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FINANCIAL
DAILY
FBM KLCI 1818.86 8.18 KLCI FUTURES 1812.50 3.00 STI 3222.55 13.95 RM/USD 3.2770 CPO RM2180.00 11.00 OIL US$86.13 0.70 GOLD US$1231.30 2.70
MONDAY OCTOBER 27, 2014 ISSUE 1825/2014
PP 9974/08/2013 (032820)
PENINSULAR MALAYSIA RM1.50
w w w . t h e e d g e m a r k e t s . c o m
MAKE
BETTER
DECI SI ONS
6 HOME BUSINESS
Tomei: Gold prices
to remain at current
levels in 2015
8 HOME BUSINESS
Johore Tin still keen
on dairy
9 HOME BUSINESS
Lego aims to exceed
industry growth
over next decade
21 COMMENT
Bank of Mom
and Dad cannot
keep pace
16 HOME
Enough with
name-calling,
says Muslim NGO
Maseratis best-looking model
18 FOCUS
Maseratis best-looking model
18 FOCUS
ENGTEX CLOSE TO
2
MONDAY OCTOBER 27, 2014 THEEDGE FI NANCI AL DAI LY
Zuckerbergs Chinese chat
leaves CEOs tongue-tied
For breaking news updates go to
www.theedgemarkets.com
ON EDGE TV
www.theedgemarkets.com
GE chief Jeery
Immelt talks
about global
market and
the power of
analytics
Expect an
increase in
GST rate after
some time
BY KATRI NA HAMLI N Publisher and Group CEO Ho Kay Tat
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Selangor, Malaysia
Najib to lead delegation
to 10th WIEF in Dubai
PUTRAJAYA: Prime Minister
Datuk Seri Najib Tun Razak
will lead the Malaysian delega-
tion to the 10th World Islamic
Economic Forum (WIEF) in
Dubai, United Arab Emirates
on Oct 28 to 30. A Wisma Pu-
tra statement issued yesterday
said Najib, who is also Finance
Minister, will be accompanied
by his wife, Datin Seri Rosmah
Mansor. Te Malaysian delega-
tion will also comprise Inter-
national Trade and Industry
Minister Datuk Seri Mustapa
Mohamed, Foreign Afairs Min-
istry Secretary-General Datuk
Othman Hashim and of cers
from the relevant ministries
and government agencies.
Bernama
Intruder shot dead in
boat o Semporna
SEMPORNA: Police shot dead
a man in his 40s, believed to
be a cross-border criminal,
early yesterday in the Ban-
gau Bangau waters here after
exchanging shots with the in-
truder who was in a boat, ac-
cording to the Eastern Sabah
Security Command (Esscom).
Following the incident, which
occurred at 2.15am, police
conducted an operation in
several water villages here at
about 10am and arrested sev-
en men and two women in
their 30s and 40s to help in the
investigation, Esscom com-
mander Datuk Abdul Rashid
Harun said. He also said that
the police were looking for six
men to help in the investiga-
tion. Bernama
Joko appoints technocrats
to top economic posts
JAKARTA: Indonesian Presi-
dent Joko Widodo yesterday
assigned professional techno-
crats to lead the top econom-
ic ministries and implement
much-needed reforms that
address costly fuel subsidies,
cooling investment and the
countrys creaky infrastructure.
Joko, who took of ce last Mon-
day, unveiled his cabinet of 34
ministers that included former
state-owned enterprises min-
ister Sofyan Djalil as Coordi-
nating Minister for Economics,
and promoted vice minister
Bambang Brodjonegoro to be
head of the fnance ministry.
Reuters
I N BRI EF
HONG KONG: Mark Zuckerberg
may spend his days running a
US$200 billion (RM656 billion)
Internet giant, but somehow he
found the time to pick up Chinese.
Te Facebook founder surprised
and delighted his hosts by answer-
ing questions in Mandarin during
a visit to Beijing last Wednesday.
Other corporate chiefs may feel
pressure to do the same.
While Zuckerberg is far from
fuent, his language skills are nev-
ertheless unusual. Roger Holter-
man, principal consultant at Robert
Walters executive search division in
Shanghai, says that at most 15% of
the board-level leaders at foreign
multinationals he meets have a
grasp of Mandarin. Only a handful
were lucky or far-sighted enough
to study Chinese at an early age,
and its not easy to fnd the time
on the job.
One way to solve the language
gap is to hire and promote more Chi-
nese executives. Not many foreign
Somehow Zuckerberg found the time to
pick up Chinese. Photo by Reuters
multinationals have native speakers
at the board level. But even non-Chi-
nese executives will be wondering
if they need to go back to school.
Zuckerbergs feat suggests a packed
schedule is not an excuse for failing
to master an alien tongue.
True, Zuckerbergs wife is from a
family of Chinese speakers. Before he
wowed a room of Beijing students,
he used his new skills to charm her
grandmother. And though his eforts
have gone down well in China, his
chat is unlikely to do much to help
Facebook in the Peoples Republic,
where censors have long blocked
access to the social network.
Even so, Zuckerbergs linguis-
tic fair will reinforce the idea that
the young chief executive of cer
represents a new wave of business
leaders who will go the extra mile
to make it in China. More and more
senior executives are honing their
Mandarin, according to interna-
tional recruitment frms. For com-
panies with big operations in China,
this brings clear benefts such as a
fuller understanding of the business
environment and much stronger
support from both local staf and
clients. Tese people will graduate
to the boardroom over time.
For ambitious executives, speak-
ing Mandarin could soon be as
important on the resume as the
ubiquitous MBA. Reuters
WASHINGTON: Te US Federal Re-
serve is likely to make a fnal push
into the post-crisis era this week with
a decision to fnally wind up its six-
year-old economic stimulus opera-
tions. A few worrisome clouds over
the global economy might be expect-
ed to give Fed Chair Janet Yellens
Federal Open Market Committee
(FOMC) pause when they meet to-
morrow and Wednesday.
But after repeatedly signalling the
end this month of the bond-buying
programme known as quantitative
easing (QE), the Fed is unlikely to
change course, analysts say. Te Fed
is currently adding US$15 billion
(RM49.2 billion) in cheap funds to the
economy per month under QE, down
from US$85 billion last December.
Injecting tens of billions of dol-
lars each month into the economy
to repress longer-term interest rates
has had less and less real impact,
while generating what some worry
are fresh bubbles in stock markets.
And despite defation worries in
Europe and a surge of concern over
the global economy, QE3 has al-
ready been tapered to the point that
continuing would be symbolic. Te
chance that the FOMC might hold
of remains. Last week James Bull-
ard, head of the Feds St Louis branch
and a former FOMC member, said
QE should continue until the data is
clearer. US infation expectations are
dropping, Bullard told Bloomberg
TV. We could go on pause on the
taper ... and wait until we see how
the data shakes out into December.
But analysts say the Fed does not
act on one or two months data, but
looks at the trend, which has been
steady, if modest, improvement in
the US economy. More important,
they said, is what the FOMC says
about the next phase of policy: the
initial increase in the benchmark
Fed funds interest rate, which has
been held at zero since the end of
2008. AFP
Fed to enter new normal with expected QE stimulus end
KUWAIT CITY: Energy kingpin
Saudi Arabia and other wealthy
Gulf states are set to resist pressure
to tighten the taps signifcantly to
shore up oil prices as the global
economy stumbles, analysts say.
Oil prices have fallen by a quar-
ter since June as excess supply and
weaker demand create a glut in world
markets, prompting some other ex-
porters to call for cuts in output.
But while curbing production
could help arrest the price decline,
it would also leave the Gulf states at
risk of losing market share.
Fortunately for the six nations of
the Gulf Cooperation Council (GCC)
which sit on 40% of the worlds oil
and a quarter of its natural gas they
are fush with cash, analysts said.
Te GCC states are in a strong
position to remain steadfast for a
few years if there is a dispute over
production, Kuwaiti oil analyst
Mussa Maaraf said.
Saudi Arabia and most Gulf
states will not be bothered a lot, at
least in the short term, and will be
able to resist pressure to cut pro-
duction and lose market share, said
Maaraf, a former member of Ku-
waits Supreme Petroleum Council.
Te benchmark US oil price has
fallen to levels not seen since mid-
2012, while in London, Brent North
Sea crude is around a four-year low.
Te price of US West Texas In-
termediate (WTI) stood at around
US$81 (RM265.38) a barrel last
Friday while Brent was changing
hands for about US$86.
Prices rebounded briefly last
Tursday as traders reacted to an
unconfirmed report that Saudi
Arabia trimmed its crude supplies
slightly in September.
But the recovery proved short-
lived as markets grew sceptical
about the report and fretted over
sluggish demand.
Analysts said the Gulf nations
were likely to remain relatively san-
guine about market conditions.
I dont think GCC states will be
harmed a lot by the drop in oil prices
in the short term, said Saudi econ-
omist Abdullah el-Kuwaiz. AFP
Gulf oil producers seen
riding out price plunge
Cash-rich, they risk losing market share if supply is cut
4 HOME BUSI NESS
Xx STOCKS TO WATCH
Engtex close to Langat 2
pipe deal win
Te manufacturer will know the results before year-end
BY JEFFREY TAN
BY VASANTHA GANESAN
KUALA LUMPUR: Pipe wholesaler
and manufacturer Engtex Group
Bhd is confdent of securing pipe
contracts worth RM110 million for
the Langat 2 water treatment plant
in Selangor, viewed by analysts as a
key driver for the groups earnings
going forward.
It was reported that the Langat 2
project, which is crucial to the states
impending water crisis, will require
about 50,000 tonnes of pipes worth
RM200 million.
I would say that we are conf-
dent of getting the Langat 2 project.
We are tendering for the pipe con-
tract and we are at the fnal stage.
We will know the results before the
end of this year, Engtex group man-
aging director Datuk Ng Hook told
Te Edge Financial Daily.
If Engtex secures the contract, the
group will supply pipes for Packages
1 to 5 for the Langat 2 project from a
total of 13 available packages.
KUALA LUMPUR: Maju Group,
controlled by businessman Tan
Sri Abu Sahid Mohamed, has en-
listed the help of tycoon Tan Sri
William Chengs Parkson Group to
manage and operate Maju Junction
Mall here.
Cheng is owner of the successful
Parkson department store chain,
which also owns and manages sev-
eral malls in China. Parkson will be
the master lessee of Maju Junction
Mall, which is located at the corner
of Jalan Sultan Ismail and Jalan Tu-
anku Abdul Rahman.
It is understood that the tenan-
cy agreement was entered into via
Chengs Singapore-listed Parkson
Retail Asia Ltd (PRA). As at Oct 24,
2014, Parkson Holdings Bhd owned
67.61% of PRA.
When contacted by Te Edge Fi-
nancial Daily, an of cial from the
Lion Group confrmed that Park-
son will lease the entire mall and
manage it.
It will also reposition Maju Junc-
tion Mall and be its anchor tenant.
Te mall has a net lettable area of
220,000 sq ft.
Te of cial said besides Parkson
groups strategy of owning malls, it
also manages malls so as to have a
stream of recurring income.
However, the of cial did not say
when the deal was signed or the
duration of the tenancy agreement.
Maju Junction Mall is part of Maju
He said tender details for Pack-
ages 6 to 13 have yet to be revealed.
We dont do the laying [of pipes],
but we will supply the pipes to the
main contractor, which is a con-
sortium made up of MMC Corp
Bhd, Salcon Bhd and Ahmad Zaki
Resources Bhd, Ng said.
On April 17 this year, the con-
sortium announced that it was
awarded the Langat 2 construc-
tion project with a contract sum of
RM993.8 million after it received a
letter of acceptance from Penguru-
san Aset Air Bhd for the frst phase
of the project.
Engtex chief financial officer
Khoo Chong Keong said the group
stands a better chance of securing
the pipe contract compared with
its competitor Boon & Cheah Steel
Pipes Sdn Bhd.
Our manufacturing plant is in
Serendah, Selangor. We have the
transportation advantage. Also, we
think they might be kept busy with
the Pengerang integrated petrole-
um complex project in Johor, Khoo
said. Boon & Cheah the only other
pipe manufacturer capable of pro-
ducing 3m diameter pipes suitable
for Langat 2 has its manufacturing
plants in Perak and Johor.
Khoo said Engtex had embarked
on upgrading its Serendah plant to
increase the diameter size of the
mild steel pipe production to 3m
from the current 2.6m. With a cap-
ital expenditure of RM4 million to
RM5 million, the upgrade includes
capacity expansion to enable the
plant to hit 42,000 tonnes per year
from 36,000 tonnes currently. Te
plant is expected to be completed
by the fourth quarter of this year.
With the upgrade, Khoo gave an
assurance that the plant, which had
a utilisation rate of above 55% as at
fnancial year 2013, can cope with
orders for Langat 2.
He dismissed concerns that Lan-
gat 2 could be scrapped, adding that
the RM3.93 billion Pahang-Selangor
raw water transfer project is 96.7%
Ng: We are tendering for
the pipe contract and
we are at the nal stage.
Photo by Suhami Yusuf
completed. Te project was imple-
mented to meet the water supply
demand in Selangor, Kuala Lumpur
and Putrajaya until 2025.
Apart from Langat 2, Engtex is
also targeting the huge pipe replace-
ment market of about 43,890km of
asbestos cement (AC) pipes nation-
wide. Te frm estimates the value
of three million tonnes of pipes to
be RM10 billion. Comparatively, the
Malaysian Water Association has
estimated a fgure beyond RM20
billion to replace the AC pipes or
RM500,000 per km, which includes
laying work.
We dont concentrate solely on
Langat 2. Te piping replacement
market is much bigger than Langat
2, said Khoo.
For instance, he sees oppor-
tunities for Engtex to replace the
ageing piping system that will con-
nect to the Langat 2 plant once it
is completed, adding that ageing
pipes cannot sustain the higher
water pressure from the outfow
of treated water from Langat 2.
Leakage of treated water due
to ageing AC pipes and infrastruc-
ture problems, according to Eng-
tex, accounts for more than 75% of
non-revenue water (NRW), which
is water that is produced and lost
in the system before it reaches con-
sumers. Last year, nationwide, NRW
rose to 36.6% or about 5.69 billion
litres a day from 36.4% in 2012.
Engtex closed three sen or 1.6%
higher to RM1.91 last Friday, giv-
ing it a market capitalisation of
RM374.14 million.
Parkson takes over management
of Maju Junction Mall
Group, which is af liated to Abu
Sahid. Maju Groups website stated
that ASM Properties Sdn Bhd owns
and operates the 33-storey of ce
block-cum- retail building.
A search with the Companies
Commission of Malaysia revealed
that Abu Sahid owns all but one
share in ASM Properties, which has
an issued capital of RM10 million.
It is unclear why Abu Sahid has
decided to pass on the management
of the mall to another firm after
managing it for 12 years. However,
players said it may have to do with
the performance of the mall.
ASM Properties made a net proft
of RM4.21 million for the fnancial
year ended Dec 31, 2013 (FY13)
compared to a net loss of RM9.79
million the previous year. However,
revenue fell 11.49% to RM19.27 mil-
lion from RM21.77 million in FY12.
Te company managed to narrow
its accumulated losses to RM48.99
million in FY13 from an accumulat-
ed loss of RM53.19 million in FY12.
As at Dec 31, 2013, ASM Prop-
erties total assets were RM226.92
million and total liabilities stood
at RM251.34 million, out of which
RM251.02 million were current li-
abilities.
Industry experts said having a
brand like Parkson will give Maju
Junction Mall a boost as it will be
able to lure in a bigger crowd.
In Malaysia, Parkson Holdings
has undertaken several corporate
exercises this year.
Two months ago, it announced
the sale of KL Festival City Mall for
RM349 million in cash to Festival
Mall Sdn Bhd and AsiaMalls Sdn
Bhd, citing its intention to focus
on developing larger-sized malls to
drive the groups department store
expansion plans. Parkson made a
gain of RM110 million from this
disposal.
It is currently building a new
mall, which it will own and oper-
ate in Melaka. Said to have some
one million sq ft of space, the mall
will be ready in 2016 and will likely
be named Lion City.
KUALA LUMPUR: Based on
newsflow and corporate an-
nouncements last Friday, the
following stocks that may gar-
ner interest today are OCK Group
Bhd, Perak Corp Bhd,Sime Dar-
byProperty Bhd, Chemical Com-
pany of Malaysia Bhd (CCM),
Lembaga Tabung Haji (LTH)and
Prolexus Bhd.
OCK Group Bhdannounced
that theSecurities Commission
Malaysia (SC)had approved its
proposed transfer from the ACE
Market to the Main Market of Bur-
sa Malaysia.
It said the SC had also approved
the application for the proposed
lifting of the moratorium on OCK
shares held byAliran Armada Sdn
Bhd, Ooi Chin Khoon, Abdul Halim
Abdul Hamid, Low Hock Keong,
Chang Tan Chin and Chong Wai
Yew in conjunction with the pro-
posed transfer.
Te lifting of the moratorium
is to be efective on the date of
the of cial listing of OCK on the
Main Market of Bursa Malaysia,
the fling read.
Perak Corptold Bursa Malay-
sia that its board would deliber-
ate the possible withdrawal of
the proposed selective capital
reduction (SCR) and repayment
exercise that would pave the way
forPerbadanan Kemajuan Negeri
Perak (PKNP)to take the compa-
ny private at RM3.90 per share.
Te announcement came after
PKNP, together with three other
associated frms Fast Continent,
Cherry Blossom and Perak Equity
wrote to Perak Corp to request
the company to withdraw the pro-
posed SCR, subject to theSCs con-
sent. State-owned PKNP owns a
direct 52.27% stake in Perak Corp,
while the other three companies
hold 0.63%.
PKNPs request is in view
ofSime Darby Propertys (Sime
Property) a substantial share-
holder with a 6.13% stake op-
position to the proposed SCR and
repayment. Te latter had informed
Perak Corp that it would be voting
against the proposed SCR and re-
payment at an extraordinary gen-
eral meeting to be convened in
relation to the proposal.
Te board of Perak Corp will
deliberate the withdrawal letter
and decide on the next course
of action to be taken in relation
to the proposed withdrawal, on
which an announcement will be
made in due course, Perak Corp
told Bursa Malaysia in a fling.
Te fling also revealed that
Sime Propertys shareholding of
6.13% translates into 13% of the
voting shares held by the entitled
minority shareholders.
OCK Group, Perak Corp, Sime
Property may be in focus today
BY GHO CHEE YUAN
Maju Junction Mall is part of Maju
Group, which is a liated to Abu Sahid.
The Edge File Photo
6 HOME BUSI NESS
Gold to remain at current prices in 2015
Tomei says move to diversify into skincare is to exploit synergy with its existing jewellery business
BY JEFFREY TAN
BY SULHI AZMAN
KUALA LUMPUR: Jewellery re-
tailer Tomei Consolidated Bhd,
which fell into the red last year
as a drop in gold prices hurt its
gross profit margin, expects prices
of the precious metal in 2015 to
remain steady at current levels.
Spot gold is currently trading
at US$1,220 (RM4,000) per ounce.
After 12 years of a positive run,
the price fell 29.2% in 2013 over a
year before, to trade at US$1,199
an ounce in December 2013. It
averaged US$1,412.85 an ounce
in 2013.
I think after all the plunge,
gold prices should not fluctuate
too much in the next one to two
years, Tomei group managing
director Datuk Ng Yih Pyng told
The Edge Financial Daily in an
interview.
I think the price has correct-
ed substantially from its peak [in
2012]. In fact, it is below produc-
tion cost already, he said. Ng also
said foreign exchange (forex) fluc-
tuation is an important factor in
determining the groups earnings.
In terms of the US dollar,
the price [of gold] might have
dropped, but in terms of the
ringgit it might go the other way
around. [For instance,] if the ring-
git weakens, then in ringgit terms
the gold price goes up, Ng said.
For the first half ended June 30
of financial year 2014 (1HFY14),
Tomei returned to the black, with
a net profit of RM4.72 million
compared to a net loss of RM4.79
million a year ago. Revenue fell
30.47% to RM283.74 million from
RM408.09 million in 1HFY13.
It blamed the 1HFY13 net loss
to a drop in gold prices, which had
resulted in a lower gross profit
margin earned as the stocks sold
were carried at a higher purchase
price.
Tomei, which last month se-
cured the local right to distrib-
ute two Korean skincare and
cosmetics brands The Histo-
ry of Whoo and belif, plans to
openitsfirst two retail storesby
the second quarter of next year,
which willmarkthe groupsmaid-
en foray into the cosmetics in-
dustry.
Ng said it will allocate RM10
million for capital expenditure to
open 12 outlets of The History of
Whoo and 15 belif stores during
the timespanof thedistributor-
ship agreement of three years.
For starters, the group has
formed a new wholly-owned sub-
sidiary called Flawless Skin Care
Sdn Bhd to act as a distributor of
the productsfrom South Koreas
LG Household & Healthcare Ltd
[LG H&H].
Ng said the move to diversify
into skincare was to exploit syn-
ergy with its existing jewellery
business, since both businesses
are retail based.
The move i s al so part of
the groups strategy to elevate
theTomeibrand and differentiate
itself from competition.
I wont say that it is a co-
incidence for us to go into this
business [cosmetic care]. All the
while Tomei has been open to
any business opportunity, but it
must complement our [existing]
business, he said.
While it is seen as a diversifi-
cation, it is still a retail business.
You can say it is a totally different
business, but we share a lot of
common ground, he said.
Ng expects the new skincare
and cosmetics segment to start
contributing to the groups reve-
nue from FY16, even though jew-
ellery retailing will remainTomeis
key revenue contributor.
The group has set its sights on
opening the 27 new outlets as
standalone stores in shopping
malls as well as counters in de-
partmental stores, and is in the
midst of discussion with mall
and department store owners
and managers.
But we are not in the hurry [to
open stores]. The principal [LG
H&H] is realistic and understands
that brand building and presence
in a country takes time. We want
to do it right, rather than do it
fast, said Ng.
According to Ng, The History
of Whoo is the No 1 selling brand
in South Korea, while belif is one
of the fastest growing cosmetic
brands there. In Malaysia, Tomei
will position the two brands for
the middle- and middle upper-in-
come groups.
Ng noted that the group will
be able to cross-sell the skincare
Ng says Tomei will allocate
RM10 million for capital
expenditure to open 12
outlets of The History of
Whoo and 15 belif stores
during the timespanof
thedistributorship
agreement of three years.
Photo by Suhaimi Yusuf
KUALA LUMPUR: Contractor and
property developer Crest Builder
Holdings Bhd is confdent that its
soon-to-be-launched RM1.04 bil-
lion transit-oriented development
at Dang Wangi light rail transit
(LRT) station here will achieve a
good take-up rate, despite being
priced above the afordable range
amid a slowing property market.
Dubbed Te Bank, prices of its
serviced apartments housed above
the Dang Wangi LRT station are
expected to go for RM1,300 per sq
ft (psf ), and the group is targeting
50% of buyers to be foreigners.
Crest Builder executive director
Eric Yong Shang Min, however, is
unperturbed by the current prop-
erty market condition, saying it is
temporary.
At RM1,300 psf, the price is
still attractive enough to entice
buyers as the development will
be on a ready-to-move basis. Te
serviced apartments will be fully
furnished, and I am confdent that
it is an attractive value proposition
from us, he toldTe Edge Finan-
cial Dailyin an interview.
He said the projects average
selling price remains attractive
Good take-up expected for RM1.04b Dang Wangi project
compared to other surrounding
luxury properties in Bukit Bintang
and the Kuala Lumpur City Cen-
tre area, which can go for some
RM2,000 psf.
Te Bank will feature a retail
mall podium, of ce spaces and
serviced apartments, a 207-room
business hotel as well as an ex-
clusive rooftop club, and will be
launched in the second quarter of
next year, a delay from the origi-
nal launch date in the second half
of 2014.
Analysts have expressed con-
cern over the steep price tag of
the projects serviced apartments,
given the dampening property
market.
On its other transit-oriented
development at Kelana Jaya LRT
station in Petaling Jaya, which has
a lower gross development value
(GDV) of RM1 billion, Yong said
the indicative pricing psf will start
from RM1,000.
It will feature a six-level re-
tail block, serviced apartments
and office spaces on 4.95 acres
(2ha) of land and is expected to
be launched in 2016.
Both projects, in Dang Wangi
and Kelana Jaya, are a joint ven-
ture with Prasarana Malaysia Bhd,
which mark the latters maiden for-
ay into the property development
business to monetise its assets and
unlock the value of its land bank.
Prasarana being the land
owner of both Dang Wangi and
Kelana Jaya LRT stations is en-
titled to RM220 million or 21.2% of
the GDV for Te Bank development
and RM248 million or 24.8% of
the GDV for the yet-to-be-named
project in Kelana Jaya.
Yong said Crest Builder is ex-
pected to enjoy a gross proft of
20% from the total GDV of each
project.
The groups total GDV now
stands at RM4 billion, with un-
billed property sales of RM103
million.
In a report dated Oct 3, 2014,
JF Apex Securities Bhd said it is
concerned about Crest Builders
depleting construction order book
and the challenging property mar-
ket ahead, especially the impact
on its two transit-oriented devel-
opments next year.
Yong said the group is expect-
ed to win one or two construction
contracts this year as it seeks to
replenish its construction order
book that fell to RM70 million from
RM500 million in 2012.
This is reflected in its sec-
ond-quarter results ended June
30, 2014, in which the construc-
tion segment posted a pre-tax loss
of RM2.5 million on revenue of
RM22.6 million due to completion
of certain construction projects as
well as higher construction costs.
So far this year, it has bagged
one construction contract worth
RM63.88 million for the su-
per-structure works of a 36-sto-
rey serviced apartment project
in Damansara here, which was
awarded by Naza Engineering and
Construction Sdn Bhd.
Te current construction order
book of RM70 million is enough to
last us for another 18 months. We
hope to clinch one or two [more]
contracts before year-end, Yong
said.
Crest Builders total tender book
currently stands at RM4 billion,
with a targeted success rate of be-
tween 15% and 20%.
Year-to-date, shares in Crest
Builder have declined 19 sen or
12.18%. The stock closed down
1.44% to RM1.37 last Friday, giv-
ing itv a market capitalisation of
RM224.36 million.
Yong says the projects
average selling price remains
attractive compared to other
surrounding luxury properties
in Bukit Bintang and the
Kuala Lumpur City Centre
area, which can go for some
RM2,000 psf.
Photo by Suhaimi Yusuf
and cosmetics products with its
existing jewellery products as both
share the same target customer
segment.
In skincare [business], in my
opinion, if established, you can
win loyalty. [It is the] same thing
with jewellery To me, it is hard-
er to get new customers today,
but it is easier to retain existing
customers.
So, a lot of focus will be put
into it [skincare products]. If done
well, we will be able to build up
our existing customer base and
retain them, he said, adding that
Tomeiwill bring in more brands
if the two Korean brands take off.
This is especially true for la-
dies as they wont simply switch
[skincare products], said Ng.
As to why Tomei chose to dis-
tribute Korean cosmetic care
brands, Ng said this is to tap into
the Hallyu-wave (Korean wave)
that has swept much of Asia.
Tomeishares closed up 1.74%
at 58.5 sen last Friday, giving it a
market capitalisation of RM79.7
million.
In terms of the US
dollar, the price of
gold might have
dropped, but in terms
of the ringgit it might
go the other way
around. For instance,
if the ringgit weakens,
then in ringgit terms
the gold price goes up
8 HOME BUSI NESS
Johore Tin still bullish on dairy
2Q loss due to product quality issue resolved, starting new milk powder packaging factory
BY WEI LYNN TANG
BY LI EW JI A TENG
KUALA LUMPUR: Johore Tin Bhd has
put behind it the product quality
issue encountered by one of its con-
densed milk customers that cost it
some RM8 million in compensation
in the second quarter ended June of
fnancial year 2014 (2QFY14), and is
now revving up its milk powder busi-
ness and venturing into the manufac-
turing of retail packs for milk powder
as its next growth catalyst.
And it is doing so with a spanking
new RM17 million to RM18 million
factory in Teluk Panglima Garang,
Selangor.
In an interview with Te Edge Fi-
nancial Daily, chief executive of cer
Edward Goh said the product quality
issue, which resulted in the company
reporting a net loss of RM256,000 for
2QFY14 its frst quarterly loss since
the only full year loss in FY07 has
been resolved and the compensation
amount has mostly been paid up.
We paid [it] of in cash and re-
placement stocks. Tere might be
some spill-over of the compensation
incurred in our 3Q results, but it will
not appear in our 4Q results, he said.
As Johore Tin has been replacing
cargos and not invoicing them, the
cost of sales for 2QFY14 ballooned
to RM53 million, from RM46.5 mil-
lion previously, while revenue fell to
RM58.8 million from RM61.5 million.
It was actually a very simple con-
tamination through our process line,
where there was excessive water used
to wash the cans, and the cans were
not totally dry when they were passed
through the dryer. Tis resulted in
some water residue inside the cans
where some yeast was found, Goh
explained.
Regardless of this issue, Goh said
the groups food and beverage (F&B)
KUALA LUMPUR: Virtuous Invest-
ment Circle (ViC) chairman Bob
Chua (pic) is a frustrated man. Tat
is because four years after the es-
tablishment of ViC, the non-proft
group of independent angel in-
vestors which aims to grow angel
investment in the country has yet
to facilitate a signifcant deal that
it can take credit for.
Stressing the importance of an-
gel investing, he urged the govern-
ment to take ownership of the f-
nancial angel community, warning
that it being neglected could lead
to capital fight and brain drain.
Im not happy with our pro-
gress. We need funds, we need re-
sources, and we need a government
agency to take ownership. We also
need to be more structured. We
need to run it like a proper organ-
isation, and we need more people
who are full-time looking at deals,
Chua told Te Edge Financial Daily
customers to kick-start the milk
powder business.
Competitors in the condensed
milk business include Can-One
Bhds condensed milk business and
Etika International Holdings Ltds
former dairy and packaging busi-
ness, which was sold to Japans Asa-
hi Group Holdings Ltd for RM1.06
billion in April this year.
The demand [for condensed
milk] is always there. If the Japanese
did not see the demand, I dont
think they would pay that kind of
money for it, said Goh, who, to-
gether with his father, owns a 20%
direct interest in Johore Tin.
As for tin manufacturing, Johore
Tin is targeting 5% to 10% growth
revenue and proft in FY15, which
will stem from the commissioning of
a new RM15 million six-colour print-
ing machine line three months ago.
Johore Tin sells its tin cans mostly
to the local market and Singapore,
as they are bulky and have to be
mostly airfreighted. But with this
new sheet printing machine, the
group is eyeing more exports.
Tere are many can makers in
the Middle East and Africa ... they
set up manufacturing lines without
printing. We will print the fat sheets,
they will cut it, and they will form a
cylinder for their cans. Tis is what
we hope to expand our business
into, he said.
On raw materials, Goh foresees
prices of tin-plated steel which
have come down in the past months
and account for 55% to 70% of its
manufacturing costs to remain
stable until the frst half of next year.
With last Fridays closing price
of RM1.38 and FY13 earnings per
share of 22.07 sen, Johore Tin trades
at a historical price-earnings ratio
of 6.25 times.
ViC: Angel investment community largely neglected
Malaysia have suf cient fnancial
resources to step in and undertake
a big top-down restructure of the
whole ecosystem.
Its a chicken and egg situation.
If you dont have the structure, en-
trepreneurs wont know where to
look for funds and the angels wont
have enough deal fows, he said,
adding that angel investing is ex-
tremely important to a countrys
development.
If you dont see that [angel in-
vestment], you wont see innova-
tion, job creation and tax contri-
bution, he stressed.
Going forward, ViC will be look-
ing for high net worth individuals
as well as the rich second or third
generations instead of professional
angel investors.
We are targeting people our
age who wish to be involved in sexy
deals. Tey can be a grandson of
business tycoon or those who work
in a big corporation with extra mon-
ey to invest, Chua said.
vestors today, ViC is struggling to be
recognised by the Registrar of So-
cieties Malaysia (ROS) and aware-
ness about its service is very low.
It probably doesnt help that most
ViC members are media shy as they
do not like to publicise their deals
due to possible failures, said Chua.
We have seen a lot of deal fows
among us, some may lead the deal,
or we might join in as a club deal.
It is still happening. But mostly,
everyone is doing their own thing.
ViC is loosely structured and we
dont have public awareness. If a
company is looking for angel in-
vestor, it wont know where to go,
he said.
Angel investors are high net
worth individuals who provide
capital for a business start-up, usu-
ally in exchange for equity. Tey
use their personal disposable in-
come and professional experience
to invest in the growth of small
businesses. Usually, they invest
about RM500,000 to RM5 million
in a single deal.
Currently, Malaysian Business
Angels Network (MBAN), an of -
cial trade association for angel in-
vestors and angel clubs, oversees
the major fnancial angel commu-
nities, namely ViC, Pikom Angel
Chapter and Endeavour Malaysia.
But more needs to be done to cre-
ate a sustainable angel investment
ecosystem, stressed Chua, an angel
investor himself.
The association (MBAN) is
there for no purpose, really. Tey
dont even know the numbers [of
deals and members] themselves.
Tey should capture the informa-
tion about whats the size of [the]
industry and how many deals have
been concluded, he said.
We can claim that we have large
numbers in our group, but how
many members are successfully
closing deals? he asked.
Te angel investment commu-
nity is presently not regulated, but
Chua said government agencies in
segment is still looking at a net prof-
it of RM19 million to RM21 million
for the full FY14, a little higher than
last years RM20.6 million, though
below its initial target of RM26 mil-
lion to RM28 million. Net proft for
the frst half (1H) of FY14 is now at
RM4.8 million.
Its new factory in Selangor that
will house its new milk powder pack-
aging venture is being built near its
subsidiary Able Dairies Sdn Bhds
existing factory, which will also help
ease the latters space constraints.
Johore Tin via Able Dairies
Sdn Bhd and Able Food Sdn Bhd,
which it acquired in August 2011
and February 2013 respectively
manufactures and sells condensed
milk, evaporated milk, as well as milk
powder under its F&B segment. F&B
accounted for about 66% of group
revenue in FY13, with tin manufac-
turing making up the remaining 34%.
Currently, Able Food is engaging
third party packers to pack the retail
packs. Once the factory is ready in
the second quarter of next year, it
will do most of the packing in-house.
Hopefully, we can rake in revenue
of US$4 million (RM13.12 million)
to US$5 million a month once it is
fully functional, said Goh.
Te 100,000 sq ft factory on the
1.6ha tract of land has a milk packing
equipment capacity of about 2,000
tonnes per month. Like its condensed
milk and milk powder business, the
group is targeting the export market
to account for more than 80% of its
new milk powder packaging busi-
ness, mostly to the Middle East, Af-
rica and Asia.
With this new venture, we are
hoping our F&B segment revenue will
hit RM250 million and above by next
year [FY15] from RM158.3 million
in fnancial year 2013 to account
for about 70% of our estimated group
revenue of RM350 million, Goh said.
For FY13, Johore Tin reported a
net proft of RM20.6 million on rev-
enue of RM241.4 million, indicating
a net margin of 8.6%, which it hopes
to maintain.
While Goh still expects an an-
nual 25% revenue growth from its
condensed milk business, he said
the milk powder business will be
the one driving segment revenue
growth in FY15 as it is still selling
below its target.
He acknowledged there is compe-
tition from other countries, but noted
that the group has a ready market in
the condensed milk business retail
in an interview recently.
Essentially, ViC helps entrepre-
neurs fnd angel investors. It does
not take any stake in the company
but only vets business proposals.
If the idea is attractive enough, it
forwards it to a list of potential in-
vestors.
But with less than 10 angel in-
WWW.JOHORETIN.COM.MY
Johore Tin sells
condensed milk,
evaporated milk,
as well as milk
powder under its
F&B segment, which
accounted for about
66% of its group
revenue in FY13.
HOME BUSI NESS 9
Lego aims to exceed projected growth
Toy market will probably grow 10% to 15% annually over next decade, says CEO
BY JANI CE MELI SSA THEAN
KUALA LUMPUR: Buoyed by op-
timism from what it calls very hot
interest in its brand of toys from
Malaysian consumers, Lego Group
is confdent that its growth here
will exceed the projected growth
of the countrys toy industry over
the next decade.
We think the toy market here
will probably grow 10% to 15% year-
on-year. It seems our ability to grow
should exceed that, simply because
we are experiencing very hot interest
in the Lego brand from the Malay-
sian market, group president and
chief executive of cer Jrgen Vig
Knudstorp told Te Edge Financial
Daily in a recent interview.
Tat interest has been stimulat-
ed by the brands long history in
Malaysia as well as the Legoland
theme park in Nusajaya, Johor, he
said. Couple that with the expect-
ed rise in industry volume over the
next 10 years due to Malaysias rel-
atively young demographic and its
peoples rising purchasing power,
Lego should exceed that under-
lying growth in the Malaysian toy
market, he said.
In anticipation of this, Lego re-
cently set up Lego Trading (M)
Sdn Bhd, its frst of ce in Asia. Te
Southeast Asian region, in particular,
presents the group with untapped
opportunity that could fuel Legos
growth for decades to come, he said.
Te majority of Legos business
sits in the North [globally] but all the
potential sits in the South. Its bound
to come, but probably some ways of.
In developed economies, Lego is
very strong. Tere is no reason why
Lego shouldnt also be very strong in
China and across Southeast Asia, in-
cluding Tailand, Indonesia, Malay-
sia and India. Tat represents a very
big growth track for us. I do think that
this global expansion growth path
has longevity, not just for a decade
but for decades to come, he said.
At the same time, he said Lego
should not lose sight of developed
markets like the United States and
the European Union. The group
has managed to grow in these
markets thanks to new themes
such as Lego Friends, Ninjago,
the Lego Star Wars series and
the Lego Movie, to name a few.
In 2013, the groups bestsell-
ing series globally included Lego
City, Lego Star Wars, Preschool
products, Lego Friends and Lego
Legends of Chima.
It has been 10 years since Knud-
storp frst stepped into the role as
head of the Danish toymaker, which
was on the verge of bankruptcy then.
In 2004, Lego incurred a net loss of
1.8 billion Danish kroner. On taking
over, Knudstorp led a mammoth
task of cleaning up the house. Te
group fourished under his care and
has since been growing for the last
10 years.
Sooner or later Lego is going to
have a year where we dont grow
so much... But we also face a lot of
growth potential and the key driver is
global demographic development. I
think Legos long-term growth pros-
pect is a very positive one, he said.
But with multiple growth regions
in sight, Knudstorp admitted that
concern has been raised within the
organisation about the groups abil-
ity to keep up with demand. We
are almost growing faster than our
capabilities allow us to, he noted.
Presently, Lego is constructing
a manufacturing plant in Zhejiang,
China, which is set to open in 2017.
However, Knudstorp is conf-
dent of Legos ability to take on this
growth with no added stress on its
fnancials. Lego has, throughout
this growth period, been very cash
positive. We have no shortage of
cash. In fact, we are probably a very
wealthy company, he said.
Te groups cash balance for the
fnancial year ended Dec 31, 2013,
stood at 1.02 billion Danish kroner.
After accounting for borrowings,
net cash was at 731 million Dan-
ish kroner.
For Malaysians, Legos allure is
synonymous with its theme park
in Johor. But Legos operations in
Malaysia contribute only a minus-
cule portion to its group income,
as it has sold the entire theme park
business Legoland Parks to
Te Blackstone Group LP in 2005 for
375 million as part of Knudstorps
plan to refocus the company on its
core, the Lego brick.
Legoland Parks is now owned by
Merlin Entertainments plc, which is
70% owned by Blackstone and 30%
by Kirbi A/S, the vehicle of Legos
founding Kristiansen family.
Besides Malaysia, there are fve
other Legoland parks globally. Tey
are in Billund (Denmark), Germany,
Windsor (the United Kingdom), and
Florida and California (in the US).
10 STOCKS WI TH MOMENTUM
CLASSIC Scenic may appeal to yield-seek-
ing investors. The company has distribut-
ed most of its earnings as dividends since
2009. Last year, dividends totalled 8 sen
per share, translating into a yield of 6.6%.
ROE averaged 11% over the last three years.
Edge Research rates the company a 2.25
out of 3 on fundamentals. It has a strong
balance sheet with no borrowings. Net
cash stood at RM15.8 million or 13.1 sen
per share as at end-June 2014.
Classic Scenic is primarily engaged in
the manufacturing and sale of wooden
picture frame moulding and timber prod-
ucts. It is one of the largest wooden pic-
ture frame manufacturers and exporters
in Malaysia as well as regionally.
It currently operates six manufacturing
factories with a total area of 500,000 sq ft
in Rawang, Selangor. In 2012, the compa-
ny spent RM4.3 million to acquire a few
tracts of land, totalling 338,621 sq ft, likely
for future expansion purposes.
Last year, Classic Scenic saw a drop in
revenue and earnings, hurt by lower ex-
port sales to the North American market.
Sales declined 16.0% to RM52.4 million
while net profit slumped 31.2% to RM9.1
million. Positively, net margin held up
fairly well, at 17.4%.
Outlook is more upbeat going forward.
Classic Scenic is expected to benefit from
the recovery in the US market as well as
stronger US Dollar vis--vis the Ringgit.
North America remains its largest export
market, accounting for 78% of total sales
in 2013, followed by Australia, at 9.8%.
The remaining 11.8% came from domes-
tic market.
In 1H2014, pre-tax profit increased
12.0% y-o-y to RM5.5 million on the back
of 8.1% rise in sales to RM29.9 million. The
latter was underpinned by strong recovery
in export sales to North America.
Classic Scenic Berhad
IFCA MSC Berhad is yet another integrated
solutions provider that is riding high on
the GST-theme.
Since the beginning of June, its share
price has more than tripled to close at 50
sen last Friday on the back of rising volume.
Current valuations look a tad high following
this price surge the stock is trading at 4.4
times price-to-book and trailing 12-month
P/E ratio of 45.2 times. The company has not
paid any dividend in recent years.
Having said that, valuations are likely to
improve going forward. With the GST-im-
plementation date drawing near, compa-
nies would need to upgrade or purchase
GST-accredited software to adapt to the
new regulation.
So far, only 10% of IFCAs customers have
upgraded their software. This bodes well
for future demand. Indeed, net profit rose
sharply in the latest 2Q2014 results and to-
talled RM3.4 million for 1H2014 exceeding
2013s full-year earnings.
IFCAs client list includes top property
developers like Country Garden Holdings
from China, Capitaland from Singapore,
and local developer Eco World. A significant
73.6% of sales are derived from the domestic
market. Overseas sales have also improved
and the company is set to expand its foot-
print in China.
The companys underlying fundamentals
appear solid. Edge Research (refer to www.
theedgemarkets.com) rates IFCA with a
fundamental score of 2.5 out of 3. It has a
net cash of RM30 million at end-June 2014
or about 6 sen per share.
Revenue has been trending higher over
the past few years, rising from RM37.4 mil-
lion in 2010 to RM52 million in 2013. In line
with the growing revenue, profitability also
improved the company returned to the
black after posting losses in 2010-2011. IFCA
reported net profit of RM1.7 million last year.
IFCA MSC Berhad
Valuation factor * 1.20
Fundamental factor ** 2.25
Trailing 12m P/E (x) 15.12
Trailing 12m PEG (x) (0.90)
P/NAV (x) 1.53
Trailing 12M Dividend yield (%) 6.55
Market capitalisation (RM mil) 147.01
Shares outstanding (ex-treasury) mil 120.50
Beta 0.42
12-month price range 1.04-1.25
*Valuationfactor Composite measure of historical return&valuation
**Fundamental factor Composite measure of balance sheet strength
&protability
Note: Ascore of 3.0 is the best to have and 0.0 is the worst to have
Trailing 12m PEG (x) 0.10
P/NAV (x) 4.42
Trailing 12M Dividend yield (%) -
Beta 1.71
&protability
I NVESTI NG I DEAS 11
HOMERITZ Corporation Bhd is a manufac-
turer of upholstered home furniture, whose
products are exported to over 40 countries.
Te company is involved in Original Design
and Original Equipment Manufacturing, and
has its own brand of lifestyle furniture Eritz .
Revenue and profts have been steadily
growing since FY Aug 2011. In FY2013, reve-
nue increased 9.4% to RM112.9 million while
net proft increased 1% to RM15.1 million.
For the nine months to May 2014, it posted
revenue of RM93.9 million, already making
up 83.2% of FY2013s total. Net proft for the
nine months was RM15.1 million, almost
equal to full-year proft in FY2013.
Homeritz trades at 1.8 times price-to-
book and a trailing 12-month P/E ratio of 7.1
times, with above-average return on equity
(ROE) of 27.4%. Balance sheet is strong with
net cash of RM45.5 million as at 31 May 2014,
equivalent to 22.7 sen per share or 28.9% of
the current share price of 78.5 sen.
Te company has set a minimum 40%
dividend payout policy. Te frst and second
interim dividends for FY2014 totalled 4.75
sen, amounting to 26.6% of the nine-month
net proft. Interestingly, these interim divi-
dends have exceeded total dividends of 3.75
sen in FY2013, with a high yield of 6.05% so
far for 9MFY2014. On the back of rising earn-
ings, dividends are likely to increase further.
Free foat for Homeritz, which has a mar-
ket capitalisation of RM157 million, is low,
with the husband and wife team of Chua
Fen Fatt and Tee Hwee Ing holding a total
71.8% stake. With a large cash pile, it will
be interesting to see if it undertakes more
expansion or increases dividends. Inter-
estingly, it will cost Chua and Tee RM44.3
million to privatise Homeritz, which can be
substantially recouped from the companys
cash reserves.
Homeritz Corporation Bhd
TONG S
MOMENTUM
PORTFOLI O
This is a personal portfolio for information purposes only and does not constitute a recommendation or solicitation or expression of views to influence readers to buy/sell any stocks.
Portfolio started on 8 July 2014 with RM100,000.
STOCKS WI TH LI KELI HOOD OF CORPORATE EXERCI SE
P/NAV (x) 1.76
Beta 0.88
&protability
ASIAN markets closed mostly higher for
the week. Confdence was bolstered by the
recovery on Wall Street, following some
positive economic reports and solid cor-
porate earnings.
Te closely-watched Dow Jones Industrial
Average rose 216.58 points or 1.3% to close at
16,677.90 while S&P 500 gained 23.71 points
or 1.2% to close at 1,950.82 on Tursday.
Te latest report on new claims for un-
employment benefts in the US remains
supportive of an improving labor market
scenario reinforcing the view that the
worlds largest economy is gaining trac-
tion, albeit slowly.
FBM KLCI was up by 8.18 points to close
at 1,818.86 last Friday, bringing total gains
for the week to 34 points or 1.9%. Neverthe-
less, the benchmark index is still down 2.6%
for the year-to-date.
Te value of my portfolio rose by 0.92%
to RM105,535, better than the benchmark
indexs 0.45% increase. All stocks in the port-
folio ended in positive territory except for
Crescendo Corp Bhd and KSL Holdings Bhd,
which inched down marginally by 0.3% and
0.7%, respectively. Apex Equity Holdings
share price remained unchanged.
Te portfolio started on 8 July 2014 with
a capital of RM100,000. Since then, it has
outperformed the FBM KLCI by 9.4%.
Total returns for the portfolio currently
stand at RM5,535.
Homeritz Corp Bhd (+5.7%) and Willow-
glen MSC Bhd (+3.7%) were among the top
gainers last Friday.
I kept the portfolio unchanged.
12 I NVESTI NG I DEAS
I NSI DER ASI A S STOCK PI CK
AS consumption spending slows and com-
modity prices plunge, there are few bright
spots going forward. One exception is the
construction sector, which will beneft from
increased government spending.
In the recent Budget, the government al-
located some RM76 billion for infrastructure
projects which will start next year. Tese
include the constructions of the 1,663km
Pan-Borneo highway and the 56km Klang
Valley MRT-Line 2, costing RM23 billion
and RM27 billion respectively.
While the construction sector will beneft,
picking the right stocks is dif cult. Given its
solid track record in pilling and foundation
works, we believe Pintaras Jaya may be one
of the key benefciaries.
Pintaras has undertaken works for the
frst phase of the MRT project and stands a
good chance of securing jobs for the second
phase. For the frst phase, it has undertaken
bored pilling works from the One Utama to
Te Curve stations, and from the Dataran
Sunway to Section 17 stations. Earlier in
March 2014, it won the RM74 million jobs
on the iconic 118-storey Warisan Merdeka.
Despite the cyclical nature of the con-
struction sector in the past and thin mar-
gins due to fuctuating building material
costs, Pintaras has consistently delivered
solid earnings and margins, and is cash rich.
Over the past fve years, revenue increased
from RM105.7 million in FY June 2010 to
RM201.9 million in FY2014, while net proft
rose from RM20.7 million to RM54.2 million.
During that period, operating margin and net
margins averaged 33.34% and 25.35% respec-
tively. Pintaras had net cash of RM151.7 mil-
lion as at 30 June 2014, or RM0.95 per share.
Dividends totaled 6 sen in FY2014, with a yield
of 1.4%. Te stock is trading at 2.3 times book
with a trailing 12-month P/E of 12.9 times.
Pintaras Jaya Bhd
P/NAV (x) 2.27
Beta 0.86
**Fundamental factor Composite measure of balance sheet strength &
protability
14 BROKERS CALL
Malaysia Airport Holdings Bhd
(Oct 24, RM7.05)
Maintain reduce with target
price (TP) of RM6.20: Malaysia Air-
port Holdings Bhd (MAHB) via its
wholly-owned subsidiary Malaysia
Airport Cities Sdn Bhd announced
that it had exercised its right of frst
refusal in relation to TAV Havali-
manlari Holdings AS (TAV) ofer
to acquire the 40% stake in Istanbul
Sabiha Gocken Airport (ISGA) at
285 million (RM1.2 billion).
Post the acquisition, MAHB will
own 100% of ISGA. Upon the acquisi-
tion, MAHB will have to consolidate
ISGAs debt (420 million as at Dec
31, 2013), as well as raise 285 mil-
lion in funding. However, the fund-
ing details have not been fnalised.
Assuming full debt funding, IS-
GAs debt consolidation as well as
estimated acquisition-related ex-
penses of RM47 million, MAHBs
gross gearing level would increase
to 1.22 times (higher than our earli-
er estimate of 1.18 times). Total debt
level will increase to RM6.9 billion
(from RM3.8 billion currently). Te
proposed acquisition is expected
to complete in the frst quarter of
2015 (1Q2015).
Given that MAHB has to com-
ply with the debt covenant of a
1.25 times gross gearing ratio and
a gross gearing ratio of 1.0 times to
maintain its AAA rating, we believe
funding will likely be done through
a mix of bank borrowings and cap-
ital market transactions (private
placement and/or rights issue).
For now, we make no changes
to our earnings forecasts or our
reduce recommendation. Our
12-month discounted cash fow-
based TP of RM6.20 (weighted av-
NBPOL ofer document dispatched
MAHB to own 100% stake
in ISGA
Public Bank Bhd
(Oct 24, RM18.64)
Maintain buy with target price
(TP) of RM22.60: Net interest
margin (NIM) improved follow-
ing the overnight policy rate hike
in July. Non-interest income re-
mained strong although assets
under management dipped due
to the overall weak capital market.
Islamic banking income was fat.
Expenses remained under
control and cost-to-income ra-
tio reduced. Provisions remained
low despite the anticipated slow-
down in recoveries. Tis is testi-
mony to Public Banks superior
asset quality.
Retail loans remain the key
growth driver. Year-on-year
(y-o-y) loan growth stood at 10%,
still above industry levels. Asset
quality remained best in class with
non-performing loan ratio stable
at 0.65%. Deposits grew 9% y-o-y;
growth was broad-based. Capital
ratios were bolstered by its recent
rights issue. No dividends were
declared, as expected.
NIM improved in the quarter
but this may not be sustainable
as competitive pressure remains
intense. Public Bank continues
to focus on higher yielding seg-
ments such as small and medium
enterprises, current account-sav-
ings account and retail deposits
to manage NIM compression.
We believe Public Bank will
continue to deliver sustainable
earnings growth of 10% and 3%
dividend yield.
However, we trimmed fnan-
cial year 2014 to 2016 (FY14-
FY16) earnings by 2% to 3% on
account of slower growth in Is-
lamic banking and a higher ef-
fective tax rate. Other fnancial
metrics are unchanged.
Our TP is based on the Gor-
don Growth Model and assumes
8.4% cost of equity, 3% long-term
growth and 18% return of equi-
ty. Te TP implies 2.9 times of
FY15 book value. Te valuation
premium is justifed for a quality
defensive bank. AllianceDBS
Research Sdn Bhd
Another steady quarter for
Public Bank
Sime Darby Bhd
(Oct 24, RM9.48)
Maintain buy with unchanged
fair value of RM10.58: Sime Darby
has dispatched its ofer document
to the shareholders of New Britain
Palm Oil Ltd (NBPOL) in relation
to its conditional takeover offer
at 7.15 per share cash (RM39.57
per share) or for a total of 1.073
million.
Te ofer will remain open for
57 days until 5pm on Dec 18, 2014
(Papua New Guinea [PNG] time) if
received within PNG, or 1pm (Unit-
ed Kingdom time) if received within
the UK on Dec 18, 2014.
According to its announcement
last Tursday, NBPOLs independ-
ent directors have unanimously
recommended that shareholders
accept the offer, in the absence
of a superior proposal. Pursuant
to the completion of the takeover
by end-2014, Sime Darby Planta-
tion Sdn Bhds enlarged land bank
would measure about one million
hectares.
Sime Darby reiterated that
Sime Darby Bhd

FYE 30 JUN(RMMIL) 2013 2014 2015F 2016F 2017F
Revenue 46,109.0 43,908.0 49,872.1 53,939.0 58,470.5
Core net profit 3,150.2 3,029.9 3,933.6 4,323.9 4,738.3
FD Core EPS (sen) 52.4 50.4 65.5 72.0 78.8
FD Core EPS growth (%) -23.2 -3.8 29.8 9.9 9.6
Consensus net profit - - 3,195.2 3,501.1 3,833.2
DPS (sen) 34.0 36.3 41.9 45.4 45.4
PER (x) 17.5 18.2 14.0 12.8 11.6
EV/Ebitda (x) 10.8 11.7 8.7 8.1 7.4
Div yield (%) 3.7 4.0 4.6 5.0 5.0
ROE (%) 12.2 11.1 13.4 14.0 14.5
Net gearing (%) 22.7 24.3 24.5 25.4 24.2
Source: Company, AmResearch estimates
the ofer is in line with its strate-
gy blueprint to expand the land
bank of Sime Darby Plantation,
while NBPOL, with its brownfeld
assets, is expected to contribute
immediately to earnings without
the incumbent risk associated with
a greenfeld expansion.
It said the ofer is expected to re-
sult in potential synergies between
the group and NBPOL by way of
expansion into the upstream and
downstream sectors, combined
research and development facil-
ities, and new growth opportuni-
ties in PNG.
The offer will be financed via
internal funds and borrowings, the
exact quantum of which cannot yet
be ascertained as the fnal amount
will be dependent on the level of
acceptances. Sime Darby has said
it would fund 80% of the acquisi-
tion via borrowings.
We remain negative on the
proposal. We earlier cut our fair
value with a wider discount to an
unchanged sum-of-parts (SOP)
Malaysia Airports Holdings Bhd

FYE 31 DEC (RMMIL) 2012 2013 2014E 2015E 2016E
Revenue 3,548.1 4,098.8 2,873.3 3,142.2 3,399.7
Ebitda 929.7 899.7 909.9 984.9 987.4
Pretax profit 602.8 551.1 48.8 159.9 193.9
Net profit 394.2 389.1 34.4 112.9 136.9
EPS (sen) 32.6 32.2 2.8 9.2 11.1
PER (x) 20.5 20.8 239.5 73.1 60.2
Core net profit 463.1 392.8 34.4 112.9 136.9
Core EPS (sen) 38.3 32.5 2.8 9.2 11.1
Core EPS growth (%) 5.0 -15.2 -91.4 227.8 21.3
Core PER (x) 17.5 20.6 239.5 73.1 60.2
DPS (sen) 13.6 6.0 0.5 1.7 2.1
Dividend yield (%) 2.0 0.9 0.1 0.3 0.3
EV/Ebitda (x) 11.2 12.8 12.6 11.2 10.7
Chg in EPS (%) - - -
Affin/consensus (x) 0.2 0.4 0.6
Source: Company, Affin Hwang estimate
erage cost of capital 4.9%; terminal
growth rate 5.1%) is also intact.
Derating catalysts include: i)
earnings dilution from poten-
tial capital exercises, ii) potential
downgrade in MAHBs AAA rating,
and iii) softer-than-expected traf-
fc growth in the 1Q2014 for Ma-
laysia operation and iv) earnings
downgrade ISGA recorded a net
loss of 55 million in 2013. Af n
Hwang Investment Bank Bhd
Public Bank Bhd

FYE DEC (RM MIL) 2013A 2014F 2015F 2016F
Pre-prov. profit 5,655 6,107 6,822 7,582
Net profit (Pre ex.) 4,082 4,458 4,986 5,527
EPS (sen) 115.6 114.8 128.4 142.4
EPS pre ex. (sen) 115.6 114.8 128.4 142.4
EPS gth (%) 5 (1) 12 11
EPS gth pre ex. (%) 5 (1) 12 11
PE (X) 16.1 16.2 14.5 13.0
PE pre ex. (X) 16.1 16.2 14.5 13.0
Net DPS (sen) 52.0 55.0 58.0 63.0
Div yield (%) 2.8 3.0 3.1 3.4
ROAE pre ex. (%) 21.3 18.6 17.2 17.3
ROAE (%) 21.3 18.6 17.2 17.3
ROA (%) 1.4 1.4 1.4 1.4
P/Book value (x) 3.2 2.6 2.4 2.2
Source: Company, AllianceDBS, Bloomberg Finance L.P.
value. We deem the high valua-
tion at 22 times of financial year
2015 forecast consensus earnings
and the premium to be paid for
NBPOL as having an offsetting
effect on the unlocking of value
from the potential listing of the
auto division.
Nonetheless, we do acknowl-
edge that the value propositions
ahead would depend largely on
what synergies and additional ben-
efts Sime Darby could derive from
the acquisition.
We maintain buy, with an un-
changed fair value of RM10.58 per
share based on a 15% discount
to our SOP value of RM12.45 per
share. Te stock remains a ben-
eficiary of any upward trend in
crude palm oil prices. AmRe-
search Sdn Bhd
ABDUL GHANI ISMAIL
BROKERS CALL 15
Cahya Mata Sarawak Bhd
Oct 24, (RM4.15)
Maintain buy and sum-of-parts-
based target price of RM5: Last
week, Cahya Mata Sarawak (CMS)
participated in Invest Malaysia
Hong Kong 2014 (IMHK 2014),
which was jointly organised by
Bursa Malaysia and RHB Invest-
ment Bank Bhd. Te groups meet-
ing slots were well attended by
both new and existing investors.
The key topic of discussion
with the management of this Sar-
awak-based conglomerate was its
growth prospects moving forward.
This was especially after CMS
turnaround in late 2010. Inves-
tors were generally convinced by
its outlook, driven by the initiatives
rolled out in the Sarawak Corridor
of Renewable Energy (Score) eco-
nomic region.
Meanwhile, the frst two fur-
naces of CMS 20%-owned OM
Materials (Sarawak) (OMS) smelter
were just commissioned. We ex-
pect Phase 1 of the OMS project
to reach full commissioning by
the end of the second quarter of
2015. Hence, it will be the main
earnings driver for fnancial year
2015 (FY15) while other divisions
ought to indirectly beneft from the
developments at Score.
Phase 2 of OMS is currently
on the drawing board, with con-
struction possibly beginning in the
second half of 2015 (2H15). Tus,
its contribution can be expected
from FY16 onwards. CMS Ma-
laysian Phosphate Additives Sdn
Bhd project is also progressing
well while 51%-owned Samalaju
Property Development Sdn Bhd
may offer some upside. CMS is
also in the process of installing a
brownfeld one million tonne per
annum (transaction payment ac-
quisition) grinding plant next to
its clinker facility to meet grow-
ing demand from 2H16 onwards.
BII reports weak numbers
Cahya Mata continues
to ride on Score
Hua Yang Bhd
Oct 24, (RM2.38)
Maintain take proft with tar-
get price of RM1.79: Hua Yangs
net proft for the second quar-
ter of financial year 2015 end-
ing March (2QFY15) of RM26.3
million came in within our and
market expectations, making up
50% of our and consensus annu-
al forecasts. Sales in 2Q showed
a marked improvement of 34.4%
quarter-on-quarter driven by the
more resilient township segment,
specifcally from Pulai Hijauan,
Skudai in Johor, and Bandar Uni-
versiti Seri Iskandar, about 35km
south-west of Ipoh, Perak, as well
as Sentrio Suites in Desa Pandan,
Kuala Lumpur. Net margins im-
proved by one percentage point
to 19% for the quarter.
Total sales clinched in the frst
half (1H) of FY15 were RM192.2
million or 43% of our estimates.
We expect sales for 2HFY15 to
pick up from new launches such
as Cube@One South, Seri Kem-
bangan, Selangor (small of ce/
home of ce or SoHo) and Cit-
yWoods, Johor Baru, (serviced
apartments), launched in Sep-
tember this year. We expect the
current unbilled sales of RM757
million to increase further on the
back of RM1.1 billion worth of
new launches in FY15.
Our target price of RM1.79
is based on a blended historical
price-to-book value of 1.0 times
and price-earnings ratio (PER) of
5.5 times. We are positive on the
approved issuance of sukuk mu-
rabaha that totalled RM250 mil-
lion, which could be drawn down
over a two-year period, for future
potential land acquisitions.
BIMB Securities Research, Oct 24
Hua Yang still delivering
Malayan Banking Bhd
Oct 24 (RM9.70)
Maintain outperform with a tar-
get price of RM11.20: Bank Inter-
national Indonesia (BII) reported
a weak set of results with earnings
for the frst nine months of fnan-
cial year 2014 (9MFY14) plunging
69% year-on-year.
Te sharp decline in proft after
tax of 69% can be attributed to: (i)
mediocre income growth of 4%;
(ii) higher operation expenditure
(opex) of 15%; and (iii) higher loan
loss provision of 153%.
Net interest margin (NIM) fell
43 percentage points (ppts) on
the back of rising cost of funds.
Loan-to-deposit ratio (LDR) surged
to 94% (up 5ppts) as loans grew
at a faster clip against deposits at
14% and 7%,respectively. To note,
loan growth so far is below man-
agements target of 16% to 17% for
FY14.
With an elevated opex due to a
sharp increase in general and ad-
ministrative expenses in the second
quarter (2Q) of FY14, cost-to-in-
come ratio (CIR) spiked up to 65%
(up 2ppts).
Asset quality continues to slide
given that: (i) gross impaired loan
ratio increased to 2.5%; (ii) loan-
loss coverage dropped to 48%
(down 20ppts); and (iii) credit
charge ratio rose to 2% (up 1ppt).
Annualised return on equity fell
to 3.5% (down 10ppts) while reg-
Malayan Banking Bhd

FYE DEC (RMMIL) 2013A 2014E 2015E
Net interest income 9,585.3 10,177.9 11,290.2
Islamic Banking Inc. 2,810.2 3,254.0 3,752.6
Non-interest income 6,142.9 6,712.9 7,283.0
Total income 18,538.4 20,144.8 22,325.7
PBT 8,869.6 9,404.4 10,613.0
Net profit (NP) 6,552.4 6,680.6 7,539.2
Consensus NP 6,734.6 7,421.5 -
EPS (sen) 75.8 76.6 86.4
EPS growth (%) 4.3 1.0 12.9
DPS (sen) 53.5 54.0 60.0
BV/Share (RM) 5.2 5.5 5.8
ROE (%) 14.9 14.2 15.3
PER (x) 12.9 12.7 11.3
Price/NTA (x) 2.2 2.1 2.0
Price/Book (x) 1.9 1.8 1.8
Dividend yield (%) 5.5 5.5 6.1
Source: Kenanga Research
Cahya Mata Sarawak Bhd

FYE DEC (RMMIL) 2012 2013 2014F 2015F 2016F
Total turnover 1,203 1,418 1,605 1,739 1,752
Reported net profit 137 175 206 271 321
Recurring net profit 137 175 206 271 321
Recurring net
profit growth (%) 4.3 28.3 17.4 31.5 18.4
Recurring EPS (RM) 0.14 0.17 0.20 0.26 0.31
DPS (RM) 0.04 0.06 0.06 0.08 0.09
Recurring PER (x) 29.8 23.6 20.5 15.7 13.3
P/BV (x) 2.76 2.53 2.36 2.13 1.92
P/CF (x) 18.6 16.9 18.3 13.6 12.9
Dividend yield (%) 1.0 1.4 1.5 1.9 2.3
EV/Ebitda (x) 11.2 8.3 8.6 7.5 6.7
Return on average
equity (%) 9.4 11.2 11.9 14.2 15.2
Net debt to equity (%) net cash net cash net cash net cash net cash
Our vs consensus
EPS (adjusted) (%) - - 0.0 4.2 23.4
Source: Company data, RHB
Investors expectations for CMS
huge cash pile are high. Most be-
lieve this allows the group to take on
projects with attractive returns that
may arise from Score or other op-
portunities. Tese would eventually
lift CMS future earnings potential.
With that, we maintain our buy
rating on CMS and target price of
RM5, which is derived from a sum-
of-parts valuation methodology.
RHB Research Institute
Hua Yang Bhd

FYE MAR 31 (RMMIL) 2012 2013 2014 2015E 2016E
Turnover 306.4 408.7 509.9 661.6 813.7
Ebit 73.3 95.4 113.4 136.5 173.3
Pre-tax profit 72.5 95.3 112.4 135.9 172.9
Net profit 53.0 70.5 82.2 102.0 129.6
EPS (sen) 20.1 26.7 31.1 38.6 49.1
PER (x) 11.5 8.6 7.4 6.0 4.7
DPS (sen) 15.0 13.3 12.0 14.9 18.9
Div. yield (%) 6.5 5.8 5.2 6.5 8.2
NTA/share (RM) 0.92 1.56 1.53 1.44 1.70
Margins
Ebit margin (%) 23.9 23.4 22.2 20.6 21.3
Pre-tax margin (%) 23.7 23.3 22.0 20.5 21.2
Effective tax rate (%) 26.3 26.1 26.9 25.0 25.0
ROE (%) 20 21 21 27 31
ROA (%) 12 11 10 12 14
Net gearing (x) 0.3 0.3 0.6 0.6 0.6
Growth ratios
Turnover (%) 62 33 25 30 23
Ebit (%) 107 30 19 20 27
Pre-tax profit (%) 112 31 18 21 27
Net profit (%) 112 33 17 24 27
Source: BIMB Securities
ulatory capital ratios were stable.
Earnings declined 98% because
income contracted 8% while loan
loss provision increased 107%. LDR
was fat at 94% as loans and depos-
its declined in tandem (down 2%).
CIR fell 9ppts given stricter cost
management.
Credit charge ratio increased to
3.1% from 1.5%, signalling a slight
deterioration in asset quality.
Intense competition for deposits
will continue to compress NIM as
funding cost increases.
Rising infation along with high-
er cost of borrowing may further
exert pressure on asset quality.
Loan growth may be tepid going
forward given uncertainties over
the countrys policies as businesses
and consumers adopt a wait-and-
see approach before investing in the
future. Kenanga Research, Oct 24
CMSs cement plant in Kuching, Sarawak.
16 HOME
Enough with
name-calling,
says Muslim NGO
Ikram: Strong two-
party system will
beneft Malaysia
KUALA LUMPUR: Te president
of a Muslim non-governmental
organisation (NGO), Pertubuhan
Ikram Malaysia (Ikram) has urged
Malaysians to stop calling non-Ma-
lays or non-Muslim citizens immi-
grants or intruders.
Its president Dr Mohd Parid
Sheikh Ahmad instead called upon
all citizens to focus their eforts in
instilling respect and understanding
among the diferent races in Malaysia.
How can the non-Malays and
non-Muslims, who helped develop
this nation with all their heart and
soul, be called pendatang (immi-
grants) and penceroboh (intrud-
ers) when this country belongs to
them too?
Name-calling such as this in-
furiates the non-Muslims, as their
loyalty to the country is being ques-
tioned [when] they are stigmatised
as immigrants and intruders, said
Mohd Parid.
He said this in his speech to
about 2,500 Ikram members from
across Malaysia during the NGOs
annual general assembly at the
Tan Sri Jefrey Cheah Complex in
Subang Jaya on Saturday.
Another Muslim NGO, Ikatan
Muslimin Malaysia (Isma) had pre-
viously courted controversy when its
president claimed on May 6 that the
Chinese in Malaysia were intruders.
A Gerakan member had respond-
ed to the issue by announcing that
all Malaysians, including the Malays,
were pendatang, during the partys
annual conference on Oct 19.
Tis prompted Isma to retort that
Malays were instead perantau (trav-
ellers), and not immigrants.
If he was referring to the Malays
who come from Sumatra, Sulawesi
and Borneo, he cannot call them
pendatang.
Malays who move from that
area are referred to as perantau,
Isma vice-president Muhammad
Fauzi Asmuni had said on the
groups website last Friday.
Ikram on Saturday disagreed,
saying the suspicions and doubt
sown among the races by certain
groups were threatening the har-
mony and love that had been nur-
tured all this while.
Not only will it jeapordise the
unity that is so important to our na-
tions development, but it can also
afect eforts to create peace, un-
derstanding and dialogue among
the races. He said such suspicions
will also afect the spread of Islam
in a multicultural society, Mohd
Parid told fellow activists.
Explaining why Ikram is part of
the Negara-Ku movement, he said
that it was to encourage all Malay-
sians to view Islam more positively.
We must encourage dialogue
among the races and religions, and
make eforts to bring peace and
understanding among the races
in such a diverse society.
Ikram will not allow the polar-
isation of races to continue in this
country. It benefts no one when
we should be focusing our atten-
tion on nation building, he said.
According to Mohd Parid, the fuel-
ling of tensions using issues of race
and religion would create misunder-
standing over the dakwah (preach-
ing) eforts among Muslims here.
Islams image as a religion that
is peaceful and focused on dialogue
must be maintained, and we must
stamp out the use of threats and
[remove] the Sedition Act, he said.
Te Malaysian Insider
Focus on instilling respect and understanding among the races
KUALA LUMPUR: Saying that a
two-party system will create a health-
ier and fairer political system, Per-
tubuhan Ikram Malaysia (Ikram) is
working on strengthening its emer-
gence in Malaysia.
Ikram president Dr Mohd Parid
Sheikh Ahmad (pic) said a two-party
system is benefcial for a multi-eth-
nic and multi-religious country like
Malaysia.
Both parties should comprise
strong coalitions and be able to com-
pete in a clean, healthy and fair man-
ner, Mohd Parid said during Ikrams
general assembly on Saturday night.
Ikrams leadership feels respon-
sible [for creating] a change in the
political scenario in Malaysia to
create a healthier and fairer politi-
cal environment, he said.
Tis was why, Parid said, Ikram
was determined to strengthen the
democratic system in Malaysia by
promoting the system that encour-
aged checks and balances.
Abuse and monopoly of power
by any party must be challenged,
hence a two-party system, where
each keeps an eye on the other,
he said.
Malaysia has seen a two-party
system taking shape since 2008
when Pakatan Rakyat denied Ba-
risan Nasional a two-thirds majority
in the general election. DAP, PAS
and PKR have combined success-
fully in consecutive general elec-
tions (2008 and 2013) by winning
not only urban votes, but also in
traditional Barisan Nasional strong-
holds.
In last years 13th general elec-
tion, Pakatan won an unprecedented
52% of the popular vote.
However, the Pakatan ties were
recently tested when the Kajang
move was opposed by PAS lead-
ers. It also caused a split in PAS
because of diferences of opinions
between the main components in
the Islamist party.
Matters were not helped by DAP
leaders putting pressure on PAS,
especially in light of a proposal to
implement hudud in Kelantan.
KUALA LUMPUR: School bus operators have decided to drop their
plan to collectively increase school bus fares next year, in view of a
warning issued by the Malaysia Competition Commission (MyCC).
Malaysian School Bus Association Alliance (GPBSM) president
Mohd Rofq Mohd Yusof said that it respects the decisions of the
MyCC and Land Public Transport Commission (SPAD) on the matter.
MyCC had recently warned school bus operators against price-fx-
ing, after SPAD decided early this month to deregulate fares due
to rising costs.
Mohd Rofq, however, expressed concern over the possible repercus-
sions as there were no proper guidelines for bus operators to work on.
He said following this latest development, there have been a
number of complaints from school bus operators who were con-
fused by how much to increase their fares.
Te alliance is now leaving it to them to decide on this with
a condition that everything needs to be discussed between them
and the parents, he told Te Malaysian Insider.
He said the price hike was unavoidable and would defnitely
take place early next year as the last increment was done in 2009.
Te fuel price has gone up many times since 2009 but the
school bus fare remains the same. So, it is high time for a new fare
structure, said Mohd Rofq.
Currently, the fag-of rate for school buses is at RM27.43, with
RM2.02 for every subsequent kilometre.
Tose operating in rural areas can charge RM20.61 for the frst
kilometre and RM2.02 per subsequent kilometre.
Some operators might take advantage of the new ruling. Tose
operating in areas where the demand is higher than supply will
defnitely take the upper hand, Mohd Rofq said.
He explained that the initial proposal of a fxed 30% increase
was done to ensure the parents would not be burdened by the hike.
GPBSM is a body representing some 10,000 school bus op-
erators out of about 13,000 school bus operators in the country.
He said GPBSMs state representatives have already been no-
tifed of the latest development and advised parents who are not
satisfed with the new increment to lodge complaints with the
relevant authorities. Te Malaysian Insider
School bus operators drop
plan to x fares
What discrimination? Guan Eng asks
critics of foreign cooks ban
BY HI MANSHU BHATT
GEORGE TOWN: Te Penang gov-
ernment insisted yesterday there is
nothing discriminatory in its move
to bar foreign workers from becom-
ing cooks at hawker stalls. Tis, ac-
cording to Chief Minister Lim Guan
Eng was because licences, which are
supposed to be owner-operated,
are granted to only lower-income
Malaysians.
He said the state has made tough
proactive decisions to preserve the
unique heritage of its street food by
prohibiting foreigners from cooking
at such premises.
How can this ruling be undem-
ocratic or discriminatory when it is
intended to protect the uniqueness
of Penang food? he said, adding
that foreign workers can assist stall
owners in other duties. Tere are no
human rights issues [about] foreign
workers being denied their right to
cook, he said in a statement.
He said workers perform their
jobs, such as cooking or washing
plates, based on orders given by their
employers. Telling foreign workers
they cannot cook in hawker stalls is
not denying their rights or depriving
them of their passion for cooking be-
cause they are indiferent, he said.
Furthermore, any culinary skills
the foreign workers acquired would
be lost because they would have to
return to their countries after a pe-
riod of time, he said.
Te ruling is to be enforced fully
in 2016 after a one-year grace period.
Penang Gerakan chairman and
former state executive councillor
Teng Chang Yeow reportedly criti-
cised the move as a political stunt,
saying the DAP-led state government
was trying to portray itself as being
more Penangite than Penangites
themselves.
In an opinion piece published
in Te Malaysian Insider yesterday,
reader CD Wan said the states poli-
cy appeared to contradict the DAPs
vision, which includes establishing
a peaceful and prosperous social
democracy grounded on universal
moral values and ofering equal ac-
cess and opportunity.
Guan Eng said the state under-
stood the opinion of those who want
market forces to determine the hawk-
er business where indiferent foreign
workers can serve lousy food. How-
ever, food is uniquely important in
Penang, where it is rated as the best
in the world [and] it is one of the
main, if not the main attraction for
tourists, he said.
He said the state will not allow the
tourism industry to be jeopardised
by foreign cooks. He added that the
state is pleased that Trip Advisor,
the international travel website, has
placed Penang as the most afordable
Malaysian island, and the ninth-most
afordable in Southeast Asia, in its re-
cent second annual TripIndex Island
Sun report. Te Malaysian Insider
Hawker food is one of Penangs draws and Guan Eng will not alllow it to be
jeopardised by foreign cooks. Photo by The Malaysian Insider
HOME 17
Figure out why support is down
BY ELI ZABETH ZACHARI AH
BY MOHD FARHAN DARWI S
BY ANI SAH SHUKRY
KUALA LUMPUR: Political analysts
have rubbished Selangor Umnos
claims the Chinese are to blame for
the declining support for Barisan
Nasional (BN) in the state, saying the
coalition should look deeper into its
own shortcomings before taking a
simplistic approach. Merdeka Center
executive director Ibrahim Suf an
said the low support for BN is far
from an ethnic issue, pointing out
that the recent reduction in fuel sub-
sidy, which led to a 20 sen increase
in pump prices, is a signifcant factor.
Te cut in fuel subsidy has a deep
and lasting efect on voters. Studies
done before the 12th and 13th general
elections showed that such measures
shift political support for the party,
Ibrahim told Te Malaysian Insider.
Every time the government increases
petrol prices, there is a reduction in the
prime ministers popularity, he said.
Analysts rubbish Selangor Umnos claims that declining Chinese support to blame
Ibrahim was commenting on a Se-
langor Umno leaders contention that
the Chinese were behind a move-
ment to spread hatred for BN, which
had resulted in the communitys
decline in support for the coalition.
Responding to the fndings of the
latest Universiti Ma laya Centre for
Democracy and Election (UMcedel)
survey, Selangor Umno deputy chair-
man Datuk Abdul Shukor Idrus said
the Chinese are extreme in their
support for Pakatan Rakyat. I can
see they are behind a movement to
hate BN. I can see that the Chinese
really hate BN, Shukor had said.
Te UMcedel survey, carried out
three days after Mohamed Azmin Ali
was sworn in as the Selangor menteri
besar, revealed that support for Pa-
katan in Selangor had surged to 43%.
However, support for BN declined
to 20%, while 28% said they support
neither coalition and another 9% re-
fused to respond. A previous survey
by UMcedel in May this year showed
that support for Pakatan was at 35%
while support for BN was 25%.
Independent pollster Merdeka
Center is also in the process of col-
l ecting the results of a similar survey
done nationwide, Ibrahim said, add-
ing that so far, the results seem sim-
ilar to those of the UMcedel survey.
It will be out sometime this
coming week. In many ways, the
result seems similar but it will show
the national efect on BNs support
and popularity, he said.
Ibrahim noted that the spike in
support for Pakatan was also be-
cause of the conclusion of the Ka-
jang move which ended with Mo-
hamed Azmin being appointed
Selangor menteri besar. It marked
the end of the divisive infghting in
Pakatan that was played out in the
public eye. Pakatan-leaning voters,
who were turned of by the whole
Selangor crisis, came back because
the problem subsided.
Besides that, from 2005 onwards,
Umno has been moving towards
the right end of the political spec-
trum, which is Malay nationalism
and a more conservative brand of
Islam, which has driven a wedge
between the party and non-Mus-
lim voters, he said.
Te big question is what made
these voters vote overwhelmingly for
BN in the 2004 general election and
then turn their backs on it in 2008?
The Umno they voted for in
2004 was diferent from the Umno
in 2008, following unfulflled prom-
ises, hurtful statements and misin-
terpretation of the expectations of
voters, Ibrahim said.
He urged Umno in Selangor to
fgure out why it has lost support,
reminding the party that the answer
is not as simplistic as one race com-
pletely turning its back on the party.
KUALA LUMPUR: Te governments
proposal that MyKad be used when
buying subsidised fuel by June next
year overlooks the need to minimise
leakage in public spending as well as
the urgency of larger fscal reforms,
Pakatan Rakyat leaders say.
Instead, a holistic solution is need-
ed to tackle long-standing issues,
such as tax restructuring and raising
wages, they noted.
With the implementation of the
goods and services tax (GST) in April
next year, Putrajaya should not have
lifted the fuel subsidies just yet, PKR
communications director Fahmi Fad-
zil told Te Malaysian Insider.
I have no confdence in the pro-
posal to subsidise petrol using the
MyKad, as irresponsible quarters
can still find their way around it,
for example by using other peoples
identity cards, he said.
MyKad for subsidy wont solve problems
KUALA LUMPUR: In his bid to in-
itiate a new phase of reformasi
among the countrys youth, Univer-
siti Malaya (UM) Student Council
president Fahmi Zainol (pic) now
faces the threat of suspension, and
in the long run the risk that he may
go down the same path as convicted
youth activists Safwan Anang and
Adam Adli Abd Halim.
But the 23-year-old Public Service
Department (PSD) scholarship stu-
dent is undeterred by the threats from
his university and even the prospect
of a future behind bars, if that is what
it takes to wake up Malaysians.
If they want to expel me, then
Last Tursday, Deputy Finance
Minister Datuk Ahmad Maslan said
the new petrol subsidy rationalisa-
tion will use MyKad to ensure that
only the low-income group would
continue to enjoy subsidised pet-
rol or diesel.
Fahmi said the focus should in-
stead be on reducing leakages and
promoting transparency in the ad-
ministration.
PAS Research and Development
Centre director Dr Dzulkefy Ahmad
said Putrajaya should look into man-
aging the countrys fscal responsi-
bilities instead of smaller matters,
such as fuel subsidy.
Te issue here is not the targeted
subsidy but the governments com-
mitment to increasing the peoples
income and managing leakage as
well as restructuring the tax system,
he said.
Dzulkefy added that Putrajaya
would have to pay a huge sum to
insert the details of peoples income
into their MyKad.
He said the proposal appears to
have overlooked the woes of the mid-
dle class who still sufer under the
current economic system.
Those with income between
RM4,000 and RM5,000 are still
caught in a bind, he said.
DAP national organisation sec-
retary Anthony Loke said Putrajaya
should make such announcements
only after suf cient studies have been
carried out.
Parliament should set up a com-
mittee to discuss the plan before
making any decisions, said Loke,
who is the Seremban MP.
Ahmad previously said the pro-
posal was still under study and the
Ministry of Domestic Trade, Coop-
eratives and Consumerism had re-
quested frms interested in develop-
ing the new mechanism to submit
their working papers.
He said the new system would
allow only Malaysians earning
RM4,000 and below to enjoy full
petrol subsidies.
He said the government has yet to
decide whether the subsidy would be
extended to those earning between
RM4,000 and RM12,000.
Earlier this month, the price of
RON95 petrol went up by 20 sen to
RM2.30 per litre while diesel rose
from RM2 to RM2.20 per litre. Te
ministry said the move was in line
with its subsidy rationalisation plan.
Despite the increase, the gov-
ernment will still need to spend
more than RM21 billion on fuel
RON95, diesel and LPG subsidies
for this year.
In Budget 2015, tabled on Oct
10, Prime Minister Datuk Seri Na-
jib Razak announced that RON95,
diesel and LPG would be exempted
from GST efective April 2015. Te
Malaysian Insider
Expel me if you dare, student leader tells UM
KUALA LUMPUR: Ahead of Da-
tuk Seri Anwar Ibrahims final
sodomy appeal tomorrow, Ma-
lay daily Utusan Malaysia sought
to paint a picture of an isolated
politician with no more support.
Utusan Malaysia said yesterday
that Anwar had failed to galva-
nise international support ahead
of his appeal in the Federal Court
to overturn a sodomy conviction.
Using the pseudonym Awang
Selamat, Mingguan Malaysias
collective editorial byline, said
it was clear that other countries
were not interested in interfering
in Anwars private afairs. Awang
said PKRs campaign for solidarity
for Anwar, #RakyatHakimNegara,
had also failed to garner the hun-
dreds of thousands of supporters
it was meant to attract. These
developments have made Anwar
anxious, but Awang believes he
will not give up and will do any-
thing to drag the people into his
amoral afairs.
Human Rights Watch and
other international groups have
spoken out against his prosecu-
tion, as well as Putrajayas recent
sedition blitz against opposition
lawmakers, academics, preachers
and activists. Tey say Putrajaya is
practising selective prosecution.
Last Tuesday, The Sydney
Morning Herald called Anwars
sodomy case a sham trial and
said Malaysia is moving back-
wards, even as Indonesia takes a
step forward in democracy.
In an interview with the Time
magazine last Friday, Anwar said
his chances dont look good.
Most of Malaysia does not
believe that I will get a fair trial
or a decision based on the facts
of the law, he told the US weekly.
Awang said PKRs support
for Anwar contrasts heavily with
the support PAS president Datuk
Seri Hadi Abdul Awang is receiv-
ing over his defamation suit. He
said Hadi, who also has a sepa-
rate court hearing tomorrow, had
received overwhelming support
from his people, who plan to turn
up at the Kuala Terengganu High
Court. Te Malaysian Insider
Utusan: Attempts
to raise support
for Anwar
overseas failed
go ahead. Let this be a lesson for the
public on what is going on in univer-
sities and Malaysia, Fahmi told Te
Malaysian Insider. I am willing to be
expelled, to be imprisoned, anything
for the sake of making Malaysia a
better place.
Te fnal year student in Social Ad-
ministration and Justice said he was
inspired by his professors, lecturers
and peers to take up the challenge of
leading a student movement to bring
about change. We students have to
make these sacrifces, whether we
like it or not, because Malaysia needs
to change. And the government can-
not underestimate the power of stu-
dents. Just look at the Umbrella Rev-
olution in Hong Kong and Reformasi
in Indonesia. It began with students.
Te student leader is now in trouble
with his universitys administration
for inviting opposition leader and
UM alumni Datuk Seri Anwar Ibra-
him to the campus to give a talk on
the eve of the de facto PKR leaders
sodomy appeal.
Te programme, titled 40 years,
from UM to prison, has been de-
clared illegal by UM vice-chancellor
of student afairs Professor Datuk
Dr Rohana Yusof, who said it would
damage the image of the university.
In a letter issued yesterday, Ro-
hana said from 7am today, the uni-
versity campus will be locked down
by police, who have informed the
university authorities that they will
take over its security responsibil-
ities. But the UM Student Council,
led by Fahmi, not only intends to
go ahead with the talk today, but
is using it as the platform to start a
second wave of Reformasi the
1998 battle cry protesters used to
rally around Anwar after his sacking
from the Cabinet.
Fahmi admitted that his parents
are concerned about his safety and
the possibility that his scholarship
may be revoked. Hailing from Per-
matang Pauh, Penang, he is the third
of six children, and his parents can
ill aford to pay for his tuition fees
if PSD decides to stop funding his
studies. Te Malaysian Insider
18 FOCUS
MONDAY OCTOBER 27, 2014 THEEDGE FI NANCI AL DAI LY MO
Do you know how fast
you were going, maam?
Um, I answered. I had
you at 50 miles (80km) per
hour. Te speed limit in that
tunnel is 35, he said.
Te silver-haired cop asked for my licence
and registration, then walked back toward
his cruiser. Tis was not going well.
It didnt help that at 8am, First Avenue
near the 42nd Street underpass was unu-
sually empty. (Read: he can devote his full
attention to this infraction.) Nor that I was
behind the wheel of a snarling Maserati.
I sat mute. I have a clean driving record,
thank goodness, and anyway Im not big on
hysterics. Just a heartbeat later, though, and
Of cer OMalley returned. He was smiling.
Would you look at that? Te battery on
my radar gun just died. Today must be your
lucky day, he said. Tere was a pause. Do
you mind if I look at the car?
Not at all, of cer. [Insert unnaturally big
smile here. Keep smile on face for duration
of interaction.]
He leaned far into the open window
and took it all in: the tawny leather seats,
the chocolate matte wood trim, the tiny
white-numbered clock on the dash. The
contrast stitching was a big hit.
Tings got even better after he said he could
never aford it on this type of salary. Tats
when I told him the 2015 models start under
US$70,000 (RM229,348). His face brightened.
Really?! he asked. I might be able to
get that when I retire.
Yep. Talk about a relief.
Tat sort of exchange happens when you
drive the 2015 Ghibli S Q4, the US$76,900
sport variant of the newest model from Ma-
serati and the one chosen by Neiman Marcus
as THE car to sell in its prestigious annual
Christmas catalogue.
Maseratis best-
looking model
Te Ghibli is also its most afordable
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PHOTOS BY BLOOMBERG
BY HANNAH ELLI OTT
From the garage attendant who ofered
his services as an of-hours detailer, to the
hotelier who wanted to borrow it for a quick
run around the block, everyone wants a
piece of the Ghibli. And for good reason.
With its curved snout, chiselled side body
and flleted, fashy face, the most afordable
car Maserati makes is also its best-looking.
And while its nowhere near as fast as a
Ferrari California or even as ferocious as a
Jaguar F-Type, the Ghibli flls its own little
sweet spot quite nicely: Its a relatively af-
fordable model from a luxury brand with the
practicality of a four-door sedan (yes, really)
and the cache of a coupe. If youre looking
for something a little unexpected, and you
want to spend less than US$100,000, this
could be the car for you.
Maserati frst launched the Ghibli in 1967
as an 8-cylinder, dart-like grand tourer best
suited to showing of along scenic byways and
secondary rural routes. It ran until the Kham-
sin replaced it in 1972. A second car bearing
the same name, this one a V6, ran from 1992
to 1997. Neither were bestsellers, though they
each looked fun in their own, vintage-cool way.
Todays Ghibli has a 3-litre V6 engine
paired with an eight-speed automatic trans-
mission and optional all-wheel-drive. (Buy-
ers in Europe can choose a diesel option
as well.) Base models get 345 horsepower
with 369 pound-feet of torque, but the tur-
bocharged S Q4 that I paced through New
York last week gets 404 horsepower and 406
pound-feet of torque numbers that fall
somewhere in the middle of competitors like
the US$60,000 Audi A6, US$92,000 E Class
AMG Mercedes, US$67,200 BMW 550i xDrive,
and US$70,875 Jaguar XF Supercharged.
Fuel economy is 15 miles per gallon (mpg)
in the city, 25 on the highway, for a com-
bined 18mpg that is also predictably in the
middle of the set.
Ghiblis new incarnation ofers fve operat-
ing modes (auto normal, auto sport, manual
normal, manual sport, and ICE (Increased
Control & Ef ciency), all meant to span the
chasm between urban and highway driving.
But the options are superfuous, since youll
only use the one that makes the most noise
(manual sport).
Duh. Tis car isnt the fastest thing ever
(that E Class AMG, for instance, hits 60mph
in 3.7 seconds compared to Ghiblis 4.8), nor
the most powerful (the XF Supercharged
has 470 horsepower and 424 pound-feet of
torque), but it runs well, and it sounds good.
Top speed is 175mph.
Drive the Ghibli for a day or two, and
youll notice its pleasing engine notes, the
reassuringly thick steering wheel, attentive
Brembo brakes (you can have them painted
if you pay extra), sharp steering and a cer-
tain punchy power when you press the gas
pedal. Again, its not the most memorable
model of its class Id give that distinction
to the E Class but its a solid option. Con-
sider Ghibli like a frst-string tight end at a
middling university. Its no Heisman pick,
but its fun to watch, and you might develop
some afection over the course of the sea-
son because it performs reliably with hints
of true talent every now and then.
I havent really been into Maseratis
lately, and I dont know many young urban
professionals who are. Yes, the Quattro-
porte has a certain virility as an executive
(the nice of saying very large) sedan, and
no one would decline a sunny-day ride in
the cute GranTurismo convertible. But the
brand has struggled in past years to appeal
to anyone past middle-aged, upper-mid-
dle-class males. Most of them are fanboys
anyway, rather than the coveted conquest
or cross-brand buyers. Tere wasnt much
growth there. Or dynamism.
Te traditional Maserati aesthetic shark
gills along the side and a toothy grill grin is
polarising. Friends and acquaintances who
heard I had one last week tended to ask, ten-
tatively, how it looks. Te worst feedback was
a blatant Ew. And that was from an Italian.
But Im happy to report this new ofering
is the cleanest, most charming of the group.
It has the fair of the Quattroporte but is a
foot shorter and in general looks refreshing-
ly tidy. Its nose is curved in a slight crouch,
while the rounded rear is similarly tucked,
and the sidelines undulate subtly as they
near the trunk. New this year are front and
rear mudguards that merge into a single
central face framed in LED headlights; the
signature gills along Ghiblis temples remain.
So does the radiator, whose concave scoops
evoke the historical GranTurismo and A6
GCS Berlinetta models. Its always great
when an automaker successfully draws on
its design heritage with its modern models.
One afternoon parking outside Bang
Bangs new shop down on Broome Street I
made a note to mention how short the car felt,
how easy it was to park. Ten I checked the
numbers against its competitors its actu-
ally among the longer of its class. I consider
that dichotomy a triumph of engineering.
In sum: Frameless door windows fnish
of its clean persona. Its not too much to
describe the overall look as sleek.
Inside the car keyless entry and start, du-
al-zone climate control, power sunroof and
heated front seats all come standard. Mase-
rati deliveries hit 15,400 units last year, up
148% over 2012, with Ghibli now accounting
for more than 60% of total Maserati sales.
So true believers may still balk. But there
are plenty of converts where it counts.
Tanks for your patience, maam, the
cop said as he handed back my licence.
Tat car looks good wrapped around you.
You have a good day, now. Bloomberg
The 2015 Ghibli S Q4, the US$76,900
sport variant of the newest model from
Maserati and the one chosen by Neiman
Marcus as the car of the year for its
prestigious annual Christmas catalogue.
Maserati made liberal use of the trident logo in this car, which shows up in places like the spokes of the
wheels, the brushed-steel pedals and footrests, and the front-seat headrests. Interior leather comes with
contrasting stitching on request.
FOCUS 19
apparent in the layout. An iPad-sized com-
puter screen controls navigation, engine
diagnostics, temperature, tunes, and Blue-
tooth connectivity. Dashboard controls are
all angled almost imperceptibly toward the
driver (a notion less common than you might
expect). Its all as seamless as the fawless
transmission except when the system
struggles to manage multiple tasks. On the
drive from New York City to Montauk, ad-
justing the radio while the air-conditioner
was on, for instance, caused the screen to
freeze repeatedly, an experience I anecdo-
tally confrmed with others in the industry.
Glitches like this amplify the debate sur-
rounding touchscreen safety as opposed to
the eyes-on-the-road tactile feedback that
knobs and buttons allow. If you need the
latter, this is not the car for you.
A full quarter of the parts in 650S Spi-
der are brand new, but the rest is the best
of the 12C: suicide dihedral doors and a
hardtop that retracts in 17 seconds even
while the car creeps forward (keep it under
20mph). Racing-style seats cradle shoulders
like a Saville Row suit while contrast stitch-
ing gives it that just-of-the-racetrack edge.
And three distinct drive modes normal,
British engineering excels in McLarens 650S Spider
THERES something special about a car that
unites an Upper East Side doyenne and a Puer-
to Rican skater on the same emotional plane.
Tat car should be in the movies! Mad-
ame declared in a Greta Garbo voice, her
face framed by Hermes silk and pearls. She
had walked up to admire its curves one re-
cent afternoon while the car sat parked near
70th Street.
Man, that car is dope, the skater drawled
as he rolled by, leaning forward on his wood-
en board to get a better view. Both snapped
pictures on their iPhones.
Teyre both right. And they dont know
the half of it.
McLaren introduced its US$280,000
(RM917,392) 650S Spider line as a second
act to 2011s successful 12C. Its unmistakable
swooping sidelines and gaping air intakes
mark it as a direct descendent of the lines
Formula One icons but this Spider is much
more than just an update or afterthought.
Or a watered-down racecar.
I drove the 650S Spider for five days
throughout New York: in the crowded streets
of Manhattan, through Brooklyn, and out
east over the weekend to buzz the surfers
of Montauk. Te 650S Spider boasts more
horsepower than the 12C, plus new super-ef-
ficient LED lighting, tighter tuning, and
a lightened, brightened face. Its enlarged
cooling vents inhale air like the nostrils of
a winded thoroughbred. Its carbon-fbre
backbone, proactive chassis control, and
carbon-fbre monocell body each adjust-
ed to increase downforce at high speed
lend such stability that the road becomes a
slab of magnetised iron and the car a metal
bearing gliding atop its surface.
British racing power
McLaren has forced every component of this
machine to justify its existence in a quest
to make it even lighter than the 3,033lbs
(1,376kg) 12C. (At 3,020lbs theyve succeed-
ed, if only just.)
Everything inside and out maximises
ef cient power. Tey even developed light-
weight pearlescent exterior paint (volcano
orange, aurora blue, mantis green) to shave
more weight.
Whats that Muhammad Ali mantra? Fly
like a butterfy, sting like a bee? It applies
here. You can manoeuvre the 650S Spi-
der with two fngers pressed at 10 and 2,
while you weave through traf c as lightly
as a prizefghter dodges punches. Shifting
is seamless. Braking is quick and tight. Te
Champ would be proud.
Credit the twin-turbo V-8 mid-placed
engine (641 horsepower, 500 pound-feet
of torque), new double-wishbone suspen-
sion, and Formula One-derived seven-speed
double-clutch transmission for that elegant
performance. Its 3-second 0-to-62 milesper
hour (mph0 sprint time beats the 12C, Fer-
rari F12, and Porsche 911 Turbo. Top speed
is 207mph.
But in true British fashion, the 650S Spi-
ders raw aggression is suggested but never
imposed. Philosophy in action: A specialised
brake steer system engages the cars rear
brakes during high-speed turns to man-
age traction, minimise understeering, and
control oversteering. Teres no straining
here, no screaming engine nor transmission
growling. Teres nothing so outr as that to
signal struggle.
The future inside
Once behind the wheel watch your head
with those slanting doors the hand of
McLarens F1-trained engineers is most
01
02
01. Its 3-second 0-to-62 miles per hour (mph) sprint
time beats the 12C, Ferrari F12, and Porsche 911
Turbo. Top speed is 207mph. .
02. The small, slightly square steering wheel is button-
free and feels like the kind used by arcade driving
games.
BERG
en-
was
n.
ing
up.
s a
ng-
ch,
ed,
hey
nd
gle
the
ain.
ops
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eat
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els.
ng
et I
elt,
the
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ng.
ish
to
du-
nd
se-
up
ing
s.
ere
the
ce.
ou.
rg
n
.
sport and track plus a small, squared-of,
button-free steering wheel place the lucky
driver frmly in video game territory (at least
in his imagination).
Best of the rest
Headroom inside the 650S Spider allows
much a six-foot (183cm) man will have
plenty of room for a Bedford bowler but
do remember that the non-existent rear seat
allows for no socialising past your (by-now
eternally grateful, I hope) plus-one. The
front-positioned trunk will fit one small
overnight bag; a back ledge inside will ft a
business valise or a foral bouquet. Splurge
for creature comforts like an electrically
adjustable steering column (US$1,870),
Meridian surround sound (US$4,170), and
a backup camera (US$1,400).
Additional to the parts it carried over from
12C, McLaren has upgraded others to stand-
ard rather than optional status. Pirelli P Zero
Corsa tires on skeleton-bare forged alumin-
ium wheels (19-inchers up front, 20-inchers
in the rear), ultra-light ceramic brakes, and
carbon-fbre siding and trim make it look ag-
gressive in a lean, slightly hungry type of way.
Mind the curb
Caveats do apply here for some prospective
buyers. Te car elicits an unfortunate sense
of deprivation for those disciplined enough
to maintain posted speed limits. In fact, you
might as well add a new line item in your
monthly budget for speeding tickets. It feels
masochistic to hobble such an athlete.
Whats more, the 650S Spider has ground
clearance of roughly six inches. A citys curbs
and potholes suddenly become excruciat-
ingly apparent when you drive a six-fgure
car that sits lower than a tricycle. And the
barrel-roll somersault (practically!) required
to get inside will repel those with tender
backs or short skirts. A saving grace: the
doors are extremely light and require no
more clearance than a conventionally ap-
pointed automotive.
Fuel economy runs a greedy 16 miles per
gallon (mpg) in the city and 22mpg high-
way. Tis beats larger sedans from Bentley
and Rolls-Royce but roughly equals Audis
R8 and most other supercars on the market
today. Which isnt saying much. If you want
an economic luxury car, try the Tesla.
You could, though, consider the similarly
priced 458 Ferrari, Lamborghini Aventador,
Aston Martin Vanquish, and Porsche 911 Turbo
alongside the 650S Spider. But youll get more
attention in McLaren than in any of those, even
if its painted, say, a demure grey. But you al-
ready knew that. Its part of the appeal just
ask your friendly neighbourhood dowager.
The McLaren 650S Spider starts at
US$280,225. The model we tested cost
US$325,000 because of optional sport pack-
aging and interior upgrades.
Hannah Elliott is the car columnist for
Bloomberg.
20 HOME BUSI NESS
FIVE CLASSIC YEARS... BMW Group Malaysia managing director Alan Harris (second from left) and head of corporate communications Sashi Ambi (left) handing over
the keys recently to a eet of BMW 5 Series, BMW X3 and BMW X1 vehicles to CIMB Group acting group chief executive Tengku Datuk Zafrul Tengku Abdul Aziz (third, left) and group
chief marketing and communications o cer Eendy Shahul Hamid at the Kuala Lumpur Golf and Country Club. The premium vehicles will be used as o cial cars at the CIMB
Classic 2014 from Thursday to Nov 2.
WEEK
IN FOCUS
1
Deputy Prime Minister Tan Sri
Muhyiddin Yassin (third from
left) at the launch of Chengal
House in Cyberjaya on Oct 21.
The project is undertaken by Par-
amount Corp Bhd with Universiti
Putra Malaysia (UPM) and the
Malaysian Timber Industry Board
(MTIB). Present at the memoran-
dum of understanding signing
ceremong were (from left) UPM
vice-chancellor Professor Datuk
Dr Mohd Fauzi Ramlan, Para-
mounts group chief executive
officer Jeffrey Chew, Paramount
chairman Datuk Md Taib Abdul
Hamid, MTIB director-general Dr
Jalaluddin Harun and Paramount
executive deputy chairman Da-
tuk Teo Ching Quan. Photo by
Shahrin Yahya
2
Penang Chief Minister Lim Guan
Eng (inside the excavator) at the
groundbreaking ceremony for
Penang International Dental Col-
lege (PIDC)s new college and
dental hospital complex in But-
terworth on Oct 21. Also in at-
tendance (from left) were PIDC
chief executive officer Professor
Dr J Sabarinathan, managing di-
rector Datuk Dr S Sharavanan and
Penang Deputy Chief Minister II
Dr P Ramasamy.
3
Present at the launch of Carimin
Petroleum Bhds initial public of-
fering prospectus at Pullman Pu-
trajaya Lakeside Hotel, on Oct 23,
were (from left) M&A Securities
Sdn Bhd executive director Bill
Tan, Carimin managing director
Mokhtar Hashim, Minister in the
Prime Ministers Department Da-
tuk Sri Abdul Wahid Omar, Carim-
in chairman Tan Sri Kamaruzzam-
an Shariff and executive director
Shatar Abdul Hamid.
4
The signing ceremony in Kuala
Lumpur Hilton between CSR
Zhuzhou Electric Locomotive
Co Ltd and Prasarana (M) Bhd to
order 30 sets of light rail vehicles
for the Ampang Line was held
on Oct 21. From left is Prasarana
group managing director Datuk
Seri Shahril Mokhtar, chairman
Tan Sri Ismail Adam, CSR Zhu-
zhou chairman Zhou Qinghe
and deputy general manager
Luo Chongfu. Photo by Chu
Juck Seng
5
At the PJ Trade Centre on Oct
22, MyTeksi Sdn Bhds general
manager Adelene Foo (left) said
MyTeksi targets to strengthen its
presence by expanding to small-
er towns and cities. Also pres-
ent was deputy general manager
Jaygan Fu. The company has se-
cured a combined US$90 million
(RM294.3 million) of investments
from US-based hedge funds to
date. Photo by Shahrin Yahya
6
The CIMB Fiesta Series grand fi-
nale was held on Oct 24 at the Mid
Valley Exhibition Centre in Kuala
Lumpur. CIMB Bank Bhds head
of cards, retail assets and deposits
Vipin Kumar Agrawal is seen here
flanked by CIMB Bank mascots
at the fiesta.
1
3
5
2
4
6
COMMENT 21
Bank of Mom and Dad cannot keep pace
Two-thirds of frst-time purchasers in UK now receive money from their parents when buying a home
BY NEI L CALLANAN
Institutions fuel UKs private rental sector
THERE is much anticipation for
Londons Wood Wharf develop-
ment, located at the eastern end
of Canary Wharf. For starters, it
is the frst major expansion of the
fnancial district since the 2008 f-
nancial crisis. A mixed-use project
comprising nearly fve million sq ft
of residence, of ce and retail space,
Wood Wharf will also be home to
a 57-storey skyscraper designed by
Swiss architects Herzog & deMeu-
ron, renowned for Beijings Birds
Nest Olympic stadium as well as
Londons Tate Modern.
Interestingly, the development
will also see the Canary Wharf
Groups frst foray into the private
rental sector (PRS) market, as it has
announced plans to build a 37-sto-
rey tower in Wood Wharf compris-
ing residential units that will be let
out rather than sold. Te property
developer, which plans to become
a big holder of PRS units, may also
convert fats in some of its existing
residential towers into rental units,
the Evening Standard reports.
Canary Wharf Group is the latest
of a handful of institutions getting
involved in the UKs PRS market,
which has so far been dominated
by individual buy-to-let landlords.
Earlier this year, London-based as-
set manager Criterion Capital un-
veiled plans for the countrys largest
PRS development of 1,500 new pri-
vate rental homes at the East India
Dock Estate. And M&G Real Estate,
part of Prudential investment arm
M&G, recently joined forces with
specialist developer HUB to build
152 private rental homes in West
Londons Acton.
Growing institutional interest
in PRS can be attributed to the
strong performance of residen-
tial property as an asset class in
recent years. According to prop-
erty consultants Knight Frank,
rental growth has tracked salary
earnings growth and outpaced in-
fation up until the fnancial crisis,
and this trend is expected to con-
tinue as the UK economy recovers.
According to Knight Franks lat-
est PRS investment index, average
rents for PRS residential blocks rose
2.9% in 2013, whereas their capital
values increased 6.4%. Tis brings
the average gross yield to 6.6% in the
fourth quarter of 2013, while total
return on investment was 11.3%.
Te index measures performance
of rental units in residential blocks
in the key rental markets of Lon-
don, Leeds, Bristol, Birmingham,
Glasgow and Manchester.
Factors including a severe hous-
ing shortage, exorbitant property
prices and a clampdown on mort-
gage lending since the global fnan-
cial crisis have resulted in a distinct
shift of the UKs residential property
market from home ownership to
renting as frst-time buyers strug-
gle to get onto the property ladder.
A November 2013 report by real
estate consultants Savills noted that
more than half a million households
a year have been excluded from
the property market, owing to the
efects of the 2009 credit crunch.
The rise of Generation Rent is
also being attributed to increased
labour mobility, which is fuelling
demand for rental property among
those looking for more fexibility in
their accommodation. According to
Knight Frank in its Rental Revolu-
tion 2014 report, nearly half of all
households in PRS are considered
high-income, and a third are fam-
ilies with children.
Seeing PRS as a viable way to
help provide much-needed hous-
ing, the UK government has in-
troduced incentives to encourage
more institutional involvement in
the sector. Tis includes a 1 bil-
lion (RM5.28 billion) build-to-rent
fund to provide equity fnancing for
purpose-built private rented hous-
ing,and a 10 billion loan guaran-
tee scheme.
A PRS taskforce has also been
set up to bring together develop-
ers, housing management bodies
and institutional investors to work
towards better provision of more
private rental housing. Te market
is also seeing interest from foreign
wealth and pension funds attract-
ed by the steady income stream
that residential rentals can provide
over the long term. Some, such as
Canadian pension fund Ivanhoe
Cambridge, have been investing in
existing residential blocks for years.
Others provide funding for PRS
developers and operators such as
rental property specialist frms Es-
sential Living and Fizzy Living; the
former is backed by M3 Capital
Partners, which manages US in-
stitutional funds, and the latters
investors include the Abu Dhabi
Investment Authority and Austral-
ias Macquarie Capital.
Many believe the UKs PRS mar-
ket will become more institutional-
ised in coming years, joining coun-
tries in Europe as well as the US
that have more professional lettings
markets, thanks to well-developed
institutional involvement in the sec-
tor. Tis can only be positive for both
landlords and tenants, as it helps
improve practices and standards
for the provision of better-quality
rental homes.
For investors, a strong PRS mar-
ket signifes the emergence of a new
asset class providing stable returns,
possibly through vehicles such as
real estate investment trusts. Tis is
particularly so as greater institutional
involvement leads to more build-to-
rent developments purpose-built
rental schemes such as those planned
by the Canary Wharf Group, Criteri-
on Capital and M&G Real Estates.
According to the Financial Times,
M&G is targeting a return of 7% to
9% on its residential investments.
Social policy think tank Resolution
Foundation has also estimated an
annual return of 7.2% over a dec-
ade for a notional portfolio of rental
property it is studying.
With such expectations, the UKs
PRS is certainly one sector to watch
closely.
Lim Yin Foong was founding editor
of Personal Money, a Malaysian per-
sonal fnance magazine published
by Te Edge Communications. She
is currently based in the UK.
E
ven the Bank of Mom
and Dad cant keep
pace with Londons spi-
raling property market.
Te average cost of
a home in the city has
climbed to more than 500,000
(RM2.64 million), forcing frst-time
buyers to make the largest down
payments as a proportion of their
income in at least a decade, ac-
cording to an analysis of Council of
Mortgage Lenders (CML) data by
Neal Hudson, an associate director
at Savills plc. Its also prompting
them to take out larger mortgages,
the CML said.
At almost four times income,
lending multiples for frst-time buy-
ers of average London homes are
close to the limit for many banks
after regulators last month ordered
a crackdown on risky lending. Tat
spells further fnancial pain for par-
ents, who give their children about
2 billion a year to help them get
onto the property ladder.
Young people in decent jobs
are relying on their parents just
to rent a home, never mind save
for a mortgage deposit, National
Housing Federation chief executive
of cer David Orr said. Without the
support of their parents, an entire
generation is at risk of missing out
on home ownership. And for those
who cannot rely on parental help,
the situation is even more bleak.
London home values rose 20%
in the 12 months through August.
Tat pushed the average price up to
514,000, about 46% more than before
the fnancial crisis. Which is where
the Bank of Mom and Dad comes in.
Parents contribution
Two-thirds of frst-time purchasers
in the UK now receive money from
their parents when buying a home,
double the level fve years ago, ac-
cording to the National Housing
Federation.
Te average frst-time buyer in
London borrowed 212,000 in the
second quarter, or 3.9 times their
income, compared with 3.7 times a
year earlier, the CML said. Teyre
paying 62% of their after-tax salary
to make the mortgage payments, the
highest level in six years, according to
Nationwide Building Society.
Thats despite London home
buyers having average down pay-
ments of 130% of their salary, the
most in at least a decade, Hudson
of Savills said. Te extra savings,
or money from their parents, was
needed as high loan-to-value mort-
gages were withdrawn in the after-
math of the fnancial crisis, he said.
The prospect of higher inter-
est rates in the UK is starting to
deter buyers. Mortgage approvals
for house purchases fell 10% in
September from a year earlier, the
British Bankers Association said
yesterday. Housing-market trans-
actions may have dropped 9% from
August, according to a report by
Acadata and LSL Property Services.
London, which was first to
emerge from the last UK prop-
erty slump, is seeing the biggest
drop in demand. Foxtons Group
plc, a property broker based in the
UK capital, said a sharp slow-
down in the number of homes
being sold in the city will cause
its 2014 earnings to drop. That
triggered a 20% decline in the
companys shares.
Attractive option
Many London frst-time buyers fnd
themselves relying on the Bank of
Mom and Dad, who themselves
will be feeling the pain of persis-
tently low interest rates on sav-
ings they may have, said Richard
Sexton, a director at property ap-
praiser e.surv. Moving it from a
low-interest account to invest in
property is probably an attractive
choice for many.
To increase lending, the govern-
ment introduced the Help-to-Buy
programme, which enables home
purchasers to take out a loan with
a down payment of as little as 5%
on properties valued at as much as
600,000. It also plans to make it eas-
ier for people aged 55 or older to ac-
cess their pension fund to draw down
a number of lump sums instead of
just one, which may be used to boost
payments to children for homes.
Regulators are moving in the
opposite direction, introducing
measures to limit lending. Tese
include restrictions on high loan-
to-income mortgages and a stipu-
lation that lenders turn down credit
to homebuyers who fail a stress test.
Lloyds Banking Group plc and
Royal Bank of Scotland Group plc
said this year they will limit cus-
tomers to a maximum of four times
income on mortgages of 500,000
or more to damp house price in-
fation in London.
About half of new mortgages in
London are for four times income
or more, according to an estimate
by Julian Sinclair, chief investment
officer at Talisman Global Asset
Management Ltd. Tat just shows
how stretched new mortgage lend-
ing in London is, especially relative
to incomes, said Sinclair.
Parents are giving 23,000 for
each childs frst-home purchase.
Almost 20% of parents used money
that had originally been set aside
for retirement or elderly care.

In
London, most prospective frst-
time buyers would be unable to
aford the repayments on a 90% to
95% loan to value mortgage even
with current low mortgage rates,
Hudson said.
Parts of the UK capital are al-
ready of-limits to most frst-time
buyers. About 56% of homes in
Londons best districts, including
Chelsea and Notting Hill, are now
worth 1 million or more, Marsh
& Parsons Ltd said in a report yes-
terday. Investors were the biggest
buyers of homes in prime neigh-
bourhoods, purchasing 26% of the
properties, down from a record 31%
in the previous quarter, the broker
said. Bloomberg
Filepic of homes in Chelsea. About 56% of homes in Londons best districts, including
Chelsea and Notting Hill, are now worth 1 million or more. Photo by AFP
BY LI M YI N FOONG
22 WORLD BUSI NESS
25 banks set to fail ECBs health
assessment check
Economist: Chinas 2015 growth
slowest in over 2 decades
Decrease in exports and property development main cause of slowdown
BY PATRI CK HENRY
SHANGHAI: Chinas economic
growth is expected to be at 7% in
2015 unless the central government
imposes stronger-than-expected
stimulus measures, according to
Fan Jianping, chief economist at a
state research institute.
A decrease in exports and property
development, two engines fuelling
China to be the worlds second-largest
economy, will be the main cause of a
slowing of growth, Fan, who works at
the State Information Center under
the National Development and Re-
form Commission, told an industry
conference yesterday.
Fans forecast is in line with a
median estimate of 51 analysts in a
Bloomberg News survey as Chinese
leaders have signalled they will tol-
erate a weaker expansion, leaving
the economy heading for the slow-
est full-year growth since 1990. Chi-
nese leaders will set a gross domes-
tic product (GDP) growth target of
FRANKFURT: Twenty-fve banks
are set to fail the European Central
Banks (ECB) Comprehensive As-
sessment yesterday, according to
a draft communique of the results
seen by Bloomberg News.
One hundred and fve banks are
shown passing the review, accord-
ing to the draft statement. Of the
lenders that failed, about 10 will
still face capital shortfalls they need
to plug, according to a person with
knowledge of the matter, who asked
not to be identifed because they
werent authorised to speak pub-
licly. Tat fgure is likely to change
STOCKHOLM: A Swedish compa-
ny that estimates its equipment is
behind about 25% of the bitcoins
being generated is looking be-
yond servicing unhappy clients.
KnCMiner (KnC) is expanding
its own data centre where thou-
sands of its machines mine bitcoin
and similar software by solving
complex algorithms. The shift in
focus comes after industry sales of
hardware have stopped, accord-
ing to KnC co-founder Sam Cole.
After bitcoins price collapsed
from a high of more than US$1,000
to lows of around US$300 (RM984)
earlier this month, customers
once eager to mine the digital
currency have started to ask for
their money back, Cole said. Yet
the pullback by individuals who
had hoped to grow rich in their
garages belies the potential for
companies that have built up the
scale to stick the course, he said.
Theres still going to be US$2
billion, at todays price, mined in
the next few years, Cole said in
a phone interview. Thats a lot
of cash thats up for grabs and
were going to do our best to take
a decent chunk of it.
After raising US$14 million in
venture capital, KnC is looking at
more locations in Iceland and Swe-
den as it aims to control as much as
20% of the bitcoin mining market,
compared with the 5% it mines it-
self today. Bloomberg
LONDON: Credit Suisses future
is more workmanlike than its racy
third quarter might suggest. Te Swiss
group revealed last Tursday that its
investment bank had trumped Wall
Street: fxed income trading revenue
leapt by a half year-on-year, against
US peers average mid-teens increase.
But questions linger over Credit Su-
isses ability to maintain that perfor-
mance if rates rise.
Credit Suisses quarter was a
mixed bag. Its traditionally strong
securitisation arm and emerging
markets drove the third-quarter
rise in the investment banks top
line. A 13% group return on equity is
better than most peers. But wealth
A labourer working at a construction site in Beijings central business district on Oct
21, 2014. Chinas economic growth is expected to be at 7% in 2015 unless the central
government imposes stronger-than-expected stimulus measures. Photo by Reuters
about 7% for 2015, according to 13
of 22 analysts polled by Bloomberg.
I dont rule out that we will see
on-year expansion lower than 7%
in some single quarters next year,
Fan said. He said his forecast was
based on his agencys research,
which uses Chinas industrial pro-
duction as a key indicator to the
economic growth.
Fans remarks may cool down
an improved sentiment in Chi-
nese economy as GDP expand-
ed by a better-than-forecast 7.3%
in the third quarter from a year
earlier. While the government has
relaxed home-purchase controls
and pumped liquidity to lenders,
the economy also got support from
a pickup in exports in September.
In at least six months, econom-
ic growth is unlikely to pick up re-
markably, Fan said in Shanghai.
GDP expansion in three months
from October is seen at 7.2% to
7.3%, which will lead the full-year
growth to about 7.3% as read-
ing in the fourth quarter has big-
ger weighting, he said. China set
2014 GDP growth target at 7.5%.
Bloomberg
as talks continue before the fnal
results are published at noon in
Frankfurt, said the person.
Te two-part review forms one
pillar of the ECBs efort to rekindle
confdence in the eurozone after
half a decade of fnancial turmoil.
ECB president Mario Draghi has
said banks need to fail to prove the
losses of the past have been dealt
with. After two previous European
stress tests didnt reveal problems
at lenders that later failed, the ECB
has staked its reputation on getting
this exercise right.
The numbers are consistent
with our expectations, said Alber-
to Gallo, head of European mac-
ro-credit research at Royal Bank
of Scotland Group plc in London.
Its too early to say the exercise
is credible. Te key will be to see
how much stress the strong banks
will take, and how many of them
will pass by a narrow margin. He
expects 11 banks will need to plug
capital gaps after measures already
taken this year.
To pass the Asset-Quality Re-
view, which scrutinises the asset
side of balance sheets as of Dec
31 last year, banks need common
equity Tier 1 capital equivalent to
at least 8% of risk-weighted assets.
In the adverse stress test, the pass
mark is 5.5%. Bloomberg
Credit Suisses future is mid-table drabness
BY DOMI NI C ELLI OTT
Swedish bitcoin
miner to
chase US$2b
coding prize
BY NI CLAS ROLANDER
management revenue was fat year-
on-year, with net margins falling
once again to just 25 basis points.
A global shift from ofshore to
onshore private banking is hurt-
ing. A single client pulled 1.1 bil-
lion Swiss francs (RM3.79 billion)
from its Switzerland-based business
during the quarter. Cross-town rival
UBS has gained far more in overall
assets since the pair hit crisis lows.
On the plus side, wealth man-
agement should pick up when rates
do. A 1% parallel rate rise across
developed markets would result
in an additional 500 million Swiss
francs in quarterly revenue at Cred-
it Suisse. Less positively, tighter
monetary policy typically spurs
trading in interest-rate and for-
eign-exchange products, where
Credit Suisse has hacked back. In
bond trading, Credit Suisse doesnt
even make the top seven players.
As one of the few big investment
banks not to be bailed out in the cri-
sis, Credit Suisse could have been a
market leader now. But in revenue
terms its a top three player only in
equities, where it has been losing
market share to fourth-placed JP
Morgan. And the bank aims to cut
leverage in the business further,
which may also suppress returns.
Its fne to only focus on business
areas where you can make a good
return. And like UBS, Credit Suisse
has rightly downsized its pre-crunch
ambitions to be a bulge-bracket uni-
versal bank. Reuters
India must bring down
ination to spur growth,
says adviser
NEW DELHI: India must curb
infation and the budget defcit
to revive economic growth from
near a decade low, chief econom-
ic adviser Arvind Subramanian
said. Clearing infrastructure bot-
tlenecks and improving deci-
sion-making by the bureaucracy
also are key to boosting the pace
of expansion to 8%, Subramani-
an said in an interview podcast
on the International Monetary
Funds website last Friday. He
was appointed Indias top eco-
nomic adviser last week, a post
lying vacant for a year after his
predecessor Raghuram Rajan
took charge of the central bank.
Bloomberg
GIC buys 5% stake in US
healthcare tech rm IMS
Health
SINGAPORE: Singapore sov-
ereign wealth fund GIC has
bought a 5% stake in IMS
Health Holdings, a US-listed
technology frm servicing the
healthcare sector, for an undis-
closed amount, according to
a regulatory fling, Te Straits
Times reported. GIC Private Ltd
bought common stock of IMS
Health earlier this month, ac-
cording to a Securities and Ex-
change Commission fling last
Tursday. TPG Capital owns
about 48% of IMS Health, which
has a market value of US$8.7
billion (RM28.5 billion). GIC is
ranked the worlds eighth-larg-
est fund by Sovereign Wealth
Fund Institute, with an esti-
mated US$320 billion worth
of assets.
Ho Bee Land buys London
property Covent Garden
for S$89.6m
SINGAPORE: Ho Bee Land has
bought a freehold property, 60 St
Martins Lane, in Londons Cov-
ent Garden district for 43.9 mil-
lion or S$89.6 million (RM230.4
million), The Straits Times re-
ported. 60 St Martins Lane is
a prime trophy of ce and retail
building comprehensively rede-
veloped in 2011 behind a striking
retained Portland Stone faade
totaling 36,350 sq ft, Ho Bee said
in a statement last Friday. Te
building comprises six foors of
high-quality Grade A of ce space
and a substantial retail and res-
taurant unit on the ground and
lower ground foor levels.
Saudi Sabic 3Q prot falls
4.5%, misses estimates
RIYADH: Saudi Basic Industries
Corp (Sabic), one of the worlds
largest petrochemicals groups
and the Gulfs largest listed com-
pany, reported a 4.5% drop in
third-quarter net income yes-
terday, missing analysts fore-
casts. It earned 6.18 billion riyals
(RM5.4 billion) in the quarter,
compared with 6.47 billion riyals
in the year-earlier period, Sabic
reported in a bourse statement.
Sabic, which is 70% state-owned,
attributed the fall in profts to a
drop in sales and other income,
although its cost of fnancing
was lower. Reuters
I N BRI EF
WORLD 23
Brazil votes in tight
presidential run-o
split along class lines
RIO DE JANEIRO: Brazilians
voted yesterday in a bitter-
ly-contested election that pits
a leftist president with strong
support among the poor against
a centrist senator who is prom-
ising pro-business policies to
jumpstart a stagnant econo-
my. Polls give a slight edge to
incumbent Dilma Roussef, 66,
who is seeking a second four-
year term. Her Workers Party
has held power for 12 years and
leveraged an economic boom
to expand social welfare pro-
grammes and lift over 40 million
people from poverty. But many
voters believe Aecio Neves, a
54-year-old former state gover-
nor with strong support among
upper-middle class and wealthy
Brazilians, ofers a much-need-
ed change of the guard for Latin
Americas biggest economy. A
decade of growth peaked at 7.5%
in 2010 and has fagged since
Roussef took of ce. Reuters
Iran hangs woman
at Center of Amnesty
International campaign
TEHRAN: Iranian authorities
executed a woman found guilty
of murder despite a campaign
by rights group Amnesty In-
ternational to have her sen-
tence overturned on grounds
that the investigation had been
deeply fawed. Reyhaneh Jab-
bari, 26, was hanged on Satur-
day, state-run Islamic Republic
News Agency reported, citing
Tehrans prosecutors office.
Jabbari was found guilty of kill-
ing a government employee
in 2006. She said that she had
acted in self-defence, stabbing
Morteza Abdolali Sarbandi af-
ter he tried to rape her, accord-
ing to Amnesty International.
Bloomberg
Japanese PM Abes
public support slumps
in wake of resignations
TOKYO: Public approval of
Prime Minister Shinzo Abes
government slumped after the
resignation of two high-profle
cabinet ministers last week,
according to a poll published
yesterday, adding more pres-
sure on Abe as he struggles to
turn around the Japanese econ-
omy. Japans biggest daily the
Yomiuri surveyed 1,059 people
by telephone last Friday and
Saturday and found support
for Abes government had fallen
to 53% from 62% in less than a
month. Reuters
Tunisians begin voting
in parliamentary election
TUNIS: Tunisians began vot-
ing yesterday in parliamentary
elections, four years after they
cast out autocrat Zine El-Abi-
dine Ben Ali. Tunisia has fared
better than neighbours who
also ousted their own long-rul-
ing leaders during the Arab
Spring uprisings, largely avoid-
ing their polarisation and cha-
os even though it faced similar
tensions over Islamist versus
more secular rule. Reuters
I N BRI EF
Hong Kong pro-democracy
protesters delay referendum
Anti-Occupy people stage rally
BY CHOONG EN HAN
AND CLEMENT TAN
BY AHMED A NAMATALLA
BY CHEYENNE HOPKI NS
BY ZOE SCHNEEWEI SS AND RI CHARD RUBI N
WASHINGTON: A nurse who tested negative for Ebola said of cials at
Newark Airport in New Jersey appeared confused and disorganised, and
gave her only a granola bar to eat while she was detained for more than
six hours after arriving from Sierra Leone.
In a frst-person account in the Dallas Morning News, Kaci Hickox
criticised the treatment she received after returning from an assignment
with Doctors Without Borders in the country. Hickox said she was de-
tained at the airport upon her arrival at 1pm last Friday. At the time, her
temperature was recorded at 98 degrees. Tree hours later, her temper-
ature was recorded at 101 degrees using a forehead scanner.
She said she told of cials that her skin temperature could have been
elevated because her face was fushed with anxiety and asked them to
test again using a more accurate oral thermometer. She was left alone for
another three hours without her temperature being taken again before
being transported with a police escort to a hospital.
At the hospital, after being placed in an isolation tent, an oral thermom-
eter recorded her temperature at a normal 98.6 degrees. Bloomberg
Nurse criticises Newark Airport
treatment amid US Ebola fears
ZURICH: Te number of Americans renouncing US citizenship increased
39% in the three months through September after rules that make it
harder to hide assets from tax authorities came into force.
People giving up their nationality at US embassies increased to 776
in the third quarter, from 560 in the year-earlier period, according to
Federal Register data published on Saturday.
Tougher asset-disclosure rules that started on July 1 under the Foreign
Account Tax Compliance Act, or Fatca, prompted more of the estimated
six million Americans living overseas to give up their passports.
Te US, the only Organization for Economic Cooperation and De-
velopment nation that taxes citizens wherever they reside, stepped up
the search for tax dodgers after UBS AG paid a US$780 million (US$2.56
billion) penalty in 2009. Fatca requires US fnancial institutions to impose
a 30% withholding tax on payments made to foreign banks that dont
agree to identify and provide information on US account holders. So far
2,353 Americans have renounced their citizenship this year. Bloomberg
Hundreds give up US citizenship
after tax-disclosure rules start
CAIRO: Egyptian President Ab-
del-Fattah El-Sisi said his admin-
istration is taking measures on
the border with the Gaza Strip a
day after militants killed more than
30 soldiers in Sinai.
Sisi, fanked by military com-
manders in a speech on national
television, accused external forces
he didnt identify of supporting the
deadliest attack on Egyptian secu-
rity forces in his fve-month tenure.
Te government closed the Rafah
crossing with the coastal strip until
further notice. Authorities may also
evacuate a 14km stretch along the
Gaza border that contains smug-
gling tunnels and build a city to
house its residents, state-run news
website reported, citing an of cial
it didnt identify.
Sisis remarks signal a possible
escalation in Egypts security ofen-
sive in Sinai, where attacks against
the army and police have surged
since El-Sisi led the ouster of Is-
lamist President Mohamed Mur-
si in July last year. An increased
clampdown on the border may
further strain ties between Egypt
and Hamas, the Palestinian mil-
itant group ruling the Gaza Strip
and an ofshoot of Mursis Muslim
Brotherhood group.
There will be measures on
Egypt vows Gaza
border measures
after Sinai attacks
the border area with the Strip to
deal with the root of this prob-
lem, said Sisi, who spoke with
an angry tone at times during
the brief address. While vowing
to retaliate against terrorism, he
warned of more attacks to come
in what he described as an exis-
tential battle for Egypt.
There will be measures on
the border area with the Strip to
deal with the root of this prob-
lem, said Sisi, who spoke with
an angry tone at times during
the brief address. While vowing
to retaliate against terrorism, he
warned of more attacks to come
in what he described as an exis-
tential battle for Egypt.
Ziad Akl, a senior researcher
at Al-Ahram Center for Political
and Strategic Studies in Cairo, said
closing the Rafah border crossing
indicates that the government is
de-prioritising the political rela-
tionship with Hamas and elevating
security considerations.
While Egypt helped broker a
ceasefre agreement that ended a
50-day confict between Israel and
Hamas in August, security forces
have destroyed dozens of tunnels
on the border with Gaza, which
the Palestinians say are used to
funnel essential goods. Israel says
the tunnels are also used to smug-
gle weapons. Bloomberg
HONG KONG: Hong Kong pro-de-
mocracy protesters have delayed
a planned referendum because of
diferences in the movement on the
issues to be voted on and method
of polling.
Protest leaders were due to hold
a referendum yesterday and today.
Te proposed motions were wheth-
er they should demand the govern-
ment ask China to review its Aug
31 decision to vet candidates for
the chief executive elections, and
whether they should call for an out-
side body to take charge of proce-
dures for 2016 legislative elections
and the chief 2017 executive poll.
People opposed to the movement
staged a rally on Saturday evening
in the Tsim Sha Tsui district to let
those opposed to the demonstra-
tions express their views.
You can disagree, but you can-
not just sit in the middle of the road,
said Betty Yung, 65, a retired princi-
pal who spoke on stage in Tsim Tsa
Tsui. Tis is not the right way to do
things. What if the ambulance thats
supposed to bring me to the hos-
pital ends up being stuck in traf c
because the roads are blocked by
the students?
Hong Kong Chief Executive Le-
ung Chun-ying reiterated his refusal
to resign as he attended a function
at the Hong Kong International Air-
port. Protest leaders and lawmaker
James Tien have called for him to
step down.
I will not resign, Leung said in
comments broadcast on Cable TV
yesterday. We will need to go back
to the existing legal framework to
solve Hong Kongs current issues.
Anyone who has a diferent polit-
ical view will have to go through
the legal framework and not using
illegal ways to express their views.
Hong Kongs High Court extend-
ed until today an interim injunction
banning pro-democracy protesters
from defending their barricades
as police said events were turning
chaotic.
Tung Chee-hwa, Hong Kongs
frst Chief Executive after the city
reverted to Chinese rule, last Friday
called on pro-democracy protesters
to end their street occupations or
risk damaging the citys economy.
A plan to link trading between
the Hong Kong and Shanghai stock
exchanges has been delayed be-
cause of the protest in Hong Kong,
Ming Pao reported yesterday, citing
authoritative people in Beijing it
didnt identify. Bloomberg
Anti-Occupy protesters seen with Chinese ag on Saturday. You can disagree, but you
cannot just sit in the middle of the road. This is not the right way to do things. What
if the ambulance thats supposed to bring me to the hospital ends up being stuck in
tra c because the roads are blocked by the students? said a retired principal Betty
Yung. Photo by Reuters
24
live it!
WE L L B E I N G . T H E A R T S . WI N E + D I N E . S T Y L E + D E S I G N . L E I S U R E
MONDAY OCTOBER 27, 2014 THEEDGE FI NANCI AL DAI LY MO
LOVE to sing, or watch talented singers
perform? Head to the International Medical
University (IMU) for its Choir Clubs Amazing
Voice Search the rst ever multilingual
charity singing competition to be hosted by
them. Enjoy an evening of singing and live
music by the students, who are accompanied
by piano and guitar. With prizes worth
RM2,500 for the winner, it might just be
worth your while to see the students talents
beyond the medical eld. Catch the nale
tomorrow night from 7pm to 11pm at Lecture
Theatre 2, IMU Campus, Bukit Jalil.

OKTOBERFEST hits The Ship at Jalan Sultan
Ismail in the form of some fabulous deals!
Enjoy set lunches and dinners starting from
RM32.90 and RM72.90, respectively. The sets
include a wide variety of dishes including
grilled Australian sirloin, roasted lamb, tiger
prawns, schnitzel and seafood au gratin
served with a soup, dessert and beverage.
Throughout October, it will also serve its
Mocktail of the Month priced at RM7.90.
Call 03-9058 1818 for more information and
reservations. The promotion ends on Friday.

THE Rabobank Financial Markets Outlook
2015 will take place on Wednesday from
10.45am to 1.30pm at the Double Tree Hilton,
KL. Get useful insights on market trends
with fascinating presentations by Marcel
van Doremaele (chief executive o cer of
the Singapore branch of Rabobank), Allard
Voute (manager of the International Desk
in Singapore) and Michael Every (head of
Financial Market Research, Asia-Pacic). Some
of the issues that will be covered include a
look into the global economic upturn ve
years on after the recession, the US economy
and the debate of the ongoing rate-hike
timing, as well as tracking Chinas journey to
meet its gross domestic product growth target
is it building imbalances for the future with
its easy money? To register, email to info@
mdbc.com.my with your name, company,
designation, email and contact number.
P
lumes of hairspray create a suffo-
cating fug over a group of fash-
ion models waiting to be made
beautiful in a room overlooking
Tokyos trendy Shibuya district.
A full eight hours before
Rei Hamada is set to grace the catwalk at
Tokyo Fashion Week in a designer kimono,
cofee is gulped and snacks munched be-
tween pit-stops for hair, nails and make-up.
Before I started I didnt imagine mod-
elling would be quite so hard, she tells
AFP. Te runways and photo shoots look
gorgeous but its tough. It can be a bit cha-
otic and you do need a lot of self-control.
As a conveyor belt of hair and make-
up artists work on the models, celebrat-
ed designer Jotaro Saito pops in to greet
the statuesque women carefully selected
for one of the hottest tickets of the week.
We look for models who can be kimo-
no-sexy, kimono-elegant, says the Kyo-
to-based Saito, whose eye-goggling piec-
es can cost up to US$30,000 (RM98,400)
each.
We dont want the old geisha-style. A
model must have confdence, worldliness,
and know how to express her beauty. She
has to have an awareness of her sexiness
and eroticism. Shes symbolic of the mod-
ern world, of modern style.
Hamada, 29, got her big break in the
cut-throat world of fashion after fnish-
ing runner-up at the 2007 Miss Universe
Japan pageant.
She could easily have ended up fol-
lowing a very different career path had
Personal
ASSISTANT
COMPI LED BY QUAH SU ANN
W O R K . L I F E . B A L A N C E
Hamada says she did not imagine modelling would be so dif cult
she not been spotted as a 13-year-old
whilst playing piano at a family wedding
in Kagoshima, on the southwestern tip
of Japan.
I wanted to be a kindergarten teach-
er, she says as long, fake eyelashes are
delicately glued into place to make her
almond eyes seem bigger and rounder.
I came to Tokyo when I was 18 but
it was a struggle to get work at frst. I did
think about quitting if I didnt make it pay
by about 23.
Now a catwalk veteran, she insists the
job is more complicated than it looks.
When youre young, youre just young
and pretty. But when you get a bit older
you have to think more about how to make
clothes look beautiful, she says.
People think models are like this every
day but its not true. You have to control
Japanese fashion model Rei Hamada backstage at the Tokyo Fashion Week
Ham
and
(Top) Make-up being applied on Hamada's
face hours before the show. (Right) Hamada
showcasing a US$30,000 kimono.
everything in your daily life look after
your weight, your body balance, diet, skin.
Raw octopus
I have to take care not to lose my temper
or get emotional, she adds, referring to
backstage pre-show tensions when stress
levels can rise.
I have to keep my passions in check
for the job I love. I cook healthy food to
make sure my weight doesnt fuctuate
last night I made avocado and raw octo-
pus. But one good thing about the job is
that I dont have to do my own make-up.
For some, models have a reputation
for
cen
see
con
Pea
cam
ove
the
jus
abo
loo
litt
to e
Fas
Asi
bei
she
bus
HOURS OF PREP
is Japanese models secret
PHOTOS BY AFP
live it!
25
PICK OF THE DAY
REDKENs brand new Cerall-94 promises to boost your condence with thicker and
more voluminous locks using a technology that Redken Science has discovered.
Backed by dermatologist Nicole Rogers, Cerall-94 is that rst professional solution
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the Cerall-94 range, there is the Defy system (for normal to thin hair) and the Re-
taliate system for advanced thinning hair. On the other hand, Dense FX and Texture
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ed and chemically-treated hair, the Cerall-94 product range retails from RM45 to
RM188, and can be purchased from o cial Redken salons. To locate a Redken salon
near you, call the LOreal O ce at 03-7651 8300.
Hamada modelling a creation by Japanese designers Sansai Saito
and Jotaro Saito from their 2015 spring/summer collection.
fter
in.
per
g to
ess
eck
d to
e
to-
b is
up.
on
for being a little scatty, a little unthinking.
That stereotype was reinforced re-
cently when superstar Naomi Campbell
seemingly forgot to proofread a tweet and
congratulated malaria after the Nobel
Peace Prize was awarded to human rights
campaigner Malala Yousafzai.
But Hamada says if anything, she
over-analyses things.
I get nervous about stuf, she says as
the call goes out for rehearsals.
I can be on the runway and it should
just be natural, but sometimes I worry
about what else I need to be doing. Im
looking forward to the show but Ill be a
little nervous before it starts about how
to express myself.
Hamada, who has appeared in New York
Fashion Week and in collections across
Asia, says despite the clich of models
being high-strung and temperamental,
she has never witnessed any backstage
bust-ups or hissy fts in her home country.
Teres no fghting in Japan, she says.
Tey organise everything so well to make
sure that stuf doesnt happen here.
Hamada proudly waves the fag for
Japanese fashion.
Ive been to New York, Singapore,
Hong Kong ... and Ive always thought
the Japanese ways are very subtle the
hair and make-up artists are the best in
the world. Te fashion has its subtleties
too and Japanese designers predominant-
ly think about how to make the clothes
wearable (for consumers). Te thought
that goes into it is amazing.
Saitos show is a smash hit and Ham-
ada oozes poise as she struts down the
runway, pausing at the end to let her
eyes smoulder into the middle distance.
But the moment it is over, the glam-
our vanishes and shes rushing for a taxi.
Ive got to get rid of all this make-up
and shoot of, she said. Ive got an audi-
tion. And another one after that. AFP
P
Y AFP
26
live it!
I refuse to accept other peoples ideas of happiness for me.
As if theres a one size fts all standard for happiness. Kanye West
Zen TODAY
Te overused costumes that should stay on the rack this year
Halloween wear that
SPOOK NO MORE
BY MAE CHAN
H
alloween is just around the corner.
Traditionally known as All Hallows
Eve, with origins in Celtic harvest
celebrations, the festival that was
mostly celebrated in the West before
spreading further afield, has evolved
from just mask-wearing to a legitimate excuse to
wearing anything you like.
However, there are some costumes that should
be skipped this year (forever for some). Te Edge Fi-
nancial Daily spoke to costume designer Dominique
Devorsine, who has worked on some of Malaysias
biggest musical productions, including Tunku:
Te Musical, Te Producers, Cabaret, Sinbad Te
Musical and most recently, SuperMokh and Larger
Tan Life by Dama Orchestra.
Based on her experience with clients who fock
to her each year as Oct 31 approaches, Devorsine
said Malaysians often play it too safe and pretty.
Here are some of the costumes that she deems a
tad hackneyed.
Religion and politics
Okay, there hasnt been any sightings of anyone
wearing ofensive costumes. But the designer warns
that costumes should be fun, not inciting. Anything
that borders on the sensitive, such as religion or
politics, should be avoided, or at least treated with
respect. Who can forget the gafe committed by a
certain British prince when he wore a Nazi soldier
costume to a party? Nazism is a reminder of a ter-
rible period in history that people want to forget,
pointed out Devorsine.
Witches and Count Dracula
If theres one traditional costume that is overdone,
it would certainly be that of a witch, said Devorsine.
Te other would be Dracula or just a vampire with
the faux fangs and cloak. Naming both as the most
commonly chosen costumes, our expert believes
its time to lay down the pointy hat and oversized
teeth and explore new territory. Or creatively up-
date the look with make-up.
The mask from Scream
Naming the white ghoulish mask from the 1996
Hollywood horror fick the most predictable Hal-
loween getup, Devorsine said it is a sign of lazy
efort. And who can disagree? One of the most
parodied characters in flm, the ghost-face mask
modelled after a reaper has become a cartoonish
caricature, so much so even a scythe cant redeem
its horror credentials.
Typical ghosts and pirates
Devorsine said the laziest costume she had ever
seen was a piece of black cloth over the head to
signify the angel of death. She said one should
think beyond the standard American ghost look.
In fact, New Caledonia-born Devorsine said in the
20 years shes been in Malaysia, she has yet to see
a pontianak or orang minyak costume during Hal-
loween. Maybe it hits too close to home, observed
Devorsine. Her advice is to be more specifc with
ones ideas, for example a dead bride or a creepy
doll look. As for the popular pirate costume, why
not dress it up to be scarier or creepier, rather
than trying to mimic Johnny Depp in Pirates of
Te Caribbean.
Superheroes
Thanks to the explosion of superhero films such
as Iron Man, Spider Man, Captain America and
Thor, Batmans costume is most popular costume
for men and young men alike. Superman, how-
ever, has failed to make it to the list, no thanks
to his red underwear. The other favourite from
the movies is Sith Lord from Star Wars. Her ad-
vice: If you plan to play superhero for the night,
make sure you are in good shape to pull it off.
But it is Jack Sparrow who is every mans dream
Halloween character.
Disney and animation
No prizes for guessing that everybody will want
to wear Frozen this year, including dressing their
dogs as Olaf. Apart from the yearly seasonal Dis-
ney flm and other popular animations that may
pop up in cinemas, Devorsine said that Malefcent
has been surprisingly popular with clients. As for
which heroine takes the all-time popular rankings,
it would be princess Snow White. Other in-demand
characters include Queen of Hearts and the Mad
Hatter from Alice in Wonderland.
SPORTS 27
Marquez roars to 12th win
SEPANG: Reigning world cham-
pion Marc Marquez won a sea-
son record equalling 12th MotoGP
race with victory at the Malaysian
Grand Prix yesterday.
The Honda-riding Spaniard,
who sealed his title defence in
Japan two weeks ago, had a poor
start on pole but clawed his way
back to the front to fnish nearly
three seconds ahead of runner-up
Valentino Rossi.
Yamaha rider Jorge Lorenzo
briefy held the lead early but was
reeled in to fnish third, while Hon-
das Dani Pedrosa was forced to
retire after crashing twice in his
eight laps.
Marquezs win brought him
equal with Australian Mick Doo-
hans 12 race wins from 1997 and
the 21-year-old has a chance to
own the record with victory in the
fnal race at Valencia.
Te win also sealed the con-
structors title for Honda, their 21st
in premier class racing.
Marquez will head to Valencia
on 337 points, carrying a 62-point
lead over Yamahas Italian great
Rossi. Lorenzo remains third in
the championship on 263 points
ahead of Pedrosa.
German Stefan Bradl was fourth
on a Honda, with Yamahas Brit-
on Bradley Smith ffth. Reuters
AYER KEROH (Melaka): This
sleepy little town will wake up
this weekend as mountain bikers
from around the region gather for
the sixth Shimano Burung Hantu
night race and jamboree organ-
ised by the Environment Cycling
Club (ECC) of Melaka and spon-
sored once again by Shimano.
This year, the 48km cross-coun-
try race will take riders mostly
through palm oil plantations and
rubber estates with a few hills and
technical single course trails to
keep things interesting and fun.
Te event will be launched and
fagged of by the Melaka chief po-
lice of cer Datuk Chua Ghee Lye
together with all the sponsors at
8.30pm at Dataran Sejarah Ayer
Keroh. Daric Hong will represent
Distexpress (Malaysia) Sdn Bhd,
which is sponsoring the prizes for
the lucky draw.
Hong said three professional
cyclists will try out the companys
Rabat seals Moto2
championship
SEPANG: Spaniard Esteve Ra-
bat sealed the Moto2 champi-
onship with a round to spare
at the Malaysian Grand Prix
yesterday with a third place
fnish behind winner Maverick
Vinales. Rabat takes an unas-
sailable 37-point lead in the
championship into the final
round at Valencia over second
placed Finn Mika Kallio, who
was runner-up at Sepang, over
two seconds behind a third
Kalex rider in Vinales. The
Moto3 series will head into the
final round at Valencia with
Alex Marquez, the younger
brother of MotoGP champi-
on Marc Marquez, taking an
11-point lead over Australian
Jack Miller after fnishing ffth
at Sepang behind winner Efren
Vazquez. Reuters
Dane Olesen wins in Perth
to end trophy drought
PERTH: Torbjorn Olesen of
Denmark cantered to a three-
shot victory at the Perth In-
ternational yesterday to win
his second European Tour ti-
tle after a gap of two years.
Te 24-year-old Olesen, who
had an overnight lead of
three strokes, fnished with a
one-under par 71 in the fnal
round for a total of 17-under.
Olesen, who won his frst and
only European Tour title in
Sicily two years ago, made the
turn on one-under and came
under pressure after having
two bogeys in the next three
holes to see his lead cut to
one stroke. But he respond-
ed strongly with birdies on
the 13th and 15th to restore
his advantage. Reuters
Czech Kornfeil completes
SIC racing team rider line-up
SEPANG: Czech Republic rid-
er, Jakub Kornfeil, will part-
ner Malaysian ace Zulfahmi
Khairuddin in the SIC-Rac-
ing Team next year. SIC-Rac-
ing Team team manager Jo-
han Stigefelt said Kornfeil is
a talented and experienced
rider and will be a huge asset
to the team. Stigefelt said he
is thrilled to have an oppor-
tunity to work SIC. Im very
pleased to be able to test in
Sepang regularly. Tis is great
for our riders and I believe
this will beneft them (Kornfeil
and Zulfahmi) a lot, he said.
Bernama
Ailing Sandoval rise to
occasion in Giants victory
SAN FRANCISCO: Pablo Sand-
oval had been sick to his stom-
ach but the third baseman rose
to the occasion last Saturday
with a clutch bases-loaded sin-
gle that helped the San Fran-
cisco Giants level the World Se-
ries at 2-2. Sandoval, the World
Series MVP in San Franciscos
2012 triumph, stroked a two-
out, bases-loaded single to
center to snap a 4-4 tie in the
sixth and send the Giants on
their way to an 11-4 thump-
ing of the Kansas City Royals.
Reuters
I N BRI EF
Equals Doohans 1997 record
Cross-country
mountain bike race
heads for Ayer Keroh
MELBOURNE: Australian teenager Antonio Murdaca clinched
a dream berth at the US Masters after winning the Asia-Pacif-
ic Amateur Championship with a stunning seven-stroke win in
Melbourne yesterday.
Te Adelaide-born 19-year-old tore up Royal Melbournes
famed sandbelt course to upstage a feld dripping with Asian tal-
ent, including Chinas Guan Tianlang, who won the 2012 event to
become Augustas youngest ever qualifer at the age of 14.
A two-time national junior champion, Murdaca took an eight
stroke lead into the fnal round and gave his opponents no hope
as he carded a one-under 71 on a sun-drenched day to fnish with
a 13-under total of 275, seven ahead of Japans Horikawa Mikumu.
Im so happy, Im over the moon right now, the stocky Mur-
daca told Reuters after punching the air upon sinking his last putt
and embracing his caddie.
Cant wait to speak to my parents. Im sure theyre just like
me, so excited and happy.
Making his frst appearance in the tournament, Murdaca was
ranked ninth of the 10 Australians in the feld but upstaged his
more-fancied compatriots to also secure an exemption into the
fnal stage of qualifying for the British Open at St Andrews.
Some of the other boys out there [yesterday] are great play-
ers, Murdaca said. I was hoping one of the Aussies would take
it out so its pretty cool.
[Te British Open] would be awesome to qualify for. I played
St Andrews earlier this year, so I reckon I might have a chance
there. by Ian Ransom/Reuters
MELBOURNE: Wallabies back Kurtley Beale has said he was vin-
dicated by a hearing that fned him A$45,000 (RM129,000) for
sending an ofensive text message about a team stafer that trig-
gered her resignation and brought down coach Ewen McKenzie.
Though carrying a poor off-field record, the 25-year-old
walked away from last Fridays code of conduct hearing with his
national contract intact after the panel found he had not sent
a second more ofensive text to former business manager Di
Patston as charged.
New coach Michael Cheika, however, declined to call up the 47-
test utility back into his European tour squad for matches against
Wales, France, Ireland and England.
While Im disappointed with the fne, I have been vindicated
because I never told anything but the truth, Beale said in quotes
published by News Ltd media yesterday. I did the wrong thing
with the only text message I sent. It was stupid and ofensive but
I was the frst to look her in the eye and say I was genuinely really,
really sorry. I always said I did not send the second one and the
tribunal agreed it was not from my phone.
I apologised to Di back in June, we hugged and cried over
it and thats why I was so surprised when it became a big issue
again. She and I agreed the case was closed and Ewen McKenzie
was made aware of it.
Text messages leaked to Australian media showed Beale and
an upset Patston had addressed the issue, with Patston ultimately
agreeing to keep it from McKenzie and the Australian Rugby Union.
However, the saga was made public by the ARU earlier this
month and Beale was stood down for matches against Argentina
and New Zealand pending the hearing.
McKenzie denied any prior knowledge of the Patston-Beale
text message afair after it was revealed by the ARU but resigned
from his post just over a week later. Reuters
Australian amateur Murdaca books
US Masters berth
Wallaby Beale feels vindicated
after text message scandal
A particpant in last
years thrilling race.
BY MARI A VAN WYNEN sports and cycling products, which
include heart rate monitors, speak-
ers and lights. In the lucky draw a
Mio Alpha Bluetooth heart monitor,
which Distexpress is launching at
the event, three Mio Link Bluetooth
heart monitors, two Wahoo Blue
SCs (cyclists gadget), two Bluetooth
Speaker D3 & D4, two Lumen Blue-
tooth Smart Bulbs and a Doxie Go
(portable scanner) are up for grabs.
The ECC will also donate a to-
tal of RM10,000 on behalf of the
Burung Hantu Night Ride 2014 to
two beneficiaries RM5,000 to
Persatuan Kanner Melaka, and
RM5,000 to St Johns Ambulance
Malaysia Cawangan Bachang.
The race will feature 300 par-
ticipants with some 1,700 people
joining the jamboree later.
See more at: http://www.baikbike.
com/registration-is-now-open-
shimano-burung-hantu-2014-ride-
on-1st-november-2014/#sthash.saa-
4JCIf.dpuf
28 SPORTS
BUCHAREST: Romania named two uncapped players, including
teenager George Puscas, in their squad for the Euro 2016 qualifer
against Northern Ireland and the friendly against Denmark next
month, the countrys football federation (FRF) said.
Te 18-year-old striker impressed for Inter Milans youth team,
scoring 14 goals in six matches this season though he was yet to
make the senior team debut.
Puscas, however, is not the youngest player to make the Roma-
nia squad. In May, Viitorul Constanta defender Cristian Manea
played 90 minutes in their 1-0 win over Albania in a friendly at
the age of 16.
Romania named 14 overseas-based players, including Volyn
Lutsk midfelder Eric Bicfalvi, who was also called up for the frst
time. Te squad will be completed with home-based players after
next weekends matches in the domestic championship.
Romania are expected to appoint Anghel Iordanescu as head
coach at the FRFs executive committee meeting on Monday af-
ter he was nominated for the post by federation president Razvan
Burleanu. Reuters
MADRID: Real Madrids decision to sell midfelders Xabi Alonso
and Angel Di Maria left many scratching their heads and consec-
utive La Liga defeats as well as a reverse to Atletico Madrid in the
Spanish Super Cup set alarm bells ringing at the Bernabeu.
Toni Kroos, who joined from Bayern Munich while Alonso went
the other way, was seen as a poor substitute for the experienced
Spain midfelder, while James Rodriguez, top scorer at the FIFA
World Cup fnals in Brazil with six goals, seemed to lack Di Marias
intensity and eye for a killer pass.
A couple of months later and the picture is an altogether diferent
one. Real have come into the kind of form that propelled them to
a record-extending 10th European title last season in coach Carlo
Ancelottis frst term in charge.
Recent performances, including last Saturdays 3-1 win at home
to Barcelona in the La Liga Clasico, suggest Ancelotti has success-
fully completed the integration of Kroos and Rodriguez into a side
that is fearsome in attack and mean in defence.
Since they were beaten at home by Atletico in La Liga on Sept
13, Real have scored 38 goals in nine outings in all competitions
and conceded a mere six. by Iain Rogers/Reuters
Romania names uncapped teenager
Puscas in Euro squad
Rampant Real riding high after
Clasico triumph
Google executive sets
new stratosphere skydive
world record
NEW MEXICO: A skydiving
Google executive is safely back
on Earth after jumping out of
a giant balloon foating in the
stratosphere more than 40km
above New Mexico, a feat that
broke the sound barrier and
shattered a world altitude re-
cord. Alan Eustace, a senior
vice-president at Google, was
lifted up 41,419m by an enor-
mous balloon shortly before
dawn on Friday, the Paragon
Space Development Corp said.
After spending about 30 min-
utes experiencing the wonders
of the stratosphere, he plunged
toward the earth, the compa-
ny, which designed his cus-
tom-made pressurized space-
suit and life support system,
said on its website. Reuters
Victory not sated
after devouring City
in A-League derby
MELBOURNE: Melbourne
Victory are hungry as hell
for more success after belt-
ing cross-town rivals Mel-
bourne City 5-2 to underline
their A-League football title
credentials, coach Kevin Mus-
cat said. Having poached Bris-
bane Roars prolifc Albanian
striker Besart Berisha in the
of-season, they are expected
to challenge for a record third
A-League title.With Berisha fr-
ing a hat-trick in front of a row-
dy crowd at Docklands Stadium
here last Saturday, Muscat was
busy batting away the teams
favourite status. Reuters
Warnock claims keeper
was almost assaulted
against West Brom
LONDON: Crystal Palace man-
ager Neil Warnock believes his
goalkeeper Julian Speroni was
almost assaulted during an
incident which changed the
course of his sides 2-2 draw
with West Bromwich Albion in
the Premier League last Satur-
day. Palace were leading 2-0 at
the Hawthorns when Speroni
appeared to be elbowed in the
face by Craig Dawson as they
challenged for a high ball, al-
lowing Victor Anichebe to take
advantage and score the goal
which ignited West Broms re-
vival. Reuters
Carter: Im t enough
to play US next week
WELLINGTON: World leading
rugby Test points scorer Daniel
Carter has said he is ft enough
to play for the All Blacks next
week against the US in Chica-
go, if required.Te All Blacks left
New Zealand late yesterday af-
ternoon for their end-of-season
tour, which coach Steve Hansen
has said will be used as a practice
for next years World Cup knock-
out stages.Carter was a widely
discussed selection for the tour
for tests against the US, England,
Scotland and Wales given he
barely played this year after a six-
month sabbatical and a broken
leg sustained in the Super Rugby
fnal in August. Reuters
I N BRI EF
BAM of cials shocked
by doping claim
Tey are keeping their fngers crossed that things will come to a positive end
BY ALEC KENNEDY
KUALA LUMPUR: Malaysian bad-
minton of cials expressed shock
yesterday in their frst response to
doping allegations following re-
ports that world No1 Lee Chong
Wei failed a test.
Te of cials refused to identify
the player, pending a second test, but
local media has reported that the top
shutter tested positive for a banned
substance at the world champion-
ships in Denmark in late August.
One of our athletes in one major
tournament has been found pos-
itive, Badminton Association of
Malaysia deputy president Norza
Zakaria told reporters after of -
cials met for more than two hours
to discuss the matter.
We are very shocked, sad, and it is
earth-shattering news to us ... We are
hoping, keeping our fngers crossed
that things will come to a positive
conclusion at the end of the day.
Norza confrmed that a second
test would be conducted on Nov 4
or 5 after an initial test found the
banned substance dexamethasone,
an anti-infammatory drug.
Test results are expected within
one or two days, he said. He de-
clined to give further details.
Malaysias sports minister had
said last Tuesday that authorities
were informed in an Oct 1 letter of
the failed doping test.
Local media have since reported
Lee failed the random test after the
championships semi-fnals. He lost
in the fnal to Chinas Chen Long.
Malaysians have expressed
shock and disbelief over the alle-
gations against Lee, one of only two
prominent sports personalities in
the country and a national icon.
Lee, who received stem cell in-
jections in July as treatment for a
thigh injury, has not commented
on the claims.
Earlier this month, badminton
was already hit with allegations
of match-fixing by two Danish
players, who said they were ap-
proached by a Malaysian man via
Facebook to throw matches.
Badminton of cials yesterday
condemned match-fxing, saying
they would work with authorities
probing the matter.
It is also not the first doping
scandal facing Malaysia recently.
On Saturday, two weightlifters
were reportedly banned for two
years for a doping ofence in a lo-
cal tournament in June.
Earlier this month, the head of
the Wushu Federation of Malaysia
resigned to take responsibility after
Asian Games champion Tai Cheau
Xuen tested positive for doping and
was stripped of her gold medal.
AFP
LIVERPOOL: Liverpool manag-
er Brendan Rodgers said Mario
Balotellis (pic) work rate has im-
proved despite the striker yet again
failing to fnd the net in a goalless
Premier League draw with Hull City
at Anfeld on Saturday.
Te Italy forward has scored just
once for the Reds in 11 appearances
since his pre-season move from AC
Milan and has yet to do so in the
Premier League for his new club.
Balotelli, who has carried the
weight of Liverpools goalscoring
burden in the absence of injured
England striker Daniel Sturridge
recently, had a couple of oppor-
tunities in a frustrating stalemate
against Hull.
Te former Manchester City man
has been criticised for his poor
work ethic since he arrived on Mer-
seyside, but Rodgers praised the
24-year-olds eforts against Hull.
I thought Mario worked very
well, Rodgers said.
He maybe thought he wasnt
going to play. But he is working hard
and he is doing his best. It is that
wee bit of confdence sometimes.
I thought he kept going, kept
getting into the areas and I thought
he and Rickie Lambert worked very
well. Performance wise, I thought
we did very well.
Rodgers acknowledged, though,
there was still plenty more to come
from Balotelli, who was criticised in
Rodgers happy
with misfring
Balotellis work rate
some quarters for swapping shirts
with Real Madrids Pepe during
half-time in Liverpools 3-0 Cham-
pions League defeat by the holders
at Anfeld last Wednesday.
I have only worked with him a
short period of time. I gauge it frst
and foremost on the training feld,
Rodgers said.
Mario puts himself out to train
every single day. He is out there
wanting to train, wanting to improve.
Goalscorers will tell you they
get their energy from the ball hit-
ting the back of the net. He worked
very hard, the Northern Irishman
added.
He knows he needs to run and
work and press here. For the team,
it was big efort on the back of play-
ing against a good team in Real
Madrid. We just couldnt fnd that
fnal touch against Hull. AFP

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