Malaysia: Improved Industrial Production

Malaysian industrial production rose 12.7 pct in January from a year earlier, its fastest growth pace since March 2004 and beating market expectations for a 11.3 pct rise.

The Statistics Department's data today showed that industrial production, a measure of manufacturing, mining and electricity output, was up 2.9 pct from a month ago. The number is not seasonally adjusted.

The annual growth in December was revised to 7.5 pct from 8.9 pct announced in January.

Japan: Lower 4thQ,2009 But Still Ok

Japanese gross domestic product (GDP) grew a revised 0.9 pct in October-December from the previous quarter, against economists’ median forecast for a 1.0 pct expansion.

The downward revision from a preliminary rise of 1.1 pct was due to capital expenditure rising less than initially reported and private inventories subtracted from growth.

The revised GDP deflator stood at a record low of minus 2.8 pct in the fourth quarter compared with the same period a year earlier. That compares with a preliminary reading of minus 3.0 pct.

The revised GDP figure translates into annualised growth of 3.8 pct in real, price-adjusted terms, against an initial reading of a 4.6 pct annualised increase.

We do hope the second largest global economy will gain traction and move forward more vibrantly in 2010.

Free Hospital Board for Civil Servants and Pensioners

Why is it that it  takes a sitting PM to do this obvious thing?

No wonder the politicians have no trust in the so-called 'quality' civil service in Malaysia for so many years. They could not even take care of their basic health care benefits.

In Kuala Lumpur and other big Malaysian cities,civil servants lined up as second to politicians in government health facilities. As for the top civil servants, they get the best,so why bother about the rest. Such selfishness have pervaded the civil service for some 40 years. If's either a 'devil may care attitude' since these top civil servants often got their way  'pushing their weight around' because of their top positions or they were fearful of raising it,hopefully to be seen as immensely patriotic to the government of the day.What silliness!

Then what about CUEPACS? Wasn't this ever brought up?It may just  be a trifling a RM4 a day thing but it can amount a lot to the lower rungs of the civil service. Again, these so called champions of the ordinary civil servants have been found to be wanting. They  must have been molly-coddling with the creme de' la creme of the civil service and the politicians of the day. Shame to them as well.

I thank PM Najib for his caring initiative in this area. Charity begins at home.

So, when are special scholarship categories going to be considered for the children of civil servants?

In these times, there is little that can be gotten from pensions. It will be welcomed by all pensioners.

The following is the news item from the SUN.

Hospital ward fees for govt officers, pensioners abolished

KUALA LUMPUR (March 10, 2010): The government will abolish ward charges for public service officers and pensioners in government hospitals effective April 1. Director-General of the Public Service Department (PSD) Tan Sri Ismail Adam said via a PSD circular the abolishment was also applicable to the family and parents.

"The abolishment does not affect the eligibility for ward as set for officers based on their grade," he said in a statement here today.

He said the eligibility for high ranking officers Grade 45-54 was First Class (single room); Grade 31-44 (First Class twin-sharing); Grade 21-30 (three to a room) and Grade 1-20 (Second class).

The eligibility for family and parents is based on the eligibility set for the officer concerned, he said.

Ward eligibility for pensioners and family members is based on the last grade of officers before they retire.

Ismail said if public servants, pensioners, family members or parents request to be admitted to higher class wards from their eligibility, civil servants or pensioners need to pay the ward charges as per members of the public.

"Officers and pensioners are also to place a deposit before admission to a higher class ward according to the rate set," he said.

He said with the enforcement of the circular, the C2 clause related to eligibility and payment rate in appendix C8 of Service Circular No. 4, 2002; clause 11 related to daily ward charges in Appendix 0 Service Circular 10 1991; and Division J related to spending application for treatment abroad in Appendix B of Service Circular Clause 21 2009 were canceled.
Ismail said the circular issued also applied to state public services, statutory bodies and local authorities. -- Bernama

MRCB: Why is EPF Gobbling it up?

 The blogger, Value Investing in KLSE has his take on the above topic.

Not all the reasons he gave are based on actual rock solid facts. They are mere speculation and the product from an over-active mind.

These are its possible reasons cited.

"(a) It is a way for the connected shareholders to cash out so they can use the proceeds to invest in foreign markets which give higher return compared to MRCB. No one will buy up MRCB except for EPF who is remotely controlled by someone.

(b) It is a way for the government to share the country growth with EPF contributors “you and I”. MRCB has high chance to secure government lands in KL. It also means higher dividend yield in the future since EPF is investing more of its fund in equity now rather than bond.

(c) If EPF has successfully acquired MRCB, MRCB can raise funds from EPF, to fund the land price and development of government lands in KL for 10 years. Construction contracts will then be given to connected parties. Government can also use the proceeds from the sale of government lands to pay its debt. And there are various loop holes in construction and development to suck the cash out

(d) Malaysia is running on deficit already and it would be too obvious and unpopular to announce huge development to be funded by government. Hence, using EPF to fund development is the best “not so obvious” way. Whether EPF will benefit from it will remain unknown. But what is certain is that “reaping the money today is less risky than trying to get back the money 5 years later”. Shareholders of MRCB and connected parties understand this principle very clearly.

I don’t know the actual answer but looking at the direction which EPF is heading, I better take out my EPF as soon as possible now."

Well, whatever it was worth, make your decision if you are still holding MRCB shares.

A Gastronomic Delight

It sure was satisfying watching 'Julie and Julia'. Well acted, well paced and well crafted. Never a dull moment and such witty dialogue.

Set in an intervening time period when Julia Childs was in her 40s and the 30th Birthday of Julie Powell, this movie, traces Julia Childs entry into French cooking and the beginning of a blog where Julie challenges herself to complete all the recipes in Julia's book, "Masterpiece of French Cooking" within 365 days.

The story ended well for both protagonists as they got the books printed.

This is one 'cool cat' of a movie. If the field had not be overcrowded at the oscars this year , Stanley Tucci could have won his Academy Award for Best Supporting Actor.

As usual, Meryl Streep was in her element!

MRCB: Going for the Jugular?

The Employees Provident Fund (EPF) has acquired another 24.8 million shares in Malaysian Resources Corp Bhd (MRCB) since last Friday.

In a filing with Bursa Malaysia yesterday, MRCB informed that it bought these shares at  an average of  RM1.479 each.

Last week, the EPF extended a conditional general offer (GO) for the 66.2% of MRCB that it does not own after it triggered the GO following its subscription of 171.47 million MRCB rights shares late last year.

We know the error that triggered the mandatory general offer. They should have been more careful when subscribing for excess shares. Their foolhardiness caused the imbroglio.

So, now that they have fumbled big time, why are they buying more MRCB shares? Moreover they did inform the public that MRCB will not be their flagship for property development.

However, if you look at the counters where they controlled directly such as RHB and MBSB, it looks like the MRCB purchase fits right into this strategic  troika of inter-connected shares that would form the core of the property and property finance holdings of the EPF.


There is also a very strong chance that they will sell the excess MRCB shares after it has accumulated good premium values which obviously it can.

I guess in a way it will help bolster the earnings of EPF in 2010 and onwards.

Wondrous Satellite Shots

Well, it is not often that we get such magnificent shots of some of the wonders of the world or happenings.

Here we have some great shots. The ones to watch for will be the tsunami onslaught on a beachfront in Sri Lanka and Ground Zero of the 9/11 attack on the World Trade Centre.

The others are the Grand Canyon, Ayer's Rock in Australia, the Niagara Falls and the Pyramids at Giza.
Enjoy!