Dr Wan Azizah struck at Umno’s soft spot — Kim Quek
December 02, 2010
DEC 2 — PKR President Datuk Seri Dr Wan Azizah Wan Ismail seemed to have struck at the Achilles’ heel of Umno when she officially condemned “Ketuanan Melayu” (Malay the master race) as the fraudulent ideology that has propped up Umno all these years.
Delivering her policy speech during the party’s annual congress on November 27, she said that the Malay supremacy concept was used by Umno’s elites to deceive the Malay masses for self enrichment and for maintaining their political power. As a result, the majority of Malays and Bumiputera have remained poor and neglected despite 53 years of Umno rule.
Calling the Malays to discard this ideology, she said: “The concept of Malay supremacy must be left behind so that our children will grow up with the vision of a dignified race.”
By any democratic standard, Dr Wan Azizah’s clarion call to abandon racism must be applauded as the voice of reason that is in consonance with fundamental values embraced by every member of the world community.
After all, isn’t it true that the last country practising institutionalised racism — South Africa — had given up its racist policy twenty years ago? Though Malaysia has largely escaped the kind of world condemnation accorded former apartheid South Africa, thanks to the Barisan Nasional government’s skilful image polishing, nevertheless, endemic racism remains a plague that has sabotaged national integration and thwarted economic growth.
Ketuanan Melayu indefensible
Perhaps aware that “Ketuanan Melayu” is indefensible in the eyes of the world, Umno was at a loss as to how to respond to Dr Wan Azizah’s unexpected frontal assault.
To keep silent would be to acquiesce to Dr Wan Azizah’s assertion and that would spell trouble — big trouble. For it is through inciting the primordial instinct of race that Umno hopes to scrape through the coming national election. So, how could Umno give up “Ketuanan Melayu”?
On the other hand, to defend the ideology would be to invite worldwide ridicule and condemnation. And that would not be pretty, keeping in mind that with the myriad of modern communication gadgets instantly transmitting news and messages, international backlash could be swift and unpalatable.
So, after a short interval to recover from Dr Wan Azizah’s surprise initiative, responses began to drip in from Umno’s top leaders, but these are either evasive or irrelevant, and none has dared to take Wan Azizal head on.
Deputy Umno President and Deputy Prime Minister Tan Sri Muhyiddin Yassin described Dr Wan Azizah’s assertion as an attempt “to salvage a sinking ship”, and to regain public support after a divisive party election. What about the Ketuanan issue? Not a word of rebuttal.
Umno Vice President and Defence Minister Datuk Seri Zahid Hamidi said Dr Wan Azizah was “only trying to divert public attention from the party’s serious problems.” He said PKR wanted to please the Chinese and Indians to gain their support for the next general election. Again, he avoided touching the Ketuanan issue.
Not unexpectedly, the dirty job of savage counter-offensive was left to Umno’s ultra racist wing Perkasa. Its youth leader Arman Azha Abu Hanifah attacked Azizah as “political prostitute”. He said that she and other PKR Malay leaders owed their professional achievement to “Ketuanan Melayu” policy and that they had now betrayed the race for the sake of gaining Chinese and Indian support.
Interestingly, Arman’s bad manner and insensitive blast at other Malay leaders seem to justify Dr Wan Azizah’s advocacy to abandon the “Ketuanan” mentality so as to regain dignity for the race. It is not only abhorrent conduct to call a respected national leader “prostitute”, but his inference that Malays are not capable of achieving success unless they are propped up by racial favouritism is outright humiliating to the race. In fact, Arman’s crass outburst has unwittingly made him the best poster boy of the ill fruits that “Ketuanan Melayu” has borne.
However, the icing of the cake in this episode is undoubtedly the novel theory put up by the vociferous Umno Cabinet member Datuk Seri Nazri Aziz to deflect Dr Wan Azizah’s criticism. He said “Ketuanan Melayu” is not about the Malay race, but about the Malay Sultans. He said the word was coined to protect the sovereignty of the Malay Rulers, not to emphasise racial supremacy.
Glaring evidence of racism
While Nazri may consider himself ingenious in coming out with this new interpretation to escape the “Ketuanan” trap, it sure holds no water. The bedrock of Umno’s hegemony is its racial ideology which has captivated its core supporters, and “Ketuanan Melayu” has been coined to symbolise Malay supremacy. It is through the indoctrination and implementation of this ideology that Umno has been able to win election after election; and Umno is not about to give it up for whatever reason.
Read more...
http://www.themalaysianinsider.com/breakingviews/article/dr-wan-azizah-struck-at-umnos-soft-spot-kim-quek/
Keep INVESTING Simple and Safe (KISS) ****Investment Philosophy, Strategy and various Valuation Methods**** The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.
Thursday 2 December 2010
I'll die in debt, say one in three in UK
Nine out of 10 people have run up unsecured debt and many fear they will never be able to pay back what they owe, a survey has claimed.
5:40PM GMT 30 Nov 2010
Around 89pc of people aged between 18 and 35 said they owed money on a credit card, loan or overdraft, the research showed.
A third of people admitted they did not think they would ever be debt-free, 54pc of whom said they would always need to borrow money in order to fund the lifestyle they wanted.
One in five of these people also claimed they were not worried about the possibility of their debts being passed on to their next of kin if they died before they were repaid.
Just over half who owed money said they did not feel in control of their debt, with 8pc admitting they had needed to ask for help with repayments from a friend or family member. Eight out of 10 people also told the research for discount website MyVoucherCodes.co.uk that they thought it was too easy to borrow money through their bank or on credit cards.
Farhad Farhadi, MyVoucherCodes.co.uk's personal finance expert, said: "The majority of British adults owe money in some way, shape or form, but to see that almost a third think they'll never be free from debt is quite alarming.
"When borrowing money from any source, how you are going to repay it should always be in the back of your mind.
"A lot of people don't really think about the consequences of borrowing money and it can be easy to get complacent, but keeping it all under control should be a priority from the off. Only borrow what you really think you can afford to pay back."
MyVoucherCodes.co.uk questioned 1,722 people aged between 18 and 35 during November.
http://www.telegraph.co.uk/finance/personalfinance/borrowing/8171236/Ill-die-in-debt-say-one-in-three.html
5:40PM GMT 30 Nov 2010
Around 89pc of people aged between 18 and 35 said they owed money on a credit card, loan or overdraft, the research showed.
A third of people admitted they did not think they would ever be debt-free, 54pc of whom said they would always need to borrow money in order to fund the lifestyle they wanted.
One in five of these people also claimed they were not worried about the possibility of their debts being passed on to their next of kin if they died before they were repaid.
Just over half who owed money said they did not feel in control of their debt, with 8pc admitting they had needed to ask for help with repayments from a friend or family member. Eight out of 10 people also told the research for discount website MyVoucherCodes.co.uk that they thought it was too easy to borrow money through their bank or on credit cards.
Farhad Farhadi, MyVoucherCodes.co.uk's personal finance expert, said: "The majority of British adults owe money in some way, shape or form, but to see that almost a third think they'll never be free from debt is quite alarming.
"When borrowing money from any source, how you are going to repay it should always be in the back of your mind.
"A lot of people don't really think about the consequences of borrowing money and it can be easy to get complacent, but keeping it all under control should be a priority from the off. Only borrow what you really think you can afford to pay back."
MyVoucherCodes.co.uk questioned 1,722 people aged between 18 and 35 during November.
http://www.telegraph.co.uk/finance/personalfinance/borrowing/8171236/Ill-die-in-debt-say-one-in-three.html
Well-managed companies set to gain
Tuesday November 30, 2010
Well-managed companies set to gain
By Teoh Kok Lin
ASIA'S stock valuations are not expensive especially if you pick the right companies to invest for the long term. I sensed lately that there is a growing concern when I speak to investors about Asia's or Malaysia's stock markets.
The fact that Malaysia's stock market index is now hovering near its all-time high of 1,516 points (set in January 2008) is one big cause of uneasiness for some; while EU financial problems and lukewarm US economic data have put a damper on sentiments for others. Some anxiety is not surprising; fresh in many investors' minds are the 2008 global stock market crash, the rebound of 2009 and very volatile markets throughout.
Unnerving investors
Volatile stock markets can be unnerving for investors; since 2008, major stock market indices such as in China, Hong Kong and the United States have experienced gains or losses of up to 3% to 5% a day such huge daily swings are no longer unusual or unexpected.
It is therefore understandable that some investors feel that stock markets (in Malaysia or elsewhere) are due for a big fall, either because stock prices are already too high and/or Western economies have too many unresolved problems. Even a double-dip global stock market crash continues to be bandied about with gusto.
I like to share some of my views on these doubts, especially with regards to Asia's stock market prospects. First of all, are stock prices too high? Asia's stock market indices today (including Malaysia) are still attractively priced and not close to the excessive levels seen in the late 2007/early 2008 market highs (See table). Hence I believe Asia stock prices in general are not expensive yet.
The current Asia bull market rally also means some stock markets will keep hitting new highs, and bull markets can last for many years (for example, the US S&P 500 Index rallied from 295 points in 1990 to 1,232 points in 2000, a continuous bull run for more than nine years, as compared to the current bull run in Asia of about two years).
Second, Asia today is experiencing a major shift in the world's economic centre of power from the West to the East. In this decade, Asia is likely to continue with its rapid economic growth while the West repairs it debt-laden economies.
Growth in Asia will be fuelled by the three big populous and increasingly rich nations of China, India and Indonesia where latent demand for consumer goods is built on a base of almost three billion increasingly wealthier consumers.
According to a World Bank report, China has 32 cars per 1,000 population while India (10 cars) and Indonesia (76 cars) has equally low car ownerships when compared to the United States (819 cars) or Australia (653 cars). For the next 10 years, I would hazard a guess that major car companies will likely sell more cars in Asia than in the United States every year.
On a similar vein, while there may be short-term negative sentiment in China's property sector, I believe that the underlying Chinese demand for housing will be very strong for many more years to come due mostly to increasing wealth (nominal per capita GDP rose from about US$1,000 in 2000 to US$3,735 in 2009 and likely to grow richer) and rapid urbanisation (2.7% annual rate of change) in a country with 1.3 billion population.
This decade, therefore, will offer tremendous opportunities for many established as well as entrepreneurial Asian companies to prosper.
Accurate information
Third, when one invests in stocks, it is the company's business that you invest in. Accurate and timely information regarding a company its business and management is important in order to separate the well-managed from the not-so-well managed companies.
After any stock market downturns, good companies will almost always rebound strongly; something that was quite evident during the 2009 stock market rally. It may be stating the obvious but picking the right stock (or well-managed company) will most likely determine whether one is investing successfully or not.
Finally, as long as the macroeconomic trend is favourable for Asian economies, it also represents fantastic business opportunities for well-managed Asian companies. As Warren Buffett says: If a business does well, the stock eventually follows.
Investing for the long term in companies that will reap the benefits of Asia's high economic growth for many years will likely reap handsome rewards no matter whether there is short-term market volatility, downturns or corrections. In that sense, I am very optimistic for Asian equities this decade.
The writer is the founder and chief investment officer of Singular Asset Management Sdn Bhd.
http://biz.thestar.com.my/news/story.asp?file=/2010/11/30/business/7523425&sec=business
Well-managed companies set to gain
By Teoh Kok Lin
ASIA'S stock valuations are not expensive especially if you pick the right companies to invest for the long term. I sensed lately that there is a growing concern when I speak to investors about Asia's or Malaysia's stock markets.
The fact that Malaysia's stock market index is now hovering near its all-time high of 1,516 points (set in January 2008) is one big cause of uneasiness for some; while EU financial problems and lukewarm US economic data have put a damper on sentiments for others. Some anxiety is not surprising; fresh in many investors' minds are the 2008 global stock market crash, the rebound of 2009 and very volatile markets throughout.
Unnerving investors
Volatile stock markets can be unnerving for investors; since 2008, major stock market indices such as in China, Hong Kong and the United States have experienced gains or losses of up to 3% to 5% a day such huge daily swings are no longer unusual or unexpected.
It is therefore understandable that some investors feel that stock markets (in Malaysia or elsewhere) are due for a big fall, either because stock prices are already too high and/or Western economies have too many unresolved problems. Even a double-dip global stock market crash continues to be bandied about with gusto.
I like to share some of my views on these doubts, especially with regards to Asia's stock market prospects. First of all, are stock prices too high? Asia's stock market indices today (including Malaysia) are still attractively priced and not close to the excessive levels seen in the late 2007/early 2008 market highs (See table). Hence I believe Asia stock prices in general are not expensive yet.
The current Asia bull market rally also means some stock markets will keep hitting new highs, and bull markets can last for many years (for example, the US S&P 500 Index rallied from 295 points in 1990 to 1,232 points in 2000, a continuous bull run for more than nine years, as compared to the current bull run in Asia of about two years).
Second, Asia today is experiencing a major shift in the world's economic centre of power from the West to the East. In this decade, Asia is likely to continue with its rapid economic growth while the West repairs it debt-laden economies.
Growth in Asia will be fuelled by the three big populous and increasingly rich nations of China, India and Indonesia where latent demand for consumer goods is built on a base of almost three billion increasingly wealthier consumers.
According to a World Bank report, China has 32 cars per 1,000 population while India (10 cars) and Indonesia (76 cars) has equally low car ownerships when compared to the United States (819 cars) or Australia (653 cars). For the next 10 years, I would hazard a guess that major car companies will likely sell more cars in Asia than in the United States every year.
On a similar vein, while there may be short-term negative sentiment in China's property sector, I believe that the underlying Chinese demand for housing will be very strong for many more years to come due mostly to increasing wealth (nominal per capita GDP rose from about US$1,000 in 2000 to US$3,735 in 2009 and likely to grow richer) and rapid urbanisation (2.7% annual rate of change) in a country with 1.3 billion population.
This decade, therefore, will offer tremendous opportunities for many established as well as entrepreneurial Asian companies to prosper.
Accurate information
Third, when one invests in stocks, it is the company's business that you invest in. Accurate and timely information regarding a company its business and management is important in order to separate the well-managed from the not-so-well managed companies.
After any stock market downturns, good companies will almost always rebound strongly; something that was quite evident during the 2009 stock market rally. It may be stating the obvious but picking the right stock (or well-managed company) will most likely determine whether one is investing successfully or not.
Finally, as long as the macroeconomic trend is favourable for Asian economies, it also represents fantastic business opportunities for well-managed Asian companies. As Warren Buffett says: If a business does well, the stock eventually follows.
Investing for the long term in companies that will reap the benefits of Asia's high economic growth for many years will likely reap handsome rewards no matter whether there is short-term market volatility, downturns or corrections. In that sense, I am very optimistic for Asian equities this decade.
The writer is the founder and chief investment officer of Singular Asset Management Sdn Bhd.
http://biz.thestar.com.my/news/story.asp?file=/2010/11/30/business/7523425&sec=business
Wednesday 1 December 2010
Reflections on Volume
Big volume without further upside equals distribution
Big volume without further downside equals accumulation
Volume tends to peak at turning points
Volume often precedes price movement
Volume is a relative study
Big volume without further downside equals accumulation
Volume tends to peak at turning points
Volume often precedes price movement
Volume is a relative study
Politicians should embrace 'Ketuanan Rakyat' and focus on their services to the public, helping ALL the people.
‘Ketuanan Melayu’ not in Constitution, says Prof Khoo
November 30, 2010
KUALA LUMPUR, Nov 30 — The terminology “Ketuanan Melayu” or Malay Supremacy need not be debated because it does not exist in the country’s constitution, said history expert, Prof Emeritus Tan Sri Dr Khoo Kay Kim.
He said that from the historical aspect, only the Rulers’ Supremacy was stated in the constitution where the people must show their loyalty to the Rulers.
“In the past, ‘Malay Supremacy’ was never mentioned within the Malay community. In history, such things are incorrect. What is stated in the Constitution is only the Rulers’ Supremacy, where you show loyalty to the state where you reside in.
“The Malays obtained the special privileges because they are the subjects of the Ruler. The position of the Malays is given special consideration and need not be disputed,” he said when contacted by Bernama, here tonight.
He was asked to comment on the statement by Parti Keadilan Rakyat (PKR) president Datin Seri Dr Wan Azizah Wan Ismail on the Malay Supremacy in her policy speech at the 7th National Congress of the party on Sunday.
Dr Wan Azizah called for the abolition of the concept of Malay Supremacy to enable Malaysian children to grown up with the vision of a ‘race of integrity’ or ‘Malay of Integrity’.
Khoo said the terminology ‘Malay Supremacy’ was only raised by politicians purely for political purposes, and he observed that politicians were now frequently raising issues that could lead to racial confrontations.
“Politicians should focus on their services to the public, helping the people. They should not encourage the people to quarrel,” he said.
Meanwhile, the Director of the Institute of Ethnic Studies, Universiti Kebangsaan Malaysia (UKM), Prof Datuk Dr Shamsul Amri Baharuddin shared Khoo’s opinion that the term Malay Supremacy was coined by politicians in portraying the political and economic position of the Malays.
Questioning Dr Wan Azizah’s motive in raising the issue, he said the statement by the wife of PKR de facto leader, Datuk Seri Anwar Ibrahim, was merely a political gimmick and purely to cover up the crisis faced by the party currently.
“I don’t know why the issue was raised. What I notice is “Anwar’s Supremacy” in the PKR. It is Anwar’s Supremacy that must be abolished. The Malay Supremacy is merely to demolish Anwar’s Supremacy. In my opinion, the concept (Malay Supremacy) does not exist,” he said.
He said Dr Wan Azizah should re-examine what was meant by the term supremacy and should not question the special privileges of the Malays which had been enshrined ever since the era of the Malay Sultanate.
Shamsul Amri said that looking from the economic aspect, the Chinese community dominated 70 per cent of the economy while the Malays had only 30 per cent and there was no such thing as the Malays dominating in all aspects.
“If we look at it, the 70 per cent should be the supreme group. So, what does the Malay Supremacy show? What does supremacy mean? She (Dr Wan Azizah) herself is not clear on the meaning of supremacy,” he said.
Dr Shamsul Amri said politicians should be thinking about issues that were relevant for discussion instead of raising issues that could bring about negative developments between the races. — Bernama
http://www.themalaysianinsider.com/malaysia/article/ketuanan-melayu-not-in-constitution-says-kay-kim/
November 30, 2010
KUALA LUMPUR, Nov 30 — The terminology “Ketuanan Melayu” or Malay Supremacy need not be debated because it does not exist in the country’s constitution, said history expert, Prof Emeritus Tan Sri Dr Khoo Kay Kim.
He said that from the historical aspect, only the Rulers’ Supremacy was stated in the constitution where the people must show their loyalty to the Rulers.
“In the past, ‘Malay Supremacy’ was never mentioned within the Malay community. In history, such things are incorrect. What is stated in the Constitution is only the Rulers’ Supremacy, where you show loyalty to the state where you reside in.
“The Malays obtained the special privileges because they are the subjects of the Ruler. The position of the Malays is given special consideration and need not be disputed,” he said when contacted by Bernama, here tonight.
He was asked to comment on the statement by Parti Keadilan Rakyat (PKR) president Datin Seri Dr Wan Azizah Wan Ismail on the Malay Supremacy in her policy speech at the 7th National Congress of the party on Sunday.
Dr Wan Azizah called for the abolition of the concept of Malay Supremacy to enable Malaysian children to grown up with the vision of a ‘race of integrity’ or ‘Malay of Integrity’.
Khoo said the terminology ‘Malay Supremacy’ was only raised by politicians purely for political purposes, and he observed that politicians were now frequently raising issues that could lead to racial confrontations.
“Politicians should focus on their services to the public, helping the people. They should not encourage the people to quarrel,” he said.
Meanwhile, the Director of the Institute of Ethnic Studies, Universiti Kebangsaan Malaysia (UKM), Prof Datuk Dr Shamsul Amri Baharuddin shared Khoo’s opinion that the term Malay Supremacy was coined by politicians in portraying the political and economic position of the Malays.
Questioning Dr Wan Azizah’s motive in raising the issue, he said the statement by the wife of PKR de facto leader, Datuk Seri Anwar Ibrahim, was merely a political gimmick and purely to cover up the crisis faced by the party currently.
“I don’t know why the issue was raised. What I notice is “Anwar’s Supremacy” in the PKR. It is Anwar’s Supremacy that must be abolished. The Malay Supremacy is merely to demolish Anwar’s Supremacy. In my opinion, the concept (Malay Supremacy) does not exist,” he said.
He said Dr Wan Azizah should re-examine what was meant by the term supremacy and should not question the special privileges of the Malays which had been enshrined ever since the era of the Malay Sultanate.
Shamsul Amri said that looking from the economic aspect, the Chinese community dominated 70 per cent of the economy while the Malays had only 30 per cent and there was no such thing as the Malays dominating in all aspects.
“If we look at it, the 70 per cent should be the supreme group. So, what does the Malay Supremacy show? What does supremacy mean? She (Dr Wan Azizah) herself is not clear on the meaning of supremacy,” he said.
Dr Shamsul Amri said politicians should be thinking about issues that were relevant for discussion instead of raising issues that could bring about negative developments between the races. — Bernama
http://www.themalaysianinsider.com/malaysia/article/ketuanan-melayu-not-in-constitution-says-kay-kim/
Upscale Americans Investing Abroad
WEALTH MATTERS
Buy American? Upscale Investors Look Abroad
By PAUL SULLIVAN
Published: November 19, 2010
Well-heeled American investors have been doing something lately that they resisted for decades — becoming more like their European, Asian and Latin American counterparts and substantially diversifying their portfolios outside their home country.
“I’ve never seen a period in which clients have expressed such an interest in nondollar investments,” said Kent Lucken, managing director at Citi Private Bank. “People are spreading their chips around more prudently and I think more wisely.”
What is different is how directly these investors are going into non-American markets. They are not content with buying international equities or going into an international bond fund. They are looking to invest directly in Chinese private equity, Indian real estate, Brazilian equities denominated in reals and Australian government bonds. They are also opening cash accounts in multiple currencies.
“International clients understand the need to diversify currencies, but this is something new to U.S. clients,” said David Frame, global head of alternative investment at J. P. Morgan Private Bank.
The people putting as much as 40 percent of their portfolios into nondollar investments are quite wealthy. But consider it this way: What can investors of more modest means learn from what the wealthiest people in the country — with the best research and advice at their disposal — are doing with large portions of their fortunes?
UPSIDE Investors who lived through the 1990s will remember the crises in Asia, Mexico and Russia that shook global capital markets. Investing internationally has always carried risks and it is by no means without perils today.
But many investors see a different trade-off, one based as much on a stagnant or declining United States as on certain international markets that are growing, if not booming.
“When you make an investment in nondollar currencies, you’re making two investments at once,” said Tony Roth, head of investment strategies at UBS Wealth Management. “You’re betting the dollar will go down, but you’re also buying another investment. You need to be compensated for that source of risk.”
He cited the example of buying a one-year Australian government bond, yielding 5.25 percent. He said he believed that the American dollar was going to lose value and the Australian dollar was going to gain it. That’s Part 1. Part 2 is that the Australian government is stable, so an investor can count on receiving that 5 percent annual return. The alternative is less than half of a percent if invested in United States Treasuries.
“I’m going to receive a return,” he said, “that more than compensates me for the marginal risk I’m taking.”
But there are far more risky investments. And the ones that are less liquid — infrastructure in China, say, or a private equity fund in Brazil — carry more uncertainty. But like their equivalents in the United States, they provide a higher return, in theory.
Mr. Frame said clients were investing in Asian infrastructure and Asian private equity by pooling their money with other investors. “There is a lot going on when a country is growing and developing that is hard to address through the public markets,” he said.
While there’s an obvious "pull" to international investments, there is also a bit of a "push" out of the United States: investors who are making their portfolios more international are doing so because they believe that the role of the United States in the global economy is shrinking.
Mr. Roth said the United States contributed 40 percent of global gross domestic product 15 years ago and now contributed 21 percent. He predicted that that figure would fall to 12 percent in another 15 years. Going along with this is the shrinking market capitalization of American stocks compared with global stocks.
“We have the U.S. experiencing flat to 2 percent G.D.P. growth, but you have Brazil, India and China with substantially higher rates,” Mr. Lucken said. “Equity investors are investing abroad to capture higher returns and invest ahead of higher growth rates.”
DOWNSIDE The biggest risk is uncertainty, followed by a lack of knowledge. No one knows exactly what is going to happen, and there are always investors who rush in too quickly without fully understanding the risks.
Those risks run the gamut from income inequality that could create unrest, to legal systems that have not been tested by foreign investors, to managers abroad without established track records.
There is also the unforeseen. “I witnessed firsthand the collapse of the Soviet Union,” said Mr. Lucken, a former foreign service officer. “That speaks to the unique political risks in smaller developing countries.”
Also, South Korea and Brazil, which are now darlings of investors, were shaken by crises in the 1990s. “The history of success has been relatively short — the past 10, 12 years,” said Christopher J. Wolfe, chief investment officer for the private banking and investment group at Merrill Lynch.
But Mr. Wolfe said clients were investing across all asset classes when they invested internationally and that gave them greater diversification. It is also a big change from the time when “it used to be U.S. stocks and non-U.S. stocks,” he said.
Like all big changes, there are going to be fits and starts. But after what investors lived through over the last three years at home, some are willing to chance it.
http://www.nytimes.com/2010/11/20/your-money/20wealth.html?ref=wealth_matters
Buy American? Upscale Investors Look Abroad
By PAUL SULLIVAN
Published: November 19, 2010
Well-heeled American investors have been doing something lately that they resisted for decades — becoming more like their European, Asian and Latin American counterparts and substantially diversifying their portfolios outside their home country.
There are two reasons for this. The financial crisis and the slow recovery showed them that the United States was not immune to devastating crashes of the kind that wealthy people in emerging markets have tried to hedge against by investing abroad. And second, American investors are worried that their portfolios are going to suffer for the foreseeable future, given the size of the United States’ budget deficit, the weakness of the dollar and the uncertainty over the stock market.
“I’ve never seen a period in which clients have expressed such an interest in nondollar investments,” said Kent Lucken, managing director at Citi Private Bank. “People are spreading their chips around more prudently and I think more wisely.”
What is different is how directly these investors are going into non-American markets. They are not content with buying international equities or going into an international bond fund. They are looking to invest directly in Chinese private equity, Indian real estate, Brazilian equities denominated in reals and Australian government bonds. They are also opening cash accounts in multiple currencies.
“International clients understand the need to diversify currencies, but this is something new to U.S. clients,” said David Frame, global head of alternative investment at J. P. Morgan Private Bank.
The people putting as much as 40 percent of their portfolios into nondollar investments are quite wealthy. But consider it this way: What can investors of more modest means learn from what the wealthiest people in the country — with the best research and advice at their disposal — are doing with large portions of their fortunes?
UPSIDE Investors who lived through the 1990s will remember the crises in Asia, Mexico and Russia that shook global capital markets. Investing internationally has always carried risks and it is by no means without perils today.
But many investors see a different trade-off, one based as much on a stagnant or declining United States as on certain international markets that are growing, if not booming.
“When you make an investment in nondollar currencies, you’re making two investments at once,” said Tony Roth, head of investment strategies at UBS Wealth Management. “You’re betting the dollar will go down, but you’re also buying another investment. You need to be compensated for that source of risk.”
He cited the example of buying a one-year Australian government bond, yielding 5.25 percent. He said he believed that the American dollar was going to lose value and the Australian dollar was going to gain it. That’s Part 1. Part 2 is that the Australian government is stable, so an investor can count on receiving that 5 percent annual return. The alternative is less than half of a percent if invested in United States Treasuries.
“I’m going to receive a return,” he said, “that more than compensates me for the marginal risk I’m taking.”
But there are far more risky investments. And the ones that are less liquid — infrastructure in China, say, or a private equity fund in Brazil — carry more uncertainty. But like their equivalents in the United States, they provide a higher return, in theory.
Mr. Frame said clients were investing in Asian infrastructure and Asian private equity by pooling their money with other investors. “There is a lot going on when a country is growing and developing that is hard to address through the public markets,” he said.
While there’s an obvious "pull" to international investments, there is also a bit of a "push" out of the United States: investors who are making their portfolios more international are doing so because they believe that the role of the United States in the global economy is shrinking.
Mr. Roth said the United States contributed 40 percent of global gross domestic product 15 years ago and now contributed 21 percent. He predicted that that figure would fall to 12 percent in another 15 years. Going along with this is the shrinking market capitalization of American stocks compared with global stocks.
“We have the U.S. experiencing flat to 2 percent G.D.P. growth, but you have Brazil, India and China with substantially higher rates,” Mr. Lucken said. “Equity investors are investing abroad to capture higher returns and invest ahead of higher growth rates.”
DOWNSIDE The biggest risk is uncertainty, followed by a lack of knowledge. No one knows exactly what is going to happen, and there are always investors who rush in too quickly without fully understanding the risks.
Those risks run the gamut from income inequality that could create unrest, to legal systems that have not been tested by foreign investors, to managers abroad without established track records.
There is also the unforeseen. “I witnessed firsthand the collapse of the Soviet Union,” said Mr. Lucken, a former foreign service officer. “That speaks to the unique political risks in smaller developing countries.”
Also, South Korea and Brazil, which are now darlings of investors, were shaken by crises in the 1990s. “The history of success has been relatively short — the past 10, 12 years,” said Christopher J. Wolfe, chief investment officer for the private banking and investment group at Merrill Lynch.
But Mr. Wolfe said clients were investing across all asset classes when they invested internationally and that gave them greater diversification. It is also a big change from the time when “it used to be U.S. stocks and non-U.S. stocks,” he said.
Like all big changes, there are going to be fits and starts. But after what investors lived through over the last three years at home, some are willing to chance it.
http://www.nytimes.com/2010/11/20/your-money/20wealth.html?ref=wealth_matters
Hunting for Returns Abroad
Are overseas investments worth the risk? Which ones can be part of the mix for a prudent investor?
Wealth Matters
Paul Sullivan writes about strategies that the wealthy use to manage their money and their overall well-being.
Tuesday 30 November 2010
Integrax sees LMT tagged at ‘no less than RM250m’
Integrax sees LMT tagged at ‘no less than RM250m’
Tags: Integrax Bhd | LMT
Written by Joy Lee
Tuesday, 30 November 2010 15:10
KUALA LUMPUR: Port operator Integrax Bhd may consider selling its stake in Lumut Maritime Terminal Sdn Bhd (LMT) for a price tag of no less than RM125 million.
LMT has a port facility and cash of about RM50 million as at June 2010. Additionally, LMT has an exclusive concession zone of a 30km radius around the terminal, which expires in 2015 with land available for sale.
“I think [the value of LMT] would be in excess of a quarter billion (RM250 million),” Harun Halim Rasip, joint chief executive of Integrax, said at a press briefing yesterday.
Currently, Integrax has a 50% minus one share in LMT while Perak Corp, via its unit Taipan Merit Sdn Bhd, has a 50% plus one share in LMT.
LMT has an exclusive contract to manage the deepwater port Lekir Bulk Terminal (LBT), in which Integrax has an 80% equity, till 2017. Malakoff Corp Bhd holds the remaining 20% of LBT.
There is a feud between Harun and his brother Amin Halim Rasip, who is also co-chief executive and executive director of Integrax. The duo hold a collective stake of 37.8% in Integrax via private vehicles.
Yesterday Amin took the stage before a press briefing called for by Harun.
The brothers do not see eye to eye on the plans ahead for Integrax, including the deal to provide transshipment services for Brazilian mining giant Vale, the world’s largest iron ore producer, for a 10-year tenure while Vale built its own facility.
While Amin is for the Vale deal, Harun and other board members, are opposed the deal as the cost of setting up the facility for Vale would be in the region of RM280 million.
Harun’s objection was due to the capital investment that Integrax would have to incur with no certainty of the port being utilised after the 10-year tenure. The board said it would be difficult to rope in new clients of Vale’s size. “The financial risks that were worked out against the permutation on capital cost yielded a return that was too low. The deal did not make sense,” Harun said.
At this, Amin, who has the backing of the state, interjected: “Data will be provided to you to show that this is totally incorrect. It does not accord to reality.”
Integrax and the Perak government have been at loggerheads since the former turned down the Vale offer. The Perak government and Amin said the Vale deal would benefit the state including a commitment by Vale to build a RM3 billion iron ore pellet distribution centre.
LMT is currently the object of a tussle between Taipan Merit and Integrax after Perak Corp terminated a shareholders’ agreement with Integrax for the operations of LMT. Integrax said earlier it had opted to exercise its option to acquire all of Taipan Merit’s shares in LMT.
Perak Corp is unlikely to give up LMT as it is the state’s main revenue generator. For the nine months ended September, Perak Corp posted a net profit of RM13.33 million on revenue of RM74.81 million. Its infrastructure arm accounted for almost RM64 million of Perak Corp’s revenue.
Nonetheless, should Taipan Merit be able to gain full control of LMT, LBT may opt to terminate the operations and maintenance agreement with LMT given the ongoing scuffle at Integrax’s level.
Perak Corp has an 8.29% interest in Integrax via Kuda Sejati.
Yesterday Perak Corp announced that it bought 20 million shares or a 6.67% stake in Intergrax for RM30 million, confirming an earlier report by The Edge Financial Daily. The acquisition is seen as a move by Perak Corp to strengthen its position in Integrax.
Last week, another block of 5.6 million shares, or 1.87% stake, was traded off-market. The block is believed to have been mopped up by KYM Holdings Bhd, which had sold 756 acres of land to Vale for RM93.76 million.
With KYM entering the fray, it will be interesting to see how the struggle for control at Integrax ends. Given that the only logical way for the tussle to end is for one party to exit, but it may be a long while before the dust settles.
The boardroom tussle has sent Integrax shares surging 107.7% year-to-date to RM1.60 yesterday. The stock’s net assets per share were RM1.79 as at Sept 30.
At that price, the company has a market capitalisation of RM481.3 million.
This article appeared in The Edge Financial Daily, November 30, 2010.
Tags: Integrax Bhd | LMT
Written by Joy Lee
Tuesday, 30 November 2010 15:10
KUALA LUMPUR: Port operator Integrax Bhd may consider selling its stake in Lumut Maritime Terminal Sdn Bhd (LMT) for a price tag of no less than RM125 million.
LMT has a port facility and cash of about RM50 million as at June 2010. Additionally, LMT has an exclusive concession zone of a 30km radius around the terminal, which expires in 2015 with land available for sale.
“I think [the value of LMT] would be in excess of a quarter billion (RM250 million),” Harun Halim Rasip, joint chief executive of Integrax, said at a press briefing yesterday.
Currently, Integrax has a 50% minus one share in LMT while Perak Corp, via its unit Taipan Merit Sdn Bhd, has a 50% plus one share in LMT.
LMT has an exclusive contract to manage the deepwater port Lekir Bulk Terminal (LBT), in which Integrax has an 80% equity, till 2017. Malakoff Corp Bhd holds the remaining 20% of LBT.
There is a feud between Harun and his brother Amin Halim Rasip, who is also co-chief executive and executive director of Integrax. The duo hold a collective stake of 37.8% in Integrax via private vehicles.
Yesterday Amin took the stage before a press briefing called for by Harun.
The brothers do not see eye to eye on the plans ahead for Integrax, including the deal to provide transshipment services for Brazilian mining giant Vale, the world’s largest iron ore producer, for a 10-year tenure while Vale built its own facility.
While Amin is for the Vale deal, Harun and other board members, are opposed the deal as the cost of setting up the facility for Vale would be in the region of RM280 million.
Harun’s objection was due to the capital investment that Integrax would have to incur with no certainty of the port being utilised after the 10-year tenure. The board said it would be difficult to rope in new clients of Vale’s size. “The financial risks that were worked out against the permutation on capital cost yielded a return that was too low. The deal did not make sense,” Harun said.
At this, Amin, who has the backing of the state, interjected: “Data will be provided to you to show that this is totally incorrect. It does not accord to reality.”
Integrax and the Perak government have been at loggerheads since the former turned down the Vale offer. The Perak government and Amin said the Vale deal would benefit the state including a commitment by Vale to build a RM3 billion iron ore pellet distribution centre.
LMT is currently the object of a tussle between Taipan Merit and Integrax after Perak Corp terminated a shareholders’ agreement with Integrax for the operations of LMT. Integrax said earlier it had opted to exercise its option to acquire all of Taipan Merit’s shares in LMT.
Perak Corp is unlikely to give up LMT as it is the state’s main revenue generator. For the nine months ended September, Perak Corp posted a net profit of RM13.33 million on revenue of RM74.81 million. Its infrastructure arm accounted for almost RM64 million of Perak Corp’s revenue.
Nonetheless, should Taipan Merit be able to gain full control of LMT, LBT may opt to terminate the operations and maintenance agreement with LMT given the ongoing scuffle at Integrax’s level.
Perak Corp has an 8.29% interest in Integrax via Kuda Sejati.
Yesterday Perak Corp announced that it bought 20 million shares or a 6.67% stake in Intergrax for RM30 million, confirming an earlier report by The Edge Financial Daily. The acquisition is seen as a move by Perak Corp to strengthen its position in Integrax.
Last week, another block of 5.6 million shares, or 1.87% stake, was traded off-market. The block is believed to have been mopped up by KYM Holdings Bhd, which had sold 756 acres of land to Vale for RM93.76 million.
With KYM entering the fray, it will be interesting to see how the struggle for control at Integrax ends. Given that the only logical way for the tussle to end is for one party to exit, but it may be a long while before the dust settles.
The boardroom tussle has sent Integrax shares surging 107.7% year-to-date to RM1.60 yesterday. The stock’s net assets per share were RM1.79 as at Sept 30.
At that price, the company has a market capitalisation of RM481.3 million.
This article appeared in The Edge Financial Daily, November 30, 2010.
Integrax co-CEO says buyout can clear row
Tuesday November 30, 2010
Integrax co-CEO says buyout can clear row
By SHARIDAN M. ALI
sharidan@thestar.com.my
KUALA LUMPUR: Integrax Bhd co-chief executive officer Harun Halim Rasip says the company's fallout with Taipan Merit Sdn Bhd may be solved if one of them buys the other out of Lumut Maritime Terminal Sdn Bhd (LMT).
Taipan Merit, a Perak state-owned enterprise under Perak Corp Bhd, had recently terminated the shareholders agreement with Integrax for LMT, a port-operating unit of Integrax.
It was set out under the agreement that Integrax had the right to nominate the CEO of LMT to be approved by the LMT board.
The agreement also provides for reserved matters which effectively makes LMT a 50:50 joint venture where both shareholders have to be in agreement although Taipan Merit holds 50% plus one share in LMT.
Integrax found the termination unacceptable and a breach of the agreement. Thus it filed a notification of arbitration and made an offer to buy out Taipan Merit on Nov 10.
Integrax also filed an originating summons to Perak Corp, Taipan Merit and the other Integrax co-CEO, Amin Halim Rasip, amongst others.
We are unable to offer the buy-out now until the arbitration stage and I am willing to pay a lot of money for it. We are also going for the injunction because we want to put somebody independent to run the company, protect our shares in LMT and make sure the money is not being dissipated inappropriately.
If it (Taipan Merit) is professional enough, it should offer to be bought out, he told a press briefing yesterday.
Harun said the problem with Taipan Merit started before the Vale International SA contract came into the picture. Harun and Amin, both major shareholders of Integrax, have been feuding over the matter with the latter and Taipan Merit in favour of the tie-up with Vale.
But the problem with Taipan Merit has some impact on the Vale matter. Now, as the transhipment services agreement with Vale had lapsed on Oct 19, we're just going to step back, Harun said.
All the noise for the Vale contract has no merit as it has problems to reflect stable financial return. Also, we do not want to be investing RM250mil to RM300mil while the relationship with our partner is on the rocks.
Harun added that the Vale contract required high capital expenditure where the minimum annual throughput from the project would not generate enough income to meet Integrax's minimum project hurdle rate of return.
It will result in asset yield destruction, he said.
The port signed an agreement with Vale on Dec 29, 2009 which allowed Integrax to expand existing facilities at the Lekir Bulk Terminal (LBT), one of two terminals in which Integrax has stakes in, to comply with the LBT's requirements over a 10-year period.
Meanwhile, Vale bought 166ha for almost RM102mil in cash from KYM Holdings Bhd and its 54%-owned subsidiary, Harta Makmur Sdn Bhd, in early January with an option to acquire an additional 306ha for RM93.8mil in cash.
Going forward, Harun said Integrax would be tapping into Indonesia's booming economy to expand its port operations. Integrax holds a 70% stake in PT Indoexchange Tbk, a public-listed Indonesian company.
Indonesia's vast economic potential is hampered by poor infrastructure, including ports. And supported by hastening of de-regulation process in the port industry, Integrax is ready to fill this gap and has committed to the state-owned enterprise to undertake the operations and management of an established port in Sumatra, amongst other potential projects there.
It is estimated that the expansion plan in Indonesia will cost about US$150mil, he said.
As for LMT and LBT, Harun said negotiations were under way to deal with additional coal-handling needs which would serve the expansion of Tenaga Nasional Bhd's Janamanjung power plant at LBT.
Meanwhile, Perak Corp, in a filing with Bursa Malaysia yesterday, said Taipan Merit had, on Nov 26, acquired 20 million ordinary shares of RM1 each in Integrax, representing 6.65% of the issued and paid-up capital of Integrax, for about RM30.05mil cash.
In a separate filing, Integrax said PT Indoexchange had announced to Bursa Efek Indonesia and had made the obligatory disclosure that it had received a notice of termination of share-sale agreement dated June 13, 2008 from one of three vendors of shares in PT Alkatara.
PT Indoexchange is taking the necessary legal actions against the vendors.
http://biz.thestar.com.my/news/story.asp?file=/2010/11/30/business/7522289&sec=business
Integrax co-CEO says buyout can clear row
By SHARIDAN M. ALI
sharidan@thestar.com.my
KUALA LUMPUR: Integrax Bhd co-chief executive officer Harun Halim Rasip says the company's fallout with Taipan Merit Sdn Bhd may be solved if one of them buys the other out of Lumut Maritime Terminal Sdn Bhd (LMT).
Taipan Merit, a Perak state-owned enterprise under Perak Corp Bhd, had recently terminated the shareholders agreement with Integrax for LMT, a port-operating unit of Integrax.
It was set out under the agreement that Integrax had the right to nominate the CEO of LMT to be approved by the LMT board.
The agreement also provides for reserved matters which effectively makes LMT a 50:50 joint venture where both shareholders have to be in agreement although Taipan Merit holds 50% plus one share in LMT.
Integrax found the termination unacceptable and a breach of the agreement. Thus it filed a notification of arbitration and made an offer to buy out Taipan Merit on Nov 10.
Integrax also filed an originating summons to Perak Corp, Taipan Merit and the other Integrax co-CEO, Amin Halim Rasip, amongst others.
We are unable to offer the buy-out now until the arbitration stage and I am willing to pay a lot of money for it. We are also going for the injunction because we want to put somebody independent to run the company, protect our shares in LMT and make sure the money is not being dissipated inappropriately.
If it (Taipan Merit) is professional enough, it should offer to be bought out, he told a press briefing yesterday.
Harun said the problem with Taipan Merit started before the Vale International SA contract came into the picture. Harun and Amin, both major shareholders of Integrax, have been feuding over the matter with the latter and Taipan Merit in favour of the tie-up with Vale.
But the problem with Taipan Merit has some impact on the Vale matter. Now, as the transhipment services agreement with Vale had lapsed on Oct 19, we're just going to step back, Harun said.
All the noise for the Vale contract has no merit as it has problems to reflect stable financial return. Also, we do not want to be investing RM250mil to RM300mil while the relationship with our partner is on the rocks.
Harun added that the Vale contract required high capital expenditure where the minimum annual throughput from the project would not generate enough income to meet Integrax's minimum project hurdle rate of return.
It will result in asset yield destruction, he said.
The port signed an agreement with Vale on Dec 29, 2009 which allowed Integrax to expand existing facilities at the Lekir Bulk Terminal (LBT), one of two terminals in which Integrax has stakes in, to comply with the LBT's requirements over a 10-year period.
Meanwhile, Vale bought 166ha for almost RM102mil in cash from KYM Holdings Bhd and its 54%-owned subsidiary, Harta Makmur Sdn Bhd, in early January with an option to acquire an additional 306ha for RM93.8mil in cash.
Going forward, Harun said Integrax would be tapping into Indonesia's booming economy to expand its port operations. Integrax holds a 70% stake in PT Indoexchange Tbk, a public-listed Indonesian company.
Indonesia's vast economic potential is hampered by poor infrastructure, including ports. And supported by hastening of de-regulation process in the port industry, Integrax is ready to fill this gap and has committed to the state-owned enterprise to undertake the operations and management of an established port in Sumatra, amongst other potential projects there.
It is estimated that the expansion plan in Indonesia will cost about US$150mil, he said.
As for LMT and LBT, Harun said negotiations were under way to deal with additional coal-handling needs which would serve the expansion of Tenaga Nasional Bhd's Janamanjung power plant at LBT.
Meanwhile, Perak Corp, in a filing with Bursa Malaysia yesterday, said Taipan Merit had, on Nov 26, acquired 20 million ordinary shares of RM1 each in Integrax, representing 6.65% of the issued and paid-up capital of Integrax, for about RM30.05mil cash.
In a separate filing, Integrax said PT Indoexchange had announced to Bursa Efek Indonesia and had made the obligatory disclosure that it had received a notice of termination of share-sale agreement dated June 13, 2008 from one of three vendors of shares in PT Alkatara.
PT Indoexchange is taking the necessary legal actions against the vendors.
http://biz.thestar.com.my/news/story.asp?file=/2010/11/30/business/7522289&sec=business
Higher Q3 profit for Boustead
Boustead Holdings Bhd's (2771) said net profit improved to RM125 million in the third quarter to September this year compared with RM109 million a year ago.
For the nine-month period, it said net profit reached RM390 million, against RM239 millon in the same period last year.
Revenue for the period was also higher at RM4.5 billion compared with RM3.9 billion previously.
Boustead has again declared a single-tier dividend of 12 sen per share, bringing total dividend to date for the financial year to 27 sen.
This represents a 106 per cent rise in net dividend declared compared with the first nine months of financial year 2009.
Earnings per share (EPS) for the period was 35.2 sen and net asset per share was RM4.35 ( December 31 2009: RM4.20).
"Looking ahead, all the elements are in place for another year of growth for the group as we have already realised some of our strategies in delivering our earnings track record. Coupled with this fact, with crude palm oil prices performing very well, we expect our plantation division to be a driving force in delivering enhanced profitability to the group's bottom line," deputy chairman and group managing director Tan Sri Lodin Wok Kamaruddin said in a statement yesterday.
For the nine-month period, the plantation division contributed significantly, delivering a profit of RM132 million against RM51 million in 2009.
The finance & investment division achieved strong results, delivering a profit of RM120 million compared with RM30 million previously.
The trading division's profit totalling RM45 million was a twofold rise over last year's RM22 million.
Its manufacturing and services division closed the nine-month period with a profit of RM29 million, representing a 45 per cent improvement while the group's heavy industries division recorded a profit of RM99 million, lower than last year's profit of RM113 million.
Boustead said its property division's profit of RM49 million for the period was 17 per cent lower than last year, mainly due to the drop in contribution from property development activities.
Read more: Higher Q3 profit for Boustead http://www.btimes.com.my/Current_News/BTIMES/articles/bostido/Article/index_html#ixzz16ihb0Za1
For the nine-month period, it said net profit reached RM390 million, against RM239 millon in the same period last year.
Revenue for the period was also higher at RM4.5 billion compared with RM3.9 billion previously.
Boustead has again declared a single-tier dividend of 12 sen per share, bringing total dividend to date for the financial year to 27 sen.
This represents a 106 per cent rise in net dividend declared compared with the first nine months of financial year 2009.
Earnings per share (EPS) for the period was 35.2 sen and net asset per share was RM4.35 ( December 31 2009: RM4.20).
"Looking ahead, all the elements are in place for another year of growth for the group as we have already realised some of our strategies in delivering our earnings track record. Coupled with this fact, with crude palm oil prices performing very well, we expect our plantation division to be a driving force in delivering enhanced profitability to the group's bottom line," deputy chairman and group managing director Tan Sri Lodin Wok Kamaruddin said in a statement yesterday.
For the nine-month period, the plantation division contributed significantly, delivering a profit of RM132 million against RM51 million in 2009.
The finance & investment division achieved strong results, delivering a profit of RM120 million compared with RM30 million previously.
The trading division's profit totalling RM45 million was a twofold rise over last year's RM22 million.
Its manufacturing and services division closed the nine-month period with a profit of RM29 million, representing a 45 per cent improvement while the group's heavy industries division recorded a profit of RM99 million, lower than last year's profit of RM113 million.
Boustead said its property division's profit of RM49 million for the period was 17 per cent lower than last year, mainly due to the drop in contribution from property development activities.
Read more: Higher Q3 profit for Boustead http://www.btimes.com.my/Current_News/BTIMES/articles/bostido/Article/index_html#ixzz16ihb0Za1
Perak Corp acquires 6.65pc stake in Integrax
PROPERTY group Perak Corp Bhd (PCB) has bought a 6.65 per cent stake in port operator Integrax Bhd for RM30.05 million.
The purchase was to provide a dividend stream for it, Perak Corp said in a filing yesterday.
The company also said that under the directive of Bursa Malaysia, it was negotiating with one of its related parties, Kuda Sejati Sdn Bhd, to transfer 25 million Integrax shares it held as part of its debt settlement to the latter.
Read more: Perak Corp acquires 6.65pc stake in Integrax http://www.btimes.com.my/Current_News/BTIMES/articles/20101130003513/Article/index_html#ixzz16ih0gQz6
The purchase was to provide a dividend stream for it, Perak Corp said in a filing yesterday.
The company also said that under the directive of Bursa Malaysia, it was negotiating with one of its related parties, Kuda Sejati Sdn Bhd, to transfer 25 million Integrax shares it held as part of its debt settlement to the latter.
Read more: Perak Corp acquires 6.65pc stake in Integrax http://www.btimes.com.my/Current_News/BTIMES/articles/20101130003513/Article/index_html#ixzz16ih0gQz6
Property lessons from the UK’s busted boom
Property lessons from the UK’s busted boom
http://www.brisbanetimes.com.au/business/property-lessons-from-the-uks-busted-boom-20101129-18dju.html
Greg Hoffman
November 29, 2010 - 3:08PMIn the UK after a breathtaking boom, property owners have watched prices fall 10 per cent since the third quarter of 2007. Those less fortunate have experienced declines of 20 per cent or more (especially in the north).
Swingeing government budget cuts are yet to hit an economy already lacking confidence and there’s no shortage of fear-inspiring newspaper articles. Gloomy times indeed.
“North may never escape negative equity,” shouted one headline in The Times earlier this month. The paper cited a study by Standard and Poor’s that showed, “One in ten homeowners in the North West is in negative equity, trapped in properties worth less than the amount they owe and vulnerable to repossession as the public sector sheds jobs.”
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But what really caught my eye, particularly in light of my April column, Property valued properly, was the following (italics are mine):
“Savills, the estate agency, argues that in a new era where mortgage finance remains perhaps permanently constrained, some low-grade properties in the North may never recover, whatever the direction of prices elsewhere. Such dwellings may be valued only on the rental income they offer to landlords, as the would-be owner-occupiers of such homes will be denied finance.”
The notion that properties may be valued “only on the rental income they offer” is presented as something of a revelation. To me, this is indicative of an asset class where prices have (or had) broken free of economic reality. Now they are returning to it.
At universities all over the world, finance students are taught that the value of any asset is the stream of future income it will provide, discounted back into today’s dollars. Most professional sharemarket and bond investors would concur with this rule.
Even industrial and commercial property investors recognise that the income stream is of supreme importance. But when it comes to residential property, the same rules seem not to apply.
Without rehashing the arguments for and against Australian residential property being an exception to the laws of finance, to me the UK provides an interesting case study. Three and a half years ago, many Britons were as adamant as Australians are today that “property never falls”.
On a recent trip I was assured that “property in the south-eastnever falls” (my italics); an illustration of how hard it is to escape from dogma once it becomes entrenched in people’s minds.
The Australian property price debate is divisive and emotionally-charged but, whatever your view, it’s foolhardy not to acknowledge the possibility that capital gains may not always be counted on to bridge the gap between the rental income (or rent saved) and a fair return on your capital.
In many cases, those who bought during the UK boom, accepting low yields in the hope of future capital growth, are now living with the consequences of “negative gearing” and nasty capital losses. It’s not a pleasant combination.
My advice is not necessarily to avoid the property market altogether but to ensure that any debt you take on (as an owner-occupier or investor) can be easily serviced should economic conditions deteriorate. As my old scoutmaster used to say, it’s best to “be prepared”.
This article contains general investment advice only (under AFSL 282288).
Greg Hoffman is research director of The Intelligent Investor.
For more Intelligent Investor articlesclick here.
For more Intelligent Investor articlesclick here.
http://www.brisbanetimes.com.au/business/property-lessons-from-the-uks-busted-boom-20101129-18dju.html
Most buyers now were speculators hoping to make a profit from rising property prices.
Published: Monday November 29, 2010 MYT 5:07:00 PM
Dr M: M’sia has no need for 100-storey Warisan Merdeka
By SHAUN HO
KUALA LUMPUR: Malaysia has no need for the 100-storey Warisan Merdeka yet, said former Prime Minister Tun Dr Mahathir Mohammad.
“I see signs everywhere saying ‘For Sale’ or ‘For Rent’ and in quite a few places. This means we have a surplus of office space,” he said when addressing a full house at a lecture titled “Revisiting Vision 2020” Monday.
“I must admit I am biased... And I would like to retain it (Petronas Twin Towers) as the tallest building in Malaysia.
“We should build it (Warisan Merdeka) a little bit later. Maybe, when I’m not around,” he added in jest.
He also said Malaysia could suffer property glut from overzealous development and cautioned against following in the footsteps of Dubai, Hong Kong and Japan that suffered from a credit crisis due to overbuilding.
He said construction should be thought out properly because most buyers now were speculators hoping to make a profit from rising property prices.
“There could come a time when you cannot pay back the bank and cannot sell. I’m not sure whether we are going to reach there or not, but maybe, we are quite near there,” he said.
http://thestar.com.my/news/story.asp?file=/2010/11/29/nation/20101129171610&sec=nation
Dr M: M’sia has no need for 100-storey Warisan Merdeka
By SHAUN HO
KUALA LUMPUR: Malaysia has no need for the 100-storey Warisan Merdeka yet, said former Prime Minister Tun Dr Mahathir Mohammad.
“I see signs everywhere saying ‘For Sale’ or ‘For Rent’ and in quite a few places. This means we have a surplus of office space,” he said when addressing a full house at a lecture titled “Revisiting Vision 2020” Monday.
“I must admit I am biased... And I would like to retain it (Petronas Twin Towers) as the tallest building in Malaysia.
“We should build it (Warisan Merdeka) a little bit later. Maybe, when I’m not around,” he added in jest.
He also said Malaysia could suffer property glut from overzealous development and cautioned against following in the footsteps of Dubai, Hong Kong and Japan that suffered from a credit crisis due to overbuilding.
He said construction should be thought out properly because most buyers now were speculators hoping to make a profit from rising property prices.
“There could come a time when you cannot pay back the bank and cannot sell. I’m not sure whether we are going to reach there or not, but maybe, we are quite near there,” he said.
http://thestar.com.my/news/story.asp?file=/2010/11/29/nation/20101129171610&sec=nation
Forget the dollar and gold, here are the real safe havens
Forget the dollar and gold, here are the real safe havens
Contemplating eurozone disintegration, renewed hostilities in Korea and an anti-inflationary clampdown in China, investors' default reaction has been a time-honoured retreat into the perceived safe havens of the dollar, Treasuries and gold. I'm not sure this makes much sense.
Photo: AFP
Increasing exposure to the liabilities and currency of a debt-burdened economy flirting with deflation and a metal with little utility and less yield seems like an odd response to extreme market stress. Faced with the probability of heightened volatility, I would rather protect myself with the factor that all real investments have in common – a reliable income.
Over the long haul, the most important element of an investor's total return is the re-investment of this income. Capital appreciation comes and goes but the steady compounding of dividends, coupons and rental income is what really makes the difference. Arguably it is the difference between real investment and speculation.
One of the curiosities of today's markets is the fact that despite interest rates being at historic lows in many countries, there is no shortage of income if you know where to look for it. I've found it in three places – one you'll most likely be familiar with, one you probably gave up on a few years ago and one you may have never considered.
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23 Oct 2010
The familiar source of income is right under the noses of investors in the UK and right across Europe – the shares of blue-chip companies. I recently compared the dividend yields of some of the biggest, most reliable companies and was surprised to see that their shares currently offer investors an income of 2pc, 3pc, even 5pc more than the 10-year bonds of their own governments.
What do Telefonica, National Grid, Total, GlaxoSmithkline and telecommunications company KPN all have in common? They all yield considerably more than the medium-term debt of their respective governments. In each case the gap between the two income streams is wider than the average over the past three years, too. There has never been a better time to invest in high-yielding equities.
This matters for two reasons. First, because in a low interest rate environment many investors are desperately searching for income. If a big, reliable company, often running a utility or quasi-utility in a safe democracy, will pay you such a decent income it seems churlish to turn your back on it these days.
Second, there is plenty of evidence that investing in high-yielding stocks is a proven way to secure better capital performance, too. All around the world, the top fifth of high dividend payers has been shown to out-perform the market as a whole.
Another high-yielding area of the market is one that you may have been rather over-exposed to as the financial crisis hit in 2007 and consequently may have not given much thought to since – commercial property.
During the real estate boom in the middle of the decade, rising property prices pushed yields lower and lower until they offered an income worth just 0.8pc more on average in Europe than those government securities. When you consider that back then people had faith in governments repaying their debts, that was a minuscule premium to compensate for the higher risk of default. Today, investors earn on average 3.8pc more than on a government bond, a higher spread than at any point in the past 10 years.
As with high-yielding equities, the search for income is likely to see more and more capital chasing these higher returns, which should in turn underpin the prices of the best assets. Like equities, too, commercial property offers investors a degree of protection against inflation. Three of the four property bull markets since the Second World War have been driven by inflation and only the most recent one by credit expansion.
A third area in which investors might reasonably look for income is one which a comparison of risk and historic return suggests might be the most interesting of all – emerging market government debt. A better performer in capital terms since 1993 than any of US equities, emerging market equities, commodities and property, emerging market debt continues to offer a big income advantage over perceived havens like US Treasuries.
When you consider that emerging market growth is set to outstrip developed markets for years to come, that the last significant default in this area was Argentina in 2001 and that many so-called developed government bonds look like they are heading for junk status, the argument against emerging market debt gets harder and harder to make.
Perhaps equity income, commercial property and emerging market debt will turn out to be the real safe havens.
Tom Stevenson is an investment director at Fidelity Investment Managers. The views expressed are his own.
Monday 29 November 2010
Dutch Lady Milk Industries Berhad
Date announced 29/11/2010
Quarter 30/9/2010 Qtr 3 FYE 31/12/2010
STOCK DLADY C0DE 3026
Price $ 17.9 Curr. PE (ttm-Eps) 16.58 Curr. DY 3.67%
LFY Div 65.63 DPO ratio 70%
ROE 33.0% PBT Margin 10.9% PAT Margin 7.1%
Rec. qRev 186715 q-q % chg -1% y-y% chq 5%
Rec qPbt 20332 q-q % chg -20% y-y% chq -25%
Rec. qEps 20.82 q-q % chg -30% y-y% chq -34%
ttm-Eps 107.98 q-q % chg -9% y-y% chq 19%
Using VERY CONSERVATIVE ESTIMATES:
EPS GR 5% Avg.H PE 16.00 Avg. L PE 14.00
Forecast High Pr 22.05 Forecast Low Pr 11.86 Recent Severe Low Pr 11.86
Current price is at Middle 1/3 of valuation zone.
RISK: Upside 41% Downside 59%
One Year Appreciation Potential 5% Avg. yield 5%
Avg. Total Annual Potential Return (over next 5 years) 10%
CPE/SPE 1.11 P/NTA 5.47 NTA 3.27 SPE 15.00 Rational Pr 16.20
Decision:
Already Owned: Buy Hold Sell Filed Review (future acq): Filed Discard: Filed
Guide: Valuation zones Lower 1/3 Buy Mid. 1/3 Maybe Upper 1/3 Sell
Aim:
To Buy a bargain: Buy at Lower 1/3 of Valuation Zone
To Minimise risk of Loss: Buy when risk is low i.e UPSIDE GAIN > 75% OR DOWNSIDE RISK <25%
To Double every 5 years: Seek for POTENTIAL RETURN of > 15%/yr.
To Prevent Loss: Sell immediately when fundamentals deteriorate
To Maximise Gain & Reduce Loss: Sell when CPE/SPE > 1.5, when in Upper 1/3 of Valuation Zone & Returns < 15%/yr
Stock Data: Recent Stock Performance:
Current Price (11/19/2010): 17.88
(Figures in Malaysian Ringgits)
1 Week 0.7% 13 Weeks -1.4%
4 Weeks 22.1% 52 Weeks 54.1%
Dutch Lady Milk Industries Berhad Key Data:
Ticker: DBMS Country: MALAYSIA
Exchanges: KUL Major Industry: Food & Beverages
Sub Industry: Dairy Products
2009 Sales 691,847,000
(Year Ending Jan 2010).
Employees: 570
Currency: Malaysian Ringgits Market Cap: 1,144,320,000
Fiscal Yr Ends: December Shares Outstanding: 64,000,000
Share Type: Ordinary Closely Held Shares: 46,418,300
Day's Range: 17.60 - 17.90
52wk Range: 11.30 - 20.10
Volume: 3,600
Padini
Date announced 29/11/2010
Quarter 30/09/2010 Qtr 1 FYE 30/06/2011
STOCK PADINI C0DE 7052
Price $ 4.98 Curr. ttm-PE 11.12 Curr. DY 4.52%
LFY Div 22.50 DPO ratio 49%
ROE 23.3% PBT Margin 18.8% PAT Margin 13.4%
Rec. qRev 136641 q-q % chg 19% y-y% chq -3%
Rec qPbt 25651 q-q % chg 38% y-y% chq -5%
Rec. qEps 13.95 q-q % chg 56% y-y% chq -9%
ttm-Eps 44.79 q-q % chg -3% y-y% chq 64%
Using VERY CONSERVATIVE ESTIMATES:
EPS GR 5% Avg.H PE 9.00 Avg. L PE 7.00
Forecast High Pr 5.14 Forecast Low Pr 3.73 Recent Severe Low Pr 3.73
Current price is at Upper 1/3 of valuation zone.
RISK: Upside 12% Downside 88%
One Year Appreciation Potential 1% Avg. yield 6%
Avg. Total Annual Potential Return (over next 5 years) 6%
CPE/SPE 1.39 P/NTA 2.59 NTA 1.92 SPE 8.00 Rational Pr 3.58
Decision:
Already Owned: Buy, Hold, Sell, Filed; Review (future acq): Filed; Discard: Filed.
Guide: Valuation zones - Lower 1/3 Buy; Mid. 1/3 Maybe; Upper 1/3 Sell.
Aim:
To Buy a bargain: Buy at Lower 1/3 of Valuation Zone
To Minimise risk of Loss: Buy when risk is low i.e UPSIDE GAIN > 75% OR DOWNSIDE RISK <25%
To Double every 5 years: Seek for POTENTIAL RETURN of > 15%/yr.
To Prevent Loss: Sell immediately when fundamentals deteriorate
To Maximise Gain & Reduce Loss: Sell when CPE/SPE > 1.5, when in Upper 1/3 of Valuation Zone & Returns < 15%/yr
Stock Data: Recent Stock Performance:
Current Price (11/19/2010): 5.32
(Figures in Malaysian Ringgits)
1 Week -1.1% 13 Weeks 11.3%
4 Weeks 31.7% 52 Weeks 72.7%
Padini Holdings Berhad Key Data:
Ticker: PADINI Country: MALAYSIA
Exchanges: KUL Major Industry: Apparel & Textiles
Sub Industry: Apparel Manufacturers
2010 Sales 520,880,000
(Year Ending Jan 2011).
Employees: 1,762
Currency: Malaysian Ringgits Market Cap: 700,016,240
Fiscal Yr Ends: June Shares Outstanding: 131,582,000
Share Type: Ordinary Closely Held Shares: 59,124,294
Day's Range: 4.97 - 5.00
52wk Range: 3.03 - 5.52
Volume: 6,000
Boustead Holdings Berhad
Date announced 29/11/2010
Quarter 30/09/2010 Qtr 3 FYE 31/12/2010
STOCK BSTEAD C0DE 2771
Price $ 5.25 Curr. PE (ttm-Eps) 10.21 Curr. DY 2.79%
LFY Div 14.64 DPO ratio 36%
ROE 11.8% PBT Margin 10.2% PAT Margin 6.1%
Rec. qRev 1513900 q-q % chg 6% y-y% chq 7%
Rec qPbt 153700 q-q % chg -17% y-y% chq 22%
Rec. qEps 9.77 q-q % chg -38% y-y% chq -21%
ttm-Eps 51.40 q-q % chg -5% y-y% chq 41%
Using VERY CONSERVATIVE ESTIMATES:
EPS GR 5% Avg.H PE 9.00 Avg. L PE 6.00
Forecast High Pr 5.90 Forecast Low Pr 3.39 Recent Severe Low Pr 3.39
Current price is at Upper 1/3 of valuation zone.
RISK: Upside 26% Downside 74%
One Year Appreciation Potential 2% Avg. yield 5%
Avg. Total Annual Potential Return (over next 5 years) 7%
CPE/SPE 1.36 P/NTA 1.21 NTA 4.35 SPE 7.50 Rational Pr 3.86
Decision:
Already Owned: Buy Hold Sell Filed Review (future acq): Filed Discard: Filed
Guide: Valuation zones Lower 1/3 Buy Mid. 1/3 Maybe Upper 1/3 Sell
Aim:
To Buy a bargain: Buy at Lower 1/3 of Valuation Zone
To Minimise risk of Loss: Buy when risk is low i.e UPSIDE GAIN > 75% OR DOWNSIDE RISK <25%
To Double every 5 years: Seek for POTENTIAL RETURN of > 15%/yr.
To Prevent Loss: Sell immediately when fundamentals deteriorate
To Maximise Gain & Reduce Loss: Sell when CPE/SPE > 1.5, when in Upper 1/3 of Valuation Zone & Returns < 15%/yr
Stock Data: Recent Stock Performance:
Current Price (11/19/2010): 5.53
(Figures in Malaysian Ringgits)
1 Week -1.1% 13 Weeks -2.3%
4 Weeks 26.5% 52 Weeks 62.6%
Boustead Holdings Berhad Key Data:
Ticker: BOUS Country: MALAYSIA
Exchanges: KUL Major Industry: Diversified
Sub Industry: General Diversified
2009 Sales 5,392,000,000
(Year Ending Jan 2010).
Employees: 8,022
Currency: Malaysian Ringgits Market Cap: 5,199,095,860
Fiscal Yr Ends: December Shares Outstanding: 940,162,000
Share Type: Ordinary Closely Held Shares: 568,935,789
Day's Range: 5.20 - 5.28
52wk Range: 3.26 - 6.05
Volume: 878,800
Avg Vol (3m): 1,043,570
Note: Boustead declared interim dividends for each quarter of this financial year.
Q1 2010 5 sen
Q2 2010 10 sen
Q3 2010 12 sen
We hear you! The national agenda should be based on needs not on race.
Azmin attacks Najib, rejects Malay supremacy
By Asrul Hadi Abdullah Sani November 28, 2010
PETALING JAYA, Nov 28 — Newly elected PKR deputy president Azmin Ali questioned the legitimacy of Datuk Seri Najib Razak leadership as prime minister today, and proclaimed his party’s rejection of Umno’s Malay supremacist position.
Taking an aggressive stand in his new role as a senior leader in his party, Azmin pointed out that Najib did not have a mandate from the public or from Umno members.
Azmin (picture) said that Najib was never elected as Prime Minister and said the prime minister is yet to be tested in an Umno election.
“We should not forget that Najib never stood for election. Utusan listen to this, Najib never stood for election. He was appointed by Dr Mahathir as the deputy prime minister. They then threw Abdullah Badawi out. He became prime minister because he was appointed and not elected. This is because he is not brave to face his own party members,” he said during his winding-up speech at the party’s national convention here.
He said unlike PKR where each member has one vote, the Umno leadership only received their mandate from 0.07 per cent out of the 3.4 million party members.
He also ridiculed Najib’s 1 Malaysia, accusing Umno and Barisan Nasional (BN) of continuing to condone racist policies in its administration.
“If we want our country and people to march forward then we must ensure the end of racist policies brought by Umno and BN. The national agenda should be based on needs not on race. This is very important.
“We must not be defensive when we want to reject the concept of Malay supremacy. Even though the media have relentlessly attacked us that we are traitors because we want to reject Malay supremacy but I want to proclaim today that we will reject Malay supremacy. We will carry people power to become the basis of the party’s struggle,” he said.
Azmin said party members have the conviction to topple BN and capture Putrajaya.
“We must safeguard our sense of conviction. We are confident not because we are paid. We are confident not because we will get senatorship. But we are confident because if we do not act now then all the systems in this country under Barisan Nasional will worsen,” he said.
He added that public welfare should be measured not by race but by needs.
“The Indian community is poor in the estate, Malay community is poor in the villages and the Chinese are also poor in towns. This is the responsibility of PKR to help all races including Bumiputera Sabah and Sarawak,” he said.
Azmin said that he is not apologetic with his stance because it is the public that will decide the future of the country and party.
“I am not apologetic and is not worried with attacks by Utusan Malaysia because those that determine the future of the country and our party is not Utusan Malaysia and TV3 but the Malaysian people of different races,” he said.
Azmin denied that PKR consists of traitors and was anti-Malay because it wants to abolish Malay supremacist policies.
“We want to help the Malays but only Malays with dignity but not Malays that practices rent seeking, nepotism like Umno and Barisan Nasional,” he said.
“If we ask Umno leaders who do they think are the real Malay patriots? What will be their answer? Rosmah Mansor,” he said.
Azmin was officially announced today as PKR’s deputy president after defeating his only contender, Mustaffa Kamil Ayub, with 19,543 votes.
The third contender, Datuk Zaid Ibrahim, withdrew from the deputy presidential contest after claiming fraud in the party’s first direct election.
Zaid also quit PKR and claimed the party had failed to uphold democratic principles.
http://www.themalaysianinsider.com/malaysia/article/azmin-attacks-najib-rejects-malay-supremacy/
By Asrul Hadi Abdullah Sani November 28, 2010
PETALING JAYA, Nov 28 — Newly elected PKR deputy president Azmin Ali questioned the legitimacy of Datuk Seri Najib Razak leadership as prime minister today, and proclaimed his party’s rejection of Umno’s Malay supremacist position.
Taking an aggressive stand in his new role as a senior leader in his party, Azmin pointed out that Najib did not have a mandate from the public or from Umno members.
Azmin (picture) said that Najib was never elected as Prime Minister and said the prime minister is yet to be tested in an Umno election.
“We should not forget that Najib never stood for election. Utusan listen to this, Najib never stood for election. He was appointed by Dr Mahathir as the deputy prime minister. They then threw Abdullah Badawi out. He became prime minister because he was appointed and not elected. This is because he is not brave to face his own party members,” he said during his winding-up speech at the party’s national convention here.
He said unlike PKR where each member has one vote, the Umno leadership only received their mandate from 0.07 per cent out of the 3.4 million party members.
He also ridiculed Najib’s 1 Malaysia, accusing Umno and Barisan Nasional (BN) of continuing to condone racist policies in its administration.
“If we want our country and people to march forward then we must ensure the end of racist policies brought by Umno and BN. The national agenda should be based on needs not on race. This is very important.
“We must not be defensive when we want to reject the concept of Malay supremacy. Even though the media have relentlessly attacked us that we are traitors because we want to reject Malay supremacy but I want to proclaim today that we will reject Malay supremacy. We will carry people power to become the basis of the party’s struggle,” he said.
Azmin said party members have the conviction to topple BN and capture Putrajaya.
“We must safeguard our sense of conviction. We are confident not because we are paid. We are confident not because we will get senatorship. But we are confident because if we do not act now then all the systems in this country under Barisan Nasional will worsen,” he said.
He added that public welfare should be measured not by race but by needs.
“The Indian community is poor in the estate, Malay community is poor in the villages and the Chinese are also poor in towns. This is the responsibility of PKR to help all races including Bumiputera Sabah and Sarawak,” he said.
Azmin said that he is not apologetic with his stance because it is the public that will decide the future of the country and party.
“I am not apologetic and is not worried with attacks by Utusan Malaysia because those that determine the future of the country and our party is not Utusan Malaysia and TV3 but the Malaysian people of different races,” he said.
Azmin denied that PKR consists of traitors and was anti-Malay because it wants to abolish Malay supremacist policies.
“We want to help the Malays but only Malays with dignity but not Malays that practices rent seeking, nepotism like Umno and Barisan Nasional,” he said.
“If we ask Umno leaders who do they think are the real Malay patriots? What will be their answer? Rosmah Mansor,” he said.
Azmin was officially announced today as PKR’s deputy president after defeating his only contender, Mustaffa Kamil Ayub, with 19,543 votes.
The third contender, Datuk Zaid Ibrahim, withdrew from the deputy presidential contest after claiming fraud in the party’s first direct election.
Zaid also quit PKR and claimed the party had failed to uphold democratic principles.
http://www.themalaysianinsider.com/malaysia/article/azmin-attacks-najib-rejects-malay-supremacy/
What type of Malay supremacy is this? We should instead abolish the question of ethnicity and solve the problem of poverty.
Umno is scared of us, says Anwar
By Asrul Hadi Abdullah Sani November 28, 2010
PETALING JAYA, Nov 28 — Datuk Seri Anwar Ibrahim claimed today that Umno was willing to do anything to ensure the failure of PKR as the ruling Malay political party feared his party’s growing popularity.
The PKR de facto leader said the success of today’s PKR national congress showed that Umno had failed in its relentless attacks against the party for the past 12 years.
“This is their biggest disappointment because our congress has been a big success and those attending are from more than 95 percent of the party branches.
“Umno is now not confident. During the parliamentary debates, they do not deny that they are corrupt but instead say that Pakatan Rakyat is corrupt as well. They do not have the high moral ground to defend good governance in Umno and Barisan Nasional. It is gone. That is why we must be patient,” he said during his winding-up speech at the party’s national congress here.
He said that party members must be confident and not let recent defections be a setback for PKR.
“We must be confident and consistent in all of our actions. We didn’t win 2008 because our candidate quality was not good. When we were confident that we will win Putrajaya, they supported us. But when we failed, they jumped. It shows that they only wanted contracts. That is why it is good that they jumped so we can cleanse our party,” he said.
“This is a tragedy for the Malays talking about championing the rights of Malays while the majority of the Malays live in abject poverty and continues to be marginalized but it is equally shameful for those non-Malays who choose to defend the injustice and racism of the Malay clique in Umno,” he said.
He pointed out that 96.7 per cent of the population living under the poverty line are Malays.
“What type of Malay supremacy is this? We should instead abolish the question of ethnicity and solve the problem of poverty. Those that will benefit are of course the poor; the Malays and Bumiputera in the villages, Indians in the estates and Chinese in towns. That is what we should focus on,” he said.
However, Anwar admitted that there are still weaknesses in the party.
“What is the point of becoming a reformist party if we are not looking to improve ourselves. This can be the agenda of the future and not only slogan or rhetoric. Are we perfect? No, but we are able to defend the party’s integrity,” he said.
He also acknowledged that there were no representative from Sarawak and only two from Sabah in the party leadership but he promised to rectify the situation.
http://www.themalaysianinsider.com/malaysia/article/umno-is-scared-of-us-says-anwar/
By Asrul Hadi Abdullah Sani November 28, 2010
PETALING JAYA, Nov 28 — Datuk Seri Anwar Ibrahim claimed today that Umno was willing to do anything to ensure the failure of PKR as the ruling Malay political party feared his party’s growing popularity.
The PKR de facto leader said the success of today’s PKR national congress showed that Umno had failed in its relentless attacks against the party for the past 12 years.
“This is their biggest disappointment because our congress has been a big success and those attending are from more than 95 percent of the party branches.
“Umno is now not confident. During the parliamentary debates, they do not deny that they are corrupt but instead say that Pakatan Rakyat is corrupt as well. They do not have the high moral ground to defend good governance in Umno and Barisan Nasional. It is gone. That is why we must be patient,” he said during his winding-up speech at the party’s national congress here.
He said that party members must be confident and not let recent defections be a setback for PKR.
“We must be confident and consistent in all of our actions. We didn’t win 2008 because our candidate quality was not good. When we were confident that we will win Putrajaya, they supported us. But when we failed, they jumped. It shows that they only wanted contracts. That is why it is good that they jumped so we can cleanse our party,” he said.
“This is a tragedy for the Malays talking about championing the rights of Malays while the majority of the Malays live in abject poverty and continues to be marginalized but it is equally shameful for those non-Malays who choose to defend the injustice and racism of the Malay clique in Umno,” he said.
He pointed out that 96.7 per cent of the population living under the poverty line are Malays.
“What type of Malay supremacy is this? We should instead abolish the question of ethnicity and solve the problem of poverty. Those that will benefit are of course the poor; the Malays and Bumiputera in the villages, Indians in the estates and Chinese in towns. That is what we should focus on,” he said.
However, Anwar admitted that there are still weaknesses in the party.
“What is the point of becoming a reformist party if we are not looking to improve ourselves. This can be the agenda of the future and not only slogan or rhetoric. Are we perfect? No, but we are able to defend the party’s integrity,” he said.
He also acknowledged that there were no representative from Sarawak and only two from Sabah in the party leadership but he promised to rectify the situation.
http://www.themalaysianinsider.com/malaysia/article/umno-is-scared-of-us-says-anwar/
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