Countdown to 2020!

[dengilo]

I like to see Wal Mart giving Tesco a run for their money But at the Garden big no no!!!

[pedang]

Malaysia set to be oil hub

By Kamarul Yunus
bt@nstp.com.my

July 10 2007

MALAYSIA is poised to become a hub for oil trading, futures and securitisation involving Islamic oil-structured financial derivatives in East Asia once the US$7 billion (RM24 billion) Trans-Peninsular Oil Pipeline (TransPen) project kicks off.

With its storage facilities, the project will create a new and hitherto non-existent concept in East Asian oil market: commercial crude oil-in-place.

"Producers will be able to store oil at TransPen, ranging from 30 to 90 days, paid by the net savings in logistics cost when the pipeline is fully operational.

"This creates a tremendous potential. Oil, thus stored, becomes assets which can be monetised or securitised, creating liquidity in the East Asian oil market," an industry observer told Business Times.

When compared to the current 12 million barrels per day (bpd) of oil transiting through the Straits of Malacca and growing to about 20 million bpd by 2020, the 30 days of storage in TransPen will be sufficient to justify an oil exchange for East Asia in Malaysia, he added.

Noting that Bank Negara and a Saudi bank have signed an accord on commodity Murabahah, the observer said Middle Eastern and Malaysian banks can capitalise from this arrangement to help realise the proposed oil-structured derivaties, since oil is a viable financial asset to facilitate liquidity management and investment.

Being strategically located in the East Asian market, Malaysia is also in the time zone between the major consumers of Northeast Asia and the major producers of the Middle East.

"Thus, the Malaysian oil exchange will be able to function between the working hours of the three time zones, a major advantage when compared to London's IPE or New York's NYMEX," the observer said.

According to the observer, at current prices, securitisation of oil through the TransPen system could be worth US$30 trillion (RM103 trillion) a year in the first phase and will exceed US$100 billion (RM344 billion) in the third phase.

The observer also noted that Islamic investors, whose religion forbids investing in many conventional financial securities, have a growing appetite for commodity-structured derivatives that are syariah-compliant.

"Commodities such as oil can be used to underpin all kinds of financial deals that would otherwise contravene tenets of Islamic law. It can be used to ensure investments abide by a central tenet of Islamic finance - that profit must be derived from a genuine business activity, such as trading in halal goods and services," the observer said.

Equally significant is that TransPen will create a new benchmark for oil pricing in East Asia.

"Today, the price of oil is determined in the Middle East such as the Dubai and Oman benchmark. With the creation of the East Asian oil market, the price of oil can be managed and made transparent," he added.

[pedang]

uly 12, 2007 23:43 PM

Malaysia Has Made The Best Of What It Has, Says Kofi Annan

By M. Saraswathi

KUALA LUMPUR, July 12 (Bernama) -- Former United Nations Secretary-General Kofi Annan today heaped praises on Malaysia's success in economic development and political governance, saying it is well-positioned to help African nations develop their economies through greater South-South cooperation.

Describing Malaysia as having made the best use of whatever resources it has, Annan said its unique experience of development offered a more accessible and appropriate model for less developed countries in Africa to learn from.

"It is important for Malaysia, as well as China and India to transfer their capabilities and experience and support African countries in their efforts to take the high road to development," he said.

In making the call, the Nobel Laureate cited how Africa should emulate Malaysia in investing in areas such as education, developing cost effective social safety nets, building appropriate housing and health systems.

It should also promote agricultural productivity, enhance rural development as well as harness national savings.

These are some of the vital components of modern Malaysia "that seems easy to be taken for granted when you gaze at the Kuala Lumpur skyline with its gleaming office towers clad in glass and steel," said Annan, who retired last year after helming the world body since 1997.

Annan, who hails from Ghana, said this in his address at the Khazanah Merdeka Series of lectures here today which was attended by over 800 people including Prime Minister Datuk Seri Abdullah Ahmad Badawi and his wife, Datin Seri Jeanne Abdullah.

Others included Malaysia's former Permanent Representative to the U.N. Tan Sri Razali Ismail, Second Finance Minister Tan Sri Nor Mohamed Yakcop, Khazanah Nasional Managing Director Datuk Azman Mokhtar and about 800 guests.

"You have much to be proud of. Most Malaysians are financially secure and there is a relatively high degree of social mobility."

"I can see this more clearly perhaps because I know that my own country Ghana, which gained independence five months before Malaysia, started off with a lot in common.

Both independent countries were blessed with rich natural resources, significant gold and foreign currency reserves, strong British legal and political institutions and similar education systems.

Besides this, their per capita income levels were roughly similar.

However, he said that by the turn of this century, the two countries had very little in common.

Malaysia's Gross National Product (GNP) per capita income of almost US$4,000 is about 13 times greater than Ghana's per capita income of under US$300.

Ghana has remained largely an agricultural country but Malaysia has become highly industrialised, he said.

Some studies highlight the advantages Malaysia enjoyed, such as proximity to more stable and prosperous markets.

"But I prefer to think that geography is not sufficient a reason. Ghana could have made more of its natural endowment and advantages if it was better governed as Malaysia was," the 69-year old Annan said.

"I do not support the argument that political stability can only be assured if freedoms are curbed, which some would say has been a price Malaysia has paid for prosperity.

"If only we in Ghana had more opportunity to learn from Malaysia. I would have very gladly traded the palm oil trees we gave Malaysia in the 1950's for a framework of parliamentary government that exercised democracy more consistently," he said.

"All this is easier said than done, you will say.

"I hear voices complaining about the inequities of the international systems that make it hard for Malaysia's voice to be heard.

"But this should not slow down efforts to develop networks or promote appropriate development strategies," he said.

He recalled that more than a decade ago, Malaysian companies reached out to parts of Africa where conflict needed resolving and economic conditions were in urgent need of improvement.

"Malaysia has an important knowledge to impart to less developed countries. Joining the ranks of developed nations -- as Malaysia is expected to do -- within the next 12 years, brings certain benefits. It does, but it also carries obligations.

"In today's world, not only are we responsible for each others' security, but we are also in some measure responsible for each others' welfare.

-- BERNAMA

[nazrey]

Getting back on track to Wawasan 2020
Monday July 16, 2007
By GREGORE PIO LOPEZ
TheStar

2020 is 13 years away. If Malaysia is serious about achieving Wawasan 2020, far-reaching political and economic reforms are necessary.

MIERSCAN
Malaysian Institute of Economic Research

WAWASAN 2020 envisioned that “Malaysia can be a united nation, with a confident Malaysian society, infused by strong moral and ethical values, living in a society that is democratic, liberal and tolerant, caring, economically just and equitable, progressive and prosperous, and in full possession of an economy that is competitive, dynamic, robust and resilient” by the year 2020.

Wawasan 2020 requires the Malaysian economy to grow at 7% per annum. The 9th Malaysia Plan envisages an annual growth of 6.5%, while the Third Industrial Master Plan targets 6.3% growth for the plan period.

However, these targets have all been missed since 1998 except in 2000. Regional competitors such as Vietnam are fast gaining on Malaysia, let alone heavyweights such as China and India. Far-reaching political and economic reforms are the order of the day.

The administration, to its credit realises that Malaysia is in a state of flux. To put Malaysia back on the Wawasan 2020 track, the Government must continue to hasten, broaden and deepen its current economic reforms.

A top-to-bottom review of the whole economy is necessary to develop a proper sequence and time-line to liberalise the Malaysian economy.

Malaysia’s traditional development model of “picking the winners” by insulating selected domestic firms and/or sectors from international competition should be rethought as the experience has been far from satisfactory.

Comprehensive independent and transparent studies should be undertaken of the various protected firms and sectors to determine the costs and benefits of these protections and to ascertain if they have made these firms internationally competitive.

The Government should also systematically reduce its ownership and control of firms in the economy. Strategies to address adjustment challenges should be put in place to assist and/or phase out industries that are not internationally competitive.

Malaysia’s affirmative action policies should be recast to one that is consistent with international norms. Affirmative action will have to be redefined and replaced with a comprehensive social safety net for all marginalised groups.

To ensure that Malaysia does not become an international outcast, the rule of law consistent with international standards must be upheld, protected and promoted. A key issue that must be addressed immediately in a just manner is religious and racial extremism. Inaction by the administration on this matter will derail Wawasan 2020.

Active citizenry is pre-requisite to a vibrant nation. As economic affluence increases, so does self-actualisation. The right to association and the freedom of expression are cornerstones to achieving Wawasan 2020.

New forms of association and expression should be encouraged and experienced. These are essentially manifestations of a maturing nation.

Political reforms are important to reflect the rising expectations of society and to ensure that the administration is responsive to domestic and global demands.

Key to political reforms is the independence of our institutions.

The Judiciary, civil service, Royal Malaysian Police, Anti–Corruption Agency, Election Commission, academia, media, non–governmental organisations, religious bodies and other institutions that form the backbone of a healthy democracy should be allowed to function independently.

At the same time, these institutions must be held accountable through due process of the law for their actions.


The writer is senior research officer at the Malaysian Institute of Economic Research

[ntly1]

Source:http://mys.rd.yahoo.com/spirit/news/...d8qdm0mo0.html
Monday July 16, 8:09 PM
U.S. hopes to conclude FTA with Malaysia by mid-2008(Kyodo) _

The United States said Monday it hopes to wrap up negotiations for a free trade agreement with Malaysia by the middle of next year, despite a protracted wrangling over several sensitive issues.
"We will prefer it not to go on pass next year, maybe the second quarter, because you start to lose momentum as these things go on too long," chief U.S. negotiator Barbara Weisel told reporters during her overnight visit to the Malaysian capital.

The FTA talks between Malaysia and the United States, Malaysia's biggest trading partner, began in June last year.

Washington had hoped to conclude the negotiations by the end of March to send the FTA to Congress for approval before President George W. Bush's fast-track trade promotion authority expired July 1.

But after six rounds, talks hit speed bumps and Bush's fast-track authority had expired, meaning Bush has lost the authority to negotiate deals that can get congressional approval or rejection without amendment.

"We would have preferred to have passed it while the last trade promotional authority was still enforced, but that is not going to impede our efforts to try to conclude the agreement as quickly as possible and pass through legislatures of both sides," Weisel said. "We have made good progress."

While no date has been fixed for the next round of negotiations, Weisel believed it would have to be at year-end.

In the meantime, informal discussions will continue.

While in Kuala Lumpur, Weisel met with several representatives of agencies involved in the negotiations.

She noted that among the thorny issues is government procurement.

"Government procurement is one. That's a very sensitive issue and we are trying at this point to give the Malaysian side a clear understanding of what we have done to accommodate their concerns," she said.

Currently, Malaysia could not have access to the U.S. government procurement market of goods and services estimated to be worth approximately $250 billion until Malaysia opens up its own procurement system.

But under Malaysia's affirmative action policy, contracts are given out mainly to ethnic Malay businesses, and sometimes without open tender.

The policy is aimed at giving the majority poorer Malays a bigger slice of an economy long dominated by the minority ethnic Chinese.

Weisel is confident the issue can be ironed out.

"We initiated this FTA negotiation because we believed Malaysia is an important trading partner. We would like to conclude this as quickly as possible," she said.

U.S. trade with Malaysia totaled 170.80 billion ringgit (about $48.80 billion) last year.

Malaysia is the 10th largest trading partner of the United States.

Malaysia's exports to the United States grew by 5.3 percent in 2006 to 110.59 billion ringgit, mainly for electrical and electronic products.

The U.S. National Association of Manufacturers predicted that bilateral trade would double by 2010 once the FTA is in place.

[pedang]

Petronas among 20 most profitable companies in the world

By Suraj Raj

PETALING JAYA: Petroliam Nasional Bhd (Petronas) maintained its lead, in terms of return on revenue among Asia's top 50 companies and the global petroleum refining industry, in this year's Fortune Global 500 list.

Of the 20 most profitable companies in the world, Petronas ranked 18th, with profits of US$12.9bil, according to Fortune magazine's July 23 issue.

The national oil company, which posted revenue growth of 14.9% to US$51bil for the year ended March 31, also moved up two places as Asia's 18th largest corporation in this year's list.

Under the petroleum refining industry, ExxonMobil took the top spot in terms of profits (US$39.5bil) followed by Royal Dutch Shell in second place (US$25.4bil) and BP (US$22bil) third.

Retail giant Wal-Mart Stores reclaimed the top spot on the Global 500 on revenue of US$351.1bil, making it the largest company in the world for the fifth time in six years, Fortune said. Three carmakers, led by General Motors (US$207.3bil), made up the rest of the world's 10 biggest companies.

According to Fortune, the US has the most global 500 companies (162) followed by Japan (67) and France (38).



It said the securities industry saw the biggest sales increase, with revenues rising 45% while the entertainment business saw the biggest jump in profit of 79%.

Among this year's newcomers to the Global 500 list were Taiwan's Asustek Computer and South Korea's Hyundai Heavy Industries, ranked 427 and 422 respectively.

Fortune also found that more women were running Fortune Global 500 companies this year. “Currently, 10 Fortune Global 500 companies are run by women. Last year, only seven were,” it added.

[nazrey]

OH MY!

[OshHisham]

we cannot rely on Petronas alone....

[cooltemper]

Everyone also know.

[alsen]

Originally Posted by pedang

Petronas among 20 most profitable companies in the world

By Suraj Raj

PETALING JAYA: Petroliam Nasional Bhd (Petronas) maintained its lead, in terms of return on revenue among Asia's top 50 companies and the global petroleum refining industry, in this year's Fortune Global 500 list.

Of the 20 most profitable companies in the world, Petronas ranked 18th, with profits of US$12.9bil, according to Fortune magazine's July 23 issue.

The national oil company, which posted revenue growth of 14.9% to US$51bil for the year ended March 31, also moved up two places as Asia's 18th largest corporation in this year's list.

Under the petroleum refining industry, ExxonMobil took the top spot in terms of profits (US$39.5bil) followed by Royal Dutch Shell in second place (US$25.4bil) and BP (US$22bil) third.

Retail giant Wal-Mart Stores reclaimed the top spot on the Global 500 on revenue of US$351.1bil, making it the largest company in the world for the fifth time in six years, Fortune said. Three carmakers, led by General Motors (US$207.3bil), made up the rest of the world's 10 biggest companies.

According to Fortune, the US has the most global 500 companies (162) followed by Japan (67) and France (38).



It said the securities industry saw the biggest sales increase, with revenues rising 45% while the entertainment business saw the biggest jump in profit of 79%.

Among this year's newcomers to the Global 500 list were Taiwan's Asustek Computer and South Korea's Hyundai Heavy Industries, ranked 427 and 422 respectively.

Fortune also found that more women were running Fortune Global 500 companies this year. “Currently, 10 Fortune Global 500 companies are run by women. Last year, only seven were,” it added.

[nazrey]

Ringgit to strengthen to 3.10 by end-2008
24-07-2007:
THEEDGEDAILY


CIMB Research has upgraded its forecast for the ringgit to reach 3.10 to the US dollar at end-2008 due to sustained economic growth and incentives to attract foreign investments.

CIMB said a stronger ringgit would benefit companies with high foreign debt such as Tenaga Nasional Bhd, MISC Bhd and AirAsia Bhd.

Companies with high import costs including the automotive, media and brewery sectors such as Tan Chong Motor Holdings Bhd, Astro All Asia Networks Plc and Media Prima Bhd, as well as those with high dollar-denominated costs and ringgit revenue such as Malaysian Airline System Bhd (MAS) would also stand to gain from a firmer ringgit.

The research house recommended Astro, MAS and Tan Chong as key winners from the strengthening currency with upward revisions of between 9% and 16% to FY08 core net profits from the foreign exchange (forex) adjustments.

The ringgit appreciation would slash Astro's operating expenditure where 60% of that is dollar-denominated. "We reiterated our 'trading buy' call as we think that Astro's mounting associate losses and sagging share price will compel its parent Usaha Tegas Sdn Bhd to take it private," said CIMB Research.

The research house said the stronger ringgit would slash MAS' dollar-based fuel costs. It recommended an "outperform" on the airline with a target price of RM8.40 based on 12x forward P/E multiple.

On Tan Chong, CIMB Research said the company would enjoy lower import costs as it had about 40% import exposure. Additionally, the research house raised the ringgit's target to 2.95 per dollar for end-2009, it said in a statement yesterday.

The adjusted forecasts represent a 6% and 5% appreciation of the ringgit for end-2008 and end-2009 respectively, while maintaining its projection of 3.40 for 2007.

A firming ringgit would also be positive in terms of capital inflows, providing foreign investors with an added incentive to invest in stocks and other financial instruments, it said.

[pedang]

ReadSoft to set up regional office in KL
By Zaidi Isham Ismail
bt@nstp.com.my

July 27 2007

SWEDISH software company ReadSoft is setting up a subsidiary called ReadSoft Asia in Kuala Lumpur, its first regional office in Asia.

ReadSoft managing director Tung Kam Kai said the focus of the subsidiary will be to increase its partner network in the region and close more and bigger deals in the huge Asian market.

"We hope to generate a revenue of up to US$5 million (RM17.15 million) in our first year of operations and a growth rate of 20 per cent per year," he told Business Times.

The office will be located at Kuala Lumpur Sentral and plans are afoot to set up customer support and research and development facilities within the next few years.

"We will also apply for the Multimedia Super Corridor status in the next two months," said Tung.

Headquartered in Helsingborg, Sweden, ReadSoft is a world leading supplier of software for document automation and is listed on the Stockholm Stock Exchange.

It was founded in 1991 by two Swedish intellectuals - Jan Anderson (chief executive officer) and his college mate, Lars Aplestal.

The company made a global revenue of US$70 million (RM240 million) last year and now has 14 subsidiaires worldwide in Europe, North America, South America, Asia and Australia with 5,000 customers in 70 countries.

Europe accounts for 40 per cent of its revenue, followed by Asia (30 per cent) and the US (30 per cent).

Its clients in Malaysia include CIMB, Hong Leong, National Statistics Department and in Europe include Siemens, Ikea, Tesco, Abbey National Bank and Ericsson.

"We estimate the Asian market for document automation to be worth RM1 billion and that is why we chose to set up a subsidiary here in Malaysia, coupled with tax reliefs, cheap workforce and abundant knowledge workers," said Tung.

He said document automation holds a lot of promise as writing documents manually is tedious and more expensive compared with the digitised form.

"For example, Petroliam Nasional Bhd, which is one of our partners, uses our software and it has managed to cut cost and manual time by up to half in its day-to-day operations such as ordering supplies or making payments to its suppliers," said Tung.

He said Readsoft software will also blend in nicely with companies which are already using SAP or Oracle to strategise their daily operations such as finance, inventory or human resource planning.

According to an independent study by US-based Harvey Spencer and Associates, it costs up to US$50 (RM171) per year to process a single invoice or document manually. This process can be halved via digitisation.

Documents in the digitised form have gained wider acceptance worldwide such as being used as evidence in courts due to the passing of several cyber laws.

[nazrey]

BizFocus:
All systems go for mega oil hub plans
July 31 2007
BusinessTimes
Download PDF

The Asia Petroleum Hub in Johor, due for completion in 2009, will create the world’s largest fully-integrated petroleum terminals, which will also spur logistics and other commercial activities in the southern region. BT looks at the objectives and potential of the RM1.4 billion project

IN FRONT of 300 attendees at the Asia Petroleum Hub (APH) groundbreaking ceremony in Johor Baru on July 5, the Prime Minister surprised many when he said:

"I don't normally do this, but I have asked for a copy of Abdul Rashid Mohd Isa's (Asia Petroleum Hub executive chairman's) speech, so that I can make sure that he keeps the promises he has made to the people of Malaysia here today."

Datuk Seri Abdullah Ahmad Badawi's pronouncement was met with hearty applause.

One can only guess what was going through the Prime Minister's mind when he said that, although perhaps it had something to do with the controversies that have been associated with the hub project.

And Abdul Rashid has made some big promises indeed.

Firstly, to reduce the cost of landed petroleum products in Malaysia by eliminating "double handling" charges, as shipments will be made directly from source to the hub, which will reduce government fuel subsidies.

Secondly, to force the hub's entry into a global corridor for petroleum-trading activities through recognition by PLATTS, a leading global provider of energy and metals information.

Thirdly, to act as a new supply chain for the region.

And finally, to develop Malaysia's own centre of knowledge for human capital on top of attracting foreign investment and controlling the country's own petroleum needs and reserves.

And Abdul Rashid seems to be up to the challenge, as he pointed out during the press conference after the ceremony.

The financing and even clients for the facility are already in place, he said, and there's nothing to stop it from completing work in 2009.

Even though there are doubts as to whether the cost of landed petroleum products will be reduced by much initially, all parties concur that there are merits to the project.

"Given the high oil prices due to growing demand and dwindling resources, any industry that can reduce a supply bottleneck by increasing refining capacity and reserves and improving the supply network will contribute towards energy security when Malaysia becomes a net importer in the forseeable future," RAM Consultancy chief economist Dr Yeah Kim Leng told Business Times.

He said Malaysia could capitalise on its comparative advantage with Singapore in terms of land and costs.

"Malaysia should play a complementary role to operations in Singapore; that can be our niche ... as it would be difficult to compete head on with Singapore with their position of being first mover," Yeah said.

There are issues to be addressed, however, with the imminent emergence of the trans-peninsula pipeline up north.

"The development should be complementary to the RM7 billion trans-peninsula pipeline. The Government should map out which flow they are looking at ... and it depends on their products. Perhaps, APH can be a hub for refined products," Yeah said.

On PLATTS, an industry expert said it may be a long time before the international body recognises APH's efforts and places the hub on its prestigious independent benchmark.

"It's always been Singapore or Rotterdam, so it would seem that it will take a long time before they can get recognition from PLATTS because it all depends on how well the facility can perform and how well it is managed," an industry expert said.

The expert said PLATTS has only recognised Rotterdam for Europe and Singapore for this region to date.

"First, it must become a popular centre for international players. If nobody goes there, there wouldn't be much point for PLATTS to consider recognising the hub," the expert said.

On the implications of APH on the oil market in Malaysia, the expert said there will be some cost-savings as the oil will be supplied direct from the source and not from Singapore, but the benefits will be more on easy availability.

PLATTS, with nearly a century of business experience, serves customers across more than 150 countries. Operating from 14 offices worldwide, it serves the oil, natural gas, electricity, nuclear power, coal, petrochemical and metals markets. Traders, risk managers, analysts and industry leaders depend upon PLATTS to help them make better trading and investment decisions.

[pedang]

August 01, 2007 11:56 AM

Aussie Health Software Firm Expanding In Asia Via Malaysia

From Mohd Arshi Mat Daud

BRISBANE, August 1 (Bernama) - IBA Health Limited, a health software company listed on the Australian Stock Exchange, is using its Malaysian regional headquarters as a platform to grow in the Asian market, said its chief executive officer Stephen J. Garrington.

IBA Health's Malaysian operations, its largest revenue contributor outside Australia in the last two years, was already preparing its system to be localised for the Chinese market, he said.

Speaking to Bernama after a seminar on "Business Opportunities in Malaysia" held in Sydney Monday, he said similarly, the company was also planning to use Malaysia as the springboard to enter the West Asian market in the future.

The seminar was held in conjunction with a trade and investment mission led by Minister of International Trade and Industry Datuk Seri Rafidah Aziz to Sydney, Brisbane and Perth.

Her entourage comprises some forty delegates including Melaka Chief Minister Datuk Seri Mohd Ali Rustam, Malaysian Industrial Development Authority director-general Datuk R. Karunakaran, Malaysia External Trade Development Corporation chief executive officer Datuk Noharuddin Nordin, government officials and representatives from the private sector.

Garrington said IBA Health had chosen Malaysia over the latter's neighbouring countries for its regional office due to the availability of skilled personnel and easily trainable workforce.

The company currently employs almost 200 employees of which less than 10 are expatriates.

The government's pro-business attitude, Malaysia's multi-racial and cultural background and the country's central location in Asia were among the other factors that prompted IBA Health to set up the Malaysian office, said Garrington.

He said that the MSC-status IBA Health Malaysia was benefiting from Malaysia's adoption of information communications technology under the E-Medicine flagship.

"Malaysia's 26 million population, the presence of 140 public hospitals and the large number of private hospitals makes Malaysia a larger market for IBA Health compared with Australia,

"These are positive factors for our growth in Malaysia," said Garrington.

IBA Health provides real-time information across the entire spectrum of care. Its advanced solutions provide healthcare professionals with the tools to improve health outcomes, streamline processes and increase efficiency.

-- BERNAMA

[pedang]

Allianz finds Malaysia a good fit
By Rupinder Singh
rupinder@nstp.com.my

August 6 2007

EUROPE'S largest insurer Allianz AG sees Malaysia as its regional centre of excellence in product and talent development due to its multi-cultural society.

The insurer is fast expanding into the Asian region and looks towards Malaysia to support its business further in the growth markets.

"The multi-culture, multi-linguistic ability of Malaysia fits in well with what we are trying to do (in this region)," said Allianz Insurance Management, Asia Pacific Pte Ltd, chief sales and marketing officer, Chai-Yan Chang.

Compared with emerging markets, Malaysia's more mature insurance market helps the group in piloting products, both in life and general insurance, before it is replicated elsewhere in the region.

"You have the technology, the platform and talent here as well as communication, which is important.

"It is a place (to search) for talent pool," he said.

In fact, developing talent pool is crucial to Allianz which derives slightly more than half of its business in Asia from its 204,000-strong agents.

Chai-Yan said Allianz is streamlining the process to develop its agents by increasing the manpower and productivity in a shorter period.

This strategy is similar to that of Allianz Life Insurance Malaysia Bhd, where 72 per cent of its new annualised premiums are contributed through the agency channel.

Head of life sales division Ong Pin Hean said the plan is to increase the agency force to 3,000 by year-end from 2,500 currently.

Ong believes that the agency force still has a large part to play in Allianz business in Malaysia, more so with the acquisition of Commerce Assurance Bhd (CAB) by Allianz Malaysia Bhd recently.

He said the acquisition will strengthen the group's distributions base as the group will look for opportunities to explore the larger customer base.

Allianz Life registered a gross premium of RM33.2 million in the first quarter ended March 31 2007, or 75 per cent of the group's total gross premium in the same period.

[pedang]

Malaysia: Economy can absorb higher oil prices

August 6 2007

MALAYSIA’s stronger economic fundamentals will put it in good stead to ward off the adverse effects of skyrocketing oil prices, Bank Negara Governor Tan Sri Zeti Akhtar Aziz said today.

Last Friday, New York’s main contract, light sweet crude for September delivery fell 69 cents to US$74.79 a barrel in late US trading from US$75.48 while the Brent North Sea crude for September slipped 25 cents to US$74.50.

Speaking to Bernama on the sidelines of the 8th Langkawi International Dialogue, Zeti said inflation, which has moderated, may expand slightly.

“But we don’t expect it to be significant.

“Our economy has been able to absorb the increase in oil price and we expect that with stronger fundamentals now, we are well-positioned to absorb these higher oil prices,” she said.

Dr Zeti said Malaysia has been able to maintain a low level of inflation despite oil prices rising to new heights, from around US$40 per barrel to US$60 and almost US$80 at present. — Bernama

[nazrey]

Deutsche Bank sees Malaysia sustaining 5.5% growth till 2020
Updated : 09-08-2007
Media : The Star


KUALA LUMPUR: Malaysia¡¦s young population, investments in human capital development and trade openness will drive its economy to sustain a 5.5% gross domestic product (GDP) growth up to 2020.

Deutsche Bank group chief economist Prof Norbert Walter said Malaysia¡¦s stable political climate and orientation towards improving education were also positive factors driving this growth.

The large number of young workers is important to build a knowledge-based economy.

This is further enhanced by the Government and private sector's recognition that life-long learning is vital to develop human capital, he told a media briefing yesterday.

Walter also said Malaysia's discipline of allocating a considerable part of income for investment and not consumption was beneficial to the country¡¦s growth in the long term.

Walter, also Deutsche Bank Research managing director, said the country was expected to face slowdown this year but would get back on track to higher growth.

He sees Malaysia's GDP growth reaching 6% next year.

The growth is compounded with giants like India, which are performing better than expected, in Malaysia's vicinity.

Having co-operations or venturing into these markets will be enough of a compensating factor to get Malaysia back into higher growth rates, he said.

Deutsche Bank expects Malaysia to secure second ranking in the top three growth stars from 2006 to 2020, after India and overtaking China.

Walter said economies needed skilled labour, not just cheap labour, to sustain growth.

On the global front, he does not expect a recession in 2009 if global economies allowed for orderly movement of exchange rates next year.

Also, should economies avoid protectionist policies, there is a chance that global economies can accelerate growth in 2009, aided by momentum in emerging markets, he said.

He added that there could be further unravelling of the US' housing woes, although these would not adversely affect stock markets as price-earnings ratios were low.

This translates into reasonable profits for companies.

It also meant there was liquidity in the markets ready for investments such as mergers and acquisitions, he added.

The US economy had handled the recession better than widely expected, Walter said, and worldwide inflation had remained tame and low despite bullish growth.

[nazrey]

Malaysia Could Become Trading Hub For Auto Parts
August 09, 2007 17:56 PM

KUALA LUMPUR, Aug 9 (Bernama) -- With its increasing production and high trade volume of automotive parts and components and its well developed infrastructures and financial institutions, Malaysia could well become a trading hub for these merchandises, says International Trade and Industry Ministry Parliamentary Secretary Datin Paduka Dr Tan Yee Kew.

She said local trading companies can play an important role in achieving this by assisting small and medium manufacturers of automotive parts and components to market their products in the international market where they have established marketing networks.

They could also become strategic partners to foreign manufacturers, who have set up their Regional Distribution Centre in the country, for the distribution of their products within and outside the country, she said during the launch of the Malaysia Auto Parts and Accessories Expositions (MAPA) 2007 here, today.

Tan said sales of automotive components and parts amounted to RM5.6 billion in 2006 and the Malaysian Industrial Development Authority (MIDA) approved a total of 33 projects on transportation related vehicles parts and components production amounting to RM318.7 million.

"Export in 2006 increased by 4.5 percent to RM2.3 billion from RM2.2 billion in 2005. In terms of imports, there was a decline of 2.3 percent to RM4.3 billion in 2006," she added.

"To create Malaysia as a trading hub of automotive parts and components, Malaysia must project itself as a showroom of the latest products available in the world market. Today's international exhibition is an effort towards this end," she said.

The exhibition, organised by Asia World Expo Sdn Bhd, is being held at the Mid Valley Exhibition Centre from today until Sunday, with 85 exhibitors from nine countries including China, India and Europe. About 6,500 foreign buyers are expected at the exhibition.

Asia World Expo managing director Richard Lim said they expected to generate sales amounting to US$30 million during the four-day exhibition.

He also said that as the event was MAPA's comeback since it last organised the event more than 10 years ago, there were some problems initially in attracting foreign exhibitors to join the show.

"But we believe in the potential of Malaysia as a trading hub for these merchandise. If we are to achieve this in the next decade, we have to organize more shows like this. The comeback of MAPA would contribute towards this end," he added.

-- BERNAMA

[nazrey]

Malaysia wants to be global car parts trading hub
By Chong Jin Hun
August 10 2007
BusinessTimes




MALAYSIA is keen to become a global automotive-parts trading hub to woo foreign firms who can, in turn, share their industry expertise with local players.

This, essentially, means having more trade fairs in Malaysia, a move intended to spur not only car-related sectors at home, but the tourism fraternity as well.

Government incentives aside, the success of Malaysia's car-component industry also depends on local traders' willingness to help home manufacturers sell their products abroad.

Likewise, these traders can also navigate foreign offerings into the Malaysian and overseas markets, says a senior Government official.

"The Government encourages international trade fairs to be held in Malaysia to generate business in the automotive and hospitality sectors.

"Malaysia has the potential to develop itself into a (automotive parts) trading hub by projecting itself as a showroom for the latest products," International Trade and Industry Ministry parliamentary secretary Datin Paduka Dr Tan Yee Kew said.

She was speaking to reporters after officiating at the Malaysia Auto Parts & Accessories Expositions (MAPA) in Kuala Lumpur yesterday.

Organisers of global trade fairs in Malaysia, involving 500 foreign trade visitors, are eligible for tax exemption on income earned from the events.

Small- and medium-sized enterprises participating in international fairs are entitled to a matching grant of up to half (50 per cent) of the approved cost incurred.

Malaysia made 323,192 units of transport equipment in the five months to May 2007. It had produced 907,389 units for the whole of 2006, Bank Negara Malaysia's website showed.

Meanwhile, the organiser of MAPA expects to achieve some US$30 million (RM103.5 million) of sales from the trade fair, helped by the anticipated 6,500 foreign-buyer turnout.

The four-day event ending this Sunday, involves 85 exhibitors from nine countries including China, India and Germany.

"We have invited a lot of buyers from Asean (Association of Southeast Asian Nations), the Far East, India, and the Middle East by working with various embassies in Malaysia.

"General consumer visitors are expected to exceed 80,000," said Richard Lim, managing director of Asia World Expo Sdn Bhd.

[haze]

Malaysia Controls 70 Per Cent Islamic Capital Market


PASIR PUTEH, Aug 11 (Bernama) -- Malaysia controls 70 per cent of the capital market in the Islamic Development Bank (IDB), Deputy Finance Minister Datuk Dr Awang Adek Hussin.

He said this was possible due to the confidence of the Islamic world in Malaysia's capability to establish the Islamic banking system.

"Since then, there is no other developing countries like Malaysia which is able to successfully implement Islamic banking," he said at the launch of the state-level Jalur Gemilang Merdeka expedition at Padang Merdeka here today.

The expedition involved a convoy of 59 vehicles.

In addition, a 1.8 km Merdeka Run between Sekolah Menengah Tok Janggut and Padang Merdeka was held. Information Director-General Datuk Abdullah Murad and Limbongan State Assemblyman Drs Zainuddin Awang Hamat were among the 1,000 participants in the run.

Awang Adek, who is also Bachok Member of Parliament, said Malaysia's success had enabled the country become a role model for other Muslim nations.

"The success is achieved through the support of the people of various races who contribute to the country's peace, unity and political stability which enables the government to plan its economy well," he added.

He said this was reflected with the government's success in reducing the country's poverty rate to five per cent currently from 50 per cent in 1970.

-- BERNAMA