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2013年12月23日星期一
2013年12月21日星期六
UMW sells land to Perodua for RM49m
KUALA LUMPUR: UMW Holdings Bhd's unit, UMW Corporation Sdn Bhd, is selling 47.424ha leasehold land for RM49.1 million to Perodua Sales Sdn Bhd, a unit of Perusahaan Otomobil Kedua Sdn Bhd (Perodua).
The expected gains from the proposed disposal is RM29.6 million, the company said in a filing to Bursa Malaysia today.
"Proceeds from the land sale will be utilised for working capital," the group said, adding that the land would enable Perodua to expand its production capacity within its existing plant.
UMW Group said the proposed disposal is expected to be completed by the first quarter of next year.
Perodua is an associate company of UMW Holdings by virtue of UMW Corporation's 38 per cent equity stake in Perodua
The expected gains from the proposed disposal is RM29.6 million, the company said in a filing to Bursa Malaysia today.
"Proceeds from the land sale will be utilised for working capital," the group said, adding that the land would enable Perodua to expand its production capacity within its existing plant.
UMW Group said the proposed disposal is expected to be completed by the first quarter of next year.
Perodua is an associate company of UMW Holdings by virtue of UMW Corporation's 38 per cent equity stake in Perodua
KNM secures RM983m loan
KUALA LUMPUR: KNM Group Bhd has secured a loan of up to 220 million euros or RM983 million from European lenders to settle its existing term-loan for the acquisition of the Borsig Group.
In a filing to Bursa Malaysia today, KNM said the tenure of the loan would be up to five years and expected the full payout for the Borsig Group to improve the company's debt profile.
The group entered into an agreement on Wednesday with UniCredit Bank AG, UniCredit Luxemborg SA and other participating financial institutions.
"The term-loan facility shall ultimately be applied towards the full discharge and settlement of the company's existing term-loan for the Borsig Group acquisition," added KNM
In a filing to Bursa Malaysia today, KNM said the tenure of the loan would be up to five years and expected the full payout for the Borsig Group to improve the company's debt profile.
The group entered into an agreement on Wednesday with UniCredit Bank AG, UniCredit Luxemborg SA and other participating financial institutions.
"The term-loan facility shall ultimately be applied towards the full discharge and settlement of the company's existing term-loan for the Borsig Group acquisition," added KNM
AMMB, Metlife tie up in insurance and takaful
KUALA LUMPUR: AMMB Holdings Bhd has signed an agreement with MetLife Inc's unit MetLife International Holdings Inc to seek regulatory approval of a proposed strategic partnership involving AmLife Insurance Bhd and AmFamily Takaful Bhd.
Upon receipt of regulatory approvals and satisfaction of certain other conditions, the proposal will result in MetLife owning 50 per cent plus one share in AmLife with the remaining shares to be owned by AMMB, and AMMB owning 50 per cent plus one share in AmTakaful with the remaining shares to be owned by MetLife, the company said in a statement.
It said the proposal will see AmLife and AmTakaful entering into exclusive 20-year bancassurance and bancatakaful agreements for the distribution of life insurance and family takaful products through the distribution network of AMMB's banking subsidiaries, AmBank (M) Bhd and AmIslamic Bank Bhd, across Malaysia.
The total consideration for the proposal payable by MetLife is RM812 million upon completion, subject to customary adjustment.
"The proposal is subject to the prior written approval of Bank Negara Malaysia and/or the Minister of Finance. Upon the receipt of the aforesaid regulatory approvals, AMMB and MetLife will execute definitive agreements, after which the proposal will close upon the satisfaction of certain other conditions," it said.
Upon receipt of regulatory approvals and satisfaction of certain other conditions, the proposal will result in MetLife owning 50 per cent plus one share in AmLife with the remaining shares to be owned by AMMB, and AMMB owning 50 per cent plus one share in AmTakaful with the remaining shares to be owned by MetLife, the company said in a statement.
It said the proposal will see AmLife and AmTakaful entering into exclusive 20-year bancassurance and bancatakaful agreements for the distribution of life insurance and family takaful products through the distribution network of AMMB's banking subsidiaries, AmBank (M) Bhd and AmIslamic Bank Bhd, across Malaysia.
The total consideration for the proposal payable by MetLife is RM812 million upon completion, subject to customary adjustment.
"The proposal is subject to the prior written approval of Bank Negara Malaysia and/or the Minister of Finance. Upon the receipt of the aforesaid regulatory approvals, AMMB and MetLife will execute definitive agreements, after which the proposal will close upon the satisfaction of certain other conditions," it said.
TRX invites investors to become partners
KUALA LUMPUR: 1MDB Real Estate Sdn Bhd (1MDB RE) has invited qualified investors to submit proposals for Stage 1 of The Tun Razak Exchange (TRX).
In a statement today, 1MDB RE said for Stage 1, components included four office towers, including a signature tower, up to five residential towers, up to two five-star hotels and a retail mall.
"1MDB RE looks forward to both joint-venture partnership opportunities and outright plot sales," it said.
For the majority of the TRX development, 1MDB RE said it would continue to hold equity interests through joint ventures.
"The land sales, meanwhile, will be considered on a case-by-case basis and will be subject to the masterplan," it said.
Chief Executive Officer of 1MDB RE, Datuk Azmar Talib, said the company was looking forward to work with world-class investors and institutions.
Spread over 28 hectares of prime freehold land minutes from the Petronas Twin Towers, TRX is a key step towards the goals of the government's Economic Transformation Programme to turn Malaysia into a high-income economy by 2020.
In a statement today, 1MDB RE said for Stage 1, components included four office towers, including a signature tower, up to five residential towers, up to two five-star hotels and a retail mall.
"1MDB RE looks forward to both joint-venture partnership opportunities and outright plot sales," it said.
For the majority of the TRX development, 1MDB RE said it would continue to hold equity interests through joint ventures.
"The land sales, meanwhile, will be considered on a case-by-case basis and will be subject to the masterplan," it said.
Chief Executive Officer of 1MDB RE, Datuk Azmar Talib, said the company was looking forward to work with world-class investors and institutions.
Spread over 28 hectares of prime freehold land minutes from the Petronas Twin Towers, TRX is a key step towards the goals of the government's Economic Transformation Programme to turn Malaysia into a high-income economy by 2020.
M'sia to be LNG import-free nation by 2016
MALACCA: Malaysia will be a liquefied natural gas (LNG) import-free country by 2016 once the Bintulu Floating Liquefied Natural Gas Plant is operational at full capacity, a Petronas senior official said.
Ezhar Yazid Jaafar, General Manager (Petronas gas and power business, Malaysia gas management), said the 3.6 million tonnes per annum-capacity plant will be able to accommodate Melaka's Sungai Udang LNG Regassification Terminal storing capacity of 3.8 million tonnes per annum, which currently came from overseas.
The RM3 billion regassification terminal is the country's only facility importing LNG.
"Currently, we are importing gas from Brunei, Qatar, Nigeria and Norway on a short-term contract.
"Once the Bintulu plant is operational, we can use the capacity from the plant to replace imported LNG," he told reporterss who were visiting the regassification terminal.
Ezhar Yazid said that over 90 per cent of the gas supplied by the regassification terminal will be channelled to energy generation.
He said currently Petronas is supplying over 50 per cent of the domestic gas-based energy generation and is expected to rise to 57 per cent next year, totalling between 1,250 and 1,300 million standard cubic feet per day (mmscfd).
Of the total capacity, he said, the national oil company supplied 1,000 mmscfd of LNG at regulated price of RM15.20 per million british thermal unit (mmbtu), while the rest which comes from Sungai Udang Regassification Terminal is priced at the open market rate of RM41.68 per mmbtu.
Ezhar Yazid said the country's non-dependency on imported LNG would reduce the risk of global LNG price volatility which is currently hovering between RM50 mmscfd.
Apart from that, he said the regassification plant in Sungai Udang is paving the way for Malaysia to implement open market pricing mechanism for LNG by 2017.
He said the benefit of the open market pricing is that it would reduce Petronas' subsidy burden in LNG business and increase its competitiveness.
Under the mechanism, the regulated LNG price will be reviewed every six months and was suggested by the Energy Commission to increase by RM3 per mmbtu every review until the price meet market level.
He said since 1997, Petronas had to bear about RM200 billion in revenue lost to accommodate various subsidy including gas.
Ezhar Yazid said Petronas is also aiming to maintain Malaysia's position as the world's top three LNG player by 2020.
Currently, Malaysia is in the second spot after gas-rich Qatar.
He said open market pricing would enable the government to roll out targeted subsidy as compared to the extensive subsidy implemented currently, which is also enjoyed by those who are not supposed to.
For this year, Petronas is subsidising almost RM25 billion for oil and gas, of which, more than RM11 billion is for gas alone.
Ezhar Yazid Jaafar, General Manager (Petronas gas and power business, Malaysia gas management), said the 3.6 million tonnes per annum-capacity plant will be able to accommodate Melaka's Sungai Udang LNG Regassification Terminal storing capacity of 3.8 million tonnes per annum, which currently came from overseas.
The RM3 billion regassification terminal is the country's only facility importing LNG.
"Currently, we are importing gas from Brunei, Qatar, Nigeria and Norway on a short-term contract.
"Once the Bintulu plant is operational, we can use the capacity from the plant to replace imported LNG," he told reporterss who were visiting the regassification terminal.
Ezhar Yazid said that over 90 per cent of the gas supplied by the regassification terminal will be channelled to energy generation.
He said currently Petronas is supplying over 50 per cent of the domestic gas-based energy generation and is expected to rise to 57 per cent next year, totalling between 1,250 and 1,300 million standard cubic feet per day (mmscfd).
Of the total capacity, he said, the national oil company supplied 1,000 mmscfd of LNG at regulated price of RM15.20 per million british thermal unit (mmbtu), while the rest which comes from Sungai Udang Regassification Terminal is priced at the open market rate of RM41.68 per mmbtu.
Ezhar Yazid said the country's non-dependency on imported LNG would reduce the risk of global LNG price volatility which is currently hovering between RM50 mmscfd.
Apart from that, he said the regassification plant in Sungai Udang is paving the way for Malaysia to implement open market pricing mechanism for LNG by 2017.
He said the benefit of the open market pricing is that it would reduce Petronas' subsidy burden in LNG business and increase its competitiveness.
Under the mechanism, the regulated LNG price will be reviewed every six months and was suggested by the Energy Commission to increase by RM3 per mmbtu every review until the price meet market level.
He said since 1997, Petronas had to bear about RM200 billion in revenue lost to accommodate various subsidy including gas.
Ezhar Yazid said Petronas is also aiming to maintain Malaysia's position as the world's top three LNG player by 2020.
Currently, Malaysia is in the second spot after gas-rich Qatar.
He said open market pricing would enable the government to roll out targeted subsidy as compared to the extensive subsidy implemented currently, which is also enjoyed by those who are not supposed to.
For this year, Petronas is subsidising almost RM25 billion for oil and gas, of which, more than RM11 billion is for gas alone.
CIMB wins award
KUALA LUMPUR: CIMB Investment Bank was conferred Asia's Domestic Bank of the Year in 2013 by the International Finance Review (IFR) Asia magazine.
The award recognises CIMB's success in realising its regional ambition and delivering a defined growth strategy among many Asian banks that are pushing for a bigger share of Asia's investment banking business, the bank said in a statement today.
"CIMB broke out of the comfort zone, reaping the benefits of an expanded investment banking platform and connecting issuers and investors across Asia," IFR Asia Editor Steve Garton was quoted as saying in the statement.
Last year, CIMB won the IFR Asia's Country Awards for Best Bond and Equity Houses in Malaysia. --
The award recognises CIMB's success in realising its regional ambition and delivering a defined growth strategy among many Asian banks that are pushing for a bigger share of Asia's investment banking business, the bank said in a statement today.
"CIMB broke out of the comfort zone, reaping the benefits of an expanded investment banking platform and connecting issuers and investors across Asia," IFR Asia Editor Steve Garton was quoted as saying in the statement.
Last year, CIMB won the IFR Asia's Country Awards for Best Bond and Equity Houses in Malaysia. --
Tech will replace human interaction:survey
KUALA LUMPUR: Ninety-six per cent of companies in Malaysia believe technology will primarily replace human interaction with customers in the next 10 years, a survey says.
"Anticipating this change, businesses here are making new technology investments, changing business processes and redesigning organisational roles," said Avanade Inc, which commissioned the survey, in a statement today.
Its survey showed that 94 per cent of Malaysian companies polled had changed at least one business process in the past three years to better interact with customers.
For companies making these changes, 77 per cent received higher revenues, 58 per cent saw a rise in customer base and 68 per cent enjoyed a stronger customer loyalty, the survey revealed.
Avanade commissioned the poll on 1,000 executives, business leaders and information technology decision makers in 19 countries, including Malaysia, across 12 industries, in October.
"Anticipating this change, businesses here are making new technology investments, changing business processes and redesigning organisational roles," said Avanade Inc, which commissioned the survey, in a statement today.
Its survey showed that 94 per cent of Malaysian companies polled had changed at least one business process in the past three years to better interact with customers.
For companies making these changes, 77 per cent received higher revenues, 58 per cent saw a rise in customer base and 68 per cent enjoyed a stronger customer loyalty, the survey revealed.
Avanade commissioned the poll on 1,000 executives, business leaders and information technology decision makers in 19 countries, including Malaysia, across 12 industries, in October.
BIIF forecasts initial investment of A$100m
KUALA LUMPUR: The Brisbane Islamic Investment Fund (BIIF), the first Queensland-based and regulated Islamic investment fund, has forecast initial investment of A$100 million.
In a statement today, BIIF said the projection was based on early intentions from investors, with a number of projects identified for commencement in March 2014.
"The initial investment is also expected to utilise some of the excess liquidity of over US$1 trillion in the global Islamic investment funds worldwide in the next decade," it said.
BIIF said it will be involved in the development and creation of syariah-compliant projects that meet pre-defined investment criteria.
"The projects will initially be Queensland based utilising existing intellectual technology and resources.
"These will be expanded to other regions throughout Australia and internationally including Indonesia, Malaysia and the Middle East," it said.
The investment projects to be funded will focus on energy and resources, manufacturing and service businesses, tourism and development, solar and clean energy and livestock, it said.
BIFF said Queensland was selected as the ideal base for the BIIF because it provided a good selection of projects that matched the fund's investment criteria, has good growth prospects and was seen as progressive in supporting investment.
In a statement today, BIIF said the projection was based on early intentions from investors, with a number of projects identified for commencement in March 2014.
"The initial investment is also expected to utilise some of the excess liquidity of over US$1 trillion in the global Islamic investment funds worldwide in the next decade," it said.
BIIF said it will be involved in the development and creation of syariah-compliant projects that meet pre-defined investment criteria.
"The projects will initially be Queensland based utilising existing intellectual technology and resources.
"These will be expanded to other regions throughout Australia and internationally including Indonesia, Malaysia and the Middle East," it said.
The investment projects to be funded will focus on energy and resources, manufacturing and service businesses, tourism and development, solar and clean energy and livestock, it said.
BIFF said Queensland was selected as the ideal base for the BIIF because it provided a good selection of projects that matched the fund's investment criteria, has good growth prospects and was seen as progressive in supporting investment.
Asian markets mixed after Fed stimulus
HONG KONG: Asian markets were mixed on Thursday after the US Federal Reserve said it would start cutting its stimulus programme next month, in a sign of confidence in the country's economic recovery.
The announcement that the bank will whittle down the scheme by $10 billion a month to $75 billion, while keeping interest rates at record lows, sent US shares surging to new records.
Tokyo jumped 1.74 percent, or 271.42 points, to 15,859.22, Sydney rallied 2.08 percent, or 106.1 points, to 5,202.2 and Seoul was flat, edging up 1.02 points to 1,975.65.
Shanghai fell 0.95 percent, or 20.50 points, to 2,127.79 and Hong Kong lost 1.10 percent, or 255.07 points, to close at 22,888.75 on concerns about China's economic outlook.
Shares in emerging economies — which have been in turmoil at the prospect of an end to the bond-buying — were mostly mostly lower, surrendering earlier gains.
Manila fell 0.64 percent, or 38.43 points, to end at 5,923.12 while Bangkok lost 0.24 percent or 3.23 points to close at 1,346.63.
Jakarta ended up 0.85 percent, or 35.70 points, at 4,231.98.
The Fed on Wednesday said it would reduce its bond-buying by a modest US$10 billion to US$75 billion a month from January, citing data indicating the economy is strengthening.
"In light of the cumulative progress toward maximum employment and the improvement in the outlook for labour market conditions, the committee decided to modestly reduce the pace of its asset purchases," the bank's policy committee said in a statement.
It added that it would likely take "further measured steps at future meetings" if the economy continues to improve.
Policymakers also said they would keep interest rates at record lows "well past the time" that the unemployment rate declines below 6.5 percent — its previous cut-off point before tightening monetary policy.
While global markets have been falling on expectations of a taper, the relatively small reduction, and the likelihood of interest rates being kept ultra-low, provided a boost.
The Dow soared 1.84 percent and the SandP 500 jumped 1.66 percent, both hitting new records, while the Nasdaq rose 1.15 percent.
Edward Fung, investment advisory head at Kim Eng Securities in Hong Kong, told Dow Jones Newswires: "From how the US market reacted, it seems to me that US$10 billion tapering is nothing to investors compared to the Fed's commitment to hold interest rates at a low level." D
Despite a late dip in their markets, the news was also welcomed in developing countries, which have declined in recent months as investors repatriate cash back to the United States.
Bank Indonesia deputy governor Perry Warjiyo said: "The amount of tapering is slightly less than expected. More importantly, the announcement provides more clarity to the direction of Fed monetary policy. That will be positive for financial market stability."
The dollar hit new five-year highs in New York after the announcement. It peaked at 104.36 yen at one point — up from levels below 103 yen earlier in Tokyo — before settling at 104.13 yen. In afternoon Japanese trade Thursday it fetched 103.96 yen.
The US unit also edged down against the euro, which bought $1.3690 Thursday against $1.3680 in New York. The euro was also at 142.32 yen compared with 142.56 yen.
The Australian dollar sank to a three-year low of 88.21 US cents at one point from 89.04 cents Wednesday, but climbed to sit at 88.45 cents in the afternoon.
Against emerging market units the greenback rose to 1,060.22 South Korean won from 1,052.35, to 62.11 Indian rupees from 61.87 rupees and to 32.35 Thai baht from 32.23 baht.
The greenback generally benefits from tighter US monetary policy as it means fewer dollars flowing around the financial system.
Oil prices were mixed with New York's main contract, West Texas Intermediate for January delivery, up 28 cents at $98.08 in afternoon trade.
Brent North Sea crude for February eased 36 cents to $109.27.
Gold fetched US$1,205.05 at 1115 GMT compared with US$1,232.79 late Wednesday
The announcement that the bank will whittle down the scheme by $10 billion a month to $75 billion, while keeping interest rates at record lows, sent US shares surging to new records.
Tokyo jumped 1.74 percent, or 271.42 points, to 15,859.22, Sydney rallied 2.08 percent, or 106.1 points, to 5,202.2 and Seoul was flat, edging up 1.02 points to 1,975.65.
Shanghai fell 0.95 percent, or 20.50 points, to 2,127.79 and Hong Kong lost 1.10 percent, or 255.07 points, to close at 22,888.75 on concerns about China's economic outlook.
Shares in emerging economies — which have been in turmoil at the prospect of an end to the bond-buying — were mostly mostly lower, surrendering earlier gains.
Manila fell 0.64 percent, or 38.43 points, to end at 5,923.12 while Bangkok lost 0.24 percent or 3.23 points to close at 1,346.63.
Jakarta ended up 0.85 percent, or 35.70 points, at 4,231.98.
The Fed on Wednesday said it would reduce its bond-buying by a modest US$10 billion to US$75 billion a month from January, citing data indicating the economy is strengthening.
"In light of the cumulative progress toward maximum employment and the improvement in the outlook for labour market conditions, the committee decided to modestly reduce the pace of its asset purchases," the bank's policy committee said in a statement.
It added that it would likely take "further measured steps at future meetings" if the economy continues to improve.
Policymakers also said they would keep interest rates at record lows "well past the time" that the unemployment rate declines below 6.5 percent — its previous cut-off point before tightening monetary policy.
While global markets have been falling on expectations of a taper, the relatively small reduction, and the likelihood of interest rates being kept ultra-low, provided a boost.
The Dow soared 1.84 percent and the SandP 500 jumped 1.66 percent, both hitting new records, while the Nasdaq rose 1.15 percent.
Edward Fung, investment advisory head at Kim Eng Securities in Hong Kong, told Dow Jones Newswires: "From how the US market reacted, it seems to me that US$10 billion tapering is nothing to investors compared to the Fed's commitment to hold interest rates at a low level." D
Despite a late dip in their markets, the news was also welcomed in developing countries, which have declined in recent months as investors repatriate cash back to the United States.
Bank Indonesia deputy governor Perry Warjiyo said: "The amount of tapering is slightly less than expected. More importantly, the announcement provides more clarity to the direction of Fed monetary policy. That will be positive for financial market stability."
The dollar hit new five-year highs in New York after the announcement. It peaked at 104.36 yen at one point — up from levels below 103 yen earlier in Tokyo — before settling at 104.13 yen. In afternoon Japanese trade Thursday it fetched 103.96 yen.
The US unit also edged down against the euro, which bought $1.3690 Thursday against $1.3680 in New York. The euro was also at 142.32 yen compared with 142.56 yen.
The Australian dollar sank to a three-year low of 88.21 US cents at one point from 89.04 cents Wednesday, but climbed to sit at 88.45 cents in the afternoon.
Against emerging market units the greenback rose to 1,060.22 South Korean won from 1,052.35, to 62.11 Indian rupees from 61.87 rupees and to 32.35 Thai baht from 32.23 baht.
The greenback generally benefits from tighter US monetary policy as it means fewer dollars flowing around the financial system.
Oil prices were mixed with New York's main contract, West Texas Intermediate for January delivery, up 28 cents at $98.08 in afternoon trade.
Brent North Sea crude for February eased 36 cents to $109.27.
Gold fetched US$1,205.05 at 1115 GMT compared with US$1,232.79 late Wednesday
FBM KLCI ends lower
KUALA LUMPUR: Subdued demand among investors influenced the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) to close easier today, dragged down by losses in selected heavyweights and blue chips, dealers said.
The FBM KLCI finished the day at 1,846.18, down 1.32 points from yesterday's close, after fluctuating between 1,845.17 and 1,851.53.
Losses in counters like IOI Corp, Petronas Chemicals and DiGi.com dragged down a total of 16.54 points from the composite index. However, gains in Petronas Dagangan, Maxis, SapuraKencana and Tenaga Nasional helped to limit the downtrend.
IOI Corp fell 18 sen to RM4.60, both Petronas Chemicals and DiGi.com lost 11 sen each to RM6.63 and RM4.86, respectively, while Petronas Dagangan soared 78 sen to RM31.00.
Maxis, SapuraKencana and Tenaga Nasional all gained 10 sen each to end at RM7.22, RM4.80 and RM11.04 respectively.
MIDF head of research Zulkifli Hamzah said the uptrend in the local bourse was mainly due to external development, particularly from the United States, with the ongoing Federal Reserve's (Fed) Federal Open Market Committee meeting.
Overnight, the Fed announced that it would start to taper its aggressive bond-buying programme to US$75 billion a month in January 2014 while still promising to hold interest rates close to zero.
"Global equity markets reacted positively to the announcement especially Wall Street and major Asian markets.
"With the decision, a lot of uncertainties in the global level have been removed," he told Bernama.
Zulkifli also said gains on the local bourse, however, was capped by significant foreign selling.
"Fund managers will book profit whenever the market rebounds," he added.
The FBM KLCI finished the day at 1,846.18, down 1.32 points from yesterday's close, after fluctuating between 1,845.17 and 1,851.53.
Losses in counters like IOI Corp, Petronas Chemicals and DiGi.com dragged down a total of 16.54 points from the composite index. However, gains in Petronas Dagangan, Maxis, SapuraKencana and Tenaga Nasional helped to limit the downtrend.
IOI Corp fell 18 sen to RM4.60, both Petronas Chemicals and DiGi.com lost 11 sen each to RM6.63 and RM4.86, respectively, while Petronas Dagangan soared 78 sen to RM31.00.
Maxis, SapuraKencana and Tenaga Nasional all gained 10 sen each to end at RM7.22, RM4.80 and RM11.04 respectively.
MIDF head of research Zulkifli Hamzah said the uptrend in the local bourse was mainly due to external development, particularly from the United States, with the ongoing Federal Reserve's (Fed) Federal Open Market Committee meeting.
Overnight, the Fed announced that it would start to taper its aggressive bond-buying programme to US$75 billion a month in January 2014 while still promising to hold interest rates close to zero.
"Global equity markets reacted positively to the announcement especially Wall Street and major Asian markets.
"With the decision, a lot of uncertainties in the global level have been removed," he told Bernama.
Zulkifli also said gains on the local bourse, however, was capped by significant foreign selling.
"Fund managers will book profit whenever the market rebounds," he added.
MDV to disburse RM100m IPR Fund
KUALA LUMPUR: In the wake of the strong response to its Intellectual Property Financing Scheme, Malaysia Debt Ventures Bhd (MDV) expects all of the RM200 million fund to be disbursed by end-2014.
Amiruddin Kemat, Vice-President of Corporate Planning and Communication Division, said over 20 companies in the biotechnology, creative, as well as information, communications and technology industries had applied to the scheme before its official launch today, with three of them having been approved.
"Some of the applicants being reviewed are in the process of registering their intellectual property rights (IPRs), or having their IPRs being valued by the relevant authority," told reporters after the launch of the scheme here today.
The scheme was part of the government's Budget 2013 announcement that allowed the utilisation of IPR as the collateral for funding of technology companies.
MDV Chairman, Tan Sri Zarinah Anwar, said for younger and smaller tech-focused companies, their lack of trace record and tangile assets often posed a constraint in terms of financing options.
"This is because tangible assets are typically required as security for loans," she said.
MDV said the scheme will allow companies to leverage on their IPRs to secure financing of up to RM10 million, or 80 per cent of the value of their IPR, whichever is lower, for a five-year tenure.
The scheme will also provide an annual interest rate rebate of two per cent and a 50 per cent financing principal guarantee from the government, it said.
It said the three successful applicants -- KRU Malaysia Sdn Bhd, Datamicron Sdn Bhd and Info Connect Sdn Bhd -- had been granted a total of RM18.7 million in fund, for their IPRs in songs, business intelligence solutions and insurance solutions respectively
Amiruddin Kemat, Vice-President of Corporate Planning and Communication Division, said over 20 companies in the biotechnology, creative, as well as information, communications and technology industries had applied to the scheme before its official launch today, with three of them having been approved.
"Some of the applicants being reviewed are in the process of registering their intellectual property rights (IPRs), or having their IPRs being valued by the relevant authority," told reporters after the launch of the scheme here today.
The scheme was part of the government's Budget 2013 announcement that allowed the utilisation of IPR as the collateral for funding of technology companies.
MDV Chairman, Tan Sri Zarinah Anwar, said for younger and smaller tech-focused companies, their lack of trace record and tangile assets often posed a constraint in terms of financing options.
"This is because tangible assets are typically required as security for loans," she said.
MDV said the scheme will allow companies to leverage on their IPRs to secure financing of up to RM10 million, or 80 per cent of the value of their IPR, whichever is lower, for a five-year tenure.
The scheme will also provide an annual interest rate rebate of two per cent and a 50 per cent financing principal guarantee from the government, it said.
It said the three successful applicants -- KRU Malaysia Sdn Bhd, Datamicron Sdn Bhd and Info Connect Sdn Bhd -- had been granted a total of RM18.7 million in fund, for their IPRs in songs, business intelligence solutions and insurance solutions respectively
Chin Well earmarks RM10m for 2014 capex
BUKIT MERTAJAM: Chin Well Holdings Bhd, the largest carbon steel fastener manufacturer in Malaysia, has allocated RM10 million as capital expenditure for the 2014 fiscal year to enhance its fastener production capacity.
Its Managing Director Tsai Yung Chuan said the group expects brighter prospects next year following the economic recovery in Europe and the United States (US).
He said there were indications of the recovery as the Group recorded increased sales orders from Europe in recent months.
"Mindful of the tremendous opportunity in Europe and the US, we intend to invest RM10 million in capital expenditure, of which about RM3 million will be utilised to purchase equipment to increase our production capacity," he told reporters after the company's annual general meeting here today.
He said the group also planned to upgrade the production capacity for fasteners at its manufacturing facilities in Penang and Vietnam.
For the first quarter of its financial year ending June 30, 2014 (FY14), group sales to Europe increased 22.4 per cent to RM59.1 million from RM48.3 million in the same period a year ago, due to higher sales orders from restocking and increased housing starts.
Tsai said Europe has always been the largest market for the Group, constituting 44.7 per cent of group revenue of RM461.9 million in FY13.
"We are ready to ride on the economic turnaround of the Eurozone. To date, we have established an extensive distribution network there, particularly among key distributors which supply fasteners for wide-ranging industries such as housing, automotive and infrastructure sectors, all of which are likely to benefit from improved consumer sentiments.
"With this, we remain optimistic that investors will see Chin Well as the proxy to the Eurozone recovery," he said.
He said the group also planned to expand the production of threaded rods following a five-year anti-dumping duty imposed by the US on steel threaded rod manufacturers in India and Thailand effective August this year.
"We believe the new ruling will help to boost our sales of threaded rods in the US but our main market will still be Europe," he said
Its Managing Director Tsai Yung Chuan said the group expects brighter prospects next year following the economic recovery in Europe and the United States (US).
He said there were indications of the recovery as the Group recorded increased sales orders from Europe in recent months.
"Mindful of the tremendous opportunity in Europe and the US, we intend to invest RM10 million in capital expenditure, of which about RM3 million will be utilised to purchase equipment to increase our production capacity," he told reporters after the company's annual general meeting here today.
He said the group also planned to upgrade the production capacity for fasteners at its manufacturing facilities in Penang and Vietnam.
For the first quarter of its financial year ending June 30, 2014 (FY14), group sales to Europe increased 22.4 per cent to RM59.1 million from RM48.3 million in the same period a year ago, due to higher sales orders from restocking and increased housing starts.
Tsai said Europe has always been the largest market for the Group, constituting 44.7 per cent of group revenue of RM461.9 million in FY13.
"We are ready to ride on the economic turnaround of the Eurozone. To date, we have established an extensive distribution network there, particularly among key distributors which supply fasteners for wide-ranging industries such as housing, automotive and infrastructure sectors, all of which are likely to benefit from improved consumer sentiments.
"With this, we remain optimistic that investors will see Chin Well as the proxy to the Eurozone recovery," he said.
He said the group also planned to expand the production of threaded rods following a five-year anti-dumping duty imposed by the US on steel threaded rod manufacturers in India and Thailand effective August this year.
"We believe the new ruling will help to boost our sales of threaded rods in the US but our main market will still be Europe," he said
ASB unitholders to get 7.7sen dividend
KUALA LUMPUR: Amanah Saham Bumiputera (ASB) unitholders will receive a dividend of 7.70 sen per unit for the financial year ending Dec 31, 2013 compared with 7.75 sen last year.
The 8.26 million unit holders, who collectively hold 127.2 billion ASB units, will also receive a bonus of 1.00 sen per unit.
Permodalan Nasional Bhd (PNB) Chairman Tun Ahmad Sarji Abdul Hamid said although the income distribution for this year was slightly lower compared with 2012, the dividend was still competitive amid the global economic uncertainty.
"This rate is also not the lowest that PNB has declared. In 2009, the income distribution declared was 8.65 sen per unit.
"Infact, we can declare a dividend of 10.54 sen per unit for the current financial year, but we brought forward 2.71 sen per unit to help the fund's portfolio to become more competitive in future," he told reporters after announcing the income distribution here today.
The 8.26 million unit holders, who collectively hold 127.2 billion ASB units, will also receive a bonus of 1.00 sen per unit.
Permodalan Nasional Bhd (PNB) Chairman Tun Ahmad Sarji Abdul Hamid said although the income distribution for this year was slightly lower compared with 2012, the dividend was still competitive amid the global economic uncertainty.
"This rate is also not the lowest that PNB has declared. In 2009, the income distribution declared was 8.65 sen per unit.
"Infact, we can declare a dividend of 10.54 sen per unit for the current financial year, but we brought forward 2.71 sen per unit to help the fund's portfolio to become more competitive in future," he told reporters after announcing the income distribution here today.
M'sian economy to grow 5pc in 2014
KUALA LUMPUR: The Malaysian economy is expected to grow by five per cent next year from the 4.6 per cent forecast for 2013, buoyed by strong sustained domestic demand, says MIDF Amanah Investment Bank Bhd.
Its Chief Economist Research Development, Maslynnawati Ahmad, said the domestic demand would continue to be supported by growth in wages and a stable employment outlook.
She said the expected recovery in the external demand would provide a boost to the economy.
"The export sector has been volatile this year but we expect it to pick up next year due to the recovery in the US," she told reporters after the media briefing on Market and Economic Outlook for 2014 here today.
Maslynnawati said all components of exports, such as electrical and electronic products, as well as commodities, were expected to be firmer next year.
Meanwhile, Malaysia's inflation rate was expected to edge up to 3.5 per cent to four per cent next year from 2.1 per cent in 2013.
As of November, the inflation rate stood at 2.9 per cent; it rose 2.8 per cent in October from 2.6 per cent in September.
She said inflation would tick up next year on the back of electricity tariff increases, even though the electricity accounted for just three per cent of the Consumer Price Index basket.
"Second round effects would soon appear, albeit at a gradual pace. We expect the food and non-alcoholic beverages index would resume upward trend in the coming months especially with the upcoming festivities," she said.
MIDF also predicted that Bank Negara Malaysia (BNM) would raise its overnight policy rate (OPR) only if there is strong 'demand-pull' inflation.
Head of Research Department, Zulkifli Hamzah, said the OPR would probably move in the second half of next year.
"But having said that, the electricity tariff and toll rate would probably go up, so raising the OPR is only going to add to the increasing cost of living.
"If possibe, BNM may not raise the interest rate and stay it at three per cent," he said.
It was reported in a daily newspaper that the central bank will raise the OPR from three per cent to 3.5 per cent in the second half of 2014.
The OPR has stayed at three per cent since March 2011. Any change will affect other rates, such as the base lending rate and foreign exchange rate.
Its Chief Economist Research Development, Maslynnawati Ahmad, said the domestic demand would continue to be supported by growth in wages and a stable employment outlook.
She said the expected recovery in the external demand would provide a boost to the economy.
"The export sector has been volatile this year but we expect it to pick up next year due to the recovery in the US," she told reporters after the media briefing on Market and Economic Outlook for 2014 here today.
Maslynnawati said all components of exports, such as electrical and electronic products, as well as commodities, were expected to be firmer next year.
Meanwhile, Malaysia's inflation rate was expected to edge up to 3.5 per cent to four per cent next year from 2.1 per cent in 2013.
As of November, the inflation rate stood at 2.9 per cent; it rose 2.8 per cent in October from 2.6 per cent in September.
She said inflation would tick up next year on the back of electricity tariff increases, even though the electricity accounted for just three per cent of the Consumer Price Index basket.
"Second round effects would soon appear, albeit at a gradual pace. We expect the food and non-alcoholic beverages index would resume upward trend in the coming months especially with the upcoming festivities," she said.
MIDF also predicted that Bank Negara Malaysia (BNM) would raise its overnight policy rate (OPR) only if there is strong 'demand-pull' inflation.
Head of Research Department, Zulkifli Hamzah, said the OPR would probably move in the second half of next year.
"But having said that, the electricity tariff and toll rate would probably go up, so raising the OPR is only going to add to the increasing cost of living.
"If possibe, BNM may not raise the interest rate and stay it at three per cent," he said.
It was reported in a daily newspaper that the central bank will raise the OPR from three per cent to 3.5 per cent in the second half of 2014.
The OPR has stayed at three per cent since March 2011. Any change will affect other rates, such as the base lending rate and foreign exchange rate.
Asian shares up as Fed draws taper's sting
SYDNEY: Asian share markets rose on Thursday after the Federal Reserve drew the sting from tapering its stimulus by recommitting to low interest rates, leaving Wall Street at record heights and the dollar galloping above 104.00 yen for the first time since 2008.
The dollar was a major beneficiary, surging as far as 104.37 yen at one point before pausing at 104.13. The euro toppled back to US$1.3667, from a US$1.3811 top.
The slide in the yen was viewed as positive for Japanese exports and profits, and thus for the Nikkei which climbed 1.7 percent, hitting its highest closing level in six years.
After months of agonising, investors took the Fed's decision to trim its bond buying by US$10 billion to $75 billion a month as a modest step and one the US economy could well withstand.
Crucially, the Fed softened the blow by making its forward guidance even more dovish.
"It likely will be appropriate to maintain the current target range for the federal funds rate well past the time that the unemployment rate declines below 6-1/2 per cent, especially if projected inflation continues to run below the committee's 2 percent longer-run goal," the Fed statement said.
Alan Ruskin, global head of G10 currency strategy at Deutsche Bank in New York, noted the Fed's forecasts for the funds rate had also been trimmed out to the end of 2016.
"This is a very dovish taper-lite where the Fed has done its utmost to provide an offset with forward guidance," said Ruskin.
"It tends to elevate the importance of the inflation rate in decision making should it be meaningfully undershooting target, which is very constructive for risky assets."
The market seemed to agree, with the Dow ending Wednesday up 1.84 percent, while the SandP 500 gained 1.66 percent and the Nasdaq 1.15 percent.
Stocks gained from Sydney to Seoul, while MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.2 percent.
Financial bookmakers expected UK, Germany and French equities to rise as much as 1 percent on Thursday.
Shanghai broke ranks with a drop of 0.6 percent after China's central bank declined to add liquidity to the banking system, pushing up money market rates.
LOW FOR LONGER
The Fed's message that tapering was not tightening looked to have resonated in debt markets as Fed fund futures held broadly steady out to the early 2016 contracts. A first hike in the funds rate is not fully priced in until November 2015.
Treasury yields were stable for three years ahead, while rising at the longer end as the yield curve steepened. Yields on 10-year notes increased 5 basis points to 2.89 percent, but remain below their 2013 peak of 3 percent.
Still, tapering could be a double-edged sword for some Asian countries since it could accelerate the "great rotation" of funds out of emerging markets and into developed world assets.
Indonesia, the Philippines, Thailand and Malaysia have all been hit to a varying extent in recent months.
The Indonesian rupiah hit a fresh five-year low, though the Fed's move was welcomed by Deputy Governor of Bank Indonesia, Perry Warjiyo.
"The announcement provides more clarity for the direction of Fed monetary policy," the deputy governor told Reuters.
"That would be positive for financial market stability, including rupiah stability, going forward. A more visible U.S. economic recovery would also help Indonesian exports."
Others are also better prepared for the change. Notably the mood around India has improved enough that the country's central bank could hold off on hiking interest rates on Wednesday, surprising many.
The fallout in commodity markets was generally muted.
Gold bounced 0.4 percent to US$1,222.60 an ounce, having fallen 1 percent overnight to uncomfortably close to the year low at US$1,211.80. Copper fell the most in nearly three weeks to be down 0.5 percent.
Oil prices took only a small hit, with investors perhaps encouraged by signs of a pick up in global growth.
Brent crude eased 23 cents at US$109.40 a barrel. US oil futures edged back 9 cents to US$97.71 a barrel but are still up over a dollar on the week so far.
The dollar was a major beneficiary, surging as far as 104.37 yen at one point before pausing at 104.13. The euro toppled back to US$1.3667, from a US$1.3811 top.
The slide in the yen was viewed as positive for Japanese exports and profits, and thus for the Nikkei which climbed 1.7 percent, hitting its highest closing level in six years.
After months of agonising, investors took the Fed's decision to trim its bond buying by US$10 billion to $75 billion a month as a modest step and one the US economy could well withstand.
Crucially, the Fed softened the blow by making its forward guidance even more dovish.
"It likely will be appropriate to maintain the current target range for the federal funds rate well past the time that the unemployment rate declines below 6-1/2 per cent, especially if projected inflation continues to run below the committee's 2 percent longer-run goal," the Fed statement said.
Alan Ruskin, global head of G10 currency strategy at Deutsche Bank in New York, noted the Fed's forecasts for the funds rate had also been trimmed out to the end of 2016.
"This is a very dovish taper-lite where the Fed has done its utmost to provide an offset with forward guidance," said Ruskin.
"It tends to elevate the importance of the inflation rate in decision making should it be meaningfully undershooting target, which is very constructive for risky assets."
The market seemed to agree, with the Dow ending Wednesday up 1.84 percent, while the SandP 500 gained 1.66 percent and the Nasdaq 1.15 percent.
Stocks gained from Sydney to Seoul, while MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.2 percent.
Financial bookmakers expected UK, Germany and French equities to rise as much as 1 percent on Thursday.
Shanghai broke ranks with a drop of 0.6 percent after China's central bank declined to add liquidity to the banking system, pushing up money market rates.
LOW FOR LONGER
The Fed's message that tapering was not tightening looked to have resonated in debt markets as Fed fund futures held broadly steady out to the early 2016 contracts. A first hike in the funds rate is not fully priced in until November 2015.
Treasury yields were stable for three years ahead, while rising at the longer end as the yield curve steepened. Yields on 10-year notes increased 5 basis points to 2.89 percent, but remain below their 2013 peak of 3 percent.
Still, tapering could be a double-edged sword for some Asian countries since it could accelerate the "great rotation" of funds out of emerging markets and into developed world assets.
Indonesia, the Philippines, Thailand and Malaysia have all been hit to a varying extent in recent months.
The Indonesian rupiah hit a fresh five-year low, though the Fed's move was welcomed by Deputy Governor of Bank Indonesia, Perry Warjiyo.
"The announcement provides more clarity for the direction of Fed monetary policy," the deputy governor told Reuters.
"That would be positive for financial market stability, including rupiah stability, going forward. A more visible U.S. economic recovery would also help Indonesian exports."
Others are also better prepared for the change. Notably the mood around India has improved enough that the country's central bank could hold off on hiking interest rates on Wednesday, surprising many.
The fallout in commodity markets was generally muted.
Gold bounced 0.4 percent to US$1,222.60 an ounce, having fallen 1 percent overnight to uncomfortably close to the year low at US$1,211.80. Copper fell the most in nearly three weeks to be down 0.5 percent.
Oil prices took only a small hit, with investors perhaps encouraged by signs of a pick up in global growth.
Brent crude eased 23 cents at US$109.40 a barrel. US oil futures edged back 9 cents to US$97.71 a barrel but are still up over a dollar on the week so far.
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