No Double-Dip!

Some of the biggest names in business said that they see a bright future for the US economy, with famed investor Warren Buffett declaring the country and world will not fall back into the grips of the recession.

"I am a huge bull on this country. We are not going to have a double-dip recession at all," said Buffett, chairman of Berkshire Hathaway Inc. "I see our businesses coming back across the board."

Buffett said the same things that worked for the country through a century of two world wars, a depression and more — all while increasing the standard of living — will work again. 

He said banks are lending money again, businesses are hiring employees and he expects the economy to come back stronger than ever.

"This country works," Buffett said and added ,"The best is yet to come."

His opinion was shared by Microsoft Corp, CEO Steve Ballmer and General Electric Co,Jeff Immelt .

Ballmer said there soon will be more technological advancement and invention than there was during the Internet era. "That will help drive business growth", he said.

"I am very enthusiastic what the future holds for our industry and what our industry will mean for growth in other industries," said Ballmer.

He envisions new technologies that move beyond the Internet to tie together computers, phones, televisions and data centers to create amazing new products. And the pace of innovation will increase as technology makes workers more productive.

"All areas of science today are moving forward more quickly," Ballmer said. "The speed of scientific breakthrough is accelerating." He said business at GE, one of the world's largest companies, is improving.

Immelt said the country is going to need to adjust, though. The economy since the 1970s has been driven by consumer credit and a misguided notion in building a "lazy" service economy, he said, and manufacturing, with an aim to reduce the trade deficit, is the key.

"It was just wrong. It was stupid. It was insane," Immelt said of the push for a service -based economy. "The future of the economy has to be as an exporter."

He said GE is now finding it profitable to build manufacturing and service centers in the United States rather than overseas, because it is more competitive to do so.

More investment is needed in technology innovation, exports need to be rejuvenated, and clean energy and affordable health care need to be given top billing for policymakers, Immelt said.

But the corporate leader said he recognizes a polarizing environment in Washington makes it unlikely a national energy policy and other helpful guidance will ever take hold. Instead, he urged local business leaders and government officials in the audience to come up with their own local solutions.

"Anger is not a strategy. Anger does not create growth. Only optimism creates growth," he said. "Be the contrarian. Everyone is mad today. Be happy."

BLand Goes East To Japan

Berjaya Land (BLand) through the purchase of a 100% equity share in Berjaya Kyoto Development (S) Pte Ltd (BKyoto) from Madam Teow Gek Keo for a cash consideration of SGD1.00 or approximately RM2.33 (“Acquisition”)has set its sights to invest in Japan.

BKyoto, a private limited company, was incorporated in Singapore under the Companies Act on  25 May 2010 with an issued and paid-up share capital of SGD1.00 comprising one (1) ordinary share of SGD 1.00 each. The principal activity of BKyoto is investment holding whilst its 100%-owned subsidiary, namely Berjaya Kyoto Development Company Limited (“BKDJ”), incorporated in Japan, is intended to be principally involved in real estate development activities. BKDJ has an issued and paid up share capital of JPY1.50 million (or about RM55,890) comprising 30 ordinary shares of JPY50,000 each. B-Kyoto will be B-Land’s investment arm in Japan.

This Acquisition has no effect on the issued and paid-up share capital of BLand as well as the major shareholders’ shareholdings in B-Land. It also has no material effect on the consolidated earnings and net assets of B-Land Group for the current financial year ending 30 April 2011.

None of the Directors, major shareholders and persons connected with a Director or major shareholder of B-Land has any interest, directly or indirectly, in the Acquisition.

Apparently BLand's Board of Directors are of the opinion that this acquisition is in the best interest of B-Land Group.I do hope they are right.

It looks like BLand must have some projects brewing in Japan to suddenly want to take interest in this company.

BJRetail-Bold Plans

Newly listed Berjaya Retail Bhd (BJR), the listing vehicle for Singer (Malaysia) Sdn Bhd and 7-Eleven Malaysia Sdn Bhd, is gearing up for the expansion of both companies in 2010.

For the second half of 2010, Singer Malaysia plans to open another 10 to 20 new stores, adding to the more than 400 stores nationwide currently.

Each store could cost an average of RM150,000 to RM200,000, depending on its size.

As for 7-Eleven Malaysia, it expects to open more than 100 new stores by end year-end, with 40 to 50 per cent to be located in the Klang Valley.

"The capital expenditure is about RM250,00 per store. The initial fee for franchise will be RM100,000 with the remainder for the shop. For franchised stores, we will get about RM25 million," so said a spokesperson.

Currently, 7-Eleven has 1,157 stores with 58 franchisees.

Currently both companies do not see any early prospect of a synergistic link up as they have different businesses and customers.

"We are two separate entities and customers are not exactly the same (but) given the fact that 7-Eleven can do a lot of things like accepting payments, so there is a possibility," he said.

"In other words, we can help to collect bills for Singer if our system allows us but currently we cannot do it. We need to invest in the system," he added.

BJR has been performing extremely badly on the Bursa since its IPO listing.

Vincent, what a shame!

Resorts World New York Start-Up

All hurdles have been overcome by Genting Berhad to create a presence in the USA.

All approvals are now in the bag.

The process started with New York State Division of Lottery (“New York Lottery”) giving its thumbs-up for the Genting bid to the Governor of New York  to be selected as the developer and operator of a video lottery facility at the Aqueduct Racetrack in New York. The buck went up further to obtain approvals from New York State leaders and offices of the New York State Attorney General and Comptroller.

On 13 September 2010, the Office of the New York State Comptroller formally announced its approval for Genting New York to  develop and operate the video lottery facility. The final approval required is now in the bag.

So, what's next?

Upon delivery of the approved Memorandum of Understanding by the State of New York to Genting New York, Genting New York will make a payment of US$380 million as the upfront licencing fee to the State of New York within ten (10) business days. The licence is for a duration of 30 years and the construction of the Project (to be known as Resorts World New York) will commence as soon as practicable, with the opening of the preliminary phase expected by Spring 2011.

Let us read a write up of the Genting achievement titled,"At long last, a winner at Aqueduct".

" After nearly a decade of botched races, NY state comptroller makes it official, gives nod to Genting for racino expected to generate $1.5M a day; $380M check in the mail.

 It's official— Genting New York has crossed the finish line and will bring video slot machines to the rundown Aqueduct Racetrack.

As expected, New York state Comptroller Thomas DiNapoli announced Monday that he has signed off on the lucrative contract with Genting New York, part of giant Kuala Lumpur-based casino operator Genting Malaysia Berhad, for a video lottery facility at Aqueduct. Mr. DiNapoli was the last state official needed to approve the contact, which is effective immediately.

“After nearly a decade of false starts and broken promises, the VLT contract is done,” Mr. DiNapoli said in a press statement. “This is one of the most important vendor contracts New York has ever signed. The contract involves hundreds of millions of dollars. It's a 30-year license that carries the future of New York's racing industry on its back.”

Genting now needs to deliver its check for $380 million, the promised upfront licensing fee, to the state. Assuming all goes as planned, 1,600 video slot machines will be open by this spring. Genting expects to generate $1.5 million per day in revenue for the state once it has all 4,500 video slot machines in place in about a year.

“Genting Malaysia Berhad is honored to have earned final approval to begin building a new facility at Aqueduct," said K.T. Lim, chairman of Genting Malaysia Berhad, in a press statement. "We are eager to immediately begin investing, creating jobs, sparking economic activity and bringing New York a one-of-a-kind iconic, entertainment destination.”

The final sign-off comes a week after reports came out that Mr. DiNapoli was concerned over the selection of Genting. Mr. DiNapoli's office confirmed that it had more questions for New York Lottery regarding Genting but declined to elaborate.

“My office did this right and we did it expeditiously without sacrificing thoroughness. We took every step to ensure the taxpayers are safeguarded in this contract,” said Mr. DiNapoli. “It's New Yorkers' money; it's my job to protect it.”

This latest, and now officially the final round of bidding to build and operate a racino in Ozone Park, Queens, has been deemed more transparent and faster than the four previous rounds.

In addition to slots, Genting intends to open a 200-seat high-end Chinese restaurant, a sports bar with a 280-seat lounge, other buffet-style restaurants, and even a water show. The company said it expects to complete the restaurants, food court and 2,200-space parking garage within one year of its contract start."

So, what can one say except to wish all the best to Genting Berhad and Genting M.