Naysayers Can Really Spoil Your Day

Believe in the nay-sayers and you would believe anything. So let us not get pessimistic about these infernal predictions and look forward with a 'can do' spirit.

Let us read one nay-sayer prediction based on currents fears and horrors scenario building. It is from a Reuters report dated 29 January 2010.

"The adage ‘as January goes, so goes the year’ bodes ill for equity investors after the S&P 500 closed out its worst month in almost a year. In the coming week, they will have to contend with fears of sovereign defaults and the potential for unpleasant surprises in the US labor market.

US corporations have so far handily beat analysts’ earnings forecasts. With heavyweights like Exxon Mobil Corp and United Parcel Service Inc set to report next week, investors will be looking for that to continue, going some way to offset the perception that political risk is on the rise.

The Standard & Poor’s 500 Index fell 3.7 per cent in January and is off nearly 7 per cent from its high this month. Investors are worried that Greece’s debt troubles may herald a wave of sovereign defaults in the euro zone that could derail an economic recovery.

“There’s a lot of concerns going on as far as the sovereign debt is concerned in a lot of the nations, specifically in the euro zone,” said David Lutz, managing director of trading at Stifel Nicolaus Capital Markets in Baltimore.

A heavy week for economic data will culminate in yesterday’s non-farm payrolls report. Analysts believe the economy added 5,000 jobs in January, according to a Reuters poll. Another negative surprise after the previous month’s unexpected surge in job losses could roil markets.

“The next headline is going to be this unemployment data that is coming out, and there is no indication it is going to be moving in the direction in which we want it to move,” said Jonathan Corpina, senior managing partner of Meridian Equity Partners in New York.

Friday’s jobs number will be presaged by the ADP private- sector jobs report on Wednesday.

Around 500 US companies have reported quarterly earnings so far and of those, 73 per cent have beaten earnings estimates, exceeding the 68 per cent that beat in the last two quarters, according to data from Bespoke Investment Group.

But that positive earnings picture has not translated into gains for the stock market this time around.

Bespoke Investment Group’s data shows the average stock of a company whose earnings beat estimates gained only 0.8 per cent, compared with a 2.9 per cent drop in those that missed.

“The companies beating aren’t being rewarded by nearly as much as the companies that miss are being punished,” Bespoke Investment said in its research note.

After consecutive quarters when better-than-expected earnings helped drive stocks up more than 66 per cent from last year’s lows, fourth-quarter numbers may have already been factored into the market.

Highlights in the second full week of earnings will include Exxon Mobil on Monday, which is the first of a number of energy companies reporting, as well as delivery service UPS on Tuesday. UPS, viewed as a window on the economy’s health, raised its profit forecast earlier this month.

Exxon is expected to post earnings per share of US$1.19, while UPS is seen reporting 73 cents per share.

The US economy grew at its fastest pace in more than six years in the fourth quarter of 2009, expanding at an annual pace of 5.7 per cent — much more than most economists had expected.

There will be an early indication of the sustainability of growth when the Institute for Supply Management releases its manufacturing report for January. Economists in a Reuters poll are expecting a reading of 55.2, showing an expanding sector for the sixth straight month.

That will be followed by the ISM’s service sector survey on Wednesday, expected to edge into growth mode after the largest segment of the US economy struggled to find its footing in the fourth quarter of last year.

“The economy is showing no signs of a self-sustaining recovery,” said David Wright, portfolio manager at Sierra Core Retirement Fund in Santa Monica.

“Essentially the fuel was used in sustaining the rally as far as it did, and we are now beginning a down cycle that I expect to be prolonged and severe.”

For the final week of January, the S&P 500 slid 1.7 per cent, while the Dow Jones industrial average declined 1.1 per cent and the Nasdaq Composite Index fell 2.6 per cent.

For the month of January, the blue-chip Dow average dropped 3.5 per cent — close to the S&P 500’s 3.7 per cent decline — and the Nasdaq lost 5.4 per cent.

If this January is anything to go by — and the Stock Trader’s Almanac shows only six major occasions since 1950 when January’s performance has not been an indicator for the rest of the year — Wright’s prediction may come true."

Would that be the Year of the Tiger 2010?

USA: Growth Shoots Nonetheless

This is welcome news!

Reuters has this report. Let us read it.

"The White House on Friday hailed a report of 5.7 per cent economic growth in the fourth quarter as “the most positive news to date on the economy” and said the Obama administration’s focus must remain on job creation.

“It is important not to read too much into a single report, positive or negative,” White House economist Christina Romer said. “There will surely be bumps in the road ahead ... Nonetheless, today’s report is a welcome piece of encouraging news.”

Romer was responding to a Commerce Department report of faster-than-expected growth in the fourth quarter, the quickest pace in more than six years, as businesses reduced inventories less aggressively.

“Today’s GDP report is the most positive news to date on the economy,” she wrote in a statement on the White House web site.”

Romer made clear that the latest economic figures only reinforced President Barack Obama’s intention to make job creation, which has lagged as the economy emerged from deep recession, his administration’s top priority.

“While positive GDP growth is a necessary first step for job growth, our focus must remain on getting Americans back to work,” she said. “That GDP rose strongly in the fourth quarter of last year while employment fell and the workweek increased only slightly emphasizes the need for policy actions designed to help spur private sector job creation.”

Romer cited an “inventory bounce” by US businesses as a part of the jump in fourth-quarter GDP growth.

“This inventory bounce, though likely to be transitory, is a normal part of healthy recoveries. As firms’ confidence in the future increases, their desire to run down inventories wanes. This change in behavior is often a powerful force for growth early in a recovery,” she said."

I do hope with the chorus of good news from India to Washington,the world economy can ratchet upwards without looking back.

India: Now It is Their Turn for Possible Rate Hikes

Yes, India’s central bank did leave its short-term interest rates unchanged today (29 January 2010). However,it raised banks’ cash reserve requirements by a higher-than-expected 75 basis points. This is to be implemented in two phases and indicative of rising inflation.

“Though the inflationary pressures in the domestic economy stem predominantly from the supply side, the consolidating recovery increases the risks of these pressures spilling over into a wider inflationary process,” it said in its third quarter review.

The Reserve Bank of India (RBI) said the CRR would be increased by 50 basis points from Feb 13 and a further 25 basis points to 5.75 per cent from Feb 27.

It held its lending rate, or the repo rate, unchanged at 4.75 per cent and its reverse repo rate, at which it absorbs surplus cash from banks, unchanged at 3.25 per cent.

Despite increasing inflationary pressures, the central bank has been under pressure from senior government officials to hold off from raising its policy rates, which they argue would undermine the economic recovery.

The central bank lifted its wholesale price index inflation forecast for the end of the fiscal year in March to 8.5 per cent from its earlier forecast of 6.5 per cent, but said it expected inflation to moderate starting in July, assuming a normal monsoon and global oil prices holding at current levels.

It also lifted its forecast for GDP growth in the current year to 7.5 per cent, from an earlier target of 6 per cent, and said that the current rate of growth is likely to be sustained in the financial year that ends in March 2011.

The bank rate, used by banks to price long-term loans, remained unchanged at 6.0 per cent.

A Reuters poll last week showed 24 out of 25 economists expected the RBI to raise bank reserve requirements, or the cash reserve ratio, by up to 50 basis points.

Most economists had expected the central bank to keep core interest rates on hold, and Indian overnight indexed swap rates had ruled out a rate rise.

The cash reserve ratio was cut by 4 percentage points in five moves between October 2008 and January 2009 as the central bank moved to support the economy during the global financial crisis.

The RBI had cut the repo rate by 4.25 percentage points in six steps between October 2008 and April 2009. The reverse repo rate was cut by 2.75 percentage points in four steps since December 2008.

The RBI joins other central banks in Asia in taking steps to start unwinding ultra-loose monetary policy. Yesterday, the Philippines raised a short-term lending rate, and this month China started to tighten policy by raising banks’ reserve requirements and accepting higher yields at bill auctions.

Australia was the first Group of 20 country to begin raising rates as the global economy recovers from its worst downturn since the Great Depression. The Reserve Bank of Australia has raised its key cash rate by 75 basis points since October.

So it looks like growth is around the corner and fears of inflation have compel central banks to head off such pressures before they can bubble in.

The China Treasure Restaurant

We took the opportunity of patronising the halal Chinese restaurant called "China Treasures" for lunch today(29 January 2010).It is situated at the Sime Darby Convention Centre off Bukit Kiara.

We had our choice of timsum. Do not compare it with the traditional timsum that has pork ingredients in them. We had the usual harkou,the fried carrot cake with bean sprouts,fish balls,prawn fritters,chicken wings and some other dishes. We also ordered a dish of seafood noodle.

I guess the food was not too bad. Cost us RM128 with tax.

Will we go there again? Possibly.

Malaysia: The Razaleigh Rescue Mission

Tengku Razaleigh Hamzah has finally come out of his cocoon. Wearing a different hat this time around, he is now planning to lead a parliamentary caucus to press the Barisan Nasional leadership to honour the Petronas agreement.

He has insisted that Kelantan is entitled to a five per cent royalty for oil extracted off its waters, voicing out that it was about time to “re-examine the relationship between the states and the federal government”.

Tengku Razaleigh told a packed Stadium Sultan Mohamed IV that Petronas was bound by law to give the money to states where oil is found, adding Kelantan was not interested in compassionate payments.
Let us look at how he argues his case.

He reiterated that even as Kelantan is poor, it demands what is rightfully theirs.
The Kelantan government had demanded the oil royalty payment from Petronas last year, after the Federal Statistics Department revealed that Kelantan, together with Sabah and Terengganu, had contributed 62.5 per cent of the oil extracted in Malaysia. That put a spanner in the works.

The Federal government has insisted oil from the joint development area with Thailand was not from part of Kelantan’s waters and so offered RM20 million as “compassionate payment”.

But Razaleigh, the founding chairman of Petronas, disagreed with the government’s move, saying the formula for oil royalty was first agreed with Sarawak and later extended to all states.

“If Sarawak is due her five per cent royalty, no less is Kelantan, by the same principle,” thundered the Umno politician popularly known as Ku Li. He claimed that he has the blessings of the Kelantan palace to speak on the issue

Tengku Razaleigh clarified that the oil caucus he intends to lead is not just about oil. It is to re-examine the relationship between the states and the federal government.. He said the larger issue in the dispute was state rights as Malaysia was a federation of sovereign states that have assigned only certain rights to the federal government.

He wants a re-examination of the terms of the Federation Agreement signed in 1948 referring to the founding of Malaya before it gained independence from Great Britain in 1957.

He repeated his earlier argument that the Federal Government should respect the agreements made and not change them depending on who ruled the states, saying “How are we to ask investors to have confidence in us if we can’t even keep contracts between ourselves! More importantly there is a failure to understand the origin of federal powers over state resources”.

“We have forgotten that the states existed prior to the Federation. The Federation only exists because the states were willing to vest their rights in it, such as their rights in oil. Not the other way around,” he wrote in his blog.

Razaleigh highlighted that the federation itself rested on the principle of fairness to all the states, and to its citizens, wherever they may live. “When the government of the day ignores this principle, it is ignoring a basic principle holding our country together. There has been too much centralisation of power in the federal government. Powers functions and rights that belong to the states must be restored to them,” he added.

The move has a precedent in Terengganu after the 1999 general elections, when PAS won the state, prompting the federal government to convert oil royalty payments to compassionate payments managed by a federal department. Terengganu had sued for its right and Putrajaya relented only after Barisan Nasional recaptured the state.

Will Tengku Razaleigh finally come out and speak as the champion for the Kelantanese people? Let us wait and see his action plans.

J.D. Salinger Passes ON

J.D. Salinger, who wrote the American post-war literary classic “The Catcher in the Rye,” has died of natural causes aged 91.

“The Catcher in the Rye” was published in 1951. Its story of alienation and rebellion, featuring the teenage hero Holden Caulfield, immediately resonated with adolescent and young adult readers.

The novel’s first-person narrative shadows Caulfield through New York City in the days following his expulsion from a Pennsylvania prep school.

Generations of young people read the novel and embraced Caulfield, the phony-hating personification of teenage angst, as a proxy for their own experiences.


Many schools and libraries either banned the book due to its use of profanity and occasional scatological references or championed it for its portrayal of adolescence.

“Catcher” has been translated into the world’s major languages and sold more than 65 million copies. It is routinely listed among the best novels of the 20th century.

Alarmed by his sudden fame, Salinger has been a recluse since 1953, ferociously protecting his privacy in Cornish, a small town in northwest New Hampshire.

Besides “Catcher” he published only a few books and collections of short stories, including “9 Stories,” “Franny and Zooey,” “Raise High the Roofbeam, Carpenters” and “Seymour: An Introduction.”

Neighbours in Cornish rarely saw him and he never returned phone calls or letters from readers or admirers. Only rumours, infrequent sightings, and rare, brief interviews brought him to public attention.

He has not published a work since 1965 and the real-life Salinger would have been a disappointment to his most famous creation.

“What really knocks me out,” Caulfield said in “The Catcher in the Rye,” “is a book that, when you’re all done reading it, you wish the author that wrote it was a terrific friend of yours and you could call him up on the phone whenever you felt like it.”

In a rare interview with the New York Times in 1974, he said there was “marvellous peace” in not publishing.

“It’s peaceful. Still. Publishing is a terrible invasion of my privacy. I like to write. I love to write. But I write just for myself and my own pleasure,” he said.

Salinger often turned to the courts to help him guard his privacy. In 1982 he sued to halt the publication of a fictitious interview with a major magazine. In 2009, he sued to stop the US publication of a novel by Swedish writer Fredrik Colting that presents Holden Caulfield as an old man.

Jerome David Salinger was born on New Year’s Day in 1919 in New York to Sol Salinger, a cheese importer, and Marie Jillich. He attended three colleges but never graduated.

Salinger began writing magazine stories in 1940 before joining the Army during World War Two and seeing combat as part of the D-Day invasion and the Battle of the Bulge.

In her controversial 2001 biography “Dream Catcher,” Salinger’s daughter Margaret said her father was one of the first soldiers to arrive at a liberated concentration camp.

The book portrayed him as a self-centred wife-abuser who told his pregnant daughter to get an abortion because she “had no right to bring a child into this lousy world.”

Salinger married three times. The first was an eight-month marriage with a woman he had arrested in Europe for being a minor Nazi Party official.

Salinger met a young Radcliffe student, Claire Douglas, in New Hampshire in 1953. The pair married in 1954, and had two children, Margaret and Matthew. He and Claire divorced in 1966.

His third and surviving wife, Colleen, was a nurse who was some 40 years younger than him.

We bid farewell to one of the great Illuminati and literati of our age.

Malaysia: Possible Interest Rise

Yes, it was a period of suffering when Bank Negara Malaysia (BNM) did not allow interest rates to move up in tandem to combat inflation. And that was before the sub-prime era. When sub-prime choked global growth, BNM brought down interest rate even lower adding more injustice to the poor savers.

Last Thursday (21 January 2010),though it kept interest at the same level, BNM did indicate but not in so many words that the possibility for a interest hike is in the offing sometime this year. There are predictions that it will be a gradual process rising by 25 to 75 basis points before year-end. It is good that BNM has at long last signaled its readiness to normalise interest rates as a pre-emptive move to prevent the build-up of financial imbalances, said economists.

RAM's chief economist Dr Yeah Kim Leng opined that the central bank had signalled its discomfort over holding interest rate too low and for a long period of time.

“As exemplified by the US sub prime mortgage and housing market crisis, which some analysts attributed to overly low interest rates being stayed too long, loose monetary policies inevitably spawn over-leveraging, excessive risk-taking and asset bubbles,” he said.

At 2% currently, the OPR was lower than the average 2.5% to 2.8% seen in the year following the country’s most severe recession in 1998, he said.

“Depositors and savers are currently bearing the brunt of a low interest rate environment, which is aimed at spurring domestic demand,” he added.

With headline inflation or consumer price index turning positive in December, Yeah expected the upward adjustment to take place in the first quarter of this year, but the quantum would likely be gradual given that domestic demand was not expected to accelerate strongly as global economic recovery, especially growth in the advanced economies, remained sub-par and fragile.

“We expect a 25-basis point adjustment to bring the interest rate level to a more ‘normal’ level which we define as one that remains low and supportive of domestic financing and other economic activities,” he said.

However, he noted that the case for a 50-basis point hike was less compelling unless both domestic and external demand surged in the coming months.

“Nonetheless, a 50-basis point adjustment cannot be ruled out as a front-loaded measure to normalise the interest rate for the rest of the year,” he added.

Meanwhile, Malaysian Rating Corp Bhd economist Zahidi Alias noted that it was imperative that the quantum of any OPR hike take into consideration the growth of the economy relative to its potential output.

“One must bear in mind that at this juncture, policymakers might not be aggressive in hiking rates to ensure that the economy continues to pick up pace, and households do not become unduly burdened by heightened debt-repayment amounts,” he said.

Nevertheless, if the economy persistently expanded more than its potential rate which the International Monetary Fund estimated to be around 4.25%, interest rate hikes were likely to happen to prevent the economy from overheating, Zahidi added.

Maybank Investment Bank Bhd (Maybank IB) economist Suhaimi Illias said in a note Maybank IB was prompted to revise its OPR forecast to a 50 to 75-basis point hike compared with no change previously following Bank Negara’s latest indication.[Is this a false start or a smart move?]

“Still, the expected magnitude of increase in OPR this year is less than the 150-basis point cuts between November 2008 and February 2009. This should still keep the monetary policy stance accommodative to spur private sector demand (consumer and business spending) as the Government aims to trim its deficit spending, hence public sector demand, in the medium term starting next year, to RM40.5bil (5.6% of GDP) from RM51.1bil (7.4% of GDP) last year, and eventually to -3% of GDP by 2015,” he said.

Meanwhile, Kenanga Research said although the sudden change in the central bank’s tone would likely be interpreted as a signal that it may soon raise rates, the research house believed that it generally reflected Bank Negara’s genuine concern and way of managing market expectations.

“The current unsettling global financial environment as well as the modest recovery trend outweighs any inflationary concern or unchecked asset bubble at the moment. Hence, we expect the OPR to be raised incrementally from mid-2010, from 25 to 50 basis points to 2.5% by year-end,” it said.

OSK Research in a latest update concurred that Bank Negara would hold interest rates steady till June in its efforts to boost liquidity as the Malaysian economy was still finding its footing with third quarter GDP still contracting at 1.2% and unemployment coming in at 3.6%.

“However, we do not discount a potential hike in interest rate in the second half of 2010 as the economy gains traction and inflation exerts its influence.

“Even if there is a hike, we believe it would be on a gradual basis, for example by 25 basis points per policy meeting, to ensure the sustainability of economic recovery,” it added.

CIMB Research also expects interest rates to be raised at a measured pace, and possibly sooner than expected in the first half of the year.

It has revised its OPR target for the year to 2.5% from 2% for 2010.

“As this will still be lower than the historical OPR since 2004, the rate move will not have a significant impact on demand,” it said.

Is there early hope for prudent savers or is BNM still pally pally with business people for too long?

MRCB: The Rights Issue

Shareholders and those intending to buy into the parent share to subscribe for the 1:2 rights issue should read the following short announcement.

1) MRCB shares will be traded and quoted [ "Ex - Rights Issue" ]
as from : [ 28 January 2010 ]

2) The last date of lodgement : [ 2 February 2010 ]

3) Retention Money : Where securities are not delivered in time for registration by the seller, then the brokers concerned :-

a) Selling Broker to deduct [ 1/3 ] , of the Selling Price against the Selling Client.

b) Buying Broker to deduct [ 10% ] of the Purchase Price against the Buying Client.

c) Between Broker and Broker, the deduction of [ 1/3 ] of the Transacted Price is applicable.

RENOUNCEABLE RIGHTS ISSUE OF UP TO 482,271,409 NEW ORDINARY SHARES OF RM1.00 EACH IN MALAYSIAN RESOURCES CORPORATION BERHAD ("MRCB") ("RIGHTS SHARES") ON THE BASIS OF ONE (1) RIGHTS SHARE FOR EVERY TWO (2) EXISTING ORDINARY SHARES OF RM1.00 EACH IN MRCB HELD ON 2 FEBRUARY 2010 AT 5.00 P.M. AT AN ISSUE PRICE OF RM1.12 FOR EACH RIGHTS SHARE ("RIGHTS ISSUE").

Kindly be advised of the following:

1) The Rights commence of trading: 3 February 2010

2) Despatch Date of the Prospectus/Provisional Allotment Letter of Offer:
4 February 2010

3) The last day and time for Acceptance, Renunciation and Payment:
19 February 2010 @ 5:00pm (This is an important date)

4) The Rights cease quotation : 10 February 2010

You may trade your rights allotment letter at the going price.

US: Disappointing December Housing Numbers

The data tells. It told of falling sales of newly built US single-family homes in December,stoking fears that the government-led housing recovery might be losing some steam.

Let us read the Reuters report.

"The Commerce Department said sales fell 7.6 per cent to a 342,000 unit annual rate from an upwardly revised 370,000 units in November. It was the second straight month that new home sales declined.

Analysts polled by Reuters had expected new home sales to increase to a 370,000 unit annual pace from November's previously reported 355,000 units.

New home sales for the whole of 2009 fell 22.9 per cent to a record low 374,000 units, the department said.

The housing market recovery is showing some signs of fatigue after a surge in sales as first-time buyers rushed to take advantage of a popular tax credit, which had been scheduled to expire in November.

It has since been expanded and extended until June this year and while analysts expect home sales to pick up as a result, they reckon the pace will not be as strong as witnessed with the initial tax credit.

The housing market was the main catalyst of the most painful downturn in 70 years and renewed weakness could hobble the economic recovery.

Despite the slump in sales there were a few bright spots in Wednesday's report. The median sale price for a new home rose 5.2 per cent last month from November to $221,300, the highest in seven months and the biggest rise since April 2009. Compared to December 2008, the median sale price fell 3.6 per cent.

The number of new homes on the market last month dropped 1.7 per cent to 231,000 units, the lowest level since April 1971.

However, December's weak sales pace left the supply of homes available for sale at 8.1 months' worth, the highest since June 2009, from 7.6 months in November."

Seems like the USA and the world need more longer doses of painkillers to become economically well again.

Japan: December Exports on the Up

A Reuters report filed today showed that Japan’s exports rose 12.1 per cent in December from a year earlier. This was based on Ministry of Finance data and is more than economists’ median forecast for a 7.6 per cent rise.

Exports to Asia, which account for more than half of Japan’s total exports, rose 31.2 per cent from a year earlier.

The trade balance came to a surplus of 545.3 billion yen (RM20.7 billion), below the median estimate for a 590.0 billion yen surplus.

So, it is good news for the second largest economy of the world.

UK: Out of Recession at Long Last!

I have just noted a Reuters report from London. This is great news that the UK is finally out of recession.

Let us read the report.

"Britain only just crept out of an 18-month recession at the end of 2009, suggesting any monetary tightening remains a long way off and raising fears about the prospects for recovery ahead of an election due by June.

The Office for National Statistics said yesterday gross domestic product rose by 0.1 per cent between October and December, well below analysts’ forecasts for growth of 0.4 per cent and lower than all the predictions in a Reuters poll.

For 2009 as a whole, the economy shrank by 4.8 per cent — the worst yearly performance since records began in 1949.

The Labour government has been banking on a strong bounce back to growth to help overturn its poor opinion poll ratings before an election expected in 100 days, but these weaker than expected figures make a political comeback even trickier.

But Business Secretary Peter Mandelson told Channel 4 News he expected the preliminary figures to be revised higher. The next estimates are due open on Feb 26 and could yet be revised upwards or downwards.

Chancellor Alistair Darling said signs of sluggish growth provided all the more reason to maintain government spending plans, attacking the Conservatives’ call for imminent and tough action to reduce a record budget deficit.

“You can see there is a lot of uncertainty and therefore you would expect as you come out of recession for things to fluctuate,” Darling said.

“I think we are now on a path to recovery ... you need to maintain your support, don’t pull the rug from under our feet at the very time that we can see recovery.”

Darling said he was sticking with his forecast that the economy would grow by up to 1.5 per cent this year.

Sterling tumbled and gilt futures rose after data, which also showed output fell 3.2 per cent from the same period a year ago. From peak to trough, the economy contracted six per cent — far worse than the downturns of the early 1980s and 1990s.

“We know there are significant headwinds in Q1,” said Ross Walker, an economist at RBS Financial Markets. “Overall, the headline is disappointing but actually the underlying picture looks more worrying.”

Most analysts predict the Bank of England will halt its £200 billion (RM1.1 trillion) asset buying programme — designed to pump money into the economy — next month, but yesterday’s GDP figures reinforced expectations that any interest rate rises from the current record low of 0.5 per cent are many months away.

Nonetheless, whichever party wins the election will have to enact dramatic fiscal tightening at some point to rein in a record budget deficit, which will be a major drag on growth.

The government has a four-year plan to halve the deficit — set to top 12 per cent of GDP this year. But the Conservatives, ahead in opinion polls, say that is inadequate and pledge to start tightening fiscal policy this year, earlier than Labour.

“After this great recession, any signs of growth are welcome,” said Conservative economics spokesman George Osborne.

“We urgently need a new model of economic growth that includes a credible deficit reduction plan that keeps mortgage rates low, creates jobs and doesn’t choke off recovery.”

While Prime Minister Gordon Brown has argued his decisions have helped Britain weather the global storm, the UK is the last of the major economies to exit the downturn.

The latest figures may also increase doubts about the pace of global recovery as Britain is also the first G7 country to report GDP figures for the fourth quarter.

Evidence from the euro zone suggests its economy may have grown at a glacially slow rate in the last quarter of 2009 and the first quarter of this year.

Britain’s recession was the longest on record and policymakers expect a long slog to get the economy back to pre-crisis levels, warning the road to recovery will be rocky.

The Bank has said the extent of any fiscal consolidation will have an impact on monetary policy and analysts say sharp cuts in government spending and big tax rises may result in interest rates having to stay lower for longer to compensate.

Some economists agreed with Mandelson that preliminary estimates of GDP could be revised upward but there are also concerns about the strength of private demand, which will need to improve greatly to establish a sustainable recovery."

I do hope we will al lretrun back to normalcy soon.

Capital Inflows to Emerging Markets

Private capital inflows to emerging markets are set to soar by two thirds this year as countries like Brazil and China drive global recovery, the Institute of International Finance (IIF) said today.

Emerging markets seemed to be aware of risks from hot money — short-term, yield-chasing cash inflows, the global banking association said. Mature economies need to come up with credible plans to tackle spiralling debt and liquidity, it said.

“We face a situation that in my more than 50 years in banking is without precedent,” said William Rhodes, First Vice Chairman of the IIF’s Board said at a media conference in Zurich on the eve of the World Economic Forum meeting in Davos.

“We are seeing rising levels of private capital flows moving into emerging market economies not only because these are demonstrably good places to invest in, but also because their growth prospects look decidedly more favourable than the rather meagre ones of the mature economies,” he said.

The IIF is an association of financial services firms with over 380 members worldwide. Rhodes, who is also senior vice chairman at Citigroup, said hot money flows, as well as rising inflationary pressures, were posing a tough challenge to governments and central banks in some emerging countries.

The IIF noted a significant risk of renewed excesses, which needed to be monitored by investors and policymakers, though Rhodes struck a note of confidence: “I believe that there is an acute sensitivity to this in key capitals.”

Central bankers have also warned that huge capital flows into emerging market assets may create new bubbles and add fresh instability to the global financial system.

G20 ACTION Rhodes said the global economy was on the mend but risks remained. “The global economy and its financial system are out of the emergency ward,” he said. “However, they are still far from being in sound health.”

The global economy should grow by 3.2 per cent in 2010 after a drop in global output of 2.5 per cent in 2009, the IIF said.

Mature economies are set to grow by 2.4 per cent, emerging markets should see growth of 6.1 per cent this year.

Net capital inflows to emerging markets were set to rise to US$722 billion from an estimated US$435 billion in 2009 driven by a rebound of direct investment and commercial bank lending , the IIF said.

IIF chairman Rhodes urged the Group of 20 developed and emerging nations to take joint action to secure the recovery and long-term growth prospects.

The G20 had to roll back protectionist measures in trade and finance such as unilateral regulatory reforms or special taxes, which could damage the financial system, he said.

Governments in mature economies, in particular, needed a clear strategy to bring budgets in order and central banks had to show credible — Reuters

Malaysia: A Good Year for Property in 2010

The Malaysian property market is expected to improve further this year.

Having chalked up have registered transactions worth RM75.42 billion last year, the property market is expected to improve further in 2010 in line with the economic recovery.

The transactions involved 337,990 properties as compared with the 340,240 valued at RM88.34 billion in 2008, said the director general of Valuation and Property Services Department, Finance Ministry, Datuk Abdullah Thalith Md Thani.

He said the challenging economic and financial environment had affected the overall performance of the Malaysian property market last year. "2010 will be a good year for all. The property market for this year will improve as the number of transactions involving new housing and construction activities, increases," Abdullah Thalith said at the Third Malaysian Property Summit 2010 on 26 January 2010.

He pointed out that Malaysia is expected to steer towards a recovery path this year, driven primarily by domestic demand, with commodity prices for rubber, crude oil and palm oil also improving.

These, he said would increase the confidence level among consumers and provide a positive impact for the property sector.

"The demand for properties is returning," he added.

Abdullah Thalith said the government would continue to implement appropriate measures to restore confidence and market sentiment.

He said the liberalisation of Foreign Investment Committee (FIC) guidelines, would increase the competitiveness of Malaysia, as a preferred investment destination.

Furthermore, Abdullah Thalith said acquiring properties in Malaysia would be more attractive, as FIC approval is no longer required.

He said the review of the Real Property Gains Tax (RPGT) would also augur well for the property industry.

So, looking at the potential prices of all building materials moving up, new housing will be more costly.Already, one can see a good secondary market for choice property in certain attractive areas. The very sight of massive renovation taking place in these areas suggest all will be well for property in 2010.

IMF:Good News!

Reuters just reported that the International Monetary Fund has sharply raised its growth forecasts for the world economy in 2010, saying the recovery from the global financial crisis had been stronger than expected.

In its latest update of the World Economic Outlook, the IMF said the world economy will expand by 3.9 per cent in 2010, much higher than its October projection of 3.1 per cent.

It said next year economic activity would rise further to 4.3 per cent.

This is good news.

JAKS: Towards Better Horizons

Is this counter worth a second look?

Let us see what is next in store for JAKS.

JAKS will put out a private placement of 10% of its shares to interested parties within a year. The 48,219,717 shares to be issues will come with a warrant each. The exchange rate of the warrants will be determined by the volume weighted average price of 5 days for a selected period and is exchangeable for JAKS shares on a 1:1 basis. The allowable period for the conversion exercise of the warrants is 5 years. The maximum discount off JAKS share price for the conversion,if at all, will not be less than 10%

JAKS can expect a maximum of RM48.2 million to flow into its coffers from this exercise. The application of funds will be as follows:

a) RM20 million for working capital. It will be utilized in the first 12 months

This will be channeled to business operations,administration and operating expenses

b) RM27.2 mil for business expansion and other investments

This amount will be directed towards the development of the thermal power plant in Vietnam on a built-operate-transfer mode.

c) RM 1.0 as expenses for the private placement

The revenue to be earned from the warrant conversion exercise will be kept for use for new investment.

Assuming the ESOS exercise is fully taken up and the placement meets maximum success, the share structure distribution will be as follows:

ESOS: 7.58%.

Private placement: 8.33%

Warrants Conversion: 8.33%

The current borrowings of JAKS is RM127.065 million.

The gearing for JAKS will improve from 0.27 currently to 0.21 when the whole ESOS exercise, private placement and warrant conversion gets off the ground.

The retained profits which is currently RM8.369 million will rise to RM9.601 after the full exercise.

Net earnings will drop proportionately to the new issuance of shares.However, this private placement will positive contribute to group earnings through fund utilization of working capital , business expansion,the settlement of bank borrowings and other potential investments.

The lowest price of JAKS was 31 sen and the highest is RM1.08. the going price today which is a really bad market day is 76 sen.

JAKS has been involved from the outset in the water industry. It manufactures mild steel pipes and trades them as well as steel hollow sections. It had a setback in Selangor where there was a contractual breach of a supply contract. This causes the fortunes of JAKS to wane. A legal action is mounted by JAKS against the parties concerned which includes PUAS,SYABAS and the Selangor government. The legal action is under case management.

So not as to be stuck to the old water sector which has become too crowded, JAKS has proposed to lead a consortium to build-operate-transfer a 2X600MW coal fired plants in Hai Duong province in North Vietnam, Negotiations are actively pursued on power purchase agreements and other related ones. JAKS expects all this to be 'in the bag' by 2010.

Demand for power is high in Vietnam which is expected to grow at 15% annually.
Current domestic power generation is insufficient.

JAKS is currently undergoing a corporate debt restructuring scheme announced on 19 October 2009 and has yet to implement the ESOS.

With the potential takeover of the water management of Selangor by the Federal authority,plans could be afoot by Kumpulan Perangsang Selangor (KPS) to ensure that they acquire some of the major packages from the Pahang-Selangor Water Transfer project. KPS owns some interest in JAKS.

So, do you think this is the right price to enter the market for JAKS at 76 sen?

Genting Singapore: Bond Conversion Directive

So, it has now become mandatory. No more waiting for another two years.

Genting Singapore has issued a notice to the holders of its S$450m convertible bonds due 2012 for the mandatory conversion of the outstanding bonds into fully paid-up shares at the conversion price of S$0.95.

As at 25 Jan, the outstanding Bonds amounted to S$321.1m.

This mandatory conversion is not entirely surprising given that

i) it satisfies the conditions of the conversion as stipulated in the terms of the bonds and

ii) 40% of Genting Singapore’s proceeds from its S$1.5bn rights issue has been earmarked to repay borrowings.

It is estimated that this mandatory conversion will require about 9% of Genting Singapore’s estimated S$3.5bn post-rights cash balance.

The impact to net gearing is minimal,though.

Walkabout in Aman Suria

I had about 90 minutes to kill before my class. So after a vigorous walk around the Sunwaymas Commercial area which is flanked by the backs of high-cost Aman Suria bungalows on one end and a shanty town of a new village on the other end,I had an early dinner at a restaurant which claimed it cooks the best Hokkien Mee on this side of the world. I was deeply disappointed at being fed some mushy stuff. No coming back to this shop for me.


Then I drove back to Aman Suria to see the changes since I last saw it in 2008. There were some new eateries. Some old ones that were more high-end have folded. There were some Western restaurants and oriental ones too.




Aman Suria has more traffic and people;unlike Sungwaymas which appeared ghostly and dead.







Let us look at some of the images I managed to capture of present day Aman Suria.

MIER: Expect a 3.7% GDP in 2010

Bloomberg reports that Malaysia’s gross domestic product may rebound this year from a contraction in 2009 amid signs the global economy is recovering from the worst recession since the 1930s, the Malaysian Institute of Economic Research (MIER) said.

Southeast Asia’s third-largest economy will probably expand 3.7 per cent this year and 5 per cent in 2011 after shrinking a projected 3.3 per cent in 2009, the partially government-funded research institute said in a statement in Kuala Lumpur today (26 January 2010).

“The services sector will be the pillar of strength amidst a glum manufacturing sector,” the research group said. “However, Malaysia may not regain more strength until the global economy is back on track, which is going to be at a disappointingly slow pace.”

Asia is leading the world’s economic recovery after the region’s policy makers slashed interest rates to unprecedented lows and governments announced more than US$950 billion of stimulus measures. Malaysia’s consumer prices rose in December for the first time in seven months as food and housing costs climbed, and the government has raised its economic growth forecasts on signs of sustainable demand.

Prime Minister Datuk Seri Najib Razak said on January 20 the economy may expand 3.5 per cent or more this year, predicting faster growth than the government forecast in October.

Developing East Asia, which excludes Japan, Hong Kong, Taiwan, South Korea and Singapore, will expand 8.1 per cent this year, faster than a November estimate of 7.8 per cent, the World Bank said on January 21. South Asia will grow 7 per cent in 2010, it said.

Export Growth

Exports of goods and services may grow 9.3 per cent this year after declining 17.5 per cent in 2009, the institute predicts. “Demand recovery as well as improving commodity prices are expected to lift exports growth,” it said.

Bank Negara Malaysia has refrained from following Australia and Vietnam in raising borrowing costs even as commodity prices rise amid a global economic rebound.

Inflation may average 2.3 per cent in 2010 from an expected 0.8 per cent in 2009, the institute predicts. The jobless rate may improve to 4.2 per cent this year from an estimated 4.5 per cent in 2009, it said.

The Beggars: How Nice!

This is one interesting photo you should see. I do not know whether it is real or contrived using computer graphics.

Anyway,a picture tells a zillion words. Notice the cheeky cat.

Dayang:Ready to Shine Again?

In 2009, Dayang shares make a spirited run up because of its potential of doing projects in Brunei. Things are looking up for Dayang again at the beginning of 2010.

It had added another project to its book value. This time around, it is from Petronas Carigali which awarded it a RM8.5 million project to do hook up and commissioning works on the Tangga Barat Drilling Riser Platform, the Tangga Barat Flare Platform and building of bridges for the Tangga Barat Clusters Project Phase 1.

There is no significant contract risk in this project. Yes, shareholders will benefit from this project beginning 2010.

Same Old Investment Song for Singapore

Reuters has a less than glorious picture to paint of Singapore's investment climate in 2010. In an unflattering tone, it reports thatthe government expects only S$10-S$12 billion (RM24-29 billion) in new capital investment will come on stream , little changed from 2009, as major economies slowly emerge from the global downturn.

The forecast for fixed-asset investment in manufacturing and services compares with S$11.8 billion achieved in 2009, the state investment promotion agency, Economic Development Board, said in a statement.

Investment in 2008 was S$18 billion, although that was inflated by big petrochemical projects.

"We have yet to see a firm pick-up in major expansions of manufacturing capacity around the world due to continued weakness of consumer demand in the G3 economies," EDB said.

So,it is another lean year for investment. Can Singapore dare hope for the money to come from tourism?

The New Bukit Bintang

To those in my age group,we remember the Bukit Bintang of yester-years fondly. The nostalgic Bukit Bintang Park where the legendary Rose Chan performed. Where The Federal Hotel stood prestigious as the top notch hotel then. today, that hotel has been dwarfed by international hotels with the six-star comfort and BukitBbintang Park exist but in history as tall behemoth of sky-scrapers stood atop its former site.

Today,it is a different world out there in Bukit Bintang. The Straits Times reports today that two vastly different worlds seem to exist side by side in Jalan Bukit Bintang, the capital’s version of Orchard Road in Singapore.

The Pavilion KL mall is a cavernous 1.3 million sq ft shopping haven that even boasts a swanky bread shop owned by former Premier Mahathir.

Its elegant sidewalk cafes have views of its equally stylish luxury hotel neighbours and the top-end Starhill Gallery shopping centre.

But just a few steps away, shabby buildings bump up against grim alleys.

All this could soon change.

Developers are determined to eliminate some of the street’s shadier elements.

One tawdry building, the former KL Plaza, has already been boarded up and renovations have begun.

After a RM100 million face-lift, it will re-open on Aug 8 as what owners promise will be the hot Fahrenheit 88, a trendy, cutting-edge and quirky exercise in shopping excess.

Two doors away, the iconic green Lot 10 mall is in the process of being refurbished. A sassy new rooftop is already attracting high society.

Joyce Yap, president of the Association for Shopping Complex and High-rise Management, said the Bukit Bintang area is long overdue for rejuvenation.

“Jalan Bukit Bintang is perfect for shopping,” she said. “It’s both short and long enough for a shopping district.”

She was referring to the fact that the street is long on variety but not overwhelming in its physical length.

Bukit Bintang has been a shopping hub for as long as most Malaysians can remember but the malls were getting old and tired.

Stiff competition has come from sexier malls like Suria KLCC at the foot of the Petronas Twin Towers.

Yap noted that every city needs a shopping cluster, especially for tourism, but said Malaysia’s retail scene tends to be fragmented.

Tourist shopping in the country lags far behind that of its neighbours. More than 23 million tourists visited the country last year, spending about RM50 billion in all. Of this, they spent only 27 per cent on shopping.

By contrast, tourists in Singapore and Hong Kong spend more than half the money they leave behind on shopping. Tourists also buy more in Thailand and South Korea than in Malaysia.

Yap said Malaysia has not put a concerted effort into its plans for shopping infrastructure or to promote the retail scene, and there is too little government coordination with the private sector.

Thus, the sidewalks beyond the malls suddenly become grimy and unkempt, and unmetered taxis prey on shoppers.

There are no sheltered walkways between malls, and KL’s infamous sudden downpours can leave shoppers stranded. You can say that again and look how fast the unmetered taxis seems to disappear as well!

Interest in Bukit Bintang began to grow again when the Pavilion opened at the end of 2007. It drew hundreds of thousands in its first week, and remains the country’s most successful mall.

Yap, who is also the chief executive of the Pavilion, said it now gets about 2.5 million visitors a month.

That is about 15 per cent more than in 2008. More importantly, visitors’ spending last year rose by about 25 per cent from the year before.

YTL Corp managing director Francis Yeoh, who runs the luxury Starhill Gallery nearby, said sales have risen by some 40 per cent since the Pavilion opened.

He revealed this when he spoke about the face-lift of the Lot 10 mall which YTL bought last year. The RM20 million it is spending to refurbish the mall already shows signs of being well worth it. The crowds have begun to return, especially to its sexy new rooftop.

Opened at the end of last year, it now has a stylish garden flanked by a dance club, a restaurant and a theatre run by arts doyen Faridah Merican.

Its new foodcourt, Hutong, has been a major draw too as it brings together the top brand names in hawker stalls from Kuala Lumpur, Ipoh and Penang.

Whether you crave the wonton mee of a particular stall in Klang or chicken rice from Ipoh, chances are you will find it there.

Two doors away, Fahrenheit 88’s new lease of life is being overseen by the Pavilion management which hopes to turn it into a sassy and funky place, along the lines of Orchard Road’s,The Heeren.

According to Cynthia Lim, who is handling leasing and marketing, it hopes to woo independent designers and stores. The shop sizes will thus be a cosy 400 to 500 sq ft each.

“We want it to be young, colourful and vibrant,” she said.

About half the shops in the mall’s 300,000 sq ft area have already been snapped up.

Marketing executive Connie Tan, 34, said the Bukit Bintang area is beginning to become lively again, and she likes the new vibe.

“I’m looking forward to the new malls,” she said. “KL needs more good shopping centres to give it a buzz like Hong Kong.”

Don't we all?

Smile Everlasting

Smile a little smile for me. Never forget that smile-that bewitching,beautiful smile that softens every hardened heart. That makes us truly human again if the buffets of the world has de-humanised us.


If, as infants we can soften hearts, what more as you grow up. That smile you give to a special some-one to make his or her heart flutter everything that he or she hears your voice; every time that he sees your face. How he or she has been rendered sleepless if you had not flash back your glorious,magnetic smile!

Then as we aged,whether we have yet that toothy smile or have a lost a tooth or two, we still retain and maintain our winsome smiles.

Never forget, a smile is contagious. Smile and the whole world smiles with you!

Kavita: Surviving Beauty and Films

Kavita Kaur is branching out from her area of strength. A model, entrepreneur and former beauty queen,she is adding another feather to her cap. She will be launching her own clothing line come March 2010.

A beaming Kavita confided,"I feel it is the right time to try something innovative."

The former Miss Malaysia who is also an actress, TV host and film producer, recently sealed a deal with a top eco-friendly clothing manufacturer and exporter from India to produce her resort wear collection. How interesting-Indian roots and resort fashion wear.

Kavita said the STYLO Fashion Grand Prix KL would be the launching platform for her debut collection comprising some 40 pieces, including jeans, swim wear and beach outfits. The fashion event would take place at the end of March in conjunction with the Malaysian Formula One Grand Prix. How timely!



Kavita said she was pleased to work with Shahi Exports Pvt Ltd, which manufactures and exports ready-made garments for the international market.

Kavita enthused,“They work with top brands worldwide such as Gap, Guess and Abercrombie & Fitch. I have been looking for a good manufacturer that uses the latest creative technology and can design what I want. Creative technology for fashion is the way to go. My idea is to come up with a modern collection using natural fibres,” said Kavita, who was in India recently to seal the deal.

Kavita said she decided to venture into fashion designing given her experience and also after encouragement from friends.

“My clothing line will be locally-inspired but trendy and international at the same time. The key is to make it affordable and of good quality,” she said.

When contacted in India, Shahi Exports director T. Subhash said they were excited to work with Kavita’s company which was their first partnership with a Malaysian company.

“We do a mix basket of all, be it big or small companies. The design capability increases when you have a mix.”

On their eco-friendly approach, Subhash said they were certified to manufacture organic products and followed strict regulations.

The Asian fashion market, he added, could not be ignored as it had vast potential given its affordability.

So,what shall we say to Kavita?

In true Malaysian fashion,we wished her, 'Malaysia Boleh'!

The Avatar Avalanche

First, we have the sinkable Titanic that went down to its watery grave of the icy waters of the North. Then the unseemingly film the“Titanic” just got covered by an icy avalanche called,“Avatar.”

James Cameron’s sci-fi spectacular has just replaced his maritime melodrama as the biggest international release of all time during the weekend and is on the verge of claiming its worldwide crown, which also includes North American receipts.

The News Corp-owned studio said “Avatar” has sold US$1.841 billion (RM6.26 billion) worth of tickets worldwide during its unbroken six-week reign, and was a day or so away from surpassing the seemingly insurmountable US$1.843 billion racked up by “Titanic” in 1997-1998.

The international portion stands at US$1.288 billion, eclipsing the US$1.242 billion haul of “Titanic.”

In North America, “Avatar” may have to wait up to two weeks to sink the US$601 million total of “Titanic,” Fox said. Moviegoers in the United States and Canada have chipped in US$552.8 million, enough to replace 2008’s “The Dark Knight” (US$533 million) as the second-biggest movie of all time.

Data are not adjusted for inflation, and “Avatar” ticket sales got an additional boost from premium pricing for 3-D screenings. Imax Corp said its big-screen engagements have sold a record US$134 million worth of tickets worldwide.

The biggest movie of all time in North America — adjusted for inflation — is 1939’s “Gone with the Wind,” with sales of almost US$1.5 billion, according to tracking firm Box Office Mojo. “Avatar” ranks No. 26 by that measure.

During the latest weekend, “Avatar” earned US$36 million in North America and US$107 million from 111 international markets, far outpacing other offerings.

We do not need any second guessing that Avatar will keep on sailing when it releases its DVD formats.

The Legal Take-Over of Selangor's Water Resources

Anita Gabriel of the STAR on-line pans out her doubts on the early planned takeover by legal force of Selangor's convulated water resource management.


Pengurusan Aset Air Bhd (PAAB) has submitted a proposal to take over the assets of water concessionaires in Selangor to the Energy, Green Technology and Water Ministry. And it is understood that the Ministry is poring through the fine details of proposal before the offer can be made to the water players. The target date of March 2010 has been for the restructuring process to be completed.

“The restructuring hinges on resolving a few fundamental issues which are being ironed out now. Once resolved, the restructuring is probably 50% done. So, the target is (still) well on track,” said an industry source.

In mid-December 2009, PAAB chief executive officer Ahmad Faizal Abdul Rahman had told StarBiz that an offer would be submitted to the water concessionaires in the state by the end of last year.

To date, however, the water players have yet to receive any offers.

“Again, there seems to be a delay in the asset-sale exercise. We were hoping there would be a resolution sooner than later,” said an industry analyst.

Construction companies Gamuda Bhd and Kumpulan Perangsang Bhd (KPS) and water firm Puncak Niaga Holdings Bhd currently own the state’s water assets.

More recently, Puncak Niaga Holdings Bhd executive chairman Tan Sri Rozali Ismail broke his long-held silence on the water revamp plan when he urged the Government to hasten efforts to complete the sector’s restructuring in Selangor, Kuala Lumpur and Putrajaya so that the old-pipes replacement project, which has been frozen pending the revamp exercise, could be carried out.

Apparently, last April, the Government had directed Syabas, which is 70% owned by Puncak Niaga, to freeze its RM2.6bil pipe replacement and communication project until the revamp of the water sector in the three areas is completed.

Early this month, Kenanga Research shot out a note saying that it expected PAAB to come up with a new offer in the near term as the due diligence for the acquisition of water assets should be completed by now.

“As Syabas is in cash constraint, we feel that the negotiation will be solved immediately,” it said.

A month ago, it was announced that Syabas had secured a RM320.88mil loan from the Federal Government, essentially to enable Syabas to repay water purchased from three water treatment operators, namely its sister company Puncak Niaga (M) Sdn Bhd, Konsortium Abass Sdn Bhd and Splash.

“The group would have no choice but to continue gearing up unless it receives the 37% tariff hike due under the concession agreement or alternatively, the water asset consolidation talks materialises,” said TA Research.

Prior to December last year, the Selangor government was leading the talks on taking over the assets from the water players.

After months of negotiations and revised offers, the state government announced that it was unable to proceed with the offer due to the disagreement and so, the ball was back in the court of Minister of Finance Inc’s wholly owned PAAB to lead the talks.

So, what do you do now untul we reach the end of March?

If you are a stock picker, just have a cursory glance at the prices of KPS, KHSB,JAKS,Gamuda, Puncak Niaga from now on. If all of them start to move quite vigorously, then you would know that the end of near for the Selangor water woes.

Until then just live your life...........

Zesty, Zany Zoe Saldana

Zoe Saldana who you will see as Neytiri,the lead lady role in 'Avatar' was born to a Dominican father and a Puerto Rican. She is 28 and features as one of People's Magazine's annual 100 Most Beautiful People. she is ranked #42 on the Maxim magazine Hot 100 of 2008 list.


Looking back at her filmography, you would have seen her in 'The Terminal (2004)'where she palyed a Trekkie fan,Torres. In the remake of 'Star-Trek in 2009, she clinched the role of Uhura.


And did you noticed her as that 'witchy' character in 'Pirates of the Caribbean: The Curse of the Black Pearl'?


We do hope we see her more in her own flesh than in some zebra-stripped blue monkey outfit.

Ghazali Shafie Passes On

The man who self-proclaimed himself or was proclaimed with that moniker by third parties from the cartoon strip,"Alley Oop", Ghazali Shafie or “King Ghaz” passed away yesterday.

Let us recall his highlights.

He was a no-nonsense Minister. Know your stuff before going before him or else you will feel the lashes of the Spanish Inquisition from him.A thoroughbred of a man, he choose to know as much as possible of an issue before speaking on it. He was the epitome of what a strict taskmaster was. He is quick tempered and harsh if you pussyfooted with him.

He served 4 prime ministers though he came close to become one. Did the late Tun Hussein Onn made one sad irreversible mistake by not choosing Ghazalie Shafie, the apparently wisest of the three UMNO VPs then?

He was also known internationally when he was foreign minister, besides serving with various international bodies and missions. He famously escaped death in a plane crash in Kampung Janda Baik on Jan 10, 1982 which killed his personal bodyguard and the co-pilot. The incident shocked the nation at the time.

Born in Kuala Lipis on March 22, he received his early education at a number of Malay and English schools in Raub, Kuala Lipis, Bentong and Penjum before studying at Clifford School, Kuala Lipis from 1939 to 1940.

In 1941, he furthered his studies at Raffles College in Singapore before obtaining his LLB (Honours) at University College of Wales and then a degree in international relations from the London School of Economics in 1954.

From 1941 to 1946, he served in several defence forces including the Malayan Volunteer Force and Anti-Japanese Movement.

Ghazali who had worked as a clerk with the Selangor Council, was appointed as Malaya’s High Commissioner to India in 1957 and two years later, was made the secretary-general of the Foreign Ministry.

He was foreign minister from July 1981 to July 1984 and resigned from the post the same month. A highly important task held by Ghazali was as a member of the Cobbold Commission on the formation of Malaysia.

His long service in the Cabinet started in 1970 when he was appointed minister with special functions and a year later was given the additional information portfolio. Sixteen months later, he was made home and information minister and in July 1981, was appointed foreign minister.

After resigning from the Cabinet in 1984, Ghazali held various important positions in the corporate sector and international organisations.

He lost in the contest for a party vice-president post in 1972 and 1975. However, he won the post in 1981.

I post this in memory of the man who wants to excel and did in his own way. We say goodbye to him here.