Monday, November 30, 2009

What happens when you post someting on online that you shouldn't


CHICAGO: So, you fail to take a deep breath and to count to 10 - and you post something you probably shouldn't on Twitter or Facebook, or somewhere else online.

Hopefully, it blows over without doing too much damage. But what if you're famous and have thousands, if not millions of virtual followers?

NFL star Larry Johnson was released by the Kansas City Chiefs after questioning his coach and posting gay slurs for all the world to see. California Gov.

Arnold Schwarzenegger was criticized for pulling out a big knife in a video that was posted as a "thank you" to constituents for suggesting ways to cut the state budget.

Those are but two of the recent controversies that social networking helped ignite - and far from the last in an era when fans and gawkers are just waiting for sports stars, celebrities and politicians to say something embarrassing or naughty.

New technology makes it that much easier for stars to do that.

"Yes, I get that this is a great promotional tool. It can also be a dagger if not used properly," says Matthew Pace, a New York attorney who works with agencies that manage athletes and who cautions them about the damage social networking can do to a career.

Controversial posts are causing more universities, pro teams and even some movie studios to try to clamp down on the off-the-cuff content their stars put online.

Or, at the very least, celebs of all kinds are being encouraged to think before they post.

Sometimes, it's about protecting reputations.

In other cases, it's about keeping sensitive information from leaking.

One could argue that some celebrities, athletes and politicians have done a pretty good job of making fools of themselves for a long time without social networking.

"But there may be a tendency even for really high-profile people to forget that any content you post online is a public statement _ and that it is as public as any television or print interview," says Nancy Flynn, a corporate consultant who heads the Ohio-based ePolicy Institute.

"It's in your words, so you can't say, 'Well, I was misquoted."'

However, while there are obvious dangers, all of this "microblogging," as it's known, can be worth the risk: Fans like having this kind of direct access to public figures and can be quite loyal to those who are good at it.

And even if there's an online stumble, here or there, well, that can just make celebs seem more real.

"It's a way to understand that they are human," says April Francis, a 26-year-old Chicagoan who works as an "identity consultant," which includes help with wardrobe, branding and public relations for her clients.

On Twitter, she follows everyone from burlesque performer Dita Von Teese to basketball star Shaquille O'Neal - but recently dropped author Margaret Atwood because she thought Atwood was "mind-blowingingly boring."

For a lot of fans, it is that - not controversy - that's the kiss of death these days.

"It comes down to the interest factor," says Allen Chen, a 30-year-old university worker from Yonkers, N.Y., who follows several professional athletes and authors on Twitter and thinks it's best when they are "funny, entertaining and snarky."

He recently dropped a former New York Knick (Stephon Marbury) and a current one (Nate Robinson) because he says they were none of those things.

Sometimes it's the celebrity who loses interest in social networking.

Teen pop star Miley Cyrus recently stopped tweeting because she grew weary of tabloids using material she posted.

More often, though, Hollywood types are more than happy to share what some might consider too much information, evidenced on Wonderwall.com, a site that tracks some of the more questionable or buzz-worthy things celebrities tweet.

Consider this one from singer John Mayer: "If you ever see me out and about and I'm punching myself in the pants, leave me be. Personal lessons are being taught/learned."

Or actress Demi Moore: "grabbing my hubby and putting on my birthday suit.....to snuggle.......goooood night. until tomorrow!"

It's all part of the growing school of thought that controversy, or titillation, actually helps a celebrity's career by getting them noticed, says Richard Laermer, a New York publicist.

"The new PR is about fame that starts and stops with everything that people hear about you. So in order to rise above the noise, you have to be outrageous and controversial," says Laermer, who talks about the trend in his book "2011: Trendspotting."

Of course, there are limits, he says, noting that most high-profile people generally don't go "astray from who they want their fans to think they are."

In the end, some also might argue that the damage players such as Larry Johnson do to their reputations likely won't be that long-lasting.

Johnson is now playing for the Bengals, a team known for taking on troubled players, though he's a backup running back.

Schwarzenegger, meanwhile, shrugged when some criticized him for using the knife to make light of the budget-cutting process.

He said he doesn't want to be seen as "El Stiffo," insinuating that his predecessors might have been a little boring.

Still, with elections at stake and endorsement and movie deals to be lost, those who track social networking say there's a difference between being controversial and too controversial.

"Modern athletes are highly trained on how to handle the local beat reporter, but the ability to speak in real-time in a personal-yet-public space is something that they are clearly learning how to navigate as they go," says Aaron Smith, a research specialist at the Pew Internet & American Life Project.

"The norms of what is acceptable in those settings is clearly evolving." - AP

On the Net:

Larry Johnson's site:


http://www.toonicon.com/

Schwarzenegger video:
http://tiny.cc/hCK7R

Ochocinco's Twitter page:


http://twitter.com/OGOchoCinco

Broadband rivalry heats up, TM losing to newcomers


KUALA LUMPUR: Rising broadband competition appears to be halting the growth for incumbent Telekom Malaysia Bhd’s (TM) broadband segment, which expanded a mere 6% in the third quarter ended Sept 30 compared with over 40% a year ago.

In addition to fast-growing 4G WiMAX operator Packet One Networks (M) Sdn Bhd (P1), TM also faces strong competition from Celcom (M) Bhd, Maxis Bhd and DiGi.Com Bhd which continue to aggressively promote their mobile broadband high-speed downlink packet access offerings.

The broadband landscape has intensified where it isn’t just the 3G cellular players like Celcom, DiGi and Maxis that are growing their mobile broadband share. 4G WiMAX operators such as P1 are also giving the celcos a run for their market shares.

Celcom has been doing exceptionally well, with its mobile broadband attracting 114,000 net additions in its second quarter ended June 30. Analysts expect it will report the addition of 300,000 subscribers when it announces its third quarter results next week.

Keen to grab market share from the mobile broadband segment, with the same tenacity it displayed in the fixed broadband segment, P1 is now bundling fixed and nomadic broadband services for users.

The company recently launched a promotional package that comes with a free modem for nomadic broadband services (Wiggy) to subscribers of any of its existing fixed broadband packages now that it has expanded its network to cover 35% of the population.

By the end of the year, P1 targets to deploy an additional 250 base stations, or 50% of its 503 sites as at end-September, as well as to further improve its network quality and expand population coverage to 40%.

P1’s prospects of growing broadband market share is expected to rise with the onset of WiMAX-enabled devices in 2011.

Meanwhile, TM is not resting on its laurels and is now offering most users an upgrade of their speeds at a lower subscription rate than its normal plans but is locking them into a 24-month contract.

Analysts say this should help reduce TM’s churn rate and raise its average revenue per user.

Other WiMAX players such as Asiaspace Sdn Bhd have yet to offer significant competition. In September, Asiaspace garnered a total of 669 subscribers after its inaugural launch.

REDtone International Bhd is presently in the midst of expanding its WiMAX coverage and services in Sabah and Sarawak.

YTL-E Solutions Bhd is the only one of the four 2.3GHz WiMAX licensees that has yet to commercially launch its service. It will be spending RM2.5bil for the rollout.

Needless to say, the broadband pie will only get bigger with the Government’s target to double the country’s current low broadband penetration levels by end of next year.


TM : [Stock Watch] [News]

Malaysia keen to have Free Trade Agreement with GCC



KUALA LUMPUR: Malaysia is keen to expedite negotiations with the six-nation Gulf Cooperation Council (GCC) for a Free Trade Agreement (FTA) between the two parties, Deputy Minister of International Trade and Industry Datuk Mukhriz Mahathir said on Monday.

He said Malaysia and the GCC member countries have much to gain from expanded trade and investment ventures.

"The potential market exists not just in our markets but also in the wider reach that each of us has through our trade and economic linkages with the rest of the world, namely Malaysia within Asean and the various FTAs that we have concluded and likewise the GCC with their trading partners," he told reporters after opening the Malaysia-Arab Business Forum.

Mukhriz said currently Malaysia's economic linkages with the GCC and members of the Organisation of The Islamic Conference were mainly with Saudi Arabia and the United Arab Emirates.

Earlier, in his speech, Mukhriz said between 2008 and September 2009, investments from the two countries totalled RM92.9 billion, with a fairly strong Malaysian presence there.

"There's so much potential we have yet to explore with the other GCC member countries and one of it is in the services sector," he said.

Mukhriz invited interested parties within the GCC seeking Islamic financing to take advantage of the wide range of syariah-compliant services available in Malaysia.

He said Malaysia was gearing up to be a premier international Islamic financial centre for the origination, distribution and trading of Islamic capital market products including treasury instruments such as sukuk (Islamic bond).

"I would like to invite parties from the GCC to work with Malaysia to develop the Islamic banking industry to our mutual benefit," he said, adding that the government had introduced various measures and tax incentives to create a modern and efficient international Islamic financial centre.

Asked to comment on the current Dubai financial crisis potential impact on Malaysia, Mukhriz said: "I can't really say how it has impacted us so far, but being a trading nation, we are keeping a keen eye on developments in that area."

Sunday, November 29, 2009

Oil prices in largest percentage fall in 10 months


NEW YORK: Shades of the roiling energy markets that were set off last year by the crisis on Wall Street emerged again Friday with crude seeing the largest percentage drop in prices since January.

The sell-off this time followed troubling news from Dubai, which asked lenders for a six-month reprieve on payments for about $60 billion in debt.

Benchmark crude prices plunged by 7 percent in early trading, though those declines eased as investors weighed the chances that Dubai's problems would spread to Europe, Asia and the United States.

It was partly the fear of frozen credit markets last year that sent crude prices from $147 per barrel in July to about $32 by December.

By midday Friday it was clear that many investors were downplaying the affects of a potential default on big banks.

Still, the jolt to energy markets was a reminder that some investors can be quick to dump assets at the earliest signs of a threat to an economic recovery.

Crude prices bounced off six-week lows as investors digested the news from Dubai.

Benchmark crude for January delivery fell $1.91 to settle at $76.05 on the New York Mercantile Exchange.

At one point, prices had dropped $5.57, the largest dollar decline since April 20 when crude prices tumbled $4.45 to $45.88.

Any decline in the price of crude would likely help most consumers in the short term because gasoline and other fuel prices tend to follow the direction of oil.

The day after the Thanksgiving is usually a very light day on markets and most energy experts said trading next week will be a better indicator for consumers as far as energy prices go.

Dubai has experienced unprecedented growth over the past decade, and the semiautonomous city-state has spent billions on sprawling man-made islands, an indoor ski slope and the world's largest tower.

It's main funding vehicle, Dubai World, said it would ask creditors for a "standstill" on paying back its $60 billion debt until at least May.

That boosted U.S. dollar higher early in the day, which added more downward pressure on oil prices.

Crude is bought and sold largely in dollars, so investors holding major currencies pay more to buy oil when the dollar rises.

As anxiety over Dubai eased, the dollar gave up earlier gains and crude prices gained back some ground.

"The strengthening dollar is dislodging a huge amount of speculative capital," said Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates, adding that energy demand weakness throws yet another wrench into the industry's recovery.

In other Nymex trading, heating oil fell 2.79 cents to $1.9622 a gallon. Gasoline for December delivery dropped 7.14 cents to settle at $1.9262 a gallon.

Natural gas for January delivery climbed 2.9 cents to close at $5.192 per 1,000 cubic feet.

In London, Brent crude for January delivery rose 19 cents to settle at $77.18 on the ICE Futures exchange.

Recovery and its impact

LAST week, a woman turned to a so-called “support group” for economic recovery on Facebook to rant about the financial struggles that she was facing as a result of the global economic crisis.

The businesswoman, presumably from a Western industrialised nation, claimed that she was about to lose everything because a client of hers had failed to pay her. Her struggles made her question about the recovery that had been widely reported to be taking place in the global economy.

The woman’s story is, perhaps, just one of many that reflect the scars left by the deep global recession that occurred between the second half of last year and early this year. And such struggles are still prevalent among some fractions of society, particularly in Western industrialised nations where the unemployment rates are high and rising and access to financing is limited, although recent official data and leading indicators suggest that their economies have been picking up.

Take the US economy. It may have emerged from a prolonged recession after the injection of the massive government stimulus packages into its system. But credit is still hard to come by for the bulk of its citizens and businesses, and its labour market conditions are still weak, with the unemployment rate reaching a 26-year high last month at 10.2%. Situations like these may take a bit longer time to heal. The woman’s debtor, for instance, may likely need more time to rebuild wealth and capacity to repay dues.

(The joblessness in the United States, according to some professionals, is expected to bottom out only in the first quarter of next year. Last month, the US government estimated the United States’ gross domestic product (GDP) for the third quarter of the year to have grown at an annualised 3.5%, but the revised number put the actual growth rate lower at 2.8%.)

The scenario is quite different in Malaysia, and most probably in many other Asian countries as well. The rebound of the region’s economy, led by China, is outpacing the rest of the world and it is seen to be gaining momentum.

The Asian Development Bank, for instance, forecasts developing Asia to grow about 3.9% this year and 6.4% next year. Unemployment rates also seem to have improved for most countries in the region, and there is easy access to liquidity, which although viewed negatively, is said to have contributed to the increased risk of new asset bubbles forming in the region.

Last week, the Department of Statistics announced that Malaysia’s GDP for the third quarter of the year contracted 1.2% year-on-year. Although still negative, the number was a vast improvement, compared with a contraction of 3.9% in the second quarter and 6.2% in the first quarter. It was also reported earlier that the labour market of the country had improved with the unemployment rate in the second quarter standing at 3.6%, compared with 4% in the preceding quarter. This was amid a growing labour force in the country during the second quarter.

According to Deputy Human Resources Minister Datuk Maznah Mazlan, the current jobless rate of less than 4% indicates that the nation has technically achieved full employment.

No doubt, such official data paint a rosier picture of the Malaysian economy compared with the earlier part of the year. But do they really mean anything to the man on the street?

StarBizWeek speaks to four individuals from different walks of life to find out.

For Bobby Raj, 43, who operates a small trading company dealing with electronic products in Ipoh, the worst is definitely over for him. Orders are slowly trickling in from local manufacturers.

“Small orders, but enough to get by for the moment, while we wait for better days ahead ... hopefully, they will come,” he says.

Raj had earlier thought he had to fold his business by the second quarter of the year because he had not been receiving any order from his clients at all for more than six months. But he decided to persevere for a while longer after reading about some green shoots emerging in the economy. He also changed his strategy by turning to local manufacturers after having served mainly the foreign markets for more than five years.

“With so much talk about China and India emerging as the next economic giants, maybe I will also try my luck there. The only problem for me, though, is perhaps the language barrier,” Raj jokes.

“So, maybe I will find some partners, but such plans are not so plausible for me at the moment,” he says

As for Raj’s friend, Steven Tan, also 43, who operates a popular restaurant in Ipoh, his business has also “improved a lot” over the past few months, compared with how it was in the first half of the year.

Although his “current flow of income is nowhere near what it used to be in the boom times of the mid-2000s”, he says he still feels contented. At least, there is more hope now, he says, as the number of patrons at his restaurant has been increasing gradually by the month.

“Confidence is back, and people are now more willing to spend on dining out,” Tan says.

The bullish sentiment of the local consumers and their willingness to spend are reflected in the consumer sentiment index (CSI) as measured by the Malaysian Institute of Economic Research. According to the local think-tank, the CSI has been in the positive territory since the second quarter of the year, with the index exceeding the benchmark 100 points to settle at 105.8 in that quarter and 105.4 in the third quarter.

Despite an improved market condition, Tan has ruled out any plan for expansion at this juncture.

It’s a different story for Robin Ng, 30, who operates an “organic meat” restaurant in SS2 Petaling Jaya. Opened just five months ago, the outlet is already enjoying “brisk business”, and this has prompted Ng and his partners to plan for another outlet in the Klang Valley before Chinese New Year.

“We are still doing market research on a couple of locations which we deem suitable,” Ng says, adding that his company’s vision is to dominate the local “organic meat” food and beverage market within the next two to three years.

As for Aznita Azmil, 31, who is attached to a private company in the Klang Valley as an analyst, her concern is mainly about the possibility of her employer using the sluggish economy as an excuse to reduce bonus payments or give poor salary increments.

On a personal level, she says her spending pattern has not changed much throughout the changing scenario of the local economy as she considers her income as quite stable.

Early retirement is possible

ANYONE contemplating an early exit from the rat race faces just as many rewards as they do risks. The most obvious reward: Early retirement means more time to live life instead of working. On the other hand, there is always the risk of running out of money needed to survive the later years of life.

If the purpose of early retirement is simply ceasing to work because you are tired of working, this in itself may not lead to a fulfilling retirement lifestyle. Be sure you have something to do that occupies your time, interests and takes advantage of your talents. It will be even better if you know your life goals and purpose for your early retirement because doing something meaningful will keep you mentally healthy. You don’t want to be waking up everyday wondering what to do with your life.

You may experience these different stages if you decide to retire early:

Stage 1. The active years: This phase may be typified by a “very active self-indulgent behavior”. You start doing things now that you were constrained from doing before. These new opportunities can require spending of your financial reserves.

Stage 2. The legacy years: In this period, you may to be less self-indulgent and more concerned with legacy or relationship building with people. This can also be a time of “giving service to others,” either to the community, family and friends. Otherwise, you may experience loneliness or mental depression, which can affect your physical health.

During this legacy phase, you also need to plan for a permanent dwelling including a support system and medical assistance for old age. You have to review your financial situation to ensure that your financial nest egg continues to generate growth for stage 3.

Stage 3. The golden years: This is when life’s endgame is played out. You may look back on life and feel a sense of fulfillment. Success at this stage leads to feelings of wisdom, while failure can result in regret, bitterness, despair and financial depression.

The risks of not having enough

You need to be “in the driver seat” of your investment portfolio to ensure constant growth because your retirement lifestyle will depend on what your investment portfolio can generate for you. Your investment profits must replace your career income. Hence, you cannot second guess in making financial decisions. You must know the answers to the following important questions about your financial reserves:

● What kind of retirement life do you want for yourself so that your financial reserves can last a lifetime?

● If you are presently single, would you want a family, children or companion during your retirement? Be aware that this may deplete your financial reserves.

● If you have a family now, what kind of lifestyle does your family want that can affect your financial reserves?

● How good are you in your investment skills and choosing the right investment products for your financial reserves?

● When your financial reserves run out, what is your contingency plan?

Actions speak louder than words

To the early retirement wannabes, realising your early retirement dream means investing your money and getting into a debt-free situation as soon as possible. It is about making sensible decisions about your life and financial matters.

You can begin by creating a process of gradual change with plenty of mental planning and making adjustments to fit an early retirement mindset and life expectations.

Mastering your investment skills and getting good advice will become your retirement priority. So, start your investment process today by considering the following:

● Can a bad economy and financial markets destroy the value of your financial nest egg?

You need to be cautious of being lulled into investment products that project average returns. An average doesn’t take into account the possibility that there may be several years of below-average returns that could force you to dip into your investment principal.

● Will inflation cut down your purchasing power? Watch out for the ravages of inflation.

A portfolio can earn handsome returns, but if the cost of living increases at a faster clip, retirement can be jeopardised.

So you will need assets that will grow over time and provide a hedge against inflation.

● How reliable is your investment income? Weigh this carefully when you need a continuous stream of income to pay your daily expenses.

When there is a need to cash out your investment principal during retirement, you will need to review your lifestyle and practice frugal living.

● What kind of investment choices will fit your financial needs? Take your time to understand the types of investment products in the marketplace because a choice of investments that are risky or not easily converted into cash can affect your retirement living. Unless you can quickly find a job, you can be caught in a cashless situation.

At the end of the day, only if you are proficient in your investment skills and can build sufficient wealth, will you be in control your retirement destiny. But a poorly planned and executed transition into retirement can mean you may end up living dangerously!

Where’s the money going?

As business and commerce began to recover, investors may want to know where to put their money, especially since uncertainty in the form of job losses and the size of fiscal deficits continue to haunt the more advanced economies.

Governments have pumped in trillions of US dollars to unlock gummed-up credit markets and to stimulate domestic demand as trade slowed and external demand dried up.

Schroder Investment Management Ltd head of multi-asset for Asia Pacific Al Clark tells StarBizWeek that the global economy faces a W-shaped recovery with an upturn in growth this year followed by a moderation in the first-half of 2010.

“We expect the world economy to experience a mild recovery during the second half of this year, due to the turn in the inventory cycle and expansionary fiscal policy,” he says.

But Clark cautions that growth is expected to fade in the first half of next year once the impact of the inventory cycle has passed and consumer spending remains constrained by ongoing de-leveraging among households and higher commodity prices.

“Given this current market environment it makes sense to spread investments across a wide range of opportunities, so as to protect against losses from any one particular investment as the underlying fundamentals are fluid and changing,” he says.

Clark says the stimulus packages and expansionary monetary policy of governments around the world has left a trail of large deficits and associated debt burdens.

He says investors are now beginning to focus on the size of these deficits while “there is also the issue of trying to kick start a debt-laden consumer by offering them more debt”.

Morgan Stanley Research analysts led by Jonathan Garner says in an early November report that there were headwinds lurking around the corner for emerging market equities in the form of monetary policy tightening in Asia and the US and, higher crude oil prices.

“Valuations are neither expensive (versus 24 months ago) nor cheap (versus 12 months ago) in our view,” he says, adding that on a base case of 40% US dollar earnings-per-share growth, the MSCI Emerging Markets index is trading at 13.4 times 2010 estimated price earnings ratio.

Garner says the scenario-weighted year-end 2010 price target for the MSCI Emerging Markets index is 1,200 representing 28% upside from current levels and 22% above previous target price.

Clark advises diversifying a “mainstream” portfolio of equities and bonds by adding an exposure to a varied range of different assets from higher risk equities and bonds to alternative assets like property, commodities, hedge funds and private equities.

He says this can, at the overall portfolio level, lower volatility and increase potential returns over the long-term in what is becoming an increasingly complex investment environment.

Clark is more bullish on equities and have begun to trim positions away from bonds as the credit story “has probably seen the best part of its rally”.

However, he feels that even though spreads have narrowed, high-yield and investment-grade bonds still have further gains ahead as investors continue to move into these papers from the money markets.

“Although the markets have run a long way, we believe that strong liquidity conditions and continued earnings growth should remain supportive while the return of mergers and acquisition activity bodes well for equity markets,” Clark says.

He says emerging markets still gives the best exposure given the strength of the liquidity theme but some caution is warranted as markets “are starting to look overheated”.

“Within Asia, we prefer South Korea given that the economy has moved through the inventory correction more rapidly than many of its peers in the region. This economy also boasts a stronger fiscal position relative to markets elsewhere,” Clark adds.

He remains “neutral” on property as it is showing early signs of bottoming after significant price falls but was “positive” on commodities, specifically agriculture and gold.

Think critically when you buy that house


TWO weeks ago, we ran a piece on the importance of looking at details over and above location, pricing and the reputation of the developer. The piece highlighted the importance of installing smoke detectors, a sprinkler system and an adequate number of lifts in a condominium development.

A developer who is building a 38-storey condominium in SS2, Petaling Jaya called to say that the high-end project will have three lifts, instead of two as published.

Here is some food for thought. Another developer will be launching a 20-storey Bukit Jalil project comprising several blocks on 2.5 acres. It will be a high density project and each block will have three lifts.

A 20-storey condominium project in Kepong, Kuala Lumpur, launched in 2003, also has three lifts. The same developer is now building a 40-storey building. It will have four lifts and one service lift.

As a developer builds upwards, access becomes increasingly important. That is why some very high-end projects around the KLCC city centre has their own private lift lobby with one or two lifts serving one single unit.

It is up to buyers to press developers to have a variety of foliage.

When one considers buying into a condominium project, one pays a premium for the higher floors. The view tends to be better as one goes higher, it is cooler and there are less mosquitoes. While there are advantages of buying into a higher floor, this should be balanced with accessibility.

If you have the resources to buy the penthouse, should you not consider the accessibility to get your basement car park or to level ground? The lift is the only way. You are already paying a premium for that unit and you are already compromising by sharing the lifts with everyone who lives below you. Hence, the number of lifts that the project has is very important, especially if you are going to be at the very top.

From the penthouse, we take the lift to the basement car park. Although this may be a strata-titled project – it is gated and guarded – the basement car park can be a security issue. Buyers tend to be enchanted with the show unit with no consideration for the car park.

If the project is already built, check out the basement parking. Does it have a high-ceiling? Is it well-lit and airy? Are there many nooks and corners that allow people to hide in shadows? Are the parking bays large enough or is it a tight squeeze for larger sedan?

It would be a good idea to ask for a copy of the basement car park plan and imagine the route from the lift lobby to your parking bay.

If there are elderly or wheel-chaired family members who will be living in the condominium unit, they will have problems if they have to manoeuver a flight of stairs, or even several steps, to get to the parked car.

This takes us to the importance of a project having a pick-up and drop-off points. Having a nice high-ceiling lobby may be impressive, but is there a large enough area where your family members and friends can collect you or drop you off with no hassle? Or will you have to walk to the security guard house and wait?

Since we are considering the amenities outside the building, something has to be said about landscaping. There was a time when palm trees were very popular. It makes no sense to plant trees which shed their tiny leaves near a pool. However, developers’ enchantment with palms is something that has to be weighed. Developers tend to like palms instead of trees which shed their leaves daily. While palms are easier to maintain as the fronds do not shed weekly and because the fronds come in one piece, they are easily picked up and thrown away.

While some consider them aesthetically pleasing, they are not shady. Some high-rise projects today come with a landscaped park.

It makes no sense to have a one-acre park planted with just palms. It is up to buyers to press developers to have a variety of foliage, and that includes large trees which provide shade, as well as shrubs.

Friday, November 27, 2009

A new product from Green Packet to keep your home safe

It sees increasing demand for surveillance products

PETALING JAYA: Green Packet Bhd hopes to sell 500 units of the IRIX 123, an Internet protocol-based surveillance system, a month in the first year of its introduction.

Senior general manager Kelvin Lee, who was upbeat on the company’s latest offering, said it saw a trend of increasing demand for surveillance products.

“The product is targeted at home users and small and medium-scale enterprises locally,” he said at the launch of IRIX 123 yesterday.

Lee said the company had a preview of the IRIX 123 with potential customers overseas and some had already expressed interest. “We are expecting some orders from overseas.”

Kelvin Lee with the IRIX 123. He says the product is targeted at home users and small and medium-s cale enterprises locally.

The IRIX 123 is a do-it-yourself surveillance system which can be accessed remotely from a website portal or a 3G phone.

“As long as you have an Internet connection via a computer or 3G or WiFi-enabled mobile phone, IRIX 123 can be accessed,” Lee said, adding that the surveillance system was designed to be installed in just three steps.

To a question, he said the savings for consumers differed as the surveillance systems in the market varied. “It is not an apple-to-apple comparison. It’s hard to compare but our products have their own value propositions.”

Green Packet has claimed that IRIX 123 is priced to be the best value-for-money solution in the market and the simplest to install.

While he did not disclose the investment cost for the product, Lee said Green Packet spent about 20% of its revenue on research and development annually.

“We make the allocation to fund the innovation of new solutions,” he said.

Meanwhile, Lee said the IRIX 123 would indirectly contribute towards increasing the sales of Green Packet’s WiMAX products, as the new surveillance system needed a WiFi connection to be activated. “For those who have yet to install the broadband facility, this will be a two-in-one package.”

The system will be distributed through broadband resellers and the retail price is RM1,588 for two cameras.

In conjunction with the product launch, a complimentary two-gigabit memory card and video management software are also included.

To a question, Lee said the installation of its surveillance systems for one’s own consumption was not against the law. “It doesn’t infringe the law unless you were to install it in another person’s place. If I install it at your house then it’s against the law as it would be an invasion of your privacy.”

“It is quite common nowadays to install a surveillance system at home or in your own shop,” he said.

Enough time for goods and services tax implementation

PETALING JAYA: Experts believe the 18-month period given before the goods and services tax (GST) is implemented in late 2011 is enough time to properly disseminate information and educate consumers and businesses.

Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said yesterday the GST, which would replace the sales and services tax (SST), would be implemented 18 months after the second reading of the GST Bill next March. The bill would be introduced in the current sitting of Parliament, which ends on Dec 15.

Husni said the Government planned to impose the GST at 4% but selected essentials such as rise, sugar, cooking oil, flour and domestic transportation would be exempted.

Currently, Britain’s value-added tax is at 15% while Singapore’s GST is at 7%.

KPMG Tax Services Sdn Bhd executive director Tan Eng Yew said that 18 months from the second reading of the bill to implementation “is fair”.

Federation of Malaysian Manufacturers president Tan Sri Mustafa Mansur: The association reserves comment on the Government’s decision until after a meeting with the Finance Ministry. "We’re having a briefing with the ministry next week,” he said.

“From what I understand from the experience of other countries, the bare minimum is 12 months,” he told StarBiz.

Tan said there was already some awareness of the GST as it had been in the news in recent months. “To flow the information through may take some time,” he added.

Tan said the impact of the tax would depend on how it was implemented as the length of the supply chain of various goods and services and how much was taxed would matter before the product or service went to the market.

Consumers currently pay 5% services tax and a 10% sales tax under the SST where the sales tax is only collected at the point of import or when the local manufacturer sold the goods for the first time while tax is only imposed on only a few services.

According to the experts, under GST, the tax would be collected at value-added points from production to the final point of sales.

Proper paperwork would have to be produced as proof of tax paid at each level, which would give a better and more transparent sense of the real cost of goods and amount of tax paid.

“If properly implemented, the impact would be minimal,” Tan said. Husni has said the consumer price index would not increase due to the GST.

PricewaterhouseCoopers Taxation Services Sdn Bhd senior executive director Wan Heng Choon said the 4% tax rate was a sign the Government had taken heed of the concerns of consumers and businesses and the impact of the tax on them.

“The decision to give enough time before implementation is also a good move as it will give the public a chance to be informed about how the tax works as a lot of the reservations on the tax is due to the lack of understanding of how it will operate,” he said.

Prime Minister Datuk Seri Najib Razak was quoted by Bernama as saying in New York that the tax would be introduced “very gently”.

The 18-month period, Najib said, “will allow the public to give their comments, engage them, and if we find it necessary to fine tune it, we’ll do so.” The Government expects an additional RM1bil in annual revenue one year after the GST is introduced.

Meanwhile, the Federation of Malaysian Manufacturers (FMM) president Tan Sri Mustafa Mansur said the association reserved comment on the Government’s decision until after a meeting with the Finance Ministry.

“We’re having a briefing with the ministry next week,” he said.

The FMM, in a statement before the tabling of Budget 2010 last month, had been against the implementation of the GST. Among the concerns the federation voiced out was that the GST would not benefit ordinary consumers who were non-income tax payers as they would now have to pay tax for everyday consumption of goods and services.

“They would not benefit from the income tax reduction that is expected to accompany the GST implementation,” it said.

New banking laws for swift action during future economic crisis

PETALING JAYA: The new Central Bank of Malaysia Act 2009, which repeals one of the oldest laws in Malaysia, the Central Bank of Malaysia Act 1958, is to strengthen Malaysia’s resilience to financial crises in a globalised environment.

According to a Bank Negara statement, the new Act provides comprehensive provisions to ensure swift and orderly resolution in the event of an imminent financial crisis to reduce its impact and costs to the domestic economy and to sustain public confidence.

“Provisions have been made for heightened surveillance, pre-emptive actions and resolution powers including the extension of liquidity assistance to entities not regulated by the central bank but which pose risks to the overall financial stability,” it said.

The new Act also provides for Bank Negara to have oversight over the money and foreign exchange markets, payment systems and for enhanced arrangements for cooperation with other supervisory authorities.

The exercise of the powers for the purposes of achieving financial stability shall be decided by the Financial Stability Executive Committee (FSEC) established under the Act.

The FSEC will comprise the governor, a deputy governor and at least three other members to be appointed on the recommendation of the bank’s board of directors.

Meanwhile, monetary policies, which are to maintain price stability while giving due regard to developments in the economy, would be formulated and implemented autonomously by a Monetary Policy Committee (MPC) established under the Act.

The new Act clearly outlines that the MPC would comprise seven to 11 members, including the governor and deputy governors, who will meet no less than six times a year.

“The members of the MPC must be persons of probity, competence and sound judgment with relevant expertise and experience,” the new Act states.

Other extensive safeguards of the new Act prescribe that monetary policy would only be formulated at a formally convened meeting of the MPC with a quorum of not less than two-thirds of its members.

As part of its efforts to enhance the governance framework to be more robust, the Board Governance Committee, the Board Audit Committee and the Board Risk Committee, consisting only of non-executive directors, would be established to assist Bank Negara’s board of directors in its oversight role of the management and performance review of the bank.

Consistent with the goal to promote Malaysia as an international centre for Islamic finance, the Act also gives due recognition to both the Islamic and conventional financial systems operating in parallel in Malaysia.

The new Act also provides for an enhanced role of the Syariah Advisory Council on Islamic Finance (SAC) whose members are appointed by the Yang di-Pertuan Agong on the advice of the finance minister after consultation with the bank.

The SAC “shall be the authority for the ascertainment of Islamic law for the purposes of Islamic financial business”, the new Act states.


For Bank Negara statements click here

Italian PM's wife seeks pricy US$5.3mil monthly alimony in divorce case

ROME: Premier Silvio Berlusconi's estranged wife is seeking euro43 million (US$65 million) a year in alimony in a divorce case she launched after her husband was embroiled in a sex scandal, a bid that was immediately rejected by the billionaire media mogul, an Italian newspaper reported Thursday.

Veronica Lario's lawyer, Maria Cristina Morelli, declined to comment on the report in Corriere della Sera.

Berlusconi's lawyer, Ippolita Ghedini, also would not comment on the substance of the report, telling the ANSA news agency that a couple's separation should be treated with "discretion" and that any such leaks were "despicable."

As reported, the alimony request, part of separation procedures, would work out to more than euro3.5 million ($5.3 million) a month.

FILE - In this Friday June 24, 2004 file photo, Italian premier Silvio Berlusconi, right, and his wife Veronica Lario wait for President George W. Bush and first lady Laura Bush at the Villa Madama residence for a social dinner, in Rome. On Thursday, Nov. 26, 2009 leading Italian newspaper Corriere della Sera says Premier Silvio Berlusconi's wife is seeking euro 43 million ($65 million) a year in alimony in her divorce case against her husband in the wake of a sex scandal. The newspaper also says Thursday that Berlusconi has rebuffed Veronica Lario's demand, which works out to more than €3.5 million (about $5.3 million) monthly. (AP Photo/Susan Walsh, File)

Couples in Italy must be legally separated before divorce can be granted.

Corriere della Sera, citing what it said were "informed sources," said Berlusconi, Italy's second-richest man, made a counteroffer of euro200,000 monthly, and indicated willingness to go up to euro300,000 monthly.

Berlusconi, 73, is listed by Forbes magazine as the 70th richest person in the world, worth $6.5 billion.

Lario, a 52-year-old former actress, said earlier this year she was fed up with Berlusconi's infatuation with young women and was seeking divorce.

The scandal swirls around several parties and dinners at Berlusconi's Sardinia estate and Rome residence.

A southern Italian businessman, who has been arrested in a cocaine probe, has told investigators he procured some 30 young women to attend the parties in hope of currying favor with the premier.

Among the guests was a prostitute who has said she spent the night with Berlusconi in the bedroom of the Rome residence. Berlusconi, who says he is "no saint," has denied ever paying for sex.

He isn't under investigation in the scandal.

Lario, Berlusconi's second wife, wed him in 1990 after several years together.

She bore him three children, now in their 20s.

Corriere della Sera said Lario was seeking alimony that would allow her to maintain the style of life she now enjoys.

The couple's children each hold a sizable stake in Fininvest, which groups Berlusconi's business interests in media and other companies.

According to the newspaper, Berlusconi already has given Lario some euro60 million ($90 million) to euro70 million ($105 million), apparently in the interests of the children.

Berlusconi also has two children from his first marriage.

Malaysia needs quality and affordable broadband

WE have heard about the state of our broadband once too many times. The question to ask is do we pause a moment to listen to what experts or even users have to say or merely dismiss what they say?

I am referring to Singapore Business Times quoting Intel Electronics country manager for Malaysia and Brunei Ryaz Patel as saying that consumers here pay too much for broadband services and a major reason for that is Telekom Malaysia Bhd has a hold on the submarine cable landing rights.

He said there was no shortage of gateway service providers seeking landing rights because of the pent-up demand for quality bandwidth, but the Government must de-regulate or liberalise gateways to improve competitiveness by providing higher broadband speeds at lower costs.

During a press briefing on Intel’s roadmap for 2010, he observed that Malaysian consumers pay significantly more for broadband, but even to buy broadband wholesale as a service provider was “frighteningly expensive” compared with its neighbours.

Singapore users pay nearly US$85 (RM286.56), or US$10.20 mbps, for the fastest bandwidth of 100 megabits per second (mbps). In comparision, for 4mbps in Malaysia, consumers pay US$76, or US$35 mbps. Vietnam’s 3mbps bandwidth – although a tad slower – costs users US$50.55, or US$16.85 mbps, the report said.

This may not be surprising but coming from Intel, it says a lot. It also comes just weeks after the Australian Business Council said Australian businesses were put off by the slow Internet speed in Malaysia.

Malaysia Australia Business Council vice-chairman Michael Halpin said large technical documents from Australia had difficulty getting sent over because of the poor quality broadband.

“Australian and American investors see this as a nuisance and an impediment to them to do business successfully here,” the report said.

Patel believes that if Malaysia aspires to be a knowledge-based society, it needs to get more computers as well as quality and affordable broadband into more homes.

“(And) the single biggest link has to do with landing rights,” the report quoted him as saying.

Both arguments are valid. There have been hundreds of complaints by consumers over the past few years, many of which have fallen on deaf ears. Recently the Government acknowledged that the quality of Internet was not up to mark and prices consumers pay are high.

If our neighbours are able to offer better connectivity and at cheaper prices, what is Malaysia’s excuse? Investors will not wait as they have choices for foreign direct investment destinations.

The best is to listen and make changes where necessary. A liberalised environment is better than protectionism.

If there is a need to open the gateway to create competition that can lead to better service, we should be proactive about it and not continue to indulge in protectionism.

At the end of the day we have to shift into higher gears to move towards the innovation bandwagon and time is not on our side as our neighbours are working overtime to get to the finishing line first.

Oil slides below US$76 in Asia Friday

BANGKOK Oil prices sank below US$76 a barrel Friday in Asia as investors curtailed their risky bets on commodities amid uncertainty about the global fallout from Dubai's financial troubles.

Benchmark crude for January delivery was down $2.09 to $75.87 at midday Bangkok time in electronic trading on the New York Mercantile Exchange, extending losses from European trade. Trading in the U.S. was closed Thursday for the Thanksgiving holiday.

Just a year after the global downturn derailed Dubai's explosive growth, the emirate is now so swamped in debt that it's asking for a six-month reprieve on paying its bills. Its main development engine, Dubai World, has said it would ask creditors for a "standstill" on paying back its $60 billion debt until at least May, news that roiled markets worldwide.

"The main factor in the fall seems to be the events in Dubai," said Nick Raffan, head of mining and resources research at consultancy Fat Prophets in Sydney.

"People are suddenly reevaluating their risk appetite."

After zooming to $147 a barrel in July 2008 and crashing to $32 in December, oil prices have meandered in the high $70s for more than a month as investors weigh a slow U.S. recovery against surging Asian demand.

Raffan said oil's losses Friday were driven by increased wariness about investment in riskier assets such as stocks and commodities rather than new information about actual demand for oil.

However, recent figures on durable goods orders in the U.S. suggest growth in demand for oil is likely to remain subdued for awhile, he said.

In other Nymex trading, gasoline for December delivery was down 4.63 cents at $1.9513 a gallon and natural gas was off 7.8 cents at $5.085 per 1,000 cubic feet.

In London, Brent crude for January delivery fell 15 cents to $76.84 on the ICE Futures exchange. - AP


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Thursday, November 26, 2009

Toyota to replace gas pedals on 4 million vehicles

WASHINGTON (AP): Toyota plans to replace the gas pedals on 4 million vehicles in the United States because the pedals can get stuck in the floor mats and cause sudden acceleration, a flaw that led to the sixth-largest recall ever in the U.S.

The repairs are a critical step to restoring the reputation of the world's biggest automaker, which suffered a blow when the recall was announced in September after years of making safe, reliable cars and trucks.

In plans outlined Wednesday, dealers will offer to shorten the length of the gas pedals by three-fourths of an inch (about 2 centimeters) beginning in January as a stopgap measure while the company develops replacement pedals. New pedals will be installed by dealers on a rolling basis beginning in April, and some vehicles will get a brake override system as a precaution.

The massive recall is the largest in the U.S. for Toyota Motor Corp. The Japanese automaker had earlier told owners to remove the driver's side floor mats to keep the gas pedal from becoming jammed.

Popular vehicles such as the midsize Camry, the top-selling car in America, and the Prius, the best-selling gas-electric hybrid, are among those to be fixed. The recall also includes the luxury Lexus ES350, the vehicle involved a fiery fatal accident in California that focused public attention on the danger.

Spokesman Irv Miller said Toyota is "very, very confident that we have addressed this issue." Toyota has no reason to believe that there are problems with the cars' electronic control systems, he said. An electronic-control malfunction also could cause unintended acceleration.

Toyota officials said the floor mats are only sold in the U.S., and the recall would be limited to North America.

Toyota would not say how much the repairs would cost, but analysts expected them to be extremely expensive because of the work involved and the manufacturing of new pedals. Toyota also said it would provide newly designed replacement floor mats.

Toyota developed a sterling reliability reputation but faced challenges as it rapidly expanded. While recalls do not always indicate poor reliability, Toyota executives are concerned about large numbers of recalls and have pushed for improved quality controls.

In a separate action, Toyota announced Tuesday the recall of 110,000 Tundra trucks from the 2000-03 model years to address excessive frame rust.

"Their reputation has taken a hit because the actual quality has taken a hit," said Aaron Bragman, an automotive analyst for the consulting firm IHS Global Insight. "That's absolutely critical for Toyota to get that fixed because that's the central pillar that they've built their business on."

The recall involves 3.8 million vehicles, including the 2007-10 Camry, 2005-10 Avalon, 2004-09 Prius, 2005-10 Tacoma, 2007-10 Tundra, 2007-10 Lexus ES350 and 2006-10 Lexus IS250/350.

The National Highway Traffic Safety Administration said 4.26 million vehicles would be covered, including new cars and trucks sold or manufactured since September.

The nation's largest cumulative recall occurred in several increments during the past two years and involved 14 million Ford vehicles with faulty cruise-control switches that could cause fires.

The largest single recall happened in 1996 involving 7.9 million Ford vehicles that needed new ignition switches.

Mercedes-Benz sets 4,000-unit target

SERI KEMBANGAN: Mercedes-Benz Malaysia Sdn Bhd expects the improving market landscape and launch of new car models to drive sales of its passenger cars to over 4,000 units next year.

President and chief executive officer Peter Honegg said next year’s passenger car market was projected by the Malaysian Automotive Association to be better than this year.

“We were very fearful at the beginning of the year and would have been happy to do what we did in 2007, which was selling 3,600 passenger cars,” he said during the media launch of the new Mercedes-Benz E-Class yesterday.

Florian Mueller (left) and Peter Honegg with a Mercedes-Benz EClass.

He said the company sold 4,200 passenger cars last year and planned to sell between 200 and 300 units more than its initial target of 3,600 units this year.

Honegg said Mercedes-Benz currently held about 43% in the luxury car segment and it aimed to improve its position “a little” next year.

“There are more competitors coming in but we try to maintain the leading position in this segment,” he said.

The Mercedes-Benz E-Class to officially launched today would be available in three variants, with the starting retail price of RM455,888 (on-the-road without insurance).

Mercedes-Benz Malaysia vice-president of sales and marketing for passenger cars Florian Mueller said the company aimed to sell more than 1,500 units of the newly-launched E-Class sedan cars next year.

The company has received over 600 bookings for the new cars.

Maxis still attracts interest

PETALING JAYA: A week after its listing on the stock exchange, there remains sustained interest in Maxis Bhd, the country’s leading mobile communications service provider by customer base and revenue.

“There’s still a lot of interest in the company,” said Choo Swee Kee, chief investment officer at TA Investment Management Bhd.

Maxis shares topped the most active counter list yesterday with more than 26.87 million shares changing hands.

Funds that were allocated smaller portions during Maxis’ initial public offering were building up more significant positions while retailers who missed out on the opportunity were also looking to buy on weakness, he said.

“The company enjoys a good perception and those who want to ride on its brand name and good management are looking to nibble,” Choo told StarBiz.

Maxis shares were listed on Bursa Malaysia on Nov 19, opening for a premium of 9% over its institutional price of RM5.

It closed at RM.5.42 that day after hitting a high of RM5.50, and accounted for more than half the total value of shares transacted in the entire market.

On Nov 24, the stock saw some selling pressure, sending shares to a low of RM5.20. However, the price recovered yesterday, adding 10 sen, or 1.92%, to close at RM5.30.

“Looks like bargain-hunting had come earlier than expected,” Pong Teng Siew, head of research at Jupiter Securities said.

“However, I’d say a good time to buy is probably somewhere at the low-end of RM5 ,” he said.

Maxis shares are currently trading at a premium above industry price earnings of 12 times – it is trading at about 17 times, based on financial year 2010 earnings per share estimate.

“While we see strong top-line growth prospects for Maxis from rising data usage, margin pressure and more importantly valuations, which are at the very top end relative to its regional peer group, are key factors that we believe will drag on share price performance,” Macquarie Research said in a note to clients yesterday.

TA’s Choo says the current price was “fair” but certainly not a “bargain”. “I’ll probably wait till the stock goes a little lower first before buying,” he said.

Maxis is not favoured for its growth potential due to the saturated conditions of the mobile phone industry in Malaysia but rather is looked upon as “yield play”.

Maxis has said that it intends to pay out at least 75% of net profits as dividends.

Meanwhile, of the five companies that have issued calls on the counter, two have a “buy” call, two a “hold” call while one has an “underperform” call, according to Bloomberg data.

On Monday, international fund managers welcomed the listing of Maxis, which they said had “stirred their interest” when it became one of the largest public issues in Asia at RM11.2bil.

Maxis’ earnings before interest, taxes, depreciation and amortisation in 2008 amounted to RM4.4bil with revenue coming in at RM8.45bil.

UBS: Worst of global economic crisis over

KUALA LUMPUR: The worst of the global economic crisis is over and developing countries like Malaysia can expect to register 6% gross domestic product (GDP) growth next year, according to UBS Investment Bank (global economics) managing director Paul Donovan.

“Our GDP forecast of 6% for Malaysia is slightly higher than concensus but we are sticking to it,” he told a media roundtable on Global Macroeconomics Outlook 2009 yesterday.

Donovan said in South-East Asia, Malaysia was expected to lead the pack in GDP growth, ahead of Singapore, Thailand and Indonesia, which were all expected to record lower GDP growth (5% or below).

Paul Donovan and Leong Fee Yee at the media roundtable.

“By and large, Malaysia has not been significantly affected by the global economic crisis, as compared with the West,” he said, adding that the United States and Europe were now on a growth trend, albeit slowly.

He said UBS expected the growth trends in the West to continue to be slow, at least for the next couple of years, and that it might even take five to six years for the spare or excess stock capacity to be absorbed by the global markets, as many were still trying to reduce their inventory levels.

“While the worst is over, banks in the developed world are still cautious with their lending practices,” Donovan said, adding that many small and medium-scale enterprises were still facing a credit squeeze by financial institutions.

On the Asian front, he said, the economic fundamentals were much stronger, lead by China and India.

“We expect a V-shaped recovery for these countries, including Malaysia.”

He said that there was very little past impairments or obstacles to economic growth, as opposed to the West.

Donovan also said inflation, unemployement rates and interest rates were not expected to rise significantly in the region.

“Infact, we expect a strong rebound for Malaysia,” he said, but conceded that the country as a trading nation might have been slightly affected by lower export demand, especially from the developed world, during the peak of the global economic crisis.

During the crisis, he said, government spending and pump-priming activities worldwide had lifted consumer spending confidence.

“But we foresee lower government spending next year and expect the private sector and the domestic market to be the main drivers of growth.”

On the US dollar, Donovan said the currency might even strengthen in the coming months but was expected to weaken over the longer term.

On the stock market, UBS Securities Malaysia Sdn Bhd managing director and head of Malaysia Equities Leong Fee Yee said it was fairly healthy and that any upside would depend on the earnings performance of companies.

“And they (company earnings) have to be sustainable,” she said.

Fuel derivative loss puts MAS in the red

PETALING JAYA: Malaysia Airlines (MAS) reported a net loss of RM299.6mil for the three months ended Sept 30 compared with a net profit of RM38.1mil in the previous corresponding period mainly due to the loss of RM202mil in derivative mark-to-market on fuel.

At its results briefing yesterday, managing director/chief executive officer Tengku Datuk Azmil Zahruddin said the fourth quarter continued to be tough although there were signs of improvement in passenger traffic.

“Forward bookings for fourth quarter have been very encouraging. We are seeing some signs of recovery but yields remain under pressure.

Tengku Datuk Azmil Zahruddin (left) and MAS chief financial officer Mohd Azha Abdul Jalil at the results briefing Wednesday.

“Our strategy is to continue to strengthen our domestic and Asean operations and position ourselves for the recovery and growth of the long haul sector,” he said.

For the third quarter, the carrier posted pre-tax loss of RM297.1mil from a pre-tax profit of RM19.7mil a year ago, while turnover dropped to RM2.96bil from RM4.1bil before. Its loss per share stood at 17.93 sen from an earnings per share of 2.28 sen.

As at Sept 30, MAS’ cash and negotiable deposit balance stood at about RM2.5il.

“It’s (cash) lower than quarter two but we can still buy a lot of planes,” Azmil said.

MAS narrowed its operating loss to RM73mil for the third quarter from RM421mil losses reported in the preceding quarter, due to aggressive sales campaigns and highly competitive pricing which resulted in seat factor gaining 6.9 percentage points to 76.7%. The average yield for the period stood at 23 sen.

Its total operating expenditure decreased by 26%. Fuel cost and non-fuel cost dropped by 50% and 4% respectively.

The national carrier carried 3.3 million passengers during the quarter, the highest registered since early 2008. Its domestic operations remained strong with traffic volume up 20%.

For the nine months ended Sept 30, MAS posted a net loss of RM119.5mil against a net profit of RM198.1mil previously. Revenue was lower at RM8.3bil compared with RM11.6bil before while net loss per share stood at 7.15 sen.

Year-on year, the airline reported an operating loss of RM73mil compared with RM44mil operating profit previously.

Despite MAS’ RM202mil loss in derivative mark-to-market on fuel, Azmil said it would continuously review its competitive fuel hedging strategy.

“Fuel prices are on an uptrend. Competitive hedging is the right way to go as fuel prices remain volatile,” he added.

MAS hedged 57% of its fuel requirement for the remainder of 2009 at US$90 a barrel and 60% of its fuel needs at US$100 per barrel for 2010.

To a question, Azmil said forward bookings for 2010 were better compared with the current year. “It’s good news after all the gloom and doom. Our blueprint remains the business transformation plan 2 and we aim to transform into the World’s Five Star Value Carrier and we are accelerating the key business initiatives,” he said.

Without elaborating, Azmil said MAS had plans to introduce new destinations in the Middle East.

Asked if MAS would be increasing its fares due to its low yield, Azmil said MAS would continue to offer competitive and compelling fares.

“Increasing yield is not the same as increasing fares and it is not necessary to increase fare to boost yield,” he added.

MAS will lease two additional Boeing B737-800 aircraft next year to increase domestic and regional capacity.

“We have received 13 new ATRs for Firefly and MASwings and we have new aircraft deliveries from 2010 to 2015 which will allow us to deploy capacity in profitable routes and optimise yields through our new fleet and offerings,” Azmil said.

On the funding of its new aircraft, he said MAS had yet to decide as there were many options available. “We have a year from now before we receive the first aircraft in October 2010,” Azmil said.


Naza Kia plans to double sales volume with new Kia models

KUALA LUMPUR: Naza Group, through Naza Kia Sdn Bhd, plans to introduce four new Kia models in 2010 and expects to double its sales volume to 26,000 units.

Group executive chairman SM Nasarudin SM Nasimuddin said the new models would be replacements of the Sportage and Sorento multi-purpose vehicles, the all-new Kia Soul and a Forte coupe model.

“Next year will be an active year where we will launch various new models in different segments,” he said after the launch of the new Kia Forte yesterday.

Models pose with the new Kia Forte at the launch Wednesday.

He said plans were in the pipeline to export the Forte to regional markets such as Thailand, Singapore, Brunei and Indonesia.

“We need to discuss with the principal as we may have to address the supply constraint for the local market first,” he said. The Forte is manufactured at Naza’s Gurun plant in Kedah. Nasarudin said 23% of the group’s 2010 sales would come from the Forte, which represents the brand new design DNA of present and future Kia cars.

“We are optimistic of achieving 6,000-unit sales of the Forte in 2010, taking 11% of the non-national B and C segments,” he said, adding that so far some 300 bookings had been received for the model.

He said he was confident of achieving this target as the Forte was the only product in this segment which offered extensive features, normally found in premium cars, at attractive pricing.

The B segment refers to sedans such as Toyota Vios and Honda City, while the C segment includes Honda Civic, Nissan Sylphy and Mitsubishi Lancer.

“We have had much success with the C segment in particular, having sold close to 34,000 units of the Spectra since 2001. The C segment is among the strongest segments in the automotive industry and we believe the Forte will position itself as a major player in this segment,” Nasarudin added.

The Forte comes in three variants with two engine options – the 1.6-litre EX, 1.6-litre SX and the flagship 2.0 Forte. The 1.6-litre EX is priced at RM75,800, the 1.6-litre SX costs RM81,800 and the 2.0 Forte is sold at RM93,800.

How important is China to Malaysia?

CAPITAL TALK

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WHEN President Hu Jintao visited Malaysia on Nov 11-12, he was greeted with all the pomp and ceremony that symbolised his personal and nation’s immense importance. Such a grand treatment is only natural given China’s increasing influence on Malaysia’s economy and her fast ascent as an economic powerhouse.

Just how important is China to Malaysia?

Despite Malaysia’s confrontation with the communists in the 1950s and 1960s, Malaysia established formal ties with China as early as 1974, among the earliest to do so. In the 1980s and 1990s, Malaysia traded mainly with developed countries, namely, the United States, Europe and Japan.

However, this has changed dramatically over the years. In the early days of the 21st century, Malaysia’s export growth to China consistently outpaced that of the United States.

Therefore, China’s share of Malaysia’s exports climbed to 8.8% in 2007 and 9.5% in 2008. In the first nine months of 2009, China became Malaysia’s biggest export market, overtaking the United States. (Due to its big entrepot trade, Singapore’s market share is not directly comparable).

China is now the largest market for many of Malaysia’s major exports, especially commodity products.

This is important, as there were instances in the past when the exports of Malaysia’s electrical and electronic products were hit, it was commodity exports that played an important role in mitigating the adverse impacts on the economy.

Apart from trade, China is also becoming an increasingly important market for Malaysia’s tourism industry. In the 1990s, Japan used to be Malaysia’s largest source of tourist arrivals outside of the Asean region. Now, the role has been taken over by China.

To become an education hub in the region has been one of the noble goals of the Government for some time. In the early 2000s, a large number of Chinese students came to Malaysia to pursue their higher education.

In fact in 2002, close to 40% of all foreign students in Malaysia were from China. Although the number of Chinese students coming to Malaysia has fallen sharply since, China is still the second biggest contributor of foreign students in Malaysia. There was a significant rebound in Chinese students enrolling in colleges and universities in Malaysia last year.

As the China has been encouraging Chinese companies to venture overseas, Malaysia certainly would want to catch part of China’s foreign direct investment (FDI) outflow, especially when FDI outflows from western countries are expected to be weak in the next few years.

The US-led financial crisis has hit countries that are dependent on the US economy hard. Malaysia’s manufacturing sector has been one of the hard-hit victims.

As the global economic weight is leaning increasingly towards Asia and with China being the leader of the Asian block, it is only logical for Malaysia to give President Hu the highest honour it can.

KLCI up in early trade

KUALA LUMPUR: The KLCI was marginally up in early trade Thursday led by blue-chip counters. In the region, Asian stocks fluctuated, as shares of Japanese automakers declined after the US dollar traded close to a 14-year low against the yen.

Meanwhile, commodity producers gained after metal prices climbed.

According to HwangDBS Vickers Research Sdn Bhd, the benchmark FBM KLCI – which has been stuck inside a tight trading range the whole of this week – is expected to continue its sideways pattern today, possibly with a marginal upward bias.

Overall trading volume (at fewer than 800 million shares the past three days) will likely to go slow too as the holiday-shortened week comes to an end, HwangDBS said.

At mid-day, the KLCI was 2.56 points higher at 1,273.56 while Singapore’s Straits Times Index fell 0.11% to 2,789.81.

Tokyo’s Nikkei 225 rose 0.04% to 9,445.36, Taipei’s Taiex Index added 0.35% to 7,783.76 while Seoul’s Kospi Index added 0.34% to 1,617.32.

At Bursa Malaysia, 194 counters were up, 172 were down while 200 others were traded unchanged. There were 213.5 million shares done at a total value of RM183.384mil.

Among active stocks, Maxis advanced 4 sen to RM5.34 while Gamuda fell 9 sen to RM2.81.

HaiO rose 55 sen to RM6.70, Proton gained 15 sen to RM4.16, DiGi added 12 sen to RM22.04 and Johore Tin advanced 19 sen to 70 sen.

Among plantation stocks, IOI Corp added 11 sen to RM5.52 while United Plantations gained 10 sen to RM13.90.

Nymex crude oil in electronic trade was up 47 cents to US$77.49 per barrel.

Spot gold gained US$1.20 to US$1,193 per ounce.

The ringgit was quoted at 3.3765 to the US dollar.

Wednesday, November 25, 2009

Tune Talk eyeing 400,000 subscribers

It hopes to achieve target by leveraging on AirAsia and Tune group

KUALA LUMPUR: Mobile service operator Tune Talk Sdn Bhd is targeting to achieve 400,000 subscribers by year-end by leveraging its links with low-cost carrier AirAsia and the Tune group.

The company has already secured over 200,000 subscribers since its launch on Aug 19.

Chief executive officer Jason Lo said he was confident that Tune Talk would breach the 300,000 subscriber-mark by year-end based on the “rate it was going”.

“We’re looking at 300,000 to 400,000 subscribers by year-end,” he said after presenting prizes to its 100,000th and 200,000th subscriber yesterday, adding that Tune Talk was on track to signing up one million customers within a year of operations.

Lo said Tune Talk was currently registering an average of 4,000 new subscribers per day with an average revenue per user of RM45 per month. He said the company was targeting 6,000 subscribers per day by year-end.

The Tune group is the brainchild of AirAsia Bhd group chief executive officer Datuk Seri Tony Fernandes, who is also chairman of Tune Talk.

Lo said Tune Talk started offering its starter packs on board AirAsia flights last week.

“We are on board AirAsia flights and hope to maintain that partnership with them. We feel that we can become a relevant player in Asean, especially if we can leverage off AirAsia’s extensive network,” he said.

“Tune Hotels will also be launching 50 hotels by 2012. Right now, Tune Hotels (which has hotels in Malaysia and Bali, Indonesia) is doing 60,000 to 70,000 guests per month.

With 50 hotels, that’s three million guests and we have to service that as well,” Lo added.

He also said Tune Talk was in preliminary talks with two of Singapore’s three mobile operators to expand its services to the island republic and potentially offer zero or reduced roaming to its subscribers.

Tune Talk has been offering AirAsia E-Gift vouchers daily and RM100,000 personal accident coverage to its subscribers since its launch.

Operating as a mobile virtual network operator on Celcom (M) Bhd’s 2.5G network, Tune Talk charges a flat rate of 22 sen per minute for calls to any operator in Malaysia while an SMS costs 5 sen each.

It claims that its IDD rates are 10% to 30% cheaper than other operators

Penang Port invests RM1.1bil to upgrade facilities

PENANG: Penang Port Sdn Bhd (PPSB), the port operator, has invested RM1.1 billion over the last five years to upgrade infrastructures at the port and Container Terminal as part of initiatives to pump-prime the state economy, Chief Minister Lim Guan Eng said on Wednesday.

He said the huge investment had indirectly bolstered operations of the port and the terminal, key revenue contributors to the state economy.

Continuous upgrading of infrastructures at the Penang Port and Container Terminal is to provide shipping companies and other port users user-friendly facilities, a crucial element to woo more shipping lines and container vessels to the port and the terminal, he told reporters after a briefing by the port management on Wednesday.

To realise Penang Port's mission to provide world-class shipping services, Guan Eng said the port's latest and efficient logistics would be the yardstick to increase the number of merchant ships and containers anchoring at the port.

The Chief Minister also called on the Federal Government to re-start the RM353 million project to deepen the North Channel at Penang Port to facilitate smooth sailing-in of container vessels.

"If the deepening work is not done in compliance with environmental requirements, it will harm plans to turn Penang into a green state," he said.

He also hoped projects promised for Penang under the current Ninth Malaysia Plan but have not been implemented due to various reasons would be carried forward to the 10th Malaysia Plan. - Bernama

Malaysians consuming sugar at very alarming levels

KUALA LUMPUR: The sugar intake by Malaysians has reached a "very alarming" stage and the country will continue to incur huge economic and social costs unless they change their "sweet-toothed" lifestyle, a prominent physiotherapist warned.

Dr B. S. Bains said some 14.5 per cent of the 26 million Malaysians are down with diabetes with the number growing at a seemingly uncontrollable rate.

On average, Malaysians consume around 120 grams of sugar a day.

The recommended intake is 50 grams.

Dr Bains, who is president of the Physiotherapy Association of Malaysia and chief executive officer of the Bains chain of physiotherapy clinics, said the high sugar content of many of the favourite food and drinks consumed by Malaysians was a major cause of diabetes

In an interview with Bernama, he identified Malaysians' propensity to drink "teh tarik" (tea with condensed sweetened milk) as the number one culprit for the high sugar consumption.

Recently, Consumers Association of Penang (CAP) president S.M. Mohamed Idris said Malaysia's "national drink" or teh tarik contained about six teaspoons of sugar.

Saying that the human body does not need extra sugar, he added that sugar, which was devoid of nutrients, "acted more like a drug", and was linked to over 60 ailments such as cancer, diabetes, obesity, heart problems, osteoporosis, kidney problems, asthma and other allergies.

"It's time the consumers were given the alternative of choosing fresh milk or unsweetened milk in their teh tarik. Why must it be confined to condensed milk only?" Dr Bains asked.

He appealed to the government to start a major campaign to change the people's eating habits and "engineer their sugar intake".

Such a long over-due national campaign should be started in line with Prime Minister Najib Tun Razak's "People First, Performance Now" slogan.

"The government certainly is the biggest agent of change and what better way than to earnestly start this campaign for a healthy population. We just can't go on building more and more expensive hospitals and footing the huge costs associated with health care," he said.

Dr Bains also urged the government to seriously revisit what he described as the country's "blatant sugar democracy" where sugar was too freely used in virtually all food items.

Reducing sugar intake would also mean the government saving billions in subsidy for the commodity.

He also suggested that the local authorities should review the issuing of licences for new 24-hour "teh tarik" outlets as Malaysia already had far too many of these ubiquitous stalls.

"Because of such outlets, many people who are supposed to rest and sleep are drinking teh tarik at 2 or 3 am. Their brain, body, muscles, bones are not resting and that's why they fall sick easily.

"How are they supposed to give their best at their workplace the next day?"

he asked, adding that the existence of these 24-hour stalls was making people to be out of their homes at uncivilised hours, thus adding to the accident and crime rates. - Bernama

Kia Motors launches luxury Cadenza sedan

SEOUL: Kia Motors launched its luxury Cadenza with help from an opera singer and a heartthrob of the South Korean cinema, betting the new sedan will raise the company's game to a higher level and attract customers even as the outlook for the global economy remains cloudy.

Kia, an affiliate of Hyundai Motor Co., officially ushered in the sleek four-door at a splashy Tuesday evening unveiling at a swank hilltop hotel with an appearance by Lee Byung-hun, one of the country's top film stars who recently made his Hollywood debut in "G.I. Joe: The Rise of Cobra."

And to drive home the lofty heights it aspires to tread, Kia also treated attendees to a performance by an opera singer.

After all, as Kia noted, the vehicle's name comes from an Italian musical term for an elaborate flourish in a piece of music, such as an aria.

The company, until now known mostly for economical smaller cars such as the Forte, appeared to take a page out of the playbook of Hyundai, which launched its luxury Genesis sedan with operatic fanfare last year.

Kia President Lee Hyoung-keun placed high hopes on the new vehicle, saying in a statement that it will "revitalize Kia's fortunes" and "guarantee a much broader consumer appeal" for the company.

"Despite the current global economic uncertainties, we are confident that the new Kia Cadenza will substantially increase Kia's share of this segment in Korea and around the world," Lee said, referring to large sedans.

The two companies, which together form the world's fifth-biggest automotive group, have expanded aggressively in recent years by opening more overseas plants and winning kudos for quality and design.

Kia last week officially opened its first factory in the United States, located in West Point, Georgia, with a Sorento SUV rolling off the production line.

The $1 billion facility, capable of producing 300,000 vehicles a year, is not far from Hyundai's U.S. plant in Montgomery, Alabama.

Peter Schreyer, Kia's Frankfurt-based chief design officer, said the Cadenza is a meaningful step for the company and will help it stand shoulder to shoulder in design with some of the industry's biggest players, such as BMW and Audi.

"It doesn't need to hide it's a desirable product you can be proud of," Schreyer said of the Cadenza.

"I think it's the best-looking car on the Korean market now."

Kia said it will start manufacturing the Cadenza - called the K7 in South Korea - this month for sale in the domestic market.

Overseas sales in most markets excluding North America and Europe will begin in March and sales in China are set to start in June, Kia said in a release.

The company said the Cadenza is expected to go on sale in North America in 2011. Kia also said the front-wheel drive car will make its "overseas world premiere" at the Riyadh Motor Show in Saudi Arabia next month and also be shown at the Dubai Motor Show a few days later.

The company said it expects to sell 40,000 of the vehicles worldwide next year with the figure rising to 65,000 in 2011.

Kia is offering the car in South Korea at prices ranging from 28.4 million won ($24,500) to 41.3 million won.

Kia Motors Corp. recorded an all-time high quarterly net profit of 402 billion won in the third quarter, turning around from a loss during the same period last year. - AP