Legoland Iskandar Starts Construction

Legoland's US$200 million theme park at Iskandar has been laid its first brick to signify the beginning of construction. Sited on a 26-hectare piece of land, Legoland Malaysia Resort, which will open its doors in 2012, is the centrepiece of the Medini North, a lifestyle development that will feature a retail mall, themed and business hotels, and office and residential spaces.

Business Times Singapore reports that Iskandar Investment is hopeful that the building of this theme park will catalyze more global partners to come into the Iskandar region to expedite its transformation into a“thriving new metropolis in Asia”.

A year on since the deal was first inked to build Legoland Malaysia, Legoland Development announced that the construction phase was now in full swing to bring the roller coasters, shows and more than 15,000 Lego models scattered around the theme park to life.

Legoland Malaysia, which is about a 15-minute drive from the Malaysian immigration checkpoint at the Second Link which leads to Tuas, will have a “Miniland” featuring miniature Lego replicas of famous buildings and structures across Asia, including the Petronas Twin Towers, the tallest twin buildings in the world.

Legoland Malaysia is managed by Merlin Entertainments, which operates well-known attractions such as the London Eye observation wheel in England and Madame Tussauds museums.

Singapore's Universal Studios theme park at the Resorts World integrated resort which will open next year will cater more for young adults, while Johor’s two parks the Family Indoor Theme Park in Puteri Harbour and Legoland are targeted at children below the age of 12.

Legoland Malaysia joins its sister parks in Denmark, the United States, Germany and the United Kingdom. Those four parks collectively draw some six million visitors a year. There are also plans to open a Legoland in Dubai by 2015.

Will these Malaysian theme parks have the threshold Malaysian population and the disposable income size to be sustainable? What is the percentage of spill-over effects that they can liberally garner from the Singapore tourist industry?

Only time will tell whether these are good investments or white elephants.

Freedom: Bank of America Corp

I think more banks are paying back their bail out money. This is crucial to have a free hand in what they intend to do without the need to get approval from Federal authorities.

Read this Reuters' report.

'Bank of America Corp today [3 Dec 2009]said it would repay US$45 billion (RM153 billion) of taxpayer bailout funds [Troubled Asset Relief Programme (TARP)]in the next few days, a move that could free the top US lender from pay curbs as it looks to hire a new CEO. The downside will be its vulnerability to further economic shocks.

The announcement is also a shot in the arm for the US Treasury, which has been under fire for the hundreds of billions in taxpayer dollars it has shelled out to corporate America during the financial crisis.

Bank observers said Bank of America's repayment may be the first in a wave of TARP repayments by major US banks that have yet to repay the government bailout funds, including Citigroup Inc and Wells Fargo & Co.

"Once the dam is broken, my bet is we're going to see other institutions announce total or partial repayment plans," said Tony Plath, banking professor at University of North Carolina- Charlotte.

The US government injected US$45 billion into Citigroup, while Wells Fargo received US$25 billion.

A US Treasury official called the repayment a step in the right direction, adding that replacing Treasury investments with private capital would provide a boost to confidence.

The announcement comes as the bank has bristled under US pay czar Kenneth Feinberg's curbs on senior management compensation. It has repeatedly expressed its interest in repaying the funds as soon as possible.

"I didn't think they were in any position to repay TARP. I was looking for that in another 12 to 18 months," said Bill Fitzpatrick, an analyst at Optique Capital Management in Milwaukee. "Given all the risks that are still embedded in the economy, it's more prudent to beef up your capital levels."

Under the terms reached with the Treasury, the bank will sell up to US$18.8 billion in securities that will convert into common stock once shareholders approve an increase in the bank's shares. The remainder of the US$45 billion would be repaid through US$26.2 billion in cash.

The bank is repurchasing all of its outstanding shares under the TARP programme, but not repurchasing the warrants.

"Our intention has always been to exit the exceptional assistance," said Bob Stickler, a company spokesman. "Our goal was to meet our obligation to taxpayers. We see this as a victory for the government's programme, as it did what it was intended to do."'

I think this is an early indicator that all is going to be well with the more well managed banks in America and may well herald the return of more confidence to Wall Street.

Respect the Rights of Witnesses

Much has been spoken and much have been written about the recent Malaysian High Court’s recent ruling that the Malaysian Anti-Corruption Commission (MACC)can only question witnesses between 8.30am and 5.30pm.

After much public discussion, many of them tangential in nature,the Malaysian Bar stepped in to give its learned view. This is the position of the Bar Council's stand on the issue.

Witnesses who aid law enforcement agencies in investigations should surely, at a minimum, be accorded the same protection and rights as accused persons.

However, there is a fundamental distinction between witnesses and accused persons, which must be highlighted. Accused persons can be remanded because they are implicated in the alleged offense, whereas witnesses are integral in assisting the investigation and prosecution process.

It is essential that witnesses, whose testimonies are important in court hearings, not face any actual or perceived intimidation, pressure or coercion during the interrogation process.

The High Court decision relates to the MAAC’s practice of compelling witnesses to appear and be questioned, including for long periods of time that stretch beyond office hours, with no option for them to decline.

The Bar reiterate that if witnesses volunteer to be interrogated outside of office hours, and attend the interview with their legal counsel, any allegation of impropriety or abuse would be immediately dispelled.

Such respect for the Constitutionally-enshrined right to counsel of one’s choice, and adherence to the High Court ruling, will, in the long run, promote transparency and accountability.

Furthermore, witnesses would be encouraged to be forthcoming in assisting with investigations, as they would have no reason to fear the interrogation process or dread being unduly detained for long and unreasonable hours.

We salute the Bar Council for being forthright with its stand.

Off the Timing, as Usual

After three months,Permodalan Nasional Bhd (PNB) finally found it fit to clarify the few disturbing misconceptions on its new product, Amanah Saham 1Malaysia (AS1M). The statement touched on the distribution method, direct fees and charges, as well as the performance benchmark.

In Kuala Lumpur yestersay(2 December 2009), PNB finally found dutch courage to explain some gray areas of the 10 billion-unit fixed price fund of RM1 per unit that was launched in August for all Malaysian individuals, starting with a minimum initial investment of 100 units.

'Idris Kechot,deputy president of Unit Trust told the public that subscribers were free to cash out or sell their units at any time and still be entitled to the annual dividend payment based on the retained units.

“The method of distribution is based on the average sum of the minimum monthly balance of the units during the distribution period. AS1M is a fixed-price fund unlike other price-varied funds that are based on net asset value of the funds,” he told a media briefing yesterday. [This is a comfort aspect as the price would not decline below par.]

Idris said Amanah Saham Malaysia Bhd also had not imposed any sales charge on all its fixed-priced unit trust funds, including AS1M, although the latter’s prospectus stated a sales charge of up to 1% of the invested amount was applicable.[PNB should have clarified this in an errata or addendum to promote more sales which it did not.]

AS1M also did not impose any redemption charge and it had no maturity period, he added.

In terms of performance benchmark, Idris said AS1M was based on average five-year Malaysian Government Securities (MGS) yield as opposed to three-month Kuala Lumpur Interbank Offered Rate that was used in Amanah Saham Wawasan 2020, Amanah Saham Malaysia, Amanah Saham Bumiputra and Amanah Saham Didik.[The three-month Kuala Lumpur Interbank Offered Rate could be higher when BNM increased its overnight inter-bank rate which may be sooner than later if the economy improves.]

“Average five-year MGS yield is a more suitable benchmark due to its objective as an income and a long-term investment fund. Also, the rising inflation environment needs a higher benchmark in order for our unit holders to maintain their ‘real’ rate of return on investment,” he said.[Do you feel this is true?]

AS1M, which has an allocation of 50% for bumiputra investors, 30% for Chinese, 15% for Indians and the remaining 5% for other ethnic groups, has sold some 2.8 billion units. Idris said the decision to uplift the quota would be made before Dec 31.[70% of the Chinese quota has been taken up. The other racial quotas are sadly ignored.]

PNB – the investment manager of nine Amanah Saham trust funds – has seen tremendous growth this year that is translated into 700,000 new subscribers year-to-date compared with 500,000 last year despite the challenging economic climate.

“And the total investment up to October this year was at RM17.8bil compared with RM12bil for the whole of last year,” Idris said.'

Reading this piece of news really creates a bad taste in the mouth. Why is PNB in a passive mode even when the sale of PM Najib's much touted AS1M is fraying at the edge? Also, isn't it obvious that the quota uplift by December 31,2009 will not change the status quo?

Forget About Calcium Supplements!

Al Sears, MD has given some free medical advice today. Don't waste your money on calcium supplements,he said. According to him,do not expect to build strong bones or avoid osteoporosis by taking these supplements.

According to him, osteoporosis isn't caused by a lack of calcium. He cited studies to prove this. One of these was the the complete and well conducted Harvard Nurses' Study. The study followed 77,761 nurses. For 12 years, researchers examined the association between dietary calcium and bone fractures.Conclusion? Calcium intake does not prevent fractures due to bone loss.

The results showed there was no protection from fractures with any dose of calcium intake. Nurses who had the highest calcium intakes actually had an increased risk of bone fracture.

According to Al Sears,an Australian study confirms the result of the Harvard Nurses' Study. This study which also looked at the association between calcium and fracture
risk. After looking at lifetime calcium consumption in over 400 elderly participants,the study concluded that calcium consumption in early adulthood actually increased the risk of bone fractures as the person ages.

Also, doctors in the UK found that calcium and vitamin D did not prevent fractures. The two-year UK study showed that neither calcium nor vitamin D lowered the number of fractures in women over age seventy.

Al Sears explained that it is actually hormones and exercise that controls bone loss.

Bone building is hormonal. In women, estrogens are the main regulators of bone health and breakdown. Progesterone controls the rate of new bone deposition. But the most powerful bone builder in both men and women is testosterone. Testosterone is central for achieving maximal bone mass and strength.

Taking calcium supplements will give you a short-term boost in bone density, but that's it. Over time, your hormones will work against the extra calcium and actually leave your bones more brittle than before.

Al cited this fact.The US has the highest intake of calcium,yet the rates of osteoporosis are the highest in the world.Countries with lower intakes of calcium have lower rates of hip fracture and osteoporosis.

As such,maintaining healthy levels of hormones in the body is one way to keep bones strong.

There is an easy and inexpensive hormone precursor shown to improve the levels of other sex hormones. It's called DHEA (Dehydroepiandrosterone).It is involved in the manufacturing of most major sex hormones in the body,like estrogen and testosterone. DHEA treatments are becoming more common.

This is available over the counter but Al advised taking it without first checking blood levels. He suggested consulting a doctor to measure it before going on this hormone supplement.

According to Al Sears, physical inactivity can lead to weakening of the bones.The bones need to bear weight in order to become strong.So when one does weight bearing activities,one is actually telling the bones that they must become strong in order to continue these activities.

To strengthen bones, one need to push more weight. Challenging muscles and bones with weight bearing exercises is crucial.Walking,cycling, weight training or playing tennis or golf will help.

If a person wants strong bones for life, there are six things that need to be done.

1.Exercise:The best to increase bone density and reduce fractures is body weight exercises(like calisthenics)and resistance training.Make a habit of doing these exercises two or three times a week.Thirty minutes of walking a day will lower your risk of fracture by 30 percent. Whenever you exercise,your muscles pull on your bones. This pressure creates a challenge that your body responds to by increasing bone density. This will ensure that you stay mobile and independent.

2.Skip calcium supplements: Get your calcium through your diet. Eat a variety of small fish, dark, leafy green vegetables, almonds and cashews, or dairy products like milk, cheese, and yogurt. You should be aiming for about 400 mg per day.

3.Take a vitamin D supplement: The recommendation is 400 IU per day. It helps the body to absorb calcium and maintain bone density. Without vitamin D, calcium supplements are worthless. The best source of vitamin D is the sun -10 to 15 minutes of exposure a day should be enough. During the winter, take cod liver oil. It's by far the best supplemental source of vitamin D.

4.Eat your greens:Vitamin K found in dark leafy greens regulates calcium while stabilizing bones in addition to regulating blood clotting.Eat at least one serving of green vegetables like spinach, kale, collard greens, mustard greens, Brussels sprouts or broccoli every day.One study found people eating just 0.1 milligrams of vitamin K daily (about one large serving of greens) were 30% less likely to break their hips than people who ate less than that amount.

Another university study showed that vegetables and herbs improve bone metabolism.Researchers found that rats that missed out on their veggies much lower bone density.5 Another showed that fruits and vegetables increase your bone density. The same study found that dairy products did nothing.

5.Eat foods rich in B-complex vitamins: Your body also uses a variety of B vitamins in bone building.The best sources are liver, eggs, lean meats, yeast, fish, raw nuts, asparagus, broccoli and bananas.

6.Get a blood test: A simple blood test will tell you how your hormone levels affect your bone health. This is the best way to determine the health of your bones and your risk for fracture. Women may need to take natural progesterone. For both men and women testosterone is the most powerful controller of your bone density.

So,do you find this information helpful?