Malaysia - Countries of the World

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Sime Darby unit eyes more estates in Africa
By Zaidi Isham Ismail Published: 2009/11/07



The expansion is part of a long-term strategy to double planted areas to one million hectares and be nearer to the growing markets of Europe and the US

Sime Darby Bhd (4197), which owns 220,000ha of oil palm estates in Liberia, plans to strengthen its presence on the African continent and is eyeing more land in Cameroon, Congo and South Africa.

Sime Darby Plantation Sdn Bhd managing director Datuk Azhar Abdul Hamid said the conglomerate's plantation arm had received many invitations to Africa.

"But nothing has been formalised and we are still at the early stage. In Liberia, we already have a team on the ground," Azhar told Business Times in an interview.

Sime Darby is one of Malaysia's top five plantation firms, with a total of 530,000ha in Malaysia and Indonesia contributing up to 70 per cent of its annual revenue.
The group also develops properties, sells cars and heavy equipment, and does engineering work for the oil and gas industry, such as fabricating oil rigs.

Azhar said the expansion is part of a long-term strategy to double planted areas to one million hectares and be nearer to the growing markets of Europe and the US.

The group is on track for this. On top of the 530,000ha it already owns, it is looking at more than 300,000ha in Sarawak, while in Indonesia it has another 40,000ha to develop.

"Later on, when the opportunity arises, we may open estates in Brazil or in any South American country near the equator where oil palm grows well."

Azhar said concerns of civil war in Liberia had eased with the presence of the United Nations peacekeeping forces there until 2011.

"Besides, China and the United States are investing in Liberia in a big way to set up resorts and build infrastructure. We cannot wait until everything is perfect and then decide to invest. By then it will be too late."

Sime Darby plans to develop its business in Liberia gradually.

"Liberia, and Africa as a whole, is a good place to grow oil palm. Liberia, for example, can produce up to four million tonnes of crude palm oil, which is enough to feed its own people as well as serve the uropean Union market of six million tonnes.

Apart from palm oil's traditional growth areas in Europe and Asia, demand is also rising in the US where states, such as California, are seeing an increasing Asian population, resulting in changing lifestyles and dietary preferences.

Sime Darby is also open to joint ventures with small plantation firms that are looking to reap the benefits of economies of scale.

"We have received a lot of proposals and are filtering them out. The approach and venture must be beneficial to our growth as a global commodity player," said Azhar.

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Pakistan sees Malaysia as model of development
From Balan Moses Published: 2009/11/07
http://www.btimes.com.my/Current_New...bal-2/Article/

LAHORE: Pakistan is modelling its long-term industrial development programme after Malaysia due to the high level of transparency and good governance, a senior federal trade official said yesterday.

Trade Development Authority of Pakistan director-general (services) Usman Hasan said the government was especially impressed by the Malaysian experience in tendering processes for projects.

He said another area of interest was the manner in which the Malaysian government carried out pre-feasibility and feasibility studies on prospective projects.

"We are adopting the Malaysian model as we are impressed by the transparency and good governance that lends itself towards good business practice," he told a group of visiting Malaysian journalists.

He said Pakistan wanted to adopt Malaysia's best business practices as it was compatible with Pakistan's culture.

"Malaysia's rating as a developed industrial nation has gone up in the Islamic world with industry best practices second to none,". You have taken the world by storm," he said.

Usman said a 2 billion Pakistan rupees (100 rupees = RM4.22) study had been commissioned by the Pakistani government in July this year to study Malaysia's success in the project tender process.

He said the Malaysian example in industrial development was suitable for Pakistan given the many commonalities between the two nations.

"Your nation was an agricultural one in the 1970s and 1980s but is now a highly developed industrial country. We are moving in the same direction by developing our agricultural sector," he said.

On the exclusive economic zone for Malaysian investors in Sindh province, he said efforts were being made to expedite the opening of the area which was being developed based on a Japanese model.

He said Pakistan needed Malaysian help in, among other things, the packaging of goods, marketing and quality control.

"We especially need Malaysian assistance in the halal food sector where your packaging and marketing skills are very good," he said.

He added that Malaysian investment and technology were also vitally needed in Pakistan.

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Uzbek firm in US$2.5b deal with Petronas, Sasol
Published: 2009/11/07

ALMATY: Uzbekistan's state energy company has signed a US$2.5 billion (US$1 = RM3.41) deal to create a joint venture with Malaysia's Petronas and South Africa's Sasol to build a synthetic liquid fuel production plant, the state company announced yesterday.

Uzbekneftegaz said the three companies will take equal stakes in the venture, which will be based in the Central Asian nation.

In an industrial process developed by Sasol, the facility will convert natural gas into liquid fuel.

The plant is expected to produce around 1.3 million tonnes of clean-burning diesel fuel annually once completed. - AP

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Strengthening Ties With Obama-Najib Meeting In Singapore
November 06, 2009 20:59 PM
By Tengku Noor Shamsiah Tengku Abdullah

KUALA LUMPUR, Nov 6 (Bernama) -- Bilateral relations between the United States and Malaysia will receive a booster shot when President Barrack Obama meets Prime Minister Datuk Seri Najib Tun Razak in Singapore next week.

US Department of State Special Advisor For Non-proliferation and Arms Control Robert J. Einhorn said:

"We have not always had the best relationship. But with the new administration here in KL and in Washington, I think the prospects for it may strengthen the relationship.

"Prime Minister Datuk Seri Najib Tun Razak and President Barrack Obama will meet in Singapore next week. They had a very good phone conversation back in June, and there have been a succession of visitors to KL," he told Bernama in an interview.

Einhorn said most recently, US Deputy Secretary of State James B. Steinberg visited here and the trend would continue.

"So, the prospect for a much stronger, bilateral relationship," he said.

Einhorn was leading a multi-agency delegation on a two-day visit to Malaysia to consult with senior Malaysian officials on non-proliferation and disarmament issues, beginning Nov 3.

Singapore will host the 17th Asia Pacific Economic Cooperation Economic Leaders' Meeting on Nov 14 and 15.

Earlier, Einhorn said the US viewed Malaysia as a "very important partner" in strengthening the non-proliferation regime.

He said, the US hoped Malaysia would act as a mediator to convey the message that the Obama administration was serious about engagement and that "we want to find common ground with Iran".

-- BERNAMA

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High-Tech Lab To Detect H1N1 Virus In Pilgrims
November 07, 2009 18:59 PM From Ahmad Kamil Tahir
http://www.bernama.com/bernama/v5/ne....php?id=453332

MECCA, Nov 7 (Bernama) -- The Saudi Arabian Government will soon set up a high-tech laboratory in Arafat to detect the H1N1 virus in pilgrims, ahead of the Aidil Adha this month, a Saudi Arabian English daily reported on Saturday.

According to the Arab News, Minister of Health Dr Abdullah Al-Rabeah has allayed whatever impending panic pertaining to the disease which he said, was like any other seasonal flu.

He said all necessary steps had been taken by hospitals to deal with the infection.

"A special feature of the hospitals is that they are both equipped with advanced medical apparatus and could be converted into intensive care units, should the need arise," he said after inspecting health facilities at holy sites on Friday.

Al-Rabeah said that health centres were also opened in Jeddah where a new 100-bed hospital was set up.

He also visited health centres in Arafat and a new 219-bed hospital which was built in Mina. There are 15 clinics in Mina with a total capacity of 140 beds.

He said in Mecca, there were about 100 clinics accomodating a total of 1,000 beds to serve the pilgrims. A fleet of over 150 ambulances, including 85 small vehicles, have also been deployed.

In another development, the newspaper also reported that the Custodian of the Two Holy Mosques, King Abdullah, had ordered the hosting of 1,000 Haj pilgrims from various countries this year, as part of a guest pilgrims programme supervised by the Ministry of Islamic Affairs, Endowment, Call and Guidance.

"The royal gesture shows the interest of the king in the welfare of Muslims the world over, and his desire to strengthen Islamic relations based on the holy Quran and the Sunnah of the Holy Prophet," Islamic Affairs Minister Saleh Al-Asheikh was quoted as saying.

The minister said the guests would be drawn from Eastern Europe, the Balkans, the Caucasus, Central Asia, Asia and Africa.

-- BERNAMA

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Malaysia And Turkey To Jointly Develop Halal Standards For OIC Nations
November 08, 2009 17:34 PM
From Nor Baizura Basri

ISTANBUL, Nov 8 (Bernama) -- Malaysia and Turkey have agreed to join forces to develop uniform halal global standards, a move that can pave the way for the Organisation of Islamic Conference (OIC) countries to tap the growing halal market which currently is dominated by non-Muslim countries.

This consensus was reached by trade ministers at the end of the ministrial meeting of the Standing Committee for Economic and Commercial Cooperation (COMCEC) Saturday, Deputy Minister for International Trade and Industry Datuk Mukhriz Mahathir said.

"We have proposed to lead member countries in developing uniform halal standards and this has been supported by a few influential member countries like Saudi Arabia," he said.

"After much deliberations between member countries, they have decided to let Malaysia and Turkey work together by leveraging on their experiences to develop uniform halal standards for OIC countries," he told Malaysian reporters after the COMCEC ministerial meeting here.

The ministerial meeting is being held prior to the inaugural COMCEC Economic Summit on Monday which is being held in conjunction with the 25th Anniversary of COMCEC and the 40th anniversary of the OIC.

Deputy Prime Minister Tan Sri Muhyiddin Mohd Yassin will be leading the Malaysian delegation to the summit.

Mukhriz said with the outbreak of H1N1, there has been an increasing awareness about how halal food products are hygenically processed, thereby boosting demand for halal products from non-Muslim coutries.

"OIC member countries realise there is a vast potential to venture into the global halal food industry and that they will be left out if they are not fast enough to implement global uniform halal standards," he said.

Halal foods currently account for 17 percent of the global food market and the global halal food market is expected to increase to US$642 billion in 2010.

Malaysian exports of halal food products to the OIC countries, which increased significantly to about US$640 million in 2007, is projected to continue to rise to US$900 million this year.

Mukhriz said the global halal industry was not only for halal foods but includes cosmetics, logistics as well as Islamic banking and financial services.

"We hope to come out with some kind of framework of the standards at the COMCEC meeting next year, which likely will be the first draft that will outline a timeframe," he said.

Malaysia was the first OIC nation that mooted the idea of having uniform global halal standards in 2004 at the 32nd Islamic Conference of Finance Ministers in Yemen but it faced resistance from other OIC member countries which were not prepared to institute such a big change.

On another note, Muhkriz said the food crisis, energy crisis as well as ways to increase intra-trade between OIC countries were among other issues discussed by the trade ministers.

"We hope to get political will from the leaders to implement a trade and investment system that can benefit all OIC member countries," he said.

Muhyiddin, who arrived early Sunday morning, is expected to deliver a statement on the achievement of COMCEC, the enhancement of intra-OIC trade and investment, promotion of Halal standards as well as provide a review of the world financial system and role of Islamic Finance at the summit.

Senior officials and trade ministers who converged here for the past two days discussed several critical issues crucial to the development of the Ummah in OIC member nations.

Diplomats said they were hoping for the implementation of the Trade Preferential System Among the OIC (TPS-OIC), which could further increase intra-trade among OIC countries by 2015.

So far, 10 countries, including Malaysia, have ratified it with Bangladesh being the latest to come on board.

The Preferential Tariff Scheme (PRETAS), the protocol for the TPS-OIC, would be the concrete mechanism where trade barriers among OIC countries would be decreased within a specific time-frame in order to establish the TPS-OIC.

TPS-OIC, once implemented, expects to expand intra-OIC trade among OIC countries by 20 percent by end-2015.

Bilateral trade between Malaysia and the OIC rose 26.3 per cent last year to RM120.3 billion from the previous year.

Exports rose 28.1 per cent to RM67.6 billion while imports rose 24.1 percent to RM52.7 billion from last year.

For the January-August period this year, trade with the OIC amounted to RM64.3 billion with exports valued at RM38.8 billion and imports at RM25.5 billion.

Malaysia's major exports to the OIC were palm oil, petroleum and petroleum products and miscellanous manufactured goods while major imports were petroleum and petroleum products.

Approved investments between 2001 and August 2009 with participation of OIC member countries in the manufacturing sector in Malaysia amounted to RM8.7 billion comprising the manufacture of food, textiles and chemical products.

Malaysia's investments in the OIC are mainly in the plantation sector, oil and gas related industries as well as in construction.

-- BERNAMA

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Qatar's Ezdan to sell partof portfolio to Malaysian REIT
Published: 2009/11/09

DOHA: Qatar's Ezdan Real Estate Co expects its net profit in the fourth quarter to be similar to that of the third and is aiming to sell part of its property portfolio by year-end to a Malaysian-basedREIT to finance new projects, its managing director said yesterday.

Qatar's largest property developer by market value expects strong demand for affordable housing in its home market.

The fourth quarter net profit result would be "similar" to the 94 million Qatar riyals made in the third quarter, Hesham el-Sahtary told Reuters in an interview.

Ezdan, with about US$1 billion (RM3.41 billion) worth of projects under construction, is also working on selling some of its portfolio, worth about 600-700 million riyals to a real estate investment trust based in Malaysia to help finance future projects.

"They will buy the property from us and we will manage it for them with a fixed return," said Sahtary. "The plan is to launch it in Malaysia as an international fund and we hope to conclude it this year," he said. - Reuters

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Punjab aims to emulate Malaysia's success in low-cost housing
From Balan Moses
Published: 2009/11/09

ISLAMABAD: Malaysian expertise in low-cost housing for workers is expected to become the catalyst for the entry of more foreign direct investment in the booming industrial sector in Pakistan.

Punjab Industrial Estates Development and Management Company (PIE) chief executive officer Sabir P. Chohan said Malaysia's track record in the housing industry was expected to provide added benefit to efforts to woo FDI.

He said the government of Punjab was in the midst of negotiations with Malaysian housing giant, Renexus, on the proposed construction of 50,000 low-cost houses at industrial zones in Punjab.

The first area that could see Malaysian-built units could be the Sundar Industrial Estate, an hour out of Lahore.

"We have been in contact with Renexus and had hoped for a memorandum of understanding to be signed on November 26. But it has been postponed to a later date," he told a group of visiting Malaysian journalists.

Sabir said the chief minister of Punjab, Shahbaz Sharif, had issued specific instructions to PIE to emulate the Malaysian model in building housing for workers at industrial estates.

Sabir said two Malaysian companies - Bandaraya Development and Maxcorp Husnain Private Ltd - were already making a name for themselves in construction in Punjab, the largest of the four provinces with a population of 110 million.

Bandaraya Development has developed a top-class tourist project while Maxcorp was involved in redesigning, developing, financing and operating activities of the former Pakistan Railway Club.

On whether Punjab would follow the example of neighbouring Sindh province in creating an exclusive economic zone for Malaysian investors, he said the state provincial government had given the green light for the project.

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Malaysian businesses urged to invest in Bosnia tourism, halal industries
By Nancy Nais Published: 2009/11/10

MALAYSIAN businesses are being urged to invest in Bosnia-Herze-govina, especially in the tourism and halal food industries.

"Bosnia-Herzegovina has the aspirations to develop into a halal hub for the south-east of Europe. We are opening up and welcoming more businesses from Malaysia, especially Sarawak, to invest in various sectors of our economy," Bosnia-Herzegovina Ambassador to Malaysia, Ensar Eminovic, said at the Malaysia Global Business Forum - Bosnia Herzegovina in Kuching yesterday.

"We can share knowledge and through joint efforts link the Tanjong Manis halal hub here to the one in Bosnia," he added.

There is also an increasing demand for healthy and organic food besides halal food due to its cleanliness and consumption safety.

Bosnia-Herzegovina is located strategically between the east and west of Europe, which has made it suitable for it to become the halal hub for the European market.

Ensar believes that cooperation should be fostered between local halal product producers in Malaysia and those in Bosnia-Herzegovina for mutual benefits.

He also said in the tourism sector, there is a lack of world-class five-star hotels after the discovery of the Bosnian Valley of the Pyramids, which is currently one of the major tourist attractions in Bosnia.

Meanwhile, Bosnia-Herzegovina is keen to tap the potential of the Sarawak Corridor of Renewable Energy (SCORE) in the area of developing and exporting the energy industry.

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Malaysia attracts OIC investments worth US$46.8m
By Rupa Damodaran Published: 2009/11/10



MALAYSIA attracted US$46.8 million (RM158.18 million) worth of investments from the Organisation of Islamic Conference (OIC), out of the total US$3.4 billion (RM11.49 billion) foreign investments in the first eight months of the year.

Major projects came from Iran (US$42.9 million or RM145 million), Turkey (US$2.8 million or RM9.46 million), Indonesia (US$0.6 million or RM2.03 million) and Egypt (US$0.3 million or RM1.01 million).

"They were in chemicals and chemical products, electroncis and electrical products and scientific and measuring equipment," said Malaysian Industrial Development Authority (Mida) deputy director-general Datuk Afifuddin Abdul Kadir.

He was speaking at the Mida-ITAP (Investment Promotion Technical Assistance Programme) capacity building programme for investment promotion officials of OIC member countries in Kuala Lumpur yesterday.

The ITAP comes under the Islamic Development Bank.

Afifuddin said Malaysian investments in OIC member countries amounted to US$4.14 billion (RM13.99 billion).

"Major Malaysian investment in these countries were in manufacturing, mining and quarrying, financing, real estate, business services, construction and agriculture."

Malaysian companies that have undertaken major projects in the OIC member countries include Bandar Raya Developments Bhd, Bina Puri Holdings Bhd, Eversendai Group, al-Hidayah group of companies, Petronas and IJM Corp Bhd.

He said the Cross Border Investment Promotion Division that was set up last year will further assist and facilitate Malaysian companies to venture abroad.

On cross-border trade, he said trade between Malaysia and other OIC member countries totalled US$18 billion (RM60.84 billion).

Major exports were E&E products, palm oil, chemicals and chemical products, crude petroleum, processed foods and refined petroleum products.

Malaysia's business ties with the OIC member countries have further strengthened with the setting up of the GCC-Asean Economic Centre, which is based at the Mida head office in Kuala Lumpur.

The centre serves as a springboard to boost business and economic activities between Asean and the Gulf Corporation Council, comprising Saudi Arabia, Bahrain, Qatar, Kuwait, the United Arab Emirates and Oman.

Afifuddin said participants will be updated on Malaysia's investment aftercare services and packages of services provided to both domestic and foreign investors by the Selangor State Investment Centre and Shah Alam City Council. This year's six-day familiarisation programme attracted 24 participants.

Meanwhile, ITAP investment promotion specialist Mohammed Bukhari Ahmed Ali said investment promotion agencies can play a vital role in retaining Foreign direct investments through effective investor support. IPAs can also play a lead role in helping to position their countries for improved post-crisis FDI attractiveness.

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Several MOUs To Be Signed Between Malaysia And China
November 09, 2009 23:50 PM

PUTRAJAYA, Nov 9 (Bernama) -- Several memorandums Of understanding (MOU) are expected to be signed between Malaysia and China during the two-day visit of Chinese President Hu Jintao beginning tomorrow.

Foreign Minister Datuk Seri Anifah told a news conference here today that Hu had also made a personal request to visit Melaka on Wednesday.

The Chinese President and his wife, Liu Yongging, are scheduled to arrive at the KL International Airport (KLIA) in Sepang at 3.40pm tomorrow.

After a state welcome at Parliament Square he will have an audience with Yang di-Pertuan Agung Tuanku Mizan Zainal Abidin at Istana Negara and receive a courtesy call from Prime Minister Datuk Seri Najib Tun Addul Razak and wife, Datin Seri Rosmah Mansor, at Shangri-la Hotel in Kuala Lumpur.

On Indonesian President Susilo Bambang Yudhoyono's visit, Anifah said Susilo would arrive at the KLIA at 1pm on Wednesday and would also be accorded a state welcome at Parliament Square besides receiving Najib and having an audience with Tuanku Mizan.

On Thursday he would have a delegation meeting with Najib during which they were expected to discuss issues including that on Indonesian maids in their talks on manpower for the two countries, Anifah said.

He also said that Najib had received an invitation to attend the Nuclear Summit in Washington in April next year.

-- BERNAMA

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Submarine cable connecting M'sia and SEA to US ready
Updated: Tuesday November 10, 2009 MYT 11:33:01 AM
http://biz.thestar.com.my/news/story...9&sec=business

KUALA LUMPUR: The 20,000 km submarine cable network providing a direct connection between South East Asia and the United States, is ready to be activated, Telekom Malaysia said Tuesday.

It will start carrying commercial traffic as Telekom Malaysia Bhd (TM), together with the consortium of Asia America Gateway (AAG) submarine cable network, has completed the comprehensive test requirement.

The AAG is designed to provide a capacity of up to two Terabits per second of data bandwidth.

It is also the first high-bandwidth optical-fibre submarine cable system to directly link South East Asia and the United States.

The cable system connects 10 locations in eight countries across the Asia Pacific Region and the United States - ibcluding Malaysia, Singapore, Thailand, Vietnam, Brunei, Hong Kong and the Philippines while landing in Guam, Hawaii and California, said TM in a statement.

The AAG also provides seamless interconnection for the above mentioned countries to other regions like Europe, Australia, Africa and other parts of Asia.

"This commercial rollout of AAG marks another milestone for TM in providing reliable, lower latency international connectivity to its global clients from around the world," said TM's executive vice president, Global Mohamad Rozaimy Abdul Rahman.

He said besides providing additional bandwidth capacity, the AAG submarine cable system is intended to become an alternative and a more secure link for traffic from the region to the USA.

"This low risk route was designed to avoid the volatile and hazardous Pacific Ring, thus mitigating the effects from natural disasters like earthquakes and tsunamis, which have previously damaged submarine cable systems, resulting in major disruptions to international internet links," he explained.

With an initial equipped capacity of 500 Gigabits per second, the submarine cable network is upgradeable using field tested Dense Wavelength Division Multiplexing (DWDM) technology, which enables it to provide upgradeable future transmission facilities that support internet and e-commerce traffic.

The cable network complements existing cable systems such as the Asia Pacific Cable Network 2 (APCN 2) and Japan-US Cable Network currently connecting to North America via North Asia. - Bernama

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KDB Financial eyeing SEA banks
Monday November 9, 2009

SEOUL: South Korea’s state-funded KDB Financial Group Inc is seeking to buy Southeast Asian banks, instead of merging with Korea Exchange Bank (KEB), as the market expected, the group’s chief said yesterday.

“KDB Financial is interested in the Asian market and currently watching two or three banks in Southeast Asia,” KDB Financial Group chairman Min Euoo-Sung was quoted as telling Yonhap News Agency.

“Basically, KDB Financial is more interested in overseas banks than KEB,” he said.

Min said KEB became prohibitively expensive with its shares rising nearly three-fold to around 14,000 won (about US12) from late last year. — AFP

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China-Asean Free Trade Area to be fully realised by 2010
9th November, 2009

NANNING: The China-Asean Free Trade Area (CAFTA) is expected to be fully realised by 2010 which will have a positive impact on the global economic recovery.

Amid lingering global economic downturn and rising trade protectionism from western countries, state leaders from China and Asean countries have vowed to make joint efforts for a full realisation of China-Asean FTA, or CAFTA, as well as regional prosperity.

The annual China-Asean Expo (Caexpo) is a platform to promote exchanges and cooperation in trade and investment between China and Asean countries.

CAFTA will create a combined GDP of nearly 6 trillion US dollars to become the third largest FTA in the world, only next to the North American FTA and European FTA. And in terms of the 1.9 billion population it covers, it is the largest FTA in the world.

Representing the first free trade area agreement signed by China, the CAFTA will provide zero tariff on 90 per cent of products traded between China and Asean and other favourable policies on trade and investment.

In a time of rising global trade barriers, Caexpo this year is seen by observers as an important opportunity to enhance communication and consultation on the CAFTA, and strengthen the position of China and Asean countries on the world economic stage.

“China and Asean share strong historical trading ties, and strengthening trade and economic cooperation with China is important for Asean,” said Surin Pitsuwan, Secretary General of Asean at the ceremony.

“China grows, Asean grows,” he said.

China’s Minister of Commerce Chen Deming said the China-Asean partnership will reach a higher level after CAFTA is fully realized,” Chen said.

Ma Biao, chairman of the Guangxi Zhuang Autonomous Region, said Guangxi, which is adjacent to Vietnam, is willing to make greater contributions to the China-ASEAN cooperation through building Guangxi Beibu Gulf Economic Zone and promoting the Pan Beibu Gulf economic cooperation.

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KL, HK sign agreement on Islamic financial products
10th November, 2009

KUALA LUMPUR: Malaysian capital market players can now fast track the entrance of their Islamic products into Hong Kong and tap into potential business in mainland China.

This follows the Mutual Recognition Agreement (MRA) on the Development of Islamic Capital Market and Islamic Collective Schemes signed between the Securities Commission (SC) Malaysia and the Securities and Futures Commission (SFC) Hong Kong yesterday.

The agreement also allows authorised Islamic funds, primarily regulated by the SFC and managed by SFC-licensed managers, to be marketed here.

SC Chairman Tan Sri Zarinah Anwar said it was very important for Malaysian market players to take advantage of the linkages built between both regulators in order to develop the local market.

“Our fund management business is only RM300 million as opposed to Hong Kong’s US$750 billion market.

“That is why we are urging the players and intermediaries to go abroad and grow their business,” she told reporters after the signing ceremony.

At the same event, SFC Chairman Eddy Fong said he hoped there would be more opportunities for Islamic funds to come to Hong Kong with the MRA.

He said collective scheme investors could also learn from Malaysia’s experience, adding that many Islamic investors and issuers were keen on mainland China.

“As part of the mainland, we can help them develop their business. We don’t have a very big market on Islamic products, but what we can offer is a very open market,” he said, adding that 60 per cent of its funds are from outside Hong Kong.

Earlier, in his welcoming address, Hong Kong’s Permanent Secretary for Financial Services and Treasury (financial services) Au King-chi said Hong Kong was relatively new to Islamic finance sector and there was a lot to look and learn from Malaysia.

“We believe areas such as product development, infrastructure enhancement, and investor education are key successes of Islamic finance development,” she said.

She also promoted Hong Kong as well, positioned to bridge the investment need of the Middle East liquidity, with investment opportunities of Mainland China.

“This is the niche market we are eyeing,” she said.

Au, however, noted that Hong Kong was preparing legislative amendments to level the playing field for Islamic financial products vis-a-vis conventional financial products.

“We have been advised by market players and experts from other Islamic finance centres that the major impediment for Islamic finance development in Hong Kong is our taxation regime,” she said.

Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah, who was also present, said Islamic finance must escape the confines of the endless arguments of multiple interpretations and indignant righteousness if it is to progress beyond what it is today.

He said the pillars of Islamic finance were based on fumdamental universal values of humanity.

With fairness and justice for all transacting parties, he said the insistence on having every transaction directly linked to real economic activities, and the assurance that the transaction was not detrimental to the community were principles desirable in any society.

“Islamic finance has been viewed through lens too narrow. We have to focus on the substance, not form,” he added.

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Somalia Seeks Malaysia's Help With Its Economic Development
November 10, 2009 22:52 PM
From Nor Baizura Basri

ISTANBUL, Nov 10 (Bernama) -- Somalia, which is in transition to a new government, has sought the help of Malaysia to develop the country especially its economy, Deputy Prime Minister Tan Sri Muhyiddin Yassin said.

During his bilateral meeting Monday with the Deputy Prime Minister of Somalia, Sharif Hassan Sheikh Aden, the latter had said that the civil war in the country had decimated many of its people and ravaged its economy.

"Presently they are in transition to a new government and the current situation is not stable but they do have the intention of solving the conflict which involves several tribes in Somalia," he told reporters before returning to Malaysia.

"If this (situation) can be overcome, he (Sharif Hassan) wants Malaysia to help develop Somalia. This requires us to study the matter carefully," he said.

Muhyiddin was here on a two-day visit, leading the Malaysian delegation to the Economic Summit held here Monday in conjunction with the 25th summit of the Standing Committee for Economic and Commercial Cooperation (COMCEC) of the Organisation of the Islamic Conference (OIC).

Besides Somalia, the minister also had bilateral meetings with other leaders of OIC member nations, namely the Emir of Qatar, Sheikh Hamad Khalifah Al-Thani, Prime Minister of Mauritania, Moulaye Ould Mohamed Laghdaf, and the President of Sierra Leone Ernest Bai Koroma.

During his 30-minute meeting with Somalia, Muhyiddin also suggested that officials from the country be sent to Malaysia to undergo human resources training both for administraton and economic development purposes.

"We have the Malaysian Technical Cooperation Programme (MTCP) scheme under the Foreign Ministry. Therefore, we can train their officers under the programme and send our officers to their country and so on," he said.

Somalia is rich with natural resources and their primary activity is agriculture, he said.

"We will see how Malaysia can help with Somalia's economy especially in the agriculture sector and fisheries," the deputy prime minister said.

Malaysia will be able to also help in the areas of education.

Muhyiddin also disclosed that several leaders of OIC member nations had informed him of their intention to visit Malaysia next year including the Emir of Qatar and Syrian President Bashar Assad.

-- BERNAMA

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Symmetry Medical To Invest RM35 Million To Expand Penang Operation
November 10, 2009 18:31 PM
http://www.symmetrymedical.com/

PENANG, Nov 10 (Bernama) -- Symmetry Medical Inc, which provides products to the global orthopaedic device industry and other medical markets, is ready to invest about RM35 million (US$10 million) over the next two years to expand its Penang plant.

Its president and chief executive officer Brian Moore said following the successful development of its operation in Penang, the company was looking to expand its local business rapidly over the coming years.

"We have decided to invest the money especially in equipment, design and developing expertise mainly because the Penang plant is the Asia-Pacific headquarters," he told reporters here Tuesday.

Moore said the company expects to achieve about US$50 million revenue in the global market next year.

"The company currently occupies a 50,000-square foot facility in Bayan Lepas, where it is designing and manufacturing implants, instruments and sterilisation cases for markets in Asia, Europe and the United States," he said.

Moore said Symmetry Medical has started to generate new customer relationships in the region as a result of the company's presence and expanding capabilities.

"We look forward to further progress in growing our presence as the global demand is expected to grow in the years to come," he said.

Moore said the company was also planning to increase its headcount in Penang in the coming months as strong demand from global customers was expected to drive further growth.

"We are keen on hiring some engineers with medical design experience to cope with the demand of the global market," he said.

Symmetry Medical is a leading independent provider of implants and related instruments and cases to the orthopaedic device industry.

The US-based company also designs, develops and produces these products for other segments of the medical device market, including the arthroscopy, dental and endoscopy sectors, and provides specialised products and services to non-healthcare markets.

-- BERNAMA

[durio uno]

Pelikan to close RM227mil German deal soon
By IZWAN IDRIS


Pelikan President LOO HOOI KEAT



http://biz.thestar.com.my/news/story...8&sec=business

The purchase of rival Herlitz will double group revenue

KUALA LUMPUR: Pelikan International Corp Bhd hopes to conclude a 45 million euros (RM227mil) cash deal to acquire a 66% stake in another German stationery maker, Herlitz AG, together with the firm’s logistics centre and related assets located near Berlin, by the year-end.

Pelikan president and chief executive Loo Hooi Keat said the proposed acquisition would enable the group to double its revenue for the financial year ending Dec 31, 2010 (FY10).

“This acquisition is in line with our strategy to increase the volume of business through expansion of new products and distribution channels,’’ he told a press conference to announce the deal yesterday.

Loo sees substantial “cost savings” arising from the acquisition, given the two group’s combined revenue of about RM2.8bil based on figures reported for 2008.

“We are looking at RM100mil in terms of cost savings in FY10,’’ he said.
The “prize jewel” for Pelikan under the deal was the purchase of Hertliz’s advanced logistics assets.

Loo said Pelikan planned to close its existing three logistics operations in Germany by June next year, and consolidate the group’s distribution and supply chain management at Herlitz’s Falkensee site.

He estimated that this alone would save the enlarged group about 5.4 million euros (RM27mil) in operating costs next year.

“The two companies are essentially in different market segments; Herlitz is more of a mass market manufacturer while Pelikan caters more to the upper end of the market,’’ said MIDF Research analyst Belford Chang, who attended a separate briefing by Pelikan yesterday.

The Herlitz acquisition was the second major purchase by Pelikan, a German brand stationery maker which was listed on Bursa Malaysia in 2005 following a takeover by Malaysian investors led by Loo, in three years.

Loo said Pelikan would extend a general offer (GO) to buy the remaining shares in Herlitz.

Shares in Frankfurt Stock Exchange-listed Herlitz jumped 58% to 3.25 euros each last Friday after the deal was announced in Germany.

Loo said the general offer for the remaining Herlitz shares would value the stock at about 1.85 euros each, the stock’s average price for the last three months.

“We would like to take Herlitz private but at the moment we are sticking to our offer price,’’ he said, adding that the GO would probably be extended until the first quarter next year.

To buy out Herlitz’s minority interests would cost Pelikan an additional seven million euros.

According to Loo, the takeover would be financed with internal fund and bank loans. Pelikan would probably seek loans from local banks to pay the 45 million euros acquired from Boston-based private equity fund Advent International Corp.

The deal effectively gives Pelikan control of its closest rival in Germany.
Last year, Herlitz’s total sales stood at 300 million euros (RM1.5bil) while Pelikan’s revenue amounted to RM1.29bil in FY08.

Herlitz was estabished in 1904 but has little presence outside Europe. Pelikan is 171 years old, with seven manufacturing sites worldwide and a growing presence in Latin America and Asia.

[nazrey]

Syarikat Takaful keen to tap Middle East market
Wednesday November 11, 2009

KUALA LUMPUR: Syarikat Takaful Malaysia Bhd expects to close a collaboration deal with a local financial institution in Qatar in a year as part of its plan to penetrate the Middle East market.

Group managing director Datuk Hassan Kamil said there was business potential in countries like Qatar, Kuwait and Abu Dhabi for the takaful business and the company was interested in expanding to these markets.

“We have been invited by a local financial institution in Qatar to provide technical support as it is keen to venture into the takaful business,” he told a press conference after Syarikat Takaful unveiled its new logo, coinciding with its 25th anniversary celebration yesterday.

Hassan said the company was currently in talks with the institution and expected to see some results in a year.

He said the company was also interested to venture into China and was waiting for the Islamic infrastructure there to be in place.

“Sukuk or Islamic bonds are gaining momentum or acceptance not only in the Middle East and Islamic countries. Countries like China and South Korea are also exploring the opportunities in Islamic financing and have even successfully raised some money via Islamic bonds,” he said.

Syarikat Takaful is already present in Indonesia where it has 34 branches. Locally, it has over 50 branches.

On local expansion, Hassan said the company planned to set up more takaful desks to offer takaful products services in Tabung Haji branches.

“This will be the most efficient and economical way to reach out to the market without having to incur any major capital expenditure,” he said. The company currently holds 40% of the takaful market and it aims to improve it to 50% in the next two to three years.

It currently manages assets worth over RM4bil and has an annual turnover of over RM1bil. To enhance its competitive edge, it will introduce more innovative products and expand its current distribution network.

Its rebranding exercise, which cost RM15mil, includes a new modern, young and energetic “look” to the company logo, physical creative refurbishments of its 13 platinum branches and new outdoor billboards and signages nationwide.

[nazrey]

The best of Argentina
Wednesday November 11, 2009
By CHOONG MEK ZHIN



Appreciating fine wine: Rendon (left) and Argentine Embassy secretary
Patricio Kingsland holding up glasses of wine. On the table in front of them
are some of the finest wines from the nine wineries represented at the event.

DRINKING wine is slowly gaining popularity in Malaysia, and Argentina, as one of the top wine-producing countries in the world, is eager to introduce her wines to Malaysians.

ProMendoza Foundation wines division representative Nicolas Perinetti, who was part of the team that organised a wine-tasting event at JW Marriott Kuala Lumpur recently, had at least three reasons for wines to grow in popularity in Malaysia.

“One glass of red wine a day is said to be beneficial to one’s health. It helps with blood circulation,” Perinetti said, adding jokingly that Argentinians drank about a bottle of wine a day.

Perinetti added that Argentinian wines would suit Malaysian cuisine well.

“Our fare has similarities, such as the use of a lot of rice. We also consume a lot of seafood and some of our food, such as beef, is usually prepared a little spicy,” Perinetti said.

He also said as a country with a big tourism industry attracting a lot of foreigners from countries where wine-drinking was common, having a wide range of wines locally would be beneficial for every one.

“Of course, there is also the fact that it feels like Argentina and Malaysia are sharing our cultures by mixing our wines with the local cuisine that could bring out interesting tastes and results,” Perinetti said.

At the event, nine wineries from Mendoza city introduced a variety of their wines — from table wines to winemaker’s selections — to the guests, whose impression might eventually lead to the import of those wines into Malaysia.

Argentina is ranked the seventh largest wine-consuming country in the world and the fifth in producing wine.

“We have almost 1,000 wineries in Mendoza that account for 70% of the country’s total output. The figure is astounding even by Argentinian standards,” Perinetti said.

He added that the area was located between 32°S and 24°S, where the weather was perfect for planting grapes.

“Mendoza has about 300 days of intense sun a year, which allows the grapes to become ripe and rich.

“The air is very dry, which means that not much chemicals are used because fungal diseases are not prevalent,” Perinetti said.

According to him, the water for the crops comes from the Andes mountains and all these factors result in the grapes being almost completely organically grown.

Last year, Argentina exported wine worth US$858mil, with Mendoza accounting for 90% of that amount.

Among the wineries represented at the event, which was co-organised by the Argentinian Embassy, two — Santa Ana and Trivento — already have a presence in Malaysia.

The other seven wineries, whose products were being tasted for the first time in Malaysia, were Finca Algarve, El Rosal, Finca Don Carlos, La Rural Winery, Eclipse Winery, Vina Amalia and RPB - Baggio.

Also present at the event was Argentina ambassador to Malaysia Maria Isabel Rendon.

“Argentinian wineries are well known for their output and quality. I believe the market in Malaysia is ready for more choices,” Rendon said.