Real returns with smart investment strategies
Posted on November 27, 2010, Saturday
SEE your nest egg flourish with smart investing. It’s all about how much you invest and how often.
Successful investing is not about taking big risks, but more about being able to balance risk and return by investing in a meaningful portfolio.
Use investment strategies that do work: a balanced allocation of your portfolio’s assets among securities that suit your individual needs, the use of Cost Averaging (CA) to lower the cost of overall investments and dividend reinvestment programmes, and a well disciplined, long haul approach to investing.
Most important factor you have in reaching your goals is time. The more time you have, the more chance you have of success. If you’re thinking of embarking on an investment strategy like CA, know your facts first.
For example, CA involves the regular purchase of units in a managed fund or shares over a period of time. It can be done automatically via an investment plan and you may reduce the risk associated with market fluctuations while giving your portfolio the best chance of long term profitability.
Here are options for you to choose from when it comes to investing in your future:
1.Direct investing
You invest directly in the share market, property or real estate investment trusts (REITs). The downside is that it generally requires market knowledge, plus regular monitoring of market trends, tax and legal changes. Many working adults don’t have access to the right market information or expertise to do direct investing well.
2.Buying bonds
The general principle of bond investing is that when you buy a bond, you are lending your money for a certain period of time to the issuer, be it a listed company or not. It’s a good choice for investors who require fixed horizon and steady income.
However, investing in bonds are usually for the high- net-worth and institutional investors as bonds are usually offered at a high entry cost, in hundreds of thousands or millions of ringgit.
Additionally, investors are advised to pay attention to total return, not just yield as bond prices fall when interest rates rise. An option for the retail investors to access the asset class will be to invest in unit trust bond fund due to its low entry cost and diverse holdings which allows for diversification.
3.Stocks/equities
Historically the best, but most volatile way to grow your money is through the stock market. On a short-term basis, stock prices fluctuate based on everything from interest rates to investor sentiment, to the weather. But on a long term basis, you could potentially make (or lose) a lot of your money in stock market. Bear in mind that risk and return come hand-in-hand.
4.Managed funds
If you only have a small sum to invest, a good option is to put your money in a managed or unit trust fund. These are funds which pool the investments from a number of investors, enable you to access markets and assets that may be expensive or difficult to buy directly into, such as the China’s restrictive A-share market, emerging markets and even the fixed income space such as government bonds.
Additionally, unit trust funds are a good alternative to buying individual stocks, where in exchange for a small fee you will have the advantage of participating in several stocks within a fund. What happens is that the fund manager trades the fund’s underlying securities, realising capital gains or losses, and collects the dividend or interest income. The proceeds are then passed along to the individual investors. Most funds require only moderate investments, ranging from a few hundred to a few thousand Ringgit.
This article is brought to you by HwangDBS Investment Management, your Asian Financial Specialists. Log on to www.hdbsim.com.my or call 1-800-88-7080 to find out how you can cost average your investment via the HwangDBS Smart Save Plan.
http://www.theborneopost.com/?p=77325
Tuesday, 7 December 2010
Cocoaland’s new product line to be postponed
Cocoaland’s new product line to be postponed
Posted on November 23, 2010, Tuesday
KUCHING: Candymaker, Cocoaland Holdings Bhd (Cocoaland) postponed its proposed Cocopie and Gummy line of products as it was still scouring for a new plant to accommodate the additional lines.
In its research report, TA Securities Holdings Bhd (TA Securities) said the lines were expected to be completed and up-and-running in a year’s time.
On another note, Cocoaland was still in the trial-testing stage for original equipment manufacturers (OEMs) with big multinational corporations (MNCs) and thus, none would be reflected in its earnings this year.
In addition, the company which had begun marketing its own brands Fruit Ten and Cha in the market had been met with mundane response.
This was probably expected, as Cocoaland’s brand name was still relatively new in the Fraser and Neave Holdings Bhd (F&N) and Yeo Hiap Seng (M) Bhd (Yeo’s) dominated market, according to the research house.
It also mentioned that product and brand recognition traditionally took two to three years, but with Cocoaland’s synergistic relationship with F&N, it might allow Cocoaland’s products a shorter time to achieve that milestone thanks to F&N’s wide distribution network.
Furthermore, the research firm also commented on the company’s skyrocketing costs. The average price of sugar had increased more than 30 per cent year-to-date, cocoa powder by more than 20 per cent, packaging by more than 10 per cent and glucose by more than 15 per cent.
This was only partially mitigated by the weaker US dollar since 40 per cent of its sales were denominated in US dollars. TA Securities stated that trends were moving towards passing the costs to the consumers in the form of increasing selling prices by five per cent to 10 per cent.
Given the current circumstances, the research house expected net profit to be less than RM10 million on the back of weak first half of the year results in addition to operating losses of its beverage plant.
It pegged Cocoaland’s target price at RM2.14 per share based on financial year 2011 price earnings ratio of 16 times.
http://www.theborneopost.com/?p=76611
Posted on November 23, 2010, Tuesday
KUCHING: Candymaker, Cocoaland Holdings Bhd (Cocoaland) postponed its proposed Cocopie and Gummy line of products as it was still scouring for a new plant to accommodate the additional lines.
In its research report, TA Securities Holdings Bhd (TA Securities) said the lines were expected to be completed and up-and-running in a year’s time.
On another note, Cocoaland was still in the trial-testing stage for original equipment manufacturers (OEMs) with big multinational corporations (MNCs) and thus, none would be reflected in its earnings this year.
In addition, the company which had begun marketing its own brands Fruit Ten and Cha in the market had been met with mundane response.
This was probably expected, as Cocoaland’s brand name was still relatively new in the Fraser and Neave Holdings Bhd (F&N) and Yeo Hiap Seng (M) Bhd (Yeo’s) dominated market, according to the research house.
It also mentioned that product and brand recognition traditionally took two to three years, but with Cocoaland’s synergistic relationship with F&N, it might allow Cocoaland’s products a shorter time to achieve that milestone thanks to F&N’s wide distribution network.
Furthermore, the research firm also commented on the company’s skyrocketing costs. The average price of sugar had increased more than 30 per cent year-to-date, cocoa powder by more than 20 per cent, packaging by more than 10 per cent and glucose by more than 15 per cent.
This was only partially mitigated by the weaker US dollar since 40 per cent of its sales were denominated in US dollars. TA Securities stated that trends were moving towards passing the costs to the consumers in the form of increasing selling prices by five per cent to 10 per cent.
Given the current circumstances, the research house expected net profit to be less than RM10 million on the back of weak first half of the year results in addition to operating losses of its beverage plant.
It pegged Cocoaland’s target price at RM2.14 per share based on financial year 2011 price earnings ratio of 16 times.
http://www.theborneopost.com/?p=76611
DISCOVER the key to long term financial success – through asset allocation.
Finding the right solution
by HWANGDBS Column. Posted on November 20, 2010, Saturday
DISCOVER the key to long term financial success – through asset allocation.
Asset allocation seeks to find the optimal investment mix while minimising your risks to help you achieve your goals. It allows you to spread your money across the asset classes – shares, bonds, Exchange Traded Funds (ETFs), commodities, property and cash to name a few, as different assets behave differently under different economic environments.
Ideally, both asset allocation and diversifying your investments should be done with meaningful returns and not for the sake of diversifying as it may dilute your returns. Portfolio rebalancing is needed, at least, on an annual basis to ensure everything is on track.
The asset allocation that works best for you at any given point in your life will depend largely on your time horizon and your ability to tolerate risk. Your goal should be to maximise your return for the amount of risk that you are comfortable accepting. To help you do that, you need a well allocated and diversified portfolio. Asset allocation can help you:
1.Ensure consistent returns over time. You’ll improve your chances of participating in market gains and potentially reduce the impact of poor performing asset categories by investing in several asset classes.
2. Reduce overall risk. Through portfolio diversification you can limit the volatility in your portfolio while improving its performance, by spreading the risk among different types of securities that don’t always behave the same.
3. Move forward towards attaining your goals. A well-allocated portfolio can reduce the need to constantly adjust investment positions in order to chase market trends.
Sorting out which works best
It’s important that your investments are allocated over a variety of asset classes as each asset class performs differently over time due to its unique balance of risk and reward. Over time and through your different life stages, the various investments in your portfolio may alter in value, due to changing market conditions.
Rebalance it regularly to effectively pursue your financial goals. This could mean realising your gains on portions of your investments or cutting your losses on others. The funds can then be used to purchase other assets in order to bring your portfolio back on track annually.
Discover your type
Which type of investor are you? Check out these categories on www.hdbsim.com.my
• The young and the restless. Managing your finances at such an early stage will allow you to reap the rewards of long-term planning, enabling you to comfortably afford things that are important to you like a new home, further education, or even a baby.
• Wonder women sexy, savvy and successful. You pride yourself on your accomplishments and there is no doubting your purchasing power. You understand that investing smartly is the key to reaching one of your ultimate goals: financial freedom.
• The family way planning and informed financial decisions requires time, effort and patience as well as access to the best investment solutions that will be the foundation for your family’s financial stability.
• Top of the hill. You are no stranger to investment risk. Your keen insight and uncanny judgment have brought you to where you are today. Isn’t it time you get everything you want?
• The golden years. Now that you are financially liberated and free of the encumbrances of your career, you can indulge in the things you love the most… but that is assuming you planned well for your retirement.
This article is brought to you by HwangDBS Investment Management
http://www.theborneopost.com/?p=76157
by HWANGDBS Column. Posted on November 20, 2010, Saturday
DISCOVER the key to long term financial success – through asset allocation.
Asset allocation seeks to find the optimal investment mix while minimising your risks to help you achieve your goals. It allows you to spread your money across the asset classes – shares, bonds, Exchange Traded Funds (ETFs), commodities, property and cash to name a few, as different assets behave differently under different economic environments.
Ideally, both asset allocation and diversifying your investments should be done with meaningful returns and not for the sake of diversifying as it may dilute your returns. Portfolio rebalancing is needed, at least, on an annual basis to ensure everything is on track.
The asset allocation that works best for you at any given point in your life will depend largely on your time horizon and your ability to tolerate risk. Your goal should be to maximise your return for the amount of risk that you are comfortable accepting. To help you do that, you need a well allocated and diversified portfolio. Asset allocation can help you:
1.Ensure consistent returns over time. You’ll improve your chances of participating in market gains and potentially reduce the impact of poor performing asset categories by investing in several asset classes.
2. Reduce overall risk. Through portfolio diversification you can limit the volatility in your portfolio while improving its performance, by spreading the risk among different types of securities that don’t always behave the same.
3. Move forward towards attaining your goals. A well-allocated portfolio can reduce the need to constantly adjust investment positions in order to chase market trends.
Sorting out which works best
It’s important that your investments are allocated over a variety of asset classes as each asset class performs differently over time due to its unique balance of risk and reward. Over time and through your different life stages, the various investments in your portfolio may alter in value, due to changing market conditions.
Rebalance it regularly to effectively pursue your financial goals. This could mean realising your gains on portions of your investments or cutting your losses on others. The funds can then be used to purchase other assets in order to bring your portfolio back on track annually.
Discover your type
Which type of investor are you? Check out these categories on www.hdbsim.com.my
• The young and the restless. Managing your finances at such an early stage will allow you to reap the rewards of long-term planning, enabling you to comfortably afford things that are important to you like a new home, further education, or even a baby.
• Wonder women sexy, savvy and successful. You pride yourself on your accomplishments and there is no doubting your purchasing power. You understand that investing smartly is the key to reaching one of your ultimate goals: financial freedom.
• The family way planning and informed financial decisions requires time, effort and patience as well as access to the best investment solutions that will be the foundation for your family’s financial stability.
• Top of the hill. You are no stranger to investment risk. Your keen insight and uncanny judgment have brought you to where you are today. Isn’t it time you get everything you want?
• The golden years. Now that you are financially liberated and free of the encumbrances of your career, you can indulge in the things you love the most… but that is assuming you planned well for your retirement.
This article is brought to you by HwangDBS Investment Management
http://www.theborneopost.com/?p=76157
Boustead assets sale a positive step forward
Boustead assets sale a positive step forward – Analysts
by Ronnie Teo ronnieteo@theborneopost.com. Posted on November 13, 2010, Saturday
KUCHING: Boustead Holdings Bhd’s (Boustead) proposed sale and leaseback agreement with Al-Hadharah Boustead Real Estate Investment Trust (AHBREIT) for its plantation assets was seen as a positive step forward by analysts.
PROFIT SHARING AGREEMENT: Ching says the variable rental payment will be based on a CPO price reference and there will be a profit-share agreement between Boustead and AHBREIT for any price of CPO sold above the reference price.
Hong Leong Investment Bank Bhd’s (HL Research) analyst noted that the proposed sale and leaseback of Sutera Estate in Sandakan and Taiping Rubber Plantation to AHBREIT was for a cash consideration of RM189.2 million.
“We view this positively due to interest savings and the reduction in gearing for Boustead,” he said.
According to ECM Libra Capital Sdn Bhd’s (ECM Libra) head analyst Bernard Ching, Boustead would profit by RM97.7 million in net gains from this venture along with an estimated interest savings of RM9.5 million for the financial year 2011 as reported by the group.
“The 3,580 hectare going into AHBREIT will still be captured by the group under its total hectarage calculation because it still gets to participate in the profits of the estates,” Ching pointed out. “As part of the leaseback agreement, Boustead will pay AHBREIT a fixed rental payment and also a variable rental payment.
“The variable rental payment will be based on a crude palm oil (CPO) price reference and there will be a profit-share agreement between Boustead and AHBREIT for any price of CPO sold above the reference price.”
Ching noted that the along with this new agreement, a new reference price and rental rates would be determined and known by next year.
“The agreement is as such that it has neutral impact to Boustead’s earnings, even in times like these when CPO prices are high.
“After all, Boustead’s 100 per cent owned subsidiary, Boustead Plantations Bhd does have a 60 per cent stake in AHBREIT and earns distributions and profit shares from the REIT,” he concluded.
http://www.theborneopost.com/?p=74821
by Ronnie Teo ronnieteo@theborneopost.com. Posted on November 13, 2010, Saturday
KUCHING: Boustead Holdings Bhd’s (Boustead) proposed sale and leaseback agreement with Al-Hadharah Boustead Real Estate Investment Trust (AHBREIT) for its plantation assets was seen as a positive step forward by analysts.
PROFIT SHARING AGREEMENT: Ching says the variable rental payment will be based on a CPO price reference and there will be a profit-share agreement between Boustead and AHBREIT for any price of CPO sold above the reference price.
Hong Leong Investment Bank Bhd’s (HL Research) analyst noted that the proposed sale and leaseback of Sutera Estate in Sandakan and Taiping Rubber Plantation to AHBREIT was for a cash consideration of RM189.2 million.
“We view this positively due to interest savings and the reduction in gearing for Boustead,” he said.
According to ECM Libra Capital Sdn Bhd’s (ECM Libra) head analyst Bernard Ching, Boustead would profit by RM97.7 million in net gains from this venture along with an estimated interest savings of RM9.5 million for the financial year 2011 as reported by the group.
“The 3,580 hectare going into AHBREIT will still be captured by the group under its total hectarage calculation because it still gets to participate in the profits of the estates,” Ching pointed out. “As part of the leaseback agreement, Boustead will pay AHBREIT a fixed rental payment and also a variable rental payment.
“The variable rental payment will be based on a crude palm oil (CPO) price reference and there will be a profit-share agreement between Boustead and AHBREIT for any price of CPO sold above the reference price.”
Ching noted that the along with this new agreement, a new reference price and rental rates would be determined and known by next year.
“The agreement is as such that it has neutral impact to Boustead’s earnings, even in times like these when CPO prices are high.
“After all, Boustead’s 100 per cent owned subsidiary, Boustead Plantations Bhd does have a 60 per cent stake in AHBREIT and earns distributions and profit shares from the REIT,” he concluded.
http://www.theborneopost.com/?p=74821
Latexx advances market share
Latexx advances market share
by Justin Yap. Posted on November 11, 2010, Thursday
Company to focus on premium segments to cope with temporary headwinds
HIGH-TECH PRODUCTION: Photo shows a Latexx employee working with an incubator machine.
KUCHING: Latexx Partners Bhd’s (Latexx) ability to pass on costs to customers, coupled with its strategies to focus on the premium segments has enabled it to cope with the temporary headwinds and move on to advance its market presence.
Latexx announced results for the third quarter ended September 30, 2010 (3Q10) yesterday. The group recorded revenue of RM129.88 million for 3Q10, a 60.7 per cent growth from the same quarter a year ago (3Q09). For the current quarter, the group achieved net profit of RM17.63 million.
For the current year to date, the group sales revenue for the nine months ended September 30, 2010 increased 73.1 per cent to RM390.53 million from RM225.59 million for the corresponding period last year.
“The significant increase in revenue and improve-ment in the net profit of the current year was mainly due to the increase in overall sales volume, driven by the strong demand of gloves and the group’s capacity expansion,” said its chief executive officer (CEO) and chairman Low Bok Tek when contacted by The Borneo Post.
“The stronger performance was also attributed by measures taken to improve the efficiency in operation control as well as the intensified and aggressive marketing strategy,” he added.
The balance sheet position of the group continued to strengthen in 3Q10 compared with the preceding quarter. The net cash flow from operating activities as at September 30, 2010 was RM55.6 million, 30.8 per cent higher than the previous quarter of RM42.5 million.
When asked on the market glove demand, Low explained, “It had remained healthy although the concern for H1N1 had faded. Upon normalising, the demand for gloves still grew at 10 per cent to 12 per cent annually, which indicates a remarkable upside for any industry.
“Over the years, growing hygiene awareness and increased healthcare spending have made gloves a necessity in the healthcare sector, especially, in developed economies, thus making the industry resilient even when economy is slowing down.”
Looking at its strategic market positioning with thin nitrile gloves in the non-medical sector, Latexx head of corporate services Dr Liew Lai Lai said, “The sustained high level of latex prices is still the biggest challenge faced by all glove makers. Keeping abreast with the changing industry landscape, we have since adopted a few contingency strategies to adapt itself to the environment.
“Besides continuing to place more focus on the premium product segment that is relatively more resilient, we have also started offering a range of thinner, good quality and more price competitive nitrile gloves to both the medical and non-medical sector.”
Currently, almost 90 per cent of the group’s sales were to the medical sector; hence, the group was aiming to enlarge its revenue base by venturing into the non-medical sector. Latexx projected its range of thin and value priced nitrile gloves would be able to effectively substitute the lower-end natural rubber (NR) powdered gloves in the food and industrial market segment.
Latexx further foresaw that the latex price in the future would be lingering on the increasing trend and it believed that the sales of its range of thin nitrile gloves would increase substantially and significantly boost the revenue and profitability of the group by 2011.
The company also has strategically positioned itself in the premium NR gloves segment, with the launching of the first-in-the world NR powder-free gloves with unquantifiable protein level.
“This premium product range is currently the most effective solution to the threats of protein allergy for glove users,” said Liew.
“Based on the initial market response that we managed to obtain at this stage, the market is responding well and we strongly believes that these value-added natural latex gloves are able to create a demand and be widely accepted by the market and industry globally,” added Low.
He also revealed that the construction of an additional production plant adjacent to existing production facilities had been completed. The commissioning of glove production lines was done in accordance to schedule.
“Nine double formers and two single formers glove production lines were commissioned and have since started operation. The commissioning of the remaining glove production lines is in progress and is expected to increase the total capacity to nine billion pieces per annum by next year,” said the chairman.
The group continued to see a strong performance in its business for the remaining quarter of the year. “The board of directors expects the demand for the products and services to improve further in the fourth quarter and the business to remain strong until end of the financial year,” Liew concluded.
http://www.theborneopost.com/?p=74376
by Justin Yap. Posted on November 11, 2010, Thursday
Company to focus on premium segments to cope with temporary headwinds
HIGH-TECH PRODUCTION: Photo shows a Latexx employee working with an incubator machine.
KUCHING: Latexx Partners Bhd’s (Latexx) ability to pass on costs to customers, coupled with its strategies to focus on the premium segments has enabled it to cope with the temporary headwinds and move on to advance its market presence.
Latexx announced results for the third quarter ended September 30, 2010 (3Q10) yesterday. The group recorded revenue of RM129.88 million for 3Q10, a 60.7 per cent growth from the same quarter a year ago (3Q09). For the current quarter, the group achieved net profit of RM17.63 million.
For the current year to date, the group sales revenue for the nine months ended September 30, 2010 increased 73.1 per cent to RM390.53 million from RM225.59 million for the corresponding period last year.
“The significant increase in revenue and improve-ment in the net profit of the current year was mainly due to the increase in overall sales volume, driven by the strong demand of gloves and the group’s capacity expansion,” said its chief executive officer (CEO) and chairman Low Bok Tek when contacted by The Borneo Post.
“The stronger performance was also attributed by measures taken to improve the efficiency in operation control as well as the intensified and aggressive marketing strategy,” he added.
The balance sheet position of the group continued to strengthen in 3Q10 compared with the preceding quarter. The net cash flow from operating activities as at September 30, 2010 was RM55.6 million, 30.8 per cent higher than the previous quarter of RM42.5 million.
When asked on the market glove demand, Low explained, “It had remained healthy although the concern for H1N1 had faded. Upon normalising, the demand for gloves still grew at 10 per cent to 12 per cent annually, which indicates a remarkable upside for any industry.
“Over the years, growing hygiene awareness and increased healthcare spending have made gloves a necessity in the healthcare sector, especially, in developed economies, thus making the industry resilient even when economy is slowing down.”
Looking at its strategic market positioning with thin nitrile gloves in the non-medical sector, Latexx head of corporate services Dr Liew Lai Lai said, “The sustained high level of latex prices is still the biggest challenge faced by all glove makers. Keeping abreast with the changing industry landscape, we have since adopted a few contingency strategies to adapt itself to the environment.
“Besides continuing to place more focus on the premium product segment that is relatively more resilient, we have also started offering a range of thinner, good quality and more price competitive nitrile gloves to both the medical and non-medical sector.”
Currently, almost 90 per cent of the group’s sales were to the medical sector; hence, the group was aiming to enlarge its revenue base by venturing into the non-medical sector. Latexx projected its range of thin and value priced nitrile gloves would be able to effectively substitute the lower-end natural rubber (NR) powdered gloves in the food and industrial market segment.
Latexx further foresaw that the latex price in the future would be lingering on the increasing trend and it believed that the sales of its range of thin nitrile gloves would increase substantially and significantly boost the revenue and profitability of the group by 2011.
The company also has strategically positioned itself in the premium NR gloves segment, with the launching of the first-in-the world NR powder-free gloves with unquantifiable protein level.
“This premium product range is currently the most effective solution to the threats of protein allergy for glove users,” said Liew.
“Based on the initial market response that we managed to obtain at this stage, the market is responding well and we strongly believes that these value-added natural latex gloves are able to create a demand and be widely accepted by the market and industry globally,” added Low.
He also revealed that the construction of an additional production plant adjacent to existing production facilities had been completed. The commissioning of glove production lines was done in accordance to schedule.
“Nine double formers and two single formers glove production lines were commissioned and have since started operation. The commissioning of the remaining glove production lines is in progress and is expected to increase the total capacity to nine billion pieces per annum by next year,” said the chairman.
The group continued to see a strong performance in its business for the remaining quarter of the year. “The board of directors expects the demand for the products and services to improve further in the fourth quarter and the business to remain strong until end of the financial year,” Liew concluded.
http://www.theborneopost.com/?p=74376
Supermax to increase nitrile glove mix to about 30 per cent
Supermax to increase nitrile glove mix to about 30 per cent
Posted on November 11, 2010, Thursday
KUCHING: Supermax Corporation Bhd (Supermax) plans to increase the nitrile glove mix to about 30 per cent by gradually converting its existing natural rubber powder-free production lines to nitrile lines.
Currently, Supermax produces a mix of 80 per cent natural rubber gloves and 20 per cent nitrile.
OSK Research Sdn Bhd (OSK Research) understood that about 70 per cent of all its lines were convertible, except for the remaining 30 per cent, which were dedicated for the production of natural rubber powder gloves.
The research house pointed out that this change in product mix was in tandem with the more stable demand for nitrile gloves.
OSK Research understood that management also intended to increase its current production of about 20,000 pairs per annum (p.a) to 2.5 million p.a by end-2011.
This was in line with its plan to gradually tweak its product mix towards higher margin gloves.
As mentioned before, management expected to increase its total capacity by 3.1 billion pieces of gloves by end-2010 and another 4.1 billion at end-2011, bringing its annual capacity to 21.7 billion pieces by end-2011.
The research house noted that management anticipated latex prices to peak at about RM8.50 per kilogramme (kg) at end-2010 followed by a fall in the first quarter of the financial year 2011 (1QFY11) despite the fact that rubber trees would be undergoing their winter season.
This was because management believed the current price run-up was fuelled by speculation rather than being due to actual shortage.
OSK Research’s target price for the company was RM7.84 per share based on a price earnings ratio of 13 times financial year 2011 (FY11) earnings per share (EPS).
Going forward to FY11, management expected a net profit growth of about 20 per cent, contributed by higher associate contribution, the establishment of more regional distribution centres and the production of higher margin examination gloves.
http://www.theborneopost.com/?p=74547
Posted on November 11, 2010, Thursday
KUCHING: Supermax Corporation Bhd (Supermax) plans to increase the nitrile glove mix to about 30 per cent by gradually converting its existing natural rubber powder-free production lines to nitrile lines.
Currently, Supermax produces a mix of 80 per cent natural rubber gloves and 20 per cent nitrile.
OSK Research Sdn Bhd (OSK Research) understood that about 70 per cent of all its lines were convertible, except for the remaining 30 per cent, which were dedicated for the production of natural rubber powder gloves.
The research house pointed out that this change in product mix was in tandem with the more stable demand for nitrile gloves.
OSK Research understood that management also intended to increase its current production of about 20,000 pairs per annum (p.a) to 2.5 million p.a by end-2011.
This was in line with its plan to gradually tweak its product mix towards higher margin gloves.
As mentioned before, management expected to increase its total capacity by 3.1 billion pieces of gloves by end-2010 and another 4.1 billion at end-2011, bringing its annual capacity to 21.7 billion pieces by end-2011.
The research house noted that management anticipated latex prices to peak at about RM8.50 per kilogramme (kg) at end-2010 followed by a fall in the first quarter of the financial year 2011 (1QFY11) despite the fact that rubber trees would be undergoing their winter season.
This was because management believed the current price run-up was fuelled by speculation rather than being due to actual shortage.
OSK Research’s target price for the company was RM7.84 per share based on a price earnings ratio of 13 times financial year 2011 (FY11) earnings per share (EPS).
Going forward to FY11, management expected a net profit growth of about 20 per cent, contributed by higher associate contribution, the establishment of more regional distribution centres and the production of higher margin examination gloves.
http://www.theborneopost.com/?p=74547
Investing with the big picture in mind
Investing with the big picture in mind
Posted on November 6, 2010, Saturday
YOU don’t have to be an expert to get started, but it helps to know the basics before you set a plan for investing. Since the whole idea of investing can be overwhelming and intimidating for anyone who has never done it, try taking small steps.
Here are some basic Do’s
•Do:
•Get some financial education.
•Invest some time, then money.
•Read books and newspapers.
Attend seminars.
Get together with other like-minded people to learn about investment choices including the stock market, property or even a business.
You might also consider hiring a professional, like a financial planner to go through your current financial situation and goals, and work out a detailed financial plan for you. Besides giving you a professional perspective of your financial health, a good financial planner will know the kind of products in the market that will suit you.
But professional help doesn’t come cheap. So the best option would be to get a recommendation from neutral or independent sources such as the Financial Planning Association of Malaysia (FPAM) or the Securities Commission Malaysia before settling on a planner.
Always remember the three important principles of investing:
1. Investment Goals
What is the purpose of your investment? Is it to achieve high dividend yields or a consistent income yield? Once you’ve determined your short-term and long-term objectives, you can identify suitable investments, the level of risk you can tolerate, and what your expectations are.
2. Know your risk tolerance
High returns come with equally high risk. Realise your ability and willingness to lose some or all of your original investment in exchange for greater potential returns.
If you’re an aggressive investor, or one with a high-risk tolerance, a well-diversified equity fund should take up the majority of your portfolio. If you can take on only a moderate degree of risk, then perhaps a hybrid investment plan such as a 50:50 investment portfolio in a moderate risk fund with significant cash savings in a bank account is your calling.
3. Time horizon
Decide on how long you intend to invest and what stage of your life you’re at. If you are saving up for your daughter’s education in which you will need it in the near future such as within five years, then, you would likely to take on less risk because of a shorter time horizon. Also, maintain at least six month’s income in an easily accessible deposit account or put your money in liquid investments such as unit trust funds. This will allow you to have access to your money in the event of emergencies.
Here are two examples* to give you a general idea:
Scenario 1:
Sharon decides to start investing a sum of RM500 monthly, in an investment vehicle that will yield her an average of eight per cent per annum over the next 30 years till retirement. At the end of 30 years, the total sum of her investment would have amounted to RM750,000.
Scenario 2:
If Sharon decides to start investing five years later, a sum of RM500 monthly, in a similar investment vehicle that will yield her an average of eight per cent per annum over a period of 25 years till retirement, her total nest egg would have only amounted to RM478,000 due to the loss of an additional five years in compounded growth.
* Source: Investment Calculator from HwangDBS Investment Management corporate website www.hdbsim.com.my/tools/general-investment
This article is brought to you by HwangDBS Investment Management, your Asian Financial Specialists; we believe you deserve to live the life you want.
http://www.theborneopost.com/?p=73323
Posted on November 6, 2010, Saturday
YOU don’t have to be an expert to get started, but it helps to know the basics before you set a plan for investing. Since the whole idea of investing can be overwhelming and intimidating for anyone who has never done it, try taking small steps.
Here are some basic Do’s
•Do:
•Get some financial education.
•Invest some time, then money.
•Read books and newspapers.
Attend seminars.
Get together with other like-minded people to learn about investment choices including the stock market, property or even a business.
You might also consider hiring a professional, like a financial planner to go through your current financial situation and goals, and work out a detailed financial plan for you. Besides giving you a professional perspective of your financial health, a good financial planner will know the kind of products in the market that will suit you.
But professional help doesn’t come cheap. So the best option would be to get a recommendation from neutral or independent sources such as the Financial Planning Association of Malaysia (FPAM) or the Securities Commission Malaysia before settling on a planner.
Always remember the three important principles of investing:
1. Investment Goals
What is the purpose of your investment? Is it to achieve high dividend yields or a consistent income yield? Once you’ve determined your short-term and long-term objectives, you can identify suitable investments, the level of risk you can tolerate, and what your expectations are.
2. Know your risk tolerance
High returns come with equally high risk. Realise your ability and willingness to lose some or all of your original investment in exchange for greater potential returns.
If you’re an aggressive investor, or one with a high-risk tolerance, a well-diversified equity fund should take up the majority of your portfolio. If you can take on only a moderate degree of risk, then perhaps a hybrid investment plan such as a 50:50 investment portfolio in a moderate risk fund with significant cash savings in a bank account is your calling.
3. Time horizon
Decide on how long you intend to invest and what stage of your life you’re at. If you are saving up for your daughter’s education in which you will need it in the near future such as within five years, then, you would likely to take on less risk because of a shorter time horizon. Also, maintain at least six month’s income in an easily accessible deposit account or put your money in liquid investments such as unit trust funds. This will allow you to have access to your money in the event of emergencies.
Here are two examples* to give you a general idea:
Scenario 1:
Sharon decides to start investing a sum of RM500 monthly, in an investment vehicle that will yield her an average of eight per cent per annum over the next 30 years till retirement. At the end of 30 years, the total sum of her investment would have amounted to RM750,000.
Scenario 2:
If Sharon decides to start investing five years later, a sum of RM500 monthly, in a similar investment vehicle that will yield her an average of eight per cent per annum over a period of 25 years till retirement, her total nest egg would have only amounted to RM478,000 due to the loss of an additional five years in compounded growth.
* Source: Investment Calculator from HwangDBS Investment Management corporate website www.hdbsim.com.my/tools/general-investment
This article is brought to you by HwangDBS Investment Management, your Asian Financial Specialists; we believe you deserve to live the life you want.
http://www.theborneopost.com/?p=73323
QL is estimated to need about RM 250 million per annum for FY 2011 to FY 2012 to finance its expansion plans
QL Resources to increase production capacity
Posted on November 5, 2010, Friday
KUCHING: QL Resources Bhd’s (QL Resources) recent proposal to undertake a private placement, share split and issuance of free warrants was aimed at increasing its production capacity in its existing poultry farms in Malaysia.
According to Kenanga Investment Bank Bhd (Kenanga Research), the proposed placement of 20,827,920 shares of RM0.50 each to third-party investors was expected to be completed prior to the proposed share split and free warrants issue, to be completed by the first quarter of 2011.
Assuming a five per cent discount from the five-day weighted average market price of RM5.26, the proposed placement was expected to raise gross proceeds of up to approximately RM104 million.
The research house stated that about 70 per cent of the proceeds from the private placement would go to increasing its production capacity in existing poultry farms in the country apart from developing poultry farms in Indonesia and Vietnam.
In addition, the proceeds would be utilised for QL Resources’ plantation development and oil mill construction in its 20,000-hectare plantation in Indonesia apart from development of its biomass renewable energy projects in Tawau, Sabah.
The group’s proposed share split would entail the subdivision of one existing ordinary share of RM0.50 into two shares held by entitled shareholders to increase affordability of its shares and encourage retail participation.
With regards to the group’s proposed free warrants, the research firm said it would be issued free to existing shareholders on the basis of one free warrant for every 20 existing QL Resources shares after the private placement and share split.
RHB Research Institute Sdn Bhd (RHB Research) in its research report said that it had previously highlighted the group to do a corporate exercise to raise capital as it had estimated a need for about RM250 million per annum for the financial years 2011 to 2012 (FY11 to FY12) to finance its expansion plans.
The research firm sustained a positive view on this move, stating that it would enable the group to lower its net gearing at 54 per cent by the third quarter of FY2011 against a current approximation of 60 per cent.
Posted on November 5, 2010, Friday
KUCHING: QL Resources Bhd’s (QL Resources) recent proposal to undertake a private placement, share split and issuance of free warrants was aimed at increasing its production capacity in its existing poultry farms in Malaysia.
According to Kenanga Investment Bank Bhd (Kenanga Research), the proposed placement of 20,827,920 shares of RM0.50 each to third-party investors was expected to be completed prior to the proposed share split and free warrants issue, to be completed by the first quarter of 2011.
Assuming a five per cent discount from the five-day weighted average market price of RM5.26, the proposed placement was expected to raise gross proceeds of up to approximately RM104 million.
The research house stated that about 70 per cent of the proceeds from the private placement would go to increasing its production capacity in existing poultry farms in the country apart from developing poultry farms in Indonesia and Vietnam.
In addition, the proceeds would be utilised for QL Resources’ plantation development and oil mill construction in its 20,000-hectare plantation in Indonesia apart from development of its biomass renewable energy projects in Tawau, Sabah.
The group’s proposed share split would entail the subdivision of one existing ordinary share of RM0.50 into two shares held by entitled shareholders to increase affordability of its shares and encourage retail participation.
With regards to the group’s proposed free warrants, the research firm said it would be issued free to existing shareholders on the basis of one free warrant for every 20 existing QL Resources shares after the private placement and share split.
RHB Research Institute Sdn Bhd (RHB Research) in its research report said that it had previously highlighted the group to do a corporate exercise to raise capital as it had estimated a need for about RM250 million per annum for the financial years 2011 to 2012 (FY11 to FY12) to finance its expansion plans.
The research firm sustained a positive view on this move, stating that it would enable the group to lower its net gearing at 54 per cent by the third quarter of FY2011 against a current approximation of 60 per cent.
Budget 2011 boost for Economic Transformation Programme
Budget 2011 boost for Economic Transformation Programme
Posted on October 17, 2010, Sunday
PUTRAJAYA: Pemandu has received the necessary allocations to carry out the implementation of its Government Transformation Programme (GTP) and Economic Transformation Programme (ETP) initiative in 2011.
“The budget allocations clearly demonstrated the Government’s commitment to ETP. This will enable us to put up the eight per cent public funding required to catalyse the 92 per cent private sector investment.
“As the ETP is co-created by the private sector from the ground up through a 1,000-person workshop and 500-person nine-week lab, we now need the private sector to deliver on its promise,” said Senator Datuk Sri Idris Jala, Minister in the Prime Minister’s Department and chief executive officer of Pemandu.
“The estimated growths of 10.2 per cent and 6.3 per cent for private sector investments and private consumption respectively are aligned with the ETP’s strategy for a private sector-led and a more private consumption-driven economic expansion,” he added.
The ETP initiatives covered in the 2011 Budget include:
http://www.theborneopost.com/?p=69175
Posted on October 17, 2010, Sunday
PUTRAJAYA: Pemandu has received the necessary allocations to carry out the implementation of its Government Transformation Programme (GTP) and Economic Transformation Programme (ETP) initiative in 2011.
“The budget allocations clearly demonstrated the Government’s commitment to ETP. This will enable us to put up the eight per cent public funding required to catalyse the 92 per cent private sector investment.
“As the ETP is co-created by the private sector from the ground up through a 1,000-person workshop and 500-person nine-week lab, we now need the private sector to deliver on its promise,” said Senator Datuk Sri Idris Jala, Minister in the Prime Minister’s Department and chief executive officer of Pemandu.
“The estimated growths of 10.2 per cent and 6.3 per cent for private sector investments and private consumption respectively are aligned with the ETP’s strategy for a private sector-led and a more private consumption-driven economic expansion,” he added.
The ETP initiatives covered in the 2011 Budget include:
- the Mass Rapid Transit (MRT) in Greater Kuala Lumpur/Klang Valley
- measures to revitalise the domestic capital market
- the launch of a Private Pension Fund
- RM857 million allocation for local Electrical and Electronics sector
- RM146 million allocation for the Oil, Gas and Energy industry
- RM3.8 billion allocation to increase productivity and generate higher returns in the agriculture sector
- RM85 million allocation for infrastructure facilities to facilitate construction of hotels and resorts in remote areas, and RM100 million allocation to further support the tourism industry
- the RM3 billion eco-nature resort in Sabah
- the abolishment of existing import duty of between five to 30 per cent on approximately 300 goods
- RM297 million allocation to support palm oil replanting activities
- RM127m allocation to support domestic oleo derivatives companies and RM23.3m to expand downstream palm oil industries
- The set-up of the Wage Consultation Council to determine the rate and mechanism of the minimum wage policy
- Allocation for Wholesale and Retail sector activities such as Tukar, Pakar and automotive workshop transformation.
http://www.theborneopost.com/?p=69175
Bursa M’sia delists 192 companies from 2005
Bursa M’sia delists 192 companies from 2005
Posted on October 13, 2010, Wednesday
KUALA LUMPUR: A total of 192 public companies have been delisted from Bursa Malaysia from 2005 till end of August this year, the Dewan Rakyat was informed.
Deputy Finance Minister, Datuk Dr Awang Adek Hussein, said a total of 203 public companies were also listed on the stock exchange during the same period.
He said 74 companies or 38 per cent of the 192 companies were delisted following privatisation process.
“Out of the 74 companies, 50 were off the list after take over offer and scheme arrangement, 12 following scheme payment and reduction in selected capital in line with the Companies Act. Another three companies were delisted following the sale of assets resulting from a merger where the assets had been transferred while another nine companies opted for voluntary delisting,” he said.
The minister said this when replying to a question from William Leong Jee Keen (PKR-Selayang) at the Dewan Rakyat sitting here.
Leong wanted to know the number of public companies listed on Bursa Malaysia through an initial public offer (IPO) and the number of companies that took private from 2005 till 2010 and the reasons behind the move.
Awang Adek said there were many other reasons for a company to seek delisting including the wish of the main shareholder to expand the company’s business direction without any obstruction from other shareholders.
A low share price that is not reflective of the actual asset value of the said share is another reason.
“It happens also when the company sells its assets and has no core business activity and both the main shareholder and the company’s management have no plans to start on a new core business,” he said.
Awang Adek also said that there had been a 15 per cent increase in the stock exchange’s Composite Index, rising from 1,272 points last year to 1,484 points todate.
“A rise of 15 per cent within a year is a good achievement. With the impending listing of several new companies including two subsidiary companies of Petronas on the local bourse, it should provide for some new activity and inspiration in the market,” he added. — Bernama
Posted on October 13, 2010, Wednesday
KUALA LUMPUR: A total of 192 public companies have been delisted from Bursa Malaysia from 2005 till end of August this year, the Dewan Rakyat was informed.
Deputy Finance Minister, Datuk Dr Awang Adek Hussein, said a total of 203 public companies were also listed on the stock exchange during the same period.
He said 74 companies or 38 per cent of the 192 companies were delisted following privatisation process.
“Out of the 74 companies, 50 were off the list after take over offer and scheme arrangement, 12 following scheme payment and reduction in selected capital in line with the Companies Act. Another three companies were delisted following the sale of assets resulting from a merger where the assets had been transferred while another nine companies opted for voluntary delisting,” he said.
The minister said this when replying to a question from William Leong Jee Keen (PKR-Selayang) at the Dewan Rakyat sitting here.
Leong wanted to know the number of public companies listed on Bursa Malaysia through an initial public offer (IPO) and the number of companies that took private from 2005 till 2010 and the reasons behind the move.
Awang Adek said there were many other reasons for a company to seek delisting including the wish of the main shareholder to expand the company’s business direction without any obstruction from other shareholders.
A low share price that is not reflective of the actual asset value of the said share is another reason.
“It happens also when the company sells its assets and has no core business activity and both the main shareholder and the company’s management have no plans to start on a new core business,” he said.
Awang Adek also said that there had been a 15 per cent increase in the stock exchange’s Composite Index, rising from 1,272 points last year to 1,484 points todate.
“A rise of 15 per cent within a year is a good achievement. With the impending listing of several new companies including two subsidiary companies of Petronas on the local bourse, it should provide for some new activity and inspiration in the market,” he added. — Bernama
Poh Kong Holdings Berhad
Date announced 12-Jun-10
Quarter 31/10/2010 Qtr 1 FYE 31/07/2011
STOCK POHKONG C0DE 5080
Price $ 0.47 Curr. PE (ttm) 5.90 Curr. DY 2.98%
LFY Div 1.40 DPO ratio 18%
ROE 10.2% PBT Margin 9.0% PAT Margin 6.4%
Rec. qRev 169451 q-q % chg 28% y-y% chq 11%
Rec qPbt 15191 q-q % chg 58% y-y% chq 11%
Rec. qEps 2.65 q-q % chg 39% y-y% chq 10%
ttm-Eps 7.96 q-q % chg 3% y-y% chq 17%
Using VERY CONSERVATIVE ESTIMATES:
EPS GR 5% Avg.H PE 6.00 Avg. L PE 5.20
Forecast High Pr 0.61 Forecast Low Pr 0.38 Recent Severe Low Pr 0.38
Current price is at Middle 1/3 of valuation zone.
RISK: Upside 61% Downside 39%
One Year Appreciation Potential 6% Avg. yield 4%
Avg. Total Annual Potential Return (over next 5 years) 10%
CPE/SPE 1.05 P/NTA 0.60 NTA 0.78 SPE 5.60 Rational Pr 0.45
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): .49
(Figures in Malaysian Ringgits)
1 Week 10.2% 13 Weeks 11.5%
4 Weeks 19.8% 52 Weeks 16.9%
Poh Kong Holdings Berhad Key Data:
Ticker: POH KONG Country: MALAYSIA
Exchanges: KUL Major Industry: Apparel & Textiles
Sub Industry: Apparel Manufacturers
2010 Sales 561,242,000
(Year Ending Jan 2011).
Employees: 1,047
Currency: Malaysian Ringgits Market Cap: 199,020,720
Fiscal Yr Ends: July Shares Outstanding: 410,352,000
Share Type: Ordinary Closely Held Shares: N/A
Day's Range: 0.46 - 0.47
52wk Range: 0.35 - 0.51
Volume: 273,000
Friday, 3 December 2010
Top 5 Things to Do to Make Money Investing Stocks
You can read all the investing books from Amazon.com Inc (Nasdaq: AMZN, stock), attend all the seminars you can afford and ask a million investing questions because Warren Buffett is your neighbor next-door but you can never duplicate and apply all the teaching in your way of investing. So let’s start with the top 5 things you should do to make money investing stocks or trading option (in no particular order):
First Thing to Do
You Should Study the Companies’ Fundamentals
Second Thing to Do
You Should Do Technical Analysis
Third Thing to Do
You Should Read the Pulse of the Market
Fourth Thing to Do
You Should Know When to Lock Your Profit
Fifth Thing to Do
You Should Minimize Your Emotion
Read more here.
First Thing to Do
You Should Study the Companies’ Fundamentals
Second Thing to Do
You Should Do Technical Analysis
Third Thing to Do
You Should Read the Pulse of the Market
Fourth Thing to Do
You Should Know When to Lock Your Profit
Fifth Thing to Do
You Should Minimize Your Emotion
Read more here.
Petronas Gas surges on LNG project
Petronas Gas surges on LNG project
Written by Joseph Chin
Thursday, 02 December 2010 09:21
KUALA LUMPUR: Shares of PETRONAS GAS BHD [] advanced in early trade on Thursday, Dec 2 after it secured a proposed liquefied natural gas (LNG) regasification project from its parent, Petroliam Nasional Bhd.
At 9.18am, PetGas was up 22 sen to RM11.36. There were 5,700 shares done.
The FBM KLCI jumped 11.91 points to 1,497.33. Turnover was 95.33 million shares valued at RM102.61 million. There were 304 gainers, 41 losers and 96 stocks unchanged.
PetGas announced on Wednesday the projects would be in Sungai Udang port, Melaka and would include two floating storage units (FSUs) to receive and store LNG; an island jetty and regasification units to regasify LNG; and subsea and onshore pipelines to transport the regasified LNG to the Peninsular Gas Utilisation pipeline network.
http://www.theedgemalaysia.com/business-news/177973-petronas-gas-surges-on-lng-project.html
Written by Joseph Chin
Thursday, 02 December 2010 09:21
KUALA LUMPUR: Shares of PETRONAS GAS BHD [] advanced in early trade on Thursday, Dec 2 after it secured a proposed liquefied natural gas (LNG) regasification project from its parent, Petroliam Nasional Bhd.
At 9.18am, PetGas was up 22 sen to RM11.36. There were 5,700 shares done.
The FBM KLCI jumped 11.91 points to 1,497.33. Turnover was 95.33 million shares valued at RM102.61 million. There were 304 gainers, 41 losers and 96 stocks unchanged.
PetGas announced on Wednesday the projects would be in Sungai Udang port, Melaka and would include two floating storage units (FSUs) to receive and store LNG; an island jetty and regasification units to regasify LNG; and subsea and onshore pipelines to transport the regasified LNG to the Peninsular Gas Utilisation pipeline network.
http://www.theedgemalaysia.com/business-news/177973-petronas-gas-surges-on-lng-project.html
Thursday, 2 December 2010
The Ketuanan issue
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/
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/
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