60% Projected Opening of Genting Sentosa Island

Genting Bhd's new casino resort in Singapore will start receiving guests in two-thirds of the facilities by early next year, including Southeast Asia's first Universal Studio theme park and the casino.It is aiming for 60 per cent overseas visitors, most of whom will come from Malaysia.

Other key target markets are China, India, Indonesia and Thailand. An estimated 12 million to 13 million visitors are expected to arrive in the first year at the resort on Sentosa Island, a stone's throw from the harbourfront Vivocity shopping mall. "By early 2010, a good 60-70 per cent will be opened.

We are talking about the Universal Studio, four hotels, part of Festive Walk, which is a dining and shopping area, and the casino," Robin Goh, assistant communications director of Resorts World at Sentosa Pte Ltd, told Business Times in an interview in Kuala Lumpur yesterday. "We would love to (open by Chinese New Year), but we don't have the date yet," he said.

The rest of the project, including the Oceanarium and two more hotels, will be ready in the following months. The company is ramping up publicity and marketing efforts to prepare for ticket sales which will start towards the year-end. As a prelude to the opening, a charity concert will be staged within the resort in December, Goh said.

Both the integrated resorts in Singapore are expected to open in the first three months of next year. Analysts are speculating that Resorts World, which started construction later, may be the first to open after Marina Bay Sands encountered some delays. Marina Bay Sands will probably open in either January or February, its executive director of sales Paul Stocker told Business Times separately.

Analysts believe that the two resorts will strive to start operations before Chinese New Year, which falls on Valentine's Day next year, to capture the peak period for the casino. Goh said that Resorts World had yet to decide the ticket price for the theme park or the hotel room rates, but was "mindful" of its pricing strategy to attract the crucial Malaysian crowd. It will probably bundle hotel stays with entrance fees, apart from the day ticket, two-day pass and annual pass.

"What is important is that Malaysian families must be able to see value for money in our theme park. "The proposition is that this will be the nearest Universal Studio among the four parks in the world, and it is a world-class facility and not a watered-down version. "There will be 24 rides in Singapore's Universal Studio compared with around 21 for the other destinations in Osaka, Japan, and Orlando and Los Angeles in the US.

Eighteen of the rides are built exclusively for the park in Singapore, Goh said. Among the highlights, a new Transformers ride will debut in Singapore, replacing the popular Spiderman three-dimension thrill ride which is already in all the three existing parks.

Shorter Trading Halt on Bursar

From August 3, 2009, the trading halt of stocks to disseminate material announcements by listed companies will be shortened to one hour from one trading session currently.

The move will apparently benefit listed companies as there will only be a minimal disruption of their securities from being traded.

Also, investors will benefit too from more trading opportunities as the suspension hours are significantly reduced.

A trading halt refers to a temporary halt in the trading of listed securities upon the release of information that has material effect on the price of the securities.

“A trading halt imposed when making material disclosure is important to enable investors adequate time to evaluate the company's announcements and make informed investment decisions,” said Bursa Malaysia Bhd’s chief executive officer Datuk Yusli Mohamed Yusoff.

He said shortening of the halt period would enhance market efficiency as trading interruption was kept to the minimum, and both the issuer and investor would benefit from being able to trade with minimal interruptions.

Currently, Bursa Malaysia requires listed companies to make material disclosures to the exchange and these announcements are posted on the exchange’s website, ensuring investors have continuous access to corporate information.

For example, the materials announcements made before the trading period starts (9am) as well as between 9am and 11am, a trading halt will be imposed for one hour from the time the material announcement is made.

Order entry and modification will be allowed during this time and the theoretical opening price (TOP) will be calculated, but no matching of trades will take place.

Joint Tenancy in Joint Bank Accounts?

Joint Tenancy? What concept is this?

I got this article from a friend. It is a MUST READ for Malaysians.


It happens in west Malaysia , husband and wife and 1 son. Husband pass away due to accident and husband has
a RM50k joint saving account with wife, what happen is
the
wife / like most ppl think, when husband pass away, she
will
get the money automatically since it is joint account.
But
to her surprise, She could not withdraw even a
single
cent!! Joint saving account is meant for convenience
when
spouse need it the most, but most ppl always assume
once
the other holder dies, another half will get the money
automatically
which is very wrong.

I
would
like
to share my opinion with all of you, you may take it
as
educational thoughts or for you to be aware. When one
person
dies, the other joint holder of the saving account
wll
get the
money automatically only if that particular bank
practise
'JOINT TENANCY' - this terms means one
party
die, the other joint party gets money
automatically.But
unfortunately,not all banks practise JOINT
TENANCY,
some foreign banks practise and most local banks
dont
practise, If you want to be sure, just ask ur bank is
their joint saving
account based on JOINT TENANCY, if it is
yes,
get the black and white.

Can
u all imagine, when husband pass away, the wife already
suffer
emotional loss, now suffering the problem of having
'NO
MONEY' although it is in join
account.Because
of husband ignorance, now
the wife and son
pay
for it.

1 UP for 1Malaysia Prime Minister

Najib has shown his human side today. He allowed the grieving Teoh family members to meet up with him today at his office. He furthermore assured them that he will personally see to it that the late Teoh Beng Hock's inquiry will be carried out according to the letter of the law.

The inquest will commenced tomorrow at the courts in Shah Alam.

Good for you, Mr PM; for you have shown the human side of yourself during the bereavement of the Teoh family. That's 1UP for 1 Malaysia.

Is Genting on a US Acquisition Trail?

Julie Goh gives an update on Genting in a Reuters report dated July 28,2009.

This is her report.

Malaysian conglomerate Genting Bhd could be placing a risky bet as it aims to take on U.S. casino giants Las Vegas Sands and Wynn Resorts to diversify from its monopoly home turf.

Genting, Asia's largest casino operator, is looking to expand at a time highly-leveraged U.S. rivals are barely meeting debt obligations and may turn to asset sales to stay afloat.

Genting's 3.2 percent stake purchase in MGM Mirage, the biggest operator on the Las Vegas Strip, in June has triggered market talk Genting could buy out MGM's stake in its Macau's business.

With more than $2 billion in cash and one of the strongest balance sheets in the sector, Genting might also be best placed to swoop on any casinos up for grabs in the United States.

But stiff competition in its new markets, still-struggling overseas businesses and a fragile global economy could derail the group's ambitious plans.

"Growth is limited in Malaysia and Singapore and they have money to spend. Now's probably the best time to actually buy something," said UBS analyst Alain Lai.

"Certainly, the returns aren't going to be as attractive as in Malaysia because Malaysia is a monopoly," he said.

The Genting Group earns more than 70 percent of its profits from local operations, but it has put for sale its non-core businesses of palm oil plantations, property and power generation, which together account for about 30 percent of revenue. Genting Bhd is the holding company for Genting Group.

Genting's international business, in particular Stanley Leisure, the U.K.'s biggest casino operator, have been hit by the economic downturn and stricter rules on smoking and gaming machines.

Genting's head of strategic investments, Justin Leong told investors in London this month the company wants to be one of the top three gaming players in the world and will be patient in executing its expansion strategy.

The group, which operates Malaysia's only casino, also owns Star Cruises, Asia's largest cruise operator. Genting was founded in 1965 by Lim Goh Tong who risked bankruptcy over seven years to build the group's gaming resort in Malaysia.

Genting's stock has surged 85 percent so far this year, driven by the resilient gaming market, helping it outperform a 35 percent rise in Malaysia's broader market.

MACAU OR LAS VEGAS?

Genting has been keen to grab a foothold in Macau, the Chinese gambling enclave, where gaming tycoon Stanley Ho's SJM Holdings and Las Vegas Sands hold a market share of 31 percent and 25 percent, respectively.

Other casino operators in Macau's $15 billion sector include Hong Kong's Galaxy Entertainment Group, Melco Crown, partly owned by Australia's Crown Ltd, Wynn Resorts and MGM.

Some analysts said Genting might be keen to buy MGM's stake in its Macau business if it is up for sale, but others say it may use the investment in MGM as an expansion platform, mirroring a similar move in the UK.

Genting's investment in MGM raised speculation the Malaysian group may buyout MGM's 50 percent stake in a joint venture with Ho's daughter.

The gambling hubs of Macau and Las Vegas are clawing out of a deep slump but a glut of new casinos might put more pressure on the industry.

"There is clearly an opportunity for strong firms to poise themselves to capture the momentum of the next economic upturn," said Jonathan Galaviz, a partner at Las Vegas-based consultancy Globalysis, referring to Genting's expansion plan.

Genting Singapore is building Singapore's second integrated resort, which starts operations early next year, and analysts expect this to one of the key drivers for earnings growth.

On a 2009 enterprise value to EBITDA ratio (EV/EBITDA), Genting trades around 8.6 times, lower than 14.0 times for Wynn, 19.7 times for Las Vegas Sands and 11.3 times for MGM, according to Bank of America-Merrill Lynch.

"We see the potential of the group raising up to US$3.9 billion in financing ... if one assumes a 60:40 debt equity ratio, Genting can target up global gaming assets of almost $7 billion," said Melvyn Boey, analyst at Bank of America-Merrill Lynch.

Regulatory concerns however remain a risk, analysts said.

In 2007, Genting and Star Cruises called off a proposed casino venture with Ho in Macau after pressure from Singapore's regulators.

What a Wonderful Idea!

I think those current leaders at CUEPACS have good heads above their shoulders. They have decided that the deduction service of civil servants be done in-house to generate money for their own internal programmes such as giving scholarships to their members' children. In this JPA has failed miserably. Civil servant children were not given any preference for JPA scholarships. Real rotters!Believe me employees of TNB or Petronas provide scholarships to their employees' children.Great idea, Cuepacs. Salute to you.

So now Angkasa is having a hell of a headache. On the face of losing a substantial sum of easy money, Angkasa, has asked for a comprehensive study to be carried out before any organisation is allowed to take over the monthly salary deduction service for government sector loans.

Angkasa general manager Nasir Khan Yahaya said Cuepacs' request to the Treasury to allow it to take over the monthly deduction service would put the future of the cooperative movement at stake.

"The government has the right to give the task to any organisation but a thorough study must be carried out on the impact and implications of such proposal," he said in a statement today.

Cuepacs secretary-general Ahmad Shah Mohd Zin was reported as saying that Angkasa was raking in some RM8.1 billion a year in commission by providing the deduction service for both the government and private sectors.

If the proposal is accepted, Cuepacs could earn about RM4 billion annually and it would be channelled back to the civil servants through a foundation in the form of scholarships, medical aid and grants, Ahmad Shah added. -

Nasir Khan said Angkasa would continue to protect the interest of 3,804 cooperatives and 6.5 million members from the public and private sectors. Koperasi Pendidikan Islam Malaysia Berhad chairman Mustapha Kamal Maulut has denied Cuepacs' claim that it was earning RM8.1 billion in commissions from the monthly salary deduction.

Angkasa is well-equipped to handle the transactions and so far there is no leakage in the system, he said in a statement.

Will the New Ticks Tick?

Equity investment: What is tick size and how do investors benefit

EQUITY investment strategies take account of many factors, including tick sizes which are set by a stock exchange.

Here is a primer on tick sizes and how investors benefit from a smaller value.

This educative article is in conjunction with the introduction of a smaller tick size which will be made available by Bursa Malaysia and is planned for implementation on Aug 3.

Equity investors rely a lot on research and information to forecast the potential price appreciation of a stock. This ranges from fundamental analysis of the company to a technical analysis of its historical price movements. There is also a little known indicator known as a spread that can be used by investors to gauge the near-term movement of a particular stock. A stock’s spread is closely influenced by a “tick size”.

Understanding Spreads. Every share that trades on the stock market has a best buy and a best sell price. The best buy price is the highest price in the order book placed by interested buyers for a specific share while the best sell price is the lowest price in the order book placed by interested sellers.

These two prices are determined by demand and supply, which can be seen as a negotiation process between two parties.

The spread is the difference between a share’s best buy and best sell price. The general belief is that a consistently large spread signals low volume for that respective stock.

On the other hand, a narrow spread can indicate that a transaction will occur soon. For example, a stock with a buy/sell price of RM10 and RM10.02 suggests that buyers and sellers are very close to making a trade. If the narrow spread continues, volume for the respective share is expected to be high. A wider spread means that greater changes in the share’s buy or sell price is needed before a transaction can conclude.
Tick Sizes in a Spread. The magnitude of a stock spread is influenced by the tick size or the minimum tick size structure.

This refers to the smallest allowable price variation between the buy and sell price of a stock. The spread of a share can narrow if the tick size is reduced.

In the past few years, many global stock exchanges reduced their permitted tick size as this initiative was found to boost liquidity and efficiency to the capital market as a whole.

To stay competitive and relevant, Bursa Malaysia is also implementing a smaller minimum tick size for all shares and exchange traded funds (ETFs) trading on the local market. Under the new structure, a share with a buy price under RM5 will have a new tick size of 1 sen instead 5 sen. This means, interested buyers or sellers of this respective stock can now enter a buy or sell price of 1 sen instead of 5 sen.

The equity ETFs on the main board also benefit from a smaller tick size. Smaller tick sizes encourage active trading as there are many benefits for retail investors (see box story).

The reduction of tick size is expected to attract more trading volume due to improved opportunities as investors now will have more choice of entering or exiting the market just by smaller trading ticks. In short, this reduction of tick sizes will enable price discovery, leading to a positive impact on market liquidity.

In respect to the bidding price for buying-in, the exchange will retain the 10 ticks. Arising from this, the buying-in price will be based on the current tick sizes instead of the new tick sizes to ensure that the buying-in price is attractive to potential sellers.