Move to cushion fuel price hike

Tenaga Nasional Berhad’s Tuanku Jaafar power station in Port Dickson. The Energy Commission is considering implementing the Fuel Cost Pass-Through mechanism next year.

THE Energy Commission is studying ways to cushion the impact of future tariff hikes on consumers by implementing the Fuel Cost Pass-Through (FCPT) mechanism next year.

Deputy Energy, Green Technology and Water Minister Datuk Seri Mahdzir Khalid told the Dewan Rakyat yesterday that FCPT was a mechanism under incentive-based regulations to encourage more efficient utility operations through a reward-and-penalty system.

"Once implemented, consumers will be subject to fuel market prices. The fluctuations in fuel prices will be reflected in the tariff prices billed to consumers.

"And if the prices drop, consumers will enjoy lower fuel market price.

"It is our hope that the FCPT, once implemented, will help cushion the tariff changes for consumption of 200kWh and above.



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Parliament: EPF has no investment links with Israel, says Ahmad Maslan

The Employees Provident Fund (EPF) has no links with Israel or the manufacturing of weapons of war, Parliament was told.

Deputy Finance Minister Datuk Ahmad Maslan said the EPF also did not invest in gambling and liquor, in line with its investment policy and ethical mandate.

"In principle, the EPF does not separate investment based on the religion and race of members.

"The annual distribution of dividend is based on cumulative income from Islamic and conventional investment instruments.

"However, we have proper guidelines and investment policies to fulfil the ethical mandate in which the EPF will not invest in sectors which are clearly haram and wrong, such as gambling, liquor, manufacturing and sale of weapons of war and has no links with Israel."

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EPF mulls buying rest of RHB

The Employees Provident Fund (EPF) is considering buying the 59 per cent of RHB Capital Berhad that it does not already own and has hired Goldman Sachs to advise it on its options, people familiar with the matter said.

EPF wants to privatise RHB to merge it with property financing firm Malaysian Building Society Bhd (MBSB) and later relist the merged group as part of a restructuring, the people said.

The fund also owns nearly 60 per cent of MBSB. According to a Reuters report, the move is another sign of consolidation in Malaysia's financial sector as it prepares for higher capital requirements under Basel III rules, which were drawn up to avoid a repeat of the financial crisis that followed the collapse of Lehman Brothers in 2008.

RHB, Malaysia's fourth-largest bank, has a market capitalisation of $6.8 billion (RM19.84 billion). Abu Dhabi's Aabar Investment is RHB's second-largest shareholder, with a 22 per cent stake, followed by OSK Holdings with 9.8 per cent.

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Malaysia’s stock market rise points to a bubble

Malaysia’s stock market is at risk of becoming a bubble, as it goes through an unsustainable growth spurt fuelled by a global thirst for yield, said a report by international analysts the Centre for Economics and Business Research (Cebr) today.

Together with neighbours Thailand and Singapore, Malaysia’s debt-to-income ratio has reached between 120 to 130 per cent of its gross domestic product (GDP), a trend which has continued since 2011 after global outlook towards the region turned positive.

“Stagnation in industrialised nations means investors are turning to emerging economies in search of higher yield. ASEAN stock markets have ridden this wave of capital, sending stock prices skywards.

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Putrajaya brushes aside Hassan Marican’s Singapore appointments

Putrajaya dismissed today concerns that Tan Sri Hassan Marican’s move to Singapore was an indicator of Malaysia’s failure to address its “brain drain” problem, saying “there are no indispensable people in the world”.

Minister in the Prime Minister’s Department Tan Sri Nor Mohamed Yakcop told Parliament this morning that in the current era of globalisation, the government could not stop individuals from migrating abroad for better job opportunities but could do its best to reap benefits from the phenomenon.

UEM, EPF to waive Plus Expressway's RM2.6 bil compensation

UEM Group Bhd and the Employees Provident Fund (EPF) have agreed to waive Plus Expressways Bhd's current outstanding compensation balance totalling RM2.9 billion from the government.

In a statement today, UEM said there will also be no compensation for the toll rate freeze until 2015 which will otherwise cost the government RM3.6 billion.

EPF and UEM Group have concluded the negotiation with the government on the proposed acquisition of assets and liabilities of PLUS Expressways and Penang Bridge Sdn Bhd.

Tony’s ‘new airline’ threatens MAS-AirAsia pact, says PKR

The Sun newspaper reported today that Fernandes will launch a new super-premium airline that will compete head-on with Qantas’ RedQ

PKR has called into question the credibility of the collaboration between Malaysia Airlines (MAS) and AirAsia following reports that Tan Sri Tony Fernandes is starting a new premium airline that could potentially be in competition with the national carrier.

MAS and Fernandes’ AirAsia had in August entered into a collaboration agreement which also involved an exchange in equity between the parent companies of both airlines.

Selangor implements RM1,500 minimum wage for GLC staff

The Selangor government announced the implementation of RM1,500 minimum wage for the employees of all wholly state-owned subsidiaries.

To start it off, Mentri Besar Tan Sri Abdul Khalid Ibrahim said, the state has allocated a RM10 million grant for companies whose financial standings are still unstable, in order to assist in the implementation of the minimum wage scheme.

The implementation of the minimum wage is part of the Selangor 2012 Budget themed "Selangorku: State's Revenue for the People" which was tabled at the state secretariat today.

At a press conference later, Abdul Khalid elaborated that implementation of a minimum wage will be supported by a higher workers' productivity level.

"We don't want to give give-aways. People need to earn their keep," he said.

Naza records milestone with 150,000th vehicle

Mukhriz (left) and Nasarudin with the 150,000th vehicle to roll out at the NAM plant in Gurun

NAZA Automotive Manufacturing Sdn Bhd (NAM), the manufacturing arm of the Naza Group, celebrated the production of its 150,000th vehicle at its plant in Gurun, Kedah, yesterday.

NAM began operations in May 2004 and rolled out its first vehicle, a Naza Ria, in August that year.

Foreign worker exodus to spark labour crunch

Indonesian plumber Yadi has been plying his trade in Malaysia since 2003, part of a two million-strong migrant labour force that forms the backbone of Kuala Lumpur’s plantations and construction industries.

But now, the 30-year old wants to go home as wages rise and job opportunities open up in Jakarta, a growing trend among Indonesian workers that analysts say could produce a labour crunch and slower economic growth for Malaysia.

“I have heard a lot from friends and relatives about jobs opening up in my home country, and if I can as easily earn just slightly less in a city like Jakarta compared to what I make now, I will go back,” said Yadi, who earns RM90 ringgita day as a plumber’s assistant.

From minding babies to erecting skyscrapers, Malaysia’s economy has been supported over the last three decades by a foreign workforce drawn mainly from Indonesia, the Philippines, Bangladesh and Nepal as an industrialisation drive created a wealth of low-paying jobs shunned by locals.

Seven fall into sea while posing for photograph after bridge collapses

Several people who earlier attended a protest by 30 trawler operators against the Government’s move to increase the price of subsidised diesel, holding on to a collapsed bridge that gave way while they were posing for a photograph at Batu Maung jetty in Penang yesterday.


Seven people, including three boys, fell into the sea near here after the bridge they were standing on gave way while they were posing for a photograph at the Batu Maung jetty.

The group, who had earlier attended a protest by some 30 trawler operators against the Government's move to increase the price of subsidised diesel, had wanted to pose with their boats in the background.

They were standing on the bridge and calling out to other fishermen to join in for the photograph when the bridge collapsed.

However, as the water level was low, they managed to climb onto the remnants of the bridge before walking back to shore.

During the protest, Ismail Kassim, 58, said the Class B operators-cum-fishermen from Batu Maung and Teluk Bahang were worried that they would also be affected by the increase in diesel price to RM1.80 per litre for deep-sea C2 trawlers.

Maybank to submit merger plan end-June

Wahid (left) and Megat Zaharuddin speaking to the media yesterday.


Malayan Banking Bhd (Maybank) expects to make a proposal on its proposed merger with RHB Capital Bhd (RHBCap) by the end of June, its president and chief executive officer Datuk Seri Abdul Wahid Omar said.

The country’s biggest lender has been in discussions with all major shareholders of RHBCap on its takeover bid.

Maybank and CIMB Group Holdings Bhd are making separate takeover bids for RHBCap, the country’s fifith largest banking group.

Najib announces nine new ETP initiatives

Najib greets one of the guests at the Sixth ETP Progress Update.

Prime Minister Datuk Seri Najib Abdul Razak has announced nine new initiatives in the Economic Transformation Programme (ETP), which include Malaysia's first private teaching hospital and the establishment of two new specialists hospitals.

Big on mini marts Mydin plans to open 50 outlets every year

HYPERMARKET operator Mydin Mohamed Holdings Bhd plans to open 50 MyMydin outlets every year as part of plans to grow its mini market chain.

This year alone, more than 20 outlets have opened and todate, 52 MyMydin shops serve the people in the Klang Valley.

Mydin Mohamed Holdings managing director Datuk Ameer Ali Mydin (pic) said the mini market was a format the company was looking forward to develop in suburban areas.

“We concentrate in the Klang Valley for the next two years, then go into other suburban areas in main cities, such as Malacca.”

Open IPPs bids will lead to cheaper tariffs, says Awer

Putrajaya should select independent power producers (IPPs) through competitive bidding instead of awarding concessions to ensure lower electricity tariffs for consumers, an independent research group recommended today days after power prices rose 7.12 per cent.

The Association of Water and Energy Research Malaysia (Awer) also suggested that IPPs refusing to follow this new model should be blacklisted by the government — along with their major shareholders, board of directors and subsidiaries - from bidding on future power generation projects, even in the guise of new entities.

Maybank said to hire Nomura as adviser for RHB bid

Malaysia's biggest lender, Malayan Banking Berhad (Maybank), has hired Japanese investment bank Nomura to advise on its takeover bid for RHB Capital, which could create one of the largest banking groups in Southeast Asia, a source with direct knowledge of the deal said.

The appointment was expected after Nomura advised Maybank for its US$1.4 billion (RM4.26 billion) takeover bid for Singapore stock broker Kim Eng earlier this year.

Nomura and Maybank declined comment.

RM20 banknote making a comeback

After a 16-year hiatus, the RM20 banknote will be re-introduced by Bank Negara.

It is part of a new design of Malaysian banknotes and coins which will be issued for circulation early next year in an exercise that is undertaken periodically every 12 years.

“The re-introduction of the RM20 banknote in the new currency series is primarily to function as an intermediary denomination to bridge the value gap between RM10 and RM50 for greater convenience in making payments,” Bank Negara told The Star in a statement yesterday.

With the new RM20 banknote, the central bank expects a reduction in overall demand for RM10 and RM50 banknotes.

The old RM20 banknote was introduced during the second series in 1982 and was discontinued in 1995.

It featured Malaysian traditional ornamental designs and the Bank Negara headquarters on its reverse side.

Putrajaya doesn’t believe in deficit hell or surplus heaven

The Najib administration does not believe in “deficit means you go to hell and surplus means you go to heaven”, with a minister insisting today a plan to slash subsidies despite rising prices is well timed during a growing economy.

The government is to decide this week on stopping the subsidy bill from growing to RM21 billion, which could raise the prices of fuel, electricity and other goods, prompting dismay among people who complain their wages cannot keep up with inflation.

The cuts could also delay Prime Minister Datuk Seri Najib Razak’s decision to call a snap election.

“The government does not hold to the ideology that a deficit means you go to hell and surplus means you go to heaven,” Minister in the Prime Minister’s Department Tan Sri Nor Mohamed Yakcop (picture) told reporters here today.

Putrajaya orders government departments to cut costs

Datuk Donald Lim (left) with China’s Ambassador to Malaysia, Chai Xi.

Tan Sri G. Gnanalingam, executive chairman of Westports Malaysia, welcomes Datuk Lim.

Putrajaya will order all government departments to cut costs as the Najib administration looks for ways to trim the country’s subsidy bill that could top RM21 billion this year.

Deputy Finance Minister Senator Datuk Donald Lim Siang Chai revealed the Chief Secretary would issue the orders, saying today that the government must be more prudent in its spending.

“So I believe the directive from KSN and so on to ensure that everyone has to control ourselves and not overspend,” he told reporters here, referring to Chief Secretary to the Government (KSN), Tan Sri Mohd Sidek Hassan.

RON95 price review in June, says Ismail Sabri

All petroleum products’ prices will be reviewed in June — including RON95 — before a price increase decision is made, said the minister in charge today.

Domestic Trade, Cooperative and Consumerism Minister Datuk Seri Ismail Sabri Yaakob added that the finance ministry and Performance Management & Delivery Unit (Pemandu) among others will decide together, according to Bernama Online.

He reiterated that Pemandu’s subsidy rationalisation plan necessitated a revision every six months. Ismail stated that diesel, LPG and RON95 prices were revised last December, therefore a revision’s due.

He was replying to media after opening the Ipoh Umno division delegates meeting here. There has been intense speculation on the price of RON95 following the increase of RON97 price to RM2.90 per litre.

Ismail Sabri explained though previously he assured petrol prices would not rise, he did not guarantee they’ll remain indefinitely as the government’s petroleum subsidy burden is expected to rise from RM8 billion in 2010 to RM18 billion this year.

The savings the minister said should be directed to basic infrastructure and education.