Berjaya Group Shares-A Tsunami of Sellers

One look at the board and you would see Berjaya Group shares gravitating down in price every trading day. so what is happening?

Anyone care to tell?

Look at the doyen in the group-Sports Toto. In its history, it is always a range-bound share floating between RM4.50 to RM5.00. Now look at it. It is in the teens above RM4.00. Dividends paid is still okay but why it is looked at with so much disdain these days for it to break the RM4.50 mark?

BJ Land though priced at about the RM4.30 price level is a counter that is too tightly held or interest is just not there in spite of the share split and bonus. Is it because some of its so-called grand projects are not coming through.. The one of most concern is the project to shift the Selangor Turf Club facility from Sungai Besi to Salak Tinggi. That has gone down for sometime as the PR government is still looking at the plans. Until we receive a whisper on that, BJ Land has to seek other exciting games to play.

BJ Corp has seen the best of times when the Ascot Game licence was in the offing for sports betting. With the failure to secure that licence, prices spiral downwards. Then after off-loading BJ Retail, it has sunk below RM1.00. I think it may go down further at this rate if BJ Roosters gets listed. True it will be cash rich and could become the war-chest for Vincent to play his games in 2011. Or is the General elections around the corner?

BJ Retail, newly listed is facing a slew of sellers every day? I wonder who is selling. Is Vincent cashing out while Berjaya Sampo is picking it up for cheap, benefiting Vincent either way? Looks like it as a majority seller must be in the market. Until the bleeding stops, BJ Retail will be in this price stupor.

BJ Media is another poor thing. After giving dividend-in-specie to its shareholders with the sale of THE EDGE business paper, the price of this stock started going south from 65 sen. Today it is about 40 sen though it surprisingly showed new life picking up 6 sen in today's morning session.

BJ Asset is also suffering from the same malaise. From a sprightly move to the 70 sen level given the better returns on number forecast operations in Sarawak, the occupancy of Berjaya Times Square and sale of  some condominiums, it has succumbed to selling pressure and has moved back close to the 50 sen level. How sad!

So, Vincent-where is the beef?

Or are you cashing out just like Bob Kuok,Ananda, Francis and Kok Thay?

That Special School Without Students

By Debra Chong from Malaysia Insider has a telling story which will bring out the guffaws.

Let us read on.

KUALA LUMPUR, Sept 1 — The nation’s first school for pregnant teens — dreamt up by Melaka Chief Minister  Ali Rustam is slated to open its doors today. Sadly there is a ghost of a chance to find any students there.

Obviously there was interest when the idea was mooted so claimed certain quarters. However,  
Melaka State Islamic department (Jaim) director, Sulaiman Harmain Shah, has this to say now. “We’ve had a few people calling up to ask,”  he said as he is is in charge of the management of the state-run private school in Jasin named “Sekolah Harapan” (School of Hope).

“But no one has registered to be a student yet,” he admitted to The Malaysian Insider in a recent phone interview.

Sulaiman quickly added that enrolment into the school was not automatic and candidates were required to first attend an interview with the state Islamic department.

The interview was necessary to determine, among others, if the schoolgirl in question was a genuine case, whether she had the support of her parents or had been disowned and required housing, Sulaiman explained.

The religious head also disclosed that the school may not be fully ready for its first intake today, with the premises still undergoing a makeover from its previous incarnation as office suites.

“It’s still under renovation. The dormitory is complete. We have a dormitory that can accommodate 12 people,” Sulaiman said.

Apart from the physical aspects of the school, the Islamic department only has a few religious teachers on its faculty.

Other teachers will be hired “part-time” as and when needed, Sulaiman said.

“It will be like a tuition centre,” he added.

Mohd Ali had first announced his idea to set up a dedicated school for pregnant teens in July, with the thought that it could help cut down incidents of newborn babies being dumped, setting off a national debate on the need for such a school and on the reasons behind it.

The education ministry has refuted the need, pointing that its regulations allows all girls access to schooling regardless of whether they are pregnant or married.

But the Melaka CM disputes the ministry’s statement and claims some principals have sent home students after they were found to be pregnant and leaving the teens at a loss on what to do next, which he linked to the spate of baby-dumping cases.

Mohd Ali has also highlighted that the phenomenon affects the Malays, the largest racial group in Malaysia, and carries with it a whole slew of social-religious consequences as the community is constitutionally Muslim.

His controversial idea for a “sekolah hamil” was cemented after the state approved the conditional marriage for minors, with some groups questioning if the “husbands” would be enrolled into the same campus and what subjects would be taught there.

“It’s only for the pregnant girls. Men have no problem. They can still attend school,” Sulaiman replied when asked if the “husbands” would also be attending the school.

Much about the school continues to be wrapped in a veil of mystery. The exact whereabouts of the school in Jasin is also confidential.

“We are trying to protect the girls. They are malu (ashamed),” Sulaiman defended.

He was also reluctant to disclose details but has described the school to be more of a spiritual, moral and educational shelter facility.

 Priority will also be given for pregnant Malay-Muslim teens, especially those who have been disowned by their parents and have nowhere else to go, Sulaiman added.

All 13 reported cases of baby-dumping this year have so far only involved the Malay community, police statistics show.

“This is a symptom of social ills among the Muslims… From experience, those who are pregnant seldom are interested to continue their schooling,” Sulaiman said.

This CM certainly has superb conceptual vision.

Let's give him our cheers, won't we when he should succeed  to recruit his first pupil?

Will Banks Cap Housing Loan Quantum?

Bank Negara Malaysia is thinking seriously of imposing a  loan-to-value ratio (LVR) for mortgages at 80 per cent to avert the risk of a potential property bubble in the country.

It is seeking feedback from banks on the possibility of doing so.

Currently, there is no fixed LVR. Banks usually lend up to 90 per cent of a house value, or even up to 100 per cent in some cases.

A banking analyst at a local research house thinks this is unlikley thta bank is going to support BNM's move as it will affect their profitability.

Still, BNM is likely to be mindful of this and if it feels that such a move is necessary to curb property speculation and a potential rise in non-perfoming loans, it may reach a compromise in that it may not slap the 80 per cent cap across the board, he pointed out.


"We believe that it is unlikely that BNM will enforce a strict capping of LVR across all residential property classes, but rather impose a restriction only on higher-end properties where the speculative element could be more apparent," OSK Research said in a note to clients yesterday.

Kenanga Research said it wouldn't be surprised if BNM implemented the 80 per cent cap on, at least, properties valued at more than RM500,000.

The central bank's concerns about a potential bubble are warranted, interest rate hikes this year, loan growth has remained robust while deposit growth has lagged, due in part to the channeling of retail deposits into property purchases.

Residential properties currently account for 26.6 per cent of total industry loans.

Still, OSK felt that it was not feasible to set a blanket enforcement on the LVR, pointing out that residential properties were considered one of the safer asset classes for banks to lend to, with promising growth prospects underpinned by the country's relatively young population.

As it stands, it is understood that most banks already have an internal risk control policy, limiting the LVR to 85 per cent for higher-end residential properties valued at more than RM700,000. Most banks also have a LVR cap of 85 per cent for non-residential properties.

OSK noted also that LVR was just one of several criteria that banks use in their credit scoring process. They also tend to look at the debt servicing ratio, location of property and the borrower's other financial backing.

Meanwhile, any mortgage restriction is also seen to be negative for the property sector. Kenanga Research said it is likely to downgrade the sector from a "trading buy" now if the restrictions are implemented as property transactions will fall since deposit requirements will basically double.

"If the LVR is official at 80 per cent for all borrowers, we see a negative impact on the property sector, especially on the low- to medium-end market as housebuyers will need more equity under the new scheme," said Maybank Investment Bank research.

For example, a housebuyer would need RM80,000 instead of RM40,000 as equity for a RM400,000 house. "This could cause a delay in purchasing decisions," it noted.

RHB Research, meanwhile, felt that first-time home buyers should be exempted from a higher down-payment ratio since the government has been encouraging home ownership.

YTL-Resilient and Defensive?

This is B.K. Sidhu's write-up in the STAR online paper today. It makes fasacinating reading.

This is her article in toto.

It’s an oft-told story about how YTL Group managed to stay resilient during the Asian Financial Crisis even as many large corporations became casualties of the crisis buckling under debilitating debt. That story, more often than not, is narrated by no less than the group’s chief steward Tan Sri Francis Yeoh.

It’s about how the group, by sourcing funds locally and borrowing in ringgit (as opposed to US dollar, which most businesses had done), had managed to fend off the heat of the crisis. So, while so many companies fell off the corporate sidewalk; YTL, armed with an enviable war chest of cash, went trawling to buy up assets on the cheap. Lest we forget, that’s how he scooped up UK’s major sewerage and water specialist Wessex Water over a decade ago, which today is one of its prized assets.

He also frequently enthuses over the level of service provided by the leisure and hospitality group under his stable; how guests are pampered by first class services at third world prices.

But over the years, the lingo has shifted somewhat towards blue ocean strategy and technology.

Understandably, Yeoh is passionate about WiMAX 4G and how the offering will change the way consumers think, work and play. That is the group’s new playground. If executed to plan, it could just be the group’s next great feat.

“This is a new business and a very important business (telecoms),” says Yeoh, YTL Corp’s managing director.

YTL Corp Group is today largely an infrastructure player with 12 million customers with businesses spanning three continents. It has five listed companies, excluding the REITs, within its stable and for the first time in its corporate history, revenue reached a whopping RM16bil. Net profit was RM873mil for the full year ended June 30, 2010.

This is a blue chip group with a market value of some RM34bil. Combined, the group has assets worth RM45.4bil and a war chest of RM12bil cash.

Yet investors’ response to YTL Corp appears to be lukewarm at best.

“I don’t have a Buy call on YTL Corp and I think at the current price it is fairly valued. It is not as sexy a story as its power and water units. But it does have stable earnings and dividends given the layers of profit and cashflow from its units,’’ says an analyst.

On Friday YTL Corp shares closed one sen lower to RM7.44.

The New Frontier

The transformation is already in motion. The group prides itself for adopting the blue ocean strategy – which means going where none of their competitors have ever been. As a result, it has a lot on its plate going forward.

WiMAX, for now, appears very much on the priority list of the group’s next frontier.

“It is a very big thing, the public will gain and the nation will change when we take it to town in November. The other telcos will have no choice but to be fully immersed in 4G. 4G is coming, it is a challenge and it will be fantastic,’’ says Yeoh.

Shake the market and set new benchmarks, it definitely will. YTL is using Malaysia as the test bed for WiMAX 4G. If it gets it right, the model will be replicated elsewhere across the globe. That would make it the biggest player ever to deploy WiMAX extensively.

“Partners will come to us once we prove it’s successful. I am sure all of the Asean countries (will come) and we will also get invited to expand. Our global footprint will grow and that is the kind of growth targets (we are looking at),’’ he adds.

It is not just the voice, data, video and mobile business that the group has the potential to be involved in but the whole gamut.

The World Bank conducted a study last year on the impact of broadband on the economy and found that every 10% penetration growth in broadband creates a 1.38% corresponding GDP increase in developing countries.

“Every thing that we do from 1955 (since the group’s inception) has been based on the blue ocean strategy. This is our biggest initiative,’’ he says.

The involvement in WiMAX 4G presents a perfect picture of its involvement in the utilities sector.
Besides 4G, there are areas in the water and energy business that the group wants to expand into.

The Journey

The group’s history dates back to 1955. It started as a construction company, building low-cost apartments to pioneering high-rise construction. Back then, the group needed to arrange financing for these apartments.

It was the expertise and use of technology that thrust them to the forefront of construction and YTL became the first turnkey contractor in the country. Yeoh says they were the envy of the Japanese contractors, who took three weeks to complete a floor of a building while YTL only needed seven days.

“The secret was really in the continuous pouring of concrete to hasten the process,” he says.

The KL Tower which stands tall today in the city’s skyline is a product of continuous pouring of concrete, hence its early completion. YTL had the foresight to own a cement plant that helped them manage cost.

The going was extremely good for the construction business. Then the group got another break in the early 90s following the nationwide blackout. That marked their first step into the lucrative utility sector. YTL was the first independent power producer (IPP) and managed to build a plant in a record time of 14 months. But this happened in juxtaposition, with the vociferous criticism that the IPP awards were not given out on open tender basis and the rates were unseemingly high, placing the national utility Tenaga Nasional Bhd at a great disadvantage given its high payouts to the IPP for power generation.

To fund the plant, the group opted to issue ringgit-denominated bonds, which was frowned upon by some.

“Nobody then wanted to listen to us but we believed that Asian infrastructures should be funded by their own savings rate. Asians are savers, why should we borrow from outside?’’ he says.

Over the years, the group has managed to strengthen its portfolio in the utility segment, adding more power plants such as PT Jawa and Power Seraya Ltd. Its generation capacity has grown many-fold from 1,000MW to 4,315MW. It has also gone into the power transmission business with a 33.5% stake in Australia’s ElectraNet.

An opportunity to own water assets came with Wessex Water in 2002. It was a major coup to own a British company then. From then on, there was no stopping for this group which grew and spread its wings via acquisitions.

But as Yeoh puts it: “All that is history, let’s talk about the future.’’

IPPs a ‘Jurassic Model’

Abundant opportunities in the water and power sectors in Australia, Britain and Asia are currently beckoning.

“We want to play a bigger role where the future is brighter,’’ he says.

Regulatory frameworks are changing to open up markets for competition and allow more players to participate so that there are choices; with competition, the cost of services for end users generally come down.

“The chances of Asia going that way is better,’’ he adds.

An analyst says until and unless the group acquires more assets there is not going to be a big jump in earnings.

The talk is that they are eyeing water and energy assets in Asia and given the big war chest of cash it has it should stock up sooner than later.

“They are actively looking for power and water assets in the region, it would be the regulated ones,’’ says an analyst.

Yeoh feels the era of IPP is over. He calls it a “jurassic’’ model to create a power plant to serve only one customer.

“We trade energy, we produce and sell power. We are no longer an IPP and we believe the IPP business is over. We also think there should be no more IPPs,’’ he says.

His belief is that governments should do away with monopolies and introduce competition, allow the players to compete to supply power to the grid.

“Anyone can be a power producer and supply to the grid and that will create competition and allow consumers to chose the cheapest source of power,” he says. Whether this formula is workable remains to be seen but his rationale is that if Singapore can, why not Malaysia?

“If there can be competition in the water and telecoms sector, why not introduce it for the power sector (to make players more efficient)? It is better for the public as they will have choices,’’ he says.
“We want to cut a bit more in power business. We want to be a total energy power player.”

On High Speed

The mere mention of the proposed KL-Singapore high speed rail link excites him. He is not ready to give up on his proposed project although things have been pretty quiet at that end. If the project sees the light of day, he says, it would create value not just in property but also spur economic benefits at both ends – Malaysia and Singapore.

“I always believe that if people want it, it will happen,’’ Yeoh says.

The group’s hospitality business has grown with recent acquisitions and the creation of REITs.

And don’t rule out more assets coming into this stable. The group bought The Muse Hotel in Saint Tropez in France, which has become one of Europe’s 20 most popular hotels, the Niseko Village – a ski resort in Hokkaido, Japan that has become the Aspen of the East, and Pangkor Laut Resort in Pangkor is another internationally acclaimed resort.

“We have a global footprint on hotels and we are profitable,’’ he says.

Somehow, the visible success in most of these businesses has yet to reflect on the group’s massive property project in Sentul – Sentul East and West. Toss out all the hype and brouhaha and it would seem as if the project is not moving as fast as expected.
Yeoh puts the blame on real estate valuations, which is rather modest compared to Singapore and Hong Kong. He hopes prices will eventually appreciate but that appears a tough task for the time being
“I am waiting for KL to be a very attractive capital,’’ he says.

The True Value

With wings spread across several continents and several key businesses abroad, the company could well be a Malaysian multinational. But it faces its fair share of challenges – regulatory hurdles abroad plus geo-political and currency fluctuation issues. Having staunchly adopted the blue ocean strategy, Yeoh says, competition is by no means to be feared. In fact, it is very much ingrained in the group’s DNA.

As it stands now, succession planning is very much in place for the group. The next generation of Yeohs are already learning the ropes from the seniors. In fact, for this interview Yeoh’s son Joshua was present throughout to prep himself up for similar sessions in future. “That is part of the training,’’ says Yeoh.

The circle of family business, it appears, is very much intact. For YTL Group, it is on to being driven by the third generation. But there’s no doubt that till then, Yeoh still has a lot that he wants to do first.


There is so much money floating aorund especially today when overseas funds apparently are streaming in like the Gulf Stream.

So, Francis, when are you jazzing up YTL?

Can We Still Buy Banking Stocks?

The anlaysts are saying that the banking sector will furnish a slate of good H2 results.

So are the banking stocks fairly priced or can we still get in and make some good money?

As to be expected, Malaysian banks turned in solid report cards in the second quarter, pointing to full year that could possibly  see record earnings for the industry as loans continue growing and provisions fall.

Analysts believe earnings, which probably came in at the highest ever for the April-to-June period, will continue to grow on a quarter-to-quarter basis this year.

Earnings will continue to be on an uptrend in the next two quarters on the back of loan expansion, especially on the retail side, and better fee-based income, said banking analyst Wong Chew Hann of Maybank Investment Bank Research.

"It should be another year of record earnings," she remarked.


The bellwether top banker Nazir Razak of CIMB concurred.

"This is most likely to be a record year underpinned by continuing loan expansion and as capital markets continue to be active," he said. CIMB is the second largest lender.

The industry's loan growth has so far had been better than expected, coming in at 12.5 per cent as at end June from a year ago.


Some analysts are now looking to raise their loan growth forecasts for the year. Wong plans to raise hers to around 12 per cent compared to about 10 per cent before.

The industry seems to be in good health in terms of asset quality and banks also appear to have much better control over costs, analysts noted.

The only concern they had for the industry was the recent creeping in of much stiffer competition in the mortgage and hire-purchase loan segments, as well as in customer deposits, which could hurt margins.

Even foreign banks have been in the action, going all out to grab higher market shares in those areas by offering attractive rates and innovative packages.

"That puts pressure on margins but the OPR (overnight policy rate) hikes earlier may help cushion the pressure somewhat," said David Chong, an analyst at RHB Research Institute.

On the whole, banks' second quarter earnings were either in line with analysts' expectations, or slightly better than expected.

Analysts cited top lender Malayan Banking Bhd (Maybank) as having the best results as well as the best dividends of the nine local banking groups.

An analyst from a foreign research house felt that Alliance Financial Group Bhd, the smallest banking group, was the most disappointing in terms of loan and deposit growth.

Banks like Maybank and CIMB saw earnings from their overseas operations, especially Indonesia, come in strongly for the quarter.

TNB: Surprise Mini Bonus Issue

The surprise bonus issue announced by Tenaga Nasional Bhd (TNB) will likely drive short-term interest in the company’s shares given the presently buoyant market conditions, analysts say.

“Empirical evidence suggests that shareholders and investors tend to view bonus issues positively,” an analyst with a foreign research house told StarBizWeek.

“It is a sign that the management is confident in its ability to service a larger equity base or, in other words, in its capacity to generate more profits and give out dividends on all those shares in the future,” she explained.

TNB on Thursday announced a bonus issue of up to 1.12 billion shares on the basis of one for every four existing shares held at an entitlement date to be determined later. In its filing to Bursa Malaysia, TNB also said it planned to increase its authorised share capital to RM10bil comprising 10 billion shares from RM5bil currently to accommodate the bonus issue.

The bonus issue would not fundamentally change analysts’ earnings forecasts for TNB.

Nevertheless, earnings per share and the company’s share price would naturally be diluted by 20% based on the one-for-four bonus issue after the completion date, which is expected to be in the first quarter of 2011.
TNB yesterday closed at RM8.82, up from RM8.75 on Thursday. Of the 28 analysts polled by Bloomberg, 25 had a “buy” call on the stock, while two said “hold”.

The average target price for TNB as of yesterday was pegged at RM9.94.

“We think more retail participation will be encouraged once TNB’s share price gets diluted as a result of the bonus issue,” an analyst from a local bank-backed research house said. “So, it’s one way of boosting liquidity in that sense.”

TNB had earlier explained that the rationale behind its bonus issue was to reward its existing shareholders and enhance its counter’s liquidity.

OSK Research, while did not perceive there to be a real need for TNB to further boost its liquidity, maintained an encouraging view on TNB’s bonus issue.
“In view of the buoyant local market, we believe that the bonus issue will give TNB a shot in the arm,” it wrote in its report, noting the run-up of the share prices of companies that had recently announced bonus issues, such as LPI Capital Bhd and KFC Holdings Bhd.

Affin Research, on the other hand, said it expected TNB’s stock to be re-rated on the back of robust free cash flow, which stood at RM3bil for the nine months to May 2010. It was also positive on the company’s active capital management in terms of reducing debts and stepping up dividend payouts, as well as the impact of a fuel pass-through mechanism on the company in the longer term.

“TNB is a resilient play that is well poised to benefit from stronger economic growth and potential tariff hike,” Hwang-DBS Research noted.

TNB is presently trading at attractive 11 times its forward earnings for 2011 and 1.2 times book value, compared with its 10-year historical averages of 20 times and 1.5 times respectively, as well as against its peers’ averages of 14 times and 1.4 times.

Well, this is good for TNB minority shareholders.

CIMB-Best Quarterly Results Thus Far

CIMB has forecast that 2H results of 2010 will be as good as the first half.

CIMB -the country's second largest banking group,posted a record quarterly net profit in the April-June period and is positive on its prospects for the rest of the year.

Net profit in the second quarter was RM889 million, up 34 per cent from a year ago and 6.1 per cent higher than the first quarter's.

Its first half net profit rose 35 per cent to RM1.7 billion, driven by a strong rebound in corporate and investment banking, stronger contribution from its Indonesian unit and a drop in loan loss provision.

"This is our highest-ever three-month and six-month performance. We are positive on the outlook for the second half as there is a strong capital market deal pipeline and consumer growth momentum," group chief executive Nazir Razak told reporters at a results briefing late yesterday.

Analysts expect it to turn in a net profit of RM3.5 billion for the full year.

The group raised its return on equity target for the full year to 16.5 per cent from 16 per cent before. It kept the loan growth target at 12 per cent. Loans increased 11 per cent last year.

The group called off plans to sell a majority stake in its Southeast Asia Special Asset Management Bhd unit, in which it had lumped about RM8.4 billion worth of legacy bad loans.

It would not be "economically sensible" to divest the stake now under the new Basel II risk-based capital adequacy framework, Nazir said.

"With Basel II, that business is actually a lot more valuable to us from a capital and economic standpoint than we thought before," he remarked.

Nazir said CIMB Group will remain conservative in its capital position as it is still in the midst of migrating to the new framework.

Its Indonesian unit, PT Bank CIMB Niaga, was the largest contributor to the group's earnings. It accounted for 36 per cent of the group's profit before tax of RM2.3 billion for the half-year, compared with 18 per cent a year earlier.

CIMB Thai, which returned to profitability in that period, accounted for 1 per cent of the group's pre-tax profit. The Malaysian consumer bank's contribution to group pre-tax profit was slightly lower at 14 per cent, compared with 15 per cent before.

Corporate and investment banking's profit before tax rose about 73 per cent to RM498 million as regional capital markets in the first half were significantly better than a year earlier.

Well, there are many new price forecast. Many say it may breach RM8.30 if market is amenable. 

Stingy Genting Hits the Profit Jackpot

Genting Bhd posted a whopping 244.6% jump in net profit for its second quarter ended June 30 to RM739.2mil compared with RM214.5mil in the same quarter a year ago.

Revenue stood at RM4.1bil compared with RM2.1bil previously.

Genting said in a statement that the increase came mainly from its leisure and hospitality division following the commencement of Resorts World Sentosa (RWS) in Singapore.

It said the improved revenue from RWS was largely due to better luck in the premium players business, which also contributed to improved profit.

Genting said its casino in Britain benefited from an increase in business volume but the weaker pound sterling translated into lower casino revenue in ringgit terms.

It said revenue and profit from Genting Plantations Bhd was higher in the quarter as a result of better palm product prices and improved fresh fruit bunches production.

However, its power energy division Genting Energy Ltd recorded a lower revenue due to lesser generation of electricity by its Meizhou Wan plant in China.

Genting’s oil and gas division also posted a drop in revenue and profit due to lower share of entitlement in China.

The company said, overall, its better performance in the quarter was due to share of results in jointly controlled entities and associates.

For the six months ended June 30, Genting posted a 124% increase in net profit to RM971.6mil compared with RM427.6mil in the corresponding period a year ago.

Revenue jumped 71.4% to RM7.2bil from RM4.2bil before.

The company said it was cautiously optimistic about its prospects as regional competition continues.

“While business has been resilient, the management will continue to closely monitor the competitive environment and intensify its plans to meet growing competition.”

Genting also said that with the opening of Marina Bay Sands, RWS’s business had showed resilience and its business model had displayed impressive strength.

“RWS continues to be optimistic with its business model for the rest of the year,” it said.

It added that the resort hosted a series of high-profile entertainment events and promotions and would continue to fill the rest of its year-long calendar with activities to encourage fresh and repeat visitations.

It said RWS would continue to improve its attractions, facilities and infrastructure to meet guest expectations. Construction of the West Zone has started and it is expected to commence operations next year.

Genting also said the performance of its power division was expected to be impacted by the Meizhou Wan plant, which was experiencing lower-than-expected tariff increases and reduced generation hours.

The performance of its plantation division remains satisfactory.

Genting has declared a gross interim dividend of 3.3 sen per ordinary share of 10 sen each, less 25% tax, for the first half of 2010. [As usual, no special dividends from this stingy stooge!]

This represents a 10% increase compared with 3 sen per ordinary share of 10 sen each, less 25% tax, in the first half of last year.

Metronic Global: Mangled by Bad Debts

As Metronic plays a sub-contractor role for some government projects,the inability of the main contractor to obtain the payments from these government departments has caused Metronic to have poor operating capital and thus cannot pursue many new projects which it otherwise could. This is reflected by its miserable price of 5-6 sen per share.

Just how much is owed to Metronic?

In a filing to the Bursa today, related party trade receivables is RM46.914 million for sub-contract work
on certain federal public sector projects for the Government of Malaysia.  RM10.594 million are from 1-3 years old debts while RM36.32 million are aged  from 3-5 years old.

In July 2010, the Company did receive a minuscule repayment of RM290,000 in respect of an outstanding related party trade receivables amount owing from the Main Contractor.

As to the step to be taken to recover the monies, Metronic proposes

(a)Actively meet and negotiate with related parties to pursue the outstanding receivables;

(b) Contra the receivables against payables with the same related parties;

(c) Obtained consent from the Main Contractor Related Party to proceed with the certification and collection directly from Ministry of Health (“MOH”), Ministry of Finance (“MOF”) and Jabatan Kerja Raya (“JKR”).  The claim is pending certification by JKR before submitting to MOF for approval;

(d) Negotiated and obtained a Deed of Assignment from the Main Contractor Related Party to pursue the receivables directly from the Government of Malaysia; and

(e) To commence legal action to recover outstanding receivables in the event of failure to recover the full amount.

In relation to the related party receivables due from the Main Contractor Related Party, subject to the finalization of the claim certification by JKR and the subsequent disbursement of payment from the Ministry of Finance, the Company expects the outstanding receivables to be fully recovered through progressive disbursements to be made by the Government of Malaysia not later than 31 December 2011.

With regards to the other outstanding related party receivables other than from the Main Contractor Related Party, the Company expects full recovery within 1 year from August 2010.

I do hope the various certification dapartments are doing their work. What they have not been doing is bleeding Metronic.

So much for Malaysia Incorporated and 1Malaysia.

Postscript:

The latest quarter-on-quarter result ending June 2010 showed major improvements in the accounts of Metronic.

Revenue has increased 77% from RM 2.269 million in 2009 to RM21.724 million in the current year.

From a loss of RM624,00 in the corresponding quarter of 2009, Metronic has turned in a profit  of RM3.427 million.

As for  profit attributable to shareholders, it also display a positive RM 2.532 million compared to  a negative RM497 million accrued in 2009.

Earnings per share has increased from negative 8 sen in 2009 to 40 sen in 2010.

If Metronic can step up its debt collecting ability, things will be rosy once more for this moribund company.

An Optimistic RAM Prediction of GDP 2010

RAM Ratings expects gross domestic product (GDP) to expand 7.4% for the year following the Government’s announcement that GDP grew 8.95 in the second quarter ended June 30, 2010.

The rating agency said in a press release that they agree that the country’s GDP growth will possibly grow at a slower pace of 5.6% in the second-half (H2), which was broadly in line with potential output.

It said H2’s slower pace of growth was due to “moderating external demand, fading low-base effects and easing re-stocking activities”.

Meanwhile, RAM Ratings said resilient domestic demand drove consumption to a 6.5% growth while a 9.4% rebound in investment activities in H1 contributed significantly to the rapid recovery.

According to it, private consumption “is expected to maintain upbeat momentum with a 7.7% growth for the year, slightly higher than the public-sector component, where growth is anticipated to reach 6.4%”.

RAM Ratings said changing trade patterns was holding up external demand.

“Export growth is attributable to sustained (and increasing) demand from newly industrialised economies and China,” it said.

RAM Ratings noted that this trend was expected to continue as Asian economies still power much of the current global growth momentum.

“For the full-year, exports are projected to expand 12.9%, with imports clocking up 18.3% backed by a pick-up in industrial and investment activities,” it said.

RAM Ratings has also maintained the estimated inflation rate of 2.5% for this year as the rate reflected increasing consumer confidence and the rise in food and transport prices following the Government’s subsidy cuts.

Looks like quite a rosy picture,don't you agree?

Decapitating GenM: Was It Systematic?

Yes, they have made mistakes before.

The latest foray into the UK may just be another bad deal given the more difficult gaming environment in Great Britain.

Yes, at the time of writing this blog, the Genting UK  suggested purchase has already been railroaded and approved at the EGM yesterday.

The purpose of this blog is just to find out just how much of the approximately RM6 billion reserve at GenM has been systematically whittled down.

Let us do our sums.

We will begin after the sell-off of a majority of shares in Star Cruises which originally cost the company USD442 million [RM1.42 billion].

The information I got was the coffers of GenM ex-Star Cruise sale of shares was slightly above RM5 billion. [If all the unnecessary purchases have not been executed, GenM would have close to RM6 billion by end of fiscal 2010.]

GenM then bought into 10% of Walker Digital Gaming for US$69 million (RM222 million)

Then last year, they arm-wrestled minority shareholders to acquire Wisma Genting and the Segambut property Oakland for RM284.1 million.

Now this takeover the UK operations using  more than one quarter of the GenM reserves.

And what about the USD50 million MGM notes. The money has to come from the reserves as well, right?

Then there is this gratis payment for the racino project at Queen's NY of USD380 million.

It looks like we have possibly burst all of the reserves given the feverish buy back of its shares recently as Treasury shares.

So, I do not see very much of the reserves of the RM5-6 billion left in GenM.

It has to start from square one, it seems.

What a whipping boy, GenM has turned out to be!

LTKM-A Counter to Watch?

From the answers given at its AGM today, it seems that LTKM  knows what it is doing besides being a low-cost egg farmer.

The highlights to consider will be the following.

The architecture glass factory will commence operations in early 2011. The market is huge for such glass as more green buildings come on stream. LTKM was fortunate to reduce costs on the project because of the weakening Euro in 2009. It shaved capex by 15%. It will take 3 years at least for LTKM to become a meaningful player  in this sector. For now, they are just expecting it to bring in a much needed diversified revenue stream.

The sand operations will possibly give a better performance. LTKM had some issues with the sand quality in Malacca but that is being overcome. Moreover the loss was because the housing industry in Malcca is not as vibrant as that of the Klang Valley.The second factory line will also be up and running soon and so sand supply will be another positive income source for LTKM.

In terms of dividend pay-out, there was some hoo-ha this morning at the AGM since only RM1 million was added to dividend pay-out. Dividend payout was 3% tax at 25% interim and  final at 7% single tiered.

Given the better prospects in 2010/2011, assuming the market is kind,expect LTKM  to perform.

Axiata's Dividend Policy Overture

Yes, Axiata has announced a string of impressive results for both its domestic operations as well as its foreign units.

As such, the company has also informed the shareholders to expect a 30% dividend payout of its earnings.

Alas, there was no pronouncement of any dividend payout at this juncture.

Registered net profit attributable to ordinary equity holders of the Axiata was up by 9.5% at RM576.82 million from RM526.84 million a year ago following improvements in all major operating companies.

Net profit was up 18.1%'' at RM675.51 million versus RM571.91 million a year ago. Revenue was RM3.85 billion compared with RM3.21 billion. Earnings per share was seven sen.

It said strong growth trends were seen across all major operating companies, again in almost all financial metrics. Revenue was up an impressive 20% year-on-year'' to RM3.9 billion from continuous overall performance from most operating companies (OpCos), particularly, Celcom, XL, Dialog'' and Robi.

'More substantially, earnings before interest, tax, depreciation and amortisation (EBITDA) grew by an impressive 38% in the same period to RM1.8 billion, outpacing revenue, partly due to strategic cost initiative programmes implemented early last year,' it said.

Axiata said EBITDA margin improved 6.3 percentage points to 47% on-year. Profit after tax and minority interest was up by 9% on-year to RM577 million.

Regional mobile subscribers for the group saw strong growth up 39% on-year to 138 million.

Axiata also announced its dividend policy where it 'intends to pay dividends of at least 30% of its consolidated profits after taxation attributable to shareholders'.

It added that it would endeavour to progressively increase the payout ratio over a period of time, subject to a number of factors including business prospects, capital requirements and surplus, growth/expansion strategy, considerations for non-recurring items and other factors considered relevant by the board.

So, perhaps some dividends can be expected before year end.

CIMB: Malaysia's Most Valuable Asset

CIMB now has a market value of RM58 billion as at yesterday's closing price, compared with Maybank's RM57.5 billion

That means CIMB Group Holdings Bhd (1023) has overtaken Malayan Banking Bhd (Maybank) to become Malaysia's most valuable listed firm.

CIMB, the country's second biggest lender by assets, now has a market value of RM58 billion as at yesterday's closing price, compared with Maybank's RM57.5 billion, Bloomberg data shows.

CIMB's share price has been rising since last week on expectations that it will register a strong set of financial results for its second quarter. It is due to announce its results tomorrow.

"Banks, including Maybank, have recently posted strong financial results, so expectations are high that CIMB will also come out with a good set of numbers," said an analyst from a local bank-backed brokerage.

He expects the group to post a net profit of RM3.37 billion for the full year compared with RM2.8 billion earlier. Maybank last week posted a record net profit of RM3.82 billion for the year to June 30 2010.

CIMB is certainly looking forward to better times while Maybank may just have to contend itself to playing second fiddle.

KFC-The India Boost

 In an already congested consumer market in Malaysia, KFC will most probably bring in similar revenue sheets annually with the usual unimpressive incremental profit growth.

However, this year, it can be different.

OSK Research has revised upward KFC Holdings (Malaysia) Bhd's earnings for the financial year 2011 by three per cent to RM162.9 million from its earlier estimate of RM158.2 million based on expansion and potential contribution from India.

"We are positive over KFC's prospects on the back of its expansion to the under-penetrated India, coupled with continuous product innovation to drive demand," the firm said in a research note today.

KFC Holdings is targeting to open another 12 outlets in India by year-end to capture a further market share in the fast food business, after having opened its first two new stores in Pune and Mumbai in April and June respectively.

"We think India is the next growth catalyst for the group, given that the Malaysian market is rather saturated and could potentially only accommodate another 200 to 300 new restaurants," it explained.

KFC restaurants on a year-to-year comparison, saw a decent operating profit growth of 14.1 per cent, largely due to new innovative products launches as well as restaurants opened.

In addition, its Singapore operations also saw a quarter-over-quarter increase of 7.4 per cent in operating profit mainly attributed to value products and new products.

Despite the new forecast, the firm said it is maintaining its neutral recommendation for KFC.

Genting Bhd Re-rated to TP RM10.65

Credit Suisse which gave a conservative RM6 to Genting Bhd earlier, has now re-rated it.

Their analyst has forecast  it to move toward RM10.65 as its Singapore operations performed with better than expected good earnings.

Genting's rating has also been given the ticker label from 'underperform' to 'outperform'

Tomorrow, GenM will announce its 2nd Q 2010 earnings. I expect the profits to be maintained despite the potential cannibalistic effect of Resorts World Sentosa.

The New Miss Universe

Yes, we have a new Miss Universe. She is Jimena Navarette from Mexico.

Take my word for it. She is absolutely charming

Pornthip- Sincerity Beyond Reproach

Well, if you think she had a bruising session in the Malaysian court giving evidence in the Teoh Beng Hock Inquest, you may have to re-look at your perspective.

From her rebuttal questioning her accreditation and experience, she stood her high moral ground against the relentless low grade provocation of the MACC. She had her day in court.

Conducted in October 2009, the survey found Dr. Pornthip Rojanasunan to be the most trusted individual in all of Thailand while Doctors were the most trusted group.

Most Trusted Individuals: This survey found that out of 80 individuals Thailand's renowned forensic pathologist and director of the Forensic Science Institute, Dr. Pornthip Rojanasunan was ranked as the most trusted individual of the year. She was followed by Phra Ajarn Alongkot Dikkapanyo, the head monk at the famous Buddhist AIDS temple, Wat Phra Baht Nam Phu, Dr. Sumet Tantivechakul, secretary general of the Chaipattana Foundation, Phra Promkunaporn (Prayut Payutto) acclaimed spiritual leader and winner of an UNESCO Prize for Peace Education, and Phanya Nirunkul media tycoon who was the fifth most trusted individual.

The rest of the top ten were film director Prince Chatrichalerm Yukol (6), leading banker Banthoon Lamsam (7), social workers Nuannoi Timkul (8) and Suthasinee Noiin (9), and renowned marine environmentalist Dr. Torn Thamrongnawasawat (10).

People trust those who do good deeds for society: The majority of this survey's top 10 most trusted individuals were people who worked in non-profit organizations and dedicated themselves to helping others. Some of the respondents pointed out that, Dr Pornthip Rojanasunan has worked “dedicatedly and fearlessly to bring justice to our society”.

Other individuals within the top ranks were also highly rated in terms of their dedication to the greater good. For instance, Phra Ajarn Alongkot Dikkapanyo's work of helping those who suffer from AIDS is selfless and admirable, while Dr Sumet has been admired for his service to the King and his commitment to accelerate awareness of His Majesty the King's philosophy of sufficiency economy among general public.

When it comes to trust, politicians are the lowest: According to the survey, politics was seen as the least trusted occupation, followed by Psychic or Astrologer and Insurance Agent. The survey also found that Thai respondents trusted security guards more than they trusted law enforcers. In the most trusted profession ranking, security guards were rated one spot higher than police officers.

So, for politicians and those in the police force,what have you to say?

The Rise and Rise of CIMB

Yes, it is the number two commercial bank in Malaysia in terms of ranking but the gap is getting closer and closer. Watch out, Maybank!

CIMB's share prices spurted up spiritedly yesterday to clinch a gain of 22 sen. This is brought about apparently  by bullish buying on the back of their just reported earnings in its  Indonesian operations.

PT Bank CIMB Niaga Tbk, the Indonesian subsidiary of CIMB Group Holdings Bhd has posted a first-half ended June 30, 2010 with a whopping net profit 1.12 trillion rupiah which is 62% higher than the same period a year ago with net interest income improving 16% and net non-interest income by  7%.

Compared to the first quarter, the bank posted a second quarter net profit that was 15% higher at 605 billion rupiah.

Total loans for the first half grew 26% to 91.76 trillion rupiah driven by investment loans in corporate banking and auto loans in retail banking while total deposits grew by 29% to 106.18 trillion rupiah.

Gross non-performing loans ratio for the bank improved to 2.67% while impairment ratio for the second quarter decreased to 4.3% from the first quarter.

The loan loss coverage ratio increased to 140% in the first quarter compared to a quarter ago with impaired loan loss coverage increasing 293 basis points to 76.5%.

A Bloomberg report also pointed out that parent CIMB Group will target a listing  on the Indonesia Stock Exchange towards year-end or early 2011.

On Aug 4, Indonesia Stock Exchange president director Ito Warsito said the stock exchange might approve the bank’s dual-listing proposal, which could come about after Jakarta makes changes to regulations in the fourth quarter to allow foreign-listed companies to list their shares.

CIMB Group chief executive officer Datuk Seri Nazir Razak had told reporters in early May that the bank had informed the Indonesian authorities of its interest in a dual-listing.

So, there are a lot of news making out there for the bank to create bullish excitement.

Is it too late to take a berth on this counter at the current price of RM7.90?

GenM: Is It Biting More than It Can Chew?

Is  Genting Malaysia Bhd re-branding itself? It looks like it.

Buffeted initially by the frustrating failure in the Star Cruise investment, it got thwarted yet again when it was shut out of the Resort World Singapore deal.

Now, tomorrow at its EGM, GenM will likely buy over Genting UK.

Sure, profits were decent the last few years and it has accumulated a cash pile of some RM5bil for sometime. This cash reserve was not doing anything as the reluctant Genting M Board did not want to reward its minority shareholders by giving out special diviedend or dividend -in-specie.

In early July, news were floating around that that Genting Malaysia may buy over Genting UK from Genting Singapore (GenS).

In knee-jerk fashion, analysts and shareholders kicked up a fuss, with what was seen as a clear-cut related party transaction.This was after the first and second transactions of a similar nature namely the Walker deal and the purchase of Wisma Genting and Oakland Investments from the parent company.

GenM announced that it was proposing to acquire GenS’s UK casino operations for £340mil (about RM1.67bil). GenS first bought Genting UK in 2006 at £626.91mil (RM3.13bil)

The UK casino operations comprise four companies – Nedby Ltd, Palomino Star Ltd, Palomino World Ltd and Genting International Enterprises (Singapore) Pte Ltd – collectively known as Genting UK.

Gambling in the UK is regulated by the Gambling Commission on behalf of the government’s Department for Culture, Media and Sport under the Gambling Act 2005.

There have been significant updates to UK’s gambling laws, including increasing tax on poker profits from 15% to as high as 50% depending on profitability. There have also been increased rates on all categories of amusement machine licence duty.

These measures are likely to continue to dampen the gaming enviroment in the UK and some analysts are pessimistic because of the challenging operating environment.

There are concerns that Genting Malaysia could be buying Genting UK at a time when the economy is not only weak, but faces a double whammy of the casino industry facing tough legislation.

All eyes and ears will be on Genting Malaysia’s EGM tomorrow to approve the acquisition of  Genting UK from GenS. GenM’s second quarter results to June 30, will be also released on Aug 26. That it will take-over GenUK is a  fait accompli,to say the least.

Genting Malaysia has been doing its legwork. They have been on a roadshow in the last few weeks to meet up with its shareholders and to explain the rationale and potentential of buying into the UK casino operations.

Last week at Genting Singapore’s EGM, the resolution in respect of the sale of UK casino assets to Genting Malaysia passed by shareholders.

It is however interesting to note that over the last two days, Genting Malaysia has bought back a total of 11.2 million shares at an average price of RM3.03. This brings its cumulative treasury shares held at 3.71%.

The group has announced its intention to purchase up to a further 376 million shares (representing 6.4% of share cap) within the next 10 months.

Meanwhile last week, Genting Malaysia Bhd obtained all the necessary approvals and signed the agreement to develop the Aqueduct New York racino.

Genting New York (GenNY) is expected to invest US$1.3bil which consist of US$380mil (RM1.22bil) of licencing fee, US$350mil (RM1.12bil) initial capital expenditure (4,500 video lottery terminals), and US$650mil (RM2.08 bil) to build three hotels of differing standards, shopping, recreation, spa and other resort facilities.

Dubbed Resorts World New York, the proposed three-storey facility will also contain several restaurants, water features, an outdoor terrace connected to the Aqueduct racetrack which will be able to accommodate up to 10,000 people and a 2,200-bay car park.

GenNY aims to complete the entire development within 12 months from the date it obtains formal approval from the state to proceed.

As part of a wider development plan, GenNY is also proposing to build three hotels of differing standards, shopping, recreation, spa and other resort facilities at a total cost of US$650mil (RM2.09bil). That will take the proposed outlay for the entire project to over US$1.3bil.

“If we assume daily win per terminal of US$300 (similar to the more successful Yonkers racino closer to New York city centre), Resorts World New York may contribute RM595mil and RM196mil to Genting Malaysia’s revenue and profit after tax respectively by 2013,” said an analyst from HwangDBS Research.

UOBKayHian reckons that the project is neutral to Genting Malaysia’s revised net asset value but is slightly earnings-accretive over the long term, assuming that the Aqueduct would be eventually given a license to operate table games.

The research house estimates the slot facility could provide a payback period of 5.5 years (on full expansion), while the payback period for the rest of the facilities could be significantly longer.

“Conservatively, Aqueduct could pull in revenue and operating profit of US$468mil and US$84mil respectively when it is fully expanded.

“This accounts for about 14% of Genting Malaysia’s forecasted 2012 operating profit,” said the research house.

The recent spotlight on the entire Genting group has been brought about by GenS's sterling results and the re-rating of casino sector in Singapore. GenS is 52% owned by Genting Bhd.

GenS’s second-quarter results took the investing community by surprise, when it beat analysts and consensus estimates.

For the second quarter ended June 30, GenS posted a net profit of S$396.5mil (RM925.9mil) compared with a net loss of S$50.7mil a year earlier.

Revenue soared to S$979.3mil from S$120.1mil previously. This translated to a profit margin of about 40%.

THe NY Racino is In the Bag!

It is confirmed.

Following a unanimous recommendation from the New York Lottery earlier this month, Governor David A Paterson, senate conference leader John Sampson and assembly speaker Sheldon Silver have all granted their approval to award Genting Malaysia Berhad's wholly-owned subsidiary, Genting New York, the right to develop and operate a video lottery facility at Aqueduct Racetrack.

So, let us see whether Genting can bring in cash into the coffers of Genting M that has been deftly depleted by the marauding Board.

RCE's Better Dividend Fiscal 2009

Yes, after an initial payment of RM10.00 dividend per 1000 shares last year, RCE Bhd has rewarded minority shareholders with a more than 100% increase in its dividend. The dividends to be paid are 9% tax deductible at 25% and an additional  single-tier tax exempt 8.5%.  This works out to RM15.25. The quantum will have to be approved at the AGM on 8 September 2010.

Right now there is bullish buying as some fund managers have suggested that its next target price should be beyond RM1.00. That is some way to go and so do not expect a straight as an arrow movement of RCE's price.

RCE has always been a defensive stock because its main credit business is underpinned by consumer credit to civil servants. Deduction is made at source and so default is not an issue.

RCE also buys doubtful debts from commercial banks and have a good performance in its recovery.

This is a penny stock counter to watch.

Singapore:Talent Destination

We have sadly the Malaysia Boleh phobia in this country. We pride ourselves as been the best and the 'mostest'. Yet, inside in all of us, we know we are just fooling around and we have shot our foot with all those policies that drive away our nation's best.

The little nation to the south of Johore has benefitted. New Zealand and Australia has too.

Even our policy and strategy thus far just to lure back our own talented Malaysians to come home to work for the nation has not seen success.

I wonder whether this new Talent Corporation will be another white elephant.

So a Gallup survey that tells us that Singapore continues to be far more successful than Malaysia at attracting human capital on popular immigration destinations which the island republic topped and Malaysia missing the top 20 cut comes as no surprise.

The city-state, with an impressive 18.1 per cent GDP growth in the first half of the year, would have tripled its population if everyone eyeing Singapore were allowed in, the poll released last Friday showed.

In that scenario the nation of 4.8 million would have spiked up to 15 million, a whopping 219 per cent increase.

On the other hand, Malaysia, with its relatively lacklustre economy and increasingly divided society, ended up only in the top 25 most popular destinations for migrants.

The poll found that if everyone were allowed to leave and enter as they pleased, Malaysia’s population would increase by 23 per cent to over 34 million, making it the 21st most popular immigration hotspot in the world.

Gallup researchers interviewed nearly 350,000 adults in 148 countries between 2007 and this year to calculate each country’s Potential Net Migration Index (PNMI).

The PNMI is the estimated number of adults who wish to permanently leave a country subtracted from the estimated number who wish to immigrate there, as a proportion of the total adult population.

Malaysia was the fourth most popular Asia-Pacific destination after Singapore, New Zealand and Australia, and the second-most popular in Southeast Asia following Singapore.

Other Southeast Asian countries fared comparatively worse. While Thailand would see a minimal drop of 1 per cent in its population, Indonesia would lose up to 5 per cent of its 230 million population if everyone who wanted to come in or leave could do so. This was followed by Laos (-9 per cent), Vietnam (-21 per cent), Philippines (-22 per cent).

And despite making great strides in economic growth, Asian giants China and India would both lose 6 per cent of their over 1 billion population if people were allowed to move freely.

Overall, the second-most popular destination was New Zealand, whose population of 4 million would rise by 184 per cent. Third was Saudi Arabia, whose population of 26 million would soar by 176 per cent.

Canada placed fourth with 160 per cent, Australia came in sixth with an index figure of 148 per cent, while the UK booked 12th place with 62 per cent.

The preferred destination of most would-be migrants is still the United States, although the already large US population of 300 million inhabitants means that the impact is less acutely felt, Gallup said.

The US is 14th on the net migration list, which means that if everyone who wanted to could enter the country, and all those who wished to leave did, its population would rise by about 60 per cent.

At the opposite end of the scale, the populations of Sierra Leone, Haiti and Zimbabwe would fall by more than half if migrants were allowed to leave at will.

Many countries in Africa and Latin America showed net outflows of population — although four African countries would gain residents, according to the poll.

They are Botswana, which would see its population increase by 39 per cent, South Africa, Zambia and Namibia, which would see rises of 13 per cent, 5 per cent and 2 per cent respectively.

Botswana, which ranks just after the US but above Norway on the list, is the world’s top producer of diamonds and a leading destination for high-end tourism. It prides itself as a model of successful democracy in Africa.

At rock-bottom on the Gallup list is Sierra Leone, the west African country still struggling to recover from a 10-year civil war which ended in 2002.

If everyone who wanted to leave Sierra Leone could, and everyone who wanted to move there did, its population would plunge by 56 per cent.

Haiti, the Americas’ poorest country, would lose 51 per cent of its population.

“While Gallup’s findings reflect people’s wishes rather than their intentions, the implications of what could happen if these desires become reality are serious considerations for leaders as they plan for the future,” said the organisation.

The lowest-ranked European Union member state on the list is Latvia, which would lose around a quarter of its population of 2.3 million if migrants were allowed to come in and go out as they wished.

To Excel in UPSR Exam: Section C of Paper 2

In Paper 2, Section C, you would see three pictures and have to expand from the notes to write a short essay. My advice here is to:

Use words that you need only when  the instruction reads,” You may use the words to help you”.

Take note of these:

1.                  Sentence Type

·         Write more than 2 sentences per paragraph. I would recommend three or four sentences for each paragraph.

·         Try to write a variety of sentences. For example :

Ø  A simple sentence (has only one idea)

Anand’s family gathered outside the house.

Ø  A compound sentence ( two ideas and uses connectors)

Anand’s family gathered outside the house and welcomed guests coming to their open house celebration.

Ø  A complex sentence ( a independent clause and a dependent clause)

Anand is an engineer who has just bought a house in Setia Wang.

2.                  Paragraphs.

Ø  Write three paragraphs.

Ø  Start each paragraph by beginning at least ¾ each from the margin.

Ø  Use the correct conjunctions or connectors to join the story in the three paragraphs. This will ensure smooth continuity.

3.                  Tenses

§  If you are telling about something that has already taken place, use the past tense.

§  If you are describing something happening at the time you are speaking or regularly use the present tense.

 

4.                  Subject- Verb Agreement

§  Make sure singular subjects attract singular verbs while plural subjects attract plural verbs.

For example:

ü  The dogs are fighting in the backyard.

ü  A cat is sleeping on the roof of the house.

ü  He does him howework every evening before dinner.

ü  The cows here eat the leaves from the low bushes beside grass.

5.                  Pronouns

§  Know how to use- he,him,his

§  Know how to use possessive pronouns and emphatic pronouns

ü  Possessive pronouns-mine, yours, theirs, ours,..

ü  Emphatic pronouns- myself, yourself, ourselves,..

6.                  Articles

Ø  Make sure articles such as a,an,the,__ are appropriate and correctly used before nouns.

7.                  Gender

§  Ensure you know your gender [ man versus woman]

8.                  Spelling

Ø  Check your spelling

Ø  Use words that you are sure of its spelling

9.                  Punctuation

Ø  Ensure you start a sentence with a capital letter. Also all proper nouns are in capital letters.

o   These are names of people, places, building names, rivers, oceans,etc]

Ø  All sentences must end with a full-stop, question mark or exclamation mark.

 

Model Answer:

Peggie bought some art supplies from a stationery shop near her house. She quickly went up to her room and quietly closed the door. Putting the things on her bedroom table, she relaxed a while before she began work to design a birthday card for her sister, Meggie.

With a pair of scissors, she deftly cut a red manila cardboard to carve out a birthday card. She folded the card into two and then she began to stick small dried  yellow flowers to the front of the card with glue. She also sprinkled glitter onto the glue beside the flowers. Peggie waited patiently for the glue to dry. After that, she penned a personal message for her beloved sister.

Looking about to ensure no one was looking, Peggie crept into Meggie’s room. She looked for a suitable place where Meggie would easily find the card. She then went to Meggie’s bed and put the card under her pillow. With a happy grin on her face, she left Meggie’s room with joy in her heart.

These are useful connectors.

Types	Connectors
Show  addition	and,both…and,as well as,along with,not only…but also,in addition to
Show contrast	but,however,yet,still, in spite of,despite,although
Show choice	or,or else,either…or,neither nor
Show reason	because,as,for, since
Show purpose	so that, so, so as to,in order to, in order that
Express time	as,when,while,as soon as,before,after,since,till,until
Show place	where
Show condition	if,unless
Show result	therefore,thus,so,so…that,such…that