Saved by the Sub-prime Backwash

Plus and the other toll operators can now breathe easy.

With the on-going recessionary pressures weighing heavily on the shoulders of the government, the likelihood of tolled road operations being nationalised by seems remote. Government will need the money more to resuscitate the economy.

Nationalisation of toll operators would not only be costly but more importantly would not have any significant impact on the economy, the business environment as well as the capital markets.

Calls for the nationalisation of toll highways came about early this year particularly of the North South Expressway managed by PLUS Expressways Bhd.

DBS Vickers Research recently stated that the government was most unlikely to invoke an expropriation clause in the toll concession agreement to nationalise PLUS Expressways as it could involve shelling out a total of RM30 billion for the exercise.

Another option is the privatisation route — assuming the target price is RM3.80 per share and with PLUS Expressways’ debt less cash, the cost will work out to be RM15.7 billion. This will definitely over-strained government coffers.

The privatisation of Lingkaran Trans Kota Holdings Bhd (Litrak) — the concession holder of Damansara-Puchong Highway (LDP) — by the government is more likely as it would cost approximately RM1.3 billion to take the company private.

An analyst with a local stockbroking firm who spoke on condition of anonymity said if the government decides to nationalise toll highways, one big issue would be the recovery of its investment.

“The government would not only be saddled with the issue of toll rates but also how it will maintain the highways apart from recovering its investments,” he said.

In terms of financing, he said, the government was already overstretched in funding the nationalisation of the country’s water assets.

The nationalisation of toll highways that would require massive funding would increase the government’s budget deficit and contrary to its intention to reduce the deficit.

The US Non-Farm Income Indicator

In the US, non farm payroll income indicator reflects the nation's economic wealth.

Any slide in this indicator will bring the bears to paw down Wall Street.

So what does the current non-farm income indicator tell us?

Firstly,US employers has shed nearly half a million jobs in June.

Secondly,the unemployment rate jumped to 9.5 per cent, the highest in nearly 26 years.

This certainly dampened early hopes that the recession might be abating and also signalled recovery will not be smooth sailing.

The world awaits for more data on this indicator in July.

Air versus Land

So just when you think it is safe to go to the bank.....

Now competition in the sky has hit the ground. The Straits times has this to report.

While budget airlines slug it out for a piece of the lucrative Singapore-Kuala Lumpur route, bus operators are feeling the heat too.

At least one is resorting to slashing its fares, while others say they will focus on improving service standards.

The competitive prices that are being dangled by budget carriers plying the route have resulted in business falling between 5 per cent and 30 per cent during the first quarter this year for major bus operators here.

Airfares can sometimes be priced even lower than coach fares. For the first week of this month, Air-Asia offers some all-in, one-way fares at just S$28 (RM98.74), while coach fares range from S$30 to S$65.



Four days ago, another budget carrier, Firefly, started operating the same route, with promotional fares going for S$36.

Transtar, a big player which operates mostly luxury bus services to and from KL, has seen budget airlines impact its business by about 25 per cent.

It plans to slash its fares — now between S$35 and S$65 — by 10 per cent starting from September.


Its executive director, Sebastian Yap, said: “Business is going to go from bad to worse. If airlines continue to offer low fares, then it will have a serious impact on our business.”

Law Cheok Gheen, chief executive officer of another luxury bus operator, Aeroline, said it suffered a “double-triple whammy effect” in the first quarter of this year, when passengers for its services fell 30 per cent.

A one-way trip from Singapore to KL on Aeroline costs S$43 to S$49.

“But today, buses are running in healthy numbers again, albeit with a reasonable dent of 15 per cent,” he said.

He attributes this drop to the airlines’ aggressive marketing and competitive pricing, but believes the improved numbers suggest that travellers still prefer buses.

Still, most bus operators interviewed are not overly worried and do not intend to get into a price war with the airlines.

Michael Chan, executive director of Firstcoach, said budget carriers are able to charge fares comparable to bus fares now because it is the off-peak travel season.

“Come peak season, the difference in prices will be much greater than it is now,” he said.

Bus operators gave other reasons for travelling by land: the fluctuation of airfares is something that bus passengers do not have to grapple with.

Bus passengers also enjoy a hassle-free city-to-city journey without needing to leave their seats except at immigration checkpoints.

The real impact has yet to come.

Said a spokesman for Grassland Express & Tours: “I foresee the real negative impact on buses during Chinese New Year next year, as the early bird discounts which airlines give will entice many to book early. That’s when it will really hit us.”

Whoa! Believe me! As the economy continues to be morose,expect the effects to be chilly as budget airlines trumped coaches on both sides of the Causeway!

Singapore's Gloomy Job Prospects

The picture is not one that is promising. At best, expect the numbers to remain at even keel; worse-to see more unemployed on the streets.

The Straits Times reported that Manpower Minister Gan Kim Yong said yesterday (July 4th) that Singapore can expect unemployment to remain at current levels or to rise further.

In remarks suggesting a turnaround is not imminent, he said that with the economic outlook still uncertain, the labour market “will remain soft for next one to two quarters at least”.

“A lot will depend on whether orders are coming in for the third as well as the fourth quarter. Visibility is not clear beyond July or August."

The governments training programme called SPURS which provides some form of income for participants besides training them to have marketable skills has kept unemployment in check. The jobless rate from January to March this year still rose to 3.3 per cent, the highest since 2005.

Data for the April to June quarter will be released by the end of July, but anecdotal feedback from unions and bosses seems to suggest that there will be no let-up in the jobless rate.

This is even though fewer workers may be let go compared to the record 10,900 in the first quarter.

Gan also said in response to a question that it was difficult to say when there would be a second wave of retrenchments — something the labour movement has told workers to brace themselves for. Gan added that focus of efforts by bosses and workers now should be on training with an eye to improve skills for an eventual upturn.

Noting that the United States announced on Thursday that its jobless rate rose to 9.5 per cent, he said it was important “to focus efforts on helping companies and the unemployed”.

The sentiment at last month's International Labour Organisation conference in Geneva was that the global slowdown will persist. As such, Gan said that it was premature to think about green shoots — the term analysts and others use to suggest that the global slump was bottoming out- at this moment.

Agreeing with his outlook, National Trades Union Congress deputy secretary-general Halimah Yacob said the jobs situation could worsen if those laid off in the first quarter cannot find jobs quickly and are joined by those newly retrenched in the second quarter.

Nanyang Technological University economist Randolph Tan said that with few companies hiring, and bosses laying off workers, unemployment could hit 3.4 or 3.5 per cent in the second quarter.

He and Halimah cited recent data which showed a doubling of those classified as long-term unemployed: 16,600 workers took more than 25 weeks to find a job — up from 7,500 a year ago.

Another reason the jobless rate could stay high is the mismatch between workers and the jobs available.

Workforce Development Agency chief Chan Heng Kee acknowledged it remains an issue: Career centres had 27,000 job seekers in their database as at the end of May, but they could not fill the 20,000 immediate vacancies in their jobs bank.

“Some of it could be skills mismatch, salary expectations or the work environment. We also encourage the employers to give the worker a chance,” he said.

Spur helped bridge the gap. Between December and May, career centres placed 19,000 job-seekers in jobs after many attended half-day workshops or received more intensive skills training.

Overall, about 124,500 workers have been sent for training under Spur from last December to May this year.

Equipment maker Kinergy, which has orders until November, is committed to training 120 of its 150 staff through Spur.

Said vice-president David Loh: “When they return, their morale will be boosted and their new problem-solving skills will improve our productivity and processes.”

Given their economic model, I think Singapore is right on track and using the current downturn to develop a larger pool of K-workers to be ready when the upturn come about.

Raquel Welch-Smouldering Beauty

Jo Raquel Tejada burst into the movie scene in 1 Million Year BC. The sight of her in primitive body-hugging skin bikini lauched Raquel Welch's career and the world was in love with her for many years.





She was in her element as Lust Incarnate in Bewitched, oozing sex in 100 Rifles with Jim Brown, with James Stewart and Dean Martin in Bandolero and found fame in Fantastic Voyage. She has an exercise video, models and her face and body form has graced many advertisements.










Look at the pictures in her heyday and how she looked today.

Ann Margret-After Your Own Heart

Continuing the series of Lovelies of Yesteryears.

Another exciting star was Ann Margret.


She started as a dancer and graduated as a singer when her rough voice was almost identical to Elvis's. At one time, she was touted to be going steady with Elvis but nothing materialised from their relationship. She finally married Roger Smith in late 1060s.

She was discovered by Marilyn Monroe and also sang for John F Kennedy at one of his private party.

She was very attractive and was every one's pin up girl before Farrah Fawcett.

As usual Father Time takes away youth and along with it,Ann's beauty.

These pictures are testimony of the blinding beauty of Ann Margret and look how she is today.