hot ash, smoke and
rock spewing from the volcano has ramped up significantly
since Sunday, with lava visible at
the crater, the Mount Sinabung
Observation Station chief Armen
Putra said. — AFP
Thai junta orders ban
on human rights event
BANGKOK: Thailand’s military rulers yesterday banned
a panel discussion exploring
rights abuses alleged to have
taken place during the junta’s
one-year rule. Thai Lawyers
for Human Rights, which provides legal aid to those who
fall foul of the junta, was due
to launch a report on the kingdom’s faltering rights record at
the Foreign Correspondent’s
Club of Thailand (FCCT) yesterday evening. But in a statement
FCCT said it had been forced to
cancel the event “on the orders
of the NCPO (National Council for the Restoration of Peace
and Order) and the police”. The
NCPO is the official name for
Thailand’s junta. — AFP
Pope to receive Putin
amid Ukraine tensions
VATICAN CITY: Vladimir Putin
will be received by Pope Francis next week in the Russian
president’s first visit to the Vatican since the crisis in Ukraine
erupted. Vatican spokesman
Ciro Benedettini said Putin
would meet the Argentinian
pontiff on June 10. The Russian leader first met Francis
at the Vatican in November
2013, before Russia’s March
2014 annexation of Ukraine’s
Crimea peninsula. The Vatican
has adopted a cautious stance
on the conflict between Ukrainian authorities and pro-Russian
rebels in eastern Ukraine which
has religious overtones. — AFP
Jeb Bush to announce
White House bid
MIAMI: Former Florida governor Jeb Bush is expected to
formally announce his campaign for the Republican presidential nomination on June 15
in Miami, according to a new
campaign website that went
live early yesterday. “Coming
soon,” Bush said on his Twitter account, linking to the new
website. Bush, the son of former president George HW Bush
and brother of former president
George W Bush, is entering a
crowded field of Republican
candidates ahead of the November 2016 presidential election. — Reuters
28
live it!
FR I
WELLBEING . THE ARTS . WINE+DINE . STYLE+DESIGN . LEISURE
WEEKEND
by numbers
05.06.15 to 07.06.15
Your quick guide to rest and relaxation. By Su Ann Quah
3 hotspots to indulge seafood cravings
Crab Factory @ SS2
The owners of Crab Factory went on an adventurous trip
to the United States where they stopped in Louisiana,
and were instantly hooked on the state’s love for jazz
and blues, festivals, and most importantly, the backyard
“crab boil”. They brought the idea back to Malaysia, and
Crab Factory was born. Serving an array of seafood
cooked Southern American style — Creole and Cajun —
patrons at Crab Factory are encouraged to chow down
on their food with friends and loved ones, just like how
backyard barbeques are done thousands of miles away
in Louisiana. This weekend, feast like a king at Crab
Factory with its King Crab special priced at RM217.
For reservations, call (03) 7865 5850. The restaurant is
located at 21 Jalan SS2/64, Petaling Jaya.
The Lobsterman @ SS2
The Lobsterman has been around for more than a decade, bringing its loyal customers fresh lobsters — diners
make their selection from a tank of live crustaceans. The
restaurant is unique in that it only serves one species of
lobster — Homanus americanus, colloquially called the
“American lobster”. The lobsters ordered here can be
cooked in several different ways: baked or simmered,
and garnished Hong Kong, Japanese, French or American
style. In addition to lobster, the restaurant also serves escargot, fish and steak. The Lobsterman is located at 51-53
Jalan SS2/30, Petaling Jaya. For inquiries or reservations,
call (03) 7877 6772.
Red Lobster @ Intermark, Gamuda Walk, Quill City
and Sunway Putra
Red Lobster is one of the most recognisable seafood restaurant chains in the United States which now has a presence around the world. Savour great freshness and a wide
variety of seafood, from live rock lobsters and snow crab
legs to shrimps, scallops and salmon. Red Lobster’s cheddar bay biscuits are also not to be missed. For reservations,
call (03) 2181 4855 (Intermark), (03) 5131 9978 (Gamuda
Walk), (03) 2602 1946 (Quill City) or (03) 4050 3270 (Sunway
Putra). Visit www.redlobster.com.my for more information.
2 awesome musical treats
The Immortal 9th
Malaysian Philharmonic Orchestra presents The Immortal 9th,
a celebration of the music of Ludwig van Beethoven, tonight
and tomorrow. Conductor Nicolae Moldoveanu will lead the
orchestra in a presentation of Beethoven’s Fantasy in C Minor
for Piano, Chorus and Orchestra and the iconic Symphony No
9. The performance features the talented pianist Tengku Irfan,
sopranos Emma Bell and Daniela Pacurar, mezzo-soprano
Karen Cargill, tenors Steve Davislim and Ovidus Siclovan, and
bass-baritone Andrew Foster-Williams, as well as the Transylvania State Philharmonic Choir. Tickets are priced at RM169
and RM212, and can be purchased from www.mpo.com.my. For
inquiries, call (03) 2331 7007. Show time is 8.30pm at Dewan
Filharmonik Petronas, Petronas Twin Towers, KLCC.
Jamie Wilson Trio
If you’re in the mood for raw and edgy, look no
further than the Jamie Wilson Trio, featuring
Jamie Wilson on vocals and guitar, Andy Peterson on bass and John Thomas on drums. Wilson
was once a part of rock legend Jimmy Barnes’ national tour, and has performed with Australia’s
music royalty, guitar maestros Richard Clapton,
Ian Moss and Steve Miller. Ready yourself for a
night of blues with Wilson, Peterson and Thomas
at 10pm tonight at No Black Tie, 17 Jalan Mesui,
Off Jalan Nagasari, 50200 Kuala Lumpur. Cover
charge is RM30. For reservations, call (03) 2142
3737 or email [email protected].
‘Th
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live it! 29
1 way to relax and unwind
Spa Village at the Ritz-Carlton Hotel
Escape to the Spa Village at the Ritz-Carlton Hotel in
the heart of Kuala Lumpur. Inspired by indigenous
Malaysian culture, the Spa Village offers a host of
massages and treatments such as the Terra Timur
Body Scrub, Aroma Bath and Papaya Gentle Body
Scrub. In addition to a spa, there is also a plunge
pool, Jacuzzi and swimming pool for spa clients’
use. Depending on your preference, choose from
indoor or outdoor beds, twin or single rooms. Spa
treatments at the Ritz-Carlton can be packaged
together with a stay at the hotel. For more information, visit www.ritzcarlton.com/en/Properties/
KualaLumpur/Default.htm or call (03) 2142 8000.
The Ritz-Carlton, Kuala Lumpur, is located at 168
Jalan Imbi, Kuala Lumpur.
2 new bestselling reads
‘The Wright Brothers’ by David McCullough
Written by two-time Pulitzer Prize winner David
McCullough, The Wright Brothers tells the tale of
two unknown bicycle mechanics from Ohio who,
by their own ingenuity, made a name for themselves in the history books for being the first human beings to successfully fly a plane. Although
the Wright brothers are a household name today,
they went through some truly challenging times
in order to build that very first plane that took to
the air. Who were they? McCullough takes readers
on a journey into the past, uncovering the lives of
Wilbur and Orville Wright.
‘The Girl on the Train’ by Paula Hawkins
First published in January, The Girl on the Train
quickly rose to stardom by topping the New York
Times fiction bestseller list within weeks, and has
now sold over 1.5 million copies worldwide. The
novel follows protagonist Rachel, who can’t help
but watch a particular couple living in a home along
the route of the commuter train that she takes every
morning. One day, she catches a glimpse of something horrific and takes it upon herself to report it
to the police. Suddenly, she finds herself unable
to escape from the cascade of events that start to
happen, as if stuck in a Hitchcock thriller. The Girl
on the Train retails at RM59.90 at Kinokuniya.
1scare
way to
yourself
silly
Insidious: Chapter 3
Be the first to watch the third instalment of the Insidious franchise — a prequel to the first two movies. Insidious: Chapter 3 premieres today, and tells the story
of Elise Reiner, a gifted psychic who unwillingly uses
her ability to contact the dead in order to help a girl
who has been targeted by a supernatural entity. The
movie stars Dermot Mulroney as Sean Brenner and
Stefanie Scott as Quinn Brenner, with Angus Sampson
and Lin Shaye reprising their roles from the previous
films. For show times and ticketing info, visit www.
gsc.com.my or www.tgv.com.my.
30
live it!
Zen TODAY
When the whole world is silent, even one voice
becomes powerful. — Malala Yousafzai
Big commercial hit and small,
creative musical lead Tony Awards
B
roadway is preparing for its biggest night on Sunday with the
2015 Tony Awards,US theatre’s
highest honours, following a
record-breaking season with a
commercial hit vying with an
edgy musical for the top prize.
Tony winners Alan Cumming and Kristin
Chenoweth, who is also a nominee, will cohost the show to be broadcast live on CBS
television from Radio City Music Hall.
The best musical prize has turned into a
race with An American in Paris, with a score
by George and Ira Gershwin, and lesbian
coming-out story Fun Home in the lead.
An American in Paris had a slight edge
in a poll of 14 theatre experts on awards
show-tracking website Goldderby.com.
“It’s the big commercial hit, An American
in Paris versus the small, critical darling,
Fun Home,” said Paul Sheehan, Gold Derby’s executive editor.
Producer Debbie Bisno described 2014 to
2015, in which attendance topped 13.1 million and grosses soared to US$1.36 billion
(RM5.05 billion), as “an incredibly robust,
creative season”.
The Curious Incident of the Dog in the
Night-Time, a British import about a 15-yearold math whizz with Asperger syndrome,
is the top bet to take home the Tony for
best play.
Its young star, recent Juilliard School
graduate Alex Sharp, could also top multi-Oscar nominee Bradley Cooper as the
physically deformed male in The Elephant
Man, and English actor Bill Nighy’s wealthy
restaurateur in Skylight for the best actor
award in a play.
“It’s a slam dunk [for the play], and it is
a slam dunk for him,” Playbill magazine’s
Harry Haun said about Sharp. “Every aspect of that play supports his performance.”
Oscar and Emmy winner Helen Mirren
seems the one to beat for the best actress
prize for her role as Queen Elizabeth II in
The Audience, outpacing Carey Mulligan’s
inner-city schoolteacher in Skylight and
Elisabeth Moss in feminist play The Heidi
Chronicles.
“It’s the right time. It’s the right showcase for her and it is deserved,” said Sheehan. “This play looks at 60-plus years in
the life of the queen. It is an extraordinary
performance.”
For best actor in a musical, most experts
predict it will be close call between Michael
Cerveris, up for his second Tony as a closeted
homosexual father in Fun Home, and ballet
dancer Robert Fairchild in his Broadway
debut in An American in Paris.
In the best actress in a musical category,
Chenoweth will be battling for her second
Tony as a Hollywood star in On the Twentieth Century, against Kelli O’Hara, nominated for the sixth time for The King and I, and
Broadway veteran Chita Rivera, who could
nab her third Tony for The Visit.
“I think in the end, Kristin Chenoweth
will have a pair of Tonys at home,” said Joe
Dziemianowicz of New York’s Daily News
newspaper.
The King and I is the likely front runner
for the Tony for best musical revival against
On The Twentieth Century and On The Town.
Rock star Sting earned his first nomination for best original score for The Last Ship,
which closed earlier this year, but many experts think Lisa Kron and Jeanine Tesori will
win the prize for Fun Home.
“I think Fun Home will win and should
win,” said Dziemianowicz. — Reuters
Cooper (left) and Patricia Clarkson talking while they attended the 2015 Tony Awards Meet the Nominees Press
Junket in New York on April 29. Photo by Reuters
S P O RT S 3 1
Local football woes
continue with Thai loss
‘We have no stars, only average players’
BY PAT RI C K JOH N STON
SINGAPORE: Malaysian football is
enduring some troubled times and
the performance of their under-23
side at the Southeast Asian (SEA)
Games has failed to lift the mood.
A 1-0 loss to Thailand at a steamy
Bishan Stadium in Singapore yesterday left them all but out of contention for a place in the semi-finals
of the biennial multi-sport Games
for the 11-member bloc.
Following a 5-1 mauling by
Vietnam on Tuesday, the Thai
match was a must-win if they were
‘Special mission’
for Malaysian
athletes
SINGAPORE: The Malaysian
contingent to Singapore has a
special mission to accomplish as
the 28th Southeast Asian (SEA)
Games officially begins today.
With 402 gold at stake from
39 events, the Malaysian contingent comprising 909 athletes and officials is tasked with
achieving 56% of the medals
targeted by Malaysia.
The Malaysian contingent
in Singapore is led by chef-demission Datuk Seri Mohamad
Norza Zakaria.
Malaysia will take part in
archery, aquatics (swimming,
syncronised swimming, diving
and water polo), athletics, badminton, basketball, bowling,
boxing, canoeing, cue sports
(snooker and billiards), cycling
and equestrian.
The country also hopes to
strike medals through football, fencing, floorball, golf,
gymnastics, hockey, judo, netball, petanque, rowing, rugby,
sailing, sepak taktraw, shooting, silat, softball, squash, table tennis, taekwondo, tennis,
triathlon, volleyball, water ski
and wushu.
Malaysia won a silver and
two bronze medals in the
pre-opening syncronised
swimming, table tennis and
fencing events.
The silver was won by the
syncronised swimming team
in the free routine team event,
while the bronze was by Ho
Ying-Lee Rou You in table tennis (women’s doubles) and Yu
Peng Kean in fencing (men’s
individual sabre).
In the 2013 Games in Myanmar, Malaysia won 43 gold, 38
silver and 77 bronze medals to
finish fifth. — Bernama
to grab one of the two qualifying
spots but Malaysia were mostly
in defensive mode against the region’s best.
A brilliant 81st-minute low, fizzing strike by skipper Sarach Yooyen
from the edge of the area finally
ended Malaysia’s resistance.
“Thailand and Vietnam are definitely on top of us at the moment,”
Malaysian coach Ong Kim Swee
told reporters.
“I said before the tournament,
we have no stars, only average players.”
The expected departure marks
a sorry tournament for the Malaysians, winners of the tournament
in 2009 and 2011.
Their opening 1-0 win over East
Timor was marred by a red card
and a subsequent six-match ban
for midfielder Mohd Nazmi Faiz
Mansor after he was found guilty
of spitting at an opponent. He was
sent home by the team.
“Even in our opening game
against Timor Leste, we did not
look like a team capable of playing
to win the gold medal,” Malaysian
chef de mission Seri Norza Zakaria
was quoted as saying by local media
yesterday. “The players must realise the high expectations heaped
on football ... 70% of the news
written in the media back home
is about football. So, Malaysians
deserve better.”
Some Malaysian fans have already voiced their displeasure. The
Ultras Malaya supporters group
lambasted the Football Association
of Malaysia for arranging a lucrative friendly against English side
Tottenham Hotspur prior to the
SEA Games and not doing more
for the under-23 side’s preparations. — Reuters
Malaysia’s first gold medal
SINGAPORE: Malaysia claimed their
first gold of the 28th Southeast Asian
Games after synchronised swimmers
Katrina Ann Abdul Hadi-Zylane Lee
lived up to expectations in the duet
technical and free routine event finals.
Katrina Ann and Zylane had a
slim lead of 1.0731 points over Singapore’s Stephanie Chen-Crystal Yap’s
scores of 149.8372 points to claim the
gold medal with a combined total of
150.9103 at the OCBC Aquatic Centre.
The Malaysian duo was given
75.3436 point in their technical
routine and adding 75.5667 points
in the free routine final.
However, the Singapore duo had
a strong 75.8667 in the free routine
but it was not enough and they had
to settle for silver with a total of
149.8372 points. Indonesia’s Anisa
Feritrianti-Adela Amanda Nirmala
took the bronze with a combined
total of 139.0880. — Bernama
SINGAPORE: Two Singaporean
teenagers, both with the same unfathomable ambitions, are poised
to dominate the swimming competition at the SEA Games.
Joseph Schooling, 19, and Quah
Zheng Wen, 18, are both diving into
uncharted waters by chasing a record total of gold medals.
Schooling is targeting nine
golds while Wen is going after an
unheard-of 12 titles, both unprecedented hauls by male swimmers
at the region’s biggest multi-sports
events.
The chances of both scooping
the lot are already doomed because
they will clash head-to-head in four
events in what looms as one of the
most eagerly anticipated clashes of
the biennial Games.
“I wouldn’t have set goals that I
Ferrer to compete in ATP
250 Malaysian Open
KUALA LUMPUR: World No
8 tennis player, David Ferrer
of Spain will participate in the
ATP 250 Malaysian Open Kuala Lumpur (MOKL) scheduled
from Sept 26 to Oct 4 at Putra
Stadium, here. Ferrer, who is
firmly entrenched in the world’s
top 10 and has been there for
more than five years, will be
joined by young talent Grigor Dimitrov of Bulgaria who
is currently ranked 11th in the
world and Spanish Feliciano
Lopez (ranked 12th) while half
“Kampung Kid”, Nick Kyrgios
will make his return. During the
ongoing French Open, Ferrer,
who reached the quarter-final
stage, recorded his 300th match
win on clay. — Bernama
Sock Khim meets
Thi Nga in ping-pong
SINGAPORE: Women’s singles
player Ng Sock Khim has advanced to the semi-final in the
ping-pong event at the 28th
Southeast Asian (SEA) Games
in Singapore. In the quarter final early yesterday, Sock Khim
took the lead in Group D after staving off the challenge by
Nanthana Komwong from Thailand with 3-2 (6-11,11-9,11-8,711,11-7). Sock Khim will meet
Nguen Thi Nga from Vietnam,
who tamed San Khin Kaung
from Myanmar 3-0 (11-3,114,11-7) in another quarter-final.
Meanwhile, in another semi-final, Thailand’s Suthasini Sawettabut will meet Vietnam’s Mai
Hoang My Trang. — Bernama
France’s Petricola dies
at Isle of Man TT race
The Malaysian pair posing with their gold medals after winning dual technical and free
routine in synchronized swimming at the OCBC Aquatic Centre, Singapore, yesterday.
Photo by Reuters
S’pore pair eyeing record hauls in swimming
BY JULIAN LIN DE N
IN BRIEF
didn’t think I could achieve,” Schooling told Reuters.
“I think my schedule is hard, but
Quah’s [schedule] is even harder,
he’s in 12!
“But I’ve got no room or reason
to complain. I think I’ll get nine,
but we’ll see.”
Schooling, who studies and trains
in Texas, has seven gold medals from
the last two SEA Games but already
has sights set on bigger things after starting to make waves on the
world stage.
He won a silver medal at last
year’s Commonwealth Games in
Glasgow then became the first Singaporean man in 32 years to win
a gold medal in swimming at the
Asian Games with victory in South
Korea last year.
“I have my personal goals — I’ve
always wanted to be an Olympic
gold medallist as a kid, world record
holder and everything,” he said.
“So, those dreams are very much
still alive. Hopefully I can do that.”
Despite their rivalry in the pool,
Schooling and Wen are both friends
and will join forces in the three men’s
relays for a Singapore team expected
to rule the waves at the city-state’s
newly-built Aquatic Centre.
Singapore won 17 of the 38 gold
medals in swimming at the 2011 SEA
Games then 11 of 32 two years ago.
With 38 golds on offer again this
time, the republic is hoping for a
record haul.
Spearheading Singapore’s women’s team is Tao Li. A former Asian
champion Olympic finalist in butterfly, the 25-year-old has already won
24 SEA Games gold medals since
she made her debut a decade ago.
At the 2011 Games she won seven golds and is hoping for another
big haul on home water. — Reuters
LONDON: French motorcyclist Franck Petricola has died
following an accident during a
qualifying session at the Isle of
Man TT races, organisers announced. “ACU Events Ltd regrets to announce that French
rider Franck Petricola, 32, from
Pont-a-Mousson was killed following an accident at Sulby
Crossroads at approximately
7.45pm (1845 GMT) during
this evening’s (Wednesday)
qualifying session at the Isle
of Man TT races,” organisers
said in a statement. “The ACU
wishes to pass on their deepest
sympathy to Franck’s family
and friends.” — AFP
Djokovic, Murray in battle
of untouchables
PARIS: Novak Djokovic and
Andy Murray meet for the 27th
time today with a French Open
final place at stake and with history on their shoulders. World
No 1 Djokovic ended the reign
of nine-time champion Rafael
Nadal in the quarter-finals,
handing the Spaniard just his
second defeat in 72 matches at
Roland Garros in a decade of extraordinary dominance. A win
today for the 28-year-old Serb
will put him in a third final in
Paris and just one victory away
from a first French Open trophy
and a career Grand Slam, a feat
achieved by just seven other
men. — AFP
3 2 S P O RT S
Football icon says a
woman could helm FIFA
Five-time Player of the Year Marta says it is about ‘capability’
BY TARIQ PANJA
SAO PAOLO: As the list of names
being suggested as possible replacements for FIFA president Sepp Blatter grows, one theme is evident. All
the prospective candidates are men.
According to record five-time
FIFA Female Player of the Year Marta, there’s no reason why a woman
shouldn’t take the post for the first
time since soccer’s governing body
was established in 1904.
“Independent to a man or woman,
it’s about capacity,” Marta said in a
phone interview on Wednesday from
Sao Paulo’s International Airport,
where she was en route to Canada
for this month’s Women’s World Cup.
“You need to have the knowledge of
what needs to be done to improve
the sport, so I have a preference for
capability independent of whether
it’s a man or woman.”
Bookmakers have made European soccer head Michel Platini and
Blatter’s election opponent Prince
Ali al-Hussein of Jordan favourites.
Others to have declared interest include FIFA’s honorary vice-president
Chung Mong-joon of Korea and Bra-
Slim Messi back
on top of the
world
BY KI ERA N C A NNING
MADRID: By Lionel Messi’s exceptional standards 2014 was a
year to forget. For the first time
in six years he went trophyless at
club level with Barcelona, whilst
arguably his best ever chance to
win a World Cup with Argentina
came and went.
His listless performances particularly in the latter stages of the
World Cup led many to believe
he could never return to the level
that dazzled as he became the
first man to win four consecutive
World Player of the Year awards
between 2008 and 2012.
Fast-forward a year and
Messi’s displays in the past six
months may even have eclipsed
anything that came before.
Messi’s change in physical
state has come about thanks
to a radical change in diet. The
27-year-old has lost a reported
3.5 kg since starting to work with
Italian dietician Giuliano Poser.
A noticeably more slimline
Messi has not only got to the end
of the season in prime physical
condition, he has recovered the
pace in short bursts that makes
him practically impossible to
stop. — AFP
Marta criticised
the lack of
funding in
Brazil. Photo
by Bloomberg
zil’s 1986 World Cup playmaker Zico.
Marta was selected as FIFA World
Player of the Year every year from
2006 to 2010. The Brazilian was voted
the best player at the 2007 World Cup
in China and scored the most goals
at the tournament, when Brazil lost
2-0 to Germany in the final.
The Women’s World Cup kicks
off tomorrow in Edmonton with
the sport reeling from the arrests
last week of key FIFA executives in
a Swiss hotel as part of a US investigation into more than two decades
of alleged corruption. On Tuesday,
Blatter said he will step down, four
days after being re-elected to a fifth
term as president. Blatter recently
described himself as the “godfather”
of the women’s game. In 2013 at FIFA’s congress in Mauritius, Blatter
caused offence when announcing
the addition of the first woman to
the governing body’s executive com-
mittee, Burundi’s Lydia Nsekera, the
highest-ranking woman in the sport.
“Any ladies in this room?” he said.
“Say something ladies. You are always speaking at home. Now you
can speak here.”
Marta said her success didn’t earn
her much contact with the FIFA president. “People from women’s football
don’t have much access to people
in this environment,” she said. “We
see them in the competitions from
time to time.”
The US Department of Justice last
week indicted 14 FIFA officials and
sports-marketing executives with
charges including accepting more
than US$150 million (RM556.5 million) in bribes and kickbacks
Marta said she was saddened by
the breach of trust shown by officials.
“We need to find responsible people to correct the errors so football
can continue to be a passion for people all around the world,” she said.
Marta criticised a lack of funding
for the women’s game in Brazil. “They
give 90% of the money for men’s football, leaving very little for women,”
she said. “They must show more love
for women’s football.” — Bloomberg
South Africa elite police investigate
FIFA bribe allegations
JOHANNESBURG: South Africa’s
elite Hawks police unit has opened
a preliminary investigation into the
involvement of local officials in the
payment of what US prosecutors call
a US$10 million (RM37.1 million)
bribe to a FIFA executive to secure
the 2010 World Cup.
South African sports officials have
acknowledged authorising the payment of US$10 million to Jack Warner,
former head of soccer in the Caribbean and North and Central America,
but say the money was a donation
for development projects, and not
a bribe. Warner is one of 14 senior
soccer officials and businessmen
indicted by the US on charges of
corruption which have shaken the
world’s most popular sport. US au-
thorities say he and other officials
planned to keep the money, in return for delivering votes to host the
World Cup in South Africa.
The Hawks, formally known as
the Directorate for Priority Crime
Investigation, said their initial assessment would determine whether a full investigation was needed, a
decision which would be announced
next week.
“The preliminary investigation
will reveal whether or not we will
have an investigation,” said Hawks
spokesman Brigadier Hangwani Mulaudzi. “If the investigations reveal
there is a case to be answered, we
will then inform other stakeholders
in the justice system.”
Freedom Front Plus, a small right-
wing political party that advocates
for South Africa’s formerly dominant white minority, said yesterday
it had submitted an affidavit asking
the Hawks to investigate the South
African Football Association (SAFA).
“We are hoping to understand
what happened and also get an explanation from local football officials,” Jennifer Rautenbach, the legal
adviser to the party told Reuters. “We
asked specifically that they look at
SAFA officials involved.”
On Wednesday, Sports Minister Fikile Mbalula confirmed the
contents of a leaked letter from the
SAFA which said money originally
intended for organising the 2010
World Cup had been paid directly
to Warner. — Reuters
Man City’s Milner agrees to join Liverpool
LONDON: Liverpool announced yesterday that they have agreed to sign
England midfielder James Milner
from Premier League rivals Manchester City on a free transfer, subject to
a medical examination.
The 29-year-old, capped 53 times
by his country, will join Liverpool on
July 1 after his City contract expires.
Liverpool have not disclosed the
length of his contract.
“Liverpool Football Club are delighted to announce they have agreed
a deal to sign Manchester City’s James
Milner, subject to a medical,” Liverpool announced on their website.
A graduate from Leeds United’s
youth academy, Milner played for
Leeds, Newcastle United and Aston
Villa before joining City in 2010. The
versatile, hard-working player, who
can operate right across midfield,
has won two Premier League titles
with City, in 2011-12 and 2013-14,
as well as the 2010-11 FA Cup and
the 2013-14 League Cup.
Milner, who will join on the day
captain Steven Gerrard leaves for the
Los Angeles Galaxy, is Liverpool’s first
signing of the close season. — AFP
IN BRIEF
Britain sees ‘very strong’
case for re-running World
Cup bids if process corrupt
LONDON: There is a “very
strong” case for re-running bids
for the 2018 and 2022 World
Cups if it is proved that the process of awarding the tournaments was corrupt, Britain’s
sports minister John Whittingdale said yesterday. “We wait to
see the outcome of the investigations. If there is evidence
that the bid process was corrupt
then I think the case for re-running it is very strong,” he told
parliament. Whittingdale, the
Secretary of State for Culture,
Media and Sport, said if Qatar
were stripped of the 2022 World
Cup it would be unlikely to be
held in Europe. But if England
was asked to consider hosting,
it had the facilities. — Reuters
Beckham: FIFA corruption
‘despicable’
LONDON: Former England
captain David Beckham has
described the corruption allegations swirling around world
governing body FIFA as “despicable, unacceptable and awful”.
“Some of the things that we now
know happened were despicable, unacceptable and awful
for the game we love so much,”
Beckham said in a statement.
“Whilst it has not been good
to read some of the headlines
surrounding our sport recently, I
hope at last we are now moving
in the right direction. Football is
not owned by a few individuals
at the top — it belongs to the
millions of people around the
world who love this sport. It is
time for FIFA to change and we
should all welcome it.” — AFP
Warner ‘fears for life’ over
FIFA scandal
LOS ANGELES: Disgraced former FIFA vice-president Jack
Warner said he fears for his life
and can prove a link between
football’s governing body and
an election in Trinidad and Tobago.Warner, one of 14 people
wanted as part of the corruption
scandal rocking world football,
said he had an “avalanche” of
secrets that include details on
FIFA’s outgoing president Sepp
Blatter. “I will no longer keep
secrets for them,” he said in a
paid political broadcast shown
on Wednesday in Trinidad and
Tobago. “I reasonably and surely
fear for my life ... not even death
will stop the avalanche that is
coming.” — AFP
‘No risk’ of Russia losing
2018 World Cup
MOSCOW: Russian Sports Minister Vitaly Mutko said yesterday
there was no risk of Russia losing
the 2018 soccer World Cup finals
after the United States said it was
investigating the bidding process. “There is no risk to Russia
hosting the World Cup,” Mutko was quoted as saying by RIA
news agency. The US FBI said
its corruption investigation into
FIFA included scrutiny of how
soccer’s governing body awarded World Cup hosting rights to
Russia and Qatar. — Reuters
Read this copy online @ theedgeproperty.com
M A K E B E T T E R D EC I S I O N S
ep11 L E G A L
ep12 D E A L M A K E R S
ep14 F E AT U R E
ep15 H O M E I D E A S
The 10 legal
commandments
of home buying (Part 1)
Johor international
zones will reduce
market speculation
Sinkeh Hotel is
‘Building of the Year’
In the bloom of life:
Ikebana artist Kariyazaki
on the spirit of flowers
The sun rises in the
SOUTH of BANGSAR
There is growing interest among property developers and investors in the Kerinchi
and Pantai area, south of Bangsar in Kuala Lumpur. Data by theedgeproperty.com
shows that the average price psf for non-landed residences eased slightly in the third
quarter of 2014, but real estate consultants expect strong market demand to drive
growth in the near future. They see the gentrification of Kampung Kerinchi
as positive for the value of its real estate. See story on pages ep8 & 9.
SUHAIMI YUSUF/THE EDGE PROPERTY
EP
4
PROPERTY
| NEWS
NEWS ROUNDUP
For more news go to theedgeproperty.com
DA Land to develop RM5 bil
leisure project in Rawang
The rise of the
areas south
of Bangsar
Evergreen
Bangsar
DA Land Sdn Bhd launched The
Two integrated development project on June 1. It has a gross development value (GDV) of RM5 billion
and is positioned “as a holiday,
leisure and shopping destination
in greater Kuala Lumpur,” said DA
Land chairman Tan Sri Mohd Radzi
Sheikh Ahmad.
The Two sits on a 51-acre land parcel a minute’s drive from the Rawang
exit on the North-South Expressway.
It will feature indoor and outdoor
theme parks, a “wholesale city”,a mall,
four blocks of hotels and an arena hall
with more than 8,500 seats.
The theme parks are designed
by the Sanderson Group, which has
worked on parks such as Disneyland
in Tokyo, Japan; Warner Brothers’
Movie World in Gold Coast, Australia; and Universal Studios in Sentosa
Island, Singapore, said Mohd Radzi.
According to DA Land CEO
Derek Chew, the 600,000 sq ft indoor theme park will be the largest
in Asia when the project is completed in four years.
Sunway contributes
RM123 mil for BRT-Sunway
Line construction
The Edge Communications Sdn Bhd
(266980-X)
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Mutiara Damansara, 47810 Petaling Jaya,
Selangor, Malaysia
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Editorial
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Tel: 03-7721 8219 Fax: 03-7721 8038
Senior Managing Editor Azam Aris
Contributing Editor Sharon Kam
Editor Rosalynn Poh
Deputy Editors E Jacqui Chan,
Wong King Wai, Llew-Ann Phang
Assistant Editor Lam Jian Wyn
Writers Zatil Husna Wan Fauzi,
Elena Tunku Sherie,
Chai Yee Hoong, Lim Kian Wei,
Rachel Chew, Hannah Rafee,
Carmel Dominic
Art Director Sharon Khoh
Design Team Cheryl Loh,
Valerie Chin, Aaron Boudville,
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Sunway Bhd has contributed
RM123 million to construct the
elevated Bus Rapid Transit (BRT)
Sunway Line which costs a total of
RM634 million, said Sunway Group
founder and chairman Tan Sri Dr
Jeffrey Cheah.
BRT-Sunway Line is implemented under the public-private partnership between Prasarana Malaysia Bhd and Sunway Bhd.
“We contributed a total of RM123
million even though it was RM90
million in the original contract,”
Cheah said at the official launch
of the country’s first elevated BRT
system on May 31.
He said additional funds were
needed to construct the elevated
covered walkways, car park and
safety features to enhance accessibility and connectivity.
New housing category
introduced for talented and
skilled applicants in Penang
The Penang government has created a new category of housing
applicants for affordable homes –
the “talented and skilled”.
State exco member for housing Jagdeep Singh Deo said the
new category was for knowledge
workers who were employed and
voting in Penang.
Non-Penangites are also eligible
if they can show proof that they
have been staying and working in
the state for the last five years and
are registered as voters there.
He said the proposal for the new
category was by state investment
authority InvestPenang, which had
conducted a survey that showed
Penang would need to fill 13,088
new jobs in engineering, accountancy and technology in the private
sector by 2017.
To qualify, applicants should
either have a diploma and a minimum of two years work experience,
or a bachelor’s degree recognised
by the government.
InvestPenang has also proposed
that the five-year residency require-
LAUNCHES & EVENTS
Official launch of Fairfield
Villas @ Yarra Park
ment be waived for knowledge work- pan, Tanjung Belungkor and Ladang
ers from other states. — The Malay- Siang, Desaru span 8,000ha, and are
sian Insider
located about 30km from the Refinery and Petrochemical Integrated
Paramount bids for RM2 bil
Development (Rapid) project.
property projects, targets
“Kulim is re-exploring property
RM600 mil sales
investment as there’s stable demand
Paramount Corp Bhd is on track to for properties in strategic areas that
achieve its RM600 million property would give a huge impact considering
sales target within the next three that Rapid is currently being develyears by capitalising on existing oped,” he said on June 2. — Bernama
projects and RM2 billion worth
of bids, said group chief executive Five joint-venture townships
worth RM10 bil planned
officer Jeffrey Chew Sun Teong.
Paramount has six on-going pro- for Selangor
jects. Chew said the developer has Selangor’s newly incorporated sova tender book of some RM2 billion, ereign wealth fund, Darul Ehsan
which includes a bid under the Investment Group Sdn Bhd (DEIG),
Employees Provident Fund’s Kwasa will be developing five townships
Damansara project in Sungai Bu- in Selangor with a total gross deloh, Selangor.
velopment value (GDV) of RM10
“We are very much on track and billion, according to a report in
hope to achieve RM600 million of The Edge Financial Daily on June 1.
property sales within the next two
They will be jointly developed
to three years. This will be achieved with partners from the private sector,
as four of Paramount’s property including public-listed developers,
projects will come on board in the that will be identified by year-end.
coming years,” Chew said on June 3.
The projects, which are currentAccording to notes accompany- ly being planned, will be in Shah
ing Paramount’s latest financials, the Alam (GDV: RM5 billion), Gombak
company had achieved new proper- (GDV: RM1 billion), Section 14,
ty sales of RM157 million in the first Petaling Jaya (GDV: RM1 billion)
quarter ended March 31, 2015. The and two other projects in Bukit
company said the new sales would Beruntung that are still in the preboost “lock-in sales brought forward”. liminary stages.
Chew said Paramount expected
Menteri Besar Inc of Selangor
to register some RM400 million of group chief operating officer Sofunbilled property sales in FY2015 fan Affendi Aminudin said the
from FY2014.
joint-venture (JV) structure will
be based on share of GDV and not
Kulim plans mixed-use
by equity.
property project in Pengerang
Selangor Menteri Besar MoKulim (Malaysia) Bhd plans to de- hamed Azmin Ali had earlier told
velop mixed-use property projects The Edge weekly that the state govon two of its oil palm plantations in ernment plans to develop some
Pengerang, Kota Tinggi, in Johor. 5,000 acres of land over the next
Its chairman Datuk Kamaruz- three to five years to make property
zaman Abu Kassim said the oil palm development the main contributor
plantations at Ladang Sungai Pa- to state revenue.
If you have any real estate-related events, email us at [email protected].
Events listed here will also appear on theedgeproperty.com.
panoramic views of Melbourne.
The development consists of 249
stylishly designed apartments, four
townhouses and six shops, with
hotel-style amenities. Selling prices
start at A$395,000 (RM1.13 million).
in the country held over three days
this weekend. It will feature talks
by property industry experts.
Tropicana Metropark
Family Activity
Date: June 6
Venue: Yarra Park Sales Gallery
@ Sungai Petani, Kedah
Time: 10am
Contact: (04) 425 1818
Fairfield Villas at Yarra Park
by OSK Property Holdings Bhd
consists of 122 units of 2-storey
bungalows, with a built-up area
of 3,500 sq ft and land size of
5,400 sq ft. Selling prices start at
RM821,800. Yarra Park is a “green
township development project”.
Malaysian Secondary
Property Exhibition
(Maspex 2015)
Date: June 5 to 7
Venue: Level 3, Sutera
Mall, Skudai, Johor
Time: 10.30am to 10.30pm
Contact: (07) 352 2228
Maspex 2015 is the largest
showcase of secondary properties
Date: June 6 and 7
Venue: Tropicana Metropark
Property Gallery, Subang Jaya
Time: 10am to 6pm
Contact: (03) 5636 6888
Tropicana Metropark invites
the public to join its “Family
Bonding over Cravings” event
this weekend. Guests will delight
in the variety of bites from food
trucks and food stalls and find out
more about the sales packages
available for a limited time only.
sauna, multipurpose hall, and
entrance card access. The units
have a built-up area of between
1,227 sq ft and 2,486 sq ft. Selling
prices start at RM599,395.
Exhibition launch of Nest
at the Hill @ Melbourne,
Australia
Opal Residensi official launch
Date: June 6
Venue: Sales Gallery, Kompleks
PKNS, Shah Alam
Time: 10am to 5pm
Contact: (013) 332 5511 / (017)
250 1723 / (013) 392 9804
Opal Residensi is strategically
located in Section 7, Shah Alam.
The development has a “Green
Living concept to amplify comfort
and convenience”. Facilities
include swimming pool, gym,
Date: June 6 and 7
Venue: Hibiscus and Iris
room, One World Hotel, PJ
Time: 10am to 7pm
Contact: (012) 304 6887/
(016) 208 0718
Nest at the Hill is a freehold
development located on the highest
point of Doncaster Hill, adjacent
to Westfield shopping centre, with
Exhibition launch of
Kensington Gardens @
Vancouver, Canada
Date: June 6 and 7
Venue: Level 6, Hilton Kuala Lumpur
Time: 10am to 7pm
Contact: (017) 317 2326/(012) 908
6318
Kensington
Gardens is
an integrated
urban
community
comprised
of three
residential
towers, a
collection of
townhouses
and
residential podium, all linked by an
elevated landscaped courtyard, a
new park, lane and plaza. Selling
prices start at C$350,000 (RM1.04
million), with up to 8% annual
rental yield for the first three years.
EP
6
PROPERTY
| NEWS
OSK Property launches its
second township in Kedah
Yarra Park, with a gross development value of RM1.3 billion, will cover 430 acres
BY RAC H EL C H EW
KUALA LUMPUR: OSK Property Holdings
Bhd will officially launch the first precinct in
its second township project in Sungai Petani,
Kedah, called Yarra Park this weekend.
The precinct is dubbed Fairfield Villas
and will offer 122 two-storey bungalows.
“We had soft launched Fairfield Villas
three weeks ago and the response was great,”
shared OSK Properties Sdn Bhd’s head of
branch, Paul Tan with The Edge Property.
He added that those who came to look
at the show unit were made up of locals
from Sungai Petani and Alor Setar as well
as those from Penang.
Yarra Park, with a gross development
value of RM1.3 billion, will cover 430 acres.
Once completed it will have eight precincts
and extensive landscaping that includes
18 acres of lakes and greenery, added Tan.
OSK Property’s first township development in Kedah is the 2,582 acre Bandar
Puteri Jaya that took off in 1999. It consists
of three phases with a gross development
value of RM3.8 billion.
“We are in the midst of constructing our
final phase which was launched two years
ago. It comprises 2,300 residential units.
The whole township should be completed
by 2019 and there will be more than 10,000
homes upon completion,” said Tan.
“We have seen Sungai Petani experiencing rapid development in the past few
years and more bungalow projects are being
launched here. Buyers who are interested in
Fairfield Villas either wish to upgrade their
lifestyles or are looking for a spacious home,”
Tan noted, adding that target buyers were
Artist’s impression of the homes in Fairfield Villas, Yarra Park. Photo by OSK Property
local business owners and professionals,
as well as those from the northern states,
especially Penang buyers who are looking
for a larger house.
He said Sungai Petani is the fastest growing town in Kedah and the demand for
quality residential products has increased
significantly in recent years.
Fairfield Villas’ bungalows have 3,460
sq ft of gross floor area while the total land
size is 5,400 sq ft. There are two different
facades, both have double volume living
area, 5 bedrooms and 4+1 bathrooms. The
selling price starts from RM821,800.
The units are equipped with home
alarm systems and UniFi will be ready
upon occupancy. The development is due
for completion in two years.
There will be a club house with facilities
such as an Olympic-size swimming pool,
gymnasium, multi-purpose hall as well
as a nature park with cycling and jogging
tracks, amongst others.
There will also be a one million sq ft
shopping mall by OSK Property to cater
to the residents of the township. “The new
shopping mall is just opposite the township,
which will be offering a myriad of retail and
F&B options,” Tan said.
Yarra Park is a 10-minute drive from
Sungai Petani town and a 30-minute drive
from the Penang Bridge. It also has easy accessibility via Jalan Kuala Ketil and Eastern
Bypass Expressway.
JB secondary housing growth stagnant
BY L A M JI A N WYN
KUALA LUMPUR: Johor Baru’s residential
market showed no growth in values and
transactions in the first quarter of this year
(1Q2015), according to the latest edition of
The Edge-KGV International Property Consultants Johor Baru housing monitor.
Values of many secondary market homes
in locations covered by the monitor – including popular landed housing schemes in
areas such as Taman Mount Austin, Taman
Bukit Indah, and Taman Sutera Utama, as
well as apartments such as Molek Pine Tower 2 and Petri Condominium – were flat for
at least six months.
KGV International Property Consultants
(Johor) Sdn Bhd director Samuel Tan says
the poor quarter-on-quarter market performance could be due to “the cautious stance
taken by buyers careful not to overprice
their purchases”.
Meanwhile, data collated by theedgeproperty.com as at June 1 showed that transactions of high-rise homes fell drastically from
4Q2013 onwards, right after transactions
and average prices psf peaked at 249 and
RM370 psf in 3Q2013.
The drop in transactions followed the
announcement of further cooling measures in Budget 2014. However, prices then
Average price and volume for Condominium/Apartment/Serviced residence in Johor Baru
*Data from theedgeproperty.com as at June 1
recovered slightly, with minor fluctuations,
over the next few quarters.
As at 4Q2014, transactions fell to 33, but
average prices psf rose to RM320 – the highest since 3Q2013.
Tan says there were also fewer new
launches and previews in 1Q2015 for landed homes and high-rises.
A few notable developments during the
quarter include UEM Sunrise Bhd’s launch
of the 4,000-acre Gerbang Nusajaya, Kuala
Lumpur Kepong Bhd’s land swap of 2,000
acres in Frasers Estate, Kulai for 500 acres in
Gerbang Nusajaya, and Sunway Construction
Sdn Bhd’s RM170-million contract to design
and build the Coastal Highway Southern
Link that will connect its Sunway Iskandar
township in Medini to the Second Link.
The Johor Baru housing market in 1Q2015
is analysed in-depth in The Edge-KGV International Property Consultants Johor Baru
Housing property monitor 1Q2015 that appears in the June 8 issue of City & Country,
the property pullout of The Edge Malaysia.
Top Ryde City
Living named
‘Best Australian
Outdoor Project’
BY R AC H E L C H E W
SYDNEY: Top Ryde City Living was named
“Best Australian Outdoor Project” at the
2015 Housing Industry Association (HIA)-CSR Australian Housing Awards ceremony held at the Gold Coast Convention
& Exhibition Centre last Friday.
The project is by Australia-based property developer Crown Group Holdings.
The HIA-CSR Australian Housing
Awards commends outstanding homes,
kitchens and bathrooms designed and
built by HIA members. Winners are selected from state-based finalists. It has
21 categories of awards.
Crown Group’s Top Ryde City Living,
completed in August 2014, is a seven-tower 653-apartment development that comprises studios, one, two and 3-bedroom
units and penthouses.
Its common facilities include a music
room, library, media theatre, and indoor
and outdoor function areas.
There are also a 25m infinity pool,
extension landscaped gardens, water
features, a children’s playground, and
barbecue zones set among about 6,000
sq m of outdoor space.
“Top Ryde City Living showcased as
the Best Outdoor Project in the country is
a testament to Crown Group’s signature
resort-style living,” said Crown Group
project and commercial sales director
Roy Marcellus in a statement.
More than 600 residents now occupy Top Ryde
City Living. Photo by Crown Group
The development has landscaped areas and resort-style amenities, including
views of the Sydney Harbour Bridge from
the viewing platforms. The Blue Mountains and North Shore are also visible.
More than 600 residents now occupy Top Ryde City Living, positioned on
the vantage point above Top Ryde City
Shopping Centre.
The development is designed by architects Robertson+Marks with its final
stage — Viva by Crown — featuring interiors by Japanese-Australian firm Koichi
Takada Architects.
Top Ryde City Living’s previous accolades include the International Property
Award for Best Residential Development
(Australia) 2014, the Urban Development
Institute of Australia (UDIA) High Density Development Award 2013, the UDIA
NSW President’s Award 2013 and the
Master Builders Association Excellence
in Housing Award 2013.
Crown Group, co-founded in 1994
by architect Iwan Sunito and engineer
Paul Sathio, is a property group specialising in property development,
investment and serviced apartments.
The company has offices in Australia,
Indonesia and Singapore.
NEWS |
World Class
Sustainable Cities
2015 draws regional
participation
PROPERTY
EP
7
Straits International School to
open at Taman Sari, Rawang
BY HA NN A H RA FE E
PETALING JAYA: The seventh international conference of World Class
Sustainable Cities (WCSC) 2015 to be
held in September this year has drawn
participation from Southeast Asian
countries, it was announced yesterday.
The theme for this year’s conference
is “Urban Regeneration Through Smart
Partnerships”.
WCSC 2015 organising chairman
Datuk NK Tong said foreign participants will find the conference format
unique. It will see “city officials, industry
professionals and city dwellers come
together in a collaborative approach to
envision the future of our cities.”
Honorary secretary of the Malaysian
Institute of Architects (PAM) Sarizal
Yusman Yusoff said, “WCSC is a great
opportunity for Kuala Lumpur to showcase and lead the way in urban regeneration in Asean.”
WCSC 2015 will feature a line-up of
distinguished international speakers
that include Stephen Luoni, director
of the University of Arkansas Community Design Center, Arkansas, US;
Sascha Haselmayer, chief executive
officer of CityMart, Barcelona, Spain;
and Catarina Rolfsdotter-Jansson, journalist, moderator and innovator from
Malmo, Sweden.
The annual conference is co-organised by the Real Estate & Housing Developers’ Association Malaysia Wilayah
Persekutuan Kuala Lumpur, the Malaysian Institue of Planners and PAM.
First private international school for the area opens in 2016
BY WO NG K I NG WAI
KUALA LUMPUR: The Straits International Education Group Sdn Bhd (SIEG) will
be opening its second Straits International
School in Malaysia at the 245-acre Taman
Sari township in Rawang by BRDB Developments Sdn Bhd.
This was announced on June 4 at a signing ceremony between BRDB Developments
and Straits International Education Group
for the purchase of a 3-acre plot by the latter
for the school.
It will have a 140,000 sq ft campus and will
open in September, 2016. The first Straits International School opened in 2012 in Bayan
Lepas, Penang.
According to BRDB Developments acting
CEO Edwin Yang (pic), Straits International
School will be the first of its kind in Rawang.
It will be located near the entrance of
Taman Sari, a freehold township development 5km from Rawang town centre and
a three-minute drive from the North Klang
Valley Expressway (NKVE).
The school’s cost of construction is estimated at RM20 million.
According to founding principal of SIEG
Charlie Grayhurst, Taman Sari Rawang residents will enjoy priority status at the new
campus.
The school can accommodate 1,000 students and will offer the British Cambridge Cur-
(From left) Grayhurst, chairman of SIEG Roslan A Ghaffar, director of SIEG Ong Kian Seng, BRDB CFO
Christopher Manivannan and Ng after the signing ceremony. Photo by Haris Hassan/The Edge Property
riculum from nursery to A-Levels.
Meanwhile, BRDB Developments will launch the second
phase of Taman Sari in September. It has an estimated gross development value of RM170 million and comprises 149 superlink
houses.
The project’s first phase,
called Amaryllis, was launched
in May and is almost fully sold.
It comprises 117 units of 3-storey terraced houses priced from
RM895,000.
Taman Sari will accommodate
about 10,000 residents when fully
developed in 10 to 12 years. The
gated township will have a clubhouse, commercial facilities and
other amenities.
PERDANA PARKCITY
Singaporean billionaire invests
in theedgeproperty.com
SINGAPORE: Singaporean billionaire Peter Lim (pic) has taken a 20% stake in new
property portal — theedgeproperty.com,
for an undisclosed consideration.
theedgeproperty.com is owned by The
Edge Media Group, publisher of The Edge
Singapore, The Edge Malaysia, The Edge
Review, The Edge Financial Daily and
theedgemarkets.com
This represents Lim’s first foray into the
technology sector. His major investments
besides the football club Valencia include Thompson Hospital, FJ
Benjamin and McLaren.
“This unique internet technology enables and helps existing
shareholders strengthen their business. The business model is not
disruptive and it is aligned to the interests of the property agents, developers, banks and public users,” said Lim in a statement yesterday.
“The growth prospects are good because it’s scalable and revenue generation is immediate,” he said.
theedgeproperty.com is a fully-inclusive property platform.
Among the special features of the site are: The Edge Fair Value, an
algorithm generated indicative value based on the most recent real
transacted prices; advanced analytics by area and property type on
price per square foot, absolute price, historical price and transaction
volume; advance analytics based on projects — sale transactions,
asking rental, surrounding amenities and comparison with nearby
projects; hot-spot tracker that tells you what is trending; proprietary
news and research; Feng Shui consultation; and free property listings.
The site made a successful debut in Malaysia on May 7, while
the official launch in Singapore will take place on July 25 this year.
Datuk Tong Kooi Ong is the executive chairman of The Edge Media
Group. He started out as a financial analyst who went on to build a
successful universal bank in the 1990s. He is also a pioneer technopreneur who first introduced an integrated online, mobile, equity
trading and e-commerce banking platform in the 1990s.
The crowd lining
up to buy a unit
at Westside III.
Westside III condo in
Desa ParkCity hits 60% sales
BY LI M K I AN WE I
KUALA LUMPUR: Perdana ParkCity Sdn Bhd’s
Westside III condominium in Desa ParkCity, Kuala Lumpur, saw a 59% take-up rate after its priority
launch event on May 30.
“To date, we have sold 276 units or approximately
59% of 469 units of Westside III Condominium at Desa
ParkCity. The interest shown is indeed remarkable given the current market sentiment,” Perdana ParkCity
group CEO Lee Liam Chye told The Edge Property.
He said there were over 100 people queuing in front
of the sales gallery on May 30 at 6.30am. Some, buyers
he added, have been camping there since May 26. He
noted that the majority of the buyers were owner-occupiers. The developer is targeting 70% sales by July.
The RM505 million condominium project is the
developer’s largest condominium project and features 469 units on 1.73 ha of freehold land within its
existing 191.42 ha Desa ParkCity township.
The units have a built-up area of between 1,077 sq
ft and 1,927 sq ft. The partly furnished units are priced
from RM636 psf, with a maintenance fee of 36 sen psf.
There are three different layouts: 2-bedroom +
2-bathroom; 3-bedroom + 2-bathroom; and 3-bedroom + 4-bathroom.
Facilities include a gym, jacuzzi, swimming and
wading pools, multipurpose hall, barbeque area,
jogging track, tennis court, playground and outdoor
water amusement park. The project is scheduled
for completion in May, 2019.
Desa ParkCity is accessible via several highways,
including the Damansara-Puchong Expressway,
Guthrie Corridor Expressway and Middle Ring
Road 2. It is located adjacent to Bandar Menjalara.
The award-winning master-planned township
has a highly sucessful track record of attracting
strong sales.
EP
8
PROPERTY
| C OV E R ST O RY
FR I
PHOTOS BY SUHAIMI YUSUF/THE EDGE PROPERTY
Th
The overview of today’s Kerinchi
mo
cia
hig
nu
Kerinchi’s
rebirth
Non-landed properties expected to enjoy steady
capital appreciation with further gentrification
BY RAC H EL C H EW
T
he Kerinchi and Pantai area located south of Bangsar in Kuala
Lumpur is a growing property
hotspot. The area has benefitted
from the on-going 60-acre integrated development of Bangsar
South by UOA Holdings Bhd, which acquired a portion of Kampung Kerinchi
for redevelopment in 2005. The area
that was once mainly a settlement of
urban pioneers, has become a catalyst for the development of other
property projects there.
The property mix here is varied:
there is low to medium-cost housing
such as the Taman Bukit Angkasa flats;
not-so-old, mid to high-end apartments
such as those in Pantai Hillpark; and
new high-end condos such as those
Tang: These (new) projects will
help to lift the area further and
gradually push up property values.
in Bukit Pantai and Bangsar South. New
projects in this area are being marketed as
an extension of Bangsar, the most obvious
being Bangsar South.
Real estate agents and consultants expect
demand for properties here to rise due to its
excellent location and accessibility, especially with the Federal Highway and
two light rail transit (LRT) stations (Universiti and Kerinchi)
at its doorstep. Mid Valley
Megamall is just down the
road and Kuala Lumpur city
centre is theoretically mere
minutes away.
The gentrification of the
area has boosted the values of
some older properties as well.
In theedgeproperty.
com’s analysis of
transactions in
the Kerinchi/
Pantai area,
including
Bangsar
no
to R
flat
of t
3Q
dir
ind
the
par
Rak
ert
ma
flat
un
Taman Bukit Angkasa Flats
South, it was found that the flats in Taman
Bukit Angkasa completed decades ago enjoyed a 21.1% average price psf growth to
RM195 in the 12 months leading to the third
quarter of 2014 (3Q2014). It is also the highest
price psf growth in the area. (See Chart 1)
Taman Bukit Angkasa Flats is located on
Jalan Bukit Angkasa, off Jalan Kerinchi in
Pantai Dalam. It is a low-cost development
consisting of 21 blocks on leasehold land,
accessible via Jalan Kerinchi that connects
to the Federal Highway and the New Pantai
Expressway (NPE). The Angkasapuri KTM
station is within walking distance.
COO of Henry Butcher Marketing Sdn Bhd
Tang Chee Meng says it is no surprise property values for Taman Bukit Angkasa Flats
have gone up because of its strategic location.
“Kerinchi is halfway between Petaling
Jaya and Kuala Lumpur city centre and is
therefore very centrally and conveniently
located.
“Current asking prices [for the Taman
Bukit Angkasa Flats] are around RM275
to RM282 psf. Rental yields are quite good
and can be as high as 7% to 8%. Such attractive yields entice investors and the
market outlook should be positive. However, if the flat is not properly maintained,
this will restrict growth prospects in the
future,” says Tang.
Steady capital appreciation
Generally, Tang says the price psf of older
non-landed residences in the vicinity should
enjoy steady capital appreciation due to
their central location. Low-medium and
medium-cost properties in the area have
don
bet
ing
(14
of
mi
pri
act
to
in
gro
in 3
Bh
is f
see
res
to t
Ch
ar
de
C OV E R ST O RY |
ERTY
PROPERTY
EP
9
Source: theedgeproperty.com
Chart 1: Kerinchi/Pantai Top 5 condominiums/apartments
by average price annual growth
Source: theedgeproperty.com
Chart 2: Kerinchi/Pantai non-landed residential average price
The Park Residences
d is
ntly
an
275
od
athe
wed,
the
der
uld
to
nd
ave
more upside potential although their appreciation would be at a slower rate to that of
higher-value properties, due to the limited
number of buyers and lack of maintenance.
Data by theedgeproperty.com shows that
non-landed residences in the RM100,001
to RM200,000 price range (mostly low-cost
flats) accounted for the largest market share
of transactions (21.3%) in the 12 months to
3Q2014.
CBD Properties (KD) Sdn Bhd executive
director Daphne Chan believes the findings
indicate that old non-landed properties in
the same area have been undervalued compared with newer projects.
“Flats in Taman Bukit Angkasa and Kondo
Rakyat are in hot demand. These old properties are still undervalued while rental demand is huge,” Chan says. She adds that the
flats have a wide tenant mix of local families,
university students and foreign workers.
The mid-end property segment has also
done well, with sales of non-landed homes
between RM500,001 to RM600,000 accounting for the area’s second-largest market share
(14%). This was followed by transactions
of homes between RM1 million to RM1.5
million (5.6%).
Notably, Pantai Hillpark 5 enjoyed strong
price appreciation, with the average transacted price growing 20.2% year-on-year
to RM429 psf while The Park Residences
in Bangsar South saw average price psf
grow 16.4% year-on-year to RM726 psf
in 3Q2014.
Hartamas Real Estate (OUG) Sdn
Bhd team manager Janet Chong, who
is familiar with properties in the area,
sees great potential in its non-landed
residences, especially those located close
to the commercial area.
“The Park Residences, for exam-
Chan: Old properties [in Kerinchi]
are still undervalued while rental
demand is huge.
ple, is one of the most sought-after properties
in the area. The transacted price has increased
as much as 50% over the past four years,” she
says, adding that a unit with a built-up area of
1,485 sq ft was transacted at RM1.2 million recently. The freehold development was among
the top five projects with the highest year-onyear average price growth psf in 3Q2014, according to theedgeproperty.com data.
“The current price psf of non-landed
homes near Bangsar South is between RM850
and RM900. One unit could easily be rented out at RM4,500 to RM5,000 per month,”
says Chong.
Chong believes the estimated 60:40 ratio
of locals to foreign tenants is supporting the
price growth. “South of Bangsar is so close
to KL city centre and it is accessible by all
kinds of public transport. Foreign expats
from Japan, China, India and Dubai are often looking out for a unit here, because it is
convenient and peaceful to stay here and
work in KL,” says Chong.
Despite the price growth recorded by the
properties mentioned above, non-landed
residences in Kerinchi/Pantai saw a 16%
overall drop in average price psf to RM421 in
3Q2014 from RM501 a year ago (see, Chart
2). However, theedgeproperty.com notes
that the price fall was due to an unusually
large number of transactions of lower-end
flats during that quarter. In comparison,
prices in the preceding year had grown
22.7% year-on-year.
The outlook for the area remains positive, says Henry Butcher’s Tang. He believes
transaction activity and average price psf
will pick up in the near future because of the
many new mid to high-end condominium
projects to be launched in the area, such
as Nova Pantai by Malton Bhd and Secoya
Residences @ Pantai Sentral Park by IJM
Land Bhd.
The 58-acre Pantai Sentral Park is the largest new mixed-use development project, with
a gross development value of RM2.5 billion,
while Secoya Residences is in its second phase
of development. (Its first phase, Inwood Residences, was launched in mid-2014.)
Other soon-to-be-completed mid to highend condominium projects in the area include Saville @ The Park by MKH Bhd (July,
2015) and South View Serviced Apartments
by UOA Holdings, which was 90% sold before its official launch (2016). “These projects
will help to lift the area further and gradually
push up property values,” says Tang.
He thinks there isn’t an oversupply situation in the area yet. “There are still small
parcels of vacant land available for development. Generally, I believe residential land
of around three to five acres in a good
location would probably be priced at
RM200 and above psf.”
All the non-landed residences here
have appreciated in value due to the
transformation of the area from an urban pioneer settlement into a middle
to high-income neighbourhood. They
also benefit from a central location.
“With the continued development
and upgrading of the Kerinchi area,
properties here can be expected to
appreciate in value,” says Tang.
Chong: The current price psf of nonlanded homes near Bangsar South is
between RM850 to RM900.
How it all began
LOCATED beside the Federal Highway
near Universiti Malaya, Kampung Kerinchi is thought to have been founded
by a group of Sumatrans hailing from
a place called Kerinchi in Indonesia
in the 1890s.
They had first set foot in Bukit Nanas
and Sungai Besi as early as the 1850s
and later settled in Kampung Kerinchi,
where they cultivated the land.
While the Kerinchi area has since
grown as an urban hamlet halfway
between Kuala Lumpur city centre
and the satellite town Petaling Jaya,
the village itself is shrinking and little
of what it used to be is left, apart from
large blocks of public housing near
the Kerinchi LRT station. A significant
portion has been redeveloped into
the integrated property development
project called Bangsar South, among
others. Bangsar South features several
modern office towers, mid to high-end
condominiums, as well as retail and
commercial spaces.
Prior to construction, the developer had carried out upgrading works in
Kampung Kerinchi in 2007, which saw
the widening of the main access road,
new pedestrian walkways and landscaping works, in an effort to make the
area appealing to potential buyers. Road
improvement works continue today.
Landmarks in the Kerinchi/Pantai
vicinity include the Angkasapuri building, Universiti Malaya, Pantai Hospital,
and the Universiti and Kerinchi LRT
stations.
Existing residential projects in the
immediate vicinity of Kampung Kerinchi consist of affordable apartments
and flats such as Vista Angkasa Apartments and Sri Angkasa flats.
EP
10
PROPERTY
| M A R K E T WAT C H
Go to theedgeproperty.com for more listings
FOR SALE [in Kerinchi/Pantai, Kuala Lumpur]
to appreciate. Price negotiable.
Agent/negotiator: Vivien Choy
of City Real Properties
Tel: (012) 234 2333
Centrio Pantai Hill Park
Type: Soho
Tenure: Leasehold
Asking price: RM700,000
Built-up area: 705 sq ft
Bedroom: 1
Bathrooms: 2
Description: Duplex unit on
high floor. Furnished, with
air-conditioning, cooker hob,
hood and water heater. Balcony
with a pool view. Tenanted.
Agent/negotiator: Jaclyn Yee
of Carey Real Estate Sdn Bhd
Tel: (012) 202 4990
Pantai Hillpark 3
Type: Condominium/
serviced residence
Tenure: Leasehold
Built-up area: 1,325 sq ft
Bedrooms: 3
Bathrooms: 2
Description: Low-rise corner unit
facing garden/park, with balcony.
Furnished, with bathtub, walk-in
wardrobes, air-conditioning, cooker
hob and hood, hair dryer and
water heater. Good accessibility via
New Pantai Expressway, Federal
Highway and Sprint Highway.
LRT station within 2km. Bangsar
Village, BSC, Mid Valley Megamall,
Amcorp Mall, Jaya Shopping
Centre eight minutes’ drive away.
Agent/negotiator: SK Yeo
of Reapfield Properties
(State) Sdn Bhd
Tel: (012) 302 8238
Bedrooms: 1
Bathrooms: 1
Description: Mid-floor unit with
pool view. Fully furnished with
air-conditioning, kitchen cabinets,
built-in TV stand and wardrobes.
Tenanted. Minutes away from Mid
Valley, Petaling Jaya and Bangsar.
Agent/negotiator: Janet Chong
of Hartamas Real Estate Sdn Bhd
Tel: (012) 318 8099
Camellia Serviced Suites,
Bangsar South
Type: Condominium/
serviced residence
Tenure: Leasehold
Bedroom: 1
Bathroom: 1
Description: Partly furnished, with
full set of good quality built-in kitchen
cabinets, built-in wardrobe, built-in
tall shoe cabinet and air-conditioning;
has a balcony.
Condo offers tight security, infinity
pool, shuttle bus service, cafés,
restaurants and clubhouse. Nearby
amenities include The Sphere
shopping mall, Mid Valley Megamall,
Universiti LRT station, banks, and retail
stores. Accessible via Federal Highway,
NPE, LDP and Sprint Highway.
Agent/negotiator: Evonne Yen
of CBD Properties (Mont Kiara)
Tel: (019) 211 3882
Saville @ The Park
Type: Condominium/
serviced residence
Tenure: Freehold
Asking rent: RM3,000
Bedrooms: 3
Bathrooms: 2
Description: Comes with
balcony, air-conditioning,
water heater and a city view.
Agent/negotiator: Jo Lee of
Ecg Affirm Properties Affirm
Tel: (012) 688 9838
Email: jorentalproperties@
gmail.com
Pantai Panorama
The Park Residences,
Bangsar South
Type: Condominium/
serviced residence
Tenure: Leasehold
Asking price: RM1,580,000
Bedrooms: 3+1
Bathrooms: 3
Description: Tastefully, fully
furnished unit. Faces quiet
side of the development. Tenminute walk to LRT station.
Amenities and eateries nearby.
Facilities: barbecue area,
covered parking, gym, jacuzzi,
playground, sauna, swimming
pool and 24-hour security.
Agent/negotiator: Lucas Lim
of Property Hub Sdn Bhd
Tel: (016) 442 3039
Type: Condominium/
serviced residence
Tenure: Freehold
Bedrooms: 3
Bathrooms: 2
Agent/negotiator: Jo Lee of
Ecg Affirm Properties Affirm
Tel: (012) 688 9838
Zehn Bukit Pantai
Type: Condominium/
serviced residence
Tenure: Leasehold
Bedrooms: 3
Bathrooms: 2
Description: Located just one
floor below penthouse. Enjoys
fantastic breeze from balcony.
Three parking bays. Comes
with air-conditioning, cooker
hob, hood, intercom and water
heater. Available immediately.
Agent/negotiator: Bernard
Khuan of Bernard Realty
Tel: (012) 222 8933
Centrio Pantai Hillpark
Type: Soho
Tenure: Leasehold
Bathrooms: 2
Description: Tastefully furnished
Block A unit facing futsal
court. Good quality wooden
flooring, air-conditioners, blinds,
kitchen cabinet, wardrobe and
lighting. One parking bay.
Agent/negotiator: Janelle
Tan Ace Realty
Tel: (012) 329 3143
Pantai HillPark Phase 2
Type: Condominium/
serviced residence
Bedrooms: 3
Bathrooms: 2
Description: Fully furnished,
high-floor unit with nice view.
Well-kept and in move-in
condition. For families or
professionals. Available now.
Agent/negotiator: Catherine
of Reapfield Properties
(Shah Alam) Sdn Bhd
Tel: (012) 388 5445
Email: cdorall@reapfield.com
SOLD [in Kerinchi/Pantai]
Contract date: 5 Aug 14
Project name: Zehn Bukit Pantai
Address: Jalan Bukit Pantai
Area (sq ft): 3,358
Price (RM): 2,600,000
Price (RM psf): 774
Bangsar South
Type: Condominium/
serviced residence
Tenure: Leasehold
Bedrooms: 3
Bathrooms: 2
Description: Mid-floor unit with
balcony and city view. Renovated.
Fully furnished with walk-inwardrobe, air-conditioning, cooker
hob, hood, bathtub, intercom, water
heater, etc. Near Bangsar, Midvalley
Megamall, PJ and University Malaya.
Amenities include a swimming pool,
mini market, cyber cafe and ATM.
Agent/negotiator: Steve Wong
of LaurelCap Sdn Bhd
Tel: (019) 511 8018
or [email protected]
Zehn Bukit Pantai
Type: Condominium/
serviced residence
Tenure: Leasehold
Bedrooms: 3 +1
Bathrooms: 4
Description: Block B unit, nicely
renovated, partly furnished. Comes
with two parking bays. Very wellkept and hardly lived in. Must view
FOR RENT [in Kerinchi/Pantai]
Camellia Serviced Suites,
Bangsar South
Type: Condominium/
serviced residence
Tenure: Leasehold
Bangsar South
Type: Condominium/
serviced residence
Tenure: Leasehold
Maintenance fee: RM372
Bedrooms: 3
Bathrooms: 2
Description: Mid-floor unit, fully
furnished, swimming pool view.
Spacious living and dining area.
Master bedroom with en suite
bathroom, built-in wardrobe;
second bedroom also has builtin wardrobe. Air-conditioning,
bathtub, cooker hob, hood and
water heater. All bedrooms
illuminated by natural sunlight
and have good ventilation.
Tenanted at RM4,500 until
January, 2016. Vendor keen to
dispose of unit with tenancy.
Easily accessible via
Federal Highway and NPE.
Three-tier security.
Agent/negotiator: Eva Loh of
Full Homes Realty Sdn Bhd
Tel: (012) 228 8890
Project name: Zehn Bukit Pantai
Address: Jalan Bukit Pantai
Area (sq ft): 2,519
Price (RM): 1,840,000
Price (RM psf): 730
Contract date: 13 Oct 14
Project name: Camellia
service suites
Address: Camellia Service Suite
Area (sq ft): 635
Price (RM): 540,000
Price (RM psf): 850
Contract date: 12 Sept 14
Project name: Camellia
service suites
Address: Camellia Service Suite
Area (sq ft): 635
Price (RM): 570,000
Price (RM psf): 898
Project name: Flat Taman
Bukit Angkasa
Address: Off Jalan Pantai Dalam
Area (sq ft): 743
Price (RM): 150,000
Price (RM psf): 202
Project name: Flat Taman
Bukit Angkasa
Address: Jalan Pantai Dalam
Area (sq ft): 689
Price (RM): 140,000
Price (RM psf): 203
Contract date: 2 July 14
Project name: Centrio
SoHo @ Pantai Hillpark
Address: Jalan Pantai Murni
Area (sq ft): 936
Price (RM): 700,000
Price (RM psf): 747
Contract date: 12 June 14
Project name: Centrio
SoHo @ Pantai Hillpark
Address: Jalan Pantai Murni
Area (sq ft): 797
Price (RM): 690,000
Price (RM psf): 866
Project name: Pantai Hillpark 3
Address: Phase 3
Area (sq ft): 1,346
Price (RM): 660,000
Price (RM psf): 491
Contract date: 3 July 14
Area (sq ft): 1,335
Price (RM): 630,000
Price (RM psf): 472
Area (sq ft): 1,044
Price (RM): 430,000
Price (RM psf): 412
LEGAL |
PROPERTY
EP11
10 legal commandments
The
of home buying (Part 1)
Thou shalt observe the 10 legal commandments of home buying for the smooth purchase of thy greatest investment
of thy life. In the eyes of the law, thou art equal notwithstanding race, religion or age and subject to the
laws and principles governing the territory of thy habitation.
B Y C H R I S TA N
Chris Tan is a lawyer, author, speaker and keen observer of
real estate locally and abroad. He is founder and managing
partner of Chur Associates.
If you have questions that you would like to ask Tan, please go to the
Tips section of theedgeproperty.com.
Disclaimer: The information here does not constitute legal advice. Please
seek professional help for your specific needs.
1
2
3
4
5
Thou shalt
have no
more doubts
before signing
the legal
documents
Thou shalt
not make
conditions
of the property
at delivery unto
assumptions
of norm
Thou shalt not
take possession
in a rush
Remember the
timelines and
keep them holy
Honor thy
rights and thy
obligations
IN the excitement of receiving
the keys to your newly bought
property as part of the final
stages of the SPA, be sure to
use the inventory list to check
on the condition of the property (locks, hinges, ceiling, wall
paint, windows, taps, etc) the
first thing you enter your new
home. This is particularly important when you are purchasing from a developer, as the
residential property is subject
to a 24-month defect liability
period. The developer has an
obligation to make good defects within 30 days from the
date of notice, or you may hire
professionals to address the issue and forward the bill to the
developer upon expiry of the
30 days. For a purchase made
on the secondary market, the
buyer has no such luxury of
time but a site inspection when
taking vacant possession would
do the trick.
IN most contracts, you shall
not miss to observe that “time
is of the essence”. There is always a time frame for the discharge of all obligations in the
SPA. Taking the above, for example, the date of delivery of
vacant possession, the period
of the defect liability period
starts from date of delivery of
vacant possession. The effect
of the term shall make it mandatory for you to observe the
timeframe or you shall be in
breach of the SPA. Important
time frames include the period to secure a loan and date
of progressive payments, and
the payment of the balance
purchase price.
THE SPA is a document setting
down your rights and obligations in written form in relation
to the seller. Upon your signing of the document, the rights
and obligations are binding on
you and you shall honour the
same or you will be in breach
of the agreement and may be
penalised by termination of
agreement, forfeiture of deposit, liquidated damages or
late payment interest charges, for example. Conversely, if
the opposite party is in breach,
you can use the signed and
stamped document to enforce
your rights in the civil courts
to obtain a remedy under the
agreement.
THERE are numerous legal documents in a sale and purchase
transaction. However, many disputes relating to a sale and purchase agreement (“SPA”) are in
the vein of “I did not know what
was in the SPA and I signed only”.
The lawyers are then blamed for
not advising their clients properly. Do note that the lawyer is
not the person who signs the
SPA and he or she may not be
able to advise you properly if
you do not raise concerns about
specific matters.
Additionally, the law deems
that you have read and fully
understood the SPA when you
sign on the dotted line. Thus,
it is always advisable to read
through the SPA at least once
and ask your lawyer about the
points that concern you, prior
to executing the SPA, because
there is no turning back after
you’ve signed it and when a
dispute arises.
Meanwhile, your lawyer will
also advise you on your risks
upon conducting the due diligence on the property such as
land search, bankruptcy search
or company search. In short, you
shall understand the impact of
the various legal documents in
the process of purchasing real
estate, even if you are told they
are “standard clauses”.
THERE was once a purchaser who so fell in love with the
decorations of a house that
he bought it. The catalyst for
his swift decision was a magnificent chandelier hanging
at the entrance hall. However, he was devastated to find
out the chandelier had been
removed before he took possession of the house, and that
he had no remedy under the
SPA because the chandelier
was not mentioned anywhere
in it. Thus, when purchasing
property, whether from a developer or on the secondary
property market, make sure
the fixtures and fittings you
are entitled to are documented in the SPA to avoid disappointment when you receive
the keys to your newly bought
home. The same applies to any
repair job to be performed by
the seller on the property prior
to delivery. Remember, proper
documentation eliminates all
false assumptions.
Look out for Part Two next Friday
EP
12
PROPERTY
| DEALMAKERS
Johor international zones will reduce
market speculation
Proposal will help protect the interests of locals in the housing market, say agents
BY L I M KI A N WEI
T
he proposed implementation
of “international zones” for the
purchase of residential property
by foreigners in Johor is likely
to dampen demand for luxury
properties outside of them that
are priced above RM1 million, real estate
agents familiar with the Johor market tell
The Edge Property.
“There should be less speculation in the
secondary market due to restricted foreign
ownership and more genuine homebuyers looking to purchase properties for
[themselves],” says Malaysian Institute of
Estate Agents (MIEA) Johor Youth chairman Roy Liew.
He adds that restrictions on foreigners
purchasing properties outside these zones
may reduce demand for high-end strata
properties in gated developments. This “will
cause a price adjustment of these properties on the secondary market, especially for
properties worth more than RM1 million”.
In recent news reports, Johor state housing and local government committee chairman Datuk Abdul Latif Bandi has said the
proposed international zones will help
protect the interests of locals in the housing market. The locations of these zones
will be announced between July and August, he says.
Roy expects more foreign investment to
flow into the state if foreigners are incentivised to buy properties in these zones.
Real Estate Finders (MY) Sdn Bhd Nusajaya branch associate director Alston Aw
concurs. He adds that foreigners could be
banned from buying properties outside the
Aw: Residential properties priced
above RM1 million outside these
zones will be affected by the
disqualification of foreign buyers
from their market.
Toh Sen: New apartments or
condominiums, particularly around
Danga bay area, are severely
affected due to supply in large
quantity over a short time frame.
designated zones or be charged a fee if they
want to do so.
Aw says residential properties priced
above RM1 million outside these zones will
be affected by the disqualification of foreign
buyers from their market.
MIEA Johor state chairman Liew Toh Sen
agrees that there will be possible price adjustments for luxury properties outside the
proposed zones if foreigners are unable buy
properties outside of them.
Toh Sen estimates that foreign buyers in
the Iskandar region in Johor comprise fewer
than 20% of the primary market, and fewer
than 5% of the secondary market.
Roy and Aw expect high-end condominiums and serviced apartments priced above
RM1 million to fall within the proposed
zones.
Roy Liew: Restrictions on foreigners
purchasing properties outside these
zones may reduce demand for
high-end strata properties in gated
developments.
high-rise residential properties in Johor
Baru may peak between 2017 and 2018,
with the completion of a number of developments.
Toh Sen concurs, saying that “new apartments or condominiums [still under construction], particularly around Danga Bay
area, are severely affected due to supply
in large quantity over a short time frame.”
However, he adds that some high-rise
projects sold well last year despite the
oversupply situation.
“Puteri Cove Residences & Quayside
(developed by Pacific Star Group and DB2
Group) in Puteri Harbour, [saw] 400 units of
luxury residences sold last year. There were
claims that 80% of the units released for
sale was sold to foreigners,” Toh Sen says.
He attributes the high take-up rate to
the project’s close proximity to Puteri
Long-term outlook positive
Harbour and the new state administraAw believes the current oversupply of tion offices. The state government also
helped to promote the project.
The Edge Singapore reported on March
23 that the 400 residential units released
were fully sold at an average of RM1,380 psf.
The units have a built-up area of between
678 sq ft for a 1+1 bedroom unit and 3,918
sq ft for a penthouse unit.
As for other property types, Aw is confident that values for landed homes, shophouses and factories in prime locations in
the Iskandar region will appreciate in the
long term.
Roy says demand for landed properties priced below RM600,000 will remain
strong, and that for affordable homes is still
on the uptrend.
“Landed properties priced below
RM600,000 are still considered affordable. Iskandar Malaysia’s five flagship zones
are still viable to foreign purchasers [or]
investors due to the cost advantages and
incentives on offer compared with other
countries.
“Commercial and industrial properties will remain strong. We foresee multinational companies and small-medium
enterprises setting up regional offices or
relocating their factories [to Iskandar]
from other countries.”
All those interviewed by The Edge Property expect the upcoming high-speed rail
between Kuala Lumpur and Singapore to
spur real estate growth in Johor, especially
in Nusajaya, Batu Pahat and Muar, where
stations have been proposed to be built.
The planned Singapore Rail Transit System
(RTS) extension is expected to double the
volume of commuters between Johor and
Singapore. The RTS extension will reportedly be completed by 2018.
EP
14
PROPERTY
| F E AT U R E
01. The design of the building’s
interior using raw materials gives it an
industrial touch.
02
The entrance of Sinkeh Hotel at 105,
Malay Street.
03. The hotel blends heritage and contemporary
design.
04. The use of glass walls in guest bathrooms ensures
guestrooms receive daylight.
05. Chee: I wanted a building that would function
both as an art space and a small hotel.
06. Tay: The project aims to bring together past,
present, old and new.
Photos by Kenny Yap
01
Sinkeh Hotel is
‘Building of the Year’
02
Veritas Design Group project blends the old and new
BY C H A I Y EE HOONG
A
t first blush, the building located at 105, Malay Street
(Lebuh Melayu) looks like
one of the many faded prewar shophouses in George
Town, Penang, that has seen
better days. But its unassuming facade belies beauty within.
In recognition of its design conservation and adaptive reuse from 19th-century
shophouse into art space and hotel, Sinkeh
Hotel was named “Building of the Year” at
the PAM Awards 2015 held on May 23. It
also won “Gold” under the “Alteration &
Addition” category. The PAM Awards for
architecture are organised by the Malaysian
Institute of Architects.
The Sinkeh Hotel project was undertaken by Veritas Design Group, led by partner
Lillian Tay.
“We are delightfully surprised to receive
the ‘Building of the Year’ award for such a
J U RY ’S C I TAT I O N F O R
SINKEH HOTEL
AN exceptionally bold intervention which
is very sympathetic and sensitive to the cultural and urban context of its surroundings.
It is a brilliant juxtaposition between the
old and the new highlighted by the meticulous and extensive steps taken to ensure
that the two differing aspects of modernity
and tradition are combined harmoniously
together. This dichotomy between old and
new is further accentuated by the apt application of perceptive and well-thought out
details which culminates in a remarkable
amount of spatial character and ambience.
05
06
modest project,” Tay said at a press conference on May 27.
This was the first time the award had
been given since its introduction last year.
Sinkeh Hotel is located in the Unesco
World Heritage site buffer zone of George
Town. It sits on 230.12 sq m of land and offers rooms 16 sq m in size.
According to Tay, the project had the aim
of bringing together past, present, old and
new, as well as heritage and contemporary
design, by inserting a new 3-storey steel pavilion at the back of the 33m-long shophouse
and by preserving its 1920s Straits Chinese
shophouse façade and timber floor structure.
“The back of the house was previously
used as a warehouse and had deteriorated,
so we decided to do a complete rebuild. The
timber from the demolition of the back section was salvaged and recycled to replace
the timber structures at the front section
that were worn down,” Tay said.
One of the challenges faced in the project was the strict Unesco requirements for
heritage building projects which leave little opportunity for contemporary design,
says Tay. Safety regulations for fire exits and
stairways also require the original structure
of the old building to be altered.
A unique feature of the hotel is a gap on
one side of the building, which had been
closed up but has now been uncovered.
The architect took advantage of this unusual feature to allow more daylight into the
interior and to locate a fish pond at one end
of the hotel.
The building’s features include the use
of natural ventilation and light and a traditional open courtyard. A rooftop terrace and
two more floors were added to the original
structure.
Sinkeh Hotel owner Chee Sek Thim, who
bought the building in 2009, wanted the place
to be used as both an art space and a small
hotel that would support the arts.
Twenty sen out of every ringgit from the
proceeds of the hotel go towards supporting
the arts community.
Sinkeh also stages performances, and
organises arts and culture events in George
Town.
Veritas has won numerous awards and
03
04
is well-known for its work globally. Among
the buildings it has designed in Malaysia are
Menara Binjai, the DiGi Corporate Headquarters and Sentral One office tower.
Read more about Sinkeh Hotel in the June/
July 2015 issue of haven
HOME IDEAS |
PROPERTY
EP
15
01. A floral arrangement on display
at a Japanese restaurant in
Pavilion.
02. Kariyazaki ensures not a petal
is out of place.
03. An otherworldly creation
straight out of the ether.
04. Space and flowers complement
each other. Photos by
Haris Hassan
01
02
In the bloom of life
The artistic practice of Ikebana provides insight into
our relationship with flowers and nature
BY CARM EL DOM INIC
F
lowers are more than just pretty things.
Like us, they are living, breathing forms
of life. Renowned Ikebana artist Shogo
Kariyazaki believes that when a flower
arrangement is placed in a home, the
blossoms transform negative energy
into positive and lift the spirits of those in it.
Ikebana is a discipline in which nature and humanity intertwine, and also a form of artistic expression, says Kariyazaki.
“Flowers are a thing of beauty. An arrangement of
fresh flowers, especially, satisfies the senses. It pleases and soothes the eyes, its scent fills up the air. We
breathe it in, and its soft and sometimes satin-like
petals feel good when we touch [them]. But more
than that, it has life and thrives on its surroundings,”
says Kariyazaki, who was in Kuala Lumpur recently.
He says floral arrangements are sensitive to the
prevailing energies in an environment. Like humans, a plant is affected by the emotions of others
and can feel neglect and affection, for example.
Hence, flowers are more likely to stay vibrant in
the presence of admirers and not when they are
seen as just part of the furniture.
Kariyazaki says that if you allow and believe
that flowers have the ability to change your mood,
just sit by one and admire its beauty. In that brief
exchange, you will notice your mood improve tremendously because it is in the nature of a flower to
live in an environment that is happy — and it will
create that environment if allowed.
Interestingly, he also believes that placing a
yellow flower on the west side of a home will encourage good fortune for its inhabitants. Red and
yellow flowers allow one to feel empowered, but
to give your space a more relaxed feel, blue and
purple flowers are recommended.
Kariyazaki advises that different locations in a
home require unique flower arrangements. Each
has to suit the mood and colour of the space. For example, in a room of earthy colours, a green-themed
arrangement is the best match. He emphasises the
need for colour contrast for a balance of moods. If
a room has vertical lines, vining plants such as a
money plant can be used to add texture to it. In a
space that is spare, branches can help occupy space.
The next time you pick flowers for your home
or a gift bouquet, bear in mind that the colours
you choose reflect your mood and feelings at that
point in time. Choose wisely, and it doesn’t hurt to
make another person’s day brighter even if you’re
not having the best of days. Think happy thoughts!
03
04

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