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News Flash
Issue: 37/2011
In this issue
GLOBAL NEWS
 Economists list US budget deficit as No. 1 worry
 Japan's jobless rate unchanged at 4.9% in January
 China's US debt holdings hit US$1.16 trillion
 India Budget
 Aftershocks in Christchurch
 Beijing frozen lake
 China’s population at 1.341 billion
 Tunisian industry minister resigns
 US urges Oman to show restraint
 Robotic Run
 Singapore maids learn to save water
LOCAL NEWS
 Record plantation commodity exports
 Oil price upside risk for Malaysia
 Private sector net financing up 11.5%
 Abu Kassim is No 4 in global list
 Call for entries to Malaysia Property Award 2011
 Boom gates must be manned
 India labur RM200 juta kurangkan import
 Hari terakhir bayar saman kelam-kabut
INDUSTRY NEWS
 Twitter worth US$4.5 bn
 Hutchinson ports eye US$5.4 bn IPO
 Australia miner Resourcehouse eyes Hong Kong IPO
 Felda Global, TNB in JV for biomass plant
 Proton falls to 14-month low
 Kencana Petroleum Secures RM115 Million Contract
 Sime Darby kaji maju ladang sawit di Cameroon
 Kedudukan kewangan TIME paling kukuh setakat ini
GLOBAL NEWS
01 March 2011
Economists list US budget deficit as
No. 1 worry
The massive US budget deficit is the gravest
threat facing the economy, topping high
unemployment and the risk of inflation or
deflation, according to a survey of forecasters
released on Monday. The National Association
for Business Economics said its 47-member panel
of forecasters increased its estimate for the 2011
federal deficit to US$1.4 trillion from US$1.1
trillion in its previous survey in November.
"Panelists continue to characterize excessive
federal indebtedness as their single greatest
concern," with state and local government debt
the second-biggest worry, the survey said. It was
conducted between January 25 and February 9.
The panel's deficit forecast is lower than the
Obama administration projection of a record
US$1.65 trillion this fiscal year, or 10.9% of US
gross domestic product.
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Japan's jobless rate unchanged at
4.9% in January
Japan's unemployment rate stood at 4.9 per cent in
January, unchanged from a month earlier in line
with market forecasts, government data showed
Tuesday. The number of people out of work stood
at 3.09 million, down 140,000 from a year earlier,
in the eighth straight month of year-on-year
decline, the official data showed.
Separate data showed job availability had
improved from the previous month, with 61
positions available for every 100 job seekers, the
health, labour and welfare ministry said.
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China's US debt holdings now hit
US$1.16 trillion
China's holdings of long-term US Treasury
securities totaled US$1.16 trillion at the end of
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December 2010, according to an annual revision
report released by the US Treasury Department on
Monday. The figure was an increase of 30% from
an estimate the government reported on February
15.

The US Treasury made the change to its monthly

report based on more accurate information it
obtains in an annual survey. Foreign holdings of
US long-term securities reflect demand for US
Treasury obligations and other assets including
stocks and government agency debt, a key to
funding the massive US balance of payments
deficit with the rest of the world. High food inflation and a spate of embarrassing
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corruption scandals have put pressure on India’s
Population now stands at 1.341
ruling Congress Party in recent months, spooking
billion foreign investors and sparking street protests in
advance of crucial state elections.
The population grew to 1.341 billion by the end of
2010, the National Bureau of Statistics announced In his budget speech before Parliament, Finance
on Monday. The preliminary figure, based on a Minister Pranab Mukherjee revealed no major
sample survey, shows China added 6.3 million policy shifts, but said the much-watched fiscal
people last year, up from 1.3347 billion at the end deficit would fall from an estimated 5.1% of gross
of 2009. domestic product in the year ending on March 31
to 4.6% in the next fiscal year.
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The slower growth rate, compared with 2009, has
prompted some experts to suggest adjusting the
decades-old family planning policy. The current
policy limits most urban couples to just one child.
A more accurate figure is expected to come out in Aftershocks shake battered
April, after the government tallies the results of Christchurch
the census in 2010. A census is carried out once a
decade.
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INDIA BUDGET
A budget to tackle food inflation
India pledged yesterday to reduce its deficit while
ramping up social spending as the government
unveiled an annual budget aimed at balancing
populism with pragmatism.

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 RESTRICTED CIRCULATION

News Flash
Issue: 37/2011 01 March 2011

A two-part package worth NZ$120 million will

allow employers to pay wages as well as support
workers whose employers view their business as
no longer viable.

The employer subsidy will pay full-time workers

NZ$500 and part-time workers NZ$300 per week
while the job loss cover will pay full-time
employees NZ$400 and part-time employees
NZ$240 per week.
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Earthquake repairs could cost

New Zealand NZ$20 bn
Repairs to the southern New Zealand city of
Christchurch after two earthquakes within the past
six months may cost as much as NZ$20 billion,
Prime Minister John Key said, as he announced
the first package of short-term measures to get the Tunisian industry minister resigns
city back on its feet.
Tunisia's Industry and Technology Minister Afif
Chelbi resigned on Monday from the country's
interim government, the official TAP press
agency reported.

The resignation comes one day following the

resignation of the former Prime Minister
Mohammed Ghannouchi and in the wake of

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resurgent clashes between demonstrators and the
police during the weekend.
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US urges Oman to show restraint

The United States said Monday it has urged Oman

to show restraint and press ahead with reforms
after deadly clashes in the strategic Gulf ally,
which lies on the busy Strait of Hormuz oil
shipping lane.

Fresh clashes erupted between Omani police and

protesters on Monday, a day after police killed at
least one as the turmoil rocking the Arab world
reached the normally calm Gulf sultanate. ------------------------------------------------------------------------------
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Singapore PUB taps on maids to help
with water conservation
Domestic maids are a focus of national water
agency PUB’s latest Water Conservation
Awareness Programme.

For instance, a video and a handbook in English

and Bahasa Indonesia offering water-saving tips
published by PUB will be used to train maids in
maid-employment agencies.

So far, 12 agencies have sent their trainers on a

course conducted by PUB and plans to reach out
to more agencies over the next few years are in
the works.

LOCAL NEWS

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News Flash
Issue: 37/2011
Record plantation
exports
Malaysia raked in RM113.3 billion from
plantation commodity exports last year, the best
ever performance, as global demand for vegetable
oils, rubber and cocoa butter surpassed supply. To
a certain extent, the higher demand was also
fuelled by the weakening of the US dollar against
the ringgit.
Last year's achievement was 24% higher than
2009's RM91.16 billion. It also surpassed the
previous record of RM112.43 billion in 2008
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Oil price upside risk for Malaysia
The price of crude oil which hit US$100 per
barrel recently - its first time in more than two
years - is an upside risk for Malaysia as a net
exporter. What could stop the country from
benefiting from its net exporter status is largely a
relapse in the global economic recovery which
would affect demand for the commodity.
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01 March 2011
commodity
“Higher oil prices amid strong global demand are
an upside risk as Malaysia is a large net exporter
of oil,” Nomura International (HK) Ltd told
clients in a Feb 25 report. CIMB Research head of
economics Lee Heng Guie said for every US$1
rise in crude oil, Malaysia's federal government
revenue could increase by up to RM450mil, over
two years.
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Private sector net financing up
11.5%
Net financing to the private sector in January
increased by RM7.2bil or 11.5% annually versus
RM17.4bil or 11.3% in December, driven mainly
by increased loans outstanding while private debt
securities (PDS) issuances moderated during the
month.
Loans outstanding rose moderately by 22.2%
during the month, said Bank Negara Malaysia
(BNM) in a statement yesterday.
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Abu Kassim is No 4 in global list
Datuk Seri Abu Kassim Mohamed , the chief
commissioner of the Malaysian Anti-Corruption
Commission (MACC), has been named in the top
five among 100 influential people in business
ethics for 2010 by the New York-based
Ethisphere Institute.
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Ranked fourth on the list, he was adjudged for his
role in the government and regulatory practices
category. The other eight categories are thought
leadership, business leadership, corporate culture,
investment and research, design and
sustainability, media and whistleblowers, NGOs
and philanthropy.
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Call for entries to Malaysia Property
Award 2011
The International Real Estate Federation (Fiabci)
Malaysia is calling for entries to the 19th
Malaysia Property Award 2011. Fiabci Malaysia
is accepting entry submissions until March 31 for
projects developed in Malaysia between year
2006 and 2010. A total of 14 award categories are
offered this year, including Environmental
(Rehabitation/ Conservation), Heritage
(Restoration/ Conservation), Hotel, Industrial,
Master Plan, Office, Public Sector, Purpose-Built/
Specialised Project, Residential (High Rise),
Residential (Low Rise), Resort, Retail, and
Special Award for National Contribution and
Sustainable Development.
The projects will be judged based on design,
workmanship, impact on the environment, ease of
facilities management, financial viability,
marketing strategies, benefit to the community
and lifestyle improvements. Winners will be
announced in mid-October.Winners of this
programme will automatically enter the final
selection process of the Fiabci International Prix
d' Excellence Award, which will be contested by
property development projects from 60 countries.
For more information, contact the secretariat at
036203 5090/ 5091 or email
fiabcimalaysia@fiabci.com.my.
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Boom gates must be manned
Residents who install boom gates to protect their
neighbourhood must ensure that they are manned
at all times, Housing and Local Government
Minister Datuk Chor Chee Heung said.
The gated community and guarded neighbourhood
guidelines, approved by the Cabinet last
September, also state that the boom gates, or
barriers, must not be locked at any time.
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India labur RM200 juta kurangkan
import
India mengumumkan hari ini ia akan
memperuntuk lebih RM200 juta tahun ini bagi
penanaman lebih banyak kelapa sawit untuk
mengurangkan import minyak sawit, sebahagian
besarnya dari Malaysia dan Indonesia.
Semasa membentangkan Bajet Persekutuan bagi
2011-2012, Menteri Kewangan India, Pranab
Mukherjee, berkata, dana itu akan digunakan
untuk menjadikan 60,000 hektar tanah sebagai
ladang kelapa sawit dan untuk menyepadukan
peladang dengan pasaran.
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Hari terakhir bayar saman kelam-
kabut
Hari terakhir bayaran saman trafik di seluruh
negara hari ini bertukar kelam-kabut apabila
sistem dalam talian yang digunakan untuk urusan
itu tergendala, ekoran penggunaan yang melebihi
kapasiti.
Situasi itu menyebabkan orang ramai terpaksa
menunggu serta beratur panjang berjam-jam
lamanya untuk menyelesaikan urusan
pembayaran tersebut sama ada di kaunter trafik
di balai dan ibu pejabat polis daerah mahupun di
pejabat-pejabat pos di seluruh Negara.
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INDUSTRY NEWS
Twitter may be worth nearly US$4.5
bn
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 RESTRICTED CIRCULATION

News Flash
Issue: 37/2011 01 March 2011

JP Morgan Chase’s new fund, aimed at investing
in social-media companies, is seeking to buy a
minority stake in Twitter that could value the
service at close to US$4.5 billion.
The US$1.2 billion JPMorgan fund appears to see
Twitter as its beachhead in the highly popular
social-media sector, much as Goldman Sachs
established its presence in the category by raising
US$1.5 billion to invest in Facebook, an amount
that included US$1 billion collected from wealthy
private individuals outside the United States.
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Hutchison ports unit IPO
US$5.8 bn IPO in Singapore
HUTCHISON Whampoa’s ports unit is looking
to raise as much as US$5.8 billion in an initial
public offering in Singapore, allowing investors to
tap into China’s booming infrastructure business.
South-east Asia’s biggest listing comes at a time
when intra-Asia sea-borne trade is swelling, and
global container-shipping firms are putting more
ships and resources to serve
Asian routes from Europe and North America.
Australian miner Resourcehouse plans to raise
US$3 billion in a Hong Kong initial public
offering, a report said Monday, the latest miner to
eye a listing in the Asian financial hub. The firm,
controlled by billionaire Clive Palmer, began pre-
marketing the sale Monday, its third attempt to
list in Hong Kong, Dow Jones Newswires
reported, citing an unnamed source.
During pre-marketing, a company and its bankers
gauge investor interest in an IPO and come up
with a price range for the deal.
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Felda Global, TNB in JV for biomass
eyes plant
Felda Global Group and Tenaga Nasional Bhd
have formed a 60:40 joint-venture company, FTJ
Bio Power Sdn Bhd, and invest RM120mil to set
up a plant that will generate electricity using
purely oil palm empty fruit bunches (EFB).

The assets of the Hutchison subsidiary, Hutchison

Port Holdings (HPH) Trust, are located in Hong
Kong and Shenzhen, two of the world’s busiest
container ports in 2009 with a total throughput of
39.2 million twenty- foot equivalent units.
The construction of the plant is scheduled to
It would be the first publicly traded business trust commence soon on a 4.2ha site in Jengka 9,
backed by port assets, according to the prospectus, Pahang and be fully completed in December
and would exceed Malaysia’s Petronas 2012. The plant will be able to generate 12.5
Chemicals’ US$4.1-billion listing last year, which million watts of electricity.
has so far been the biggest listing in the region. Proton falls to 14-month low
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Shares of Proton Holdings Bhd fell 23 sen to a 14-

month low of RM3.86 yesterday, its lowest since
Dec 22, 2009, after the national carmaker posted
Australia miner Resourcehouse eyes losses in its third quarter ended Dec 31, 2010.
Hong Kong IPO
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Automotive analysts also revised downwards their
earnings forecast for Proton's current financial
year ending March 31, 2011 (FY11) following its
poor financial performance.
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Kencana Petroleum Secures RM115
Million Contract From Petrofac
Kencana Petroleum Bhd has secured a contract
from Petrofac E&C Sdn Bhd for the engineering,
procurement, construction and commissioning
(EPCC) of Mobile Offshore Production Unit
(MOPU) and Wellhead Support Structure
(WESS), worth RM115 million.
The contract was secured through its wholly-
owned subsidiary, Kencana HL Sdn Bhd.
Kencana Petroleum, in a filing to Bursa Malaysia,
said the MOPU and WESS' EPCC contract was
for the Sepat Early Production System off the
coast of Terengganu. It is a one-off EPCC
contract and is expected to be delivered to the
ultimate client, Petronas Carigali Sdn Bhd, within
the third quarter of this year. The contract is
expected to contribute positively to the earnings
of the company for the financial year ending July
31, 2011 and 2012.
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Sime Darby kaji maju ladang sawit di
Cameroon
SIME Darby Bhd, syarikat perladangan
senaraian awam terbesar dunia, sedang
memperhalusi rancangan mema-jukan ladang
sawit seluas 300,000 hektar dengan anggaran
pelaburan mencecah RM7.5 bilion di Cameroon
berikutan permintaan dan harga kukuh komoditi
itu.
Ketua Eksekutifnya, Mohd Bakke Salleh, berkata
pelaburan itu adalah prospek terbaik untuk
kumpulan menambah simpanan tanahnya seluas
640,000 hektar selepas ia memperoleh konsesi
ladang sawit seluas 220,000 hektar di Liberia.
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Kedudukan kewangan TIME paling
kukuh setakat ini
TIME dotCom Bhd merekodkan prestasi
kewangan paling kukuhnya setakat ini dengan
mencatatkan keuntungan sebelum cukai RM88.9
juta bagi tahun yang berakhir pada 31 Disember
2010, daripada RM33.1 juta pada 2009. Syarikat
tersebut berkata, peningkatan itu adalah hasil
daripada pendapatan yang bertambah baik
diterajui oleh pengembangan perniagaan
datanya, terutamanya dalam segmen borong dan
lebar jalur global.
Disokong oleh peningkatan dalam pendapatan,
kumpulan itu juga mencatatkan keuntungan besar
daripada operasi yang meningkat 130 peratus
bagi tahun itu, melonjak daripada RM15.7 juta
pada 2009 kepada RM36.1 juta pada 2010.
Tidak termasuk penyelarasan butiran luar biasa
seperti urus niaga sekali dan pendapatan
daripada jualan perniagaan telefon bayarnya
pada 2009, pendapatan berbanding meningkat 27
peratus daripada RM249.7 juta kepada RM317.3
juta.
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