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This digi
FBM KLCI 1731.68
4.82
KLCI FUTURES 1729.00
8.50
STI 3351.33
11.55
RM/USD 3.7495
CPO RM2269.00
48.00
OIL US$65.02
0.57
GOLD US$1176.30
PP 9974/08/2013 (032820)
PENINSULAR MALAYSIA RM1.60 (INCLUSIVE OF 6% GST)
THURSDAY JUNE 25, 2015 ISSUE 1989/2015
FINANCIAL
DAILY
MAKE
BETTER
DECISIONS
www.theedgemarkets.com
2
The Edge warned
over 1MDB reports
6 HOME BUSINESS
Sona Petroleum
remains confident of
meeting QA deadline
7 HOME BUSINESS
China Stationery
focuses on wooing
back clients
13 H O M E
Income gap between
rich and poor states
up in two years,
says think tank
21 F O C U S
Five best weekend
watches
Mercedes-Benz unveils
AMG GT S sports car PA G E 2
0.10
2
T HUR SDAY JU N E 2 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
The Edge warned
over IMDB reports
Due to information that was ‘tampered with’
1MDB: Leaked
PetroSaudi
emails were
tampered
The Edge Communications Sdn Bhd
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KUALA LUMPUR: The Edge and its
owner Datuk Tong Kooi Ong have
been warned by the Home Ministry that publishing permits issued
to the media group can be revoked
over reportage of news concerning 1Malaysia Development Bhd
(1MDB), since leaked information
on the state-owned strategic investor may have been tampered with.
Home Minister Datuk Seri Ahmad
Zahid Hamidi said in a statement last
night that The Edge and Tong had
to take responsibility for reporting
inaccurate news and factual errors.
The statement follows news that
a former PetroSaudi International
Ltd employee had been arrested for
alleged blackmail and fabrication of
information leaked to United Kingdom-based website Sarawak Report.
Ahmad Zahid said the Sarawak
Report had been the prime source
of “false information” which was
subsequently republished by The
Edge and other media outlets.
“The Edge should confirm the
facts first before writing reports. Such
false reports can tarnish journalistic
ethics, and the ministry can cancel or
retract publishing permits,” he said.
“The ministry has been made to
understand that based on forensic investigations, a portion of the
emails and documents that were
published in the blog (Sarawak
Report) were tampered [with] after being stolen from PetroSaudi.
“Data stolen was incomplete and
had undergone an editing process
that was done professionally after
being extracted from PetroSaudi’s
system with the intention of attacking and tarnishing the image of the
organisation and certain individuals,” Ahmad Zahid said.
Ahmad Zahid’s statement follows developments since Monday,
when Thai police arrested Xavier
Andre Justo, a former executive
with PetroSaudi, in Koh Samui.
Computers, hard drives and other data storage devices were seized
during his arrest.
Justo was reported to have been
paid some RM15 million to leave
PetroSaudi, and is now accused of
asking for more money in an attempt to blackmail the oil company
over its deals with 1MDB.
After Thai media reported Justo’s
arrest yesterday, PetroSaudi issued
a statement last night to say that it
was “relieved” and that the company
had been made victim of a “regrettable crime that has unfortunately
been politicised in Malaysia”.
Yesterday, New Straits Times
(NST) also carried a report stating
that documents leaked on 1MDB’s
2009 business deal with PetroSaudi
had been edited before they appeared on the Sarawak Report
website.
NST quoted an unnamed source
from international cyber security
firm Protection Group International (PGI).
1MDB also issued a statement
yesterday to note that initial investigations surrounding Justo’s arrest
showed that some leaked emails
had been tampered with.
Ahmad Zahid in his statement
said he “welcomed” the news about
Justo’s arrest and said the Home
Ministry will work with relevant
authorities across borders to aid
in investigations.
“The ministry has been informed
that Xavier Justo is the individual
who has spread inaccurate information to the blog Sarawak Report,
which had made baseless allegations
against 1MDB,” Ahmad Zahid said.
Sarawak Report has published a
series of documents regarding the
PetroSaudi-1MDB joint venture in
2009, which raised questions about
1MDB’s dealings and also the involvement of Malaysian tycoon Low
Taek Jho. — The Malaysian Insider
Mercedes-Benz unveils AMG GT S
BY GHO CHE E Y UAN
SEPANG: Mercedes-Benz Malaysia
yesterday unveiled the MercedesAMG GT S, the second sports car
developed entirely in-house by
Mercedes-AMG after its first one,
SLS-AMG.
This latest sports addition to the
luxury carmaker’s stable comes in
two variants: the normal edition of
AMG GT and a limited edition of
AMG GT Edition 1.
Mercedes-Benz Malaysia
vice-president of passenger car sales
and marketing Mark Raine said with
the new Mercedes-AMG GT, the
Mercedes-AMG sports car brand is
moving into a new, top-class sports
car segment for the company.
“The new Mercedes-AMG GT
S is a sports car in its purest form.
Breathtaking proportions, powerfully sculpted surfaces and flowing lines turn the new AMG into a
contemporary sports car,” he told
reporters at the launch of the vehicle here yesterday.
“The centrepiece of the Mercedez-AMG GT S, the new 4-litre V8
biturbo, responds instantly with
extreme power right from low revs
and deliver outstanding performance,” he added.
Following the introduction of
the new vehicle, Raine said the
Arrested Swiss
‘IT exec’ was a
PetroSaudi director
BY MO H D FA R H A N DA R W IS
KUALA LUMPUR: Xavier Andre
Justo, the former employee of
PetroSaudi International Ltd
now in custody of the Thai police for alleged blackmail over
leaked information about dealings with 1Malaysia Development Bhd (1MDB), is believed
to be have been a member of
the oil company’s board of directors.
Checks by The Malaysian
Insider on the Swiss national
show that he was not merely
an IT executive, as reported
by Thai media following his
arrest in Koh Samui, Thailand,
on Monday.
The Checkcompany website
showed that Justo, 49, was a director in two companies, PetroSaudi Energy and Trading,
and PetroSaudi International
(UK) Ltd.
He was listed as director of
the first company from March
28, 2011 until April 22, the same
year, and of the UK company
from June 28, 2010 until April
22, 2011.
On another website, Dellam
Corporate Information Ltd, Justo is also listed as a director in
two companies under PetroSaudi International (UK).
Justo had demanded 90 million baht (RM9.9 million) from
PetroSaudi in exchange for not
disclosing confidential information to rival companies but
denied asking for nearly RM10
million more in a blackmail attempt with information regarding 1MDB, Thai police had said.
The Bangkok Post said Thai
police believed Justo leaked information about PetroSaudi to a
“UK-based news website” which
the paper identified as the London-based Sarawak Report.
Citing Malaysian sources,
the paper said the leaks and reports by the website was “part of
a plot to discredit” Prime Minister Datuk Seri Najib Razak,
who is also finance minister and
chairman of 1MDB’s advisory
board. — The Malaysian Insider
CapitaMalls sells
RM255.75m new units
Raine says the Mercedes-AMG sports car brand is moving into a new, top-class sports
car segment for the company. Photo by Shahrin Yahya
group is planning to bring in another lower specification model of
the GT model, which has an engine
output of 340kW.
“Apart from that, we will also be
introducing the C63, a newer variant of our C-class model, by end
of the year,” he added.
The Mercedes-AMG GT S is
priced at RM1.15 million, while
the Edition 1 is priced at RM1.2
million. Both models are now
available for booking.
Raine said Mercedes, which saw
its record monthly sales in May at
1,143 units from 544 units a year
ago, is optimistic that the sales of
Mercedes-Benz cars in Malaysia
will remain satisfactory for the rest
of the year.
This brought its total units sold
in the first five months this year to
4,000, up 66% from the same period last year.
KUALA LUMPUR: CapitaMalls Malaysia Trust , a shopping
mall real estate investment trust
(REIT), is selling up to 190.8
million new units worth up to
US$68.2 million (RM255.75 million) in a book-building process
yesterday, according to a term
sheet seen by Reuters.
The REIT, with a market value of RM2.44 billion, is selling
the units at between RM1.31
and RM1.34 per unit, according
to the term sheet. That is 2.2% to
4.4% lower than its closing price
of RM1.37 per unit yesterday.
The proceeds will be used
to partly finance the acquisition of Tropicana City Mall and
Tropicana City Office Tower in
Petaling Jaya, the sheet showed.
— Reuters
4 HOME BUSINESS
Will the Selangor water
deadlock end today?
Points of contention said to have been settled, federal and state governments set to sign a supplementary deal
BY C Y NTHI A B L E M IN
KUALA LUMPUR: The federal and
Selangor governments are expected to sign a supplementary agreement today, which will see the state
maintaining ownership of its water
assets and Putrajaya proceeding
with the long-delayed development
of the Langat 2 water treatment
plant project.
The deal will effectively put an
end to the Selangor water impasse,
which has been dragging on for
more than eight years.
According to a source close to the
matter, the federal government has
conceded most of the key points of
contention in the master agreement
by the Selangor government, led by
Menteri Besar Mohamed Azmin Ali,
that have stalled efforts to finalise the
state’s water restructuring.
“A key [point of] contention was
that ownership of land that the water
assets sit on remains with the state
government post-restructuring, as
opposed to the federal government
taking over all assets for free,” the
source told The Edge Financial Daily.
It is understood that the ownership of assets such as the Semenyih
and Bukit Nanas water treatment
plants will also remain with the
Selangor government under the
supplementary agreement.
In May, Energy, Green Technology and Water Minister Datuk Seri
Dr Maximus Ongkili announced
that both the federal and state governments had agreed to resolve
the Selangor water impasse within
two months.
According to the minister, the
Selangor government had promised to honour all the commitments
made to expedite the issuance of
the necessary approvals for permits
and land required for the Langat 2
project and its distribution system.
Yesterday, Bernama reported
Kumpulan Perangsang Selangor
Bhd (KPS) as saying it hoped that
the Selangor water restructuring
will be resolved soon so the group
does not continue to incur debt.
Its chairman Raja Datuk Idris
Raja Kamarudin said following the
delay in the restructuring exercise,
KPS has been saddled with debts
of close to RM1 billion.
“As a company with the biggest
stake in the water industry, we want
the water restructuring to be expedited. This is because as a commercial
company we are faced with various
pressures, especially financial pressure, whereby our debt has reached
RM1 billion to date,” he was quoted
in the Bernama report as saying after
KPS’ annual general meeting.
KPS holds a 30% stake in Syari-
MACC, Mara looking at Melbourne
property deal before expose
BY TERENC E FERNANDEZ
& EL I ZA B ET H ZACHARIAH
PUTRAJAYA: The Malaysian Anti-Corruption Commission (MACC)
and Majlis Amanah Rakyat (Mara)
have initiated investigations into
the latter’s Australian property deal
even before Australian newspaper
The Age exposed the multimillion
ringgit deal.
Mara chairman Tan Sri Annuar
Musa said Mara had begun investigations into the purchase of a hostel
in Melbourne by one of its subsidiaries two months ago.
“We were in the midst of conducting an internal auditing process
on Mara Inc when the report by The
Age came out,” he told a press conference yesterday.
“So, it was not shocking news for
us as Mara was already taking action.
But we will take the report from The
Age as additional information to help
our ongoing investigation into
Mara Inc,” he said, adding
that two Mara subsidiaries are being investigated by the group, including Mara Inc, which
has been implicated
in the Melbourne
property buy.
Annuar, however,
declined to disclose
what had triggered the
internal audit into Mara
Inc, which has been accused of overpaying by A$4.75
million
for the
Melbourne hostel in 2013.
“The audit started two months
ago, but we have yet to receive a report from Mara Inc. However, the
other subsidiary being audited has
already submitted its report and it
has been presented to the council,”
he said.
As part of upholding its integrity,
Annuar said, Mara performs internal
probes into its subsidiaries from time
to time and Mara Inc was one that
came up because of several red flags.
“We were very concerned. We saw
certain things that had to be looked
into. I visited the property last year
and when I came back, I highlighted
a few things to the council.
“We will now continue the audit,
and I have asked Mara Inc to give me
a written and detailed explanation
of the allegations within the next
seven days. And in 14 days, the Mara
council will meet to discuss our next
step,” he said.
Annuar said the council will
also discuss how to improve the
transparency in its dealings
and maintain its integrity.
“We will also decide on
whether to suspend the
people who were allegedly involved in the deal,”
Annuar said.
When asked if it was Mara’s procedure to use a shell company to
purchase properties overseas, Annuar said it was one of the options
used by its subsidiaries.
“To the best of our knowledge, and
based on information we received,
the property was bought at a fair
market price,” he said, adding that
Mara Inc has assets worth RM600
million in Australia and the United
Kingdom. “Their businesses have
been doing well and have returned
profits beyond our expectations.”
Meanwhile, MACC deputy chief
commissioner Datuk Seri Mohd
Shukri Abdull told The Edge Financial Daily that the commission
has been on the trail of the Melbourne property deal for a month,
and that his officers have travelled
to Melbourne to gather evidence
on the deal.
However, he stressed that no Malaysians have been questioned yet.
“My officers are now in Melbourne working closely with the
Australian authorities. We have
not interviewed anyone yet. My
officers are coming back this Saturday with documents. Then we
will plan further action,” Mohd
Shukri said.
The Age has alleged that three
senior Mara executives “overbid”
Mohd Shukri: My officers are
for the Dudley International House,
from A$17.8 million to A$22.5 milnow in Melbourne working
lion, with the difference pocketed
closely with the Australian
as bribes.
authorities. We have not
The paper also reported that
interviewed anyone
Mara paid A$63.5 million to puryet. Photo by
Bernama chase three other properties in Melbourne via shelf companies.
kat Pengeluar Air Sungai Selangor
Sdn Bhd (Splash) and 90.83% in
Konsortium Abass Sdn Bhd.
The water restructuring had
stalled after Selangor refused to
grant the federal government a third
extension to the master agreement
signed by former Selangor menteri
besar Tan Sri Abdul Khalid Ibrahim
and Ongkili on Sept 14 last year.
Investors reacted positively to
the news of the impending signing
of the supplementary water agreement today, with shares in Puncak
Niaga Holdings Bhd rising as much
as 6.4% to hit an intra-day high of
RM2.82 yesterday.
The stock closed 4.15% higher at
RM2.76 yesterday, bringing a market capitalisation of RM1.15 billion.
Puncak Niaga, which recently
extended the disposal of its water
assets to Pengurusan Air Selangor
Sdn Bhd (Air Selangor) — the sixth
extension to date — to July 13, 2015,
had threatened last week to rescind
its deal with Air Selangor if the water impasse between the state and
federal governments remained unresolved after Ramadan.
Under the sale and purchase
agreement, Puncak Niaga will dispose of its entire equity interest in
Puncak Niaga (M) Sdn Bhd, together
with a 70% stake in Syarikat Bekalan
Air Selangor Sdn Bhd (Syabas), to
Air Selangor for RM1.55 billion cash.
KPS shares also closed up 5% at
RM1.47 yesterday, with a market cap
of RM733.54 million, while water pipe
maker Jaks Resources Bhd, which
is seen as a potential beneficiary of
the Langat 2 project, saw its share
price rise 6.67% to settle at 72 sen.
Gamuda, which has a 40% stake in
Splash, saw its share price rise 0.4%
to close at RM4.96, with a market cap
of RM11.93 billion.
Najib: Mara chief’s comments
on property deal twisted by media
KUALA LUMPUR: Prime Minister
Datuk Seri Najib Razak (pic) said
the controversial purchase by Majlis Amanah Rakyat (Mara) of an
Australian property was decided by consensus in the Economic Council and that some media
organisations had purportedly
twisted Mara chairman Tan Sri
Annuar Musa’s remarks regarding the deal.
“@AnnuarMusa’s statement
was twisted by certain media. Decision was made by consensus by
the Economic Council. However,
investigations will be conducted.
“If anyone is found to have
lied to or misled the members
of the Economic Council, legal
action will be taken,” he tweeted
yesterday.
@AnnuarMusa is Annuar’s
twitter handle. Mara’s purchase
of the Dudley International House
apartment block was overpaid by
A$4.75 million, Australian paper The Age said in a report on
Tuesday.
News portals had reported earlier yesterday, quoting Annuar,
that any investment made by Mara
had to be approved by the Finance
Ministry or the Economic Council
that is chaired by Najib.
“It is part of the procedure. It is
brought to the Mara council and
then to the Rural and Regional
Development Ministry before it
goes to the Finance Ministry or
the Economic Council,” he reportedly said.
Annuar was asked specifically
if the prime minister had to approve the deal before the purchase
was made, to which he said: “Yes,
that is part of the procedure.”
Below is an excerpt of the transcript:
Journalist: Tan Sri, you said
the purchase had to go through
the Economic Council chaired by
the prime minister, right?
Annuar: Yes.
Journalist: Did the prime minister have to approve the deal before the purchase went through?
Annuar: Yes, it is part of the
procedure.
In a Facebook posting later
yesterday, Annuar also lamented news reports that zoomed in
on Najib’s role in the deal.
“What is the motive of Malaysiakini and The Malaysian Insider for choosing a headline ‘Najib
luluskan’ (Najib approved) when
I clearly said the approval was by
the Economic Council.
“This is the procedure that has
been set by the government and
must be followed. The issue of
any individual’s approval, including that of Najib, does not arise,”
he wrote.
HOME BUSINESS 5
THU RSDAY J U N E 25 , 2 015 • T HEED G E FINA NCIA L DA ILY
Tadmax says claims
made by Tony Pua
misleading
Pulau Indah land sale part of restructuring strategy
BY A H MA D NAQ I B I DRIS
KUALA LUMPUR: Tadmax Resources Bhd has come out to say that
the claims made by DAP national
publicity chief Tony Pua on the sale
of its Pulau Indah land in Selangor
to Ivory Merge Sdn Bhd were “misleading” and “incorrect”.
In addressing Pua’s allegations,
the company said it owes it to its
shareholders and stakeholders to
clarify this matter, "who may also
be just as perplexed by the incorrect accusations made against the
company”.
It was responding to allegations
by Pua that the Cabinet had abused
its powers to bail out Tadmax.
In a statement yesterday, Tadmax said it had always acted in the
best interests of its shareholders,
and had disposed of its non-core
assets as part of its restructuring
strategy.
This included the disposal of the
Pulau Indah land to Ivory Merge,
a subsidiary of debt-ridden 1Malaysia Development Bhd.
“Ivory Merge was not the only
company negotiating with Tadmax
to buy the subject property at that
time. There was also no compulsion for Ivory Merge to enter into
the transaction. Tadmax was at that
time already in discussions with
several parties which had indicated interest in the subject property,”
said Tadmax.
It added that the transaction
was done transparently in full compliance with Bursa Malaysia’s requirements.
On the selling price of the land,
Tadmax said that the land was sold
at a price of RM21.80 per sq ft (psf),
in accordance with a valuation carried out by independent valuer
Azmi & Co (Shah Alam) Sdn Bhd
on Jan 25, 2014.
“The valuation was also subject
to the approval of the Valuation Department of the Securities Commission Malaysia [in compliance with
the Compliance Rules of Bursa for
sale of assets],” it said.
The company also noted that the
recent transaction price of land in
Pulau Indah ranges between RM25
psf and RM66 psf.
On Pua’s statement that the land
was valued at RM9.93 psf in August
2011, the company clarified that the
figure was actually the initial cost
of the land in 2005, when Tadmax
acquired it.
It went on to say that assets
under the land and development
expenditure classification are required by the law to be stated at
the lower end of historical costs
and net realisable values, which
can be assessed by undertaking a
revaluation.
On the allegation that Wijaya
Baru Global Bhd (now Tadmax)
was the parent of Kuala Dimensi
Sdn Bhd, the turnkey developer of
the controversial Port Klang Free
Zone project, Tadmax said this is
“factually not correct”.
The company also clarified that
Datuk Seri Abdul Azim Zabidi is
no longer the chairman of Tadmax, following his resignation on
March 24, 2014.
Tadmax (fundamental: 0.6;
valuation: 0.9) shares closed
unchanged at 33 sen yesterday,
with a market capitalisation of
RM146.77 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.
Go to www.theedgemarkets.com for
more details on a company’s financial dashboard.
TNB shares drop on news of
plans to raise RM10b sukuk
BY C H ESTER TAY
KUALA LUMPUR: Tenaga Nasional
Bhd (TNB) shares fell as much as 38
sen or 7.7% in intra-day trade yesterday, on news that the utility giant
plans to raise some RM10 billion in
a sukuk issue to partly finance the
purchase of a 70% stake in Project 3B.
The stock plunged to its intra-day
low of RM12.68 before finishing the
day 2.14% lower at RM12.78, with
13.54 million shares traded. It was
the top loser on Bursa Malaysia
yesterday.
It lost some RM1.58 billion of its
market capitalisation yesterday, with
a final valuation of RM72.13 billion.
Reuters on Tuesday reported
that TNB (fundamental: 1.3; valuation: 1.8) plans to raise as much
as RM10 billion in an Islamic bond
issue, which would be the largest
sukuk globally this year.
Plans for the issue are still preliminary, Reuters quoted two sources as saying in the report.
Tenaga Nasional Bhd
RM
15.5
14.0
12.5
RM12.78
TNB shares fell as much as 7%
last week on news of the planned
purchase, but had since regained
lost ground following its president
and chief executive officer Datuk
Seri Azman Mohd’s statement that
the proposed acquisition is not a
bailout.
"We wish to stress that no premium will be paid for the acquisition
of the 70% stake in the project," Azman said. Japan’s Mitsui Co Ltd will
retain its 30% stake in the project.
MOST VIEWED STORIES ON
theedgemarkets.com
Glomac’s 4Q net profit climbs
31% y-o-y to RM29.24m
BY A H MA D N AQ IB ID R IS
KUALA LUMPUR: Property developer Glomac Bhd saw its net profit
jump 31% to RM29.24 million or
4.06 sen per share for the fourth
financial quarter ended April 30,
2015 (4QFY15), from RM22.34
million or 3.07 sen per share a
year earlier, thanks to contributions from its Saujana Rawang,
Glomac Centro and Reflection
Residences projects.
This was despite a 4% decline
in revenue to RM168.41 million
from RM174.87 million for 4QFY14,
mainly due to the completion of Damansara Residences and tail-end
projects in Bandar Saujana Utama.
The group proposed a final dividend of 2.25 sen per share for
FY15, bringing its total dividend
payout to 4.25 sen per share for
the year.
For the full FY15, net profit
fell 20% to RM86.65 million from
RM108.38 million for FY14, while
revenue dropped 30% to RM472.19
million from RM676.66 million.
In a filing with Bursa Malaysia
yesterday, Glomac (fundamental:
1.2; valuation: 2.4) said it achieved
Chin Well: Sunny Tsai still
controlling shareholder
BY G H O C H E E Y UA N
KUALA LUMPUR: Carbon steel
fasteners manufacturer Chin Well
Holdings Bhd has clarified that
its managing director Sunny Tsai
Yung Chuan remains the group's
controlling shareholder with a
52.9% deemed equity stake.
In a statement yesterday, Chin
Well said Yung Chuan’s deemed
interest is held via his investment
holding company Benua Handal
Sdn Bhd.
“Yung Chuan and his immediate family members of spouse
and children together are currently holding an effective 100%
equity stake in Benua Handal, an
investment company that owns
158.3 million shares or 52.9% of
Chin Well’s total number of shares
of 299.5 million,” said Chin Well.
June 24, 2014
June 24, 2015
On June 18, Energy, Green Technology and Water Minister Datuk
Seri Dr Maximus Ongkili confirmed
that TNB is buying over 1Malaysia
Development Bhd's (1MDB) 70%
stake in Project 3B in Jimah, Negeri
Sembilan, held through 1MDB's
energy arm, Edra Global Energy
Bhd, for an undisclosed price.
The Edge Research's fundamental
more details on a company's financial dashboard.
It said Yung Chuan and his
family members previously held
a 67.4% equity stake, while Tsai
Yung Yu, brother to Yung Chuan
and co-founder of Chin Well, held
the remaining 32.6%.
"On June 22, 2015, Yung Yu
successfully transferred his 32.6%
holding in Benua Handal to Yung
Chuan's immediate family members, thus resulting in Yung Yu
ceasing to be a substantial shareholder of Chin Well," the statement read.
The announcement on the
cessation of Yung Yu’s substantial shareholding in Chin Well
was made to Bursa Malaysia on
Monday.
“Direct substantial shareholding of Chin Well prior to the announcement remains [the] status
quo,” the statement added.
MRCB bags RM485m worth of
construction jobs
BY JANICE MELISSA THEAN
11.0
total sales of RM506 million for the
year, with its landed residential
projects and affordable townships
contributing to more than 80% of
the figure.
Glomac sees a challenging environment going forward, but expects to post satisfactory results
for FY16, backed by its unbilled
sales and future launches.
The group also has a sizeable
land bank of RM7.7 billion in gross
development value (GDV) to support its longer-term prospects.
“This year, Glomac is bringing to [the] market new launches
with an estimated GDV of RM802
million, where the strategic focus
continues to be on landed residential projects, such as Lakeside
Residences in Puchong and Suria
Residen in Cheras, and affordable
townships, such as Saujana KLIA,
Bandar Saujana Utama and Saujana Rawang.
“This year will also see the
maiden launch of its Saujana 5
township, which is an extension
of Bandar Saujana Utama, as well
as for Saujana Jaya, Glomac’s new
township development in Kulaijaya, Johor,” said the group.
KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB) has
bagged three contracts totalling
RM485 million from Destination
Resorts and Hotel Sdn Bhd (DRH)
to build a conference centre and
two hotels, namely Desa Desaru
and Westin Desaru Resort, in Desaru Coast, Johor.
In a filing with Bursa Malaysia
yesterday, MRCB (fundamental: 1.3;
valuation: 1.4) said the construction
projects comprise a RM61.4 million
conference centre, the 386-room
Desa Desaru hotel valued at RM212
million and the 275-room Westin Desaru Resort worth RM211.6
million.
“The construction period of the
projects is between 19 months and
21 months from the date of site
possession of June 25, 2015 (today),” added MRCB. DRH, a wholly-owned subsidiary of Khazanah
Nasional Bhd, is the strategic owner
and developer of Desaru Coast.
6 HOME BUSINESS
T HU R SDAY JU N E 2 5 , 2 0 1 5 • TH EEDGE F I N AN C I AL DAI LY
Sona confident of
meeting QA deadline
Looking at onshore and shallow water projects in Southeast Asia, Middle East, Africa
BY A H MA D NAQ I B IDR IS
KUALA LUMPUR: Sona Petroleum Bhd said it is still confident of
meeting its July 30, 2016, deadline
to make a qualifying acquisition
(QA), following its failed move to
acquire Salamander Energy (Bualuang Holdings) Ltd (SEBG).
Although the deadline only gives
the special purpose acquisition
company a little more than a year to
make its QA — failing which it will
be liquidated and the amount held
in its trust account will be returned
to shareholders — Sona chairman
Andre van Strijp said the company
still has enough time to properly
‘Meuller
appointed MAB
CEO based on
experience’
KUALA LUMPUR: The appointment
of Christoph R Mueller as chief executive officer (CEO) of Malaysia Airlines
Bhd (MAB) was based on his ability
and experience in rehabilitating a
troubled airline. Deputy Finance Minister Datuk Ahmad Maslan said the
problems faced by Malaysian Airline
System Bhd (MAS) were the same as
those of Aer Lingus, which was successfully rehabilitated by Mueller.
"We chose Mueller as he had
turned around Aer Lingus. We did
not simply choose someone not
qualified as the CEO," he said in his
reply to a supplementary question
from Senator Khairiah Mohamed in
the Dewan Negara yesterday.
Khairiah had questioned why
the top management of MAS' new
company comprises foreigners.
Ahmad Maslan pointed out that
MAB has retained the former MAS
CEO Ahmad Jauhari Yahya as a
non-executive director as his expertise and experience are still needed
by the company.
He also said to date, 5,500 employment opportunities at 30 companies have been made available to
MAS employees whose services were
terminated.
"At the same time, 2,611 other
employees have registered with
the Corporate Development Centre (CDC) established by Khazanah
Nasional Bhd," he said.
According to Ahmad Maslan, the
compensation and facilities provided for the staff leaving MAS and
those retained, cost RM1.5 billion.
"The government was also forced
to spend RM19.2 billion from 2001
to 2014 to help MAS following the
airlines' failed privatisation in the
1990s. — Bernama
evaluate its options.
“It’s not necessary to make the QA
now because we still have time to analyse and check the best QA. We are
aware of the time needed to obtain the
approvals, we have experience in that.
We still have sufficient time,” he said.
Sona managing director Datuk
Seri Hadian Hashim said it is still
focusing on the Southeast Asian,
Middle Eastern and African regions,
and aims to acquire low risk smallto medium-sized exploration and
production assets.
“There are shortlisted candidates,
with varying degrees of maturity.
Due diligence works are being carried out. We are confident that we
would be able to do the QA within
the time frame specified,” he told a
press conference after the company’s
annual general meeting yesterday.
He added that Sona is looking at
onshore and shallow water projects,
and is not looking at acquisitions
outside the specified regions.
According to its 2014 annual report, the group spent RM17.47 million
for QA evaluations, which included
SEBG and two other possible QAs.
Hadian said the latter two QAs
are no longer on the table.
To recap, Sona had initiated proceedings to acquire SEBG as its QA,
on account of its two concessions
in Thailand known as B8/38 and
G4/50, which would have resulted
in the SPAC owning a 40% participating interest in the concessions.
However, the deal fell through as
Salamander Energy plc, the holding
company of SEBG, received a bid from
Ophir Energy plc for the acquisition of
its entire shareholding, with the offer
being conditional upon the termination of Sona’s proposed transaction.
Following that, Sona entered into
discussions with Ophir to acquire
SEBG but talks were subsequently
discontinued in view of the decline
in oil prices in the latter half of 2014.
Sona shares closed 1.19% higher
at 42.5 sen yesterday, with a market
capitalisation of RM592.5 million.
Encorp to develop township in
Melaka worth RM4.9b
BY SULHI AZMAN & MEENA LAKSHANA
PETALING JAYA: Encorp Bhd will
team up with the Federal Land Development Authority (Felda) to develop
an integrated township in Bukit Katil,
Melaka, which will have an estimated gross development value (GDV)
of RM4.9 billion.
“We are planning a mixed development in Melaka. Spanning
640.98 acres (259ha), the leasehold
land is owned by Felda and Encorp will be the developer,” Encorp
chairman Tan Sri Mohd Isa Abdul
Samad told reporters after witnessing the signing of a memorandum
of understanding (MoU) between
Encorp and Felda yesterday.
"We hope to finalise the agreement and begin construction [of the
township] by 2017, which will span
10 years," he said.
Mohd Isa is also the group chairman of Felda, which owns a 70.97%
stake in Encorp via Felda Investment
Corp Sdn Bhd.
Mohd Isa said Encorp plans to
launch the township as early as the
third quarter of 2017. The residential component will comprise 80%
of the development.
The remaining 20% will be commercial units including office and
retail lots.
"Melaka presents a good opportunity for us. Our township will be
close to the urban public transport.
“We are made to understand that
one of the stops for the high-speed
rail will be at the Melaka International
Trade Centre. If that is true, that will
certainly be positive to us as it will
be close to our township area," said
Mohd Isa.
Currently, Encorp's total outstand-
ing GDV stands at RM500 million.
Going forward, Isa said Felda may
inject some of its land bank into Encorp for property development.
"We will position Encorp to be
the property development arm of
Felda, just like Felda Global Ventures
Holdings Bhd is the plantation arm
of Felda," he said.
According to its annual report
2014, Encorp currently has a total
land bank of 277,302 sq m, with a total
net book value of RM94.637 million.
Under the MoU, Felda will provide
the land in Bukit Katil to Encorp free
of all encumbrances for the proposed
development, while Encorp will develop the master plan.
Encorp (fundamental: 0.35; valuation: 2) shares closed eight sen
or 7.62% higher at RM1.13 yesterday, with a market capitalisation of
RM308.87 million.
Public Mutual
declares
distributions for
10 funds
BY S A MA N T H A H O
KUALA LUMPUR: Public Bank
Bhd’s wholly-owned subsidiary Public Mutual Bhd has
declared distributions for 10
of its unit trust funds for the
financial year ended May 31
(FY15).
Its Public Ittikal Fund had
the largest gross distribution
of six sen per unit, while the
Public Islamic Equity Fund and
Public Islamic Select Treasures
Fund’s distributions were 2.65
sen and two sen per unit respectively.
The Public Regional Sector
Fund saw a gross distribution
of three sen per unit; the Public Far-East Select Fund, which
contains investments in bluechips and growth stocks in
domestic and regional markets, distributed 1.5 sen per
unit, while the Public Global Select Fund, which invests
in equities and collective investment schemes in domestic and global markets, had a
gross distribution of 0.75 sen
per unit.
The Public Dividend Select
Fund had a gross distribution
of one sen per unit, while the
Public Balanced Fund had a
gross distribution of 3.25 sen
per unit.
The Public Select Bond
Fund saw a gross distribution of 3.5 sen per unit, while
the PB Asean Dividend Fund,
which won the best Equity
Asean fund for the three years
and five years category at The
Edge-Lipper Malaysia Fund
Awards 2015, had a gross distribution of 2.25 sen per unit.
The PB Asean Dividend
Fund is distributed via Public
Bank branches nationwide,
whereas the rest of the funds
are distributed by Public Mutual’s unit trust consultants, said
Public Mutual in its statement
yesterday.
As at end-April 2015, Public
Mutual’s total fund size was
RM65.7 billion.
TFP Solutions sees flat revenue growth in FY15
Quah expects revenue to grow by 10% in
FY16 after the roll-out of its integrated cloud
computing services to Myanmar, Vietnam
and Thailand. Photo by Patrick Goh
BY SANGEE THA AM ARTHALI NG AM
KUALA LUMPUR: TFP Solutions Bhd
expects no significant improvement
in its financial results this year (FY15),
as the enterprise resource planner
undergoes a phase of transition to
cater to an evolved information technology sector.
Group managing director Quah
Teik Jin expects revenue to grow by
10% in the next financial year ending
December 2016, after the roll-out of its
integrated cloud computing services
to Myanmar, Vietnam and Thailand.
“We are in the midst of discussions with a few companies [to form
partnerships] in Vietnam, Myanmar and Thailand as we believe
the Asean Economic Community
(AEC) will give us the platform to do
business there cost-effectively,” he
told reporters after the company's
"We target two partnerships in
each country. Exploring these countries is part of our Phase 1 plan over
the next 12 to 18 months before mov-
ing to other developing countries in
the region,” he said.
Quah does not discount the possibility of a merger or acquisition in
order to create a footprint in Myanmar
and Vietnam, similar to its Indonesian
acquisition two years ago.
TFP Solutions reported a net loss
of RM15.35 million on revenue of
RM89.71 million for FY14. For the first
quarter ended March (1QFY15), the
company staged a rebound to post a
57.7% year-on-year increase in net
profit to RM235,000 on the back of
higher revenue of RM23.14 million.
Quah acknowledged that the
company’s financial perfomance
has been weak over the years due
to a slow economy, hence its plan
to consolidate its businesses and
expand overseas.
Adding that its decision to expand
overseas was to help ensure that its
income is sustainable rather than a
spurt, Quah said Malaysia currently
contributes between 80% and 90%
to the company's revenue, while the
remaining 20% comes from its Indonesian market.
TFP Solutions' order book now
stands at about RM20 million.
TFP Solutions shares closed unchanged at 17 sen yesterday, with
a market capitalisation of RM33.84
million.
HOME BUSINESS 7
China Stationery focuses
on wooing back clients
KNM expects
overseas RE
projects to
contribute to
earnings by FY16
BY ME E N A L A K S H A N A
More pressing is getting PN17 status lifted, says chairman
BY C H EN SHAUA FU I
KUALA LUMPUR: China Stationery Ltd (CSL) will focus on turning
around its business back to profitability this year, after a fire incident
led to the China-based stationery
maker to incur a loss for the financial year ended Dec 31, 2014 (FY14).
CSL chairman Chan Fung said
the fire that broke out at one of its
plants in Fujian Province, China in
April last year had seriously affected
its production capacity, causing interruption to some of its operations.
The fire incident had ravaged
12,000 sq m of the total floor area
of 16,500 sq m at production plant
No 4.
Chan said the group is in the process of winning back its old clients
and has secured four of them to date.
"We are back to [normal] operation now. Four clients have come
back to us," he told reporters after CSL's annual general meeting
(AGM) yesterday.
The plant's maximum capacity
is 40,000 tonnes.
In light of this, Chan said he is
unable to give a growth projection
for FY15, but that the group is unlikely to achieve the financial performance seen in FY13.
CSL swung to a net loss of 302.4
million yuan (RM183 million) in
FY14 as the fire damage had resulted
in a loss of 518.76 million yuan. This
compared to a net profit of 388.03
million yuan in FY13.
CSL is involved in designing,
manufacturing and selling a broad
assortment of plastic filing and
storage products. It carries its own
brands Sakura, Nachi and Foldersys.
Chan also said the economic
slowdown in China has impacted
the group, but the management
plans to up its advertisement and
promotion spending this year to
90 million yuan from 70 million
yuan in FY13.
Apart from rebuilding it business
back to the FY13 level, Chan said
the more pressing matter for CSL is
to have its Practice Note 17 (PN17)
status lifted.
CSL slipped into PN17 classification on July 8, 2014 after its external
auditors Messrs RT LLP expressed
CSL chief financial officer Chin
Siew Weng said the group is working
towards fulfilling Bursa's requirement to be lifted from the PN17 list.
"The Bursa requirement for the
upliftment of the PN17 status is that
we need to make a profit for two
consecutive quarters. Actually, we
are half-way there.
"For the fourth quarter of 2014
and the first quarter of 2015, we
have made a profit," Chin added.
CSL (fundamental: 1.2; valuation:
0.9) shares closed down 5.56% at
nine sen, giving it a market capitalisation of RM104.79 million.
Chan says the economic slowdown in
China has impacted the group. Photo by
Patrick Goh
a "disclaimer of opinion" on its accounts for FY13.
It has recently sought a onemonth extension from Bursa Malaysia on the submission of its request
for a waiver and implementation
of a regularisation plan to lift its
PN17 status.
The Edge Research's fundamental
more details on a company's financial dashboard.
Crest Builder likely to give higher dividends
BY Y I MI E YONG
KUALA LUMPUR: Crest Builder
Holdings Bhd is likely to reward
shareholders with higher dividends
this year, said its executive director
Yong Tiok Keng, as the specialist
construction and engineering contractor expects to post better earnings
on higher property sales and higher contribution from construction
business.
She said sales from its property projects have picked up, while it
expects to bag one or two new construction contracts in 2015.
“With a better bottom line, we
expect [to pay] better dividends this
year. Our unofficial dividend payout
policy is to return a minimum of 25%
of the group’s net profit,” Tiok Keng
told reporters after Crest Builder’s
Crest Builder had declared a first
and final dividend of 3.75 sen per
share for the financial year ended
Dec 31, 2014 (FY14), payable on July
30, 2015.
The group recorded a 57.43% decline in net profit to RM20.76 million in FY14 from RM48.77 million
in FY13. Revenue was down 7.17%
to RM207.39 million from RM223.4
million in FY13.
Crest Builder executive director
Eric Yong Shang Ming noted that
Crest Builder has a construction tender book of some RM6 billion consisting of government and private
sector projects.
“Our average tender success
rate is about 10% to 20%. We are
hopeful to secure one or two contracts this year,” he said, but de-
clined to provide details on what
the contracts are.
Shang Ming said the group’s current construction order book stands
at RM350 million comprising three
projects, and it hopes to grow its
order book to RM500 million by
year-end.
It is targeting an average profit
margin of between 7% and 12% for
its construction projects.
As for projects under the 11th
Malaysia Plan, Shang Ming said the
group is waiting for the tenders to
be called.
He added that Crest Builder is
also looking to bag infrastructure
projects such as sewerage or water.
Shang Ming also said the outlook for the construction sector
is still “very bright” as he expects
more activities with the rollout of
the mass rapid transit Line 2 (MRT
2) and the light rail transit Line 3
(LRT 3) projects.
As for the property market, Tiok
Keng said sales have started to pick
up from this month as seen by its
Alam Sanjung project in Shah Alam,
Selangor, which has recorded a takeup rate of 70%.
The project, with a gross development value of RM300 million, is
expected to be completed in the third
quarter of 2015.
Crest Builder is targeting to launch
its RM320 million Residensi Hijauan
condominium project, also in Shah
Alam, by the end of this year. Construction work will start in August.
Crest Builder shares closed
down 0.88% at RM1.13 yesterday,
with a market capitalisation of
RM191.65 million.
Japan sees TPP trade deal possible next month
TOKYO: Japan sees agreement on a
landmark Pacific trade pact as “possible” next month, after the United
States Senate paved the way for a final vote yesterday on a bill to give US
President Barack Obama enhanced
authority to complete free trade deals.
Japanese Economy Minister Akira
Amari said the 12 nations involved
in talks on the Trans-Pacific Partnership (TPP) may reach a broad
agreement at a ministerial meeting
in July. Speaking to reporters in Tokyo yesterday, Amari said the vote
on Tuesday to advance fast-track or
trade promotion authority legislation
was a “big step forward.”
The 60-37 vote came after a series of setbacks including a rebellion
two weeks ago by House Democrats.
Because the House has voted for the
bill, H R 2146, it would go directly to
the president for his signature upon
Senate passage. Yesterday’s vote was
a boost to efforts by Japan and the
US, the top economies among TPP
members, to expedite talks on the
agreement covering about 40% of the
world’s commerce. Japanese Prime
Minister Shinzo Abe is seeking to
expand trade to breathe life into the
world’s third-largest economy after
more than a decade of deflationary
stagnation.
“Now it’s time for the next step,”
Senate Majority Leader Mitch Mc-
Connell, a Kentucky Republican, said
on the floor before the vote. “Today
(yesterday) is a very big vote; it’s an
important moment for the country.”
The legislation would let Obama
submit agreements to Congress for
an expedited, up-or-down vote without amendments. His administration
hopes to complete an agreement
this year on the TPP with the other
11 countries, including Malaysia, in
the talks . — Bloomberg
KUALA LUMPUR: KNM Group
Bhd (KNM) expects its overseas
international renewable energy
(RE) projects to contribute to
its earnings by as early as the
first quarter ending March 31,
2016 (1QFY16).
KNM chief executive officer
Lee Swee Eng said yesterday
the group’s two RE projects in
Thailand and Peterborough,
the United Kingdom, from
which it expects to see recurring income, will be contributing 35% to its earnings.
Lee explained that the
group’s 72% stake in the biofuel plant in Thailand is expected to make up 10% of
the company’s net profit in
FY16. “We expect that the plant
will be producing ethanol by
1QFY16. We will also be getting eight years of incentives
from the Thai government,” he
told reporters after the company’s annual general meeting
(AGM) yesterday.
Phase 1 of the biofuel plant
can produce between 200,000
litres and 400,000 litres of ethanol a day, he said.
As for its RM2 billion
waste-to-energy plant in Peterborough, Lee said phase 1
of the project is expected to
generate 17.6mw of electricity
and contribute 25% to earnings
from FY17.
Construction work on the
80mw Peterborough plant on
a 30-acre (12ha) land is slated to begin in 4QFY15 and is
expected to begin generating
income from 3QFY17, Lee said.
On the company’s order book,
Lee said it currently stood at
RM4 billion, including its Peterborough project.
He said 20% of the company’s order book comprises Malaysian jobs, but the company
is looking at increasing the local portion with downstream
works planned at the refinery
and petrochemicals integrated
development in Pengerang, Johor. He also said the company’s
overall tender book stood at
RM13 billion to RM14 billion,
with about RM4 billion to RM5
billion worth of bids on projects
in Pengerang alone.
This year, the company expects its earnings will mainly come from its foreign contracts, existing order book of
petrochemical and downstream works in the oil and
gas industry, as well as jobs in
Pengerang.
KNM chairman Datuk Ab
Halim Mohyiddin said the
company is looking at other
RE projects in Malaysia, particularly biomass plants. “We
are talking to some plantation
companies. If they have a project, we will be interested,” he
added, but declined to reveal
names.
8 P R O P E RT Y S NA P S H
T
Source: theedgeproperty.com
What’s hot in Sentul?
• Today we look at price growth and indicative asking rental yields for
non-landed residences in Sentul.
• The development of the Sentul Masterplan has benefitted all existing
developments in the Sentul area. All non-landed residences surveyed
have shown price appreciation over the past 12 months to 3Q2014.
• From an analysis of transactions by theedgeproperty.com, the older
properties have led in price growth, given their low starting price points.
Sentul Park Apartment saw the highest growth of average price per square
foot (psf), up 21.3% y-y to RM188 psf, although from a low pricing base.
• Developments located further away such as Pelangi Condominium and
1 Sentul have also enjoyed the spillover effects. The former is up 21.2%
to RM332 psf while the latter is up 14.4% to RM476 psf.
• From an observation of rental listings as at February 2015, asking rental
rates for the older developments in Sentul generally range between
RM1.40-RM2.00 psf, while rental rates for the condominiums within
the Sentul Masterplan range between RM2.00-RM2.50 psf.
• From rental listings, it appears the highest rental yields can be found at
Menara Orkid, with asking rental yields at an estimated 7.3%. The elevated
yields here are supported by its close proximity to the Sentul LRT Station
as well as low sale prices as the apartments have few facilities.
• With the steady supply of units, the rental returns at developments
within the Sentul Masterplan are somewhat subdued. In the future,
rental rates may have potential upside with a station of the upcoming
MRT Sungai Buloh-Serdang-Putrajaya Line proposed at Sentul West.
The Analytics are based on the data available at the date of publication and may be subject to further revision as
and when more data is made available to us.
Sentul top 5 condominiums/apartments
by average price annual growth
Source: theedgeproperty.com
Top 5 condominiums/apartments in Sentul with highest indicative asking rental yield
For more of such information across Malaysia and Singapore, log onto the
theedgeproperty.com. The one-stop portal for all your property needs,
theedgeproperty.com offers price and transaction records, trend analysis,
research classifieds, and more – all for FREE!
Have Singapore’s luxury homes hit rock bottom?
BY L ESL I E SHA FF
SINGAPORE: Overbuilding in Singapore’s luxury homes sector spurred a flurry of doomsday scenarios, but prices may have already
hit bottom, with buyers beginning to nibble.
“We are seeing a number of our clients
coming back very seriously this time around,”
said Chandran V R, managing director at
property agent CRE. “We are currently serving
buyers in the market for luxury apartments.
A lot of them are very ready to make a move
because they feel buying has corrected and
if they wait too long, the market can take off.”
He noted that over the past couple
months, there have been several big property
deals, including the S$51 million (RM142.61
million) paid for the penthouse at the Le
Nouvel Ardmore development, a potential
record for a penthouse in the city-state.
The interest is primarily among ultra-high
net worth clients for apartments over 3,000
sq ft, penthouses and good quality bungalows, Chandran said.
Analysts believe luxury home prices are
at their nadir, although the same might not
be true of mass-market properties.
“We have turned more positive on the
high-end residential market as prices in
this segment have fallen by 24% from their
peak vs a 6% decline for the overall market,” Tricia Song, Asia ex-Japan real estate
analyst at Barclays, said. “Price corrections
have attracted buyers back to this segment.”
Sales in Singapore’s “core central region”
jumped 73% in May from April, she noted,
with units priced over S$2,000 per sq ft seeing a sales increase.
It’s not all good news for luxury developers. She noted that the Cluny Park Residence
development sold three units last month at
S$2,620 a sq ft, but that’s down 16% from
August 2013. The 52-unit project is still only
around 44% sold, Song noted.
But Song isn’t alone in largely expecting
high-end property demand to have a sunnier outlook.
After the announcement of planned government land sales for the second half of this
An aritist’s impression of the Le Nouvel Ardmore
development in Singapore.
analysts said. The ABSD tacks on as much
as an additional 15% to the purchase price
for foreign buyers and Singaporeans with
more than one property.
While that might not seem terribly onerous for buyers at the high end, it appears
to have successfully dampened interest in
luxury properties in the city-state.
Indeed, CRE’s Chandran noted that much
of the interest in luxury properties is coming
from clients in countries that aren’t subject
to the ABSD, such as the US and Switzerland.
Analysts are also pointing to another reason the government may roll back some of
its cooling measures: fears prices may fall
too much.
“It is likely that elections could be called
at end-2015, timed to coincide with the conclusion of the nation’s 50th anniversary,” analysts at UOB KayHian said. “Singapore has
among the world’s highest home ownership
rates at over 90% and a drastic correction may
result in alienating its voter base. We believe
the government will likely start with easing
of the onerous transaction charges (buyers
stamp duty and sellers stamp duty).” — CNBC
year contained no sites in the central region,
“the current surplus at the high end of the
market will ease. This is our preferred market
segment,” Derrick Heng, a property analyst
at Maybank KimEng, said in a note last week.
The luxury end of the market is also the
most likely to benefit if Singapore rolls back
some of the cooling measures imposed to
rein in sharp price increases, particularly
the additional buyer’s stamp duty (ABSD), For more, visit www.cnbc.com
City-state buyers deserting London as loan rules stifle borrowing
BY NEIL CALLANAN & POOJA THAKUR
SINGAPORE: Singapore investors are
buying fewer mansions in London after
mortgage changes in the island nation
limit their ability to borrow.
The number of Singaporeans buying
prime homes in the capital fell 74% in
the period from November to the end
of May compared with the previous six
months, according to broker Knight
Frank LLP. They now make up 1.7% of
all buyers in the city’s best districts, down
from 3.8% in the prior period, the broker
said.
Homebuying from “Singapore is very
low at the moment and falling off,” Rob
Perrins, managing director of Berkeley
Group Holdings, said. Investors from the
city-state were the biggest overseas buyers
of new homes constructed by Berkeley,
London’s largest homebuilder, in 2013,
Perrins said.
Singapore’s government capped bor-
rowers’ total debt repayments at 60%
of monthly income in June 2013 as it
sought to prevent a property bubble
in Asia’s second-most expensive housing market. That made it harder to purchase homes overseas as international borrowings are included in the cap.
— Bloomberg
ST O C KS W I T H M O M E N T U M 9
T HU RSDAY J U N E 25 , 2 015 • T HEED G E FINA NCIA L DA ILY
This column is an analysis done by Asia Analytica Sdn Bhd on the fundamentals of stocks with momentum that were picked up using proprietary algorithm by
Anticipatory Analytics Sdn Bhd and that first appeared at www.theedgemarkets.com. Please exercise your own judgment or seek professional advice for your specific
investment needs. We are not responsible for your investment decisions. Our shareholders, directors and employees may have positions in any of the stocks mentioned.
BOX-PAK (MALAYSIA) BHD (-ve)
SHARES of Box-Pak (Fundamental: 0.6/3, Valuation: 1.7/3) rose to a one-year high of RM2.44
on Tuesday, before retracing to close at RM2.41
yesterday. Volume traded was 18-times the past
200-day average of 8,198 shares.
Its latest 1Q2015 earnings results are encouraging. Revenue rose 20.9% y-o-y to RM96.1
million while net profit soared more than fivefolds to RM2.5 million, thanks to increased
demand in Vietnam and the strengthening of
Vietnamese Dong against ringgit.
BOX-PAK (MALAYSIA) BHD
Box-Pak, a 54.8% subsidiary of Kian Joo Can
Factory, mainly manufactures and distributes
paper boxes and cartons with operations in Vietnam and Malaysia. From 2012 to 2014, the
company’s net profit has been declining, despite healthy revenue growth. This was mainly
due to high startup costs and initial losses at
its new Hanoi and Johor plants.
The stock trades at a trailing 12 months P/E
of 14.8 times at 0.93 times book. The company
last paid a 7.5 sen dividend for 2013.
Valuation score*
1.70
0.60
Fundamental score**
14.84
TTM P/E (x)
1.38
TTM PEG (x)
0.94
P/NAV (x)
TTM Dividend yield (%)
146.46
Market capitalisation (mil)
60.02
Shares outstanding (ex-treasury) mil
0.50
Beta
2.00-2.44
12-month price range
*Valuation score - Composite measure of historical return & valuation
**Fundamental score - Composite measure of balance sheet strength
& profitability
Note: A score of 3.0 is the best to have and 0.0 is the worst to have
HEITECH PADU BHD (+ve)
HEITECH (Fundamental: 0.35/3, Valuation:
0.9/3) first triggered our momentum alert on
March 27. The stock has since risen by 20.8%
to close at 72.5 sen yesterday.
For 1Q2015, revenue grew 12.5% y-o-y to
RM103.3 million, due to higher revenue from
network services, data centre services and
sales of software license. The company also
turned around from a net loss of RM5.1 million in 1Q2014 to a net profit of RM4.3 million
in 1Q2015.
Last week, Heitech declared an interim div-
HEITECH PADU BHD
idend of 2 sen per share for 2015, which will go
“ex” tomorrow.
HeiTech provides systems integration, network related services, data centre management
and IT-related services. Its clients include the
Road Transport Department and Sri Lanka’s
Department of Immigration & Emigration.
On June 8, Heitech accepted a Letter of Award
for the procurement of maintenance services and
spare parts for the Army’s artillery hunting radar
(ARTHUR) weapon locating systems (WLS). The
three-year contract is worth RM6.89 million.
Valuation score*
0.90
0.35
Fundamental score**
TTM P/E (x)
TTM PEG (x)
0.43
P/NAV (x)
71.87
101.23
Shares outstanding (ex-treasury) mil
0.76
Beta
0.56-0.75
& profitability
MAGNI-TECH INDUSTRIES BHD (-ve)
MAGNI-TECH (Fundamental: 2.8/3, Valuation: 2.4/3), an apparels manufacturer that is
a major supplier to global sportswear leader
Nike, jumped 9.4% to close at intraday high
of RM3.94 yesterday, after posting stellar
4QFYApr2015 earnings results.
For 4QFY15, revenue grew 8.8% y-o-y to
RM176.7 million while net profit jumped
94.7% to RM16.5 million, mainly due to higher sales order and lower cost of sales. For the
full year FY2015, net profit increased 24.2%
MAGNI-TECH INDUSTRIES BHD
to RM52.1 million on the back of a 10.0%
sales growth to RM716.4 million.
Concurrently, the company proposed a
final dividend of 3 sen per share and a special dividend of 7 sen per share. Dividends
for FY2015 totalled 15 sen, giving a net yield
of 4.2%.
Magni-Tech has a debt-free balance sheet
with cash of RM69.0 million or 63.6 sen
per share. The stock is trading at a trailing
12-month P/E of 8.9 times and 1.5 times book.
Valuation score*
2.40
2.80
Fundamental score**
8.86
TTM P/E (x)
1.10
TTM PEG (x)
1.49
P/NAV (x)
3.61
390.56
Shares outstanding (ex-treasury) mil 108.49
0.89
Beta
2.36-3.60
& profitability
FY12
FY13
FY14
FY2015Q1
(ALL FIGURES IN MYR MIL)
31/12/2012
31/12/2013
31/12/2014
31/3/2015
264.3
29.8
1.1
22.3
19.0
98.3
156.0
130.6
31.0
18.2
300.1
23.8
1.5
14.1
11.9
154.6
200.5
141.7
77.9
65.2
352.8
25.6
3.4
10.6
7.9
168.2
203.1
149.8
87.5
75.7
96.1
7.0
0.9
3.3
2.5
173.5
210.0
156.6
72.6
63.8
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)
RATIOS
DPS ($)
Net asset per share ($)
ROE (%)
Turnover growth (%)
Net profit growth (%)
Net margin (%)
ROA (%)
Current ratio (x)
Gearing (%)
Interest cover (x)
HEITECH PADU BHD
Financials
Turnover
EBITDA
Interest expense
Pre-tax profit
Fixed assets - PPE
Total assets
Shareholders' fund
Gross borrowings
Net debt/(cash)
HEITECH PADU BHD
RATIOS
DPS ($)
ROE (%)
Turnover growth (%)
Net margin (%)
ROA (%)
Current ratio (x)
Gearing (%)
Interest cover (x)
Financials
Turnover
EBITDA
Interest expense
Pre-tax profit
Fixed assets - PPE
Total assets
Shareholders' fund
Gross borrowings
Net debt/(cash)
RATIOS
DPS ($)
ROE (%)
Turnover growth (%)
Net margin (%)
ROA (%)
Current ratio (x)
Gearing (%)
Interest cover (x)
FY12
FY13
31/12/2012
31/12/2013
31/12/2014
FY14 ROLLING 12-MTH
0.08
2.18
15.34
6.29
22.25
7.17
13.07
1.94
13.93
27.62
0.08
2.36
8.76
13.54
(37.07)
3.98
6.69
1.35
46.04
15.67
2.50
5.39
17.55
(34.19)
2.23
3.89
1.25
50.51
7.45
2.61
6.88
18.17
10.78
2.67
4.96
1.27
40.73
7.52
FY12
FY13
FY14
FY2015Q1
31/12/2012
31/12/2013
31/12/2014
31/3/2015
395.5
26.3
5.5
7.9
4.6
168.6
311.8
206.5
206.4
133.4
413.8
(14.0)
7.3
(31.4)
(32.7)
156.5
289.6
175.7
185.0
148.1
461.5
10.5
7.4
(9.9)
(10.5)
134.9
229.1
161.0
245.7
107.1
103.3
8.4
1.5
4.7
4.3
126.5
234.9
165.3
180.3
123.1
FY12
FY13
31/12/2012
31/12/2013
31/12/2014
2.04
2.23
16.98
12.83
1.15
1.46
1.44
64.59
4.82
1.74
(17.13)
4.62
(7.91)
(10.89)
1.51
84.29
(1.93)
1.59
(6.22)
11.51
(2.27)
(4.04)
1.19
66.53
1.42
1.63
(0.52)
10.14
(0.19)
(0.34)
1.31
74.42
2.79
FY14 ROLLING 12-MTH
FY12
FY13
FY14
FY2015Q3
30/4/2012
30/4/2013
30/4/2014
31/1/2015
534.1
45.4
0.0
40.8
30.6
62.8
193.9
186.3
(40.4)
565.8
52.6
48.0
35.8
61.6
214.6
206.9
(49.3)
651.3
59.2
55.4
42.0
62.0
242.0
234.9
(71.0)
200.4
24.2
23.1
17.5
58.8
268.4
261.4
(74.7)
FY12
FY13
30/4/2012
30/4/2013
30/4/2014
FY14 ROLLING 12-MTH
0.09
1.72
17.81
20.39
77.20
5.73
17.06
3.35
1,009,678.78
0.13
1.91
18.22
5.93
17.16
6.33
17.54
3.28
-
0.13
2.17
18.99
15.10
17.08
6.44
18.37
3.47
-
0.13
2.41
18.99
12.24
8.09
6.28
18.40
3.38
-
1 0 I N V E ST I N G I D E A S
Note: This report is brought to you by Asia Analytica Sdn Bhd, a licensed investment adviser. Please exercise your own
judgment or seek professional advice for your specific investment needs. We are not responsible for your investment
decisions. Our shareholders, directors and employees may have positions in any of the stocks mentioned.
I N S I D E R A S I A’S S TO C K O F T H E D AY
UCHI TECHNOLOGIES BHD
UCHI Technologies (Uchitec) (Fundamental: 2.4/3, Valuation: 1.5/3) is mainly involved in the original design manufacturing
of electronic control systems for electrical
and electronic appliances.
Currently, the company’s sales are derived from two main product groups: Artof-Living — high-end consumer electrical
appliances including fully-auto coffee machines, and Biotechnology — laboratory
and industrial equipment.
Whilst growth has not been “exciting”,
earnings have held fairly steady. That has
helped Uchitec maintain consistent stream
of dividends. Payout ratio has exceeded 90%
of annual net profit since 2011.
For 2014, dividends totaled 10 sen per
share — up from 9.63 sen in 2013 though
lower than the 12 sen in 2010-2012 — or
equivalent to payout ratio of 93.4%. That
gives shareholders a net yield of 6.1%. HighUCHI TECHNOLOGIES BHD
er than market average yields has likely
helped its share price trend broadly higher
over the past 3 years — rising at a CAGR of
18% — amid range-bound earnings.
It still has sizeable net cash of RM127.7
million or 34 sen per share at end-March,
about 20% of its current market capitalisation.
Exports to Europe account for 94.8% of
Uchitec’s revenue, with Switzerland and
Germany being key markets. Despite the
eurozone’s sluggish economic growth, since
the global financial crisis in 2008-2009,
Uchitec’s earnings have remained comparatively resilient.
Net profit ranged from RM39-RM53 million since 2010 with net margin hovering
between 41% and 52%. For 1Q2015, net profit was a marginal 1% higher y-y at RM10.3
million on the back of 11.1% increase in
revenue to RM25.6 million.
At RM1.64, Uchitec is trading at 2.98
times book with trailing 12-month P/E of
15.41 times.
FY12
FY13
FY14
FY2015Q1
31/12/2012
31/12/2013
31/12/2014
31/3/2015
92.3
45.8
3.6
42.2
4.1
46.3
44.8
94.0
44.4
6.0
38.4
3.3
41.8
39.1
95.5
44.0
6.1
37.9
3.4
41.3
40.1
25.6
11.4
1.8
9.6
1.0
10.6
10.3
76.3
134.4
158.1
46.3
188.3
187.1
-
72.7
112.0
137.4
26.5
192.2
190.9
-
79.9
133.0
154.1
47.8
194.4
193.0
-
79.2
127.7
152.5
30.8
209.1
207.7
-
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
Insider Asia will feature a new stock pick on every alternate day.
DPS ($)
ROE (%)
Turnover growth (%)
Net margin (%)
ROA (%)
Current ratio (x)
Gearing (%)
Interest cover (x)
FY12
FY13
31/12/2012
31/12/2013
31/12/2014
FY14 ROLLING 12-MTH
0.12
0.50
23.95
(10.66)
(8.34)
48.57
23.83
3.42
-
0.10
0.52
20.67
1.81
(12.84)
41.58
20.54
5.19
-
0.10
0.52
20.89
1.59
2.65
42.02
20.75
3.22
-
0.11
0.55
20.77
5.69
(1.40)
41.01
20.58
4.95
-
B R O K E R S’ C A L L 11
Berjaya Auto’s bonus issue goes ex
Berjaya Auto Bhd
(June 24, RM2.80)
Maintain add with an unchanged
target price of RM3.23: Berjaya Auto’s (BAuto) share price went ex for
a two-for-five bonus issue yesterday. The bonus issue involves the
issuance of up to 325.9 million new
shares, increasing the total share
base to 1.14 billion shares. We adjust our target price to RM3.23 for
the bonus issue.
We are positive on this corporate exercise. Although it does not
change the fundamentals of the
company, it leads to an enlarged
share base and a lower unit price for
the stock. We expect this to lead to
better trading sentiment and more
interest in the stock, especially from
retail investors due to the increased
trading liquidity and the more affordable unit price. Therefore, we
believe this is a strong catalyst that
can drive the company’s valuation
higher and push the share price
closer to our target price. We are
also encouraged by management’s
commitment to consistently reward the long-term shareholders
of the company, which is reflected
through this bonus issue exercise
and consistent quarterly cash dividend payments. We believe this is
one of the main factors contributing
to the strong performance of the
stock price since its listing in 2013.
Continue to accumulate the
stock. BAuto remains our top pick
for the sector. Its growth has consistently outpaced the industry and
its peers over the last few years and
we expect the trend to continue
in the next few years. Continuous
strong take-up of its Mazda 2 model
and a good response to its Mazda
3 completely knocked down models and Mazda 6 facelift models
enabled its sales in May 2015 to
rebound strongly from the low in
April when the goods and services
tax was implemented. The expected
introduction of the new compact
SUV CX-3 model later this year
should further drive Mazda’s sales
volume for the rest of the year. —
CIMB Research, June 23
Adventa eyes
private sector for
higher margins
Adventa Bhd
(June 24, RM1.01)
Maintain hold with a higher target
price of RM1: Adventa’s revenue for
the first half ended April of financial year 2015 (1HFY15) of RM22.4
million met our expectations (53%
of our full-year forecasts), while its
profit after tax and minority interests (Patami) of RM1.5 million was
below our expectations, coming
in at 21% of our FY15 estimation.
The deviations to expectations
were due to higher expenses from
the home dialysis business, higher
import cost as a result of the weakening of the ringgit, and the maintenance of equipment for Adventa’s
sterilisation provider division.
For its 1HFY15, Adventa posted a 72% increase in sales yearon-year (y-o-y). Profit before tax
on the other hand was 2% lower
y-o-y, mainly caused by higher
costs incurred in purchases and
maintenance (from the sterilisation provider segment).
Adventa’s healthcare products
segment achieved a whopping
127% increase in revenue y-o-y
to RM8.6 million from RM3.8 million in the second quarter (2Q) of
FY14. The huge leap was due to
higher sales volume coming from
the introduction of new products.
Apart from servicing public hospitals, Adventa plans to focus on
the private segment. This should
be positive for the group as the
private sector generally provides
higher margins. Overall, we expect
its market share in supplying hospital supplies to improve.
Sales at the firm’s sterilisation provider segment increased
24% y-o-y, but declined 3% quarter-on-quarter. This is attributed to
its major upkeep or maintenance
of equipment, thus slowing down
Berjaya Auto Bhd
FYE APR (RM MIL)
2014A
2015A
2016F
2017F
2018F
Revenue
Operating Ebitda
Net profit
Normalised EPS (RM)
Normalised EPS
growth (%)
FD normalised PER (x)
DPS (RM)
Dividend yield (%)
EV/Ebitda (x)
P/FCFE (x)
Net gearing (%)
P/BV (x)
ROE (%)
Normalised EPS/
consensus EPS (x)
1,451
175.5
130.6
0.12
1,830
292.0
215.4
0.19
2,586
334.2
248.8
0.24
2,829
363.1
268.7
0.24
3,182
410.4
300.9
0.26
147
23.31
0.02
0.62
15.81
na
(53)
9.22
52.0
55
14.97
0.10
3.44
9.73
17.54
(57)
6.71
52.5
24
12.18
0.11
3.74
7.19
9.81
(86)
5.48
46.9
0
12.13
0.10
3.56
6.60
9.64
(97)
4.33
40.7
12
10.83
0.10
3.56
5.14
8.40
(105)
3.46
36.2
-
-
0.73
0.65
0.63
Source: CIMB, Company reports
Alam Maritim’s jointly- controlled Alam Swiber Offshore has secured a contract from Chevron
for the installation works for the replacement of subsea pipelines at the latter’s Prai Terminal.
Alam Maritim secures second
installation job worth RM22m
Trials of the home renal dialysis business are ongoing with further investments in
patient care education and training as well as extending reach into rural regions.
Adventa Bhd
FYE OCT (RM MIL)
2013A
2014A
2015F
2016F
Revenue
Pre-tax profit
Rpt Patami
Nom Patami
Nom EPS (sen)
Nom PER (x)
BV/share (RM)
P/BV (x)
ROE (%)
ROA (%)
27.4
83.0
82.4
82.4
53.9
1.9
0.5
2.1
113.0
135.6
34.8
6.6
4.3
4.3
2.8
36.4
0.5
2.0
5.5
5.5
42.3
10.5
7.2
7.2
4.7
21.8
0.6
1.8
8.5
8.1
79.1
17.7
12.2
12.2
8.0
12.7
0.6
1.6
12.7
11.8
Source: HLIB
its operation in 2QFY15. We expect
sales to pick up in 3Q onwards.
We are still positive on its home
dialysis business, which we expect
will be launched in 4QFY15. Hence,
we believe contribution from home
dialysis should kick in from 2016
onwards.
The successful roll-out of the
new and projected high-growth
home renal dialysis business (slat-
Alam Maritim Resources Bhd
(June 24, 58.5 sen)
Maintain hold with an unchanged
fair value of 60 sen: Alam Maritim
announced that its jointly-controlled entity, Alam Swiber Offshore
Sdn Bhd, had secured a contract
from Chevron Malaysia Ltd for the
installation works for the replacement of subsea pipelines at the latter’s Prai Terminal. The contract is
worth approximately RM22 million.
The job commenced in early June
and is expected to be completed
by December.
We maintain our forecasts,
which have already assumed revenue of RM120 million and RM150
million for forecast financial year
2015 (FY15F) and FY16F respectively for the transport and installation
and underwater services divisions.
Based on a pre-tax margin assumption of 15%, we estimate that this
project could generate earnings
of approximately RM2 million for
FY15F for Alam.
Alam would most likely utilise
its 300-man pipelay accommodaAlam Maritim Resources Bhd
FYE DEC (RM MIL)
ed for 4QFY15) is dependent on a
smooth transition of patients from
hospitals and private treatment
centres to home treatment. Trials
are ongoing with further investments in patient care education
and training as well as extending
reach into rural regions. Our forecasts remain unchanged pending
an update from management. —
HLIB Research, June 24
tion workbarge, 1Mas- 300, for this
project which involves four to five
pipelines at the terminal.
We are positive on this news,
given that this is the second installation job secured by the group this
month amid a slow capital expenditure cycle, which would offset the
muted performance of its offshore
support vessel segment. The group’s
order book stands at approximately
RM900 million, and it is bidding for
RM2.5 billion to RM3 billion worth
of projects.
This would be further supported by the recent umbrella contract
awarded by Petronas Carigali Sdn
Bhd (PCSB) for the provision of
spot charter for marine vessels,
whereby Alam was awarded seven of the eight packages. We have
not factored this into our earnings
for now as the contract value is not
fixed and will depend on the actual
number of days the vessels are on
hire based on a call-out basis by
PCSB. The stock currently trades
at an FY15F price-earnings ratio of
nine times. — AmResearch, June 24
Revenue
Core net profit
FD core EPS (sen)
FD core EPS growth (%)
Consensus net profit
PER (x)
EV/Ebitda (x)
ROE (%)
Net gearing (%)
2013
2014
2015F
2016F
2017F
447.4
74.3
9.3
25.3
6.1
9.8
13.1
67.9
396.7
60.6
6.6
(29.4)
8.7
6.7
8.4
9.0
397.1
60.4
6.5
(0.2)
85.9
8.7
5.7
7.0
nm
425.5
65.7
7.1
8.7
107.4
8.0
4.9
7.1
nm
434.1
68.8
7.4
4.6
127.5
7.7
4.2
6.9
nm
Source: Company, AmResearch estimates
12 B R O K E R S’ C A L L
Gamuda results
within expectations
Architectural works in progress at Pusat
Bandar Damansara MRT station.
Mitrajaya Holdings Bhd
FYE DEC (RM MIL)
Turnover
Ebit
PBT
Net profit (NP)
Core net profit
Consensus (NP)
Earnings revision
Basic EPS
*FD1 EPS (sen)
**FD2 EPS (sen)
EPS growth (%)
DPS (sen)
NTA/Share (RM)
Basic PER (x)
*FD1 PER (x)
**FD2 PER (x)
BVPS (RM)
Net gearing (x)
Dividend yield (%)
2014A
2015E
2016E
520.2
76.1
72.5
53.8
53.8
n.a.
n.a.
13.5
12.1
10.2
83%
2.0
0.75
13.7
15.4
18.2
0.75
0.2
1.1
878.6
109.8
104.4
78.9
78.9
103.8
n.a.
19.9
17.7
15.0
46.8%
4.8
0.87
9.4
10.5
12.4
0.87
0.1
2.6
1,109.4
137.6
132.3
99.8
99.8
117.0
n.a.
25.1
22.4
19.0
26.5%
5.6
1.01
7.4
8.3
9.8
1.01
0.0
3.0
*FD1: Based on diluted share base assuming full conversion of existing warrant-C
**FD2: Based on fully diluted share base assuming full conversion of existing warrant-C and proposed warrant-D.
Source: Kenanga Research
Mitrajaya targets RM1b
revenue for FY16
Ongoing construction at Bandar Tun
Hussein Onn MRT Station.
Gamuda Bhd
(June 24, RM4.96)
Maintain neutral with a higher
target price of RM4.96: Gamuda’s
nine-month financial year 2015
(9MFY15) profit after tax and minority interests was rather dull
(+2.9% year-on-year [y-o-y]) at
RM528.5 million, which reflected
lower contributions from construction (-10% y-o-y) and property development (-3.6% y-o-y) businesses. However, the results were still
within our and consensus expectations, accounting 72% and 70%
of full-year forecasts respectively.
As we have expected, earnings
momentum continued to taper off
with a third quarter (3QFY15) net
profit of only RM160.5 million (-9.8%
y-o-y and -11.9% quarter-on-quarter). The lower bottom line was
largely due to the tail-end progress
of the mass rapid transit (MRT) Line
1 underground civil works and lower
property progress billings following
the slowdown in property presales.
In contrast, the concessions divi-
Gamuda Bhd
FYE JULY (RM MIL)
Revenue
Ebit
Pre-tax profit
Patami
FD EPS (sen)
EPS growth (%)
PER (x)
Net dividend (sen)
Net dividend yield (%)
2013
2014
2015F
2016F
2017F
2,235.4
345.6
656.4
651.6
29.9
17.1
18.8
12.0
2.5
2,229.6
488.3
851.6
712.3
30.5
1.9
15.7
12.0
2.5
1,657.6
544.0
892.0
735.5
31.2
2.3
15.8
12.0
2.5
1,959.6
572.2
864.3
709.0
30.1
-3.6
16.4
12.0
2.4
2,237.4
645.7
916.9
738.0
31.3
4.1
15.8
13.0
2.5
Source: MIDFR
sion grew 15.3% y-o-y from an additional stake in Kesas Sdn Bhd. This
has helped to offset the shortfall in
earnings contribution from its two
key segments. A second interim
dividend of six sen was declared in
the previous corresponding period.
This brings in the total to 12 sen per
share dividend for FY15.
Based on the revised timeline,
the tendering of MRT Line 2 will be
called late this year with major civil
packages to be awarded in mid2016 onwards. The public display
has also progressed smoothly with
no major issues while the appointment of the project delivery partner
will be announced shortly thereafter. Management also guided that
the underground package should
now be worth about RM12 billion
out of the total of RM28 billion,
which is higher than internal projections. — MIDF Research, June 24
Malakoff biggest independent
power producer in Asean
Malakoff Corp Bhd
(June 24, RM1.79)
Initiate coverage with an outperform rating and a target price
(TP) of RM2.10: Malakoff is the
biggest independent power producer (IPP) in Asean with approximately 6,036mw of operational capacity and another 1,000mw under
construction. Fears over 1Malaysia
Development Bhd (1MDB), the
potential industry restructuring,
the ringgit, and foreign outflow of
capital seem overblown to us.
Any huge acquisition of assets
would need shareholders’ approval. Despite increasing competition
squeezing returns in the long run,
the scope for growth is clear, particularly in the light of declining
reserve margins.
The conclusion of the 1MDB
saga would also be a positive catalyst, removing a source of fear. Risks
to our call include high unplanned
outage rates, rising interest rates,
and acts of war/terrorism affecting
Malakoff ’s Middle East and North
African assets.
Most Asean peers offer a yield
of 3% to 4%. We impute a 10% discount to our discounted cash flow
valuation, based on definite prospects, to arrive at our TP to ensure
a decent margin of safety. — Credit
Suisse, June 23
Mitrajaya Holdings Bhd
(June 24, RM1.91)
Initiate coverage with an outperform rating and a target price of
RM2.35: While we expect the group
to approach the RM1 billion revenue
mark for financial year 2016 (FY16),
we forecast Mitrajaya’s earnings
to grow by 27% to 47% in FY15E to
FY16E driven mainly by the group’s
record high order book of RM1.9 billion achieved early this year coupled
with sustainable margins.
Year-to-date, Mitrajaya has replenished RM230 million worth of
new contracts and management is
targeting to secure another RM770
million before the end of the year, to
make up its total target of RM1 billion. Conservatively, we only forecast the group to secure RM700 million this year. Hence, there could
be further upside potential to our
current earnings estimates.
Among the key projects under
the 11th Malaysia Plan that Mitrajaya can participate in are the light
rail transit 3 (LRT3) and the development of 606,000 units of affordable houses. We believe Mitrajaya
stands a good chance of securing
those projects due to its track record.
Mitrajaya is currently building LRT
extension stations. The group also
has been building affordable houses
for the government in Putrajaya. It
was appointed the main contractor
to build the RM230 million Perumahan Penjawat Awam 1Malaysia
public apartments in Putrajaya earlier this year.
We like the fact that Mitrajaya’s
project in Wangsa 9 (Phase 1)
achieved a 70% take-up rate despite
the challenging property market environment. We believe this is due to the
strategic location of the land which is
adjacent to an LRT station. Mitrajaya
has another piece of land (15 acres
or 6.07ha) in Puchong Prima, which
is also adjacent to an upcoming LRT
station. Total gross development value stands at RM1.5 billion, consisting
of a mixed development that is to be
linked to the LRT station.
The group’s net gearing ratio
stands at 0.2 times. This is relatively lower than that of the construction sector’s average net gearing of
0.5 times.
Despite the solid investment
merits, the stock is still trading at a
forward price-earnings ratio (PER)
of only 7.4 times. This is relatively
cheaper than the PER range of 10
to 14 times of small- and mid-cap
contractors. If the stock trades at 10
times forward PER, the stock’s market
cap will be as high as RM1.1 billion,
on par with Hock Seng Lee Bhd, Muhibbah Engineering Bhd, WCT Bhd
and the upcoming initial public offering of Sunway Construction Sdn
Bhd. — Kenanga Research, June 24
Malakoff Bhd
YEAR (RM MIL)
Revenue
Ebitda
Ebit
Net profit
EPS (CS adj.) (RM)
Consensus EPS (RM)
EPS growth (%)
PER (x)
Dividend yield (%)
EV/Ebitda (x)
P/BV (x)
ROE (%)
Net debt/equity (%)
12/14A
12/15E
12/16E
12/17E
5,594.5
2,423.5
1,336.6
410.6
0.10
n.a
(8.4)
17.1
44.6
9.7
0.2
10.7
350.8
5,569.5
2,446.6
1,359.7
466.8
0.09
0.08
(10.6)
19.2
4.9
8.7
1.5
9.5
195.4
6,451.1
2,573.2
1,553.4
578.8
0.12
0.10
24.0
15.5
5.0
8.1
1.5
9.6
181.1
6,371.0
2,342.8
1,315.8
485.6
0.10
0.11
(16.1)
18.4
4.9
8.3
1.5
8.0
158.7
Source: Company data, Thomson Reuters, Credit Suisse estimates
H O M E 13
Anwar’s family applies to quash Pardons Board’s decision
BY V A N B A L AGA N
PUTRAJAYA: Datuk Seri Dr Wan
Azizah Wan Ismail and two of her
children have filed an action to compel the Pardons Board to review an
earlier decision to refuse clemency
to Datuk Seri Anwar Ibrahim who
is serving a five-year prison term
for sodomy.
The judicial review application
was filed at the High Court registry by
legal firm Messrs Daim & Gamany.
Also included as party to the suit
is Anwar, the de facto PKR leader.
In the application, Dr Wan Azizah,
Nurul Izzah and Nurul Nuha want the
court to quash the March 16 decision
and direct the board to meet again to
consider the petition for pardon and
advise the Yang di-Pertuan Agong accordingly. The three applicants have
named the Pardons Board of the Federal Territory, the Attorney-General
Tan Sri Abdul Gani Patail and Putrajaya as respondents. The applicants
also want the court to make an order
that Gani, who is a board member, be
removed from the committee which
advised the Agong.
Anwar in his affidavit to support
the application by his wife Dr Wan
Azizah and his children also want
the Pardons Board to free him as
there was clear evidence of a political
conspiracy and fabricated evidence.
“The Federal Court’s decision
to affirm my conviction has been
criticised throughout the world and
within the country,” said Anwar in
his affidavit, adding that Amnesty
International regarded him as a
political prisoner.
He said the board had violated
his rights as guaranteed in the Federal Constitution as the decision
was arrived in breach of rules of
natural justice.
Lawyer N Surendran, who is appearing for the applicants, said the
court papers would be served on
the respondents as soon as possible.
Anwar lost his final appeal on
Feb 10 before the Federal Court to
overturn a conviction for having carnal intercourse with his former aide
Mohd Saiful Bukhari Azlan in 2008.
Anwar’s family filed a royal pardon
to the Yang di-Pertuan Agong on behalf of the former opposition leader
on Feb 24.
However, Surendran and another
lawyer Latheefa Koya came to know
that the family’s pardon application
was dismissed during court proceedings on March 27. Anwar said his family were not officially notified about
the rejection. — The Malaysian Insider
PAS backs Azmin as
Selangor menteri besar
Hadi says Pakatan Rakyat is merely going through ‘challenging times’
KUALA LUMPUR: PAS president
Datuk Seri Abdul Hadi Awang has
told his assemblymen in Selangor to back PKR deputy president
Mohamed Azmin Ali as the state’s
menteri besar, which will keep the
current administration in power.
In a short column published in the
party’s organ Harakahdaily yesterday,
Hadi said his instruction had been relayed to Selangor PAS commissioner
Datuk Iskandar Abdul Samad, who
is also the state’s executive councillor (exco).
Three of PAS’ 15 assemblymen
are excos in the current state administration.
“I would like to stress that PAS’
cooperation with Pakatan [Rakyat]
components in Selangor is on the
basis of defending the government
PAS representatives in
Selangor have been told by
Hadi to support Azmin as
menteri besar. The Malaysian
Insider file photo
that was formed through the people’s trust,” he said.
Hadi, however, continued to
maintain that Pakatan is merely
going through “challenging times”,
despite declarations by DAP and
PKR that the coalition no longer
functions formally.
“We are facing differences in
principles that need a fair solution
to fulfil the aspirations of the people
who want to see a change.”
The declarations by PKR and DAP
that Pakatan has ended raised questions regarding the feasibility of the
Selangor state government, where
PAS and DAP, who are at loggerheads,
both hold 15 state seats, respectively.
PKR has 13 seats, and there has
been speculation that a state election
needs to be called if either PAS or DAP
withdraws its support for Azmin, who
has served just under a year as menteri besar following the acrimonious
exit of Tan Sri Abdul Khalid Ibrahim,
who was sacked from PKR before resigning as menteri besar.
Hadi previously stressed that
PAS is still with Pakatan despite
the Islamist party passing a resolution to sever ties with DAP at its
recent muktamar (general assembly), which led to DAP declaring
Pakatan as not existent anymore.
The party’s fractious muktamar,
which saw the conservatives sweep
almost all top leadership seats against
the party’s progressive leaders, has
led to speculation that the progressives, being dubbed G18, would form
a new political party to replace PAS
in Pakatan. — The Malaysian Insider
Income gap between states widens
BY SHERI DA N MA HAV ERA
KUALA LUMPUR: The income gap
between the richest and poorest
states has gone up in two years, said
think tank Institut Rakyat, where
the median income of the richest
in Kuala Lumpur, is almost three
times the level of the poorest in
Kelantan. Though Kuala Lumpur is
a Federal Territory, it was considered as a state in the survey.
The widening gap is expected to
put more pressure on Putrajaya’s goal
in the 11th Malaysia Plan (11MP) of
sharing the national wealth more
fairly between all parts of the country.
An Institut Rakyat study found
that even though the median income level of nine states in Malaysia
had gone up in two years, it was still
below the national median income
level of RM4,585 in 2014.
This is even though the national
median income level had gone up
by 11.7% to RM4,585 a month in
2014 from RM3,626 in 2012, said
Institut Rakyat assistant research
director Ginie Lim.
At the same time, Kuala Lumpur, Selangor, Melaka, Johor and
Penang recorded median income
levels above the national median,
said Lim.
The median represents the income at the middle of society between the richest and poorest, and
economists use this measurement
to see how fairly income is distributed between all levels of society.
Median is considered more accurate than average household incomes, which can be skewed by extreme high and low numbers among
the richest and poorest in society.
Kuala Lumpur, Selangor and Johor were the top three states with
the highest median income levels
at RM7,620, RM6,214 and RM5,197
a month, respectively.
Kedah, Pahang and Kelantan
were the three states at the bottom
of the scale with median incomes
of RM3,451, RM3,389 and RM2,716
respectively.
“Those in Kuala Lumpur who earn
above RM7,620 a month have incomes 2.8 times half of all Kelantanese
or those who earn above RM2,716 a
month in Kelantan,” said Lim.
The figures used in Institut Rakyat’s calculations were taken from
the Statistics Department 2014
household income survey that was
published recently.
Lim said the gap between the
states with the most income equality
and the ones with the least income
inequality had also gone up.
The state with the most income
equality was Melaka which had a
Gini co-efficient of 0.316. The closer
the measurement is to zero, the more
equal a society is in terms of income.
At the other end is Kuala Lumpur, which has a Gini co-efficient
of 0.407, which is even higher than
the national level of 0.401.
“In 2007, Perlis had the highest
level of income inequality at 0.454
which is 1.23 times the level of Johor, which had the lowest at 0.368.”
But in 2014, Kuala Lumpur’s level
of inequality was 1.29 times that of
Melaka, meaning the gap between
the most equal and most unequal
had gone up, said Lim.
The gap between different regions, she said, was important if
Malaysia wanted to really achieve
its goal of creating a more equitable
society under the 11MP.
“We are so used to looking at income inequality nationally and across
ethnic groups but I think we should
also look at it across different states,”
Lim told The Malaysian Insider.
About one third of the 11MP is
focused on inclusive growth, which
includes narrowing the infrastructure gap between urban and rural
Malaysia, and on lifting the incomes
of the bottom 40% of Malaysians.
— The Malaysian Insider
IN BRIEF
Five firefighters injured
in Juru factory blaze
BUKIT MERTAJAM: Two firemen
from the Penang Fire and Rescue
Department and three personnel
from the volunteer fire and rescue
team (PBS) experienced breathing difficulties while dousing a
fire at a plastics recycling factory
in Juru here on Tuesday night. Perai Fire and Rescue Station deputy
superintendent A’azelan Hassan
said the affected personnel were
overcome by thick smoke in the
11.30pm incident, and were sent
to Seberang Jaya and Bukit Mertajam hospitals. “All of them are still
being treated at the two hospitals
and their conditions are reported
to be stable,” he said here yesterday. He said the operation had
adhered to standard operating
procedure and initial investigations revealed there was no fault
on the part of the firefighters. —
Bernama
MB: Register as voters
to receive aid
KUALA TERENGGANU: More
than 14,000 applications for Aidilfitri aid and Terengganu’s Youth
Service Fund this year were rejected because the applicants did
not register as voters. Menteri Besar Datuk Seri Ahmad Razif Abdul
Rahman said registering as voters
was one of the conditions for the
two handouts. “During the state
executive council meeting today
[yesterday], we agreed to reopen
the appeals on the applications
via the web site http://danattb.
terengganu.gov.my/ until July
2, whereby those whose applications were unsuccessful can
appeal, on condition they register
as voters first,” he told a media
conference at Wisma Darul Iman,
yesterday. — Bernama
Subra: MIC polls can
be held by October
PUTRAJAYA: MIC deputy president Datuk Seri Dr S Subramaniam gave his assurance yesterday that the party re-elections
can be completed by October
this year. “We will carry out the
re-elections accordingly as what
was stated, unless we get any
other kind of instruction,” he told
reporters here. On Tuesday, Subramaniam who is also Health
Minister, said the Registrar of
Societies had granted permission
to MIC’s Interim 2009 Central
Working Committee to extend
the period until October this year
for the party to hold re-elections.
— Bernama
IJN seeks funds
to aid heart patients
KUALA LUMPUR: The National
Heart Institute (IJN) is seeking
contibutions from individuals
and corporate bodies to finance
the operations of its heart patients. Its chief executive officer,
Datuk Dr Mohd Azhari Yakub
said this was aimed at easing the
burden of patients who could not
pay the cost of their treatments.
“Contributions can be channelled
to the IJN Foundation while IJN
will give one sen from (every)
RM1 of our revenue to help finance the treatments for adult
and child patients.” — Bernama
14 H O M E
‘Malaysia to become
entirely smoking free’
Two strategies have been adopted to reduce the number of smokers, says Subra
PUTRAJAYA: Malaysia has adopted
two strategies to eventually make
the entire country a smoking-free
zone, said Health Minister Datuk
Seri Dr S Subramaniam.
One is to increase, in stages, the
smoking-free zones in the country,
and the other to reduce the number of places where cigarettes are
allowed to be sold, he said.
“These are two of the strategies
to control and reduce the number of
smokers. Eventually, we are hope-
ful that the country can be declared
a smoking-free zone, although we
do not know when that can be realised,” he told a news conference.
Subramaniam said another
long-term measure is to raise the
price and the duty on cigarettes.
At the event, the minister handed over certificates of appreciation to six retailers and traders at
Complex E here for voluntarily
stopping the sale of cigarettes at
their premises.
Praising the initiative by the
shopkeepers, Subramaniam said
he hopes that more retailers and
traders in the federal government
administrative centre would emulate their example.
He said that as a ministry responsible for maintaining the
health of the people, it is only
proper that greater restrictions
on smoking be enforced at the
ministry itself.
As such, he said, since the mon-
itoring and enforcement of restrictions on smoking were implemented at the ministry on May
1, thirteen notices pertaining to
offences and seven warnings had
been issued.
Furthermore, all staff at the ministry who smoke have been instructed to attend programmes to give
up the habit, and staff who do not
smoke have been enlightened on
the dangers of cigarette smoke, he
said. — Bernama
SCRAMBLER DUCATI
KICKS OFF NATIONWIDE
TOUR ... Next Bike Sdn Bhd
(Ducati Malaysia) has motorcycle
aficionados ready to make a beeline
for the Ducati showroom, following the
official launch of its range of Scrambler
Ducati on Tuesday. To be followed by
a nationwide tour, all four variants of
the Ducati Scrambler are available in
Malaysia. Introductory net selling prices
(inclusive of GST are RM57,333 for the
Scrambler Icon and RM64,888 for the
Urban Enduro, Full Throttle and Classic.
Pictured (from left) are Next Bike head
Sam Sharman, Naza World Group of
Companies’ Two Wheel Division vicepresident Juan Chow Wee, Ducati Welly
Sungai Buloh operations director Ngo
Kim Sieng, and its owner and operator
Ngo Yoke Kwang. Photo by Naza World
Group of Companies
‘Voters might take radical action’
BY V A N B A L AGA N
KUALA LUMPUR: Parties unhappy
with the Election Commission (EC)
over how elections are run will now
likely resort to “radical” action as
the door to justice appears to have
been shut, the Coalition for Clean
and Fair Elections (Bersih) and
opposition parties warned.
They said the courts had not
been forthcoming in hearing the
merits of election disputes, and
instead found ways to throw out
the cases on technical grounds.
PKR legal adviser Sivarasa Rasiah said only two election petitions
passed the mark of having the merits of the matter heard, but the party
had to withdraw the cases as it was
faced with an uphill task.
“The EC had stacked a long line
of witnesses and we did not have
the resources to counter them,” said
Sivarasa, who is also a PKR central
working committee member.
He said the “obstacles” could
drive aggrieved parties to resort
to radical alternatives as the legal
remedy is virtually closed.
Sivarasa said this in response
to the Federal Court decision last
week, which refused to allow leave
to appeal by PAS, DAP and PKR to
restore a suit seeking the cancellation of the 13th general election
(GE13) results on the grounds that
it was not free and fair due to the
indelible ink fiasco.
Furthermore, election judges
last year dismissed petitions on
technical grounds, although 58 cases were filed in Peninsular Malaysia, and 11 in Sabah and Sarawak,
after the GE13.
Last week, a five-man bench,
chaired by Chief Justice Tun Arifin Zakaria, threw out the claim by
the three opposition parties, citing
that election disputes could only
be challenged through petitions.
The top judge said that any challenges against the EC are clearly
spelt out under Article 118 of the
Federal Constitution, and such matters must be heard before a special
election court, not a civil court.
Sivarasa also said the EC is as
good as the people who make up
the organisation.
“However, the present EC members do not inspire confidence as
they are perceived to be not independent,” he said, adding that opposition parties need to keep up the
pressure to ensure there is no gerrymandering and malapportionment
to keep Barisan Nasional in power.
Bersih chairman Maria Chin
Abdullah also did not discount the
possibility of parties venting their
frustration through other means
as the EC is seen as a poor referee, while the courts did not give a
fair hearing.
“In last week’s case, I would have
expected the Federal Court to give
leave and hear out the appeal, especially when there was a dissenting
judgement from a Court of Appeal
judge,” she said.
Maria said she is also not “very
optimistic” about the final outcome
of the landmark High Court decision that declared null and void the
electoral constituency re-delineation exercise for Sarawak.
The Court of Appeal has fixed
July 9 to hear the EC’s appeal
against a judicial review application
filed by Batu Lintang assemblyman
and Sarawak PKR vice-chairman
See Chee How and Pauls Baya, a
voter in Ulu Baram, Sarawak.
The action was filed on the
grounds of a serious and considerable lack of details in the Jan 5
notice for the people who were
affected to make a decision.
Judge Datuk Yew Jen Kie last
month said it was for the EC to
publish the electoral roll, the list
of proposed changes and the areas affected, so the public would
know how they would be affected
by the redrawing.
PAS lawyer Mohamed Hanipa
Maidin said there is already a perception in the public mind that
remedies through legal avenues are
an exercise in futility, but electoral
reform groups, like Bersih, have
instilled awareness and educated
the public on the importance of
free and fair elections. — The Malaysian Insider
IN BRIEF
IGP: Not confirmed
whether Malaysians detained for gold smuggling
KUALA LUMPUR: The Royal
Malaysian Police is unable to
confirm whether Malaysians
are among those detained in
India, following a foiled attempt to smuggle gold ingots
worth 17 crore rupee (RM10
million) into the subcontinent
on Tuesday. Inspector-General of Police Tan Sri Khalid
Abu Bakar said police had not
obtained any information on
the detention. “Interpol has
not informed us,” he said when
contacted by Bernama here
yesterday. On Tuesday, 45 passengers on two AirAsia aircraft
were among 56 suspects detained by the Indian authorities at the Visakhapatnam International Airport in Andhra
Pradesh, India, after an attempt
to smuggle 62kg of gold ingots,
according to The Times of India.
— Bernama
‘Kg Baru an example why
bumi targets not met’
KUALA LUMPUR: Despite approving the Kampung Baru Development Corporation Act,
“not one piece of steel” has
been seen in the redevelopment of the historical Malay
enclave, which sits on prime
real estate in Kuala Lumpur, a
senator said on Tuesday. Tan
Sri Abdul Rahim Abdul Rahman also questioned why no
financial autonomy had been
given to the body set up to oversee the redevelopment of the
area, where instead the allocation was given to the Kuala
Lumpur City Hall (DBKL). “So,
whatever we need, we need to
go to Bandaraya (DBKL),” he
said. — The Malaysian Insider
One vessel quits MH370
search, two pause
KUALA LUMPUR: Three vessels
involved in the current phase
1 of the search operation for
missing Malaysia Airlines flight
MH370 have left the search
location in the Indian Ocean,
but two of them will return. The
Australian Joint Agency Coordination Centre (JACC), which
oversees the search, said Go
Phoenix ceased the deep-sea
operation on Saturday, with its
contract reported to have ended. The other two vessels, Fugro
Discovery and Fugro Equators,
left the area for port visits to
resupply, which is deemed as
a routine and necessary part
of search operations, the JACC
said in a statement. — Bernama
Crackdown on dissent
worsening, says Suaram
KUALA LUMPUR: Human
rights group Suara Rakyat Malaysia (Suaram) highlighted
yesterday Putrajaya’s inconsistency in dealing with the
rise of racial and religious hate
speech, and with critical and
dissenting views. The group, in
its 2014 annual report on the
state of human rights in Malaysia, also revealed six worrying
trends that had developed. —
The Malaysian Insider
H O M E 15
‘Selangor govt crippled after coalition’s death’
BY MD I ZWA N
PETALING JAYA: The Selangor state
government will be crippled now that
Pakatan Rakyat is no more, warned
a constitutional law expert, despite
assurances from the state’s administration that it will continue working as a coalition of separate parties.
Dr Abdul Aziz Bari said the lack
of a common policy means that Selangor does not have a solid foundation to guide future decisions.
It would also make it difficult for
the three parties to tackle future
Former Perak
syariah judge
jailed for graft
PUTRAJAYA: Former Perak Syariah High Court judge Hassan
Basri Shafie will spend Hari Raya
Aidilfitri behind bars.
Yesterday morning, the Court
of Appeal sentenced him to six
years’ jail for corruption.
The 61-year-old, who lost
his final appeal to set aside his
conviction for seven corruption
charges, was sent to the Kajang
Prison to begin his sentence.
The Court of Appeal’s
three-member panel chaired
by Justice Datuk Mohtaruddin
Baki unanimously dismissed
Hassan Basri’s appeal against
his conviction after finding that
the conviction was safe.
The court also maintained the
RM210,000 fine imposed on him
by the Sessions Court. Hassan
Basri, however, succeeded in his
appeal to have his jail sentence
reduced from 10 years to six.
The panel, which comprised
justices Datuk Tengku Maimun
Tuan Mat and Datuk Seri Zakaria Sam, maintained the jail sentences of between one and five
years, but ordered Hassan Basri
to serve the sentences concurrently, instead of consecutively.
Hassan Basri, who appeared
calm when the court delivered
the decision, was ordered to begin his sentence from yesterday
as he was on bail of RM105,000 in
two sureties, pending hearing of
his appeal in the Court of Appeal.
He was accused of soliciting and receiving bribes from
two persons pertaining to two
marriages without following the
correct procedures, and for the
return of bail monies relating to
alcohol consumption and encouraging vice offences at several
locations in Perak between Aug
6, 2006 and Aug 15, 2007.
The Sessions Court in Ipoh
convicted and sentenced him
to 10 years’ jail on the charges
on Dec 14, 2010. Hassan Basri lost his appeal in the High
Court, which upheld the Sessions
Court’s decision. He is believed
to be the first syariah judge to be
sentenced for corruption.
His counsel Afifuddin Ahmad
Hafifi had earlier argued that the
charges preferred on his client
were defective as the evidence of
witnesses did not fit the particulars in the charges. — Bernama
controversies together, such as if
Christian Bibles are seized again
by the overzealous religious authorities, the former law professor
said by way of example.
He also questioned how state
executive council members from
DAP and PAS are supposed to work
together, now that their parties are
at each other’s throats.
“The exco or cabinet needs to
be run by a common framework or
policy. In Selangor, we don’t know
what the PAS excos may be thinking,” said Abdul Aziz, who taught
law at the International Islamic
University previously.
“So, this is the problem. If you
don’t have a common policy or you
had one and abandoned it, what
policy will you use to run the state?
“It is funny that DAP and PAS
can still sit together in the same
exco,” he said.
In Selangor’s 10-member exco,
DAP and PAS have three exco seats
each, while PKR has four.
Questions have been raised over
how the Selangor state government
will function, now that PKR and
DAP have declared that Pakatan
as a formal alliance is dead.
Selangor Menteri Besar Mohamed Azmin Ali said problems
affecting the three parties at the
national level would not affect the
running of the state.
Abdul Aziz, however, questioned
how Azmin’s administration would
respond if another seizure of Christian Bibles is to happen as there is
no common policy.
“Right now, there is no statement
about what policy and foundation
they will use. The situation in Sel-
angor will be very confusing.
Abdul Aziz said the lack of an
official common policy could eventually make Azmin vulnerable to
a vote of no-confidence from the
Selangor legislature.
“They can test his administration
by putting a motion of no-confidence. It can be brought by Umno,
DAP or PAS.
“For me, the best way forward is to
dissolve the assembly, have another
state election and give the mandate
back to the people,” said Abdul Aziz.
— The Malaysian Insider
Informal meet to discuss
new opposition pact?
It gives hope to formation of Pakatan 2.0, says Teresa Kok
BY ZULKIF LI SU LO NG
& RAM ANAND
KUALA LUMPUR: A group of progressive PAS leaders broke fast with
DAP and PKR leaders on Tuesday,
amid talk of a new opposition pact
being formed with the Islamist
party leaders who lost in its recent
party elections.
The group, known as G18, met
with prominent PKR and DAP
leaders, including PKR president
Datuk Seri Dr Wan Azizah Wan
Ismail and senior party leaders
Chua Tian Chang and Datuk Saifuddin Nasution Ismail.
Selangor Menteri Besar Mohamed Azmin Ali, who is also PKR
deputy president, could not attend
as he had a state function in Kuala
Selangor.
DAP was represented by its parliamentary leader Lim Kit Siang,
Seputeh member of parliament
(MP) Teresa Kok and Kluang MP
Liew Chin Tong.
PA S Tu m p a t M P D a t u k
Kamaruddin Jaafar hosted the
event at his house in Gombak.
In a Facebook post, Kok said
Kok (fourth from left) seen together with progressive PAS leaders on Tuesday. Photo by
Teresa Kok Facebook pic
that the meeting “gives hope” to
the formation of Pakatan Rakyat
2.0, as she described it.
“This is the first time I have seen
the PAS progressives being so united,” she said.
Among the PAS progressives
who attended the breaking fast
included former deputy president
Mohamad Sabu, former vice-president Salahuddin Ayub, former
central committee member Datuk
Dr Mujahid Yusof Rawa, former
party election director Dr Mohd
Hatta Ramli and former youth chief
Suhaizan Kaiat.
Mohamad Sabu, also known
as Mat Sabu, told The Malaysian
Insider that the meeting was “very
successful”.
“It was very successful as all
the top leadership attended the
meet,” he said.
But he added that any further
elaboration on the matter will only
come after the Hari Raya celebrations.
Liew was also tight-lipped about
the meeting.
“We will see how to move on
from here,” Liew told The Malaysian Insider yesterday.
It has been widely speculated
that a new political party might
be formed by the G18 after the
Hari Raya festivities, with PAS
faction Persatuan Ummah Sejahtera Malaysia having declared
that it will form a new party with
the G18 in order to replace PAS
in Pakatan.
Pakatan was declared to have
ended last week, after PAS passed
a resolution to cut ties with DAP
at its muktamar (general assembly), in which the party’s conservatives made a clean sweep of the
elections.
The Islamist party, however, insisted that it remains with Pakatan,
though DAP and PKR had declared
that the pact no longer functions
formally. — The Malaysian Insider
Two to three masterminds behind oil tanker hijacking identified
KUALA LUMPUR: Malaysian Maritime Enforcement Agency (MMEA)
intelligence has identified two to
three masterminds who are believed to be involved in the hijacking of the MT Orkim Harmony tanker.
MMEA deputy director-general
(operations) Vice Admiral Datuk
Ahmad Puzi Abdul Kahar said the
MMEA is collecting information on
the kingpins, including their movements and citizenships.
“The eight suspects detained in
Vietnam must be extradited to obtain information and expedite the
investigation process, so that the
masterminds could be prosecuted.”
He said the MMEA would obtain
communication data analysis from
satellites and mobile telephones
used by the eight suspects.
“It is a jigsaw puzzle that we have
to fix. We need to gather and convict them.
“We need time, research and cooperation of all parties, including
[the] Interpol, neighbouring countries and communities, to come
forward to provide information to
strengthen the findings and determine the individuals involved.”
The MT Orkim Harmony tanker
was carrying 6,000 tonnes of petrol
worth RM21 million when it was reported missing at 8.57pm on June
11, while on the way from Melaka
to the Kuantan Port, Pahang.
The eight suspects in the case
were detained by the Vietnamese
authorities near Tho Chu Islands,
Southern Vietnam last Friday.
Ahmad Puzi said the probe is
half completed, and all requirements for a forensic study had been
conducted.
“Hence, for the remaining half,
we have to wait for the eight suspects to be extradited so as to expedite the investigation.”
He said seven cases involving sea
robberies/piracy had occurred in
the South China Sea this year, which
were categorised into two types,
namely “hit and run” or “opportunity basis” and planned crimes,
including oil robberies involving
hijacked vessels while waiting for
phantom vessels to transfer the fuel.
The investigation revealed that
syndicates were behind planned
robberies and thefts, comprising
players such as masterminds, robbery recruits, informers, robbers,
phantom vessels and buyers.
The authorities gave an assurance of continual close cooperation, including information sharing
and human capital development
with the MMEA to curb hijacking
and ensure security in the South
China Sea. — Bernama
16 C O M M E N T
Five critical issues in
US-China relations
Bilateral investment treaty likely to make most progress
major announcements until Xi’s
state visit.
his week, the United
I will briefly explain the signifiStates will host the sev- cance of these five major issues.
enth annual US-China
Strategic and Economic 1. The South China Sea
Dialogue (S&ED), the The South China Sea issue has
capstone piece of more been front and centre for the last
than 90 high-level meetings between 18 months, as China carried out
American and Chinese officials.
major land reclamation efforts.
Treasury Secretary Jack Lew and While the issue stems from terrihis Chinese counterpart will lead the torial disputes between China and
economic track, while Secretary of various Southeast Asian nations,
State John Kerry and his counterpart which don’t intrinsically involve
will co-chair the strategic track.
the US, the US sees China’s island
This year’s dialogue has special building activities as a potential
significance because it will set the threat to freedom of navigation
stage for President Xi’s state visit in along a critical trade route.
September. US-China relations have
China, on the other hand, sees US
been rocky recently, owing primarily involvement in the region as medto tensions in the South China Sea, dling in bilateral disputes with ChiChina’s new law governing foreign na’s neighbours. It sees enhanced
non-governmental organisations, US military cooperation with Vietand friction over membership in nam and the Philippines, and inChina’s Asian Infrastructure Invest- creased Japanese military activity
ment Bank (AIIB) and the US-led in the region, as part of a US strategy
Trans-Pacific Partnership (TPP).
to contain China. The 2015 dialogue
In addition to these issues, Chi- provides an opportunity to ratchet
nese and American leaders will de- down the recent level of confrontavote substantial attention to cyber- tion in order to smooth the way to a
security and the recently disclosed successful state visit by Xi.
hack of the Office of Personnel Management’s (OPM) database, as well 2. China’s new law governing
as the ongoing negotiations toward foreign NGOs
a US-China Bilateral Investment China’s new draft law on non-govTreaty (BIT).
ernmental organisation (NGOs)
The diplomatic community has will substantially limit the ability
lower expectations for this round of a wide range of organisations
— due partly to recent difficulties to work in China. The key sticking
in the relationship, as well as an point in the new law is that it placinclination on both sides to save es regulatory authority over foreign
BY WI L L I A M JOHNSON
T
NGOs with China’s State Security
Bureau, rather than the Ministry of
Civil Affairs, which regulates domestic NGOs. Police will be allowed to
enter and inspect offices, and seize
documents and equipment. The US
has long been critical of China’s record on human rights, and this proposed law, which was released for
comment on June 8, will be a focal
point in that discussion.
China’s response to US pressure
on this issue will likely turn on its view
that foreign elements are stirring up
trouble in China. This is the same argument that China used to explain
the Occupy Central pro-democracy
demonstrations in Hong Kong.
3. Friction over membership in
China’s AIIB
Economic alignments in East Asia
will likely be a central focus of this
year’s dialogue. China is in the process of starting the AIIB, which is
intended to provide more streamlined funding than the World Bank
or the Asian Development Bank can
currently provide.
The US opposed the establishment of the AIIB — and lobbied its
allies to decline membership — on
the grounds that it had unclear governance standards, inadequate environmental controls, and might not be
sufficiently capitalised to sustain its
loans. But in the week before a March
deadline, the US suffered a stinging
defeat as its allies, led by the United
Kingdom, became founding members of the bank. Governance of the
This year’s dialogue has special significance because it will set the stage for Xi’s
state visit in September.
AIIB, and a means for coordinating
its efforts with the World Bank, will
be key elements of the economic
discussions.
In a similar vein, the US-led TPP
includes the US and Japan as the
key members of what would be the
largest trade agreement ever. The
difference here is that China is the
outsider. China has complained that
the TPP is yet another instance of
the US trying to contain China. US
President Barack Obama’s recent
remark that the US must write the
rules for trade, or China will, didn’t
dispel this notion.
4. Cybersecurity
Cybersecurity, which has been a simmering point of dispute at every dialogue, will become even more heated
in light of the recently disclosed hack
of the OPM personnel database, as
well as the database containing security background data for nearly
every federal employee and military
member.
The US, while not directly accusing the Chinese government, has
claimed that the hack was the work
of Chinese actors. Couple that with
the indictment of five Chinese military personnel for cyber-espionage
against US corporations and labour
organisations in order to gain economic advantage, and there is little
doubt that the meetings will be fairly
rancorous.
Still, not everything on the cyber
front is gloomy. The US and China
have made a great deal of progress
in cooperating on cyber-tracking
of illicit movements of funds and
people. The Chinese will be pressing hard to get the US to cooperate in disrupting the illegal flow of
cash from China to the US, and in
repatriating both the funds and the
fugitives who stole them.
5. Bilateral investment treaty
The least contentious of the major issues is the BIT, which would
establish rules for foreign investment in each country. After hitting
roadblocks in previous years, the
two countries have made concrete
progress in the run up to this year’s
dialogue.
They have exchanged “negative
lists” that designate areas of the
economy where foreign investment
will not be allowed — the first step
toward winnowing each country’s
lists to a level acceptable to the other
side. Experts are optimistic that this
deal can be completed during Obama’s tenure. Don’t expect instant
success, but this is the most likely
area for the dialogue to come up
with some sort of major agreement.
The dialogue will set the tone
for US-China relations for the next
year. These issues will be central
to those relations. All of them bear
watching. — Reuters
A new beginning for Greece — and Europe
BY D ENN I S J SNOW ER
GREECE is in urgent need of clear
thinking. The only reason the country has not defaulted on its debts
is that the European Central Bank
(ECB) continues to provide funds
to the Greek central bank through
its emergency liquidity assistance
(ELA) scheme. The Greek central
bank, in turn, lends money to its
commercial banks, which lend it to
Greek citizens and foreign creditors.
The problem is both groups of borrowers have been transferring large
sums of money to other countries.
The result is overdraft credits to
the Greek central bank have grown
by nearly €1 billion (RM4.21 billion)
a day in recent months. If Greece
defaults and leaves the eurozone,
these overdrafts will not be repaid.
ELA funding assumes that the
Greek economy is temporarily illiquid, but not insolvent. This assumption is patently false. Despite all the
pain Greece has suffered, the Greek
economy is still nowhere near competitive enough to repay its debts.
Part of the reason is that corruption remains high and administrative capacity to levy taxes remains woefully limited. Meanwhile,
low-income Greek households have
borne the brunt of austerity. In short,
the mess continues.
But allowing Greece to default
and still remain in the eurozone is
not an option: it would signal that
other eurozone countries could
amass huge debts, funded by the
ECB, without having any intention
of repaying.
Yet forcing a defaulting Greece
out of the eurozone — against its will
— is not an option, either: it would
plunge the country into economic,
social, and political instability, and
there would doubtless be serious
repercussions beyond the country’s borders.
In my judgement, there are only
two viable options left. The first —
and more desirable — is for the ECB
to assess realistically Greece’s lack
of solvency and so stop providing
ELA funds to its banking system.
This would precipitate a payment
crisis for Greece. But, recognising
the impending disaster, Greece
would genuinely commit itself to
the structural reforms that are in
its own long-term interests: boosting the labour market’s flexibility,
selling state-owned enterprises
that most other European countries have already placed in private
hands, and spending less on public-sector bureaucracy.
At the same time, Greece would
ensure that these reforms do not
hurt the poorest by introducing
active labour-market policies (such
as subsidies to train and hire the
long-term unemployed). Furthermore, Greece would commit itself
to an automatically implemented
fiscal plan.
So much for what Greece must
do. In return, its creditors would
agree to another one-time debt
write-off — large enough to enable Greece realistically to repay
its debts in the future, but small
enough to avoid unnecessary transfers of credit. Greece would remain
within the eurozone, having lost
some of its fiscal and structural
sovereignty.
If this first option is not taken
— the likely outcome, given the
current game of political brinkmanship — is Greece will default.
But that could set the stage for the
second option, which I would call
the “New Beginning Programme.”
Under this programme, creditor
countries would write off Greece’s
debts, on the condition that the
country left the eurozone voluntarily. This would give Greece the
opportunity to start afresh from outside the monetary union: it could
restructure its economy without
outside interference, and could be
ready to re-enter the eurozone at a
later point under new conditions —
this time without false statistical pretences or unrealistic expectations.
This second option would be
less desirable than the first. But
the second option would be a new
beginning for the whole eurozone.
Its member states would accept
that monetary union is impossible without fiscal and structural
coordination. The minimum fiscal
coordination needed would involve automatically implemented
national plans, formulated by each
government in advance.
As a counterpart, structural coordination must, at a minimum,
focus European Union funds on
countries with long-term current-account deficits, the aim being to improve their competitiveness through investments in their
human capital. Given that their
current arrangements are neither
credible nor sustainable, the eurozone needs this “new beginning,”
regardless of which option Greece
eventually takes. — Project Syndicate
Dennis J Snower is president of the
Kiel Institute for the World Economy and professor of economics at
the Christian-Albrechts Universität zu Kiel.
F E AT U R E 1 7
Japan’s best recipe for fertility and longevity
BY YOSHI A KI NOHA RA
WOMEN in Okinawa, Japan have
more babies and live longer than
women from almost anywhere
else in Japan. If data from the Statistics Bureau and Labour Ministry are any guide, it has as much
to do with work-life balance as
the prefecture’s sun-drenched
beaches and crystal-clear waters.
As the graph shows, women in
Okinawa give birth to an average
1.94 children over their lifetime,
the highest rate in Japan. Tokyo
comes in last, with women in the
capital on average having 1.13
babies.
Life expectancy for women on
the subtropical island chain is 87,
only fractionally below top-rank
Nagano.
There’s a lesson in here for the
rest of the nation, as it fights to
stem a shrinking population and
boost female participation in the
workforce.
Okinawans, women and men,
work fewer overtime hours than
people almost anywhere else in
Japan, while their counterparts in
Tokyo work about four hours more
each month. That means more
time for couples to raise a famThat’s not to say people in
ily, and increases the likelihood Okinawa are taking it easy while
that men may share more of the Tokyoites slave away in governburden of looking after children. ment offices and corporate head-
Let Greece default
It will be a huge improvement for all concerned
BY B A RRY RI T HOLTZ
T
he never-ending Sturm
und Drang over the
state of Greek debt,
membership in the
eurozone, and the potential shocks of a debt
default has moved from tragedy to
comedy to monotony. The solution
is simple. It won’t be fast, it won’t
be easy, but it will be a huge improvement for all concerned.
Hey, Greece — if anyone is listening — just default on the debt
and start anew. The rest of Europe has caused the country and
everyone else enough agita: just
let Greece leave the eurozone in
peace. Sure, it will be a long torturous process, but at least Greece —
and maybe the euro region — will
start moving in the right direction.
In case anyone forgot: Greece
never should have been in the eurozone in the first place. Based on
the formal entry requirements, it
never met the membership standards. With a little help from the
Wall Street magicians, it lied and
cheated its way in, disguising its
debt levels and fiscal health.
As Spiegel wrote five years ago,
“Goldman Sachs helped the Greek
government to mask the true extent
of its deficit with the help of a derivatives deal that legally circumvented the European Union’s (EU)
Maastricht deficit rules”. Greece
should have been given the treatment a teenage drinker would get
after being discovered in a bar:
tossed out and not allowed in until
meeting the entry qualifications.
Regardless, it is now in Greece’s
own best interests to show itself the
door. There should be no doubt,
as Martin Wolf pointed out in the
Financial Times, that like most divorces, this one will be acrimonious.
But the sooner it starts, the sooner
Greece can begin the process of
starting an economic recovery.
Despite the pain — and there
will be substantial pain, I assure
you — the benefits are many. Here
are a few that might persuade
Greece to pack its bags and leave
the abusive relationship it’s in with
the EU:
i) Bringing back the drachma:
Greece would get to manage its
own currency, and it can join in
the rest of the world’s devaluation
race to the bottom. As is, it is tied
to the euro, which truth be told
works best for the region’s most
efficient producer, Germany. For
other nations, the benefits are more
modest. For Greece, the euro has
been a huge negative for the past
half-decade.
Don’t underestimate the advantages of a country, such as Greece,
having its own currency. It will give
it a level of control far greater than
it has now. A new drachma would
fall, perhaps dramatically, versus
the euro and US dollar. That creates
an opportunity to sell exports inexpensively versus the competition.
Plus, it’s great for tourism, Greece’s
biggest industry, and would help
the country’s agriculture producers. It might also give Greece an
opportunity to expand the service
sector. If the Brits could do it, so
can Greece!
ii) An independent central bank:
Don’t sell short the advantages
of having a Greek version of the
US Federal Reserve. What fun! A
Greek central bank can hold pressers, host conferences and publish
research. In the United States, we
do this thing with dots that’s just
hilarious! It’s all terrific stuff, and
will give Greece a wonky forum to
bash German Chancellor Angela
Merkel, just for kicks.
Caveat: It is important not to
cause a global financial crisis or
hyperinflation. If that happens,
the I-told-you-so crowd will never shut up.
iii) Tax collection: I know, I
know: the Greek people don’t
like to pay their taxes. Who does?
Evasion costs the public coffers
US$30 billion (RM113 billion) a
year. Athenians declare poverty,
yet satellite photos of the city show
16,974 swimming pools, while its
residents claim to have just 324.
As amusing as that is, Greeks have
a choice: follow the strictures of the
EU and the International Monetary
Fund, as dictated by Germany, or
take control of the future and make
independent decisions. The only
way that is going to happen is tax
collection. The country will have
to grow up and learn how to do it.
The bottom line is this: There is
no easy end in sight for the absurd
dance Greece has found itself stuck
in with its European colleagues. It
needs to start fresh. To quote my
colleague Josh Brown: “The reason
we’re all getting sick of the Greek
drama is they haven’t killed off any
main characters yet and it’s already
season five.”
Before season six begins, Greece
and the EU should stop delaying
and move towards the inevitable
conclusion of this sorry spectacle.
— Bloomberg View
quarters. The labour force participation rate for women in Okinawa
is above the national average, and
just a smidgen below that in the
capital.
As the birth rate falls across Japan as a whole, Kanako Amano,
a demographics specialist at the
NLI Research Institute in Tokyo,
points to people marrying later.
Okinawan women tend to get
hitched at an earlier age, and on
average give birth to their first
child at 29.1, compared with 32
in Tokyo.
Most Japanese couples want
to have two or three children,
but financial resources hold back
women under 30 and health issues have an impact on many
from 35, according to a government study.
Amano, 43, who has one child
and gave birth in her mid-thirties,
said that if the government wants
to help couples start a family, it
has to help them do it at a younger
age, and to address overwork in
Japan. — Bloomberg
Cambodia’s Rainsy advocates
independent probe into govt excesses
A POLITICAL deal between the
Cambodian government and the
opposition is struggling to hold
amid disputes over policy and
the recent release of an Amnesty
International report detailing “a
pattern of violence” against opposition sympathisers.
A breakdown could force opposition supporters back onto the
streets, ending a brief respite in
a campaign of anti-government
demonstrations that has been
enjoyed by businesses, which initially supported opposition leader
Sam Rainsy but deserted him as
protests grew increasingly violent.
“Businesses are fed up with government corruption but they were
even more upset by the relentless
protests,” one local businessman
attached to a chamber of commerce said. “Life is back to normal,
but if this deal does not hold then
we could take another hit.”
The 124-page Amnesty report
documents the violent aftermath
of national elections in July 2013,
including a focus on the deaths
of at least six people shot by state
forces — and how not one official
or member of the security forces
had been held to account.
“The use of excessive force at
protests by security forces has
ruined the lives of victims and
their families. In some cases, it is
clear who is responsible and in
many others should be quite easy
to find out,” said Rupert Abbott,
Amnesty’s research director for
Southeast Asia and the Pacific.
More importantly, that lack
of justice is irritating grass-roots
supporters of Rainsy’s Cambodian National Rescue Party (CNRP).
Rainsy had struck a deal with
Prime Minister Hun Sen to end
the protests in return for a television licence, a bigger say in government committees, the release
of jailed dissidents and electoral
reforms.
It’s a deal that many in the party have never quite been happy
about, including CNRP deputy
leader Kem Sokha. He wants judicial reform and has promised
justice for his supporters, a failure highlighted in the Amnesty
report.
Rainsy is advocating an independent probe into the excesses
of the government, but only in
the event that he wins the next
elections, not due until 2018.
That, too, does not sit well with
financial supporters who make up
the Khmer diaspora in the West,
where relations are strained.
In the United States, the Massachusetts branch of CNRP has
objected to a recent unilateral
decision by Rainsy to ignore the
wishes of the state branch and
replace its leader with a person
of his choice.
And not all CNRP activists
have been freed. Eleven opposition supporters are currently
before the courts on insurrection
charges over protests that turned
violent last July.
“You look at this report and
you can see no justice for us who
backed the CNRP,” said one supporter, who declined to be named.
Sam Rainsy decides everything
and makes agreements with Hun
Sen. This is not what we want.”
The CNRP’s position has also
been weakened by Hun Sen’s
attempts to rehabilitate smaller
opposition parties – including
the once-powerful Funcinpec,
headed by Prince Norodom Ranariddh – which lost all its seats
to the CNRP in 2013.
“Our competitor was successful in the past because of their
strategy of divide and rule,” Kem
Sokha said of Hun Sen’s political
success. “We already know their
strategy. They want to split us because if our group is split, we are
very weak.” — The Edge Review
18 F E AT U R E
Indonesia celebrates
Ramadan in multiple ways
Muslims within the native ethnicities have own unique traditions during the fasting month
BY A ZEMA N A RI FFIN
T
he holy month of Ramadan is one that is anticipated by Muslims
all over the world, and
every culture has its
own distinct way
of celebrating it. Indonesia, the
world’s most populous Muslim
nation, has hundreds of distinct
native ethnicities.
According to local media reports, the Muslims within these
ethnicities have their own unique
traditions when it comes to celebrating the arrival of the fasting
month.
Javanese Muslims welcome
Ramadan with a tradition called
“nyadran”. The ritual, performed
individually or with friends and
family, involves visiting the graves
of family members.
In Kulon Prago, Jogjakarta,
nyadran is celebrated by marching together towards the cemetery
with food, with the intention of
cleansing themselves and feeding
the underprivileged.
A cleaning ritual
Muslims in Padang, meanwhile,
would take a sacred “balimau” at
a river the day before Ramadan to
cleanse themselves in preparation
of the holy month. Balimau, which
means shower in the local language,
is a bath with water and lime. Many
of those who practice this mass
ritual are from the Minang society.
According to West Sumateran
reports, thousands would come to
Lubuk Minturun in the Koto Tangah
district and Sungai Lubuak Paraku
in the Lubuak Kilangan district for
the ritual.
The Muslims in Semarang, Central Java, meanwhile, greet Ramadan with a bang. The festival
“dugderan” is held annually on
the night before Ramadan, and is
marked by the drum beats at the
People of Kampung Islam Kepaon participating in the ‘megibung’.
grand mosque, followed by the
salvo of a canon.
There would also be a parade,
fireworks and a competition to
create a replica of the mascot of
dugderan, the “warak ngendok”.
The warak ngendok is a four-legged
beast, with the body of a horse, the
neck of a giraffe and the head of a
dragon, believed to be born of the
acculturation of the Chinese, Javanese and Islamic cultures.
Communal feast
In Denpasar, Bali, the breaking of
fast can be an event participated
by anyone of any faith. The 10th
night of Ramadan typically sees
people of varying religious beliefs participating in a traditional
Balinese dining experience called
“megibung”.
The ritual sees the people of
Kampung Islam Kepaon eating together off one large plate layered
with banana leaves.
In Southern Kalimantan, the
“bagarakan” activity sees a group
of young men waking up others for their predawn meal. They
would march throughout housing
areas with percussions and sing
religious songs to wake Muslims
up for the meal that would help
sustain them throughout the fasting day.
On the 21st night of Ramadan,
the activity would be further livened up with a decorated car parade called “bagarakan tanglong”.
— Bernama
Working abroad has rewards, but is challenging too
BY MEL ATI MOHD AR IF F
THE grass is always greener on the
other side. This age old adage seems
to hold true for the thousands of
migrant workers in Dubai, in the
United Arab Emirates (UAE), who
have left their homeland in search
of a better life for themselves and
their families.
Take Abdul Majeed from India
and Bobby Joe from the Philippines
for example. They have been working in foreign lands for years and despite the sweat and tears, the whole
experience is priceless for them.
Following father’s footsteps
Abdul Majeed, from Kerala, came
to Dubai in 1992. He followed in his
father’s footsteps; his father took
the same journey in 1985. His father
worked as a cook in the palace of
one of Dubai’s prominent sheikhs
for 15 years. “When my father fell
ill, I came to Dubai and worked as
a driver with the same employer. I
was 23 years old then,” said Abdul
Majeed who was driving a taxi in his
hometown before coming to Dubai.
Abdul Majeed stayed and
worked for nine years before returning to his hometown. A year later
he returned to Dubai and worked
as a driver with a new employer.
His second job lasted 10 years and
Abdul Majeed, the second of six
siblings, returned home once again
and this time around he tried his
hand at a restaurant business with
a friend. “I stayed in India for three
years, but then I decided to return
to Dubai and got a job as a company driver,” he said.
After years of working abroad,
Abdul Majeed says his current stay
in Dubai might be his last. “I have
worked in a foreign land long enough.
I want to go back to India and and
do whatever work I can in my own
country,” he told Bernama.
Must count your money
Challenges are abound for those
working in big cities, according to
Abdul Majeed. For him, the greatest
one was to manage his earnings as the
cost of living in Dubai is very high. “I
am so used to Dubai and I still can
survive because I am very careful
with my money, or else I would
not be able to save for my old age,”
he said, adding that he cooked his
own meals to save costs.
He says he has seen the increase
in the toll rates, transportation
charges including train and bus
tickets, over the years that pushed
up the cost of living.
As a company driver, he earns
about 3,200 dirham (AED) a month
(about RM3,273) inclusive of food
and housing allowances. To cut
costs, Abdul Majeed rented a bed
in a house in Satwa, an area in Dubai. The house has three rooms and
in his room there are six single beds.
He pays 700 AED a month for the
bed. He also buys groceries and
other necessities from hypermarkets and cooperative supermarkets
as the prices of goods are cheaper
there. “I want to save as much as
I can before I go back to India for
youngest of 11 siblings and hold a
degree in mathematics.
Loads of experience
Sheer hardwork and determination
saw Bobby Joe getting promoted to assistant manager just after six months
into his new job. His current post
is operations manager and he has
been assigned to Dubai to oversee the
company’s business expansion plans.
“Working abroad has helped me to
improve my personality, particularly in terms of leadership qualities
and patience.
“If in the Philippines you need to
be patient with your customers, in
Filepic of Abdul Majeed, his wife and their children. They are the reason he left India so
Saudi, your patience has to be this
much,” said Bobby Joe, stretching
that he would be able to provide a better life for them. Photo by Bernama
wide both hands to indicate the
high level of patience required in
good. I have bought a piece of land to seek greener pastures. Despite dealing with local customers.
and built my own house with my having a good job with a popular
earnings. I also bought a car.
fast food chain in Manila, he decid- Aware of responsibilities
“Those who are working abroad ed to accept an offer to work with Aim high. This is what Bobby Joe beshould save as much as possible for Taza BBQ Chicken in Jeddah, Saudi lieves in. For him, those who are willtheir old age. Or else, it would be a Arabia in 1993. His decision to leave ing to sacrifice leaving their homeland
waste for them to work thousand of his country was not only to look for to work abroad should be willing to
miles from home and have nothing greener pastures, but more to gain work real hard to excel in their work.
left at the end,” he said.
new experience and exposure by
“Don’t just be contented with
Abdul Majeed holds his family working far away from home.
where you are or what you have.
very dearly in his heart. They are
“My neighbour was working in You need to aim high and achieve
the reason he left India so that he Saudi Arabia and he told me about much more. Only then your sacwould be able to provide a better the country and the fact that there rifice will be worth it,” he added.
life for them. “I am getting older. was no night life at all. To me that
Bobby Joe has some advice for
Maybe I will work in Dubai for an- was immaterial.
youngsters who want to work abroad.
other two or three years,” he says.
“I went to Saudi with three
“You should also be prepared
friends. After two years, I was the emotionally as there are too many
Feel responsible
only one left. One went to Italy, the temptations. You must also manage
Like Abdul Majeed, Bobby Joe, 47, other went back to the Philippines your money well, never throw your
from Manila, the Philippines left his and another friend is working in money in buying too many gadgets
homeland when he was 25 years old Abu Dhabi,” said Bobby Joe, the or going for holidays.— Bernama
F E AT U R E 1 9
Developing leaders
who will continue
journey — from
chief HR officers
to chief executives
BERNARD Fontana has served as chief
executive officer (CEO) of Swiss cement
company Holcim since 2012 — and earlier in his career he spent three years as
chief human resources officer at ArcelorMittal, a 320,000-employee global
mining and steelmaking company. He
spoke with HBR about why a stint as
chief human resources officer (CHRO)
is great preparation for becoming CEO.
The following are excerpts.
Did you always aspire to work in HR?
No. But when I was 30 I was working
for a French company, and I travelled
to Hong Kong with the CEO. During the
trip, he talked about how at one point
in his career, he’d been asked to be the
head of HR. ‘It’s not something to do
all your life, but one day if you have this
opportunity, I’d advise you to take it,’ he
said. ‘You’ll learn a lot, and it will be useful if you become a CEO.’ He was right.
Why was serving as CHRO an
important experience?
Leadership is about transforming an institution, and if you want to have a sustainable transformation, you need to develop
leaders who will continue the journey after
you. HR is an essential part of that kind of
generative leadership. My predecessor as
CEO had been here for 10 years, and the
board was looking for an outsider with
this characteristic — the ability to develop
people and generate new leaders.
Fontana:
The ultimate
responsibility
of CEOs is to
make sure
that what
they initiate
will continue.
As more companies do mergers or
reorganisations, are HR skills a
bigger part of a CEO’s skill set?
Yes. Those transformations are times of
opportunity for a company, but they’re
also times of uncertainty for employees.
That’s something you need to acknowledge and turn into a strength. With HR
experience, you’re more aware of certain situations. You pay attention to the
way you say things. During those times,
questions of company identity, values
and behaviour matter a lot.
Do you put many of your up-andcoming stars into HR roles?
In HR, you need a mix of experts who
will spend their careers there and people who will go there for a short time for
development and then return to running businesses. I do put executives into
those jobs, but those development roles
are the minority in any HR department.
Should more boards consider hiring
CHROs as CEOs?
Yes. It’s still relatively rare, but it shouldn’t
be. The ultimate responsibility of CEOs is
to make sure that what they initiate will
continue and that they develop the men
and women who will carry on the work.
So, for me, it’s very logical to have former
CHROs as CEOs, because they have experience developing people. — hbr.org
Why chief human resources
officers make great CEOs
Executives whose traits are most similar to those of the CEO are the CHRO
F
or decades the corporate human
resource (HR) department was
seen as a back-office function, a
cost centre focused on mundane
administrative tasks such as managing compensation and benefits
plans. Over the past 15 years, however, Ellie
Filler has noticed a dramatic change.
Filler, a senior client partner in the Swiss
office of the executive recruiting firm Korn
Ferry, specialises in placing chief human
resources officers (CHROs) with global companies. For years, many of the HR chiefs she
recruited reported to the chief operating
officer (COO) or the chief financial officer
(CFO), and complained that they lacked real
influence in the C-suite.
Today, she says, they often report directly
to the CEO, serve as the CEO’s key adviser,
and make frequent presentations to the board.
And when companies search for new CHROs,
many now focus on higher-level leadership
abilities and strategy implementation skills.
“This role is gaining importance like never
before,” Filler says. “It’s moved away from
a support or administrative function to become much more of a game changer and the
person who enables the business strategy.”
To investigate the CHRO role within the
C-suite, Filler worked with Dave Ulrich, a
University of Michigan professor and a leading consultant on organisation and talent
issues. In looking at several sets of data, they
found surprising evidence of the increasing
responsibility and potential of CHROs.
Among top performers and earners
First, to understand the importance of the
CHRO relative to other C-suite positions,
including CEO, COO, CFO, chief marketing
officer (CMO) and chief information officer
(CIO), Filler and Ulrich looked at salaries.
To identify the best performers, they found
the top decile of earners in each role. Then
they averaged the annual base compensation of each group. No surprise: CEOs and
COOs are the highest-paid executives. But
CHROs are next, with an average base pay
of US$574,000 — 33% more than CMOs, the
lowest earners on the list. “Great CHROs are
very highly paid because they’re very hard
to find,” Ulrich says.
The researchers also studied proprietary
assessments administered by Korn Ferry to
C-suite candidates over more than a decade. They examined scores on 14 aspects of
leadership, grouped into three categories:
leadership style, or how executives behave
and want to be perceived in group settings;
thinking style, or how they approach situations in private; and emotional competency,
or how they deal with such things as ambiguity, pressure and risk taking. The researchers
then assessed the prevalence of these traits
among the different types of executives and
compared the results.
Their conclusion: Except for the COO
(whose role and responsibilities often overlap
with the CEO’s), the executive whose traits
were most similar to those of the CEO was
the CHRO. “This finding is very counterintuitive — nobody would have predicted it,”
Ulrich says.
Barra was General Motor’s vice-president of HR at for 18 months before she became its CEO. Photos by Bloomberg
C-suite functions — CEO, CFO, COO, CIO,
CHRO and CMO — in which each executive
was ranked on 14 aspects of leadership on a
scale from one to seven. The surprising result: The traits of CHROs matched up closely
with those of CEOs.
The discovery led Filler and Ulrich to a
provocative prescription: More companies
should consider CHROs when looking to fill
the CEO position. In the modern economy,
they say, attracting the right talent, creating
the right organisational structure and building the right culture are essential for driving
strategy — and experience as a CHRO makes
a leader more likely to succeed at those tasks.
The advice comes with some caveats.
First, Filler and Ulrich studied only the best
performers, so they are pointing to a small
subset of CHROs as having corner-office
potential. They do not see a path to the top
job among people who have spent their
careers in HR; instead, they are touting the
prospects of executives who have had broad
managerial experience (and profit-andloss responsibility) that includes a developmental stint running the HR department.
They emphasise that any CHRO who aspires to become a CEO must demonstrate
capabilities in a host of skills required of
top leaders. “The challenge for CHROs is
to… acquire sufficient technical and financial skills, in early education and in career
steps along the way, if succession to CEO
is a desired outcome,” they write in a white
paper about their research. Indeed, some
companies, including Zurich Insurance,
Nestlé, Philip Morris and Deutsche Bank,
do put high-potential executives through
a developmental rotation in a high-level
HR job.
Paving the way for female CEOs?
Filler and Ulrich highlight two examples of
prominent CEOs who had developmental
stints in HR earlier in their careers. Mary
Barra, CEO of General Motors, served as
the carmaker’s vice-president of HR for
18 months; and Anne Mulcahy, Xerox’s
CEO from 2001 to 2009, ran the company’s
Mapping leadership styles
HR operations for several years in the earThe researchers analysed 360-degree as- ly 1990s. It is no coincidence that both are
sessments of thousands of leaders in six women: According to the researchers’ data,
42% of high-performing CHROs are female
— more than double the share in the CMO
position, the next highest (16%). One implication: If more companies envisioned
CHROs as potential CEOs, the number of
female CEOs could dramatically increase.
In their white paper, Ulrich and Filler also
report on what CEOs and CHROs have to say
about the changing nature of the top HR role.
Several CEOs see the CHRO as C-suite consigliere. “It is almost impossible to achieve
sustainable success without an outstanding
CHRO,” says Thomas Ebeling, CEO of German media company ProSiebenSat.1 Media AG and a former CEO of Novartis. “[The
CHRO] should be a key sparring partner for
a CEO on topics like talent development,
team composition and managing culture.”
Peter Goerke, London-based group director for HR at Prudential, agrees with
Filler and Ulrich that, although deep skills
in marketing or finance might once have
given CEO aspirants a significant competitive advantage, today a broader set of people-focused skills can be more useful. “Succession to a CEO role requires a balance of
technical and people skills,” he says. “For
all C-suite roles, and often at least one level
down, there has been a gradual shift in requirements toward business acumen and
‘softer’ leadership skills. Technical skills are
merely a starting point.”
Despite the historic bias against the CHRO
function, the rising status of HR leaders is
not entirely surprising. Over the past 20 years
Jim Collins and other management theorists
have focused on talent strategy as the prime
determinant of corporate success — an idea
Collins popularised in phrases such as “Get
the right people on the bus” and “First who,
then what”.
In her work recruiting CHROs, Filler has
seen a growing recognition that those aphorisms hold true. “If you don’t have the right
people in the right places — the right talent
strategy, the right team dynamics, the right
culture — and if you don’t proactively manage how an organisation works from a culture
and a people perspective, you’re on a serious path to disaster,” she says. Conversely,
a top-notch CHRO can help a company plot
a more successful future. — hbr.org
20 FO CU S
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Judge it on its own merits
The Subaru Legacy Outback is a hard-working and capable car that will appeal to on-the-go families
BY JU ST I N HA RP ER
S
ome cars are designed to be admired, with appearance trumping performance. Other cars are
meant to be workhorses, with the
sole aim of getting you and your
brood from A to B in the easiest
way possible.
The new Subaru Legacy Outback falls
into the latter category. It’s unlikely to turn
heads but it’s a hard-working and capable
car that will appeal to on-the-go families.
One of its biggest plus points is the spacious
cabin and boot. With the rear seats folded
flat, the boot space stretches to a very impressive 1,800 litres, letting you put in pretty
much anything from a small sofa to a couple
of mountain bikes.
The main reason for so much capacity
is that Subaru designers didn’t pander to
the current fad of sloping coupé roof lines,
leaving plenty of height at the back. So, what
the Outback may lack in looks it makes up
for in practicality. If your cargo happens to
be human, then the space will be enjoyed
even more. All of the Outback’s five chairs are
adult-rated, with ample head- and legroom.
Visibility is good, not just for the driver, but
also for all passengers, thanks in part to slimmer A-pillars and small quarter windows.
The Outback is powered by a new
2.5-litre flat-four engine that produces a
more-than-adequate 175bhp, helped by
Subaru’s familiar Lineartronic CVT transmission system. The car also benefits from
an offroad X-mode, which essentially increases the active all-wheel-drive system.
While the options to go off-roading in Singapore are somewhat limited, to put it mildly
(not in Malaysia though), this hasn’t stopped
SUVs from becoming such a huge seller here.
But the Outback isn’t technically an SUV. It
Subaru Outback
S$156,600 (RM438,571) including
certificate of entitlement
Engine: 2,498cc, flat-four, 16-valve
Power/torque: 175bhp/235Nm
Fuel consumption: 7.7l/100kph
0 to 100kph: 10.2 seconds
Top speed: 198kph
evolved from Subaru’s Legacy sedan, so it
falls into the crossover SUV category. While
for some, this may be just splitting hairs, the
Outback does in fact drive more like a car,
but with some of the best attributes taken
from an SUV, such as the elevated seating
position, capacity and a roof rack.
At the end of the day, this makes for a
winning combination, as it results in a vehicle with car-like handling, the boot space
of an SUV and the added bonus of off-road
versatility. On slippery surfaces, particularly
during a heavy downpour, the X-mode may
come in handy.
Also appealing are the modern updates
and the good use of technology in the Outback, which was an initial surprise for this
Japanese mid-market brand. I was impressed
by the reversing camera, neatly built into
the 7in screen; keyless entry; and powered
driver’s seat.
Other nice touches included cruise control, reclining rear seats and a Harman Kardon audio system, along with blind-spot
detection mirrors. Car manufacturers nowadays have a habit of going overboard with
technology so that every second, some indicator will beep or a warning light will flash.
But the Outback’s designers have failed to
be bitten by this gadget bug, which makes
for a refreshing drive.
You can even shift through six simulated
One of the Outback’s biggest plus points is the spacious cabin and boot. With the rear seats folded flat, the boot
space stretches to a very impressive 1,800 litres, letting you put in pretty much anything.
gears with the steering-wheel paddles. These
are features I have grown to expect from German luxury brands such as Audi and BMW
but less so with Subaru, which is definitely
a step in the right direction. There are also
clever little storage nooks and crannies to
keep your possessions such as sunglasses
and wallet. Subaru definitely had practicality
in mind when it designed this car.
The fact that it may be hard to pigeonhole
the Outback into any one category shouldn’t
put you off buying it. Nor should the brand,
which has a history of appealing to ah bengs
with its boy-racing Impreza and WRX models.
The Outback, however, should be judged on
its own merits as a very reasonably priced
family car that stresses the Utility in SUV if
not the Sport.
While it doesn’t overwhelm in terms of
speed and power, let’s have a reality check
here. Do you really buy family transportation with these qualities in mind? Instead,
spaciousness, value for money and practicality should be top of the list. If this sounds
like you, then the Outback is worth a look,
with a price tag of just over S$150,000 and
impressive fuel consumption figures. — The
Edge Singapore
Justin Harper is a freelance journalist with
a passion for all things fast
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FO CU S 21
T HURSDAY J U N E 25 , 2015 • T HEED G E FINA NCIA L DA ILY
Five best weekend watches
PHOTOS BY BLOOMBERG
BY STEPH EN PU LVI RENT
Hey, it’s Thursday. Time to loosen up.
You wouldn’t wear a tie with your polo
shirt, so once happy hour rolls around, you
should take off that slim perpetual calendar
and put on something a little more appropriate for the farmers market (or your kid’s
soccer game). You can go full-on off-duty
with a big, brash chronograph, or you can
pump the brakes and opt for something
that’s informal but understated. Whatever
watch you choose, steel and titanium will
take the place of gold and platinum (and
you won’t have to manually wind anything).
Here are our favourite weekend warriors.
Bremont Boeing Model
247 Ti-GMT
Bremont has designed a line of
sport watches that are lightweight
and wearable thanks to special titanium alloys developed by aviation
giant Boeing. They’re also bulletproof, if crime fighting happens to
be on the weekend agenda. The
bright yellow GMT hand and blue
stitching on the strap add some
colour to the otherwise greyscale
package. Short sleeves are suggested, since the watch is on the thick
side, but a military-style spring jacket wouldn’t be out of the question.
There’s also a basic GMT model
sans chronograph (one of my favourite sport watches from Baselworld 2015), but this guy has a little
extra edge that feels appropriate
right now. US$7,495 (RM28,106).
Tissot PRS 516 Chronograph
The Tissot PRS 516 is an underappreciated icon. It often gets lost among
the Daytonas and Carreras of the
sport watch world, but the PRS 516
has been around since 1965, making
it 50 this year. The newest models
carry through all the recognizable
traits from the original, such as the
steering wheel-inspired strap and
the hour markers that are suspended
above the dial, letting the hands pass
underneath. Tissot has added some
premium touches, though, like a black
ceramic tachymeter bezel that won’t
get all scratched up and an automatic movement with 60 hours of power
reserve. This is one you can beat up
without a second thought. US$2,150
(RM8,053).
Racing chronographs
are one of Tissot’s
mainstays, and the PRS
516 is a good one.
Shinola Runwell
The Runwell is Shinola’s flagship watch, and the basic design hasn’t changed
much since the launch in 2013. But each season, Shinola brings out new dial
and strap colours, giving the line a little refresh. You can go for a bright colour like blue or red if you’re trying to match your critter pants, but this greyon-grey combo is my favourite. The straps are made in Florida from leather
tanned in Chicago for a watch made in Detroit, upping the “Made in America” ante. If you’re looking for a basic workhorse watch, the Runwell ticks a
lot of boxes. US$800 (RM3000).
Working with Boeing, Bremont has created a
robust chronograph GMT.
A gray Runwell with
matching Horween
strap.
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Tudor Pelagos Blue
Find me a better summer watch.
I dare you. The bright blue colour
is inspired by vintage Tudor Submariners that collectors are clamouring over right now and extends
from the dial to the matte ceramic bezel and even to the moulded
rubber strap. This new version of
the Pelagos (previously only available in black) also adds the same
in-house Tudor movement found
in the North Flag, a first for Tudor.
At 42mm it’s a great size for wearing
off-duty and because it’s made of
titanium, it won’t weigh you down.
The best part? It’s only US$275 more
than the previous Pelagos, which
used an ETA movement, bringing unbelievable value. US$4,400
(RM16,500).—Bloomberg
This Breitling
might be massive,
but it has all the
details of a vintage
watch.
Breitling Chronoliner
When this watch was first announced, I nearly fell out of my chair. Typically,
the divide between modern and vintage Breitling watches is vast. The former
are shiny, oversized, and scream for attention, while the latter are rugged, all
about functionality, and get the tiniest details right. This watch looks every bit
the part of yesterday’s Breitlings, but with all the manufacturer’s modern tech
inside, including an in-house chronograph movement. The mesh strap is perfect for humid days (no wrist sweat, please) and everything from the red tip on
the seconds hand to the little luminous markers in that top subdial make you
lean in for a closer look. The Chronoliner is one of the best Breitlings in years.
US$7,575 (RM28,406).
The Tudor Pelagos goes blue ... and gets an inhouse movement.
22 W O R L D B U S I N E S S
Planned Greek tax hikes
risk further damage
Economists question impact on the already-stalled economy
BY OD I L E D U PERRY
& ROLAND JACKSON
ATHENS: Greece encouraged global
markets with its new debt plan, but
some economists question whether its emphasis on tax hikes will do
more harm than good to the recession-mired economy.
Athens kicked off this week
with long-awaited concessions
aimed at resolving the debt row
with its European and International Monetary Fund (IMF)
creditors, addressing key points
Google
competing with
itself on new
music service
BY JOSHUA BRUSTEIN
NEW YORK: Many people in the
music industry have been waiting
with bated breath to hear something about YouTube’s plans for a
paid music subscription service,
and when news circulated that
the company was planning an
announcement for Tuesday, it
seemed like they’d get it. Nope.
Google announced it would
begin offering a free Pandora-like
digital music service as part of
Google Play. The move left many
at the New Music Seminar in
New York suggesting Google had
ramped up its competition with
itself — Google Play vs YouTube
— even as its main rival, Apple, is
about to make a major push into
streaming music for the first time.
Google launched subscription service Google Play Music two years ago. For US$10
(RM37.50) a month, users can
access a library of 30 million
songs, as well as songs they
have downloaded, from any
device. — Bloomberg
that have plagued five fractious
months of bailout talks.
The Greek government, which
was elected on an anti-austerity
platform in January, delivered proposals to raise some value-added
tax rates and hike business taxes,
increase employee and employer
pension contributions, and narrow
the country’s budgetary gap.
But however relieved, those
proposals left stock markets and
European leaders that an elusive
debt deal may finally be attainable,
experts remain unconvinced about
the plan’s effectiveness.
“The Greek proposal is way too
heavy on one-off tax measures ...
on the wrong taxes in general (businesses) and not enough on real
reforms,” said Unicredit economist
Erik Nielsen.
The revamped plan is aimed
at unblocking bailout funds, with
Greece facing a June 30 deadline
to repay the IMF about €1.5 billion
(RM6.3 billion).
The EU and IMF want Greece
to achieve a primary surplus target this year of 1% of annual gross
domestic product (GDP), followed
by 2% in 2016 and 3% in 2017.
In order to achieve this, creditors
demanded cutbacks representing
1.5% of GDP this year and 2.5%
next year.
After months of wrangling, Athens relented on Monday and presented measures exceeding those
demands with cuts equal to 1.51%
and 2.87% of GDP respectively.
Greek Prime Minister Alexis
Tsipras said Athens had offered
proposals that “exceeded” demands
to balance the budget. — AFP
Supermarket operators Ahold,
Delhaize agree on merger deal
AMSTERDAM: Netherlands-based
supermarkets operator Ahold has
reached a deal to buy Belgian
peer Delhaize, the companies announced yesterday, in a move that
will create a top 20 global retailer
with strong positions in Europe
and the United States.
In a joint statement, the two
companies said Ahold would have
a 61% stake in the new company, which will have €54.1 billion
(RM227.4 billion) in sales, more
than 6,500 stores worldwide and
complementary operations in the
US and Benelux. Ahold is the operator of Stop&Shop and Giant in
the US, while Delhaize owns the
Food Lion chain.
Ahold said it would pay 4.75
shares for every Delhaize share,
valuing the offer at about €90 for
every Delhaize share.
The merged entity, which will be
headed by Ahold chief executive
Dick Boer, would gain €500 million
in synergies annually from combining operations, to be reached
by the third year after the merger,
the companies said.
The announcement caps years of
LONDON: The Greek crisis is compromising currency traders’ reputation for being the first and fastest to react to big economic or political news.
The prices of southern eurozone government bonds and of European equities have fallen since European politicians began to talk openly about the
possibility that Greece might default
or even leave the euro.
What is going on? Forex traders
can defend themselves by saying
that currency options point to un-
derlying pessimism about the single currency’s prospects. But that
fails to explain why the gloom is
not showing up in the spot market.
One problem is that exchange
rates are always two-sided. So, the
euro/dollar also reflects what Federal
Reserve Chair Janet Yellen is going
to do, and when. Bond yield spreads
and stock prices can be a purer expression of investors’ concern about
the threat to a monetary union which
was supposed to be irreversible.
Also, hedging flows are sometimes making the euro move in
Global insurance
rebounds in 2014
GENEVA: The global insurance
industry gained momentum last
year, as economies improved and
the long-suffering life insurance
sector returned to growth in Europe and Japan, a study showed
yesterday. Insurance premiums rose 3.7% to US$4.8 trillion
(RM18 trillion), a sharp rise over
the 1.4% growth recorded in 2013,
according to the Sigma study,
conducted for the Swiss Re insurance group. Developed countries
saw growth of 2.9% while insurance premiums shot up 7.4%
in emerging countries. “There
was a return to positive growth
in the life sector, with premiums
up 4.3% to US$2.7 trillion after a
1.8% decline in 2013,” the Swiss
insurer said. — AFP
Business confidence
hits 4-month low
FRANKFURT: German business confidence fell to its lowest
level in four months in June as
the outlook for Europe’s biggest
economy clouds over, the Ifo
economic institute said yesterday. The Ifo institute’s closely
watched business climate index
fell to 107.4 points in June from
108.5 points in May, the think
tank said in a statement. That
is the lowest level since February. It was the second month in
a row that the index has fallen
and analysts had been expecting
a much shallower decline. “The
outlook for the German economy is overcast,” said Ifo president Hans-Werner Sinn. — AFP
Saudi, Kuwait in talks to
resolve oil row
A filepic of Belgian supermarket Delhaize in Lessines, Belgium. Ahold says it will
pay 4.75 shares for every Delhaize share, valuing the offer at about €90 for every
Delhaize share. Photo by Reuters
speculation about a tie-up between
the two regional giants. Previous
talks have failed, but analysts say the
companies’ combined buying power
could help strengthen their position
against booming discount retailers.
“Our companies share common
values, proud histories rooted in
family entrepreneurship, and busi-
nesses that complement each other
well,” Boer said.
In a note published before the
deal had been finalised, Rabobank
analysts said the increased size
would help the firms differentiate
themselves in the US and build out
their online shopping propositions.
— Reuters
counter-intuitive ways. Many foreign investors who bought eurozone stocks and bonds earlier this
year hedged their exposure to the
single currency, which they anticipated would fall. When asset managers scale back their investments,
or the price of these assets falls,
some of these hedges are unwound
– by buying euros. That pushes up
the exchange rate.
Finally, uncertainty is keeping traders from placing big bets
against the euro. Even if they don’t
and Greece leaves the eurozone,
KUWAIT CITY: Saudi Arabia
and Kuwait have begun talks
to resolve a dispute that halted
oil production in the neutral
zone between the Gulf neighbours, the Kuwaiti oil minister said. “A joint committee
formed by the two countries ...
has recently held its first meeting in Riyadh,” the KUNA news
agency quoted Ali al-Omair as
saying late Tuesday. The dispute has seen the closure of
the Khafji and Wafra oilfields
in the neutral zone, which have
been pumping for more than
half a century. The two fields
together produced more than
500,000 barrels per day which
was equally shared between
the two countries. — AFP
Minister: Oil prices
expected to rise further
Euro is poor yardstick for euro existential stress
BY SWA HA PATTANAIK
IN BRIEF
remaining members could pool
more sovereignty, strengthening the
foundations of the single currency.
In the fog of ignorance, speculative
players are sitting still. This leaves
the euro at liberty to benefit from
the buoyant effects of the region’s
current account surplus.
The euro’s resilience could
crumble if Greece steps too much
closer to the brink. But even then,
the bond and stock markets are
likely to be a better guide to how
investors view the single currency
project. — Reuters
KUWAIT CITY: Oil prices are
expected to extend a rebound
thanks to improved global
growth, a drop in stockpiles
and fewer drilling rigs, Kuwaiti
Oil Minister Ali al-Omair said.
“We have reached a stage where
a drop in oil prices is unlikely,”
he said, cited by the official
KUNA news agency on Tuesday
night. The Organization of Petroleum Exporting Countries,
which earlier this month left
its output target unchanged,
has seen a decline in excess
crude supply in the international market which will push
prices up, Omair said. — AFP
W O R L D B U S I N E S S 23
Wanda to buy more sports firms — Xinhua
SHANGHAI: Chinese property and
entertainment giant Wanda Group,
which formally took a 20% stake in
Spanish football club Atletico Madrid in April, will buy at least three
more sports companies this year,
its chairman said.
“Within this year, Wanda will
still buy at least three sports companies,” Xinhua quoted chairman
Wang Jianlin as saying. “Upon the
completion of these mergers and
acquisitions, Wanda is going to
be the world’s number one in the
Regulators
to allow direct
bond issues
in Taiwan —
sources
sports industry.”
As well as the €45 million
(RM189.39 million) Atletico shares,
Wanda this year paid €1.05 billion
for Swiss sports marketing group
Infront, which is headed by the
nephew of outgoing Fifa president
Sepp Blatter and holds some broadcasting rights to the World Cup.
Wanda is looking to increase
its influence in the global sports
business, as Beijing bids for the
2022 Winter Olympics and rumours
swirl that China could seek to host
the 2026 World Cup.
Wang’s phrasing suggests that
the “at least three” deals do not
include the Atletico and Infront
acquisitions.
The billionaire, a diehard football fan, did not reveal specific targets, but said they should have activities in China, and worldwide
sports marketing or ownership
rights, the report on late Tuesday
said.
Wa n g a l s o c l a i m e d t h a t
“there will soon be good news
announced about Chinese football”, without giving any details,
Xinhua added.
Wanda could not be reached immediately for comment. Bloomberg
News ranks Wang as China’s richest
man and the ninth-wealthiest in the
world, with a net worth of US$42.1
billion (RM157.88 billion).
His Beijing-based conglomerate, which has interests in hotels,
entertainment and retail, last year
saw a 30% jump in revenue to 242.5
billion yuan. — AFP
China to invest in
193 aviation projects
BY ROGER T U NG & EM ILY CHAN
TAIPEI: Chinese regulators
will allow mainland financial
institutions to directly issue
bonds in Taiwan, two people
with direct knowledge of the
matter told Reuters, in another step to deepen the pool of
offshore yuan in Taiwan and
reinforce financial relationships between Beijing and
Taipei.
Under previous regulations, only foreign branches
of mainland financial institutions were allowed to issue
yuan-denominated bonds,
which acted as a limit on the
size of issuance.
Now, yuan bonds can be
issued and backed directly
by mainland banks, some of
the world’s largest financial
institutions by market capitalisation.
China Development Bank
(CDB) plans to issue yuan
bonds in Taiwan by the end
of the year, according to four
people.
Taipei Exchange chairman
Wu Soushan told Reuters in
an interview that Taiwan’s
Chinese yuan bond market
will likely reach 35 billion
yuan (RM21.16 billion) in
2015, above the 30 billion
yuan forecast earlier, on expectations of further easing
of rules governing mainland
firms issuing debts overseas.
Mainland bond markets
are currently struggling to
digest a massive two trillion
yuan debt swap intended to
ease the funding burdens
borne by local governments,
which has complicated attempts to reduce borrowing
costs across the board.
An official at Taiwan’s Financial Supervisory Commission said he was not aware of
the move.
Officials at China’s central
bank and National Development and Reform Commission declined to immediately
comment. Officials at CDB
could not be reached for comment. — Reuters
Part of wider effort to increase overall infrastructure spending
BEIJING/SHANGHAI: China will
invest 500 billion yuan (RM302.34
billion) in 193 major domestic aviation projects this year, the country’s aviation regulator said, to meet
growing demand from travellers
and to bolster growth as the world’s
second-largest economy slows.
The plan was outlined in prepared remarks and delivered late
yesterday by Li Jiaxiang, head of
the Civil Aviation Administration
of China, at an aviation forum in
Beijing. The remarks did not specify
details about the projects.
The announcement comes amid
a wider effort by Beijing to increase
overall infrastructure spending after
economic growth slowed to a sixyear low in the first quarter. The
country’s state planner has so far
in the first six months approved
billions of US dollars of railway
and airport projects.
China’s aviation sector has
grown rapidly in recent years, driven by demand from the country’s
increasingly wealthy middle class.
Outbound passenger volumes rose
39% year-on-year for the January
to May period, Li said.
He added that Chinese airlines
now fly 553 routes to 127 cities in
51 nations, and plan to add 83 more
routes over the summer and autumn periods.
Government planners estimate
China’s airports will increase to 240
by 2020, from around 200 today.
Of the 500 billion yuan investment, 200 billion yuan will be spent
on 51 projects in Chinese cities,
such as Urumqi and Kunming,
which are along routes marked
out in China’s One Belt, One Road
initiative, Li said.
Chinese President Xi Jinping
launched in 2013 an initiative to
increase trade and extend China’s
influence with Central, West and
South Asia, as well as Europe and
Africa, through a series of projects
ranging from oil and gas pipelines
to railways. — Reuters
Yuan-denominated gold fix ‘anytime now’
BY A ANANTHA LAK S HM I
SHANGHAI: China is expected to receive approval from its central bank
for a yuan-denominated gold fix “anytime now”, with more details about
the scheme potentially set to emerge
at a major industry conference this
week, sources told Reuters.
The world’s top gold producer
and one of the biggest consumers
wants to be a price setter for bullion,
and is asserting itself at a time when
the global US dollar-denominated
benchmark, the century-old London fix, is under scrutiny for alleged
price manipulation.
If the yuan fix takes off, China
could compel mainland buyers and
foreign suppliers to pay the local price,
making the London fix less relevant
in the world’s biggest bullion market.
However, given that the yuan is not
fully convertible, the two fixes could
exist side by side globally.
The Shanghai Gold Exchange
(SGE), on whose international platform the yuan-denominated fix will
be launched, submitted details of
the fixing process, and rules and
regulations for participants, to the
People’s Bank of China (PBoC) a
IN BRIEF
Alibaba film unit ties up
with Paramount for next
Mission: Impossible
SHANGHAI: Alibaba Pictures
Group Ltd is making its first
Hollywood movie investment
and partnering with Paramount
Pictures to promote the studio’s
latest Mission: Impossible instalment in China. The film unit of
Alibaba Group Holding Ltd will
collaborate with Viacom Inc
subsidiary Paramount in online
ticketing, promotion and merchandising for Mission: Impossible — Rogue Nation in China,
it said in a statement yesterday.
It did not say how much the tieup will cost. The movie, starring
Tom Cruise, is due in theatres on
July 31, according to Paramount’s
website. Alibaba Pictures, previously known as ChinaVision
Media Group, raised nearly five
billion yuan (RM3.02 billion) in
2014 from a share offer that put
Alibaba in control of the company. — Reuters
Businessman sought in
China graft probe seeks
Canada refugee status
WINNIPEG (Manitoba): A businessman on China’s most-wanted list of people accused of corruption argued in a Canadian
court on Tuesday that he deserves refugee protection. Cheng
Muyang, known in Vancouver
as developer Michael Ching,
asked a judge to review a November ruling by the Canadian
refugee board that denied him
protection. In April, China’s Interpol office released the names
of 100 people wanted in its Sky
Net anti-graft campaign. The list
included Cheng, son of a once
high-ranking Chinese official
removed from office for graft in
2003. Cheng’s lawyer, David Matas, said the allegations centred
on a 10 million yuan (RM6.05
million) sale of a Beijing property. — Reuters
Noble shares rise on
buy-back and Chinese
shareholder’s support
SINGAPORE: Shares in Noble
Group rose after the company
bought more stock and its second-largest shareholder, China’s
sovereign wealth fund, voiced
support for the company for the
first time in the wake of criticism
of its accounting practices. “As
a major shareholder of Noble
Group, we will continue to support its business,” Xie Ping, executive vice-president of China
Investment Corp, said in a Noble
statement yesterday. — Bloomberg
A shop assistant arranging gold accessories at a gold store in Lin’an, Zhejiang
province. China, the world’s top gold producer and one of the biggest consumers,
wants to be a price setter for bullion. Photo by Reuters
few weeks ago, sources familiar
with the matter said.
“They may approve it anytime
now,” said one of the sources directly
involved in the process, who declined
to be named because of rules of talking to media. The SGE and PBoC did
not reply to requests for comment.
The source, however, said more
details will be announced at the
LBMA Bullion Market Forum in
Shanghai today, if the PBoC approval
comes through before the conference.
Once the SGE gets the PBoC approval, it will work to sign up Chinese and foreign banks for the fix,
with an aim to launch it later this
year. Around 15 Chinese banks are
expected to participate initially, the
source said. — Reuters
ST Telemedia to take
49% stake in UK data
centre provider
SINGAPORE: Singapore Technologies Telemedia has acquired
a major stake in British data centre provider Virtus for an undisclosed amount, as the investment
firm looks to expand its global
footprint, The Straits Times reported. ST Telemedia, through
its wholly-owned subsidiary STT
GDC Pte Ltd, will enter a joint
venture with the UK firm’s current owner Brockton Capital for a
49% stake in Virtus Data Centres..
24 W O R L D B U S I N E S S
Australia to join AIIB
Viewed as a rival to the World Bank and ADB, which are under strong US influence
SYDNEY: Australia said yesterday it
will join the new Beijing-led Asian Infrastructure Investment Bank (AIIB)
as a founding member, contributing
A$930 million (RM2.7 billion) in paidin capital over five years. Australia is
the latest ally of the United States to
sign up to the bank, which has been
shunned by Washington and Tokyo,
the world’s largest and third largest
economies respectively.
The AIIB has 57 prospective
members, and will have a paid-in
capital of US$20 billion (RM75 billion) and total authorised capital
of US$100 billion, Foreign Minister Julie Bishop and Treasurer Joe
Hockey said in a joint statement.
“The decision comes after extensive discussions between the government, China and other key partners
around the world,” the ministers said.
“There is an estimated infrastructure
financing gap of around US$8 trillion
in the Asian region over the current
decade. The AIIB will be part of the
solution to closing this gap.”
Hockey will seal the agreement
in Beijing next Monday.
The bank, expected to be oper-
SoftBank’s solar ambitions fly
close to the Son
BY U NA GA L A NI
HONG KONG: Masayoshi Son is flying close to the sun with his solar power ambitions. The SoftBank chairman has pledged to invest US$20 billion
(RM75 billion) in developing solar energy plants in India in the coming
years through a majority-owned joint venture with India’s Bharti Enterprises and Taiwan’s Foxconn. India’s need for energy investment is clear but
the synergies with the Japanese group’s existing businesses look dubious.
The US$72 billion company is best known for its Japanese telecom
operations, controlling stake in United States mobile carrier Sprint, and
32% stake in Chinese e-commerce giant Alibaba. Less well known is its
expansion into renewable energy following Japan’s earthquake in 2011.
It now has 19 power plants in the country with a total output scale of
139MW, and plans to expand capacity to 453mw in the coming years.
That is still a tiny fraction of the 20gw that Son has pledged to
generate from solar in India — equivalent to one-fifth of the government’s total target by 2022. As the joint venture’s controlling shareholder, that puts SoftBank on the hook to raise project financing of
at least US$10 billion over the coming years.
SoftBank must first win government contracts to develop solar
plants, so its actual outlay may be much lower. Yet it still leaves investors with the problem of making sense of what SoftBank can bring to
renewable energy. The company’s board questioned Son’s move into
the business back in 2011, prompting the chairman to promise that
total expenses would be no more than 1% of SoftBank’s total assets,
which stood at ¥16.7 trillion at the end of March 2014. It’s hard to
see how the Indian foray can be reconciled with that spending cap.
Son may see potential for selling electricity to Indian mobile phone
users, where Bharti is the leading player. But SoftBank has yet to clearly
demonstrate the link works in Japan, where its renewable investments are
at a much more advanced stage. Shareholders can only hope the board
clips the chairman’s wings before he flies even closer to the sun. — Reuters
ational later this year and based
in the Chinese capital, has been
viewed by some as a rival to the
World Bank and the Asian Development Bank (ADB), two institutions
under strong US influence. Its success has caught the US off guard,
after it led a high-profile attempt to
dissuade allies from taking part, and
now finds itself increasingly isolated.
There have been concerns over
transparency of the lender, which
will fund infrastructure in Asia, as
well as worries that Beijing will use
it to push its own geopolitical and
economic interests as a rising power.
But Hockey said following “intense negotiations” with China and
other prospective founding members, Australia was satisfied with
how the bank would be governed.
The Australian government expects
the bank, through its support of
Asian infrastructure projects, to
help boost the nation’s exports —
including minerals, agriculture and
services — to the region.
Australia and China signed a
landmark trade deal last Wednesday after a decade of talks. — AFP
India’s Adani rejigs
Australia coal
mine budget
BY JAMES REGAN
SYDNEY: India’s Adani Mining said
yesterday it is rejigging the budget
on the A$10 billion (RM37.5 billion)
Carmichael coal mine project in
Australia as it faces delays in government approvals.
Adani intends to ship most of
the coal from the mine to India
for use in generating household
power in line with Prime Minister
Narendra Modi’s goal to connect
all of India to the electricity grid
during his tenure.
In announcing the setback,
Adani also confirmed a media report it had asked independent contracting firms employed on the project to halt work around the mine.
A report in the Guardian Australia said it had asked its four engineering contractors to stop operating, raising speculation that the
Indian company might scrap the
project altogether.
“This is only temporary,” an
Adani spokesman, Kate Haddan
said, adding a target to commence
coal mining in 2017 stands for now.
Adani said in a statement the
project’s current budget based
on previous anticipated approval timelines and milestones is no
longer achievable due to delays in
receiving various approvals from
the Queensland state government.
“As a result of changes to a range
of approvals over that time, it’s necessary to synchronise our budget,
project timelines and spending to
meet those changes,” it said.
Adani has signed up buyers for
about 70% of the 40 million tonnes
of coal the Carmichael project is
due to produce in its first phase.
Adani’s project mainly hinges on
environmental approval to deepen a port on the fringe of Australia’
Great Barrier Reef in order to ship
the coal, a proposal generating opposition worldwide. — Reuters
House doesn’t always win as Philippine casino bet on China sours
BY I A N C SAYSON
MANILA: In February 2014, Melco
Crown Entertainment Ltd co-Chairman James Packer described the construction of the City of Dreams casino
in Manila as a “bet on China”. Sixteen
months on, the gamble hasn’t paid
off. With a government crackdown on
corruption in China scaring customers away from Macau, where gaming
revenue has fallen year-on-year for
four straight quarters, the opportunity
appeared to be there for other Asian
gambling hubs to cash in.
Instead, the anticipated flood of
high rollers from China to Manila’s
three casino resorts has so far failed
to materialise. The market value of operators like Melco Crown Philippines
Resorts Corp and Bloomberry Resorts
Corp has been shredded as investors
Packer (right)
gestures as Melco
Crown Entertainment
co-chairman and
chief executive officer
Lawrence Ho looks
on during a news
conference and grand
opening of the City
of Dreams in Manila
in February this year.
Photo by Reuters
fled, making Philippine casino stocks
among the world’s worst performers this year. Profits will tumble 56%
across the industry in 2016, JPMorgan Chase & Co forecasted this week.
Casino shares have crashed even
as the benchmark Philippine Stock
Exchange Index has climbed 4.4% this
year, peaking at a record high in April .
Shares of Bloomberry, which
operates Solaire, have lost 27% this
year, and Resorts World Manila
operator Travellers International
Hotel Group Inc has slumped 35%.
Melco Crown Philippines tumbled
56% as earnings disappointed inves-
tors, outpacing even the 36% loss at
Wynn Macau Ltd, the Chinese territory’s worst-performing casino stock.
Arrivals to the Philippines from
China, the country’s fourth-biggest
tourist market, fell by about 33%
to 93,043 in the first quarter as the
Chinese government stepped up its
anti-corruption drive and a simmering
territorial dispute deterred travellers.
Some investors are overestimating the impact of the China market,
and the slump in Philippine gaming stocks is excessive, according to
Marc Reyes-Lao, an analyst at BPI
Securities Corp in Manila.
“The dismal stock performance is
... partially because of negative sentiment towards the industry brought
about by China’s campaign against
corruption. Investors have overreacted,” he said. — Bloomberg
IN BRIEF
Possible tax amnesty for
financial crimes
JAKARTA: Indonesia’s tax office
is considering a tax amnesty for
financial crimes, in a move that
could bring at least 100 trillion
rupiah (RM28 billion) into state
coffers, the director-general of
taxes said yesterday. Southeast
Asia’s biggest economy is grappling with its weakest growth
in six years and a huge budget
deficit, while its tax collection
rate is one of the lowest in the
region as a proportion of gross
domestic product. Under the tax
office’s proposal, the perpetrators of financial crimes including
corruption and money laundering can pay a 10% to 15% tax on
the assets they bring back to Indonesia, in return for a pardon
from criminal prosecution, Sigit
Priadi Pramudito said. — Reuters
Thailand asks rice
farmers to delay planting
BANGKOK: Thailand has asked
rice farmers to further delay
planting their main crop until August from an earlier July
date as the country battles a
severe drought, the farm minister said yesterday. Any drop in
output at one of the world’s top
rice exporters could underpin
benchmark Thai prices of the
grain, that are near their lowest
since Jan 2008 amid a massive
overhang of stocks built-up under the previous government’s
buying programme.This is the
second such request from the
Thai government in less than
two weeks. On June 15, the Agriculture Ministry asked farmers
to push back planting by about
two months from the usual May
planting period. — Reuters
Seoul pension fund to vote
against SK Group merger
SEOUL: South Korea’s National
Pension Service (NPS) will vote
against a proposed US$7.4 billion (RM27.75 billion) merger
of two units of conglomerate
SK Group, a decision some analysts said could signal its willingness to oppose a pending US$8
billion deal between two Samsung Group firms. The country’s
Health Ministry, which manages
the nearly US$450 billion pension fund, said yesterday the
NPS will oppose the 8.2 trillion
won (RM27 billion) tie-up between SK C&C Co Ltd and its
affiliate SK Holdings Co Ltd because it could hurt SK Holdings’
shareholder value. — Reuters
Indonesia reduces
minimum down payments
JAKARTA: Indonesia’s central
bank, hoping to spur economic
growth, has reduced the minimum down payments consumers have to pay for cars and
motorcycles while increasing
the percentage of a home price
that a buyer can borrow. A new
regulation loosening rules for
automotive and mortgage lending took effect on June 18, it
said yesterday. Bank Indonesia
now requires customers to pay
a minimum down payment of
20% for motorbikes, down from
25% previously. — Reuters
W O R L D 25
Brazil auditors may reject government’s accounts for the first time
BY A NN A EDGERTON
BRASILIA: The majority of Brazil’s
audit agency currently favours a
recommendation to reject President Dilma Rousseff ’s fiscal accounts, according to a person with
direct knowledge of the matter.
The agency, known as the TCU,
last week decided to give Rousseff
until July 23 to explain budget practices that it says violate the fiscal-responsibility law. A TCU member
will then offer a new recommendation, which the agency’s nine
‘12-year-old girl’
kills 10 in NE
Nigeria suicide
attack
KANO (Nigeria): A girl thought
to be aged just 12 detonated explosives she was carrying at a
market in northeast Nigeria on
Tuesday, killing 10 people and
injuring dozens, a relative of one
of the injured told AFP.
The blast bore all the hallmarks of Boko Haram Islamists,
who have used young women
and girls in the past as human
bombs and regularly attacked
“soft” civilian targets such as
markets.
The explosion happened at
around 11am (1000 GMT) at the
weekly market in Wagir, in the
Gujba district south of the Yobe
state capital Damaturu.
“It was a suicide attack by
a girl of around 12 years,” said
Hussaini Aisami, whose relative
was among at least 30 people
injured.
“She went into the market
and headed straight to the grain
section. She detonated her explosives in the middle of traders
and customers.
“Ten people died from the
explosion. We brought 30 people to the hospital.”
On Monday, a girl thought to
be aged about 17 killed at least
20 at a bus station near a fish
market in the state capital of
Borno, Maiduguri.
Security analysts have suggested that younger girls may
have their explosives detonated
remotely by a third party. — AFP
members will approve or amend
before sending to Congress.
The agency has never before
recommended lawmakers reject
government finances. While there’s
public pressure to hold the president accountable, over the next
month the government may try
to sway members of the TCU in
Rousseff ’s favour given the implications of rejecting fiscal accounts,
said the person, who asked not to
be named when speaking about
future votes.
The government’s 2014 accounts
“aren’t in any condition to be approved by this court, owing to irregularities,” according to last week’s
TCU agreement that gave her 30
days to offer an explanation. It was
the first time the agency had held a
president personally responsible.
The alleged violations of the fiscal-responsibility law occurred last
year when the government said it
would meet its budget goal without cutting the costs that would
have made that possible. The TCU
is also investigating payment delays to public banks for social pro-
grammes, seeking answers from
current and former government
officials.
If Congress accepts a recommendation to reject government
accounts, it would deal a fresh political blow to a president already
suffering from falling approval ratings amid an economic downturn
and a corruption scandal at the
state-run oil company Petrobras.
The report could even rekindle
calls among opposition lawmakers
to start impeachment proceedings.
— Bloomberg
France summons
US ambassador
Says spying actions ‘unacceptable’ — diplomatic source
PARIS: French Foreign Minister
Laurent Fabius has summoned the
US ambassador over leaked documents that suggest her government spied on President Francois
Hollande and two predecessors, a
diplomatic source said yesterday.
The source told AFP that US
Ambassador Jane Hartley had been
summoned for a meeting yesterday afternoon to discuss the documents published by Wikileaks
on Tuesday.
The French presidency said
yesterday it “will not tolerate any
acts that threaten its security” after
leaked documents indicated the US
spied on President Francois Hollande and his two predecessors.
“Commitments were made by
the US authorities,” the Elysee Palace said in a statement, referring to
promises by the US in late 2013 not
to spy on France’s leaders.
“They must be remembered and
strictly respected.”
The statement followed a meeting of the defence council, which
includes top cabinet ministers and
heads of the intelligence services,
called by Hollande after news of the
claims from Wikileaks emerged on
late Tuesday.
The president’s office described
the actions of the US National Se-
Leaked
documents
suggest that the
US government
spied on
Hollande and two
predecessors, a
diplomatic source
said yesterday.
Photo by Reuters
curity Agency as “unacceptable”.
The issue was again discussed
when Hollande visited the White
House in February 2014, the statement added.
“France, which has once again
reinforced its control and protection measures, will not tolerate
any act that threatens its security
and the protection of its interests.”
Meanwhie, the White House
insisted on Tuesday it is not targeting French President Francois
Hollande’s communications and
will not do so.
“We are not targeting and will
not target the communications of
President Hollande,” said National
Security Council spokesman Ned
Price, without addressing what surveillance might have been done in
the past.
“We do not conduct any foreign
intelligence surveillance activities
unless there is a specific and validated national security purpose.
This applies to ordinary citizens
and world leaders alike,” he said.
“We work closely with France on
all matters of international concern,
and the French are indispensable
partners.” — AFP
Britain steps up border after Calais case
LONDON: Britain will increase
screening of arrivals at Dover and
create a task force to tackle people
smugglers, officials said yesterday,
as growing numbers of migrants
step up efforts to cross the Channel.
The announcement came a day
after severe transport disruption
caused by striking French ferry
workers and migrants in Calais
boarding trucks and attempting
to enter the Channel Tunnel to
reach Britain.
“It is hugely regrettable that we’ve
seen these incidents occurring as a
result of industrial action in France,”
British immigration minister James
Brokenshire told the BBC.
“We are putting additional resourcing into the port of Dover to
enhance screenings and detections
there so that we’re looking at this on
both sides of the Channel,” he said.
There are currently around 3,000
migrants camped out in Calais —
a presence that is causing friction
between Britain and France.
Britain will also create a task
force of 90 people including investigators, border officers and prosecutors to try to disrupt gangs trafficking people hoping to reach Europe.
Members of the task force will
be sent to Sicily where many of the
migrants first arrive in Europe on
boats from Libya, to Europol headquarters in The Hague and to north
Africa itself.
“We have got to do more to break
the link between getting on a boat
in the Med and getting settlement
in Europe,” a spokesman for Brit-
ish Prime Minister David Cameron said.
“Otherwise these vast numbers
will just keep on coming. That’s
why the government is setting up
a dedicated law enforcement team
to tackle organised immigration
crime,” the spokesman said.
Britain has deployed a warship
in the Mediterranean to help rescue
migrants and its communications
spying agency GCHQ is gathering information about trafficking
gangs. — AFP
IN BRIEF
Winnipeg police accidentally broadcast sex talk
OTTAWA: The crew of a Winnipeg police helicopter was redfaced Tuesday after accidentally broadcasting their sexually
explicit conversation during a
routine patrol over the Canadian city to shocked and amused
citizens below. According to
a police statement, at around
9.30pm (0200 GMT) on Monday the officers had “inadvertently activated the aircraft’s
public address system.” “As a
result, the flight crew’s conversation was publicly broadcast,” it said. Residents of the
western plains city immediately went on Twitter to poke fun
at the officers, prompting the
event to trend on social media
in the region. “Does the #Winnipeg chopper realise the entire
West End can hear their convo
about blow jobs right now,”
posted Natanielle Felicitas, who
was reportedly enjoying a nice
evening in her backyard when
she overheard the voices from
the sky. — AFP
Kuwait Shi’ite MP resigns
over sectarian insult
KUWAIT CITY: A lawmaker from
Kuwait’s Shi’ite Muslim minority
resigned yesterday after a Sunni
MP insulted him during a heated
exchange in parliament. “I was
deeply hurt... by the contempt
and insult against my religious
sect by my colleague, Hamdan
al-Azemi,” Faisal al-Duwaisan
wrote in his resignation letter.
During a debate on Tuesday,
Azemi “told me: ‘you should
rectify your sect,’” Duwaisan
said. That triggered a confrontation between Azemi and several Shi’ite MPs. At the end of
the session, Shi’ite MP Abdullah
al-Tameemi and Azemi briefly quarrelled before they were
restrained by other lawmakers.
— AFP
French and Saudis meet over
billion euros project
PARIS: Top French and Saudi leaders were set to gather
Wednesday in Paris to discuss
billions of euros in projects as
the two nations work to tighten economic and diplomatic
bonds. French President Francois Hollande was to host Saudi
Arabia’s Defence Minister Prince
Mohamed Salman after the inaugural meeting of a Franco-Saudi
committee to talk about proposed projects in sectors like
aeronautics and nuclear power. — AFP
Spanish police arrest vet
for smuggling heroin
MADRID: Spanish police said
on Tuesday they have arrested a
Venezuelan vet wanted by the US
for allegedly surgically implanting bags of liquid heroin inside
puppies to smuggle the drugs
into America. Police arrested
Andres Lopez Elorza on Saturday in Santa Comba in Spain’s
northwestern region of Galicia,
where he had been hiding since
a Spanish court approved his extradition to the US, police said in
a statement. — AFP
26 WORLD
Myanmar trio charged
with S’pore murder plot
Offence punishable by up to 14 years’ jail plus a fine
SINGAPORE: Three Myanmar men
were charged yesterday with conspiring to murder a fellow national
in Singapore with a gruesome collection of instruments including a
chainsaw, a meat mincer, a cleaver
and a chopping board.
Myanmar nationals Yae Wynnt
Oaung, 32, Phyo Min Naing, 31, as
well as Singapore permanent resident
Zaw Min Hlaing, 37, were charged in
a district court with plotting to murder another Singapore permanent
resident, Aye Maung Maung Thet, 28.
A fourth suspect, 29-year-old
Myanmar national Win Kyaw Kyaw
Japan and
Philippines
make second
flight near
disputed waters
PUERTO PRINCESA (Philippines): Japan and the Philippines flew patrol planes near
disputed South China Sea
waters for a second straight
day yesterday, despite Chinese criticism of this week’s
air and sea exercises.
A Japanese P-3C Orion and
a Philippine navy Islander conducted a search and rescue
drill 50 nautical miles (93km)
north-west of the Philippine island of Palawan, officials said.
The flight was in the general
direction of the resource-rich
Reed Bank claimed by both the
Philippines and China, but officials refused to say if the planes
flew directly over the area.
The Philippines is also holding separate exercises with
long-time ally the United
States off Palawan this week,
as it seeks to bolster alliances in the face of its territorial
disputes with China.
China’s claim over almost
the entire South China Sea
overlaps with those of the Philippines, Vietnam, Brunei, Malaysia and Taiwan.
It has intensified construction of artificial islands on
reefs to reinforce its claim,
sparking protests from the US
and Japan as well as regional
powers.
China has a separate dispute with Japan over an island
chain in the East China Sea.
Following a similar flight on
Tuesday by Philippine and Japanese aircraft, Chinese foreign
ministry spokesman Lu Kang
cautioned countries involved
in the naval drills against playing them up. — AFP
Aung, left Singapore on Monday
morning, police said.
The offence is punishable by up
to 14 years in jail plus a fine.
The four men attempted to abduct Aye Maung Maung Thet at
a suburban carpark on Sunday
evening, with two of them assaulting him with a taser, an electrical
device designed to stun and disable
a person, court documents said.
The men fled when the victim’s
cries for help attracted the attention
of passers-by.
They were arrested the following
day, two of them at a rented seaside
chalet in Singapore’s eastern region.
“Items such as a meat mincer,
chainsaw, kitchen knives, gas cooker, gas cylinder tank, a tool set, trolley bags, plastic sheets, cable ties,
cleaver, aprons, chopping board
and rubber boots were also recovered from the chalet and seized as
case exhibits,” the police said.
In court yesterday, the three
men, dressed in civilian attire and
handcuffed, appeared sombre as
the charges were read to them in
Burmese, the Myanmar national
language, by an interpreter.
No pleas were entered. They
were ordered remanded in police
custody for one week to assist in
investigations.
The case follows a spate of murder cases in neighbouring Malaysia last year involving Myanmar
nationals, mostly in the northern
state of Penang. In some cases,
victims were decapitated or had
some of their body parts severed.
Malaysian police said they believed the attacks were related to violent clashes in Myanmar between
members of the Buddhist majority
and its population of Rohingya, a
Muslim minority. — AFP
S Korean hospitals suspend
services as Mers outbreak spreads
SEOUL: Two major hospitals in
South Korea’s capital suspended
services to patients yesterday in a
bid to stop the spread of Mers after
four new cases of the deadly virus
were reported.
The new cases of the Middle East
Respiratory Syndrome included
two who were in the same hospital ward as other patients with the
potentially deadly virus, Seoul’s
health ministry said.
The others were a nurse at Samsung Medical Centre in Seoul — one
of the epicentres of the outbreak
— and a relative of a patient who
was hospitalised for an unspecified
disease in a hospital in Pyeongtaek,
south of Seoul, in early June.
Out of 179 people confirmed
to have caught Mers, five were
infected through unknown transmission routes outside hospitals,
which have until now been at the
epicentre of the outbreak, the ministry said.
A total of 27 people have died
in South Korea’s Mers outbreak
— the largest outside Saudi Arabia
— while about 3,100 people were
being held under quarantine at
state facilities or at home.
Samsung hospital, where nearly 90 patients, visitors and medical
staff have contracted the virus, declared a 10-day suspension of most
services on June 14 to stem the
spread of the virus.
But as the number of new infections has continued to grow,
authorities have decided to extend
the partial shutdown “indefinitely”.
The outbreak at the hospital,
which belongs to South Korea’s
top conglomerate Samsung group,
prompted heir apparent Jay Y Lee to
publicly apologise for “causing great
pain and concern” on Tuesday.
Another major Seoul hospital,
Konkuk University Medical Centre,
yesterday also stopped admitting
new patients and performing surgery after four cases were reported
in recent days. — AFP
Nightclub apologises after barring transgender
MANILA: One of the Philippines’
top nightclubs has issued an apology after its bouncers barred a transgender fashion designer from entering, triggering outrage in celebrity
circles.
The management of the Valkyrie, in an uptown suburb of Manila, issued a statement on Tuesday
stressing they do not discriminate
against “transwomen and transgender individuals”.
“The Club does not refuse entry on the basis of an individual’s
sexual orientation. The Club has,
on many previous occasions, welcomed transgender guests into its
premises,” said the statement, a
copy of which was obtained by AFP
yesterday.
The apology came after popular designer Veejay Floresca was
denied entry into the fashionable
nightclub earlier this month.
Floresca said she was barred
from Valkyrie on June 12 with a
bouncer telling her “cross-dress-
IN BRIEF
Heat wave deaths in
Pakistan’s financial hub
reach 780
KARACHI: Pakistan’s financial
capital of Karachi is wilting in
a four-day heat wave that has
killed more than 780 people, a
health charity said yesterday,
as the government declared a
holiday in the city to encourage
people to stay home and cool
off. The heat wave has coincided with severe electricity cuts
and the holy month of Ramadan, when most Muslims do
not eat or drink during daylight hours. Many of the deaths,
among the elderly and poor in
the southern city, were caused
by dehydration.”The heat wave
death toll has reached close to
the 800 mark in the last four
days,” Anwar Kazmi, a senior
official of the private charity,
the Edhi Foundation said. —
Reuters
Speed up reducing
greenhouse gas
emissions, govt told
AMSTERDAM: A district court
ordered the Dutch government
yesterday to ensure that the
Netherlands reduces greenhouse gas emissions at a faster rate than currently targeted. A judge in The Hague said
the state must “ensure that the
Dutch emissions in the year
2020 will be at least 25% lower than those in 1990”. Based
on current government policy,
the Netherlands will achieve
a reduction of 17% at most in
2020, which is below the norm
of 25% to 40% for developed
countries, a summary of the
ruling said. — Reuters
Australian fishermen
catch rare 6.3-metre
basking shark
MELBOURNE: Fishermen off
Australia who accidentally
caught a whopping 6.3-metre
basking shark have provided scientists with a rare opportunity
to study the second-biggest fish
on the planet. Little is known
about the species — smaller only
than the whale shark — because
it does not need to surface for
air to survive and so is not often
spotted. The specimen has been
donated to Museum Victoria, in
the southern city of Melbourne,
whose scientists will use its tissue
samples, stomach contents and
vertebrae to research its genetics, diet and life history. — AFP
Israel arrests Druze
suspects in Syria
ambulances attacks
The apology came after Floresca (second from left) was denied entry into the fashionable
nightclub earlier this month.
ers are not allowed.”
On June 20, she tried to enter
another uptown establishment,
the Pool Palace Club, owned
by the same company, but was
blocked by a bouncer who questioned her California ID card,
identifying her as a woman.
“No, you are still a man,” she
quoted the bouncer as saying.
However, a woman at the club intervened and got Floresca inside,
she added.
The incidents touched off a firestorm with many accusing the management of discrimination. — AFP
JERUSALEM: Israel arrested
nine Druze Arabs yesterday
over two attacks, one of them
fatal, on ambulances bringing casualties from Syria’s civil
war to Israeli hospitals, security
sources said yesterday. Monday’s attacks in northern Israel
and the Israeli-annexed Golan
Heights drew strong censure
from Prime Minister Benjamin
Netanyahu, whose government
is trying to prevent a spillover of
sectarianism from Syria while
offering limited humanitarian
aid. — Reuters
W O R L D 27
Japan arrests ex-Bangkok police chief
TOKYO: Japanese law enforcement
officers have arrested a former senior policeman from Thailand for
possessing a loaded gun, officials
said yesterday.
Comronwit Toopgrajank, 60,
identified as a one-time Bangkok
police chief by the Thai Embassy in
Tokyo, was arrested on Monday at
China seizes 3
billion yuan of
smuggled meat
SHANGHAI: Chinese customs
have seized around 3 billion
yuan (RM1.82 billion) worth
of smuggled meat, some more
than 40 years old and rotting,
the official China Daily said
yesterday, the latest in a grim
series of food safety scares.
Beijing toughened food
safety rules in April to shake
off a reputation for safety
scandals that range from donkey meat tainted with fox DNA
to milk contaminated with industrial chemical melamine
that killed at least six infants
in 2008.
Chinese authorities have
launched a crackdown on beef
and frozen meat smuggling,
in addition to a campaign last
year to stamp out the smuggling of farm products.
Authorities had busted
21 criminal gangs by June,
leading to seizures of more
than 100,000 tonnes of smuggled meat, including chicken
wings, beef and pork, state
news agency Xinhua said. In
one bust, police in southern
Hunan province arrested 20
people.
Customs officials found
some of the meat was more
than 40 years old, meaning it
dated back to the 1970s. Other parts were rotten and decomposing, the China Daily
newspaper said. It was not
clear if the seized meat had
been destroyed.
“It was smelly, and I nearly
threw up when I opened the
door,” administration official
Zhang Tao told the newspaper.
Industry sources say hundreds of thousands of tonnes
of beef is being smuggled
into China via neighbouring
Hong Kong and Vietnam, from
countries such as Brazil and
India, to sidestep Beijing’s import curbs.
Meat can last for a long
time if continuously frozen,
but smuggled meat is often
moved under poor storage
conditions that lead to repeated thawing, making it eventually go bad.
“To save costs, smugglers
often hire ordinary vehicles
instead of refrigerated ones.
So the meat has often thawed
out several times before reaching customers,” Yang Bo, an
anti-smuggling official in
Changsha told the paper. —
Reuters
Narita airport as he tried to leave
the country, a spokesman told AFP.
Officials stationed at the airport
discovered a revolver with five live
rounds in Toopgrajank’s suitcase
and arrested him on the spot on
suspicion of violating the firearm
control law, the spokesman said.
The suspect told police “the gun
was his own and was a gift from a
friend, and that he had forgotten
he had put it inside the suitcase,”
the official said.
“He entered Japan on June 19,
and said he visited a waste incineration plant as part of a group of
some 80 people,” the police official added.
The suspect was later sent to
prosecutors, where he was being
quizzed, a Thai embassy official
told AFP.
While Japanese police do carry
guns, Japan has very strict firearms
control laws and few people possess
weapons or have ever come into
contact with them. — AFP
Alibaba to pull
Confederate imagery
In the wake of mass shooting at South Carolina church
SHANGHAI: Chinese e-commerce
giant Alibaba Group Holding Ltd
joined American retailers yesterday in pledging to pull down links
to products displaying Confederate flag imagery in the wake of last
week’s mass shooting at a historic
black South Carolina church.
The Confederate battle flag has
become a lightning rod for outrage
over the killing of nine black men
and women at Emanuel African
Methodist Episcopal Church in
Charleston last Wednesday. Accused gunman Dylann Roof, a
21-year-old white man, is seen
posing with the flag in photos
posted on a website reported to
be his.
“Alibaba Group prohibits listings
of materials that are ethnically or
racially offensive across its plat-
forms. As such, we will be removing listings for flags, clothing and
other memorabilia that display the
Confederate flag imagery,” spokesman Rachel Chan told Reuters in
an email.
Most Alibaba platforms, including the hugely popular Taobao and
Tmall online shopping sites, serve
Chinese customers, although platforms like Alibaba.com do focus
on selling Chinese-made products
overseas.
The United States accounts for
a small fraction of overall sales for
Alibaba, which is based in the Chinese city of Hangzhou but listed in
New York. The company has been
more focused on increasing the
sale of American goods in China
than vice versa.
The decision to pull Confederate
imagery comes after online competitors Google Inc, Amazon.com
Inc and eBay Inc, and brick-andmortar stalwarts Wal-Mart Stores
Inc and Sears Holdings Corp, said
they would do the same.
The scale of sales of Confederacy-related items on Alibaba platforms was not immediately clear.
A search on Taobao for “Confederate flag” still produced a lot of
results yesterday. A search for the
Chinese term for “Nazi” produce
a message stating that no results
can be displayed due to relevant
laws and regulations. In English,
the search produces books about
World War II.
Banned or illegal products are
sometimes sold on Alibaba platforms via code words or similar
terms. — Reuters
Bomb attack in restive Xinjiang — Radio Free Asia
BEIJING: Ethnic Uighurs attacked
police with knives and bombs at
a traffic checkpoint in China’s far
western Xinjiang region, Radio
Free Asia reported on yesterday,
and at least 18 people were killed.
The attack occurred at the
beginning of the Muslim fasting
month of Ramadan on Monday
in the southern city of Kashgar,
where tensions between Muslim
Uighurs that call the region home
and the majority Han Chinese
have led to bloodshed in recent
years.
Hundreds have been killed in
violence across the region, blamed
by Beijing on Islamist militants.
Suspects killed several police
officers with knives and bombs
after speeding through a traffic
checkpoint in a car in Kashgar’s
Tahtakoruk district, US-based Radio Free Asia said, citing Turghun
Memet, an officer at a nearby police station.
Armed police responded to the
attack and killed 15 suspects “designated as terrorists”, Radio Free
Asia cited Memet as saying.
It said in all, between 18 and
28 people were killed, including
several bystanders, but that police
IN BRIEF
New logo for food
safety accreditation label
launched in Taiwan
TAIPEI: A new logo for food safety accreditation was unveiled
yesterday in Taipei City, reaffirming the government’s determination to safeguard public health
and re-establish confidence in
the local food sector. Implemented by Taiwan Quality Food Association (TQF), formerly Taiwan
Food Good Manufacturing Practice Development Association,
the system supersedes the Good
Manufacturing Practices accreditation launched by the Industrial Development Bureau under
the Ministry of Economic Affairs
in 1989. “Food safety scandals
in recent years underscore the
importance of source control
in food manufacturing,” TQF
chairperson Bonnie Sun said.
“The new programme involves
independent organisations at
home and abroad performing
accreditation, audits, certification and inspections to ensure
better supply chain management.” — Taiwan Today
Last of HK pro-democracy
camp cleared
HONG KONG: The last remnants
of the tent city that once blocked
a major highway through Hong
Kong during mass pro-democracy protests was cleared away
by city authorities yesterday. The
camp of around 150 tents outside the legislature — complete
with flower pots, a study area and
large colourful banners — was a
final outpost of the former Admiralty rally site that was cleared in
December. By yesterday morning, all that remained were some
ramshackle tents and piles of unwanted belongings, from sofas
and mannequins to mugs, toys
and slippers. — AFP
Japan police raid Toyota
HQ over drug charges
TOKYO: Japanese police said
yesterday they had raided Toyota’s headquarters in the hunt
for evidence, after arresting its
most senior female executive for
suspected drug law violations.
The announcement came as reports said American Julie Hamp,
55, told prosecutors she had the
powerful painkiller shipped from
the United States to ease problems with her knees. A police
spokesman told AFP “it’s true
that we raided” Toyota’s headquarters in Toyota city in central
Japan, its main Tokyo offices and
other offices on Tuesday. — AFP
US retailers pull
Confederate flag
Residents lighting candles as they mourned the victims of the bomb attack in Urumqi,
Xinjiang on Tuesday. Hundreds have been killed in violence across the region, blamed by
Beijing on Islamist militants. Photo by Reuters
estimates of the toll varied.
Repeated calls to the Xinjiang
government and public security
departments were not answered.
Such incidents are frequently reported in overseas media but not
confirmed by the Chinese government until days later, if ever.
Chinese Foreign Ministry
spokesman Lu Kang told reporters that he could not immediately
verify the report.
“But if it is correct, then the
Chinese government has the responsibility to take resolute steps
to stop these kinds of violent terror
acts, to maintain peace and stability in Xinjiang,” Lu said. — Reuters
WASHINGTON: Walmart and
Amazon will no longer stock
merchandise bearing the Confederate flag after the Charleston
church massacre, in a growing
movement against what critics
say is a symbol of racism in the
American South. The retail giants
were joined by eBay, Sears and
Kmart and follows calls from
South Carolina state governor
Nikki Haley to remove the controversial flag from the grounds
of the state capital following protests at the weekend. — AFP
2 8 S P O RT S
Keen to buy stake in F1
Miami Dolphins owner and Qatar aim to acquire Formula One for US$8b
BY FREYA B ERRY
LONDON: RSE Ventures, which owns
the Miami Dolphins NFL team, is
joining forces with Qatar to buy a
controlling stake in Formula One
in a deal worth about US$8 billion
(RM30 billion), a source familiar said.
RSE is looking to acquire the
35.5% stake from private equity
fund CVC Capital Partners Ltd, who
sold down its holding from 63% in
2012 in deals that at the time gave
the business an enterprise value of
US$9.1 billion.
The commercial side of Formula
One is run by 84-year-old British
billionaire Bernie Ecclestone, who
has turned the sport into a global
money-spinner in more than four
decades of deal making.
Ecclestone, a former sec-
Malaysia’s
Olympic dream
to get push
from Jamaica
NASSAU: Malaysia’s dream to
produce Olympic champions is
being given a push with Jamaica’s offer to share its experience
and expertise in sport education and development with the
Southeast Asian country.
Deputy Prime Minister
Tan Sri Muhyiddin Yassin
said the matter was raised
in talks between him and Jamaican Education Minister
Reverend Ronald Thwaites
here on Tuesday.
“We welcome this offer as,
despite being a small Caribbean nation, Jamaica has
produced notable Olympic
champions like sprinter Usain
Bolt and others in athletics,” he
said after the bilateral meeting
that was held on the sidelines
of the 19th Conference of the
Commonwealth Education
Ministers.
Muhyiddin, who is also education minister, said Malaysia
was keen to learn more about
the sport education system in
Jamaican schools
“We may be able to learn
from them how they have been
able to produce international
sporting icons,” said Muhyiddin
who later attended the opening
of the conference at the Atlantis
Resort’s Conference Centre on
Paradise Island here.
Muhyiddin said the Jamaican minister had expressed
interest to forge linkages with
Malaysia in fields like higher
education, technical and vocational education and training
as well as science, technology,
engineering and mathematics
programmes.— Bernama
ond-hand car dealer and team owner, has also been a controversial
figure and last year agreed to pay
a German court US$100 million to
settle a bribery case and preserve
his innocence.
CVC has twice tried to float Formula One, most recently in 2013,
but the plans stalled and the fund
instead sold stakes to US investment groups Blackrock and Waddell & Reed, along with Norway’s
Norges Bank.
Dieter Hahn, chairman of the supervisory board of German sports
marketing media group Constantin
Medien, is also involved with the
investment consortium, the source
said, adding that investment bank
Leonardo is working with him.
Reuters could not immediately verify what Hahn’s precise in-
volvement was.
“The key to unlocking this deal
is that under Bernie F1 doesn’t do
much TV rights marketing. Hahn
will help with that,” the source said.
Constantin Medien brought a
US$100 million damages claim
against Ecclestone in the London
High Court over his involvement
in the deal that brought CVC into
the sport as largest shareholder.
That claim was dismissed last
year but the judge made damaging
observations about Ecclestone in
finding him neither a reliable nor
truthful witness.
Goldman Sachs is working with
CVC on the deal, while JP Morgan is
working with the buyside investors.
Ecclestone told Britain’s Times
newspaper that three or four potential bidders had emerged.
“I have no idea whether any of
these people have got closer with
this, but CVC are in the business
of buying and selling companies,”
he added.
Formula One has had major challenges to address including soaring
costs, struggling teams, falling viewing figures in some regions and a
failure to engage a younger audience.
The sport is beset with disputes
about governance and how to cut
costs and give teams more money
amid fears that traditional races like
Monza in Italy face the axe while
exotic new destinations are added.
Qatar is among those seeking
a race but, despite its oil and gas
wealth, has so far failed to secure
a slot on the calendar with Ecclestone granting Bahrain an effective
veto on regional rivals.— Reuters
Serena targets sixth title
at All-England Club
BY STEV EN G RI FFI THS
LONDON: Serena Williams has set
her sights on moving a step closer
to an historic calendar Grand Slam
as the world No 1 launches her bid
for a sixth Wimbledon crown.
Williams returns to the All England Club next week for the first
time since her distressing meltdown midway through a doubles
match last year in which she was
so badly affected by an apparent
virus that she could barely hit the
ball over the net.
Those bizarre images of a dazed
Serena stumbling around Court
One — coming just days after her
lacklustre third round defeat at the
hands of Alize Cornet — prompted
some to suggest that her career was
heading for a painful final chapter.
But the 33-year-old’s response
has been typically dramatic and
decisive.
Serena won the US Open to end
Serena: I haven’t done
great at Wimbledon
the past two years, so
I’m going to take it a
day at a time there.
Photo by Reuters
LONDON: Three weeks after his
heartbreaking French Open final
defeat, Novak Djokovic (pic) resurfaces to defend his Wimbledon
title and prove that his Paris scars
have healed.
The world No 1 has stayed resolutely out of the spotlight since
his Roland Garros upset by Stan
Wawrinka ended his latest bid to
complete the career Grand Slam.
Even his usual prolific social
media activity has been reduced
to scraps with a mere half-dozen
postings on Twitter.
Despite his recent low profile, his
No decision yet on Japan
stadium, but original
design in lead
TOKYO: No final decision has
been made on Japan’s new National Stadium, the centrepiece
for the 2020 Summer Olympics,
but with an alternate plan judged
“unrealistic” there are still no
reasons to abandon the original
design, an official said yesterday.
Construction of the new National
Stadium has run into numerous
problems, including sky rocketing costs and demolition delays
that have prompted speculation
it might not be finished in time,
as well as feuding over who will
pay what for it. Education Minister Hakubun Shimomura, who
also holds the sports portfolio,
hinted earlier this week that he
might “consider” an alternative
design to the one by architect
Zaha Hadid, which has been
criticised for its high cost and an
ultra-modern design unsuited
to the area around it. — Reuters
Terengganu to take
part in Women’s
Hockey League
K UA L A T E R E N G G A N U :
Terengganu will take part in
the Women’s Hockey League
(WHL) introduced by the Malaysian Hockey Confederation
(MHC) in August. Terengganu
Hockey Association (THA) secretary Marzilaini Mohammad
said the tournament is the best
platform to expose players for
the 2016 Malaysia Games. The
THA will make thorough preparation for the tournament and
has listed over 22 players, mostly school players, for centralised training. Marzilaini said
the team coach will be selected
after the team management
meets tomorrow. — Bernama
Roslan up to the task,
says Kumar
2014 on a high and then swept to
Australian and French Open triumphs this year, bringing her back
to the All England Club within two
major titles of achieving the first calendar Grand Slam since Steffi Graf
claimed the four top titles in 1988.
“Obviously I would love to win a
Grand Slam. I think it would be awesome,” said Serena, who defeated
Lucie Safarova to clinch her third Ro-
land Garros title earlier this month.
With 20 Grand Slam titles to her
name, Williams sits third on the
all-time list and is closing fast on
Margaret Court’s record of 24.
“I haven’t done great at Wimbledon the past two years, so I’m going to take it a day at a time there,”
Williams said. “My goal is just to
do better than the last couple of
years.” — AFP
Wounded Djokovic looks to heal at Wimbledon
BY DAVE JAMES
IN BRIEF
rivals have no doubt that the Serb will
be fired up to defend his Wimbledon
crown just as he was in 2011 when he
captured his maiden title in London.
“I’m sure after losing the French
Open final he wants more,
he wants to come back and
win the next big one,” said
Wawrinka.
Seven-time Wimbledon
champion Roger Federer,
defeated by Djokovic in
the 2014 final, also sees
the Serb as favourite. “He is
the champion, the world No 1 and
plays well on grass,” said Federer.
Djokovic’s loss to Wawrinka in
Paris was just his third in 44 match-
es this year.
With the Australian Open already
under his belt, the shattering loss
also ended his chances of going
on to become just the third man in
history — and first since
1969 — to clinch a calendar
Grand Slam. Such Paris disappointments have previously worked in his favour.
His 2011 semi-final loss
to Federer at Roland Garros ended a 41-match win
streak that year. However,
just four weeks later, he defeated
Rafael Nadal to secure a first Wimbledon title and then went on to his
maiden US Open triumph. — AFP
KUALA LUMPUR: National hockey squad first choice
goalkeeper S Kumar is confident that his replacement at the
ongoing World Hockey League
semifinals in Belgium is up to
the task. He said Roslan, 36, was
a highly capable goalkeeper
with wide international experience. “I am more than confident that he will deliver. My
personal message to Roslan and
the team is not to think about
me but focus on qualifying for
the Olympics. I know they can
do it,” he said after receiving
a visit from Youth and Sports
Minister Khairy Jamaluddin at
his home in Taman Puncak Jalil
9 here on Tuesday. — Bernama
Dutch police to disrupt
Tour de France in pay row
THE HAGUE: Dutch police are
planning protests to disrupt the
first two stages of the Tour de
France in the Netherlands on
July 4 and 5, their union, which
is demanding better pay, said
yesterday. Police will carry out a
protest bike ride in Utrecht shortly before the start of the race on
July 4 and briefly stop competitors on a bridge in Rotterdam the
following day, the union said in
a statement. — AFP
S P O RT S 2 9
T HU RSDAY J U N E 25 , 2 015 • T HEED G E FINA NCIA L DA ILY
Liverpool sign Brazilian
forward Firmino
BBC reports the transfer fee will be £29 million
Brazil’s Firmino at a news conference in
Santiago, Chile, on Tuesday. The forward
has signed a five-year contract with
Liverpool. Photo by Reuters
LONDON: Liverpool have signed
Brazilian international forward
Roberto Firmino, the Premier
League club said yesterday, with
the BBC reporting the fee would
be £29 million (RM84.48 million).
The forward, currently on duty
for Brazil in the Copa America in
Chile, will join from Bundesliga
club Hoffenheim.
“Liverpool Football Club are
delighted to announce the signing
of Roberto Firmino from Hoffenheim, subject to a medical which
will take place immediately fol-
lowing the player’s participation
in Copa America 2015 for Brazil,”
the club said in a statement on
its website.
“The 23-year-old has agreed a
long-term contract with the club,”
they added.
The BBC said that the contract
was for five years and that the fee
was the second-highest ever paid
by Liverpool after they shelled out
£35 million for Andy Carroll in 2011.
Firmino scored 47 goals in 151
appearances during his four and a
half years in Germany.
He has scored four times in nine
appearances for his country, including what proved to be the winner in Sunday’s 2-1 victory against
Venezuela at the Copa America.
Firmino, who played for Figueirense in his homeland before moving to Hoffenheim in 2011, becomes
Liverpool’s fifth summer signing
after those of James Milner from
Manchester City, Danny Ings from
Burnley, goalkeeper Adam Bogdan
from Bolton Wanderers and defender Joe Gomez from Charlton
Athletic. — AFP
Man City add extra game for Australia swing
SYDNEY: Manchester City will play
sister club Melbourne City next
month as a warm-up to the International Champions Cup, which
also features Real Madrid and AS
Roma, it was announced yesterday.
The Premier League runners-up
will face Melbourne City, a club
they own, on July 18 on the Gold
Coast, which will be their base for
an 11-day training camp ahead
of the triangular tournament in
Melbourne.
“We couldn’t be more pleased
to be welcoming our sister club
Manchester City FC to Australia
and indeed to be playing against
them in a historic game at Cbus
Super Stadium,” Melbourne City
chief Scott Munn said.
“As an A-League Club well acquainted with the area having
played here several times, we know
that the facilities on offer in the
Gold Coast are second to none and
this opportunity is a fantastic way
for both teams to get ready for our
respective seasons ahead.”
The International Champions Cup will be played at the
100,000-capacity Melbourne Cricket Ground from July 18 to 24. — AFP
Klinsmann to speak with Dempsey over incident
CHICAGO: US coach Jurgen Klinsmann plans to talk with Seattle
striker Clint Dempsey about the referee abuse incident that brought the
forward a three-game ban, but will
not keep him out of next month’s
Gold Cup tournament.
Klinsmann named Dempsey to
the 23-man American roster for the
biennial North American championship despite the former Fulham
and Tottenham standout tearing
up a referee’s notebook in a US
Open Cup match against Portland
last week.
That incident and the ejection
that followed prompted Major
League Soccer to issue Dempsey a
three-match ban, which Dempsey
will have completed by this weekend so he will be available for the
Gold Cup starting with a tune-up
match next week against Guatemala.
“It’s a mistake and mistakes happen,” Klinsmann said.
“It’s something that nobody
wants to go through. Nobody wants
to get red-carded. Nobody wants to
get suspended and be in discussion
by the fans and the media for a mistake you make,” the coach added.
“On the other hand, it’s part of
the game too. So we’ll take a little
bit of a step back and we’ll discuss
it in person in a relaxed way and go
from there.”
The US will try to defend its 2013
Gold Cup crown and ensure a berth
in the 2017 Fifa Confederations Cup
in Russia as a result.
If they fail to repeat, the club that
does win the title will play the US
squad for the trip to Russia. — AFP
IN BRIEF
Denmark, Germany reach
U21 Euro semi-finals
OLOMOUC (Czech Republic): Denmark and Germany
reached the semi-finals of the
European Under-21 Championship in the Czech Republic
after taking the top two spots
in Group A on Tuesday. Denmark won the group with six
points from three games after
beating Serbia 2-0 in Prague.
Germany came second with
five points after being held to a
1-1 draw by third-placed hosts
the Czech Republic. In Group
B, all four teams can still make
it to the semi-finals scheduled
for next Saturday. — AFP
Australian women footballers push for more pay
SYDNEY: Australia’s women footballers should be offered more “attractive conditions” including higher match
fees, their union said yesterday after the team dumped
star-studded Brazil out of the
World Cup to reach the quarter-finals. The women’s national team, the Matildas, will
be paid just A$750 (RM2,185)
each under their current contract when they take on reigning champions Japan next Saturday in Edmonton, Canada,
for a place in the semi-finals.
— AFP
Japan give Dutch ‘lesson’,
next up Australia
VANCOUVER: Japan gave newcomers the Netherlands a lesson in football on Tuesday,
winning 2-1 to advance to a
last-eight showdown with Australia at the Women’s World
Cup. Saori Ariyoshi and Mizuho Sakaguchi scored in either
half, for the defending champions who are the only team
left in Canada to have won all
their matches. Kirsten Van de
Ven headed in a consolation
goal for the 12th-ranked Dutch
in injury time, helped by an
error from Japanese goalkeeper Ayumi Kaihori, who let the
ball slip from her grasp. — AFP
30
live it!
T HU
WELLBEING . THE ARTS . WINE+DINE . STYLE+DESIGN . LEISURE
Personal
ASSISTANT
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COMPI L ED BY S HALINI YEAP
WORK. LIFE. BALANCE
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TEST your skills as an aspiring performer
at the Barlai Open Mic from 8pm
tonight. This time around, the biweekly
programme will feature singer Jes
Ebrahim and local rock band Skies Are
Red. If you’re up for performing too, sign
up by dropping a line at shaneil.devaser@
me.com. Alternatively, you can always
swing by and enjoy some cocktails while
watching the show at Barlai, 3 Jalan Sin
Chew Kee, off Jalan Pudu, KL. Contact (03)
2141 7850 for enquiries.
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70
si
m
an
re
Sweating is usually not the most comfortable
of sensations, so the idea of sweat therapy
might not be appealing to most of us.
Inspired to
PERSPIRE
GATHER a group of eight to 10 friends
and head to Jump Street for a game of
dodgeball. Learn the ropes from the
qualified marshalls and coaches of the
Malaysian Association of Dodgeball, who
will be running Jump Street’s Dodge Ball
Training Night. The DodgeBall Pass is
RM170 for 10 visits. Jump Street is located
at 8A, Jalan 13/6, Seksyen 13, PJ. Visit
www.jumpstreetasia.com or contact (03)
7969 1051 for more information.
IF you haven’t yet caught the Lagi-lagi
Gila-Gila exhibition at Galeri Petronas,
make some time real soon. It showcases
over 200 pieces of original artworks
ranging from comic strips, editorial
cartoons, rare first editions and sketches
and drawings from the archives of the
publishers. The exhibition also focuses on
a number of our national cartoonists and
their individual expressions of humour
and humanity. Galeri Petronas is located
at Level 3, Suria KLCC, and gallery hours
for today are from 10am and 8pm. Log on
to www.galeripetronas.com.my or contact
(03) 2051 7770 for more details.
Exploring the therapeutic qualities of Sweatspa
BY M AE C HAN
S
weating is usually not the most
comfortable of sensations, so
the idea of sweat therapy might
not be appealing to most of us.
But as our skin is the largest
organ of our body, it can also
be the most effective in expulsing toxins.
Just ask Sabrina Tang, the owner and
founder of Sweatspa, an infrared sauna
therapy spa. When she opened her first
outlet more than a year ago in Bangsar
Shopping Centre, curious shoppers would
wander in and ask the inevitable, “Who
would want to pay to sweat?”, their expressions predictably sceptical. Once they
tried it, however, the sauna spa founder
says they returned converted.
She herself began as a user when looking for a solution for her husband, who
was suffering from knee and ankle problems that did not allow him to exercise,
compounded by several other ailments.
Now running the third Sweatspa, the
newest at the revamped Atria Shopping
Gallery in Damansara Jaya, the former
microbiologist says that the concept is as
simple as its name. Tang explains, “We
are here to provide a nice ambience and
platform to sweat in a comfortable and
healthy way, with a therapeutic effect.”
Tang says the concept is as simple as its name.
Photo by Shahrin Yahya
Spectrum Infrared (FIR) sauna and given a “medical grade” tag — is still relatively unknown in this country. Tang
says that the FIR sauna induces sweat
from the subcutaneous level of our skin,
which is about three to four inches deep.
“When we exercise in the gym session,
the sweat produced is often sticky and has
A different kind of sweat
an odour,” she states, “This sweat on the
While not entirely new, the infrared sau- other hand, has a refreshingly different
na — commonly referred to as a Full feeling and is odourless.”
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To prove their point, Sweatspa does
not contain facilities for showering. “Why
do we operate in a mall? Because after
the session, you feel clean and can walk
around all day,” Tang says confidently.
Mimicking the infrared rays from natural sunlight, which they refer to as ‘radiant heat’ from the morning sun, the
technology directly heats up the body as
opposed to traditional saunas, where the
air in the cabin is heated. “Using steam
or hot stones, it basically only warms the
surface of the skin. But this technology
penetrates directly into the subcutaneous level,” adds Tang.
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The technology
Using a patented solocarbon technology, the Sunlighten sauna is a pioneering
brand that is solely available here through
Sweatspa (Tang is also the sole distributor here in Malaysia). The sauna emits
near (0.76-1.5 microns), mid (1.5 – 5.6
microns) and far (5.6 – 1, 000 microns)
infrared rays, which denotes the different wavelengths.
Isolating only that which is medically
beneficial, Tang says the near infrared
helps stimulate production of collagen
and healing of tissue inflammation, while
the mid-range rays penetrates a little
deeper for better blood circulation and
pain relief effect. The far infrared range
is said to be most stimulating for detox
and burning fat.
As such, each of their saunas have
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live it! 31
T HURSDAY J U N E 25 , 2015 • T HEED G E FINA NCIA L DA ILY
M Y S W E AT S PA E X P E R I E N C E
SCENE
An indulgent agenda
BY P E TRI NA FE R N A N D E Z
AFTER a consultation and computerised body composition analysis, I am ushered into a tastefully decorated private room where the sauna booth is warmed
up and ready. Complete privacy is accorded from
that point until you are done and ready to ring the
electronic bell for a refreshing cold towel.
My treatment was the premium version with a larger mPulse sauna, which comes with chromo therapy
lights (different colours serve different purposes) and
a tablet for Internet surfing and music.
Overall, it wasn’t quite the “comfortable” experience promised, as the infrared heat boosts the body’s
core temperature quickly, especially for first-time
users. That being said, the heat was even and consistent. Even as the temperature gradually increases
to 66°C, it was not stifling and remained breathable
throughout, except that I could only lie still towards
the end as my heart rate accelerated.
At the end of the 40-minute session, it felt like the
equivalent of a rather intense workout, although I
am not entirely convinced about having shed the
700 calories Sweatspa promises. A post-body analysis reveals a substantial increase (for one session) in
muscle mass growth, a decrease in water retention
and an increase in metabolic rate.
I slept well that night and woke up feeling more
refreshed and lighter than before.
As for the sweat itself? The body remains heated
for a long while, as if one’s been out in the sun, but
otherwise it dries off quite quickly within the hour
after the sweating gradually decreases. It was definitely different from a smelly, sweaty, session at the
gym. The premium package also comes with a body
blower within the room, but I’d still prefer to take a
shower afterwards.
pre-set programmes adjusted to target specific aims
— for better skin, pain relief, anti-inflammation or
relaxation, for example.
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Detoxification
One of the main benefits of infrared sauna is the removal of heavy metals absorbed through our skin.
Tang concurs, “For example you have cadmium, one
of the most carcinogenic agents for humans found in
our petrol and air pollution. Sweating it out can excrete over 80%, through cleansing and urination only
about less than 8%.”
Drawing comparison to the trend of food detox and
bowel cleansing treatments, she continues, “Some
cleansing methods not only flush out the bad, but the
good as well, bringing down our immunity system and
digestive system. To me, the safest way is still through
sweating, which can bring out 10 times more heavy
metals compared to any other way.”
Is it enough to just sit and sweat?
The purpose, Tang emphasises, is not so much for vanity
than it is to balance our urban lifestyles. She makes it
clear that the infrared sauna is not a fad to replace exercise. “We will never tell customers to forego exercise
just to come here and sweat. Your diet is important,
your sleep patterns and how your workout is important. Our role here is to complement [those efforts].”
Interestingly, many of her customers are fitness enthusiasts and athletes. Their feedback is that the sauna
therapy improves stamina and stimulates muscle mass
growth, allowing them to work out better.
“I have a lot of senior citizens who come to us, those
in their 60s and 70s who might not be able to exercise. Then there are those recommended by doctors,
patients with high blood pressure and chronic illness
cases such as diabetic, uric acid, aches and pains, as
well as insomnia,” states Tang.
One of the biggest differences from the traditional
sauna is that the infrared sauna is suitable for most
people, except those with serious angina or recent
chest pains. Pregnant women are also advised to seek
their doctor’s opinion first.
Tang highly recommends people who have high
blood pressure to pay Sweatspa a visit. “FIR infrared
causes the body to produce nitric oxide, and it is a
[natural] vessel dilator,” she asserts, saying that longterm usage will also gradually soften and even dissolve
arterial plaque bit by bit.
The award-winning five-star luxury resort is set in 3.2ha of stunning jungle landscape.
THE inspiration behind its name
already alludes to the splendour
of Hanging Gardens Ubud, an
award-winning five-star luxury resort set in 3.2 ha of stunning jungle
landscape. Located in Ubud, Bali’s
cultural and spiritual centre, the secluded property boasts its own production of chocolate, vanilla, coconut,
cinnamon and lemon grass for use
in recipes and spa products. It also
plays host to ample dining and pampering options as well as the world’s
best pool, according to Condé Nast
Traveller and TripAdvisor.
Unwavering demand to share the
magic of its gardens has led the resort to create 30° — a Spa Collection
at Hanging Gardens Ubud. The Collection, as it is called, offers a wide
range of spa experiences and detoxification programmes in spectacular
settings, each unique and unfailingly
indulgent.
For utmost privacy, a stay at the
Spa Suite is in order. The one-bedroom villa can be booked by the day
or even by the night, for those reluctant to leave their private sanctuary.
Equipped with full spa facilities, a reflection pond and a private bridge extending out over the valley, its services
include dedicated spa therapists as
well as butler service for private meals,
with packages starting at US$1,500++
(RM5,625) per person. If you prefer
to keep your spa and bedroom separate, check into the Day Spa instead
for half a day of luxurious treatments
with exclusive Thalgo products. The
US$1,500++ per couple experience
includes champagne, caviar, canapes
and truffles a la chef.
Alternatively, try out the resort’s
range of organic treatments — many
of them bespoke to the resort using
produce grown in its grounds — at
any of the other spectacular spa locations dotting the property. The new
Hidden Palace Spa Lounge boasts
PICK OF THE DAY
Every day, our skin in subjected to negative effects of
pollution and other harsh elements that cause free-radical damage. The Instant Detox Mask by Caudalíe aims
to treat such damage with the use of a natural ingredient called grape marc. Other ingredients are pink
clay and coffee, papaya enzymes and eight essential
oils — lavender, bergamot, camomile, sage, cypress,
parsley, myrrh and sandalwood. Best of all, the mask
comes in packaging made from recycled plastic and
ash wood from sustainably managed forests. Priced at
RM115 for a 75ml bottle, the mask is available at Caudalíe Boutique Spa Bangsar Shopping Centre, Caudalíe
Pop Up Empire Shopping Gallery as well as all KENS
Apothecary and Sephora stores.
a private residence within a hotel,
featuring the royal and presidential
suites, grande executive suites and
junior suites.
The Jungle Spa spectacularly extends out into the valley in the lushest
corner of the resort’s gardens, while
the open Riverside Spa dramatically
sits atop the rapids of the Ayung River.
For a more contemporary experience,
consider the Open Air spa treatment
at the newly expanded pool deck.
Treatments are complemented by
organic fresh juices and meals, priced
from US$650++ per person.
Whether your ideal spa setting is
one with nature’s melody played in
surround sound at an open deck, or a
private sanctuary of wood and stone,
Hanging Gardens Ubud strives to
please. Complete a stay at this stunning rainforest locale with decadent
pampering for a wholly restful and
rejuvenating getaway. Find out more
at hanginggardensubud.com.
32
live it!
Zen TODAY
One man’s ways may be as good as another’s, but
we all like our own best. — Jane Austen, Persuasion
A NEW CHAPTER
BY SH A L I N I Y EA P
S
ince its founding in 1993, the Shanghai International Film Festival
(SIFF) has continued to build an
international platform to promote
the development of the Chinese
film industry and encourage co-operation with foreign film industries. Notably,
one such endeavour is the collaboration between the festival and Swiss watchmaker
Jaeger-LeCoultre.
The brand has officially partnered SIFF
since 2011, and as a result of the partnership,
10 classic films have been restored to-date.
This includes The River Flows to the East (I
and II), Eight Thousand Li of Cloud and Moon,
Crossroads and Stage Sisters.
Remaining true to Jaeger-LeCoultre’s passion for the art of filmmaking and driven by its ophy that the brand finds to be deeply reminnovative spirit, the plan to restore China’s iniscent of watchmaking too.
classic films has been one of the most imporFuelled by the accomplishments of the
tant projects for both the parties involved. The partnership thus far, this year, Jaeger-LeCoulproject also marks the first time that
tre and SIFF worked hand-in-hand
a private company has participated
to restore the award-winning 1993
in film restoration, ushering in a
modern classic, C’est la vie, Mon
whole new world for the protecChéri, the magnum opus of retion, restoration and maintenowned Hong Kong director
nance of classic films.
Tung-Shing Yee. The film folJaeger-LeCoultre takes
lows the love story of Kit a
pride in its Chinese film
struggling jazz musician
restoration project and
and Min, who is diagaccording to the chief
nosed with bone cancer.
executive officer (CEO)
As part of the SIFF’s
Daniel Riedo, “Film restoopening ceremony, the
ration is a precise, meticuluxury watchmaker launched
lous and passionately driven
two new pieces from its Renendeavour.” However, over and
dez-Vous collection — the Ivy
beyond the brand’s high esteem
Secret and Ivy Minute. Ivy leaves
for filmmaking, a common misare the chosen theme for this
sion remains the driving force for
stunning ladies’ collection, owthese film restoration projects.
ing to its hardiness that is asEvery moment in cinematography
Rendez-Vous
sociated with a kind of love that
bears the imprint of eternity, a philos- Ivy Secret.
remains indestructible in the face of
JaegerLeCoultre’s
CEO Daniel
Riedo (left)
and brand
ambassador
Zhao Wei
presenting
the auction
winner with
the special
edition
Rendez-Vous
Moon watch.
adversity. This vigorous climbing creeper was
once reserved for the tiaras of monarchs or
to crown the heads of athletes, scholars and
learned men.
Today, the ivy motif is not merely the exclusive preserve of royalty or leaders. The first
known traces of this pattern date back to 1890
on a pocket watch that was decorated with
a diamond-set ivy. While both timepieces
share the delicate yet powerful ivy motif, the
former is an emblematic tourbillon whereas
the latter is high-jewellery inspired.
The Rendez-Vous Ivy Secret features an
opening that reveals the emblematic watchmaking complication emphasised by a row
of diamonds forming a diadem. The ivy motif surges from the tourbillon to blossom on
the dial and as the leaves unfold in swirls, the
number 3, 6 and 12 appear to bloom from
the leaves. The contemporary plum shade
is highlighted further by the sparkle emitted
by the setting of the bezel, lugs and crown.
The Ivy Minute, on the other hand, conveys
a different nuance altogether and is the first
jewellery watch to join the Rendez-Vous col-
Rendez-Vous
Moon.
lection. This
timepiece is
adorned with
brilliant, baguette and marquise cut diamonds
on a slightly domed
cover, outlining the
shape of a flower. The secret lies in the clever play
of light by master craftsmen
and is edged by the cover of
the watch that half-opens,
allowing a glimpse of the
mother-of-pearl-dial.
The launch of these two timepieces is especially important to the brand as it celebrates
the long-standing relationship with the festival,
and is a tribute to the successful restoration of
the 1986 John Woo Film, A Better Tomorrow,
through the application of 4K technology.
The film starring Chow Yun Fatt, who is no
stranger to the silver screen, is perceived as
a milestone for Hong Kong cinema, setting
the standards for the movies that followed.
The gala dinner that followed the launch
was graced by the presence of a constellation
of stars including Jaeger-LeCoultre brand ambassadors Vicki Zhao and Carmen Chaplin,
both donning the new Rendez-Vous watches.
Also present were other film stars, singers,
trendsetters and cultural key opinion leaders.
The aim of this gala dinner was twofold — to
raise funds for the project to restore China’s
classic films while paying homage to the milestones in the history of the maison.
A special design of the Rendez-vous Moon
was crafted to represent the brand’s respect
for the history of Chinese film and gratitude
for continuous support garnered from friends.
Designed exclusively for the occasion, the
watch was donated by Jaeger-LeCoultre to
be auctioned by Christie’s with proceeds to
be fully utilised for the restoration project.

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