M’sian economy soars

KUALA LUMPUR

Gross domestic product increased 8.9 per cent in the three months through June from a year earlier, after expanding 10.1 per cent in the first quarter, the central bank said yesterday.

Growth may exceed 6 per cent this year, Bank Negara Governor Zeti Akhtar Aziz said.

Malaysia’s central bank has raised interest rates three times this year and policymakers will deliberate in two weeks if the economy is strong enough to withstand higher borrowing costs as threats to the world recovery grow.

Dr Zeti said the second quarter growth was “driven by sustained expansion in domestic demand and continued robust growth in external demand”.

She said the stronger domestic demand was due to higher private and public sector spending, while the expansion in external demand spurred domestic production.

The economy’s expansion has boosted the Malaysian ringgit, spurring the currency to a gain of 8.5 per cent against the US dollar and 21 per cent against the euro this year, the best performance in Asia excluding Japan.

The FTSE Bursa Malaysia KLCI Index gained for a fourth day yesterday and has added 8.9 per cent this year.

Economists are divided on whether Bank Negara will raise rates this year after leading most Asian central banks in increasing borrowing costs.

Dr Zeti, who raised the benchmark rate to 2.75 per cent last month, said “the rates currently in place now are consistent and appropriate to the outlook for growth and inflation”.

Malaysia’s policymakers will meet on Sept 2 to decide on rates.

Inflation climbed last month to 1.9 per cent, the highest in 14 months, a report from the Statistics Department showed.

“It’s going to be a close call but we are leaning on one more rate hike” next month, said Mr Enrico Tanuwidjaja, an economist at OSK-DMG Group in Singapore. “Even at 3 per cent, we don’t see that as a tightening measure but the end of normalisation. We think it is consistent with the growth outlook and inflation wouldn’t be a threat.”

— The Malaysian economy grew near the fastest pace in a decade last quarter, an expansion that may prompt Bank Negara, the central bank, to consider increasing interest rates further as inflation accelerates.Agencies

GOLDEN  TIGER 

  PASSION

 

RM9.66

RCE Capital

v                 Strong start to the year 2010.

v                 No change to forecasts and fair value of RM1.12. Maintain Outperform.

16th August 2010: 

Top Story: Maybank

v                 On course for STRONG rebound in earnings.

v                 Fair value of RM9.66 and Outperform call maintained.

Malaysia’s FDI takes a tumble

KUALA LUMPUR

The World Foreign Investment Report 2010 released by the United Nations on Thursday showed that FDI in Malaysia plunged 81 per cent last year (2009) , trailing behind the Philippines, Vietnam, Thailand, Indonesia and Singapore. “For the first time ever in history, Malaysia attracted less investment than the Philippines,” said Mr Tony Pua, the chief economist for the Democratic Action Party.

The Philippines attracted US$1.95 billion ($2.67 billion) in FDI compared to Malaysia’s US$1.38 billion, while Singapore raked in the most — more than US$16 billion.

“Among South-east Asian nations, we are now only attracting more FDI than Cambodia, Myanmar, Brunei, Laos and Timor Leste,” added Mr Pua.

Prime Minister Najib Razak is determined to lift Malaysia’s profile as a destination for foreign investment to help achieve an average gross domestic product (GDP) growth of at least 6 per cent per annum over the next five years.

“Malaysia was the only country where our outflow of FDI amounting to US$8.04 billion is substantially greater than the FDI of US$1.38 billion received,” charged Mr Pua.

“Not only are foreign investors unwilling to invest in Malaysia, our own local investors as well as foreign investors who are already in the country have a total lack of confidence in the ability of our economy to generate an attractive return on their investments.”

— A lack of confidence in Malaysia’s economy has driven foreign direct investment (FDI) away, leaving the once-roaring “Asian tiger” to compete with countries in the Indochina region, said an opposition party yesterday.THE MALAYSIAN INSIDER

[RHBInvest-Yahoo!] RHBInvest Research Highlights 19th July 2010

Weekly Trading Idea: UEM Land Holdings

v      A chance to scale higher to RM1.80.

v      Strategy: Bargain Buy above the 10-day SMA of RM1.52. 

v      Immediate Resistance at RM1.65         

v      Immediate Support at RM1.46         

v      Exit: Cut loss if it falls to below RM1.46.

Economic region’s CEO sees synergies for Singapore investors

Melissa Goh

Malaysia Bureau Chief,

Channel NewsAsia

melissagohct@mediacorp.com.sg

JOHOR BARU

Spanning over 2,200 square kilometres, the Iskandar economic region located in southern Johor is three-times the size of Singapore.

Since its inception at the end of 2006, Iskandar has attracted more than RM60 billion ($26 billion) of investment from both local and foreign investors, surpassing its own target of RM47 billion.

Singapore is currently the third largest investor in Iskandar, with RM3.03 billion of investments committed so far. They are mainly in electrical and electronics, manufacturing and education.

But according to the CEO of the economic region, Iskandar offers plenty of synergistic opportunities especially in leisure tourism.

Ms Arlida said: “This is an area Singaporeans, as visitors, have taken advantage of. But for businessmen (and) investors, this is certainly an area we see potential and opportunities ... Those are the areas we would like to invite interest from Singapore.”

To boost tourism, Iskandar is opening two more hotels, a marina, retail malls and an indoor family theme park, including Asia’s first Legoland in 2012. It also plans to add another 5.5 million square feet of commercial and residential space later this year.

Ms Arlida said: “Very frankly, most long-haul visitors look for location that justifies a stay of four to five nights. I think, singly, Johor and Singapore do not provide the long-stay conditions. We don’t have enough attractions to justify a long stay. (But) working together in collaboration, we can develop packages.

It’s a win-win situation, we actually create a bigger market.”

Malaysia expects its tourist arrivals to exceed 18 million this year, while Singapore forecasts 12 million.

Combined, analysts say, both countries stand to reap more from an increased number of tourists who stay longer and spend more.— Malaysia’s southern economic region, Iskandar, expects strong investment flow from neighbouring Singapore, despite an expected economic slowdown in the second half of the year. In an interview with Channel NewsAsia, chief executive officer of Iskandar Investment Arlida Ariff said she hopes to ride on improved bilateral ties to woo Singapore investments.

MDIS’ Iskandar campus could open floodgates

Venessa Lee

venessa@mediacorp.com.sg

SINGAPOR E —

Management Development Institute of Singapore (MDIS), a private tertiary education institute, is investing $70 million in a new 30-acre campus in EduCity in Iskandar.

MDIS Campus (Malaysia).

MDIS’ investment comes in the wake of a historic agreement, announced on May 24, which resolved the dispute over land owned by Malayan Railway (KTM) here, an issue that had been a thorn in relations between Singapore and Malaysia for more than 20 years.

In an exclusive interview yesterday with

Some analysts felt that improved ties augured well for Iskandar. “When you have government-to-government relations warming up … chances are you will see private-sector initiatives given an impetus,” said Dr Johan Saravanamuttu, a visiting senior research fellow at Institute of South-east Asian Studies (Iseas). “The investment from Singapore investors has been rather slow in coming.

And they do need a kind of fillip, a kind of confidence building from the Singapore side.”

******** UEMLAND  will be activated A leading education provider in Singapore plans to set up a campus in Iskandar Malaysia, possibly paving the way for more private-sector investment there.Channel NewsAsia’s Malaysia Bureau Chief Melissa Goh, Malaysian Prime Minister Najib Razak said Iskandar in south Johor signified a “natural, mutually reinforcing benefit that we can tap into if we have a relationship based on a new sense of confidence and enthusiasm” between Malaysia and Singapore.

29th June 2010:

Top Story: Banks

¨       Valuations still decent with potential for earnings to surprise.

¨       Overweight rating on the sector.

Maybank remains as our top pick for the sector.

Hi, sorry. while you are shouting it loud at the t.prx of May bank. I am new to Malaysia stocks, click finance sector, couldn't find MayBank. click letter M also couldn't find.

THiS  iS  gOOd  fOr  MAYBANK

Economic Highlights: Trade -

¨       Malaysia’s exports grew strongly by 37.0% yoy in January

¨       Expect to expand by 8.5% in 2010, from -16.6% in 2009.

Genting Singapore:

¨       Thrills and spills await                                                                              

¨       Fair value S$1.35