The Submarine Which Won't Dive again.........

 

This is really bad, don't you think so?

The first Malaysian submarine apparently cannot dive once more and is at the moment docked somewhere in a naval base in Sabah.

 

The Royal Malaysian Navy procured the two submarines for RM3.4 billion in 2002 from French/Spanish shipbuilders, DCNS and Navantia.

Genting: Another Racino Bid Write-up

In a stunning move, the State Lottery has disqualified two of the three bidders for the ill-fated Aqueduct “racino” project.

SL Green and Penn National Gaming were rejected only seven days after submitting their applications in the latest round of bidding for the long-delayed project.

That leaves just Genting New York in the running.

Genting “appears to conform with all requirements of the bid submission process and will continue to be evaluated,” the Lottery said in a statement.

If Genting ultimately is not approved for the Aqueduct project, the bidding process will have to start again. A recommendation from Lottery is due to Gov. Paterson and legislative leaders by Aug. 3.

Lottery officials said Penn National and SL Green, which was partnering with Hard Rock International and Clairvest Group, did not conform with the set criteria. Both failed to submit signed copies of the mandatory bid requirements.

Instead, the two bidders offered “altered versions” containing numerous changes they wanted.

Once believed to be a front-runner, SL Green, for example, wanted their minimum $300 million upfront fee to be held in escrow until their conditions were met by the state.

The group also wanted the right to make ownership changes without the state’s consent, a cap

on any increase in local property taxes at 3%, and a complete exemption of state and local

sales taxes for the construction of the racino.

Penn National, meanwhile, wanted to be able to terminate its Aqueduct video lottery license

any time it decides the casino has not been profitable for four straight quarters.
The group also wanted a guarantee that no other gaming facility would open within 50 miles

of Aqeuduct, despite those who are eying Belmont in the future.

Most of the changes sought by both groups were raised with Lottery before the bids were due.

“It was made clear that non-conforming bids would be disqualified,” Lottery said.

It would do us good to look at the issues raised by the other two bidders. Caveat emptor!

From what transpired recently where GenM was made into the 'monkey and donkey' to take over red ink of Genting UK from Genting S, be very careful of this rogue parent company, minority shareholders!

They are capable of cannibalism!

The New York Racino: Surviving the Competition

I am really neutral on this.

The latest Bloomberg  report tells us that Genting Malaysia Bhd, is the only surviving bidder for an electronic slot-machine parlor at New York City’s Aqueduct Racetrack after two US-based firms were disqualified, the New York Lottery announced.

One excluded proposal was submitted by a group led by SL Green Realty Corp, Manhattan’s biggest office landlord, in a bid with partners Hard Rock International and Toronto-based Clairvest Group. The other was from Wyomissing, Pennsylvania-based Penn National Gaming Inc, which operates 19 casinos and racetracks.

“The proposals did not conform with the requirements of the competition and, instead, attempted to negotiate for terms more favorable to the bidders,” Lottery Director Gordon Medenica said in a statement. Neither New York-based SL Green nor Penn National will be eligible for reconsideration even if Genting isn’t approved, he said.

The project, called a racino, would include more than 4,000 video slot machines plus a hotel and other facilities located at the racetrack for thoroughbred horses in the New York City borough of Queens. The developer of the project, which has been planned for nine years, would pay a minimum US$300 million up- front fee to the state, which would issue US$250 million of bonds to help finance the facility, according to budget documents.

Lottery Evaluation

The Lottery’s evaluation of Genting’s bid will continue, and it is not guaranteed the award, even though it is the only remaining bidder, said Jennifer Given, a state spokeswoman. The Lottery expects to announce its recommendation by Aug. 3, she said. The winner must also be approved by the governor, the president of the state Senate and the speaker of the Assembly.

The Lottery’s announcement listed 19 aspects of the SL Green proposal that were called “non-responsive” by the Lottery. The Penn National proposal was disqualified on eight counts.

Genting Malaysia, based in Kuala Lumpur, said July 1 it will buy the UK casino businesses of Genting Singapore Plc for £340 million to expand overseas. Both companies are controlled by Genting Bhd., which has holdings in hotels, palm oil plantations and cruise lines.

Spokesmen for SL Green and Penn National couldn’t be reached for comment.

New Low for Lohan

It was a new low for Linsay Lohan when she was sentenced to 90 days imprisonment today for violating her parole of not attending alcoholics rehabilitation classes.

From a meteoric rise, she is now in the dumps. Yet another fallen princess of the silver screen.

Electrical Wonder!

So, it is mid-July now? Hmmmmm.....

And so it would seem.

The Electric Train Service (ETS) which will reduce travel time between Ipoh and Kuala Lumpur to just two hours from three hours previously, is expected to be fully operational by mid July 2010.

Keretapi Tanah Melayu Berhad (KTMB) president Dr Aminuddin Adnan however, did not reveal the exact date of the launch of ETS.

“We are targeting professional groups and businessmen, besides the regular users of public transport, to use the service.

“With a speed of 140km/h, ETS will definitely reduce travel time, and the service of stewards and stewardesses will also provide comfort to passengers.

“In future, we will also provide wi-fi facilities in the train and we are in the midst of getting the right service provider,” he told Bernama in an interview here yesterday.

Eventually, he said, the ETS would also be expanded to Seremban.

Aminuddin said there were five ETS trains which would provide eight return trips for the Kuala Lumpur-Ipoh route daily, with the first train leaving at 5am and the last, 11pm.

On the fare, he said, KTMB was still waiting for approval from the transport ministry, adding that it was expected to be between RM30 and RM35 per trip.

Dr Aminuddin said KTMB had prepared an organised maintenance system for the ETS to ensure that it would not face similar problems as its existing train services.

“It is easier to maintain the electrical system with an organised maintenance plan. We hope to be able to provide an efficient and hassle-free train service, as compared to the commuter and inter-city train services,” he said.

He said each ETS train was also equipped with close-circuit television cameras to monitor the safety of the passengers, besides having the capacity of 350 passengers per trip.

Watch The Camera!

Think you can get away with doing  silly things?

Not today-with camera technology.

Here, a World Cup player get caught in 'his action!"

And here we see Diego Maradona, the Argentinian coach, 'fiddling ,diddling and dribbling" too.

BNM's Last Rate Hike?

Come 8th July, we will know whether Bank Negara [BNM] will hike rates again once more or call for a momentary halt.

A Reuters report postulates that  BNM may raise rates for the third time in five months after strong economic growth in the first half, but it could be a close call, with many analysts believing it will keep rates on hold due to fears of a global slowdown.

Nine out of sixteen analysts polled by Reuters expect a rate hike of 25 basis points to 2.75 per cent at a policy review on Thursday, while the remaining seven expect a pause.

Most of the economists who expect a hike in two days time do not see any more tightening for the rest of the year.

Of those who see no changes in rates this week, two said the central bank was already finished for the year, while three predicted it would bump up rates in September.

Malaysia last month raised its full-year economic growth forecast to 6 per cent from 4.5 to 5.5 per cent after gross domestic product (GDP) expanded by 10.1 per cent in the first quarter from a year earlier, its fastest pace in 10 years.

Export growth in April and May, however, have moderated compared to first quarter numbers and this may impact second-quarter economic growth. The central bank has said that domestic factors would drive policy considerations.

Uncertainties over the euro zone recovery and fears the US economy may be losing steam may also influence Bank Negara’s decision, with some economists saying that weak US economic data recently has lessened the chance of a domestic rate rise.

Late last month, Malaysia’s central bank governor said inflation was not a concern.

JULY HIKE, LAST OF THE YEAR?

After two, 25 bps rate hikes in March and May, Bank Negara will decide if it should further nudge rates to a more “normal” setting.

Economists consider that 2.75 per cent would be the normal rate for Bank Negara, while remaining accommodative to further growth, giving policymakers the opportunity to pause for the rest of the year to review the impact of the earlier tightening.

It cut rates by a total of 150 bps during the global financial crisis, from 3.5 to 2 per cent.

Domestic demand may remain firm as imports of consumption goods have been strong. In contrast, export growth has moderated, but some easing had been expected going into the second half.

Bank Negara has also downplayed any fallout from the euro zone debt crisis, although investors will watch its references to the global economic situation for clues on whether rate rises have ended for now, or if they will continue.

Probability: More likely.

Market impact: Both the ringgit and bond markets stand to gain from another rate hike as foreign investors would continue buying into government bonds, betting on more ringgit gains.

In June alone, 5-year government bond yields dropped 7 basis points while the ringgit appreciated by 1.2 per cent. The ringgit has gained more than 6 per cent year-to-date, making it the best performing Asian currency.

RATE PAUSE IN JULY, BUT TO CONTINUE LATER?

Growing uncertainty about the global economic recovery may lead to more moderate economic growth, prompting the central bank to pause its tightening campaign at the current 2.5 per cent before hiking rates once more in the fourth quarter.

Bond and forex traders say the sharply divided outlook for Thursday’s decision is due to the markets’ inability to gauge what the central bank considers to be an acceptable level.

The Official Policy Rate (OPR) has a relatively short history, making it difficult to determine what is considered a normal level. It was only introduced in 2004, with an initial setting of 2.7 per cent.

Three-month KLIBOR was quoted at 2.73 per cent today. In the forward starting swaps space, the 3-month rates swap on a contract starting after 3 months was quoted at 2.80 per cent.

This implies the market is pricing in just 7 bps of rate tightening by October. The KLIBOR in recent weeks has increased 6 bps since the May rate hike, compared to a 37 bps gain before the May rate hike, implying that there is less anticipation for a hike on Thursday.

Probability: Less likely

Market impact: A pause would not be a big cause for concern as foreign investors are still buying ringgit and government bonds as Asian currencies track yuan gains after China abandoned its two-year currency peg to the dollar.