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FBM KLCI 1846.06
8.69
KLCI FUTURES 1849.50
2.00
STI 3502.75
6.51
RM/USD 3.6250
CPO RM2157.00
3.00
OIL US$62.61
0.12
GOLD US$1188.30
PP 9974/08/2013 (032820)
PENINSULAR MALAYSIA RM1.60 (INCLUSIVE OF 6% GST)
FRIDAY APRIL 24, 2015 ISSUE 1947/2015
FINANCIAL
DAILY
MAKE
BETTER
DECISIONS
www.theedgemarkets.com
PE Land’s Design Village
on track for 2016 opening
20 P R O P E RT Y
2
Dr M asks PM
what happened
to RM27b 1MDB
funds
6 HOME BUSINESS
Scanwolf initiates
investigation into
irregularities
8 HOME BUSINESS
Eco World to list
Malaysia’s first
property SPAC in 3Q
25 W O R L D B U S I N E S S
Half of US fracking
firms will be dead
26 W O R L D
Hong Kong leader
assails ‘uncivilised’
critics
by
u
o
y
o
t
t
h
g
u
o
r
b
s
i
y
p
o
c
l
a
t
This digi
1.80
FBM KLCI 1846.06
8.69
KLCI FUTURES 1849.50
2.00
STI 3502.75
6.51
RM/USD 3.6250
CPO RM2157.00
3.00
OIL US$62.61
0.12
GOLD US$1188.30
PP 9974/08/2013 (032820)
PENINSULAR MALAYSIA RM1.60 (INCLUSIVE OF 6% GST)
FRIDAY APRIL 24, 2015 ISSUE 1947/2015
FINANCIAL
DAILY
MAKE
BETTER
DECISIONS
2
Dr M asks PM
what happened
to RM27b 1MDB
funds
6 HOME BUSINESS
Scanwolf initiates
investigation into
irregularities
8 HOME BUSINESS
Eco World to list
Malaysia’s first
property SPAC in 3Q
Half of US fracking
firms will be dead
26 W O R L D
Hong Kong leader
assails ‘uncivilised’
critics
20 P R O P E RT Y
1.80
2
FR I DAY AP RI L 24, 2 0 1 5 • TH EEDGE FI N AN C I AL DAI LY
For breaking news updates go to
ON EDGE T V
M’sia’s decision to
float the ringgit the
correct one, says
ex-central banker
Dr M asks PM what happened
to RM27b 1MDB funds
He needs to account for this huge amount of borrowed money by the company
Dr Mahathir also pointed
out that three former chief
executive officers of 1MDB had
resigned without explanation.
Photo by Suhaimi Yusuf
BY SUP RIYA S U RE NDRAN
Nestle takes on
premium products
Zeti questions
the basis of
Fitch’s outlook
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KUALA LUMPUR: Former prime
minister Tun Dr Mahathir Mohamad has questioned some
RM27 billion of borrowed money
by 1Malaysia Development Bhd
(1MDB) that is still unaccounted for, after deducting the ascertained investments the strategic
development company had made
with the RM42 billion debt it has
accummulated to date.
“Where is the rest of the money?” Dr Mahathir asked in his blog
posting titled “1MDB” yesterday.
He went on to list all the known
investments that 1MDB had made
with the RM42 billion it had borrowed. They included the RM8.5
billion purchase of Tanjong Energy Holdings Sdn Bhd (now known
as Powertek Energy Sdn Bhd)
from tycoon T Ananda Krishnan,
the RM2.3 billion purchase of
Genting Sanyen Power Sdn Bhd
(now known as Kuala Langat Power Plant) and the RM1.2 billion for
Jimah Energy Ventures Sdn Bhd.
Others were the purchase of 70
acres (28ha) of land in Jalan Tun
Razak here for RM320 million,
and the purchase of 234 acres
of land in Air Itam, Penang for
RM1.38 billion.
“These are all the purchases
that are known. They all add up
to RM14.7 billion. So, there is
approximately RM27 billion left.
“[Furthermore,] more than
US$1 billion (RM3.63 billion)
were said to be paid to PetroSaudi International Ltd without
verification as to the value of the
company or its assets,” he noted.
The former prime minister
then threw a barrage of questions regarding the money that
1MDB had registered in the Cayman Islands, which was reported
to amount to US$2.318 billion.
“What was brought back to
Malaysia? What was brought back
and deposited in a Swiss bank in
Singapore? Why? Where was the
money brought back from? Why
is this money not used to pay
the RM2 billion interest? Why
did Bank Negara Malaysia allow
the first tranche to be repatriated
to Malaysia and not the second
tranche?” asked Dr Mahathir.
Whistleblower site The Sarawak Report had revealed that
1MDB had allegedly given false
bank statements pertaining to
its subsidiary’s accounts to the
Singapore branch of Swiss bank
BSI SA.
“Now the Swiss bank has told
the Singapore authorities that
the document did not originate
from them and does not represent a true account of the assets
of 1MDB, so where is the money
said to be registered in the Cayman Islands and is now brought
back?” wrote Dr Mahathir.
Dr Mahathir then stated that
not only is 1MDB losing money,
but the government had also lost
RM25 billion when 1MDB had
only paid RM683 million for the
Jalan Tun Razak and Sungai Besi
airport land.
“It should be noted that the
TRX (Tun Razak Exchange) land
is close to land recently sold at
RM7,000 per sq ft (psf ). Assuming the market price is RM3,000
psf, the true value of this land
is RM6 billion. The government
has therefore lost RM5 billion
plus because 1MDB paid only
RM320 million.
“With regard to the Sungai Besi
airport land, 1MDB paid RM363.5
million for 495 acres or RM91
psf. Assuming the market price
for this land is RM1,000 psf, the
government lost approximately
RM20 billion,” said Dr Mahathir.
He explained that 1MDB had
revalued all its assets at RM52
billion, but that was only because
government land had been purchased at far below the market
price.
“1MDB can only use [the revaluation surplus] to repay loans
if it succeeds in selling them off
as land or after development.
Progress on TRX is very slow and
there is no work on the Sungai
Besi land. No money will be generated during development, only
outflows,” said Dr Mahathir.
He added that when huge sums
of money disappear, then those entrusted with its management must
answer for the disappearance.
“The disappearance of a huge
amount of borrowed money by
1MDB, and Najib’s (Prime Minister Daruk Seri Najib Razak) inability to answer questions regarding what happened to the funds
disqualifies him from being the
prime minister of Malaysia,” wrote
Dr Mahathir.
He also pointed out that three
former chief executive officers
of 1MDB had resigned without
explanation.
The current president and
group executive director of
1MDB is Arul Kanda Kandasamy,
who was the former executive
vice-president and head of investment banking at Abu Dhabi
Commercial Bank.
1MDB is a strategic development company wholly owned by
the Ministry of Finance. Najib is
the chairman of the board of advisors to 1MDB.
I’m not lonely, says Najib in dig at Mahathir
BY M UZLIZ A M U S TAFA
KUALA LUMPUR: Prime Minister
Datuk Seri Najib Razak yesterday
said he does not feel lonely in a
jab at his arch critic, Tun Dr Mahathir Mohamad, who recently
said he was alone in telling the
truth about problems with Najib’s
administration.
Najib made his remarks in a
room full of investors at Invest
Malaysia Kuala Lumpur 2015 here
yesterday.
He addressed the former
prime minister’s criticism of him
obliquely in his speech, saying
“certain quarters” had expressed
loneliness in telling the truth.
“There has been some talk lately in Malaysia about how it can be
lonely telling the truth,” said Najib.
“I can tell you that I don’t feel
lonely standing here today (yesterday),” he said, adding that it
was because many international
bodies, individuals and institutions had praised Malaysia for
the country’s successes.
“I don’t feel lonely at all. In
fact, I feel in very good company,
and I am equally confident that,
given the well-known stability
and growth of Malaysia under this
government, I will be able to look
forward to the pleasure of your
company next year and for years
to come,” he said.
Dr Mahathir, in a recent post
on his blog chedet.cc, said he felt
as if he was alone in his quest for
answers to various issues he had
raised, referring to the 1Malaysia
Development Bhd (1MDB) debt
and the murder of Mongolian Altantuya Shaariibuu.
“I know I am alone but I feel
responsible to the people. Is that
wrong? When the people’s money
goes missing and is hidden from
them, is it wrong for me to ask?”
he wrote.
That was followed by a few
Umno leaders expressing their
solidarity with Dr Mahathir. Even
popular local celebrities Datuk Siti
Nurhaliza Taruddin and Rozita
Che Wan went on social media
to declare their support.
On Sunday, Najib’s brother Datuk Seri Nazir Razak posted a picture of Michael Jackson with the
words “you are not alone” on his
Instagram account.
The CIMB chairman included
the caption: “Now appearing in
Malaysian politics.”
Deputy Prime Minister Tan Sri
Muhyiddin Yassin also commented on Dr Mahathir, telling at an
anti-war forum recently that the
former leader had always spoken
the truth.
“Telling the truth and standing up ... this is your trademark
since you were a young doctor
and Umno member.
“You are not alone in telling
the truth,” said Muhyiddin in his
speech.
Although Muhyiddin was referring to Dr Mahathir’s stance on
war, his statement also appeared
to be a reference to the former
prime minister’s claim that he
was alone in demanding answers
from Najib.
Former Umno vice-president
Tan Sri Muhammad Muhammad
Taib said that Dr Mahathir could
always count on the silent majority for support.
Dr Mahathir has been very critical of Najib in recent months,
urging him to step down over
the 1MDB aff air, the 1Malaysia
People’s Aid cash handouts and
alleged links to the Altantuya
Shaariibuu murder.
More recently, Dr Mahathir
also mentioned the “lavish lifestyle” of Najib’s wife, Datin Seri
Rosmah Mansor.
Following Najib’s special interview on TV3 early this month, Dr
Mahathir said there were many
questions still left unanswered,
including the whereabouts of
1MDB’s Cayman Islands funds,
which were reportedly parked in
a Singapore bank. — The Malaysian Insider
4 HOME BUSINESS
New promoter for Edra?
A Middle Eastern consortium is said to be interested
BY B EN SHA NE L IM
KUALA LUMPUR: Edra Global Energy Bhd is seeking a new promoter
to take over from 1Malaysia Development Bhd (1MDB) and undertake
the former’s listing, said sources,
adding that a Middle Eastern consortium might be interested.
“There is nothing wrong with
1MDB’s power assets in themselves. These are the Tanjong [Energy Holdings Sdn Bhd], Genting
[Sanyen Power Sdn Bhd] and Jimah
[Energy Ventures Sdn Bhd] power assets, [which are] good assets.
With the right promoter and at the
right price, there is no reason why
Edra cannot list successfully,” one
industry executive told The Edge
Financial Daily.
Bringing in a new promoter
to lead the listing exercise means
1MDB will first dispose of most,
if not all, of its stake in Edra to another party that will in turn take
Edra for listing. The Middle Eastern
consortium, in this instance, is said
to consist of sovereign investment
funds as well as industry players.
This structure would serve two
purposes. First, it would allow
1MDB to cash out of its power investments more quickly and predictably, compared with taking Edra
to market by itself — a process that
has proven challenging to execute,
said sources.
Recall that 1MDB has been trying to list its power assets for more
than a year now, but withdrew its
initial public offering submission
from the Securities Commission
Malaysia last month. Even if 1MDB
were to resubmit an application
to list Edra, it could take roughly a
year to complete without any major hiccups.
Secondly, having a new promoter
could be a boost to Edra’s valuations
when it finally goes for listing, since
it would be able to shed the negative
sentiment from having controversy-ridden 1MDB as parent.
Having a shareholder that can
be strategic partner with access
to more potential projects in the
Middle East could also be a cat-
A view of the Genting Sanyen Power Plant, now known as the Kuala Langat Power
Plant, of which 1MDB owns 75%, in Banting, outside Kuala Lumpur. Photo by Reuters
alyst for Edra going ahead.
The only question remaining is
what price a new promoter would
be willing to pay for 1MDB’s power
assets. If the price is lower than the
original amount 1MDB invested
1MDB’s absence at Invest
Malaysia no help to ringgit
BY C I N DY Y EA P
KUALA LUMPUR: 1Malaysia Development Bhd (1MDB) had declined an invitation to participate
in Invest Malaysia Kuala Lumpur
2015 and its absence is a huge letdown as most of investors’ negative
perceptions of Malaysia stem from
the debt-laden strategic development company, said CIMB Group
Holdings Bhd chairman Datuk Seri
Nazir Razak.
“1MDB is not a systemic issue,
[but] I don’t think it is helpful that
1MDB is not here,” Nazir told reporters on the sidelines of the twoday investor conference co-organised by Bursa Malaysia Bhd and
CIMB Investment Bank Bhd.
“I don’t know [the reason]. [It]
declined to participate and I’m
disappointed because [it] would
have been an important element
of Invest Malaysia, given the backchatter on the topic,” he said, adding that “a lot” of the issues about
corporate governance and transparency brought up by investors
at Malaysia’s recent hugely successful US$1.5 billion [RM5.44
billion] sukuk issuance “derived
from the whole negative news
about 1MDB”.
“It is an isolated case but unfortunately, it is a bit of an eyesore. The
earlier we solve it, the better [it is
for Malaysia] because when issues
are not cleared up, people tend to
expect the worst,” said Nazir.
Citing how investors had
“warmed up” to Malaysia after a
strong investment case was pre-
Nazir called on Malaysian companies to
engage investors ‘more aggressively’ to
allay their concerns. Photo by Suhaimi
Yusuf
sented at the sukuk roadshow, Nazir called on Malaysian companies
to engage investors “more aggressively” to allay their concerns.
He said the “excessive” negative news has distracted investors
from the country’s fundamentals,
and this has significantly impacted the ringgit, investor sentiment
as well as the performance of the
local stock market.
Closing at 3.6235 to the US dollar yesterday, the ringgit is down
9.87% the past year and is the thirdworst performing of Bloomberg’s
basket of Asian currencies after the
yen and rupiah that have weakened 14.59% and 10.22% over the
same period respectively.
It did not help that Invest Ma-
laysia kicked off yesterday on the
back of yet another exposé by
whistleblower site Sarawak Report, which said it received “disturbing evidence” showing BSI
Bank in Singapore dismissing
documents supplied by 1MDB
pertaining to its subsidiary Brazen Sky Ltd’s statement of accounts.
This raised fresh concerns
about the true value of IMDB assets. In his blog post on chedet.cc
yesterday, former prime minister
Tun Dr Mahathir Mohamad also
called 1MDB “not a sovereign
wealth but sovereign debt” fund.
“Today and tomorrow is also
about getting [investors’] feedback ... Hopefully, Malaysia will
get more aggressive in explaining
and dealing with those issues because you cannot just spin, you’ve
got to deal with the substance of
the questions,” said Nazir.
The country, he added, has
successfully dealt with tough issues, for example the controversial “cross” protest at a church in
Taman Medan that the police are
investigating for potential violations under the Sedition Act on
the prime minister’s orders.
“I’m glad the prime minister
stepped in and made a decisive
intervention. That’s the kind of
way that some of these issues can
be resolved,” said Nazir.
Referring to 1MDB’s absence
at Invest Malaysia, Nazir also
said there are “other forums” for
it to present its case. “I hope [it]
will.”
plus interest, 1MDB will have to
take a hit to its balance sheet.
Note that 1MDB has already
been writing down the power assets in its books, with a RM1.2 billion write-down for goodwill on
acquisition for the financial year
ended March 31, 2014.
Edra currently has an estimated
RM15 billion in debt against RM4
billion in equity, which places its
enterprise value at approximately
RM19 billion. In its initial plan to
list Edra, 1MDB was hoping to raise
between US$3 billion (RM10.89
billion) and US$4 billion, selling
off most of its shares.
The Ministry of Finance (MoF)
had earlier this year appointed
CIMB Group Holdings Bhd to pursue the strategic sale of Edra. However, the MoF last month reversed
its decision.
CIMB had subsequently issued
a statement, saying “the MoF has
decided not to consider a sale of
Edra to strategic investors and as
such, CIMB’s services as adviser
to the potential sale are no longer
required”.
Nonetheless, with more interest
payments due over the next few
months for its RM42 billion in debts,
1MDB is under increasing pressure
to monetise its assets quickly.
Khazanah hopes to expand overseas
investments in the long run
KENNY YAP
BY FAT IN R A SY IQA H MUS TA Z A
KUALA LUMPUR: Khazanah Nasional Bhd will continue growing
its overseas investment over time
without neglecting domestic investment, said managing director
Tan Sri Azman Mokhtar (pic).
He said Khazanah already had
offices in Beijing, Mumbai, San
Francisco and Istanbul, and is
planning to open one in London
soon.
“I think the loop of overseas
[offices] is complete for now and
I don’t think we need more because it covers all the areas that
we cover — and then we will start
to invest further,” he told a press
conference on the sidelines of Invest Malaysia Kuala Lumpur 2015
yesterday.
Azman noted that while
strengthening government-linked
companies (GLCs), the national
investment arm has been increasing its global investing presence
which is also done not just through
Khazanah but also by its G20 GLCs.
Khazanah’s G20 companies
have increased their international
presence and now operate in at
least 42 countries, drawing 34% of
their revenue from abroad with an
overseas asset base of 27%.
These 20 companies, which include Affin Holdings Bhd, Axiata
Group Bhd, CIMB Group Holdings
Bhd and Boustead Holdings Bhd,
contributed RM108.3 billion in
dividends and RM63.5 billion in
taxes from 2004 to 2014.
Its G20 companies have also
seen their market capitalisation
grow 3.2 times from RM133.8 billion on May 14, 2004 to RM431.1
billion on April 7 this year.
Meanwhile, Azman noted that
Kahzanah had accelerated the restructuring plan for troubled Malaysian Airline System Bhd (MAS),
which could be seen with the earlier-than-expected appointment
of its new managing director and
chief executive officer Christoph
Mueller. He added that the airlines
would still maintain the estimated 6,000 job cuts at this juncture.
“At this juncture, in order for
MAS to make it work, we have
to adhere to the ideal number of
14,000 workers as we rationalise our fleet size and routes,” said
Azman.
He added that Mueller has to
work out the business details on
routes, fleet size and sustainable
operational system to turn around
MAS within the parameters set in
the recovery plan.
However, he noted that it is
too early to tell if the five-year restructuring plan for MAS will be
successful.
6 HOME BUSINESS
Scanwolf initiates
investigation into
irregularities
PKF Covenant appointed to conduct review of company’s ops
BY C H ESTER TAY
KUALA LUMPUR: Scanwolf Corp
Bhd, which is involved in property
development as well as the design
and manufacturing of plastic extrusions, has appointed PKF Covenant
to conduct an investigative review of
the company’s operations.
In a filing with Bursa Malaysia yesterday, Scanwolf (fundamental: 0.75;
valuation: 0.3) said the appointment
was due to “insufficient measures,
severe discrepancies and possible irregularities in the implementation of
its development projects, which were
discovered during a review of the
management, operation and practice
of certain projects and their contract
management processes”.
It said those findings had caused
the board of directors to be concerned about possible lapses in corporate governance in the affected
projects, as well as in other activities
of the group.
“The scope to be undertaken by
PKF Covenant is to review the organisation, reporting structure and
financial affairs of the company, particularly those relating to its property development division, thereby
facilitating improvements to its corporate governance policies and the
deliberations of the board of directors
of Scanwolf on the possible courses
of action to be taken in respect of its
findings,” the company added.
Scanwolf expects the full review
to be completed within eight weeks.
Scanwolf is also involved in polyvinyl chloride (PVC) compounding,
processing of PVC coils for home
and office fittings, trading of industrial consumables as well as other
building materials.
According to the company’s annual report for the financial year
ended March 2014, 60% of its revenue came from manufacturing
sales, while 34% was from property
development. The remaining 6% was
from management fees received
from its subsidiaries.
Scanwolf shares fell 3.57% to 81
sen yesterday, giving it a market capitalisation of RM67.13 million.
WZ Satu eyes doubling of net profit
MOST VIEWED STORIES ON
theedgemarkets.com
GHL to provide payment
facilitator services to CIMB
BY S UPR IYA S UR E N D R A N
KUALA LUMPUR: GHL Systems
Bhd has signed an agreement to
provide payment facilitator or
third-party acquisition (TPA) services to CIMB Bank Bhd.
Under the agreement, GHL will
seek to acquire between 3,000 and
4,000 merchants on behalf of CIMB
Bank in the first year.
“Revenue earned by GHL is derived from terminal rental and merchant discount rates, which will
continue as long as GHL signs up
merchants for card acceptance as
a TPA with CIMB Bank,” said GHL
in a statement yesterday.
It said the strategy going forward
will involve the deployment of conventional electronic data capture
terminals, mobile points of sales
devices and e-commerce.
GHL will also offer e-pay services, such as mobile prepaid reload
and bill payment collection services, to these merchants as value-added services.
“This will be truly unique to
GHL, as it will be the only company in Malaysia to be able to offer small and medium enterprise
(SME) merchants cashless payment
acceptance as well as the ability to
earn additional revenue via e-pay
products and services,” said GHL.
“CIMB Bank has a strong presence in the smaller-enterprise segment of the SME market and this initiative will enable both CIMB Bank
and GHL to increase our penetration
into this segment,” said GHL group
chief executive officer Raj Lorenz.
He added that the tie-up is also
aligned with Bank Negara Malaysia’s objective of increasing cashless
payment acceptance points to its
target of 800,000 payment devices
by 2020.
Meanwhile, CIMB Bank head of
consumer banking Datuk Sulaiman
Mohd Tahir, in the same statement,
said CIMB’s tie-up with GHL is a
positive move towards moving in
line with the nation’s call to promote
economic efficiency by shifting
from a cash-heavy society to embracing electronic payments as the
main medium of doing business.
“It is vital that we leverage specialised business partners such
as GHL, who are focused on this
niche area, for a more cost-effective transition. We aim to broaden
the accessibility and affordability
of e-payment services to different
consumer and business segments,”
added Sulaiman.
GHL (fundamental: 1.2; valuation: 0.2) closed unchanged at
RM1.16 yesterday, with a market
capitalisation of RM745.6 million.
BY SHA L I N I KU MAR
KUALA LUMPUR: WZ Satu Bhd
expects to see its net profit doubled
for its financial year ending Aug 31,
2015, compared with a year ago, said
its executive chairman and chief executive officer Tengku Uzir Tengku
Ubaidillah.
The company posted a substantial jump in net profit to RM11.68
million for the 16-month consolidated financial period ended August 2014.
For its second quarter ended Feb
28, 2015, the company’s net profit came in at RM5.11 million on a
revenue of RM86.37 million, which
brought its cumulative six-month
net profit to RM10.59 million on a
revenue of RM146.27 million, according to its filing with Bursa Malaysia yesterday.
The filing showed that the earnings were primarily contributed by
mining business, followed by the civil engineering, construction and oil
and gas (O&G) segments — and that
the current weak crude oil prices
and weaker ringgit did not adversely
impact the company’s performance.
It further read that WZ Satu expects its current year’s performance
and profitability to be enhanced by
the full year contribution from the
civil engineering, construction and
mining associates.
Earlier, Uzir told reporters after
the company’s extraordinary general meeting (EGM) yesterday that
he foresees the company’s mining
segment to continue its trend of
contributing to 50% of the company’s earnings for the rest of the year.
He, however, noted that WZ Satu
(fundamental: 1.7; valuation: 1.1),
Uzir: We have RM300 million
in work orders and RM1.2
billion of tenders in hand.
Photo by Shahrin Yahya
which began its foray into the O&G
business with the acquisition of Misi
Setia Oil & Gas Sdn Bhd (MSOG)
last year for RM27 million, is facing
increased competition.
Falling oil prices have caused
competitors to shift their business
focus to the mid- to downstream
spectrum of the value chain, he said,
which is MSOG’s area of focus.
“As such, with other businesses
moving their focus to these segments after they were impacted by
falling oil prices in the upstream
segments, it has become tougher
for us. However, we are still tendering for contracts and have bid
for RM1.1 billion in downstream
projects,” he said.
As for the company’s civil engineering and construction division, Uzir said he is bullish about
the industry, due to the ongoing
infrastructure projects carried out
by the government.
“We have RM300 million in work
orders and RM1.2 billion of tenders
in hand. Currently, we are actively
bidding for other construction projects,” he said.
At the EGM earlier, shareholders
approved of the disposal of wholly-owned unit, Weng Zheng Marketing Sdn Bhd, which is involved
in the trading and processing of
steel products, for RM6.1 million
cash to WZ Satu managing director and substantial shareholder
Tan Ching Kee.
“With this disposal, we are able
to recoup about RM22.5 million, including inter-company borrowings,
which Tan will reimburse back to us
by taking over this company,” said
Uzir, adding that the company is
now in a net cash position of about
RM40 million and the disposal will
enhance its balance sheet further.
WZ Satu shares ended seven sen
higher at RM1.52 yesterday, with a
market capitalisation of RM384.24
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 theedgemarkets.com for more
details on a company’s financial
dashboard.
Icon Offshore says deputy CEO
now in charge
BY C H E S T E R TAY
KUALA LUMPUR: Offshore supply vessel provider Icon Offshore
Bhd told Bursa Malaysia yesterday
that deputy chief executive officer
(CEO) Captain Hassan Ali is now
in charge of the group’s day-today management following the
remand of CEO Dr Jamal Yusof and
the latter’s brother, chief operating
officer Rahman Yusof.
The group said it had been informed by Jamal and Rahman’s legal counsel that the duo’s remand
will be for a period of three days.
Thus, Hassan is now in charge of
the coordination of the group’s
administrative and business activities in their absence.
As such, Icon Offshore said it
does not expect the remand to
have any financial or operational
impact on the group.
“In the absence of the CEO,
Captain Hassan, as the deputy
CEO, has assumed the functions
of the CEO with effect from April
22, 2015, in addition to his existing
responsibilities,” it said.
“In light of the development,
our company has engaged our
stakeholders, namely our customers and lenders, to apprise
them of the matter and, at the
same time, to provide assurance
to our stakeholders that it is business as usual for our group under
the stewardship of our deputy
CEO,” it said.
The statement was in response
to the local exchange’s query over
the operations of the company
following its announcement on
Wednesday that Jamal and Rahman to “facilitate and assist [in]
investigations” currently being
conducted by the Malaysian Anti-Corruption Commission.
Icon Offshore’s share price fell
7.5 sen or 10.95% to close at 61
sen yesterday, with 79.04 million
shares traded, making it the second-most-traded counter. The
price gives it a market capitalisation of RM718.08 million.
Correction
WITH reference to the article titled “CIMB Niaga 1Q net profit down
24.55% on high provisions, operating costs” published in The Edge
Financial Daily yesterday, it should read as “PT Bank CIMB Niaga
Tbk’s net profit for the first quarter ended March 31, 2015 fell 92.4%
from 1.1 trillion rupiah a year ago” and not as reported. The error
is regretted.
8 HOME BUSINESS
I N V E S T M A L AY S I A 2 0 1 5
PM: EPF withdrawal
retained at age of 55
Members continuing to work can take out their new contributions at 60
BY FATI N RA SY I QAH M USTAZA
KUALA LUMPUR: Prime Minister Datuk Seri Najib Razak has affirmed that Employees Provident
Fund (EPF) members will be able to
retain their rights to withdraw their
savings at the age of 55, following
public uproar over the retirement
fund’s proposal to increase the full
withdrawal age limit from 55 to 60.
“I want to assure the rakyat that
EPF members will retain their right
to withdraw (their savings) at the
age of 55. The EPF will ensure that
any new enhancements will only
apply to new contributions if members decide to work beyond the age
of 55,” he said in his keynote address
at the opening of Invest Malaysia
Kuala Lumpur 2015 yesterday.
“This strikes a fair balance between the rakyat’s expectations to
their hand-earned money at the age
of 55 and protecting them if they
retire at the age of 60,” he added.
EPF had recently proposed
four key areas of improvement
and enhancements to current EPF
schemes. Its proposals are subject
to public consultation through its
website for two weeks till May 5.
The first enhancement has two
options. The first option is to align
the full withdrawal age (60) with
the minimum retirement age (55)
as determined by the government.
Under the second option, the EPF
proposed to maintain the age of
withdrawal at 55 and should members choose to continue working
after that, new contributions will be
placed in a new separate account
which can be withdrawn at 60.
Najib also announced that the EPF
has embarked on an initiative to offer
a syariah-compliant investment option for its members by 2017, which
will create the largest syariah fund of
its kind in the world. It will also further strengthen Malaysia’s position
as a leading Islamic financial centre.
“As such, Malaysia is well placed
to drive the sustainability agenda further and in Budget 2014, I announced
initiatives to do just that,” he said.
Najib did not specify how big the
syariah-compliant fund would be.
Najib also noted that Malaysia’s capital market has witnessed
strong growth and currently stands
at RM2.82 trillion with the equity
market at RM1.74 trillion and the
bond market at RM1.08 trillion.
He added that the scale of capital market-based financing has also
deepened significantly within an
annual average of RM111 billion
raised through corporate bonds
and initial public offerings over
the last three years.
“Growth in the fund management
industry has been an important
driver of the capital market deepening, with RM630 billion under
management as at the end of 2014.
Malaysia also has a well-developed
Islamic fund management industry,
holding 22% of the US$73 billion
Islamic assets under management
globally in 2014,” he said.
Najib added that in order to make
the most of this opportunity and
firmly establish Malaysia as a global leader in this field, the Securities
Commission Malaysia is developing a comprehensive blueprint for
Malaysia’s Islamic fund and wealth
management industry which will be
ready by the end of this year.
“The blueprint will chart the medium- and long-term strategic direction for the industry as well as
map out strategies and recommendations to strengthen the country’s
competitive edge,” he said.
In a statement yesterday, the EPF
said it acknowledged the preference
for the second option which preserves
flexibility and protects the contributions of members post 55 years old.
“This is definitely in line with our
preliminary findings of the members’ consultation survey which overwhelmingly indicated support for
Option Two under our proposal,”
said EPF chief executive officer Datuk Shahril Ridza Ridzuan.
Muhibbah
expects Rapid
tender outcome
in 2H or next year
BY J E F F R E Y TA N
KUALA LUMPUR: Muhibbah
Engineering (M) Bhd expects the
outcome of its tender for RM1
billion worth of jobs in Petroliam
Nasional Bhd’s Refinery and Petrochemicals Integrated Development (Rapid) project in Johor to
be known in the second half this
year or sometime next year.
“It will take some time. Maybe
[in the] second half [this year] or
next year,” said Muhibbah group
finance director Shirleen Lee on
the sidelines of the Invest Malaysia
Kuala Lumpur 2015 conference
yesterday. She did not provide
more details on the jobs.
Muhibbah’s (fundamental: 1.1;
valuation: 0.8) tender book stood
at about RM4 billion, while its order book was slightly over RM2
billion as at February this year.
On whether Muhibbah will
tender for jobs for Petronas’
Pengerang Integrated Petroleum
Complex, Lee said the firm may
consider doing so on a selective
basis. “We’ll see how it goes because we are pretty busy. We have
to be selective,” she said.
Lee foresees that for the next
seven to 10 years, Malaysia will experience enormous growth in infrastructure jobs in the oil and gas,
marine and onshore segments.
Eco World to list Malaysia’s first property SPAC in 3Q
BY FATI N RA SY I QAH M USTAZA
KUALA LUMPUR: Eco World Development Group Bhd is looking at
a third quarter 2015 (3Q15) listing
for its special purpose acquisition
company (SPAC) called Eco World
International Bhd (EWI), said its
chairman Tan Sri Liew Kee Sin.
He said the group expects to
receive the Securities Commission
Malaysia’s (SC) approval by June
this year, for EWI to list on the Main
Market of Bursa Malaysia in 3Q.
The SPAC’s listing application was
submitted at the end of last year.
On whether the group is facing
difficulties getting approval for the
SPAC’s listing, Liew said yes, given
that “we are the pioneers” of property SPACs in Malaysia.
Chang is positive on the residential
property market in Iskandar Malaysia.
Photo by Kenny Yap
“There is a lot of regulatory compliance that we have to follow. I
don’t think we are the only one that
is slow, I think that every SPAC’s
listing is slow,” he told reporters
on the sidelines of Invest Malaysia
Kuala Lumpur yesterday.
“It’s a new property SPAC, so I
guess that is why it’s taking a long
time to get the SC’s approval,” Eco
World chief financial officer Datuk
Heah Kok Boon said. He noted that
SPACs currently listed on Bursa Malaysia are all oil and gas companies.
Eco World (fundamental: 0.5;
valuation: 0) had applied for the
first property SPAC, which will be
led by former S P Setia Bhd senior
management, to list on Bursa to
raise some RM1.87 billion for it to
venture overseas. Eco World had
expressed its interest in subscribing
to 30% of EWI’s enlarged issued capital for RM562.5 million. The stake
comprises 1.125 billion EWI shares
at an indicative issue price of 50 sen
apiece that comes with 1.125 billion
free detachable warrants.
Meanwhile, Eco World will not
propose any dividend for its shareholders for the next two to three years
as it is still in a growth phase, Heah
said. The property developer will be
focusing on its future growth and is
undertaking several corporate exercises, including a proposed rights
issue with warrants and a 20% proposed private placement to fund all
the acquisitions and future working
capital of the group, he added.
“If funds from the rights issue and
private placement are used to pay
dividends then it’ll be like borrowing
your (shareholders’) money to pay
you back right?” Heah added.
Eco World president and chief
executive officer Datuk Chang Khim
Wah is positive on the residential
property market in Iskandar Malaysia,
Johor, despite admitting that there is
currently a glut in the area.
A research note issued by Maybank
Investment Bank Bhd on April 14 had
urged investors to be cautious about
the region, noting that property transactions and prices in Iskandar Malaysia have been dropping.
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 theedgemarkets.
com for more details on a company’s
financial dashboard.
Kontena Nasional turnaround seen by mid-2016
SIBU: NCB Holdings Bhd unit Kontena Nasional Bhd is expected to
turn around by the middle of 2016,
said group managing director Abi
Sofian Abdul Hamid.
He said the loss-making logistics and haulage unit of NCB had
undergone an intensive business
restructuring and remodelling be-
ginning November 2014, which
have shown some positive results.
“Kontena Nasional’s losses in financial year 2013 were at RM70 million
and in 2014 we managed to bring them
down to about RM55 million,” Abi
Sofian said at the Malaysia Unit Trust
Week 2015 (MSAM 2015) yesterday.
He said among the actions taken
were to cease operations of the company’s non-core cross-border business,
giving more focus on strengthening its
core competency of container haulage and increasing asset utilisation.
“With assets of 350 prime movers
and more than 1,000 trailers, in the
last three months, Kontena Nasional has managed to increase its asset
utilisation from 50% to 70%,” he said.
On the group’s prospects this year,
Abi Sofian said he was confident they
would be positive following a good
performance of its other unit, Northport Corp Bhd, besides the improvement made by Kontena Nasional.
He said despite the global economic uncertainties, the sliding local cur-
rency value against major currencies
and low oil prices, NCB still has good
opportunities ahead on the back of
the good services it provides. He said
NCB recognised that there could be an
indirect impact on its business following the drop in ringgit and oil prices
as well as the implementation of the
goods and services tax. — Bernama
10 H O M E B U S I N E S S
I N V E S T M A L AY S I A 2 0 1 5
Look beyond
short term in
managing economy
Zeti urges politicians to take a pre-emptive approach
BY JEFFREY TA N
KUALA LUMPUR: Bank Negara Malaysia governor Tan Sri Dr Zeti Akhtar
Aziz has urged politicians to look beyond the near term in managing Malaysia’s economy and its financial
systems.
She said the assessment of national risk requires pre-emptive
measures, which is the “only way”
to manage an economy and the financial system.
“We have to highlight very frequently to the politicians to look beyond the immediate term. If you are
reacting rather than pre-empting,
then you are too late already,” she
told corporate and industry leaders
at Invest Malaysia Kuala Lumpur
2015 yesterday.
“What is key for us is sustainability. You have to look beyond the
immediate term,” she said.
Zeti noted that Malaysia is in
place to improve its fiscal position,
which she admitted is the “one area
of vulnerability” that needs to be
addressed.
She said the country has already undertaken significant reforms
to improve its fiscal deficit, such as
the fuel subsidy rationalisation and
the implementation of the goods and
services tax (GST) early this month.
She pointed out that the subsidy
rationalisation has already generated significant savings of more than
RM20 billion in gross amount.
Similarly, she said the introduction of the GST will also generate a
significant increase in revenue for
the country’s coffers.
Meanwhile, Zeti told reporters on
the sidelines of the event that Malaysia’s growth prospects are bright despite its credit ratings remaining under
pressure from a cut by Fitch Ratings.
The international rating agency
had last month reiterated that Malaysia’s credit rating was more than
50% likely to be downgraded due
to the country’s trade balance and
debt obligations of a state-owned
investment entity.
“If you compare with our peers,
we are at least as good, if not better,
in terms of our growth prospects or
growth performance,” she said.
Zeti said for the last several years,
Malaysia has shown a resilient, solid
financial system and a highly developed bond market.
She added that Malaysia’s fiscal
position has exhibited a reduction
in deficit and its external indebtedness is relatively low compared with
some of its peers in the same rating
category or above.
Minister in the Prime Minister’s
Department Datuk Seri Abdul Wahid Omar said the country’s financial health as rated by Fitch is up to
investors’ perception, noting that
Moody’s and Standard & Poor’s have
a positive and a neutral outlook respectively for Malaysia.
Abdul Wahid also said the government is continuing its efforts to
reduce the country’s dependency
on oil revenue.
He is hoping that oil dependency will be reduced to below last
year’s contribution of about 30% to
national income. “We have been
consistently diversifying the economy to reduce dependency on the
oil and gas sector.”
Mah Sing confident of hitting FY15 sales target
BY SHA L I N I KU MAR
KUALA LUMPUR: Mah Sing Group
Bhd is confident of achieving its sales
target of RM3.43 billion for the financial year ending December (FY15)
as it believes it has the right product
mix, with attractive pricing, in the
right locations.
But as at Wednesday, Mah Sing
(fundamental: 2; valuation: 2.4) had
only chalked up RM761 million in
sales, which founder and group managing director Tan Sri Leong Hoy Kum
said was due to a shorter working first
quarter because of the festive season.
As such, he told reporters that he
was sure the group will be able to
catch up and meet its targeted sales
number this year.
“Our projects will continue to focus mainly on the Klang Valley as the
population in the area is supposed
to increase to 10 million people by
2020,” he said after a briefing at the
Invest Malaysia Kuala Lumpur 2015
conference yesterday.
Greater Kuala Lumpur and the
Klang Valley are expected to contribute about 67% to the group’s sales
this year, while Johor, Penang and
Sabah will contribute 20%, 11% and
2% respectively.
As at Dec 31, 2014, Mah Sing had
unbilled sales of RM5.3 billion, with a
remaining gross development value
of RM43.7 billion.
On future launches, executive director (group corporate and investment) Datuk Steven Ng Poh Seng said
Mah Sing has three project launches
planned in Puchong, Seremban and
Meridin East, Johor, this year.
Ng said 84% of the group’s launches this year will be priced below RM1
million, with 71% priced below
RM700,000 and 44% priced below
RM500,000.
He also said despite cooling measures introduced by Bank Negara Malaysia, there remains a healthy a demand for property.
“We have a very young population. Some 70% of our population
is under the age of 39, as we have a
very healthy employment market
with less than 3% unemployment rate
and decent gross domestic product
growth of 4.5% to 5.5%, as well as a
conducive interest rate environment,”
he said at the briefing yesterday.
“The property sector as a whole is
slow, but there are certain segments
like the mass market [which] is still
going to be okay because there are
still people wanting to buy properties
even though the banks have tightened
their lending,” he added.
On land bank acquisitions, Ng declined to provide details, only saying
that there is no target and that the
group is very selective in the places
it is willing to consider.
Mah Sing shares closed up 1 sen
or 0.48% at RM2.08 yesterday, which
gives it a market capitalisation of
RM3.99 billion.
BNM head signals no
need for Malaysian
rate cut in near future
KUALA LUMPUR: Malaysian central bank governor Tan Sri Dr Zeti
Akhtar Aziz signalled that she sees
no need for an interest-rate cut in
the near future, barring the threat
of a “fundamental” downturn in
the economy.
“We are on a steady growth
path,” Zeti said in an interview yesterday, when asked if she was suggesting Malaysia wouldn’t change
rates in the near term.
“If there was a fundamental economic slowdown, the risk to that
going forward, on the horizon, then
it would prompt a downward adjustment.”
With above 5% growth and inflation near the slowest since 2009,
Bank Negara Malaysia (BNM) has
held borrowing costs steady for four
straight meetings even as dozens
of central banks eased monetary
policy this year.
While the economy unexpectedly quickened in the final
quarter of 2014 on private consumption and investment, the
government has trimmed its forecast for this year as it cuts spend-
Zeti said inflation isn’t a concern at this
point in time. The Edge file photo
ing amid less revenue from oil.
Consumer-price gains may be at
the lower end of a 2% to 3% range
in 2015, and inflation isn’t a concern at this point in time, Zeti said.
BNM kept the overnight policy
rate at 3.25% in March. The next
rate decision will be on May 7. —
Bloomberg
Karex aims to acquire at least
one firm in the next 12 months
BY S UL H I A Z MA N
KUALA LUMPUR: Condom manufacturer Karex Bhd, which is on the
lookout for mergers and acquisitions
(M&A) opportunities in an effort to
build its own-brand business, expects
to acquire at least one company “that
will provide relevant synergies and
complement its existing business,
particularly in the distribution channel”, in the next 12 months, said chief
executive officer Goh Miah Kiat.
“We are in talks with several companies globally. These companies
are healthily growing, but we have
to be mindful that the target company or companies will not be too
expensive, [and the deal is] done
at the right price. The discussion is
pretty interesting, I must say,” he told
reporters on the sidelines of Invest
Malaysia Kuala Lumpur 2015 here
yesterday.
But Goh said the discussion is
still “very much preliminary”, with
no firm agreement sealed.
“We recently raised some RM158
million in a private placement. The
bulk of it will be used to acquire companies that will provide us with synergies, especially in terms of distribution channels. An appropriate
announcement will be made once
it is finalised,” he added.
Early this year, Karex announced
a private placement of up to 40.5 million shares or 10% of its issued capital, as well as a 1-for-2 bonus issue.
Karex had then said that the placement would allow it to save on inter-
est expense, as well as preserve cash
flow for reinvestment or operational
purposes.
As at Dec 31, 2014, Karex has cash
and cash equivalents of RM62.03
million.
On overseas expansion, Goh said
Karex recently opened its office in
Spain, thus further expanding its footprint in Europe. It is also expanding
in the United States.
“We are the [world’s] largest condom manufacturer, holding some
15% of the global market share. With
all the initiatives and investments we
have in place, that is set to increase
over the long run,” he added.
On its annual manufacturing capacity, Goh said it will reach five billion pieces in the next two months.
By 2016, he hopes to increase the
capacity to six billion pieces.
“Our utilisation rate is currently at
76%. It usually hovers between 70%
and 75%, and that is still optimum
for faster response to our customers’
demand,” he added.
As for its earnings outlook, Goh
expects Karex to maintain its momentum this year, with “sustainable
numbers”, driven by various factors
that include economic factors and
family planning.
Currently, sales of condoms contribute 93% to its revenue, followed
by probe covers and lubricating jelly
(4%) and catheters (3%).
The stock closed 1.29% or 4 sen
lower at RM3.07 yesterday, giving it a market capitalisation of
RM2.04 billion.
12 H O M E B U S I N E S S
Mercedes-Benz says new C-Class will be hot seller
BY C H ESTER TAY
SHAH ALAM: Mercedes-Benz Malaysia Sdn Bhd is optimistic that its
newly-launched sedan C-Class CKD
(completely knocked down) will be
welcomed by Malaysians, based on
their response to its previous equivalent model.
“We launched the C-Class CBU
(completely built up) in September
last year, which was a huge success for
us with high orders [so] we are very
optimistic that this (C-Class CKD)
will be a hot seller for us,” Mercedes-
Benz Malaysia sales and marketing
vice-president Mark Raine told reporters after the C-Class Driving Experience event in Shah Alam yesterday.
The new C-Class has two models:
the C200 Avantgarde (RM269,888)
and the C250 Exclusive (RM299,888).
Prices quoted are for on-the-road,
without insurance.
Raine also noted that the luxury
vehicle maker’s products have been
positioned correctly to fit local buyers.
Both models of the rear-wheel
drive sedan house a 2.0-litre tur-
bo-charged engine and features
the Mercedes-Benz’s electronic
stability programme (ESP).
The ESP is a safety system installed to detect driving situations
under critical limits of roadholding,
and brakes individual wheels automatically, which helps the driver
stabilise the vehicle and adjust the
engine output accordingly.
The company claimed that this
system augments the functions of the
anti-lock brake system and acceleration skid control by promoting directional stability and road adhesion.
Raine posing with the new C250 Exclusive at the C-Class Driving Experience event in
Shah Alam yesterday.
Ireka sees early 2015
Aseana investment returns
Shareholders approve disposal of 8.45ha land in Negeri Sembilan to Aeon
THE EDGE FILE PHOTO
BY GHO C H EE Y UAN
KUALA LUMPUR: Aseana Properties Ltd, a London-listed property
developer in which Ireka Corp Bhd
has a 23% stake, plans to sell off
some of its property assets and return capital to shareholders as early
as this year, said Ireka group managing director Lai Voon Hon (pic).
He said the proposal is pending
the approval from Aseana’s shareholders at the forthcoming extraordinary general meeting (EGM) in
June this year.
“I am hopeful that with Aseana’s
plans to realise its assets, we will
be able to get our [share of ] capital returns. Ireka is determined to
continue providing value for our
shareholders and this is the board’s
top priority,” Lai told a post-EGM
press conference yesterday.
He expects Ireka (fundamental:
0.2; valuation: 0.9) to realise some of
the capital returns from its investment
in Aseana over the next few years
when the latter begins to dispose of
some of its property assets.
“As a shareholder, we have been
told it is an ongoing process and
more details will be announced
in the next few months,” Lai said,
adding that a circular will be posted
on the London exchange’s website
after Aseana’s EGM.
He added that Ireka’s investment
value in Aseana was RM230 million.
Ireka had initiated the listing of
Aseana on the London Stock Exchange in 2007. The move allowed
Ireka to undertake property devel-
opment activities in Malaysia and
Vietnam through its subsidiary Ireka
Development Management Sdn Bhd
(IDM), which is the exclusive development manager of Aseana.
Among the projects being managed by Aseana are Seni Mont’Kiara,
Tiffani by i-Zen, 1 Mont’Kiara offices
and retail mall, Four Points by Sheraton Sandakan Hotel and Aloft Kuala
Lumpur Sentral Hotel.
Earlier at the EGM, Ireka shareholders approved the group’s disposal
of a 8.45ha piece of freehold land in
Senawang, Negeri Sembilan to Aeon
Co (M) Bhd for RM53.66 million.
Lai also said Ireka sees its two key
business segments — construction
and property — contributing equally
to the group’s revenue in two years.
The group currently derives 85%
of its revenue from its construction
division and the rest from its property business.
He highlighted that Ireka will
focus on expanding its property
segment going forward.
“The group will launch two pro-
jects this year which have a combined gross development value of
RM380 million. Apart from that,
we also have RM2 billion worth of
projects in the pipeline,” he said.
On its construction segment, he
said the group’s order book stands
at RM1.4 billion, of which about
RM900 billion remains outstanding.
Lai added that the group has no
plans to bid for overseas projects
in the next one to two years.
Ireka shares closed up 4.4% at
83 sen yesterday, giving it a market
capitalisation of RM134.99 million.
Nestle looking to improve export sales
BY SU PRI YA SU RENDRAN
KUALA LUMPUR: Nestle Malaysia
Bhd is looking to improve its export
sales which remain on a downward
trend due to lower demand from affiliated companies in countries like
the Philippines and Indonesia, which
have developed their own manufacturing capabilities.
Nestle Malaysia (fundamental:1.75;
valuation:1.5) managing director Alois
Hofbauer said the food and beverage
group is expanding its current manufacturing capabilities to improve the
performance of its export sales, which
contributes to 20% of its revenue.
“For our financial year ending Dec
31, 2015 (FY15), we will concentrate
on the expansion of our manufacturing capabilities to improve our export
sales, such as the expansion of our instant noodle manufacturing lines in
our Batu Tiga factory (in Shah Alam,
Selangor),” he told reporters after
the group’s annual general meeting
yesterday.
However, he did not say how long
the group will take to turn around
its export sales, but said that even
though export sales continued to see
a slowdown during the first quarter
of 2015, its impact was slower than
in the preceding quarter.
“We believe that the economic
situation in the US and in emerging
markets are improving, hence we are
confident export sales will pick up. We
will also have our new product offerings, such as the Kit Kat Rubies, our
premium chocolate variant which we
plan to export not only to the Asean
region, but also to Europe,” he said.
On the goods and services tax
(GST), Hofbauer said 90% of Nestle
Malaysia’s products are subject to the
consumption tax.
“GST has an impact on consumer
sentiment, therefore we try to give
more value to consumers. For example, for our instant noodle range, we
try to compensate that 6% increase
in price by giving 10% more content
in terms of noodle and garnishing,”
said Hofbauer.
He added that besides tackling
the segment of the consumer market that favours affordable prices,
Nestle Malaysia has also tapped into
the premium market through its premium product offerings such as its
Royale Penang Seafood Curry and
Korean Spicy Braised Beef, which
are part of the Maggi instant noodle
premium range.
On investment plans for FY15,
Hofbauer said this will be a “year of
stabilisation” for Nestle Malaysia,
adding that the group will not be
looking into investing in new plants
but will focus on completing ongoing projects. “We have spent more
than RM350 million in capex (capital expenditure) for FY14. In FY15,
our capex will normalise and will be
somewhere between RM150 million
and RM180 million as it will be utilised to complete ongoing projects
and not for new investments,” said
Hofbauer. He added that the group’s
Sri Muda factory in Shah Alam, in
which it had invested more than
RM200 million previously, is set to be
fully operational by August this year.
‘Malakoff to close
institutional
tranche today’
KUALA LUMPUR: Malaysia’s largest independent power producer Malakoff Corp Bhd plans to
close the institutional tranche of
its RM2.74 billion initial public
offering (IPO) as early as today
on strong response, IFR reported
yesterday. The company initially
planned to close its books for institutional investors on April 29.
The listing is Malaysia’s largest
in almost three years, and Southeast Asia’s second biggest so far
this year after the US$1.7 billion
offering by Thailand’s Jasmine International pcl in February. Most
of the institutional tranches of the
IPO have been set aside for cornerstone and anchor investors,
and shares totalling only US$200
million (RM726 million), including
the greenshoe option, are being
sold under the book-build process,
the Thomson Reuters publication
reported. Malakoff is selling 1.52
billion shares in the RM1.75 to
RM1.80 per share range and the
IPO is likely to be priced at the
top, it added. A Malakoff official
declined to comment. — Reuters
Gadang gets
nod to buy land
in Semenyih
KUALA LUMPUR: Investment
holding company Gadang Holdings Bhd has obtained shareholders’ approval for its proposal to buy
62.84 acres (25.43ha) of freehold
land in Semenyih from Sementar
Properties Sdn Bhd for RM95.8 million cash. Managing director Ling
Hock Hing told Bernama the acquisition by its indirect wholly-owned
subsidiary Crimson Villa Sdn Bhd
is to build a mixed development of
residential units and shop offices.
“Subject to the authorities’
approval, our plan is for a central park surrounded by terraced
and triple-link houses.
“This project is targeted to be
launched by end-2015 with a minimum estimated gross development
value of RM450 million, and we are
looking to increase the value,” he
said after the company’s extraordinary general meeting yesterday.
Ling added that Gadang had paid
around RM9 million for the proposed acquisition with RM86.23
million left to be settled. — Bernama
14 ST O C KS W I T H M O M E N T U M
EWEIN BHD (-ve)
EWEIN (Fundamental: 1.1/3, Valuation: 1.4/3)
triggered our momentum alert on April 2,
when its share price was 59 sen. Yesterday, the
stock was again picked out by our algorithm
with 4.3 million shares changing hand. The
stock closed at 77 sen.
To recap, the company is involved in the
manufacturing of precision sheet metal fabricated parts and plastic injection moulding
products. However, Ewein is diversifying into
property development, after earnings from its
core business more than halved since 2010.
In line with the strategy, the company en-
EWEIN BHD
EWEIN BHD
tered into a joint venture with Consortium
Zenith BUCG Sdn Bhd to develop a 3.67 acre
land in Penang. It received approval for the
building plans at end-March.
The development is expected to commence
in 2H2015 and has a gross development value
of approximately RM800 million. Construction works, including design, construction,
piling and foundation, building and property
fit-out works, installation of air conditioning
units and elevators as well as interior decoration would be sub-contracted to independent
third parties.
Valuation score*
1.40
1.10
Fundamental score**
44.18
TTM P/E (x)
0.41
TTM PEG (x)
1.38
P/NAV (x)
0.69
TTM Dividend yield (%)
152.92
Market capitalisation (mil)
210.93
Shares outstanding (ex-treasury) mil
0.50
Beta
0.43-0.73
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
GE-SHEN CORPORATION BHD (-ve)
GESHEN (Fundamental: 2.2/3, Valuation: 1.1/3)
is involved in the manufacturing of high precision plastic moulded products and components.
The company’s shares rose 5% yesterday,
closing at a historical high of 73.5 sen per share.
Whilst revenue was flattish around RM8490 million between 2010-2014, pre-tax profit
climbed steadily from RM0.8 million to RM5.7
million over the same period. Last year’s profit
was boosted by gain on disposal of subsidiaries, totalling RM1.2 million.
GE-SHEN CORPORATION BHD
On April 17 2015, Ge-Shen issued 30 million
redeemable convertible preference shares.
Proceeds totalled RM18 million, which will be
used to partially fund its purchase of Polyplas
Sdn Bhd. The acquisition will cost RM33.76
million, for a 75% stake.
Polyplas is also involved in plastics manufacturing, and is expected to expand Ge-Shen’s product mix and customer base. The stock is currently
trading at trailing 12-month P/E of 21.0 times and
roughly 1.2 times book value of 61 sen per share.
Valuation score*
1.10
2.20
Fundamental score**
21.04
TTM P/E (x)
1.27
TTM PEG (x)
1.16
P/NAV (x)
0
53.84
76.91
Shares outstanding (ex-treasury) mil
0.72
Beta
0.39-0.70
& profitability
LCTH CORPORATION BHD (+ve)
SINCE LCTH (Fundamental: 2.5/3, Valuation: 1.1/3) was first picked by our algorithm
on February 9, its share price has surged by
50.7% to 52 sen yesterday. This is partly due to
its 4Q2014 earnings results. Net profit jumped
over 12-folds y-o-y to RM6.0 million, despite
sales increase of just 3.6% to RM30.9 million.
LCTH manufactures precision plastic components and fabricates precision mould and
dies. Its clients include Hewlett Packard, IBM,
Dyson Ltd and Bose Corp.
LCTH CORPORATION BHD
LTCH intends to spend up to RM65 million on capital expenditure this year. About
RM30-40 million will be used to purchase land
in Penang as its existing plant there is already
operating at full capacity. It will utilise RM1520 million to build another plant in Johor and
RM3-5 million to replace old machineries.
Balance sheet is solid with net cash of
RM98.6 million or 55.9% of its market capitalisation. However, no dividends were paid
since May 2010.
Valuation score*
1.10
2.50
Fundamental score**
13.66
TTM P/E (x)
(0.75)
TTM PEG (x)
0.94
P/NAV (x)
0
176.40
Shares outstanding (ex-treasury) mil 360.00
1.43
Beta
0.23-0.50
& profitability
(ALL FIGURES IN MYR MIL)
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)
EWEIN BHD
RATIOS
DPS (MYR)
Net asset per share (MYR)
ROE (%)
Turnover growth (%)
Net profit growth (%)
Net margin (%)
ROA (%)
Current ratio (x)
Gearing (%)
Interest cover (x)
Financials
Turnover
EBITDA
Interest expense
Pre-tax profit
Fixed assets - PPE
Total assets
Shareholders' fund
Gross borrowings
Net debt/(cash)
RATIOS
DPS (MYR)
ROE (%)
Turnover growth (%)
Net margin (%)
ROA (%)
Current ratio (x)
Gearing (%)
Interest cover (x)
FY11
FY12
FY13
FY2014Q4
31/12/2011
31/12/2012
31/12/2013
31/12/2014
90.32
9.49
0.13
8.21
5.53
21.66
81.15
78.51
3.3
(39.96)
86.06
8.74
0.43
7.49
5.05
23.05
122.38
81.06
44.46
3.89
51.99
1.69
0.68
2.77
1.65
19.59
124.55
82.15
48.07
21.42
10.82
3.12
0.11
2.53
2.7
18.52
151.64
110.82
45.68
17.64
FY11
FY12
31/12/2011
31/12/2012
31/12/2013
FY13 ROLLING 12-MTH
0.03
0.74
7.16
(23.12)
(39.63)
6.12
6.92
2.78
0
74.21
0.01
0.77
6.33
(4.71)
(8.66)
5.86
4.96
2.88
4.8
20.29
0.01
0.78
2.02
(39.59)
(67.39)
3.17
1.33
3.07
26.07
2.49
0.01
0.53
3.75
(14.06)
107.37
7.75
2.62
6.29
15.91
8.28
FY11
FY12
FY13
FY2014Q4
31/12/2011
31/12/2012
31/12/2013
31/12/2014
89.24
7.77
0.53
1.77
0.76
32.9
42.98
39.52
9.19
(3.38)
89.6
9.04
0.43
3.02
1.78
33.21
44.5
41.04
9.49
(4.25)
83.84
11.1
0.49
4.21
2.2
36.22
48.17
43.56
10.03
(5.29)
16.53
2.62
0.13
2.44
1.28
28.81
49.11
46.57
7.46
(10.84)
FY11
FY12
31/12/2011
31/12/2012
31/12/2013
FY13 ROLLING 12-MTH
0.49
1.96
0.83
235.09
0.86
1.79
1.45
0
14.66
0.51
4.42
0.4
133.12
1.99
4.07
1.57
0
20.83
0.57
5.19
(6.44)
23.36
2.62
4.74
1.47
0
22.61
0
0.61
5.83
3.72
16.53
2.93
5.33
2.12
0
21.18
FY12
FY13
FY14
FY2014Q4
31/12/2012
31/12/2013
31/12/2014
31/12/2014
287.44
(20.17)
0.01
(27.92)
(23.47)
38.39
159.77
158.42
0
(54.61)
206.61
20.05
0
16.89
15.81
18.84
175.32
174.23
0
(107.88)
126.06
15.33
0
12.33
12.91
41.73
188.18
187.14
0
(98.58)
30.85
6.22
0
4.42
5.95
41.73
188.18
187.14
0
(98.58)
FY12
FY13
RATIOS
31/12/2012
31/12/2013
31/12/2014
DPS (MYR)
ROE (%)
Turnover growth (%)
Net margin (%)
ROA (%)
Current ratio (x)
Gearing (%)
Interest cover (x)
0.44
(13.79)
147.11
(8.17)
(13.65)
3.04
0
(3538.63)
0.48
9.5
(28.12)
7.65
9.44
4.87
0
4573.05
0.52
7.14
(38.98)
(18.34)
10.24
7.1
4.44
0
5462.44
Financials
Turnover
EBITDA
Interest expense
Pre-tax profit
Fixed assets - PPE
Total assets
Shareholders' fund
Gross borrowings
Net debt/(cash)
FY14 ROLLING 12-MTH
0
0.52
7.39
(38.98)
(18.33)
10.24
7.34
4.44
0
5109.33
I N V E ST I N G I D E A S 1 5
F R I DAY A P R I L 24 , 20 15 • T HEED G E FINA NCIA L DA ILY
I N S I D E R A S I A’S S TO C K O F T H E D AY
APOLLO FOOD HOLDINGS BHD
APOLLO (Fundamental: 1.45/3, Valuation:
1.4/3) is expected to see a turnaround in
its financial performance after raw material prices declined from record high levels.
Apollo is a manufacturer and exporter of
compound chocolate confectionary products and layer cakes. Exports account for
40-50% of sales and are mainly denominated
in the US dollar. Hence, the strengthening
greenback bodes well for the company.
The company reported the sixth consecutive y-o-y decline in net profit in
3QFYApril2015. Net profit for the quarter
fell 9.3% y-o-y to RM8.2 million, mainly due to higher raw material costs and
tax expenses. However, sales grew 2.6% to
RM55.6 million.
We expect Apollo to record better earnings this year. Prices for cocoa futures fell
18.0% to US$2,699 per tonne at end-March,
after peaking at US$3,290 in Sept 2014. Prices are likely to drop further due to slowing
global demand and expectation of bumper
crop in Ivory Coast, the world’s largest cocoa
producer. Also, sugar prices have dropped
by one-third since June 2014. Prices are
expected to remain low due to oversupply.
The stock closed at RM4.60 yesterday,
down 6.5% since it was first featured in
Nov 2014.
We like Apollo for its undemanding valuations, especially for a consumer company.
The stock is trading at a trailing 12-month
P/E of 14.2 times and 1.5 times book. By
comparison, the domestic F&B sector is
trading at about 27.4 times PE and 3.1 times
book. We expect the company’s profitability
to improve with easing cost pressures and
the strong US dollar.
The company has paid consistently high
dividends. From FY2009-FY2013, dividends
per share averaged 20 sen, and increased
to 25 sen in FY2014, giving an above-average yield of 5.4%. It has a debt-free balance
sheet with net cash of RM81.9 million or a
significant RM1.02 per share.
Insider Asia will feature a new stock pick on every alternate day.
Income Statement
Turnover
EBITDA
Depreciation
EBIT
Associates
Interest income
Interest expense
Extraordinary gain/(loss)
Pre-tax profit
Net profit - owners of company
Balance sheet
Fixed assets - PPE
Biological assets
Intangibles & goodwill
Cash and equivalents
Total current assets
ST borrowings
Total current liabilities
Total assets
Shareholders' fund
Long term borrowings
RATIOS
DPS (MYR)
ROE (%)
Turnover growth (%)
Net profit growth (%)
Net margin (%)
ROA (%)
Current ratio (x)
Gearing (%)
Interest cover (x)
FY12
FY13
FY14
FY2015Q3
30/4/2012
30/4/2013
30/4/2014
31/1/2015
200.55
36.47
9.66
26.8
0
1.58
0
0.21
28.6
21.74
222.9
50.22
9.45
40.77
0
1.68
0
0
42.45
32.08
220.71
50.96
9.89
41.07
0
2.31
0
0.23
43.61
33.47
57.06
14.44
2.73
11.71
0
0.58
0
(0.38)
11.9
8.23
119.28
0
0
56.59
103.06
0
7.61
231.61
214.21
0
116.48
0
0
64.86
121.84
0
8.85
247.34
230.18
0
116.76
0
0
81.8
135.43
0
9.88
259.9
243.67
0
114.56
0
0
81.9
137.41
0
9.48
259.41
242.01
0
FY12
FY13
30/4/2012
30/4/2013
30/4/2014
FY14 ROLLING 12-MTH
0.2
2.68
10.29
13.76
21.79
10.84
9.51
13.54
0
-
0.25
2.88
14.44
11.15
47.55
14.39
13.4
13.77
0
-
0.25
3.05
14.13
(0.98)
4.32
15.16
13.2
13.7
0
-
0.25
3.03
10.63
1.51
(22.88)
11.79
9.94
14.5
0
-
16 B R O K E R S’ C A L L / T E C H N I C A L S
A more positive
longer-term
outlook
BY LEE CHENG HOOI
U
nited States markets edged higher on Wednesday
after better results
from Coca-Cola
Co, McDonald’s
Corp and eBay Inc lifted the
American bourses above their
key psychological levels of 18,000
and 2,100 for the Dow and the
S&P 500 respectively. Bourses
also received a lift as sales data
of previously owned homes
climbed in March 2015 to their
highest level since September
2013. The S&P 500 Index gained
10.67 points to 2,107.96 points
whilst the Dow rose 88.68 points
to end at 18,038.27.
The FBM KLCI moved in a wider range of 22.51 points for the
week with higher volumes of 1.98
billion to 3.13 billion shares traded. The index closed at 1,846.08
yesterday, down 8.69 points from
the previous day as blue-chip
stocks like Genting Bhd, KLCCP
Stapled Group, Kuala Lumpur
Kepong Bhd, PPB Group Bhd and
RHB Capital Bhd caused the index to decline on some late afternoon profit-taking activities.
The ringgit was a touch weaker
against the US dollar at 3.6240 as
Brent crude oil remained steady
at US$60.65 (RM220) per barrel.
The index rose on a rally from
the 801.27 low (October 2008) to
its 1,896.23 all-time high (July
2014) and it represents an extended Elliott Wave “Flat” rebound in a “Pseudo-Bull” rise
completed. The next few months’
index price movements since
July 2014 comprise key swings
of 1,837.28 (low), 1,879.62 (high),
1,766.22 (low), 1,858.09 (high),
1,671.82 (low), 1,810.21 (high),
1,706.18 (low), 1,831.41 (high)
and 1,774.30 (low).
All the index’s daily signals
are mixed at the moment, with
its CCI, DMI and Oscillator indicators showing upbeat readings.
The MACD and Stochastic have
turned slightly negative for now.
As such, the index’s obvious support levels are seen at 1,795, 1,831
and 1,842, while the resistance
areas of 1,846, 1,879 and 1,896
will cap the index’s rise.
The KLCI’s 18-day and 40-day
simple moving averages (SMA)
depict a good uptrend for its daily
chart. The recent price bars of the
index are now also above the 50day and 200-day SMA, and also
positive on that front. With this,
the index has taken on a positive
tone recently.
Due to the good tone for the
KLCI, we are recommending a
chart “buy” on SBC Corp Bhd.
Looking at the most recent announcement of the third quar-
ter financial year 2015 (3QFY15)
results, the group recorded a decline in revenue to RM88.6 million in the nine months of FY15
(9MFY15) from RM110.9 million
in 9MFY14.
Correspondingly, group profit before tax for the period also
fell to RM18.9 million in 9MFY15
from RM33.2 million in 9MFY14.
According to the announcement,
the lower profit recorded was due
to projects nearing their completion last year and the delay in obtaining final planning approval of
the Jesselton Quay project before
3QFY15 results. Going forward,
SBC Corp’s board remains optimistic about its future prospects,
as the Jesselton Quay project is
just about to commence.
A check of the Bloomberg consensus reveals that only one research house covers the stock.
SBC Corp currently trades at a
very low historical price-earnings
ratio of 8.33 times. Its price-tobook value of 0.74 times indicates
that its share price is trading at a
steep discount to its book value.
The company also has an indicated dividend yield of 2.7%.
SBC Corp’s chart trend on the
daily time frame is very firmly
up. Its share price has made a
good surge since its major daily
Wave-2 low of 93 sen on April 9,
2015. Since that 93 sen low, SBC
Corp has surged to its April 2015
recent high of RM1.23.
As prices broke above their recent key critical resistance levels
of 98 sen and RM1.11, look to buy
SBC Corp on any dips to its support areas as the moving averages depict a very firm short-term
uptrend for this stock.
The daily indicators (like the
CCI, DMI, MACD and Oscillator) have issued good buy signals
and now depict firm indications
of SBC Corp’s eventual surge towards higher levels. It would attract firm buying activities at the
support levels of 98 sen, RM1.11
and RM1.17. We expect SBC Corp
to witness some profit-taking at
its resistance areas of RM1.23,
RM1.27 and RM1.44. Its upside
targets are at RM1.35, RM1.46
and RM1.53.
Lee Cheng Hooi is the regional
chartist at Maybank Kim Eng.
The views expressed in the article
are the opinions of the writer and
should not be construed as investment advice. Please exercise your
own judgment or seek professional
advice for your investment decisions. Technical report appears
every Wednesday and Friday.
Steady outlook expected for CIMB Niaga from 2H
CIMB Group Holdings Bhd
(April 23, RM6.15)
Maintain sell with an unchanged
target price (TP) of RM5.50: PT
Bank CIMB Niaga Tbk saw a 92.4%
plunge in the first quarter of financial year 2015 ended March
(1QFY15) net profit to 83 billion
rupiah (RM23.21 million) due to a
spike in provisions, although anticipated. We believe that headwinds
may start ebbing in the second
half (2HFY15), but no meaningful rerating catalysts are in sight.
We maintain our “sell” rating on
CIMB Group, with an unchanged
TP of RM5.50.
On a quarter-on-quarter (q-o-q)
basis, the extent of provisions, however, decreased by 26%, resulting in
a q-o-q rebound in net profit (up
80%). The quarter of heavy provisioning in 1QFY15 (from the coal
and related sectors) had again almost wiped out the entire pre-pro-
vision operating profit, similar to
4QFY14, but had been well-anticipated as the management has
cautioned this since 3QFY14. For
1QFY15, weaker non-interest income was 29.4% lower y-o-y (impacted by weaker treasury market
and the bancassurance fee cap)
while net interest income edged
up 10.8% y-o-y, on the back of an
increase of 9.6% y-o-y loan growth
and steady net interest margin at
5.22%.
Operationally, we expect a more
steady outlook for CIMB Niaga from
2HFY15, underpinned by a lowteens loan growth rate, driven by
the consumer banking division
and selective focus on high quality
commercial/corporate customers
(in anticipation of increased government infrastructure spending).
Meanwhile, we remain cautious
about CIMB Niaga’s asset quality,
as the management has also indi-
cated that credit cost will remain CIMB Group Holdings Bhd
elevated in the near term given its
high standards of provisioning.
2013
FYE DEC 31 (RM MIL)
We reiterate our “sell” rating on Total income
14,146.6
CIMB Group at an unchanged TP of
6,214.0
RM5.50, based on an implied price- PPOP
5,849.2
to-book value (P/BV) target of 1.0 Pretax profit
times. At this juncture, we still do Net profit
4,540.4
not foresee strong rerating catalyst
EPS (sen)
60.0
for CIMB Group — the outlook in
Core
net
profit
4,197.1
2015 does not appear compelling
for either the financing or capital Core EPS (sen)
54.8
markets.
Core EPS growth (%)
(6.3)
Though impaired loan allow11.4
ances are expected to start easing Core PER (x)
15.5
from 2HFY15 for CIMB Group, we ROE (%)
remain cautious about the asset BVPS (RM)
3.92
quality front and keep our credit
PBV (x)
1.59
cost assumptions at 48 basis points
23.8
(bps) for 2015E (estimates) and 27 Net DPS (sen)
to 30bps for FY15 to FY16E. Key Dividend yield (%)
3.8
upside risks include a turnaround Change in EPS (%)
in global economy and the capital
Affin/Consensus
(x)
markets as well as credit recoveries.
Source: Company, Affin Hwang estimates
— Affin Hwang Capital, April 23
2015E
2016E
2017E
14,048.0 14,385.6
2014
14,922.9
15,172.9
6,578.3
5,854.0
6,554.5
6,415.6
4,276.4
5,373.6
5,706.1
5,910.7
3,106.8
4,0111
4,258.6
4,409.9
37.5
47.6
50.6
52.4
3,155.3
4,011.1
4,258.6
4,409.9
52.4
38.1
47.6
50.6
(30.6)
25.1
6.2
3.6
16.4
13.1
12.3
11.9
9.2
10.4
10.3
10.1
4.44
4.74
5.05
5.36
1.41
1.32
1.24
1.16
15.0
19.0
20.2
20.9
2.4
3.1
3.2
3.4
-
-
-
-
-
1.0
0.9
0.9
18 H O M E
After Pota, an offer to
engage with civil society
But move appears to be at odds with passing of controversial antiterror bill
BY EL I ZA B ET H ZACHARIAH
PUTRAJAYA: The government wants
to be more inclusive of civil society,
said Minister in the Prime Minister’s
Department Datuk Paul Low yesterday — but such an offer appears
to be at odds with the passing of a
controversial antiterror bill and a
complaint by the Human Rights
Commission of Malaysia (Suhakam)
that it was not consulted over it.
Low said civil society could
engage with the government on
“everything and anything” that affected them, whether it was about
a law or an issue, but the minister
could not explain what this meant
for the Prevention of Terrorism Act
(Pota), which was passed in the
Dewan Rakyat earlier this month.
While acknowledging civil society’s criticism of Pota, Low could
not say if this meant that Putrajaya
would hold back on enforcing the
law until further discussions have
taken place.
“I’m not saying that. What I’m
saying is that the government is
open to listen to anything. This is
the engagement the government
wants to give,” he said after the Asean People’s Forum in Kuala Lumpur
yesterday.
Low was asked by The Malaysian
Insider at a press conference about
Suhakam’s contention that it had
not been engaged before the Pota
was tabled in the Dewan Rakyat.
“I don’t want to say [anything]
about Suhakam,” said Low, who is
the minister in charge of governance, integrity and human rights.
When asked why it had taken
the government so long to engage
with civil society, Low said things
were changing.
“There are a lot of things that
we want the government to do but
I think things are changing. From
what I can sense, the government is
thinking of a platform that is more
inclusive of civil society ... which I
think is very positive.
Low said he might be the one
leading such an initiative to help
Putrajaya engage more with civil
society.
“Yes … in time to come. I will try
to get the government itself to have
dialogues on any issues ... Because
it’s an inclusiveness that the government should be embarking on.”
Earlier in his speech at the forum,
Low acknowledged that the Pota
and other draconian laws such as
the Sedition Act had come under
criticism from members of civil
society.
“I know they feel some of the
laws are too tough. But I think we
can begin to engage the government
even in this area,” he said to some
1,000 people at Wisma MCA.
“And I can speak on behalf of
the Malaysian government, that we
can look at how best, in the future,
to adjust and amend to come to a
balance.”
Low said Putrajaya had received
a lot of flak recently on its record on
human rights, but added that the
same freedom accorded to people
in other countries like those in Europe could not be accorded here.
“There needs to be an understanding that societies are different
in maturity, education and more,”
he said.
This did not mean the government was above any criticism, Low
said, but that freedom of speech
came with responsibility.
“And the government must be
open to listen,” he added. — The
Malaysian Insider
Another moderate PAS leader sidelined
BY ZU L K I FL I SU LONG
PETALING JAYA: Dr Abdul Rani
Osman is the man who has successfully led Selangor PAS to its
best performance in the state chapter’s history. Yet, he lost in his own
division elections, and it appears
that he was given the cold shoulder
for not being an ulama or religious
scholar.
His experience gives a glimpse
of the larger scenario the Islamist
party is facing based on the line-up
of nominations for the party’s top
posts, a process which concluded
last week ahead of PAS’ muktamar
or general assembly in June.
The Meru assemblyman was
defeated in the race for the party
division head of Kapar by his former deputy Najhan Mohd Salleh,
receiving 114 votes compared with
Najhan’s 282 votes.
Abdul Rani joins former Perak
menteri besar Datuk Seri Mohamad Nizar Jamaluddin, who was also
defeated in Kampar, Perak, and PAS
commissioner for Melaka, Adly Zahari, who was defeated in Alor Ga-
Abdul Rani (left)
with Tuan Ibrahim,
who is regarded as
an ulama. Their
close friendship,
however, is no
guarantee that
moderates such
as Abdul Rani will
have the backing of
the Islamist party’s
ulama supporters.
Photo by The
Malaysian Insider
jah, by their respective contenders
comprising those considered to be
part of the ulama group.
A day before PAS Kapar’s annual
general meeting, the diminutive Abdul Rani was asked by The Malaysian
Insider about his election preparations. “I have never cared and never
discussed matters on the division
election. Let them be,” he said.
That is the style of the medical
doctor, who graduated from Egypt.
Abdul Rani’s record speaks for itself.
As the Selangor PAS commissioner, he led the Islamist party in its best
performance and created history by
garnering 15 state seats in the 13th
general election (GE13), compared
with only eight in the previous polls.
However, due to his lack of interest
in becoming a prominent leader, Abdul Rani wrote to PAS president Datuk
Seri Abdul Hadi Awang, requesting
not to be appointed the Selangor
commissioner after GE13.
Abdul Hadi then appointed Datuk Iskandar Samad to replace him.
Abdul Rani started out as a PAS
candidate in Meru in the 2004 general election, but lost. He subse-
quently won the seat in 2008, and
retained it in 2013 with a bigger
majority, from 5,513 votes to 9,079.
Despite being close friends with
party vice-president Datuk Tuan Ibrahim Tuan Man, regarded as an ulama,
supporters of the ulama group have
never considered Abdul Rani one of
them. Although he is also known to
give religious lectures, he is still not
considered an ulama.
They could not accept him as
they have accepted Tuan Ibrahim,
who received the highest number
of nominations for the deputy president’s post. As of last week, Tuan
Ibrahim received 59 nominations
to contest the PAS deputy president’s post, compared with only
nine nominations for incumbent
Mohamad Sabu.
But Abdul Rani said he was not
bothered about his loss as the Kapar
division head because he never
asked for it in the first place.
“Alhamdulillah (Praise be to
God), another one of my burdens
gone,” he told The Malaysian Insider when informed about the result.
— The Malaysian Insider
Federal Court upholds death sentences for five in drug case
PUTRAJAYA: Malaysia’s highest court
yesterday upheld the conviction and
death penalty of three Mexican brothers, a Singaporean and a Malaysian
in a high-profile drugs case.
The Gonzalez Villarreal brothers
— Luis Alfonso, 47, Simon, 40, and
Jose Regino, 37 — were arrested in
March 2008 at a factory in Johor
where police found 30kg of meth-
amphetamine and equipment to
make drugs.
The siblings insist that they were
merely working as a clean-up crew
and that they were unaware drugs
were being made in the factory.
Drug trafficking carries a mandatory death sentence by hanging
upon conviction in Malaysia. They
were sentenced in May 2012 and
the ruling was affirmed a year later.
“Our decision is unanimous. Appeal dismissed against all five defendants,” Federal Court judge Zulkefli
Ahmad Makinudin told the court.
The Mexican foreign ministry
said it had “repeatedly expressed [to
Malaysian authorities] Mexico’s position against capital punishment”.
The brothers are from Culiacan,
capital of the northwestern state of Sinaloa, which is known as the bastion
of the powerful Sinaloa drug cartel.
The defendants included Singaporean citizen Lim Hung Wang, 56, and
Malaysian Lee Boon Siah, 51.
Lawyers for the Mexican brothers said they would seek a judicial
review of the case by the Federal
Court. — AFP
MCMC wants
Google to block
Tan’s YouTube
account
KUALA LUMPUR: The Malaysian Communications
and Multimedia Commission (MCMC) has requested Google Inc to block the
YouTube account of blogger
Alvin Tan for uploading provocative contents on social
media.
Bernama reported that
Deputy Communication and
Multimedia Minister Datuk
Jailani Johari said the commission would also liaise
with the Attorney-General’s
Chambers for the blogger’s
extradition to Malaysia as he
is now living in the United
States.
“I am made to understand
MCMC has taken action by
sending a letter only as the
contents were uploaded
abroad.
“We (MCMC) have requested Youtube to delete all
of Alvin’s pictures and videos
and the relevant party is doing it,” he told reporters at the
Parliament lobby yesterday.
Tan is in the US, where he
is trying to obtain political
asylum in an attempt to evade
being charged with various
offences.
These include uploading
contents that insulted Islam
and the Malay rulers on his
Facebook account, punishable under the Sedition Act
upon conviction.
Recently he uploaded a
three-minute video entitled
Muslim Call to Prayer — Azan
(R&B Cover) on his Facebook
page, which drew mixed reactions. — The Malaysian
Insider
Suhaimi is BN’s
Permatang Pauh
candidate
BUKIT MERTAJAM: Permatang Pauh Umno division secretary Suhaimi Sabudin has
been named as the Barisan
Nasional (BN) candidate for
the Permatang Pauh parliamentary by-election.
BN deputy chairman Tan
Sri Muhyiddin Yassin made
the announcement at a ceremony yesterday to announce
the candidate.
Suhaimi, 43, from Guar
Jering is a managing director
of a construction company
and the former Guar Jering
deputy chief of Umno Youth.
The father of four received
his early education at Sekolah
Kebangsaan Guar Perahu and
Sekolah Menengah Penanti,
Permatang Pauh, before furthering his studies at Universiti Sains Malaysia (USM) in
Penang.
He holds a bachelor’s degree in housing, building and
planning from USM. — Bernama
2 0 P R O P E RT Y
DR Horton results
signal return of firsttime US home buyers
as sales in the 25 to
33 age group triple
BY SAGARIKA JAISINGHANI
& A N K IT A J ME R A
The Design Village Penang will offer a single-storey open-air mall with luxury and premium brands. Photos by PE Land
DR Horton Inc’s quarterly results gave
a strong indication that first-time home
buyers are finally returning to the market
as home ownership in the United States
becomes cheaper than renting.
This will come at a cost to the largest US home builder’s profit margins in
the short term, as its low-priced homes
account for a much greater proportion
of sales.
Longer term, higher demand from
Americans in the 25 to 33 age group will
be significant for the housing market,
indicating underlying strength and the
promise of a more steady recovery seven
years after the global financial crisis struck.
DR Horton said sales to this demographic tripled in the quarter ended
March 31, helped by more relaxed mortgage rules and rising confidence in the
wider economy.
“There are signs that the first-time
buyer is starting to turn the corner,” said
Morningstar Inc analyst James Krapfel.
First-time home buyers accounted for
about 30% of US home sales last month,
according to the National Association of
Realtors.
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BY WONG KI NG WAI
PENANG: The Design Village premium
outlet mall development in Batu Kawan,
Penang is on schedule for a Christmas
2016 opening, said PE Land (Penang) Sdn
Bhd. Previously named Penang Designer
Village, the name change is to reflect the
collaborative design efforts of the mall,
Savills Malaysia managing director and
retail development adviser for the project
Allan Soo told reporters at the press conference on the launch of Design Village’s
construction phase in Penang yesterday.
Besides the mall, the development will
also include a hotel and condominium
blocks. The total estimate gross development value for the entire project is in excess of RM1 billion.
The single-storey open-air mall features
weather-protected walkways and tropical
landscaping. Luxury and premium brand
anchor stores will be situated in distinctive
“jewel box” design lots.
Soo said the mall will have a “loop system” making every lot accessible to shoppers.
He said the Design Village is being built
at a development cost of RM300 million
and will have net lettable area of 400,000 sq
ft and contain 150 stores. The tenants will
be a mix of luxury and premium brands.
There will also be F&B outlets. So far, the
tenants that have signed a memoradum of
understanding include Hugo Boss, Armani Exchange, Calvin Klein, DKNY, Esprit,
Samsonite, and Starbucks.
Soo said with the support of the Penang
Development Corp, there will be no other
outlet mall in Batu Kawan, making any of
the brands that sign up for a lot having exclusivity in the area.
Design Village is looking to attract 5.7
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Homes are seen for sale in the north-west
area of Portland, Oregon. Photo by Reuters
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From Left: Soo, Joanna, PE Holdings Sdn Bhd managing director James Ling, Pansar Bhd managing
director Jason Tai, PE Land general manager Ronald Ling and Savills Malaysia executive chairman
Christopher Boyd.
million people in the northern region and,
according to Soo, the over six million tourists who visit Penang.
PE Land’s executive director Joanna Ling
said: “Conservatively, we will be creating
about 900 jobs at Design Village where
most of the employees will be local … We
are thinking of setting up a training institute to raise the level of retail service.” The
construction of the mall is at the moment
about 10% completed, she said.
Design Village will be a short distance
from Penang’s second bridge, the Sultan
Abdul Halim Muadzam Shah Bridge.
Help in Design Village’s concept will also
come from Seiichi Mizuno, former president
of Seibu department stores and also senior
retail and brand adviser for Roppongi Hills
and Omotosando Hills.
Also chipping in is Richard Hsu, who is a
professor at Graduate school of Design and
Innovation at Tongji University in Shanghai,
and senior advisor to PE Land. Finally, Joe
Sidek, the organiser of the annual George
Town Festival, will work with Hsu to develop the creative and art design village.
PE Land (Penang) is a subsidiary of PE
Land, the engineering, construction, retail
and property development arm of Borneo-based conglomerate Pan Sarawak Holdings. It is also the developer of The Spring
Shopping Centre in Kuching.
Though this is below the 40% to 45%
that the industry generally agrees is needed for a strong housing recovery, the share
is growing as more young Americans
qualify for mortgages and soaring rents
motivate them to buy homes.
The federal government has made
mortgages more attractive by lowering
premiums on loans insured by the Federal Housing Administration, as well as
proposing rules to allow downpayments
of as low as 3%.
Low mortgage rates have also spurred
demand, making it cheaper to own homes
in some markets than to rent, said Michael Nunziata, vice-president at 13th
Floor Investments, a Miami-based real
estate investment firm.
Analysts said DR Horton is better positioned than its peers to capture demand
from first-time home buyers, thanks largely to its aggressive marketing.
The company’s lower-priced “Express”
communities, designed for first-time buyers, are expected to account for up to 30%
of total home sales in the “foreseeable
future”, chief executive David Auld said.
This compares with 5% in 2014.
Although this will dent profit margins
in the near term, the increase in buyers is
likely to boost the company’s profit — especially when it no longer needs to spend
so much on acquiring land. — Reuters
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P R O P E RT Y 2 1
F R I DAY A PR I L 24 , 20 15 • T HEED G E FINA NCIA L DA ILY
Tropicana to launch Phase 1 of
Tropicana Aman this month
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KUALA LUMPUR: Property developer Tropicana Corp Bhd will launch the first phase of its
Tropicana Aman (formerly Canal City) mixed
township in the vicinity of Kota Kemuning in
Shah Alam, Selangor this month.
The first phase of the development with
a gross development value (GDV) of RM13
billion features 432 units of 2- and 3-storey
terraced houses.
Besides Tropicana Aman, the property
developer is expected to launch two or three
new projects in 2015.
Yesterday, Tropicana signed a partnership
agreement with Tenby Schools to build an international school campus at Tropicana Aman.
The construction cost is estimated at RM45
million. It is due to be completed by 2018.
“The international school will be a catalyst for our buyers to buy [properties] at the
[Tropicana Aman] development,” Tropicana
group chief executive officer Datuk Yau Kok
Seng told a press conference after the signing
ceremony.
On the dispute over the group’s purchase
of the land with the Selangor government and
the terms of its settlement, Yau said, “All issues
have been resolved”.
To recap, the Tropicana Aman land was
initially sold by the Selangor government for
RM587 million at a value of RM18.50 per sq ft
payable in 12-year instalments to Tropicana’s
wholly-owned subsidiary, Sapphire Index Sdn
Bhd (SISB) in 2013.
Under that agreement, the state government
was entitled to a 5% GDV share and 3% profit
share, amounting to a total of RM1.3 billion
payable over 20 years. However, 11 months
after the sale and purchase agreement was
signed, SISB sold 308.72 acres(124.9ha) of land
to Prominent Stream Sdn Bhd, a wholly-owned
subsidiary of Eco World Development Sdn Bhd,
at a value of RM35 per sq ft or RM470 million,
with a net profit of RM170 million.
After public uproar over the deal, the Selangor government renegotiated new terms
of the land sale.
Recently, Selangor Menteri Besar Datuk
Mohamed Azmin Ali was reported as saying
that a new agreement had been signed.
It was reported that the new terms of agreement are that the state government is now entitled to a 9% share of the land GDV, with the
payment period shortened from 20 years to
12 years, and that SISB is barred from selling
the land to third parties.
Sold
Two-storey semi-detached house at
SS3/16, Petaling Jaya, Selangor
Built-up: 3,300 sq ft; Land area 3,233 sq
ft; 4+1 bedrooms; 4 bathrooms; Freehold;
RM2 million
The house has been rebuilt and extensively
renovated, and comes partly furnished with
built-in cabinets, walk-in wardrobe and kitchen cabinets. It is in a guarded neighbourhood.
Nearby amenities include neighbourhood
shops, recreational and sporting facilities,
schools and public transportation.
Sale concluded by: Cindy Wai of Reapfield
Properties (Taman Sea) Sdn Bhd (012) 533 4172
Condominium unit at Villa Orkid,
Segambut, Kuala Lumpur
Built-up: 1,577 sq ft; 3+1 bedrooms; 3 bathrooms; Freehold; RM740,000
This intermediate unit is currently tenanted
and comes with two parking bays. It is fully
furnished, with each room having a wardrobe and air-conditioning unit. The kitchen
is equipped with kitchen cabinets, hood and
hob. Facilities include a barbecue area, cafeteria, covered parking, gymnasium, Jacuzzi,
jogging track, playground, sauna, swimming
and wading pool, and 24-hour security.
Sale handled by: Denson Khoo of MBI Realty
Sdn Bhd (012) 210 6680
BY L I M KI A N WEI
Halimah (left) giving her keynote address at the National Affordable Housing Summit 2015. Sharing the stage
are Cheah and REI Group of Companies chief executive officer and co-founder Dr Daniele Gambero. Photo by
Mohd Izwan Mohd Nazam
es we are focusing on are securing finances,
The summit’s main sponsors are S P Sedesigning inclusive communities and [us- tia Bhd, Mah Sing Group Bhd, Boustead
ing] the right technologies to build more Holdings Bhd and Selangor State Develaffordable housing.”
opment Corp.
Hundred East hits take-up rate of 40%
BY EL EN A T U NKU SHERIE
KUALA LUMPUR: Phase 1 of TH Properties
Sdn Bhd’s Hundred East in Bandar Enstek
has sold 40% of its units since its launch in
December last year.
The 5,119-acre (2,071ha) Bandar Enstek
is TH Properties’ flagship project. Located in
Negeri Sembilan, Bandar Enstek has a gross
development value of RM9.2 billion. More
than 50% of the township has been developed and it is due to be completed in 2025.
TH Properties will be unveiling and showcasing its Hundred East show unit tomorrow
and Sunday.
“Hundred East provides not only premium, extra-large spaces but is also very
competitively priced,” said senior manager
of marketing and sales Mohd Adlee Yusof.
Phase 1 of Hundred East features 48
units of 2-storey houses with lot areas of
24ft x 75ft and 26ft x 80ft. The former have
built-ups ranging from 2,232 sq ft to 2,366
sq ft and are priced from RM574,400, while
the latter’s built-ups are from 2,382 sq ft
to 2,420 sq ft, with prices starting from
RM623,400.
“With an attractive sales package cou-
How much is your property worth?
Which and what property has just been
sold, and for how much? What interesting
buys are now on the market? Check out
the following Hot Deals of the week.
Go to www.theedgemarkets.com for more.
On the market
Property developers urged to go green
KUALA LUMPUR: Malaysian property developers can halt the degradation of the environment and go green by improving their
corporate social responsibility practices, said
Deputy Minister of Urban Well-Being, Housing and Local Government Datuk Halimah
Mohamed Sadique.
Halimah said this in her keynote speech
at the National Affordable Housing Summit
2015 yesterday.
The summit was jointly organised by REI
Group of Companies and the Asian Strategy & Leadership Institute (Asli) to address
issues on affordable housing and green
development. Some 140 participants from
the housing industry attended the seminar.
Halimah stressed that all property developers, not just the big players, should
go green.
“We don’t know what we have until we
lose it. Hence, it is crucial that we take steps
to curb unnecessary degradation of the environment,” Halimah said.
In her opening speech, Asli director Puan
Sri Dr Susan Cheah said: “The key challeng-
HOT DEALS
An artist’s impression of the Hundred East development. Photo by TH Properties
pled with a competitive selling price and
easy accessibility, we are confident of the
demand in light of the responses we have
received so far,” he said.
The development is near the Kuala Lumpur International Airport and klia2. Amenities include an 18-hole golf course, a neighbourhood mall, public park, schools and
high-speed rail connectivity by the year 2020.
Bandar Enstek consists of four components: residential, commercial, institutional
and industrial. Other launches this year in
Bandar Enstek include five units of premium bungalows, 32 units of semi-detached
homes and bungalows, and 21 units of 2and 3-storey shop offices.
WHAT’S
HAPPENING &
WHERE
Hermitage Showcase Date: Tomorrow and Sunday
Venue: Hermitage Sales Gallery, Plaza
Damas, Jalan Sri Hartamas 1, Sri
Hartamas, Kuala Lumpur
Time: 10am to 6pm
Contact: (03) 6201 3330/(019) 918 9663
Developed by Mayland Universal Sdn Bhd,
Hermitage comprises serviced apartments
and is located in Sri Hartamas. Prices start
from RM483,000.
Property GST and taxation talk
Date: Sunday
Venue: Southville City Sales Gallery &
Show Village, Bangi, Selangor
Time: 1.30pm for the talk, with opening
hours at the show gallery from 10am to
6pm
Contact: (03) 8938 2776/(012) 235 1805/
(017) 273 8888
The talk is organised by Mah Sing Group
Bhd. The final tower of the freehold Savana
Executive Suites is also open for sale.
Temasya 8 in Temasya Glenmarie opens
for registration
Venue: Temasya Glenmarie Sales
Gallery, 6&8 Jalan Kurator
U1/61,Temasya Glenmarie, Shah Alam,
Selangor
Contact: (03) 5569 6100/(03) 5569 7100
Temasya 8 is developed by I&P Group and
is located in Temasya Glenmarie. It is near
various mature areas such as Subang Jaya,
Petaling Jaya and Kuala Lumpur. The area
will also have a light rail transit station in
the near future.
22 H O M E
Najib: Avoid a
show of force in
South China Sea
To prevent military clashes in the waters concerned
P U T R A JAYA : Ma l ay s i a ha s
asserted that countries involved in the overlapping maritime territorial claims in the South
China Sea must avoid a show of
force so as to prevent any military
clashes in the waters concerned.
Prime Minister Datuk Seri Najib Razak said given that the overlapping claims are a very complex
and sensitive issue, they should be
handled with prudence based on
the principle of consultation and
international law.
“We should have consultation
without the show of force or raising
tensions or any force tactics against
smaller countries involved,” said Najib
in an interview with Bernama ahead
of the 26th Asean Summit, which will
be held in Kuala Lumpur and Langkawi on April 26 and 27.
The overlapping claims involving Brunei Darussalam, the Philippines, Malaysia and Vietnam, apart
from China and Taiwan, are among
standing issues that are expected
to be raised at this summit.
“I cannot deny there are differences in opinion and maybe to
some extent bilateral tensions, but
overall it is still manageable and
we can play our roles in the Asean
context until a form of resolution
is reached,” he said.
Najib also stressed that the
declaration of conduct that was
agreed upon in 2002 should be
translated into a code of conduct
as a guide for all parties to avoid
any friction or conflict in the disputed region.
So far, however, there is no consensus on the code of conduct
which should be followed by the
countries involved.
It was earlier reported that the
draft of the code of conduct had,
among other things, suggested a military training guide and ways to avoid
incidents in the disputed region.
Najib also said it is important to
settle the problem based on the rule
of law through instruments such as
the United Nations Convention on
the Law of the Sea, which outlines
the principle of settlement of any
claims on the basis of compliance
with the law.
“Any question on territorial claims
between two countries on a bilateral
basis is indeed complex, what more,
one of a multilateral issue involving
several countries ... Of course, it becomes more complex and multidimensional,” said Najib. — Bernama
WITH THE PEOPLE ... Barisan Nasional candidate for the Rompin by-election Datuk Hasan Arifin (right) joining patrons at
a restaurant during lunchtime while on the campaign trail in the constituency yesterday. Hasan faces PAS candidate Nazri Ahmad in the
by-election on May 5 following the death of Tan Sri Dr Jamaluddin Jarjis in a helicopter crash on April 4. Photo by Bernama
Constitution gives appellant freedom
to use ‘Allah’, court told
BY V A N B A L AG A N
PUTRAJAYA: Sarawakian Christian Jill Ireland is free to practise
her religion, including using the
word “Allah” in any part of Malaysia because the Federal Constitution guarantees that right, the
Court of Appeal heard yesterday.
Her lawyer Lim Heng Seng said
although Islam is the religion of the
federation, other religions may be
practised in peace and harmony
in any part of the country.
“This is the intention of the
framers of the constitution when
Sabah and Sarawak were parties in
the formation of Malaysia,” he said.
Submitting in a cross-appeal
filed by Ireland to exert her constitutional right, Lim said Parliament could impose restrictions
on fundamental rights by enacting laws against subversion and
acts prejudicial to public order,
but not on freedom of religion.
Lim said if Sarawakians and
Sabahans were allowed to use the
word “Allah” in those territories,
it would be absurd to stop them
in other parts of Malaysia.
“So Jill, who is from Sarawak,
can practise her religion and use
the word ‘Allah’ unimpeded in any
part of Malaysia,” he said.
Last year, the High Court in
Kuala Lumpur ordered the Home
Ministry to return eight CDs containing the word “Allah” to Ireland.
The government is appealing
against that order.
Judge Datuk Zaleha Yusof last
July ordered the return of the CDs
to Ireland, a Melanau clerk who
had brought them from Indonesia, but the government managed
to obtain a stay to retain them on
grounds of public interest.
In 2008, Home Ministry officials confiscated the CDs from
Ireland at the then low-cost carrier terminal in Sepang.
The CDs, which Ireland bought
for personal use, had titles such
as “Cara Hidup Dalam Kerajaan
Allah”, “Hidup Benar Dalam Kerajaan Allah” and “Ibadah Yang Benar Dalam Kerajaan Allah”.
She had also asked for a declaration, saying that she had a
legitimate expectation to exercise the right to use “Allah” and
to continue to own and import
such materials.
Ireland’s legal team argued
that the case was not about Christianity against Islam, but about
her constitutional right as a bumiputera Christian.
Putrajaya submitted that the
home minister had exercised his
power under the Printing Presses and Publications Act (PPPA)
1984 to withhold the material if
it was likely to be prejudicial to
public order.
Lim said yesterday the Christians, mostly natives and bumiputera in both states, have used
the word “Allah” in their religious
practices and education since
1647.
Meanwhile federal counsel
Shamsul Bolhassan, appearing for
the government, said the home
minister was guided by a 1986
government directive that prohibited Christian publications
from using “Allah”, “kaabah”, “solat”
and “baitullah”.
He said the reasons were
pegged on grounds of preventing misunderstanding between
Christians and Muslims that
could lead to threats to national
security and public order.
“That order dated Dec 5, 1986,
is still in force,” he said, adding
that it was a pre-emptive strike
by the minister, who did not want
to wait for violence to break out.
Shamsul said the decision to
withhold the CDs under the PPPA
was conveyed to Ireland in a letter
signed by Suzanah Muin on July
7, 2008, on behalf of the minister.
He added that Ireland’s constitutional rights took a back seat
because the minister’s decision
was based on national security
and public order.
In reply, Lim said Ireland wanted a declaration that the minister
could not rely on the 1986 order
and he could not use the PPPA to
curtail her constitutional rights.
He said the minister did not
exercise his power properly and
no reason was given for why the
CDs were classified as a threat to
public order or in breach of Department of Islamic Development
Malaysia (commonly referred to
as Jakim) guidelines.
The three-member bench
chaired by Tengku Maimun Tuan
Mat deferred its decision. — The
Malaysian Insider
Church can put up cross, says Selangor MB
BY JAMILAH KAMARUDIN
SHAH ALAM: The church at the centre of Sunday’s Taman Medan protest
can put up its cross, said Selangor
Menteri Besar Mohamed Azmin Ali.
He said the cross is a sacred symbol to the Christians and people
of other faiths would have to respect that.
“Yes, it is not a problem. In fact,
the question is, why was the church
forced to remove it?
“This is because the cross is a
sacred symbol to the Christian
community and society has to
respect that,” he told reporters at
the state secretariat building in
Shah Alam yesterday.
Mohamed Azmin also said stern
action must be taken against those
who protested against the church,
as the action was unacceptable.
He said in Selangor, citizens of different faiths must respect each other.
On Sunday, some 50 Taman
Medan residents staged a protest
in front of the church, demanding that the cross displayed on the
building be removed. The protesters
said that the cross was a challenge
to Islam and would sway the faith of
the youth in the Muslim-majority
neighbourhood.
On Wednesday, Taman Lindungan Jaya Umno branch chief Datuk
Abdullah Abu Bakar, who is the elder brother of Inspector-General
of Police Tan Sri Khalid Abu Bakar,
was questioned by the police for
almost three hours over the protest.
Driven by fear to remove the
cross, the church is now seeking
police protection to prevent similar
incidents in future.
A representative of the church
told the police that she had been
filled with fear by the angry demeanour of one of the protesters, who directly confronted her
that day and demanded that she
take down the cross.
“One of the other men was wearing a red baju melayu with a black
songkok. He looked very angry and
said to bring the cross down now
[turunkan sekarang],” she told police on Tuesday.
“I looked at him ... and said that I
would do it because I was fearful for
my and my members’ safety, and I
just wanted to defuse the situation.
I felt his anger and I was distressed
and was fearful about my people’s
safety.”
The Sabah Council of Churches has urged the police not to take
action against the protesters, say-
ing that to penalise and humiliate
them would breed more hatred.
Instead, it urged Putrajaya to foster interfaith understanding among
Malaysians and fight the ignorance
that sparks such protests.
“The fact that the true meaning
of the sacred symbol of our Christian faith could be distorted in this
manner shows just how deeply the
mistrust and misunderstanding
have developed among us.
“This — above everything else
in this unfortunate episode — truly fills our hearts with sorrow,” said
its president, Reverend Datuk Jerry
Dusing. — The Malaysian Insider
COMMENT 23
A timely dose of discipline
Defaults bring a market reality that China’s economy sorely needs
BY THE ED I TORS
S
o far this week, China has
witnessed a default by a
major property developer
and another by a stateowned company. Dubious firsts, to be sure, but
they couldn’t have come at a better
time. They provide a dose of market
discipline that China sorely needs.
The country’s 7% growth in
first-quarter gross domestic product
(GDP) can’t mask the flashing-red
indicators that its economy is running into trouble. Industrial output,
fixed-asset investment and retail
sales have all slowed; land sales
are contracting. The industrial sector’s 6.1% growth outpaced retail
and wholesale trade, according to
Bloomberg Intelligence, suggesting
that the vaunted shift from manufacturing to services isn’t happening
as hoped. Prices are falling almost
across the board.
All this bad news puts pressure
on Beijing to do more to stimulate
the economy. Last weekend, the
People’s Bank of China issued a
bigger-than-usual cut to the ratio
of reserves banks must hold, in
effect adding almost US$200 billion (RM726 billion) worth of new
liquidity. For now, leaders seem
hopeful they can direct where
that money goes. Regulators have
clamped down on margin financing, for example, to discourage the
funds from flowing into an overheated stock market. Banks focused
on agricultural development have
received even deeper cuts to their
reserve ratios, while authorities
have encouraged China’s big policy
banks to lend to small and medium
enterprises and strategic projects
such as clearing slums.
All this comes on top of an earlier
reduction in the reserve requirement
and two rate cuts. Yet demand for
loans remains sluggish, because
companies are already heavily indebted, and the outlook for growth
is uncertain. The central bank might
need to slash rates again.
The danger in this is that a new
wave of easy money might only add
to what is already one of the world’s
scariest debt piles. The stimulus
Beijing unleashed after the global
financial crisis swelled China’s total debt from about 150% of GDP in
2008 to more than 250% today. Even
though credit growth has slowed,
it’s still higher than nominal growth,
so the debt-to-GDP ratio continues
to rise. That doesn’t guarantee a
crash, as some are predicting, given the government’s control over
the financial sector. But once debt
reaches these levels, it becomes a
drag on growth, as more and more
loans go into patching holes rather
than productive investments. Further rate cuts could worsen China’s already inefficient allocation
of credit, allowing new loans to
prop up ailing state companies
and property developers — two of
the three sectors (along with local
governments) most responsible
for the run-up in debt since 2009.
This week’s events should help
clarify the risks for all concerned.
Until now, the government has
prevented such defaults, for fear
Li has implied that the government will
allow ‘case by case’ defaults as long as they
don’t pose systemic risks.
of contagion. (Even after allowing
panel maker Chaori Solar to go
bust last year, Beijing stepped in
to make bondholders whole.) Yet
unless borrowers and creditors
believe there is a cost to failure,
they will continue to make bad
decisions and deepen the risk of
a financial crisis.
By allowing Kaisa, a high-profile Shenzhen property developer,
to miss US$52 million in interest
payments on Monday, and Baoding
Tianwei Group, a state-owned manufacturer of power transformers, to
do the same with a US$13.8 million
payment due Tuesday, China may
be signalling that the age of bailouts
is over. In Kaisa’s case, markets had
already priced in the likelihood of
a default and have taken the news
relatively well.
Chinese Premier Li Keqiang has
implied that the government will
allow “case by case” defaults as
long as they don’t pose systemic
risks. More clarity on where Beijing draws the line would help: If
investors had a better idea which
companies and financial products
will be protected, they’d be able to
price risk for those that won’t be.
Before China opens up the stimulus spigots again, it would help to
know who might get washed down
the drain. — Bloomberg View
How to reform the IMF now
BY PAU LO N OGU EI RA BATISTA
& H ECTOR R TORRES
MORE than four years have passed
since an overwhelming majority of the membership of the International Monetary Fund (IMF)
agreed to a package of reforms
that would double the organisation’s resources and reorganise
its governing structure in favour of
developing countries. But adopting the reforms requires approval
by the IMF’s member countries;
and, though the United States was
among those that voted in favour
of the measure, President Barack
Obama has been unable to secure
congressional approval. The time
has come to consider alternative
methods for moving the reforms
forward.
The delay by the US represents a
huge setback for the IMF. It stands
in the way of a restructuring of
its decision-making process that
would better reflect developing
countries’ growing importance and
dynamism. Furthermore, with the
reforms in limbo, the IMF has been
forced to depend largely on loans
from its members, rather than the
permanent resources called for by
the new measures. These loans,
meant as a temporary bridge before the reforms entered into effect, need to be reaffirmed every
six months.
In our view, the best way forward
would be to decouple the part of
the reforms that requires ratification by the US Congress from the
rest of the package. Only one major
element — the decision to move
toward an all-elected executive
board — requires an amendment
The US Congress’ delay in ratifying the reforms to the IMF stands in the way of a restructuring of its decision-making process that
would better reflect developing countries’ growing importance and dynamism. Photo by Reuters
to the IMF’s Articles of Agreement
and thus congressional approval.
The other major element of the
reform package is an increase and
rebalancing of the quotas that determine each country’s voting power and financial obligation. This
change would double the IMF’s
resources and provide greater voting power to developing countries.
Congress would still need to ratify
the measure before the US’ own
quota increased, but its approval
would not be required for this part
of the reform package to take effect
for other countries.
The connection between the
two parts of the reforms has always
been unnecessary; the measures
are independent, require different approval processes, and can
be delivered separately. Removing the link between them would
require the support of the US administration, but not ratification
by Congress.
This separation could be implemented smoothly. A simple
majority of the IMF’s executive
board would recommend it to the
board of governors, where a resolution separating the reforms
into two parts would require 85%
of the votes. In 2010, the reform
package passed with more than
95% of the votes.
The changes to the quotas could
then quickly become effective. The
quotas for each member country
have already been agreed, so there
would be no need for further complex and time-consuming negotiations. Countries that are willing
and able to pay their quota increases would be allowed to do so, increasing the IMF’s resources and
boosting their relative voting power.
The key obstacle to this proposal
is the requirement of congressional approval to increase America’s
quota share. This opens the possibility that the US’ voting power
could temporarily fall below the
15% threshold needed to veto decisions that require the support of
85% of IMF members’ votes.
In order to secure US support,
the board of governors could commit not to consider any draft decision requiring 85% backing without US consent. This guarantee
could be included in the resolution dividing the reform package
into two parts. It would remain
valid until the US is in a position
to increase its quota and recover its voting share. The executive
board could approve an analogous
commitment and request the IMF’s
managing director to refrain from
submitting any draft decision requiring an 85% majority without
first obtaining US support.
The US administration might
face criticism from Congress for
accepting a measure that would
temporarily cut the country’s voting share and for relying on a political agreement to preserve its
veto power. But the agreement
could also act as an incentive for
ratifying the reforms. The power to
reinstate the US’ formal veto power
would lie entirely in the hands of
Congress — making it unlikely that
another four years would pass before the matter is finally resolved.
— Project Syndicate
Paulo Nogueira Batista is an executive director of the IMF. Hector R
Torres is a former alternate executive
director of the IMF.
Gauge at 12-month low
HSBC index of China’s manufacturing activity indicates further weakness
BY K EL LY OL SEN
BEIJING: An index of China’s
manufacturing activity fell to a
12-month low in April, HSBC
said yesterday, indicating further weakness as growth sputters in the world’s second largest
economy.
The British bank’s preliminary
purchasing managers index (PMI)
came in at 49.2, it said in a statement, below the 49.6 final reading in March.
The index reached 50.7 in February but has now contracted in
four of the past five months. The
reading was also below the median estimate of 49.6 in a Bloomberg
News survey.
The index, compiled by information services provider Markit,
tracks activity in China’s factories
and workshops and is regarded
as a barometer of the health of
the global economic giant.
A figure above 50 points to
growth, but anything below in-
ETFs shrivel as
Shanghai-HK
link heats up
BY SA I K AT C H ATTERJEE
& MI CHEL L E CHEN
HONG KONG: China-focused
exchange-traded funds (ETFs)
run by investment banks and
Chinese fund managers have lost
some lustre as regulatory changes make it easier for investors to
buy into China’s booming stock
market directly.
The global US$30 billion
(RM108.9 billion) China-focused
ETF market, which tracks the
performance of onshore equities, used to be the main channel
for foreign investors to access
performance of Chinese shares.
However, the growth in flows
via the Shanghai-Hong Kong
stock connect link, helped by a
36% rally in the Shanghai stock
index since the start of the year,
contrasts with outflows from China-focused ETFs. — Reuters
the final three months of last year,
the worst result in six years.
That came after GDP expanded
7.4% in 2014, the slowest full-year
rate since 1990.
Authorities have stepped up
stimulatory efforts after the first
quarter data and disappointingly
weak industrial production and
retail sales data for March.
To boost lending the central
People’s Bank of China (PBoC)
cut the level of funds commercial banks must hold in reserve
by a full percentage point, the
second such reduction this year.
It has also lowered interest rates
twice since November.
Markit economist Annabel
Fiddes said the manufacturing
sector continued to be plagued
by tepid demand, falling prices
and a decrease in employment.
“Relatively weak demand condicates contraction.
ditions were also highlighted by
China’s gross domestic prod- stronger deflationary pressures
uct (GDP) growth slowed to 7% in the sector, with both input
in the first quarter from 7.3% in and output prices falling at fast-
er rates. Meanwhile, job shedding
across manufacturing firms was
recorded for the 18th month in
a row.”
Citing a bright spot, however,
Fiddes said overseas demand improved with export demand rising
for the first time in three months.
HSBC said the final PMI data
will be announced on May 4.
The government’s official PMI
earlier this month showed manufacturing activity expanding in
March for the first time in 2015,
coming in at 50.1.
“The falling HSBC flash PMI ...
suggests growth momentum may
have remained weak in April,”
Nomura economists wrote in a
reaction, adding that they expect
the official PMI, scheduled for
release on May 1, to decline to
49.8 in April.
They reiterated their expectation that the PBoC will implement
two further required rate of return
cuts and three more interest rate
reductions this year. — AFP
Beijing opens bank card clearing
BEIJING: China has announced
plans that will allow giants such
as Visa and MasterCard to set up
credit card clearing services in the
country, breaking the monopoly in
a multitrillion dollar market foreign firms have been trying to tap
for decades.
In its latest move to further open
up the world’s No 2 economy, the
State Council said on Wednesday
it will take applications from June
1 for licences to run the business.
China UnionPay has until now
been the only service provider in
the country’s domestic bank card
clearing market since its establishment in 2002. Foreign rivals such
as Visa and MasterCard could only
handle Chinese travellers’ transactions overseas.
The central People’s Bank of China called the move a “full scale
opening” of the sector, which was
worth 449.9 trillion yuan (RM263.5
trillion) last year.
Giants such as Visa and
MasterCard will be allowed
to set up credit card
clearing services in China.
Photo by Reuters
“Opening the bank card clearing
market will help improve China’s
bank card clearing service through
market competition,” it said in a
statement on Wednesday.
The applicants must, among
other things, be incorporated in
China and have more than one billion yuan in registered capital, the
State Council said in a statement.
Also, its main investor must have
no less than two billion yuan in
total assets in the year prior to the
application and have been operating banking, payment or clearing
business for more than half a decade with at least three consecutive
years’ of profit-making. It must also
be equipped with remote backup
systems able to recover data and
be able to “independently handle”
bank card clearing, it added.
The Beijing News yesterday quoted an unnamed source familiar
with foreign card issuers as saying
that these infrastructure requirements would probably be hard for
foreign companies to satisfy because it was “unprecedented” in
other countries and it will take at
least half a year to build the facilities required. — AFP
HONG KONG: Daiichi Sankyo has
emerged from a long spell of infirmity in India with its financial faculties just about intact. The Japanese
group’s 2008 purchase of a stake in
local drugmaker Ranbaxy was once
a fable about overseas expansion
gone wrong. By knowing when to
quit, and riding on India’s market
exuberance, Daiichi has got itself
to a position of being able to exit
without shouldering big losses.
Daiichi paid 198 billion rupees
for control of Ranbaxy, only for US
regulators to ban products from
four of the Indian company’s plants.
Ranbaxy had to pay a US$500 million fine to US authorities after admitting to lying about safety standards. When Daiichi finally threw in
the towel last April and sold its 64%
holding to local rival Sun Pharma, in
return for a 9% in the enlarged buyer, the Ranbaxy stake was valued at
40% less than its original investment.
Taking shares rather than cash
turned out well, thanks to an unexpected rapid rise in Sun Pharma’s
value. It only last month closed
its acquisition of Ranbaxy after
receiving the last of many approvals. There is still much to do to win
back the confidence of regulators.
Investors, however, seem confident that Sun Pharma can turn
Ranbaxy around as it has past acquisitions. Amid a broader rally of
the Indian stock market, the shares
of India’s largest pharma company
have risen 80% since the Ranbaxy
China province fines
Mercedes for price-fixing
BEIJING: Chinese authorities
fined Mercedes-Benz 350 million yuan (RM205 million) yesterday for violating anti-monopoly laws and price-fixing,
investigators said. “After an investigation, Mercedes-Benz
dealers in Jiangsu province
were found to have implemented a fixed minimum price for
E- and S-class vehicle parts in
violation of the anti-monopoly law,” said a statement from
the Jiangsu province pricing
bureau. Minimum prices were
also set for entire E- and S-class
cars between January 2013 and
July 2014, the statement said.
Three dealerships, in the cities
of Nanjing, Wuxi and Suzhou,
were separately fined a total of
7.9 million yuan. — AFP
Smartwatch makers say
clock ticking for Apple
SHENZHEN: The Apple Watch
goes on sale today but Chinese
factories are already churning
out cheaper alternatives, to the
delight of local consumers. “Our
product has all the functions
Apple Watch has, and even
surpasses them,” said Zheng
Yi, founder of a firm whose
electronic watches can make
phone calls, browse the Internet and play movies. His profit may lag behind the US tech
giant, but Zheng told AFP he
“started working on smartwatches eight years ago, long
before before Apple”. The Apple Watch is priced from 2,588
yuan (RM1,516), and Chinese
alternatives cost only about a
sixth as much wholesale. — AFP
Indonesia offers tax
incentives for exporters
JAKARTA: Indonesia is offering
tax breaks to firms which export
at least 30% of their production
in a bid to encourage shipments
of manufactured goods now
that the commodity boom is
over. The package, signed by
President Joko Widodo earlier
this month and effective in early
May, also includes tax breaks for
multinational firms which reinvest their profits locally instead
of paying dividends to overseas
stockholders, a move aimed at
narrowing the current account
deficit. Indonesia’s exports have
faltered this year, amid plunging
prices for coal and other commodities. — Reuters
S Korea’s economy perks
up in first quarter
Daiichi Sankyo scrubs out Indian M&A nightmare
BY U N A GA L A NI
IN BRIEF
deal was first announced.
Even selling its Sun Pharma
shares at discount of up to 10.9%
to the closing price on Monday, as
a term sheet shows it will, Daiichi
stands to fetch 200 billion rupees
(RM11 billion) or 1% more than
what it paid in 2008. True, currency
moves and the time value of money mean that equates to losses in
real terms. Daiichi’s dealmaking
record gets no clean bill of health,
but the prognosis is better than it
was. — Reuters
SEOUL: South Korea’s economy
picked up momentum in the first
quarter due to increased construction and consumer spending, the central bank said yesterday. The economy grew 0.8%
quarter-on-quarter in the January to March period, up from a revised 0.3% growth in the previous
quarter, the Bank of Korea said.
From a year earlier, the fourth
largest Asian economy expanded 2.4%. The central bank has
already cut its 2015 growth forecast twice this year, from 3.9% to
3.4% in January and down again
in April to 3.1%. — AFP
W O R L D B U S I N E S S 25
Facebook profit down, but user base grows
BY SOPHI E EST I ENN E
NEW YORK: Facebook said on
Wednesday that profit in the first
quarter plunged 20% from a year
ago but revenue got a lift from robust growth in mobile advertising.
The world’s biggest social network also boosted the number of
users to 1.44 billion, up 13% from
a year earlier, including 1.25 billion
people who access Facebook on
mobile devices.
Net profit for shareholders in the
quarter dropped to US$509 million (RM1.85 billion), amid hefty
increases in spending on research
and share-based compensation.
Overall revenue jumped 42% to
US$3.5 billion, led by advertising
gains, slightly below Wall Street
forecasts, as Facebook felt the impact of a strong US dollar.
Excluding the impact of foreign
“This was a strong start to the
exchange rates, revenue would have year,” said Mark Zuckerberg, Faceincreased by 49%, the company book founder and chief executive.
said.
“We continue to focus on serv-
Eurozone
recovery ‘is there’,
says ECB chief
FRANKFURT: Economic recovery has arrived in the 19 countries
that share the euro, but it is up
to governments to ensure it endures, European Central Bank
executive board member Benoit
Coeure said yesterday.
“The eurozone recovery is
clearly there. Growth is coming
back, all business and household
confidence indicators are pointing upwards. And the good news
is that this recovery is rooted in
domestic demand and in consumer spending in particular,”
Coeure told AFP in an interview.
For the time being, however, the recovery is still “insufficient and somewhat unequally
spread from country to country,” he cautioned.
“Our concern is that the current upturn is merely a cyclical
one, that it’s merely a flash in
the pan.” — AFP
gagement around the world,” suggesting that users are not turning
away from the platform.
Facebook has been investing
heavily in research and new projects, including a drone air fleet to
deliver the Internet to remote areas
of the world.
Earlier on Wednesday, Facebook
unveiled a new mobile application
called Hello, which allows its users
to see who is calling by searching
the social network’s vast base of
members.
It also allows users to search for
people and businesses on Facebook
and call them using the app.
In its quarterly report, Facebook
reported the bulk of its revenue
came from advertising inserted
in user feeds, especially on mobile devices.
Revenue from advertising was
ing our community and connecting US$3.32 billion, a 46% surge from
the world.”
a year ago. Mobile accounted for
Zuckerberg noted that Facebook 73% of this, up from 59% a year
was seeing “strong growth in en- earlier. — AFP
Half of US fracking
firms will be dead
Slashed spending by oil players will kill them off by year end
BY DAV ID W ET HE
HOUSTON: Half of the 41 fracking
companies operating in the United
States will be dead or sold by year
end because of slashed spending
by oil companies, an executive with
Weatherford International plc said.
There could be about 20 companies left that provide hydraulic fracturing services, Rob Fulks,
pressure pumping marketing director at Weatherford, said in an
interview on Wednesday at the IHS
CERAWeek conference in Houston.
Demand for fracking, a production method that along with horizontal drilling spurred a boom in
US oil and natural gas output, has
declined as customers leave wells
uncompleted because of low prices.
There were 61 fracking service
providers in the US, the world’s
largest market, at the start of last
year. Consolidation among bigger players began with Halliburton Co announcing plans to buy
Baker Hughes Inc in November for
US$34.6 billion (RM125.6 billion
at the current exchange rate) and
C&J Energy Services Ltd buying
the pressure-pumping business
of Nabors Industries Ltd.
Weatherford, which operates the
fifth largest fracking operation in the
US, has been forced to cut costs “dramatically” in response to customer
demand, Fulks said. The company has
been able to negotiate price cuts from
the mines that supply sand, which is
used to prop open cracks in the rocks
that allow hydrocarbons to flow.
Oil companies are cutting more
than US$100 billion in spending globally after prices fell. — Bloomberg
Morgan Stanley 1Q rivals Goldman by different path
BY A N TON Y C U RRI E
NEW YORK: Morgan Stanley’s divergence from Goldman Sachs’
strategy is starting to pay off. James
Gorman’s firm had its best quarter in years in the three months
to March. Its Wall Street arch-rival still has the edge on earnings
performance. By one key metric,
though, investors value Morgan
Stanley more highly.
The investment bank’s shares
now trade at some 1.3 times tangible book value, compared to 1.25
times at Lloyd Blankfein’s Goldman. It’s a modest difference — and
Goldman still bests Morgan Stanley
on a price-to-reported book value
basis. But it’s notable all the same.
Based on the raw numbers, Goldman ought to command a higher
multiple all round. It has been one
of the best performers among the
largest US banks while bringing
expenses down.
This year’s first quarter was a case
in point. Gorman should feel relieved,
and a tad proud, that Morgan Stanley has managed to get its return on
equity into double digits, achieving
10.1% on an annualised basis after
stripping out a tax break. All businesses contributed to that, as did
some decent expense control that
kept compensation at the investment
banking division to 38% of revenue.
Goldman, though, cranked out
an annualised return on equity
of 14.7%. It also grew its tangible
book value by 9.7% since March
last year, faster than Morgan Stanley’s 5.5%. This expansion can be
a good proxy for the health of a
One explanation for
Gorman’s crew edging
ahead on valuation is
Morgan Stanley’s business
mix. Photo by Reuters
bank’s overall business assuming
assets are properly accounted for
— as should be the case, with crisis
memories still vivid.
One explanation for Gorman’s
crew edging ahead on valuation
is Morgan Stanley’s business mix.
Only around two-fifths of revenue
comes from trading, compared with
up to 70% at Goldman, including its
investing and lending unit. These
earnings tend to be volatile. Wealth
management, meanwhile, which
Gorman has grown into a bigger part
of his firm’s top line, is more stable
and requires less capital. At least in
theory, steadier profit is worth more.
Morgan Stanley may also be able
to cut its funding costs, partly by refinancing costlier debt as it comes
due. And it has more bank deposits
than Goldman to deploy profitably.
Gorman needs to show that his firm
can keep it up, but he’s finally giving
investors something to get excited
about. — Reuters
IN BRIEF
Greek construction
magnate arrested over
tax evasion
ATHENS: The head of one of
Greece’s largest construction
companies was arrested on
Wednesday on charges of tax
evasion and ordered to pay
the state €1.8 million (RM6.97
million), the first such action
since the radical left government came to power. Leonidas
Bobolas, chief executive of the
Ellaktor group, was brought before the public prosecutor but
released after he pledged to pay
the sum, the balance of what
was originally a €2 million fine,
“as soon as possible,” a judicial
source said. Leonidas Bobolas is the son of Georges Bobolas, head of one of Greece’s
most powerful entrepreneurial families which is active in
the fields of construction and
media. — AFP
Google launches its own
mobile telephone service
NEW YORK: Google said on
Wednesday it is launching its
own US mobile wireless service, with considerable potential savings for customers using
their devices at home and for
international travel. The service called Project Fi is only
available by invitation for now,
and only for the Google Nexus 6 smartphone. The service
will use WiFi hotspots along
with the US mobile networks of
Sprint and T-Mobile, and also
may be used in 120 countries
without roaming charges. It will
be offered at a monthly cost of
US$20 (RM72) for basic service
plus US$10 per month for each
gigabyte of data used. — AFP
Brazil’s Petrobras reveals
graft cost US$2.1b
RIO de JANEIRO: Petrobras lost
US$2.1 billion (RM7.62 billion)
to the largest corruption scheme
in Brazilian history, the state oil
giant said on Wednesday, releasing its first audited accounts
since a scandal enveloped the
company and badly wounded
the government. Petrobras, the
largest company in the world’s
seventh biggest economy, announced losses of 21.6 billion
reals (RM26.1 billion) for 2014.
Prosecutors accuse Petrobras
executives of colluding with construction companies to massively inflate contracts and bribe
politicians. — AFP
Athens’ cash seen
lasting into June
ATHENS/BRUSSELS: Greece
can scrape together enough
cash to meet its payment obligations into June, eurozone and
Greek officials said on Wednesday, playing down fears of an
imminent default as hopes receded of a deal with its creditors to release fresh aid. The
European Central Bank raised
its ceiling on emergency lending by the Greek central bank
to Greek banks by €1.5 billion
(RM5.8 billion) to €75.4 billion,
giving them a bigger buffer to
cope with deposit withdrawals,
a banking source said. — Reuters
26 WORLD
Hong Kong leader assails
‘uncivilised’ critics
Chief executive and deputy heckled by protesters during district visit
HONG KONG: Hong Kong’s chief hit
back at “uncivilised” critics yesterday
after he was booed and heckled by
local residents as he tried to promote
a newly unveiled, Beijing-backed
plan for leadership elections in 2017.
The road map for the city’s first
ever public vote for its chief executive was announced on Wednesday. It conforms to a controversial
ruling from Beijing stipulating that
candidates must be pre-screened
by a loyalist committee. That ruling
sparked mass protests which lasted
more than two months towards the
end of last year.
The government kicked off a promotional campaign to sell the plan
after its launch but Chief Executive
Leung Chun-ying and his deputy,
Carrie Lam, were drowned out by protesters as they visited a middle-class
district late on Wednesday.
“Yesterday (Wednesday) during
the district visit ... there were some
hecklers who kept using loud voices and quite uncivilised words to
Police confronting pro-democracy
protesters (left) as they try to approach
Leung’s vehicle on Wednesday during
his public visit to appeal for support
of the government’s political reform
proposal. Photo by Reuters
try to speak over others,” Leung told
reporters yesterday. “It’s not democratic behaviour.”
Protesters booed Leung and Lam
and blocked their path with yellow
umbrellas, a symbol of the democracy movement. The election proposal
triggered a backlash from pro-democ-
racy lawmakers and student leaders, and was slammed by Human
Rights Watch, which described it as
a “betrayal”.
Currently the city’s leader is chosen by a 1,200-strong election committee. Beijing has promised universal suffrage for the 2017 vote, but
has said that candidates must be approved first by a nominating committee. Pro-democracy lawmakers have
vowed to block the road map when it
goes to a vote in Hong Kong’s legislature in the coming months.
Civic Party legislator Kwok Kaki said, “We will be very cautious in
making sure the people can get the
real message instead of receiving
a lot of fake messages and lies told
by the government.” The opposition
campaign would launch on Sunday,
he said.
But justice secretary Rimsky Yuen
accused the city’s democracy camp
of depriving Hong Kong citizens of a
chance to vote by trying to block the
bill. — AFP
Health blogger admits lying about cancer
SYDNEY: An Australian blogger
who found fame after claiming
she was conquering brain cancer
through natural therapy, her app
even getting chosen for the new
Apple watch, admitted yesterday
she never had the disease.
Belle Gibson launched her successful The Whole Pantry business
in 2013 — billed as the world’s first
health, wellness and lifestyle app
community — on the back of healing
herself naturally through wholefoods
and alternative therapies. She also
released The Whole Pantry cookbook
in 2014, which publisher Penguin
pulled from sale last month when
suspicions sparked by the Australian
media first arose. It had been due to
go on sale soon in the United States
and Britain. Her app had also reportedly been hand-picked by tech giant
Apple for its new smartwatch, which
goes on sale today.
Mother-of-one Gibson, 23, has
now admitted she fabricated the
cancer, when quizzed by the Australian Women’s Weekly magazine.
Gibson saidd that after years of lies,
confronting the truth was “very
scary, to be honest”.
Gibson did not go into detail
about her motivations for lying,
other than that she had a troubled
childhood. The magazine said accountants were winding up The
Whole Pantry business. Her lie began unravelling when it emerged
last month that she failed to donate
A$300,000 (RM840,000) in profit
from the sales of her book to charity
as promised and friends started to
question her diagnosis via the media.
Consumer affairs authorities
said they are checking whether she
had breached any laws in claiming
to give to charity when the money
had not been donated. Todd Harper, the chief of local charity Cancer
Council Victoria, urged patients to
be wary of cure claims that sound
too good to be true. — AFP
Australia Islamic school ‘bans Kiwi PM’s hair-tug victim says
public needed to know running’ over virginity fears
MELBOURNE: An Islamic college
in Australia is under investigation
after claims that its principal has
banned girls from taking part in
running competitions because they
might “lose their virginity”.
Victoria State Education Minister
James Merlino said yesterday that if
true, the claims made by a former
teacher at Melbourne’s Al-Taqwa
College “would be very concerning”.
“I have asked the schools regulator, the Victorian Registration and
Qualifications Authority, to investigate,” he said in a statement.
The former teacher wrote to government ministers this week alleging “the principal (Omar Hallak)
holds beliefs that if females run
excessively, they may ‘lose their
virginity’,” The Age newspaper said.
“The principal believes that there
is scientific evidence to indicate that
if girls injure themselves, such as
break their leg while playing soccer, it could render them infertile.”
The newspaper published a letter that appeared to be written by
the college’s cross-country team
to Hallak challenging his decision,
which reportedly took place after
he blocked the primary school’s
team from taking part in district
events in 2013 and 2014.
“Just because we are girls doesn’t
mean we can’t participate in running events,” the letter said, adding
that the decision was “really offensive to all the girls who were going
to participate ... As long as we girls
are wearing appropriate clothes we
can run.” — AFP
WELLINGTON: A waitress who
shamed New Zealand Prime Minister
John Key for repeatedly pulling her
ponytail said yesterday she spoke out
because of a “moral” obligation to tell
the public about his bad behaviour.
New Zealand media identified
the hospitality worker as 26-year-old
Amanda Bailey, who works at Rosie
Cafe in Parnell, the upmarket Auckland suburb where Key lives.
Bailey revealed the bizarre behaviour on Wednesday in an anonymous
blog post that labelled Key a “schoolyard bully”, prompting an apology
from the prime minister. The conservative leader has not challenged
her version of events but insists he
was simply “horsing around”.
In a second post on left-wing website thedailybog.co.nz published after
she was identified, Bailey said she
told her story because “the public
has a right to be aware how badly
their prime minister has behaved”.
“I contemplated the lasting effects this was bound to have on my
near and not-so-near future, surely
not worth it, but I made the moral
decision to put myself second and
tell the truth,” she wrote. “There is
no shame in telling the truth.” Bailey’s original post detailed how Key
pulled on her ponytail time and
time again over several months,
despite her obvious displeasure.
The controversy has become an
unwelcome distraction for Key as
he travels to Turkey for a ceremony
to mark 100 years since the Gallipoli landings involving Australian and
New Zealand troops. — AFP
IN BRIEF
Sri Lanka graft busters
question Rajapakse
brothers
COLOMBO: Two brothers of former Sri Lankan president Mahinda Rajapakse faced questioning
by anti-corruption investigators
yesterday as the new government
stepped up its crackdown against
the old regime. Hours after the
former leader’s youngest brother Basil was arrested on his return from a trip abroad, another
sibling, Gotabhaya, was hauled
before the country’s main anti-corruption body over claims of
kickbacks he allegedly received
while he served as defence secretary. Gotabhaya, widely regarded as the real power behind
69-year-old Rajapakse during
his decade-long rule, angrily denounced the Commission to Investigate Allegations of Bribery
or Corruption as he arrived at
their headquarters yesterday.
— AFP
Indonesia, Thailand,
agree to work together
on illegal fishing
JAKARTA: Indonesia and Thailand agreed yesterday to set up a
joint task force on illegal fishing,
a lucrative cross-border trade
that labour groups claim is responsible for enslaving thousands of workers from across
Southeast Asia. Thai companies
have been linked to shadowy
fishing operations in Indonesia, a bountiful hunting ground
for a blackmarket industry that
costs Jakarta an estimated US$20
billion (RM72 billion) in losses
every year. The administration of
Indonesian President Joko Widodo has embarked on a hard-line
campaign against illegal fishing
since taking office in October,
seizing and scuttling unlicensed
vessels. — AFP
China warns on rising
North Korea nuclear
capability
SEOUL: Chinese nuclear experts have warned that North
Korea may already have 20 nuclear warheads and the capability to produce enough weapons-grade uranium to double
its arsenal by next year, The
Wall Street Journal reported. The Chinese estimates of
Pyongyang’s nuclear production, relayed to US nuclear specialists, exceed most previous
US forecasts, which range from
10 to 16 bombs currently, said
the report, which cited people briefed on the matter. —
Reuters
Japan PM office drone
may have been there
for days
TOKYO: A small drone bearing
traces of radioactivity that was
found on the roof of the Japanese
prime minister’s office may have
been there for days, reports said
yesterday. Staff at the official residence discovered the 50cm craft
on top of the five-storey structure
in central Tokyo on Wednesday
morning. No one had been on
the roof since Prime Minister
Shinzo Abe used the helipad on
March 22, reports said. — AFP
W O R L D 27
Iran, world powers seek to finalise nuclear deal
VIENNA: Iran and major powers
held a second day of talks yesterday,
seeking to finalise a historic deal that
would make any attempt by Tehran
to make a nuclear weapon extremely
difficult and easily detectable.
Meeting in Vienna, Iran and
the five permanent members of
the United Nations (UN) Security Council plus Germany want to
turn a framework accord reached
in Switzerland on April 2 into a full
Witnesses:
Saudi-led air
strikes hit
Yemeni rebels
SANAA: Saudi-led coalition warplanes struck several Yemeni
rebel positions in fresh raids
overnight, witnesses said yesterday, two days after the alliance announced an end to its
month-long aerial campaign.
The raids hit rebel positions close to the capital Sanaa, around the third city Taez,
and in the central town of Yarim,
the witnesses said.
Residents said strikes were
also carried out in the southern province of Lahj as well as
around the approach to the
main southern city of Aden,
where clashes between rebels
and fighters loyal to exiled President Abedrabbo Mansour Hadi
raged overnight.
Riyadh said on Tuesday the
coalition had halted its monthlong campaign against anti-Hadi forces after eliminating the
threat posed to Saudi Arabia and
its neighbours by the rebels’ air
and missile capabilities.
But it vowed to carry out
targeted strikes on the rebels
when necessary. On Wednesday, it launched raids on Shi’ite
Houthi rebels who overran a
major base of pro-Hadi troops
in Taez, where further strikes
were reported overnight.
North-east of Sanaa, raids
targeted positions held by the
Houthis and rebel troops loyal
to former president Ali Abdullah Saleh.
In Yarim, warplanes hit an
old university building used as
a headquarters by the rebels, according to the residents. — AFP
agreement by June 30.
Iran, which denies wanting the
atomic bomb, is set to scale down
its nuclear programme for 10 to 15
years or more — depending on the
area of activity — and to allow closer
UN inspections.
The exact details of how this will
work in practice — in particular the
scale and time frame under which
the powers will lift painful sanctions
— still need to be nailed down, and
experts warned it will be a difficult
process.
The powers want to retain the
ability to “snap back” the sanctions
if Iran violates the agreement, and
among the issues to be worked out
in Vienna is a so-called dispute
resolution procedure in case of
problems.
The deal, if it can be finalised and
made to work, could put an end to
a 12-year-old crisis and potentially
IN BRIEF
pave the way for a thawing of United
States-Iran ties, although this makes
other countries in the Middle East
uneasy.
US Republicans and Israel, the
volatile region’s sole if undeclared
nuclear-armed state, fear the mooted accord will be too weak and that
when its provisions expire — at the
deal’s “sunset” — Iran will again
be on the threshold of getting the
bomb. — AFP
EU to consider
military action over
migrant crisis
A bold effort to halt deadly flow of refugees by sea
BY BRYAN M CMANU S
& ANGUS M ACKI NNO N
BRUSSELS: European Union
(EU) leaders gathering in Brussels yesterday would consider
launching a military operation
against human traffickers in Libya, in a bold effort to halt the
deadly flow of refugees trying
to reach Europe by sea.
As survivors laid bare the full
horror of last weekend’s catastrophic shipwreck near Libya,
a draft statement of the summit
seen by AFP committed leaders
to “undertake systematic efforts
to identify, capture and destroy
vessels before they are used by
traffickers”.
EU foreign policy chief Federica Mogherini “is invited to immediately begin preparations for
a possible security and defence
policy operation to this effect, in
accordance with international
law,” the draft added.
A diplomatic source said EU
members were preparing to approve the statement, reflecting
the union’s readiness to take
more decisive actions against
smugglers, who pack rickety
boats to overflowing with peo-
Mogherini is invited
to immediately
begin preparations
for a possible
security and defence
policy operation in
accordance with
international law.
Photo by Reuters
ple fleeing conflicts and misery in
Africa, the Middle East and Asia.
European leaders have been
accused of callous disregard for
the lives of migrants after 800 were
feared to have died in Sunday’s
boat sinking, the worst disaster
of its kind in the Mediterranean.
Italian Prime Minister Matteo
Renzi this week evoked possible
“targeted interventions” against
the Libya-based smugglers that
would fall short of full military
intervention.
“Fighting people trafficking
means fighting the slave traders of the 21st century. It is not
only a question of security and
terrorism — it is about human
dignity,” he said.
If approved, the operation
would be the first time EU governments — under huge pressure
to both check the tide of migrants
and provide greater succour to
those whose boats run into trouble — use military force to fight
illegal migration. — AFP
Sons reunite with Filipina maid on death row
MANILA: The two young sons of
a Philippine maid on death row
for drug trafficking in Indonesia
flew out yesterday for a feared
final reunion, Manila said as it
mounted a last-ditch campaign
to save her.
Mary Jane Veloso, 30, is facing
imminent execution for drug trafficking along with a group of other
foreigners as Indonesian President
Joko Widodo (Jokowi) presses on
with his war against illegal drugs.
The Philippine government paid
for Veloso’s sons, aged 6 and 12, and
her mother to fly to Indonesia, said
foreign department spokesman
Charles Jose.
They would join Veloso’s father
and sister who are already in Indonesia. The family planned to spend
a week with her as the government
pursued every possible means to
have her death sentence commuted, Jose said.
“We are exhausting the remedies
open to us and we will continue to
pursue both the legal track, which
is the appeal for judicial review,
and the diplomatic track, which
is the appeal for clemency,” Jose
told reporters.
Philippine Vice-President Jejomar Binay is in Jakarta this week
for an Asia-Africa summit and is
spearheading the government’s
efforts to save Veloso, who insists
she was duped by an international
drug syndicate.
On Wednesday, he delivered a
letter appealing for clemency to
the Indonesian government from
President Benigno Aquino.
Binay also hopes to meet Jokowi this week to make a direct appeal.
A second appeal for the Indonesian courts to reconsider the conviction is being prepared, according
to Jose and the National Union of
People’s Lawyers, which has been
assisting in Veloso’s case. — AFP
Call for drug tests after New
Zealand’s balloon tragedy
WELLINGTON: Adventure
aviation operators should face
random drug tests, a New Zealand coroner said yesterday, after finding the pilot of a balloon
that crashed — killing 11 people
— was a chronic cannabis user.
Coroner Peter Ryan said pilot
Lance Hopping’s judgement was
probably impaired by cannabis
when the balloon hit power lines
in January 2012, before plunging
to the ground in a flaming wreck.
Ryan said cannabis would account for some of the inexplicable actions taken by Hopping in
the lead-up to the crash, which
killed everyone on board — all
New Zealanders — as relatives
watched from the ground in horror. — AFP
PM says terror attacks
‘foiled’ in France
PARIS: French Prime Minister
Manuel Valls revealed yesterday that five terror attacks had
been “foiled” in France in recent
months. He told radio station
France Inter that “numerous attacks had already been foiled —
five if you take into account the
attack which happily did not take
place in Villejuif” on the outskirts
of Paris. A 24-year-old Franco-Algerian information technology
student is being held by police
investigating an alleged plot to
attack a church near the French
capital. His plans were exposed
after he accidentally shot himself,
and police uncovered a stash of
weapons and detailed plans to
attack the church. — AFP
US’ Venice Beach demands
topless sunbathing
LOS ANGELES: Venice Beach,
a Californian town known for
its laid-back style in an already
laid-back state, wants women on
its shores to be able to go topless.
In doing so, it cites what it calls
“links with Europe” as it seeks
an easing of US laws that many
foreign visitors find prudish. The
Venice Beach Town Council voted on Tuesday to let women go
topless on its beaches, where
tourists blend with skateboarders, street musicians and hippie-style pot smokers. It must
now be approved by the Los
Angeles Town Council, which
can veto the proposed change.
— AFP
Five dead in apparent
Canadian murder-suicide
OTTAWA: A woman and three
children under the age of nine
were found dead along with their
alleged killer on Wednesday, in
an apparent murder-suicide in
Canada’s western plains. The
Royal Canadian Mounted Police made the horrific discovery
in the early morning at a trailer
park in Tisdale, Saskatchewan,
as they checked on the woman
at the request of a relative who
feared the worst after not hearing
from her since the previous day.
The investigation led to another
residence in Prince Albert, 135km
to the west, where the body of a
male suspect in the murders was
found. — AFP
28
live it!
WELLBEING . THE ARTS . WINE+DINE . STYLE+DESIGN . LEISURE
WEEKEND
by numbers
24.04.15 to 26.04.15
A number of things to do around town. By Mae Chan
3 ways to eat, drink and party
Kuala Lumpur Pub Crawl
Lobby Restaurant and Lounge, One Residency, Jalan
Nagasari, Bukit Bintang, Kuala Lumpur
Tel: (017) 394 1191
If you’re feeling sociable and up for a wild night out, join
the Kuala Lumpur Pub Crawl event tomorrow night at
Changkat Bukit Bintang. Make new friends, play games
and enjoy drinks at four different bars before ending the
night with a visit to a club (without the need to queue).
At a cost of RM70, you are entitled to one free drink at
each of the five venues. To join the crawl, just turn up at
Lobby Restaurant between 8.45pm to 9.30pm and register on the spot.
Thirst 2015: We Are All Stardust
Jarrod & Rawlins
Lot G08B, Ground Floor, The Amp Walk, Jalan Ampang,
Kuala Lumpur
Tel: (03) 2166 0708
Don’t miss the last weekend of Jarrod & Rawlins Ampang’s Sunday Carvery brunch special promotion.
From noon to 3.30pm, eat as much as you want from a
selection that includes succulent roast pork with crispy
crackling, juicy butter roasted chicken, roast vegetables
and potatoes, Yorkshire pudding with hot gravy, and
apple sauce. Soup, salad and dessert are also served.
The sumptuous spread costs only RM32++ per person,
while children under 10 years old can dine for RM17.
Malaysia International Exhibition & Convention Centre
(MIECC), Mines Resort City, Seri Kembangan, Selangor
Tel: (03) 7931 2378
www.thirst.com.my
Be transported into the cosmic world with a spectacle
of light shows, acrobatic performances and pyrotechnics as a host of international dance music acts delivers
a high-octane and innovative night of partying. Organised by Heineken, Thirst 2015 will see an intergalactic
rave night specially created for the Malaysian audience.
Dutch trance act Dash Berlin will headline together with
compatriot R3hab, a fast-rising progressive/electro house
DJ. Representing local talents will be Goldfish & Blink,
BATE, XU and Hulkas. Tickets are priced at RM158, RM188,
RM218 and RM308. Doors open at 6pm tomorrow night.
1 epic movie not to be missed
THE long wait is over — Marvel Comics’ superhero franchise returns with Avengers:
Age of Ultron. The band of superheroes comes together again when Tony Stark (Robert Downey Jr) tries to jump-start a dormant peacekeeping programme only for it to
go awry. This forces Iron Man to reassemble with Captain America (Chris Evans), Thor
(Chris Hemsworth), The Incredible Hulk (Mark Ruffalo), Black Widow (Scarlett Johansson) and Hawkeye (Jeremy Renner) to prevent the villainous Ultron from carrying out
his plan for human extinction. Three mysterious newcomers also make their appearance — Quicksilver (Aaron Taylor-Johnson), Scarlet Witch (Elizabeth Olsen) and Vision
(Paul Bettany). Soon, uneasy alliances form and mega-battles are fought as Earth’s fate
hangs in the balance.
FR I
live it! 29
F R I DAY A PR I L 24 , 20 15 • T HEED G E FINA NCIA L DA ILY
1 fair for book lovers
The 34th Kuala Lumpur International Book Fair (KLIBF)
Putra World Trade Centre (PWTC), Jalan Tun Ismail, Kuala Lumpur
Tel: (03) 8321 7003
www.kualalumpurbookfair.my
Get the latest books and promotions from publishers around the world
at this year’s KLIBF, organised by the Ministry of Education, through the
National Book Council of Malaysia. Participating countries include the
United Kingdom, the United States, Saudi Arabia, Egypt, Singapore, India and Indonesia, to name a few. Taking up seven halls and rooms at the
PWTC, the fair will also see book launches, seminars, conventions and
many other activities to suit all levels of the reading community. Keep an
eye on KLIBF’s social media channels for announcements and discounts.
The fair opens today from 10am, and will go on until May 3.
2 reasons to laugh
2 ways to get artsy
Isey Turun KL
PJ Live Arts, Jaya One, Petaling
Jaya
Tel: (03) 7960 0439
www.pjlivearts.my
e
r
Kelantan boy Isey Fazlisham
brings his brand of comedy to
town with a tongue-in-cheek recounting of his journey from his
home town to the capital city for
the first time. Presented by Rumah Anak Teater, Isey Turun KL
will be performed in Kelantanese
dialect without subtitles. Don’t
miss the second show tonight
at 9pm. Admission is priced at
RM20 and RM30.
Lagi-Lagi Gila-Gila
Galeri Petronas, Level 3, Suria KLCC, Jalan Ampang, Kuala Lumpur
Tel: (03) 2051 7770
First published April 1, 1978, Gila-Gila is a national humour magazine
that has captured important glimpses of our social and cultural framework through the intelligent minds of Malaysia’s top cartoonists. Galeri
Petronas now exhibits over 200 iconic and original artworks — comic
strips, sketches and even rare first editions — that give a humorous but
unique perspective of what makes us Malaysians. Galeri Petronas is open
from 10pm to 8pm, Tuesday through Sunday. Admission is free.
cle
chers
anctic
ce.
with
use
nk,
88,
ght.
Ming Swings!
Theatre Lounge Café, Plaza Damas 3,
Jalan Sri Hartamas 1, Kuala Lumpur
Tel: (03) 6730 7982
www.theatreloungecafe.com
Laugh Fest: Faulty Towers — The Dining Experience
Frontera Sol of Mexico, Ground floor, Jaya One, Petaling Jaya
Tel: (03) 7960 0439/7958 8515
www.fronterabar.com
Enjoy your meal with a hearty side of laughter with the loosely scripted
tribute to the famed BBC TV series made famous by comic actors John
Cleese, Prunella Scales and Andrew Sachs. For two hours, audiences
can enjoy a three-course meal served by “Sybil”, “Basil” and “Manuel”,
promising an unforgettable dining experience as everything that can
go wrong probably would in this orchestrated chaotic evening out.
Faulty Towers — The Dining Experience is on tonight till April 27 at
7.30pm, with lunch also served tomorrow and on Sunday at 12.30pm.
Dinner is priced at RM188, lunch at RM128.
Join actor, singer-songwriter and
jazz vocalist Ming Lee (Chan Ming
Lye) on a jazz journey this weekend. Having sung and performed in
many festivals, music venues and
theatres internationally, Ming Lee
has enjoyed a musical journey that
took him to London, Montreal and
New York, where he played the role
of the pimp (The Engineer) on Broadway in Miss Saigon. Blessed with
a rich tone and infectious swinging style, he will be performing a range
of jazz standards from the Tin Pan Alley collection, as well as rare gems
from the American Songbook, made famous by artists such as Nat King
Cole to The Platters to Michael Bublé. Ming Swings! is on from tonight
to Sunday at 9pm. Cover charge is RM65 or RM117. Reservations are
advised due to limited seats.
30
live it!
Zen TODAY
Now and then it’s good to pause in our pursuit of
happiness and just be happy. — Guillaume Apollinaire
MARVEL ‘AVENGERS’
WOMEN MUSCLE
into spotlight in ‘Ultron’
BY PI YA SI NHA - ROY
A
s the sole female
Avenger, Scarlett Johansson had a bone
to pick with Hollywood. Not only were
there few female superheroes, they also tended to be
dumbed-down.
So when Marvel Studios brought
in another formidable woman for
summer action film Avengers: Age
of Ultron, Johansson, who reprises
her role as the feisty Black Widow,
was happy to see “a step in the right
direction”.
Now playing in Malaysian
theatres, the Walt Disney Co film
reunites Black Widow with 2012’s
The Avengers superhero ensemble
of Iron Man, Thor, Captain America,
the Hulk and Hawkeye as they
fight a villain bent on large-scale
destruction.
Now comes Scarlet Witch, played
by Elizabeth Olsen, one of the most
powerful Marvel comic characters, known for her thought-altering magical powers, to join the
male-dominated superhero ranks.
Three other women play key roles.
Boosting the female quotient
makes sense as women fans could
help push Age of Ultron past its
predecessor at the box office and
possibly make it the top-grossing
film of summer 2015.
The film throws a larger spotlight
on its female characters, led by Johansson’s Black Widow holding her
own in complex fight scenes and
finding romance with Hulk (Mark
Ruffalo).
The evolution of female characters in Marvel’s superhero movies
“has been slow”, Johansson says,
since she took the helm as Black
Widow in 2010’s Iron Man 2.
“We haven’t really been able to
explore the depth of the character
behind the superhero — that’s what
makes characters interesting,” she
says. “It’s nice to see the introduction to Scarlet Witch, and I know
that there will be more to come.”
Ever since Marvel’s cinematic
franchises became box office hits,
starting with 2008’s Iron Man starring Robert Downey Jr, superhero films have drawn criticism for
not having enough women amid
star-studded casts.
“It’s amazing to have two female
characters on a poster for a superhero movie,” Olsen says. “We’re
both portrayed as such badasses.”
For box office expert Paul Dergarabedian, ramping up the female
perspective is “vitally important” as
female filmgoers make up a bigger
share of ticket sales.
“Action movies are not just for
men anymore,” says Dergarabedian, senior media analyst at box
office-tracking firm Rentrak.
The Avengers, the third highest
grossing movie of all time, opened in
2012 with a record US$207 million in
US and Canadian ticket sales. Forty
per cent of the opening weekend
audience was female, according to
a Disney survey at the time.
Disney promoted Age of Ultron
to female audiences, sending cast
members to TV shows, such as Ellen and The View. It created a line
of womenswear inspired by the
female stars that includes a replica
of Johansson’s Black Widow jacket.
Johansson showed the power
of female-led action films with her
non-Marvel flick Lucy that grossed
more than US$450 million worldwide last year.
But there are no plans for a Black
Widow standalone film in Marvel’s
upcoming five-year plan. Fans will
have to wait until 2018 to see the
studio’s first movie led by a female
superhero, Captain Marvel.
For Joss Whedon, who wrote and
directed both Avengers films, writing
female characters wasn’t “necessarily
an agenda” for Age of Ultron.
“Everybody, who is in the movie, is usually the best version,” says
Whedon. “Dr Cho (Claudia Kim) is
the best doctor in the world, and
Maria Hill (Cobie Smulders) is the
best agent.”
“They’re that smart; they’re that
good — [it] doesn’t matter if they’re
men or women.” — Reuters
Johansson: The evolution of female characters in Marvel’s superhero movies has been
slow. Photo by Reuters
S P O RT S 3 1
Ali? I’m the best, says
Mayweather
As his flawless record speaks for itself
BY GREG HEA K ES
LOS ANGELES: Never one to talk
himself down, Floyd Mayweather
declared on Wednesday that he isn’t
just good, he’s better than Muhammad Ali, the man many call “The
Greatest.”
With just over a week to go before
his super fight in Las Vegas against
Manny Pacquiao, Mayweather said
his career and flawless record —
he has never been beaten — speak
for itself.
“I feel like I have done just as
much in the sport as Ali,” Mayweather said.
“It is hard for a guy to be like me,
still sharp at 38. No disrespect to Ali,
but I feel like I am the best.”
Mayweather pointed out that
while Ali lost to the unheralded Leon
Spinks in 1978, among others, he
has a perfect 47-0 record.
“Ali lost in his career to Leon
Spinks. He lost some other fights
and is still known as the greatest.
Chong, Hoo/
Woon keep
Malaysian flag
flying
KUALA LUMPUR: It was a mere
walk in the park for Malaysian
women’s pair in the second
round of the 2015 Asian Badminton Championships (ABC)
in Wuhan, China.
Vivian Hoo and Woon Khei
Wei received a walkover when
their opponents Aktar Shapla
and Alina Sultana of Bangladesh withdrew from the tournament yesterday.
The pair are set to meet China’s Ma Jin and Tang Yuanting
in the quarter-finals round
today.
Ma and Tang edged out third
seeded and also world No 6 pair
Reika Kakiiwa and Miyuki Maeda of Japan 21-13 and 21-14.
In the men’s singles, Chong
Wei Feng dispatched Artyom
Savatyugin of Uzbekistan in
straight sets of 21-6 and 21-9 in
21 minutes. Chong is scheduled
to battle China’s Tian Houwei
in a quarter-final match today.
World No 12 Tian had to
work hard to overcome Lee
Dong Keun of South Korea before winning 17-21, 21-8 and
21-11 in one hour and 25 minutes. Today’s match would be
their fifth clash. Three of the
matches were won by Chong,
who is currently ranked 39th.
— Bernama
Mayweather arriving on the red
carpet before a press conference
on March 11 to announce the fight
on May 2 against Pacquiao in Los
Angeles. He said even boxing fans
from Pacquiao’s home country will
be cheering him on at the MGM
Grand. Photo by Reuters
That is what it is.”
Mayweather spoke to reporters
on Wednesday in a teleconference
call for his May 2 welterweight showdown with Filipino superstar Pacquiao, which is expected to generate
a record US$400 million (RM1.45
billion) in revenue.
In addition to being the greatest, Mayweather added that even
boxing fans from Pacquiao’s home
country — where Pacquiao is an
icon — will be cheering him on at
the MGM Grand.
“I am pretty sure I got Filipino
fans that like me,” said the American
boxer, who is arguably the current
No 1 pound-for-pound fighter in
the world.
Mayweather said he has a solid
game plan for this fight and had
made sure not to go overboard. “I
have trained extremely hard. You
don’t want to over train. You want to
train so you are completely ready,”
he said.
“I am not going crazy,” he said. “I
know it is the biggest fight in boxing
history. I can’t approach it like that.
I don’t want to put unnecessary
pressure on myself, my thing is to
just be Floyd Mayweather.
“This one is a little over the top.
I just try to stay relaxed.”
He said this fight is the fulfilment
of a dream — as a teenage boxer he
imagined himself one day being as
popular as Mike Tyson in his heyday. — AFP
was cheered on by Barcelona striker Neymar fresh after his two goals
against Paris Saint-Germain on Tuesday.
“It was difficult, so I decided to
step back a metre and put more balls
in play and, bar the final game, I controlled the match.
“I committed very few errors and
I hadn’t forgotten that he beat me
last year.”
Nadal was down to face Fabio Fognini, who has already beaten Nadal on
clay this year in Rio de Janeiro, in the
last 16 yesterday after the Italian came
from a set down to beat 17-year-old
Russian Andrey Rublev 3-6, 6-4, 6-1.
David Ferrer remained on course
for a potential semi-final meeting
with Nadal as the world No 8 was too
strong for Alberto Montanes 6-2, 6-3.
Victory also ended an unwanted
losing run for Ferrer in Barcelona
after crashing out in his first match
in the past two years.
“After losing two years in a row
in the first round I had to play my
best tennis. I am happy about my
debut, about the way I played from
the baseline.”
However, US Open champion
Marin Cilic’s disappointing season
continued as he was dumped out
by 34-year-old Dominican Victor
Estrella Burgos 6-4, 6-4.
The Croatian’s normally reliant
serve let him down as the world No
53 broke four times in 10 Cilic service
games to seal a place in the last 16
against Martin Klizan. — AFP
Razlan: Zulfahmi’s future in Drive M7 SIC 50:50
SEPANG: Sepang International Circuit (SIC) chief executive officer
Datuk Razlan Razali said Moto3
racer Zulfahmi Khairuddin’s career in the Drive M7 SIC is 50:50.
Zulfahmi’s disappointing performance in the three preliminary
rounds of the World Grand Prix
(GP) motorcycle racing was felt
by many, especially local motor
sports fans.
While admitting that the experienced racer had been given ample
opportunity, Razlan said Zulfahmi
British bookmaker William
Hill posts 1Q profit fall
LONDON: Britain’s biggest
bookmaker William Hill posted a 19% fall in first quarter (1Q)
operating profit yesterday due
to £20 million (RM109 million)
worth of additional tax charges and the impact of its worst
ever sports betting week. The
company, which has around
2,300 United Kingdom shops
and operations online, in Australia, the United States and Europe, said operating profit fell by
£16 million in the 13 weeks to
March 31 as it felt the effect of
new levies such as a UK tax on
profits from bets made online
by its British-based customers.
The industry is under increasing pressure from rising taxes as
well as regulation, forcing many
firms to close some shops and
put greater focus and resource on
growing online sales. — Reuters
Cook closes in on
England record
Nadal gains revenge over
Almagro in Barcelona
BARCELONA: Rafael Nadal avenged
his shock defeat to Nicolas Almagro at last year’s Barcelona Open to
move into the third round in the Catalan capital with a 6-3, 6-1 win on
Wednesday.
Almagro’s sole victory in 13 meetings with the 14-time Grand Slam
champion in last year’s quarter-final
ended Nadal’s incredible 41-match
winning streak in Barcelona.
However, the out-of-form Almagro, who has slipped to 123 in the
world, was swept aside as Nadal won
10 of the last 11 games to comfortably book his place in the next round.
“Nico is a danger because of the
potential he has. At the start he served
very well and won a lot of points on
the second stroke,” said Nadal, who
IN BRIEF
has until August to improve his
performance.
“There are no more excuses why
he cannot improve. Next week, they
[Zulfahmi and Jakub Kornfeil] will
race at Jerez Circuit in Spain. Zulfahmi should get at least one point
from the first round. We will review
his performance in August.
“Things are not looking too good
for him. If we assess the qualifying session in three preliminary
rounds, Zulfahmi was out of top
20 grids, which I cannot accept,”
he told reporters after a “cycling
with the media” session at SIC here
yesterday.
Razlan said the problem with
Zulfahmi is his self confidence
which let him down during intense
competition in a race.
“My team told me Zulfahmi is the
fastest racer but he lacks self confidence. If he has a problem during
the race, he needs to tell the team.
Zulfahmi himself knows he has this
problem but he thought he could
resolve it himself.”— Bernama
ST GEORGE’S (Grenada):
Alastair Cook closed in on
becoming England’s highest
Test run maker on Wednesday as his team began their
pursuit of West Indies’ 299 all
out on the second day of the
second Test. England skipper
Cook and fellow opener Jonathan Trott negotiated 26 overs
without real alarm as the visitors reached 74 without loss
at the National Cricket Stadium. Cook achieved a milestone
during his unbeaten 37, going
past former player Alec Stewart
as his country’s second-highest
run getter in Test history with
a tally of 8,484. — AFP
Hurricanes to unleash All
Blacks on Reds
SYDNEY: The Wellington Hurricanes will unleash their full
complement of All Blacks on
the Queensland Reds on Sunday as they aim to bounce back
from last week’s Super 15 defeat. Julian Savea, Ma’a Nonu
and Beauden Barrett are among
the internationals headed to
Brisbane as the Hurricanes look
to atone for their 29-24 loss
to defending champions the
New South Wales Waratahs.
The Hurricanes’ first defeat of
the competition left them just
one point ahead of New Zealand rivals the Waikato Chiefs,
who play bottom-placed Western Force on today. — AFP
Concussion settlement
approved by US judge
PHILADELPHIA: An American judge on Wednesday approved of a revised settlement
agreement between the National Football League and thousands of ex-players who sued
the league over concussions.
The federal court endorsement
of the revised agreement will
see payments of up to US$5
million (RM18 million) to former players diagnosed with
concussions. In a 132-page
document, US District Court
Judge Anita Brody called the
settlement “fair, reasonable
and adequate.” — AFP
3 2 S P O RT S
Boss insists no axe
for S-League
IN BRIEF
‘Never spoken to Wenger’
says Wanyama to scotch
rumours
But says future format of the poorly attended football competition is under discussion
SINGAPORE: A top official has denied Singapore’s S-League could be
scrapped and said it is not true that
even national coach Bernd Stange
stays away from the poorly attended
football competition.
S-League chief executive Lim
Chin played down reports of a bustup between club chairmen and
Football Association of Singapore
officials at a meeting this week, calling the exchanges “robust debate”.
But while he dismissed suggestions in The Straits Times that the 10team league could be axed, he said
FA chief says
Kane wants to
play at Euro
Under-21s
LONDON: Football Association
chairman Greg Dyke has said
the agent of Harry Kane has
told him the Tottenham striker
wants to play at the European
Under-21 Championships in the
Czech Republic in June.
Kane’s astonishing breakthrough season has seen him
score 30 goals already in all
competitions for Spurs, and last
month he took just 79 seconds to
mark his full England debut with
a goal in a 4-0 Euro 2016 qualifier
against Lithuania at Wembley.
Tottenham are sure to have
concerns about the risk of
Kane being “over-played” in a
post-season tournament.
However, Dyke told FA TV on
Wednesday: “I got a call from Harry Kane’s agent recently just to say
how much he enjoyed playing for
England and how much he wants
to play for the Under-21s this year
in the tournament, in the Euros.
“And I think that’s important.
If you’re a young English boy
coming through the system, you
should want to play for England.”
And with yesterday being St
George’s Day, England’s national day, Dyke said he was keen
for football to play its part in
bolstering patriotic sentiment.
“When I go back to when I
was a kid, St George’s Day was
an important day,” the former
BBC director-general said.
“Over time, I think St George’s
Day got captured by political
movements which is a mistake
because we should be celebrating England and particularly in
the area of football.
“What brings England together? Well, the single most
important thing is football and
England has the best football
team in the British Isles.” — AFP
the future format of the S-League
was under discussion.
“We are exploring options to
make the S-League better and on the
whole, Singapore football,” Lim said
in a statement late on Wednesday.
“In discussions, there will always
be differences in views and opinions
when it comes to issues and ideas,
and that makes for a healthy and
robust debate,” he added.
“We are in the preliminary stages
of discussion and exploring possibilities. At this stage, it is too preliminary to go into details what form
and shape the S-League will take
in future,” Lim said.
The Straits Times reported that
officials are exploring options for
the S-League, including shutting it
down and sending teams to compete
in regional competitions.
Small crowds and a lack of high
quality local players have long put
the S-League under pressure, making it hard for chairmen to find
sponsors.
The involvement of a Singaporean representative side in the Malaysian Super League has also re-
portedly irked clubs which regularly
lose the use of their top players.
The Straits Times also quoted an
unnamed club chairman as saying
he had heard that national coach
Stange does not attend S-League
games.
But Lim said he could “categorically state that Bernd is a regular face
at S-League and other local matches”.
Singapore has for years struggled to raise interest in the S-League,
which competes for attention with
popular European competitions like
the English Premier League. — AFP
Berlusconi to consider offers
for AC Milan takeover
MILAN: AC Milan owner Silvio Berlusconi is preparing to weigh up two
separate offers for the club that could
see a majority stake in the Italian Serie A giants sold to either a Thai or
Hong Kong businessman, reports
said yesterday.
Speculation surrounding the
eventual sale of the seven-time European champions has intensified in
the past year amid the club’s struggle
to keep up with the pace in Serie A,
and their recurring failure to qualify for Europe.
Berlusconi was earlier this
month quoted as saying he had
agreed terms on selling a 75% holding in the club to a consortium
with close ties to the Chinese government.
A month previously, reports
claimed Berlusconi had signed a
preliminary agreement to sell 30%
of the club to Thai businessman Bee
Taechaubol at the end of May for
€250 million (RM968.93 million).
La Gazzetta dello Sport yesterday reported the two-time Italian
prime minister Berlusconi is moving closer towards selling a majority
stake in the club, with Taechaubol
— known as Mr Bee — and Richard Lee, a Hong Kong businessman
Berlusconi was
earlier this month
quoted as saying he
had agreed terms
on selling a 75%
holding in the club
to a consortium
with close ties
to the Chinese
government. Photo
by Reuters
representing a Chinese-led consortium, leading the race.
Gazzetta said due diligence of
the club had already been carried
out by representatives of Bee.
The report quoted Thai Prime, a
Southeast Asian-based Private Equity group founded by Taechaubol,
as saying: “Mr Bee will be in Milan
on Sunday with the purpose of buying a majority stake in AC Milan.”
However, the Italian sports daily said the “more important” story
could be the arrival of Lee in Milan,
possibly today.
The report added that due diligence of the club by representatives
of the Chinese consortium would
be “finalised shortly”, after which
“concrete and official offers” could
be made.
Milan are said to be among the
most popular foreign clubs in China
and the push for Berlusconi to sell,
according to Gazzetta, has come directly from the Chinese government
as they look to raise the sport’s profile
in the country.
If the deal were to go through,
Milan would become the second
Serie A club to be sold to Asian investors. Indonesian tycoon Erick Thohir
bought a 70% stake in Inter Milan in
November 2013. — AFP
AFC seeking more information on Indonesia row
JAKARTA: The Asian Football Confederation said it is seeking more
information on the row in Indonesia
that has led to the suspension of the
local football association (PSSI) by
the sports ministry.
The sports ministry imposed the
suspension after the PSSI continued
to ignore recommendations that two
sides — Arema Indonesia and Persebaya Surabaya — be banned from
taking part in the Indonesian Super
League over ownership concerns.
“The AFC is aware of the recent
developments and actions taken by
the country’s sports ministry, and we
are awaiting further information in
this respect,” the confederation said
in a short statement yesterday. “We
are monitoring the situation and
remain in close contact with the
PSSI and FIFA.”
The action by the government
to take over the running of football
matters is in breach of FIFA rules.
Some countries have been banned
by the world governing body for
such, but so far Indonesia has escaped penalty.
The PSSI, despite the sports ministry directive, pressed on with elections in Surabaya on Saturday, which
were met by protests from fans of
the local side.
La Nyalla Mahmud won 92 of 106
votes to replace Djohar Arifin as head
of the PSSI until 2019 and vowed to
restart the suspended league on Saturday. — Reuters
SOUTHAMPTON: Southampton’s Kenyan midfielder Victor Wanyama took to social
media yesterday in a bid to
quash rumours he was set to
quit the south coast high-fliers for Arsenal. “To cut the
story short have never spoken to Wenger,” Wanyama
wrote on Twitter, prompting
an outpouring of praise from
Southampton fans, and less
enthusiastic responses from
Gunners supporters. The Sun
tabloid yesterday linked the
23-year-old with Arsenal,
quoting Wanyama as saying
Wenger had been discussing
him and had “let it be known”
he was interested in signing
the former Celtic powerhouse.
— Reuters
Pahang to qualify for FA
Cup semi-final
GEORGE TOWN: Defending
champions Pahang can heave a
sigh of relief in qualifying for the
FA Cup semi-finals with a 4-2
aggregate after being tied 2-2 in
the second leg against Penang.
Head coach Zainal Abidin Hassan said his players were tired in
the second half which resulted
in Penang gaining two quick
goals at the last minute.”Penang
fought hard until the final whistle and a lapse in our defence
led the hosts to slot in two goals
to even the score.”Penang have
certainly improved and this is
a good challenge to check our
players from being complacent,”
he told reporters after the match
at City Stadium last night. —
Bernama
Bayern hopeful Guardiola
will stay beyond 2016
BERLIN: Bayern Munich coach
Pep Guardiola will see out his
three-year contract with the
German champions, who are
hopeful of an extension beyond
2016, club chief executive officer Karl-Heinz Rummenigge
said yesterday. Guardiola has
been a top target for several
European clubs. The Spaniard
has repeatedly been linked
with a possible move to Premier League club Manchester
City. Speculation intensified
in the days after Bayern’s 3-1
Champions League quarter-final first leg loss at Porto last
week. — Reuters
Japan to host Club World
Cup for next two years
PARIS: Japan will host the
Club World Cup for the next
two years, world football’s governing body FIFA announced
yesterday. After last staging the
event in 2012, Japan will play
host again in 2015 and 2016,
with this year’s competition
confirmed for Dec 10-20. FIFA
secretary-general Jerome Valcke said on the FIFA website:
“This is a country with a proven
track record when it comes to
staging FIFA events, including
six editions of the FIFA Club
World Cup, which were all successful. — AFP

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