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MONDAY NOVEMBER 24, 2014 ISSUE 1845/2014 FINANCIAL MAKE BETTER BMW M4 is a sniper in a perfectly DAILY DECISIONS tailored suit www.theedgemarkets.com 20 FOCUS 7 HOME BUSINESS HIL Industries FY14 results to be a ‘pleasant surprise’

8 HOME BUSINESS EA Technique eyes upstream O&G business

10 HOME BUSINESS Kronologi Asia to list on ACE Market by year-end

16 HOME Najib: Give young people chance to be in Umno leadership

18 HOME Why charge GST on maintenance fees? 2 MONDAY NOVEMBER 24, 2014 • THEEDGE FINANCIAL DAILY

For breaking news updates go to www.theedgemarkets.com

ON EDGE TV IN BRIEF www.theedgemarkets.com 11 coal mine explosion Fund fl ow will victims still critical KUCHING: Eleven victims of a coal mine explosion which left three workers dead in Pantu, Sri Aman Division on Saturday, are be hampered still in the intensive care unit of the Sarawak General Hospital RHB targeting (HUS) in “critical but stable” con- RM60m in dition, according to a staff mem- premiums for Lack of a track record and minimal risk appetite are the causes ber, with breathing diffi culties. Seven victims are recuperating 2014 via in a regular ward, he said when tie-up with BY CHARLOTTE CHONG change because the facilities and met here yesterday. Th ree oth- Tokio Marine infrastructure that we have inherited er victims have been warded at KUALA LUMPUR: Th e lack of track over the past years are no longer ad- the Sri Aman Hospital, and fi ve record in selected industries, cou- equate to serve the [current] banking more are in two private hospitals pled with minimal risk appetite of industry,” he said. here. Th e workers killed in the foreign fund managers, will hamper AICB provides training for char- 9am explosion at Selantik were funds fl owing into the country, said tered bankers and certifi cations such identifi ed as Indonesian Kard- Asian Institute of Chartered Bankers as professional credit certifi cation, ianto, 38, North Korean Pang (AICB) chief executive offi cer Tay certifi cate in internal auditing for fi - Chung Hyok, 29, and Myanmar Kay Luan (pic). nancial institutions and so on. Over Tun Tun Win, 29. — Bernama “Under the Economic Transfor- 1,000 people have enroled for the The worst mation Programme (ETP), only se- chartered bankers certifi cation and Boko Haram militants lected industries have a competitive 3,000 for professional credit. kill 48 ﬁ sh vendors is over for edge [over others to attract foreign AICB is organising a risk manage- ABUJA: Boko Haram gunmen AirAsiaX, funds] and it is not easy to attract ment conference themed “Bolstering killed 48 fi sh vendors in Nige- says CIMB IB [foreign funds] to the country,” Tay Risk Management Amidst Challeng- ria’s restive Borno State, near the told Th e Edge Financial Daily in an try’s net FDI infl ows rose 22.2% to ing Landscape” on Wednesday, with border with Chad, the head of interview. US$12.3 billion last year from US$10.1 Th e Edge Communications Sdn Bhd the fi sh traders association told Th e selected industries include an- billion in 2012, according to the World as the media partner. Th e agenda in- AFP yesterday. “Scores of Boko imation, green technology, research Investment Report 2014 published by cludes discussions on risk rating sys- Haram fi ghters blocked a route and development, rubber gloves, the United Nations Conference on tems and regulators’ perspective and linking Nigeria with Chad near palm oil, and oil and gas. Tay noted Trade and Development. Tay is of the challenges. Invited speakers include the fi shing village of Doron Baga The Edge Communications Sdn Bhd (266980-X) that other Asean countries can off er view that the fl ow of funds into the RAM Rating Services Sdn Bhd chief on the shores of Lake Chad on Level 3, Menara KLK, No 1 Jalan PJU 7/6, what Malaysia possesses, such as po- country must be able to appreciate executive offi cer Foo Sun Yin and Th ursday and killed a group of Mutiara Damansara, 47810 Petaling Jaya, litical stability and access to cheap the country’s high-income concept BDO regional head of risk advisory 48 fi sh traders on their way to Selangor, Malaysia raw materials, leading to even stiff er and able to add to the value chain. services Lim Huck Hai. Chad to buy fish,” Abubakar competition to attract foreign funds. On its part, AICB is undergoing a The supporting sponsor of the Gamandi said. He said the in- Publisher and Group CEO Ho Kay Tat “We are not at the top of our for- transformation, including the estab- event is Moody’s Analytics and the surgents set up a barricade at Editorial eign direct investment (FDI) now as lishment of the Asia Banking School supporting partners are Islamic Bank- Dogon Fili, 15km from Doron For News Tips/Press Releases compared [with] in the 1980s,” he said. next year. Tay said it will cost about ing and Finance Institute Malaysia, Baga, and stopped a convoy of Tel: 03-7721 8219 Fax: 03-7721 8038 Tay said Malaysia continues to lag RM20 million to RM25 million to set Th e Malaysian Insurance Institute fi sh vendors around midday, Email: [email protected] behind neighbouring countries in up the school. and Th e Securities Industry Devel- slaughtering some of them and Senior Managing Editor Azam Aris terms of total FDI infl ows. Th e coun- “We found ourselves in need of opment Corp. drowning others in the lake. Executive Editors Kathy Fong, — AFP Jenny Ng, Siow Chen Ming, Surinder Jessy, Ooi Inn Leong Associate Editors R B Bhattacharjee, ‘Managed ﬂ oat system a Joyce Goh, Jose Barrock, good move’ Vasantha Ganesan GUA MUSANG: Former fi nance Editor, Features Llew-Ann Phang Dutch complete MH17 recovery minister Tan Sri Tengku Raza- Deputy Editors Cindy Yeap, Kang Siew Li leigh Hamzah has come out in Assistant Editors Adeline Paul Raj, AMSTERDAM: Dutch experts com- on Saturday, it said. will be carried out.” support of the government’s Tan Choe Choe pleted the recovery of wreckage from Dutch experts, charged with body Kiev and the West have claimed move to scrap the fuel subsi- Chief Copy Editor Halim Yaacob the crash site of downed Malaysia part recovery and also leading the that the airliner was shot down in dy and base the RON 95 petrol Senior Copy Editors Marica Van Wynen, Lam Seng Fatt, Airlines flight MH17 in eastern probe into the July 17 crash that killed the confl ict-torn area by separatist and diesel prices on a managed Melanie Proctor Ukraine yesterday, and have sent it all 298 people on board, are to recon- fi ghters using a BUK surface-to-air fl oat system from Dec 1, saying Copy Editors Evelyn Chan, to a government-controlled city en struct parts of the doomed Boeing missile supplied by Russia. Moscow it could help ease the burden Veronica Poopathy route for the Netherlands. 777 in the Netherlands as part of denies the charges, pointing the fi n- on the people at a time of ris- Art Director Sharon Khoh Design Team Cheryl Loh, “[Transport of] the recovered their investigation. ger at Kiev. Investigators began the ing prices. “Th is is the best time Valerie Chin, Aaron Boudville, wreckage from fl ight MH17 is under “When the wreckage has arrived removal operation a week ago under for the government to abolish Aminullah Abdul Karim, way towards Kharkiv,” by train, the in Kharkiv, transport to the Neth- the auspices of the Organisation for the fuel subsidy because global Yong Yik Sheng Dutch Safety Board (OVV) said in erlands will be prepared,” the OVV Security and Cooperation in Europe crude oil prices have fallen ...” Asst Manager-Editorial Services Madeline Tan a statement. Trucks carrying larger said. “At this point it cannot be said amid fears that fi ghting could break the Gua Musang MP said yes- pieces of wreckage drove to Kharkiv when and in what way this transport out again in the area. — AFP terday. — Bernama Corporate Managing Director Au Foong Yee Deputy Managing Director Lim Shiew Yuin

Advertising & Marketing Pru’s lesson for investors — trust animal spirits To advertise contact GL: (03) 7721 8000 Fax: (03) 7721 8288 Chief Marketing Offi cer BY CHRIS HUGHES merger valuing Prudential at 678 £16 billion. Assume the merger had If Aviva shareholders were too Sharon Teh (012) 313 9056 pence per share, against the target’s succeeded and “Pruviva” was now cautious, Prudential’s aren’t off the Senior Sales Managers LONDON: Shareholders gripe when ex-dividend share price of 616.5 worth the combined market capi- hook. Th ey trashed their company’s Geetha Perumal (016) 250 8640 Fong Lai Kuan (012) 386 2831 bosses off er big premiums in takeo- pence. Aviva’s then-chief executive talisations, plus 15% for a rerating. bid for Asian rival AIA in 2010. AIA’s Shereen Wong (016) 233 7388 vers. Such lack of faith in manage- offi cer (CEO), Richard Harvey, was It would be a £63 billion company. subsequent performance has vin- Acting Senior Sales Manager ment can prove costly. Prudential’s to lead the enlarged group. Tidjane Former Aviva shareholders would dicated Prudential’s interest. Had a Gregory Thu (012) 376 0614 share price surge to new highs last Th iam, Prudential’s current CEO but own 55% under the deal terms, Pruviva bought AIA, the UK would Ad-Traffi c Manager Vigneswary Krishnan (03) 7721 8005 week worsens the toll borne by rival then Aviva’s head of Europe, would worth some £34 billion. have a global insurer now worth Ad Traffi c Asst Manager Aviva for its failed attempt at buying have later run the acquisition, says Prudential’s CEO at the time, perhaps US$166 billion (RM557.76 Roger Lee (03) 7721 8004 its domestic insurance peer in 2006. a person familiar with the situa- Mark Tucker, snubbed Aviva. He billion). Executive Ad-Traffi c Th e combination would have cre- tion. Pre-tax annual synergies were reckoned a merger would dilute In another country, the slightest Norma Jasma (03) 7721 8006 Email: [email protected] ated a UK national champion and put at a conservative £320 million his company’s growth story. And he attempt to create a national champi- countered Aviva’s strategic weak- (RM1.68 billion). was totally right. Still, he would have on might have seen the government Operations nesses. It failed largely because Aviva Prudential’s shares now trade at struggled to see off the approach lock the warring CEOs in a room un- To order copy felt it lacked investor support to pay around 1,500 pence, valuing it at if the dangled premium had been til they agreed a deal. Shareholders Tel: 03-7721 8034 / 8033 Fax: 03-7721 8282 more than a miserly 10% premium. £39 billion. Aviva’s have fallen from 30%. Th at would have cost Aviva are usually right to rein back chiefs. Email: [email protected] Aviva had proposed an all-share 827 pence to 536 pence, valuing it at only another £3 billion. Th is was the exception. — Reuters

4 HOME BUSINESS MONDAY NOVEMBER 24, 2014 • THEEDGE FINANCIAL DAILY PKA withdraws suit against KDSB in PKFZ land case

Board unanimously agrees in a meeting in Putrajaya last Friday

STORIES BY SHANKAR GANESH tion that it should not be charged PKA subsequently wrote to the At- an interest of RM720 million on the torney-General and the transport PORT KLANG: In a shocking move balance purchase price of the land ministry for their advice. related to one of the nation’s biggest under the agreement and sought a “However, both did not make a scandals, the Port Klang Authority refund of the interest paid to KDSB. stand, saying PKA needed to make (PKA) has decided to withdraw its Th e PKA contended that mis- a decision on its own since the suit RM720 million suit against turnkey takes and fraud were involved in was initiated by the statutory body contractor Kuala Dimensi Sdn Bhd the agreement and that the value of itself,” said a source. (KDSB) over the Port Klang Free each square foot of the land should It is believed that the proposal Zone (PKFZ) fi asco. be RM21 and not RM25. to withdraw the suit faced many The Edge Financial Daily has It also claimed that the purchase queries from a representative of learnt that the PKA board unani- price was inclusive of interest as the fi nance ministry on the board. mously agreed to discontinue the stated in the agreement and that it During last Friday’s meeting, the suit in a special meeting in Putra- would be paid over 15 years. proposal to withdraw the suit was jaya last Friday. On Feb 7, 2012, the Shah Alam passed without board members According to sources, seven of High Court allowed KDSB’s ap- Datuk Dr Mohd Isa Hussain from the nine directors present at the plication to strike out the suit but the finance ministry and Datuk meeting also decided that it will on June 25 that year, the Court of Badaruddin Mahyudin from the initiate negotiations with KDSB Appeal reinstated the suit and al- Public Private Partnership Unit. Filepic of the Port Klang Free Zone. The move will see the PKA dropping its biggest for it to withdraw its suit against lowed the PKA’s appeal. Other board members present case among the four suits it had ﬁ led with regard to the RM12.5 billion PKFZ scandal. the PKA. Last year, the Federal Court re- were Kong, PKA general manager The Edge ﬁ le photo Th e move, which is set to ring fused to grant leave to KDSB to Datuk Capt David Padman, Datuk alarm bells among the public and appeal. Th e PKA’s decision to with- Abdullah Yusuff Basiron from the some of the witnesses in this suit Another suit against KDSB and the corridors of powers, will see draw comes just two months after transport ministry, Datuk S Muru- were the same and the acquittal had project consultant, Bernard Tan (of the PKA dropping its biggest case Tan Sri Kong Cho Ha was appointed gesan, Datuk Song Kee Chai, Tan seriously impacted the decision. BTA Architect), over development among the four suits it had fi led its chairman. Th e PKA is under the Chong Seng and Loo Kwee Th iam. Th e board is also said to have and supplemental agreements, with regard to the RM12.5 billion purview of the transport ministry According to sources, the advice weighed the cost of continuing the signed between February 2003 and PKFZ scandal. and Kong was a former transport to withdraw was due to implications legal suit and losing the case. November 2006 is still pending in Th e PKA fi led the suit against minister. from the case of former transport It is said that some RM3 million the Shah Alam High Court. KDSB on Sept 25, 2009, seeking rec- Sources said the PKA board’s minister Tun Dr Ling Liong Sik, had been spent on the PKA cas- Th e PKA also sued former gen- tifi cation of the agreement signed decision came after lawyers Skrine who was charged and later acquit- es, and up to an additional RM1.5 eral manager Datin OC Phang for on Nov 12, 2002, for the land worth & Co had issued a letter saying the ted, for misleading the Cabinet on million may be incurred on this breach of fi duciary duties, which RM1.88 billion. It sought a declara- case was weak. It is learnt that the the land valuation. It is learnt that case alone. is pending. Expensive lesson in corruption and lack of transparency

PORT KLANG: Th e Port Klang Free PKA had been overcharged. was no need to relook at the PKFZ could amount to RM720 million. In the suit against BTA Architect, Zone (PKFZ) started taking shape In 2007, the Finance Ministry scandal. Th e PKA had sought a declara- the PKA sought damages for fraud in March 1999 after an approval by gave a RM4.3 billion soft loan to Th e PKA decided not to make tion that the interest charged on and negligent misrepresentation, the Cabinet and was to be mod- PKFZ for further development. any fi nal payment to KDSB’s spe- the balance purchase price of the with interest and costs. elled after Dubai’s Jebel Ali Free In May 2008, PKA chairman Da- cial-purpose vehicle Free Zone land was wrongly imposed. Th e PKA also wanted a declara- Zone, with a projected cost of al- tuk Lee Hwa Beng announced that Capital Bhd but Kong overrode It said KDSB had sold the land tion that the interest rate increase most RM2 billion. an independent audit by PriceWa- the decision. to the PKA for RM1.088 billion on from 5% to 7.5% for additional de- In 2002, the Port Klang Authori- terhouseCoopers had been com- Former transport ministers Tan a “special value” basis. Th e con- velopment works was null and void. ty (PKA) signed an agreement with missioned for PKFZ and fi ndings Sri Chan Kong Choy and Tun Dr tention was that the valuation had In October 2009, the PKA sued Kuala Dimensi Sdn Bhd (KDSB) to were released the following year. Ling Liong Sik were charged in already taken the interest into con- Phang for breach of duty during buy almost 400ha of land in Pulau Th en transport minister Datuk court. sideration and that it should not her tenure. Indah for RM1.09 billion or at RM25 Seri Ong Tee Keat set up a special Ling was acquitted by the High charge any additional interest. It said Phang had failed to ensure per sq ft (psf). task force to make recommenda- Court of a charge of cheating the In the second suit, the PKA is that key agreements had adequate KDSB is the subsidiary of Wijaya tions to the PKA on its failures and government and the Cabinet in- seeking a rescission of all devel- terms to safeguard its interest. Baru Holdings Sdn Bhd (WBHSB), legal actions against guilty parties. volving the purchase of a 335.8ha opment agreements and declaring She had allegedly appointed whose main shareholder is Bintulu After recommendations by the parcel of land totalling RM1.08 bil- that KDSB is only entitled to be paid a quantity survey firm linked to Member of Parliment Datuk Seri task force, the PKA lodged a police lion. a reasonable value of work done. KDSB, resulting in a confl ict of in- Tiong King Sing. report over fi nancial irregularities Charges against Chan were with- Th e PKA alternatively wanted a terest. KDSB had bought the land from against KDSB and project consult- drawn. He was charged with three declaration that all notices of pay- Th e PKA also claimed that Phang Pulau Lumut Development Coop- ant BTA Architect on possible fraud- counts of cheating then prime min- ments issued by KDSB were null had caused the PKA to enter into erative Bhd for only RM95 million ulent claims. ister Tun Abdullah Ahmad Badawi and void. further key agreements, without or RM3 psf. Following this, the PKA The PKA later filed two suits by deceiving the latter into approv- It also wanted a declaration that referring to board members for appointed KDSB to develop PKFZ against KDSB and another two ing KDSB as the turnkey develop- KDSB was not entitled to almost deliberation and approval. at a cost of RM1.32 billion. against PKA general manager Da- er and renovation works between RM837 million in claims, which it Th e PKFZ issue remains a thorn Th e PKA and KDSB signed sup- tin OC Phang and BTA Architect. 2004 and 2006. made for the monsoon drain and on the government’s side, with al- plemental agreements for addi- In December 2010, Phang and Chan was accused of not dis- water supply works, preliminar- legations of cronyism, confl ict of tional development works valued two others were charged with crimi- closing to Abdullah that the project ies, professional fees and varia- interests and now a cover-up. at RM510.38 million. In November nal breach of trust and making false was to be funded by a KDSB bond tion works under the development At one point, former housing 2006, PKFZ was launched but the claims in the Klang Sessions Court. supported by him. agreements. and local government minister Tan cost had gone up to RM4.6 billion. Ong was later dropped as trans- The first KDSB suit, which is It was also seeking almost RM34 Sri Chor Chee Heung held the po- Controversy surrounded the port minister and replaced by Tan now being withdrawn, disputes million in damages for the remedial sitions of PKA chairman and WB- project when it emerged that the Sri Kong Cho Ha, who said there the computation of interest that cost of defective works. HSB deputy executive chairman.

6 HOME BUSINESS MONDAY NOVEMBER 24, 2014 • THEEDGE FINANCIAL DAILY

Magnum ‘4D Jackpot ‘Felda group a Gold’ to give moderate substantial Barakah earnings boost BY WEI LYNN TANG the lower prize payout ratio”. Magnum’s operating margin for KUALA LUMPUR: Magnum Bhd’s the six months ended June 30, 2014 new jackpot game variant dubbed stood at 16.1%, down from 17.6% a shareholder’ “4D Jackpot Gold” is expected to give year ago. its earnings a moderate single-digit He does not foresee much can- rate boost. nibalisation between the new game Analysts concurred that the new and Magnum’s existing games of Move a launch pad for entering domestic O&G industry, sources game is rather complicated and 4D and 4D jackpot. Khoo believes lacks the “intuitive” appeal of the this would enable Magnum to win classic 4D game, thus any initial market share on the expense of its BY LEVINA LIM a substantial stake in the company bought about 32.35 million shares boost to earnings is, perhaps, mild. rivals, particularly Berjaya Sports several months ago. or 4.28% since Nov 17. Currently, Th e new jackpot game was un- Toto Bhd’s (BToto) lotto games. KUALA LUMPUR: Felda Investment The current depressed share Nik Hamdan holds a 47.78% di- veiled on Nov 8, which is the second “Currently BToto is the market Corp Sdn Bhd (FIC) is believed to prices of O&G companies, as a re- rect stake in Barakah and a 3.92% new game introduced within the leader in the jackpot segment with a have bought a substantial equity sult of the meltldown on crude oil indirect interest via United Power number forecast operator indus- 60% market share, which contributes stake of more than 10% in Barakah prices, have prompted FIC to in- Group Holdings Ltd. try this year. up to 20% of its earnings. Partially Off shore Petroleum Bhd last Fri- tensify its search to snap up O&G Barakah made its debut on Bursa Maybank IB Research said the contributed by the novelty factor, day, according to sources familiar assets on the cheap. in November last year through a renew game might boost sales by 2% we expect BToto to concede modest with the matter. Some 85.8 million Th e investment in Barakah would verse takeover of fi nancially stressed at most. It pointed out that Magnum jackpot market share to Magnum,” shares, or an 11.4% equity stake, be a launching pad for FIC to ride on Vastalux Energy Bhd. Its share price has been silent on the prize payout Khoo said in a Nov 10 report. changed hands through off -mar- the growth of the domestic O&G in- had soared since its maiden trading ratio, and thus is unable to make “Aside from [forecasted] lower ket transactions last Friday, with dustry, said sources. Th ose Barakah day as the company was perceived a forecast of the earnings before yield, BToto is less compelling due a total value of RM116.7 million, shares were transacted off -market to be undervalued to the peak of interest, taxes, depreciation and to its venture into other non-core according to Bloomberg data. through direct business transactions RM1.87 in February. Like other O&G amortisation margin for 4D Jack- businesses such has HR Owen plc, FIC was the buyer of those shares in 10 tranches, of which four blocks stocks, it has lost ground in the past pot Gold yet. Atlan Holdings Bhd and REDtone that transacted off -market last Friday changed hands at RM1.36 and the re- three months; the stock price slid While UOB Kay Hian Research International Bhd,” said Khoo. to pave the way for the Felda group to maining six tranches at RM1.37. Bar- to a low of RM1.07 in mid-October, head Vincent Khoo expects “mod- “The game may appear to be invest in the oil and gas (O&G) sec- akah’s share price closed at RM1.35 dampened by the falling crude oil est” top-line contribution from the complicated initially, but punters tor, sources said. It is learnt that FIC last Friday, Bloomberg data shows. prices. Barakah closed unchanged at new game, he noted that it would are very fast learners. I expect punt- approached Barakah’s controlling Last week, Nik Hamdan had RM1.35 last Friday, giving it a market improve Magnum’s margins as ers to [be able to] pick this game up shareholder Nik Hamdan Daud, who been accumulating Barakah shares capitalisation of RM1 billion. Its share “jackpot games typically command in the next two quarters,” a gaming is also the company’s deputy exec- in the open market. Filings with price had gained by 26.2% from the higher profi t margins (mid-teens) analyst, who declined to be named, utive chairman, for the purchase of Bursa Malaysia show that he had low of RM1.07. versus classic 4D (low-teens) due to told Th e Edge Financial Daily. MONDAY NOVEMBER 24, 2014 • THEEDGE FINANCIAL DAILY HOME BUSINESS 7

Bumi AV supplier HIL Industries unveils new device

BY SITI SALWA SHAARI Putra World Trade Centre here yesterday. FY14 results to be a KUALA LUMPUR: After a year of Th e managing director of Reka research and development, a bu- Makmur Sdn Bhd said the com- miputera supplier of audio-visual pany is providing six of the units teachng aids has come up with a to the Umno General Assembly device that combines the functions which begins tomorrow. ‘pleasant surprise’ of television, computer, camera, Th e device — which has an Intel interactive white board, projec- Core i5 processor, runs on Win- tor/screen and loudspeaker in one dows 7 and can be used by fi ve package. people simultaneously — will be Improved 1H net profi t due to downsizing Th e “Smartz Screen” allows the offi cially launched at end-January user to watch television, write on 2015, he said. of loss-making China operations the interactive white board and The anti-glare screen comes have video conference at the same in 55-, 58-, 65-, 70- and 84-inch time, its inventor Noor Azman versions, and has a 4mm-thick Nordin, 47, told Bernama at the tempered glass cover. — Bernama

‘Malaysia to draw RM200b investment with AEC’

TANGKAK: Malaysia is expected AEC, agreed to in 2007, Malaysia will tra-reginal import and export proce- to attract at least RM200 billion or also benefi t from a market of 620 mil- dures, government agencies and the 10% of the total investment in Asean lion people in the Asean countries,” private sector need to improve their countries with the implementation he told reporters after the presenta- competitiveness in order to attract of the Asean Economic Community tion of Quality Environment Practices investors through QE/5S practices. (AEC) blueprint next year, Deputy (QE/5S) certifi cation by the Malay- Twelve organisations took part Minister of International Trade and sian Productivity Corp yesterday. in a QE/5S training programme Industry Datuk Hamim Samuri said. Hamim said with the AEC har- from April to October aimed at re- “With the implementation of the monising and standardising in- ducing wastage. — Bernama 8 HOME BUSINESS MONDAY NOVEMBER 24, 2014 • THEEDGE FINANCIAL DAILY EA Technique eyes upstream O&G business

Diversifi cation to begin after listing on Bursa

BY SULHI AZMAN industry. As at last Friday, Brent pects profit growth to double by futures tumbled to US$79.44 the next financial year, anchored KUALA LUMPUR: Shipping and (RM265.93) per barrel, down by outstanding order book of marine services provider EA Tech- 44.8% from US$115.06 on June 19. long-term contracts, strong uti- nique (M) Bhd, en route to listing Meanwhile, Abdul Hak lisation of assets and new reve- on the Main Market of Bursa Ma- said EA Technique is now decid- nue streams. laysia next month, plans to diver- ing on the right partners to form a For the fi nancial year ended sify its business into upstream oil joint-venture company, in which Dec 31, 2013 (FY13), EA Tech- and gas (O&G) and bid for risk it prefers to hold a majority stake, nique’s net profi t tripled to RM56.9 sharing contracts (RSCs) to de- to bid for RSC projects. million from RM18.91 million from velop marginal oilfi elds, said its EA Technique is one of 42 com- FY12, while revenue grew 18% to managing director Datuk Abdul panies under Johor Corp’s Intra- RM121.12 million from RM102.72 Hak Md Amin. preneur Development Scheme. It million, on strong performance “Our diversifi cation will begin is controlled by Kulim (Malaysia) of port services and minor fab- after listing, tentatively from next Bhd which has a 65.4% indirect Abdul Hak said his rication. year. We will focus on light-weight stake held through Sindora Bhd. company is also On a segmental basis, EA Tech- platform systems as well as Feed Abdul Hak currently owns a 24.6% seeking to bid for risk nique’s marine transportation [front-end engineering design] stake, while his wife Datin Hami- sharing contracts to business contributed 59.3% to services for the development of dah Omar has the remaining 10% develop marginal total revenue, followed by port marginal oilfi elds in Malaysia,” interest. Th ese shareholdings will oilﬁ elds services (37.2%) and minor fab- he told Th e Edge Financial Daily be diluted once the group is listed. Photo by Patrick Goh rication (3.5%). in an interview. It is scheduled to launch its fi nal EA Technique’s main custom- He said one “cannot go wrong listing prospectus today. ers — Petronas Trading Corp Sdn in the energy business”, as it has Abdul Hak said EA Technique isation of RM302.4 million. struction of new ones at our fa- Bhd and Petronas Maritime Ser- a high profi t margin of 30% and previously attempted to get list- EA Technique said 43.9% of the cility in Perak,” he said, adding vices Sdn Bhd — formed the bulk above, compared to the marine ed through a reverse takeover of listing proceeds will be used to pay that EA Technique will only add of its revenue of 63% in FY13. services business with its 15%- a Main-Board company, but the bank borrowings, 42.7% for capi- to its number of vessels when it To limit the group’s reliance 20% profi t margin. EA Technique’s plan was aborted due to “techni- tal expenditure, and 6.7% each for has secured a contract. on a single customer for its busi- pre-tax profi t margin now stands cal issues”. working capital and listing expenses. Th e group’s order book current- nesses, it secured a RM260 million at 18%. According to a circular issued EA Technique currently oper- ly stands at RM1 billion, including contract in July last year to build, On why the group is venturing in June, EA Technique hopes to ates 32 marine vessels, of which optional contract extensions of operate and charter out six units into upstream O&G when global raise RM68.4 million through the it owns 23, with nine chartered some RM297 million, which will of Z-Peller harbour tugboats to oil price is trending down, Abdul issuance of 114 million shares, from external parties. Abdul Hak “keep the group busy until 2025”. Northport (Malaysia) Bhd over a Hak reckoned that “growth is still equivalent to 25.6% of its en- said proceeds from the listing will Th e group is also actively bid- period of 10 years. there, with some margin that can larged, issued and paid-up cap- be used to gradually increase its ding for various projects, worth a EA Technique is currently the be reaped”. ital. The amount is based on the vessels from 23 to 38. combined RM1 billion, which he largest local harbour tugboat op- Th e recent fall in oil price has assumption of 60 sen per share, “It (the increase of vessels) will expects “a positive outcome soon”. erator in the country, providing sparked concerns in the energy translating into a market capital- be through acquisition and con- As for outlook, Abdul Hak ex- services to fi ve ports. Lone Pine to bid for Tanjung Bungah marina park

BY SANGEETHA AMARTHALINGAM “We will submit our proposal but the public has its own way of a seven-storey hotel and low-rise to PDC when the RFP is called, We will submit our thinking. But if my group is not apartments. We later presented GEORGE TOWN: Penang-based as it is a continuity of our RM420 proposal to PDC when chosen by the state government, I it to PDC. Lone Pine Group of Companies million 1 Tanjong luxury condo- the RFP is called, as am willing to let it (my plans) go.” “But in February this year, PDC wants to participate in the devel- minium project,” he told Th e Edge Nevertheless, Lone Pine Group informed us via a letter that an opment of a marina and coastal Financial Daily in an interview. it is a continuity of managed to secure a land title for RFP will be called to develop the park in Tanjung Bungah, Penang To recap, Lone Pine Group had our RM420 million part of the reclaimed area meas- area,” he said. when the state government opens obtained a temporary occupation 1 Tanjong luxury uring 6,072 sq ft fronting its 1 Tan- Ooi estimates that the entire the request for proposal (RFP) licence (TOL) from the previous jong development. development of the marina would process in the middle of next year. state government to reclaim sea condominium project Ooi said the TOL seizure re- cost more than RM5 million be- The Edge Financial Daily on land totalling 14.5 acres in Tan- sulted in a loss of between RM4 cause it would require a new hy- Nov 10 reported Tanjung Bun- jung Bungah and build a marina million and RM5 million for the drography survey to study and gah state assemblyman Teh Yee that would house some 60 boats. group. Th e money was spent on describe the beds of marine and Cheu as saying that Penang De- However, delay in the shipment request to build a public access expert studies, purchase of con- inland water areas, following the velopment Corp (PDC) plans to of sand and rocks had slowed road and a roundabout to the sea, struction materials and logistics. expiration of the previous report. issue a RFP for the development down the reclamation, and only but we were not given the TOL “At present, we have no idea Meanwhile, Ooi said the delay of more than 14.5 acres (5.86ha) 1.5 acres were reclaimed from the again,” he said. what the state government means in the construction of 1 Tanjong by of sea land in Tanjung Bungah sea, including a permitted storage It is understood that strong by its request for an internation- its subsidiary Province Valley Sdn into a marina and coastal park in site for rocks. protests by the Tanjung Bungah al marina. Our initial plan was to Bhd was due to a combination of the middle of next year. Th e sea Ooi said about RM15,000 was Residents’ Association, and public build a marina that could house public protests and alleged stop land includes the 1.5 acres already paid annually to the Penang gov- and political pressure led to the 60 boats. work orders issued by the local reclaimed by Lone Pine Group, ernment then for the 14.5-acre cessation of the TOL in 2008. “In September last year, we authority. which is located adjacent to the land alienated to the group until Recounting its original plan were called by the state to present As a result, the initial RM350 group’s ongoing 1 Tanjong project. 2007, but when Pakatan Rakyat in 1995, Ooi said: “We received our plan for a marina and coastal million gross development val- Lone Pine Group managing di- took over the state in 2008, the all the necessary approvals from park, but was told that it wanted an ue for the two 41-storey blocks rector Datuk Seri Ooi Boon Seng TOL payment was stopped. the state authorities including an international marina instead. I do has ballooned to RM420 million, said the group already has a “mul- “When the new government all-clear from the Department of not know what the diff erence is. he added. timillion ringgit” plan to turn the took over, the payment was dis- Environment telling us there was “So I went to Australia and Sin- Th e 1 Tanjong project, which is sea land there into an interna- continued and the TOL was taken no need for an Environmental gapore to gain an idea of what being marketed as a luxury beach- tional marina, which was once away from us. We did not reclaim Impact Assessment because the an international marina was. I front living concept in Tanjung part of its massive development the sea land illegally,” stressed Ooi. reclamation was less than 50 acres. then drew up a new plan featur- Bungah, is expected to be com- plan in 1995. “We complied with the state’s “I had a vision for Penang, ing the state’s request, as well as pleted in three months.

10 HOME BUSINESS MONDAY NOVEMBER 24, 2014 • THEEDGE FINANCIAL DAILY

Vincent Lee inducted into Kronologi Asia to list on 4A’s Hall of Fame

ACE Market by year-end BY SHALINI KUMAR KUALA LUMPUR: Tan Sri Vincent Lee (pic), the man known as the driv- It already has a presence in the Southeast Asian region ing force behind many high-profi le brands in the market today, has been inducted into the Association of Ac- BY SHALINI KUMAR pand into countries where we credited Advertising Agents of Malay- We would like to move have no presence at all current- sia (4A’s) Hall of Fame in recognition KUALA LUMPUR: Singa- ly, and these are the countries of his eff orts as one of Malaysia’s best pore-based Kronologi Asia Bhd into areas where we we believe will present us with brand builders. aims to be listed on Bursa Malay- have leverage and a reasonable growth opportuni- Lee, who is the honorary life pres- sia’s ACE Market by year-end, said expertise. Organically, ty,” he said. ident of 4A’s, was inducted during the executive chairman and group “The roll-out of managed ser- 2014 Kancil Awards on Nov 14, said chief executive officer Piti Pra- we will continue vices is really the big push. We be- Naga DDB Sdn Bhd, an advertising modtedham. to develop related lieve that is the area that will give and communications agency owned Pramodtedham said the com- services to EDM us a higher than market growth by Lee, in a statement last Friday. pany chose Malaysia for its listing rate. This will start in Singapore, During Lee’s six-year tenure as as he felt the capital market struc- with wave one covering Malaysia president, he oversaw the launch ture held more opportunities for and wave two covering Thailand, of Malaysia’s Most Valuable Brands Kronologi Asia’s future growth. ware and/or equipment compo- Indonesia and the Philippines,” and the Putra Brand Awards, to rec- “We were awarded MSC sta- nents of EDM. he added. ognise brand-building as an integral tus here in May by the Multime- Some of its clients include According to an independ- business investment, said Naga DBB. dia Development Corporation Public Bank Bhd, Bank of Sin- ent market report done by Smith Lee, who had a stint in Star Pub- (MDec). Having that MSC sta- gapore, StarHub Ltd and PTT Pcl. Zander International Sdn Bhd, lications (M) Bhd as its executive tus provides leverage in terms Kronologi Asia is also the stra- the EDM industry in South- deputy chairman, a post which he of being able to gain knowledge tegic marketing partner of US- east Asia has shown a healthy relinquished in April this year, was workers,” he said in an interview based Quantum Corp Ltd in the compound annual growth rate formerly chairman of the Audit Bu- with The Edge Financial Daily Southeast Asian region. (CAGR) of 7.1% over the last five reau of Circulations and a member recently. The company’s initial public years, growing from US$577.9 mil- of the National Branding Task Force Kronologi Asia, established offering will entail an issuance lion in 2009 to US$759.6 million of the Malaysia External Trade De- in 2002, provides electronic data of 59.24 million new shares. Of in 2013. The industry is expected velopment Corporation (Matrade). management services (EDM) to that, 4.74 million shares will be Pramodtedham was not able to disclose to continue to grow at a CAGR of “Some of his achievements during enterprises, be it large corpora- made available to the public, 7.1 the issue price of the shares or the 7.3% from 2014 to 2016. his tenure were the implementation tions and multinationals or small million shares will go to eligible amount of proceeds that will be raised. On diversification outside the of a mandatory pitch fee to elevate and medium enterprises (SMEs). directors and employees, and the Photo by Suhaimi Yusuf EDM sector, Pramodtedham said the Malaysian advertising industry Its EDM services are split into remaining 47.4 million shares it was not likely, as he preferred to a more professional level,” Naga two areas: infrastructure technol- will be placed out to identified the company to focus on its cur- DBB’s statement further read. ogy and managed services. Man- investors. Kronologi Asia already has a rent strengths. “He also recognised the need for aged services involve managing Pramodtedham was not able presence in the Southeast Asian “We would like to move into self-regulation within the industry the backup, storage, recovery and to disclose the issue price of the region and hopes to expand into areas where we have leverage as documented by such efforts as restoration of enterprise data on shares or the amount of proceeds markets such as Vietnam, Sri Lan- and expertise. Organically, we negotiating with the Health Ministry a subscription model. that will be raised. But according ka and Myanmar by offering its in- will continue to develop related to ban the widespread advertising of Infrastructure technology, on to the company’s draft prospectus, frastructure technology services. services to EDM, so similar ser- alcohol,” it said. the other hand, refers to the pro- the bulk of the amount to be raised “For this [infrastructure tech- vices such as archival would be Naga DDB, which has been vision of physical hardware, soft- will be utilised for expansion. nology] business we want to ex- possible,” he said. around for more than 25 years, To Spott the truly sustainable oil palm growers

BY MEENA LAKSHANA It helps palm oil companies be [caused] by an employee we have tations Bhd and Wilmar Internation- more transparent in their business since fi red but there is no avenue al Ltd, have opted to be measured PETALING JAYA: Investors who wor- and operations and aid investors for them [to show] how they have by ZSL’s sustainable tool after being ry about whether their money is and fi nancial institutions in making managed [it],” said Clarke. approached. going into palm oil businesses that bankrolling decisions, ZSL business Th at is why Spott also aims to Each of them gets a score for every are truly sustainable or not may not and biodiversity manager Elizabeth serve as a standardised, central plat- category that is measured, with a spearheads Lee’s other agencies have to worry anymore. Clarke told Th e Edge Financial Daily form where companies can divulge combined score for overall perfor- within Foetus International Sdn Th e Zoological Society of London in an interview last week. information on their sustainable mance. Th is helps identify key areas Bhd, a multifaceted conglomerate (ZSL) has developed a new interac- “Th e main issue at the moment operations. for improvement and measures a that includes Rapp (M) Sdn Bhd, tive online tool that uses satellite with sustainable palm oil is peo- “We put that information in a company’s transparency in disclosing Tribal Worldwide Sdn Bhd, Vizeum mapping technology — with perfor- ple are going, ‘Well, I don’t want to place that is easy to use and online, information, said Horne, adding that Media Services (M) Sdn Bhd, Milk mance assessments — to monitor buy sustainable palm oil because I an interactive resource. If you’re an companies chosen by ZSL are based PR Sdn Bhd, Milk & Co Advertising and provide information on listed can’t see any evidence that it is re- investor looking to invest in a com- on market capitalisation. Sdn Bhd, Beyond Events Sdn Bhd palm oil companies’ best practices ally sustainable as you say’. But we pany, you can go on the tool and He said ZSL has a technical ad- and Soft Space Sdn Bhd, bringing in operations. can actually start to generate that see a certain company’s sustainable visory group which oversees the the total number of employees in Th e tool, titled Sustainable Palm information,” she said. practices. Maybe they did well with toolkit, comprising stakeholders the group to over 500 staff . Oil Transparency Toolkit (Spott), ZSL aims to create a monitoring certain criteria but not so well with that are made up of investors like Lee recently started up Ide- has 48 performance assessment tool that will not only help ensure zero-burning. You can click on that Generation Investment Manage- aRiverRun, a digital venture com- indicators, which are framed as di- sustainability is practised, but also and see why they haven’t done so ment LLP and the Principles for prising enterprises like Trip Sales rect questions to ferret information create a healthier working envi- well,” she added. Responsible Investment, as well as Sdn Bhd, EventHaha Sdn Bhd, from a company on whether it has ronment with palm oil companies. ZSL palm oil transparency man- corporate companies like Unilever. Green Jobs Bay Sdn Bhd, MVP sustainable policies like zero-burn- “We want to make sustainable ager James Horne said the informa- Th e tool will come in handy as Digital Sdn Bhd and Cilisos Me- ing, water management plans, and a palm oil to become the norm and tion collected is updated every three several large corporations are look- dia Sdn Bhd . time-bound commitment to reduce we want to make sure sustainable months. ing at ways to use certifi ed sustaina- IdeaRiverRun was recently in greenhouse gas emissions — and if really means sustainable. Th e 25 largest palm oil compa- ble palm oil in their products. One of the news for providing Digital News so, how comprehensive they are. “Quite a few growers have been nies in the world today, including them is Unilever, the world’s biggest Asia Sdn Bhd, an independent tech- Th e toolkit, launched two weeks linked to a fi re or a negative news local conglomerates Sime Darby consumer of palm oil at 1.5 million nology news portal, with RM1 mil- ago, is based on a set of criteria un- story about deforestation and there Plantation Sdn Bhd, IOI Corp Bhd, tonnes annually, which has already lion in seed funding to grow the derlined by the Roundtable for Sus- may be valid reasons that aren’t New Britain Palm Oil Ltd, Genting pledged to only use traceable sus- latter’s regional expansion, build tainable Palm Oil and various other connected to them, or they may Plantations Bhd, Kuala Lumpur Ke- tainable palm oil in its products its team, and to develop new prod- sustainable policies. say yes, we knew that happened pong Bhd, Kulim Bhd, United Plan- beginning this year. ucts and channels. MONDAY NOVEMBER 24, 2014 • THEEDGE FINANCIAL DAILY INVESTING IDEAS 11

INSIDER ASIA’S STOCK OF THE DAY I-Berhad I-BERHAD’S recently completed fundraising hotel is slated to open in 3Q14 while the RM500 exercise heralds busier times, which will un- million i-Suites will be completed by 2017. derpin growth going forward. I-Berhad is the master planner of i-City, a Th e rights issue raised RM197.5 million while 72-acre freehold land in Section 7, Shah Alam the detachable warrants could raise another – with an estimated GDV of RM7 billion. It also RM96.7 million if fully converted. Two-third has 1.05 acres of land in the vicinity of KLCC. of the monies are allocated for property devel- Dubbed Grand i-Residence, the project com- opment with the balance for a shopping mall prises a 50-storey luxury condominium with joint venture (JV). Th e company also acquired estimated GDV of RM820 million. several pieces of land, worth some RM502.3 Unbilled sales stood at RM400 million with million, partially paid with RCULS and ICULS. RM1.6 billion launches planned by end-2014. To recap, I-Berhad entered into a JV with I-Berhad expect annual sales to more than triple Th ailand’s largest retail developer Central Pat- to RM500-600 million within three years. Once tana PCL last year to develop the RM580 mil- i-City is fully developed, I-Berhad expects to lion CentralPlaza@i-City regional retail mall. derive 50% of earnings from recurring income, Th e mall, to be completed in 2017, has about namely from leisure and property investments, 1 million sq ft of net lettable area. and the balance from development. Elsewhere, it is teaming up with Best West- Th e stock is trading at a trailing 12-month P/E ern International to build a 216-room hotel in of 7.3 times and 0.9 times book value. Dividend i-City and 826 units of serviced apartments, totalled 1.0 sen (adjusted for rights issue) per i-Suite@i-City in Shah Alam. Th e RM50 million share in FY2013, translating into a yield of 1.3%. Valuation factor * 3.00 Fundamental factor ** 2.40 Trailing 12m P/E (x) 7.29 Trailing 12m PEG (x) 0.03 P/NAV (x) 0.92 Trailing 12M Dividend yield (%) 2.71 Market capitalisation (RM mil) 505.12 Shares outstanding (ex-treasury) mil 716.48 Beta 1.01 12-month price range 0.57 - 1.27

*Valuation factor — Composite measure of historical return & valuation **Fundamental factor — Composite measure of balance sheet strength & proﬁ tability Note: A score of 3.0 is the best to have and 0.0 is the worst to have

TONG’S MOMENTUM PORTFOLIO

THE local bourse closed in the red last Fri- day, despite a positive lead from US markets overnight. Th e Dow Jones Industrial Average closed 0.19% higher amid signs of US economic recovery and strong performance from energy shares. The FBM KLCI declined 0.3% to 1,809.1 for the week, registering its third consecu- tive week of losses. The Japanese market also closed lower last week after Prime Minister Shinzo Abe dissolved parliament for snap elections and, hopefully, fresh mandate for reforms. Most regional markets, on the other hand, ended the week on a positive note, in anticipation of more stimulus measures from the Euro- pean Central Bank. My portfolio bucked the broader market downtrend, with returns increasing by 0.16% to RM 103,379.4. The portfolio started on 8 July 2014 with a capital of RM100,000. Since then, it has outperformed the FBM KLCI by 7.8%, and has registered an annualised return of 9.0%. Total profits currently stand at RM 3,379. After disposing most of my stocks last week, I am now only 36.8% invested in two shares, namely Willowglen (+1.3%) and Cre- scendo (unchanged).

14 BROKERS’ CALL MONDAY NOVEMBER 24, 2014 • THEEDGE FINANCIAL DAILY QL Resources maintaining A small contract momentum to kick-start KKB after dry spell QL Resources Bhd (Nov 21, RM3.46) Maintain “outperform” with tar- KKB Engineering Bhd viewed as negative for KKB given get price (TP) of RM3.85: QL Re- (Nov 21, RM1.59) that its organic earnings growth is sources’ results for the fi rst half of Upgrade to “trading buy” with driven by current steel-related op- fi nancial year 2015 ending March unchanged target price (TP) of erations. As such, we view the recent (1HFY15) are on track, meeting RM2.15: Harum Bidang Sdn Bhd, knee-jerk reaction resulting in its 49% of our revenue and 44% of our a subsidiary of KKB, has received share price slump as being over- earnings estimates for FY15. Reve- a supply order worth RM10.1 mil- done. Th us, we reckon the current nue was RM656.5 million (+10.6% lion from CMS Infra Trading Sdn price does not refl ect its fundamen- year-on-year [y-o-y] +0.5% quar- Bhd for the supply and delivery of tal value. Hence, we expect a recov- ter-on-quarter [q-o-q]) and earn- mild steel polyurethane-lined pipes ery in share price in the near term. ings gained RM48.2 million (14.7% and specials for the construction With this contract in the bag, and y-o-y, 19.4% q-o-q). Th e group’s and completion of the proposed hopefully more to come in the next steady performance reaffi rms our water supply project in Miri. Th e 12 months, our earnings numbers “outperform” recommendation on contract will be for a period of four for KKB should be intact. We retain QL with a TP of RM3.85 derived months eff ective November 2014 our earnings forecast at this junc- from our sum-of-parts approach. until March 2015. ture, as this contract is part of our We believe the group’s 2H results We are positive on the contract contract replenishment assumption will improve further, driven by in- as the group has at least replenished for KKB in our earnings projection. creasing contributions from its aq- its steel pipe backlog after a dry KKB has a strong proxy to uaculture operations. spell for the past 12 months. Th e steel-related works in the robust Management continues to be op- end-calendar year 2014 (CY14). We traded and higher sales contribu- award is also within our expecta- Sarawak region development (Sar- timistic that 2HFY15 will perform believe the group has also secured tion from poultry operations. Earn- tions as KKB has a strategic alliance awak corridor of renewable energy). owing to: (i) recovery in regional a 25% higher selling price which ings improved from higher farming with Cahaya Mata Sarawak Bhd. We upgrade our call on KKB to farm produce prices; (ii) better fi sh- will boost earnings going forward margins in both its Malaysia and Should oil and gas fabrication “trading buy” from “neutral” with meal prices; (iii) festivity eff ect and as production increases. Vietnam operations, albeit being projects in Sabah and Sarawak be an unchanged TP of RM2.15. — traditionally the next two quarters Revenue increased 20.2% y-o-y dragged down by lower fi rst quar- delayed, we opine it should not be MIDF Research, Nov 21 are higher performing. from higher fresh fruit bunch (FFB) ter Sabah and Sarawak and regional We see QL’s ongoing growth strat- processed and increasing FFB out- poultry operations. egies coupled with reputable brand- put from its Indonesia oil palm op- QL’s growth will be supported by: ing continuing to uplift its perfor- erations of about 8,000 tonnes per (i) ongoing marine products manu- mance. Sales grew 14.4% y-o-y due month of FFB. Higher contributions facturing capacity expansion materi- to higher contribution from surimi from associate Boilermech further- alising and extending to aquaculture (fi sh paste) based production and more lifted earnings despite QL’s projects which would see higher con- Indonesia’s fi shery operations. New Indonesian operations still incur- tributions from 2HFY15; (ii) integrat- contributions from shrimp farming ring marginal losses from its new ed livestock farming — expansion of (aquaculture) coupled with better plantings. We are positive on the existing poultry farms in Malaysia, fi sh catch off the east coast of Pen- performance of palm oil activities as Indonesia and Vietnam (450,000 to insular Malaysia further enhanced the losses from Indonesia’s oil palm 750,000 egg prododuction per day earnings. Th e group has begun ex- should not weigh down the division as well as building feedmill capacity porting its shrimp products to South going forward as more plantings in Indonesia; and (iii) higher FFB of Korea, Japan and China and targets mature. at least 100,000 tonnes per year ex- to produce about 600 tonnes per year Cumulative sales rose 7% from pected to be processed in FY15F. — — 700 tonnes per year of shrimp by higher volume of feed raw materials PublicInvest Research, Nov 21

SapuraKencana expands drilling division to Sabah and Vietnam

SapuraKencana Petroleum Bhd lent per day (kboepd) from 23kbpoed (Nov 21, RM3.11) from Newfi eld Malaysia’s assets. Maintain “buy” with lower target We are keeping our earnings per price (TP) of RM5.13: SapuraKen- share (EPS) forecast for fi nancial year cana has expanded its drilling divi- 2015 ending this January (FY15) and sion after acquiring three production FY16 at the moment as the Vietnam sharing contract (PSC) blocks (46- transaction is expected to be complet- CN, 10-11.1 and 01/97 & 02/97) in ed next year with earnings pouring Vietnam from Petroliam Nasional in after that. Despite the slump in Bhd (Petronas) for US$400 million share price recently, SapuraKenca- (RM1.34 billion). Of the three blocks, na’s fundamentals remain strong and 46-CN and 01/97 & 02/97 are already are backed by a huge order book of producing oil and gas and will con- RM26.1 billion with extension options tribute to earnings and cash fl ow. worth RM19.1 billion. Th e company was also awarded We reiterate our “buy” call at a a 27-year PSC by Petronas for two TP of RM5.13 (previously RM6.03) blocks (SB331 and SB332) onshore as we remove the valuation premi- Sabah, covering 31,000 sq km or 42% um over the industry price-earnings of Sabah’s land area. Th is comes after ratio (PER) following the lower oil the acquisition of Newfi eld Malaysia price. Our target price is based on early last year, which kick-started its FY16 EPS forecast of 25.7 sen and drilling business. Th e Vietnam blocks lower industry PER of 20 times. We will lift SapuraKencana’s production continue to favour the stock. — JF to almost 35,000 barrels of oil equiva- Apex Research, Nov 21 MONDAY NOVEMBER 24, 2014 • THEEDGE FINANCIAL DAILY BROKERS’ CALL 15

Eco World’s earnings Pos Malaysia’s will improve in FY15

Eco World Development posed intial public off ering of Eco Group Bhd World International as a special 1HFY15 below (Nov 21, RM4.33) purpose acquisition company to Maintain “buy” with an un- develop property projects over- changed target price (TP) of RM6: seas. This will be completed by Th e fourth quarter of fi nancial year the second half of calendar year 2014 (4QFY14) earnings missed 2015 (2HCY15). expectations expectation at RM0.8 million, ECW will invest RM562 mil- dragged down by high marketing lion for the 30% stake, allowing costs for its new projects in Kota the group to venture overseas with Masai in Johor. However, earnings minimal leverage. Pos Malaysia Bhd will improve signifi cantly in FY15 We nudged down FY15 forecast (Nov 21, RM4.89) upon completion of the massive earnings by 25%, after factoring in Maintain “underperform” with a corporate exercise next quarter the delayed completion of the cor- lower target price (TP) of RM4.44: (extraordinary general meeting porate exercise (initially expected Th e fi rst half of fi nancial year 2015 by mid-Dec 14). to be completed by end-CY14). (1HFY15) net profi t of RM61 mil- The corporate exercise to in- We are retaining our RM6 TP, lion (-27% year-on-year [y-o-y]) crease its land bank to 4,400 acres which is based on a 20% discount came in below expectations, at (1,780ha) [RM43.5 billion gross to our revised net asset value (pre- 37% our and consensus full-year development value] will be a sig- share split). forecasts. Th e negative variance nifi cant milestone for the group. We continue to like ECW for from our forecast is due to high- It will provide clear earnings vis- the proven and impeccable track er-than-expected operating cost. ibility and the group will have a record of its key senior executives, No dividend was declared during larger balance sheet to undertake which has helped the developer to the quarter. more projects. establish strong branding among Quarter-on-quarter (q-o-q), Eco World Sdn Bhd (ECW) is tar- property buyers. second quarter of FY15 (2QFY15) geting RM5 billion property sales Risks are relatively weaker prop- revenue rose only 0.8% driven by over FY14 to FY15 forecast, which erty sentiment and tighter bank courier (+5%) and retail (+49%), is unprecedented for a new devel- landing. which more than off set lower mail oper. It has already achieved RM3 Th e surge in property prices over (-12%). Overall revenue came in billion property sales year-to-date- the last few years, coupled with fl at due to lower contribution from Bhd, a wholly-owned subsidiary of Oct 14. Its strong branding power recent tightening measures, could prepaid and franking segments, DRB-Hicom Bhd and Pos Malay- will continue to command market weaken property sales as property which accounted for approximate- sia, to provide an effi cient logistic confi dence; this is evident at its buyers turn more cautious. ly two-thirds of the total mail vol- management service. latest launch of Merrydale (terrace Stricter lending guidelines by ume. However, the slack in mail was Th e group is also strengthening houses, more than RM680,000/ banks due to rising housing debt more than off set by retail, thanks its retail segment, making it a one- unit) at EcoMajestic@Semenyih. could lead to softer sales. — Alli- to higher contribution from fi nan- stop solution centre, especially with ECW will participate in the pro- anceDBS Research, Nov 21 cial services, especially revenue the growth of its Islamic pawnbro- from the 11.1% growth in insurance king (Ar-Rahnu) business. Looking commissions, and boosted by the ahead, Pos Malaysia is staying on recognition of expired postal orders course to implementing and de- amounting to RM25.5 million. Th is livering its fi ve-year strategic plan brings 2QFY15 net profi t to RM- initiated in 2012. Currently into its 34million (+25% q-o-q). second phase, the plan is to create Y-o-y, 1HFY15 operating ex- an effi cient and eff ective founda- penses rose 21% y-o-y primari- tion that will provide the strength ly due to staff and transportation and stability to support revenue costs. Th e higher staff cost was due diversifi cation, in line with the best to strengthening of growth seg- practices of other successful postal ments such as PosLaju and over- organisations. the-counter fi nancial services at We are downgrading our FY15 post offi ces. Th e higher transporta- and FY16 estimate net profi ts by tion cost was due to higher expens- 7% and 3%, respectively, taking es relating to cross-border postal into account the higher operating charges arising from the growth costs. Correspondingly, our TP is in trans-shipment business which reduced from RM4.61 to RM4.44 Pos Malaysia only embarked upon based on unchanged 15 times cal- in the latter half of FY14 and an in- Pos Malaysia is looking to grow endar year 15 revised earnings crease in air freight charges relat- its profitable courier and logis- per share of 29.6 sen. Maintain ing to Universal Service Obligation tics segment by leveraging on its “underperform”. The risk is de- under Th e Postal Services Act 2012. wide PosLaju network, as well as lays in execution of its business Th is brings 1HFY15 net profi t lower extracting further synergies from transformation plan. — Kenanga by 27% to RM61 million. Kuala Lumpur Airport Services Sdn Research, Nov 21 16 HOME MONDAY NOVEMBER 24, 2014 • THEEDGE FINANCIAL DAILY Najib: Give young people a chance

Allow them into Umno leadership to successfully rejuvenate the party

KUALA LUMPUR: Young people port us. Previously, there were bility with that of the opposition. should be given the opportunity many university students who did Th erefore, he said, Umno should to be in the Umno leadership for a not support us, but now more are be wise and creative in understand- successful rejuvenation process of supporting us after we’ve worked ing the new political landscape and the party, Umno president Datuk harder on engaging with young in using the social media platform Seri Najib Razak said yesterday. people. to engage with society and answer He said they should be given “We want to continue to be in the questions posed to the party. guidance to lead so that Umno is power, so we must rejuvenate the “Th e opposition is full of non- seen as inclusive, modern, pro- party and look for capable leaders sense, a lot of sham and they are gressive and dynamic. to lead,” he said in his speech when very good at spinning. But we “Not all [young people] don’t opening the Federal Territories (Umno) are a party with a real- support us; in fact many do sup- Umno Convention at the Putra istic agenda for the country, the World Trade Centre. Malays and Islam. Najib addressing the the Federal Th e prime minister said the peo- “So, in this openness, in this Territories Umno Convention at the ple are smarter now in evaluating the new environment, Umno has to Putra World Trade Centre yesterday. level of leadership of a political party be the champion,” Najib said. — Photo by Bernama and always compare Umno’s capa- Bernama

DAP says PM must deal with Win-win solution needed to ‘unﬁ nished business’ in Parliament garner Chinese support, says PM KUALA LUMPUR: DAP parliamentary leader Lim Kit Siang has called on Prime Minister Datuk Seri Najib Razak to present three pieces of “unfi nished business” to Parliament before the current KUALA LUMPUR: In order to win fi culties when the general elections non-Malay voters.” Najib said if Ba- sitting adjourns on Th ursday. Th e three are the long-delayed Royal support from the Chinese voters, are upon us.” risan Nasional members quibble and Commission of Inquiry (RCI) report on illegal immigrants in Sa- Umno has to fi nd a win-win solu- Najib pointed out that Umno lead- bicker over two or three seats until bah, the White Paper on terror group Islamic State of Iraq and Syria tion, not make confl icting statements ers had also sought allocations for support from the Indian and Chinese (Isis) and the controversial 1Malaysia Development Bhd (1MDB). like abolishing vernacular schools, Chinese vernacular schools in their voters is jeopardised, it would have Referring to the RCI report, Lim said failure to table the report Datuk Seri Najib Razak said yester constituencies. “Th ere are certain ar- an adverse eff ect elsewhere. in Parliament by this week would denote a lack of political will to day. In an interview with Mingguan eas where the Malay majority is only Asked whether BN component resolve the long-standing problem and that the setting up of the Malaysia, the prime minister said 53%,” he said, adding that non-Malay parties depend on Umno’s strength, RCI was just a ruse to secure votes for Barisan Nasional in last Chinese support had not reached support is vital for Barisan Nasional. Najib agreed but pointed out that year’s general election. the desired levels and there is still “If a Barisan Nasional candidate Umno also depends on the support Electoral reform group Bersih 2.0 has given Putrajaya an ulti- work to be done. does not gain any support from the of the non-Malay community. matum to table the report by today, failing which it would seek a “If there are calls for Chinese 47% non-Malay voters in his con- “Take Pengkalan Kubor for in- meeting with the prime minister. vernacular schools to be abolished, stituency, he will not be able to win. stance, the Siamese community there Th e RCI on illegal immigrants in Sabah was held last year to and at the same time we are trying “Th is is the political reality which supported us, hence our majority probe claims that migrants were given citizenship in exchange for to increase support from the Chi- we all have to accept,” he told the increased. If we did not have a good votes for BN, the ruling coalition. nese community, this is a confl icting weekly edition of Utusan Malaysia, an relationship with the Siamese com- Lim also called on Najib to table a White Paper on Isis, follow- situation. It is simply not possible to Umno mouthpiece. We have an un- munity, it would have an eff ect on ing a written reply from Home Minister Datuk Seri Ahmad Zahid gain support from the Chinese com- derstanding with all the BN compo- the polls. If the Siamese community Hamidi that a White Paper on Malaysians involved in terrorist ac- munity if we are also seeking to close nent parties,” Najib said when asked decided to support PAS instead of tivities was being prepared. He said the White Paper had acquired Chinese vernacular schools in the about a proposal that Umno contest Umno, PAS would win,” Najib said. greater urgency because of recent developments, which include same breath,” said Najib. “We must in Malay-majority areas, and MCA On Oct 5, Umno Petaling Jaya Ut- Malaysia being placed among the top 50 countries in the Global decide what it is we want. In an open and Gerakan in Chinese-majority ara division deputy head Mohamad Terrorism Index 2014 and the latest arrest of a man and two wom- democratic system, we need overall areas. “Whatever decision or consen- Azli Mohemed Saad called on party en by the police for alleged involvement in Isis. support if Barisan Nasional is to form sus that is reached in BN, we will hold delegates at this week’s Umno general Th e Gelang Patah MP also wants Najib to issue a ministerial the government.” discussions to fi nd a solution which assembly to debate whether to abol- statement on the scandal-ridden 1MDB to prove that he is not Najib said if certain actions caused is amicable to all parties.” ish or preserve Malaysia’s vernacular trying to shutter public queries and parliamentary debates on the support for Umno and Barisan Na- He said if all the parties cannot primary school system. fi nancial health of the sovereign fund. sional to fall, then obviously it was cooperate and come to a common This caused a backlash among “In fact, Najib should give a public undertaking that his threat the wrong move and not benefi cial consensus, it would have an eff ect education groups and Umno’s own of a lawsuit against Tony Pua will not be used to shut down any to the coalition. on other areas. “We must look at the partners in Barisan Nasional — MCA, public questioning of any aspect of 1MDB deals,” he said, referring “Westerners says lose-lose, but bigger picture and not just one or two Gerakan and MIC — which claimed to Najib’s letter of demand to the Petaling Jaya Utara MP Tony Pua we want win-win. If we adopt a lose- or three constituencies. Seats contest- to represent the Chinese and Indian for his alleged “defamatory” remarks against the prime minister lose strategy, we will face a lot of dif- ed by Umno also need support from communities. — Bernama over 1MDB. — Th e Malaysian Insider

‘KL Malays face economic challenges’

KUALA LUMPUR: The econom- ry Umno Convention launched by percentage of poor people in the city. to be faced by the Malays in Kuala ic divide between the Malays and Umno president Datuk Seri Najib Tengku Adnan, the federal terri- Lumpur, coupled [with] the high non-Malays in Kuala Lumpur pos- Razak yesterday. tories minister, said home owner- cost of living, which has seen many es a big challenge for the former, Tengku Adnan said about 200 ship statistics also show the Malays of them ending up in the streets.” said Federal Territory Umno liaison years ago, the Malays owned almost are lagging behind other races. Tengku Adnan, the Umno secre- chairman Datuk Seri Tengku Adnan 100% of land in Kuala Lumpur, add- “Just imagine, the lowest price of tary-general, said Umno members Tengku Mansor. ing that now it has dwindled to only a house in the capital is RM300,000, in the Federal Territory are playing He said statistics show the Malays 21.7%. Th is, he noted, was due to while the aff ordability level of Malays a role to help and ensure that the are far behind other races in terms the attitude of the Malays who had in the city is only below RM150,000. economic divide and all the hard- of ownership rights and businesses either mortgaged or sold their land “Th e statistics of individuals who ships faced by the Malays in the city in the capital. to other races. apply to rent or purchase houses can be resolved. “The question is, who do we Besides that, the Malays in Kuala from the Kuala Lumpur City Hall He said the Federal Territory blame? When licences are issued, Lumpur earned an average income (DBKL) are more than 42,000, of Umno did not want to see anyone Ku Nan: The question is, who do we they are mortgaged or sold,” he said of between RM2,000 and RM3,000 which 90% is from the Malay com- from the Malay race living on the blame? in his speach at the Federal Territo- per month and contributed to the munity. Th is is the reality which has streets and as destitutes. — Bernama

18 HOME MONDAY NOVEMBER 24, 2014 • THEEDGE FINANCIAL DAILY

Politicians are the ones causing Why charge GST on tension among Malaysians, maintenance fees? says Mujahid BY LOOI SUE-CHERN

GEORGE TOWN: Racial and Condo bodies ask as they come together religious tension and dishar- mony among Malaysians of different backgrounds are caused BY JENNIFER GOMEZ by politicians who are out to maintain their grassroot sup- KUALA LUMPUR: More than 15 MC port or for other gains, a PAS management corporation (MC) representatives lawmaker said. heads, representing more than yesterday Parit Buntar MP Datuk Dr 30,000 residents living in apart- denouncing Mujahid Yusof Rawa said the ments and condominiums in the Putrajaya’s move political scene in Malaysia is Klang Valley, came together yester- to impose the largely shaped by communal day against the implementation of GST on monthly politics; and for politicians to the 6% goods and services tax (GST) management be at the centre of attention, on their monthly management and and maintenance the best way is by inciting ra- maintenance fees next year. fees. Photo by cial discord. Saying that it penalises them Zhafri Azmi/ “This nation was built on over landed property owners, the The Malaysian diversity from the very first group also said there was a lack of Insider day. It is wrong to assume that thought that went into the plan to our past leaders did not think charge GST on MCs that collected ahead about what we are fac- more than RM500,000 annually as ing today. the ruling did not specify the den- “When they laid the founda- sity of the strata projects. that on average, about 20% to 30% um chairman Lim Kah Pin said that Th e letter dated Oct 29 also mention of this nation, they knew Seputeh MP Teresa Kok, who at- avoided paying maintenance fees. residential MCs were non-profi t tioned that GST would only be ex- that the country will be a diverse, tended the press conference at the “So who is going to pay for their organisations and had no com- empt for low-cost and low-medi- multiracial society. Th is is refl ect- Kuchai Brem Park condo communi- GST portion when they default?” mercial activity. um-cost apartments. ed in our Federal Constitution. ty hall in Kuala Lumpur yesterday, she asked. He added that their statutory In a following letter dated Nov 17 “So how did it turn out to called on the relevant agencies to MC chairman for the Kuchai duty under the Strata Titles Act was pursuant to the appeal by the Brem be a diff erent Malaysia today? clarify the grey areas. Brem Park 2 condo project, Ray- to collect maintenance fees from Park residents, the Finance Minis- Th ose to be blamed are politi- She said many low-medium-cost mond Lee, said Malaysia was not residents for the upkeep of facilities, try wrote that the principle of GST cians,” he said at last night’s Ne- apartment MCs would be collect- ready to follow in the footsteps of such as housekeeping, landscaping, did not diff erentiate whether the garaku roadshow titled “Kem- ing more than RM500,000 in yearly Singapore in charging its condo security services, lifts, CCTVs, and activity was for profi t or otherwise, balikan Negara” in Komtar, maintenance because of the higher dwellers GST as the latter was a electrical and mechanical services, asserting that even activities con- Penang. number of units. high-income nation. among others. ducted by non-profi t organisations Mujahid and other speakers A resident of Brem Park 2, C W Lee said the Malaysian govern- “Unlike commercial MCs, we were subject to GST regulations. at the roadshow — Negaraku Tay, said this would also mean that ment probably had the wrong im- are non-business-related. Th e letter also mentioned that steering committee chairman those who lived in high-end condo pression that all those who lived “Residents paying their main- the Goods and Services Act 2014 Zaid Kamaruddin and Aliran projects with limited units would in condos and apartments in this tenance charge is akin to family stated that the services of an MC committee member Dr Prema escape the GST as their mainte- country were rich. members contributing monthly and Joint Management Body (JMB) Devaraj — were discussing the nance fees collection per year could He said he was a retiree who expenses for household expens- were classified as conducting a present state of Malaysia, where be less than RM500,000. As such, bought his unit in Brem Park for es, such as food, utility bills and business, adding that, as such, both interracial relations were increas- he called on Putrajaya to explain RM82,000 in 1988, adding that the other family-related expenses,” entities were deemed to be doing ingly put to the test, and how to how it classifi ed strata projects into unit was now worth RM350,000. Lim added. business although they were pri- put an end to all the negativities. low-cost, low-medium and high- “I am a retiree and not an orang Th e press conference was held marily to serve residents. Mujahid said the country end categories. kaya (rich person). But given the se- following a notice from the Finance Th e ministry also noted that un- was much dictated by politi- Christy Loh, MC secretary for Aba- curity situation in Malaysia, many of Ministry to the Kuchai Brem Park der GST, there was no diff erentia- cians because the people have di Indah Apartment in Taman Desa, us choose to live in condos where residents informing them that GST tion between an MC and JMB of largely remained silent, failing asked who would make up for the there are security facilities, but don’t would be imposed on MCs col- a residential condominium and to raise their voice against ex- shortfall from defaulters who did not get the wrong idea that we are rich.” lecting more than RM500,000 in a commercial one. — Th e Malay- tremism and those who incite pay their maintenance fees, adding Kuchai Brem Park 1 condomini- maintenance fees. sian Insider hatred among the people. “Th ere is a rise in extremism and this is something we cannot stop. Th ere is extremism in all parts of the world, in every ‘Tilting’ LRT beam causes online buzz race and faith. We have to stand together and fi ght against extremism, regardless of where BY LEE SHI-IAN an “anomaly” on the gantry crane. it comes from,” he said. “A decision was made to bring Mujahid said his stand on the KUALA LUMPUR: Social media One of the the gantry crane down in the in- Allah issue was that it should be was abuzz yesterday after a pho- beams in the LRT terest of public safety and traffi c resolved through dialogue. On tograph of a “tilting” light rail extension project was diverted to make way for the the remark by Perkasa pres- transit (LRT) beam along the Fed- in Subang Jaya process.” ident Datuk Ibrahim Ali to eral Highway near Subang Jaya ‘tilted’ yesterday, Traffi c resumed at about 8pm. burn Malay-language Bibles went viral. prompting a Meanwhile, Mass Rapid Transit containing the word Allah, he A police spokesman told The traﬃ c diversion. Corp Sdn Bhd (MRT Corp) issued a said he had disagreed with the Malaysian Insider that the inci- Photo by Aﬁ f statement yesterday to clarify that explanation that the former dent occurred on Saturday after- Abd Halim/ the incident had been mistakenly was defending Islam. “In Par- noon, which prompted traffi c di- The Malaysian linked to the Sungai Buloh-Kajang liament, I said it humiliated Is- version. “Th e contractor contacted Insider (SBK) line of the Klang Valley mass lam, a religion that never taught the highway authorities and police rapid transit (MRT) project. its followers to burn the holy to assist in diverting traffi c while “The SBK line does not pass scriptures of other faiths. I chal- works were being carried out,” the through Subang Jaya or the Fed- lenged MPs who disagreed with spokesman said. and normal traffic flow resumed Malaysia Bhd also sent its safety eral Highway. me to stand up in the House. Speaking on condition of an- later at night.” patrol unit to assist with the traf- “Th erefore, the incident is in no Nobody did,” he said. onymity, the spokesman said no During the traffi c diversion, part fi c diversion. way associated with the SBK line Mujahid said Malaysians untoward incidents were report- of the Federal Highway from Kuala A spokesman said the contrac- or the MRT project,” MRT Corp should focus less on their ra- ed as traffic heading to Klang had Lumpur to Klang was closed by the tors were conducting preparatory said, adding everyone should be cial identities and start respect- been diverted. “The contractor highway authorities. works for the lifting of the segmen- responsible in spreading news. — ing their fellow citizens as hu- carried out the necessary works, It is understood that Prasarana tal box girders when they noticed Th e Malaysian Insider mans.— Th e Malaysian Insider MONDAY NOVEMBER 24, 2014 • THEEDGE FINANCIAL DAILY HOME BUSINESS 19

WEEK IN FOCUS

At AirAsia Bhd’s groundbreaking 1 of its new offi ce building in klia2, Sepang, on Nov 14. From fi fth left: AirAsia X Bhd chief executive offi cer (CEO) Azran Osman Rani, AirAsia Bhd CEO Aireen Omar, non-independent and non-executive director Datuk Aziz Bakar, group CEO Tan Sri Tony Fernan- dez, executive chairman Datuk Kamaruddin Merantun, non-executive director Datuk Fam Lee Ee. Photo by Kenny Yap

At the launch of AmBank 2Group chairman Tan Sri Azman Hashim’s biography Th e Entrepre- neur Banker in Kuala Lumpur on Nov 17. From left: Azman’s wife Tunku Arishah Tunku Maamor, Azman, and the book’s author Datuk Dr Paddy Bowie.

IJM Land Bhd’s Th e Light Water- 3front Penang was accorded “win- WIDER REACH... Government-linked private equity ﬁ rm Ekuiti Nasional Bhd (Ekuinas) will distribute RM500 million from its gains to the wider bumiputera community ner” in the 2014 Fiabci Malaysia through the various unit trust schemes via Yayasan Pelaburan Bumiputera and Permodalan Nasional Bhd (PNB). At the unveiling of Ekuinas’ gains distribution at Parliament Property Awards ceremony in building on Nov 19. From left: Deputy Prime Minister Tan Sri Muhyiddin Yassin, Ekuinas chairman Raja Tan Sri Arshad Raja Tun Uda, Prime Minister Datuk Seri Najib Razak, PNB Petaling Jaya on Nov 7. Sixth from president Tan Sri Hamad Kama Piah Che Othman and Finance Minister Datuk Seri Ahmad Husni Mohamad Hanadzlah. left: Its northern region senior general manager Datuk Toh Chin Leong, chief executive offi cer and managing director Datuk Soam Heng Choon (seventh from left) and chief operating offi cer Ed- ward Chong (eighth from left) together with their team.

Kenanga Investment Bank con- 4cluded its KenTrade Trading Challenge in Kuala Lumpur on Nov 14, initiated by its online trading portal KenTrade, sponsored by Volkswagen Group Malaysia Sdn Bhd and supported by Bursa Malaysia Bhd. From left: Its executive director and head of equity broking Lee Kok Khee, Bursa director of securities market Ong Li Lee, winner of the Face-Off 1 2 Challenge See Kwan Chian, K&N Kenanga Holdings Bhd group managing director Chay Wai Le- ong, Volkswagen public relations manager Alice Wong and senior marketing manager Isabela Pascu.

Th e signing of a memorandum 5of agreement between MYTV Broadcasting Sdn Bhd and Tel- ekom Malaysia Bhd held on Nov 18 in Kuala Lumpur, with MYTV’s group chief executive offi cer Nik Abdul Aziz Nik Yaa- cob (left) seen here exchanging the document with Telekom’s vice-president Wan Ahmad Wan Halim, witnessed by Minister of 3 4 Communication and Multime- dia Datuk Seri Ahmad Shabery Cheek (second left) and Telekom chairman Datuk Seri Dr Halim Shafi e. Photo by Partick Goh

From left: Hartung:Consult general 6manager Joerg Heil, Astrums Con- sulting Sdn Bhd president Dr Ow- win Hartung, managing director (MD) Sreenivas Kurup, vice-president Santhirapalan V Selvadurai and Hartung MD Jorg Kaschytaza at the opening of Astrums’ regional hub in Kuala Lumpur on Nov 18. Astrums is an MSC-status end-to- end information, communications and technology support service 5 6 company. Photo by Partick Goh 20 FOCUS MONDAY NOVEMBER 24, 2014 • THEEDGE FINANCIAL DAILY MO

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to b freq A sniper in a ma cha gea perfectly tailored suit shi nea eith lim rea Th e BMW M4 is a German Daniel Craig — lethally ler A effi cient and aggressively handsome Do for He BY HANNAH ELLIOTT the sound-enhancing tunnels all to yourself. des It had a lot to live up to. Th is is the vehicle Ho that replaces the well-loved M3 Coupe — BMW Fau now makes the M3 only in four-door form — in the brand’s esteemed M performance line. 02 sio MW has had the same tagline for Th ese are the best cars BMW makes, period. Ch 50 years: “The Ultimate Driving Th e M4 is no exception. Under city and 01. The 2015 BMW M4 Coupe is hea Machine.” It’s a relative term, and highway conditions, it performed with sniper aggressively handsome with mo for good reason. Just ask Ludwig precision and prize-fi ghting aggression. And a huge ego and the muscle to An Willisch. despite its annoying stop-start function and a back it up. But its newly effi cient US “Whereas 10 years ago people whiff of turbo lag, it proved its worth. turbo-charged V6 engine refl ects Bwould not think of sustainability in conjunc- Th is year’s M4 comes with BMW’s classic modern buyers’ demand for both tion with BMW, today they do,” Willisch, who 3-litre inline-6 engine, but this one has been high performance and effi ciency. is the president of BMW United States, told boosted by twin turbochargers that push it me last week at the Los Angeles Auto Show. to 425 horsepower and 409 pound-feet of 02. This year’s M4 comes with BMW’s A “Today it’s more about changing what the torque. Th at is impressive considering that classic 3-litre inline-6 engine, but perception of what the ultimate driving ma- the preceding M3 Coupe had a 4-litre V8 this one has been boosted by twin chine needs to be, because Generation Y has that also got 425 horsepower, but reached turbochargers that push it to 425 a diff erent attitude toward that than the baby only 295 pound-feet of torque and was way horsepower and 409 pound-feet of boomers had.” less effi cient. torque. Th e way he sees it, BMW must continually In fact, the M4 has managed to avoid the work to understand this modern balance be- gas-guzzler taxes that add on thousands of 03. Inside, the car has a host of tween athleticism and asceticism. Or die trying. dollars to thirsty cars, thanks to its 17 city/26 upgrades like rear-view cameras, Th e concept appears no more clearly than highway fuel effi ciency. Th e engine had a lot to heads-up display, adaptive LED in the 2015 BMW M4 I drove two weeks ago do with the improvement, as did weight-sav- lighting, active drive-assist, and around New York. Th e coupe is aggressively ing measures like the carbon-fi bre reinforced GoPro camera integration. Plus, it handsome with a huge ego and the muscle to plastic that comprises the rooftop and the has a dozen options for the colour back it up. But its newly effi cient turbo-charged 24lbs (11kg) lighter transmission. All told, of the leather and trim. V6 engine refl ects modern buyers’ demand the M4 is 180lbs lighter than the M3 Coupe. 03 for something that driving machines decades Th ere is a particular feel to the engine. I ago didn’t have to provide: high-performing have read other reviews of the M4 that claim power upgrade in the engine, it has a tightened height, and the dash is satisfying, with unclut- effi ciency. it performs like a fi nely tuned weapon. Th is suspension, variable stability control settings tered superfl uous buttons. 0 Even better, it has that alluring gravitas in- car performs supremely, but it’s incorrect to and three diff erent steering modes (comfort, It also has a host of upgrades (rear camera, herent in most cars of the marque. If Daniel say that there’s not even the faintest hint of sport and sport plus) that allow input from heads-up display, adaptive LED lighting, ac- Craig were German, he’d be the M4 — un- hesitation when you accelerate quickly. Try the car to be adjusted based on the driving tive drive-assist, GoPro camera integration). smiling, businesslike, and fi t to perfection punching the gas around a curve or on the conditions and a driver’s own preference. Plus, it has a dozen options for the colour of in a tailored dark suit. Deliberately reserved, hill passing over a bridge. You can feel the Two words about the suspension: It’s stiff . the leather and trim inside. Not to mention this car is lethally effi cient. diff erence in engine type. Not as horrible over cobblestones and pot- the M Performance catalogue of options like Most modern sports cars seem to smile, Th e other side of the effi ciency story with holes as, say, a Ferrari F12. But it’s not going a front-splitter, matching side skirts and a rear snarl, and/or seduce when they approach. Th is this car is the fuel-saving start-stop function to coddle you, either. Don’t buy this as some spoiler made of carbon. You can’t bespoke does none of that. It’s a machine you see only that deadens the car when it comes to a stand- sort of compact cruiser. It’s not. this car, but the personalisation potential is when it wants you to. And by then it’s too late. still. It helps improve effi ciency by double dig- The M4 has the same kidney grills and satisfactory. I drove the US$64,200 (RM215,712) M4 its. But for me, it gets in the way of enjoying punchy nose as its brethren; its body lines Get the 16-speaker Harman Kardon pre- at the peak of autumn. First I took it with the car. I just don’t like the feel of it dying on draw the eye cleanly, swiftly, from the front mium sound system, carbon ceramic Brembo friends to brunches, and then whipped it me at every light. to the rear. Th e hood has subtle ridges down brakes and moonroof. Pair them with the 19- alone around the southern tip of the island BMW has done much to allow the M4 plenty the front. Inside the M4 comes with a rear inch black alloy fi ve-spoke wheels. It’ll look 0 where, late at night, you have the highway and of room to run on the track. In addition to the seat conducive to two adult males of average killer. — Bloomberg MONDAY NOVEMBER 24, 2014 • THEEDGE FINANCIAL DAILY FOCUS 21

Challenger Hellcat screams Detroit metal

BY JASON HARPER The 2015 Dodge Challenger SRT Hellcat at a glance

I POP the clutch and slam the gas. Th e rear Engine: of the Dodge Challenger Hellcat skews side- 6.2-litre supercharged V-8 with 707 ways, Pirelli tyres battling for grip and losing horsepower and 650 pound-feet of torque. the good fi ght. Th ick curlicue coils of tyre Transmission: smoke erupt under the rear wheels. Six-speed manual. 01 And yet the Dodge muscle car is only crab- Speed: bing forward, rear tyres spinning so furiously 0 to 60mph in 2.9 seconds. 01. The 2015 Dodge that they seem to be scrubbing the road clean. Gas mileage per gallon: Challenger SRT I let off the gas, ever so slightly, and the 13 city, 21 highway. Hellcat engine: tyres get just enough traction to catch, and Price as tested: 6.2-litre supercharged we’re off . US$63,380. V-8 with 707 01 Now I’m moving, fast, the full 650 pound- Best feature: horsepower and 650 feet of torque catapulting us down the road. Wild, mad fun. pound-feet of torque. I’m fully into the gas now, and the car seems Worst feature: to be reverberating all around us, a thudding Trying not to access that wild, mad fun. 02. The ﬁ rst model-year frequency most often heard from heavy farm Challenger was born machinery and M1 Abrams tanks. in the 1970s and was I hit a bump in the road, unsettling the reborn in 2008. This chassis. I hit 60 miles (97km) per hour in fi rst new generation has the gear, then kick in the clutch and pull down the Th at is the rough equivalent of buying a same broad shoulders shifter into second. Th e road is sliding under- bespoke suit for US$300 or an apartment on and swaying hips as the neath us at an alarming pace, fence posts on Manhattan’s Fifth Avenue for US$500,000. You ﬁ rst models. 02 either side clicking by like reels in an eight-mil- don’t get that big a bang for such little bucks. limeter fi lm. Th en, the fi rst yellow sign that It’s spit in the eye of all convention. 02 reads, “Pavement ends.” I haul on the brakes. For whatever reason, muscle cars are very Th ere is no conceivable need for Fiat Chrys- much still part of the conversation when it It’s a very cool car indeed. out in either. And it goes like this. ler Automobiles NV (FCAU)’s brand-new 2015 comes to American vehicles, effi ciency and Th e fi rst model-year Challenger was born In sport mode, with traction control still Dodge Challenger SRT Hellcat. In some other practicality be damned. And the Challenger, in the 1970s and was reborn in 2008. Th is new fully on, slam on the gas. Hang on to the form, I suppose, its 6.2-litew, supercharged a big beefy slab of throwback Detroit metal, generation has the same broad shoulders and wheel and keep it pointed straight. Control Hemi V-8 could be used to power a Navy has long been eclipsed by Ford Motor Co’s swaying hips as the fi rst models. But with only the front wheels, which have suddenly gone destroyer, or open and shut the gates of the Mustang and General Motors Co’s Chevy two doors and sheet metal that stretches on light because the hood is lifting heavenward. Hoover Dam, or just shove the San Andreas Camaro. Its masters decided it was time to for days, it neither looks nor plays the part of a Look in the rearview mirror; observe smoke. Fault back in the right direction. be heard. Enter the Hellcat. modern sports car, let alone a crowd-pleasing Let off the gas slightly. Proceed onward in But, no, instead Chrysler’s Dodge divi- It should be noted that the 2015 Chal- crossover or sensible sedan. orderly fashion, pretending that high-defi - 02 sion decided it needed to outfi t the special lenger can be had in all kinds of variants, Hellcat buyers will ante up the nition strips of rubber left on road are in no Challenger model with an oxygen-gurgling including the base V-6 that starts well short US$61,000-something to put a Joker-worthy way related to your Challenger muscle car. heart that produces 707 horsepower. Th at’s of US$30,000 and gets a very sane 30mpg smile on their faces. more powerful than most exotic supercars. highway. Th at car is more stylish than the Th e Hellcat comes as a standard six-speed And then they gave it a starting price of about Hellcat, with brightwork and details like the manual transmission or very slick eight- Jason Harper writes about autos for Bloomb- US$60,000 (RM201,600). double grille that show attention to detail. speed automatic. It’s equally easy to burn erg News. Th e opinions expressed are his own.

Audi’s luxury coupe prototype heralds coming design shift

BY CHRISTOPH RAUWALD dashboard, allowing both the driver and front-seat passenger to operate sound and AUDI unveiled a prototype of a two-door lux- navigation systems. Th e headlights feature ury coupe as the world’s No 2 premium-car the manufacturer’s latest laser technology. brand seeks to shake up its design language. “We have put the sportiest car in the Th e Prologue concept car is fl atter and luxury segment on wheels,” Lichte said in shorter than the A8 sedan and is equipped the statement. with 22-inch wheels, three inches (7.62cm) Audi is a cornerstone of Volkswagen’s bigger than those on Audi’s top-of-the-line strategy to take the global auto industry’s 01. The Audi AG model. Th e front grille is wider and posi- top sales spot from Japanese carmaker Prologue concept tioned lower than in Audi’s current vehicles. Toyota Motor Corp by 2018. The Ingol- vehicle being “It’s a signature car for Audi,” Ulrich stadt-based unit plans to invest €22 bil- 03 unveiled at the Los Hackenberg, head of development at the lion (RM92.40 billion) by 2018 to expand, Angeles Auto Show German manufacturer, said in a statement including introducing 17 new or revamped ut- in Los Angeles, for the car’s presentation at the Los Ange- models this year. 01 California on Nov 19. les Auto Show. Audi sees the luxury portion of the Unit- era, Audi has been stepping up eff orts to coun- ed States market growing to almost 13% ac- 02. The sports-car like ter critics who say it’s losing its technological of total sales over the next decade, Scott n). performance of Audi’s edge and has settled for a stale look as the Keogh, Audi’s head of US sales, told re- r of Prologue concept Volkswagen AG unit seeks to surpass BMW porters at the show. Luxury models now ion automobile is ﬂ anked in sales. VW chief executive offi cer Martin make up about 10% of vehicle sales, he ike with gadgetry like Winterkorn appointed Hackenberg to head said. Luxury-brand sales will continue to ear a touch screen that Audi development last year. Marc Lichte outpace the total market because of af- oke stretches across the then took over as design chief in February. fordable lending rates and leasing terms, l is dashboard, allowing Th e Prologue’s 605-horsepower engine an older fl eet of vehicles on the road and both the driver and accelerates the car to 100kph per hour in the growth of families earning more than re- front-seat passenger 3.7 seconds. Th at sports car-like perfor- US$100,000 a year. mbo to operate multimedia mance comes alongside gadgetry such as “Th e affl uent are getting more affl uent,” 19- functions. a touch screen that stretches across the Keogh said. — Bloomberg ook 02 22 COMMENT MONDAY NOVEMBER 24, 2014 • THEEDGE FINANCIAL DAILY Is China building a mortgage bomb?

Th ere’s much the republic could learn from South Korea

BY WILLIAM PESEK payment ratios and mortgage rates, Street Research. “But if China re- looking for covert stabilisers. Among Street, imagine what state-coddled while prodding loan offi cers to ease lies on household credit to power them: securitisation. Chinese banks could hide. Also, to up on their reluctance to approve the economy and pulls back from One of China’s few reforms in the avoid South Korea’s missteps, Chi- borrowers without local household much-needed fi nancial reforms, the mid-2000s was securitisation of loans, na would have to complement this registrations. omens are not good.” which began with a trial programme nascent mortgage boom with poli- he first Chinese inter- Pilot programmes for mort- Take the experience of South Ko- in 2005. Th ree years later, Wall Street’s cies to redistribute income toward est rate cut in more than gage-backed securities and real es- rea after the 1997 Asian crisis. With crash made the bundling and selling consumers. two years is a stark rec- tate investment trusts got more sup- regulatory tweaks and a variety of of loans and assets an outcast among Th at means working to narrow ognition that the world’s port. Incentives were rolled out to ill-fated incentives, Seoul eff ective- fi nancial instruments, and the exper- the gap between rich and poor by second biggest economy encourage high-end buyers to up- ly shifted the nation’s debt burden iment was shelved. increasing the average household’s is in trouble. grade properties. from government to families. By the Since 2012, though, securitisa- share of national income and curbing TAfter years of piling ever more Th ere’s good news and bad in all early 2000s, fresh headwinds were tion has not only returned but fl our- a savings rate that is reaching exces- public debt onto the national bal- this. Th e good: It marks progress for intensifying; in April 2004, one in 13 ished. According to Choyleva, issu- sive proportions. While China has ance sheet, it makes sense to have the President Xi Jinping’s eff orts to recali- South Koreans was three months ance reached US$28 billion (RM94.08 surpassed Japan in absolute GDP, People’s Bank of China take the lead brate China’s growth engines. In high- or more behind on debt payments. billion) in the fi rst nine months of its distribution of gross household in propping up gross domestic prod- ly developed economies like the US, Of South Korea, Choyleva says, “all the year, compared with US$16 bil- disposable income in GDP terms is uct (GDP). Yet while the benchmark the quest for home ownership feeds it has to show for its eff orts are the lion between 2005 and 2013. While tiny by comparison. rate cut should help stabilise growth, myriad growth ecosystems and off ers mess left by a burst household-debt most sales have been of auto, corpo- Th ere’s much China could learn the move also adds to worries about the masses ways to leverage their bubble and an economy even more rate and credit-card debt, those of from South Korea, including how looser credit that could pose risks to equity for other fi nancial pursuits. dependent on exports.” mortgage-based securities are rising. to beat the “middle-income trap” the global economy. Case in point: And China’s debt problems are For all the grand talk of reining In July, the Postal Savings Bank of that befalls many developing nations mortgages. in the public sphere, not among in state-owned enterprises and the China did the fi rst residential mort- when they reach the US$10,000 per Earlier this year, Chinese offi cials consumers. Th e bad: If ramped-up shadow banking system and tolerat- gage-backed deal in seven years, and capita income level. Xi and his lieu- took several stealthy steps aimed at mortgage borrowing isn’t accompa- ing a “new normal” of slowing growth, the markets are buzzing about more tenants, though, should pay just as stabilising the property sector and nied by bold and steady progress in Beijing remains intent on getting as to come. Th ese market rumours fit much attention to the country’s fail- bolstering GDP growth. Th e China modernising the economy, China close as possible to this year’s 7.5% with the housing-as-stimulus nar- ures as its successes. — Bloomberg Banking Regulatory Commission will merely be creating another giant GDP growth target. rative. View loosened lending policies. Even be- asset bubble. With Moody’s and S&P watching, Risks abound, not least of which is fore cutting the one-year lending rate “Expanding the underdeveloped and prominent economists like Larry the danger of helping lenders to hide to 5.6% and the one-year deposit rate mortgage market is not bad news,” Summers arguing that China could dodgy investments off balance sheet. William Pesek is a Bloomberg View to 2.75%, the central bank had cut says Diana Choyleva of Lombard soon slow to 4% growth, offi cialdom is If transparency was a problem on Wall columnist. Britain may become most unpredictable country

BY ANATOLE KALETSKY government, committed to taking Labour-Liberal government would Britain out of the European Union. face falling business confi dence and Since a continuation of the cur- possibly a sterling crisis. So it would rent coalition is almost impossible be even more likely to fall in a snap because of Tory commitment to an election than a Tory-Nationalist co- FOR the past fi ve years, Britain has EU referendum, which the Liberals alition. been a haven of political and eco- oppose, Cameron may only be able Meanwhile, the Tories, forced nomic stability amid the turbulence in to lead the next government if his into opposition, would undoubted- Europe. No longer. In the years ahead, party wins an outright majority or ly replace Cameron as leader with a Britain will likely be Europe’s most forms an alliance with the Scottish more hard-line euro-sceptic — pos- politically unpredictable country. Nationalists, UK Independent Party sibly Boris Johnson, the popular and Th is risk, fi rst brought to the world’s (UKIP) and other fringe parties. An populist mayor of London. If so, the attention by the Scottish independ- An oﬃ cial counting ballots for the by-election at Medway Park in Gillingham, south- outright Tory majority is out of the snap election in 2016 or 2017 would ence referendum in September, has east England last Thursday. Photo by Reuters question, according to current opin- probably result in a landslide for rad- been confi rmed by the defeat suf- ion polls, and time is running out for ically euro-sceptic Tories in alliance fered by Prime Minister David Cam- the surge in support the Tories were with the UKIP. A quick referendum eron’s Conservative Party in a special cause of the rise of previously insig- once failed to produce a government expecting as a result of economic mandating the new government to election last Th ursday. Yet the loss nifi cant fringe parties. Th e Scottish majority — in 1974 under Harold Wil- recovery. negotiate an exit from the Europe- of Britain’s safe-haven status is not Nationalists look able to boost their son. It created seismic upheavals in A Tory government supported an Union would then become an yet factored into asset prices — es- six seats in Parliament to anything Britain’s adversarial politics. by Scottish Nationalists and UKIP odds-on bet. pecially sterling. Th e pound is still between 20 and 50, largely at La- Th e second reason for concern is a more plausible option. But the All these scenarios can, of course, near its strongest since 2008 despite bour’s expense. is that a multiparty coalition or mi- glue holding together such a coa- be qualifi ed with numerous ifs and the country’s current account and Th e United Kingdom Independ- nority government, even if it can be lition would be an EU referendum buts. Many political surprises will budget defi cits, the biggest in Europe ence Party is threatening dozens of patched together in post-election hag- on membership terms that the rest surely occur between now and 2017. relative to gross domestic product. Conservative incumbents. Mean- gling, will probably collapse within a of Europe would be extremely un- In the end, the instinctive caution Although Britain faces an unpre- while, the Liberals are almost cer- year or two. Whether the next prime likely to accept. of the British electorate might well dictable general election on May 7 tain to lose about half their 56-seat minister turns out to be Cameron or Th e UKIP would certainly press prevail — as it did in the Scottish next year, most investors and busi- representation. As a result, a ruling Labour’s Ed Miliband, he will be seen for such an impossible negotiating referendum — preserving the status nesses are still behaving as if polit- coalition may have to include not just as a short-term caretaker, passing mandate and even the Scottish Na- quo of British membership in the ical uncertainty would have limited two parties but three or four, includ- only non-controversial measures. tionalists would do so for tactical European Union. impact on economic conditions. Th is ing fringe nationalist groups. At some point in 2016 or 2017 at the reasons. Th e Scots would insist that a But whatever ultimately hap- complacency seems misplaced, for Th e Scottish National Party is sure latest, the opposition parties are al- British vote to exit the European Un- pens, outbreaks of political panic three reasons: First, Britain could to demand another Scottish inde- most certain to unite in a vote of no ion should be followed immediately are near certain in the six months become literally ungovernable after pendence referendum as its price confi dence on some major issue — by one on Scotland leaving Britain. before the general election. Th en the election, with no single party or for supporting a coalition, while the bringing down the government. Th is And in this second referendum, again during the period of turmoil coalition of parties able to form a UK Independent Party will likely in- would force a new election in spite the generally pro-European Scots and ungovernability leading up to majority government. Current pub- sist on Britain’s withdrawal from the of the theoretical requirement that would almost certainly vote to leave. a snap election and EU referendum lic opinion polls predict that neither European Union. It is hard to im- Parliament should serve a fi xed fi ve- Th e chaotic breakup of the consti- in 2017. the Conservatives nor the Labour agine either Labour or Conservatives year term. tutional status quo would then be Investors and businesses in Brit- Party will win enough seats to form agreeing to such terms. Th is means Th e near-certainty that whatever complete. ain are queuing up for a roller coaster a majority government — even in a that a government may have to be government emerges in May will fall An EU exit might, paradoxically, ride. —Reuters coalition with Liberal Democrats. formed without a majority in Parlia- within a year or so, raises the third and be even more likely if a Labour-Lib- Conservative-Liberal and La- ment. While minority governments most troubling business issue. A snap eral coalition comes to power in May. bour-Liberal majorities may both are quite common in continental Eu- election in 2016 or 2017 is most likely Th ough both parties are committed Th e opinions expressed here are those prove arithmetically impossible be- rope, the British Parliament has only to produce an overtly euro-sceptic to keeping Britain in Europe, a weak of the author, a columnist for Reuters.

24 FEATURE MONDAY NOVEMBER 24, 2014 • THEEDGE FINANCIAL DAILY ‘Show us your money fi rst’

Titiwangsa MP casts doubts upon Jentayu Danaraksa’s proposal

n Umno Mem- profi t-making maintenance, repair other components. ber of Parliament and overhaul (MRO) business as “Th is cannot be done. You can has asked a three- well as its sister airline Firefl y. outsource facilities on condition month- old compa- Jentayu managing director Feriz you have many choices. But if you ny which wants to Omar said the proposal was to com- have no choice, you don’t outsource rescue ailing Malay- plement Khazanah’s plan and that and you have to keep within the sianA Airline System Bhd (MAS) to the company was willing to invest system,” said Johari, who is a prom- “show us your money first and who “over and above” the RM6 billion inent corporate fi gure. your financial backers are” before Khazanah, which owns MAS, has He said an airline like MAS the proposal can be taken seriously. committed to its plan. should retain its MRO unit because Datuk Johari Abdul Ghani, the “If MAS can be given to any Tom, it’s vital for training and retraining MP for Titiwangsa, in casting doubts Dick and Harry or anyone who can to upgrade skills of workers, add- upon the proposal by Jentayu Da- come up with a working paper, I ing MAS could not divest its MRO Filepic showing the arrival of Malaysia Airlines’ A330-300 aircraft at the main naraksa, raised other questions as am afraid the problems MAS went because it’s a catalyst organisation. terminal building in KLIA, Sepang. MAS’ uniqueness is that it has everything and its well given the sketchy status of Jen- through when it was privatised to a Elaborating on Jentayu’s plan, he management has to look at it in totality. Photo by Chu Juck Seng tayu’s plan made known so far that corporate fi gure will recur. We are not said: “Anyone can come up with an does not seem to gel with the mam- going to repeat the same mistake,” he off er. MAS should write to them to to keep it within Malaysia and a Ma- to pump in, what’s important is, let’s moth 12-point plan announced by said of the 1994 failed privatisation. ask who are their bankers and how laysia-controlled company.” get the right business model,” he said. Khazanah Nasional Bhd to restruc- Johari, who is an Umno Supreme the money is raised; what is their Johari said there are plenty of for- Khazanah has received minor- ture and turn around MAS. Council member, said it is wrong business plan and concept and how eigners with a lot of money and who ity shareholders’ approval to take “Where are you going to bring the for anyone to just pick and choose do they address the deteriorating could even invest RM6 billion, which MAS private and this will kick-start money from? Show us your money. only the profi table units of MAS market shares. is equivalent to only US$2 billion. the plan it announced on Aug 29 If you say you have backers, who are because running the airline is a “Th is proposal looks nice on pa- Th e infrastructure that MAS has to overhaul the airline. your backers,” he told Bernama. portfolio by itself. per but I don’t see anyone of them accumulated over the years is worth Under the plan, Khanazah will in- Johari said he was opposed to MAS’ uniqueness is that it has credible enough to raise that kind much more than that, and the gov- ject RM6 billion into MAS as well as Jentayu’s plan to asset strip MAS as everything and its management of money. ernment has already injected RM17 take it private, axe 6,000 jobs, reduce revealed by the company, which has has to look at it in totality, and no “When I read newspaper reports billion into MAS, he said. the scale and size of the company, re- submitted a proposal to the Prime “entrepreneur who just appeared that they plan to raise the money from “Th ese are the issues we have to negotiate contracts and set up a new Minister to capitalise on the aircraft overnight” could simply choose foreigners, we are not going to take be very careful about and I think the outfi t to take over the operations by leasing business and take over MAS’ what’s profi table at the expense of this airline to a foreigner. Th e idea is RM6 billion that Khazanah is going July 1 next year. — Bernama

Tighten or ease? 2015 predictions Alibaba’s huge fi nance arm for Asia central banks is a mystery to most BY ANSUYA HARJANI THE coming year is shaping up to BY JOHN FOLEY standing loans each year. reputational fallout could quickly be a challenging one for Asian cen- In the 12 months ending June pingback on Alibaba’s e-commerce tral bankers, confronted with a bal- ALIBABA’S fi nance arm is one of the 2014, Alipay contributed 9.4% of business. ancing act of supporting economic secrets of the Chinese e-commerce Alibaba’s total operating profi t. And Th e bigger issue is that not every- growth while guarding against po- group’s success. Yet investors in the if Ant Financial is sold or lists on one is equally in the dark. Ant Fi- tential volatility arising from the listed Alibaba group don’t control the stock market, Alibaba gets a nancial’s owners include unnamed normalisation of US interest rates. a single share of the business, and payout of up to 37.5% of its value. senior fi gures from Alibaba’s list- But there is one source of respite can’t reliably estimate its worth. What would that stake be worth? ed company, as well as founder as policymakers tread this delicate Th at puts them at a disadvantage At this point, the fog descends. Jack Ma. course: receding infl ationary pres- to a select group of insiders with Credit Suisse, an underwriter of Th e Alibaba chairman plans to sures. a seat on both sides of the table. Alibaba’s initial public offering, reduce his stake in Ant Financial “Th e benign infl ation outlook is Th e business which was recently estimates the fi nancial business over time in order to bring it into helpful as it gives Asian policymak- renamed Ant Financial houses the could be worth over US$50 billion line with his stake of around 8% in ers breathing room at a time when Alipay payment processing system (RM168 billion) by 2016, suggesting the listed company, partly by giv- global outlook remains multidirec- and a controlling stake in money a windfall of up to US$20 billion for ing away shares to employee stock tional, with the US economy show- market fund manager Tianhong. the listed group. plans. But that hasn’t happened ing strength while EU and China It plans to take on Alibaba’s port- But outsiders lack some key yet — and as time passes the val- look to be losing momentum,” said folio of loans to small companies, numbers. Two-thirds of the pay- ue of his holding in the unlisted Taimur Baig, chief economist, Asia and even launch a bank. Alipay ments that Alipay processes don’t business rises. at Deutsche Bank. makes up the lion’s share. It gets a come from Tmall or Taobao. It’s not Th at misalignment is perhaps With the exception of India and commission of around 0.18% on clear how much Alipay makes on the most troubling thing about the Indonesia, the bank sees no more every dollar it processes on Alib- those transactions, what proportion relationship, because it’s possible than 4% infl ation anywhere in Asia aba’s Tmall and Taobao market- comes from funds fl owing in and that what benefi ts Ant Financial next year thanks to a favourable food places, according to calculations out of the group’s US$87 billion may not benefi t Alibaba. Say the and fuel price dynamic. based on fi gures in the group’s pub- money market fund, Yu E Bao, or listed group cuts the commissions Th ere are rate cuts in store for lic fi lings. what kind of profi t margins the as- it charges sellers on its Tmall site. China, India and South Korea in That might sound small. But set management business enjoys. Investors would see less revenue. 2015, the bank predicts. Th e Peo- Alipay’s signifi cance for Alibaba Even a US$20 billion windfall As the company grows, howev- ple’s Bank of China (PBoC) and is huge. Th e listed company only would be just 7% of Alibaba’s cur- er, so does the room for confl icts. the Reserve Bank of India (RBI) retains a small share of the value rent market capitalisation, so it’s Alibaba’s top executives on Nov 4 are forecast to cut rates by 50 ba- of goods sold via its websites as rev- easy to think Ant Financial’s val- announced that their philosophy sis points (bps) and Bank of Korea enue — 2.3% in the latest reporting ue doesn’t matter. Yet it does, for at Tmall and Taobao is to prioritise (BoK) by 25 basis points over the quarter. At a 0.18% commission two reasons. transaction levels and customer course of the year. rate — a fi gure the company does First, the relationship is a po- numbers over profi tability. Th e PBoC has resisted calls for not confi rm — fees to Alipay would tential risk as well as an opportu- Th at’s great for Ant Financial, broad-based monetary easing this amount to nearly a quarter of the nity. Imagine that Alipay suff ered but a poor signal for Alibaba’s year, resorting to targeted reserve group’s cost of sales. a data breach, or that Tianhong earnings. Th e trouble is, with such requirement ratio cuts for banks Despite this interdependence, — which has come from nowhere skimpy disclosure investors don’t which actively engaged in lending the listed group doesn’t own Ant to become the manager of China’s see the full picture, and given their to the agricultural sector and small Financial. Instead, it gets 37.5% of biggest money market fund in little skewed incentives, the executives and medium enterprise customers. the fi nancial unit’s pre-tax profi t, over a year — failed to pay investors with shares in both have little rea- Th e RBI has left its benchmark plus 2.5% of the value of its out- in a timely manner. Th e resulting son to end the mystery. — Reuters repo rate unchanged since January, MONDAY NOVEMBER 24, 2014 • THEEDGE FINANCIAL DAILY WORLD BUSINESS 25

IN BRIEF

ST Engineering Chinese PM urges announces new key management positions SINGAPORE: Mainboard-listed defence group Singapore Technologies Engineering Ltd ‘new growth engines’ (ST Engineering) announced new roles for some of its key management last Friday, The Straits Times reported. Lee Move is to counter slowing economy, says new agency Fook Sun, currently president of ST Electronics and president of ST Engineering’s de- BY DOMINIQUE PATTON fence business, will now also be deputy chief executive of- BEIJING: Chinese Premier Li Ke- ficer (CEO) of ST Engineering. qiang has called for “new growth Vincent Chong Sy Feng, ST engines” to counter slowing growth Aerospace president of stra- in the world’s second largest econ- tegic plans and business de- omy, Xinhua reported last Friday. velopment, will also take on The comments came as Chi- Filepic of employees the job of deputy CEO (corpo- na unexpectedly cut interest rates working at an Alibaba rate development) in which for the fi rst time in more than two group warehouse in he will oversee the group’s years to help support its economy, Zhejiang province, corporate functions. heading for its slowest expansion China. Factory growth in 24 years. is stalling and a Four companies in global With factory growth stalling decelerating property top 20 for investor and a decelerating property mar- market is hurting relations ket hurting demand for steel, ce- demand for steel, SINGAPORE: Starhub Ltd has ment and several other products, cement and several joined CapitaLand Ltd, DBS Beijing is under pressure to drive other products. Group Ltd and Singapore Tele- new areas of growth. Photo by Reuters communications Ltd to a glob- China should help people to set al ranking of top 50 companies up their own businesses and speed for performance in investor up the development of new busi- relations (IR), Th e Straits Times ness models, Li said. reported. Th e four Singapore He encouraged Chinese man- companies were in the top 20 ufacturers to expand overseas, es- and services, the news agency said. Yangtze River economic belt, which Clean energy and modern farm- of IR Magazine’s 2014 Global tablish strong, world-renowned He also urged policy eff orts to covers nine provinces and stretches ing are among the areas being tar- Top 50 ranking which assess- brands, and launch more innova- aid small- and mid-sized banks from southwest Yunnan province geted for expansion in the zone. es how companies from six tive “Created-in-China” products and bolster the development of the to Shanghai on the east coast. — Reuters regions — the United States, Canada, Europe, Greater Chi- na, Southeast Asia and Brazil — manage IR and look after the interests of stakeholders. Dizzying revolving door risks CapitaLand, DBS and SingTel overdone response Five Chinese banks were in last year’s top 50. raise deposit rates SGX to launch petro- BY DANIEL INDIVIGLIO chemical derivatives SINGAPORE: Th e Singapore NEW YORK: Th e dizzying revolving door between Wall Street and the BY XIN ZHOU & JUN LUO Bank of China Ltd, Bank of China Exchange (SGX) announced US government risks an overdone response. Going from a job as an Ltd and Bank of Communications last Friday that it would intro- overseer to the private sector, or moving in the other direction, can raise BEIJING: Five of 16 listed Chinese Co — are off ering 3%, compared duce a set of fi ve petrochem- confl icts. Such shifts warrant clear rules, but cross-fertilisation has value. banks raised their one-year deposit with the 2.75% benchmark. ical swaps and futures con- Last Wednesday, Goldman Sachs said it had fi red two workers after rates to the ceiling of the regulatory Th e central bank’s latest asym- tracts that will be launched in one, a former New York Federal Reserve employee, leaked confi dential benchmark, in a mixed response metric cuts of 40 basis points in its two phases, Th e Straits Times Fed information to a senior colleague at the bank. Th at shows what kind by lenders to China’s latest interest one-year lending rate and 25 basis reported. It said the move is of issues can arise — while also suggesting the right sort of response. rate liberalisation. points in the deposit rate are set to in response to the increasing The Securities and Exchange Commission (SEC) sets clear China Citic Bank Corp, Ping An narrow profit margins at banks. demand for more eff ective risk rules for ex-employees who enter the private sector. For instance, Bank Co, Huaxia Bank Co, Bank of Banks have the option of off ering management solutions for pet- it doesn’t allow former staff ers to turn up addressing matters they Nanjing Co and Bank of Ningbo depositors as much as 120% of the rochemical industry partici- worked on as SEC employees. Such restrictions should be stand- Co are off ering 3.3% to one-year benchmark rate, up from a previous pants. In the fi rst phase, SGX ard for government agencies, along with waiting periods and con- deposit holders, according to their ceiling of 110%. Off ering the maxi- Platts PX CFR China Swaps fi dentiality requirements. websites. The five biggest listed mum could narrow a bank’s interest and Futures will be launched Th e problem with moves in the other direction is exemplifi ed by lenders — Industrial & Commer- rate margin, a key source of profi t, on Dec 2, 2014. For the sec- President Barack Obama’s announcement last week of the nomination cial Bank of China Ltd, China Con- by 40 basis points, according to JP- ond phase, the polyolefi n con- of former Lazard banker Antonio Weiss to a top Treasury post. Despite struction Bank Corp, Agricultural Morgan Chase & Co. — Bloomberg tracts will be launched on Jan the need for fi nancial-sector business know-how at the department, 19, 2015. outspoken bank critic Senator Elizabeth Warren will fi ght the appoint- ment, joined by Senate colleague Dick Durbin and community bankers. Alarm for Singapore Last Th ursday, the nation’s biggest federation of unions urged Opec divided on oil output bonds as private bank big banks to stop letting employees cash in deferred equity awards bid falters when taking government jobs. People typically lose such payments SINGAPORE: Signs that when quitting for another private-sector fi rm. But precious few BY BEN PERRY called publicly for a cut in output, wealthy private banking cli- bankers would give up a hefty slug of cash to join the much less while Iran has hinted at a need to ents are reining in their appe- well-remunerated government payroll. For all that there may be LONDON: Th e Organization of Pe- reduce production. tite for Singapore dollar bonds confl icts, there’s still public service involved, and the unions’ pro- troleum Exporting Countries (Opec) But the cartel’s Gulf members, could spell trouble for the small posal goes too far. oil producers cartel will hold one led by kingpin Saudi Arabia, are and medium companies that Finance industry experience can be an asset for policymaking of its toughest and most signifi cant rejecting calls to pump out less oil are streaming to the city’s cap- and regulation. And ex-bankers can prove tough watchdogs, like meetings in recent years as, faced unless they are guaranteed market ital markets. Local high-yield former Commodity Futures Trading Commission chairman Gary with sliding prices, its members must share in the highly competitive are- bonds came in for a batter- Gensler, a Goldman alumnus. Th ose with an eye on a future pri- contemplate whether to cut output. na, according to analysts. ing last week as private banks vate sector job sometimes take an aggressive, rather than friendly, Ahead of Th ursday’s Opec meet- “Th e minimum consensus that started to dump some credits. course as a way to impress. ing in Vienna, its dozen member appears likely to be reached at Several bonds fell two to three Nor is it clear that the possibility of jobs later on the other side of countries are split on what direction Opec’s meeting is a commitment points, but the worst hit were the fence contributes as much as, say, long-running cultural factors to take after a 30% drop in crude to better comply with the offi cial Swiber Holdings’ notes, which when a regulator seems to have been captured by its charges. Th e prices since June has slashed rev- production target of 30 million bar- fell 10 to 15 points across the passage between Washington and Wall Street needs to be clearly enues.Opec’s poorer members, led rels per day,” Commerzbank ana- curve over the last week and a lit, but blocking it would do more harm than good. — Reuters by Venezuela and Ecuador, have lysts said in a note to clients. — AFP half. — Reuters 26 WORLD BUSINESS MONDAY NOVEMBER 24, 2014 • THEEDGE FINANCIAL DAILY

IN BRIEF

Fuel price rise tests Indonesia European Parliament may propose Google break-up in draft resolution leader’s poverty pledge BRUSSELS: The European Parliament is preparing a non-binding resolution that proposes splitting Google Inc’s search engine operations in But subsidy reduction is widely viewed as a right move Europe from the rest of its business as one possible option to rein in the Internet compa- BY OLIVIA RONDONUWU higher transportation costs. take? My children will be crying in the fi gure, the less evenly wealth is ny’s dominance in the search While the reduction in govern- hunger,” the father of two, who has distributed in an economy. market. European politicians JAKARTA: In an old cemetery in the ment subsidies is widely viewed as the another child on the way and goes Th e gap is all too clear in Jakarta. have grown increasingly con- Indonesian capital, Enur’s family right move towards getting Southeast by one name, told AFP. In the short term, the increase in cerned about Google’s and and others live in makeshift houses Asia’s top economy back on track, for About 100 million Indonesians, fuel costs risks widening this gap. other American companies’ between tombstones, a handful of those at the bottom it will mean a out of a population of 250 million, Fuel prices rose more than 30%, to command of the Internet in- the millions of poor people that new harder time in the short term. have missed out on the country’s 8,500 rupiah for a litre of petrol and dustry, and have sought ways President Joko Widodo (also known Enur, 40, who earns about 50,000 sustained economic boom over 7,500 rupiah for diesel, but are still to curb their power. A public as Jokowi) has pledged to help. rupiah (RM13) a day to feed his family the past decade, living below or among the cheapest in the world. call for a break-up would be But Jokowi’s promise to close a by driving a construction truck and just slightly above the poverty line. While it is Indonesians wealthy the most far-reaching action fast-growing wealth gap is looking selling fried snacks, sees no other Th e country’s Gini coeffi cient, enough to own cars and motorbikes proposed and a significant tougher after his decision last week choice than to borrow more to deal which measures income inequali- who mainly benefi ted from the sub- threat to Google’s business. Th e to hike subsidised fuel prices, which with an expected spike in infl ation. ty, rose from 31% in 2001 to 41% in sidies, they are not the ones who draft motion does not mention observers warn will hit the poor “What else is there to cut? 2012, one of the fastest rates in Asia, are hardest hit when the payouts Google or any specifi c search hard as food prices rocket due to Should I halve our daily rice in- the World Bank said. Th e higher are cut, observers warn. — AFP engine, though Google is by far the dominant provider of such services in Europe with an estimated 90% market share. South Korean — Reuters Australia raises A$5.7b selling Video streaming service export muscle Aereo ﬁ les for bankruptcy NEW YORK: Aereo Inc, the on- sapped by Medibank in IPO line video streaming company backed by media mogul Barry weak yen BY BRETT FOLEY & Diller, has filed for bankruptcy PHOEBE SEDGMAN protection. The Chapter 11 fil- ing last Thursday night came BY JUNG HA-WON SYDNEY: Australia raised A$5.68 bil- five months after the US Su- lion (RM16.52 billion) selling shares in preme Court said Aereo vio- SEOUL: As Japan slips into re- Medibank Private Ltd in the country’s lated broadcasters’ copyrights cession, South Korea is keep- second-largest initial public off ering. by capturing live and recorded ing an increasingly wary eye Th e government sold about 2.7 programmes on miniature an- on its export rival’s free-falling billion shares in the country’s biggest tennas and transmitting them currency, which is honing a health insurer at a price of A$2.15 to subscribers who paid US$8 lasting competitive edge over apiece for institutional investors, Fi- (RM27) to US$12 a month. Korean products in a number nance Minister Mathias Cormann That decision effectively for- of key markets. said on a conference call yesterday. bade New York-based Aereo’s The massive fiscal stimulus All the Medibank shares off ered were business model, an attempt and flood of easy money un- sold, he said in a separate statement. to offer a less-expensive al- leashed by “Abenomics” have “Th e off er has generated a very ternative to cable television. sent the Japanese yen plung- high level of demand both from do- — Reuters ing to multi-year lows against mestic and off shore institutional in- a basket of major currencies. vestors,” Cormann said from Perth Filepic of a branch of Medibank in Sydney. Prime Minister Tony Abbott is cutting Facebook ‘newspaper’ In the past two years, the yesterday. Medibank “will be more spending and selling assets as he seeks to rein in a budget deﬁ cit that swelled to spells trouble for media yen has lost around 33% of fl exible in pursuing growth opportu- A$48.5 billion in the year through June. Photo by Reuters WASHINGTON: Facebook’s its value against the US dollar nities into the future, they will have move to fulfi ll its ambition to be and 35% against the Korean better access to capital markets and the personal “newspaper” for won — a depreciation that has they will have the opportunity to per- ownership imposed on them.” seeks to rein in a budget defi cit that its billion-plus members is like- triggered public expressions form and do the best they can without Prime Minister Tony Abbott is cut- swelled to A$48.5 billion in the year ly to mean more woes for the of concern in Seoul from in- having the restrictions of government ting spending and selling assets as he through June. — Bloomberg ailing news media. Th e huge dustrialists, politicians and social network has become a monetary policy-setters. key source of news for many A weaker yen makes Japa- London gets closer to harsh bonus cap reality users, as part of a dramatic shift nese exports cheaper, which in how people get information impacts countries such as in the digital age. Company South Korea that are direct BY DOMINIC ELLIOTT next spring, in a decision that can’t back powers are a better way to tackle founder Mark Zuckerberg told competitors in a number of be appealed: they only occasionally pay, but jar with the EU approach. Its a forum in early November that key sectors. LONDON: London is nearing the ignore their colleague’s non-binding top banking regulator Andrew Bailey his goal is to make Facebook’s Bank of Korea (BoK) Gover- stark reality of banker bonus caps. An opinion. recently railed against the EU’s pay newsfeed “the perfect person- nor Lee Ju-Yeol promised earli- adviser to the European Court of Jus- Th e fi nancial system would be restrictions, and pushed back on a alised newspaper for every per- er this month that it would not tice (ECJ) last Th ursady struck down better off if this case was one of those separate European Banking Author- son in the world.” — AFP “sit idle” despite the limited the UK’s legal arguments against a exceptions. Advocate General Niilo ity ruling that banks were abusing tools it can deploy to counter European Union law restricting var- Jääskinen is technically right that the allowances to circumvent the bonus Police: Workers lynch tea the falling yen. iable compensation to a maximum EU’s 2:1 bonus-to-salary restriction cap. BoE Governor Mark Carney’s garden owner in India At its monthly monetary of two-thirds of overall pay. If the is not a hard ceiling on pay — since recent proposal to defer a portion of NEW DELHI: Angry workers meeting on Nov 18, the BoK court agrees with him, the practical it sets no limit on base salaries. But base salary to make clawback easier, have hacked to death the own- kept its key interest rate un- consequence will be that banks will a larger fi xed part of overall pay will and thus counter one of the bonus er of a tea plantation in eastern changed at 2%, but Lee un- hike fi xed salaries, and overall indus- make it harder for fi rms to withhold cap’s main drawbacks, may also con- India over a payment dispute, derlined the “worrisome situ- try remuneration may stay higher or later claw back compensation for fl ict with the EBA’s view of fi xed pay. police said yesterday, under- ation” regarding the Japanese than it should. misconduct. An International Mon- But London will have no other scoring festering labour unrest currency. The ECJ’s advocate general etary Fund study shows that forcing choice than to implement the law, in the region. Rajesh Jhunjhun- If Japanese companies up knocked down all fi ve of the UK’s salaries up can increase a fi rm’s risk. and its status as fi nancial entrepot wala, 45, was dragged out in the ante still further by slash- legal arguments against the EU’s It also makes it harder for a bank to may suff er if banks choose to staff the middle of discussions and ing export prices, then South bonus cap system. He added that cut total pay in a given year. up outside the EU. In the short to attacked by the irate mob at the Korean companies in the auto, London had no cause to oppose the The ruling sets up the Bank of medium term, this latest setback is Sonali tea estate in the Jalpaig- steel, machinery and ship- disclosure of senior management’s England (BoE) for more confl ict with likely to stiff en the resolve of the UK uri district of West Bengal state, building sectors are “bound remuneration. Th e judges are now EU regulators. Th e BoE’s proposals Conservative Party’s anti-EU wing. a local police offi cer told AFP to suffer”, Lee said. — AFP more likely to rule against Britain of longer deferral periods and claw- — Reuters over phone. — AFP MONDAY NOVEMBER 24, 2014 • THEEDGE FINANCIAL DAILY WORLD 27

IN BRIEF

Taiwan ruling party Japan warns of aftershocks faces rout in biggest ever local polls TAIPEH: With public fears of Chinese infl uence growing, a slowing economy and a series as quake injures 39 of food scandals, Taiwan’s ruling party is facing a rough ride in the island’s biggest ever local elections — seen as a ba- Nothing abnormal found in nuclear station in nearby Niigata prefecture rometer for the 2016 presiden- tial race. Campaigning is well under way with almost 20,000 BY AYA TAKADA candidates contesting a record An aerial view taken yesterday 11,130 seats, and analysts pre- TOKYO: Japan’s Meteorological showing rescue workers dict the Beijing-friendly Kuo- Agency warned people in the cen- investigating at collapsed houses mintang government will take a tral prefecture of Nagano to be on after an earthquake in Hakuba serious knock. From mayors of the alert for aftershocks after a mag- town, Nagano prefecture. Photo the six municipalities to coun- nitude 6.7 earthquake injured 39 by Reuters ty chiefs, city councillors and people and destroyed homes, pub- village leaders, the elections lic broadcaster NHK said. on Nov 29 could see new faces The quake struck at about ation of the Ohito line between at every level of local govern- 10.08pm local time on Saturday Shinano-Omachi station in Na- ment. — AFP with the epicenter at a depth of gano prefecture and Itoigawa sta- about 5km in the northern part of tion in Niigata prefecture remains India to buy ﬁ rst artillery the prefecture, the agency said in suspended because of a mudslide, since 1980s under Modi a statement posted on its website NHK said. overhaul yesterday. The agency detected In Nagano, 266 residents were NEW DELHI: India approved a 45 aftershocks by 7am local time, evacuated voluntarily as many 158 billion rupee (RM8.59 bil- of which the largest one occurred houses lost power and water after lion) purchase of artillery, the in Otari village in the prefecture, the quake, and landslides blocked fi rst acquisition of large-calibre according to the statement. roads, NHK reported. Th e tremor guns since the 1980s as Prime Tokyo Electric Power Co found record earthquake and tsunami 1998 Winter Olympics. At least 39 registered intensities of 6-minus on Minister Narendra Modi seeks no abnormalities in its Kashiwaza- in 2011 that sent reactors at Tep- people were injured, seven of them the Japanese scale of 7. Some areas to modernise the armed forces. ki-Kariwa nuclear station in nearby co’s Fukushima Dai-ichi plant into seriously, NHK reported yesterday. in Nagano and neighbouring Niiga- Th e Defence Acquisition Coun- Niigata prefecture, according to meltdown. JR East Railway Co resumed op- ta prefecture registered intensities cil authorised 229 billion ru- the utility’s statement posted on Th e areas rocked by the quake on erating bullet trains in the prefec- of 5, according to the Meteorolog- pees of procurements yester- its website. All of Japan’s nucle- Saturday include the Hakuba ski re- ture yesterday after suspending ical Agency. — Bloomberg day, including the artillery, a ar plants remain shut following a sort and other sites that hosted the them following the quake. Oper- government offi cial told reporters in New Delhi, asking not to be identifi ed citing rules. India has authorised US$19 billion China arrests (RM63.8 billion) of weapons Widespread fl ooding ahead for purchases since Modi swept to man for spying power in May and took a fi rmer line in border disputes with Pa- on aircraft snowy western New York kistan and China. — Bloomberg carrier base N Korea warns of BY SARAH IRWIN ‘catastrophic BEIJING: A Chinese man has consequences’ been arrested for taking photos EVANS, New York: Warm temper- SEOUL: North Korea’s top mil- of an aircraft carrier base and atures and rain were forecast for itary body warned yesterday of selling them to a foreigner as the weekend in the city of Buff alo “catastrophic consequences” more young Chinese Internet and western New York, bringing for supporters of a UN reso- users are being recruited by the threat of widespread fl ooding lution censuring its human foreign spies to gather intelli- to the region bound for days by rights record, as state media gence on military aff airs, state deep snow. reported its leader presiding media said. Areas where several feet of snow over a fresh military exercise. The man, surnamed Cao fell this week should brace for sig- A resolution urging the United and from Qingdao, is awaiting nifi cant, widespread fl ooding, the Nations Security Council to trial, state broadcaster CCTV National Weather Service warned refer the North’s leadership said on Saturday. He had tak- last Friday. to the International Criminal en photos of an aircraft carri- Swept by lake eff ect storms, parts Court for possible charges of er base in Qingdao for a man of western New York including Buf- “crimes against humanity” who had claimed to be the ed- falo, received as much as two me- was passed by 111 to 19 with itor of a military magazine and ters of snow, an amount equal to 55 abstentions at a UN Gen- was paid “a large sum of cash”, a year’s worth of accumulation for eral Assembly human rights CCTV said. the region. Temperatures in western committee last week. — AFP “In recent years, the number New York will stay above freezing of young Internet users like Cao through tomorrow night, with highs Death toll rises to four who look for jobs and make of nearly 10°C yesterday and 16°C Water will bring fl oods,” New York long, long time,” he said. Some are- after China earthquake friends on the Internet, who today, the Weather Service said. Governor Andrew Cuomo said. as should expect 1.52m to 1.83m of BEIJING: Th e death toll from have been subverted by for- “Th e warming will bring melt- “We are preparing now for more water, Erie County Executive Mark a 5.9 magnitude earthquake eign espionage and intelligence ing. Th e melting will bring water. fl ooding than we have seen in a Poloncarz said. — Reuters that struck a remote part of agencies and accepted instruc- China’s southwest rose to four tions from them to collect intel- yesterday, as media reported ligence on military targets, has the injured have all been suc- been increasing,” CCTV said, cessfully rescued. Th e quake adding that Cao, a local em- Cosby says no need to ‘answer to innuendos’ struck 39km northwest of Kang- ployee of a large business, had ding in the mountainous west also entered a military airport LOS ANGELES: Comedian Bill theater in Melbourne, Florida. Th e not saying anything, but a guy of Sichuan province at 4.55pm to take photos and transmitted Cosby spoke out against a wave comedian has refused to address doesn’t have to answer to innu- local time on Saturday. Th e new them to the editor. of sexual assault allegations but questions about allegations made endos,” Cosby said. “People should death toll was reported yes- In August, state media re- told a Florida publication he does by a number of women who said fact-check. People shouldn’t have to terday by Xinhua state news ported that a Chinese graduate not have to “answer to innuendos.” he forced himself on them sexually, go through that and shouldn’t an- agency, who also adjusted the student had been arrested for Cosby, 77, spoke to the newspa- with some accusing him of drug- swer to innuendos,” Cosby told the number of injured from 60 to selling intelligence material to per Florida Today last Friday, before ging them fi rst. newspaper, in a story posted on its 54, with six being in a critical foreigners. — Reuters performing his comedy routine at a “I know people are tired of me website late last Friday. — Reuters condition. — AFP 28 live it! MONDAY NOVEMBER 24, 2014 • THEEDGE FINANCIAL DAILY MO WELLBEING . THE ARTS . WINE+DINE . STYLE+DESIGN . LEISURE Personal ASSISTANT COMPILED BY VICHITRA NADES

WORK. LIFE. BALANCE

CALLING all dessert lovers. Melting Pot Cafe at Concorde Hotel Kuala Lumpur will be having a “Juicy Creamy Delight” promotion. Satisfy your sweet tooth with their speciality cake with its creamy cheese ﬁ lling and tangy slices of sweet peaches, topped with a generous spread of crunchy crumbles. The dessert is priced at RM12++ per slice and RM95++ per kg and is subject to availability. The restaurant is open from 10.30am to 11pm and is located at Concorde Hotel, 2 Jalan Sultan Ismail, Kuala Lumpur, Malaysia. To ﬁ nd out more, call (03) 2144 2200 or visit http:// kualalumpur.concordehotelsresorts.com/ promotions_fb.php. SupermodelMe places KL on the her the ma

me sai CENTRESTAGE! Lau on on she -ba Malaysia’s top-rated reality TV show returns and shows off Kuala Lumpur wa tim

IF you’ve always wanted to learn hip hop BY MAE CHAN Rigby in Hong Kong, where she literal- suc dancing, here’s your chance. For the fi rst ly had to brush him off and rush to her — time in Malaysia, Dutch Hip Hop legend t is the hunt for the ultimate siren next shoot of the day. Wang added that rea Kevin Paradox will be coaching a one-off — “A dangerously beautiful woman it was really satisfying to see their former dance workshop tonight from 9pm at of substance and power”, or as res- contestant on the billboards, “You go a p the Royal Phantom Dance Studio titled ident judge and host Lisa Selesner ‘wow!’ knowing that you’ve helped that a p “Paradox Hip Hop Workshop.” It is priced puts it bluntly, these ladies “have girl achieve her dream.” pla at RM100 for walk-in admissions. For got the cojones…” “We’re talking about millions of eye- stri those interested, call Edie at (012) 526 ISiren is the theme for this year’s hunt balls that are seeing these girls. Th at alone and 3626 or Eric at (016) 553 5306. The Royal for the best of Asia’s exotic beauties and is invaluable exposure,” said Selesner. pro Phantom Dance Studio is situated at 31-2 talents to eventually rule the runways Th e winner takes home a contract with & 31-M, Jalan PJU 5/20, Kota Damansara, and billboards on the fi fth season of Su- a renowned agency, among other prizes. mo Selangor. permodelMe, the multi-platform reality Shot entirely in Kuala Lumpur this entertainment show. time around, the 10-episode season will Having garnered over three million see some unexpected sides of our capital. WHAT other viewers last season across Singapore, Creator and producer, Karen Seah, found- better way to Malaysia and Philippines, emerging as er of Refi nery Media, said she wanted beat those Malaysia’s top-rated reality TV series to challenge diff erent angles creatively Monday blues last year shown on NBCUniversal’s Diva to see if they can showcase Malaysia in than with a buy channel, the show is, however, proving a new light. one, free one more than just reality television fodder. “You’ll see that no reality show has promotion of SupermodelMe proudly claims that ever been fi lmed like this before [in the your favourite last year’s winner, Katherine Rigby, has region], it elevates KL to look really inter- burger and since nabbed 12 TV advertisements and national. We wanted to bring that out,” beer? From 5pm participated in 51 fashion shows on the said Seah of the unscripted show. today, order a runway, emphasising its mission to seek Audiences can expect some surpris- burger from The out top model talents of “Asian heritage” es, including a rarely known sport of Bee and receive and spring boarding them to interna- Ostrich racing. a free burger or tional careers. beer with its “One-for-One” off er. With a Speaking at a press conference in Kua- Model Camp purchase of any burger from their menu, la Lumpur last week, the resident judges Calling SupermodelMe a “model camp” patrons will get to enjoy a free burger or — Hong Kong-based American model of sorts, the three judges pointed out that beer on the house. The Bee is at 2A-G, and TV host Selesner (popularly known the contest is an invaluable and intensive Block K, Jaya One, 72A Jalan Universiti, as Lisa S), Singapore-born commercial training for those who seriously want to Petaling Jaya and at 36B, Level G2, model and actress Ase Wang and TV host be in the industry. “I wish I had someone Publika, Solaris Dutamas, Jalan Dutamas Dominic Lau have been mainstays since telling me how it was done. I did eventu- 1, Kuala Lumpur. Call (03) 6201 8577 or season three — emphasised that this is ally, but it took a long time to get to know log onto http://thebee.com.my/ for more the real deal. people and learn,” said Wang, who is of details. Lau recounted recently bumping into 02 Swedish and Chinese parentage. MONDAY NOVEMBER 24, 2014 • THEEDGE FINANCIAL DAILY 29 live it! WELLBEING . THE ARTS . WINE+DINE . STYLE+DESIGN . LEISURE

SUPERMODELME SIRENS FUN FACTS:

• There are 12 contestants from 7 countries, including one from Malaysia • Youngest contestant is 20 years old • First sibling rivalry between a pair of twins from Japan • 6 cat fights occur • There are 21 crying scenes • 10 photo challenges and 1 video challenge are staged • Contestants were selected after 7 rounds of interviews.

kind of model they are. “Not everyone can 01. SupermodelMe Sirens’ 12 ﬁ nalists, is now wide open: be a runway model. If I sat around, waiting seen here with the resident judges, “Now Asian models are right up there with to do a runway show, I’ll be waiting for the were picked from over 3, 000 who every colour and creed, they are no longer rest of my life, it’s just not realistic,” said auditioned across Asia. considered just, ‘oh, that one Asian girl’.” Wang, referring to her petite build. In fact, she pointed out the Asian “de- Selesner quipped, “Th is body cannot do 02. Malaysian contestant 21-year mureness” is sought after by clients, and bikinis. Nobody wants to see me in a bikini old Kea Lee was born and bred in feedback has it that the professionalism and on the runway,” candid about her lanky body. Kuala Lumpur. The budding model tireless work ethic is bar none. One thing both the judges have in com- walked at the KL Fashion Week “[Models] say in the US or Europe are mon is their oft-repeated statements to 2014 earlier this year. used to a certain catering service or lifestyle. the fi nalists, “suck it up” and “deal with it”. Whereas in Asia, I mean we’re still sitting on Both pointed out that while it’s okay to have 03. At the judging table: (From left) plastic stools eating from Styrofoam boxes,” healthy competitive drama on the show, their Selesner, guest judge Ruﬀ a said Wang. job is to give the girls a mirror and reality Gutierrez, Wang and Lau. Th e judges said the show seeks to bring check of what the industry is like. out that confi dence and outspokenness, the 01 “People think we just stand in corners risk-taking factor that generally Asian cul- looking pretty, it’s not!,” emphasised Se- ture doesn’t bring out. Perhaps, it is a con- She said the fact that Lau, Selesner and lesner, “standing in high heels for 16-hour Th e model, who is married to Hong Kong tradiction to keep Asian values, but Lau said herself come from different segments of days, posing and running in heels and bi- actor Daniel Wu, with whom she has a daugh- it’s important as it will show in their work. the modelling and entertainment industry kinis when it’s sub-zero temperatures out- ter, Raven, pointed out that the house expe- “It’s about personality and character as makes the show more interesting. side... it all takes endurance,” she added, rience is probably much worse in real model well,” explained Selesner, “clients don’t want “Lisa is a runway model, so she would “You’re talking about 35 hours of shooting, apartments. Discovered at the age of 14 in to work with girls who are maybe as inter- mentor very diff erently from how I would,” four hours of sleep and then getting up and New York, she’s seen and experienced some esting as a wet puddle. Th ey want to work said Wang, calling her the mother hen, while doing it all over again.” of the worst and best of the industry, includ- with someone who is fun, intelligent and Lau would be the industry male perspective ing a then top model stealing her outfi t just can carry a good conversation.” on the show. She explained that her focus is Larger than life reality before a fashion show started, leaving her Moreover, strong confidence such as on bringing the business angle, confessing Th en there’s the “drama”. On the show, which with a bikini, of all things. that of a siren need not be loud like the she’s aware of her rather mean, no-holds shoots for six weeks, 12 fi nalists are put into “But I think the worst was when I had my word’s other defi nition. Selesner, who is of -barred reputation on the show. “I don’t a house together during the fi lming period, underwear stolen from me, it was disgusting!” French American and Jewish Chinese de- r want to waste their time. In this industry, and complete health and sports tasks on top she said and laughed off her experience in scent, had glowing reports about her peers time is not on their side,” Wang said. of photoshoots that would determine their cramped model apartments. from countries like China and Korea, calling Her fi lm background and commercial elimination. Despite the inevitable tensions In an industry notorious for its cut-throat them classy and quiet but strong and know ral- success — and her Singaporean Chinese side and “cat fi ghts” that arise, the judges are clear reputation and backbiting, Wang said nev- what they want. her — ensured that the veteran model brings a it’s nothing compared with what’s out there. ertheless it is an opportunity for the girls “You can’t have all 40 people backstage hat realistic perspective about marketing oneself. Lau also pointed out that it is healthy to help each other grow. Lau echoed the like me. Can you imagine? I’m the loudest mer “I’m a strong believer in making yourself competition. “It’s essentially every woman same, “Once the show is over, that’re 11 on set. You’ll always hear me,” said Selesner go a product and being able to sell yourself as for themselves out there,” hinting that there new friends there.” with an easy-going laugh. hat a product,” highlighting SupermodelMe’s will be shock moments in this series as the SupermodelMe Sirens premieres on Nov platform as the perfect kickstart, “I am very fi ght gets intense. Asian domination 24 at 8pm, showing every Monday on Diva ye- strict with [changing] the models’ mindsets, “Oh yeah! Most of the stuff that happened SupermodelMe sets itself apart from the (Astro Channel 702). Behind-the-scenes one and getting them to realise that you are your on the show, I’ve had happen to me,” recalled rest with its “by Asians, in Asia, for Asia” footage and mobile videos shot by the con- ner. product, your boss, your company.” Selesner, “So when the girls come to me and mantra. Where there was an option of the testants themselves will be available online. ith One of the biggest take-homes for the complain over some things, I look at them token Asian model years ago, and a trend For more information, visit www.super- zes. models on the show is to learn quickly what and say, ‘and?’” that followed, Selesner insists that the fi eld modelme.tv/ his will tal. nd- ted ely a in

has the PICK OF THE DAY er- ut,”

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Th ere are only two ways to live your life. One is as though Zen TODAY nothing is a miracle. Th e other is as though everything is a miracle. — Albert Einstein TREAT IT at home

Top 10 home remedies for common ailments

BY CARMEL DOMINIC Skin infections Crush a few cloves of garlic until it be- ature has provided us with comes a paste. Then apply onto affected a myriad of natural healing area of the skin periodically until the infec- ingredients that can be used tion reduces and goes away. Try on a little to ease common ailments. to see if your skin is comfortable with the Instead of running to the application before applying generously. doctor first and burning a Nhole in your pocket, why not try some of the simple remedies below from the Inter- national Journal of Scientific and Research Publications (http://www.ijsrp.org/). They are probably already in your kitchen or Sore throat fridge anyway. And even if they aren’t, it is Mix a teaspoon of salt into a warm glass of much cheaper than a doctor’s visit. How- water and let it dissolve. Gargle the solution ever, a word of caution ... if your ailment is and allow it to reach the back of the throat serious, see a doctor. as much as possible without swallowing it. Repeat until the throat feels rested. Stomach discomfort Crush some aloe vera leaves (carefully remove the thorns first) and mix it with yogurt/curd. Eat twice a day for effective results. Dry skin Heat up some peanut oil on medium fi re and apply the slightly heated oil on the areas that are dry. Repeat and apply as necessary. Make sure to test the oil’s temperature before applying it. Vomiting Pound some coriander seeds into powder Cold and let it steep in a glass of milk or water for Grate a young ginger until you get a tea about fi ve minutes, then add a teaspoonful spoonful. Mix the ginger with two to three of sugar. Sip on it and have it once a day until drops of honey and consume just before Enteric infections the vomiting stops. you go to bed. (an intestinal infection) Juice a ripened bael fruit — also known as Minor skin burns Loose stools Gastric Bengal quince, golden apple, stone apple, Cut a slice of raw potato and rub it on the burn Instead of popping medicines, fi rst try mash- Add half a teaspoon of cinnamon powder wood apple, bili — and drink mixed with area, making sure the juice from the potato ing a banana and mixing it with roasted chick to a cup of warm milk. Stir well until it dis- water or milk. Consume until symptoms is releasing over the area. Use this remedy pea powder. Consume this mixture twice a solves and drink. You can add a little bit of reduce. soon after the burn occurs for best results. day for results. honey to the mix if you want to. MONDAY NOVEMBER 24, 2014 • THEEDGE FINANCIAL DAILY SPORTS 31

IN BRIEF

Meyer conﬁ dent in young Soh Chin Aun admitted Boks after Botha retirement MILAN: South Africa coach Heyneke Meyer expressed confidence in the latest crop of Springboks to don the green to AFC Hall Of Fame and gold jersey after lock legend Bakkies Botha’s decision to re- tire from the team after a 22-6 defeat of Italy. Meyer handed FAM president Tengku Abdullah congratulates the ‘Towkay’ on the honour Test debuts to Nizaam Carr and Julian Redelinghuys while the less experiened trio of Trevor KUALA LUMPUR: Football Associ- era in the 1970s and early 1980s. to Melaka FA before announcing his Nyakane, Coenie Oosthuizen ation of Malaysia (FAM) president, He was the youngest member of retirement from football in 1985. and Johan Goosen were also Tengku Abdullah Sultan Ahmad Shah the Malaysian national team which Besides Soh, the other inductees given a chance to stake their has congratulated national football played an Olympic qualifying match are Homayoun Behzadi (Iran), Yas- claim for a place in next year’s legend Datuk Soh Chin Aun (pic) for against South Korea in 1971, besides uhiko Okudera (Japan), Sun Wen World Cup squad. Botha’s sur- his induction into the Asian Football appearing at the 1972 Munich Olym- (China), Hong Myung-bo (South prising decision to end his in- Confederation (AFC) Hall of Fame. pic Games, and having captained Korea), Ali Daei (Iran), Sami Al Jaber ternational career to focus on “Congrats, Dato Soh Chin Aun, Malaysia during the qualifi ers for (Saudi Arabia), Baichung Bhutia (In- French club Toulon eclipsed a Malaysia is proud of you,” Tengku the 1980 Moscow Olympics. dia) and Harry Kewell (Australia). tactical and scrappy encounter Abdullah, the Tengku Mahkota Pa- Melaka-born Soh enjoyed a suc- Homare Sawa who skippered the in Padua last Saturday, where hang, tweeted. cessful two-decade career as a foot- Japanese women’s football team, Italy’s only points came from Nicknamed “Towkay” (Boss), baller, continuing later to serve the which lifted the FIFA Women’s World the boot of New Zealand-born Soh was renowned for being in game he loves the most in diff erent Cup title in 2011 in Germany, was fl y-half Kelly Haimona. — AFP the heart of the Malaysian team capacities. also inducted into the AFC Hall of defence, alongside Datuk Santokh He represented Selangor FA at club Fame. AFC announced the full list Klopp open to managing in Singh during the country’s golden level from 1970 to 1980 and moved of inductees last Friday. — Bernama the Premier League LONDON: Charismatic Borus- sia Dortmund manager Juergen Klopp is open to a move to the Chelsea dazzles Premier League and has said managing in England would be against West Singapore backtracks on plan to the only logical step if he were to leave the German club. Since Brom, City limit players over 30 taking over Dortmund in 2008 Klopp has transformed a side defeat Swansea that finished a disappointing BY PATRICK JOHNSTON their careers, who felt they were be- be a continued and greater emphasis 13th the previous season into BY MIKE COLLETT ing unfairly punished as the S League on performance, a high level of fi tness one of Europe’s premier teams SINGAPORE: Organisers of Singa- pushed to help give more playing and the ability to play at a high inten- winning many admirers along LONDON: Chelsea beat West pore’s domestic football league have opportunities to younger players. sity for all players in the S League.” the way. Th e 47-year-old is now Bromwich Albion to stay top of completed an embarrassing U-turn “Following discussions, the S Players are already required to one the most revered managers the Premier League last Satur- on plans to limit the number of play- League and the club chairmen have complete a fi tness test in order to on the continent having twice day while champions Manches- ers aged over 30 from competing for decided not to implement the new compete in the S League. led Dortmund to Bundesliga ter City kept the leaders in their clubs in the S League after several rules. Th e decision was taken after Th e league is one of Asia’s weakest titles in 2011 and 2012 as well sights and Manchester United complaints of ageism. careful consideration of the appeals with organisers routinely trying new as the Champions League fi nal demonstrated they are not out of S League bosses announced earli- made by some aff ected players,” ploys to raise interest in a product in 2013. — Reuters the title race yet. Chelsea played er this month that the 10 clubs com- the League said in a statement late which struggles to attract fans de- some dazzling football to easily peting in next year’s campaign would last Saturday. spite the country’s love for the sport. Ireland coach Schmidt has beat West Brom 2-0 at Stamford only be allowed to register fi ve players “Th e S League’s goal is to always Th ousands in the city state rou- appendix out Bridge with goals from Diego aged 30 and above with at least three improve the standard of football to tinely sit up till early hours to watch DUBLIN: Ireland coach Joe Costa and Eden Hazard to stretch required to be 25 or under in their make it more exciting and compet- their favourite Europe-based stars, Schmidt underwent an oper- their unbeaten start to the season 22-man squads. itive. Th e clubs must also be able to while local S League clubs are only ation to have his appendix re- to 18 matches in all competitions. That move brought a wave of compete at the regional level. able to attract a couple of hundred moved last Saturday night just City came from behind to criticism from players at the end of “To achieve these goals, there will to matches. — Reuters hours after masterminding the defeat Swansea City 2-1 at the Six Nations champions’ 26- Etihad Stadium with Yaya Toure 23 victory over Australia, the scoring the winner, while Unit- Irish Rugby Football Union an- ed, who have struggled since nounced yesterday. Th e 49-year- Louis van Gaal took over, won Smile fi rmly back on Messi’s face old New Zealander — who man- 2-1 at Arsenal to climb to fourth aged to get through the nerve with their fi rst away win under BARCELONA: Lionel Messi seemed wracking game before being the Dutch coach. Arsenal, who to have lost some of his infectious joy taken to a Dublin hospital short- Messi have not fi nished outside the top in playing football in recent times, but ly after the match fi nished after celebrating four since 1996, slipped to eighth the smile was fi rmly back on his face feeling unwell all day. Schmidt his record with on 17 points — their lowest tally last Saturday after he broke the six hadn’t hinted at the pain he was teammates at after 12 matches for 32 years. decades-old La Liga scoring record. feeling when he spoke to Irish the end of their Chelsea lead the table with 32 Th e Barcelona and Argentina for- national broadcaster RTE after Spanish ﬁ rst points from 12 games, followed ward has had a torrid couple of years the match. — AFP division match by Southampton, who have 25 when he was hampered by injuries, against Sevilla at from 11 and play at Aston Villa suff ered a painful defeat to Germa- Laidlow keeps calm despite the Nou Campon today. City have 24 points and ny in the 2014 World Cup fi nal and Scotland’s return to form Saturday. Photo United have 19, ahead of New- endured off -fi eld problems such as KILMARNOCK: Scotland cap- by Reuters castle United on goal diff erence. an ongoing court case for allegedly tain Greig Laidlaw pledged that Newcastle, who are fi fth, contin- defrauding the Spanish tax man. his side would not be getting ued their rise up the table with Th e 27-year-old raised eyebrows “carried away” ahead of the Six a 1-0 win over bottom-placed last week when he told Ole newspa- Player of the Year a guard of honour coach Tito Vilanova, one of Messi’s Nations and Rugby World Cup Queens Park Rangers. per he might consider leaving Barca, as he left the pitch. early mentors who succumbed to next year, despite rediscovering Although there are still 26 the club he joined in his early teens, “Don’t ever leave, Leo!” was cancer in April. their try scoring touch in their matches left, Chelsea reinforced but all that was forgotten at the Nou the front page headline in Barce- Messi also has a share of the most prolifi c November home their position as overwhelming Camp as a superb hat-trick against lona-based sports daily Sport yes- Champions League scoring record Test series for eight years. Five title favourites by demolishing Sevilla took him past Telmo Zarra’s terday. having drawn level on 71 goals with tries in Scotland’s 37-12 victory West Brom. After seeing his team mark of 251 goals to a new La Liga In a message on Facebook, Messi former Real Madrid and Schalke 04 against Tonga at Rugby Park in make it six league wins out of six best of 253. thanked all the people who had sup- forward Raul last month. Kilmarnock on last Saturday at home, manager Jose Mourin- Messi’s adoring fans chanted his ported him throughout his career. Th e Argentina captain can make brought their tally of fi ve-point ho told Sky Sports: “We played name as he was tossed into the air by He dedicated the record to “the the record his own in tomorrow’ss scores in their three Novem- spectacular high quality football his teammates before they lined up people who are no longer with us”, Group F match at APOEL Nicosia. ber internationals to 11 — their in the fi rst half.” — Reuters to give the beaming four-time World a clear reference to former Barca — Reuters biggest haul since 2006. — AFP 32 SPORTS MONDAY NOVEMBER 24, 2014 • THEEDGE FINANCIAL DAILY

IN BRIEF

Myanmar hold Malaysia Ecclestone denies rejecting in Suzuki Cup clash SINGAPORE: Underdogs Myan- mar held 10-man Malaysia to a goalless draw in a bad-tempered opening Suzuki Cup Group B F1’s teen audience match which was delayed by more than hour by heavy rain and thunderstorms. Malaysia midfi elder Gary Steven Robbat He said he was not interested in social media and such ‘nonsense’ was sent off for a second booka- ble off ence in the 34th minute as REUTERS Myanmar controlled possession BY ALAN BALDWIN why people want to get to the so- to do. So people grow up like the guy but could not fi nd the goal which called ‘young generation’.” who’s 30-years-old now,” he said. would have given them a fi rst ABU DHABI: Formula One’s com- He added that he was not inter- Ecclestone’s comments have been win in the biennial tournament mercial supremo Bernie Ecclestone ested in social media and such ‘non- a talking point in Abu Dhabi, even if since 2008. Malaysia had their (pic) has denied saying he was not sense’ because he was too old-fash- team principals have refrained from own chances to grab a fi rst win interested in the youth audience ioned. He was also quoted as saying open criticism. under new coach Dollah Salleh because they did not buy expen- “I don’t know what the so-called “Educate the children and you but a fi fth-minute eff ort from sive watches or bank with the sport’s ‘young generation’ of today really grow them into being customers,” forward Mohd Amri Yahyah was sponsors. wants. What is it? You ask a 15- or said Mercedes motorsport head Toto rightly ruled out for off side. Th eir “I never said younger generation, 16-year-old kid ‘what do you want’ Wolff , whose team have won both threat diminished as the tetchy I said children. Th e question to me not the six-year-olds that buy the and they don’t know.” Formula One titles this year. game played on the artifi cial turf was children,” the 84-year-old told product we advertise,” he said. Speaking at the Yas Marina circuit “For an aspirational brand like at the Jalan Besar Stadium wore Reuters at the season-ending Abu “I answered a question. Th e ques- after presenting the ‘Bernie Eccle- Ferrari defi nitely our demographic on with the Turkmenistan offi - Dhabi Grand Prix. tion was about children. Th at was it.” stone Trophy’ to the winning British is from the moment they can switch cial dishing out a high number “I don’t know how many six or An interview in Campaign team of the Formula One in Schools on TV or they can enter in a Ferrari of yellow cards. — Reuters seven-year-old kids there are with Asia-Pacific magazine caused a competition, Ecclestone clarifi ed his store until when they can aff ord a a Rolex (watch), which their parents rumpus last week when Ecclestone remarks. “We want to attract a teen- car,” commented Ferrari principal Matsuyama wins in have probably bought for them. It’s was quoted as saying “I don’t know age audience. Th at’s what we want Marco Mattiacci. — Reuters playoff on Japan return TOKYO: Hideki Matsuyama won the Dunlop Phoenix tournament on his return to Japan Button remains after winning a playoff following Alonso hits back at Ferrari boss a dramatic fi nal round yesterday. smooth and Overnight leader Matsuyama, who captured his maiden vic- fast for fi nal lap BY ALAN BALDWIN and didn’t see probably all the fi ve ri opting to replace him with Red tory on the US PGA Tour earli- years that I’ve spent here and how Bull’s four-time champion Vettel. er this season, won on the fi rst ABU DHABI: He is a world cham- ABU DHABI: Fernando Alonso has I’ve fought every single race in the “Probably I was too old when extra hole after countryman Hi- pion, highly respected, vastly ex- hit back at Ferrari principal Marco championships,” added the double he (Mattiacci) tried to renew me roshi Iwata had forced a playoff perienced and a proven race win- Mattiacci for saying that Sebastian world champion. until the Monza race, and he kept with a blazing round of 63 at the ner. But yesterday, after 265 races Vettel would bring “the utmost mo- Ferrari have not won a race since pushing and pushing and had a lot shoreline course in Miyazaki. Be- and 15 victories, Jenson Button tivation and commitment” to the Alonso’s last victory at his home of talks,” said the Spaniard, who is ginning the day with a two-shot was bidding farewell to McLaren Formula One team when he re- grand prix in May last year and are set to return to McLaren. lead, the 22-year-old Matsuyama and Formula One when he lined places the Spaniard next season. facing their fi rst blank season since “Even in the last moment again we closed with a one-under-par 70 up on the grid for the season-end- “I heard the comments and I don’t 1993. Th ey are currently fourth in had a lot of phone calls and emails after birdying the fi nal two holes ing Abu Dhabi Grand Prix. think they were very good,” Alonso the standings. that I still have in my computer. Prob- for a 15-under total of 269. Iwa- At least, that was how it told reporters ahead of his last race Alonso was quick also to point ably at that time I was not so old, but ta self-destructed in the play- seemed. To most observers, and for the Italian team at yesterday’s sea- out that only one driver, himself, has again when I took my decision I guess off , taking six shots to reach the those family and friends close son-ending Abu Dhabi Grand Prix. won a race for the sport’s oldest and he had to fi nd another driver.” green. — AFP to the 34-year-old Briton, it had “If he tried to mean that I was most successful team since 2009. Mattiacci took over as principal long been expected that he would not motivated, he arrived too late at He also made clear that he had in April after Stefano Domenicali Australia edge South be replaced next season by two- Ferrari. He has a few months here decided to leave rather than Ferra- stood down. — Reuters Africa in fi nal ODI time champion Fernando Alon- SYDNEY: James Faulkner hit so, whose departure from Ferrari the winning boundary with fi ve was confi rmed last Th ursday. balls to spare to give Australia a But, amid speculation, doubts Pacquiao scores six knockdowns in title defence thrilling two-wicket victory over persist. “I hope this isn’t my last South Africa yesterday in the Grand Prix, I really do because I one-day international (ODI) feel I have a lot to give,” Button BY KIERAN MULVANEY and push them to the top of the said before yesterday’s desert Pacquiao (left) ICC one-day rankings. Th e Aus- title-decider. MACAU: Manny Pacquiao knocked punching Algieri tralians were cruising towards “Of course, there is something down American challenger Chris during their World a rain-reduced victory target of in the back of your mind think- Algieri six times to retain his WBO Boxing Organisation’s 275 in Sydney but then lost four ing it possibly could be, so you welterweight championship in Ma- 12-round wickets for three runs to give have to enjoy it as much as you cau yesterday morning. welterweight title the Proteas a late chance of vic- can. Whether that is the pictures Th e fi rst knockdown, in the sec- fi ght at the Venetian tory. But Faulkner (six not out) on the wall, or untucking your ond round, was a combination of a Macao hotel in Macau got Australia over the line with a shirt or something else. Pacquiao punch and Algieri slipping yesterday. Photo by sweep for four off spinner Rob- “But I am here to do a job. I on the canvas but in the sixth round Reuters in Peterson, who had bowled can do the best job I can, but off Algieri tumbled head over heels after the Proteas into contention circuit, with family and friends, a Pacquiao barrage and went down with four wickets. — AFP we are talking about things more again in the same round from a right coming a swollen right eye and two struggled to hit Algieri cleanly be- than we would normally. So far, hook. knockdowns against Russia’s Ruslan cause of his opponent’s backward Stenson defends DP World I have enjoyed this weekend and A fi erce left cross in the ninth sent Provodnikov in his previous outing motion, the punches he did land Tour Championship title it’s great having my family here...” Algieri to his back. He beat the count, but he was never remotely in this took their toll. DUBAI: Sweden’s Henrik Stenson Button may not know, and but dropped to his knees from a fol- contest. “I did my best,” refl ected Pacquaio. successfully defended his title at cannot say, what his future holds. low-up flurry and seemed on the Although he circled constantly to “Algieri was fast-moving. I’m not sur- the DP World Tour Champion- McLaren, where he has been a verge of being stopped as Pacquiao his left and attempted to keep Pac- prised that he kept getting up, because ship, the season-ending tourna- permanent fi xture since winning unleashed a fusillade of punches quiao (57-5-2, 38 KOs) at a distance that’s what he did against Ruslan ment here on the European Tour, the title with Brawn in 2009, have against the ropes. with his superior reach, he rarely Provodnikov.” yesterday. Stenson birdied the last delayed making an announce- Somehow the American survived landed any consequential punches. The win raised once more the two holes for a two-under par 70 ment, about their 2015 team plans that round and despite being knocked “It’s not just his hand speed,” said prospect of a long-anticipated clash in the fi nal round Sunday, to n-fi until next month. As the specu- down by another left hand in the Algieri afterward of Pacquaio. “He’s a with undefeated American Floyd ish on 16-under par 272 and beat lation swirls around him, Button tenth, made it to the fi nal bell. great fi ghter. He does everything well. Mayweather, a fi ght that Pacquiao three of his Ryder Cup teammates has battled his emotions, strug- Algieri (20-1, 9 KOs), who suf- I was never hurt, but he did catch me said he welcomed. — world No 1 Rory McIlroy (68), gled to sleep and missed the ad- fered his first defeat, had earned with a big shot.” “I want that fi ght,” he said. “Th e No 7 Justin Rose (69) and No 22 vice of his late father John.— AFP the shot against Pacquiao by over- Although Pacquiao sometimes fans deserve that fi ght.” — Reuters Victor Dubuisson (68). — AFP