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FRIDAY NOVEMBER 21, 2014 ISSUE 1844/2014 FINANCIAL

MAKE BETTER DAILY DECISIONS S-CROSS — Stylish, practical and effi cient www.theedgemarkets.com 4 6 HOME BUSINESS Mah Sing makes RM630m cash call to trim gearing ratio

8 HOME BUSINESS 1MDB to be profi table in FY15, says Ahmad Maslan

10 HOME BUSINESS Malton lines up property launches worth up to RM1.2b

18 HOME Azmin vows stern action against breach in payouts

25 WORLDWORLLD BUSINESSBUSINESS Ma warns Alibaba faces its ‘most dangerous moment’ This digital copy is brought to you by FBM KLCI 1822.29 2.10 KLCI FUTURES 1821.00 3.00 STI 3315.60 18.96 RM/USD 3.3650 CPO RM2223.00 22.00 OIL US$77.73 0.37 GOLD US$1195.70 1.80

PP 9974/08/2013 (032820) PENINSULAR MALAYSIA RM1.50

FRIDAY NOVEMBER 21, 2014 ISSUE 1844/2014 FINANCIAL

MAKE BETTER DAILY DECISIONS S-CROSS — Stylish, practical and effi cient www.theedgemarkets.com 4 6 HOME BUSINESS Mah Sing makes RM630m cash call to trim gearing ratio

8 HOME BUSINESS 1MDB to be profi table in FY15, says Ahmad Maslan

10 HOME BUSINESS Malton lines up property launches worth up to RM1.2b

18 HOME Azmin vows stern action against breach in payouts

25 WORLD BUSINESS Ma warns Alibaba faces its ‘most dangerous moment’

4 FRIDAY NOVEMBER 21, 2014 • THEEDGE FINANCIAL DAILY

For breaking news updates go to www.theedgemarkets.com

ON EDGE TV IN BRIEF www.theedgemarkets.com Alibaba order books of US More than a fad dollar bond at US$40b LONDON: Order books on Chi- nese e-commerce giant Alibaba’s seven-tranche US dollar bond China’s tech giants are racing to build a great wall of content are at US$40 billion (RM134.8 billion), according to a mar- Ronser comes ket source. Alibaba is looking out with BY ROBYN MAK with another popular video site, almost 90% of its revenue. As us- to sell up to seven tranches in- Youku Tudou. Alibaba is similarly ers move from desktops to smaller cluding three-, fi ve-, seven-, 10- innovative HONG KONG: China’s tech giants stretching its business model. Th e screens, it gets harder to make ad- and 20-year fi xed rate tranches, palm oil waste are racing to build a great wall of company and its chief executive vertisers pay. TV makers like Xiaomi and three- and fi ve-year fl oating treatment content. Smartphone maker Xiaomi have splashed out some US$3 billion are facing competition from compa- rate notes. On Wednesday, initial method Inc and e-commerce group Alibaba this year in entertainment alone. nies like Alibaba and search engine price thoughts were set at 80 ba- Group Holding Ltd have channelled Watching online shows on a televi- operator Baidu fl ooding the market sis area over Treasuries for billions of dollars into programming sion is a new idea for China’s 618 mil- with smart TV sets boasting exclusive the three-year fi xed, 110bp area for Internet TV. lion Internet users, many of whom use content. For all of them, charging for for the fi ve-year, 135bp area for It could be more than a fad. If smartphones. Sales of Internet-con- content is a way of locking in more the seven-year, 150bp area for viewers pay up, content can bring nected TVs and set-top boxes were predictable revenue streams — which the 10-year and 175bp area for in revenue streams more stable and just 24 million in 2013, according to investors should in theory support. the 20-year. Th e price talk on the lucrative than ad dollars and one- iResearch. In contrast, Youku Tudou Th e question is whether viewers two fl oating rate note tranches off hardware sales. For investors, has over 500 million people streaming will pay. Achieving a victory over con- are the 3-month Libor equivalent that’s something worth tuning in to. shows for free at least once a month. sumers’ wallets like that of US-based of the fi xed rate notes. — AFP Xiaomi’s US$300 million (RM1 While Goldman Sachs reckons the Netfl ix Inc is easier said than done. New SUV to billion) investment in online video audience for Internet TV could hit 77 Enticing viewers with content could Volvo Cars plots contribute up to site iQiyi, announced on Nov 18, is million by 2015, it has so far been hard backfi re and rile the country’s unpre- US resurgence 10% of Suzuki’s the latest instalment of a US$1 bil- to pin down a decent business model. dictable censors. Th e race for who STOCKHOLM: Chinese-owned lion planned investment in Internet Yet there could be more to this gets a slice of the lucrative Internet TV Volvo Car Group said on total sales TV content. Just a week earlier, the content craze. Th e loss-making You- market is getting dramatic, but there Wednesday that a sweeping company sealed a separate alliance ku Tudou relies on advertising for is still time for spoilers. — Reuters overhaul of its model range over the next fi ve years would propel its long-suff ering sales volumes in the United States back above 100,000 cars per year. Strong growth in China The Edge Communications Sdn Bhd Outward Bound turns 60 (266980-X) and more modest gains in Eu- Level 3, Menara KLK, No 1 Jalan PJU 7/6, rope have helped Volvo grow Mutiara Damansara, 47810 Petaling Jaya, : Th e Outward sales for 16 straight months. , Malaysia Bound School (OBS) celebrated Sultan Nazrin Shah However, turnover in the US, (centre) presenting Publisher and Group CEO Ho Kay Tat its 60th anniversary last Satur- once its biggest market but now day, with the Sultan of Perak, Sul- Tuanku Zara the eclipsed by China, has been Editorial tan Nazrin Muizzuddin Shah and Outward Bound School eroding over the past decade. For News Tips/Press Releases Raja Permaisuri Perak, Tuanku roll of honour for her — Reuters Tel: 03-7721 8219 Fax: 03-7721 8038 achievements at OBS in Email: [email protected] Zara Salim. Th e Sultan served as Outward 1987, with the Outward Mexico’s president Senior Managing Editor Azam Aris Bound Trust Malaysia president Bound Trust Malaysia reveals US$3m in assets Executive Editors Kathy Fong, from 1989 to 2002 and Tuanku president, Maybank MEXICO CITY: Facing confl ict of Jenny Ng, Siow Chen Ming, Islamic chairman Datuk Surinder Jessy, Ooi Inn Leong Zara has been an OBS alumni interest accusations over a luxury Associate Editors R B Bhattacharjee, since 1987. Seri Ismail Shahudin home, Mexican President Enri- Joyce Goh, Jose Barrock, OBS is a non-profi t education- at the Diamond Jubilee que Pena Nieto disclosed late on Vasantha Ganesan al organisation and expedition celebration dinner at Wednesday ownership of nine Editor, Features Llew-Ann Phang the Istana Hotel, Kuala Deputy Editors Cindy Yeap, school that serves people of all properties among assets worth Kang Siew Li ages and backgrounds through Lumpur last Saturday. at least 45.2 million pesos (US$3 Assistant Editors Adeline Paul Raj, active learning expeditions that million or RM10.11 million). Th e Tan Choe Choe inspire character development, assets included investments, jew- Chief Copy Editor Halim Yaacob Senior Copy Editors Marica Van self-discovery and service both in proximately 100,000 participants the oldest centre outside Europe, is elery and works of art, a docu- Wynen, Lam Seng Fatt, and out of the classroom. have taken OBS courses of various located in Lumut. Activities include ment posted on the president’s Melanie Proctor Since its inception in 1955, ap- kinds. Outward Bound® Malaysia, sailing, kayaking and jungle trekking. website showed. — Reuters Copy Editors Evelyn Chan, Veronica Poopathy Art Director Sharon Khoh Design Team Cheryl Loh, Valerie Chin, Aaron Boudville, Aminullah Abdul Karim, New Suzuki S-CROSS is stylish, practical and effi cient, says MD Yong Yik Sheng Asst Manager-Editorial Services Madeline Tan KUALA LUMPUR: Suzuki Malaysia Automobile Sdn Bhd welcomed (From left) Suzuki and Suzuki Corporate the new Suzuki S-CROSS into its Malaysia Automobile Sdn Bhd Managing Director Au Foong Yee deputy managing director Gen Ishii Deputy Managing Director model line-up yesterday. Lim Shiew Yuin “With its rich features and tech- at the launch of the Suzuki S-CROSS nology for its price, the S-CROSS in Kuala Lumpur yesterday. Advertising & Marketing paves the way forward for Suzuki To advertise contact GL: (03) 7721 8000 and strengthens an already re- Fax: (03) 7721 8288 nowned line-up of durable SUVs line, doing 0-100kph in a respecta- Chief Marketing Offi cer and practical crossovers, said Suzuki ble 11 seconds. Th e S-CROSS tips Sharon Teh (012) 313 9056 Malaysia Automobile Sdn Bhd man- the scale with a kerb weight of less Senior Sales Managers Geetha Perumal (016) 250 8640 aging director (MD) Keiichi Suzuki. than 1,185kg. Fong Lai Kuan (012) 386 2831 According to Suzuki, the new Th e Suzuki S-CROSS comes with Shereen Wong (016) 233 7388 Suzuki S-CROSS’ physical struc- integrated roof-rails, aerodynamic Acting Senior Sales Manager ture is the result of intense aero- wing mirrors, striking 17-inch alloy Gregory Thu (012) 376 0614 Ad-Traffi c Manager dynamics-focused computer-aid- wheels, rain-sensing wipers and Vigneswary Krishnan (03) 7721 8005 ed engineering while the chassis bright, automatic HID headlamps Ad Traffi c Asst Manager itself is made of high-rigidity and and “we are dedicated to ensuring mission which propels the front with daytime-running LEDs and Roger Lee (03) 7721 8004 lightweight materials. He said these a fulfi lling ownership experience wheels of the 2WD S-CROSS. Th e fog lamps. Its safety equipment Executive Ad-Traffi c Norma Jasma (03) 7721 8006 characteristics help to heighten the for our customers”. car returns an fuel con- consists of seven airbags, Electron- Email: [email protected] S-CROSS’ performance, stability Powering the Suzuki S-CROSS sumption rating of just 17.2km/L ic Stability Programme, ABS with and fuel economy. is a lightweight, low-friction 1.6-li- under the UNECE R101 New Eu- Electronic Brake-force Distribution, Operations Suzuki said the car’s mix of ef- tre petrol engine which produces a ropean Driving Cycle. Brake Assist and Hill-hold Control. To order copy Tel: 03-7721 8034 / 8033 ficiency, practicality and safety healthy 86kW (117hp) at 6,000rpm With the fuel-saving properties “Th e S-CROSS is not just a car. Fax: 03-7721 8282 makes it a perfect ride for mature and 156Nm at 4,400rpm. It is mated of the Suzuki S-CROSS, it is still a Like all other Suzukis, it’s your ‘Way Email: [email protected] professionals with active lifestyles, to a Continuously Variable Trans- highly capable machine in a straight of Life!’,” said Suzuki.

6 HOME BUSINESS FRIDAY NOVEMBER 21, 2014 • THEEDGE FINANCIAL DAILY

Mah Sing makes cash No management call to trim shake-up at AirAsia X gearing ratio BY JEFFREY TAN

KUALA LUMPUR: Mah Sing Group Fernandes is confi dent that with its revamp plan, the airline can turn around next year Bhd is making a cash call to raise up to RM630 million, which is the second rights issue for the property BY CHESTER TAY selected routes throughout Asean. pecting the airline to turn around of AAX to revive the airline. developer in less than two years. “Th ey are unlucky in terms of in 4QFY14 with the rationalisation Fernandes said he, together with To sweeten the deal for share- KUALA LUMPUR: AirAsia Bhd timing, where 2014 is a challeng- of industry capacity and the signif- AirAsia executive chairman Datuk holders, the rights issue would group chief executive offi cer (CEO) ing year for the whole industry, not icant drop in global fuel prices in Kamarudin Meranun, will allocate come with free warrants and may Tan Sri Tony Fernandes has affi rmed only them [AAX],” he said. recent weeks. more time to help AAX’s manage- be priced with a likely discount to that no upper management shake- On Wednesday, AirAsia X re- Fernandes said the revamp plan ment team steer the airline. theoretical price of 20%. On top of up is on the cards for loss-making ported a wider net loss of RM210.85 involves merging AirAsia and AAX “We are aware that a lot of Ma- that, Mah Sing is proposing a bonus AirAsia X Bhd (AAX) and is confi - million in 3QFY14 from RM128.79 departments to remove duplica- laysians buy AirAsia X’s shares, issue on the basis of one-to-four to dent that with its revamp plan, the million in 2QFY14, on higher op- tion, improve effi ciency and lower therefore both of us will take the reward shareholders. low-cost, long-haul carrier can turn erating expenses, foreign exchange costs as well as rationalising AAX’s responsibility and are committed to Mah Sing is the second proper- around in the next fi nancial year losses and fi nance costs. Th is was Australian routes. He noted that the turning around AirAsia X,” he said. ty company that has announced a ending Dec 31, 2015 (FY15). its fourth consecutive quarterly revamp plan is still being fi nalised. Asked if AAX had expanded its rights issue in the past two weeks. He does not rule out the possibil- loss since 4QFY13. “Th e plan will be fi nalised by to- fl eet too quickly, Fernandes said its “It (rights issue) will be used for ity of AAX returning to profi tability It also unveiled a revamp plan morrow [today] internally, and we expansion plan was reasonable, save land that we have acquired in Pu- in the fourth quarter of this year. which sees the airline halting ex- will implement it right away,” he that there were unexpected events chong and Seremban, and also for “We are still confi dent about the pansion of its Malaysian route net- said. such as the MH17 and MH370 trag- land development activities,” exec- business model, and will support work next year and slowing down Th e Edge Financial Daily on Tues- edies and the Ebola outbreak that utive director Datuk Steven Ng Poh the current management,” he told its aircraft capacity growth by de- day reported, quoting sources, that had aff ected demand for travel. Seng said at the group’s briefi ng on reporters after launching a new ferring the delivery of two aircraft AAX was facing problems paying Nevertheless, he expects 2015 to its third-quarter results yesterday. product called the Asean Pass yes- each in 2015 and 2016 and another salaries and allowances due to the be a “good year” for AAX, mainly Some RM370 million will be ear- terday. Th e pass enables travellers three in 2017. late arrival of incoming funds, and due to lower jet fuel costs and the marked for part-payment for land to utilise pre-purchased credits to AAX CEO Azran Osman-Rani that Fernandes will take on a more airline is seeing a strong rebound in Negeri Sembilan and Puchong in book fl ights at a fi xed rate across had announced that he was ex- prominent role in the management in demand from its China route. Selangor. It will also be used to fund payments over the next 12 months. According to Ng, the rights issue will allow Mah Sing to source bor- rowings worth RM1 billion, which SKP, and Carigali win Petronas’ PSC will be utilised to acquire land bank. “Th e rights issue is going to be used for our existing land, which BY MADIHA FUAD wholly-owned unit M3nergy Bhd “there have been minimal activities of Newfi eld Malaysia in early 2014 will ease gearing, and therefore al- will hold up to a 25% equity inter- in the blocks but the presence of oil and has grown its energy division lows us to borrow RM1 billion before KUALA LUMPUR: Petroliam Nasion- est. Petronas Carigali will hold the and gas seeps indicate a probable with massive discoveries in the hitting a gearing level of 0.5 times,” al Bhd (Petronas) has awarded two remaining shareholding. working petroleum system”. SK408 PSC. he explained. production-sharing contracts (PSC) The award was made after an Blocks SB331 and SB332, measur- As for M3nergy, the acquisition Currently, Mah Sing’s total re- for oilfi elds in Sabah to a consortium international bidding exercise in ing 13,114 sq km and 17,933 sq km, of the oil and gas company by Sa- maining undeveloped land bank comprising SapuraKencana Petrole- which Petronas invited bids from respectively, are located onshore in bah Development Bank paved the stands at 3,658 acres (1480ha) and um Bhd, the Sabah state government upstream companies for these the eastern part of Sabah. way for the Sabah government to its remaining gross development and Petronas Carigali Sdn Bhd. blocks. SapuraKencana’s SKESI was Petronas said the PSC partners increase its participation in the local value (GDV) is at RM44.8 billion. Its Th is is the fi rst PSC awarded to selected as the winner of the bidding are committed to drilling two wildcat oil and gas (O&G) industry. unbilled sales stood at RM5.1 billion. a local consortium since Petronas exercise, which took place last year. wells and acquiring 500 line km of Earlier this month, Prime Minis- Mah Sing reported a 21.7% jump was formed in 1974. Sabah is the Th e PSC was signed yesterday new 2D seismic data in Block SB331 ter Datuk Seri Najib Razak assured on net profi t to RM85.9 million in fi rst state government to participate by Petronas executive vice-pres- and drilling one wildcat well and Sabah that it would continue to the third quarter ended Sept 30 directly in oil production activity. ident and chief executive officer acquiring 100 line km of new 2D get more revenue from its O&G re- from RM70.6 million in the previ- The contracts are to develop (CEO) for upstream, Datuk Wee seismic data in Block SB332. sources. ous corresponding period. Revenue Blocks SB331 and SB332 near Sanda- Yiaw Hin; SapuraKencana presi- Th e PSC partners are also com- Najib pointed out that apart from leapt 33% to RM713.6 million from kan basin in eastern Sabah. dent and group CEO Tan Sri Shahril mitted to carrying out other inte- the O&G royalty of 5%, Sabah was RM536.5 million a year ago. Under the PSC, SapuraKencana Shamsuddin, M3nergy director Tan grated studies based on the existing also given a 10% stake in Petronas For the nine-month period, net Petroleum’s wholly-owned subsid- Sri Sukarti Wakiman and Petronas data for the two blocks. LNG Train 9 Sdn Bhd in Bintulu, profi t grew 21.3% to RM254.7 million iary SapuraKencana Energy Sabah Carigali president and CEO Datuk SKESI became a wholly-owned Sarawak, which would generate ad- from RM209.9 million, while reve- Inc (SKESI) will own 70% of the two M Anuar Taib. subsidiary of SapuraKencana fol- ditional revenue to the state and nue surged 43.6% to RM2.06 billion oil blocks while Sabah government’s According to Petronas’ statement, lowing the successful acquisition its people. from RM1.44 billion a year ago.

THE EDGE FILE PHOTO Trading of MUI shares suspended pending ‘material’ announcement

BY WEI LYNN TANG allow its profi ts to shine through MUI, however, dismissed the report. lion and RM58.06 million in FY13 as its financials have been on a MUI’s chain of hotels in the UK is and FY12 respectively, have ex- KUALA LUMPUR: Trading of shares downtrend in the past three years. believed to have been not revalued ceeded operating profi ts (before in Malayan United Industries Bhd Khoo is currently embroiled in for more than a decade, and could exceptional items) of RM50.42 mil- (MUI), one of tycoon Tan Sri Khoo divorce proceedings with his wife, now be worth more than their net lion and RM55.56 million. Kay Peng’s (pic) stable of compa- former beauty queen Pauline Chai. book values (NBV). Based on its latest Total borrowings stood at nies, is suspended for three days Th e Edge Financial Daily report- annual report, MUI’s properties in RM893.48 million as at June 30, starting from 11am yesterday to ed in September that well-regarded Malaysia, Australia, the United States, against cash of RM305.88 million. 5pm next Tuesday (Nov 25), follow- investor Datuk Dr Yu Kuan Chon Hong Kong, and the UK MUI owns and operates nine ho- ing a request from the company. had emerged as the top 30 share- collectively held a NBV of RM827.3 tels and two restaurants in the UK and In a fi ling with Bursa Malaysia holders of MUI, just as the group million as at Dec 31 last year. two hotels in Malaysia, most of which yesterday, MUI said the suspen- looks to dispose of its crown jewel MUI’s revenue fell to RM663.4 are operated under the Corus brand. sion was “pending the release of a — the freehold Corus Hotel in Hyde million in the fi nancial year ended Its business segments encom- material announcement”. Park, London, the United Kingdom. Dec 31, 2013 (FY13) from RM820.2 pass the retail division, which in- While it is unsure on what the It was reported that MUI had million in FY12, while net profit cludes London-listed Laura Ashley material announcement would be, tasked Debutesq Group, a luxury shrank to RM6.3 million from Holdings plc and Metrojaya Bhd, it is worth noting that MUI’s value real estate fi rm, to sell the hotel for RM32.6 million the year before. the food, property as well as fi nan- lies in its assets, which if sold, could £200 million (about RM1.05 billion). Its fi nance costs of RM52.62 mil- cial services divisions.

8 HOME BUSINESS FRIDAY NOVEMBER 21, 2014 • THEEDGE FINANCIAL DAILY

MOST VIEWED STORIES ON theedgemarkets.com Market- listed OCK 1MDB to be profi table in Group transfers FY15, says Ahmad Maslan to Main Market BY SUPRIYA SURENDRAN

KUALA LUMPUR: Shares of OCK To continue to spend on its CSR projects next year Group Bhd have been transferred to the Main Market of Bursa Ma- laysia, two years after its debut on BY CYNTHIA BLEMIN yesterday as he drew attention to an Teksi Rakyat 1Malaysia (TR1MA give fair coverage on the sovereign the ACE Market in July 2012. 1MDB’s slew of CSR projects since 1.0 and TR1MA 2.0) where 67,470 wealth fund. OCK managing director Sam KUALA LUMPUR: Debt-laden 1Ma- it was formed in 2009. taxi drivers were given tyre subsidies 1MDB posted a massive net loss Ooi said the transition marked a laysia Development Bhd (1MDB) So far, 1MDB has spent a total of in 2012 and 2013, RM90.5 million for of RM665.4 million for FY14 due to defining milestone for the tele- will continue to spend on its cor- RM382.32 million on CSR projects, the Nadi Kasih programme to repair a sharp rise in interest expenses and communications network services porate social responsibility (CSR) said Ahmad. 600 dilapidated homes for the poor substantially lower revaluation gain. provider, and signifi es its stability. projects as the sovereign wealth fund Th ere has been too much neg- in 2011 and RM60.6 million for the Its finance costs ballooned to “Being listed on the main mar- is expected to be profi table in its cur- ative publicity on 1MDB lately, he German Akademik JPA (Jabatan RM2.4 billion in FY14 from RM1.62 ket further enhances our reputa- rent fi nancial year ending March 31, said. Despite the losses for FY14, the Perkhidmatan Awam) scholarships billion in the previous fi nancial year, tion, as we venture our business 2015 (FY15), said Deputy Finance sovereign wealth fund will contin- to 900 SPM students to study abroad while its revaluation gain shrunk regionally,” he said in a statement Minister Datuk Ahmad Maslan. ue with its CSR projects next year, in 2009 and 2010. to RM897 million, 67% lower than yesterday. “I am confi dent that 1MDB will he stressed. Ahmad also said 1MDB is man- RM2.74 billion in FY13. Over the Currently, OCK owns and main- return to profi tability [in FY15],” he Some of the CSR projects include aged by responsible and credible past fi ve years, 1MDB has borrowed tains telecommunication sites told a press conference at Parliament a RM76 million allocation for Bantu- directors, and urged the media to some RM40 billion. across Malaysia. The group has also ventured regionally into My- anmar, Cambodia, China, Singa- pore and Indonesia. Th e group recently completed Eco World exceeds RM2b sales target its 85% acquisition of PT Putra Mulia Telecommunications (PMT), which it said has contributed sig- BY SUPRIYA SURENDRAN tic in Semenyih, Selangor; and Eco EcoMajestic, the group’s fl ag- sia, which have all performed well. nifi cantly to its telecommunica- Botanic, EcoSpring and Eco Busi- ship Klang Valley township devel- Sales from the group’s projects in tion networks-managed services. KUALA LUMPUR: Eco World Devel- ness Park 1 in Iskandar Malaysia, opment, saw a take-up rate of 95% the economic corridor alone to- Th e inclusion of PMT’s business opment Group Bhd achieved sales Johor Baru. on its launch day in May this year, talled RM1.83 billion. has also increased OCK-deployed of RM3.186 billion for its fi nancial Th e development rights to all whereas EcoSpring and EcoSum- For the 12 months ended Sept managed services to more than year ended Oct 31, 2014, surpassing these projects are being acquired by mer had close to 80% take-up. 30, 2014 (FY14), Eco World recorded 10,000 telecommunication sites its RM2 billion target.Th is fi nancial Eco World, pursuant to a corporate Since then, EcoMajestic has gone a revenue and profi t before tax of in Malaysia and Indonesia, it said. year has a period of 13 months due exercise announced in April this on to launch several other phases RM112.4 million and RM9.3 million “We foresee strong market po- to the change in its year end from year, and the group will be holding with continued success, and to date, respectively. tentials for managed services in Sept 30 to Oct 31. an extraordinary general meeting to the project has sold RM753 million The group’s financial perfor- Indonesia, as the country has more In a statement yesterday, Eco seek the approval of its sharehold- in total, comprising terraced units, mance in FY14 was constrained than 120,000 telecommunication World said the bulk or RM3.02 bil- ers for this exercise on Dec 12, 2014. semidees and bungalow land, and by the completion of Saujana Glen- sites and PMT is covering less than lion of its sales was contributed by “It has been a fantastic year for the is slated to unveil its new sales gal- marie in Shah Alam, and the ina- 10% of the market. projects launched under Eco World group, with all launches well taken lery and show units by the end of bility to launch new properties at “We are also deploying man- Development Sdn Bhd (EW Sdn up,” said Eco World president and November. Kota Masai, Johor, while awaiting aged services for about 4,000 tel- Bhd), namely EcoSky in Taman chief executive offi cer Datuk Chang Currently, Eco World has fi ve approval of the revised master plan ecommunication sites in Malaysia Wahyu, Kuala Lumpur; EcoMajes- Khim Wah. active projects in Iskandar Malay- by the authorities. this year,” said Ooi. Besides telecommunication network services, OCK has also ventured into green energy and power solutions, specifi cally focus- Homeritz shares up 3% after Insider Asia says fi rm undervalued ing its expertise in solar energy. It is currently constructing three so- BY MEENA LAKSHANA “(Homeritz’s) valuations are fair- talisation stood at RM165 million. pany’s revenue rose to RM126.8 lar farms in Peninsular Malaysia, ly attractive,” Insider Asia said in a According to Insider Asia, million, while net profi t was higher which are expected to be delivered KUALA LUMPUR: Homeritz Corp report, which was published in Th e Homeritz has seen steady growth at RM20.3 million. by the end of the year. Bhd’s share price rose as much as Edge Financial Daily and theedge- and high dividend yield. Homeritz’s “Th e company has proposed a “Th e group is still very much 3% after Insider Asia said the fur- markets.com yesterday. revenue increased from RM89.8 fi nal dividend of 3.1 sen, subject to focused in our business direction niture manufacturer’s shares were Homeritz’s share price rose as million in the fi nancial year end- shareholders’ approval, for FY14. for the telecommunications seg- undervalued. Th e research fi rm said much as 2.5 sen to 83.5 sen before ed Aug 31, 2011 (FY11) to RM112.9 Th is brings total dividends for the ment in Malaysia and regionally, Homeritz shares were trading at a easing to close up 1.5 sen at 82.5 million in FY13. Net profi t rose from fi nancial year to 5.1 sen per share we will continue to explore vari- trailing 12-month price-earnings sen yesterday, with 404,000 shares RM10.8 million to RM15.1 million — up from 3.75 sen in FY13 — or ous emerging markets for business ratio of 7.9 times. changing hands. Its market capi- during the period. In FY14, the com- about 50% of net profi t. expansion prospects,” said Ooi.

SapuraKencana buys Petronas’ Vietnam oilfi elds for US$400m

BY MADIHA FUAD In a fi ling with Bursa Malaysia Petronas has a 50% interest in In a statement, SapuraKencana the group’s strategy to build a bal- yesterday, SapuraKencana said its Blocks 01/97 and 02/97 known as president and group chief execu- anced portfolio of E&P assets,” he KUALA LUMPUR: SapuraKencana wholly-owned subsidiaries Sapu- the Cuu Long Basin, 40% interest tive officer Tan Sri Shahril Sham- said, adding that its strategy fo- Petroleum Bhd has proposed to raKencana Energy Vietnam (Cuu in Blocks 10 and 11.1 called Cai suddin said the acquisition of the cuses on balancing exploration, acquire Petroliam Nasional Bhd’s Long) Inc, SapuraKencana Energy Nuoc and 36.8% interest in Block three blocks marks a significant development and production as (Petronas) entire interest in three Vietnam (Nam Con Son) Inc and 46-CN named Nam Con Son Ba- milestone for SapuraKencana as well as the oil and gas contribu- oil blocks off shore south Vietnam SapuraKencana Energy Vietnam sin. These blocks are located pri- it further strengthens the group’s tion to reserves and resources. for US$400 million (RM1.34 billion). (Cai Nuoc) Inc entered into three marily in shallow waters offshore presence in Vietnam by adding ex- Shahril pointed out that the News of Petronas’ intention to sell sales and purchase agreements south Vietnam. SapuraKencana plorations and production (E&P) deal will also provide sustain- its producing Vietnam oilfi elds have (SPAs) with Petronas Carigali Viet- is entitled to net revenues from operations to its existing service able growth and visibility on surfaced since early this year. Sapu- nam Ltd and Petronas Carigali Over- these blocks starting from Jan operations. the group’s longer-term income raKencana won the international bid. seas Sdn Bhd for the three blocks. 1, 2014. “The acquisition is in line with stream. FRIDAY NOVEMBER 21, 2014 • THEEDGE FINANCIAL DAILY HOME BUSINESS 9

Genting Plantations 3Q Regional rubber mart to net earnings soars 91% be set up in 18 months to RM69.3m BY AHMAD NAQIB IDRIS

KUALA LUMPUR: Genting Plan- Malaysia, Th ailand, Indonesia seeking to strengthen rubber prices, says Uggah tations Bhd’s net profi t soared 91% to RM69.3 million in its third quarter ended September of fi - BY SULHI AZMAN full mechanism of how it will work, “We can increase consumption from 143,068ha in 2000. nancial year 2014 (3QFY14), from as a full report towards this goal will through the application of natural Statistics from the Malaysian Rub- RM36.3 million a year ago. Th is KUALA LUMPUR: Malaysia, Th ai- only be released by year end. So rubber in [the] construction and ber Export Promotion Council reveal is mainly due to higher contri- land and Indonesia, which together we have to wait and see,” he said. healthcare sectors. For example, that the price for SMR 20 grade has bution from its plantations in form the International Tripartite Malaysia currently has its own we can use natural rubber in road fallen to RM5.13 per kg on Nov 3, Indonesia and higher recogni- Rubber Council (ITRC), have set Malaysian Rubber Exchange, a unit and dam construction, and also 2014 from RM10.09 per kg on Jan tion of property sales, coupled an 18-month target to establish a under the Malaysian Rubber Board explore potential usage in rubber 26, 2010, while the price for TSR 20 with the progressive completion regional rubber market to strength- (MRB). However, the so-called ex- glove and latex bedding in govern- grade in Singapore has plunged to of development projects during en rubber prices, said Plantation change does not provide actual ment hospitals and clinics,” he said. US$163.50 (RM550.99) per kg on Nov the quarter. Revenue for 3QFY14 Industries and Commodities Min- trading, it only publishes the spot MRB director-general Datuk Dr 3 this year from US$300.50 per kg. grew 8% to RM370.5 million from ister Datuk Douglas Uggah Embas. price given by its price advisory Salmiah Ahmad, meanwhile, said “Rubber prices in Malaysia, Sin- RM342.5 million in 3QFY13. Speaking to reporters after chair- panel consisting of rubber com- the natural rubber production tar- gapore, Thailand and Indonesia Earnings per share (EPS) stood ing the high-level ITRC ministerial panies. get for 2014 has been revised down- have slumped, leading rubber tap- at 9.1 sen from 4.79 sen. committee yesterday, Uggah said Th e three countries currently ward to 700,000 tonnes from an pers to be on cautious mode, which In a fi ling with Bursa Malay- the regional rubber market will account for 67% of global natural earlier projection of 800,000 tonnes, in turn aff ects production fi gures,” sia yesterday, Genting Planta- as a platform for better price rubber production and 79% of the as smallholders are hesitant about said Salmiah. tions attributed the improved discovery and effective hedging global natural rubber exports. tapping rubber trees given the de- On the price outlook, Uggah said revenue to increased contri- functions that will bring benefi ts Uggah said the three countries clining rubber prices. the global natural rubber supply bution from the property seg- to producers, consumers and mar- have also agreed not to expand MRB data showed that Malay- and demand balance is improving, ment. It added that its Indone- ket players. new rubber planting areas beyond sia’s natural rubber production has beginning the fourth quarter of this sian plantation segment saw “Th e progress towards the es- targets set earlier to avoid “destabi- declined to 826,421 tonnes in 2013 year, on reduction of natural rub- higher fresh fruit bunch (FFB) tablishment of a regional rubber lising rubber prices” and to boost from its peak of 1.28 million tonnes ber supply and also the increase of production, which offset the market is on its way. At the mo- domestic rubber consumption by in 2006, while planted hectarage natural rubber demand due to the impact of lower crude palm oil ment, I am unable to disclose the 10% per year. has decreased to 105,727ha in 2013 substitution of synthetic rubber. (CPO) prices during the quarter. While CPO prices were low- er in 3QFY14, Genting Planta- tions said average CPO prices for the fi rst nine months of the Oil slide to slightly dampen Dialog’s profi t year (9MFY14) were 6% higher at RM2,472 per tonne from the same period a year ago. Net prof- BY SHALINI KUMAR Ngau: Low crude oil prices group’s prospects moving forward, it for 9MFY14 nearly doubled to may aff ect the upstream with growth in the second half (2H) RM239.6 million from RM122.7 KUALA LUMPUR: Dialog Group business slightly. However, of this year expected to be driv- million a year ago, while revenue Bhd does not expect falling oil pric- the midstream and en by activities at the Pengerang climbed 9% to RM1.06 billion es to have a dramatic impact on the downstream segments Terminal. from RM976.2 million. EPS rose oil and gas group’s earnings be- will be alright. Photo by In a note to clients on Wednes- to 31.4 sen from 16.18 sen. Th e cause ts business is spread across The Edge day, CIMB Research said it expects group’s FFB production saw 11% the three upstream, midstream operations of Phase 1A and 1B, and growth year-on-year for 9MFY14, and downstream sectors, said ex- more upstream contributions, to backed by strong output growth ecutive chairman Tan Sri Dr Ngau cation terminal project, Ngau said boost Dialog’s 2H performance. in Indonesia, while Malaysian Boon Keat. Phase 1B and 1C are expected to be “In addition to its own devel- production saw improvement. “Low crude oil prices may af- completed next month, although he opments in Pengerang, Dialog is Genting Plantations said its fect the upstream business slightly. is not expecting signifi cant contri- eyeing engineering, procurement, earnings in 9MFY14 were also However, the midstream and down- bution from the two phases in the construction and commission- boosted by an unrealised ex- stream segments will be alright,” coming year as operations would ing opportunities at Petroliam Na- change gained from the strength- he told reporters after the group have just begun. sional Bhd’s RM61 billion Refi nery ening of the rupiah against the annual general meeting yesterday. Construction on Phase 2 of the and Petrochemical Integrated De- US dollar. Th e company also said “Usually when oil prices are terminal will start in the middle of velopment project next door,” it said. its performance for the rest of down, transfer pricing to the down- next year and will be operational CIMB has an “add” call on the its fi nancial year will largely de- stream businesses is lower, which fi nancial year 2015 (1QFY15) from by end-2017. stock, with a slightly lower target pend on CPO prices, weather means there will be more money RM47.7 million a year ago. Phase 2 of Pengerang Terminal price of RM1.83 from RM1.85 pre- conditions in the major oil palm to allocate to its budget for main- Ngau also said the group is is being undertaken by Dialog with viously. growing regions, crop produc- tenance or expansion,” he said. “open” to making further acqui- an eff ective 25% stake, in partner- Dialog shares closed down tion, changes in the cost of in- Dialog posted a 4.7% increase in sitions as long as it provides an ship with Petronas Gas Bhd (65%) 0.67% at RM1.49 yesterday, giv- puts, currency exchange rates net profi t of RM49.9 million for the earnings boost. and the Johor government (10%). ing it a market capitalisation of and property market conditions. fi rst quarter ended September of On Dialog’s Pengerang regasifi - Analysts are bullish on the RM7.35 billion. “Th e group’s crop production for the full year remains on track to surpass the level achieved in the previous year, driven main- RHBCap 3Q earnings fall 3% on higher bad loan allowance, costs ly by growth in Indonesia, as young areas progress into higher yielding brackets and additional BY CHONG JIN HUN and net Islamic banking earnings RM764.01 million in 3QFY13. Looking ahead, RHBCap expects plantings mature over the course during the quarter. For the nine-month period the group’s FY14 performance will be of the year ... Of late, some of the KUALA LUMPUR: RHB Capi- RHBCap’s net profi t for the third (9MFY14), RHBCap’s net profi t rose better than FY13 after taking into ac- group’s estates in Peninsular Ma- tal Bhd (RHBCap), the country’s quarter ended September of fi nancial to RM1.55 billion from RM1.33 bil- count the domestic banking sector’s laysia have felt the lagged eff ects fourth-largest lender by assets, year 2014 (3QFY14) fell to RM544.61 lion a year ago. Revenue was high- growth trend. of the dry weather experienced in which is in the midst of a merger million from RM559.15 million a er at RM7.58 billion compared with “Th e Malaysian banking sector early 2014, and the impact may with CIMB Group Holdings Bhd year ago. Revenue, however, rose to RM7.06 billion. will continue its growth trend for the persist in the near term,” it said. and Malaysia Building Society Bhd RM2.72 billion from RM2.46 billion. For 9MFY14, RHB reported loan rest of the year, supported by broadly Th e group has lined up more to become the biggest, reported a Its income statement showed growth of 11.7% to RM136 billion resilient private investments and the off erings in Johor for the coming 3% fall in third quarter net profi t that bad loan allowance for from a year earlier, while customer various economic programmes driv- months for its property segment. on higher bad loan allowance and 3QFY14 climbed to RM94.22 mil- deposits rose 7.5% to RM148.1 billion. ing SME business growth, although The counter closed un- operating expenses. lion from RM29.87 million a year Impaired loans ratio improved this may be partially off set by some changed at RM10.46 yesterday, Th is comes despite the group reg- ago. Operating expenses were to 2.29% from 2.81% in December moderation in the household seg- with a market capitalisation of istering higher net interest income higher at RM840.88 million against 2013, according to the group. ment,” it said. RM8.05 billion. 10 HOME BUSINESS FRIDAY NOVEMBER 21, 2014 • THEEDGE FINANCIAL DAILY

Mercedes-Benz, NZ Wheels to Malton lines up RM1.2b build RM17m Autohaus in property launches for FY15 Kuantan KUALA LUMPUR: Mercedes- Benz Malaysia Sdn Bhd, together with one of its primary dealers, ‘Quite comfortable with current land bank, focused on delivering projects’ NZ Wheels Sdn Bhd, will build a new RM17 million Autohaus in Kuantan, Pahang. BY YEN NE FOO Batu Kawan land net profi t also rose 46.9% to RM52 laysia’s upcoming regional oil and Construction of the new million from RM35.4 million the gas hub.The Johor land is worth showroom facility in Jalan Teluk KUALA LUMPUR: Builder and will be progressively year before. RM500 million in GDV. Sisek is expected to begin next property developer Malton Bhd, developed over the Malton’s 1QFY15 ended Sept Ng said Malton is planning a month, with completion slated controlled by billionaire Datuk Des- next 10 years and any 30, 2014 fi nancial results, which township development there. Th e for the fourth quarter of 2015. mond Lim Siew Choon, has lined was announced on Nov 17, sug- fi rst phase of development will like- Th is marks the fi fth Mercedes- up three new property launches development on it gest that the low-profi le property ly include the sale of 60 units of Benz Autohaus for NZ Wheels. with a total gross development val- will likely start only developer is well on track to beat 2-storey shoplots in FY16. Th e re- “Mercedes-Benz Malaysia ue (GDV) of up to RM1.2 billion in FY16, subject to the FY14 numbers. maining land is planned for residen- has invested signifi cant amounts for the fi nancial year ending June For the quarter under review, tial and commercial developments. to develop a noteworthy dealer 30, 2015 (FY15), said its director of obtaining regulatory Malton’s net profi t more than tri- Malton also owns a 300-acre network, servicing customers in corporate fi nance Ng Chee Kiet. approval. pled to RM15.11 million, from tract of leasehold land in Batu Ka- Peninsular Malaysia, Sabah and They include phase 2 of the RM4.06 million in 1QFY14, while wan, Penang which it acquired in Sarawak,” Mercedes-Benz Malay- RM3.5 billion Bukit Jalil City pro- revenue was higher by 22.5% at 2012. This plot of land is ideally sia president and chief executive ject, which is a joint venture devel- RM111.59 million. Th is, though, was located near the exit of the Penang offi cer Roland Folger said in a opment with Ho Hup Construction partly boosted by the completion Second Bridge. statement yesterday. Co Bhd on a 50-acre (20.2ha) tract 1,140 units of serviced apartments of the disposal of parcels of land Ng said that the Batu Kawan land “We have also developed an of land. and 280 affordable apartments for RM35.7 million. will be progressively developed over iconic presence for the Mercedes- “We will be launching about worth RM900 million in GDV. On land bank expansion, Ng the next 10 years and any develop- Benz brand. Together with NZ four blocks or 525 units of serviced It will also kick off its Ukay Spring said the group is “quite comforta- ment on it will likely start only in Wheels, we are strengthening apartments by the end of fi rst quar- project in Ampang, comprising ble” with its current land bank of FY16, subject to obtaining regula- the brand, reinforcing unique ter of 2015 [1QFY15). There will semi-detached and linked houses over 600 acres and is not actively tory approval. experiences and quality services also be 38 retail lots [on off er]. Th e worth RM180 million in GDV. looking to purchase more. Th e potential of Malton’s new that last our customers a lifetime. estimated GDV for this phase is Ng said Malton aims to surpass “It [acquiring land bank] is just projects has also caught the atten- “With our long-standing part- RM600 million,” Ng told reporters the revenue and net profi t growth not a very urgent need right now be- tion of analysts. RHB Research said, nership with NZ Wheels, we will after the group’s annual general achieved in FY14 in this fi nancial cause we have enough land to keep in a note dated Sept 2, that it expects continue to reach new heights,” meeting yesterday. year with these new launches as us busy [for the next 10 years]. We Malton to chalk up RM500 million he said. Malton will also be launching catalysts. are more focused on delivering the to RM600 million in new sales for Aimed at transforming the 400 serviced apartment units at Malton ended FY14 with revenue projects we have now,” Ng added. FY15, double from about RM270 retail experience of customers its Nova Pantai project in Pantai of RM500.3 million, a 39.3% jump Of Malton’s total land bank, 200 million sales (excluding the en bloc in and around Kuantan, the up- Dalam, which has a GDV of RM400 from the RM359.2 million recorded acres are located in Pengerang, Jo- disposal of V Square in Petaling coming Autohaus marks the be- million. Th e entire project features in the previous fi nancial year. Its hor — an area designated as Ma- Jaya) in FY14. ginning of the refurbishment of the Mercedes-Benz network outside the Klang Valley. Once completed, the Mercedes-Benz NZ Wheels Au- Danajamin Nylex sees tough trading tohaus in Kuantan will be a full- fl edged sales, service and spare in RM420m parts (3S) centre. In addition, it environment over next 2 years will fulfil the standards of the second-generation Mercedes- fi nancing deal Benz Presentation System (MPS BY GHO CHEE YUAN off er lucrative opportunities. II), a benchmark of showroom for MRCB “Th ailand has a well-developed designs. KUALA LUMPUR: Nylex (Malaysia) economy, with a huge population The 2-storey Autohaus will Bhd expects a “challenging” trading base. In addition, it has many fac- have over 45,000 sq ft of display KUALA LUMPUR: Financial guar- environment for industrial chemical tories processing chemical products space, and can showcase eight antee insurer Danajamin Nasion- products over the next two years, into consumer products,” he said. vehicles. With 10 service bays, al Bhd has teamed up with CIMB amid increased competition from As for Vietnam, Siew said the po- the Autohaus will be operated Islamic Bank Bhd and RHB Is- China companies. tential lies in its huge population. by over 20 trained personnel and lamic Bank Bhd in a syndicated “Th e [industrial chemical] market However, he expects its economy will also feature Wi-Fi, and a cof- fi nancing worth RM420 million has been tough in the last few years to only pick up in the next fi ve to 10 fee bar and television to enhance for Malaysian Resources Corp Bhd as many cheap products have been years due to lack of economic stimu- customer comfort. (MRCB). coming out from the China mar- lus from the Vietnamese government. “Today we celebrate the be- Funds from the fund-raising ket,” its group managing director Siew: We are cautious about the market Meanwhile, Siew sees Nylex bene- ginning of another chapter here exercise, made through MRCB’s Datuk Siew Ka Wei told reporters [ahead]. fi ting from the ongoing RM60 billion in Kuantan, and it is a very proud wholly-owned unit Puncak Wan- after Nylex’s annual general meeting Refi nery and Petrochemical Integrat- moment for us as it is the culmi- gi Sdn Bhd, will be used to de- here yesterday. the industrial chemical and polymer ed Development (Rapid) project in nation of an ongoing eff ort to velop a 32-storey office build- “We are cautious about the mar- divisions. Siew said the group has Pengerang, Johor, which is expected further develop our premium au- ing in PJ Sentral, Petaling Jaya, ket [ahead],” he said. started expanding the production to give a boost to demand for indus- tomotive capabilities,” said Naza which will be leased to a leading On its part, Siew said the group capacity at its Surabaya plant in In- trial chemical products. Group of Companies vice-pres- mobile service provider upon is trying to preserve its earnings by donesia, with completion slated in “The manufacturing sector is ident of Four Wheels division completion. handling more products at the same the fi rst half of 2015. poised for a boom from the Rapid David Hector Ratnaike. Th e syndicated fi nancing com- cost and reduce unnecessary costs. “Th is plant expansion is part of project and it will spur the demand “As a business, we are driven prises a Danajamin-guaranteed “In addition, we must provide our long-term plan to have a strong- for chemical products to grow as the by the determination to provide RM200 million eight-year medi- more value-added services to our er presence in Indonesia where we project moves along,” he said. premium quality facilities and um-term notes (MTN) programme clients,” he said. expect better returns on investment,” Th is is credit positive for Nylex, together with Mercedes-Benz and a RM220 million Islamic term Nylex posted a net profi t of RM2.93 he said. Siew said the company will which distributes petrochemical and Malaysia, we will strive to off er loan facility provided jointly by million for the fi rst fi nancial quarter also be extending their footprint in industrial chemical products, Siew the best services possible.” CIMB Islamic Bank Bhd and RHB ended Aug 31, 2014 (1QFY15), up the Southeast Asia market, especially added. However, Siew declined to To date, NZ Wheels has in- Islamic Bank Bhd. 25.75% from RM2.33 million a year Vietnam, Indonesia, Th ailand and say how much the group will bene- vested a total of RM49.4 million In a statement, Danajamin said ago, on higher profi t contribution the Philippines. fi t from the project, except that the in its Mercedes-Benz Malaysia the fi rst tranche of the RM40 mil- from the industrial chemical division. “We are looking for new and profi t margin for chemical products dealerships in Peninsular Ma- lion MTN, rated AAA (fi nancial Revenue for 1QFY15, however, emerging markets for our business range between 3% and 10%. laysia. Mercedes-Benz has a total guaranteev), was successfully declined 13.93% to RM358.83 mil- expansion,” said Siew, adding that “Th e market is changing every- of 87 outlets providing sales and issued yesterday and fully sub- lion from RM416.95 million a year the group is studying the Th ai and day, and this is something I cannot after-sales services nationwide. scribed by investors. ago on lower contribution from both Vietnam markets which he thinks tell you,” he said. — Bernama

12 INVESTING IDEAS FRIDAY NOVEMBER 21, 2014 • THEEDGE FINANCIAL DAILY

STOCKS WITH LIKELIHOOD OF CORPORATE EXERCISE ATLAN HOLDINGS BHD FY12 FY13 FY14 LATEST 2QFY15 (ALL FIGURES IN RM MIL) 28/2/2012 28/2/2013 28/2/2014 31/8/2014 Income statement Atlan Holdings Bhd Turnover 666.5 732.8 758.4 175.2 EBITDA 187.1 141.9 151.3 22.7 ATLAN, the country’s largest duty-free re- the EPS of 8.34 sen earned in 1HFY15. If a Depreciation and amortisation 18.7 22.9 13.7 4.3 tailer, operates 36 outlets in Malaysia under similar performance is maintained, annual EBIT 168.4 119.0 137.6 18.4 the ‘ZON’ brand. It is also involved in the au- EPS could come in at 16-17 sen. And if this tomotive parts manufacturing and property performance is maintained going forward Associates 0.0 (0.1) 0.2 0.0 and hospitality industries. with up to 100% maximum payout, future Interest income 2.5 2.3 8.6 1.3 Th e company has rewarded shareholders dividends could revert to up to 15 sen per Interest expense 16.5 11.6 8.3 1.8 well with high dividends, but it is unclear if year, with a yield of about 3%. Extraordinary gain/(loss) (2.0) (0.8) 1.2 0.5 the policy is sustainable. Dividends for FY Feb Although Atlan’s turnover has been steadily Pre-tax profit/(loss) 152.5 108.8 139.3 18.5 2010–2013 ranged from 15–19.5 sen per share. increasing, net profi t has fallen from RM115.4 Net profit/(loss) - owners of company 115.4 76.0 206.4 10.3 In FY14, dividends surged to 65 sen, which million in FY12 to RM76 million in FY13 and Balance sheet translates to an above-average yield of 13.1%. RM71.8 million in FY14 (excluding excep- It should be noted that the large payouts tional gains). For 1HFY15, net profi t from Fixed assets - PPE 326.7 151.9 140.4 163.5 coincided with asset sales in FY14 which re- continuing operations declined from RM38.5 Biological assets 4.2 4.4 4.8 4.8 sulted in a large net gain of RM134.6 million million to RM21.2 million. As at 31 Aug 2014, Intangibles & goodwill 28.5 27.4 27.4 27.4 from discontinued operations. Th is relates net debt stood at RM51.4 million with a low Cash and equivalents 119.7 110.2 131.3 70.8 to the “ZON” complex and several parcels 10% net gearing ratio. Total current assets 442.3 618.1 557.8 438.3 of land in Johor, which was sold for RM325 Investors should note that Atlan’s stock ST borrowings 103.2 75.3 57.0 55.3 million and subsequently leased back by is illiquid due to its low public shareholding Total current liabilities 281.3 275.4 262.8 163.6 Atlan for 25 years. spread of 14.3%. It has proposed a private For FY15, Atlan has so far declared inter- placement of up to 38.05 million new shares, Total assets 614.6 609.6 624.3 596.6 im dividend totalling 25 sen — more than or 15% of its share base, by 31 December 2014. Shareholders’ fund 382.1 400.6 444.3 423.9 Long term borrowings 119.6 94.6 71.0 66.9

Valuation factor * 0.90 Fundamental factor ** 2.00 ATLAN HOLDINGS BHD FY12 FY13 FY14 ROLLING 12-MTH Trailing 12m P/E (x) 16.58 RATIOS 28/2/2012 28/2/2013 28/2/2014 Trailing 12m PEG (x) (0.27) DPS (RM) 0.14 0.20 0.65 0.70 P/NAV (x) 2.97 Net asset per share (RM) 1.51 1.58 1.75 1.67 Trailing 12M Dividend yield (%) 14.08 ROE (%) 32.94 19.43 48.86 16.90 Market capitalisation (RM mil) 1,260.64 ROA (%) 18.01 12.42 33.46 11.93 Shares outstanding (ex-treasury) mil 253.65 Turnover growth (%) (10.52) 9.96 3.49 4.67 Beta 0.09 Net profit growth (%) 282.21 (34.08) 171.45 (62.40) 12-month price range 4.19 - 5.00 Net margin (%) 17.30 10.37 27.22 9.92

*Valuation factor — Composite measure of historical return & valuation Current ratio (x) 1.57 2.24 2.12 2.67 **Fundamental factor — Composite measure of balance sheet strength & Gearing (%) 26.99 14.90 - 12.14 profi tability Note: A score of 3.0 is the best to have and 0.0 is the worst to have Interest cover (x) 11.35 12.19 18.20 17.79

BOUGHT DATE QUANTITY BOUGHT PRICE BOUGHT VALUE CURRENT PRICE CURRENT VALUE GAIN / LOSS GAIN / LOSS RM RM RM RM RM TONG’S Shares held: MOMENTUM PORTFOLIO Willowglen MSC Bhd 1-Oct 5,700 0.88 4,987.5 0.80 4,560.0 (427.5) (8.6%) Crescendo Corporation Bhd 1-Oct 5,100 2.82 14,382.0 2.78 14,178.0 (204.0) (1.4%) Willowglen MSC Bhd 17-Oct 11,000 0.75 8,195.0 0.80 8,800.0 605.0 7.4% Crescendo Corporation Bhd 17-Oct 3,000 2.72 8,160.0 2.78 8,340.0 180.0 2.2% STOCKS on Bursa Malaysia ended broad- ly lower Thursday, paring modest gains made just a day ago, in tandem with the fall in regional markets. The falling ringgit, rising inflationary expectations and poor financial results for plantation counters led the FBM KLCI to close 2.1 points lower at 1,822.29. Mar- ket breadth paints an even weaker picture ------with losers outnumbering gainers by near- Total 35,724.50 35,878.0 153.5 ly two-to-one. News of weaker China and Europe PMI Shares bought: data also dimmed the global economic out- No shares were bought today. look and kept investors on the sidelines. ------Commodities fared no better, although Total shares held 35,724.5 35,878.0 153.5 0.4% Brent crude prices steadied somewhat at US$78 per barrel ahead of the OPEC Shares sold: meeting next week. No shares were sold today. My portfolio value declined more than the FBM KLCI, with total returns down by Cash balance 67,334.4 0.95% to RM 103,212. The portfolio started on 8 July 2014 with Realised profits / (losses) 3,058.9 a capital of RM100,000. Since then, it has outperformed the FBM KLCI by 6.9%, and Total Portfolio Returns 100,000.00 103,212.4 3,212.4 3.2% has registered an annualised return of 8.6%. Annualised returns for portfolio 8.6% Total profits currently stand at RM 3,212. After selling my stocks on Wednesday, Portfolio Beta 0.724 I am now 36.8% invested in two shares, Risk adjusted returns for portfolio 11.9% which are Willowglen (-5.3%) and Cre- scendo(-1.1%). Performance Comparison Relative portfolio o u t p e r f o r m a n c e FBM KLCI At portfolio start: 1,892.7 Current: 1,822.3 Change (3.7%) 6.9% FBM KLCI Emas At portfolio start: 13,163.7 Current: 12,558.2 Change (4.6%) 7.8%

This is a personal portfolio for information purposes only and does not constitute a recommendation or solicitation or expression of views to influence readers to buy/sell any stocks. Portfolio started on 8 July 2014 with RM100,000. FRIDAY NOVEMBER 21, 2014 • THEEDGE FINANCIAL DAILY INVESTING IDEAS 13

INSIDER ASIA’S STOCK OF THE DAY SHL CONSOLIDATED BHD FY12 FY13 FY14 LATEST 1QFY15 (ALL FIGURES IN RM MIL) 31/3/2012 31/3/2013 31/3/2014 30/6/2014 Income statement SHL Consolidated Bhd Turnover 78.0 182.1 205.3 52.3 EBITDA 20.2 41.7 67.2 19.1 UNLIKE many property stocks, SHL Consoli- manufacturing plant with annual capacity of Depreciation and amortisation 1.8 2.4 2.2 0.7 dated Bhd is cash rich and pays good dividends, 144 million pieces. EBIT 18.5 39.2 65.0 18.3 with a yield of 4.8%. Th e company is expected Th e company has a solid balance sheet. As Associates 1.6 2.2 6.8 2.2 to benefi t from new launches at Bandar Sungai of 1Q2015, net cash stood at RM288.96 million Interest income 5.3 5.2 8.5 2.6 Long, Rawang Industrial Estate and Goodview or RM1.19 per share, equivalent to 32.9% of its Interest expense 0.2 0.2 0.2 0.0 Heights, Semenyih. current stock price of RM3.62. Extraordinary gain/(loss) - 1.0 - - SHL is primarily a property developer, but For FY2014, sales increased 12.7% to has also diversifi ed into supporting industries RM205.3 million while pre-tax profi t surged Pre-tax profit/(loss) 25.3 47.5 80.0 23.1 such as construction, quarrying and manufac- 68.4% to RM80.0 million. Investors should, Net profit/(loss) - owners of company 18.5 34.9 58.3 17.2 turing of bricks and aggregates. For FY March however, note that its sales have been erratic Balance sheet 2014, property development accounted for 92% over the last fi ve years, falling from RM249.5 Fixed assets - PPE 220.4 220.4 189.2 188.5 of sales and 79% of pre-tax profi t. million in FY2010 to RM78.0 million in FY2012 Biological assets - - - - Th e company owns a 160-acre golf resort, before recovering to RM205.3 million in FY2014. Intangibles & goodwill - - - - the centrepiece of its Bandar Sungai Long de- For 1Q2015, SHL recorded sales of RM 52.3 Cash and equivalents 162.1 193.2 306.7 290.5 velopment, located a 15 minute-drive from million, down 11.0%, but pre-tax profi t rose Total current assets 318.5 355.4 473.3 444.8 Kuala Lumpur City Centre. Th is development is 75.0% to RM23.1 million, due to better sales ST borrowings - - - 0.8 receiving increased interest following the build- at its Rawang project. Total current liabilities 24.3 46.3 110.6 83.5 ing of the MRT line, which has attracted more Th e stock is trading at a 12-month trailing P/E developers to the Southern Klang Valley area. ratio of 13.9 times and a P/BV of 1.47 times. Th e Total assets 603.5 620.5 649.6 649.8 SHL supplies its own clay bricks and gran- company paid dividends of 17.25 sen per share Shareholders’ fund 557.0 577.4 594.9 595.2 ites, and operates Malaysia’s largest clay brick in FY2014, translating into a net yield of 4.8%. Long term borrowings - - - 0.8 Valuation factor* 2.40 Fundamental factor** 2.70 Trailing 12m P/E (x) 13.90 SHL CONSOLIDATED BHD FY12 FY13 FY14 ROLLING 12-MTH RATIOS 31/3/2012 31/3/2013 31/3/2014 Trailing 12m PEG (x) 0.21 DPS (RM) 0.06 0.09 0.17 0.17 P/NAV (x) 1.47 Net asset per share (RM) 2.30 2.38 2.46 2.46 Trailing 12M Dividend yield (%) 4.76 ROE (%) 3.35 6.15 9.95 10.87 Market capitalisation (RM mil) 876.49 ROA (%) 3.08 5.7 9.19 10.07 Shares outstanding (ex-treasury) mil 242.12 Turnover growth (%) (59.01) 133.64 12.71 (1.06) Beta 0.45 Net profit growth (%) (32.39) 88.39 67.34 65.95 12-month price range (RM) 1.92 - 3.83 Net margin (%) 23.74 19.14 28.42 31.79

*Valuation factor — Composite measure of historical return & valuation Current ratio (x) 13.13 7.68 4.28 5.33 **Fundamental factor — Composite measure of balance sheet strength & Gearing (%) - - - - profi tability Interest cover (x) 113.56 247.95 427.92 499.62 Note: A score of 3.0 is the best to have and 0.0 is the worst to have

16 BROKERS’ CALL/TECHNICALS FRIDAY NOVEMBER 21, 2014 • THEEDGE FINANCIAL DAILY Unsteady and unsure index tone

BY LEE CHENG HOOI

merican stock mar- kets closed slightly lower on Wednesday after the US Feder- al Reserve meeting minutes showed someA policymakers were concerned that prices in the US economy are not rising fast enough. The market was expecting some inflection or change to interest policy direction. When there was no clear indication of future interest rate direction, American markets went into a prof- it-taking mode. The S&P 500 Index inched down 3.08 points to close at 2,048.72 points while the Dow lost 2.09 points to end at 17,685.73. Th e FBM KLCI index traded in a 1,805.15 (high), 1,759.66 (low), also issued a “Dead Cross” and the A check of the Bloomberg con- (like the CCI, DMI, MACD, Oscil- narrower range of 22.05 points for 1,882.20 (high), 1,769.80 (low), index prices are still below these sensus reveals that 11 research lator and Stochastic) have issued the week with slightly lower vol- 1,838.69 (high), 1,802.88 (low), two longer-term SMAs and below houses cover AAX. Of these, there is “sell”signals and now depict very umes of 2.11 billion to 1.41 billion 1,896.23 (high), 1,837.28 (low), the shorter-term 18 and 40 SMAs. a single “buy” call, four “hold” calls fi rm indications of AAX’s eventual shares traded. Th e index closed at 1,879.62 (high), 1,766.22 (low), Therefore, the recent rebound and six “sell” calls on the stock. Th is move towards much lower levels. It 1,822.29 yesterday, down 2.1 points 1,858.09 (high), 1,805.35 (low) and from the 1,766.22 low has obvi- company is currently loss-making would attract fi rm selling activities from the previous day as blue-chip 1,827.40 (high). ously stalled at 1,858.09. Th is has with its price-to-book value ratio at at the resistance levels of RM0.615, stocks like British American Tobac- opened up downside possibilities 1.68 times indicating a premium to RM0.69 and RM1. We expect AAX co (M) Bhd, CIMB Group Holdings for the index once again. its book value and its debt-to-eq- to witness weak buying interest at Bhd, Kuala Lumpur Kepong Bhd, Due to the uncertain tone for the uity ratio is at 161.5%. its support level and all-time low MISC Bhd, Petronas Dagangan Bhd KLCI, we are recommending a chart AAX’s chart trend on the daily, of RM0.61. Its downside targets and RHB Capital Bhd caused the “sell” on AirAsia X Bhd (AAX). AAX weekly and monthly time frames are located at RM0.56, RM0.43 index to decline on persistent sell- recently announced its third quar- is very fi rmly down. Its share price and RM0.35. ing activities. Most of the index’s daily signals ter of fi nancial year 2014 (3QFY14) made a decline since its major Th e index rose on a rally from have turned negative (except Sto- results. According to our funda- weekly Wave-2 high of RM1.23 in the 801.27 low (October 2008) to chastic) recently. As such, the in- mental analyst, the 3QFY14 core August 2013. Since that RM1.23 Lee Cheng Hooi is the regional the previous 1,826.22 all-time high dex’s weaker support levels are seen net loss was greater than estimated high, AAX fell to its November 2014 chartist at Maybank Kim Eng. (May 2013) and it represents an ex- at 1,766, 1,805 and 1,817, while the by the industry. Th e disappointing all-time low of RM0.61. The views expressed in the arti- tended Elliott Wave “” rebound resistance areas of 1,822, 1,858 and result was attributed to low yields As prices broke below their recent cle are the opinions of the writer in a “Pseudo-Bull” rise completed. 1,896 would off er very heavy liqui- due to overcapacity which AAX will key critical support levels of RM1 and and should not be construed as Th e next few months’ index price dation and profi t-taking activities. reduce its capacity growth in FY14 RM0.69, look to sell AAX on any re- investment advice. Please exercise movements since May 2013 were The KLCI’s 18 and 40 simple to FY16 by deferring and selling bounds to its resistance areas as the your own judgment or seek profes- trapped in a rangy consolidation moving averages (SMA) depict a aircraft. Our analyst has an un- MAs depict very fi rm short- to medi- sional advice for your investment with key swings of 1,723.74 (low), downtrend for its daily chart. In changed “sell” call on AAX with a um-term downtrends for this stock. decisions. Technical report appears 1,811.65 (high), 1,660.39 (low), addition, the 50 and 200 SMA have RM0.57 target price. Th e daily and weekly indicators every Wednesday and Friday.

MSM’s 3Q gross margin dampens AirAsia’s 4Q earnings expected on higher raw sugar cost to surge on lower fuel price MSM Malaysia Holdings Bhd (Nov 20, RM4.94) Retain “hold” with a target price of RM4.90: MSM Malaysia Holdings AirAsia Bhd to 15.5 sen and grew +2.0% y-o-y, weakening being passed through booked RM48 million in net profi t in the third quarter of nancialfi year (Nov 20, RM2.42) signifying stabilising yield trend to consumers, resulting in +27% 2014 (3QFY14) (-35% year-on-year [y-o-y]; -39% quarter-on-quarter Maintain “buy” with a target price amidst rational competition. Th e y-o-y surge in Rask. AirAsia will be [q-o-q]), taking its nine months of FY14 (9MFY14) profi t to RM182 (TP) of RM2.94: Adjusting for the load factor was fl attish at 76% with taking delivery of 13 Airbus aircraft million (-20% y-o-y). Th is is in line with 77% of our and consensus unrealised forex loss of RM103 mil- slight +1% y-o-y growth in available in FY15. It has proposed to switch full-year estimates. lion, AirAsia posted third quarter seat kilometre. Cost per available four of its orders to A320neo while Its 3QFY14 revenue grew 3% y-o-y to RM560 million, as a 4% in- of financial year 2014 (3QFY14) seat kilometre (Cask) grew +3% another four will be put up for sale. crease in sales volume was tempered by a 1% drop in average selling core net gain of RM119 million, y-o-y to 12.8 sen despite lower aver- AirAsia and TAA will be taking de- price (ASP). Gross margin fell to 16% in 3QFY14 (-9 percentage points a -24% year-on-year (y-o-y) de- age jet fuel price of US$117 (RM394) livery of one and four aircraft re- [ppts] y-o-y; -8 ppts y-o-y) due to higher raw sugar cost. MSM took cline. Sequentially, earnings im- per barrel (-13% y-o-y) realised. Th e spectively. In FY16 and FY17, 18 delivery of three shipments of raw sugar under the more expensive proved strongly from RM26 million ancillary income grew +15% y-o-y aircraft for each year will be deliv- long-term contract (LTC) arrangement in the quarter. Th is nudged up in 2QFY14. to RM47 per pax. ered to AirAsia. the share of LTC sugar to about 50% of its requirement in the quarter The nine months of FY14 Th ai AirAsia’s (TAA) losses wid- Given the uneven recovery pace (vs 40% in a typical quarter). (9MFY14) core net profi t of RM271 ened in 3QFY14 to RM17 million of the yield base and lower average MSM will be free to acquire its own raw sugar once the current LTC million accounted for 51% and 53% compared with RM13.8 million in jet fuel price, we reduced our FY14 expires. Th is could introduce volatility to its cost structure, but mar- of our and consensus full-year 2QFY14 due to wider gap between earnings estimate by -13% but kept gins can only get better from here.Th e retail sugar price is set based forecasts respectively (historical- Rask and Cask amidst capacity ex- our FY15 forecast unchanged. We on the cost of raw sugar of 26 US cents/lb (80 sen) vs recent raw sugar ly, 9MFY14 constitutes 55% to 60% pansion. Th e dampened travel de- take the view that the domestic prices of 15 to16 US cents/lb. Gross margins will improve if the cur- of full-year estimates). However, we mand from political instability led aviation sector has seen its worst rent ASP and raw sugar price are maintained next year. view earnings as being only slight- to the decline in average fare. Th e and is now on a recovery phase Th e proposed sugar refi nery at Port of Tanjung Perlepas, Johor could ly below our expectations as we Indonesian associate was the best with competition intensity lessen- help MSM to turn into a strong regional player. Th e plant will be able expect 4QFY14 earnings to surge, performing associate. PT Indo- ing and lower fuel price going for- to process two million tonnes of sugar per annum and processing cost benefi ting from a lower fuel price nesia AirAsia achieved marginal ward. Hence, we retain our “buy” is expected to be 30% to 35% cheaper than the group’s current cost. and recovery in yield. break-even of RM0.2 million in recommendation on AirAsia. Our We retain our “hold” rating with a TP of RM4.90, based on 14 times Th e 3QFY14 revenue per availa- 3QFY14 compared to a net loss of valuation is premised on 10 times FY15 forecast earnings per share (its mean price-earnings ratio val- ble seat kilometre (Rask) inched up RM46 million in 2Q14. Th is was due FY15 price-earnings ratio. — MIDF uation since listing). Th e share price will be supported by 4% to 5% +0.7% quarter-on- quarter (q-o-q) to cost infl ation from the rupiah’s Research, Nov 20 dividend yield. — AllianceResearch, Nov 20 FRIDAY NOVEMBER 21, 2014 • THEEDGE FINANCIAL DAILY BROKERS’ CALL 17

Kian Joo on a better footing Kian Joo Can Factory Bhd (Nov 20, RM3.00) AMMB sees better Retain trading buy with target price of RM3.30: Kian Joo Can Factory’s revenue for the cans division slipped a marginal 0.5% owing to a reduction in exports of its dry food cans and dairy product cans in Vietnam. Pre-tax profi t (PBT) fell a sharper 23.8% year-on-year (y-o-y) due to higher utility, labour and materials 2Q, but not enough costs and the additional retirement benefi t provision. Th e cartons division saw a 33.1% y-o-y decline in PBT, due to reduced sales margins, higher operating costs and start-up loss- es of its new plants in Hanoi, Vietnam, and Senai, Johor, which AMMB Holdings Bhd AMMB Holdings Bhd amounted to RM5.9 million. Revenue growth was a robust 20% (Nov 20, RM6.58) owing to strong demand from customers in the footwear and Maintain hold with target price FYE MAR (RM MIL) 2014A 2015E 2016E 2017E beverage sectors in Vietnam, in addition to numbers from the of RM6.72: AMMB Holdings’ net Pre-tax profit 2448 2402 2629 2875 new plants. profi t for the second quarter ended Rpt net profit 1782 1732 1909 2094 Since our recent note on Nov 17 and the “trading buy” call, Kian September of financial year 2015 Joo’s share price has popped up 9.4% to a recent high of RM3.14 (2QFY15) of RM445.8 million (-17.1% Norm net profit 1782 1732 1909 2094 before settling at the current RM3 (+4.5%) after the Kuala Lum- quarter-on-quarter [q-o-q]; +1.1% Norm EPS (sen) 59.1 57.5 63.3 69.5 pur High Court struck out Datuk Anthony See’s lawsuit against year-on-year [y-o-y]) took core net PER (x) 11.0 11.3 10.3 9.4 the company, which essentially clears the way for Aspire Insight profit (excluding RM208 million P/BV (x) 1.5 1.4 1.3 1.2 Sdn Bhd to proceed with its proposed takeover, shareholder ap- profi t from the sale of its life insur- Div yield (%) 3.7 3.5 3.8 4.3 proval notwithstanding. ance arms to MetLife in 1QFY15 and ROE (%) 14.1 12.7 12.9 13.1 Th ere’s still the issue of an injunction barring the calling of RM76 million merger-related cost any shareholder meetings until the resolution of that earlier law- ROA (%) 1.4 1.3 1.4 1.5 with the bulk recorded in 1QFY15) suit, which is expected to see case management on Nov 24, being to RM851.1 million (-5.7% y-o-y) for Book value (RM) 4.36 4.71 5.09 5.50 largely academic given the recent court decision. the fi rst half (1H) of FY15, account- Source: HLIB Keeping the faith, which will certainly take some doing given ing for only 43.4% of Hong Leong investor fatigue (not to mention analyst fatigue, as we are now the Investment Bank (HLIB) and 47.4% 50% (of expected full year payout) against 9% and FY16/FY17 KPIs (Pat- last one standing in continuing coverage on the stock). We con- of consensus, below expectations. for 1H and 2H, respectively. ami growth 6% to 10% against 9% to tinue to believe in the fundamental value of the company. If the AMMB had a contraction in its Th e stronger 2Q is attributed to 11%; ROE of 14% against 14.5% to proposed transaction materialises, we’ll have a certain RM3.30 loan growth (more cautious stance), lower overheads (although it expects 15.5%). Th e only positive change was per share in our pockets (netting a gain of 30 sen or 10%). If not, sharp contractions in net interest 2H to be similar to 1H from regulatory to lower FY15 credit cost to 15 basis we will still see that value materialising, but over the longer term, margin (especially in 1Q with 60% of and core system costs) and lower pro- points (bps) against 30bps. as it remains imperative for parent-company Can-One to squeeze the drop attributed to the life insur- vision (as a result of its eff orts to only AMMB is comfortable with its out further operational improvements (and essentially stronger ance deal and one-off s), and con- accept high quality loans, especially capital position and working on an earnings, thereby increasing its intrinsic value) from Kian Joo for tinued weak non-interest income. hire purchase [HP] and commercial internal ratings-based (IRB) ap- greater dividend income. Despite a stronger performance in property loans). Loan growth will proach which would normally result Kian Joo’s net profi t for the first nine months of fi nancial year 2Q, it was still not suffi cient to off set track behind the industry average in more effi cient capital requirement 2014 (9MFY14) of RM85.3 million made up only 64% of our pre- the weak 1Q and meet our earlier due to the ongoing rebalancing of but with implementation in three vious full-year estimates (which did not account for the one-off expectations. AMMB declared an HP and commercial property loans. years’ time. We maintain “hold” with retirement provision we estimate to be more than RM10 million), interim dividend of 12 sen (against Lower FY15 key performance in- target price cut to RM6.72 (RM7.77 but which would have otherwise still fallen short in meeting only 7.2 sen in 2QFY14). Despite the dicators (KPIs) include: (i) profi t after previously) based on the Gordon 69% of forecasts. higher dividend, it is not changing tax and minority interests (Patami) Growth Model (ROE of 12.8% and In light of continued operational challenges, we are lowering its policy of 40% to 50% but rather growth of 8% against 10%; (ii) return weighted average cost of capital of our FY14 to FY16 estimates to between 12% and 14% to account altered the payment proportion on equity (ROE) of 14% against 14.2% 10.9%) post earnings forecasts down- for the one-off expense (FY14) and lower capacity utilisations from one-third and two-thirds to to 14.5%; and (iii) loan growth if 3% grade. — HLIB Research, Nov 20 given weaker demand regionally. With the stock continuing to capture the imagination amid sporadic trading interest, we see opportunities, particularly on market weaknesses, and retain our “trading buy” call with an un- KLK facing ‘resistance for further changed target price of RM3.30. — PublicInvest Research, Nov 20 rise in CPO prices’ MRCB to the fore with second win Malaysian Resources Corp Bhd (Nov 20, RM1.49) Kuala Lumpur Kepong Bhd Kuala Lumpur Kepong Bhd Maintain buy with fair value of RM2.20: MRCB announced on (Nov 20, RM22.36) Bursa Malaysia on the evening of Nov 19 that it had secured a Downgrade to add with target price FYE SEPT 30 (RM MIL) 2012 2013 2014E 2015E 2016E RM141 million contract from Desaru Peace Holdings Villas Sdn of RM23.04: KLK’s headline net profi t Revenue 10,570.2 9,147.3 9,336.5 9,788.7 10,264.1 Bhd in Kota Tinggi, Johor. for the fourth quarter ended Septem- Th e contract is for the duration of 87 weeks with date of site pos- Ebitda 1,820.4 1,539.7 1,895.7 2,171.7 2,541.7 ber of fi nancial year 2014 (4QFY14) session within three weeks from the date of acceptance. Th e scope declined year-on-year (y-o-y) and Pretax profit 1,560.4 1,199.8 1,530.9 1,784.5 2,137.2 of works is for: (i) the construction and completion of central facil- quarter-on-quarter (q-o-q) mainly Net profit 1,211.2 917.7 1,104.0 1,298.6 1,568.7 ities, conference centre, spa, car park, meeting and events rooms, due to a loss recorded by manufactur- EPS (sen) 113.5 86.0 103.4 121.6 147.0 back of house facilities and related supporting facilities (excluding ing, attributable to reduced margins, PER (x) 17.6 23.3 19.3 16.4 13.6 structural works); (ii) 46 units of Club Suites (excluding structur- write-down of stocks, an unrealised Core net profit 1,067.1 929.6 1,104.0 1,298.6 1,568.7 al works); (iii) two units of prototype villas (excluding structural loss on derivative contracts and a loss Core EPS (sen) 100.0 87.1 103.4 121.6 147.0 works); and (iv) a beach club, a recreational club, remote back of on oleochemicals. house and overall infrastructure works. Core EPS growth (%) (27.1) (12.9) 18.8 17.6 20.8 KLK’s 12-month (12M) FY14 Th e award represents the second construction win for MRCB headline net profi t increased by 8% Core PER (x) 20.0 23.0 19.3 16.4 13.6 in fi nancial year 2014 ending December (FY14) after it secured y-o-y due to higher profi t from plan- Net DPS (sen) 65.0 50.0 70.0 70.0 70.0 another building job in Johor worth RM197 million last month. tations, partially off set by lower con- Dividend yield (%) 3.3 2.5 3.5 3.5 3.5 Th is takes the value of MRCB’s new jobs win for the current tributions from manufacturing and EV/Ebitda (x) 11.8 14.2 11.8 10.3 8.8 year-to-date to about RM338 million. We make no changes to our properties. In plantations, better av- Change in EPS (%) - - 0.0 0.0 0.0 earnings forecast as the new contract already forms part of our erage selling prices (ASP) for crude Affin/consensus (x) - - 1.0 1.1 1.2 new order book assumptions MRCB’s prospects are perking up as palm oil (CPO) and palm kernel (PK), its restructuring eff orts start to bear fruit. With momentum on its reduction in production costs and Source: Company, Affin Hwang estimates, Bloomberg side, we understand that MRCB’s active tender book consists of increased sales volume more than several jobs in excess of RM100 million each. off set the negative contribution from cast of 70 sen. Dividend payout is “buy” to “add”. High fresh fruit bunch To be sure, the group has reportedly pre-qualifi ed to bid for the refi neries and lower rubber prices. maintained at around 60%. production growth will also drive the RM800 million Kepong waste-to-energy incinerator project. Adjusted for one-off items, Management commented that long-term fundamentals of KLK. Key We envisage more net asset value (NAV) upside moving into 12MFY14 core net profi t amounted the impending large US soybean downside risks include:(i) economic FY15F via the following: (i) future development profi ts from PJ to RM1.077 billion, which is within harvest and low crude oil prices slowdown cutting prices of vegetable Sentral and Kwasa Damansara; (ii) potential monetisation of its our forecast of RM1.104 billion and are putting “a resistance for further oils and crude oil; (ii) high produc- prime commercial assets at KL Sentral, starting with Platinum consensus average of RM1.11 bil- rise in [CPO] prices”. tion of vegetable oil and/or changes Sentral; (iii) Penang Sentral (piling has commenced); and (iv) se- lion. A net dividend per share (DPS) Th e stock price has rebounded in rules and regulations; and (iii) for- lective construction bids. of 55 sen has been declared, which signifi cantly from the low in Octo- eign exchange losses due to currency We maintain our “buy” call on MRCB with an unchanged fair is higher than the 50 sen paid in ber this year and at the current price, weakness in key operating countries. value of RM2.20 per share, a 20% discount to its revised sum-of- 12MFY13 but lower than our fore- the stock rating is downgraded from — Affi n Hwang Capital, Nov 20 parts value. — AmResearch, Nov 20 18 HOME FRIDAY NOVEMBER 21, 2014 • THEEDGE FINANCIAL DAILY

PAS lawmaker submits petition to Azmin vows stern debate Sedition Act in Parliament BY EILEEN NG

KUALA LUMPUR: Shah Alam MP Khalid Samad (pic) has action over breach submitted a petition to Parlia- ment to debate the contentious Sedition Act after Putrajaya toned down its intention to do away with the legislation and in payouts embarked on a sedition blitz against critics. The PAS lawmaker ex- pressed hope that Speaker Tan Ex-MB said it was a “voluntary separation mechanism” Sri Pandikar Amin Mulia would allow the issue to be debated off ered to his aides after question time on Monday. “The petition carries the signatures of 3,005 people re- KUALA LUMPUR: Selangor Men- Azmin said an audit questing Parliament to urge the teri Besar Mohamed Azmin Ali showed a breach of federal government to repeal has warned stern action after an process whereby the the Act and drop all charges audit showed a breach of proce- money was transferred under that law,” he said at the dure in the RM2.6 million sever- in a short period of time. Parliament lobby yesterday. ance payouts to the former aides Photo by The Malaysian On the same day, a few hun- of his predecessor, Tan Sri Abdul Insider dred people were expected to Khalid Ibrahim. march from nearby Padang Azmin was reported as saying He also said the payments were Merbok to Parliament to hand The petition carries yesterday that the next course of approved by MBI’s board of direc- over a memorandum calling the signatures of 3,005 action would be determined by the tors, which comprised him, the for the law to be repealed. new management of Menteri Besar state secretary and state fi nancial Th e signatories in the peti- people requesting Incorporated (MBI) after they are offi cer, as well as the state execu- tion protested against the use Parliament to urge the to be sworn in early next month. tive councillors. of the “cruel” and “undemo- federal government The audit on the payouts The four PAS exco members cratic” legislation which has a showed a breach of process where- who served under Khalid in his wide interpretation and hence, to repeal the Act and by the money was transferred in a last days as MB said they were not allowed its easy abuse. drop all charges under short period of time. aware of the RM2.6 million “golden Putrajaya is still mulling that law On Sunday, he said that the handshake” to his aides, nor had over whether to keep the Se- state’s audit department found they endorsed it. dition Act or replace it alto- elements of wrongdoing in the RM2.27 million in compensation Th e four, it was reported, were gether, saying it has yet to draft payout. and RM376,000 in lieu of three taken by surprise by the quan- any new law despite the Prime “Results from the investigation months’ notice to his eight mem- tum, which was approved by the Minister Datuk Seri Najib Razak’s promise to do so two years ago, showed there were a few matters bers of staff . MBI board. and again in September. that were not adhered to regard- Khalid reportedly said he was Th e four PAS lawmakers who Th e government had pledged to listen to all views after Malay ing the payouts, and the large ex- unaware that exorbitant severance formed Khalid’s exco were Dr Ah- rights groups, Umno leaders and certain segments of the public traordinary amount needs to be payments were made to them, but mad Yunus Khairy, Iskandar Ab- insisted that sedition laws should remain and that they would looked into again.” said that it was a “voluntary sepa- dul Samad, Dr Halimah Ali and withdraw support if it was repealed. It was alleged that Khalid made ration mechanism” off ered to staff Sallehin Mukhyi. — Th e Malay- In September, the Prime Minister’s Offi ce (PMO) said the At- severance payments worth some after the change of menteri besar. sian Insider torney-General’s Chambers would draft the National Harmony Act only after principal and basic issues were decided. “Any draft laws prepared by groups other than the Attor- ney-General’s Chambers are not valid and cannot be accepted,” the PMO said in a statement. Don’t equate moderation with Putrajaya in recent months embarked on a sedition blitz against opposition leaders, a journalist, an academic, activists and two ulama in an attempt to silence dissent. liberalism, says Chandra Th is caused critics to accuse the prime minister of back-ped- alling on his pledge to repeal the law. — Th e Malaysian Insider

BY MOHD NOOR FIRDAUS cultural values practised in the MOHD AZIL country. Workers not paid minimum wage Through wasatiyyah, The government had recent- KUALA LUMPUR: People should we have learned to ly rejected the notion by some can go to Labour Dept not equate the wasatiyyah concept think and act wisely who equated moderation with (moderation) with liberalism be- liberalism. KUALA LUMPUR: Workers who have yet to receive the min- cause both are different entities without being extreme, Chandra stressed the impor- imum wage that was implemented in January this year have said political analyst Dr Chandra too rigid or overly tance of moderation, adding that the right to claim for such payment from their employers, said Muzaffar. liberal there should be peaceful coexist- Deputy Human Resource Minister Datuk Ismail Abd Mutallib. Chandra, who is the chairman ence and mutual respect among He told the Dewan Rakyat that the complaint could be of the Board of Trustees of the people, irrespective of whether made at the Labour Department, which could investigate and 1Malaysia Foundation, said mod- they are of the same race or re- take action. eration was the best approach to He said Malaysia facing chal- ligion. “If the employer fails to prove that mimimum wages have tackle issues related to liberalism lenges to practise wassatiyyah in The government practises the been paid to the workers, an order will be issued to the em- because if left unchecked, it has terms of economic progress and wasatiyyah formula that is inclu- ployer to pay the outstanding wages claimed,” he said when the potential to lead to extremism. freedom of human rights, as it sive of moderation, balance and replying to Abdullah Sani Abdul Hamid (PKR-Kuala Langat) “Wasatiyyah or ‘moderation’ involves public order. excellence to bring about devel- during the question-and-answer session. is the middle path ... it can be “Liberalism is a western phi- opment and transformation to Ismail said up till Oct 31, 970 claims relating to the failure termed as an effort to balance the losophy from Europe that started the entire community based on of employers to fulfi l the minimum wage order were received values and find a way that can be in the 18th century and empha- the principles of Islam. nationwide. accepted by all in the context of sises freedom for individuals, in He said the wasatiyyah concept Meanwhile, Deputy Plantation Industries and Commodities a multiracial society. this context to voice out, through was important to reject fanatical Minister Datuk Noriah Kasnon said the government through the “Through wasatiyyah, we have a gathered forum or rally, among understanding and extremism. Malaysian Palm Oil Council would implement several meas- learnt to think and act wisely with- others,” he told Bernama yesterday. Chandra said it was important ures to study and take legal action in the Commercial Court out being extreme, too rigid or He said it would be wrong for for the people to understand the in any country that practised discrimination against palm oil. overly liberal. We are taught not the people to consider liberalism aspiration of the government to “For example, labelling certain food with ‘No palm oil’ will to be a fanatic or to be so obsessed as the sole value that cannot be give importance to wasatiyyah, bring about negative impact,” she said when replying to a sup- that we close our minds to other questioned because it had ele- because it was more applicable to plementary question from Idris Ahmad (PAS-Bukit Gantang). views, thoughts and opinions,” ments of freedom that differed the socio-economy and geopol- — Bernama he said. completely from the religious and itics of the country. — Bernama FRIDAY NOVEMBER 21, 2014 • THEEDGE FINANCIAL DAILY HOME 19

Pahang ruler regrets report about Bangladeshis

BERNAMA CAMERON HIGHLANDS: Sultan erroneous. We should not talk with- Land Offi ce in Tanah Rata. Meanwhile, he said the state gov- Ahmad Shah (pic) yesterday ex- out verifying the information. Don’t Also present were Pahang Ment- ernment would work hard to resolve pressed his regret over a news re- frighten my people, especially in eri Besar Datuk Seri Adnan Yaakob the issue of illegal immigrants not port claiming that Cameron High- Cameron Highlands. and other state leaders. only in Cameron Highlands but also lands had been overwhelmed by “Th e landslide report and then the Th e Sultan also hoped the news- other districts in the state. 30,000 undocumented Bangla- front page about Cameron Highlands paper concerned would not repeat On federal government support to deshis. being overwhelmed by Bangladesh- such rash action, and that the me- help fl ush out the illegal immigrants, Th e Pahang ruler said the report is; that scared even me,” he told re- dia would first seek verification he said he would meet and discuss was inaccurate. porters after attending a briefi ng at from the relevant authorities prior the issue with Prime Minister Datuk “It is not true, not 30,000, that’s the Cameron Highlands District and to publishing such reports. Seri Najib Razak. — Bernama

Special unit to be formed to Resign, Vell Paari tells deal with insults against Islam

KUALA LUMPUR: Th e Depart- MIC chief Palanivel ment of Islamic Development Malaysia (Jakim) will work with State Islamic Religious Depart- ments (Jain) and the Malaysian Accuses minister of not taking any action to solve Bertam Valley mudslides Communications and Multi- media Commission (MCMC) to form a special unit to monitor KUALA LUMPUR: MIC president is shared by many in the party.” ing the Sultan of Pahang’s visit to insults against Islam. Datuk Seri G Palanivel is facing Early this month, an MIC central Cameron Highlands on Wednes- Minister in the Prime Min- growing calls for his resignation, working committee member, Datuk day when the MP was not present. ister’s Department Datuk Seri this time from the party’s strategic Henry Benedict Asirvatham, also “It is common knowledge that Jamil Khir Baharom said the director, Datuk Seri S Vell Paari. criticised Palanivel for his choice the MIC president is absent-mind- unit would focus on the new Vell Paari made the call after the of candidates in the last general ed and experiences bouts of severe media. Sultan of Pahang Sultan Ahmad election for Penang. fatigue. His condition has given “Jakim and Jain would Shah, lashed out at Palanivel, who is Saying that MIC, a party with a room to some people to infl uence convey any information con- the Cameron Highlands MP, for not rich and long history of represent- as well as exploit him and dictate cerning insults to Islam to the addressing the problems plaguing ing the Indian community, had lost the direction of the party. MCMC to stop it from being the tourist spot. support and standing, he said the “Th is must end. Th e writing is spread further. Th e ruler also accused Palanivel, party needed a new president. on the wall.” “In 2013, a total of 38 web- who is the Natural Resources and Meanwhile, Vell Paari said yes- He added that during the last sites which insulted Islam Environment Minister, of not taking terday, at this stage, MIC was in dire party elections, for the same reason, were blocked by MCMC,” he any action to solve the problem of Vell Paari: Some people are claiming need of rejuvenation and a dynam- many party members had want- said in reply to an oral ques- mudslides in the Bertam Valley fol- that [there will be] another major swing ic leadership in order to keep the ed a showdown in the president’s tion from Mohd Fasiah Mohd lowing a similar incident last year in Indian votes towards the opposition, party relevant in a rapidly chang- election but Prime Minister Datuk Fakeh (BN-Sabak Bernam) in in which four people died. including disgruntled MIC members. ing Malaysian political landscape. Seri Najib Razak overruled them. the Dewan Rakyat. Vell Paari said it was dishearten- “We need a leader who can rise “Th e PM’s intention of preserv- Mohd Fasiah wanted to ing to read in yesterday’s newspa- up to the challenges ahead of us,” ing stability in the party was noble know what steps had been tak- pers about the Sultan admonishing Known for his outspokenness he said. but it has now become a problem. en by Putrajaya to block sedi- the MIC president. against his party leadership, Vell He said that many in MIC sus- “Some people are claiming that tious actions, and insults to Is- “Perhaps the time has come for Paari insisted that his remark was pected that Palanivel, was unwell [there will be] another major swing lam and Prophet Muhammad the MIC president to retire from not a plot to oust the MIC president. thus making it diffi cult for him to in Indian votes towards the oppo- among non-Muslims, leading politics,” he said in a statement “It is a case of simply stating the discharge his duties eff ectively. sition, including disgruntled MIC to tensions in society. — Ber- yesterday. facts. And I am certain that my view Th is, he said was evident dur- members.” — Th e Malaysian Insider nama

Pakatan has to convince businessmen, Malays it will be fair to them, says ex-editor

KUALA LUMPUR: Pakatan Rakyat the 2008 general election (GE). that it would be fair to them. omy, it would almost certainly get intra-party squabbles. PAS lost will have to convince the private “But if Pakatan chooses to be “The situation in the Paka- to keep Selangor and Penang, and in the last GE due largely sector, including businessmen, that vengeful, it risks angering the Ma- tan-ruled Selangor and Penang is a may even win other states and ulti- to factional rivalries,” he said. they will be treated fairly if the oppo- lays and losing their support. And fair indicator. Was there a Malay re- mately the country,” he reiterated. Th e nine-month MB saga had sition coalition wanted to take over this cannot be good as the Malays volt in these states since the Pakatan “Pacifying and allaying the fears threatened to break up the loose- Putrajaya, a veteran journalist said. form the majority and they control gained power in 2008?” he asked. of Malays are a must because they ly-held Pakatan coalition after PAS Datuk A Kadir Jasin, former group the key elements of the govern- “Except for the BN-linked Malay are the majority and they control continued to back former MB Tan editor of the New Straits Times, said ment,” he warned. business community, the rest of the key elements of the government Sri Abdul Khalid Ibrahim, who re- that should Pakatan win, business- Kadir also said that BN was left the Malays appear to have accept- — the civil service, the police and fused to step down from his position men will rally around the new ad- with one remaining weapon to keep ed Pakatan. In Penang, where the the military. No government can despite being ordered to do so by ministration for “safety and survival”. the Malays by its side — fear factor. DAP leads, the remaining holdouts change these overnight.” his party, PKR. “The businessmen, including “Th e bumiputeras, in particular are not Malays but Indian Muslims. He added that Pakatan stood a Th roughout the crisis, DAP stood those who gain massively from the the pro-BN Malays, fear that they Th e Indian Muslims, he said, are very good chance at wrestling Putra- by PKR’s decision to replace Abdul Umno-BN (Barisan Nasional) gov- would lose their rights and priv- aff ected by the state government’s jaya from the BN-led administration Khalid with Datuk Seri Dr Wan ernment, will shift their loyalty if ileges and the minority Chinese policies and programmes, hence because of these factors unless BN Azizah Wan Ismail, and was at- they are fairly treated,” he wrote in would dominate the government their vocal criticism. goes through a credible transforma- tacked by several PAS leaders over a blog posting yesterday. in addition to the economy that He also hit out at the BN as- tion and Umno regains the trust of its role in the issue. Th e crisis was “[Th ey] may even be willing to they already control. sembly representatives in Paka- the Malays. fi nally resolved when PKR deputy make concessions and renegotiate “Fear of the Chinese was one of the tan-ruled states, saying they run However, Kadir also noted that president Mohamed Azmin Ali was contracts they obtained from the for- key reasons why the Malays returned the risk of being seen as weak and despite its good chances and the fact sworn in as MB on Sept 23. mer Barisan Nasional government.” to Umno’s fold, giving it a bigger vic- ineff ective because of their lacklus- that it won the popular vote in the However, PAS’ infi ghting contin- Kadir claimed that this should tory during last year’s GE,” he said. tre eff orts in confronting Pakatan last GE, Pakatan’s biggest stumbling ued, although it is believed that the not be a problem for Pakatan as Citing as examples opposi- in the state assemblies. “If Pakatan block is the infi ghting among its “ide- confl ict is abating after several fac- many tycoons and “big-time busi- tion-led states like Selangor and could convince the Malays that it ologically incompatible members”. tions from within the party convened nessmen” have begun “befriending” Penang, Kadir cautioned that BN would be fair to them, respect their “Th e recent Selangor Menteri for a retreat recently in Kuala Selangor the oppositon pact and developing will fi nd itself in deep trouble if PR rights and privileges and promise Besar (MB) crisis exposed the vul- and decided that PAS would remain their relationship with them since managed to convince the Malays a better deal for them in the econ- nerability of Pakatan to inter- and in Pakatan.— Th e Malaysian Insider 20 PROPERTY FRIDAY NOVEMBER 21, 2014 • THEEDGE FINANCIAL DAILY FRI

Introducing the N CIDB seeks mandatory Millennium Tower Boston BY

BY LIM KIAN WEI KU nie Qlassic by 2020 BOSTON: US-based Millennium Part- its ners is developing the Millennium Tow- in er Boston, located northeast from New York. Th e 60-storey skyscraper is de- val Wants quality assessment to be a prerequisite in project applications for the CCC signed by Blake Middleton of Handel 4 a Architects. Th e US$630 million (RM2.1 wh billion) building will comprise 422 BY CHAI YEE HOONG high-end residential units, said Rich- ove ard Baumert, partner at Millennium Ch KUALA LUMPUR: The Construction In- Partners, in a press release recently. er dustry Development Board (CIDB) plans Th e residential units will comprise cen to make the Quality Assessment System in City Residences, Grand Residences and Construction (Qlassic) mandatory for all Penthouses that range in size from 759 ser construction projects in the country by 2020, sq ft to 12,846 sq ft. Th ey are priced be- ph said CIDB senior general manager (devel- tween US$850,000 and US$37.5 mil- ful opment sector) Ahmad Asri Abdul Hamid lion. Residents are expected to move at a media workshop on Qlassic on Nov 10. in mid-2016. acr “We want to make Qlassic mandatory Th e building will have as it tenant the wit and one of the routes we are taking is to Mina at Th e Tower restaurant owned by Bu propose this under Rancangan Malaysia American celebrity chef Michael Mina. Ke-11 (RMK-11) that will be launched next Th e restaurant is exclusive to residents fro year,” he told reporters. and guests. Fitness brand FLX by Millen- un Ahmad ‘Asri said CIDB wants the gov- nium will also be housed in the tower. ft, a ernment to make a project’s Qlassic score Other facilities include a 24-hour RM compulsory for its application for the Cer- concierge, valet service and high-speed bu tificate of Completion and Compliance elevators. A luxury two-storey club will RM (CCC). have an indoor pool, serviced lounge, Qlassic assessments have been conducted function room and eateries. ty p upon the completion of projects since 2007. According to Millennium Partners’ Ahmad ‘Asri said CIDB plans to introduce Ahmad Asri (third from left) with media workshop speakers (from left) Joshua Kang, Datuk K Laxana Naidu, website, future projects include a 47-sto- Qlassic at the construction stage. From 2016, Mohd Faudzi Hanafi ah and Jeganathan. Photo by CIDB rey mixed development in San Francis- the board will be able to make a complete co, which incorporates a restoration of assessment as detailed in the Construction list of 26 government projects. assessment since its introduction in 2007. the Aronson Building and the Mexican Q Industry Standard with regard to the quality Ahmad ‘Asri said making Qlassic com- In 2012, assessments were conducted on Museum. It is expected to open in 2017. of workmanship. pulsory, which comes with a penalty system only 160 projects, or about 3% out of the BY Th e board is collaborating with the Im- for failure to comply, will result in an overall total 5,800 construction projects. plementation Coordination Unit responsi- improvement in quality in the construction Ahmad ‘Asri said the assessments are KU ble for monitoring government projects in industry. conducted by third-party assessors who Kan Malaysia and getting all government pro- He said the challenge in implementing have been accredited by the board, thereby An jects to adopt Qlassic. Th e board to date has Qlassic is that the take-up is very low, with ensuring “consistent, fair and independent” pro conducted assessments for about 90% of its only 700 projects that have undergone the assessments. las Ma

viro and S&P’s warning on Chinese property, Russian banks wil for BY MARC JONES ings in Asia would have “a negative bias” next In its banking sector analysis, it high- Lum year because of an expected fall in Chinese lighted Russia as the big concern from a list rec LONDON: Credit rating agency Standard and Hong Kong house prices. of seven top emerging markets that also in- sta and Poor’s said on Wednesday that Chi- Th e property sector accounts for more cluded China, South Africa, Brazil, Mexico, na’s over-priced and over-supplied property than 15% of China’s annual economic output. Turkey and . 2,3 market and capital-starved Russian banks Since banks provide much of the fi nancing Almost 70% of S&P’s Russian bank ratings vel were likely to face further downgrades in for building and buying, a prolonged down- have negative outlooks, meaning theirs are mil the coming years. turn poses possibly the biggest risk to the roughly a one in three chance of a down- on In two new emerging market-focused world’s second-largest economy. grade in the next two years. are reports, S&P said Chinese property ratings “Continuing sluggish sales, rising fi nanc- “Russian banks remain the most vulnera- apa were likely to be hit more than other large ing costs, and declining access to funding will ble to the current operating diffi culties creat- livi markets in Asia, while Russian banks in hit smaller (Chinese) regional players. As a ed by Western sanctions and lower economic Turkey, South Africa and Brazil also faced result, we may see further downgrades, and growth,” S&P said. “Th e main risks we see for An artist’s impression of the Millennium Tower A$ diffi culties. even defaults, at the lower end of our rating 2015 are capital erosion on the back of rising Boston. Photo by Glodow Nead ed S&P said in the property report that rat- spectrum,” S&P said. risk costs and funding pressures.” — Reuters jun fea rob AUCTION ter Tenure: Freehold Up for bid @ Kemuning, Section 25, Shah Alam Sold Reserved price: RM510,000 Tenure: Freehold Transacted price: RM510,000 Reserved price: RM1.087 million Property type: Offi ce lot Land area: 1,405 sq ft Auction date: Nov 27 Built-up: 6,854 sq ft Address: 3A30, Block A, Kelana Centre Point, Auctioneer: Property Auction House Sdn Bhd Property type: Ground fl oor commercial shop Auctioneer: Ng Chan Mau & Co Sdn Bhd Jalan SS 7/19, Petaling Jaya, Selangor Contact: (03) 2070 2226 unit Contact: (03) 2162 3333/(03) 2163 2222 Tenure: Leasehold Address: G-63, Kompleks Pertama, Jalan Tu- Reserved price: RM225,000 Property type: Corner two-bedroom serviced anku Abdul Rahman, Kuala Lumpur Auction date: Nov 27 Transacted price: RM281,000 apartment Tenure: Freehold Property type: Serviced apartment with three Land area: 1,195 sq ft Address: A-9-2, Block A, Panorama, 2 Persiaran Reserved price: RM1.26 million bedrooms and one utility room Auctioneer: Property Auction House Sdn Bhd Hampshire, off Jalan Ampang, Kuala Lumpur Built-up: 452 sq ft Address: BT-19-5, 19th Floor, Bayu Tower, Contact: (03) 2070 2226 Tenure: Freehold Auctioneer: Ng Chan Mau & Co Sdn Bhd Saujana Residency, Jalan SS 16/1, Subang Jaya Reserved price: RM1.2 million Contact: (03) 2162 3333/(03) 2163 2222 Tenure: Freehold Property type: Three-bedroom serviced apart- Transacted price: RM1.52 million Reserved price: RM1.2 million ment Land area: 1,227 sq ft Auction date: Nov 28 Built-up: 1,795 sq ft Address: D-05-06, Pangsapuri Koi Kinrara, Auctioneer: Property Auction House Sdn Bhd Property type: Corner 3-storey bungalow Auctioneer: Ng Chan Mau & Co Sdn Bhd Jalan Pipit, Bukit Tandang, Puchong, Selangor Contact: (03) 2070 2226 Address: 2 Jalan Bijaksana 25/150A, Milano Contact: (03) 2162 3333/(03) 2163 2222 FRIDAY NOVEMBER 21, 2014 • THEEDGE FINANCIAL DAILY PROPERTY 21

HOT DEALS How much is your property worth? NCT launches Ion Delemen’s fi nal phase Which and what property has just been sold, and for how much? What interesting buys are now on the market? Check out BY JONATHAN GAN the following Hot Deals of the week. Go to www.theedgemarkets.com for more. KUALA LUMPUR: NCT Group of Compa- nies launched the third and final phase of - its RM1 billion Ion Delemen development - in Genting Highlands last month. Sold w The project with a gross development - value of RM380 million consists of Tower 2-storey terraced/link house in IRIS l 4 and Tower 7. The latter is up for sale, Puchong, Puchong Utama Selangor 1 while Tower 4’s pricing is being finalised. Land size: 22 x 75 sq ft; 4 bedrooms; 3 2 “Phase 2 (launched in June) enjoyed an bathrooms; Freehold; RM840, 000 - overwhelming response,” said Yap Ngan Th e property has covered parking and 24- m Choy, group managing director and found- hour security, as well as a nursery and play- er of NCT Group in a press statement re- ground. It is near the Kong Sai Chinese res- e cently. taurant, Church of Our Lady Guadalupe d The first phase comprised 248 units of and Taiji Eatery Dim Sum. Nearby schools 9 serviced apartments, while the second include SK Puchong Utama. Also nearby - phase offered 279 apartments. Phase 1 is is the Rapid KL Terminal Puchong Utama. - fully sold, while Phase 2 is 80% taken up. Contact: Lakshmi Govindaraj of Reapfi eld e The development is spread across 10.2 Properties (Puchong) Sdn Bhd at (012) 372 acres (4.1ha), and comprises seven blocks 5735 e with 1,001 resort-style serviced apartments. y Built-ups are from 385 sq ft to 2,970 sq ft. On the market a. Tower 7 consists of 333 units. They range s from one-bedroom studios to two-bedroom - units. Built-ups are from 385 sq ft to 988sq Single-storey terraced link house in . ft, and prices are between RM475,000 and An artist’s impression of a Tower 7 unit. Photo by NCT Group Taman Ehsan Kepong r RM1 million. Its penthouse units have Built up: 1,650 sq ft; 3 bedrooms; 2 bath- d built-ups of 3,040 sq ft and are priced at 13,000 sq ft wellness centre managed by from Genting Highlands Resort and 15 rooms; Leasehold; RM519,000 l RM4.5 million. JK Medical Group offers a wide array of minutes’ away from Gohtong Jaya, the Th e house is partly furnished and has been e, Facilities include a spa, heated infini- services including plastic surgery. main township in Genting Highlands. It is renovated to add an extended back. It is near ty pool, and an indoor gym and sauna. A Ion Delemen is some 10 minutes’ drive about an hour’s drive from Kuala Lumpur. the KTM Kepong station and Rapid KL bus s’ depot. Amenities include several clinics. - Contact: A Ahmad Shuhailee of IEC Proper- - ties at (012) 643 6936 f n Queens Domain apartments showcased in KL 7. BY LIM KIAN WEI WHAT’S KUALA LUMPUR: Melbourne developers HAPPENING & Kangoala Pty Ltd and Property Development Analysis Australia recently showcased their WHERE project, Queens Domain, in Kuala Lumpur last weekend. It is marketed by Knight Frank Malaysia. Darulaman Realty Carnival “Queens Domain’s surrounding green en- Date: Tomorrow vironment of Albert Park, unbeatable views Venue: Tasik Darulaman Perdana, and proximity to the central business district, Sungai Petani, Kedah will ensure this project has all the criteria Time: 8am to 6.30pm for a fast take-up rate by investors in Kuala Contact: (012) 409 5314/(012) 527 7789 Lumpur,” said Herbert Leong, associate di- At this event, Darulaman Realty will launch rector of Knight Frank Malaysia in a press 128 units from its Darulaman Perdana devel- statement recently. 01. An artist’s impression of opment. Th e units consist of 10 two-storey Th e 20-storey Queens Domain sits on a the Queens Domain lobby superlink houses, 94 one- and two-storey 2,342 sq m tract of land and has a gross de- where residents and guests semi-detached houses and six bungalows. velopment value of A$183 million (RM532 can be dropped off . Photos million). It will comprise 235 apartments with by Knight Frank Exporters & Manufacturers Furniture one- to three-bedroom units. Th e built-ups Fair 2014 are between 46.7 sq m and 104.8 sq m. Each 02. An example of what the Date: Today to Sunday apartment will have stone fl oor fi nishings for Queens Domain living Venue: GM Klang, Bandar Botanic, Klang living and kitchen areas. room could look like with Time: 11am to 9pm The apartments are priced between good views and plenty of Contact: (011) 2623 6212/(011) 2335 A$395,000 and A$949,000. Th ey are expect- natural light. 6530 ed to be completed by end-2017. 01 Organised by the Kuala Lumpur & Selangor Designed by DKO Architecture in con- Furniture Industry Association, this event junction with Nexus Design, each apartment and keyless entry to each unit. Survey ranked Melbourne as [the city with] is in conjunction with the organisers’ 58th features an Italian designer kitchen and ward- Richard Drummond, director of residential the best quality of life and is considered to anniversary and features exhibitors selling robes, timber veneered front doors with in- project marketing, Knight Frank Melbourne, be the “World’s Most Liveable City” for the bedroom, dining, living room and office ternal closers, a security entry phone system said: “Th e latest Knight Frank Global Cities fourth year in a row to top Th e Economist furniture, mattresses and home appliances, Intelligence Unit’s Global Liveability Index. among others. Residents will have access to a rooftop communal area that overlooks the park and Melbourne Property Exhibition the Melbourne Grand Prix race track. Facili- Date: Nov 29 to Nov 30 ties include a heated indoor swimming pool, Venue: Eastin Hotel Boardroom 1 and 2, gym, and residents’ lounge with free WiFi and Level 3 kitchen services. Time: 10am to 8pm It is 3km from the central business district. Contact: (03) 6205 3115 It’s also within walking distance to a beach, Th is event is organised by the Australian Prop- e shopping strip, recreational park, golf course erty Gallery and will feature the Riviere freehold and tram in St Kilda Road. Schools and col- apartments in Melbourne, which are priced r, leges are within 1.5km from the apartments from A$410,000 (RM1.19 million). Th e event a and the Melbourne International Airport is will include seminars on topics such as project 22 minutes drive away. features, fi nancial profi les, investment returns, According to Drummond, Melbourne is information to support the process of Australian Australia’s fastest-growing region, with its property acquisition and ownership, as well increasing population fuelling demand for as the six key factors property buyers can use 02 housing. to become a property millionaire. 22 HOME FRIDAY NOVEMBER 21, 2014 • THEEDGE FINANCIAL DAILY

PKR slams Putrajaya ‘Silent majority of lawyers for reducing 1Malaysia support Bar Council’ 1Harga funds BY EILEEN NG

KUALA LUMPUR: Putrajaya’s Bona Fide Friends of Umno ‘off ers alternative platform for the silent majority’ decision to slash funds aimed at standardising the prices of es- sential goods in Sabah and Sar- BY V ANBALAGAN A substantial number awak with those in the peninsula of members who do has been criticised by PKR, who KUALA LUMPUR: Th e Malaysian Leong: This is part of said the poor will be the ones to Bar is not perturbed by the emer- not turn up either freedom of expression bear the consequences. Darrell gence of a rival faction of lawyers, do not feel strongly and public discourse. Leiking (PKR-Penampang) and who claim to off er an alternative against the resolution Wong Chen (PKR-Kelana Jaya) platform for the silent majority of the said the government’s 60% reduc- fraternity, as it believes in freedom or are in support. sume that a substantial number of tion of the funds for the 1Malay- of association and expression, its members who do not turn up either sia 1Harga programme is proof chairman Christopher Leong said. do not feel strongly against the res- that Putrajaya’s claim of being a “We welcome any number of law- olution or are in support,” he said. caring government is mere talk. yers to freely get together to express up each time for council elections. “If any of them disagree, they Th e programme is intended themselves. Th is is part of freedom The group’s coordinator, Da- are entitled to be present and if to ensure prices of sugar, cook- of expression and public discourse,” tuk Razali Ibrahim, had said that they did not turn up, it should be ing oil and fl our in the two Bor- Leong told Th e Malaysian Insider. the group, established about two assumed that the silent majority neo states are at par with the He said the Bar Council, which weeks ago under the Umno Con- by and large are in agreement with prices in Peninsular Malaysia. manages the Malaysian Bar, is an stitution and Legal Bureau, is not the proposed resolutons.” Speaking at the Parliament - entity formed under the Legal Pro- meant to oppose the Bar Council Leong said this is how annual by yesterday, the two MPs point- fession Act with stated objectives but to balance its stance. out. Citing as example the Sept 19 general meetings (AGMs) and EGMs ed out that the allocation for the and regulations. “I feel to gain respect from oth- Bar Council extraordinary general work, where eligible members are programme has been “dramat- He said the majority of lawyers ers we must show that we have the meeting (EGM) where 973 mem- allowed to express their opinions. ically reduced” from RM85 mil- in the peninsula have always placed best practices fi rst, but unfortu- bers voted for the council’s reso- He said notices and resolutions are lion this year to RM33 million. their confi dence in the council to nately today they sound like they lution to repeal the Sedition Act sent to all 15,000 members every Deputy Domestic Trade, Co- do the necessary under the law. have the support of a majority of 1948 and to hold a peaceful walk time AGMs and EGMs are held. operatives and Consumerism Otherwise, they would voice the members. Th ey sound like they in protest of the law, Leong said 13 Razali, a deputy minister in the Minister Datuk Seri Ahmad their dissatisfaction, he said, re- are perfect, but always look down members voted against the resolu- Prime Minister’s Department and Bashah Md Hanipah had said sponding to the claim by the coor- on the system in this country,” he tion while no one abstained. also Umno Supreme Council mem- on Wednesday that the reduced dinator of the Bona Fide Friends of was quoted as saying by Bernama “Th ose who were in disagree- ber, said the Bona Fide Friends of budget was due to a drop in de- Umno group that the council does on Wednesday. ment with the resolution spoke out. Umno group is open to all law prac- mand for cooking oil in Sabah not have the support of the majority Leong said members who dis- Th is goes to show that if there are titioners, including law students, and Sarawak. of lawyers as only about 3,000 out of agree with any resolution moved members who disagree, they will and is targeting 5,000 members. “Th is answer is nonsensi- 15,000 Bar Council members turn by the council are free to speak turn up. It is therefore logical to as- — Th e Malaysian Insider cal,” Leiking said. Wong said the move is an indication that Barisan Nasional does not have the best interests of the Sabah and Sarawak people at heart. Ensuring retirees have enough funds in EPF “It is the government’s funda- mental duty to help the poor. Th e numbers do not lie, if they KUALA LUMPUR: Th e government make several recommendations to looked into and scrutinised by the “With the law in place, EPF con- really cared for the poor, they is looking for a new mechanism to address the issue. EPF,” he said in reply to Normala tributors can also continue working wouldn’t do this,” he said. ensure that Employees Provident “ have an average life Abd Samad (BN-Pasir Gudang) in and make EPF contributions up to Both lawmakers were unable Fund (EPF) contributors have suf- expectancy of 75 years and when they the Dewan Rakyat yesterday. the age of 60,” he said. to say how much the move will fi cient savings to make ends meet take out all their EPF savings at 55, Meanwhile, Ahmad said with As at September this year, the impact consumers in the two after retirement. they will have another 20 years to live. the implementation of minimum EPF had 14.11 million members, states as they did not have in- Deputy Finance Minister Da- “What should they do to ensure wage, EPF contributions from the 6.59 million of whom are active formation on demand for the tuk Ahmad Maslan said the gov- that they have enough money to low-income earners had increased employees. Active employers num- three commodities. — Th e Ma- ernment, through the EPF, would spend? Th is is the issue that is being from Jan 1, 2013. bered 528,369. — Bernama laysian Insider Table Sabah RCI report on illegal immigrants by Monday, Bersih tells Putrajaya

KUALA LUMPUR: Angry over re- The report should be debated tention-without-trial law was being peated delays in making public the in Parliament, she added, because used to “purposely prevent the truth report of an inquiry into illegal immi- Maria: We will not accept it “pertains to the very question of from being revealed in open court”. grants in Sabah, Bersih 2.0 is giving any more delays since this which party is truly the people’s “Projek IC” has also been blamed Putrajaya an ultimatum to table the issue has been waiting choice to be government”. for Sabah’s rapid population boom report by Monday, failing which they resolution as far back as Th e RCI on illegal immigrants in in a matter of years, a sore point with will seek a meeting with the prime the Likas petition in 1999. Sabah was held last year to probe many locals and opposition political minister. Th e electoral reform group claims that migrants were being given parties there. wants the Sabah Royal Commission citizenship in exchange for votes for Bersih said the wrongs committed of Inquiry (RCI) on Illegal Immigrants Fuad Ari from Tawi-Tawi island had Barisan Nasional, the ruling party. against the people of Sabah must be to be tabled in Parliament, and for testifi ed that he had obtained his Its report was submitted to the Yang corrected, beginning with making the prime minister to explain why identifi cation card under a scheme di-Pertuan Agong and Najib about the RCI report public. lawmakers are not being allowed to known as “Projek IC”. six months ago. Some 200 witness- Th e electoral reform group wants debate and discuss it. Maria said the report should be es were called to testify, including the government to revamp the Sabah Bersih chair Maria Chin Abdul- tabled, even if it means extending former prime minister Tun Dr Ma- electoral roll, including deregistering lah said Prime Minister Datuk Seri the current Parliament sitting which prime minister’s last-minute at- hathir Mohamad, who was alleged those who obtained identity cards Najib Razak has the moral obligation is due to end on Nov 27. Najib was tempted assurance that the report to be behind “Projek IC”. unlawfully. It also wants Sabah to to make the report public. “We will reported as saying earlier this week will be made public next month. Some government offi cers have be exempted from the Election Com- not accept any more delays since this the RCI report would be made public For one, there is scant detail about been detained under the now-re- mission’s impending redelineation issue has been waiting resolution as in only December, but Bersih wants how it will be done, which leads us pealed Internal Security Act for their exercise and from any increase in the far back as the Likas petition in 1999.” it to be released in Parliament where to see it as a red herring to subvert alleged role in issuing Malaysian number of constituencies, which it Th e Likas petition refers to a High MPs can debate it. pressure on the original assurance,” identity cards to illegal immigrants, said would worsen electoral fraud. Court case in which a Filipino named “We are not convinced by the Maria said yesterday. but Bersih said that the former de- — Th e Malaysian Insider FRIDAY NOVEMBER 21, 2014 • THEEDGE FINANCIAL DAILY COMMENT 23 Growth isn’t king in Indonesia

Jokowi focusing as much on the quality of growth as the quantity

BY WILLIAM PESEK ing-business surveys. In India, for example, newish class that will double to 141 million to boost incomes broadly. More than 40% of the nation’s Prime Minister Narendra Modi by 2020; a population where half of While each is crucial, the last one 250 million people live on less than boasts that he will return gross do- Indonesians are under 30. could be Jokowi’s most important US$2 (RM6.74) a day. A dearth of mestic product (GDP) to the glory Per capita income — US$4,000 legacy. Th e idea is to emulate Japan, decent roads makes it more cost-ef- days of double-digit growth rates, at best — signifi cantly lags peers South Korea and in making oko Widodo’s rise from no- fective to ship goods to China than as if the metric mattered more than like Malaysia and Th ailand. For all added-value products through bet- where to Jakarta governor across the archipelago. what his government plans to do the hype about Indonesia’s sup- ter training and infrastructure. Th at and then the presidential But this week, Jokowi reminded with the windfall. posed middle-class boom, many would diversify an economy that palace showed the wonders us why Indonesia is a good-news Th e “Cult of GDP,” the dated idea households still grow rice and oth- still relies too much on exporting of Indonesia’s democracy. story — one from which Asian peers that booming growth lifts all boats, er crops for a few hundred dollars natural resources to China. Now, he wants to democ- could learn. His move to cut fuel has long been decried by develop- per harvest. Roadblocks abound, not least J ratise the economy as well, subsidies, saving a cash-strapped ment economists like William East- Th at’s why Jokowi’s early poli- an opposition eager to maintain its focusing as much on the quality of nation more than US$11 billion in erly. Th e closer growth gets to 10%, cies are populist in thrust: welfare privileges and cozy business deal- growth as the quantity. its 2015 budget, showed gumption the more likely governments are programmes, handouts to local gov- ings. Nor will it be easy to balance Sixteen years ago, Indonesia was and cheered investors. to declare victory and grow com- ernments and improved access to pro-investor strategies with protec- cascading toward failed statehood. Even more encouraging is a bold placent. health and education. tionist currents in Jakarta. In 1998, as riots forced dictator Su- agenda focusing not just on faster In many cases rapid GDP growth But Jokowi also is taking fi ve vi- But for neighbours like Vietnam, harto from offi ce, many wrote off growth, but better growth that’s felt masks serious economic cracks. In tal steps that should do more than Myanmar and even Th ailand, which the world’s fourth-most populous among more than Jakarta elites. her recent book, GDP: A Brief but add a few dollars to daily salaries: also suff er from dramatic levels of nation. Today, Indonesia is a stable Th is might seem like an obvious Aff ectionate History, Diane Coyle attacking offi cial corruption; cutting inequality, Jokowi’s agenda provides economy growing modestly at 5%, focus in a region that’s home to a called the fi gure a “familiar piece of the red tape that turns off foreign a pretty decent roadmap to spread- with quite realistic hopes of more. critical mass of the world’s extreme jargon that doesn’t actually mean investors; launching an ambitious ing the benefi ts of growth. Good Th ere’s plenty for Joko, known poor (those living on US$1 or US$2 much to most people”. infrastructure-improvement pro- news, indeed. — Bloomberg View by his nickname “Jokowi,” to wor- a day). But grand rhetoric about “in- Jokowi appears to see through gramme; increasing tax-collection ry about, of course. Indonesia still clusive growth” hasn’t even come the hollow superlatives global con- eff orts among the politically-con- ranks behind Egypt in corruption close to meeting the reality on the sumer companies toss around when nected elite; and strengthening in- William Pesek is a Bloomberg View and near Ethiopia in ease-of-do- ground. it comes to Indonesia — a middle dustry, particularly manufacturing, columnist. Why we don’t need better forecasts

BY JOHN KEMP accurate than 30 years ago. Britain’s response to new information and four-day weather forecast is now as experiences.” accurate as the one-day forecast was Th ere is nothing new in the idea in 1980, according to the Meteoro- that the best strategies are the ones logical Offi ce. which maximise fl exibility and ad- ONE of my fi rst assignments as a But once we move beyond phys- aptability. Th e concept is central to newly-minted graduate in the late ical systems to those involving hu- to the idea of defence in depth em- 1990s was to produce a 30-year fore- man agents who adapt and learn ployed by the designers of nuclear cast for the Bangladesh taka against from their surroundings, or push the power plants. It has been taught for the US dollar on behalf of a client forecasting horizon further into the decades in business schools as real contemplating a multi-billion dollar future, forecasting accuracy breaks options theory. investment. down quickly. It is essential to the strategy of suc- Even then, I realised this was not With hundreds of PhDs and lots cessful traders: no investor should a sensible question. I wasn’t even of fancy dynamic stochastic general ever put on a large position without sure how much of Bangladesh would equilibrium (DSGE) models about knowing how they would get out of still be above sea level in 30 years, how the economy works, the world’s it and preferably having several op- let alone the exchange rate. If the top central banks cannot reliably tions for doing so. economics of the project depend- predict unemployment, infl ation and Flexibility, adaptability and op- ed on an exchange rate forecast in growth even six months ahead, let tions are central to success. Systems, three decades’ time, it was not a very alone spot looming recessions and organisations and individuals that good project. fi nancial crises. adapt and evolve survive. Those But the client is always right, so Large-scale weather and climate which cannot or do not will die. we produced a forecast, and every- models quickly break down once Flexibility, adaptability and options are central to success. Systems, organisations and None of this is meant to dispar- one was happy. the forecasting horizon is pushed individuals that adapt and evolve survive. Those which cannot or do not will die. age the work that forecasters do or Like many other analysts, I have further into the future. For much of suggest it is not valuable. spent most of my working life pro- the fi rst part of this year, the major adaptive systems, our forecasting Rather than employing the fore- But it is a powerful reason to be ducing forecasts of one sort or an- models have been predicting an El abilities have not improved much. casting approach central to elemen- humble about our predictive abili- other — ranging from interest rates Nino in the Pacifi c which has still Th e common response is to re- tary physics and relying on “improve- ties and realise the best way to face and exchange rates to metal prices, not occurred. double our eff orts, collect more in- ments in the quality of predictions an uncertain future is to focus on oil prices and politics. None of the world’s intelligence formation and build more sophisti- about increasingly small-scale ac- creating fl exible, adaptive and in- For an analyst, the solution to any agencies and international relations cated models. But perhaps it makes tors, low probability events and the novative systems, avoiding rigidity, problem is always more information, specialists successfully predicted the more sense to focus on managing cross-scale implications of rapidly rather than simply throwing mon- more data and more sophisticated sudden collapse of the Soviet Union, uncertainty about the future rath- evolving technologies” they suggest ey and eff ort at ever more complex models, so decisions can be based or the fall of the Berlin Wall, or the er than trying to predict it out of employing an approach borrowed forecasting systems. on more accurate predictions about Arab Spring. existence. from biology. I can’t remember what 30-year the future. And no one has consistently and In a powerful paper, Dealing with “Rather than seek to design ro- currency forecast we provided back But the truth is that we are not successfully predicted bond yields, femtorisks in international relations, bust institutions and strategies that in the late 1990s. At the time, the very good at it. stock market valuations or oil prices published in the Proceedings of the may fare well only against specifi ed taka was trading around 42 to the In some areas, our forecasting with a track record that cannot be National Academy of Sciences, an futures, risk measurement and man- US dollar. Almost 20 years later, it has become amazingly accurate. explained simply by random chance. international group of researchers agement professionals would benefi t is trading at nearly 80. I still have We understand the laws of physics Th ese are all examples of com- argue the best way to deal with low from imitating how evolution has no idea where it will be in 10 years well enough to land a spacecraft on plex adaptive systems in which all probability/high consequence risks dealt with unknowable challenges,” time. And I’ve learnt not to worry a comet just 4km across and hurtling the components are tightly linked which occur in complex adaptive the researchers urged. about it. — Reuters through space at 38km per second to one another, can adapt to past systems is to create “new ways of “Th is approach shifts ... policy after a journey of more than 10 years. outcomes, and are sometimes very coping with uncertainties that do options away from optimal, often Employing enormous super-com- sensitive to even a small change in not depend on precise forecasts of brittle solutions that require accu- John Kemp is a Reuters market an- puters, we can make short-term conditions deep within the system. the probability and consequences rate predictions in favour of resilient alyst. Th e views expressed (and any weather forecasts that are far more When it comes to complex and of future events.” solutions that can be adapted in forecasts) are his own. 24 FEATURE FRIDAY NOVEMBER 21, 2014 • THEEDGE FINANCIAL DAILY Uber needs to grow up fast

Damage to its reputation could spur consumers to try rival services

BY ROBERT CYRAN stands which present an existential Th e fi rm’s willingness to ignore countries than Lyft and its valuation little to lose. Uber’s size and valua- business risk and hurt its fl edgling rules has served it well. Most taxi would be about 40 times as large if tion mean it’s no longer excusable. ber is one start-up brand. Uber needs to rein in its lad- services are protected and en- Uber is valued at US$30 billion, as Th ere’s more media attention and that needs to grow dish impulses. trenched by local laws that stifl e reports suggest it may be in its next damage to Uber’s reputation could up fast, though the Ironically, the latest embarrass- competition. funding round. spur consumers to try rival services. Silicon Valley taxi ment for founder Travis Kalanick Side-stepping the established or- Yet early this year it bullied ven- Investors routinely demand app’s disregard for came at a dinner in New York hosted der has given the company clients, ture capitalists not to invest in Lyft grown-up supervision when they rules has spurred it by Uber to try to improve the me- drivers and the fi nancial might to and rivals claimed it has deliberately invest in companies. Unless venture Utoward a US$30 billion (RM1.01 dia’s perception of the company. lobby for forgiveness. Uber has said ordered and cancelled rides. Uber capitalists like Benchmark Capital, trillion) valuation. Senior vice-president Emil Mi- it is already profi table in many of has also taken belligerent stances Goldman Sachs and Jeff Bezos are But executives who threaten to chael suggested Uber could look into its largest markets and revenue is against customers who complain simply too obsequious, they should “dig up dirt” on critics use unsa- “your personal lives, your families,” at least doubling every six months. about its service. demand Uber act like a US$30 bil- voury tactics against rivals and post and give the media a taste of its own Th at’s given it a huge lead over Small start-ups may get away lion company before they value it statistics on customers’ one-night medicine, according to Buzzfeed. rivals. It runs in more cities and with such behaviour because there’s as one. — Reuters Defeating Isis — how fi nancial China’s gold rush to green vehicles fuels bubble concerns

liabilities will undo the jihadists BY SAMUEL SHEN Despite a fl ood of & KAZUNORI TAKADA electric car models BY TOM KEATINGE FORGET luxury limos, think green coming to the market buses. China’s electric vehicle sales this year, from BMW surged fi ve-fold in the fi rst 10 months and Mercedes Benz of 2014, powered by Beijing subsidies. THE scrutiny of Isis’ fi nancing has In a long-awaited take-off , even un- to Nissan and BYD, focused almost exclusively on the likely fi rms like a metals trader and a many in China are just vast resources it has accumulated. Yet soda ash producer are pouring money not yet ready to buy as it has expanded, it has also been into green transportation. gathering fi nancial liabilities which, As China’s demand for luxury and them, according to if the international community is pa- premium cars cools, the Guangzhou a survey earlier this tient, could be its ultimate undoing. autoshow this week hosts a separate year by consultancy Since Isis captured the Iraqi city of event dedicated to green vehicles. But Mosul in June, much of the attention the gold rush is fuelling concern in AT Kearney. paid to the group has focused on the A rocket believed to have been launched by Islamic State forces fl ies from the east to the industry it may add to overcapac- apparently vast fi nancial resources it the west side of the Syrian town of Kobani during fi ghting on Nov 6. Picture taken from ity, leaving new entrants struggling has amassed. the Turkish side of the Turkey-Syria border. Photo by Reuters to survive even with state support. Th e importance of degrading its “China’s green vehicle market will cording to a survey earlier this year literal “war chest” was brought to be huge,” said Arnold Chan, deputy by consultancy AT Kearney. the fore again last week when, in a ing, particularly the targeting of the all of which is intended to create a chairman of China Dynamics Hold- Some 54% of survey participants speech delivered at the Carnegie En- revenue it is earning from its oil busi- “fl ourishing relationship between the ings Ltd. Th e company, more than said incentives wouldn’t be enough dowment For International Peace, ness, including sales to the Syrian Islamic State and its citizens”. 11%-owned by Chan according to to override other concerns. Fully 60% David Cohen, US Under Secretary for government, and the application of Maintaining food supplies will be Th omson Reuters data, quit metals of consumers said they expect a min- Terrorism and Financial Intelligence, sanctions against known fundraisers. challenging. According to the Food trading to start making environmen- imum driving range of 250km, much addressed the issue of “Attacking Isis’ But perhaps the most important and Agriculture Organization of the tally friendly electric buses this year further than the range of most electric Financial Foundation”. element of his speech addressed the UN, Iraq is facing food security con- after losing money ever since its 2006 cars currently in the market. Terrorist and insurgent groups that fi nancial burden that the Islamic State cerns in light of the ongoing confl ict. Hong Kong listing. Beijing has introduced a slew of aim to move from a hand-to-mouth has brought upon itself via its capture Th e governorates most aff ected by “Th ere are two million buses on measures over the course of this year existence to more planned and strate- and control of large populations cen- the confl ict produce a third of the Chinese roads. A 10% share of that to support electric vehicle sales in gic operations need reliable sources of tres such as Mosul. country’s wheat and barley. market would be enormous,” said a move to combat China’s growing fi nancing. As discussed in a previous In a number of these cities, Isis pre- Isis’ ability to manage the harvest- Chan, whose new entrant firm is pollution problem. article, a key contributor to whether viously operated a form of organised ing, processing and distribution of worth about US$440 million (RM1.48 Th ese incentives include renewed such groups are able to sustain and crime, taxing businesses and individ- food to the people under its control billion) by market value. It’s unclear subsidies for car buyers, exemption survive is the development of inter- uals with few of the attendant liabil- will certainly add to the challenges it how many electric vehicles could in from purchase taxes and public fund- nal sources of fi nancing. ities associated with government. faces. Isis has made some impressive, practice replace buses now in service, ing to build charging stations. Anoth- Th e so-called “Islamic State” has In declaring the establishment of one-off fi nancial gains as it has swept but as the world’s biggest auto mar- er key strand that caught the eye of excelled in the art of acquiring income the “Caliphate”, a state in layman’s across northern Syria and Iraq. But ket, China is a magnet for new fi rms. wannabe green vehicle makers was and, critically, while it may benefi t parlance, the ambition of the group while these one-off gains are drying Shanghai-listed Tangshan San- a purchase quota of at least 30% by from some external support, it has has presented it with the responsi- up, the liabilities the group needs to you Chemicals Industries Co Ltd, a 2016 for the fl eet of central govern- developed an impressive internal bilities of any national government fund are ongoing, not helped by the Chinese producer of soda ash worth ment, as well as local government funding model that notwithstanding to provide for its people (estimated expenditure associated with the mil- US$1.9 billion by market capitalisa- in 88 new energy vehicle pilot cities. the recent passing of a United Nations at six to eight million). itary campaigns it is waging such as tion, entered the green vehicle busi- But China’s industrial policies (UN) Security Council Resolution Th is is likely to be the root of its the weeks-long assault on Kobane. ness in March. At Shenzhen-listed backfi red in the past. aimed at its fi nances, makes restric- undoing. Th e expectations of those The group will, sooner than later, auto parts maker Wanxiang Qianchao In 2009, Beijing off ered hefty subsi- tion highly challenging. people it now controls will rise as the begin to struggle fi nancially. Co Ltd, shares have doubled since dies to the solar power industry, trig- Cohen’s speech recapped the taxes they are asked to pay increase to While Isis’ fi nancial liabilities in- parent Wanxiang Group acquired gering a race to develop multi-billion main points that have emerged sur- supplement likely revenue shortfalls. crease, the international community bankrupt US electric carmaker Fisker dollar solar projects. But the boom rounding the breadth and depth of The Islamic State is doing little needs to apply restrictive measures Automotive in February. ended badly with the collapse of so- the Islamic State’s fi nancing, the oil, to reduce expectations as the group where possible. The concern over potential lar superstars such as Suntech Pow- tax/extortion, use of longstanding has sought to highlight the welfare it over-investment stems from orders er Holdings and LDK Solar Co Ltd. smuggling routes, burgeoning use of will provide to those within the state. for electric buses and cars coming Th e potential for a supply-demand kidnap-for-ransom, and the relative Th e inaugural issue of the group’s Tom Keatinge is an associate fellow from local governments, rather than mismatch worries even newcomers lack of involvement of donors from English language Dabiq magazine at the Royal United Services Institute individual consumers. like China Dynamics. countries outside the territory the commits to “pump millions of dollars (Rusi), an independent think tank Despite a fl ood of electric car mod- “I see a lot of people rushing into group controls. into services that are important to engaged in cutting-edge defence and els coming to the market this year, this business,” Chan said. “Many will He also addressed the general Muslims” and ensure “the availability security research. Rusi was founded in from BMW and Mercedes Benz to be weeded out in the future. Only eff orts being undertaken to reduce of food and products and commodi- 1831 by the Duke of Wellington. Th is Nissan and BYD, many in China are those with real competitiveness can the Islamic State’s access to fi nanc- ties in the market, particularly bread”, article was fi rst published on RUSI.org. just not yet ready to buy them, ac- survive.” — Reuters FRIDAY NOVEMBER 21, 2014 • THEEDGE FINANCIAL DAILY WORLD BUSINESS 25

IN BRIEF

Billionaire Maran’s Ma warns Alibaba faces its SpiceJet cancels 40 fl ights a day in India NEW : SpiceJet Ltd, the Indian airline that’s posted fi ve straight quarterly losses, is tem- ‘most dangerous moment’ porarily cancelling 40 fl ights a day in a step the indebted carri- er said is part of a fl eet reorgan- isation. Th e cancellations will People expecting too much from China’s biggest e-commerce company last about 10 days, chief oper- ating offi cer Sanjiv Kapoor said in an email. Th e “pre-planned” BY LULU YILUN CHEN Filepic of people walking through move is part of a fl eet “restruc- & EDMOND LOCOCO Alibaba group headquarters in turing,” with passengers notifi ed Hangzhou, China. Ma is steering in advance and off ered alter- HONG KONG: Just two months af- Alibaba into new businesses native travel, he said. SpiceJet, ter its record initial public off ering of digital entertainment and majority owned by billionaire (IPO), Alibaba Group Holding Ltd healthcare as it adjusts to post- Kalanithi Maran, is shrinking its is facing its “most dangerous mo- IPO life. Photo by Bloomberg fl eet and workforce and seeking ment,” according to founder Jack Ma. investment in one of the world’s Th at is because people may be ex- most expensive markets for air- pecting too much from China’s big- for Hollywood movies and television lines. — Bloomberg gest e-commerce company since its shows as it expands its video and en- record IPO, said Ma, who is known tertainment content on set-top boxes. Merger fever back on for often peppering his speeches Alibaba prefers to invest in specif- Wall Street, 6 years after with controversial comments. ic fi lms rather than in movie studios, fi nancial crisis Th e warning echoes previous a person familiar with the matter said NEW YORK: Mega-merger fe- comments from the billionaire this month. Th e Hangzhou-based ver is back on Wall Street, six about the challenges facing the company wants to become a more years after the fi nancial crisis, company, from employees becom- significant distributor of content and 2014 is shaping up as a re- ing complacent and stopping in- by using customer shopping and cord year for takeovers in a sign novation to failing to embrace op- “Even two months before the IPO, Alibaba raised a record US$25 viewing data to forecast what pro- of US corporate optimism. In portunities in the mobile age. Ma people didn’t think we would make billion (RM84.3 billion) in Septem- ductions will become hits among rapid succession on Monday, is steering Alibaba into new busi- money,” Ma said in a speech yester- ber’s IPO. Since then, the shares have Chinese viewers, the person said. pharmaceutical giant Actavis nesses of digital entertainment and day at the World Internet Confer- surged 60% and the company’s Sin- The company is focusing on said it would pay US$66 billion healthcare as it adjusts to post-IPO ence in Wuzhen, China. “Now the gles’ Day promotion on Nov 11 saw health and entertainment because (RM222 billion) for Allergan, life as the 10th largest company by problem is people think we are too shoppers spend a record 57.1 billion China’s biggest troubles in 10 years which makes the wrinkle-eraser market value, surpassing Coca-Cola good — we can do anything. Th is is yuan (RM31.4 billion) on goods. will be in health and happiness, Botox, and oilfi eld services com- Co and Facebook Inc. the most dangerous moment.” Ma is spearheading Alibaba’s hunt Ma said yesterday. — Bloomberg pany Halliburton said it would take over rival Baker Hughes for US$34.6 billion. “A number of factors are driving M&A activi- HK asks for more ty, including low-cost fi nancing China fi rm signs US$12b deal and strong equity markets,” said RQFII quota as a research group. — AFP allocation Li says Qualcomm’s to build Nigerian railway ‘opportunities greater runs out than challenges’ BEIJING: A state-owned Chinese government on Wednesday in Abuja, seas contract project so far, it said, BEIJING: Qualcomm Inc’s op- BY FION LI & JAMES REGAN company has signed a US$12 bil- the Xinhua news agency said. citing CRCC. portunities in China will be lion (RM40 billion) agreement to Th e Nigerian railway will stretch CRCC chairman Meng Fengchao far greater than its challenges, HONG KONG: Hong Kong is build a railway along Nigeria’s coast for 1,402km along the coast, linking said the Nigeria project will adopt Premier Li Keqiang said yes- seeking an additional quota to that it billed as China’s single-larg- Lagos, the fi nancial capital of Afri- Chinese technological standards terday as the US mobile chip- invest yuan in China’s onshore est overseas contract, state media ca’s largest economy and leading oil and lead to US$4 billion worth of maker prepares to face a poten- fi nancial markets after all of its said yesterday. producer, and Calabar in the east, Chinese exports of construction tially record-breaking fi ne for initial allocation was taken up. China Railway Construction Corp according to the report. machinery, trains, steel products anti-monopoly violations in the “We raised the issue with Ltd (CRCC) signed the offi cial con- The US$11.97 billion deal and other equipment, Xinhua said. country. Li’s comments, made at the authorities and the signs struction contract with the Nigerian marks China’s largest single over- — AFP the World Internet Conference, are good,” K C Chan, Secretary were the fi rst by a senior Chi- for Financial Services and the nese leader since Qualcomm Treasury, said yesterday in an came under investigation by the interview. “It’s just a matter of Activist row bigger than Keystone for TransCanada anti-monopoly regulator, the Na- timing or priority. I don’t ex- tional Development and Reform pect there to be any problems.” Commission, in November 2013. Hong Kong’s existing 270 bil- BY KEVIN ALLISON both petroleum pipelines and power successful attempt to unseat rail- Th e company has been in talks lion yuan (RM148 billion) quota plants. Additionally, it says TC Pipe- way operator Canadian Pacifi c’s with the regulator, with a settle- under the Renminbi Qualifi ed CHICAGO: A sparring match lines, a US master limited partner- board in 2012. ment expected soon. — Reuters Foreign Institutional Inves- with an activist is a bigger deal for ship controlled by TransCanada, Sandell holds a tiny stake in tor (RQFII) programme is the TransCanada than the company’s isn’t being used to its full potential. TransCanada. But its sum-of-the- China wasted US$6.9tril world’s biggest, ahead of the troubled Keystone XL pipeline. Th e TransCanada calls the activist’s parts analysis, based on peer mul- on bad investment United Kingdom, Germany and proposed US$8 billion (RM27 billion) analysis “fl awed.” It wants to stick tiples, suggests the company would post-2009 — media South Korea with 80 billion yuan conduit of tar-sands oil from Alber- to a more conservative approach be worth US$75 per share in a break- BEIJING: China wasted an ap- each. Th e city opened a stock-ex- ta to Texas failed to muster enough as it tries to fund US$46 billion of up — a 34% premium. American proximately 42 trillion yuan change link with Shanghai this votes in the US Senate on Tuesday pipeline projects. But Canada’s rival Spectra Energy has outper- (RM23 trillion) on “ineff ective week and scrapped a daily limit night. But even if the long-delayed activist-friendly laws and big in- formed both the S&P 500 Energy investment” in the fi ve years on the amount of yuan residents project dies, the lost value could vestors’ recent embrace of uppity Index and TransCanada since San- from 2009, with the problem can buy, reinforcing its dom- pale next to the extra lucre a New shareholders mean management dell pressured it to move more as- worsening in the past two years, inance as an off shore trading York hedge fund thinks sharehold- can’t rest easy. sets into its pipeline MLP last year. a government offi cial and an centre for Chinese assets. ers would reap from a break-up of It is cheaper and easier to launch During an investor day on economist were quoted as say- RQFII quotas enable yuan the US$35 billion company. a proxy fi ght in Canada, where an Wednesday, TransCanada said it ing in the local media. From held outside of China to be Sandell Asset Management investor with just a 5% stake can expected dividends to grow more relying too much on invest- invested in the nation’s secu- thinks the Canadian pipeline op- call a shareholder meeting. And quickly starting next year. Chief exec- ment to lift the economy to sup- rities and so far, allocations erator could be worth about a third just as big pension funds are doing utive Russ Girling’s decision to stick plying state fi rms with cheap totalling 770 billion yuan have more if it spun off its non-core pow- across the border, some big Ca- to his guns suggests he is confi dent he loans that fuelled unnecessary been granted, with Australia er generation business and made nadian investors are increasingly has the support of his shareholders. spending, the two pressed Chi- and Canada each getting 50 better use of a tax-advantaged US supportive of activists. Th e Ontar- But as the Keystone pipeline’s roll- na to face up to its problem of billion yuan this month. — subsidiary. Sandell argues there are io Teachers’ Pension Plan, for in- er-coaster ride in Congress shows, making investment with low or Bloomberg no obvious synergies from owning stance, backed Pershing Square’s that, too, may be fl eeting. — Reuters no effi ciency. — Reuters 26 WORLD BUSINESS FRIDAY NOVEMBER 21, 2014 • THEEDGE FINANCIAL DAILY

IN BRIEF

Temasek and the Winklevoss Credit line not approved twins invest in US start-up SINGAPORE: A Washing- ton-based start-up that uses artifi cial intelligence to predict OW Bunker chairman: Board ‘extremely surprised’ by the huge trading loss the outcome of legislation has received US$7 million (RM23.5 million) in funding from in- COPENHAGEN: Th e board of OW learn of the US$150 million trading Bunker will meet with its liquida- vestors that include Singa- Bunker did not approve a large credit loss, he said. tor KPMG on Dec 4 to discuss the pore’s Temasek Holdings and line and had been “extremely sur- Th e world’s largest bunker fuel fi rm’s outstanding debt, which to- the Winklevoss twins, made prised” by a huge trading loss, the company fi led for bankruptcy on tals almost US$1.5 billion globally. famous from their lawsuits chairman said yesterday, referring Nov 7 only eight months after listing Oil fi rms have stepped up legal against Facebook Inc, the to the two incidents blamed for the in the second-biggest stock market action against OW Bunker’s Singa- Washington Post reported yes- Danish ship fuel company’s collapse. fl otation in Denmark since 2010. pore units since the announcement terday, according to Th e Straits A credit line estimated at be- “It remains unclear to the board with the arrest of ships, now total- Times. FiscalNote, founded by tween US$120 million (RM404.4 how this could happen and the ling seven, Singapore court docu- a United States entrepreneur, million) and US$130 million was giv- board is looking very much forward ments show. says it uses data-mining soft- en by OW Bunker’s Singapore-based to an in-depth investigation into the Six vessels — Star Quest, Petro ware and artifi cial intelligence subsidiary Dynamic Oil Trading to course of events,” Jensen said in a Asia, Luna, Nepamora, Zmaga and to predict the fate of the bills Tankoil Marine Services. statement. Arowana Milan — were arrested proposed by state legislatures Th e unrecoverable credit grant- Creditors of OW Bunker Far East in the city-state over Nov 15-17 by and by Congress each year ed Tankoil was never submitted to and Dynamic Oil Trading have fi led Rajah & Tann Singapore LLP, which with 94% accuracy, said the the board, let alone authorised by claims totalling US$38.8 million earlier this month also arrested ship newspaper. “We will be uti- it, chairman Niels Henrik Jensen against the companies since OW fuel delivery barge Laguna. lising the resources for inter- said, adding that any credit of more Bunker fi led for bankruptcy, accord- Th e law fi rm made the latest six Jensen was referring to the two national growth and product than US$10 million was supposed to ing to Singapore court documents. arrests on behalf of Phillips 66 In- incidents blamed for the Danish ship expansion,” said founder Tim be authorised. Th e board of direc- Th e Singapore arm of bankrupt ternational Trading Pte Ltd, a court fuel company’s collapse. Photo by AFP Hwang, 22. tors was also extremely surprised to Danish shipping fuel trader OW offi cial said. — Reuters ‘Gulf to reject Opec cuts to guard oil market share’ KUWAIT CITY: Gulf oil produc- Deutsche’s CoCo ers led by Saudi Arabia will likely Joko seeks to defuse fuel protests reject output cuts at an Organi- buyers are not zation of the Petroleum Export- totally irrational ing Countries (Opec) meeting with budget benefi ts next week unless they are guar- anteed their market share in a BY GEORGE HAY highly competitive market, an- BY CHRIS BLAKE alysts say. Th e stance of Kuwait, LONDON: Th ere’s method in Indonesian Qatar, United Arab Emirates the madness of those investing JAKARTA: Indonesian President students outside (UAE) and Saudi Arabia is seen in Deutsche Bank AG’s CoCos. Joko Widodo’s ability to weather the presidential as crucial for a positive Opec de- Th e German lender confi rmed opposition to higher fuel prices palace in Jakarta cision on reducing supplies to on Wednesday that it had sold hinges on convincing the public on Wednesday boost crude prices, which have US$1.5 billion (RM5 million) of that billions of dollars in savings scuffl ing with the shed a third of their value since so-called contingent convertible will be spent to improve their lives. police during a June. “Opec members are look- debt with a 10-year maturity, fol- Joko, who announced the in- protest against ing at Saudi Arabia, Kuwait and lowing the May sale of €3.5 bil- crease on Nov 17, campaigned on a Joko’s decision to UAE to shoulder the bulk of any lion (RM14.75 billion) of six-year pledge to scale back fuel subsidies, hike fuel prices production cuts, and they can,” paper. Buying bank debt that is which cost the country more than this week. Photo said Kuwaiti oil expert Kamel written down when the share US$20 billion (RM67 billion) a year, by Reuters al-Harami. — AFP price is tumbling sounds crazy, to free up funds for infrastructure, but it might not be right now. education and healthcare in South- Singapore’s local wholesale CoCos are not for the east Asia’s largest economy. While but Joko must be sure to deliver Part of the plan to soften the trade falls 5.7% in 3Q faint-hearted. A trading dis- the move has been welcomed by other meaningful benefi ts in the blow of higher fuel costs is to shift SINGAPORE: Singapore’s do- aster could push Deutsche investors it will expose Joko, to po- near term in order to sustain his money into a government pro- mestic wholesale trade slipped Bank’s core Tier 1 ratio from a litical attacks and the risk of strikes popularity.” gramme, kicked off Nov 3, that will 5.7% in the third quarter of this healthy sounding 11.5% to be- and street protests less than two On Nov 18, police used tear gas to give low-income families access to year compared to the same pe- low 5.125%, at which the bond months after he took offi ce. disburse protesters outside the ener- free health care, provide education riod a year ago, the Department would be written down to the “Th e public overwhelmingly dis- gy ministry, with fumes entering the for 160,000 children and extend of Statistics Singapore said yes- extent required to return to the approves of fuel price hikes, in part nearby grounds of Bank Indonesia cash grants. “About 15 million fam- terday, Th e Straits Times report- trigger point. Worse, even with- because the economics and fi scal where Governor Agus Martowardojo ilies will receive 200,000 rupiah per ed. The drop was largely due out a conversion, Deutsche is aspects of the issue are very poorly and his board were meeting. month, which is signifi cantly larg- to the general wholesale trade free to stop paying interest any understood,” said Kevin O’Rourke, “Hopefully, the decision to shift er than the impact, which will be industry, which saw the largest time it wants. a political analyst and author of the subsidy to the productive sec- around 150,000 rupiah per month,” decrease of 22.7% in domestic Although €82 billion of Co- Reformasi: Th e Struggle for Power tor will open the door for a budget Energy Minister Sudirman Said sales. Other industries that expe- Cos have been issued, no one in Post-Soeharto Indonesia. “Past that will be more benefi cial for the told Bloomberg TV on Nov 18. Th e rienced drops included metals, knows how they would trade experience has shown that the pub- Indonesian people,” Joko said in an- payments will be made for the next timber and construction ma- in a crisis. If coupons are can- lic will grudgingly accept increases, nouncing the increase. eight months, he said. — Bloomberg terials (-7.3%) and petroleum celled, investors might start to and petroleum products (-6.8%). treat them like equity rather Excluding petroleum, domestic than debt. Th ey are already vol- wholesale trade fell 4.6%. atile — CoCo values lost 4 per- Indonesia revises Islamic banking rules centage points peak-to-trough Unusual gold moves in Asian in the third quarter, appreciably hours puzzle jittery traders more than somewhat less risky BY BERNARDO VIZCAINO remains behind more mature mar- the market by 2023, but the sector’s SINGAPORE: Some of the big- but still heavily subordinated & GAYATRI SUROYO kets in Malaysia and the Middle East. growth is stalling. As of September, gest price moves in gold since junior bank debt. Indonesia’s financial services there were 11 full-fl edged Islamic late October have, unusually, Still, Deutsche’s latest is- SYDNEY/JAKARTA: Indonesia’s authority, Otoritas Jasa Keuangan banks and 23 Islamic business units occurred in Asian hours, and sue was scooped up, and at a regulator has issued revised Islamic (OJK), announced the move on in Indonesia with combined assets traders more accustomed to smaller risk premium than seen banking rules covering asset qual- Wednesday as part of a package of of 244 trillion rupiah (RM68 billion), following the lead of their West- on roughly comparable recent ity and capital adequacy to help 20 new rules, which range from cor- representing a 7.2% growth year- ern counterparts suspect a big CoCos from European rivals clarify market practices, while in- porate governance to microfi nance. on-year. Last week, the OJK signed increase in algorithmic trading Societe Generale SA and Uni- dustry growth has now dropped to Indonesia’s Islamic finance an agreement with the country’s may be to blame. “It is unusual Credit. Had Deutsche not sized single-digits. market only holds a 4.5% of total national syariah board to strength- for Asia to be seeing these busy its latest issue at the upper end Authorities want to encourage a banking assets in the country as of en oversight of the Islamic fi nance trading sessions,” said David of estimates, the pricing could wider product range to help Islam- September, the latest central bank industry, supporting a centralised Govett, head of precious met- have been tighter, according to ic banks grab a bigger share of the data showed. Authorities want Is- approach being favoured elsewhere als at broker Marex Spectron one market source.— Reuters Indonesian market, a sector which lamic banks to hold at least 15% of around the globe. — Reuters in London. — Reuters FRIDAY NOVEMBER 21, 2014 • THEEDGE FINANCIAL DAILY WORLD 27

IN BRIEF

Shooting at US university, Th ai police hold 3 students 3 wounded, gunman dead WASHINGTON: A gunman opened fi re at a university in Florida early yesterday, leaving Hunger Games screenings axed after arrests for making three-fi ngered salute three people injured, before offi cers killed the shooter, po- lice said. Just after midnight at BANGKOK: Th ai police detained nel Kittikorn Boonsom of Bangkok eastern province of Khon Kaen. “It is just an activity to watch Florida State University in Tal- three university students at Bang- Metropolitan Police told AFP. Earlier yesterday around 20 po- a movie ... We will not show the lahassee, a gunman opened fi re kok cinemas yesterday while at least “Th e third detainee is a female lice offi cers, surrounded by dozens three fingers. Everyone is afraid outside a library, refused to put two theatres in the junta-ruled na- student nabbed in front of Siam Par- of journalists, gathered outside to do or to say something wrong ... down his weapon when chal- tion cancelled opening screenings agon’s cinema because she fl ashed the Scala cinema in downtown Today, in Th ailand, we don’t have lenged by campus police and of the Hunger Games. an anti-government sign several Bangkok where the theatre had freedom anymore,” the Th amma- was shot dead, a Tallahassee A female student was escort- times,” he said. cancelled showings of the latest sat Univerity student said before Police Department spokesman ed out of a cinema in a high-end Th e army wants to hold “talks” Hunger Games fi lm. being driven away. said. Students at the universi- mall in the capital after fl ashing the with the female student, said Kittiko- Th ere were a few students mill- Th e other male student detained ty with a student body of more three-fi nger salute from the fi lms — rn, adding: “She may be taken to the ing around but no protests, accord- at the cinema was seen carrying a than 40,000 told US media that an unoffi cial symbol of resistance army camp for attitude adjustment.” ing to an AFP reporter at the scene. copy of George Orwell’s anti-au- as many as four shots were fi red, against the army’s May coup — while Th e detentions come after fi ve Ratthapol Supasopon, one of thoritarian novel Nineteen Eighty- although they said it was inside police detained two other students, other students were briefl y held the two detained male students Four. Kittikorn confi rmed it was the the library, not outside. — AFP who did not appear to be protesting, by the military on Wednesday who said he was part of a Facebook same man who had been arrested outside a nearby cinema. for fl ashing the three-fi nger sign group giving away free tickets for fi ve months earlier after reading S Korea ferry operator “Two students are under interro- during a speech by Th ai Premier the fi lm, was taken away by police the novel while eating a sandwich. chief gets 10 yrs in jail gation at the police station,” Colo- Prayut Chan-O-Cha in the north- after speaking to journalists. — AFP SEOUL: A South Korean court sentenced the head of the com- pany that operated a ferry which capsized in April to 10 years in jail yesterday over his role in the Six nurses killed in country’s worst maritime disas- ter in decades. Kim Han-sik, the chief executive of Chonghaejin attack on Chinese Marine, was found guilty of neg- ligence causing death and em- bezzlement. His sentence was medical workers the toughest penalty handed down to anyone other than the ferry’s crew over the deaths of BEIJING: A man with a history of under the administration of the 304 passengers, most of them mental illness stabbed and killed Beijing military region, meaning teenage children. — Reuters seven people, six of them nurs- it is likely a military-run facility. es, at a sanitorium dormitory in A suspect, who also worked at Second wind for deadly northern China yesterday in the the sanitorium, has been detained, western New York storm latest of a string of attacks on med- the Xinhua report said. Th e Bei- NEW YORK: Western New York ical workers, state media reported. jing News identifi ed the suspect state braced for a fresh wave An administrator was among as Li Xiaolong, 27, saying he had of heavy snow on Wednesday those killed and another nurse was confessed to having a history of after a freakish storm swept off seriously injured in the attack in mental illness and had received the Great Lakes and deposited the early hours of the morning, the treatment in Beijing and the near- as much as 1.5m of snow, kill- offi cial Xinhua news agency said. by city of Tangshan in 2006. ing at least seven people and A spate of attacks on doctors While the Chinese government stranding motorists overnight. and nurses in the past two years has ramped up health spending, FUTURE SCOOTER... In many parts of the world, the scooter is one of the Th e new bout of snow could has prompted the health minis- hospitals are frequently over- most popular ways to get around. By going back to the drawing board and designing bring 1m of snow in parts of try to provide better security at whelmed with patients. Doctors an electric scooter for carrying cargo, Lit Motors, a small company based in San Erie County, which includes hospitals. are also badly paid, leading to Francisco, has come up with a design that it says should be safer, more effi cient, more the city of Buffalo. “That’s a Th e sanitorium is in Beidaihe, corruption and a suspicion that useful, but no more expensive. The Cargo Scooter design is fully electric and runs on year’s worth of snow,” said an a seaside resort close to Beijing staff are more interested in mak- lithium iron phosphate batteries, and is designed to carry cargo boxes measuring up to Erie County spokesman, noting favoured by senior members of ing money by prescribing unnec- 56cmx56cmx56cm. and weighing up to 136kg, with a top speed of 56kph, and a range a state of emergency remained the ruling Communist Party. Xin- essary drugs and treatment than of 80km to 160km per charge. in eff ect. Driving was banned hua said the former hospital was tending the sick. — Reuters on many roads. — Reuters 28 live it! FRIDAY NOVEMBER 21, 2014 • THEEDGE FINANCIAL DAILY FRI WELLBEING . THE ARTS . WINE+DINE . STYLE+DESIGN . LEISURE Personal ASSISTANT COMPILED BY QUAH SU ANN

WORK. LIFE. BALANCE

THE Kwang Tung Dance Company presents the 9th edition of Kua Bu, with the theme The Unicorn’s Travelogue to be unveiled at the Damansara Performing Arts Centre (DPAC) Black Box, Petaling Jaya, on Nov 21, 22 and 23. The dance series is completely choreographed and produced by their dancers — a culmination of thoughts and sentiments towards life through six diff erent people, depicted by the image of a unicorn galloping and searching in a vast desert of people, targeting something higher in value. Shows will take place at 8.30pm on Nov 21 and 22, and at 3pm on Nov 22 and 23. Tickets are priced at RM45 for adults and RM35 for students, senior citizens and the disabled. Call the ticketing counter at 03-4065 0001 or 017-500 6747 for enquiries.

JAZZ enthusiasts in the Klang Valley will be able to enjoy a special night of jazz featuring some of the country’s best jazz acts at HUNGRY Laundry, The Curve, Mutiara Damansara, Petaling Jaya on Nov 22 from 7pm onwards. A collaboration between Laundry and the organisers of the Penang Island Jazz Festival, it will be a one-night only pre- for more show performance, giving a taste of what is to come at the annual event. Featuring a line-up of top local Jazz musicians — Roger Wang & Sheila Julis, Bihzhu, Fazz, Junk and Vivian Adelene Adram & Northern Jazz Unit, New ‘Hunger Games’ thrills fans, divides critics the audience can expect to be entertained by artistes performing a wide variety of styles ovie goers worldwide With much of the original cast back trailer for a fi lm yet to come, (the fi lm) including swing, Latin jazz, contemporary will flock to see the and music by superstar New Zealand spreads perhaps 45 minutes of dramat- jazz, acoustic fi ngerstyle, funk jazz, blues, etc. new Hunger Games teen Lorde, the movie presses all the ic material across two far-too-leisure- film this week, like- buttons of its predecessors, 2012’s Th e ly hours,” commented the Hollywood ly making it another Hunger Games and last year’s sequel, Reporter. blockbuster mega-hit Hunger Games: Catching Fire. Industry journal Variety meanwhile M— even if critics are divided on Katniss Adding to the hype, a mobile game opined that “the series’ two-part fi nale Everdeen’s latest adventure. has been launched, and a stage show gets under way in solid, absorbing if not Hunger Games: Mockingjay — Part 1 is in the works in Britain. exactly inspired fashion.” is the third instalment of the franchise Box Offi ce Mojo predicts it will score Th e fi lm returns to the devastated based on Suzanne Collins’ best-selling the biggest domestic box offi ce of the autocratic future world of Panem, where young adult books, starring Jennifer year of US$350 million (RM1.18 billion) Katniss has taken refuge in rebel-held Lawrence as the survivor of a bloody to US$400 million — slightly less than District 13 after escaping from the Hun- FOODIES rejoice! Head over to Avenue K, reality TV contest among children and its two predecessors but still a highly ger Games at the end of the second Kuala Lumpur, from today until Sunday for teens in a dystopian future. creditable performance. movie. a celebration of fl avours, good food and In this episode, she moves beyond One fi lm too many? She agrees to become the symbol of culinary heritage. The Week of Taste gives fi ghting just for her own life in the an- Part of the reason for lower box offi ce the rebellion to rally resistance forces you the chance to experience the wonders nual titular games, as she takes on the expectations is the fact that, as with the from the 12 other districts against the of food. On top of that, get an education on Capitol from the rebel base of District Twilight and Harry Potter franchises, the Capitol — but only if the rebels help to the origins of various delicacies, how they 13, becoming the Mockingjay symbol fi nal book in the series has been turned free her boyfriend, Peeta, held captive land on the table and what makes good of an entire revolution. into two movies. by the Panem leaders. food. From homemade soul food to milk Th e fi lm is dedicated “in loving mem- In both cases, the penultimate fi lm British actress Natalie Dormer - and cheese to coff ee, each of the specially ory” to Philip Seymour Hoffman, the saw a slight decrease in its earnings. But known to many as Margaery Tyrell selected vendors brings out their best to the Oscar-winning actor who died of an ac- the lowered forecasts could also refl ect from Games of Th rones, and who plays public. Be ready to tickle your palette with cidental drug overdose during back-to- some underwhelming critical response propaganda video maker Cressida in a plethora of fl avours! Visit theweekoftaste. back fi lming of the movie and the Mock- to the movie. this fi lm — paid tribute to Lawrence. com.my for more details. ingjay — Part 2 fi nale, due out next year. “Like an overgrown and bloated “Everything that people have come FRIDAY NOVEMBER 21, 2014 • THEEDGE FINANCIAL DAILY 29 live it! WELLBEING . THE ARTS . WINE+DINE . STYLE+DESIGN . LEISURE

PHOTOS BY AFP

02

01. (From left) Liam Hemsworth who plays Gale Hawthorne, director Francis Lawrence, Jennifer Lawrence who plays Katniss Everdeen and Josh Hutcherson who plays Peeta 01 Mellark attending the premiere of Lionsgate’s The Hunger Games: Mockingjay — Part 1. to understand about Jennifer Lawrence critics on the Rotten Tomatoes review is true … She has a very buoyant energy, website, a scorching 99% of movie-goers 02. Donald Sutherland plays President and it fi lters on a set like that, with such said they want to go and see it. Coriolanus Snow who is a native of a long intensive shoot — it fi lters down While much of the world will be able the Capitol and is the tyrannical and from the top,” she told AFP. to see Hunger Games: Mockingjay Part ruthless President of Panem. Not all industry analysts are down- 1 starting this week, fans in China will beat about the fi lm’s prospects. have to wait a little longer, according 03. Lawrence who the 2013 Best “Th ere is no slowing down Mocking- to the Hollywood Reporter. Performance by an Actress in a jay or Hunger Games for that matter,” Th e industry journal said its release Leading Role for the movie Silver said Jeff Bock of box offi ce tracker Ex- in China had been delayed until Janu- Linings Playbook. hibitor Relations. ary, because Transformers: Age of Ex- “Th is will undoubtedly be the biggest tinction had done better than expected opener of the franchise, possibly reach- there, making the box offi ce higher for ing up to US$170 million in its debut,” foreign than domestic fi lms. Bock told AFP. Th e Hunger Games: Mockingjay — Fans seem to agree: while the movie Part 2 is due for release in the US on has a tepid 74% approval rating from Nov 20, 2015. — AFP 03

m) at- re- od hile ale not PICK OF THE DAY ted ere The Magnum Café fi nally opens its doors in Malaysia! The famous ice cream eld brand brings its popular sit-down café and ice cream parlour to Mid Valley un- Megamall, Kuala Lumpur, with a two-storey presence on the newly-revamped nd 3rd fl oor of the mall. Patrons have an option to either dine in — the café also serves meals — or take away your customisable Magnum ice cream. Coat, l of top and drizzle your Magnum (choice of vanilla or chocolate brownie) from ces scratch with a selection of sauces and toppings to create your ‘Make Your Own’ the masterpiece from RM9.90. Dine-in customers can enjoy a selection of Mag- p to num desserts, savoury dishes, small bites and coff ee. An interesting snack to ive try is the Almond-Crusted Fries with chocolate dip (RM15). Open from 10am to 10pm daily. Visit www.facebook.com/MagnumMalaysia for more details. r - ell ays in e. me 30 live it! FRIDAY NOVEMBER 21, 2014 • THEEDGE FINANCIAL DAILY WELLBEING . THE ARTS . WINE+DINE . STYLE+DESIGN . LEISURE

We swallow greedily any lie that fl atters us, but we sip only Zen TODAY little by little at a truth we fi nd bitter. — Denis Diderot

LOOKING EAST Glittering Golden Horse

Gong Li, Jacky Cheung, Angelica Lee, Stephen Fung among big names to grace awards ceremony

BY LK TAN fame after starring in Taiwanese director Ang Jacky Cheung Lee’s 2007 espionage thriller Lust, Caution, he Golden Horse Awards, one of will also walk the red carpet. the most prestigious film awards Tang scores a best lead actress nod with Chen Jianbin in the Chinese-speaking world, her portrayal of a renowned writer in 20th is set to dazzle yet again in its century China in Th e Golden Era, directed 51 years of celebrating the best by Hong Kong’s Ann Hui. film works in Asia. Chinese actor Chen Jianbin, meanwhile, TRolling out the red carpet tomorrow is all poised to snap a few “Golden Horses” evening in the National Sun Yat-sen Me- tomorrow. Th is is because the veteran ac- morial Hall in Taipei, the awards presenta- tor is nominated for best lead actor, best tion ceremony is expected to be graced by new director and best adapted screenplay an array of glittering A-listers from China, for A Fool, as well as best supporting actor Hong Kong and Taiwan. for Taiwan-produced Paradise in Service. Angelica Th e organiser has said more than 80% Chen, 44, is no stranger to TV viewers Lee Sinje of the nominees across all categories have here. His Chinese imperial court drama se- Andy Lau agreed to attend the presentation ceremony, ries, Th e Legend of Zhen Huan, co-starring marking a new record high in recent years. Sun Li, was such a hit in 2012 that it also So fans will be waiting with bated breath attracted strong viewerships in Singapore, for the arrival of Chinese actresses , Taiwan and Hong Kong. and , Hong Kong stars Hong Kong Cantopop Heavenly King, Jacky Cheung, Stephen Fung and Aaron Jacky Cheung, will grace the ceremony as a Kwok, Taiwanese director Slyvia Chang, as performer. He is belting out his new single, well as Malaysian star Angelica Lee Sin Je, Love with the Rest of My Life, as a salute to just to name a few. fi lmmakers. Gong, 49, who rose to international star- He will be accompanied by a 22-member dom by starring in Chinese director Zhang orchestra consisting of the best musicians judging panel this year is equally impressive. Th e Golden Horse Awards honour Chi- Yimou’s fi lms that include Raise the Red Lan- from Hong Kong and Taiwan, reported Chi- Th at includes Hong Kong actor-director nese-language fi lms made in Taiwan, China, tern, will be a fi rst-timer at the Golden Horse. nese-language media. Stephen Fung, who sits on the judging seat Hong Kong or elsewhere. She has been nominated for best lead Cheung was quoted as saying: “I have of the Golden Horse Awards for the fi rst time. After making a big bang at the awards last actress for her role in Chinese family drama full respect for the Golden Horse Awards, Th e panel, led by veteran Chinese-Amer- year, Malaysia did not make the cut for any Coming Home, a movie set during the era of and am honoured to be given the chance to ican actress and consisting of categories in 2014. Singapore and Malaysia China’s Cultural Revolution. perform at the event. Usually I only get to Hong Kong superstar Aaron Kwok, Hong made a big imprint in the award’s history by Th e movie, marking her reunion with di- see fellow artistes when I fi lm a movie. But Kong director Stanley Kwan and Taiwanese winning best picture (Ilo Ilo), best original rector Yimou after their last project in 2006, in an event such as this, I get to meet a lot actor Chen Po-Wen, had to review a total of screenplay (Ilo Ilo), best new director (An- was released in Malaysia in August. of people from the fi lm industry. It’s great.” 38 fi lms in the nomination list and decide thony Chen) and best supporting actress Fellow actress Tang Wei, 35, who shot to Last but not least, the line-up for the the outcome tomorrow. () in 2013.

4.98 128.98 FRIDAY NOVEMBER 21, 2014 • THEEDGE FINANCIAL DAILY SPORTS 31

IN BRIEF

Vettel to join Ferrari, Hamilton, Rosberg braced says offi cial, Alonso’s departure confi rmed MILAN: Ferrari confi rmed yes- terday that four-time world champion Sebastian Vettel (pic) for desert double will join the Italian Formula One giants from 2015. Th e an- nouncement was made min- utes after Spaniard Fernando Th e outcome is open to many permutations with double points going to the winner Alonso’s de- parture from Ferrari was BY TIM COLLINGS But it is also one that leaves the one of the sport’s most dramatic fi - ite after winning fi ve of the last six confirmed. final outcome open to a myriad nales after falling down the order races, a run that was halted by Ros- Two-time ABU DHABI: Lewis Hamilton goes of permutations. In any normal when a rainstorm hit the Brazilian berg’s retaliation in Brazil where world cham- into Sunday’s ‘double jeopardy’ year, Hamilton could take the title Grand Prix. he triumphed for the fi rst time in pion Alonso’s season-ending showdown at Abu with a top six fi nish in his supreme Rain is unlikely, if not improba- eight races since the German Grand fi ve-year spell Dhabi knowing he is one race away Mercedes car, no matter what Ros- ble, on Sunday, but any kind of me- Prix in July. with Ferrari from his dream of a second world berg manages to achieve. chanical failure that might stop or Th at victory increased Rosberg’s will be over at title, or a nightmare end to Formula Th is season, however, thanks to hamper the progress of either man, total to fi ve for the season compared the end of the season after the One’s duel in the desert. the introduction of double points for and therefore decide the outcome with Hamilton’s 10. Hamilton, how- Italian “Scuderia” confi rmed Th e 29-year-old Briton leads his the fi nal race, the Englishman could of a roller coaster title race that has ever, leads the title race by 17 points. the Spaniard’s departure yes- Mercedes teammate and one-time be given another taste of the disap- been tense and sometimes acri- “Th ere is zero comfort going into terday. In a statement that paid teenage friend German Nico Ros- pointment he experienced in Brazil monious, would be a nightmare the next race because it’s 50 points tribute to Alonso’s contribution berg by 17 points, a situation that is in 2007 and at the spectacular Yas too for the Mercedes team who are to gain,” he said. “In the last race, to the Formula One giants, Fer- certain to deliver a Mercedes works Marina circuit in Abu Dhabi in 2010. horrifi ed by that prospect. you never know what is going to rari ended months of specula- team driver as the drivers’ champion In 2008, he won the title with a On recent form, Hamilton goes happen so I’m going to the last race tion regarding Alonso, who has for the fi rst time since 1955 last corner overtake that delivered into Sunday’s 55-lap race as favour- to win.” — AFP been tipped to return to the McLaren team. — AFP Upstart Thomas dropped by France after missing IPTL boss Prost, Heidfeld take new training PARIS: Rising star Teddy unconcerned Th omas has been sanctioned rivalry to Malaysia by France rugby union man- over Federer ager Philippe Saint-Andre for missing a training session, injury PUTRAJAYA: Nick Heidfeld and Nico- and dropped for tomorrow’s las Prost will take their new rivalry Test against Argentina in Par- BY TALEK HARRIS to Malaysia this weekend after their is.Thomas made a stunning spectacular crash threatened to over- debut against Fiji, becoming SINGAPORE: Th e head of the shadow the inaugural Formula E only the second Frenchman to new International Premier Ten- electric car race in Beijing. As Lewis score a hat-trick of tries on his nis League (IPTL) shrugged off Hamilton and Nico Rosberg contest fi rst appearance for Les Bleus. concerns over Roger Federer’s Formula One’s championship de- Th e 21-year-old earned a third fi tness yesterday as the Swiss star cider in Abu Dhabi, Heidfeld and straight call-up on Wednesday battles a back injury. Founder Prost’s season is just getting started for the Test against the Pumas and managing director Mahesh as Formula E heads into race two. but the young Racing-Metro Bhupathi said he had received re- Th eir fi rst outing ended in fi re- player forgot to attend training assurances from Federer’s camp works as leader Prost cut off Heid- on Wednesday evening along as the clock ticks down to the feld’s attempted pass at the fi nal cor- with the squad at the French tournament’s debut season. ner, sending the former F1 driver’s national training centre at Mar- A possible withdrawal by car cartwheeling into the air. coussis, outside Paris. — AFP Federer, who pulled out of Sun- “My victory was stolen. It is really day’s World Tour Finals decider hard,” said Prost, son of Formula One Singapore, Japan aces but is playing the fi nal great Alain, who was confronted by share masters against France this weekend, Heidfeld after the accident. Prost lat- early lead would be a major blow to the er apologised for causing the crash, Prost (right) of France argues with Heidfeld after crashing during the Formula E MANILA: Mardan Mamat of IPTL, which starts in Manila next which allowed Brazil’s Lucas di Grassi Championship race in on Beijing Sept 13. Photo by Reuters Singapore and Japan’s Daisuke week. Rafael Nadal is the notable to slip through and become Formula Kataoka overcame gusty winds absentee in a tournament which E’s fi rst winner. Th e incident provid- close to the prime minister’s offi ce at speedsters, while top-fl ight racing to post seven-under par 65s and features a who’s-who of current ed an explosive start for Formula E, speeds of 225kph. Th e 10-race cham- expertise and competition will help share the opening round lead at and former tennis stars. the battery-powered series billed pionship concluding in London next develop the technology. Drivers are the Resorts World Manila Mas- Bhupathi said he hoped the as a more environmentally friendly June pits 10 teams and 20 drivers in using identical vehicles this season, ters golf tournament yesterday. made-for-TV IPTL, which puts a alternative to Formula One. one-hour, urban-centre races. a collaboration between F1’s Wil- Th ree-time Asian Tour winner limit on match times and features Th is Saturday the second race is It is seen as a potential boon to liams, McLaren and Renault, but Mardan, 47, hit all but one green a shot-clock, DJs and cheerlead- in Putrajaya, where the single-seaters the electric car industry by show- will be able to design their own next in regulation for eight birdies ers, would become a strong draw with the distinctive whine will race ing “green” cars can also be sleek season. — AFP against a lone bogey. Kataoka, for players even at the end of a 26, needed only 25 putts in a sev- long season. “We’ve created this en-birdie round to put himself in exciting format and they’ll hope- contention for a maiden Asian fully schedule us along with the Tour victory. — AFP four Slams and they can work Zou transforms China’s pro boxing landscape around it,” he said at the launch Japan’s Inamori sets pace of the team. BY DANIEL HICKS medal-winning fl yweight Zou who Sheng Li, chief executive offi cer of at Dunlop Phoenix Teams representing Manila, has been the driving force behind China sport events giants SECA, has TOKYO: Japan’s Yuki Inamori Singapore, New Delhi and Dubai MACAU: Manny Pacquiao will be pro boxing’s rise in China. resulted in the Venetian Macau be- stole the thunder from a strong will play each other in the four cheered by thousands of fellow Fili- Zou had a cameo appearance in coming Asia’s premier boxing venue fi eld with a birdie blitz yesterday, cities in a mini-league packed pinos as he defends his WBO welter- the latest “Transformers” fi lm block- in less than two years. It also saw Top fi ring a seven-under-par 64 for into a compact schedule of about weight title in Macau at the weekend, buster and stars in a new TV ad- Rank and SECA stage the fi rst ever a one stroke lead after the fi rst three weeks. But it has piqued but without Zou Shiming the fi ght vertisement for Beats headphones professional card in mainland Chi- round of the Dunlop Phoenix interest elsewhere. Th e profes- would be happening elsewhere. which will debut this weekend in Asia na in Shanghai three months ago. tournament. Aided by a red-hot sional women’s tour is fl oating Chris Algieri is Pacquiao’s latest alongside NBA star LeBron James Sunday will see unbeaten Zou’s putter, the 20-year-old carded the idea of its own team tour- opponent at the 15,000-seat Cotai and tennis legend Serena Williams. sixth contest, a 12-round fi nal elim- nine birdies against two bogeys nament and the India-based Arena where the eight-weight world “Zou is the engine behind all of inator for a world title shot, and Li to reach the clubhouse with a Champions Tennis League start- champion defeated Brandon Rios this activity in China,” said Top Rank believes Zou can do for pro boxing, narrow advantage over Austral- ing this week. — AFP a year ago in the southern Chinese promoter Bob Arum. Arum’s asso- once banned in China, what Yao ia’s Brendan Jones in Miyazaki, city. But it is double Olympic gold ciation with Zou and his manager Ming did for basketball. — AFP western Japan. — AFP 32 SPORTS FRIDAY NOVEMBER 21, 2014 • THEEDGE FINANCIAL DAILY

IN BRIEF

Matthew, El Shorbagy Non-broadcaster may be in pre-match spa : World champion Nick Matthew and world No 1 Mo- hamed El Shorbagy were in- volved in a high temperature ex- selected as FAM sponsor change before their World Open squash semi-fi nal yesterday, add- ing further fl avour to one of the tastiest matches of the year. Th e Zenith-IMG’s bid is the highest at RM75 million Englishman and the Egyptian traded words in an even sharp- er and more unequivocal man- BY T VIGNESH way more matches will be aired and ner than they have often traded broadcasters can also make money. blows with the racket over the PETALING JAYA: With a non-broad- “Don’t forget that Astro is also past few years. It began pre-tour- caster said to be the favourite to win a media company and it has been nament when El Shorbagy, aged the bid to sponsor the FA of Malay- biased when it comes to player in- 23, alleged that his rival was past sia (FAM) for the next fi ve years, terviews and press conferences all his peak, while Matthew, who the question of who will broadcast this while. So, for a change it would has been aiming to become the M-League matches on television be good to see a non- broadcaster oldest male world champion at has come up. holding the sponsorship rights and 34, responded by saying that El However, industry observers and selling the broadcasting rights,” Shorbagy has only been No 1 “for football fans feel this is not some- Fadli said. a few minutes”. — AFP thing that should be of concern. At the same time, he said Zenith Media and IMG Global FAM’s move to award the deal to Reus to Bayern talk Sports are believed to be leading a non-broadcaster would benefi t doesn’t bother Ribery the race against the joint-venture Harmandar: If Zenith-IMG wins the bid, Mun: In the spirit of free entrepreneurship, the fans and the industry as a whole. BERLIN: Bayern Munich veter- of Astro Malaysia Holdings Bhd and it will go to the broadcasters. anyone can sponsor football. However there are also concerns an Franck Ribery says he is not Fox Sports Asia and the conglom- that rights issues may cost the fans. concerned about the possible erate of Telekom Malaysia Bhd and For example, three months ago arrival of Germany winger Marco Media Prima. million to air the matches. posal fi ts the bill,” said Harmandar. Taiwan baseball collapsed due to Reus at Bayern for next season. Datuk Johnny Mun, president of Both the proposals include He added that Zenith Media to- an almost identical process involv- Bayern chairman Karl-Heinz the 4As feels that Zenith as a me- broadcasting rights. gether with IMG Sports Global have ing the country’s favourite game. Rummenigge last month drew dia specialist is looking at revenue. ADOI Magazine regional publish- the capability to promote football Th e Chinese Professional Base- attention to the release clause, “Hence it would have its techni- er Harmandar Singh said that FAM in the country given the fact that ball League (CPBL) accepted the worth €25 million (RM105.49 cal people working on other things does not necessarily have to award Zenith has many clients under its highest off er from rights agency million), in Reus’ Borussia Dort- such as broadcasting issues. the sponsorship deal to a broadcaster wing and IMG is one of the leading MP & Silva, which failed to secure mund contract, which means the “In the spirit of free entrepre- because broadcasting will obviously media organisations in the world. broadcast deals — and pulled the 25-year-old could join the Bavari- neurship, anyone can sponsor foot- come into play even if a joint-venture Meanwhile, Malaysia football sup- plug within six months. an giants at the end of the season. ball. Football is an open business company such as Zenith Media and porters club “President FAM Sila Le- Fans were left without any games But France winger Ribery says he and as long as it is about promot- IMG Sports Global win the bid. tak Jawatan (PFSLJ)”representative Al on television while clubs had to would have no problem battling ing the sport, anyone can go in and “If the conglomerate of Zenith Fadli Awaludin said fans would prefer approach television stations the the Germany star for a place on sponsor,” said Mun. Media and IMG Sports Global wins to see FAM award the sponsorship CPBL had earlier snubbed. Bayern’s left wing. “He’s a good Th e Zenith-IMG bid is the high- the bid, then it will go to the broad- deal to a non-broadcaster because This lead to the resignation player, but I have been here for est at RM75 million, followed by casters. It could be Astro or Media it opens up the broadcasting rights. of CPBL Commissioner Hwang a while, even if I will be 32 [next Telekom Malaysia Bhd and Media Prima. It depends on the off er by “This way it will be better for Jenn-tai. April],” Ribery told German mag- Prima at RM70 million. Zenith and IMG Sports Global. the fans because currently Astro Fears are FAM may fi nd itself in azine Kicker. — AFP Incumbent Astro is putting a bid “It will be interesting to see what has the exclusive rights but if a a similar situation which may re- with Fox at RM50 million. would be the decision of FAM. Th e non-broadcaster sponsors, it can sult in television stations walking French scandals show It currently spends RM30 million ball is in its court now and it will sell the rights of some matches to away from the league and refusing need for coordination a year on sponsorship and RM20 have to evaluate and see which pro- Astro, Media Prima and RTM. Th is to deal with an agency. PARIS: Recent scandals that have hit French football show that sports authorities alone can- not fi ght corruption, according to a group of experts calling for Singapore seek Suzuki Cup win at new home an “international platform” to coordinate the eff orts. On Tues- day, the presidents of Ligue 1 BY PATRICK JOHNSTON seat . a mess and led to the Asean Foot- face Malaysia and Myanmar in oth- Caen and Ligue 2 Nimes plus “To play for Singapore in front of ball Federation (AFF) threatening er Group B matches. Ligue 2 Dijon’s coach Olivier SINGAPORE: Defending champi- huge crowds while defending our to take the event away. Co-hosts and 2008 winners Viet- Dall’Oglio were in custody for ons Singapore will make their long AFF crown is a dream come true,” Fierce local rivalries and foot- nam have been handed a favoura- alleged match-fi xing. In a sepa- awaited bow at their glitzy new Na- Singapore winger Faris Ramli was ball’s popularity make the event ble draw alongside Laos, Indonesia rate aff air, Olympique de Mar- tional Stadium this Sunday as they quoted as saying by the Straits Times. king in the region and Singapore and the Philippines in Group A, seille president Vincent Labrune kick-off their bid for a record ex- “As a footballer it’s frustrating spent millions to fi x the grass. where matches will be played at and his director general Philippe tending fi fth Suzuki Cup title against to play a good game, turn around Th ailand won three of the fi rst Hanoi’s Hang Day Stadium and Perez as well a former president, tournament favourites Th ailand. and realise no one witnessed it. I’m four titles but have struggled National Stadium. Jean-Claude Dassier, were held The 55,000 seat venue — the looking forward to playing in front since despite boasting arguably The winners and runners-up for questioning as part of a probe centrepiece of Singapore’s S$1 bil- of a bigger crowd.” the strongest player pool of the re- from the two groups will advance to into player transfers. — Reuters lion (RM2.59 billion) Sports Hub Th at dream was under threat, gion. A 2-0 success over New Zea- a home and away two leg semi-fi nal, — opened in June but the football though, as the toll of hosting con- land on Tuesday concluded their with the victors moving through to Japan awarded 3-0 forfeit team had been forced to keep play- certs, football and rugby matches preparations for the game against the fi nal, which will also be played win after Venezuela gaff e ing on the artifi cial turf at the 5,000 left the National Stadium pitch in Singapore this Sunday, before they over two legs. — Reuters TOKYO: Asian champions Japan have been awarded a 3-0 win over Venezuela after the South Americans were found to have Keane’s Everton claims ‘nonsense’ — Martinez fi elded an ineligible player dur- ing their friendly in September. Football’s governing body FIFA LONDON: Republic of Ireland as- put under pressure by Everton to pro- and share information. We are al- good and will continue to be.” have amended the result of the sistant manager Roy Keane’s claims tect themselves on international duty. ways very proud when our players “Seamus, Darron [Gibson], James Sept 9 game in Yokohama, which that Everton routinely overstate the Keane said that Everton gave the represent their countries, and the and Aiden [McGeady] have been ended in a 2-2 draw, on their of- extent of injuries affecting their impression that their Irish players record shows that. Every player at extreme professionals and that is fi cial website as striker Salomon Irish international players are “non- were “barely able to walk”. our club is desperately proud to something we will carry on seeing.” Rondon had picked up a red card sense”, manager Roberto Martinez But Martinez told the press yes- represent their countries. McCarthy was sent home from in Venezuela’s friendly against declared yesterday. terday: “It is completely nonsense. “A lot has been said; a lot is non- the Ireland camp due to a ham- South Korea a few days earlier. Keane has suggested that players We have a good relationship with sense. Th e reality is the conversa- string problem during the inter- Japan’s goals, scored by Yoshi- like full-back Seamus Coleman and [Ireland manager] Martin O’Neill tion between managers of the as- national break without playing a nori Muto and Gaku Shibasaki midfi elder James McCarthy have been and we keep in touch frequently sociations and ourselves has been match. — AFP will stand. — AFP

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