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Showing posts with label economics. Show all posts
Showing posts with label economics. Show all posts

CIMB group reduces network

KUALA LUMPUR: CIMB Bank and CIMB Islamic announced yesterday that the group has closed 21 banking branches across Malaysia, reducing its network to 362 branches.

“Affected customers have been informed of the rationalisation exercise,” the bank said in a statement.

CIMB said the affected customers’ accounts would be transferred to the nearest branch and the account number changed. However, they can continue to use their current ATM cards and cheque books.

“We are right-sizing our branch network by merging, closing or relocating branches which are close to each other or within the same business area,” CIMB Bank head of customer sales and distribution Sulaiman Mohd Tahir said.

He added that in addition to promoting efficiency and reducing costs, the move would allow the bank to set up branches in under-served areas.

The exercise also marks the second phase of CIMB Bank’s plan to optimise its distribution network after acquiring Southern Bank Bhd in March 2006.


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MAS targets RM1bil profit every year

KUALA LUMPUR: Malaysia Airlines plans to make RM1bil in profit annually for the next five years under its new business transformation plan (BTP2).

The national carrier is also aiming to increase its profit by 50% to RM1.5bil after 2012.

These lofty targets are contained in the BTP2 which will be launched tomorrow. Details were released to Bursa Malaysia in a statement last evening.

“The philosophy behind the BTP2 is aiming and planning for the best, assuming the worst.

“On aiming and planning for the best, MAS will go for the seemingly impossible target, that is, record profits.

“On assuming the worst, MAS must transform to become a Five-Star Value Carrier (FSVC). MAS has to build a ship that can weather the storm, in its case, the imminent liberalisation and overcapacity in Asia,” the airline said in its statement to Bursa.

The BTP2 replaces the Business Turnaround Plan, which was launched two years ago. The original plan was only set to be completed by the end of this year, and MAS planned to make a profit of RM500mil.

But the turnaround was so successful that the target was reached last year when it made over RM610mil in profits in the first nine months of the year.

It is widely speculated that MAS will breach the RM1bil mark when the fourth quarter profits are totalled. The 2007 performance is expected to be announced on Feb 25.

The national carrier explained that an FSVC could withstand the competition it faced from other full service carriers and low-cost airlines by providing quality services at competitive prices.

MAS also stated that its target for the next five years was based on the scorecard set for government-linked companies by Khazanah Holdings but was confident that it would reach the highest level of the requirements.

Under the GLC goals for this year, a profit of RM400mil to RM550mil was considered on target, RM551mil to RM650mil profit exceeding and RM651mil to RM1bil outstanding.

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Launch of corridor heralds new era for Sabah

KOTA KINABALU: A total of RM105bil in investments, 900,000 jobs, a waterfront city, tourism projects and a RM600mil new Sabah Railway terminal – these are among the things Sabahans will get when the Sabah Development Corridor (SDC) is completed in 18 years.

In addition, Gross Domestic Product will be up to RM63bil and an annual per capita income will hit RM14,800.

Ambitious plans: Abdullah and his wife Jeanne taking a closer look at models of buildings planned for the waterfront city project during the SDC launch in Kota Kinabalu yesterday.

As an immediate measure, Prime Minister Datuk Seri Abdullah Ahmad Badawi announced an extra RM5bil allocation under the Ninth Malaysia Plan to improve infrastructure and to reduce the cost of doing business in the state.

And minutes after Abdullah launched the SDC, 13 MoUs were signed involving international companies from China, the United States and Japan for various projects worth RM16bil.

These developments include housing, condominiums, hotels, the waterfront city, ports, tourism projects and the railway terminal at Tanjung Aru.

The Prime Minister said the SDC was to transform Sabah into an environmentally conscious and modern state and gave an assurance that every aspect of the corridor development would benefit all Sabahans.

“Today we see the Land Below the Wind take a quantum leap to be developed and be prosperous,” he said to applause from the crowd at Sapangar Container Port here yesterday.

He outlined five key thrusts of the SDC, which will be to:

> make Sabah the gateway for trade, investment and tourism in the region.

> transform the state into a harmonious and prosperous state regardless of race or religion.

> make the state more technology-savvy to ensure a better quality of life.

> provide job opportunities in the state.

> make Sabah a comfortable state to live in with good quality of life accentuated with diverse cultures, heritage and environment.

Abdullah said that with the realisation of the five key aspects, the face of Sabah would be totally changed under the plans which would not leave out any group or region in the state.

“This is not a daydream. We are not making an empty promise. There is no doubt there is a lot of challenges but we will ensure that the Sabah corridor will be a success,” he said.

Under the SDC, the state’s west coast would see an industrial sub-corridor and agro-food industry for small and medium enterprises. For the central and northern zones, there will be an agripolitan zone, tourism, highland agriculture and agro-forestry.

The east coast will have industries, marine tourism, integrated agro food industry, agro-biotechnology, and palm oil-based industry zones.

Abdullah said that the overall focus of the SDC was to promote Sabah’s inherent strengths that included its location, rich natural resources as well as cultural and biological diversity that can become high potential economic activity.

The sectors being promoted would be agriculture, tourism and logistics, services and manufacturing, he said.

He said they also hoped to bring in more tourists to the state by developing eco-tourism destinations like Sipadan, Danum Valley and Darvel Bay.

Abdullah said the federal government would liberalise the open skies policy for air travel to Sabah.

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PM: Confidence perks up bourse

PUTRAJAYA: While the KL Composite Index may have closed at an all-time high of 1,521.6 points on Friday on talk of the general election, Datuk Seri Abdullah Ahmad Badawi would rather attribute the rise to confidence in the country’s economic policies and flow of foreign investments.

“The rise shows there is confidence in our bourse and our economy, which is at present booming,” said the Prime Minister.

“We continue to attract investments from overseas. Our ministers have been promoting Malaysia in their overseas trips.”

“I always take the opportunity to meet the CEOs or managers of companies who wish to meet me when I travel overseas,” Abdullah told reporters after attending the Prime Minister’s Office Family Day event at his official residence Seri Perdana here yesterday.

“I have always stressed to them that any investment in Malaysia will benefit them because we offer a competitive business environment.”

Asked if the local stock market could have been buoyed by speculation that the polls were just around the corner, as was usually the case with every election, Abdullah said: “Never mind. Let it (the bourse) rise.”

Dismissing the notion that the rising composite index would be an indicator of the coming polls, Abdullah said there had been times when the ruling party had called for elections when the economy was in a bad shape and still won.

“The important thing is whether the rakyat have confidence or not in the ability of the Barisan to govern the country,” he said.

“Our long experience in governance, the achievements and success in eradicating poverty regardless of race and our doing away with academic fees to ensure that poverty was not an obstruction to our children’s education – these are the things that the rakyat and the Malaysian family will take into account.

“We are monitoring the situation in the country to ensure that the rakyat receive the full benefits of any project or policy implemented,” he said.

Abdullah said voters should think well before making their choice when it came to the ballot box because their decision would ultimately affect the future, development, stability and prosperity of the country.

“There will always be problems. Which country has none? But we will continue to improve and overcome any problem we may face,” he said.

Abdullah added that the government chosen must bring about development to its people, such as what the Barisan Nasional coalition had done, by implementing economic growth corridors in order to bring about a fair distribution of economic opportunities for its people.

Asked if the polls would be called in March, the premier merely said: “Just be patient.”

On the request by Cuepacs for an honorarium in lieu of bonus payment, Abdullah said he knew that the Chief Secretary to the Government Tan Sri Sidek Hassan had held several discussions with the union.

“However, he has not forwarded any proposal to me,” he said.

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PM: Confidence perks up bourse

PUTRAJAYA: While the KL Composite Index may have closed at an all-time high of 1,521.6 points on Friday on talk of the general election, Datuk Seri Abdullah Ahmad Badawi would rather attribute the rise to confidence in the country’s economic policies and flow of foreign investments.

“The rise shows there is confidence in our bourse and our economy, which is at present booming,” said the Prime Minister.

“We continue to attract investments from overseas. Our ministers have been promoting Malaysia in their overseas trips.”

“I always take the opportunity to meet the CEOs or managers of companies who wish to meet me when I travel overseas,” Abdullah told reporters after attending the Prime Minister’s Office Family Day event at his official residence Seri Perdana here yesterday.

“I have always stressed to them that any investment in Malaysia will benefit them because we offer a competitive business environment.”

Asked if the local stock market could have been buoyed by speculation that the polls were just around the corner, as was usually the case with every election, Abdullah said: “Never mind. Let it (the bourse) rise.”

Dismissing the notion that the rising composite index would be an indicator of the coming polls, Abdullah said there had been times when the ruling party had called for elections when the economy was in a bad shape and still won.

“The important thing is whether the rakyat have confidence or not in the ability of the Barisan to govern the country,” he said.

“Our long experience in governance, the achievements and success in eradicating poverty regardless of race and our doing away with academic fees to ensure that poverty was not an obstruction to our children’s education – these are the things that the rakyat and the Malaysian family will take into account.

“We are monitoring the situation in the country to ensure that the rakyat receive the full benefits of any project or policy implemented,” he said.

Abdullah said voters should think well before making their choice when it came to the ballot box because their decision would ultimately affect the future, development, stability and prosperity of the country.

“There will always be problems. Which country has none? But we will continue to improve and overcome any problem we may face,” he said.

Abdullah added that the government chosen must bring about development to its people, such as what the Barisan Nasional coalition had done, by implementing economic growth corridors in order to bring about a fair distribution of economic opportunities for its people.

Asked if the polls would be called in March, the premier merely said: “Just be patient.”

On the request by Cuepacs for an honorarium in lieu of bonus payment, Abdullah said he knew that the Chief Secretary to the Government Tan Sri Sidek Hassan had held several discussions with the union.

“However, he has not forwarded any proposal to me,” he said.

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US recession won’t hurt Malaysia much

BACHOK: The Finance Ministry does not expect Malaysia to be drastically affected if the United States, which is the world’s largest economy, spirals into recession this year due to external and internal issues.

Deputy Minister Datuk Dr Awang Adek Hussin said that while there may be some effects, the country’s gross domestic product (GDP) figure was still poised to register a 6.5% forecast growth.

The economy’s positive factors are driven by the global appreciation of commodity prices, healthy domestic consumption and high crude oil price momentum.

“Our fundamentals should remain steady despite worries about the US economy. We are not unduly worried even though the price of crude oil has touched US$100 a barrel as we also benefit to a degree,” he said after attending the opening of a bridge in Kampung Kual here.

Malaysia remains a net exporter of oil through Petronas although there is concern that a continued price increase can put pressure on the high subsidy costs being forked out by the national oil corporation to maintain relatively cheap domestic fuel prices, he said.

Dr Awang Adek was responding to reports quoting US-based economic institutions that there were signs of a recession following the release of the country’s unemployment rate percentage, which recorded higher than anticipated figures for the last quarter of 2007.

This also comes on the back of continued high fuel prices, rising cost of living and impact from the US property subprime market.

To this, Dr Awang Adek said Malaysia’s strength in commodities such as palm oil and rubber would pay dividends as there was a surge in demand for them, while healthy domestic consumption indicated confidence among consumers about the economy.

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12 projects in IDR this year



JOHOR BARU: Twelve mega projects totalling billions of ringgit are expected to kick off this year under the Iskandar Development Region (IDR), said Johor Mentri Besar Datuk Abdul Ghani Othman.

Among the projects scheduled for implementation are:

Meeting the press: Abdul Ghani speaking to reporters during the press conference to deliver his New Year message at Bukit Timbalan in Johor Baru yesterday.

  • The RM4.2bil Node 1 project in Nusajaya;

  • RM1bil Eastern Dispersal Link (EDL);

  • The 15km, RM1bil coastal highway linking Johor Baru with Nusajaya;

  • RM900mil clean up of Sungai Skudai, Segget and Tebrau; and,

  • RM500mil MSC Cyber City project in Kulai.

    “The new state administrative centre in Nusajaya, worth RM1.2bil, is also expected to start operations by March,” he told reporters at a press conference to deliver his New Year message.According to him, among the projects implemented in 2007 were the launch of the RM1.5bil Puteri Harbour and the RM7.8bil Tanjung Bin power plant.

    The IDR project was launched in November 2006, but it has taken over a year for the details, including the support and incentive packages for investors, to be finalised.

    Abdul Ghani dismissed concerns that a possible recession in the United States would negatively impact development projects in the region, saying that smaller countries would enjoy high growth rates.

    “Besides the United States and Europe, everybody is optimistic about economic growth and we expect the world rate of growth to go beyond 6%, even in Africa,” he said.

    He was confident the IDR would continue to attract large foreign and local investments in 2008.

    He added that projects funded by West Asian investors would be situated in Node 1, about 30km from Johor Baru after the Second Link.The Abu Dhabi-based main developer, Alder Properties, will invest US$520mil (RM1.7bil) to develop a leisure zone, while Al-Nibras 2 Ltd, a subsidiary of Kuwait Finance House, will invest US$330mil (RM1.08bil) to develop the culture cluster.

    In addition, Abu Dhabi’s Millinium Development Company will invest US$325mil (RM1.07bil) for the development of the international financial zone.

    Meanwhile, the state hopes to be almost squatter free by 2013 through a RM583mil relocation programme that will house around 8,000 squatters presently living within the IDR.

    An estimated 2,932 people whose settlements had to make way for the construction of the EDL would be given alternative housing.

    Abdul Ghani said RM300mil would be spent to relocate 2,700 squatters from Skudai Kiri and its neighbouring areas to flats near Sungai Melana, behind the Kipmart in Tampoi.

    Another 2,450 squatters from Lumba Kuda and Bukit Chagar are expected to get the keys to their homes in Seri Stulang and Pasir Pelangi soon.



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    Johor to kick off 12 mega projects under IDR



    JOHOR BARU: About 12 mega projects totalling billions of ringgit are expected to kick off in 2008 under the Iskandar Development Region (IDR).

    Johor Mentri Besar Datuk Abdul Ghani Othman said among the projects scheduled for implementation in the first quarter of the year are earthworks for the RM4.2bil Node 1 project in Nusajaya and the RM1bil Eastern Dispersal Link.

    He said the other big projects include the 15km RM1bil Coastal Highway linking Johor Baru with Nusajaya, and the RM900mil clean up of Sungai Skudai, Segget and Tebrau.

    “The new state administrative centre in Nusajaya, worth RM1.2bil, is also expected to start operations by March,” he told reporters at a press conference to deliver his New Year message.

    Abdul Ghani said, in addition, around 8,000 squatters would be resettled at a cost of RM583mil, while the RM500mil MSC Cyber City project in Kulai would also begin.

    “We will also enhance safety and security under the IDR to the tune of RM330mil,” he said.

    Abdul Ghani said he was optimistic that 2008 would be the year to implement the scheduled projects under the IDR.

    He also dismissed concerns that a possible recession of the US economy would negatively impact development projects in the region, saying that smaller countries would enjoy high growth rates.

    “Besides US and Europe, everybody is optimistic about economic growth and we expect the world rate of growth to go beyond 6%, even in Africa,” he said.

    Abdul Ghani said he was confident the IDR would continue to attract large foreign and local investments in 2008.

    “I want to stress here that the IDR is not just for foreign investors. We want Malaysians to use the opportunity to invest in the project as well,” he said.

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    MCA woos investors from China



    PETALING JAYA: MCA hopes to see more companies from China investing in Malaysia through joint ventures with local partners, said its president Datuk Seri Ong Ka Ting.

    He said the party would also convey the message that the Malaysian Government welcomed Chinese investment companies to the country through the Malaysian Chinese Economic Consultative Council (MCECC).

    “When I visited China recently, I highlighted our economic corridors to the investors and expressed our wish to cooperate with them,” he said after paying his last respects to Tian Lang, the mother of Sin Chew Daily editor-in-chief Pook Ah Lek, here yesterday.

    He added that the Prime Minister had also conveyed the same message to Chinese Foreign Minister Yang Jiechi during his visit here recently.

    Ong was commenting on the remark by Chinese ambassador Cheng Yong Hua that the Chinese embassy here would help promote Malaysia as an investment destination to Chinese investors.

    In an exclusive interview with Nanyang Siang Pau on Wednesday, Cheng said most Chinese companies were investing in the private sector where many of the corporations had the potential to further develop themselves overseas.

    However, he said the growth of such companies was still lagging behind those in countries like Singapore and Indonesia.


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    Ways to lift palm oil industry



    KUALA LUMPUR: The palm oil industry must get itself certified as environmentally friendly and sustainable, otherwise consumers will look for alternatives, warned Synergy Drive Berhad, the world’s largest palm oil producer.

    Its president and chief executive officer Datuk Seri Ahmad Zubir Murshid pledged that his company would use the best sustainable practices in all its plantations.

    Synergy Drive will officially become the world largest palm oil producer when the merger of three big plantation companies – Sime Darby, Golden Hope and Kumpulan Guthrie – takes place next week.

    “The newly-merged business will be an entity involved in five core activities – plantations, property, automotive, heavy equipment and energy and utilities.

    “Our commitment to sustainable practices is across all operating sectors,” Ahmad Zubir said on Tuesday in his keynote speech at the fifth Annual Meeting of the Roundtable on Sustainable Palm Oil (RSPO).

    “We are developing sustainable practices not just on the plantation but at the mill and in the processing plants in our oils and fats division,” he said.

    The certification of sustainable palm oil practices would benefit the environment, economy and all stakeholders, said Ahmad Zubir.

    Although there are hurdles to be overcome such as the need for adequately trained auditors to carry out certification and the high cost of implementing certification, the industry must solve them, he said.

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