Penang CM gets flak again for saying Johor unsafe

KUALA LUMPUR - Penang Chief Minister Lim Guan Eng faces fresh allegations of yet again portraying Johor as being unsafe.

He was alleged to have made the latest claim when addressing a luncheon talk with the Foreign Correspondents Association of Singapore, recently.

TV3's Bulletin Utama last night played an audio recording of Lim saying: "So you don't have to worry about your safety when you come to Penang.

"In Johor, if you are Singaporean, you are likely to get kidnapped".

Local online news portal, The Mole reported that when contacted, Lim who is in Surabaya, Indonesia, declined to comment.

The DAP secretary-general had been in the hot soup for allegedly saying in an interview, with an Australian radio station, that Johor was not a safe state where the chances of being kidnapped was high.

He had since denied uttering the remarks.

Lim's remarks on Johor the first time around, however, drew the ire of many, including Deputy Prime Minister Tan Sri Muhyiddin Yassin, who had said Lim should not look down and sabotage other states.

Muhyiddin said Lim's action in undermining Johor would give a bad image of Malaysia and would also affect other states.

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Malaysia stock market and companies daily report (September 26, 2011)

PKT Logistics Group To Hit Revenue Of RM1 Billion By 2015
PKT Logistics Group (PKT), a total logistics service provider slated to list on Bursa Malaysia​ by mid-2012, is targeting to achieve RM1 billion in turnover by 2015 through addition of higher-value products and expansion of its client base. With the consolidation of a few firms, the company expects FY09’s revenue of RM150 million to more than double in FY11. Going forward, PKT will be focusing on the fast-moving consumer goods segment, projected to make up 40% of the company’s revenue, from the current 20%, by 2013. The company is looking to expand in the eastern, northern and southern growth corridors of Malaysia. It is targeting to invest RM1 billion to have five million square feet worth of warehouse space by 2015, from about one million square feet now. The firm is also steadily moving towards becoming an Asean logistics provider, and plans to have at least 30% of its revenue come from that region by 2013.

Corporate Malaysia under the microscope

Prime asset: BRDB’s assets include CapSquare Retail Centre in Kuala Lumpur.

THE air in corporate Malaysia is brick-thick with suspicion. Nary a major deal is trumpeted without it falling under the microscope. For investors and minority shareholders, that's clap-worthy; informed decisions are best made when there are multiple interpretations. For company directors and major shareholders, it keeps them on their toes. Who would fault that!

The landmark share swap exercise involving major shareholders of national carrier Malaysia Airline and till today continues to be riddled by nagging doubts that one party got the better of the deal. Then, there's  purchase of a 30% block in property company which unleashed a string of governance-related allegations, even going as far as threatening a potential reputational fallout of the chief securities regulator.

Against this backdrop, revealed an offer by its major shareholder of 18.88% to buy over four key investment assets. From the onset, the deal appeared benign, except that it's a related-party transaction (RPTs) which set off the siren of distrust.

RPTs are of course legitimate. However, as they involve interested parties, questions pop up on whether the corporate insiders are focused on the interests of shareholders or not. The biggest fear is an insider using a company's asset for personal benefit? Does it work in favour of the company or those running it? Does it equally benefit the buyer and the seller? In fact, strict governance hawks even suggest that RPTs be viewed as guilty until proven innocent. Rightly or wrongly.

BRDB's chief  in an interview with StarBizWeek himself admits: “I knew we were going to get walloped.”

On Sept 5, BRDB annnounced that Ambang Sehati had made an offer to acquire these assets namely  which owns Bangsar Shopping Centre, Menara BRDB, CapSquare Retail Centre and Permas Jusco Mall. Ambang Sehati the private vehicle of BRDB's and his uncle  and family gave the BRDB board two weeks to decide which lent a whiff of desperation to the deal. Details on the valuation of these assets, at that point, were glaringly absent.

Right on time, two weeks later, BRDB said its board had agreed to the proposed disposal of these assets for RM914mil (including net liabilities of RM484mil). To sweeten the deal, it plans to distribute part proceeds as cash dividend to shareholders.

The logic behind the deal is to enable BRDB to utilise capital more efficiently while allowing it to unlock the value of these assets. As far as rationales go, why not? As for Moiz, understandably altruism can't be the deal's sole dictator. He must eventually, as any salt-of-the-earth businessman would do, want to create further value in these assets. That being the case, couldn't Moiz, as chairman, still be able to do that if the assets were retained under BRDB? Or would the motivation to work an asset be far greater if it were wholly-owned? And what of the fact that the company has spent a substantial amount of money building and refurbishing these assets?

The chief of  Rita Benoy Bushon questions if BRDB may miss the opportunity to enjoy the fruits of future price appreciation and rising rental yields if these assets are divested. No doubt, Jagan and team as well as the independent advisers will have to iron out these creases of concerns in the weeks ahead.

There is also another source of unease. But this one is easier to explain away.

For the deal to forge ahead, it would need the nod of a simple majority of disinterested shareholders. According to the company's latest annual report, of the 30 major shareholders based on the record of depositors as at April 25, 2011, Credit Suisse is in the top spot with a 23.57% interest. However, under the list of substantial shareholders (5% and above), there is no mention of Credit Suisse which can be construed that none of the individual accounts in this “pooled” nominee account own more than 5% each.

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Last chance

Prime Minister Julia Gillard has indicated Labor will not try again to reinstate offshore processing if the Opposition votes down its amendments.

Ms Gillard repeatedly said today that if the Parliament voted down her Government’s contentious amendments to the Migrati

Prime Minister Julia Gillard has indicated Labor will not try again to reinstate offshore processing if the Opposition votes down its amendments.
Ms Gillard repeatedly said today that if the Parliament voted down her Government’s contentious amendments to the Migration Act then that would end offshore processing “for all time”.
It comes as two more boats carrying asylum seekers were intercepted overnight and taken to Christmas Island, where the more than 100 people on board would be processed.
The Government wants to change the law to give it the power to process asylum seekers offshore, after it said a recent High Court ruling effectively threw the legality of this in doubt.
However, the Opposition is planning to vote against the changes, demanding the Government accept an amendment that would effectively prevent Ms Gillard from reviving her so-called Malaysia solution.
Opposition immigration spokesman Scott Morrison said that Ms Gillard should recall parliament, pass the Coalition’s amendments and reopen the processing centre on Nauru.
He said that almost 540 people had arrived since the Malaysian deal was signed for 800 transfers.
“The Government has never had a plan for illegal arrival 801, and illegal arrival 801 is only a few boats away,’’ he said.
“This point has been highlighted by the Commonwealth Ombudsman stated in their submission: ‘in our view there are no guarantees that the Agreement will have any long term utility or efficacy. Once the 800 transferee quota has been met it seems that the Agreement will be spent. Accordingly, it is not clear whether it is an ongoing or durable solution to the problems caused by humanitarian movements of people’.’’
Ms Gillard said Mr Abbott’s amendment – which would limit offshore processing to countries that have signed the United Nations refugee convention - would not get through Parliament and it was “crystal clear” that left just two options.
“Passing the legislation and enabling executive government to make appropriate arrangements for offshore processing … or seeing that legislation fail, in which case this government and governments in the future would have no option but to process asylum seekers on shore,’’ she said.

on Act then that would end offshore processing “for all time”.

It comes as two more boats carrying asylum seekers were intercepted overnight and taken to Christmas Island, where the more than 100 people on board would be processed.

The Government wants to change the law to give it the power to process asylum seekers offshore, after it said a recent High Court ruling effectively threw the legality of this in doubt.

However, the Opposition is planning to vote against the changes, demanding the Government accept an amendment that would effectively prevent Ms Gillard from reviving her so-called Malaysia solution.

Opposition immigration spokesman Scott Morrison said that Ms Gillard should recall parliament, pass the Coalition’s amendments and reopen the processing centre on Nauru.

He said that almost 540 people had arrived since the Malaysian deal was signed for 800 transfers.

“The Government has never had a plan for illegal arrival 801, and illegal arrival 801 is only a few boats away,’’ he said.

“This point has been highlighted by the Commonwealth Ombudsman stated in their submission: ‘in our view there are no guarantees that the Agreement will have any long term utility or efficacy. Once the 800 transferee quota has been met it seems that the Agreement will be spent. Accordingly, it is not clear whether it is an ongoing or durable solution to the problems caused by humanitarian movements of people’.’’

Ms Gillard said Mr Abbott’s amendment – which would limit offshore processing to countries that have signed the United Nations refugee convention - would not get through Parliament and it was “crystal clear” that left just two options.

“Passing the legislation and enabling executive government to make appropriate arrangements for offshore processing … or seeing that legislation fail, in which case this government and governments in the future would have no option but to process asylum seekers on shore,’’ she said.

Police Twitter generates 2,000 tweets

KUALA LUMPUR: Within hours of the Royal Malaysian Police (PDRM) going on Twitter yesterday, they received about 2,000 hits.

Inspector-General of Police Tan Sri Ismail Omar launched  in conjunction with first anniversary of the police's Facebook page which has garnered 85,000 fans to date.

“Twitter is as popular as Facebook, with over 200 million Twitter users the world over.

"It is many a Malaysian’s favourite social networking site, so we hope to get closer to the public via Twitter, too," he said.

Ismail said the objective was to make the police force a people-friendly organisation.

“Just like Facebook, our Twitter page will channel information such as the latest news on police success in solving crime, the activities and programmes we have with the people, or even send statements on current issues.”

He said the Twitter account will update traffic conditions nationwide, especially during rush hours.

Police officers and PDRM’s Facebook fans also celebrated the first-year anniversary, with over 70 fans from all over Malaysia attending at the Royal Malaysian Police College (RMPC) in Cheras.

Ismail said communications between police and the public has improved since the Facebook page was launched.

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Coalition rejects PM's revised migration changes

Opposition Leader Tony Abbott has rejected the Government's latest proposed changes to the Migration Act, saying they pay only lip service to concerns about protections for asylum seekers.

Prime Minister Julia Gillard presented redrafted legislation to Mr Abbott on Monday in a plea for his support to send asylum seekers to Malaysia.

But Mr Abbott says the Government's plan will not work,Malaysian and repeated his belief that temporary protection visas, turning back the boats, and negotiating an arrangement with Nauru remained the right way forward.

He says the Opposition will put forward a different proposal, one that in effect will rule out the Government's preferred Malaysian option.

"I will be taking to our party room tonight a proposal for amendments which will put beyond legal doubt the ability of the Government to send people offshore for processing, provided they are sent to countries which have acceded to the UN refugee convention," Mr Abbott said.

"The difficulty with the initial proposals was it clearly stripped out the protections the Howard government had explicitly built into the Migration Act.

"Effectively the proposals the Government put to us last Friday amounted to offshore dumping, not offshore processing. We made those points crystal clear."

Malaysia is not a signatory to the refugee conventions and has been criticised by human rights advocates for the way it treats asylum seekers.

Mr Abbott says the amended proposal put to him today by Ms Gillard concedes the force of his argument without actually addressing it.

"What the new proposal does is pay lip service to protections without actually guaranteeing them," he said.

"Arguably the Government's proposal today is actually an inferior proposal to the one last Friday because it increases the risk of judicial review without actually strengthening the rights protections that were entirely absent last Friday."

Mr Abbott says his party's alternative position, which he will take to the party room tonight, will "put beyond legal doubt the ability of the Government to send people offshore for processing".

"The former solicitor general David Bennett... has analysed the Government's proposals and the proposed amendments I will be taking to the party room, and he concludes our proposals provides more legal certainty and more rights protections than the Government's proposals."

Political interest

The Government's proposed amendments to the Migration Act have been drafted to circumvent the High Court's scuttling of its Malaysian refugee swap deal.

After the lunchtime meeting with Mr Abbott, Ms Gillard said the draft bill released on Friday had been updated to include "more words" that guaranteed Australia would honour its obligations under UN refugee conventions.

Immigration Minister Chris Bowen says Mr Abbott has rejected the Government's proposals purely out of political interest.

"Clearly, Mr Abbott is doing this for one reason and one reason alone: because he wants to stop the Malaysia agreement being implemented," Mr Bowen said.

"The Opposition wants to stop the Malaysia agreement being implemented because they are scared it will work.

"It is not in [Mr Abbott's] political interest for it to work. He doesn't want to stop people smuggling because he wants to keep his three-word slogans.

"We will be introducing this legislation on Wednesday and will not be accepting the Opposition's amendments.

"We will be opposing their amendments in the Lower House and in the Senate."

Greens leader Bob Brown says the Government's amendments do nothing to protect the rights of asylum seekers when they arrive in Australia.

"Today's announcement by the Prime Minister is nothing short than an effort to get around the High Court, the legal system of this country, to further breach international law and to cosy up to Tony Abbott."

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Better earnings prospects for group

Hong long bank which achieved record profits for the sixth consecutive year, is on a new threshold of earnings with enhanced contribution from the merged  Hong long bank group.
Recognising the concerns over a potential economic slowdown, HLFG president says the domestic economy is still positive and Malaysian companies are on a stronger footing.
As a large part of HLFG's businesses are still centered in Malaysia and the bulk of its overseas income coming from its associate share in the Bank of chengudu Choong does not expect HLFG to be specifically nor significantly affected by adverse European or US exposures except via a general worldwide economic downturn.
“Given our careful and prudent business model, coupled with our customer strength, we expect to fare better in any financial crises. We have also been very disciplined in the mergers and acquisitions (M&As) completed in the past years such that we do not believe we have overpaid more than fair market value over the longer term. Looking forward, despite financial turbulence, we are prepared to sacrifice short-term profits for long-term gains, and will also look out for any opportunities that may emerge in this period,” says Choong
He adds that there is no fixed dividend policy for the group. “We want the flexibility to balance short-term needs of , and long-term needs of the company,'' says Choong.
In this respect, the group has made its assessment and given the appropriate market yield with the remainder for re-investment.
Big steps forward
“For the last five years, we have been re-engineering the group and laying the foundation for growth,'' he tells StarBizWeek. “It is now time to accelerate the rate of growth and double or triple the business that is made of commercial banking, insurance and investment banking.''
The full value from the synergies arising from the enlarged commercial banking operations is expected by 2013; some merger costs may still be experienced in 2012.
The insurance business is the “hidden star” of the group, and the target is to grow its agency force to 12,000 by financial (FY) 2013 from 8,000 currently.


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