This is the City of Viagra!

Yes, it sure is............

Mulpha to raise RM21m

Mulpha International (Mulpha), an old horse of the Bursa, expects the listing of its subsidiary, Manta Holdings Co Ltd (MHCL), on the main board of Stock Exchange of Hong Kong Ltd in July to raise HK$50mil (RM21.2mil)
.
CEO Chung Tze Hien said the funds raised would help MHCL expand its crane business.

“The listing status allows the MHCL group to have greater financial flexibility when pursuing its growth plans,” he told reporters after Mulpha International’s AGM and EGM yesterday.

There are four companies under the MHCL group - Manta Engineering and Equipment Co Ltd, Manta Equipment Rental Co Ltd, Manta Equipment Services Ltd and Manta Equipment (S) Pte Ltd.

Period	High	Low
Prices 1 Month	0.430 (17 June)	0.390 (17 June)
Prices 3 Months	0.525 (30-Apr-10)	0.390 (17-Jun-10)
Prices 12 Months	0.585 (14-Aug-09)	0.390 (17-Jun-10)
Volume 12 Months	282,099 (28-Jan-10)	2,375 (24-Dec-09)

The companies all serve the crane business, from sale and leasing to servicing of crane-related construction equipment.

Chung said proceeds from the listing exercise would be used to purchase tower cranes and construction equipment for rental purposes, general working capital, expansion and improvement of storage facilities, service and maintenance workshops. 

He said there was continued strong demand for cranes, especially from the Hong Kong, China and Singapore construction sectors.

Currently, Mulpha International owns 88% of MHCL, while the balance is held by Pan Ocean International.

“Upon MHCL being listed, the 12% held by Pan Ocean would be acquired by Mulpha International,” Chung said.

On the impact of MHCL’s expansion plans on Mulpha International, he said MHCL’s current earnings contribution to the group was not substantial. “But, with MHCL’s planned business expansion going forward, the contributions to the group could be more significant.”
As part of the proposed listing, Mulpha International will undertake an internal restructuring and re-organisation exercise following which it would issue 50 million new MHCL shares, representing 25% of the enlarged issued and paid-up share capital of the company.

The new shares would comprise five million issue shares that would be made to the Hong Kong public and 45 million shares to professional, institutional and other investors.

None of the directors of Mulpha International and MHCL group would be offered shares in MHCL pursuant to the proposed listing.

Chung said the group was confident its financial performance would be better this year.

On the reason for Mulpha Land Bhd’s par value reduction exercise, Chung said it would place the company in a better position to raise capital.

“The exercise allows us to raise capital when conditions are more favourable. There is a misperception that a par value reduction exercise is negative. In fact, there is now a trend for companies in the developed world to have a low par value or not at all,” he said.

Mulpha Land lowered its par value from RM1 to 10 sen.

“A lower par value will make it easier for Mulpha Land to go to the market to raise funds. It is also not possible to raise new shares at below par value,” he noted, adding that the exercise would not result in any adjustment to the share price of Mulpha Land or the number of shares held by shareholders.

He said the exercise would give rise to a credit of RM82.19mil which would be offset against Mulpha Land’s accumulated losses, and the balance credited to its capital reserves.

Mulpha International has a 55.56% stake in Mulpha Land.

Malaysia’s Global Sukuk Success

THE announcement to launch a global sukuk on May 19 was greeted with a lot of questions, doubts and scepticism. This was due to uncertainties caused by the sovereign debt crisis, particularly in Greece, Spain, Portugal and Ireland, which accentuated concerns over a double-dip recession.

Notwithstanding this, we went ahead with the launch after taking into consideration the factors in favour of Malaysia. These include the strong demand for good quality sovereign debt papers in the market; Malaysia’s credit risk spreads, which had narrowed considerably; the country’s good credit story supported by sound economic fundamentals; and clear economic transformation agenda under the New Economic Model.
It was a calculated and bold move. We were proven right when the issue was oversubscribed by nearly six times the initial size of US$1bil (RM3.25bil).

The issue was a huge success with a final sukuk size of US$1.25bil (RM4.06bil). It was Malaysia’s first in the international debt market after a lapse of eight years and was accorded emas, a special recognition given to foreign currency denominated issues in the Malaysian capital market.

The global sukuk has three objectives: to establish a new US dollar benchmark as pricing guidance for corporate fund raising, to profile Malaysia’s credit story in international capital markets, and to showcase the country as a global Islamic financial hub. The issue successfully met these objectives.

In line with Malaysia’s leadership in Islamic finance, the issue was structured as a syariah-based Ijara − an asset-based Islamic instrument, which pays sukuk-holders returns from the rental of 12 government-run hospitals.

The purchase price is equivalent to the proceeds raised by the special purpose vehicle – 1Malaysia Global Sukuk Sdn Bhd (the trustee/issuer).

It is a sale and lease-back arrangement, where the Federal Land Commissioner as the land owner of the 12 hospitals would sell the asset to the trustee which will lease the assets to the Government. Rentals received will be used to make periodic payments to sukuk investors.

Upon maturity, sukuk holders will be paid the redemption sum through the proceeds received from the Government as the obligor who will purchase the rights, interest, benefits and entitlements on the lease assets from the Trustee.

The sukuk was assigned a rating of A- by Standard and Poor’s and A3 by Moody’s. The credit ratings reflect Malaysia’s sovereign credit worthiness backed by a deep and liquid domestic capital market, a well-managed and resilient financial system, strong external position, net external creditor position as well as a diverse and competitive economy.

The global sukuk roadshows started off with a team lead by Second Finance Minister, who met investors in Jeddah, Riyadh, Abu Dhabi and Dubai. The second team led by the Finance Ministry secretary-general saw investors in Hong Kong, Singapore, London and finally in New York, where the sukuk size and pricing were finalised.

During the roadshows, the teams met investors in groups and also had one-on-one interactions with key investors. Investors raised questions on Malaysia’s fiscal sustainability, economic fundamentals as well as the reform agenda of the Government. The teams took the opportunity to explain Malaysia’s economic policies, the accommodative monetary policy as well as impressed upon the investors the reform agenda and growth prospects that will be realised through the New Economic Model.

Fundamentals intact

Investors were convinced that Malaysia’s fundamentals remained intact, with strong fiscal position and credible economic growth from enhanced reform initiatives under the New Economic Model.

These meetings were well-received and generated significant interest among investors in Asia, the Middle East, Europe and the United States, despite increased uncertainty and market volatility created by the debt crisis in Greece.

The high-level delegations were instrumental in raising Malaysia’s profile and entrenching its growth prospects among key investors and decision-makers.

As a result, the issue attracted bids from a diverse group of over 270 investors around the world with most bids from Asia and the Middle East.

The final distribution reflected the wide interest among global institutional investors for Malaysia’s debt papers.

It also reinforced Malaysia’s lead position in the global sukuk market, accounting for 65% of global outstanding sukuk.

The initial proposed size of the global sukuk was US$1bil, which was upsized to US$1.25bil after receiving bids of about six times over the initial cover, making it the largest global sovereign sukuk ever.

The five–year sukuk was priced on May 27 to yield 3.928%, the lowest yield for an Asian sovereign issue in the last five years.

In New York, where the pricing was to be decided, the global markets had turned volatile threatening to scuttle the whole exercise. However, with a strong order-book from Asia and the Middle East, a small window of opportunity appeared when the market stabilised.

Bold and quick decisions were made to capitalise on it. The price “whisper” began at around the Treasury+200 basis points range and the order-book started to fill up and demand momentum was sustained.

With such an encouraging order-book, the pricing guidance was issued at Treasury+190 basis points and finally the issue was priced to yield 3.928%.

The final pricing at Treasury+180 basis points was very competitive, given the uncertainty and volatility of markets caused by the ongoing Greek debt crisis.

The spread on the five-year sukuk due in June 2015 further narrowed by six basis points a day after listing, reflecting robust demand for Malaysia’s dollar debt.

It was challenging to launch and conclude the largest sovereign sukuk ever at the lowest price for an Asian sovereign issue in the last five years. Despite the volatile markets, there was overwhelming response to the global sukuk, reflecting investor confidence in Malaysia’s credit story and growth prospects.

We must sustain this confidence by implementing all reform measures, however painful it may be in the short term. We must sacrifice for the greater good of the nation in the long run.

The success of the global emas sukuk is indeed an international recognition and endorsement of Malaysia’s credit story and confidence in the reform agenda of the New Economic Model under the leadership of Prime Minister Najib Tun Razak.

“Our sukuk offering was priced at the lowest yield achieved by an Asian sovereign in the past five years notwithstanding volatile market conditions. We also had wider investors base from Asia, the Middle East, Europe and the US. This is a great achievement for Malaysia.”

Intra Corporate Buy-in of Sports Toto Shares

So why is this happening?

Was it in the light that they believed that Ascot will get the Sports betting licence?

The licence is gone for now...........

If so, will this purchase continue?

So far this is the status of purchase.

BCorp and its unlisted indirect subsidiaries, Inter-Pacific Capital Sdn Bhd (IPC), Inter-Pacific Securities Sdn Bhd (IPS) and Bizurai Bijak (M) Sdn Bhd have bought 56.74 million of 10 sen shares in Berjaya Sports Toto Bhd (BToto) from the open market.

The companies bought the shares, which represent 4.24 per cent equity in BToto between June 25 2009 and June 24 2010, for RM247.93 million or at an average acquisition price of RM4.37 per share.

"The acquisitions have enabled the BCorp group to step up its interest in BToto via purchases in the open market, in a gaming company with good financial performance and dividend track record which provides lucrative yield to investors," the company told Bursa Malaysia yesterday.

3A Resources Berhad-Just Visiting

I took this write up from a blog.

It surely gives you a background of what has happened at 3A Resources Berhad.

Just read it and if you think it is time to enter, do so.

" You can't hit all the balls pitched to you, I guess. A good friend asked me to look up 3A two weeks back. I said, I don't even know what they did. I did looked it up, its principal activities were manufacturing and selling of food and beverage ingredients. That didn't look too exciting, although I did note that it was a growth based company, having been moved to the Main Board from Mesdaq.

But without further information, the stock was looking quite expensive at 80 sen. Now that the news is out, you wished you had some at 80 sen. Gawd, they placed out 20% new shares to Wilmar International. What a platform!!! I think that is like placing shares to Warren Buffett, seriously. Wilmar has done so well in palm oil, and has made waves moving to China with an upcoming listing in HK. Their China vehicle will focus on food, water and related industries. It will take a huge person to bet against Wilmar. But, you cannot hit all balls pitched to you, particularly when you have no idea what was happening. Good job on those who managed to buy early.

3A Resources Berhad was incorporated in1977 as a family business producing soy sauce. In 1989, the family business was incorporated into San Soon Seng Food Industries. 3A listed on the on MESDAQ on 13/8/2002 and subsequently moved the Main Board of the Bursa Malaysia on 18/6/2008.
3A is one of the leading ingredients manufacturers in the food and beverages industry. All the products manufactured by the subsidiary have been certified as HALAL by the Islamic Development Department of Malaysia. It is also ISO9001 certified by the Standard Industrial Research Institute Malaysia for its quality management system.

Aside from its main products, the company also has two additional products, namely caramel powder and hydrolyzed vegetable protein powder. Currently, the group exports approximately 30% of its group sales to 25 countries. Three A's latest product is glucose -based powder, maltodextrin, which is used in infant milk powder and 3-in-1 instant beverage. This product was previously imported from the US, Thailand, China and Europe. Its customers include multinational corporations in Malaysia such as an American supplier of chili sauces to food chains in Malaysia and Hong Kong based Lee Kum Kee group which produces oyster sauces.

The new glucose plant is already running at about 40-50% capacity, since its completion in 4Q08. Aside from additional external sales, the availability of  glucose means the company is now running its maltodextrin plant at almost full capacity. Previously, limited feedstock had kept production at just about half of its 1,200 tonne per month capacity.

3A has made very good inroads into this relatively new market. Its  maltodextrin plant is the only one in Malaysia and has been operational since  mid-2007. Maltodextrin is a white powder with little sweetness, has a bland taste and is widely used as fillers or bulking agent.

In particular, the company has been quite successful in tapping into the 3-in- 1 dry beverage mixes market segment. Prior to 3A’s entry into the market, all of the maltodextrin consumed locally is imported. The company’s proximity to end-user companies gives it a strong home ground advantage. Its maltodextrin is also competitively priced against those imported from the US and Europe.

Aside from 3-in-1 mixes, 3A is also eyeing other segments of the maltodextrin market, such as the infant milk powder industry. Following positive feedback from end-users, both local and in the region, the company is now planning to set up another maltodextrin plant capable of producing up to 2,000 tonne per month.

If all goes to plan, the new plant will be operational by 4Q2010 – and will underpin growth in 2011-2012. As a stopgap measure, 3A intends to upgrade its existing maltodextrin plant, which would boost output up to 1,500 tonnes per month, to cater to rising demand.

Additional feedstock requirement for the new maltodextrin plant was already taken into account when 3A was building its glucose plant last year. The glucose plant, with current capacity of 7,000 tonne per month can easily be upgraded to produce up to 12,000 tonne per month with the incurrence of just a small additional capex.
The Proposed Private Placement will entail the issuance of up to 20% of the issued and paid-up share capital of 3A. Based on the issued and paid-up share capital of 3A as at 30 September 2009 of RM61,600,003 comprising 308,000,019 ordinary shares of RM0.20 each ("3A Shares"), a total of up to 61,600,003 3A Shares ("Placement Shares") may be issued pursuant to the Proposed Private Placement.

The Placement Shares are proposed to be placed out at an indicative issue price of RM0.75 per Placement Share. The issue price of RM0.75, represents a discount of approximately 12.63% to the five (5)-day WAMP up to 02 October 2009 of RM0.8584.The Placement Shares are proposed to be placed out to strategic third party investors, namely Wilmar International Limited ("Wilmar" or “Investor”). Wilmar has given a letter stating that it is interested to subscribe for 61,600,000 Placement Shares at RM0.75 per Placement Share. Upon the completion of the Proposed Private Placement, Wilmar will emerge as new substantial shareholder of the Company with equity shareholdings of 16.67%.

The Proposed Private Placement is to enable 3A and Wilmar to collectively venture into any future overseas investments.

Selangor Water Assets -Towards Resolution?

After close to  two-year deadlock, there appears that the proposed consolidation of water assets in Selangor could  finally be concluded soon, writes Tee Lin Say in the online-STAR.

The main question now is, who will control the special purpose vehicle (SPV) that will oversee the operations and maintenance (O&M) portion of the state’s water industry.

Recently, there have been strong indications that all the parties are close to agreeing on pricing, and are now in the midst of ironing out the O&M issues. Sources believe that the Selangor government and Pengurusan Aset Air Bhd (PAAB) will jointly pay for the acquisition of the state’s water assets and liabilities at over one-time book value.

The Federal Government’s share of the acquisition price will approximately be equivalent to one-time book value of the assets, while the state government will pay the rest. This could mean that PAAB will own the assets, while the Selangor government will end up with a stake in the management of the assets.

Another burning question is whether the SPV will have private sector participation. As it stands, the state’s water assets are parked under four concessionaires – Syarikat Bekalan Air Selangor Sdn Bhd (Syabas), Syarikat Pengeluar Air Selangor Sdn Bhd (Splash), Puncak Niaga (M) Sdn Bhd and Konsortium Abbas Sdn Bhd (Abass).

Currently, the state government has considerable clout over Selangor’s water supply chain via its listed investment arm, Kumpulan Perangsang Selangor Bhd (KPS), which owns 55% of Konsortium Abbas and 30% of Splash. It also owns a 30% stake in Syabas, the state’s water distribution company.

Says one observer: “While the state shall definitely lead the SPV, it only has Konsortium Abass, and hence will not be able to go full-scale. Perhaps, it could outsource some parts to Gamuda Water Sdn Bhd or Sungai Harmoni Sdn Bhd.” Gamuda Water belongs to Gamuda, while Sungai Harmoni is owned by Taliworks Corp Bhd.

Another observer disagrees, pointing out that it will not cost much for the state to set up an O&M unit.

“Why would they want to share the profits? After all, it is the O&M portion which has the attractive margins. Since they are already buying over the assets of the concessions, maybe they can just buy over some of the O&M units, for instance Gamuda Water or Sungai Harmoni,” he conjectures.

An AmResearch analyst says these latest development implies that Splash’ offer in March for the consolidation of Selangor’s water industry at RM10.75bil may have prodded both the Federal and state governments to expedite consolidation talks.

“More importantly, it validates our earlier conviction that the Selangor government remains very much in contention to lead the consolidation of water assets within the state,” adds the analyst.

Gamuda launched the takeover offer via Splash, its 40% associate. That proposal was shot down as it was seen to be not in line with the regulatory framework for the industry.

According to the AmResearch analyst, based on the Splash offer, the implied valuation for Puncak Niaga and KPS is estimated at close to RM4.50 per share and RM1.88 per share respectively.

“We caution that nothing has been finalised as yet. Any deal would not be consummated until the issue of control over the SPV has been resolved. More importantly, we hold the view that the Selangor government is unlikely to consent to any purchase of Puncak’s water assets unless it secures control over water distribution rights in Selangor,” he adds. Owned by the Ministry of Finance, PAAB was set up in May 2006 to restructure and consolidate the country’s fragmented water sector, with the intent of making the state concessionaires asset-light.

The state and federal governments had been in a stalemate over the last two years over who should consolidate Selangor’s water assets and control over the supply and distribution.

In June 2009, the state government made an offer of RM9.22bil, or one-time book value, for the water-related equity, assets and liabilities of the four water companies. However, the parties could not come to an agreement. Gamuda then stepped in with its offer, which may have helped bring the standoff closer to an end.

Will KPS shareholders still have to wait for Godot?

China Funds: Destination Malaysia

China’s banking regulator has recognised Malaysia as an approved investment destination, paving the way for an inflow of Chinese funds into this country, the Securities Commission (SC) said.

The SC said Malaysia had now become an approved investment destination under China’s Qualified Domestic Institutional Investor (QDII) scheme and thereby joined the ranks of 10 other such recognised jurisdictions.

They are Australia, Canada, Hong Kong, Germany, Japan, Luxembourg, Singapore, South Korea, the United Kingdom and the United States.

SC chairman Tan Sri Zarinah Anwar and China Banking Regulatory Commission (CBRC) chairman Liu Mingkang signed letters of exchange in Beijing yesterday to formalise the recognition. CBRC is China’s banking regulator.

Zarinah said in a media statement: “The QDII programme presents a major opportunity for Malaysian capital market intermediaries to gain access to the Chinese market. They should therefore make full use of the opportunity to broaden their reach to this new pool of investors.”

The programme enables Chinese nationals to invest in overseas markets through approved institutions.
The China Securities Regulatory Commission (CSRC) had also confirmed that based on an existing memorandum of understanding with the SC, Malaysia is an approved investment destination under the QDII programme for Chinese fund management and securities companies.

CSRC is China’s capital market regulator.

“With the recognition, approved institutions regulated by CBRC and CSRC may now invest funds pooled from their clients into Malaysian securities, including equities, fixed-income products and collective investment schemes approved by SC.

“Such Chinese institutions may also engage the services of licensed Malaysian fund managers to assist with QDII investment matters,” the SC said.

Bursa Malaysia Bhd said the QDII recognition augured well for the exchange.

“It is aligned with our other initiatives such as improving our country classification for the capital market. We also see this benefiting us in terms of enhancing our attraction as a capital-raising platform for foreign companies, particularly Chinese companies.”

Bursa noted that Malaysia was the second Asean country to be recognised as an authorised market for Chinese investors.

Inter-Pacific Asset Management Sdn Bhd chief executive officer Robbin Khoo said this development paved the way for joint ventures and collaborations between Malaysian fund asset managers and their Chinese counterparts.

“Our relationships can now be reciprocal. Market players can now build relationships where each can be directly involved in the other’s market,” he said.

Khoo added that with Malaysia having promoted itself well as an international Islamic finance hub, there should be keen interest from the part of Chinese investors looking for exposure into syariah-compliant investment products.

It is understood that the Chinese government had mandated the QDII programme to get their institutional and other investors to diversify their funds into different asset classes and different parts of the globe.

“Commodity-based securities or derivatives could be a target investment by China, given its increasing bilateral trades with Malaysia,” pointed out a fund manager familiar with the programme.

It is still unclear how much funds will actually flow into the Malaysian market as a result of this development.
It is understood that Chinese authorities have approved its banks and securities-related firms under the QDII scheme to invest up to US$47.7bil so far. However, it is unclear how much of this has been invested in approved markets.

Canada was the last recipient to gain the QDII status in April. Canadian Finance Minister Jim Flaherty had then said in a statement that the recognition would give Canadian financial markets access to up to US$8bil in investment capital.

1Malaysia Sukuk Under Subscribed!

Well, what do you know.

First, the 1Amanah Saham Malaysia went abegging. Now, 1Malaysia Sukuk suffers the same fate.

I wonder how will PM Najib react to this?

Let us read this release from the Ministry of Finance.

" Take up of the 1Malaysia sukuk issued by the Ministry of Finance fell short as only RM2.4 billion out of the RM3 billion sukuk was subscribed as of June 21.

Last year’s Sukuk Simpanan Rakyat, also issued by the Ministry of Finance, was fully subscribed after nine days of sale and the initial amount of RM2.5 billion was upsized to RM5 billion by using the allocation of the second series.

Both sukuks offered a five per cent return per annum for three years to investors.

The Ministry of Finance said today that Sukuk 1Malaysia 2010 amounting to RM2.4 billion was allocated to 74,781 investors who will be notified by their agent banks.

It added that beginning 22 June, investors can sell and purchase the sukuk at agent banks.

The purchase of the sukuk is based on a first-come first-served basis, with no maximum limit, subject to the availability of the sukuk sold by existing sukukholders. The minimum sale or purchase is RM100 and transactions are in multiples of RM100. An administrative cost of 0.1 per cent of the nominal purchase value is payable to the agent banks.

The selling and buying prices are calculated based on principal at par plus accrued profit.

Information on the availability of Sukuk 1Malaysia 2010 and daily prices can be obtained from www.bondinfo.bnm.gov.my or checking with agent banks.

A Re-look at Genting Berhad

Let us read what a blogger has to say about what is happening at RWS and Universal Studios Theme Park at Sentosa Island, Singapore.

" A peek at RWS-Full house!

Our attempt to visit Universal Studios was futile as tickets were sold out during weekends and on the day of our visit. Park capacity has increased to about 8,000 to 10,000 guests (from 5,000 visitors in May; full capacity: 30,000) and operating hours was extended to 7pm (from 6pm) in view of the school holidays. Hotels were seeing more than 80% occupancy, with weekends fully booked. While the casino was quiet during our visit on Monday morning, we understood that gaming operations have stabilized post-MBS opening and are seeing good visitations backed by strong loyalty from Genting Group’s Worldcard members.

A total different picture was presented during our evening peak hour visit, with table crowds averaging 3 rows deep.

Positive stance on Singapore gaming. 

Even with MBS’ opening in Apr10, we believe GENS will likely report another strong quarter backed by healthy visitations during the peak holiday season (May-Jul10). While Genting Singapore offers the best leverage into Singapore’s duopolistic market, a cheaper entry will be via Genting Berhad (Buy/ TP: RM9.00) which is trading at half of GENS’ valuation at 7.4x 2011 EV/EBITDA, along with resilient base earnings from its other operations ie Malaysian gaming, plantation and power. "

My Observation:

Genting Berhad's price has broken the RM7.00 psychological barrier and moving slowly upwards trying to sustain gains collected along the way.  Bearing no unforeseen drastic market movements, Genting Berhad should move beyond RM7.60 by this Friday 25 June 2010.

Accidents or otherwise?

Throughout history, humans have always been prone to accidents.

An accident is defined as "an undesirable or unfortunate happening that occurs unintentionally and usually results in harm, injury, damage, or loss".

Let us look at the 10 ten most expensive accidents in the history of the world as measured in USD.

The nett loss includes property damage and expenses incurred related to the accident such as cleanup and industry losses. Many of these accidents involve casualties which obviously cannot be measured in dollar terms. Each life lost is priceless and is not factored into the equation.

However, it must be pointed out that deliberate actions such as war or terrorism and natural disasters do not qualify as accidents and therefore are precluded here.

# 10. Titanic - $150 Million

The sinking of the Titanic is possibly the most famous accident in the world. But it barely makes our list of top 10 most expensive. On April 15, 1912, the Titanic sank on its maiden voyage and was considered to be the most luxurious ocean liner ever built. Over 1,500 people lost their lives when the ship ran into an iceberg and sunk in frigid waters. The ship cost $7 million to build ($150 million in today ' s dollars).


# 9. Tanker Truck vs Bridge - $358 Million

On August 26, 2004, a car collided with a tanker truck containing 32,000 liters of fuel on the Wiehltal Bridge in Germany . The tanker crashed through the guardrail and fell 90 feet off the A4 Autobahn resulting in a huge explosion and fire which destroyed the load-bearing ability of the bridge. Temporary repairs cost $40 million and the cost to replace the bridge is estimated at $318 Million.

# 8. MetroLink Crash - $500 Million

On September 12, 2008, in what was one of the worst train crashes in California history, 25 people were killed when a Metrolink commuter train crashed head-on into a Union Pacific freight train in Los Angeles . It is thought that the Metrolink train may have run through a red signal while the conductor was busy text messaging. Wrongful death lawsuits are expected to cause $500 million in losses for Metrolink.

# 7. B-2 Bomber Crash - $1.4 Billion

Here we have our first billion dollar accident (and we ' re only #7 on the list). This B-2 stealth bomber crashed shortly after taking off from an air base in Guam on February 23, 2008. Investigators blamed distorted data in the flight control computers caused by moisture in the system. This resulted in the aircraft making a sudden nose-up move which made the B-2 stall and crash. This was 1 of only 21 ever built and was the most expensive aviation accident in history. Both pilots were able to eject to safety.

# 6. Exxon Valdez - $2.5 Billion

The Exxon Valdez oil spill was not a large one in relation to the world ' s biggest oil spills, but it was a costly one due to the remote location of Prince William Sound (accessible only by helicopter and boat). On March 24, 1989, 10.8 million gallons of oil was spilled when the ship ' s master, Joseph Hazelwood, left the controls and the ship crashed into a Reef. The cleanup cost Exxon $2.5 billion.

# 5. Piper Alpha Oil Rig - $3.4 Billion

The world ' s worst off-shore oil disaster. At one time, it was the world ' s single largest oil producer, spewing out 317,000 barrels of oil per day. On July 6, 1988, as part of routine maintenance, technicians removed and checked safety valves which were essential in preventing dangerous build-up of liquid gas. There were 100 identical safety valves which were checked. Unfortunately, the technicians made a mistake and forgot to replace one of them. At 10 PM that same night, a technician pressed a start button for the liquid gas pumps and the world ' s most expensive oil rig accident was set in motion.

Within 2 hours, the 300 foot platform was engulfed in flames. It eventually collapsed, killing 167 workers and resulting in $3.4 Billion in damages.

# 4. Challenger Explosion - $5.5 Billion

The Space Shuttle Challenger was destroyed 73 seconds after takeoff due on January 28, 1986 due to a faulty O-ring. It failed to seal one of the joints, allowing pressurized gas to reach the outside. This in turn caused the external tank to dump its payload of liquid hydrogen causing a massive explosion. The cost of replacing the Space Shuttle was $2 billion in 1986 ($4.5 billion in today ' s dollars). The cost of investigation, problem correction, and replacement of lost equipment cost $450 million from 1986-1987 ($1 Billion in today ' s dollars).

# 3. Prestige Oil Spill - $12 Billion

On November 13, 2002, the Prestige oil tanker was carrying 77,000 tons of heavy fuel oil when one of its twelve tanks burst during a storm off Galicia , Spain . Fearing that the ship would sink, the captain called for help from Spanish rescue workers, expecting them to take the ship into harbour. However, pressure from local authorities forced the captain to steer the ship away from the coast. The captain tried to get help from the French and Portuguese authorities, but they too ordered the ship away from their shores. The storm eventually took its toll on the ship resulting in the tanker splitting in half and releasing 20 million gallons oil into the sea.

According to a report by the Pontevedra Economist Board, the total cleanup cost $12 billion.

# 2. Space Shuttle Columbia - $13 Billion

The Space Shuttle Columbia was the first space worthy shuttle in NASA ' s orbital fleet. It was destroyed during re-entry over Texas on February 1, 2003 after a hole was punctured in one of the wings during launch 16 days earlier. The original cost of the shuttle was $2 Billion in 1978. That comes out to $6.3 Billion in today ' s dollars. $500 million was spent on the investigation, making it the costliest aircraft accident investigation in history. The search and recovery of debris cost $300 million.

In the end, the total cost of the accident (not including replacement of the shuttle) came out to $13 Billion according to the American Institute of Aeronautics and Astronautics.

# 1. Chernobyl - $200 Billion

On April 26, 1986, the world witnessed the costliest accident in history. The Chernobyl disaster has been called the biggest socio-economic catastrophe in peacetime history. 50% of the area of Ukraine is in some way contaminated. Over 200,000 people had to be evacuated and resettled while 1.7 million people were directly affected by the disaster. The death toll attributed to Chernobyl , including people who died from cancer years later, is estimated at 125,000. The total costs including cleanup, resettlement, and compensation to victims has been estimated to be roughly $200 Billion. The cost of a new steel shelter for the Chernobyl nuclear plant will cost $2 billion alone. The accident was officially attributed to power plant operators who violated plant procedures and were ignorant of the safety requirements needed.

Well, in a phrase, these accidents are "definitely man-made".

Yuan Set to Float

Yes, you read correctly. China is allowing the yuan to float.

China will gradually make the yuan’s exchange rate more flexible, the central bank said today, indicating that it was ready to break a 23-month-old dollar peg that has come under intense fire from abroad.

The People’s Bank of China all but ruled out the one-off revaluation or major appreciation hoped for by critics, saying there was “no basis for big fluctuations or changes” in the exchange rate.

However, it was clear that China intended its announcement — published in English at around the same time as Chinese, a departure from usual practice — to mark the end of the yuan’s de facto peg to the dollar, which it had defended as a “special policy” to protect its economy from the global financial crisis.

Whether the announcement will be enough to placate critics, especially US lawmakers who say an undervalued currency gives China an unfair trade advantage, remains to be seen.

“The global economy is gradually recovering. The recovery and upturn of the Chinese economy has become more solid with enhanced economic stability,” the Chinese central bank said in a statement on its website.

“It is desirable to proceed further with reform of RMB exchange rate regime and increase the RMB exchange rate flexibility,” it said. The yuan is also known as the renminbi, or RMB.

In practice, this is likely to mean that the central bank will use its system of setting daily reference rates for the yuan to guide the currency back to a path of gradual appreciation against the dollar, which it followed for three years until mid-2008.

Initial movements will probably be small, but cumulatively, it could amount to several percentage points over the next few months.

International complaints about China’s exchange rate policy had died down in recent months as the European sovereign debt crisis became the dominant concern, but in recent days pressure had begun to mount again.

A group of US lawmakers, led by Senator Charles Schumer, were pushing for a bill that would allow the United States to use countervailing duties against countries with “fundamentally misaligned” exchange rates.

And the yuan was threatening to be the elephant in the room at a G20 summit in Canada on June 26 and 27. US President Barack Obama said that it was essential to global economic vitality that countries adopt market-oriented exchange rates, but a series of Chinese officials said the yuan was China’s sovereign concern and should not be discussed in international circles.

China has held the yuan at roughly 6.83 to the dollar since July 2008 in an attempt to insulate the fastest-growing major economy from the ravages of the global financial crisis.

Well, let us hope that this new development will augur well for all.

Banks: On the War wagon!

Get globalised!

No more hiding behind affirmative policies!

Welcome to the real world.

Let us read this report.

 The doors are well flung open now for competition when BNM gave out licences to 5 foreign banks to start operations in Malaysia soon!

So, you better watch out or else your market share will dwindled to your own behest!

" Malaysian banks can expect more intense competition now that there are five more commercial foreign rivals.

This means that local lenders will have to improve their products and service level. Also, they will have to figure out how to retain their employees as the entry of new players could result in staff pinching.

RHB Research Institute head of research Lim Chee Sing said that while local banks are used to competition, they have to be wary of foreign banks which will slowly but surely intensify the heat. [Boil and bubble, Toil or face trouble!]

"It will take some time for them to fully enter into the competition, and it will arrive from various angles. Some of the local and foreign banks right now are already crossing in each other's path," says Lim.

On Thursday, Bank Negara Malaysia awarded commercial banking licences to five foreign banks, including two from Japan.

The five are France's BNP Paribas SA, Japan's Mizuho Corporate Bank and Sumitomo Mitsui Banking Corp, Indonesia's PT Bank Mandiri and the United Arab Emirates' (UAE) National Bank of Abu Dhabi.

This means that these lenders could do consumer banking, which is a growing market, as well as corporate banking, which involves lending to small and medium enterprises, among others.

Mercury Securities research analyst Edmund Tham said that local banks must buck up because foreign banks are good in certain areas, like cash management, for instance.

"Marketing people from the foreign banks will also be more dynamic because they can't operate from many branches like the local banks," he added.

Unlike local banks, which can open as many branches as they want, foreign commercial banks can only open eight.[ Never mind, they can work eight times as hard!]

Despite such limits, foreign banks are doing well. US lender Citibank has a big credit card business and was the market leader until recent years.

An analyst at TA Securities said the new banks would be strong in the corporate loan segment.

"But some Malaysian banks are responding to the challenge. Citibank, for example, was big on the credit card segment with the highest return on equity even though the bank only has a few branches.

"But now Malaysian banks are gnawing into their credit card market share. Local banks are also moving offshore to intensify their global presence, such as in Thailand, Singapore, China and other areas."

An investment banker at Kuwait Finance House said the new additions will be good for the banking landscape as there will be more options for customers.

"But local banks have to rise to the challenge as well by giving more flexible products, better rates and better customer service," he said.

Malaysia has over the years issued 19 licences for commercial banking, and three for Islamic banking, to foreign operators."

I think the field will get much more crowded in the coming years!

Who Says Orchard Road Can't Be flooded?

It flooded today.

The myth that Orchard Road has never been flooded as an adjacent Stamford Canal can efficiently drain enough water quickly  into an ocean before your latte can cool, has been proven wet and wrong!

Heavy downpour today has caused parts of Singapore’s city centre to be flooded — causing traffic havoc in the island republic.

Traffic lights at some intersections are not working contributing more to the building traffic congestion, while at some parts waters have risen knee-high making those roads inaccessible to traffic, as reported by the island’s Straits Times newspaper. 

A statement was released by the National Environment Agency at midday, confirming that 100mm of rain fell between 9am to 11am — which is equivalent to 60 per cent of June’s average rainfall.

So, the lesson we learn today-there is always a first time!

EPF: This Is Service!

Yes, the EPF has become people-centric!

Beginning this month, it opens its office at Shah Alam, Petaling Jaya and Kepong on the first and third Saturdays of every month from 8.30am to 12.30pm.

However, payments of contributions cannot be made on Saturdays.

If these days fall on public holidays, then they will also not open.

Among the services offered are receiving withdrawal applications, providing and receiving EPF forms from employees and employers, issuing members' statements of accounts, handling enquiries and giving advice on EPF services.

Looks like a minimal service offering........

Why you should attend AGMs - not for free food and door gifts

Ooi Kok Hwa wrote this in THE STAR today. Makes interesting reading.

"There are many reasons why investors look forward to attend an annual general meeting (AGM). Some attend because they hope to get free door gifts, while others look forward to the free food.

Nevertheless, there are serious investors who prepare well for an AGM. They are there to seek answers to issues related to the listed companies.

However, some investors feel that it is a waste of time to ask questions during the AGM as company directors will find ways to avoid answering them – for example, issues highlighted by investors in the previous AGM that have yet to be resolved.

We encourage investors to attend AGMs because this is the best time for them to ask questions about the financial performance and/or business decisions of the companies.

Given the time constraints of AGMs, we advise investors to read through the annual reports before attending these meetings.

Investors need to focus on company issues and not on the personalities of certain company directors. If possible, investors should take down notes so that they can refer back to the things that the company directors have promised to do.

Investors also need to examine all the resolutions at the AGM – for example, directors who are newly appointed or those seeking re-appointment.

We need to scrutinise whether these directors have relevant experience and appropriate financial skills as well as their background and reputation in the industry.

One of the most important issues to investors is dividends. We need to check not only the stability of dividend payments but also consistency according to the company’s dividend policy.

Companies need to reward shareholders with good dividends if they are unable to find any good investment opportunities to utilise the excess cash.

Unfortunately, we have seen a lot of companies that refuse to pay special dividends despite having excess cash.

One of the most common questions raised by investors is about directors’ fee. Most of the time, the fee should be the same as in the previous year.

If there are any significant increases, we need to check whether the fees are proportionate to the reported earnings as well as the overall salary expenses.

Given that AGMs are normally held a few months after the previous financial year-end, investors can take the opportunity to ask management about the outlook for the current financial year versus the previous year’s performance.

We can also request the management to elaborate further on the company’s prospects, capital expenditures or special capital calls in the near future.

Lastly, we need to exercise our rights by voting on the resolutions. Sometimes the results of the resolutions may not be in line with our wishes, but at least we have voiced our views.

If minority shareholders are active and show interest in the company’s future, management will likely be more careful in making business decisions, especially on projects that may be viewed as not maximising shareholder value.

Ooi Kok Hwa is an investment adviser and managing partner of MRR Consulting."

Now, you know why Genting M does not tell us why they did not dispose of the USD1.5 million cash hoard they have as dividends or as a bonus issue?. They are going to America!

Adventa: A Potential Buy-in

OSK has maintained its 'buy' recommendation on Adventa today, setting the target price at RM5.37. Is this a bridge too far?

Maybe at the moment, it may look far-fetched.

OSK expects Adventa to announce its second quarter 2010 results today, which they figure may come in below their  expectations.

OSK cited higher latex price, smaller new orders and the weakening of the USD against MYR during the quarter for their stance..

'Going forward, we believe 3QFY10 would be a better quarter for Adventa as the latex price increase is easing and the USD-MYR rate has stabilised, and it experienced a slight increase in production capacity from its new nitrile glove lines,' OSK added.

Seriously, is OSK talking through its hat.?

With this type of projection for Adventa's price, I fear OSK may just eat crow!

Not bird-Brained!

Smart bird!

Elvis-My Way

Amazing Grace!

Elvis Oldies yet Goodies!

 Suspicious Minds


Elvis' weddings photographs through the song, 'You Were Always On My Mind'.


 Lonesome no more with Elvis.



My first memorable song from Elvis! 'Return to Sender'



'The Wonder of You' - Elvis at his best!



Wooden Heart, we all ain't!

Engelbert - Suave and Sizzling!

Definitely not the 'Last Walz'



'Love Me with All of Your  Heart', pleads Engelbert, in full verbal compassion.


Engelbert songraphy through the mezmerising, " Eternally".



Engelbert sings Stranger in Paradise. Enjoy!

EPF : Becoming Relevant

The list of critical illnesses had been expanded from 13 to 36, EPF chief exeutive officer Tan Sri Azlan Zainol said in a statement today. 

"The new expanded list takes into consideration the significant costs required in treating these critical illnesses, and is aimed at helping members fully settle or help ease their financial burden of seeking treatment," he added.

Members can now withdraw their savings also for Alzheimer's Disease, Parkinson's Disease, chronic liver and lung diseases, Systemic Lupus Erythematosus (SLE) with Lupus Nephritis and paralysis. 

Azlan said that for withdrawals to treat family members who are under the age of 16, joint withdrawal could be made with other family members to cover the required medical expenses subject to the balance in Account 2 and total cost of treatment.

Family members include spouse, children, stepchildren or legally adopted children, parents, parents-in-law, step parents or legally foster parents and siblings.

All withdrawals are subjected to the validity of medical report, bills and receipts which must not exceed one year from the date the withdrawal application is submitted. 

All bills and receipts must also be in the name of the patient or applicant.

Withdrawals are not allowed for illnesses outside the approved list or when the cost of medical treatment is fully covered by the respective member's employer or the employer of his or her family members.

Those receiving fertility treatments or alternative treatments such as acupuncture or traditional medication are also not entitled.

The 36 critical illnesses are aplastic anaemia, appalic syndrome, Alzheimer's Disease, benign tumour of the brain, blindness, cancer,

cardiomyopathy, chronic liver disease, chronic lung disease, coma, coronary artery disease, deafness, encephalitis, fulminant viral hepatitis, heart attack, heart valve replacement, kidney failure, loss of independent existence, loss of speech, major burns, major head trauma, major organ transplant, medullary Cystic disease, meningitis, motor neurone disease, multiple sclerosis, muscular dystrophy, paralysis, Parkinson's disease, poliomyelitis, primary pulmonary, stroke, surgery to aorta, systemic lupus erythematosus with lupus nephritis, terminal illness and total permanent disability. 

I think the EPF is becoming more relevant!

Genting: Now It's the USA!

Gentings is now looking for investments in the U.S.

Justin Leong, the investment head chief at Gentings said that  “Genting Malaysia is aggressively searching for opportunities to invest in the U.S. casino gaming market.” He indicated that the strategy is towards building a US presence.

Armed with $1.7 billion in cash and debt free, Genting Malaysia is seeking acquisitions , new markets and potentially a strategic partnership in the U.S.

Earlier this month, it also bid to develop a slots casino at Aqueduct Racetrack in New York City.

It's foray into the US started with it buying MGM Mirage bonds.

The company bought MGM Mirage ’s secured bonds in May 2009 when the Las Vegas Strip’s biggest casino owner raised cash to avoid a potential bankruptcy. Genting Malaysia has invested in every capital issue by Las Vegas-based MGM since its first foray into the U.S. casino market. Apparently  that relationship will continue.
Genting Malaysia is also looking at developments and new gambling jurisdictions opening in the U.S.

The bid for Aqueduct “is another step.”

Kerkorian’s Stake

The investments include $100 million of bonds secured by MGM’s Bellagio and Mirage properties in Las Vegas, 9 percent notes tied to MGM Grand and MGM Mirage’s recently issued convertible senior notes.

Kirk Kerkorian , who founded MGM Mirage and is its biggest shareholder, said in October that his Tracinda Corp. is exploring “strategic alternatives” for its 37 percent stake.

The investor, 93, said in regulatory filings that MGM Mirage is undervalued and he is open to proposals.

Leong wouldn’t elaborate on Genting’s interest or say whether there have been talks with Kerkorian, whose stake in MGM Mirage is valued at $1.9 billion.

The shares rose 14 cents to $11.60 on June 11 in New York Stock Exchange composite trading and have gained 27 percent this year. Winnie Lerner , an outside spokeswoman for Tracinda, and Alan Feldman , a spokesman for MGM Mirage, declined to comment.

MGM Mirage and partner Pansy Ho hold one of the six casino licenses in Macau, the southern Chinese city that is the world’s largest gambling hub. Ho is the daughter of Macau casino billionaire Stanley Ho .

‘Faster, Sooner’ revenue from the Malaysian casino, a gambling monopoly held for almost four decades, helped build the Genting Bhd. empire that includes hotels, Star Cruises and Norwegian Cruise Lines, power generators and palm oil plantations.

In February, a Genting affiliate opened Singapore’s first casino, a $4.7 billion resort with a Universal Studios theme park , adding to the group’s Resorts World casinos in Malaysia’s highlands and the Philippines capital of Manila.

Genting also is the biggest casino owner in the U.K., operating under the Circus, Maxims and Mint brands.

There is competition for deals in Las Vegas as the city recovers from its worst economic slump on record.

Hedge fund billionaire John Paulson is acquiring a 9.9 percent stake in Harrah’s Entertainment Inc. In May, his New York-based Paulson & Co. said it owned 9.1 percent of MGM Mirage and 4.6 percent of Boyd Gaming Corp.

Genting Malaysia has held investment talks with large U.S. casino companies since December 2008, Leong said, declining to specify them. “I wish I had worked faster and done something sooner,” Leong said.

Leong, a nephew of Genting Chairman and Chief Executive Officer Lim Kok Thay and grandson of founder Lim Goh Tong , joined the family company in September 2004 after about four years at Goldman Sachs Group Inc.

Aqueduct Auction Genting is one of six potential bidders vying to renovate Aqueduct Racetrack and operate a slot machine-style “racino” with 4,500 video-lottery terminals in Queens. The latest round of proposals, which require a minimum $300 million up front, are due June 29. The family’s closely held Kien Huat Realty previously invested in three U.S. casino ventures, and last month partnered with the Mashpee Wampanoag Tribe to finance a proposed casino resort in Massachusetts.

In the early 1990s, Kien Huat financed the Foxwoods Resort & Casino in Connecticut, whose tribal owners defaulted on about $2.5 billion of debt last year, and the Seneca Niagara Casino in New York. In August, Kien Huat paid $55 million for 50 percent of Empire Resorts Inc. , owner of the Monticello Casino & Raceway in Monticello, New York, helping Empire to restructure some debt.

So,where do you think Gentings is heading? They have tentacles all over the world, so it seems!

Nipple Power!

Did it show or did it not?

That is the USD 64,000 question.

Apparently, while doling out autographs, beauty queen Lara Dutta's low cut evening dress decided to go its own way. The strap gave way and revealed more than her bra. Some said they saw a nice nipple peeping out in public.

Flip,Flop and Flip Again!

This is definitely a first.

Flip-flop-and then flip back again!

So, it was not a double u-turn as originally thought of.

Know what I am referring to?

Yes, the ban on the 12 stick cigarette in the so-called 'kiddy-pack' box.

Sadly , the Health Ministry today confirmed that enforcement of the small pack has yet to begun though the ban took place on June 2nd.

Why are cigarette companies not taking this ban seriously?

Oh, yes, our Rokok Minister says that instructions have been issued but cigarette companies say that they have yet to receive those directives. So, who is playing poker here?

First, our Rokok Minister says it will be enforced in a few months, very likely in January 2011. Then he was railroaded by the imperial Cabinet to start the ban on June 1st. It must have embarrassed the Cabinet no end to know that Rokok Minister has yet to enforce the ban! What is Rokok Minister up to?

This flip-flopping has also invited the ire of Philip Morris which intends to sue the Malaysian government for revenue loss.

Tobacco firms, in obeying with the ministry’s directive issued in December last year, had stopped producing 14-stick packs to keep with the June 1 deadline.

The small packet ban has already been deferred thrice — first in 2005, then in 2006, and most recently, in May of this year.

The government, under Prime Minister Datuk Seri Najib Razak’s administration, has come under fire for indecisiveness in the execution of its policies, with critics even dubbing the nation’s premier as “the father of all flip-floppers”.

Other policies recently reversed by the government include the implementation of the Goods and Services Tax and the two-tiered fuel subsidy mechanism.

In Malaysia Semua Boleh, what else is new?