Company : HUA YANG BERHAD
Date Of Meeting : 26/08/2015
Time : 10:30 A.M.
Venue : C-21, Jalan Medan Selayang 1,
Medan Selayang,
68100 Batu Caves,
Selangor Darul Ehsan.
Monday, August 31, 2015
Sunday, August 30, 2015
TTC Baby #1---OPK Tests
Cycle # 4
August 31, 2015 11:12:37 PM
September 1, 2015 3:56:49 PM (+OPK)
Day 13
September 3, 2015 2:21:23 PM
===================================================================
Cycle # 5
September 25, 2015 6:33:30PM
September 26, 2015 6:05:36PM
September 27, 2015 6:32:59 PM
September 28, 2015 2:46:30 PM
September 28, 2015 9:49:17 PM
September 29, 2015 6:44:39 PM
September 30, 2015 1:36:29 AM (+OPK)
Day 15
September 30, 2015 2:35:16 PM
October 1, 2015 3:33:08 AM
October 2, 2015 4:55:39 PM
Monday, August 24, 2015
Ringgit Sinks With Shares as Oil Keeps Dropping Amid Stocks Rout
August 24, 2015 — 9:55 AM MYT
By Y-Sing Liau
Malaysia’s ringgit led losses in Asia and stocks headed for their lowest close in three years as oil kept dropping amid an equities rout that’s deterring risk-taking.
Brent crude fell 0.9 percent following a 7.3 percent loss last week, putting pressure on the government finances of Malaysia, which derives about 22 percent of its revenue from oil-related sources. The Singapore dollar strengthened beyond 3 to the ringgit for the first time as share gauges from Japan to Australia sank on concern the world growth outlook is worsening.
“There’s risk-off sentiment,” said Christopher Wong, a Singapore-based senior currency analyst at Malayan Banking Bhd. “For the ringgit, it’s a double whammy as it’s also affected by oil prices.”
The Malaysian currency tumbled 1.9 percent to a 17-year low of 4.2615 a dollar as of 9:51 a.m. in Kuala Lumpur, according to prices from local banks compiled by Bloomberg. That took its drop this month to 10.2 percent, the worst performance among 24 emerging-market exchange rates tracked by Bloomberg after Russia’s ruble. The benchmark stock index retreated 1.8 percent to 1547.19, poised for its lowest close since May 2012.
The ringgit has weakened 18 percent in 2015 in the worst performance in Asia as a slide in crude prices coincides with a political scandal involving Prime Minister Najib Razak. Global funds have dumped more than $3 billion of Malaysian equities in 2015, the biggest outflow since 2008, and also cut debt holdings in July.
Reserves Drop
A drop in Malaysia’s foreign-exchange reserves is also contributing to the ringgit’s weakness, said Masashi Murata, vice president at Brown Brothers Harriman & Co. in Tokyo. Holdings fell 2.3 percent to a six-year low of $94.5 billion as of Aug. 14 from two weeks earlier, according to central bank data released Friday.
The Financial Markets Association of Malaysia said it’s encouraged by assurances from the prime minister and the central bank governor that there are no plans to impose capital controls or peg the ringgit. “Dispelling the possibility of capital controls is especially useful to foreign investors in a move that signals Malaysia’s continued commitment to an open capital and current account,” the association said in an Aug. 22 statement. Government bonds were steady, with the 10-year yield at 4.39 percent, Bursa Malaysia prices show.
Source from : Bloomberg
By Y-Sing Liau
Malaysia’s ringgit led losses in Asia and stocks headed for their lowest close in three years as oil kept dropping amid an equities rout that’s deterring risk-taking.
Brent crude fell 0.9 percent following a 7.3 percent loss last week, putting pressure on the government finances of Malaysia, which derives about 22 percent of its revenue from oil-related sources. The Singapore dollar strengthened beyond 3 to the ringgit for the first time as share gauges from Japan to Australia sank on concern the world growth outlook is worsening.
“There’s risk-off sentiment,” said Christopher Wong, a Singapore-based senior currency analyst at Malayan Banking Bhd. “For the ringgit, it’s a double whammy as it’s also affected by oil prices.”
The Malaysian currency tumbled 1.9 percent to a 17-year low of 4.2615 a dollar as of 9:51 a.m. in Kuala Lumpur, according to prices from local banks compiled by Bloomberg. That took its drop this month to 10.2 percent, the worst performance among 24 emerging-market exchange rates tracked by Bloomberg after Russia’s ruble. The benchmark stock index retreated 1.8 percent to 1547.19, poised for its lowest close since May 2012.
The ringgit has weakened 18 percent in 2015 in the worst performance in Asia as a slide in crude prices coincides with a political scandal involving Prime Minister Najib Razak. Global funds have dumped more than $3 billion of Malaysian equities in 2015, the biggest outflow since 2008, and also cut debt holdings in July.
Reserves Drop
A drop in Malaysia’s foreign-exchange reserves is also contributing to the ringgit’s weakness, said Masashi Murata, vice president at Brown Brothers Harriman & Co. in Tokyo. Holdings fell 2.3 percent to a six-year low of $94.5 billion as of Aug. 14 from two weeks earlier, according to central bank data released Friday.
The Financial Markets Association of Malaysia said it’s encouraged by assurances from the prime minister and the central bank governor that there are no plans to impose capital controls or peg the ringgit. “Dispelling the possibility of capital controls is especially useful to foreign investors in a move that signals Malaysia’s continued commitment to an open capital and current account,” the association said in an Aug. 22 statement. Government bonds were steady, with the 10-year yield at 4.39 percent, Bursa Malaysia prices show.
Source from : Bloomberg
Wednesday, August 19, 2015
July Inflation Up 3.3% On-Year, Exceeds Forecast
Wednesday, 19 August 2015
KUALA LUMPUR: Malaysia’s inflation rate, measured by the Consumer Price Index (CPI), rose 3.3% in July from a year ago, exceeding a survey of an increase of 2.9%.
Consumer prices increased more than expected in July as the effects of a consumption tax implemented on April 1 continued to have an impact.
The Statistics Department said the rise in the CPI was due to increases in alcoholic beverages & tobacco group by 13.3%; health by 4.8%; miscellaneous goods and services (+4.7%).
Overall, the index for food & non-alcoholic beverages (weight: 30.3) rose 3.8% on a on-year basis in July 2015. The index for non-food (weight: 69.7) recorded an increase of 3.0%.
The CPI for July increased 0.8% on a month-on-month basis.
For January to July, the CPI increased by 1.7% from the previous corresponding period.
Source from : The Star
KUALA LUMPUR: Malaysia’s inflation rate, measured by the Consumer Price Index (CPI), rose 3.3% in July from a year ago, exceeding a survey of an increase of 2.9%.
Consumer prices increased more than expected in July as the effects of a consumption tax implemented on April 1 continued to have an impact.
The Statistics Department said the rise in the CPI was due to increases in alcoholic beverages & tobacco group by 13.3%; health by 4.8%; miscellaneous goods and services (+4.7%).
Overall, the index for food & non-alcoholic beverages (weight: 30.3) rose 3.8% on a on-year basis in July 2015. The index for non-food (weight: 69.7) recorded an increase of 3.0%.
The CPI for July increased 0.8% on a month-on-month basis.
For January to July, the CPI increased by 1.7% from the previous corresponding period.
Source from : The Star
Wednesday, August 12, 2015
令吉持續疲弱‧ 進口乾糧漲價30%
11-08-2015 10:40
報導：洪國川
（八打靈再也10日訊）令吉兌美元匯率持續貶值，至今正逼向3令吉90仙關口，馬來西亞糧食進出口總會總會長拿督蔡保鏹指出，進口干糧至少漲價20至30%。
他透露，國內干糧多數從外國進口，例如大蒜、大蔥、米、面粉、罐頭及豆類將隨著馬幣貶值而漲價。
“不過，這類食品多數沒有徵收消費稅，消費者不必須擔心百上加斤，但是政府必須盡快控制匯率，以免通貨膨脹再度惡化。”
他接受本報電訪時說，今年農曆新年期間，兌美元是3令吉10仙，截至8月為止，已貶值至3令吉90仙，驚人的跌幅介於20%至30%。
他解釋，大馬進口糧食向來以美元來計算，貨物到港口才結算匯率，以當天匯率為標准。
“少數商家是以固定匯率來結算，但是不劃算，例如固定匯率在3令吉70仙，萬一下滑至3令吉20仙，商家自行負責差額及虧損。”
團費沒隨意漲 旅行團減少10%
馬來西亞華人旅遊業公會總會長拿督陳三順指出，令吉貶值影響前往美國的旅行團，其他國家旅遊點影響較少。
“美國團向來不是大馬人的旅遊熱門地點，每月出團的數量不多，至今減少大約10%。”
他說，去歐洲、澳洲、日本及東南亞國家的匯兌波動不大，而且多數國人喜歡到這些國家旅遊，如果有關國家匯率有變動，大馬遊客也會選擇其他匯率波動不大的國家。
陳三順解釋，匯率對旅遊社成本造成的影響包括機票、酒店、餐廳及旅遊巴士，但是業者一般不會隨意起價，以免流失客源，而影響旅遊社業務。
“不同國家匯率波動不是首日發生，多數旅行社有能力應付。”
Source from : 光明日報
報導：洪國川
（八打靈再也10日訊）令吉兌美元匯率持續貶值，至今正逼向3令吉90仙關口，馬來西亞糧食進出口總會總會長拿督蔡保鏹指出，進口干糧至少漲價20至30%。
他透露，國內干糧多數從外國進口，例如大蒜、大蔥、米、面粉、罐頭及豆類將隨著馬幣貶值而漲價。
“不過，這類食品多數沒有徵收消費稅，消費者不必須擔心百上加斤，但是政府必須盡快控制匯率，以免通貨膨脹再度惡化。”
他接受本報電訪時說，今年農曆新年期間，兌美元是3令吉10仙，截至8月為止，已貶值至3令吉90仙，驚人的跌幅介於20%至30%。
他解釋，大馬進口糧食向來以美元來計算，貨物到港口才結算匯率，以當天匯率為標准。
“少數商家是以固定匯率來結算，但是不劃算，例如固定匯率在3令吉70仙，萬一下滑至3令吉20仙，商家自行負責差額及虧損。”
團費沒隨意漲 旅行團減少10%
馬來西亞華人旅遊業公會總會長拿督陳三順指出，令吉貶值影響前往美國的旅行團，其他國家旅遊點影響較少。
“美國團向來不是大馬人的旅遊熱門地點，每月出團的數量不多，至今減少大約10%。”
他說，去歐洲、澳洲、日本及東南亞國家的匯兌波動不大，而且多數國人喜歡到這些國家旅遊，如果有關國家匯率有變動，大馬遊客也會選擇其他匯率波動不大的國家。
陳三順解釋，匯率對旅遊社成本造成的影響包括機票、酒店、餐廳及旅遊巴士，但是業者一般不會隨意起價，以免流失客源，而影響旅遊社業務。
“不同國家匯率波動不是首日發生，多數旅行社有能力應付。”
Source from : 光明日報
Tuesday, August 11, 2015
Monday, August 10, 2015
Malaysia Reserves Fall Below $100 Bln As Ringgit Slumps
By Reuters / Reuters | August 10, 2015 : 8:40 AM MYT
KUALA LUMPUR (Aug 10): Malaysia's international reserves have fallen significantly below the $100 billion threshold as the central bank struggles to slow declines in Asia's worst-performing currency in the face of a protracted political crisis.
Currency reserves fell to $96.7 billion as of July 31, Bank Negara Malaysia (BNM) said on Friday, from $100.5 billion on July 15.
The reserves, now at their lowest since September 2010, have declined $10 billion since the end of May and $20 billion this year.
Bank Negara has been selling dollars and buying ringgit since June in an attempt to stem the currency's slide, traders said, but the ringgit has still lost about 11 percent of its value against the U.S. dollar this year.
It fell 0.5 percent on Friday to 3.922 to the dollar as traders braced for the official reserve data.
In a statement, Bank Negara said the reserve position "is sufficient to finance 7.6 months of retained imports and is 1.1 times the short-term external debt."
Corruption allegations swirling around Prime Minister Najib Razak and increasing budget strains caused by weaker commodity prices have pushed the ringgit to its lowest levels in nearly 17 years.
At the same time, the dollar has relentlessly firmed against many emerging market currencies on expectations the Federal Reserve could raise interest rates in September.
Julia Goh, economist at United Overseas Bank ( Financial Dashboard) in Malaysia, said the reserves' decline to below $100 billion was largely expected due to BNM's efforts to "smoothen out extensive volatility".
She said that given the bearish outlook for commodities, "it looks like we're going to see further pressure on the ringgit in the near-term."
Jeff Ng, economist at Standard Chartered in Singapore, agreed the ringgit is likely to keep weakening, partly because of dollar strength, adding "All Southeast Asian currencies are doing badly."
Foreign investors hold nearly half of Malaysia's government bonds, and higher U.S. interest rates could prompt them to shift funds back to U.S. assets, putting further pressure on the ringgit.
PAIN FROM OIL PRICES
A deteriorating trade balance as a result of the collapse in global oil prices, and therefore the price of the liquefied natural gas that Malaysia exports, have also contributed to the ringgit's decline.
Najib recently sacked his deputy in a cabinet reshuffle, and replaced the attorney general, amid graft allegations over debt-laden state investment fund 1MDB.
The ringgit has sunk to its lowest levels since the 1997/1998 Asian financial crisis, when the government pegged the currency at a rate of 3.8 to the dollar. The peg remained in place until 2005.
The normally stable Malaysian bond markets have seen some sporadic selling, with 10-year yields up 25 basis points in two weeks.
"I won't say there is panic now but we are quite close," Amy Yuan Zhuang, a senior analyst at Nordea Markets in Singapore, said prior to announcement of end-July reserves.
"The falling FX reserves could be a sign that BNM is trying to limit the ringgit's losses," she said, adding that meant investors could not exclude the possibility of some form of capital controls being imposed.
In a note prior to the release, Societe Generale said that if reserves fall toward $90 billion, BNM is "likely to 'let it go'."
Societe Generale revised its ringgit forecast for the third quarter to 4.1000 from 3.8000.
Source from : The Edge
KUALA LUMPUR (Aug 10): Malaysia's international reserves have fallen significantly below the $100 billion threshold as the central bank struggles to slow declines in Asia's worst-performing currency in the face of a protracted political crisis.
Currency reserves fell to $96.7 billion as of July 31, Bank Negara Malaysia (BNM) said on Friday, from $100.5 billion on July 15.
The reserves, now at their lowest since September 2010, have declined $10 billion since the end of May and $20 billion this year.
Bank Negara has been selling dollars and buying ringgit since June in an attempt to stem the currency's slide, traders said, but the ringgit has still lost about 11 percent of its value against the U.S. dollar this year.
It fell 0.5 percent on Friday to 3.922 to the dollar as traders braced for the official reserve data.
In a statement, Bank Negara said the reserve position "is sufficient to finance 7.6 months of retained imports and is 1.1 times the short-term external debt."
Corruption allegations swirling around Prime Minister Najib Razak and increasing budget strains caused by weaker commodity prices have pushed the ringgit to its lowest levels in nearly 17 years.
At the same time, the dollar has relentlessly firmed against many emerging market currencies on expectations the Federal Reserve could raise interest rates in September.
Julia Goh, economist at United Overseas Bank ( Financial Dashboard) in Malaysia, said the reserves' decline to below $100 billion was largely expected due to BNM's efforts to "smoothen out extensive volatility".
She said that given the bearish outlook for commodities, "it looks like we're going to see further pressure on the ringgit in the near-term."
Jeff Ng, economist at Standard Chartered in Singapore, agreed the ringgit is likely to keep weakening, partly because of dollar strength, adding "All Southeast Asian currencies are doing badly."
Foreign investors hold nearly half of Malaysia's government bonds, and higher U.S. interest rates could prompt them to shift funds back to U.S. assets, putting further pressure on the ringgit.
PAIN FROM OIL PRICES
A deteriorating trade balance as a result of the collapse in global oil prices, and therefore the price of the liquefied natural gas that Malaysia exports, have also contributed to the ringgit's decline.
Najib recently sacked his deputy in a cabinet reshuffle, and replaced the attorney general, amid graft allegations over debt-laden state investment fund 1MDB.
The ringgit has sunk to its lowest levels since the 1997/1998 Asian financial crisis, when the government pegged the currency at a rate of 3.8 to the dollar. The peg remained in place until 2005.
The normally stable Malaysian bond markets have seen some sporadic selling, with 10-year yields up 25 basis points in two weeks.
"I won't say there is panic now but we are quite close," Amy Yuan Zhuang, a senior analyst at Nordea Markets in Singapore, said prior to announcement of end-July reserves.
"The falling FX reserves could be a sign that BNM is trying to limit the ringgit's losses," she said, adding that meant investors could not exclude the possibility of some form of capital controls being imposed.
In a note prior to the release, Societe Generale said that if reserves fall toward $90 billion, BNM is "likely to 'let it go'."
Societe Generale revised its ringgit forecast for the third quarter to 4.1000 from 3.8000.
Source from : The Edge
Thursday, August 6, 2015
Weakest Ringgit in 17 Years Unmoved by Surprise Exports Rebound
by Elffie Chew
August 5, 2015 — 9:54 AM MYT Updated on August 5, 2015 — 5:36 PM MYT
A surprise rebound in Malaysia’s exports failed to revive the ringgit, which fell to a 17-year low on prospects for a September increase in U.S. interest rates.
The ringgit is Asia’s worst performer this year, having been battered by sliding commodities prices and a political scandal involving Prime Minister Najib Razak. Most regional currencies weakened on Wednesday after comments by a Federal Reserve official fueled speculation U.S. borrowing costs will be raised next month. Malaysia’s exports rose 5 percent from a year earlier in June, the most in 12 months.
“The ringgit isn’t reacting to the better export numbers because the watch is not on trade,” said Wong Chee Seng, a currency strategist at AmBank Group in Kuala Lumpur. “The watch is on foreign-exchange reserves, which are expected to fall further,” he said, referring to this year’s 13 percent drop in holdings to $100.5 billion in mid-July.
The currency fell 0.6 percent at 3.8775 a dollar in Kuala Lumpur, prices from local banks compiled by Bloomberg show. It declined to 3.8787 before the trade numbers, the lowest since September 1998 when it reached 3.9340.
The ringgit, which has lost 9.8 percent in 2015, extended this week’s losses in early trading after Fed Bank of Atlanta chief Dennis Lockhart said in a Wall Street Journal report that he would only endorse putting off a rate increase next month should there be a significant deterioration in U.S. data.
Malaysia’s overseas shipments beat the median estimate in a Bloomberg survey for a 2.2 percent drop. The June trade surplus came in at 7.98 billion ringgit ($2.06 billion), above the 5.5 billion ringgit predicted and the highest in five months.
Ten-year government bonds were little changed with the yield at 4.07 percent, according to Bursa Malaysia prices. The five-year yield climbed five basis points to 3.69 percent. the highest since June 29.
Source from : Bloomberg
August 5, 2015 — 9:54 AM MYT Updated on August 5, 2015 — 5:36 PM MYT
A surprise rebound in Malaysia’s exports failed to revive the ringgit, which fell to a 17-year low on prospects for a September increase in U.S. interest rates.
The ringgit is Asia’s worst performer this year, having been battered by sliding commodities prices and a political scandal involving Prime Minister Najib Razak. Most regional currencies weakened on Wednesday after comments by a Federal Reserve official fueled speculation U.S. borrowing costs will be raised next month. Malaysia’s exports rose 5 percent from a year earlier in June, the most in 12 months.
“The ringgit isn’t reacting to the better export numbers because the watch is not on trade,” said Wong Chee Seng, a currency strategist at AmBank Group in Kuala Lumpur. “The watch is on foreign-exchange reserves, which are expected to fall further,” he said, referring to this year’s 13 percent drop in holdings to $100.5 billion in mid-July.
The currency fell 0.6 percent at 3.8775 a dollar in Kuala Lumpur, prices from local banks compiled by Bloomberg show. It declined to 3.8787 before the trade numbers, the lowest since September 1998 when it reached 3.9340.
The ringgit, which has lost 9.8 percent in 2015, extended this week’s losses in early trading after Fed Bank of Atlanta chief Dennis Lockhart said in a Wall Street Journal report that he would only endorse putting off a rate increase next month should there be a significant deterioration in U.S. data.
Malaysia’s overseas shipments beat the median estimate in a Bloomberg survey for a 2.2 percent drop. The June trade surplus came in at 7.98 billion ringgit ($2.06 billion), above the 5.5 billion ringgit predicted and the highest in five months.
Ten-year government bonds were little changed with the yield at 4.07 percent, according to Bursa Malaysia prices. The five-year yield climbed five basis points to 3.69 percent. the highest since June 29.
Source from : Bloomberg
Monday, August 3, 2015
Exports Sputtering To Continue
3 August 2015 9:12 AM
Source from : The Malaysian Insider
Economists say the slower pace of export growth looks set to persist even as a weaker ringgit makes Malaysian-made goods more competitive, no thanks to commodity price weakness and falling export demand. – Reuters pic, August 3, 2015.
The slower pace of export growth looks set to persist even as a weaker ringgit makes Malaysian-made goods more competitive, no thanks to commodity price weakness and falling export demand, said economists.
They predict Malaysia’s exports in the second half of this year to grow at 1% to 3%.
Malaysian exports in May declined 6.7% to RM60.5 billion from RM64.82 billion a year ago, largely due to a decline in exports to Japan and Australia, and a decline in shipments of liquefied natural gas (LNG).
“The weaker ringgit will not really benefit Malaysia as firstly, our mainstay of export products, that is electrical and electronics (E&E), is 50% to 60% dependent on imported components and trading in E&E exports would always be settled in US dollar,” MIDF Amanah Investment Bank chief economist Maslynnawati Ahmad told DigitalEdge Daily.
“Secondly, unlike in the past where a weaker ringgit would usually translate into higher commodity export receipts, this time, the declining commodity prices as well as falling export demand are putting a drag on the commodity export receipts,” she said.
Maslynnawati also cautioned that China’s economic performance will be the wild card for Malaysia’s export performance going forward.
“Although we are a net importer with China, if our exports to China continue to dwindle and our imports from that country continue to hold up well, that would cause our net trade position to worsen,” she added.
Kenanga Investment Bank Bhd economist and deputy head of research Wan Suhaimie Saidie said the weak commodity prices are expected to be a drag on overall export growth, which he projects at 2.2% for 2015.
“This is because commodities, E&E as well as export demand are not forthcoming. Exports need to go very far into the positive territory in order to achieve 6% to 7% growth for the rest of the year,” he added.
Former CIMB Investment Bank Bhd chief economist Lee Heng Guie said the falling export demand is a concern due to the impact that it has on the country’s current account surplus.
“Lower investment activity also puts a lot of pressure on the current account. Next year will still be a challenging year for the economy because commodity prices are not stabilising.
“Oil prices were expected to improve, but are now retesting new lows. There’s pressure on both oil prices and LNG,” he said.
Lee added that while exports of E&E products may “somewhat improve”, the weak global demand is nevertheless unfavourable.
“Domestic uncertainty relating to the 1Malaysia Development Bhd issue is also a problem that needs to be resolved as soon as possible,” he noted.
M&A Securities Sdn Bhd head of research Rosnani Rasul does not see commodity prices making a “big U-turn” anytime soon.
“Unless and until prices improve, there is only so much [that can be done] to increase production,” she said, adding that her export growth projection of 2% to 3% is in line with the government’s expectations.
An economist, who declined to be named, is predicting Malaysia’s 2015 export growth to be at 1.2% due to weaker trade in China and the eurozone.
Meanwhile, another economist said moderating export growth is not necessarily a sign of Malaysia’s declining competitiveness or lack of desirability for Malaysian goods and industries.
“It isn’t that our exports have become less competitive, but that export performance has been hurt by external conditions, such as advanced economies not growing as fast as we hope, and China has been bearing the brunt of the slowdown in the eurozone,” he said.
“Only the US is holding up well, but that is no longer our main export market. As for export volume, demand is very weak and we see it continue to be weak throughout the year,” the economist added.
International Trade and Industry Minister Datuk Seri Mustapa Mohamed in February said the country’s exports are poised to see a moderate growth of between 2% and 3% in 2015, significantly lower than the 6.4% achieved last year.
This is due to the weakening global economy, uncertainty in currency markets, decline in oil prices and likely continued modest growth in terms of commodity prices, which limit sharp uptrends, Mustapa added.
At last Friday’s close, Reuters reported that the benchmark palm oil contract for October was down 0.19% at RM2,118 a tonne on the Bursa Malaysia Derivatives Exchange. Last Thursday, the contract hit its lowest level since April 30, at RM2,099.
The ringgit also stayed near a 17-year trough last Friday, weakening 0.2% to 3.8250 a US dollar. It fell to 3.8260 last month, the lowest since 1998, during the Asian financial crisis. – The Edge Markets, August 3, 2015.
Source from : The Malaysian Insider
MBSB-Muamalat Merger, Full-Fledged Islamic Bank On The Cards?
Thursday, 30 July 2015
By: YVONNE TAN, GURMEET KAUR
PETALING JAYA: Malaysia Building Society Bhd (MBSB), one of the non-conventional banks in the local financial industry, is on track to obtaining a full-fledged Islamic banking licence with plans under way for a merger with Bank Muamalat.
Sources said the plans were being crafted as part of MBSB’s vision to obtain a full-fledged Islamic banking licence.
Currently, the largest shareholder in Bank Muamalat is DRB-Hicom Bhd, which controls 70% of the group, followed by the Government’s investment arm Khazanah Nasional Bhd that has a 30% stake.
When DRB-Hicom took over Bank Muamalat in 2008, Bank Negara had imposed a condition that its stake had to be pared down to 40%. DRB-Hicom had acquired the stake from Bukhary Capital.
In 2011, Khazanah’s managing director Tan Sri Azman Mokhtar said that its stake in Bank Muamalat was a “non-core holding”, which it was seeking to dispose of.
As for MBSB, which is 65%-controlled by the Employees Provident Fund (EPF), a migration to becoming a full-fledged conventional bank is a step it needs to take to increase its competitiveness.
Towards this end, MBSB president and chief executive officer Datuk Ahmad Zaini Othman had said that a corporate exercise was inevitable for the financial institution in an increasingly competitive landscape.
One of MBSB’s setbacks is its inability to tap low-cost funds from the money market that are accessible to conventional banks.
Without being able to tap into low-cost deposits, MBSB finds it difficult to grow its loan base.
Ahmad Zaini had said that for the company to get out of this “no man’s land” and be on a firmer growth towards a financial institution platform, it needed to seriously look into a corporate exercise in the “very near” future.
Sources said if the plan for the merger takes off, EPF’s stake in the merged entity would be down to 40%, while Khazanah and DRB-Hicom’s interest was likely to be trimmed to 20% respectively.
“The rest will be held by the public,” said a source.
A source noted that MBSB’s interest in Bank Muamalat was for the Islamic banking licence.
Bank Muamalat is the country’s second standalone Islamic bank, after Bank Islam Malaysia Bhd, and had total assets of RM22.21bil as of end of last year. MBSB, meanwhile, has total assets of about RM30.97bil.
DRB-Hicom, which has to reduce its interest to 40% from the current 70%, has failed to do so despite having suitors in the past.
It had been reported that among the suitors in the past were Bank Islam’s parent, BIMB Holdings Bhd, and Affin Holdings Bhd.
It is believed that the dilution of its stake in Bank Muamalat has been a prolonged process for DRB-Hicom because it was looking at an exercise that could add value and increase the bank’s penetration into the Islamic financial business.
Pricing was also said to be a key issue, said banking sources.
Bank Muamalat’s pre-tax profit dropped to RM102mil in the nine months of financial year March 2015 as compared to RM130mil in the same period previously.
It has been working quietly to clean up its books over the last few years.
As for MBSB, it has been aggressively providing for its loans for its portfolio to be on par with the standard of conventional banks. This has caused it to set aside higher provisions in the last two quarters.
In its first-quarter profits as of March 31, this year came in 37% lower year-on-year dragged down by provisions for an impairment loss on loans, advances and financing amounting to RM101.32mil.
In the fourth quarter ended Dec 31, 2014, its provisions for loan losses came to RM100.1mil, while the collective impairment for FY14 stood at RM177mil. These impairments were mainly made for its mortgage financing portfolio.
MBSB’s net non-performing loan (NPL) ratio has come down to 4.2% from 5.4% a year ago. It is looking to reduce NPLs to below 3%.
MBSB had been part of a three-way merger with CIMB Group Holdings Bhd and RHB Capital Bhd that was aborted in January.
Since then, Bank Islam and Kuwait Finance House (M) Bhd were said to have been on its radar, but nothing had materialised.
The company had said that it was planning a capital-raising exercise of around RM3bil to ready itself for a merger exercise.
MBSB finished five sen higher to RM1.76 yesterday, while DRB-Hicom ended one sen up to RM1.41.
Source from : The Star
By: YVONNE TAN, GURMEET KAUR
Islamic bank licence: Ahmad Zaini Othman(Inset) had said that a corporate exercise was inevitable for the financial institution in an increasingly competitive landscape.
Sources said the plans were being crafted as part of MBSB’s vision to obtain a full-fledged Islamic banking licence.
Currently, the largest shareholder in Bank Muamalat is DRB-Hicom Bhd, which controls 70% of the group, followed by the Government’s investment arm Khazanah Nasional Bhd that has a 30% stake.
When DRB-Hicom took over Bank Muamalat in 2008, Bank Negara had imposed a condition that its stake had to be pared down to 40%. DRB-Hicom had acquired the stake from Bukhary Capital.
In 2011, Khazanah’s managing director Tan Sri Azman Mokhtar said that its stake in Bank Muamalat was a “non-core holding”, which it was seeking to dispose of.
As for MBSB, which is 65%-controlled by the Employees Provident Fund (EPF), a migration to becoming a full-fledged conventional bank is a step it needs to take to increase its competitiveness.
Towards this end, MBSB president and chief executive officer Datuk Ahmad Zaini Othman had said that a corporate exercise was inevitable for the financial institution in an increasingly competitive landscape.
One of MBSB’s setbacks is its inability to tap low-cost funds from the money market that are accessible to conventional banks.
Without being able to tap into low-cost deposits, MBSB finds it difficult to grow its loan base.
Ahmad Zaini had said that for the company to get out of this “no man’s land” and be on a firmer growth towards a financial institution platform, it needed to seriously look into a corporate exercise in the “very near” future.
Sources said if the plan for the merger takes off, EPF’s stake in the merged entity would be down to 40%, while Khazanah and DRB-Hicom’s interest was likely to be trimmed to 20% respectively.
“The rest will be held by the public,” said a source.
A source noted that MBSB’s interest in Bank Muamalat was for the Islamic banking licence.
Bank Muamalat is the country’s second standalone Islamic bank, after Bank Islam Malaysia Bhd, and had total assets of RM22.21bil as of end of last year. MBSB, meanwhile, has total assets of about RM30.97bil.
DRB-Hicom, which has to reduce its interest to 40% from the current 70%, has failed to do so despite having suitors in the past.
It had been reported that among the suitors in the past were Bank Islam’s parent, BIMB Holdings Bhd, and Affin Holdings Bhd.
It is believed that the dilution of its stake in Bank Muamalat has been a prolonged process for DRB-Hicom because it was looking at an exercise that could add value and increase the bank’s penetration into the Islamic financial business.
Pricing was also said to be a key issue, said banking sources.
Bank Muamalat’s pre-tax profit dropped to RM102mil in the nine months of financial year March 2015 as compared to RM130mil in the same period previously.
It has been working quietly to clean up its books over the last few years.
As for MBSB, it has been aggressively providing for its loans for its portfolio to be on par with the standard of conventional banks. This has caused it to set aside higher provisions in the last two quarters.
In its first-quarter profits as of March 31, this year came in 37% lower year-on-year dragged down by provisions for an impairment loss on loans, advances and financing amounting to RM101.32mil.
In the fourth quarter ended Dec 31, 2014, its provisions for loan losses came to RM100.1mil, while the collective impairment for FY14 stood at RM177mil. These impairments were mainly made for its mortgage financing portfolio.
MBSB’s net non-performing loan (NPL) ratio has come down to 4.2% from 5.4% a year ago. It is looking to reduce NPLs to below 3%.
MBSB had been part of a three-way merger with CIMB Group Holdings Bhd and RHB Capital Bhd that was aborted in January.
Since then, Bank Islam and Kuwait Finance House (M) Bhd were said to have been on its radar, but nothing had materialised.
The company had said that it was planning a capital-raising exercise of around RM3bil to ready itself for a merger exercise.
MBSB finished five sen higher to RM1.76 yesterday, while DRB-Hicom ended one sen up to RM1.41.
Source from : The Star
Saturday, August 1, 2015
Shell To Axe 6,500 Jobs And Cut Spending To Cope With Lower Oil Prices
Friday, 31 July 2015
Ben van Beurden, Chief Executive of Royal Dutch Shell, speaks at a press conference as the company announces its financial results in central London, England, 30 July 2015. Royal Dutch Shell announced its intention to cut 6,500 jobs in an effort to reduce costs by 4 billion US dollars over the course of the year against the backdrop of falling oil prices. - EPA/WILL OLIVER
LONDON: Royal Dutch Shell is to axe 6,500 jobs this year and step up spending cuts, responding to an extended period of lower oil prices which contributed to a 37 percent drop in the oil and gas group's second-quarter profits.
The Anglo-Dutch company is also increasing asset disposals to $50 billion between 2014 and 2018 as it pushes ahead with its proposed $70 billion acquisition of BG Group.
"We have to be resilient in a world where oil prices remain low for some time, whilst keeping an eye on recovery," Chief Executive Officer Ben van Beurden said.
Shell said it anticipated 6,500 staff and direct contractor reductions globally in 2015 from a total of nearly 100,000 employees, as it grapples with a halving in oil prices to around $55 per barrel in a year.
Like rivals BP, Statoil and Total it announced reductions in capital investments for a second time this year, shaving another $3 billion off its 2015 budget to bring it to $30 billion.
Around 20 to 30 percent of asset sales worth $30 billion between 2016 and 2018 will come from the downstream and midstream businesses, Shell said, leaving the expanded Shell group to focus on fewer but larger and more competitive assets.
Shell will only make two major investment decisions this year, with many projects scaled back, delayed or cancelled, van Beurden said. He hinted at further spending cuts if economic conditions worsen, including a steeper drop in oil prices.
The company said it was selling a 33 percent stake in the Showa Shell refinery in Japan to Idemitsu for about $1.4 billion.
BG DEAL
Shell also reassured wary investors its bumper BG buy will not break the bank. If the deal goes through in early 2016 as planned, capital investments in 2016 will be $35 billion, Shell said, lower than the $42 to $40 billion analysts had expected.
"With progress on the deal on track this is a new emerging business which can pay dividends whatever the oil price environment," said analysts at Bernstein, who rate the stock as "outperform".
Shell is still awaiting regulatory approvals for the deal from the European Union, China and Australia, after Brazil, the United States and South Korea cleared it.
The deal is expected to generate pretax benefits of around $2.5 billion per year starting 2018. The tie-up will turn Shell into the world's leading liquefied natural gas company and one of the largest deepwater oil producers with a focus on Brazil.
Shell's second-quarter "cost of supplies" earnings, excluding identified items, the company's definition of net income, came in at $3.84 billion, down from $6.13 billion a year earlier and $3.25 billion in the previous quarter. The results beat expectations of $3.18 billion, according to an analyst consensus provided by the company.
Shell shares, which fell earlier this week to their lowest this year, were trading up 3.6 percent at 0920 GMT, while the European oil and gas sector was up 1.3 percent.
A sharp decline of around 75 percent in revenue from oil production was once again offset by refining and trading, where earnings more than doubled from a year earlier.
Shell maintained its quarterly dividend at 47 cents per share and committed to rewarding shareholders with at least the same payout in 2016.- Reuters
Source from : The Star
LONDON: Royal Dutch Shell is to axe 6,500 jobs this year and step up spending cuts, responding to an extended period of lower oil prices which contributed to a 37 percent drop in the oil and gas group's second-quarter profits.
The Anglo-Dutch company is also increasing asset disposals to $50 billion between 2014 and 2018 as it pushes ahead with its proposed $70 billion acquisition of BG Group.
"We have to be resilient in a world where oil prices remain low for some time, whilst keeping an eye on recovery," Chief Executive Officer Ben van Beurden said.
Shell said it anticipated 6,500 staff and direct contractor reductions globally in 2015 from a total of nearly 100,000 employees, as it grapples with a halving in oil prices to around $55 per barrel in a year.
Like rivals BP, Statoil and Total it announced reductions in capital investments for a second time this year, shaving another $3 billion off its 2015 budget to bring it to $30 billion.
Around 20 to 30 percent of asset sales worth $30 billion between 2016 and 2018 will come from the downstream and midstream businesses, Shell said, leaving the expanded Shell group to focus on fewer but larger and more competitive assets.
Shell will only make two major investment decisions this year, with many projects scaled back, delayed or cancelled, van Beurden said. He hinted at further spending cuts if economic conditions worsen, including a steeper drop in oil prices.
The company said it was selling a 33 percent stake in the Showa Shell refinery in Japan to Idemitsu for about $1.4 billion.
BG DEAL
Shell also reassured wary investors its bumper BG buy will not break the bank. If the deal goes through in early 2016 as planned, capital investments in 2016 will be $35 billion, Shell said, lower than the $42 to $40 billion analysts had expected.
"With progress on the deal on track this is a new emerging business which can pay dividends whatever the oil price environment," said analysts at Bernstein, who rate the stock as "outperform".
Shell is still awaiting regulatory approvals for the deal from the European Union, China and Australia, after Brazil, the United States and South Korea cleared it.
The deal is expected to generate pretax benefits of around $2.5 billion per year starting 2018. The tie-up will turn Shell into the world's leading liquefied natural gas company and one of the largest deepwater oil producers with a focus on Brazil.
Shell's second-quarter "cost of supplies" earnings, excluding identified items, the company's definition of net income, came in at $3.84 billion, down from $6.13 billion a year earlier and $3.25 billion in the previous quarter. The results beat expectations of $3.18 billion, according to an analyst consensus provided by the company.
Shell shares, which fell earlier this week to their lowest this year, were trading up 3.6 percent at 0920 GMT, while the European oil and gas sector was up 1.3 percent.
A sharp decline of around 75 percent in revenue from oil production was once again offset by refining and trading, where earnings more than doubled from a year earlier.
Shell maintained its quarterly dividend at 47 cents per share and committed to rewarding shareholders with at least the same payout in 2016.- Reuters
Source from : The Star
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