Financial Daily The Edge

FBM KLCI 1818.42

0.68

KLCI FUTURES 1816.00

2.00

STI 3431.59

12.57

RM/USD 3.6570

CPO RM2194.00

27.00

OIL US$58.75

2.27

GOLD US$1209.80

PP 9974/08/2013 (032820) PENINSULAR MALAYSIA RM1.50

FRIDAY MARCH 27, 2015 ISSUE 1927/2015

FINANCIAL DAILY MAKE BETTER DECISIONS

www.theedgemarkets.com

Recordings show co-pilot deliberately crashed plane 26 W O R L D

6 HOME BUSINESS

No delay to T4 power plant construction, says Malakoff 8 HOME BUSINESS

Merger with Sime Darby property unit mere speculation — S P Setia 9 HOME BUSINESS

IMF: Malaysia needs to overcome dip in economic growth 23 F E AT U R E

Phaseout of PPSMI runs to 2021

20 P R O P E R RT TY

28 BLVD registers 62% take-up rate

by u o y o t t h g u o r b s i y p o c l a t This digi

12.80

FBM KLCI 1818.42

0.68

KLCI FUTURES 1816.00

2.00

STI 3431.59

12.57

RM/USD 3.6570

CPO RM2194.00

27.00

OIL US$58.75

2.27

GOLD US$1209.80

PP 9974/08/2013 (032820) PENINSULAR MALAYSIA RM1.50

FRIDAY MARCH 27, 2015 ISSUE 1927/2015

FINANCIAL DAILY MAKE BETTER DECISIONS

www.theedgemarkets.com 6 HOME BUSINESS

No delay to T4 power plant construction, says Malakoff 8 HOME BUSINESS

Merger with Sime Darby property unit mere speculation — S P Setia 9 HOME BUSINESS

IMF: Malaysia needs to overcome dip in economic growth 23 F E AT U R E

Phaseout of PPSMI runs to 2021

20 P R O P E RT Y

28 BLVD registers 62% take-up rate

Recordings show co-pilot deliberately crashed plane 26 W O R L D

12.80

2

FR I DAY M ARC H 27, 2 0 1 5 • TH EEDGE F I N AN C I AL DAI LY

For breaking news updates go to www.theedgemarkets.com

ON EDGE T V www.theedgemarkets.com

Sushi King operator banks on expansion to turnaround business

SP Setia expects better sales after GST implementation

George Kent eyes RM9billion LRT3 PDP

The Edge Communications Sdn Bhd (266980-X)

Level 3, Menara KLK, No 1 Jalan PJU 7/6, Mutiara Damansara, 47810 Petaling Jaya, Selangor, Malaysia Publisher and Group CEO Ho Kay Tat Editorial For News Tips/Press Releases Tel: 03-7721 8219 Fax: 03-7721 8038 Email: [email protected] Senior Managing Editor Azam Aris Executive Editors Kathy Fong, Jenny Ng, Siow Chen Ming, Surinder Jessy, Ooi Inn Leong Associate Editors R B Bhattacharjee, Joyce Goh, Jose Barrock, Vasantha Ganesan Deputy Editors Cindy Yeap, Kang Siew Li Assistant Editors Adeline Paul Raj, Tan Choe Choe Chief Copy Editor Halim Yaacob Senior Copy Editors Marica Van Wynen, Lam Seng Fatt, Melanie Proctor Copy Editor Evelyn Chan Art Director Sharon Khoh Design Team Cheryl Loh, Valerie Chin, Aaron Boudville, Aminullah Abdul Karim, Yong Yik Sheng Asst Manager-Editorial Services Madeline Tan Corporate Managing Director Au Foong Yee Deputy Managing Director Lim Shiew Yuin Advertising & Marketing To advertise contact GL: (03) 7721 8000 Fax: (03) 7721 8288 Chief Marketing Officer Sharon Teh (012) 313 9056 Senior Sales Managers Geetha Perumal (016) 250 8640 Fong Lai Kuan (012) 386 2831 Shereen Wong (016) 233 7388 Peter Hoe (019) 221 5351 Acting Senior Sales Manager Gregory Thu (012) 376 0614 Ad-Traffic Manager Vigneswary Krishnan (03) 7721 8005 Ad Traffic Asst Manager Roger Lee (03) 7721 8004 Executive Ad-Traffic Norma Jasma (03) 7721 8006 Email: [email protected] Operations To order copy Tel: 03-7721 8034 / 8033 Fax: 03-7721 8282 Email: [email protected]

KPMG International denies any connection to 1MDB Its counsel says no one at headquarters responsible for fellow franchise holders KUALA LUMPUR: KPMG International has denied any relationship or connection to 1Malaysia Development Bhd (1MDB) following recent allegations by whistle-blower site Sarawak Report that the audit firm “cooked the books” when auditing the debt-laden state investment firm. Sarawak Report on Tuesday revealed that Tom Wethered, the general counsel for KPMG International Cooperative global chairman John Veihmeyer, stated that the corporate headquarters had no involvement in the matter because the KPMG network represented nothing more than a “Swiss cooperative of happy Helvetic-brand sharers”. He explained that no one at the headquarters was responsible for what their fellow franchise holders were up to, and they were just there to help and advise when required. “Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. “No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to bind or obligate any member firm. “KPMG International does not have any relationship with — or connection to — 1MDB,” Wethered wrote in an email to Ganesh Sahathevan, a Sydney-based Malaysian investigative financial journal-

ist, who challenged Veihmeyer to give his response to the allegations. Ganesh asked whether KPMG International was aware of any of the transactions relating to 1MDB outlined in the expose. “Much of what reported was in the public domain since at least 2014. Hence, there is also the question of why the global board took no action despite that fact?” he wrote in an email addressed to Veihmeyer. Last week, Sarawak Report exposed 1MDB’s annual report ended March 31, 2010, and email transactions that indicated how 1MDB allegedly concealed the loss of US$700 million, which was the sum siphoned out of its joint venture with the little-known oil company PetroSaudi. The firms that gave 1MDB clean bills of health were the Malaysian offices of global accounting firms Deloitte and KPMG. Sarawak Report said those who assume that accreditation by KPMG represents some form of guarantee of high standards, quality control, centralised monitoring and disciplinary process to ensure high standards of accountancy practices must therefore stand disappointed. “According to KPMG’s top legal eagle, theirs is a form of franchise that has its cake and eats it at the same time. Name bearers get to carry the brand but without any form of accountability. “If KPMG Malaysia assists in the cover-up of a billion-dollar heist

of public money, it turns out that their global headquarters in Amsterdam merely refers you to the cantons of Switzerland and their company’s new corporate structure — which is accountability free,” the site said. Lack of clear accountability Sarawak Report cited that the KPMG website and numerous articles made reference to the guarantee of quality that its brand lent to its affiliates across the world. “The KPMG Global website concedes that its head officers provide policies, even regulations. But there is no mention of enforcement. “The global board is the principal governance and oversight body. The key responsibilities of the board include approving longterm strategies, protecting and enhancing the KPMG brand, and approving policies and regulations. “There is no single line of accountability within the organisation ... although there is a deluge of information about the values and quality that this network of affiliated firms is striving to achieve, there seems to be a lack of clear accountability within the structure of the organisation. “Without accountability and enforcement structures, the high values and claims of integrity that pack out KPMG’s corporate messaging are surely effectively meaningless? What better example than this latest abdication of responsibility over the scandal of 1MDB?”

Sarawak Report asked. The site also highlighted how former KPMG global head Michael Andrew spoke about the company upholding its “duty to the broader community” during an interview he gave to The Star. Andrew was quoted as saying that the KPMG brand is “all about being independent and objective because the firm and its employees have a public interest of responsibility to the broader community”. He said: “If we don’t meet the governance standards, people won’t have confidence in our business. Integrity is at the heart of everything we do. “This is ensuring that we understand that our duty is to the broader community than just to any particular client or particular transaction. Because if we do some work, which turns out to be incorrect, it’ll affect our global brand.” Despite KPMG’s commitment to the broader community, Sarawak Report said the public was never informed about the siphoning of US$700 million in public funds — out of the fund in the case of 1MDB. “And now it turns out that KPMG Global regards itself as having no responsibility at all in the matter. “If it’s more widely recognised that KPMG Global exerts so little quality control over its branches, the reputation on which this ‘cooperative’ relies might very well lose a lot of its lustre,” the site said. — The Malaysian Insider

Perak Corp seeks legal opinion on letter of demand by Integrax’s Amin BY CHARLOTTE C HO NG

KUALA LUMPUR: Perak Corp Bhd said it is currently seeking legal advice on the letter of demand (LOD) sent by Integrax Bhd’s co-founder Amin Halim Rasip over claims that the former should seek a minimum price offer of RM3.66 per Integrax share. In a statement with Bursa Malaysia yesterday, Perak Corp confirmed that the company and its directors have received an LoD dated March 24 from Amin on “immediate steps to be taken to invite and procure offers of no less favourable terms and price”. Amin owns a 24.61% stake in Integrax. Perak Corp (fundamental: 1.90; valuation: 2.40) said, “The company is currently seeking legal advice on the LOD and will take appropriate steps to address the issue.” This was after Perak Corp board of

directors’ recent decision to reaffirm its stance to seek approval from the group’s shareholders to vote in favour of disposing of its 15.74% stake in Integrax (fundamental: 1.65; valuation: 1.20) to Tenaga Nasional Bhd (TNB) (fundamental: 1.30; valuation: 1.80) for RM3.25 per share at the extraordinary general meeting (EGM) today. Perak Corp’s board had announced that it was of the view that TNB’s offer for its entire stake was “superior”. Perak Corp also said in the same announcement yesterday that it could not grant Amin’s request on having an additional resolution during the EGM today, “as the proposed modification and proposed addition of resolution would tantamount to a new business”. It also noted that for a business to be transacted at an EGM, due notice to the shareholders of the company

must be given at least 14 days before the meeting. Under the proposed additional resolution, Perak Corp is required to invite further offers from TNB or any other party and seek a minimum price offer of RM3.66 per Integrax share. TNB held a 24.82% stake in Integrax as at March 19. State-owned Perbadanan Kemajuan Negeri Perak is the single largest shareholder of Perak Corp with an effective equity interest of 52.9%, while Sime Darby Property Bhd has a 6.12% stake in Perak Corp. Perak Corp shares dropped 0.35% to close at RM2.84 yesterday, with a market capitalisation of RM284 million, while Integrax’s counter closed unchanged at RM3.17, bringing a market cap of RM953.55 million. TNB’s share price also closed 0.28% lower at RM14.46, with a market cap of RM81.6 billion.

Amin had sent a letter of demand dated March 24 to Perak Corp Bhd. The Edge file photo

The Edge Research’s fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations. Go to www. theedgemarkets.com for more details on a company’s financial dashboard.

4 HOME BUSINESS

FR I DAY M ARC H 27, 2 0 1 5 • TH EEDGE F I N AN C I AL DAI LY

Oil surges on Saudi air strikes in Yemen Analysts say impact on O&G counters to be short-lived BY Y EN N E FOO & YIM IE YONG

KUALA LUMPUR: The rise in crude oil prices, after Saudi Arabia started military operations against Iranian backed-Houthi rebels in Yemen, and its impact on local oil and gas (O&G)-related stocks is likely to be temporary, analysts say. At the time of writing, Brent crude oil had advanced 4.34% or US$2.45 (RM9) to US$58.94 per barrel, while West Texas Intermediate (WTI) was up US$2.32 or 4.71% to US$51.53. MIDF Research analyst Aaron Tan told The Edge Financial Daily, “Every time there is a new geopolitical conflict in the Middle East, the first reaction would always be a spike in crude oil price. The concern is always whether there is oil supply disruption.” “When it comes to crude oil supply disruption, the question is whether there is a disruption in production oilfields itself or an interruption in the transportation of oil,” he explained. Tan pointed out that the full impact of the new Middle East tension on crude oil price would only be known once the damage of the assault on oil-related facilities is known. “Once the details of the attack are known, oil traders would start to assess the situation and see if oil facilities were actually damaged, the extent of the damage and cost, and how much they stand to lose from the supply disruption, if any,” said Tan. Singapore’s OCBC Investment Research Pte Ltd analyst Low Pei Han raised the point that Yemen’s

location along the oil shipping route in the Middle East could disrupt delivery of the commodity. “While shipping routes to Asia may not be immediately affected, shipping lanes to Europe could be. Arab producers have to pass Yemen’s coastlines via the Gulf of Aden to get to Europe,” she said. While Yemen is not a major oil producer — producing less than 0.2% of the world’s oil output, according to Bloomberg — it shares a border with Saudi Arabia, the world’s biggest crude oil exporter. Furthermore, it is strategically located along the route used by oil tankers from the Persian Gulf to the west. Locally, trading interest appears to be returning to O&G-related stocks. Yesterday, smaller capitalised O&G-related stocks such as Sumatec Resources Bhd and Perisai Petroleum Teknologi Bhd saw their trading volumes and prices increase. Sumatec (fundamental: 2.4; valuation: 0.3) closed one sen or 4.55% higher at 23 sen, with 105.8 million shares traded. It reached an intraday high of 24 sen. Perisai (fundamental: 0.45; valuation: 1.2), which is an upstream services provider of O&G vessels and facilities, hit 59 sen during the day, before closing at 58.5 sen, up 4.5 sen or 8.33%. A total of 62.73 million shares were done. Meanwhile, larger O&G counters such as KNM Group Bhd, UMW Oil & Gas Corp Bhd (UMWOG) and Barakah Offshore Petroleum Bhd were among the gainers on

Brent Crude Oil USD($) 120

Vol (mil) 0.5 0.4

100

0.3 80 0.2

$58.96 60

0.1

40

0

Mar 26, 2014

Mar 26, 2015

the local bourse yesterday. KNM (fundamental: 0.85; valuation: 2.4) surged 8.53% or 5.5 sen to close at 70 sen, UMWOG (fundamental:1.05 ; valuation: 0.6)  rose 6.08% or 13 sen to RM2.27, while Barakah (fundamental: 2.1; valuation:1.8) rose 5.06% to 93.5 sen. Meanwhile, integrated O&G services provider SapuraKencana Petroleum Bhd (fundamental: 1.3; valuation: 1.8) rose eight sen or 3.45% to close at RM2.40, with 18.46 million shares done for a market capitalisation of RM13.9 billion. Bumi Armada Bhd (fundamental: 1.05; valuation: 1.2), a global floating production, storage and offloading (FPSO) player traded to RM1.07 during the day, before closing three sen or 2.94% higher at RM1.05, for a market capitalisation of RM6.16 billion. FPSO player Yinson Holdings Bhd (fundamental: 1.5; valuation:

1.5) closed just two sen or 0.74% higher at RM2.81, but volume reached 4.7 million shares. Despite that, head of research at M&A Securities Rosnani Rasul said that conflict’s influence on local O&G stock prices would be limited as the underlying landscape of the global O&G remains unchanged. “With Saudi Arabia being the largest oil producer in the world, any news about them will cause an oil price shock. The air strike in Yemen is a localised conflict and the fundamental issues within the global O&G sector is the same. There is a global supply glut,” she said. “In the end, it is the company’s fundamentals and their earnings which will determine any sustainable share price increase. The impact of the higher oil price now is only going to be temporary,” she said. Saudi Arabia initiated airstrikes against the rebel forces yesterday after Yemeni President Abed Rabbo Mansour Hadi fled the southern port city of Aden by boat as the Houthis advanced. The Edge Research’s fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations. Go to www.theedgemarkets.com for more details on a company’s financial dashboard.

CIMB is adviser for Edra sale BY A H MA D NAQ I B IDR IS

KUALA LUMPUR: Financial services provider CIMB Group Holdings Bhd announced that it had been appointed adviser to the Ministry of Finance (MoF) to find strategic investors for the potential sale of 1Malaysia Development Bhd’s (1MDB) energy arm, Edra Global Energy Bhd. “CIMB’s role will include identifying potential buyers and running a competitive process for Edra to derive an optimal outcome for MoF,” said the bank in a statement yesterday. However, CIMB (fundamental: 1.05; valuation: 1.5) said its appointment “does not extend to any other areas” relating to the controversial state wealth fund. This confirms The Edge Financial Daily’s report on March 19, quoting sources, that the MoF had asked CIMB Investment Bank Bhd, CIMB Group’s corporate and investment

banking outfit, to look at a strategic sale of the power assets of 1MDB as an alternative to the planned initial public offering (IPO), which had run into headwinds because of various problems. It had said that the MoF, as the sole shareholder of 1MDB, was worried that the IPO, initially planned for late last year and now targeted for mid-2015, might not materialise and wanted to consider another option. “They are in need of cash to help pay off their debts and they are worried that the IPO may not happen, so they need to consider an alternative,” said a source quoted in the daily. CIMB’s statement yesterday also clarified its role in relation to 1MDB after The Malaysian Insider reported on Wednesday, quoting Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah in Parliament, that the government had asked CIMB to be a “third party” to perform an evaluation of 1MDB for

BY C Y N T H IA B L E MIN

KUALA LUMPUR: Opposition lawmakers yesterday ticked off the Ministry of Finance (MoF) over contradictory statements made on tycoon T Ananda Krishnan’s involvement in the settlement of 1Malaysia Development Bhd’s (1MDB) RM2 billion debt with local financial institutions. “There are contradictory statements from the MoF on Ananda’s involvement in settling the RM2 billion debt. We want to know who wrote the written answers to Parliament. Was it Ahmad Maslan (Deputy Finance Minister Datuk Ahmad Maslan) or Husni (Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah)?” Bayan Baru Member of Parliament (MP) Sim Tze Tzin told reporters yesterday. Sim said the written answers from the MoF could have been prepared by either one of them. Last night, Ahmad Husni told Parliament in his winding-up speech during the debate on the royal address that Tanjong plc, which is controlled by the tycoon, had helped rope in “private investors” to come up with the money to help 1MDB pay off its RM2 billion. His remarks contradict his ministry’s written reply on March 14 on the same issue when queried by Batu MP Tian Chua. The ministry had said then that 1MDB’s RM2 billion debt was settled in early February with money from part of its US$2.318 billion (RM8.513 billion) Cayman Islands funds and not with the billionaire’s help.

Najib: ‘1MDB owes local banks RM5.037b’ BY C H E N S H AUA F UI

15

r 19, 20

ck: Ma lashba

Poser over MoF contradictory statements

F

the he IPO of its power assets assets. The statement came when he announced that a special task force will be set up to investigate 1MDB’s operations and its RM42 billion debt, which is separate from the one by the Attorney-General (AG) announced last week that comprises the Inspector-General of Police Tan Sri Khalid Abu Bakar, the Malaysian Anti-Corruption Commission, the AG’s chambers and the police. Besides himself, Ahmad Husni said the members of this new task force will include Minister in the Prime Minister’s Department Datuk Seri Abdul Wahid Omar, Chief Secretary to the Government Tan

Sri Dr Ali Hamsa and Treasury secretary-general Tan Sri Dr Mohd Irwan Serigar Abdullah. “The government has set up a task force. We are looking at it entirely, including 1MDB’s debts,” Ahmad Husni said. He added that the fund’s cash flow problems will be resolved once the IPO of its power assets take off. However, critics of 1MDB have said that the IPO will not be enough to resolve its woes, as the exercise would barely raise RM18 billion, while its debt stood at RM42 billion. “Even in the event that 1MDB is able to successfully list its energy subsidiary and sell its land bank at premium prices, the financially-stricken company can only raise barely RM18 billion to repay its RM42 billion debt, recorded as at March 31, 2014,” said DAP’s Tony Pua in a statement on March 13. CIMB closed one sen or 0.16% higher at RM6.19, bringing its market capitalisation to RM52.23 billion.

KUALA LUMPUR: 1Malaysia Development Bhd (1MDB) owed local banks a total of RM5.037 billion as of January 2015, said Finance Minister Datuk Seri Najib Razak. “As of January 2015, 1MDB owed local banks a total of RM5.037 billion,” Najib said in a brief one-line written reply to Pandan Member of Parliament Rafizi Ramli yesterday. Rafizi asked the minister to state all of 1MDB’s debts with local banks as of January 2015, and the latest audit result by Bank Negara Malaysia (BNM) on each of these debts. Rafizi had said earlier when it was known that 1MDB faced problems servicing its RM2 billion loan from local banks in February, BNM had conducted a compliance audit on local banks. He had urged the central bank to make the report on the audit public.

6 HOME BUSINESS

FR I DAY M ARC H 27, 2 0 1 5 • TH EEDGE F I N AN C I AL DAI LY

Eco World to launch properties in UK worth £1.15b Projects are portions of the Embassy Gardens, Arrowhead Quay and London City Island KUALA LUMPUR: Eco World Development Group Bhd plans to launch property projects with a gross development value (GDV) of about £1.15 billion (RM6.28 billion) in the United Kingdom by the end of this year. Eco World (fundamental: 0.5; valuation: 0.3) chairman Tan Sri Liew Kee Sin said the projects that will be launched are portions of the Embassy Gardens, the Arrowhead Quay and the London City Island. He said all three projects will have different price points to cater to customers with different investment needs. “More than 90% of the units are two-bedroom [ones] with a selling price below the £1 million threshold,” Liew told reporters after officiating the Eco World International Centre at The Gardens North Tower today. The three projects have a combined total GDV of around £2.3 billion, with the GDV for the London City Island at £617 million, Arrowhead Quay at £611 million and Embassy Gardens at £1.029 billion, respectively. Eco World is eyeing a 50:50 mix of local and foreign buyers in the said projects. On the impact of the United Kingdom (UK) general election this year on the property market, former UK prime minister’s trade envoy Lord Jonathan Marland, who was also present at the event yesterday, said it is too early to tell.

group will still focus on London and Australia for its overseas property development. “We will consider exploring new markets once the UK and Australian markets are stabilised and the special purpose acquisition company (Spac) is approved by the authority,” he said. Liew and fellow property magnate Datuk Teow Leong Seng, together with some associates, are seeking to list the first property Spac, Eco World International Bhd, on the Main Market of Bursa Malaysia, to raise some RM1.87 billion. The Spac is currently awaiting approval from the Securities Commission Malaysia on the matter. Liew says the group will still focus on It was previously reported Eco World plans to acquire a 30% stake London and Australia for its overseas in the Spac for RM562.5 million. property development. Photo by Mohd Eco World closed at RM1.93 yesIzwan Mohd Nazam terday, down one sen or 0.52%, giving Nevertheless, he said the UK gov- it a market capitalisation of RM3.82 ernment has a policy of building billion. 50,000 houses a year in London, regardless of any changes in the political scene. The Edge Research’s fundamental “Currently, demand is definitely score reflects a company’s profitability more than supply,” he said, adding and balance sheet strength, calculatthat the pricing of Eco World pro- ed based on historical numbers. The jects is deemed affordable to those valuation score determines if a stock is in the UK. “The UK government is attractively valued or not, also based also keen on encouraging more first- on historical numbers. A score of 3 time home buyers by offering them suggests strong fundamentals and lower interest rates for their home attractive valuations. Go to www. loans,” he said. theedgemarkets.com for more details Going forward, Liew said the on a company’s financial dashboard.

Gamuda 2Q net profit up 7% to RM182.18m BY SU L H I A ZMA N

KUALA LUMPUR: Construction outfit Gamuda Bhd saw its net profit for the second quarter ended January (2QFY15) increase 7.1% to RM182.18 million or 7.78 sen per share from RM170.12 million or 7.41 sen per share a year ago. Revenue grew 26.2% to RM653.24 million from RM517.63 million in 2QFY14. In a filing with Bursa Malaysia yesterday, Gamuda said the increase in revenue and profit was “mainly due to additional stake in Kesas Sdn Bhd, the concession holder of Shah Alam Expressway”. For the cumulative six-months period (6MFY15), Gamuda’s net profit rose 9.7% to RM368.03 million or 15.78 sen per share from RM335.60 million or 14.66 sen per share a year

ago, while revenue went up 21.8% to RM1.22 billion from RM1 billion in 6MFY14. On a segmental basis, Gamuda’s construction division revenue in 6MFY15 grew 8% to RM609.08 million from RM563.56 million previously, which the group attributed to higher work progress from the underground works of the Klang Valley mass rapid transit (KVMRT) project. As for its property division, revenue in 6MFY15 jumped 10% to RM414.78 million from RM377.14 million, thanks to its Gamuda City project in Vietnam. Gamuda (fundamental: 2.2; valuation: 1.5) added that its property division sold RM292 million worth of properties in 2QFY15, which boosted its 6MFY15 sales to RM535 million. Its current unbilled sales stood

at RM1.5 billion, while the remaining gross development value of its existing and new projects stands at RM49.16 billion. Meanwhile, revenue for its water and expressway divisions tripled to RM199.01 million in 6MFY15 from RM63.04 million in 6MFY14, as a result of its additional stake in Kesas Sdn Bhd. Going forward, Gamuda expects a “good performance this year”. “The group anticipates a good performance this year from ongoing construction projects, substantial unbilled sales of the property division, and steady earnings from the water and expressway concessions divisions,” it said in the filing. The stock closed three sen or 0.57% lower at RM5.20 yesterday, giving it a market capitalisation of RM12.22 billion.

MOST VIEWED STORIES ON theedgemarkets.com

No delay to T4 power plant construction, says Malakoff BY S H A L IN I KUMA R

KUALA LUMPUR: Malakoff Corp Bhd has dismissed talks of a delay in the construction of its 1,000mw Tanjung Bin Energy (T4) coal power plant, saying they are “misleading” and “do not present the current situation”. In a statement yesterday, Malakoff said there is no truth to reports that its T4 power plant is expecting a six- to 12-month delay. “Any risk of construction delay that arose in 2013 was during the initial stages of the construction. “The scheduled completion date is March 2016. Now after more than 24 months of construction ... the construction delays have been addressed, with Malakoff expecting to deliver the T4 power plant within the stipulated time,” it added. On Wednesday, opposition

lawmaker Tony Pua called on the government to terminate and penalise independent power producers (IPPs), namely 1Malaysia Development Bhd (1MDB) and Malakoff, for failing to finance and deliver their concessions. He also questioned why new IPP contracts were being awarded to the companies when they had failed to commence their respective projects due to financial difficulties. Pua said every year’s delay to the completion of each power plant project will cost Malaysian consumers RM644 million in higher electricity prices. 1MDB, which has been awarded the 2,000mw coal-fired power plant as well as the Project 4A gas-turbine power plant in Melaka, has not started work on the projects due to shortage of funds.

Tanjung Offshore pledges cooperation with regulators on probe BY C H A R LOT T E C H O N G

KUALA LUMPUR: Tanjung Offshore Bhd executive director (ED) Tan Sri Tan Kean Soon said the company will work closely with regulatory bodies and institutions on the ongoing investigations arising from the independent committee (IC) findings. The IC findings were submitted to Bursa Securities, the Securities Commission Malaysia and the police in late January. Kean Soon, who was redesignated as the company’s ED (from non-ED) on Monday, said in a statement yesterday that he will work closely with the newly-appointed special auditor, Ferrier Hodgson MH Sdn Bhd, to conduct a forensic audit and address the list of questions and issues raised. He said he would ensure the results are disclosed publicly and quickly. Moving forward, Kean Soon noted that Tanjung Offshore (fundamental: 1.85; valuation: 0.60) plans to review several matters, including the possibility of implementing a dividend policy

to reward shareholders. “The board is also considering to invite Lembaga Tabung Haji, the company’s second-largest shareholder, to sit on the board.”  Kean Soon is the third-largest shareholder of Tanjung Offshore, with a 7.58% stake, after its chief executive officer Rahmandin Shamsudin’s 9.99% holdings, and Lembaga Tabung Haji’s 7.99% equity interest. “All shareholders can expect a transparent and accountable board which will endeavour to provide the best returns in these challenging times for the oil and gas industry,” he said. In the past two days, Tanjung Offshore has withdrawn all lawsuits against Kean Soon and related parties. This follows the lifting of the suspension of Kean Soon’s and two other officers’ roles on Monday. Kean Soon and two shareholders had also called off an extraordinary general meeting that was slated for today.  Tanjung Offshore shares closed unchanged at 51.5 sen yesterday, giving it a market capitalisation of RM195.22 million.

Kenanga Group bags five Bursa Brokers awards BY G H O C H E E Y UA N

KUALA LUMPUR: K&N Kenanga Holdings Bhd (Kenanga Group) has clinched five awards at the recent annual Bursa Malaysia Brokers’ Awards 2014. In a statement, the group said Kenanga Deutsche Futures Sdn Bhd was named as one of the top three recipients for the Best Derivatives Clearing Broker. Kenanga Deutsche Futures also retained its “Best Derivatives Trading Broker” and “Best Trading Broker — Equity Derivatives” title for the 12th consecutive year.

Meanwhile, Kenanga Investment Bank Bhd retained its top three position in the “Best Retail Equities Broker” and “Best Online Broker” categories for the second consecutive year. Kenanga Group managing director Datuk Chay Wai Leong said the group continues to reaffirm its position as one of the leading players in equity broking and listed derivatives despite intense competition. “This was made possible thanks to the strong collaborative efforts of our talent pool across the entire group,” he added.

8 HOME BUSINESS

FR I DAY M ARC H 27, 2 0 1 5 • TH EEDGE F I N AN C I AL DAI LY

Bioalpha eyes Middle East market in 2016 It has signed MoU with UAE-based company BY SU L H I A ZMA N

KUALA LUMPUR: Integrated health supplements manufacturer Bioalpha Holdings Bhd, en route to a listing on the ACE Market of Bursa Malaysia, aims to sell its products in the Middle East in 2016 — beginning with the United Arab Emirates (UAE), said its managing director and chief executive officer William Hon Tian Kok. “The expansion is a step forward for us to broaden our revenue and customer base, given that our products are halal-certified,” Hon told reporters after the launch of its initial public offering (IPO) prospectus here yesterday. Bioalpha initially wanted to enter the Middle East market in the second quarter of 2015, but the plan was delayed pending the relevant approval and permits from authorities. To recap, Bioalpha had on Oct 28 last year signed a memorandum of understanding (MoU) with UAEbased Fathima Group of Companies LLC (FGC) for the latter to distribute Bioalpha products to supermarkets, pharmacies and healthcare centres. FGC has 25 retail outlets in the UAE and other member countries within the Gulf Cooperation Council. Hon said Bioalpha currently has an outstanding purchase order of RM10.26 million, which will be fulfilled by end-2015. Currently, sales

Hon said Bioalpha will open 10 outlets in retail malls in Klang Valley this year. Photo by Shahrin Yahya

in Malaysia contributed 47.41% to its total revenue, followed by Indonesia (40.63%), Australia (11.19%) and others (0.77%). Hon said Bioalpha will open 10 outlets in retail malls in the Klang Valley this year via licensing arrangements, at a cost of RM750,000 per outlet. “Our expansion plan with MyAngkasa (MyAngkasa Holdings Sdn Bhd) is to establish retail outlet chains that will enhance our distribution channel as well as increase our market share of 3.63% currently,” he said, adding that discussions on licensing arrangements are still ongoing. Earlier, Hon said Bioalpha’s proposed listing on the ACE on April 14

KWAP to focus on local market, help economic growth KUALA LUMPUR: Kumpulan Wang Persaraan (Diperbadankan) (KWAP), which has a fund value of RM112 billion, aims to expand its investments in the domestic equity, property and fixed income markets. By year-end, KWAP expects to grow its fund size to RM120 billion from RM110.5 billion in 2014. Chief executive officer Wan Kamaruzaman Wan Ahmad said the focus is in line with the government’s recommendation that KWAP should continue to support the nation’s economic growth, given the challenging global economic environment. “We seek to maximise our long-term adjusted total returns to enhance the real value of the fund, and target to achieve a nominal risk adjusted return of 6.8% per year over a 10-year rolling period,” he said in his keynote address at the Second Conference on Islamic Wealth Management and Financial Planning here yesterday. He added that KWAP will also be focusing on Islamic finance services and has been embarking on a project to set up a syariah-compliant fund in all asset classes. Currently, 71% of its investments in the equity market are syariah-compliant, including bonds and sukuk. He added as of February this year, 24% of KWAP’s investment funds are syariah-compliant. He added that KWAP would soon be announcing a deal to acquire a building in the Klang Valley worth over RM1 billion. “We would like to make a bigger presence in the local real estate market and will outsource more in the equity and fixed income markets,” he said. — Bernama

at an offer price of 20 sen per share is pegged at a price-earnings multiple of 11.56 times, based on its net earnings per share of 1.73 sen registered in the financial year ended December 2013 (FY13). The group expects to raise RM20 million via the issuance of 100 million new shares, of which 80 million will be placed to selected investors and the remaining 20 million will be offered to the public. This will give it an enlarged share capital of 463.41 million, which means its market capitalisation, upon listing, will hit RM92.7 million. Bioalpha said 45.4% of its IPO proceeds will be used for working capital, followed by 30% or RM6 million for both capital expenditure (15%) and research and development (15%); 13.1% to repay its bank borrowings, with the remaining 11.5% for listing expenses. For the nine months ended Sept ember of FY14 (9MFY14), Bioalpha’s profit leaped 42% to RM3.83 million or 2.51 sen per share from RM2.7 million or 1.81 sen per share a year ago, while revenue in 9MFY14 rose 59% to RM18.76 million from RM11.79 million previously on higher sales from its original design manufacturer and house brands. Hon said Bioalpha intends to pay 30% from its future net profits as dividends.

S P Setia: Merger with Sime Darby property arm mere speculation BY A H MA D N AQ IB ID R IS

KUALA LUMPUR: S P Setia Bhd said reports relating to a potential merger of the property developer with Sime Darby Bhd’s property arm is mere speculation, and that the company is not privy to the details of the rumoured corporate move. “It’s just speculation and we don’t know the details, so it is very difficult to comment. If there is any kind of corporate activity, the board will deliberate and then we will make a statement on it. “Other than that, we read it from the paper, just like you,” acting president and chief executive officer (CEO) Datuk Khor Chap Jen quipped at a press conference after the group’s annual general meeting yesterday. The Edge weekly had reported on March 16 that a proposal for Sime Darby (fundamental: 1; valuation: 0.9) to buy Permodalan Nasional Bhd’s (PNB) stake in S P Setia (fundamental: 1.4; valuation: 1.2) has been put forward to the relevant parties. However, it is not clear whether PNB, Sime Darby and S P Setia are receptive to it. Previously, a local daily reported that the senior management of S P Setia had mooted for Sime Darby Property Bhd to acquire the former. It was said this was brought up by the S P Setia’s management last year, to PNB and Sime Darby.  According Bursa Malaysia filings, PNB had a 51.18% stake in S P Setia as at Jan 6, and a 7.89% stake in Sime Darby. The report, quoting unnamed sources, said the idea for Sime Darby Property to acquire S P Setia was mooted to resolve a vacuum in leadership, caused by the departure of S P Setia’s former president

and CEO Tan Sri Liew Kee Sin on April 30, 2014. Looking ahead, S P Setia expects sales to be more robust in the second half of 2015, following the implementation of the goods and services tax (GST) from April 1, as the tax has caused some uncertainty in the property market. He noted that there was no pre-GST rush as buyers have postponed their big-ticket purchases. “We foresee that about two months after GST, things will normalise. We think that in the second half of the year, purchases will pick up again, given the right products,” said Khor. For 2015, he said S P Setia will be selective in its product offering, focusing more on landed products priced RM800,000 and below. Of its sales target of RM4.6 billion for the year, S P Setia expects local sales to account for approximately RM2.8 billion or 60%, driven by its developments in Penang, the Klang Valley and Johor. Khor said the property market in Johor is challenging and that “the game has changed” with the entry of Chinese developers. “At the moment, there appears to be an ample supply of high-rises. For us, we have concentrated on landed properties. Long-term wise, depending on how the state government and Singapore work together, I think there will be a future for the property market there,” he said. Meanwhile, the balance 40% or RM1.8 billion of its target will comprise sales of its foreign developments, supported mainly by its £8 billion (RM43.63 billion) gross development value Battersea Power Station project.

George Kent ‘fortunate’ for not getting into O&G BY C HE S TE R TAY

KUALA LUMPUR: George Kent (Malaysia) Bhd deemed itself “fortunate” for not jumping into the oil and gas (O&G) market, which is now facing a slump in oil prices. “I think we can consider ourselves fortunate for not venturing into the O&G business, given that the industry is now not conducive,” its executive director Bernie Ooi Chin Khoon told a news conference yesterday to announce the group’s financial results for the fourth quarter ended January (4QFY15). George Kent chairman Tan Sri Tan Kay Hock had in August last year said the group was looking to diversify its presence into the O&G sector. Brent crude oil is now hovering at US$59 (RM216.53) a barrel. Ooi also clarified that its joint venture (JV) partner Lion Pacific Sdn Bhd is still involved in one

of the work packages for the Ampang LRT Line Extension. Market talk is that the engineers who are conducting the system works for the Ampang LRT Extension are from CMC Engineering Sdn Bhd, and not Lion Pacific. George Kent (fundamental: 2.1; valuation: 2.4) had in August 2012 won the RM955.84 million system works contract in a JV with Lion Pac, from Prasarana Malaysia Bhd. During the briefing, Ooi conceded there was a dip in the group’s 4QFY15 net profit, but said George Kent is in the midst of bidding for other contracts. “One of them is the RM9 billion LRT Line 3 project delivery partner (PDP) contract, which we are tendering with MRCB (Malaysian Resources Corp Bhd),” he said. George Kent saw its 4QFY15 net profit fall 55.23% year-on-year to RM8.28 million, from RM18.48 million a year ago. Asked whether the George Kent-MRCB JV as reported by

The Edge weekly on March 23, 2015 was one of the six shortlisted PDP companies, Ooi neither confirmed nor denied it. The Edge weekly reported that George Kent was one of the six shortlisted candidates for the role of PDP by Prasarana for the development of the proposed LRT 3 project. George Kent shares closed unchanged at RM1.27 yesterday, giving it a market capitalisation of RM390.53 million. The Edge Research’s fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations. Go to www.theedgemarkets.com for more details on a company’s financial dashboard.

HOME BUSINESS 9

F R I DAY MA RC H 27, 2015 • T HEED G E FINA NCIA L DA ILY

IMF: M’sia needs to overcome dip in economic growth To prepare itself for becoming a high-income nation by 2020 BY SUPRIYA SURENDRAN & JENNY NG

KUALA LUMPUR: Malaysia needs to overcome the dip in economic growth in order to prepare itself for becoming a high-income nation by 2020, according to International Monetary Fund (IMF) first deputy managing director David Lipton. The government had forecast the country’s economy to grow between 4.5% and 5.5% this year due to the decline in oil prices, compared with its earlier growth forecast of between 5% and 6%. “The biggest challenge for Malaysia is to overcome its dip in economic growth, and to restore it to [past levels] and sustain it. “Through its 2020 economic convergence ambition, Malaysia plans to grow from a middle-income country to a high-income country with a per capita gross domestic product (GDP) rising to about US$15,000 (RM55,088) and that is [also] a chal-

lenge that the Malaysian government needs to take on,” he told The Edge Financial Daily in an interview. He emphasised that sound macroeconomic policies are just the foundation for economic growth, beyond that there is a need for a highly educated population, as well as infrastructure and research and development that will drive Malaysia to become a technology powerhouse as it aims to become a high-income nation. Lipton, who was in town for the recently-concluded 19th Asean Finance Ministers’ Meeting, had earlier said in his keynote address at a dinner organised by Bank Negara Malaysia (BNM) that with sustained efforts to pursue further reforms, Malaysia’s income level in 2040 could reach that of the United Kingdom. Lipton commended the Malaysian government, in particular BNM, for maintaining the resilience of the Malaysian economy

amid falling crude oil prices. “The decline in oil prices is something that does negatively affect the Malaysian economy as it provides about 20% of export proceeds, and the government has taken action to protect the budget through a combination of fuel subsidies and the proposed goods and services tax, which help ensure that the budget is not impaired by the decline in oil prices,” he said. On the issue of deflation, which in broader terms refers to a general decline in prices often caused by a reduction in the supply of money or credit, Lipton said that it will not be a threat as the debt levels in the country are not as high in comparison with other countries. Malaysia’s inflation, as measured by the consumer price index, increased at a slower growth rate of 0.1% in February from a year earlier. Lipton said that deflation is dangerous in some places of the world,

such as countries in the eurozone that have reached high levels of indebtedness. “In those places, having deflation is problematic because it means real interest rates are high and growth is low, and debt may grow faster than the income of the people, but in countries that are growing rapidly and where debt is not so large, like Malaysia, deflation is not a dangerous phenomenon,” he said. He said that BNM plays a vital role in monitoring deflation via its monetary policy and other mandates with regards to economic growth and employment opportunities. On threats to the global economy that may impact Malaysia, Lipton said that geopolitical risks, such as the political tension between Russia and Ukraine, as well as the unrest in the Middle East may have an impact on the business sentiment in the country. “There are also a lot of large corporations that have done a lot of

Lipton: There could be some substantial interest rate increases that will affect capital flows, but I think that Malaysia has prepared itself well. Photo by Sam Fong

borrowing that may have some trouble repaying those debts, especially those in the energy sector, due to the falling oil prices.” “[Malaysia] should keep an eye out for this kind of global indebtedness, but [as I mentioned] having a flexible exchange rate serves as a shock absorber to these kind of risks,” he said.  He said that the global indebtedness is not a risk for Malaysia, but affects countries where government debt to GDP is high, and which need IMF programmes such as Greece, Ireland and Portugal. “High indebtedness can be a drag on growth, taking Greece for example, although they have just changed their government and have lowered their budget deficit, they still face the issue of how to cope with low growth and high debt, which may take them a few years to resolve,” said Lipton. 

10 H O M E B U S I N E S S

FR I DAY M ARC H 27, 2 0 1 5 • TH EEDGE F I N AN C I AL DAI LY

Digistar expects to turn around by end-2016

DGB Asia confident of returning to profit in FY15 after five years of losses BY C H E S T E R TAY

It is banking on recurring income from its various businesses BY Y EN N E FOO

KUALA LUMPUR: Loss-making information and communications technology (ICT) service provider Digistar Corp Bhd is banking on recurring income that it expects to start streaming in from its various businesses from next year onwards to turn the company around by end-2016. “Our businesses will help us return to profitability and we expect to turn around by the end of 2016,” Digistar group chief executive officer Datuk Wira Lee Wah Chong told reporters after the company’s annual general meeting yesterday. “We can keep on doing ICT work but these contracts are not enough for us. We want recurring income and everything we have done has been about getting a steady recurring income for the company and its shareholders,” he added. Besides the company’s core business of providing systems engineering and integration

solutions for the audio-visual, broadcasting and security sectors, Digistar has ventured into construction, property development, central monitoring system (CMS) services, interactive pay TV and telecommunication businesses. Despite the variety of its businesses, the company’s financial year ended September (FY14) still saw a net loss of RM5.65 million on the back of RM109.71 million in revenue. It continued its losing streak into the first quarter ended December (1QFY15) with a net loss of RM3.86 million and revenue of RM31.24 million. Lee said the losses were due to bond interest expense for the RM280 million bonds it issued to finance the construction of the Malaysian National Technology Advancement Centre (MTAC) in Melaka for the government. “We pay RM14 million to RM16 million interest for the bonds each year. That offsets any profit we make from our other operations,” he said. Lee expects this to change at

the end of next year as Digistar’s various businesses start to generate recurring income on top of its existing order book of approximately RM217 million. The company also has a tender book of RM350 million. He said Digistar will have a “stable income” stream from its 15-year concession from the government to provide asset management services for MTAC once the RM240 million construction project is completed in July 2016. Furthermore, its commercial development of The Imperial Heritage Hotel Melaka will be fully operational this year and Digistar is expecting the project to rake in RM25 million to RM30 million in revenue per annum. Digistar (fundamental: 1.05; valuation: 0.6) is also going to continue the expansion of its CMS business and intends to grow its customer base by more than threefold to 20,000 in two years. It is also in the process of acquiring three security solutions companies with a view to setting

up three more command centres. Two of the new command centres will be located in Sabah and Sarawak, which will effectively expand the company’s footprint in the two states. “The cost of monitoring one house and 1,000 houses in the same command centre is the same. Our goal is to acquire more customers and secure recurring income from them,” he said. Digistar’s counter closed up half a sen or 2.22% at 23 sen yesterday, with a market capitalisation of RM104.88 million. The Edge Research’s fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations. Go to www. theedgemarkets.com for details on a company’s financial dashboard.

Bina Puri gets boost from government contract BY SURIN MURUGIAH

KUALA LUMPUR: Bina Puri Holdings Bhd’s unbuilt order book has grown to RM2.11 billion after it clinched a RM291.16 million contract from the Energy, Green Technology and Water Ministry to build a sewage treatment plant at the existing Bunus regional sewage treatment plant site in Setapak, here. Bina Puri (fundamental: 0.15; valuation: 2.4) said its wholly-owned subsidiary Bina Puri Sdn Bhd had accepted a letter of award from the ministry last Friday for the

proposed project, which will take 18 months to complete. “With this award, we have managed to secure RM419.66 million in projects in the first quarter of 2015 and we believe there will be more opportunities to secure further projects by year end,” Bina Puri group managing director Tan Sri Tee Hock Seng said in a statement yesterday. The project is expected to contribute positively to the group’s net assets and earnings for the financial year ending December 2015. Tee said the proposed project on a 19.388ha site will increase the Bunus regional sewage treatment

plant’s treatment loading capacity to handle an additional sewage discharge of 750,000 residents in the vicinity. The treated sewerage water will be discharged into Sungai Gombak and ultimately Sungai Klang. “The laying of 36km of sewerage pipes that is included in the project will cater to the expected growth of residential and commercial real estate within Setapak,” Tee added. The Bunus project is part of the River of Life sewerage master plan for Greater Kuala Lumpur/Klang Valley under the National Key Economic Areas blueprint. Its mission

is to reduce the number of smaller treatment plants and to free up the land they are sitting on for commercial and residential purposes, green space and public gardens. Meanwhile, Tee said the Bina Puri group has been actively participating in tendering for projects both local and overseas, and will make the appropriate announcements on further projects secured to keep investors and the public informed from time to time. Bina Puri shares closed up 5.36% at 59 sen yesterday, bringing a market capitalisation of RM118.29 million.

No Bursa listing plans, says Aesseal chief BY CHESTE R TAY

Pickles says the company is comfortable with its current business structure. Photo by Shahrin Yahya

PUCHONG: Aesseal plc, a United Kingdom-based industrial pipe seal maker which counts notable Malaysian plantation firms as clients, has no plans to list on Bursa Malaysia. Aesseal chief executive officer Richard Pickles said the company, which counts IOI Corp Bhd and Kuala Lumpur Kepong Bhd as customers, is comfortable with its current business structure. The current business structure of Aesseal has helped its Malaysian unit achieve financial growth as the group capitalises on its new

We are going to capitalise on the Asean Economic Community.

regional hub here to expand within the Asean region. According to Aesseal operation director for Asia Koh Choon Siew, the group’s new regional headquarters would be an anchor to strate-

gise long-term business development plans for the group’s UK and Malaysia businesses. “We are going to capitalise on the Asean Economic Community, which is going for full implementation by January 2016. “Asean has tremendous growth potential for businesses and Aesseal is determined to work closely with all our business partners in the East Asian region to ensure we are able to positively contribute to the growth of the people in this region,” Koh told reporters after the launch of the new headquarters here yesterday.

KUALA LUMPUR: DGB Asia Bhd, which saw changes within its top leadership early this year, said it is already seeing results from the new direction and is confident of returning to profit for the current financial year ending September (FY15) after five years of losses. “We have been working very hard to widen our profit margin, and our first-quarter financial result is evident of our efforts,” managing director Datuk Dr Jacky Pang Chow Huat told The Edge Financial Daily over the phone. “Moving forward, we are confident that the remaining three financial quarters will be profitable as well,” he added. The ACE Market-listed automated identification and data capture solutions provider posted a net profit of RM139,000 for the first quarter ended December 2014 (1QFY15) compared with a net loss of RM538,000 a year ago. DGB Asia’s (fundamental: 1.65; valuation: 0.3) revenue, however, fell 32.5% to RM1.89 million from RM2.8 million in 1QFY14. “Higher revenue does not necessarily translate into higher profit all the time. For our case, since we took control of the management, we have seen an average of 20% increase in profit margin so far,” said Pang. Pang joined DGB Asia’s board as executive director in November 2013, and was subsequently redesignated to his current position in February this year. Notably, Pang is also the founder and managing director of another ACE Market-listed company, Sanichi Technology Bhd (fundamental: 0.9; valuation: 1.2), where he holds a 3.28% equity interest as at Jan 2. As of Sept 30 last year, Pang owned 3.68% of DGB Asia shares. The group is currently undertaking a renounceable rights issue to raise at least RM6.78 million to a maximum of RM35.52 million. “The issue price of 11 sen a share for our rights shares is favourable to shareholders, as it represents a 5.93% discount (to the theoretical ex-all price of DGB Asia shares of 11.69 sen based on the five-day volume weighted average market price of DGB Asia shares up to and including March 18 of 14.12 sen), so we hope shareholders will subscribe to it,” Pang said. He added that the proceeds will be used to expand DGB Asia’s businesses in Thailand and Vietnam. “Currently, we are doing business through our partners there. With this money, we will be able to reduce our reliance on them, which would increase our margin further,” he explained. DGB Asia shares rose 13.04% to close at 13 sen yesterday, bringing a market capitalisation of RM21.19 million. Sanichi’s share price climbed 5.26% to 10 sen, with a market cap of RM101.39 million.

ST O C KS W I T H M O M E N T U M 11

F R I DAY MA RC H 27, 2015 • T HEED G E FINA NCIA L DA ILY

This column is an analysis done by Asia Analytica Sdn Bhd on the fundamentals of stocks with momentum that were picked up using proprietary algorithm by Anticipatory Analytics Sdn Bhd and that first appeared at www.theedgemarkets.com. Please exercise your own judgment or seek professional advice for your specific investment needs. We are not responsible for your investment decisions. Our shareholders, directors and employees may have positions in any of the stocks mentioned.

CAN-ONE BHD (+ve)

CAN-ONE BHD (ALL FIGURES IN MYR MIL)

CAN-ONE (Fundamental: 1.1/3; Valuation: 1.2/3) saw its share price rise 9.8% to RM2.90 yesterday on heavy volume. The stock appears cheap from a breakup value perspective. Its 32.9% stake in Kian Joo, worth RM454.5 million at current price of RM3.11, is more than its current market capitalisation of RM442.0 million. In 2013, Can-One proposed to sell its stake in Kian Joo to Aspire Insight for RM1.47 billion or RM3.30 per share. However, the sale CAN-ONE BHD

has been tied up by legal suits. The offer price is deemed low as Kian Joo commands a 70% market share in domestic aluminium can business and some of its properties have not been revalued since 2009. Can-One manufactures tin cans, plastic jerry cans, bag-in-box, dairy and non-dairy products. It has net debt of RM420.3 million. Excluding its share of net assets in Kian Joo, Can-One’s net assets stood at RM439 million or about RM2.88 per share. Valuation score* 1.20 1.10 Fundamental score** 6.31 TTM P/E (x) (0.75) TTM PEG (x) 0.77 P/NAV (x) 1.89 TTM Dividend yield (%) 402.34 Market capitalisation (mil) 152.40 Shares outstanding (ex-treasury) mil 1.09 Beta 1.94-3.14 12-month price range *Valuation score - Composite measure of historical return & valuation **Fundamental score - Composite measure of balance sheet strength & profitability Note: A score of 3.0 is the best to have and 0.0 is the worst to have

EKOWOOD INTERNATIONAL BHD (+ve) SHARES for hardwood flooring manufacturer, Ekowood (Fundamental: 1.05/3 Valuation: 1.2/3) gained nearly 11.3% yesterday to close at 24.5 sen. Over 5.8 million shares changed hands, well above the longer-term daily average of 233,773 shares. Most furniture stocks have done well, thanks to the weaker ringgit and appreciating overseas demand. However, Ekowood reported gloomy results last month. Indeed, the company has been in the red since EKOWOOD INTERNATIONAL BHD

the global financial crisis. Net loss totaled RM6.7 million last year. Revenue continued to decline y-y due to the downsizing of operations in Europe and higher discounts given to customers. It has shifted focus to the domestic market, now about 39% of total sales, since demand collapsed in Europe, previously its main market. It has also been selling more to the US and Asian markets. The strategy has, however, yet to yield results. Ekowood is 67.5% owned by plantation company, TSH Resources. Valuation score* 1.20 1.05 Fundamental score** TTM P/E (x) TTM PEG (x) 0.32 P/NAV (x) TTM Dividend yield (%) 36.96 Market capitalisation (mil) Shares outstanding (ex-treasury) mil 168.00 1.12 Beta 0.19-0.36 12-month price range *Valuation score - Composite measure of historical return & valuation **Fundamental score - Composite measure of balance sheet strength & profitability Note: A score of 3.0 is the best to have and 0.0 is the worst to have

LCTH CORPORATION BHD (+ve) LCTH (Fundamental: 2.5/3, Valuation: 1.2/3) manufactures precision plastic components and fabricates precision mould and dies. The company’s shares gained 11% yesterday, closing at a historical high of 40.5 sen. LCTH fell into the red in 2010, due, in part, to the loss of a major customer and the resulting dip in utilisation. It managed to fill this vacuum by securing a key MNC customer by end-2011. Revenue increased but it remained loss-making. LCTH CORPORATION BHD

In 2013, LCTH posted a net profit of RM15.8 million for FY2013, thanks to one-off RM18.6 million gain on disposal of assets. Revenue slumped 39% y-y in 2014, but underlying operations improved as the company focused on higher margin projects following a restructuring exercise in the previous year. As end-December 2014, LCTH has net cash of RM98.5 million or 27 sen per share, equivalent to 67% of its current share price. No dividends were paid since 2010. Valuation score* 1.20 2.50 Fundamental score** 13.34 TTM P/E (x) (0.35) TTM PEG (x) 0.70 P/NAV (x) TTM Dividend yield (%) 131.40 Market capitalisation (mil) Shares outstanding (ex-treasury) mil 360.00 1.44 Beta 0.21-0.37 12-month price range *Valuation score - Composite measure of historical return & valuation **Fundamental score - Composite measure of balance sheet strength & profitability Note: A score of 3.0 is the best to have and 0.0 is the worst to have

Financials Turnover EBITDA Interest expense Pre-tax profit Net profit - owners of company Fixed assets - PPE Total assets Shareholders' fund Gross borrowings Net debt/(cash)

CAN-ONE BHD RATIOS

DPS (MYR) Net asset per share (MYR) ROE (%) Turnover growth (%) Net profit growth (%) Net margin (%) ROA (%) Current ratio (x) Gearing (%) Interest cover (x)

EKOWOOD INTERNATIONAL BHD (ALL FIGURES IN MYR MIL)

Financials Turnover EBITDA Interest expense Pre-tax profit Net profit - owners of company Fixed assets - PPE Total assets Shareholders' fund Gross borrowings Net debt/(cash)

EKOWOOD INTERNATIONAL BHD RATIOS

DPS (MYR) Net asset per share (MYR) ROE (%) Turnover growth (%) Net profit growth (%) Net margin (%) ROA (%) Current ratio (x) Gearing (%) Interest cover (x)

LCTH CORPORATION BHD (ALL FIGURES IN MYR MIL)

Financials Turnover EBITDA Interest expense Pre-tax profit Net profit - owners of company Fixed assets - PPE Total assets Shareholders' fund Gross borrowings Net debt/(cash)

LCTH CORPORATION BHD RATIOS

DPS (MYR) Net asset per share (MYR) ROE (%) Turnover growth (%) Net profit growth (%) Net margin (%) ROA (%) Current ratio (x) Gearing (%) Interest cover (x)

FY11

FY12

FY13

FY2014Q4

31/12/2011

31/12/2012

31/12/2013

31/12/2014

630.98 63.51 9.18 41.91 32.41 255.15 336.93 228.65 247.45 215.69

789.82 (6.18) 22.79 194.88 170.73 281.42 747.42 396.98 454.66 402.31

772.88 92.48 20.64 93.96 69.67 287.15 811.50 460.61 430.18 392.16

249.96 30.96 5.02 33.93 26.48 301.46 849.87 520.81 526.44 420.29

FY11

FY12

31/12/2011

31/12/2012

31/12/2013

FY13 ROLLING 12-MTH

0.03 1.50 15.48 40.51 66.72 5.14 10.44 1.35 94.33 6.92

0.04 2.60 54.58 25.17 426.72 21.62 31.49 1.42 101.34 (0.27)

0.05 3.02 16.25 (2.14) (59.19) 9.01 8.94 1.59 85.14 4.48

0.05 3.42 13.74 16.31 (8.46) 7.09 7.92 1.35 80.70 4.68

FY11

FY12

FY13

FY2014Q4

31/12/2011

31/12/2012

31/12/2013

31/12/2014

48.76 (4.84) 0.64 (9.35) (8.60) 51.29 130.38 126.97 14.16 11.96

41.89 (3.31) 0.69 (6.95) (6.49) 47.82 122.99 120.09 14.29 12.31

49.71 0.72 0.71 (3.47) (3.35) 44.62 120.79 118.85 18.10 15.26

10.32 234.30 241.15 (4.36) (4.23) 41.13 113.54 115.36 19.30 16.99

FY11

FY12

31/12/2011

31/12/2012

31/12/2013

FY13 ROLLING 12-MTH

0.76 (6.55) (25.81) (17.63) (6.37) 4.50 9.42 (7.60)

0.71 (5.25) (14.08) (15.49) (5.12) 4.10 10.25 (4.78)

0.71 (2.81) 18.67 (6.74) (2.75) 4.01 12.84 1.02

0.69 (5.64) (13.45) (15.47) (5.56) 3.83 14.73 2.74

FY11

FY12

FY13

FY2014Q4

31/12/2011

31/12/2012

31/12/2013

31/12/2014

116.32 (16.09) 0.01 (21.52) (19.18) 49.53 184.25 181.90 (61.81)

287.44 (20.17) 0.01 (27.92) (23.47) 38.39 159.77 158.42 (54.61)

206.61 20.05 16.89 15.81 22.70 175.32 174.23 (107.88)

30.85 6.22 4.42 2.89 41.73 188.18 187.14 0.04 (98.54)

FY11

FY12

31/12/2011

31/12/2012

31/12/2013

FY13 ROLLING 12-MTH

0.51 (10.02) (10.66) (16.49) (9.81) 3.04 (2,011.45)

0.44 (13.79) 147.11 (8.17) (13.65) 3.04 (3,538.63)

0.48 9.50 (28.12) 7.65 9.44 4.87 4,557.46

0.52 5.64 (38.98) (37.67) 7.82 5.60 4.44 5,079.33

1 2 I N V E ST I N G I D E A S

FR I DAY M ARC H 27, 2 0 1 5 • TH EEDGE FI N AN C I AL DAI LY

Note: This report is brought to you by Asia Analytica Sdn Bhd, a licensed investment adviser. Please exercise your own judgment or seek professional advice for your specific investment needs. We are not responsible for your investment decisions. Our shareholders, directors and employees may have positions in any of the stocks mentioned.

I N S I D E R A S I A’S S TO C K O F T H E D AY

OCEANCASH PACIFIC BHD OCEANCASH (Fundamental: 1.4/3, Valuation: 0.6/3) was first recommended by InsiderAsia back in October 2014. The stock did well, rising from 29.5 sen to a high of 40.6 sen in November but has since retraced to the current 35 sen. Part of this could be due to its latest 4Q14 earnings results. Whilst revenue increased 6% to RM72.80 million, net profit was down some 24.5% to RM4.91 million. The results included a one-off loss on disposal of machinery amounting to RM1.72 million in 3Q14. Excluding this, Oceancash’s net profit would be 1.9% higher at RM6.63 million compared to RM6.50 million in 2013. To be sure, this growth is not exciting. But we believe the company has good prospects. Underlying earnings have been rising steadily over the past four years, EBITDA OCEANCASH PACIFIC BHD

margins are consistently in the double digits, ranging between 14-18%. Net gearing is low at 5.57%. Oceancash has a stronghold in a niche segment and a large target market. The company manufactures (and exports) resinated and thermoplastic felts, noise and carpet underlays, that function as heat and sound insulators. It also produces non-woven products used in baby diapers and sanitary cloth products. The company has plants in Malaysia and Indonesia and in 2012, established a trading company in China. Whilst the barriers to entry to manufacture these products are low, Oceancash has significant competitive advantage in having established long relationships with its major customers. The company will start a new felt production line in Indonesia this year and transfer an existing line to Bangkok. This is aimed to address the expanding automobile and property markets as well as to improve cost efficiency. The stock is trading at decent trailing 12-month P/E of 14.75 times and a priceto-book ratio of 1.25 times with a market capitalisation of RM72.48 million. Its dividend payout increased from 0.2 sen in 2011 to 0.6 sen per share in 2014, which translates to a modest 1.85% yield.

Insider Asia will feature a new stock pick on every alternate day.

T O N G ’S MOMENTUM P O RT F O L I O TOTAL value for my portfolio dipped 0.48% yesterday, to RM97,846.06, dragged down by losses on Ekowood International and Comintel Corporation. By comparison, the FBM KLCI was flat at 1,818.42. Market breath was slightly positive with gainers outnumbering decliners by a ratio of 1.1-to-1. Regional markets finished mostly lower, following steep overnight losses on Wall Street. The DJIA and the S&P 500 dropped 1.62% and 1.46%, respectively, on the back of soft economic data. Elsewhere, Japan’s Nikkei 225 index lost 1.39% while the Hang Seng index was down 0.13%. Crude oil futures rose sharply with the WTI gaining 4.59% to US$ 51.47, at the point of writing, fuelled by escalating tension in the Middle East. On Thursday, Saudi Arabia and its Gulf Arab allies launched military operations against rebels in neighbouring Yemen. Meanwhile, the ringgit strengthened to RM3.66 against the greenback. Undermined by weaker economic data, the dollar index, which measures the value of USD against a basket of currencies, fell 0.72% to 96.28. My portfolio is down 2.2% since inception. Despite the loss, I am still outperforming the FBM KLCI, which lost 3.9% over the same period.

OCEANCASH PACIFIC BHD

FY11

FY12

FY13

FY2014Q4

(ALL FIGURES IN MYR MIL)

31/12/2011

31/12/2012

31/12/2013

31/12/2014

58.06 7.93 3.53 4.39 0.01 0.89 3.51 2.15

58.88 9.50 4.09 5.41 0.01 1.07 4.36 2.62

68.58 12.33 3.86 8.47 0.02 0.70 7.79 6.50

17.81 2.62 0.60 2.02 0.03 0.12 1.92 1.80

42.96 6.68 27.12 12.33 21.67 50.87 42.00 6.35

39.16 7.17 26.86 10.53 17.99 50.41 43.88 4.20

34.51 13.13 34.97 12.32 18.78 53.25 49.25 1.98

44.35 10.25 32.05 12.75 16.90 62.18 58.05 0.74

Income Statement Turnover EBITDA Depreciation EBIT Associates Interest income Interest expense Extraordinary gain/(loss) Pre-tax profit Net profit - owners of company Balance sheet Fixed assets - PPE Biological assets Intangibles & goodwill Cash and equivalents Total current assets ST borrowings Total current liabilities Total assets Shareholders' fund Long term borrowings

OCEANCASH PACIFIC BHD RATIOS

DPS (MYR) Net asset per share (MYR) ROE (%) Turnover growth (%) Net profit growth (%) Net margin (%) ROA (%) Current ratio (x) Gearing (%) Interest cover (x)

QUANTITY

BOUGHT PRICE RM

42,500

0.235

FY11

FY12

31/12/2011

31/12/2012

31/12/2013

0.19 5.22 4.04 18.70 3.70 4.42 1.25 28.56 8.94

0.20 6.11 1.41 22.11 4.45 5.18 1.49 17.24 8.92

0.22 13.97 16.48 148.07 9.48 12.55 1.86 2.39 17.51

BOUGHT VALUE CURRENT PRICE RM RM

FY13 ROLLING 12-MTH

0.01 0.26 9.65 5.99 (24.45) 6.75 8.87 1.90 5.58 18.70

CURRENT VALUE RM

GAIN / LOSS RM

% GAIN / LOSS

9,988

-

0.0%

Shares held: Comintel Corporation Bhd

Total shares held

0.235

--------------9,987.5

Total Shares bought: Ekowood International Bhd Can-One Bhd

9,987.50

39,200 3,400

0.255 2.86

9,996.00 9,724.00 --------------29,707.5

--------------- --------------9,987.5 -

0.245 2.900

9,604 (392) 9,860 136 --------------- --------------29,451.5 (256.0)

(3.9%) 1.4%

Shares sold: No shares were sold today.

Total brokerage, fees and duties paid Net cash balance

1,886.4 68,394.6

Realised profits / (losses)

(11.5)

Day’s change Portfolio FBMKLCI Portfolio returns since inception Portfolio returns (annualised) Portfolio Beta Risk adjusted returns since inception

(0.48%) (0.04%) 100,000.00

97,846.1

(2,153.9)

(2.2%) (3.0%) 1.10 (2.7%)

• Portfolio will buy stocks with positive Comparative Performance Portfolio at start Current Change Portfolio’s outperformance momentum on the day FBM KLCI 1,892.65 1,818.42 (3.9%) 1.8% • Stocks in portfolio will be divested when FBM KLCI Emas 13,163.69 12,482.28 (5.2%) 3.0% they exhibit negative momentum • Otherwise, stocks will be divested within This is a personal portfolio for information purposes only and does not constitute a recommendation or solicitation or expression of views to influence readers to buy/sell any stocks. Portfolio started on 8 July 2014 with RM100,000. a max 4-day holding period

14 B R O K E R S’ C A L L / T E C H N I C A L S

FR I DAY M ARC H 27, 2 0 1 5 • TH EEDGE F I N AN C I AL DAI LY

Decline ahead of 1Q15 window-dressing activities BY LEE CHENG HOOI

U

S markets ended much lower on Wednesday after a poorer set of durable goods figures for February dampened American fund managers’ sentiment. The S&P 500 Index plunged 30.45 points to 2,061.05 points while the Dow tumbled 292.6 points to end at 17,718.54. The FBM KLCI moved in a volatile and narrow range of 23.89 points for the week with higher volumes of 1.95 billion to 2.44 billion shares traded. The index closed at 1,818.42 on March 26, down 0.68 of a point from the previous day as blue-chip stocks like British American Tobacco (M) Bhd, Hong Leong Financial Group Bhd, Kuala Lumpur Kepong Bhd, Petronas Chemicals Group Bhd and UMW Holdings Bhd caused the index to decline on miniscule profit-taking activities ahead of potential window dressing in the first quarter of 2015 (1Q15). The ringgit was marginally firmer against the US dollar at 3.6620 as Brent crude oil remained slightly firmer at US$56.37 (RM206.87) per barrel. The index rose on a rally from the 801.27 low (October 2008) to its 1,896.23 all-time high (July 2014) and it represents an extended Elliott Wave “flat” rebound in a “pseudo-bull” rise completed. The next few months’ index price movements since July 2014 had key swings of 1,837.28 (low), 1,879.62 (high), 1,766.22 (low), 1,858.09 (high), 1,671.82 (low), 1,810.21 (high), 1,706.18 (low), 1,831.41 (high) and 1,774.30 (low). All the index’s daily signals are

marginally positive for now, with its CCI, DMI, MACD, Oscillator and Stochastic indicators showing upbeat readings. As such, the index’s obvious support levels are seen at 1,774, 1,800 and 1,818, while the resistance areas of 1,823, 1,831 and 1,896 will cap any index rebound.

The KLCI’s 18 and 40 simple moving averages (SMA) depict an emerging uptrend for its daily chart. However, the price bars of the index are now between the 50 and 200 SMA and remained neutral on that front. The recent fall from its all-time high of 1,896.23 saw a trough at 1,671.82. The price rebound from 1,671.82 stalled at 1,831.41 (on Feb 4) and remains below the 200-SMA line of 1,822.81.

Due to the rebound tone for the KLCI, we are recommending a chart “buy” on CCM Duopharma Biotech Bhd (CCMDBIO). The stock rose sharply over the past fortnight after posting a strong set of quarterly results. Looking at the most recent fourth quarter of financial year 2014 (4QFY14) results announcement, the group recorded an increase of 8.9% year-on-year to RM176.9 million from RM162.4 million in 4QFY13. Correspondingly, profit-before-tax also rose by about 15.7% in 4QFY14 from RM40.2 million to RM46.5 million. The stronger profitability can be attributed to the increased demand from government hospitals. Further to the results announcement, CCMDBIO highlighted that demand in the pharmaceutical industry is expected to remain stable due to the defensive nature of the industry. However, demand may fluctuate especially for supply to government hospi-

Maxis dividend per share forecast lowered

The daily, weekly and monthly indicators (like the CCI, DMI, MACD, Stochastic and Oscillator) have issued buy signals and now depict very firm indications of CCMDBIO’s eventual move towards much higher levels. It would attract firm buying activities at the support levels of RM3.33, RM3.37 and RM3.80. We expect CCMDBIO to witness some profit-taking at its resistance and alltime high of RM3.84. Its upside targets are located at RM3.88, RM4.63, RM4.98, RM5.22 and RM6.20. Lee Cheng Hooi is the regional chartist at Maybank Kim Eng. The views expressed in the article are the opinions of the writer and should not be construed as investment advice. Please exercise your own judgment or seek professional advice for your investment decisions. Technical report appears every Wednesday and Friday.

Maxis Bhd FYE DEC (RM MIL)

SAM FONG

Maxis Bhd (March 26, RM7.15) Maintain hold with unchanged target price of RM7.19. We think that Maxis is on the right track to further operational improvement as customer experience and satisfaction are once again prioritised. For 2015, Maxis is expected to register single-digit service revenue growth as it regains lost ground both in the postpaid and prepaid segments. We, nevertheless, think that any sharp earning upgrades in the near term would likely be challenging considering that the other incumbent operators are pursuing similar strategies to grow revenue share. Operations aside, we believe the biggest concern surrounding Maxis

tals via the tender process. A check of the Bloomberg consensus reveals that no research house covers the stock. CCMDBIO currently trades at a fair historical price-earnings ratio of 14.8 times. Its price-tobook value ratio of 2.72 times indicates that its share price is trading at a steep premium to its book value. It gives a high dividend yield of 4.9%. CCMDBIO’s chart trend on the daily, weekly and monthly time frames is very firmly up. Its share price has made a good surge since its major monthly Wave-2 low of RM1.24 in October 2008. Since that RM1.28 low, CCMDBIO surged to its March 2015 recent all-time high of RM3.84. As prices broke above their recent key critical resistance levels of RM3.33 and RM3.37, look to buy CCMDBIO on any dips to its support areas as the moving averages depict very firm short- to long-term uptrends for this stock.

Revenue Ebitda Pre-tax profit Net profit EPS (sen) PER (x) Core net profit Core EPS (sen) Core EPS growth (%) Core PER (x) Net DPS (sen) Dividend yield (%) EV/Ebitda (x) Affin/Consensus (x)

2013

2014

2015E

2016E

2017E

9,084.0 4,573.0 2,496.0 1,765.0 23.5 30.4 2,097.0 27.9 2.3 25.6 40.0 5.6 13.4

8,389.0 4,296.0 2,436.0 1,721.0 22.9 31.2 1,910.0 25.4 (8.9) 28.1 40.0 5.6 14.6

8,607.9 4,312.5 2,665.5 1,968.4 26.2 27.3 1,968.4 26.2 3.1 27.3 26.0 3.6 14.5 1.0

8,724.9 4,353.7 2,760.1 2,038.5 27.2 26.3 2,038.5 27.2 3.6 26.3 27.0 3.8 14.4 1.0

8,831.0 4,415.5 2,934.3 2,167.4 28.9 24.8 2,167.4 28.9 6.3 24.8 28.0 3.9 14.2 1.0

Source: Company, Affin Hwang estimates, Bloomberg

at this point is the dividend quantum for 2015. Management has guided that it will no longer borrow to fund the dividend payment and thus the consistent 40 sen per share annual payout from 2010 to 2014 is unlikely to be repeated.

This has created some uncertainty and judging by consensus 2015 dividend per share (DPS) expectations of 19 sen to 40 sen, there may be some disappointment in store. We lower our 2015 to 2017 DPS forecast to 26 sen to 28 sen from 32 sen, taking into account its free cash

flow and payout ratio. At a DPS of 26 sen, yields of 4% are also less compelling and at the lower end of the sector average. On the whole, the market seems to be paying little attention to Maxis’ dividend issue, considering its

Maxis’ share-price appreciation of 4.4% year-to-date. Fund flows and portfolio reallocation could be a reason behind this and may continue to be an overbearing factor. — Affin Hwang Capital, March 26

B R O K E R S’ C A L L 15

F R I DAY MA RC H 27, 2015 • T HEED G E FINA NCIA L DA ILY

Hil Industries to expand land bank Hil Industries Bhd (March 26, RM1.01) Non-rated with a fair value of RM1.18. Hil Industries, a leading custom injection moulder of engineering plastics, is well-positioned to benefit from the lower cost of plastic resin and high demand for Perusahaan Otomobil Kedua Sdn Bhd’s (Perodua) Axia, while its successful property ventures into affordable housing enabled the group’s earnings to grow impressively. The manufacturing division of the group is involved in plastic injection moulding which produces plastic original equipment manufacturer (OEM) parts mainly for automotive and IT-related products. Its customers include Perodua, Proton Holdings Bhd, Toyota Motor Corp, Honda Motor Co Ltd and others.

The manufacturing division posted encouraging results in the fourth quarter of financial year 2014 (4QFY14) when profit before tax of the division climbed 32% quarter-on-quarter (q-o-q), lifted by spillover demand for OEM parts amid strong sales of Perodua Axia. We expect the well-received Perodua Axia to continue driving the earnings growth of the division. Meanwhile, the group is poised to benefit from the falling crude oil prices as the price of its major cost component — plastic resin, which is a by-product of crude oil, has fallen. The group has made its foray into property development in the Klang Valley in the past few years. Its maiden property project of the group in Shah Alam, Selangor, with a total gross development value (GDV) of RM110 million has enjoyed a

good take-up rate of at least 90%, as the group offers mainly affordable housing such as terraced houses, cluster semi-dees and semi-dees. Moving forward, the group remains focused on offering affordable housing in Shah Alam by having two property projects in the pipeline with a total GDV of RM105 million, which will be launched in the second half of this year. We are optimistic about the outlook for the group’s property division despite the weak sentiment in the property market as the group is mainly selling affordable housing which will be less affected by the tepid sentiment. The group posted encouraging earnings in 4QFY14 recently where its 4QFY14 earnings jumped 264% year-on-year (y-o-y) and 47% q-o-q, mainly driven by the ballooning

Hil Industries Bhd 2012 (RM’000)

2013 (RM’000)

2014 (RM’000)

2015F (RM’000)

2016F (RM’000)

Revenue 79,732 81,650 136,405 148,080 155,640 Gross profit 10,153 13,916 34,887 40,277 41,867 Profit before tax 573 5,518 26,618 34,165 36,805 Net profit (3,119) 2,787 19,713 25,496 27,494 (1.12) 1.00 7.07 9.15 9.86 EPS (sen) na 98.50 13.9 10.77 9.99 PER (x) 0 0 1.5 2.3 2.5 Dividend per share (sen) 0 0 1.5 2.3 2.5 Dividend yield (%) (1.2) 1.0 6.8 7.7 7.8 ROE (%) Net gearing Net cash Net cash Net cash Net cash Net cash Profit before tax 0.7 6.8 19.5 23.1 23.6 margin (%) na na 607.3 29.3 7.8 Net profit growth (%) Source: Company, JF Apex

earnings’ contribution from property division and improved performance in the manufacturing division. That lifted full-year earnings in FY14 to grow at an impressive 641% y-o-y. On earnings outlook, we estimate the group’s earnings in FY15 to grow at 29%, underpinned by strong unbilled sales of RM50 million, a slew of property launches in the pipeline, and an improving margin for the manufacturing division pursuant to lower cost of plastic resin. The group is in the midst of expanding its land bank by targeting

a piece of land in Klang for property development. We understand that the land size is around 30 acres (12ha) which could potentially contribute a GDV of RM190 million if the deal materialises. We reckon that the potential land acquisition would serve as a catalyst to the group and further propel the earnings growth in property division going forward. The funding for the potential land acquisition is not an issue for the group in view of its net cash position with total cash of RM108 million in its coffers. — JF Apex, March 26

16 H O M E

FR I DAY M ARC H 27, 2 0 1 5 • TH EEDGE F I N AN C I AL DAI LY

Hudud for all; or none, say analyst and lawyers Such problems have little to do with faith but with governance BY SHERI DA N MAHAV ERA

KUALA LUMPUR: A closer look at Kelantan’s new hudud law reveals practical obstacles that would make it unrealistic to implement, according to lawyers and an analyst, who said such problems had little to do with faith but with governance. Besides medieval punishments such as crucifixion and stoning, Malaysia would probably have to issue a travel warning for all non-Muslims going to Kelantan if the state enforces its Syariah Criminal Code, or hudud, observed political scientist Dr Wong Chin Huat. Such a warning would likely require non-Muslims to be accompanied by a minimum of two Muslim adult males at all times while in the PAS-led state. This is because if non-Muslims were to be robbed in Kelantan, the code does not allow them to give testimony in court. This is just one of the obstacles to the enforcement of the Kelantan Syariah Criminal Code II 1993 (Amended 2015), which states that only male Muslims who are past puberty can be witnesses and testify in crimes such as robbery and murder involving Muslims in the state. Such a provision in the code is among several others that make Kelantan PAS’ contentious new law problematic in itself, said Wong of the think tank Penang Institute, as well as other analysts and lawyers

The Malaysian Insider spoke to. Wong said the Kelantan law, if it is allowed to be enforced by Parliament, would create “legal apartheid” in Malaysia and virtually split Malaysians. “The issues with the enactment are of governance, not of faith,” said Wong, who heads the institute’s political and social research section. Divinely inspired? Lawyer Latheefa Koya takes that point one step further, arguing that because the enactment is a creation of PAS’ jurists, it cannot be seen as God’s law and therefore beyond reproach. The code is supposed to be used on all Muslims in Kelantan, and covers six types of crimes — sariqah (theft), hirabah (assault and robbery), zina (adultery), qazaf (unsubstantiated accusations of zina), shurb (consumption of alcohol) and irtidad (apostasy). Latheefa refutes PAS’ claims that the code’s hudud and qisas punishments are based on Islam’s holy text, the Quran. She outlines several discrepancies between the Quran and the Kelantan Code. Unlike the PAS enactment, in the holy Quran there is no punishment for apostasy; no mention at all of stoning; different requirements for amputation of limbs and crucifixion; different requirements for witnesses in rape and zina. “Anything different and outside

the Quran must not and cannot be passed as hudud. It is interference with the Quran,” said Latheefa, who is a PKR central committee member. Hudud affects everyone Not only will non-Muslims be affected, but women, even Muslim women, have cause for concern under Kelantan’s hudud code if they are victims or witnesses to a crime. Section 39 to 42 of the code specifically states that all offences covered under it must be proven by testimonies from the accused and sworn oaths from witnesses. “There shall always be a minimum of two witnesses for all offences under this code except for the offence of zina. For zina, a minimum of four witnesses are required,” states Section 40(1). The following section 41(1) termed “conditions of being a witness” states that “each witness must be a Muslim male who is just and is past puberty”. There is no explanation in the code on how non-Muslims are supposed to testify in the Syariah Court as witnesses or victims to an offence. Also, there is nothing in the code to account for women witnesses and victims, and whether the testimonies of Muslim women can be used, lawyer Andrew Khoo said. If the code were to be used, there would also be problems with in-

vestigation procedures as the police would have to juggle between two sets of laws — the Kelantan Code and the Federal Penal Code, said Wong. Kelantan PAS, he said, had failed to take into account that crimes do not exclusively occur among Muslims but also among people of different faiths. “That’s why hudud can only be for all people or it cannot be for anyone. It cannot just be applied for some people. If you carry out hudud, everyone in Kelantan will be affected.” Equality before the law But the biggest issue with the enactment itself was that Kelantan as a state is creating laws for criminal offences. “The constitution gives the federal government the jurisdiction over all types of criminal law,” said Khoo, referring to the separation of powers between the federal government and states. By comparison, Kelantan’s enactment is an attempt to create laws to deal with crimes such as theft, robbery and assault. It is in effect, a wholly separate criminal code. “I don’t think our founding fathers wanted a dual criminal justice system for Malaysia. “That would run counter to Article 8 of the Federal Constitution, which is that everyone is equal before the law.” — The Malaysian Insider

Hadi: Listen first to what I have to say on hudud KUALA LUMPUR: PAS president Datuk Seri Abdul Hadi Awang has asked everyone to listen first to what he has to say in Parliament on hudud before criticising him. “We are knowledgeable, civilised and matured creatures. So listen to what we want to say first. “Don’t jump to conclusions and criticise vociferously without knowing the whole story,” he said in a posting on Facebook, titled “Surat Terbuka Kepada Umat Islam: Isu Hudud Yang Dikelirukan” (Open letter to Muslims: The hudud issue that is being confused) yesterday morning. He was commenting on reports of a notice sent to Parliament on the tabling of a private member’s bill on the implementation of hudud in Kelantan. He added that what is being proposed by PAS through the private member’s bill is not a hudud bill, but amendments to the Syariah Court Act, which was only applicable to Muslims. Hadi said the enactment recently passed in the Kelantan state as-

Abdul Hadi: Don’t jump to conclusions and criticise vociferously without knowing the whole story. Photo by The Malaysian Insider

sembly had gone through various debates in the form of seminars and dialogues. He said it was later tabled at the Kelantan state assembly in 1993 as well as in Terengganu in 2000. In Kelantan, the call for hudud

laws to be implemented was strengthened through annual events to remind the public of the enactment. “Now, 20 years after PAS introduced this enactment, and carried out the education process on syariah

penal law among the people through dialogues and such, PAS would like to take the next step in the process to educate society on the laws of Islam in a comprehensive way. “The result is that today, insults on Islamic law have been isolated,” said Abdul Hadi in his first official reaction after sending a notice on March 18 to table a private member’s bill in Parliament on Kelantan’s hudud enactment. The notice, which Abdul Hadi served just before the March 18 deadline for the request to be made in Parliament, would allow him to table the bill to amend the Syariah Courts (Criminal Jurisdiction) Act 1965, or what is known as Act 355, paving the way for the implementation of hudud in Kelantan. — The Malaysian Insider

IN BRIEF Malaysia to ratify Arms Trade Treaty KUALA LUMPUR: Malaysia is in the process of ratifying the Arms Trade Treaty (ATT) to regulate international transfers of conventional arms to warring parties which plan or perpetrate war crimes. Foreign Ministry deputy secretary-general Datuk Ho May Yong said the ATT is known as an international legal instrument that establishes common binding international standards to regulate international trade in conventional arms. “Malaysia hopes that the ATT would achieve its two purposes, namely to contribute to international peace, security and stability, and reduce human suffering,” she said. — Bernama

Public sector home financing board bill tabled KUALA LUMPUR: The Public Sector Home Financing Board Bill 2015 was tabled for the first reading in the Dewan Rakyat yesterday. Deputy Finance Minister Datuk Ahmad Maslan, when tabling it, stated that the function of the board is to manage its funds and administer facilities for public sector home financing. The bill also included provisions on the appointment of board members, comprising the Treasury secretary-general as chairman, the attorney-general or his representative, the accountant-general or his representative, as well as the chief executive officer as an ex-officio member. — Bernama

‘Rulers did not make stand on Kelantan law’ KUALA LUMPUR: The Keeper of the Rulers’ Seal lodged a police report yesterday denying any statement had been issued on the stand of the Conference of Rulers on the proposed implementation of the hudud law in Kelantan. Datuk Seri Syed Danial Syed Ahmad said the report was made at the Jalan Travers police station to state that reports on the matter were untrue. “The Conference of Rulers has never discussed the matter at its meetings. “The office [of the Keeper of the Rulers’ Seal] did not issue a press statement dated March 25 on the matter,” he said in a statement yesterday. — Bernama

MACC to wrap up navy probe in two weeks KUALA LUMPUR: The Malaysian Anti-Corruption Commission (MACC) will complete the investigation papers on the recent case involving the supply of goods and equipment for the Royal Malaysian Navy in the next two weeks before any decision is made. MACC Investigation Division director Datuk Mohd Jamidan Abdullah said he would discuss with the Legal and Prosecution Division to determine the case of 16 individuals, including six navy personnel who were arrested in the investigation of the case. — Bernama

H O M E 17

F R I DAY MA RC H 27, 2015 • T HEED G E FINA NCIA L DA ILY

Guan Eng wins suit against dailies, Perkasa leader Khir (left) said in the report as opposition leader at that time, he may have tarnished and damaged Khalid’s (right) image, reputation and integrity being the menteri besar.

Penang chief minister awarded RM550,000 in damages THE MALAYSIAN INSIDER

BY V A NB A L AGA N

KUALA LUMPUR: The High Court awarded Penang Chief Minister Lim Guan Eng (pic) RM550,000 in damages yesterday against a senior Perkasa leader and three newspapers for claiming that he had leaked national secrets to Singapore’s ruling People’s Action Party (PAP) in 2011. Judge Datuk Nor Bee Ariffin said Guan Eng, who is DAP secretary-general, had proven his case against the defendants on the balance of probability. Guan Eng, represented by Americk Sidhu, filed the suit in June 2012, naming the New Straits Times, Utusan Malaysia, Perkasa information officer and Umno member Ruslan Kassim, Perkasa president Datuk Ibrahim Ali,

the then NST group editor Datuk Syed Nadzri Syed Harun, and Utusan group editor-in-chief Datuk Abdul Aziz Ishak as defendants. Perkasa was ordered to pay RM150,000, while the New Straits Times Press (M) Bhd, which owns

both the New Straits Times and Berita Harian, and Utusan Melayu (M) Bhd were ordered to pay RM200,000 each in damages. She also ordered the three defendants to pay costs amounting to RM20,000. The quantum is for the aggravated and exemplary damages caused to Guan Eng by the defendants for running a comment piece by Ruslan, who alleged that Guan Eng was a spy for Singapore and that he revealed national secrets to PAP leaders during a meeting in Singapore in August 2011. It was reported that the articles published by the three dailies on Oct 2, 2011, were based on a statement by Ruslan uploaded on the website pribumiperkasa.com. — The Malaysian Insider

Khir apologises to Khalid, defamation lawsuit settled SHAH ALAM: A defamation suit between two former Selangor menteris besar was settled when Dr Mohamad Khir Toyo apologised to Tan Sri Abdul Khalid Ibrahim at the Shah Alam High Court yesterday, the Star Online reported. “I sincerely offer my apologies to [Abdul] Khalid for the two statements I’ve made against him. “As the opposition leader at that time, I might have tarnished, damaged his image, reputation and integrity being the menteri besar,” Mohamad Khir was quoted as saying in the report. Mohamad Khir was the Selangor opposition leader from 2008 while Abdul Khalid led Selangor

until he resigned last year. The report said Abdul Khalid’s counsel, S N Nair, said both parties agreed on the apology and a settlement with costs. The cost was not disclosed. The report said the dispute revolved around two defamation suits filed by the two former Selangor menteris besar in 2009 over allegations related to Abdul Khalid’s personal vehicle and the purchase of 46 cows. It said the suits were also related to two articles bearing the allegations, which appeared in the New Straits Times and Utusan Malaysia in January the same year.—The Malaysian Insider

18 H O M E

FR I DAY M ARC H 27, 2 0 1 5 • TH EEDGE F I N AN C I AL DAI LY

Meet the scientist preparing Malaysia for 2050 Mega Science 3.0 project to get ready for the future in science, technology, innovation BY EL I ZA B ET H ZACHARIAH

KUALA LUMPUR: Dr Mazlan Othman, the founding director-general of the Malaysian National Space Agency, has an uphill task ahead of her as she attempts to steer Malaysia towards becoming a leading nation for science and technology by 2050. It is a good 35 years away, she told The Malaysian Insider in an interview recently, but the process of getting there will be a long and complicated one. The 64-year-old Mazlan is the project director of the Mega Science 3.0 project aimed at preparing Malaysia for the future in science, technology and innovation. Launched in January, Mega Science 3.0 is focused on five industries that raked in more than RM100 billion in 2013 — furniture, automotive, creative (media and arts), tourism as well as plastics and composites. The first step towards becoming a leading nation in these areas by 2050, Mazlan said, is to forecast the state of the nation by 2050. “In order to be the best in science and technology by 2050, we have to foresee and do some pre-

dictions of the future ... of what technologies and innovations we can expect then,” she said. “That’s how we can be ahead of the pack. And then we are able to lead.” The project is now at the “foresight” stage, in which a team is tasked with anticipating and foreseeing Malaysia’s future in 2050. “We already started this last year and we have already prepared the outlook that is to be Malaysia and how we envision it in 35 years’ time. “We expect this to be ready by September and from there, we can proceed to the next stage, where we plan and spell out the road map towards that future,” the astrophysicist said, adding that there are established techniques to create the foresight. Taking the automotive industry as an example, she said the team would research where the sector is heading globally before benchmarking the sector in the foresight report. “Then we adjust the foresighting and aim where we want to be in the automotive industry and then work out how we would work towards that. “Let’s talk about having driver-

All anti-GST rally detainees at customs complex released BY LOW HA N SHAUN

PETALING JAYA: Four people detained for allegedly insulting a police officer during an anti-goods and services tax (GST) rally have been released. Muhammad Zaki Sukery, one of the lawyers of the 25 released on bail earlier, said that the four were released without charge. “Khalid Mohd Ismath was released because he has been put under arrest for more than 24 hours. He was arrested earlier in the morning before the event occurred on Monday. The magistrate ordered him to be released as his further detention was unlawful. “All the three others were released yesterday (Wednesday) in stages after lunch,” he said. Earlier on Wednesday, 25 people, among the 29 who were accused of ignoring a police order to disperse at the sit-in outside the Customs Department office in Kelana Jaya, were released on bail of RM3,000 in one surety and must return to court on May 14

for a hearing. The charge under Section 21(1)(d) of the Peaceful Assembly Act 2012 states the circumstances under which the police have the power to order protesters to disperse. The anti-GST protest on Monday was organised by Parti Sosialis Malaysia and Gabungan Bantah GST, a coalition of activists opposed to the consumption tax. The goal of the sit-in was to get the Customs Department to answer some 100 questions on the GST which will be implemented on April 1. Police broke up the sit-in after 5pm and arrested 80 people then, while another three were arrested later that night at the candlelight vigil outside the police station. Inspector-General of Police Tan Sri Khalid Abu Bakar has defended the police against criticism for arresting peaceful protesters, saying the demonstrators were “trespassers” and had acted “as if to take control of the Customs complex”. — The Malaysian Insider

less vehicles. If that is where we see ourselves in 2050, we have to think about it in terms of the law and our infrastructures. We can already prepare the authorities. “So whether we like it or not, our road transport planners must already be thinking about this,” she said. However, Mazlan, who is a former deputy director-general of the United Nations Office at Vienna, said the road is tough and paved with challenges. “First of all, nothing is certain. We don’t really know what will happen tomorrow, much less in 35 years’ time. “So although you will do the foresight using probabilities and possibilities, people might buy your idea or people won’t. “Changing this mindset is what will be hard. We have to convince people to buy into this future we are envisioning.” Besides that, there would be high demand for scientists, Mazlan said, but there probably would not be enough of them to carry out the future technologies. “One of the problems is that many people or students are veering off science in schools. They

prefer to take business and other subjects as they feel it would be more lucrative for them later on in life. “This is a problem as we see that we will be lacking in scientific expertise, especially since we predict that there would be new fields and avenues to be explored in the future.” Mazlan herself had faced such challenges in the early days as an astrophysicist, with a PhD from New Zealand but in a field which was unheard of in the country. Although the lack of interest in her field was discouraging, the undeterred Mazlan went on to set up academic courses and laboratories for undergraduates and postgraduate training in Astrophysics and Astronomy in Universiti Kebangsaan Malaysia, where she was a lecturer. She was also instrumental in the inclusion of space science in the national school curriculum in 1990 and in the establishment of the National Planetarium in 1986. Despite the bumpy road ahead, Mazlan and her team at the Mega Science 3.0 project are optimistic about the future. They are convinced that Malay-

Mazlan and her team at Mega Science 3.0 are tasked with anticipating and foreseeing Malaysia’s future in 2050. She says the process of getting there is a long and complicated one. Photo by The Malaysian Insider

sia will not fall behind compared with the rest of the world, and are hoping that the project will help prepare the country for what is about to come. “In 1950, there was a vast difference in how Malaysia was compared with other countries like the United States in terms of its cities, transport, houses and agriculture. But in 2000, we are on a par with these developed countries. “So the question of whether we will be at the same level as them will not arise. It’s a matter of preparing ourselves for what lies ahead of us. We are not going to be left behind.” — The Malaysian Insider

Najib, ministers pay last respects to Kuan Yew SINGAPORE: Prime Minister Datuk Seri Najib Razak and several ministers paid their last respects yesterday to Lee Kuan Yew, Singapore’s founding father and first prime minister who died on Monday. Najib, who was accompanied by his wife Datin Seri Rosmah Mansor, arrived at about noon at Parliament House where the remains of Kuan Yew are lying in state prior to the funeral on Sunday. The Malaysian delegation also comprised Foreign Minister Datuk Seri Anifah Aman, Transport Minister Datuk Seri Liow Tiong Lai, Natural Resources and Environment Minister Datuk Seri G Palanivel and Minister in the Prime Minister’s Department Datuk Mah Siew Keong. Najib, Rosmah and the ministers were welcomed at Parliament House by Singapore Prime Minister Lee Hsien Loong, who is a son of Kuan Yew, and his wife Ho Ching. Kuan Yew died on Monday at the age of 91. Expressing heartfelt condolences on the passing of Kuan Yew, on behalf of the Malaysian government and people, Najib said Kuan Yew was a great man whose leadership, vision, fortitude and perseverance helped

Najib (right) and Rosmah signing the condolence book for Kuan Yew at Parliament House in Singapore yesterday, with Hsien Loong (centre) and his wife Ho Ching (left) looking on. Photo by AFP

shape Singapore into what it is today — an advanced economy and finding its own place in the world. He said Kuan Yew would go down in history as a great man whose vision and leadership helped make this world a better place. “Kuan Yew also was a man [who] helped shape Southeast

Asia as a region of peace and prosperity. “I would like to thank him for strengthening bilateral ties between Malaysia and Singapore,” he said after paying his last respects. “All Singaporeans owe him a huge debt of gratitude.” Najib and his delegation returned to Kuala Lumpur in the afternoon. — Bernama

2 0 P R O P E RT Y

FR I DAY M ARC H 27, 2 0 1 5 • TH EEDGE F I N AN C I AL DAI LY

FR I

28 BLVD registers 62% take-up rate

F

Strategic location of mixed development at the Pandan lakeside is a draw for buyers

res be me Pro the pu (RM inc to c ser pla

BY RAC H EL C H EW

KUALA LUMPUR: The official launch of the first three of 28 BLVD Tower’s four 45-storey towers by Beverly Group’s subsidiary Best Boulevard Sdn Bhd and Mapletree Investments Pte Ltd last weekend saw some 62% take-up rate. “Given the current market sentiment, we are happy with the 62% take-up rate. Our buyers were attracted to the premium location and the unbeatable price. You can own a unit from as low as RM280,000, I believe this is very rare in the market,” said Beverly Group sales and marketing director Wendy Tang. The mixed development at the Pandan lakeside in Pandan Perdana, which consists of a 11.07-acre (4.47ha) leasehold development, has a gross development value (GDV) of about RM700 million. It is due to be completed by August 2019.

BY

FRA the it to ter Fra Fra Ku

(CE ert for

The lakeside development houses 1,284 small office/home office (Soho) units with a built-up of 450 sq ft and priced from RM280,000, as well as 636 units of 2- to 5-bedroom and duplex serviced apartments with built-ups of between 678 sq ft and 2,174 sq ft priced from RM400,000. Only 6km away from the Kuala Lumpur city centre, the development promises residents the serenity of the Pandan Lake view and a bird’s eye view of the city, including the Petronas Twin Towers. Private previews of Towers A and B have been held since August last year. The company has no immediate plans to launch the 643 units in Tower D. “We intend to launch in stages the remaining units in Tower C after the current units have been taken up,” Tang adds. The four residential towers sit on a nine-storey car park podium, with the ground

An artist’s impression of the 28 BLVD at the Pandan lakeside. Photo by Best Boulevard

and first floors reserved for the lobby and premier restaurants. The retail units are not for sale to control the tenant mix. The development comes with a full range of facilities, including an infinity pool, lake view lounge, landscaped garden and floating cabanas. Amenities nearby include shopping malls, petrol stations, banks, shops, schools and colleges, and medical centres. Beverly Group has also acquired 16.5 acres of land in Wangsa Maju and 16 acres in Taman Equine.

“A central boulevard with GDV of RM1.6 billion, is being planned for the Wangsa Maju site, which is just 4.6km to KLCC, to capture a niche market.” Meanwhile, the 16-acre Taman Equine site is at the heart of the town and adjacent to Aeon @ Taman Equine.The total GDV is expected to be RM1 billion. “The remaining GDV for Beverly Group is approximately RM2.95 billion. We are actively sourcing for land so that we may offer exciting lifestyle choices from landed homes and apartments to mixed-use schemes.”

Fra tali in gat me to d un

M BY

KU goe cal alr

E&O, Mitsui marks third venture in Kuala Lumpur landmark project BY AS HO K K RI S H N A N

Dowling (left) and Brown at the Bangkok press conference announcing the partnership. Photo by Agoda.com

4,000 Best Western hotels on Agoda.com BY HA NN A H RA F EE

SINGAPORE: The United States-based Best Western International has collaborated with online accommodation reservations company Agoda Co Pte Ltd (Agoda.com) to create a search engine for its 4,000 hotels worldwide on March 20. ”Partnering with Agoda.com reflects Best Western’s commitment to expanding its distribution in the increasingly important and rapidly-growing Asian market,” said Best Western International senior vice-president of marketing and sales Dorothy Dowling. Agoda.com claims it shall provide a regional focus on content and a customer-friendly online service in which Best Western clients can search for hotels, examine reviews, book and pay for their stay

in a single mobile or desktop transaction. Through the partnership, Agoda’s customers will have direct access to the hotels in more than 100 countries. “Agoda.com takes pride in the management and innovation of our front-end customer offerings and connectivity solutions to hotel partners. Our partnership with Best Western International further strengthens this resolve, as we continue to make advances in growing the Agoda.com international footprint,” said John Brown, Agoda chief operating officer. The partnership will be assisted by connectivity solution platform, DerbySoft, for fast and reliable online distribution of the rates and inventory of Best Western hotels. Agoda.com has a network that includes more than 600,000 hotels and other accommodation properties worldwide.

KUALA LUMPUR: Eastern & Oriental Bhd (E&O) marked its third collaboration with Japanese property company Mitsui Fudosan Co Ltd by inking an agreement to jointly develop a 5,812 sq m freehold parcel of land at the intersection of Jalan Conlay and Jalan Kia Peng in Kuala Lumpur. The joint venture (JV) is to build luxury high-rise serviced apartments. “Backed by the success of our earlier collaborations with Mitsui, we are confident that this latest partnership will deliver yet another exemplary project of innovation and excellence,” said E&O deputy managing director Eric Chan Kok Leong. Mitsui executive director Tomoo Nakamura said the company is proud of its collaborations with E&O and views the project as sharing its expertise with Malaysia. E&O joined Mitsui Fudosan in a marketing collaboration in 2011 but this is its second residential development together.

The JV to develop the land will be effected through, among others, a shareholders’ agreement and a sale and purchase agreement between Samudra Pelangi Sdn Bhd (Samudra), an indirect wholly-owned subsidiary of E&O; and Mitsui Fudosan Asia Pte Ltd (MFA), an indirect wholly-owned subsidiary of Mitsui Fudosan Co Ltd. The site is held by Patsawan Properties Sdn Bhd (Patsawan), a wholly-owned subsidiary of Samudra. The JV entails the acquisition of a 49% stake in Patsawan by MFA. After the JV, Samudra will continue to hold the remaining 51% stake in Patsawan. The project is within an exclusive residential enclave among diplomatic corps, and the city’s business, retail and cultural districts. In 2011, a marketing collaboration was signed for E&O properties to Mitsui’s highnet-worth clientele in Japan. The tie-up led to a 2013 partnership in which the two companies developed the 38-storey The Mews Serviced Residences Kuala Lumpur.

(From left) E&O finance director Kok Meng Chow, Chan, Nakamura and Mitsui Fudosan senior manager Shigeki Komi posing for a picture after signing the agreement. Photo by E&O

sca pro offi

Gro ho hav me pio ly-

nei aim for

P BY

BA cen bus spe in t

Q4 tion tha exp

ave ros yea sq m saw inc fou ren

P R O P E RT Y 2 1

F R I DAY MA RC H 27, 20 15 • T HEED G E FINA NCIA L DA ILY

Frasers Hospitality unveils third KL property BY C A RMEL D OMI NI C

ine ent V is

FRASERS Hospitality unveiled its third property, the Fraser Residence Kuala Lumpur, claiming it to be the city’s largest serviced residence. After the launch of Capri by Fraser in 2014, and Fraser Place in 2010, Fraser Residence ups the Frasers Centrepoint Group’s portfolio within Kuala Lumpur to 1,000 apartment units. Frasers Hospitality chief executive officer (CEO) Choe Peng Sum said the new property follows the strong demand it received for its first two properties. “We expect this demand to continue as the resurgence of interest from foreign firms will be further boosted by the government’s implementation of the Economic Transformation Programme. With plans to attract over 100 of the world’s leading firms, with Kuala Lumpur expected to contribute US$59.4 billion (RM218 billion) to the country’s gross national income by 2020, we expect economic growth to continue to drive the need for increased serviced residences, which we will be well placed to meet,” Choe said. The hospitality arm of the Singapore-based Frasers Centrepoint Group, Frasers Hospitality has a global portfolio, including those in the pipeline, of 94 properties in 50 key gateway cities, and more than 17,000 apartments worldwide. The company is on track to double its inventory to 30,000 residential units over the next five years. Fraser Residence Kuala Lumpur houses 445

p is vely citnd

Malaysia’s first large-scale GBI project in The Prime@LDP

1.6 aju ure

Fraser Residence Kuala Lumpur. Photo by Frasers Hospitality Pte Ltd.

serviced residence units in the city centre and is within walking distance of the Petronas Twin Towers, Suria KLCC and the Kuala Lumpur Convention Centre. It offers a range of spacious, fully furnished apartments from 42 sq m studio apartments to 490 sq m 4-bedroom apartments that can accommodate eight people. Each unit features floor-to-ceiling windows and boasts stylish interiors with neutral tones, with defined living, dining, kitchen, work and bedroom areas and comprehensive home entertainment systems. Among the offered facilities within the property is a 24-hour fully equipped Sky Gym and Yoga Suite with a view of the city’s skyline, a landscaped outdoor swimming pool, a children’s wading pool, an outdoor Jacuzzi, steam and sauna facilities, a spa, a kids play zone and a Club Lounge & Bar with

indoor and alfresco seating as well as an allday-dining restaurant. Its business accompaniments include boardrooms, meeting facilities with a capacity of up to 80 persons and pre-function guest reception areas. Fraser Residence Kuala Lumpur provides 24-hour security and CCTV surveillance, round-the-clock reception and concierge services, 24-hour room service, daily housekeeping, laundry services, shuttle service to key business and shopping districts, and complimentary high-speed WiFi Internet access. A 20-minute drive from KL Sentral, it is close to multinational companies, embassies and tourist sites such as the National Art Gallery and the National History Museum, and is easily accessible via the Bukit Nanas monorail and Dang Wangi LRT stations.

BY C A RMEL D OMI NI C

s’ d a d

n y f V, g

s, al s p o e r.

KUALA LUMPUR: Hillcrest Gardens Sdn Bhd goes green in its shop-office development called The Prime@LDP, with half of the units already sold after its soft launch recently. The project is said to be the first largescale Green Building Index (GBI) certified project in Malaysia and is expected to be officially launched next month. Hillcrest Gardens, a member of the LTAT Group and the Kuok Group of companies, hopes to appeal to businesses that already have, or are planning their own environ- (From left) Hillcrest Gardens executive director Frank Goon Swee Kheong, director Major General Datuk ment-friendly initiatives. Hussein Mohd Ali Piah, chairman Lieutenant General Datuk Hashim Mohamed Amin, director Lieutenant The 18,000 sq m The Prime@LDP is being General Datuk Mohd Salleh Ismail and director Lim Soon Huat at the soft launch. pioneered by Didikmaju Sdn Bhd, a wholly-owned subsidiary of Hillcrest Gardens. The four blocks of shop offices comprise rity guard patrol, and a main bus terminal. Located in the Jalan Puchong Utama 47 units ranging between 8,643 sq ft and The Prime@LDP is a freehold commercial neighbourhood, the commercial space is 11,743 sq ft. property beside the Lebuhraya Damansara aimed at being a modern-day business venue Nearby amenities are supermarkets, am- Puchong. It has a dual frontage concept with for entrepreneurs seeking new opportunities. ple parking space, 24-hour CCTV and secu- a stunning landscaped boulevard.

Political stability sees growth in Bangkok’s office rents BY HA NN A H RA FEE

BANGKOK: Office rental rates within Bangkok’s central business district (CBD) and non-central business district (non-CBD) have increased, specifically in the new Grade A buildings within the CBD. The CBRE’s Bangkok Office MarketView Q4 2014 report cited the calmer political situation for increased office rental rates and noted that tenants had even proceeded with space expansion plans. It said in the fourth quarter of 2014 (4Q14), average rents for Grade A offices in the CBD rose 0.6% quarter-on-quarter (q-o-q) and 3.7% year-on-year (y-o-y) to 850 baht (RM95.31) per sq m (psm) per month. Grade B CBD rents also saw a rise to 624 baht psm per month, a 2.5% increase q-o-q and 8% y-o-y. The report also found that in the non-CBD areas, Grade A office rentals rose to 668 baht psm per month (up 5%

q-o-q and 9.9% y-o-y), while Grade B rentals went up to 564 baht psm per month, a 2.2% increase q-o-q and a y-o-y increase of 5.2%. While the report foresees growth in rentals, it would be at a slower rate, especially for Grade A CBD offices since buildings that command premium rents are at full capacity. The capital’s office market has also seen a rise in occupancy rates. “The total occupancy rate for the Bangkok office market increased to 90.7% from 90.5% from the previous quarter. The occupancy rate increased by 0.3 percentage point (ppt) y-o-y. “We have seen office leasing activity improve every quarter throughout 2014. The increase in new leasing transactions will result in a rise in net take-up at the beginning of 2015. “There is a time lag between starting to look for new premises and moving in — approximately six to 18 months, depending on the size of the the required space,” noted the report. It said total office supply increased to 8.3

million sq m, a 0.6% increase q-o-q and 2.6% increase y-o-y. Supply grew by 49,500 sq m with the completion of the Channel 5 head office, U Place and Hitachi office buildings. The overall vacancy rate was 9.3% in 4Q14, dropping 0.2 ppt y-o-y. In terms of 2015’s market outlook, the report suggests that the current trend of falling vacancy rates and rising rents will continue. Nevertheless, a temporary increase in vacancy is expected with the completion of new supply. According to the report, based on the new projects that have already been announced, 400,000 sq m of new office space will be completed between 2015 and 2017. Bhiraj Tower at EmQuartier, AIA Sathorn Tower and Gaysorn Office Tower 2 will be Grade A offices. Approximately 76% of total new office space will be Grade A ones, and about 44% of the total new office space will be in the CBD.

HOT DEALS How much is your property worth? Which and what property has just been sold, and for how much? What interesting buys are now on the market? Check out the following Hot Deals of the week. Go to www.theedgemarkets.com for more.

Sold Condominium in Seri Bukit Ceylon, Kuala Lumpur Built-up: 936 sq ft; 2 rooms, 2 bathrooms; Freehold; RM810,000 Ideally located in the Golden Triangle of Kuala Lumpur, Seri Bukit Ceylon was completed by UM Land in 2005. It comprises a block of 248 units, with 96 serviced homes, 125 apartment suites, and 27 business suites. Nearby are restaurants and bars at Changkat Bukit Bintang, and the KL Pavillion and KLCC shopping centres. Facilities include a cafe, children’s playground, convenience store, fully equipped gym, self-service launderette, sauna and swimming pool. Sales concluded by Pia Mirpuri of Tower Realty (012) 9710 130

On the market Bungalow in Twin Palms Kemensah, Taman Melawati, Ampang, Selangor Built-up: 5813 sq ft; 6+1 bedrooms, 7 bathrooms; Freehold; RM4.25 million With its strategic location and easy access to highways such as the MRR2 and Duke Highway, the Twin Palms bungalow offers a lovely landscaped park and a playground to give a garden club ambience. In addition, it offers amenities such as international schools, shopping hubs and a hospital. Contact Jocelyn Teoh Oriental Realty (012) 307 5622

WHAT’S HAPPENING & WHERE Radia Sales Gallery Official Launch Date: Tomorrow Venue: 2A (Lot 64406) Persiaran Tebar Layar, Section U8, Bukit Jelutong, Shah Alam, Selangor. Time: 6pm-11pm Contact: (03) 7859 9801 Allow Sarimah Ibrahim to entertain you and enjoy a fireworks display, among others, at the official launch of the Radia Sales Gallery. The event is jointly organised by Sime Darby and UEM Sunrise. Opening of EcoWorld International Centre Date: Sunday Venue: EcoWorld International Centre, Suite 3A, 01 Level 3A, The Gardens North Tower, Mid Valley City, Lingkaran Syed Putra, Kuala Lumpur. Time: 10am-6pm Contact: (03) 2287 2255 The opening of EcoWorld International Centre marks the developer’s foray into the international arena. Guests are invited to the Privilege Preview of London City Island, its maiden project in the United Kingdom. The centre operates from 9am to 6pm on weekdays, and 10am to 6pm on weekends and public holidays.

22 C O M M E N T

FR I DAY M ARC H 27, 2 0 1 5 • TH EEDGE F I N AN C I AL DAI LY

China’s influence set to climb US thwarted on new bank as allies defy Washington to back Beijing’s initiative BY KEVI N HA ML IN

S

even decades after the end of World War II, the international economic architecture crafted by the United States faces its biggest shake-up yet, with China establishing new channels of influence to match its ambitions. Three lending institutions with at least US$190 billion (RM697 billion) are taking shape under China’s leadership, one of them informally referred to as a Marshall Plan — evoking the post-war US programme to rebuild an impoverished Europe. Also this year, China’s yuan may win the International Monetary Fund’s (IMF) blessing as an official reserve currency, a recognition of its rising use in trade and finance. China’s clout has been expanding for decades, as its rapid growth allowed it to snap up a rising share of the world’s resources, its exports penetrated global markets, and its bulging financial assets gave it power to make big individual loans and purchases. Now, the creation of international lending institutions is leveraging that economic influence closer to the political and diplomatic arenas, as US allies defy America to back China’s initiative. “This is the beginning of a bigger role for China in global affairs,” said Jim O’Neill, the United Kingdom-based former chief economist at Goldman Sachs Group Inc, who coined the term BRIC in 2001 to highlight the rising economic power of Brazil, Russia, India and China. Chinese President Xi Jinping’s vision of achieving the same

great-power status enjoyed by the US received a major boost this month when the UK, Germany, France and Italy signed on to the Asian Infrastructure Investment Bank. The AIIB will have authorised capital of US$100 billion and starting funds of about US$50 billion. Canada is considering joining, which would leave the US and Japan as the only Group of Seven holdouts as they question the institution’s governance and environmental standards. Australian Prime Minister Tony Abbott’s cabinet approved negotiations to join too, according to a government official who asked not to be identified as the decision hasn’t been made public. Founding membership will be finalised as soon as April 15, a Chinese official said on Wednesday. “China’s economic rise is acting as a huge pull factor forcing the existing architecture to adapt,” said James Laurenceson, deputy director of the Australia-China Relations Institute in Sydney. “The AIIB has shown the US that a majority in the international community support China’s aspirations for taking on greater leadership and responsibility, at least on economic initiatives.” Austria this week became the latest European nation to enter talks on joining the infrastructure bank, saying that the country could face disadvantages in Asian markets if it’s left out. Asian Development Bank president Takehiko Nakao on Wednesday said the institution would seek to cooperate with the new Chinese lender. “Once it formally starts, I plan to cooperate with it,” Nakao said in Tokyo. “It would be impossible to be

hostile. Lots of countries need funds, and it is natural that we will cooperate. It would be to the benefit of international society, the region and Japan.” The new China-backed institutions — the infrastructure bank, a US$50 billion development bank in conjunction with fellow BRICS nations and a US$40 billion fund to revive the ancient Silk Road trade route — are being set up after years of frustrated attempts by China and other emerging nations to revamp the existing international financial institutions to better reflect the shape of the global economy. A key sticking point is the US’ failure for more than four years to approve shifts in the IMF’s ownership structure, which would give emerging markets more influence and install China as the third-largest member nation, up from sixth. The changes have been held up by the refusal of the US Congress to ratify them, even though the White House and governments around the world support them. The US still has veto power on major decisions made by both the IMF and the World Bank, and a lock on selecting the president of the World Bank. Both institutions are increasingly unrepresentative and undersized compared with the demands they face. “The real tragedy is, compared to the billions we spend on defence to support US global leadership, Congress undermined it by refusing to provide the chump change needed to reform the IMF,” said David Loevinger, former US Treasury Department senior coordinator for China affairs and now an analyst at TCW Group Inc in Los Angeles. “Congress can abdicate

its international responsibilities. What it can’t do is stop China from playing a bigger role in managing the global economy.” Regarding the new infrastructure bank, US Treasury Secretary Jacob J Lew told lawmakers last week the administration is concerned that the institution may not adhere to the same standards as other international financial institutions. “Will it protect the rights of workers, the environment, deal with corruption issues appropriately?” Lew said at a House Financial Services Committee hearing in Washington. “Anyone joining needs to ask those questions at the outset. And I hope before the final commitments are made, anyone who lends their name to this organisation will make sure that the governance is appropriate.” Andrew Polk, Beijing-based economist at the Conference Board, said China’s push to set up these new institutions is driven by its desire to “stoke markets” to which it can export industrial overcapacity. China plans to spend US$40 billion to revive the centuries-old Silk Road trade route between Asia and Europe, an idea raised by Xi in a 2013 speech in neighbouring Kazakhstan. Some analysts have likened the plan to the post-war effort to help Europe that helped establish the US as a regional economic power. A detailed plan may be unveiled at China’s Boao Forum conference which started yesterday, where Xi is scheduled to speak, according to Australia & New Zealand Banking Group Ltd. Announced in July, the BRICS’ New Development Bank, to be based in Shanghai with initial capital of

US$50 billion, is the third building block of a China-centred international economic architecture. In addition to the original four BRIC nations, the fifth country is South Africa. To lure countries to join, China has offered to forgo veto power at the new development bank, the Wall Street Journal reported this week. The German government and its European partners are insisting on transparency standards in the talks, and a Chinese veto wouldn’t be compatible with the transparency the Europeans want, according to a German government official who asked not to be named because the negotiations are private. Making the institutions run successfully will be tougher than starting them, said George Magnus, a senior independent economic adviser to UBS Group AG in London. Recent audits of many Chinese overseas ventures have “left a catalogue of misallocation, waste, poor administration and weak commercial standards and returns”, he said. Nicholas Lardy, a senior fellow at the Peterson Institute for International Economics in Washington, said those concerns are overblown, and China is likely to stick with high standards. “They want this to be a success,” he said. “They don’t want to take US$50 billion out of their reserves and flush it down the toilet by funding projects with a high degree of corruption.” Yu Yongding, a former adviser to China’s central bank, said “Americans must learn to behave in a humbler way” to maintain their leadership in global economic circles. “The world has changed,” he said. — Bloomberg View

Rolex offshoot Tudor comes of age BY CORI NN E GRE TLER

ROLEX’S younger sibling is coming of age. Tudor, a sportier brand that Rolex founder Hans Wilsdorf trademarked in 1926, plans to enter Japan after returning to the United Kingdom and the United States in the past two years, Philippe Peverelli, who has led the brand since 2010, said in an interview. The label may pose a threat to the makers of Longines, TAG Heuer and Baume & Mercier as it sheds decades of dormancy and benefits from the support of the foundation that owns Rolex, Switzerland’s top-selling watch brand. Priced at about US$2,000 (RM7,340) to US$5,000, Tudor is a gateway to a generation of consumers that might not purchase a Rolex, which start at about 4,600 Swiss francs (RM17,650). “We’ve never been so young,” Peverelli said at the Baselworld watch and jewellery fair, which ended yesterday. “Today, we try to make our own watches with our own designs. We need to have our own personality. Before we were an under brand. We

are starting to have a real life.” The label has introduced its first watches with mechanisms that were made in-house. That’s a first step in reducing dependence on components bought from Swatch Group AG’s ETA unit, which makes components for most Swiss watches. Rolex founder Wilsdorf began putting the Tudor name on watch dials in the 1930s, intending to create a less expensive but reliable alternative to his main brand. Production expanded after World War II, when Tudor was founded as a separate company. However, Tudor exited the US and UK after testing those markets. The watchmaker then focused on China in the 1960s. The offshoot’s pricing in comparison to its older sibling has led some watch collectors to call it “the poor man’s Rolex”. A 1952 ad featured a workman operating a pneumatic drill wearing the watch, and a slogan once said the timepiece might fit you if your “aspirations are higher than your bank balance”. The label probably had sales of about 250 million Swiss francs in

2013, Rene Weber, an analyst at Bank Vontobel AG in Zurich, said. That would be about 5% of Geneva-based Rolex’s total revenue of 4.6 billion Swiss francs, he estimates. The closely held company doesn’t publish financial information. Tudor’s expansion adds to three major challenges Swiss watchmakers face this year. The surge in the franc has made it harder to export, Apple Inc is set to introduce its smartwatch next month and a slump in Chinese demand is lingering due to a campaign against extravagance among government officials. “The positioning is more midrange, which is exactly the exposure you want to have right now, given how China is performing,” Bassel Choughari, an analyst at Berenberg in London, said. “It’s an attractive offering in that segment, as a lot of brands have left it by elevating prices. There’s certainly room to grow.” While China still makes up a big part of its business, the re-entry in the US and the UK is providing Tudor with a more balanced mix. “Tudor is a threat to brands below

The Tudor Heritage Black Bay in midnight blue which was introduced at last year’s Baselworld.

the mega brands Rolex, Omega and Cartier,” Luca Solca, an analyst at Exane BNP Paribas, wrote via email. “The brand that has most benefited from Tudor being asleep at the wheel so far, has probably been Longines.” Longines, owned by Swatch, has expanded in the segment of time-

pieces costing 800 Swiss francs to 3,000 Swiss francs and achieved sales of 1.5 billion Swiss francs last year, Walter von Kaenel, the watchmaker’s president, said in an interview with AWP on March 18. TAG Heuer belongs to LVMH Moet Hennessy Louis Vuitton SE while Baume & Mercier is a brand of Cie Financiere Richemont SA. Tudor is far from achieving the same notoriety as Rolex, which has made several rare watches that have fetched prices of more than US$1 million at Christie’s. The top auction prices for Tudor pieces include 31,250 Swiss francs for a 1950s model in a sale last year. Peverelli said the entry into Japan won’t be this year. In the long term, Tudor aims to keep growing in comparison to Rolex. “In 2025, I wish for Tudor to be where Mini Cooper is today facing BMW, which for us would be Rolex,” the executive said. “The Mini is sexy, a great performer, a solid German car, attracting all ages. I want to be able to drive alone on my own four wheels.” — Bloomberg

F E AT U R E 2 3

F R I DAY MA RC H 27, 2015 • T HEED G E FINA NCIA L DA ILY

Phaseout of PPSMI runs to 2021 School heads given crucial reminder as two million students in limbo BY A ZRI L A N N UA R

W

ith the flip-flop in education policy over the Teaching and Learning of Science and Mathematics in English, commonly referred to by its Malay acronym PPSMI, the most vulnerable victims are the two million plus schoolchildren who are coasting along in the winding-down stage of this legacy scheme. The last batch of students will sit for mathematics and science in English in the 2021 Sijil Pelajaran Malaysia (SPM) examinations. With an average of 470,000 students sitting for the SPM annually, it is estimated that over two million children fall under the PPSMI scheme until the phaseout is complete. However, it is reported that some schools have taken it upon themselves to stop the PPSMI and switch to its replacement, that is the Upholding the Malay Language and Strengthening Command of English (MBMMBI) scheme, which places emphasis on strengthening students’ command of both Bahasa Melayu and English. Concerned groups, including the Parent Action Group for Education (Page), have raised the matter with Education Minister II Datuk Seri Idris Jusoh so that students are not left in the lurch. As a result, headmasters and principals were given a reminder and a dressing down by the Education Ministry recently. At a March 17 briefing at the Federal Territories Education Department, ministry officials reminded the gathering of the Cabinet decision in 2011, where it was agreed that MBMMBI would be implemented via a “soft landing” approach. At the briefing titled “PPSMI extended till 2021; MBMMBI implemented via soft landing”, school principals were informed about how they should handle the last batch of students put under the PPSMI scheme when they started Year One back in 2011. A school principal who attended the briefing says they were reminded that it is wrong for any school to refuse to teach the last batch of PPSMI students science and mathematics in English. “They have to find a way. They cannot say ‘no’ to parents whose children began Year One under the PPSMI system. The schools must support this cohort until they finish their SPM in 2021. “That year will be the final year for PPSMI,” explains the principal, who requested anonymity. However, the principal admits that perhaps some schools might not have the human capital or the means to educate the last cohort under the PPSMI system, leading to the complaints in the first place.

‘Stubborn principals part of the problem’ Page chairman Datin Noor Azimah Abdul Rahim says she has received reports from concerned parents and met Idris last month. “The excuse that some of these schools gave was that they wanted to streamline the system. This defeats the 2011 Cabinet decision not to impose Bahasa Melayu on the students [who are still under PPSMI]. “Since 2011, there could be new principals who never received the circular and are too stubborn to listen to their teachers who want to do the right thing,” says Noor Azimah. Pushing for Page’s agenda, she advocates that the Education Ministry should continue allowing students to choose whether they want to be taught under the PPSMI or the MBMMBI scheme. “The prime minister said they want to tighten the English requirements for public universities. In the past, you needed to pass Band 1 under the Muet (Malaysian University English Test) to qualify for science-related disciplines. Now you have to pass Band 3 and Band 4 for medicine and law. “If you want to graduate, you need to pass Band 4 for the science disciplines and Band 5 for medicine and law. So … [they] took away PPSMI and plonked this on us. That’s not fair, is it?” she asks. Noor Azimah points out that there’s no excuse for the government not to allow PPSMI to continue since trained teachers are already available, as the first batch taught under the PPSMI scheme in 2003 are now fresh graduate teachers this year. “The ministry can’t say they failed in PPSMI and cannot start it again because the manpower and the students have been armed with it, and also the MBBMBI. They have no excuse. The teachers and students are more prepared than ever,” says Noor Azimah. Her sentiments are echoed by a recipient of the Excellent Mathematics Teacher Award who complains that her efforts to master English as an instructive language have been wasted. “When I was first asked to teach science and maths in English all those years ago I had to use a script. I’m Malay, born in the East Coast, and I wasn’t used to the language. Sometimes I had to switch back to Bahasa Melayu to explain to the students who did not understand what I was trying to say. “But as time went by and I practised it, I became more and more fluent and the same happened to my students. Then, when I’ve finally mastered it sufficiently to be able to fluently teach in English … they decided to scrap it. “What a waste,” complains the Terengganu-based teacher, who requested anonymity.

01. At a March 17 briefing at the Federal Territories Education Department, ministry officials reminded the gathering of the Cabinet decision in 2011, when it was agreed that MBMMBI would be implemented via a ‘soft landing’ approach. 02. Noor Azimah advocates that the Education Ministry should continue allowing students to choose whether they want to be taught under the PPSMI or the MBMMBI scheme. The Edge file photo 01

02

PPSMI in a nutshell THE Teaching and Learning of Science and Mathematics in English (PPSMI), the brainchild of former premier Tun Dr Mahathir Mohamad, was aimed at addressing the problems faced by Malaysian graduates who lacked fluency in English and thus had poor job prospects. The idea was mooted in 2002 and implemented barely a year later in 2003. Critics initially pointed out that PPSMI was rolled out in a hurry because Dr Mahathir wanted it in place before he handed over the reins of government to his successor Tun Abdullah Ahmad Badawi. The scheme saw more than RM3 billion spent on information technology hardware to facilitate the teaching of mathematics and science in English.

Unfortunately as there was a lack of qualified teachers when the policy was introduced, the national academic grade average suffered, especially in the rural Malay heartland where students were less proficient in English. This led to demands by Malay nationalists for the scheme to be scrapped on the grounds that PPSMI undermined the position of Bahasa Melayu as the national language despite the call by many parents and employers to retain the scheme. A poll by the Merdeka Center for Opinion Research in 2009 showed that 58% of the respondents wanted English to remain as the language of instruction for the two subjects. The change of policy was viewed as a flip-flop by a number

of teachers, educators, non-governmental organisations and politicians. Dr Mahathir was highly critical of the calls to scrap the scheme, writing numerous scathing articles in his blog against Deputy Prime Minister Tan Sri Muhyiddin Yassin, who is the Education Minister. PPSMI’s replacement, known as Upholding the Malay Language and Strengthening Command of English (MBMMBI), started for Year One pupils in 2012. By 2021, MBMMBI is expected to be fully implemented as the last batch of PPSMI students will take their Ujian Pencapaian Sekolah Rendah examinations next year and finish their Sijil Pelajaran Malaysia in 2021.

24 W O R L D B U S I N E S S

FR I DAY M ARC H 27, 2 0 1 5 • TH EEDGE F I N AN C I AL DAI LY

Half of China’s total trade to be settled in yuan by 2020 Renminbi has already broken into the top five as an international payments currency HONG KONG: Cross-border trade settlement denominated in China’s yuan currency is expected to climb to over 50% of China’s total trade by 2020, more than doubling the current level, Stuart Gulliver, HSBC’s group chief executive, said yesterday. A scheme launched in 2009 and initially in five Chinese cities to encourage cross-border trade settlement in yuan rather than US dollars has seen rapid growth in the past few years, with yuan settlement of trade debts rising from 1% of transactions in 2010 to 22% last year. This robust momentum was not affected by the quick depreciation of the yuan earlier this year, showing the yuan’s use in trade settlement is rooted in genuine need and supported by confidence in

Beijing should boost gold reserves to 5% — World Gold Council BY POL LY YA M

HONG KONG: China should increase its gold holdings to around 5% of its total foreign exchange reserves to help diversify currency risks, the World Gold Council (WGC) said. China currently holds about 1.6% of its foreign exchange reserves in gold, which is relatively low compared with developed countries and some developing countries, WGC China managing director Roland Wang said. “The ideal amount should be at least 5% of its total forex reserves,” Wang told Reuters in an interview in Hong Kong. China last raised its gold holdings in April 2009, when reserves rose to 33,890,000 troy ounces (about 1,054 tonnes), from 19,290,000 troy ounces, according to central bank data. The holding was unchanged as of December 2014. Data for 2015 was not available on the central bank’s website (www. pbc.gov.cn). China’s holdings as a percentage of total reserves in the fourth quarter of 2014 compare with 2.4% for Mexico, 5.7% for Australia, 6.7% for India and 12.1% for Russia, according to WGC figures. Increased gold holdings could boost investor confidence at a time when China is pushing the internationalisation of the yuan, he added. — Reuters

the fundamental and relative stability of the currency, Gulliver told a forum in Hong Kong. So far, the geographical spread of China’s trading partners denominating trade in the yuan remains very narrow, with the lion’s share taking place in Hong Kong and most of the rest happening elsewhere in Asia. “In this sense, the renminbi (yuan) is not yet as integrated as a trade currency as it both could be and will be. We do expect this to change,” said Gulliver. China’s yuan has already broken into the top five as an international payments currency, overtaking the Canadian dollar and the Australian dollar, said global transaction services organisation Swift. — Reuters

Filepic of an employee of a bank counting yuan notes in Pudong district in Shanghai. Yuan settlement of trade debts rose from 1% of transactions in 2010 to 22% last year. Photo by Reuters

Casino operators in Macau, the world’s biggest gambling hub, have been shifting to other Asian locales in search of more lucrative growth prospects as revenues in the southern Chinese territory have plummeted. Macau’s Suncity confirmed its involvement in the project while VinaCapital confirmed the participation of Chow Tai Fook Enterprises, which replied in an email that it had no comment and was conducting preliminary studies. The government has set a minimum capital investment of US$4 billion

for large casino resorts. Genting Malaysia Bhd pulled out of the project in 2012 due to the local gambling restrictions, and Las Vegas Sands Corp chairman Sheldon Adelson said he would invest in a multibillion dollar resort in the country if the prohibition is eased. The Vietnamese government is mulling changing legislation to allow local residents to gamble but has yet to come up with a concrete plan, meaning the casino project may initially rely on business from tourists and locals with foreign passports. — Reuters

Alibaba deal spree tests its financial strength BY ROBYN M AK

HONG KONG: Alibaba’s deal spree is testing its financial strength. The Chinese e-commerce giant spent the bulk of its operating cash flow on acquisitions and minority investments in 2014, but doesn’t provide much detail to shareholders. Though the group’s core business is robust, returns on the new ventures are less certain. Alibaba is so big that many purchases are too small to disclose. Though its US$200 million (RM734 million) investment in Snapchat was widely reported earlier this month, Alibaba has not formally acknowledged the financing which values the much-hyped chat app at US$15 billion. Its recent contribution to funds managed by Jerusalem Venture Partners, an Israeli venture capital firm, is also confidential.

Buffett dealmaking gives Heinz bondholders US$550m windfall NEW YORK: Warren Buffett’s bid to unite HJ Heinz Co with Kraft Foods Group Inc is proving to be a bonanza for holders of the iconic ketchup maker’s junk bonds. The market value of Heinz’s bonds surged by US$550 million (RM2.02 billion), or 7.6%, as of 2.35pm on Wednesday in New York, according to data compiled by Bloomberg. With the combined company likely to be rated investment grade, according to a statement from Standard & Poor’s, the yields on Heinz’s bonds have dropped closer to those on Kraft’s notes. The merger of Kraft and Heinz, which is controlled by Buffett’s Berkshire Hathaway Inc and buyout firm 3G Capital, has been structured without requiring any additional debt to complete the deal. — Bloomberg

Facebook bets on Messenger app, opens it to developers

Macau junket operator, Chow Tai Fook plan US$4b Vietnam casino HONG KONG: One of Macau’s top casino junket operators, a Vietnamese investment group and Hong Kong property-to-jewellery conglomerate Chow Tai Fook Enterprises will team up to develop a US$4 billion (RM14.7 billion) casino resort in Vietnam, companies involved in the project said. The resort, to be located in the central province of Quang Nam, is headed by Vietnam-based VinaCapital and will forge ahead despite a ban on gambling by Vietnamese citizens that has deterred other big international operators.

IN BRIEF

Chairman Jack Ma talks of building an “ecosystem” of connected services. But the common thread is far from obvious. This year alone, Alibaba has invested US$590 million in a Chinese smartphone maker, participated in a US$600 million cash injection for a Chinese taxi-hailing app, set up a US$160 million joint venture to develop Internet-connected cars, and led a US$60 million investment in a US mobile search firm. Some transactions attributed to Alibaba are actually channelled through executives’ personal vehicles or affiliated companies. Yet the listed group’s investments are a drain on cash: Alibaba spent US$7.5 billion on acquisitions and minority investments in 2014 — three-quarters of its operating cash flow for the year. It’s also hard to tell how Alibaba’s new ventures are faring. The company’s share of its associates’ losses rose

to US$130 million in the three months to December, from less than US$50 million in the previous quarter. Stakes in start-ups are often in the form of options or convertible shares, which means Alibaba doesn’t have to book its share of the ventures’ losses. But minority stakes in listed affiliates have fared poorly: Alibaba’s 16.5% shareholding in video site Youku Tudou is worth less than half the US$1.1 billion the company paid last April. With a market capitalisation of more than US$200 billion and no debt, Alibaba can afford to place big bets on new services and technologies. Some may pay off. Nevertheless, the lack of information will prompt fears that the company is squandering its financial strength. Now that some pre-initial public offering shareholders are free to sell, investors’ faith is likely to be tested. — Reuters

SAN FRANCISCO: Facebook is turning its Messenger application into a platform for e-commerce, video and more in a bid to shake up online communication. Facebook co-founder Mark Zuckerberg unveiled Messenger Platform, describing it as a way for software developers to boost appeal to the more than 600 million people using the application. “We think this service has the potential to allow people to express themselves in new ways ... and to be an important communication tool for the world,” Zuckerberg said at the California-based company’s annual developers conference that ended yesterday in San Francisco. — AFP

China’s Hainan Airlines eyes 30-plane Boeing order SHANGHAI: China’s Hainan Airlines said yesterday it is planning to buy 30 Dreamliner aircraft from US giant Boeing — worth almost US$8 billion at list prices — as it seeks to look to expand its long-haul service. The 30 Boeing 787-9 Dreamliners are due to be delivered before 2021, Hainan Airlines said in a statement to the Shanghai stock exchange, where it is listed. The order would be valued at US$7.7 billion based on list prices given on Boeing’s website, although airlines typically negotiate discounts. — AFP

Jaguar Land Rover to invest £600m in Britain LONDON: Indian-owned luxury car manufacturer Jaguar Land Rover announced a £600 million (RM3.28 billion) investment in advanced car manufacturing in Britain yesterday. The British car brand, which was bought by India’s Tata Motors for US$2.3 billion (RM8.4 billion) from Ford in 2008 at the height of the global financial crisis, said the investment showed its commitment to Britain’s resurgent car industry. — AFP

W O R L D B U S I N E S S 25

F R I DAY MA RC H 27, 2015 • T HEED G E FINA NCIA L DA ILY

Indonesian stocks face risks from debt spike Worries grow over sliding rupiah and rising import costs BY FRA NSI SK A N A NGOY

JAKARTA: Fund managers and foreign investors are bailing out of Indonesian stocks as worries grow that a perfect storm of a sliding rupiah, record levels of foreign debt and rising import costs could bring some businesses to their knees. Making matters worse, the benefits of a falling rupiah to Indonesia’s

Japan shows rising frustration with companies sitting on cash

major agricultural and mineral exports have been eclipsed by a steep decline in commodity prices. The biggest concern for investors is a tripling of private foreign debt since the 2007 financial crisis. The fear is that sustained currency weakness will start ramping up the debt burden and servicing costs, crunching corporate earnings in the process. Moreover, the rupiah’s 5% fall

against the US dollar this year on top of the 2% slide in 2014 means most offshore investors are sitting on losses on their original investments. That confluence of factors could trigger a wave of foreign capital outflows from the stock market where foreigners account for 40% of equity transactions. Citing currency weakness, Edward Lubis, president director of Bahana

TWC Investment which has 28 trillion rupiah (RM7.9 billion) under management, said: “We are reducing our position on equity. We are on ‘neutral’ now, and we are less optimistic than we were a month ago.” The rupiah’s decline has taken it to around 13,000 per US dollar, hurting profits for foreigners in a market that is already trading expensively at 17 times earnings. — Reuters

ECB gives Greece extra US$1.1b in breathing space

BY K EI I CHI YA MA MURA

BY JEFF BLACK , RE BECC A C HRI S TI E & RADOSLAV TO M E K

TOKYO: Japan is stepping up pressure on companies to use their near-record cash stockpiles to help drive growth, with Finance Minister Taro Aso saying yesterday the government should consider a tax to prod businesses into action. “Japan should carefully consider issues like this,” Aso said in Parliament in response to a question from a lawmaker in his party about imposing an extra levy on retained earnings. “I share your concerns,” he said. Companies are piling up savings by ¥2 trillion (RM61.6 billion) a month, a pace that “isn’t normal,” Aso said. Prime Minister Shinzo Abe and central bank chief Haruhiko Kuroda have urged companies to plough more money into higher pay for workers and capital spending to back their effort to lift the economy out of two decades of stagnation. — Bloomberg

FRANKFURT: The European Central Bank (ECB) made more than €1 billion (RM4.04 billion) of extra funding available to Greek lenders as eurozone finance officials told the Athens government it’s time to prove it can be trusted. The Governing Council handed Greece the biggest increase in emergency funding in a month, raising the limit to just over €71 billion in its weekly telephone conference on Wednesday, according to two people familiar with the decision. The Frankfurt-based institution’s move is its latest to defer a financial meltdown in Greece as eurozone governments hold back bailout money, complaining Prime Minister Alexis Tsipras hasn’t convinced them his economic plan can meet their requirements. Greece has until Monday to offer sufficient detail on the programme, after finance ministry deputies reviewed the situation on a Wednesday conference call. “It would be tragic if Greece gives up the reform process now and its achievements are thrown away,” ECB Governing Council member Jens

NEW YORK: Google’s search for chief financial officer (CFO) should have it feeling lucky. There’s a dearth of executives with the financial, tech and government knowhow needed to help run a US$400 billion (RM1.46 trillion) company. Even fewer women fit the bill. Silicon Valley and Wall Street just can’t find people like Morgan Stanley CFO Ruth Porat fast enough. The challenge is to create more like her. Porat grew up in Palo Alto, California, and graduated from Stanford before embarking on an almost

three-decade career in investment banking. She was co-head of Morgan Stanley’s tech investment banking group amid the dot-com boom and then led the bank’s financial institutions group during the financial crisis. Porat also advised the US Treasury on the bailout of Fannie Mae and Freddie Mac. The last five years have been spent assisting boss James Gorman navigate the difficult regulatory and industry climate to reshape the institution. Such rare work experience will serve Google well. The dominant search engine is spending more time with authorities around the

Schlumberger fined US$232.7m for breaking Iran, Sudan sanctions WASHINGTON: French-US oil services giant Schlumberger Ltd was fined US$232.7 million (RM854.009 million) by the Justice Department on Wednesday for violating sanctions on Iran and Sudan. Fully owned subsidy Schlumberger Oilfield Holdings Ltd admitted guilt to one count of “knowingly and wilfully conspiring to violate” the US International Emergency Economic Powers Act, under which US sanctions are applied, the department said. According to the charges, the company’s Texas-based drilling and measurements unit provided services to Iran and Sudan between 2004 and 2010 and tried to hide the fact from authorities. — AFP

Sri Lanka promises port project to resume after problems ‘sorted’ BEIJING: China said yesterday that Sri Lanka’s visiting president had promised work would resume on a controversial Chinese-backed port development in Colombo that his administration had earlier suspended. Citing a lack of government approvals, Sri Lanka halted the US$1.4 billion (RM5.13 billion) port city project, straining ties with its biggest investor. China defends the project, saying it is in line with local laws and any cancellation would deter foreign investors. Sri Lankan President Maithripala Sirisena told Chinese President Xi Jinping that work would resume after problems are “sorted out”, said a Chinese foreign ministry official. — Reuters

Jakarta seeks major role in Chinese-led infrastructure bank

A man with his child making a transaction at a Eurobank ATM in Athens, Greece. Eurozone finance officials told the Athens government it’s time to prove it can be trusted. Photo by Reuters

Weidmann, the Bundesbank chief, said in Munich on Wednesday. That comment was echoed by Governing Council member Yannis Stournaras, the head of the Greek central bank, who spoke later the same day in London. “Grexit would deliver no benefit

but a lot of pain,” he said. “The new Greek government has a unique opportunity to implement bold structural reforms, which would be backed by a large majority of political forces in the country. This is in my view a historical opportunity which should not be missed.” — Bloomberg

Google’s CFO search should have it feeling lucky BY ROB ERT C Y RA N

IN BRIEF

world. It has expanded its lobbying budget to become the largest in the tech industry. Trustbusters are poking around, and Google’s ambitions now extend to heavily regulated sectors including telecom, healthcare, autonomous vehicles and payments. Google’s mountain of cash also keeps growing, and now exceeds US$60 billion. Managing this hoard effectively, while minimising taxes, is a complex task. Investors may love the rapid growth, but they also crave safe hands on the till and a veteran manager of risk. Facebook and Twitter also

have recruited bankers to be CFOs. At a market value five times that of Morgan Stanley, Google will present Porat with new complications. Given Wall Street’s reputation in IT, she may also have some technological catching up to do. And Porat will be finding her way as an outsider in a company tightly controlled by its two founders. Not many come armed with the skills necessary for such a position, but there are a growing number of them to fill. The biggest lesson from this latest hire is just how big a job-training task Corporate America has ahead of it. — Reuters

JAKARTA: Indonesia wants to play a major role in a new Chinese-led Asian infrastructure bank, with at least the vice-president’s position reserved for the Southeast Asian country, the finance minister said. The US$50 billion (RM183.50 billion) Asian Infrastructure Investment Bank (AIIB), expected to start operations by the end of the year, is attracting a growing list of countries from Britain to India to New Zealand. “We are fighting to get a position in the AIIB ... because most likely we will be the biggest client,” Finance Minister Bambang Brodjonegoro said. — Reuters

Singapore savings bonds — new option for retail investors SINGAPORE: A new type of government bond will debut here as part of a move to make low-cost investment options more widely available to retail investors, The Straits Times reported. The Singapore Savings Bonds (SSBs) will be launched by the government, Senior Minister of State for Finance and Transport Josephine Teo announced at an investment industry event yesterday. She said the SSB will be safe investments that are principal-guaranteed by the government, which means the initial outlay is protected.

26 WORLD

FR I DAY M ARC H 27, 2 0 1 5 • TH EEDGE F I N AN C I AL DAI LY

Co-pilot deliberately crashed plane: prosecutor He was alone at the controls while the pilot was outside banging on the door BY MA RC B U RL EIGH & D EL PHI NE TOUITOU

SEYNE (France): The young co-pilot of the doomed Germanwings flight deliberately crashed the plane into the French Alps after locking his captain out of the cockpit, but is not believed to be part of a terrorist plot, French officials said yestersday. The 28-year-old co-pilot “deliberately” initiated the plane’s descent, Marseille prosecutor Brice Robin told a press conference in which he revealed the details of recordings made by the Airbus’ cockpit flight recorder in the final minutes before the crash that killed all 150 aboard. “The co-pilot is alone at the controls,” Robin said. “He voluntarily refused to open the door of the cockpit to the pilot and voluntarily began the descent of the plane.” There was no immediate clue to the motive of the co-pilot, but investigators appeared to rule out terrorism. “At this moment, there is no indication that this is an act of terrorism,” Robin said, adding that the co-pilot, identified as Andreas Lubitz, had no known terrorist connection. “He was not known to us.” Despite the horrifying scenario of a rogue co-pilot sending the Germanwings crew and passengers to their deaths, Robin said that the passengers on board probably were unaware “until the end”. “The screams aren’t heard until the end,” he said.

Robin said the 28-yearold co-pilot ‘deliberately’ initiated the plane’s descent. Photo by Reuters

All six crew and 144 passengers died “instantly,” he added. The co-pilot, who deliberately set the controls “to accelerate the plane’s descent” into the side of a mountain in a region famous for its ski resorts, “was conscious until the moment of impact,” Robin said. The shocking new information was released as families and friends of victims began arriving in France to travel to the remote mountainous crash site area, where locals have opened their doors in a show of solidarity with the grieving relatives. Two planes arrived in southern France yesterday from Barcelona and Duesseldorf with families and friends. Tents were set up for them near the crash site area to give DNA samples to start the process of identifying the bodies of loved ones, at least 51 of whom were Spaniards and at least 72 Germans. Meanwhile, the remains of vic-

Four rebel suspects killed, 22 arrested in Thai south clash PATTANI: Four suspected insurgents were killed and 22 others arrested during a firefight with security forces in Thailand’s deep south, police said yesterday, in the latest clashes to hit the restive region. Thai military, police and rangers laid siege to To Kood village in Pattani province on Wednesday evening after a tip-off about potential militants — who are fighting for greater autonomy for the Muslim-majority southernmost provinces. “There were about 30 suspected militants when we surrounded the village but some managed to flee to nearby mountains,” local commander Mana Dechawarit told AFP. “The clash lasted for one hour.” According to official police reports, the dead suspects were all Muslim men aged between 23 and 32. Those arrested were also all Muslim men, currently detained in a military camp, Mana said. A patchwork of disparate, but seemingly well-organised rebel groups are calling for a level of autonomy for the culturally distinct south, bordering Malaysia, as well as an amnesty for their prisoners and wanted fighters. Thailand, a predominantly Buddhist nation, annexed the region more than 100 years ago and stands accused of perpetrating severe rights abuses as well as stifling the distinctive local culture through clumsy — and often forced — assimilation schemes. Conflict analysts Deep South Watch say more than 6,300 people — the majority civilians — have been killed in the bitter 11-year insurgency mainly in the southernmost provinces of Pattani, Narathiwat and Yala. Mana said none of the 50 security force members involved in the raid was injured in the clash, during which police seized three AK-47s, one pistol, and one grenade. — AFP

tims, found scattered across the scree-covered slopes, were being taken by helicopter to nearby Seyneles-Alpes. A mountain guide who got near the crash site said he was unable to make out recognisable body parts. “It’s incredible. An Airbus is enormous. When you arrive and there’s nothing there ... it’s very shocking,” said the guide, who did not wish to be identified. The crash site, which is situated at about 1,500 metres altitude, is accessible only by helicopter or an arduous hike on foot. French President Francois Hollande and German Chancellor Angela Merkel flew over the site to see the devastation for themselves on Wednesday. Spain’s Prime Minister Mariano Rajoy also visited a crisis centre near the scene. It was the deadliest air crash on the French mainland since 1974

when a Turkish Airlines plane crashed, killing 346 people. Lufthansa said the aircraft was carrying citizens of 18 countries. Three Americans and three Britons were confirmed among the victims. Argentina, Australia, Belgium, Colombia, Denmark, Holland, Israel, Japan, Mexico and Morocco also had nationals on board, according to officials. Investigators say that once the co-pilot locked himself in, he never talked again. After he sent the plane into its fatal last dive, ground control repeatedly tried make contact and the co-pilot did not answer. “He had no reason not to talk to air control,” Robin said, adding that they could hear him “breathe normally.” “He didn’t reply to a thing. He didn’t say a word. In the cockpit, it was utter silence.” A source close to the enquiry said an alarm indicating proximity to the ground could be heard before the moment of impact. The dead on board flight 4U 9525 included two babies and 16 German school exchange pupils. They were flying from Barcelona to Dusseldorf. A second black box, which records flight data, has not yet been recovered. The New York Times cited a senior military official involved in the investigation as saying the cockpit black box recording indicated the pilot tried unsuccessfully to bash his way back into the cockpit. — AFP

S’pore mourns Lee with unusual tributes SINGAPORE: A Lee Kuan Yew bun or figurine? The death of Singapore’s founding leader on Monday has spawned unusual tributes and business ideas, ranging from the reverent to the ridiculous. As tens of thousands of people pay their respects to the 91-yearold former prime minister’s remains in Parliament ahead of his funeral on Sunday, a mini-industry inspired by Lee’s death has sprouted. Singaporean food chain BreadTalk was forced to apologise after it was slammed online for introducing a new bun it called a tribute to Lee, promising that proceeds from sales would be given to charity. “We regret that this product has caused much concern and appreciate the public’s feedback, which we take very seriously,” the company said on its Facebook page as it pulled the item off its shelves. Even a prominent young member of Lee’s ruling People’s Action

Party (PAP) came under fire for naming an exercise routine he invented the LKY91, after the late leader’s initials and age. One reader reminded the Member of Parliament, Teo Ser Luck, on Facebook to be “sensible enough to know it is the mourning week for [the] whole nation”. One tribute came in the form of an online petition on the website Change.org to rename Singapore’s famed Changi Airport to Lee Kuan Yew International Airport. At least 758 people had signed the petition as of mid-afternoon yesterday. A Singaporean artist, Christopher Pereira, who has been making Lee figurines since 2009, said business was brisk following the leader’s death. He had set up a stall near parliament. “Over the last few days, I have been getting an overwhelming number of orders, as people want to buy them as a tribute to him,” said Pereira.—AFP

IN BRIEF Cambodia unveils memorial at brutal Khmer Rouge prison site PHNOM PENH: Cambodia unveiled a new memorial at a notorious Khmer Rouge prison yesterday to remember the thousands who were tortured and murdered there during the ruthless regime’s rule in the late 1970s. The US$90,000 (RM330,525) tribute, reminiscent of a Buddhist stupa and paid for by the German government, was unveiled in front of survivors of the Tuol Sleng prison in the capital Phnom Penh.” I am satisfied and can die peacefully after seeing this,” Chum Mey, 85, one of the few prisoners who came out of the notorious camp alive told AFP after the ceremony. — AFP

14 dead in scaffolding collapse at Vietnam steel plant HANOI: At least 14 workers were killed and dozens more injured after scaffolding collapsed at a steel plant in central Vietnam, officials said, as rescue teams yesterday searched for bodies still trapped in the wreckage. The labourers were building concrete blocks as part of a seawall project when the accident took place late on Wednesday in the coastal province of Ha Tinh, said Le Minh Dao, office manager of the provincial People’s Committee. “We have pulled out 12 bodies. Two other bodies will soon be rescued from the rubble,” Dao said. — AFP

Twitter chief vows to help Indonesia fight disasters JAKARTA: Twitter Inc chief Dick Costolo said yesterday the microblogging site planned to work with Indonesian authorities to warn people about natural disasters that regularly hit the archipelago, from earthquakes to volcanic eruptions. During a visit to Jakarta, where Twitter opened an office this month, Costolo told reporters that he and Indonesian vice-president Jusuf Kalla had discussions about “government and Twitter working together in times of emergency to make sure in events like flooding, that people can be alerted right away”. He also hailed Indonesia as “one of our largest growth opportunities”. — AFP

Taiwan protesters scuffle with police over flight route TAIPEI: Taiwanese protesters scuffled with police yesterday ahead of China’s launch of a controversial flight route, which they say has been allowed to go ahead despite fears over security risks. The route over the Taiwan Strait is due to be inaugurated on Sunday, despite a backlash over security concerns. Around 40 protesters entered the lobby of the headquarters of the Mainland Affairs Council — Taiwan’s top China policymaking body — in the capital Taipei to voice their anger. — AFP

W O R L D 27

F R I DAY MA RC H 27, 2015 • T HEED G E FINA NCIA L DA ILY

Saudi launches strikes on Huthi rebels Ten-nation coalition acting to prevent fall of embattled Yemen president BY FAWA Z A L- H A I DAR I

ADEN (Yemen): Saudi warplanes bombed Huthi rebels in Yemen yesterday, launching a military intervention by a 10-nation coalition to prevent the fall of embattled President Abedrabbo Mansour Hadi. The rebels and their allies within the armed forces were closing in on main southern city Aden where Hadi has been holed up since fleeing the rebel-controlled capital Sanaa last month. The advance raised fears in Saudi Arabia that Shi’ite minority rebels would seize control of the whole of its Sunni-majority neighbour and take it into the orbit of regional rival Iran. The Saudi ambassador to the United States said that the operation had begun with air strikes but that the coalition stood ready to do “whatever it takes” to protect Hadi’s government. Iran immediately condemned regional rival Saudi Arabia yesterday for launching air strikes on Huthi rebels in Yemen, saying it was “a dangerous step” that violated “interna-

NY arrests subway sex offender after online campaign NEW YORK: A 21-year-old woman was asleep on the New York subway when a man thrust his hand up her skirt and groped her in a shocking sexual assault. Fellow passengers at the time did nothing — apart from the one who filmed the assault, footage of which wound up on Internet porn sites. Now, after two years and an online campaign led by the victim, a suspect has finally been arrested. Elisa Lopez had initially slept on, unaware of what was happening. When she suddenly woke up, she punched her attacker in the face and ran off the train in Midtown Manhattan. That was Oct 20, 2012. It was only when a friend called to say there was a video of her circulating online that Lopez realised the extent of the attack. Unbeknown to her, a passenger had filmed the assault using his cell phone and uploaded the footage to the Internet, where it appeared on YouTube, porn sites and even the news. “I was in disbelief,” Lopez said last December. — AFP

People searching for survivors under the rubble of houses destroyed by an air strike near the Sanaa Airport yesterday. Photo by Reuters

tional responsibilities and national sovereignty”. Foreign ministry spokesman Marzieh Afkham said the military action would “further complicate the situation, spread the crisis and remove opportunities for a peaceful resolution of Yemen’s

internal differences”. “This aggression will have no result except to spread terrorism and extremism, and increase insecurity throughout the region,” she said in a statement, calling for an immediate halt to the air strikes. Huge explosions were heard in

Sanaa as warplanes pounded the airbase adjacent to the international airport and other locations, an AFP correspondent reported. At least 13 civilians were killed when seven homes near the airbase were hit, a civil defence source said. — AFP

Yemen is teetering on the brink of civil war as turmoil has grown since Huthis launched a power grab in February. Islamabad has long-standing close ties to Saudi Arabia, and foreign office spokesman Tasnim Aslam said the kingdom had asked Pakistan to join the coalition. “I can confirm that we have been contacted by Saudi Arabia in this regard. The matter is being exam-

ined. That’s all I have to say at the moment,” she said at a regular press briefing. The official Saudi Press Agency said earlier that Pakistan — along with Egypt, Jordan, Morocco and Sudan — had expressed desire to participate in the operation. Egypt and Jordan have confirmed that they will join Qatar, Kuwait, Bahrain, the United Arab Emirates and Saudi Arabia in the coalition. — AFP

Mother jailed for circumcision of daughter KATIOLA (Ivory Coast): A mother who took her four-year-old daughter to be circumcised was sentenced to one year in prison on Wednesday in the north of Ivory Coast, where such convictions are rare. A relative who accompanied her for the procedure on March 11 received the same jail term, as well as a fine of 360,000 CFA francs (RM2,210), in what prosecutors said was a “warning” to those still carrying out female genital mutilation on young girls. Another mother, whose fiveyear-old daughter was also mutilated in the same village, was acquitted, while the person who carried out the circumcisions has gone on

Kerry presses Iran in Switzerland as nuclear deadline looms LAUSANNE: US Secretary of State John Kerry and his Iranian counterpart held downto-the-wire talks in Switzerland yesterday, with US officials insisting contours of a historic nuclear deal were in sight just days before a deadline. “We very much believe that we can get this done by [March] 31,” said a senior state department official travelling on Kerry’s plane to the Swiss lakeside city of Lausanne. “We can see a path forward here to get to an agreement; we can see what that path might look like,” the official told reporters, cautioning, however, that this does not mean they will get there. — AFP

Arabia halts flights at seven airports near border

Pakistan ‘examining’ Riyadh request over Yemen intervention ISLAMABAD: Pakistan is examining a request from Saudi Arabia to join a coalition to defend Yemen’s president against advancing rebels threatening his stronghold in Aden, Islamabad said yesterday. The Gulf kingdom has begun air strikes against Shi’ite Huthi rebels and the Saudi ambassador in Washington said a coalition of 10 countries, including Pakistan, was being formed to protect the Yemeni government.

IN BRIEF

the run and is wanted by police. The sentence is the lowest possible under Ivorian law. “This is a warning,” said prosecutor Hamed Diomande. Despite efforts by aid workers to raise awareness, he said: “You (the mothers) continue to circumcise your children.” “Next time, the punishment will be heavier,” he continued. Female genital mutilation is a “tradition”, one of the defendants said in court, saying they did not know it was against the law and promised to never do it again. Nine women were sentenced to jail terms in 2012 for the female circumcision of around 30 young

girls in Katiola, in what the United Nations said was the first criminal prosecution of its kind in Ivory Coast. Female circumcision affects around 38% of the female population in Ivory Coast, according to the UN Children’s Fund (Unicef ). The practice is particularly prevalent among northern Muslims and animists in the west of the country where up to 80% of females are circumcised despite a 1998 ban and numerous initiatives aimed at eradicating it. Wednesday’s conviction is “a positive sign”, said Louis Vigneault-Dubois, spokesman of the Unicef in Ivory Coast. — AFP

RIYADH: Saudi Arabia halted flights at seven airports near the Yemeni border yesterday as it launched air strikes against Huthi rebels in its southern neighbour, the civil aviation department said. “The General Authority of Civil Aviation of Saudi Arabia announced a temporary suspension of international and domestic flights to and from airports in the south of the kingdom from dawn on Thursday (yesterday),” the department said in a statement. Flights have been halted at Jazan, Abha, Wadi al-Dawasir, Bisha, Sharurah, Najran and al-Baha until further notice. — AFP

Boko Haram conflict sees spike in civilian deaths LAGOS (Nigeria): More than 1,000 civilians have been killed in Boko Haram attacks in the first three months of this year, Human Rights Watch (HRW) said yesterday. “Each week that passes we learn of more brutal Boko Haram abuses against civilians,” the group’s Nigeria researcher Mausi Segun said in an emailed statement. “The Nigerian government needs to make protecting civilians a priority in military operations against Boko Haram.” HRW estimates that at least 3,750 civilians died during Boko Haram attacks in 2014 and that the deaths in the first quarter of this year were up on the same period 12 months ago. — AFP

23 suspects captured over Tunis museum attack TUNIS: Tunisia said yesterday that it arrested 23 suspects in connection with last week’s jihadist massacre at the country’s national museum. “23 suspects including a woman have been arrested as part of a terrorist cell involved in the attack,” Interior Minister Najem Gharsalli told journalists, adding that 80% of the cell had been broken up. All of those arrested were Tunisians, he said, adding that another Tunisian, two Moroccans and an Algerian suspected of being members of the cell were on the run. — AFP

28

live it!

FR I DAY M ARC H 27, 2 0 1 5 • TH EEDGE F I N AN C I AL DAI LY

FR I

WELLBEING . THE ARTS . WINE+DINE . STYLE+DESIGN . LEISURE

Personal ASSISTANT COMPI L ED BY HANNAH M ER ICAN

WORK. LIFE. BALANCE

Jod

SING along to some much-loved classics this weekend at the Dewan Filharmonik Petronas (DFP) with Malaysia’s King of Pop Jamal Abdillah. Jamal will take the audience on a musical journey from his humble beginnings in Teluk Intan, Perak, to his present stature as one of the most prominent male singers in this region. Listen to the Malaysian Philharmonic Orchestra’s (MPO) symphonic interpretations of some of his biggest hits such as Kekasih Awal Dan Akhir, Penghujung Rindu, Derita Cinta, Samrah Mentari, Keluhan Perantau, Azura and a medley of P Ramlee’s hits such as Putus Sudah Kasih Sayang, Hujan Di Tengahari and Tunggu Sekejap. The MPO will be led by its resident conductor Ciaran McAuley. Tomorrow and Sunday at 8.30pm and 3pm respectively at the DFP, Petronas Twin Towers, KLCC. Tickets are RM180, RM280, RM380 and RM480, call (03) 2051 7007 or email dfp_boxoffi[email protected]. my to purchase.

JOIN guitarist, composer and educator Az Samad this weekend for an intimate round of performances with Alexis Bistro’s Songwriters Playground, where songwriters perform both some of their best material and debut new songs they’re working on. This time, Reza Salleh and Anna Chong will take hot seat as they take turns at the mike, led and supported by Az. 10pm today and tomorrow at Alexis Ampang, Great Eastern Mall, Jalan Ampang, Kuala Lumpur. Admission is free, for reservations call (03) 4260 2288.

WATCH Looking for Richard this Sunday at KLPac. The film, Al Pacino’s directorial debut, is part documentary, part performance and delves into the historical context and truth of Richard III. Also featuring interviews from acclaimed actors such as Kenneth Branagh, Vanessa Redgrave, Kevin Kline and Derek Jacobi, Looking for Richard was first presented at the 1996 Cannes Film Festival and is a unique way at examining one of the Bard’s greatest works. Starring Al Pacino, Kevin Spacey and Winona Ryder, the film will be screened at 3pm on Sunday at Indicine, KLPac, Jalan Strachan, Kuala Lumpur. Admission is free, call (03) 4047 900 or visit www.klpac.org for more information.

The Rickshaw Run is a pan-Indian adventure that boasts no set routes and no back-ups.

FULL SPEED

ahead An amazing adventure through India on a tuk-tuk

BY QUAH S U ANN

W

hat on earth could possibly possess someone to take on a 2,500km journey across India in a rickety old tuktuk? Well, apparently, stumbling across a YouTube video while in between jobs will do the trick. When Inessa “Nessa” Fouquet, who’d just quit her job in Singapore to move to Malaysia with her fiancé, Hafiz Faizal clicked play on YouTube on one fateful day, she was instantly enthralled with what she saw — The Rickshaw Run, a thrice-yearly charity race organised by United Kingdom-based The Adventurists. They host a variety of adventure races each year, with the goal of raising funds for charities around the world. The Rickshaw Run is just one of their many popular races, done in an iconic “7 horsepower glorified lawnmower”. With three routes taking place in January, April and August; it’s a pan-Indian adventure that boasts no set routes, no back-ups, the promise of multiple breakdowns, getting lost and hopelessly stuck … basically, intimidating things that only the brave or wildly clueless attempt to tackle. Teaming up with another friend who was in between jobs, Nik Johann Annuar, the trio named themselves Team Jenggols and started making plans to conquer

Team Jenggols (from left) Johann, Nessa and Hafiz.

India in a vehicle that isn’t remotely capable of moving any faster than 55kph … downhill. After managing to raise the required £1,000 (RM5,468) for Cool Earth—a charity that pledges to save at-risk rainforests and shield millions of acres of neighbouring forests by empowering local people and giving them the resources they need to keep their forests intact — Johann, Nessa and Hafiz flew to India with a pittance in their pockets but their minds set on an unforgettable adventure. When they met their tuk-tuk; the auto-rickshaw that would be their trusted companion for the next two weeks, they cleverly christened it “Appu” — a name that doesn’t get more Indian. With broken headlights and an engine that sim-

ply would not stop breaking down, Appu ended up only being able to make headway during the day. After spending several hours on a darkened stretch of road on the first day with only their iPhone flashlights as a source of illumination and fearing for their lives, the trio wisely decided to stop trying to drive at night. Soon, though, they started to really embark on their epic journey and began to appreciate the friendliness of the locals, the beauty and simplicity of the terrain, and the infinity of the vast landscape before their eyes that constantly changed as they traversed muddied backwater paths. From their starting point at Kochi in the south to their finish line in Jaisalmer in the north, the trio made all sorts of unlikely friends — from kids playing football to fellow tuk-tuk drivers and mechanics who did not speak English. “It was difficult when Appu broke down because we couldn’t explain the problem to the mechanics. Tuk-tuk drivers are considered the bottom of the food chain, so to speak, so none of them could really speak English. So we had to improvise and Hafiz discovered that if he spoke English in an Indian accent, they could understand him better,” said Johann. While enduring nights in dilapidated motels and gruelling days travelling through the countryside, they each got to reflect on not just their lives, but the meaning of life in general, and learn how to take one day

Hum for t

at a Lik try wh tha thi

the du pab diffi

do I’ve um sel of i

den you it d Ha

rick of t sou all peo pie sor onl Joh wit wh not

to J Ne dia don defi is f tha onl ine mu For Ric

D

pu adevoad one on ely ht. ally gan als, ain, bed as hs. the r in unball ics

oke the rivood uld rooke uld . ted ugh on life day

live it! 29

F R I DAY MA RC H 27, 20 15 • T HEED G E FINA NCIA L DA ILY

WELLBEING . THE ARTS . WINE+DINE . STYLE+DESIGN . LEISURE

FILM

BY QUAH S U ANN

The Gunman Jodhpur, looking over the majestic Mehrangarh Fort.

Humayun's Tomb in Delhi, the inspiration for the Taj Mahal.

at a time, just like the Indians do. “I used to get really worked up by everything. Like in the beginning of the trip, I was always trying to keep to a schedule and would freak out when we fell behind. But after a while, I realised that there was really no point in worrying about things that I couldn’t control,” explained Nessa. In fact, one of the most important things that the three of them learned about themselves during the trip was that they are actually capable of doing something so adventurous, so difficult, but yet so rewarding. “I never really thought that I would be able to do something like this because I’ve travelled, but I’ve done stupid travelling — shopping, monuments and stuff. This was like throwing yourself into the deep end, and trying to swim out of it. But it’s the best way to travel,” Nessa said. “This whole trip has made me more confident and taught me that you can do anything if you want to — you just need to get off and get it done yourself instead of relying on others,” Hafiz declared. Of the 90 teams that took part in this particular rickshaw run, there was a significant percentage of them who were on an Eat Pray Love-esque soul-searching sort of trip. They were made up of all sorts of people: disillusioned bankers, married people going through a mid-life crisis, to some hippie types who’d declared that accomplishing these sort of cross-country trips was their purpose in life. Surprisingly, though, Team Jenggols was the only team with Asians in the entire race. In fact, Johann and Hafiz felt like they easily blended in with the locals, and seldom encountered people who looked at them weirdly — except for those who noticed that they were travelling with a white girl. After their gruelling two-week trip from Kochi to Jaisalmer was completed, Johann, Hafiz and Nessa spent a further two weeks just exploring India — visiting touristy sites this time. They’re not done, though. As soon as they can, they are most definitely heading back to India again. If one thing is for sure, it is that all the trials and tribulations that they faced on The Rickshaw Run have not only changed them forever—it has made them inexplicably in love with one of the most historical, multicultural and intriguing countries on earth. For information about The Adventurists and The Rickshaw Run, visit www.theadventurists.com.

Director: Pierre Morel Cast: Sean Penn, Jasmine Trinca, Javier Bardem Rating: 2.5 out of 5 Length: 115 minutes Opening: Now showing Plot: Sean Penn as ex-special forces officer and military contractor, Jim Terrier assassinates a minister in the Congo, only to find himself being hunted down eight years later. IT is a bit odd seeing Sean Penn in a Liam Neeson a la Taken sort of role — bare chested for the most part and handling a gun like it’s one of his limbs — so technically, fans of Penn should be intrigued and excited to see him in an action role. But with a weak plot and script, The Gunman fails to deliver. Unless of course you’re an action junkie with little interest in storylines. This movie doesn’t do anything that hasn’t already been done before in countless other action films — from the damsel in distress to a repentant assassin and the sheer number of never-ending gunfight sequences. That’s not to say that Penn has been miscast; after all, he sports a very respectably ripped physique that the movie tries to play up whenever it can. Is it because there isn’t really much else to look forward to? Even the talented Javier Bardem, who usually brings as much heart and soul into

his movies as Penn does plays a character that is woefully under-developed, pathetic and not just unlikable, but thoroughly despicable. The Gunman revolves around Jim, who’s supposedly seen the error of his ways and tries to make amends by returning to the Congo as a humanitarian worker. That doesn’t last, though. Not even an hour into the movie and he goes on another killing rampage, taking out whoever stands in his way. We catch glimpses of Jasmine Trinca’s talent as an actress but you will be left disappointed that the director did not utilise more of her acting skills, and instead has her screaming like a helpless teenager 90% of the time. Playing Annie, Jim’s love interest, Trinca plays a female doctor on a mission to Congo to save lives, only to find herself incomprehensibly in love with Jim — and that pretty much sums up her entire character. Viewers will walk away from the movie wondering what the director, screenwriters and producers were hoping we’d learn from it. There certainly isn’t a moral of the story, and neither is it an epic love story that turns sappy, romantic hearts to mush. What it is, is basically, Sean Penn telling the world what resides under his T-shirt — what we never got to see in his best films, I Am Sam, Milk and Mystic River.

PICK OF THE DAY UPLIFT your mood with Calvin Klein’s new CK Free Energy fragrance. This refreshing and aromatic fragrance contains bergamot, bitter orange at the top, lavender and jasmine in the middle and musk, cedarwood and ginger at the base, all of which are bound to satisfy your senses. This musky scent is inspired by the sunrise and will uplift your day from the start. CK Free Energy EDT spray (100ml) is available for RM299 at beauty counters and department stores nationwide.

30

live it!

FR I DAY M ARC H 27, 2 0 1 5 • TH EEDGE F I N AN C I AL DAI LY

WELLBEING . THE ARTS . WINE+DINE . STYLE+DESIGN . LEISURE

Zen TODAY

Without continual growth and progress, such words as improvement, achievement, and success have no meaning. — Benjamin Franklin

ICONIC MUSEUMS adapt to mass tourism

M

ass tourism, spurred by cheap flights and richer emerging economies, is forcing the world’s top museums to rethink their welcome, notably by boosting access, embracing apps and improving ancillary services such as eateries and gift shops. The overhaul is dictated by the sheer numbers of visitors crowding galleries to catch a glimpse of the Mona Lisa, a Van Gogh canvas or a Michelangelo statue. Nearly 10 million people a year pass through the Louvre, seven million visit the British Museum, and six million go to the Met in New York. “The Louvre was conceived for five million people. For the past three years straight we’ve had more than nine million,” noted the president of the vast Paris museum, JeanLuc Martinez. He has launched a Pyramid Project for the Louvre that aims by mid-2016 to improve entry through redesigned ticket offices, lines and cloakrooms. “If the visitors aren’t taken care of, how can you expect their experience seeing the works of art to pass off well?” Martinez asked. Coping with the crowds is also a concern for Glenn Lowry, director of New York’s Museum of Modern Art, or MoMA. A decade after an extension that saw MoMA double its capacity to three million visitors a year, the museum wants to grow again by tearing down an adjacent building. The famous Palace of Versailles outside Paris is expanding, too. It will soon open a 2,700-sq m space to take

in some of the 10 million people who come each year to tour the chateau and its park. Some museums, aware of their status as prime tourism destinations, are also opting to increase the quality of their restaurants, such as the Guggenheim in Spain, and to develop designer gift shops, mimicking MoMA’s envied retail outlet. Another option to improve access is extending the opening hours. Since 2013, visitors can go to MoMA and the Met in New York every day of the week. The French government is asking the Louvre, Versailles and the Musee d’Orsay to follow suit. But for the head of the Louvre, “the problem isn’t about doing more, but doing better”. The Musee d’Orsay’s president, Guy Cogeval, agreed that finding a way to manage 3.5 million visitors annually was a priority. “Traffic management is one of my big concerns. We are trying to better spread the visitors around” the various sections of the Paris museum. With globalisation, there are not only more and more people trying to squeeze through the doors of the world’s museums, but they hail from many more cultures and countries than in the past. Museums are finding that they no longer cater to a public well-versed in the history and artistic movements on show, but to visitors needing more context and information to process what they are seeing. “We are still far from learning the lessons from this diversification,” said Alain Seban, who has run the Pompidou Centre in Paris for the past eight years. Foreigners make up 70% of the Louvre’s visitors and 80%

The Louvre’s Pyramid Project aims to improve access to its premises with redesigned ticket offices and cloakrooms. Photo by AFP

of Versaille’s, with Chinese in particular a growing contingent. “This imposes another way to receive them and to try to understand what they have come to see,” said the president of the Palace of Versailles, Catherine Pegard. Susan Foister, spokesman for the National Gallery in London, concurred. “We think a lot more these days about who makes up our audience and what they need from their encounters at the National Gallery,” she said. Often in groups or families, tourists from afar tend to take in a museum by making bee-lines for its most famous artworks: the Mona Lisa painting and the Venus de Milo statue at the Louvre, for instance. Polling shows that many visit just one landmark museum per year, and that their average age has dropped significantly. At the Musee d’Orsay 30% of the visitors are under 26, and at the Louvre half are younger than 30. That makes for some unusual success. The Musee d’Orsay, for instance, was surprised to see “a lot of young people” turn up to an exhibition of works by a little-known French painter named Jean-Leon Gerome, whose paintings recalled the heroic dioramas used in video games. So how can the museums adapt to the changing face of their visitors?

“You have to start from the idea that these people know nothing,” said Martinez from the Louvre. References that might seem obvious need explaining, with multiple translations. French museums are applying lessons learnt from starting up outposts in different parts of the country, or abroad. Several museums are ramping up their digital offerings to support their collections, giving visitors the opportunity to load information into their smartphones or tablets before walking the halls. At the Pompidou Centre, where two out of three visitors brandish a smartphone, an application will soon be launched that offers the user a tailored walk-through, based on interests revealed through a quiz. Seban said the future would probably see visits increasingly personalised, with museums borrowing tactics and technology from the big retailers. The Internet is also sustaining a virtual model of the museums that is just as popular as the real thing. The Met’s website last year received more than 26 million visits, while the National Gallery had six million. “It’s paradoxical to present the amount of visitors as a problem,” said Martinez. “A museum’s mission, after all, is to allow the widest public possible the chance to see its collections.” — AFP

S P O RT S 3 1

F R I DAY MA RC H 27, 2015 • T HEED G E FINA NCIA L DA ILY

Australia thrash India to set up World Cup final Clash against New Zealand will take place at MCG on Sunday BY KU L D I P L A L

SYDNEY: Australia put themselves in line for a fifth World Cup title with an emphatic 95-run semi-final victory over defending champions India in Sydney yesterday. Steve Smith hammered 105 off 93 balls and Aaron Finch returned to form with 81 as the hosts piled up 328 for seven after electing to bat on a good pitch at the Sydney Cricket Ground (SCG). India were bowled out for 233

in reply despite an opening stand of 76 between openers Rohit Sharma and Shikhar Dhawan — and a typically defiant run-a-ball 65 from captain Mahendra Singh Dhoni. James Faulkner finished with three for 59, while left-arm fast bowlers Mitchell Johnson and Mitchell Starc claimed two wickets each. Australia will take on tournament co-hosts New Zealand in the final at the Melbourne Cricket Ground on Sunday. The four-time champions, who

last won the title in 2007, have now won all seven World Cup semi-finals they have contested since the inaugural edition in 1975. India will rue a missed opportunity after an impressive campaign earlier in the tournament when they won all seven matches, piling up 300 or more runs each time they batted first and bowled out their rivals in every game. But they failed to dismiss Australia as in-form seamer Mohammad Shami went for 68 runs in 10

wicket-less overs and Umesh Yadav conceded 72 runs in nine overs for his four wickets. A sell-out crowd of some 42,000 at the SCG was treated to good cricket on a grassless, even-paced wicket that enabled batsmen to play shots freely. Smith and Finch shared a second-wicket stand of 182 before India hit back with quick wickets as the hosts stumbled from 191 for one in the 35th over to 248 for five in the 43rd. — AFP

Alonso raring to go after clearing crash confusion Alonso says he never lost consciousness or suffered memory lapses as a result of the accident. Photo by Reuters

BY JOHN O’ B RI EN

SEPANG: Fernando Alonso sought to clarify the situation surrounding the pre-season crash that forced him to miss the season-opening race in Australia — the Spaniard said he never lost consciousness or suffered memory lapses as a result of the accident. Alonso moved from Ferrari to McLaren at the end of last season but confusion surrounding a winter testing crash in Barcelona last month left him facing 30 minutes of questions about the accident on his return to the Formula One paddock ahead of this weekend’s Malaysian Grand Prix. “Everything was like a normal concussion,” Alonso told reporters yesterday, hours after passing tests at the Sepang International Circuit

that gave him the green light to mark his return to the team with whom he raced for one campaign in 2007. “I went to hospital in good con-

Nehwal not losing sleep over No 1 ranking NEW DELHI: Badminton star Saina Nehwal has shrugged off mounting pressure — over whether she will become the first Indian woman ever to clinch the World No 1 ranking — at the Indian Open in New Delhi. Nehwal, currently No 2 after reaching the prestigious All England Championship final this month, is expected to snatch the No 1 spot if she wins the tournament in front of a home crowd. But 25-year-old Nehwal, who already has a string of firsts to her name, insisted that numbers do not count for much. “Whether my ranking is one, two or 10, it doesn’t matter. For me, what matters is that I should stay fit and whoever I play against — I give my 100%,” she told AFP after cruising past a qualifier in the opening round on Wednesday. Nehwal said she was still feeling some pain from a slight shoulder injury suffered during the All England Championship where she lost to Spain’s Carolina Marin in the final. Being the first Indian woman to win a Super Series title as well as the first to win an Olympic medal at badminton, Nehwal might again meet Marin, seeded second in the US$275,000 (RM1 million) Super Series event. “I am recovering from the injury. Of course, a bit of pain is there but every sportsperson has to face some fitness problems or others,” Nehwal said. “For the last six to seven months, I have been playing really well. Actually, I did not expect to play so well,” she said. — AFP

dition and there was a time — about four hours — that I don’t remember, but that was completely normal due to the medication they gave me to go into the helicopter.

“I didn’t wake up in 1995 ... I didn’t wake up speaking in Italian or any of the states that were reported. I remember the accident and all things from the following days.” The cause of the crash remains something of a mystery to both the driver and his team, but the double world champion was certain the blame could be laid upon a steering issue. “There is nothing clear in the data that we can spot and say ‘it was that’, but we definitely had a steering problem in the middle of turn three,” he added. — Reuters

Fit-again Bottas makes cockpit changes for Malaysia BY J O HN O ’BRI E N

SEPANG: Valtteri Bottas is confident that his back has fully healed — and he will be fit for the Formula One Malaysian Grand Prix this weekend — after he missed the season-opening race in Australia despite qualifying as the sixth fastest in his Williams. Claiming that the pain felt “like a knife stabbing in his back” on the eve of the race, Bottas heeded the advice of the sport’s governing body not to compete in Melbourne but was passed fit yesterday for the second round in Sepang. “At the end of last week, I could do something without any pain and during the weekend I could do some training, swimming and cross-training without any pain,” he told reporters. “We’ve been doing everything

we can in this short space of time but luckily there were two weeks [of gap] and I really feel confident about getting back in the car. “It has healed really well and it’s going to keep getting better and better all the time.” Bottas added that he was working with Williams mechanics to adjust his seat and pedal positions in the cockpit to lessen the impact on his back as it continues to heal. “The back is in a more neutral position in the car, so there is less pressure for the discs. Now, I think we have got it right,” he said. “It’s quite a big amount of changes to make sure everything is in a neutral position with the back, so when the compression comes, it goes to all the discs with similar pressures,” he said. — Reuters

IN BRIEF Hamilton laughs off Horner’s call for level playing field SEPANG: World champion Lewis Hamilton admitted he was amused by Red Bull boss Christian Horner’s call for Formula One to forcibly reduce his Mercedes team’s advantage. “I find it quite funny,” the Briton told reporters in Sepang yesterday ahead of the Malaysian Grand Prix. “It’s only been one race, so to already have comments after the first race is what I find funny.” Hamilton noted that Horner made few complaints when Red Bull claimed four constructors’ titles in a row from 2010 — with Sebastian Vettel winning the world title of each season. He said Mercedes never voiced any displeasure during that period. “It’s an interesting opinion coming from individuals who have had so much success,” Hamilton added. — Reuters

Williams appoints German Sutil as reserve driver SEPANG: Williams have appointed experienced German racer Adrian Sutil as a reserve driver for the season, the Formula One team said yesterday. “I’m delighted to have Adrian joining our stable of drivers for the 2015 season,” team principal Frank Williams said of the veteran of 128 Grands Prix. “Having most recently raced during the 2014 season also gives him excellent knowledge of the current generation of race cars and new Hybrid power units, which is invaluable for anyone needing to step into the cockpit in 2015,” he said. — Reuters

‘Gloves are off’ between Renault and Red Bull LONDON: Renault Formula One managing director Cyril Abiteboul posted a picture of a pair of boxing gloves on Twitter as he packed for Sunday’s “round two” of the Formula One season in Malaysia — and he may need them. The French manufacturer and former world champion Red Bull has been increasingly an uneasy partner since the introduction last year of V6 turbo hybrid power units. Mercedes, dominant last year, romped to another one-two in the Australian opener on March 15 and Red Bull’s patience is running low. — Reuters

Japanese baseball club ordered to pay fan TOKYO: A judge yesterday ordered a professional Japanese baseball club to pay a woman US$350,000 (RM1.28 million) in damages after she was hit in the face and partially blinded by a foul ball. The woman, in her 30s, filed a lawsuit against the Nippon Ham Fighters and Sapporo city where the team is based after she lost sight in her right eye, caused when the stray ball struck her during a game in August 2010. The ball shattered her cheekbone and ruptured the eyeball. — AFP

3 2 S P O RT S

FR I DAY M ARC H 27, 2 0 1 5 • TH EEDGE F I N AN C I AL DAI LY

High expectations as Kane debuts for England With 29 goals for Spurs this season, he is the Premier League’s hottest property BY TOM WI L L I A MS

LONDON: Harry Kane is expected to make his England debut in today’s 2016 European Championship qualifier at home to Lithuania and already finds himself cast as English football’s potential saviour. With 29 goals for Tottenham Hotspur this season, the 21-year-old has become the Premier League’s hottest property and his England debut is being billed as the most keenly anticipated since Wayne Rooney’s 12 years ago. A graduate of Tottenham’s academy, who was born 8km from White Hart Lane, Kane was loaned out to four different lower-league clubs before making his explosive breakthrough this season. Amid a steady decline in the number of English players in the Premier League, Football Association chairman Greg Dyke cited Kane’s example this week as he warned about the dangers of denying promising young players opportunities. “The question that needs to be

Premier League clubs back in black BY TOM WI L L I AM S

LONDON: English Premier League clubs posted a pre-tax profit last season for the first time in 15 years, according to a report released by business advisory firm Deloitte yesterday. The 20 teams in the English top flight in 2013/14 generated a combined profit of £190 million (RM1.04 billion) — the first profit since 1999 and almost four times greater than the previous record of £49 million set in 1997/98. Clubs had accumulated £2.6 billion in pre-tax losses over the last decade, but a new television rights package worth around £5.5 billion that took effect in 2013 helped them balance the books. “Last season was the first in the Premier League’s current three-year broadcast deal,” said Dan Jones from Deloitte’s Sports Business Group. “Combined with strong commercial growth at the highest revenue-generating clubs, this has boosted Premier League revenue 29% to a record £3.3 billion.” Despite the huge rise in revenue, clubs have exercised a deal of restraint in their spending on player wages, which grew by 6% to £1.9 billion. — AFP

Kane (right) training with the England team at St George’s Park, Burton-upon-Trent on Tuesday. Kane could be asked to lead the line alongside captain Rooney. Photo by Reuters

asked is how many other Harry Kanes are there in the academies of English football who cannot get a first-team game?” asked Dyke, who is making it harder for foreign players to get work permits. An unassuming, happy-go-lucky character, Kane has repeatedly confounded expectations this season,

netting doubles against Chelsea and Arsenal, as well as a first top-flight hat-trick against Leicester City last weekend. England manager Roy Hodgson has warned supporters not to expect too much, too soon. “I do really hope people in general will have a more reasonable ap-

proach and say, ‘Let’s give this guy a chance,’” said Hodgson, whose side also face Italy in a friendly in Turin next Tuesday. “He is going to have some good and bad games, and hopefully he will have 10 or 12 years in the Premier League and England matches in front of him. Let’s not build him up to the best thing we have ever had or a flop on the basis of a month or two or a couple of games or so.’ But I am delighted for him. If he gets his chance to play in these games, I am sure he won’t let anyone down.” With Liverpool’s Daniel Sturridge sidelined by a hip injury, Kane could be asked to lead the line alongside captain Rooney as England look to preserve their 100% record in Group E. Michael Carrick, meanwhile, is in line to take over from the injured Jack Wilshere at the base of England’s midfield diamond. Sturridge’s clubmate Raheem Sterling should also start, although British media reports suggest he will be released from the squad after the game as he continues to nurse a toe injury. — AFP

Besiktas consider swoop for Cech ISTANBUL: Turkish top flight side Besiktas are stepping up their efforts to sign unsettled Chelsea goalkeeper Petr Cech, with a move even possible before the end of the season, a report said yesterday. The 32-year-old Czech Republic ‘keeper indicated in Prague this week he was tired of sitting on the bench for the Blues after losing the first choice spot to Belgian international Thibaut Courtois. The Fanatik sports daily said that after his comments Beskitas had “accelerated talks” about the player, who has long been a target

for the Istanbul club. Rapidly acquiring a new goalkeeper has become a matter of urgent priority for Besiktas as they head into the finale of Super Lig season as strong contenders for the title along with Istanbul rivals Galatasaray and Fenerbahce. First choice goalkeeper Tolga Zengin is out for up to nine weeks after rupturing a tendon last weekend and had also been heavily criticised for a woeful display in last week’s Europa League defeat to Club Brugge. “It would be wrong for me to say which player we are having talks

about,” club chairman Fikret Orman was quoted as saying by Fanatik. “We are making efforts for the end of the season,” he added. Cech has many other admirers including Premier League duo Arsenal and Liverpool as well as Serie A high-fliers AS Roma and defending French champions Paris Saint-Germain. “I have to do something about my situation because I want to play, not sit on the bench,” Cech, who is under contract until the summer of 2016, said ahead of tomorrow’s Euro 2016 qualifier against Latvia. — AFP

Germany’s World Cup hangover concerns Loew BY RYLAND JAMES

KAISERSLAUTERN (Germany): Eight months after the champagne corks popped following their World Cup triumph in Rio de Janeiro, head coach Joachim Loew has cause for concern as Germany’s Brazil 2014 hangover continues. Only Lukas Podolski’s 81st-minute equaliser prevented Germany suffering a shock defeat to Asian champions Australia in Kaiserslautern on Wednesday in a 2-2 friendly draw. Next comes this Sunday’s Euro 2016 qualifier away to second-from-bottom Georgia with Germany in the unusual position of joint second in Group D, three

points behind leaders Poland and level on seven with Scotland and Ireland. But what would normally be anticipated in Germany as a routine win, now looks like a challenging away tie. “We need to increase the tension and tackle the game there with more concentration,” insisted Loew. “I am always prepared to take risks in friendly games, but we can no longer do that now in qualifiers.” Loew knows Germany can ill afford to drop more Euro 2016 qualifying points. After more than eight years in charge of the national side, this is the first time Germany are not dominating their qualification group for a major tournament under Loew.

A precarious 2-1 win over Scotland last September was followed by October’s 2-0 defeat to Poland in Warsaw and a draw at home to Ireland. The world champions then laboured when minnows Gibraltar were seen off 4-0 in Nuremberg in November, which the visitors’ coach Allen Bula, who was recently sacked, hailed as “great result” for the part-timers, who had previously been thrashed 7-0 by both Ireland and Poland. After Germany finishing 2014 with a 1-0 friendly win over a depleted Spain on a rain-drenched night in Vigo, Loew promised changes and significant improvements in 2015. — AFP

IN BRIEF Moldovan club suspend players for alleged match-fixing TIRASPOL (Moldova): Moldovan top division club Dinamo-Auto have indefinitely suspended two players over allegations of match-fixing, the Tiraspol-based side said. “For the management of Dinamo-Auto, it’s always been and will be important to observe the principles of fair play,” the club, founded in 2009, said in a statement. “We condemn all attacks on the integrity of the game and we urge all, who care about football, to protect it from various negative influences and manipulation.” The Moldovan National Anti-Corruption Agency last week questioned 12 players and officials following the league match between leaders Dacia Chisinau and Dinamo-Auto Tiraspol. Dacia won 6-2. — Reuters

Falcao hints at need to move on from Manchester United BOGOTA: Manchester United’s on-loan striker Radamel Falcao hinted on Tuesday he could leave the club at the end of the season in search of more regular football, but said he was still committed to the English side. Colombia forward Falcao missed last year’s World Cup through injury then moved on loan from Monaco to United where he has seen limited first-team action. “I think any footballer needs to play and is happy playing. I’m totally committed to the club, there are eight matches to go (in the Premier League) and anything can happen,” Falcao told Colombia’s Radio Caracol. “So when the championship ends surely I’ll sit down, do an analysis and decide what’s best for me,” added the 29-year-old. — Reuters

Khedira confirms Real Madrid exit KAISERSLAUTERN (Germany): Germany midfielder Sami Khedira said he will leave Real Madrid when his contract expires at the end of the season. “There is nothing more to say than what I told the sports magazine (Kicker), when there’s anything more, I’ll say it,” the 27-year-old said after captaining Germany to a 2-2 friendly draw with Australia in Kaiserslautern. Having joined Real in 2010 from Stuttgart, Khedira has been linked to Bundesliga side Schalke 04. “This is not a decision against Real, I just want to spice up my career and evolve,” Khedira said. — AFP

Adidas to shift some production from Asia HERZOGENAURACH (Germany): Adidas announced plans to revolutionise the way it manufactures goods to speed up production and allow shoppers to customise more shoes and clothes, to help it accelerate sales and profit growth over the next five years. The German sportswear firm, which has been losing ground for years to fast-growing rival Nike, said it was testing automated production units that would allow it to shift manufacturing from Asia. — Reuters