NEW YORK, May 19 (Bernama) — Malaysia continued to be the top tradingpartner of the United States amongst the Association of Southeast Asian Nations(Asean) in the first two months of the year, and the expert opinion here is thatthis trend would possibly continue during the remainder of the year.Malaysia’s senior trade commissioner, Mohd. Mustafa bin Abdul Aziz, wasconfident that this trend …
A Canadian Muslim gay activist launched her controversial new book on liberal Islam in Muslim-majority Malaysia Saturday despite a government minister's attempts to shut down the event.
A Canadian Muslim gay activist launched her controversial new book on liberal Islam in Muslim-majority Malaysia Saturday despite a government minister's attempts to shut down the event.
KUALA LUMPUR: The campaign mounted by Malaysia External Trade Development Corp (Matrade) on the Malaysia Kitchen Programme (MKP) in the US, the UK, Australia and New Zealand has resulted in gastronomical success for the participating Malaysian restaurants.
Malaysian restaurants overseas that are under the programme have seen their revenues rise nearly a quarter, or 23.7 per cent during the campaign.
The campaign has helped attract about 23.5 per cent more people to eat Malaysian food in New York, London, Sydney, Melbourne, Perth, Auckland and Wellington.
According to Matrade deputy chief executive officer Datuk Zakaria Kamarudin, the campaign has generated significant
outcome in term of increases in restaurants’ patronage,
revenue, opening of new outlets, recognition through labels,
franchises, access to mainstream supermarkets, as well as
visibility in local popular television shows.
“About 1.6 billion people in New York, London, Sydney, Melbourne,
Perth, Auckland and Wellington know about Malaysia through MKP media programmes.
“Some 150 million people took part in MKP campaign, based on the number of visits to MKP events, and those engaged during the
campaign through social media such as Facebook, YouTube, blogs, Twitter and Flickr,” he said in an interview with Business Times.
The MKP campaign was mooted by the government in 2006 under the Ninth Malaysia Plan (2006-2010) under the stewardship of Tourism
Ministry, with its main objective to woo more tourists into the country.
Three years later, Matrade took over the programme and initiated
extensive advertising and promotion activities.
In view of the encouraging response, Zakaria said Matrade hopes it would be able to continue organising the campaign for the rest of the 10th Malaysia Plan (2011-2015) period and expand it to other potential markets such as the Middle East, Italy, China, Japan and Kazakhstan.
He said there was a 20 per cent increase in the number of new Malaysian restaurants registered with MKP, from 454 to 564 during the campaign.
“We are really not into setting up new Malaysian restaurants overseas, unlike when the programme was run at the earliest stage.
“We work differently but the objectives are the same – bringing more tourists to Malaysia and branding Malaysia as a country that produces quality food products,” Zakaria said, adding that in its first year under Malaysia External Trade Development Corp (Matrade), the MKP team’s strategy was more towards creating a buzz by holding or participating in food fairs, followed by sustaining its visibility in the second year.
For this year, he said the campaign will focus more on providing accessibility to Malaysian food ingredients for cooking at overseas homes.
Zakaria said the agency has outlined plans to woo mainstream buyers that include hypermarket and supermarket operators as well as retailers abroad to sell Malaysian ingredients and product lines at their premises.
The target markets are the US, UK, Australia and New Zealand.
He said the MKP team will continue to organise aggressive in-store promotion with mainstream retailers and extend Malaysian food advocate base to more mainstream customers.
“We will organise specialised sourcing missions to Malaysia for potential importers of Malaysian food ingredients, such as through the incoming buying mission (IBM) held on the sidelines of Matrade’s organised exhibitions and conferences.”
He said in February this year, Matrade received seven housing buyers of mainstream retailers from the US and matched them with Malaysian manufacturers of processed food.
In the coming September, he said another big group of retailers from the UK will come to Malaysian and meet the local food ingredient makers and suppliers.
Since Matrade took over the MKP in 2009, Zakaria said a total of 1,056 Malaysian product lines have found their place in mainstream supermarkets, representing 265 brands.
“Malaysian food ingredients are being carried by 50 mainstream supermarkets in the four selected markets,” he said.
These retailers include Marks and Spencer, Sainsbury’s, Tesco, and Five Crops supermarkets in the UK; Top Line, Great Wall, Old Town Asia, Pacific Supermarket and Asia Market Corp in the US; VPlus, Coles, Woolworths, Great Eastern Groceries Centre and Rockman stores in Australia; and Balar, DandA, AB International, Asian Food Specialist and The Asian Food Market in New Zealand.
It is understood that MMC-Gamuda Joint Venture Sdn Bhd, the main contractor for the project, has also asked the government to extend the time to complete the job to 2015 or 2016.
Sources said the government has yet to approve the extension request.
MMC-Gamuda was awarded the northern sector EDTP contract in December 2007 for RM12.49 billion. The job was initially slated for completion in January 2013, but due to impending land acquisition issues, the government has given an extension for the project completion until end-2014.
The contract comprises the design and construction of the infrastructure and systems works for the entire 329km alignment of the EDTP. MMC-Gamuda had awarded the systems contract to Balfour Beatty Rail Ansaldo Systems JV Sdn Bhd.
A source said the total project cost is expected to escalate to about RM14 billion because of the two-year delay.
It is believed that MMC-Gamuda will submit the VO claims to the government later. The source said there is already cost overrun
for the project, which is halfway completed.
“The civil works are 70 per cent completed, and the systems side, only 30 per cent. There are still land issues and other unresolved matters on MMC-Gamuda JV’s part.
“For Balfour Beatty-Ansaldo, they are still awaiting approval for the systems part. No signaling and electrification systems have been installed, except for concrete poles in isolated areas,” said a source.
People familiar with the dealings in Balfour Beatty-Ansaldo confirmed that the joint venture has not received approval for the systems part.
“We think this is going to be another case like the Rawang-Ipoh EDTP, which took more than seven years to complete. The project cost had escalated from RM4.2 billion to RM6.3 billion,”
the source said.
When contacted, Gamuda Bhd executive director Datuk Ng Lee Leen declined to comment as he was overseas.
MMC-Gamuda project director Datuk Mohd Nor Idrus also did not return calls made by Business Times.
Transport Minister Datuk Seri Kong Cho Ha, when asked about the extension for the project completion, stuck to the 2014 deadline.
He said the northern sector EDTP project would be completed in two phases, to Butterworth and Padang Besar.
“The first phase is expected to be completed by the end of next year, and the second phase in 2014,” Kong told Business Times.
Among factors for variation order claims include incorrect estimation of the project’s work; the obstacles that the customer or project team discovers that require deviation from the original plan; or additional money, time, or resources to be added to the project.
The northern sector EDTP is important for loss-making Keretapi Tanah Melayu Bhd (KTMB), the national railway company. Freight is currently KTMB’s biggest money earner, with the northern section contributing over 70 per cent to its revenue.
When completed, the northern sector of the EDTP will cut travel time from Penang to Kuala Lumpur by threefold from nine hours currently.
NORMALLY a big decline would set up Wall Street for a technical rebound. But that may not be the case this week, even after the market posted its worst weekly loss for the year and the SandP 500 fell for six straight sessions.
With the corporate earnings season drawing to an end and recent US economic data raising doubts about the pace of growth, the SandP 500, which is down 7.3 per cent so far in May, could decline further this week as concerns about the financial health of Europe persist.
“What has changed in the world since April? We went from hearing a constant refrain that the world is awash in money and markets must go higher to hearing nobody wants to take any risk … all in a week,” said Peter Cecchini, global head of institutional equity derivatives at Cantor Fitzgerald and Co here.
The SandP 500 fell 4.3 per cent for the week, its steepest weekly decline this year, and closed below 1,300 for the first time in four months.
For the week, the Dow was off 3.5 per cent and the Nasdaq was down 5.3 per cent.
The hotly awaited market debut of Facebook last Friday was marred by technology glitches on the Nasdaq in sending messages back to the brokerages that handled orders of Facebook Inc for individual, or “retail”, investors. Those problems rekindled fears about the market’s electronic trading system and caused some investors to stay away from equities.
Weighing on sentiment is a growing sense among investors that the eurozone debt crisis is nearing new heights, fuelled by fears of the potential for a Greek euro exit and the deteriorating health of the Spanish banking system.
Solid corporate earnings and upbeat US economic indicators had fueled the rally in US stocks, offsetting jitters over Europe. But with earnings almost out of the way and data starting to disappoint, investors have shifted their focus back to headlines out of Europe.
Leaders of the Group of Eight major industrial economies met over the weekend to try to tackle the financial crisis in Europe.
US President Barack Obama, the G8 host, has urged European leaders repeatedly to do more to stimulate growth, fearing contagion from the euro crisis that could hurt the American economy and his chances of re-election in November.
“The market is extremely oversold. Nonetheless, all major indicators remain on sell signals,” said Larry McMillan, president of options research firm McMillan Analysis Corp, in a report on Friday.
“We expect a powerful but shortlived rally should be coming soon. But at this point, barring some major shifts in our indicators, it may only be a rally in a larger downtrending market,” McMillian said.
Facebook, the No. 1 online social network, disappointed investors with a tepid market debut on Friday. Shares rose a scant 0.6 per cent – nowhere near expectations for double-digit gains on the first trading day – and the day was marred by technical problems due to huge order volume. The stock closed at US$38.23 (RM119.90) after falling as low as US$38, its initial offer price.
Facebook’s disappointing debut curbed investors’ appetite for other social media stocks.
Hardest hit was Zynga Inc, which closed down 13.4 per cent to US$7.16 after falling as low as US$6.40. The stock was temporarily halted twice due to sudden declines.
LinkedIn shares fell 5.7 per cent to US$99.02, and Groupon fell 6.7 per cent to US$11.58. Zynga and Groupon, both of which went public late last year, are also trading below their IPO prices.
Despite the disappointing market debut and the weak performance of social media stocks, market participants are still optimistic about Facebook.
“In any brand new area, social media in this case, most are going to be losers and only some are going to be winners. Yes, the IPO was disappointing, but Facebook is clearly the winner here and others aren’t,” said Randy Warren, chief investment strategist at Warren Financial Service.
This week’s economic data includes April’s existing home sales tomorrow. Existing home sales are forecast at a 4.60-million-unit annual, up from 4.48 million in March. New homes sales figures are due on Wednesday. April’s new home sales are also expected to post an increase, gaining about 7,000 units over a 328,000-unit annual rate in March.
Initial jobless claims and durable goods orders will be published on Thursday. Consumer sentiment is due on Friday. Reuters
Blue chips on Bursa Malaysia suffered steep falls last week as concerns over escalating debt crisis in Europe triggered by a potential Greece exit from the eurozone sparked a global sell-off in equities with investors moving to safe havens.
The political deadlock in Greece, which forced the country to call another election by mid-June, and downgrades of Italian and Spanish banks by rating agencies heightened the risk of contagion from Europe’s debt crisis.
Week-on-week, the blue-chip benchmark FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) slumped 51.86 points, or 3.3 per cent, to 1,532.46, with CIMB(-48 sen), Sime Darby (-56 sen), Maybank (-29 sen) and IOI Corp (-28 sen) contributing to half of the index’s loss. Average daily traded volume and value slowed to 1.15 billion shares worth RM1.65 billion from 1.21 billion shares worth RM1.29 billion in the previous week, as investors stayed on the sidelines amid the adverse sentiment abroad.
Developments in Greece and reactions from the other major European economies will continue to hog the limelight over the next few weeks until the fate of Greece in the eurozone is determined when the outcome of June 17 re-election is known. It is near certain that the anti-austerity camp would strengthen its grip in Parliament this time around with Greeks knowing full well that the recent election outcome has succeeded in melting demands for tight spending and contractionary fiscal policy. However, with Mario Draghi, the president of the European Central Bank (ECB), stressing that ECB won’t compromise on key principles to keep Greece in the euro area and deciding to suspend lending to some undercapitalised Greek banks, the writing is already on the wall.
Conditions would worsen if Greece exits the eurozone as a return to the drachma will affect confidence in the euro area and the currency itself, affecting spending and investment. As it is, bond yields in Spain have already surged after Moody’s downgrade of its 16 banks. The situation is similar in other troubled countries like Italy and Ireland. A capital flight could push even Germany to reconsider eurobonds to prevent a banking meltdown again.
As for Greece, there is no doubt that its national currency would depreciate sharply and push up its debt obligations, but it does not make sense to remain in the flawed economic union, where the weaker members are already paying the price for their excessive spending without corresponding or higher income. A breakup would result in a severe short-term shock but at least the Greek government can have control over its own debts by giving creditors a choice to convert euro debts into drachma, or default. With ability to print money recapitalising its banks would not be difficult and the sharp decline in its currency would restore its competitiveness in the long run and help achieve a stable equilibrium for its currency.
It would not be a surprise if other troubled economies like Spain, Italy and Ireland decide to take the same path with growing internal pressure from their public. The Irish will head to the polls on May 31 to decide whether to accept the European Union’s austerity measures. The recent political retaliation seen in France and Greece could be a good indication of what to expect. Iran would add to the woes when the sanctions imposed by the international community, led by the US, come into effect on July 1.
With so much uncertainty, it is difficult to be upbeat about relatively risky investments like equities. There is no doubt the domestic equity market will be subjected to volatility during this period. As the global uncertainty has the tendency to push up the US dollar, beneficiaries of such an outcome in the gloves, technology, media and oil and gas sectors may attract some buying interest.
As for domestic economic data, the Consumer Price Index for April and first quarter gross domestic growth numbers will be out on Wednesday. Consensus expectations are for growth of 2.1 per cent and 4.6 per cent year-on-year respectively.
Technical outlook
In FBM KLCI futures, spot contract May traded on Bursa Malaysia Derivatives slid 49 points, or 3.1 per cent, to close the week at 1,526.5, a mild improvement to a six-point discount to the cash index, compared to the 8.82-point discount the previous week.
The local stock market slumped last Monday in line with regional falls as increasing concern that Greece will exit the eurozone overshadowed optimism from China’s move to cut reserve requirements for banks will help boost the economy. The FBM KLCI tumbled 9.24 points to end near session lows at 1,575.08, as losers swarmed gainers 694 to 158 on slow turnover of 977.9 million shares worth RM1.12 billion.
Blue chips slumped the next day, led by CIMB and IOI Corp, dragged down by the contined deadlock in Greece and after Moody’s downgraded Italian banks. The FBM KLCI sank 14.01 points to settle at 1,561.07, as losers trounced gainers 658 to 176 on higher turnover of 1.12 billion shares worth RM1.64 billion.
Core blue chips suffered heavy losses on Wednesday, led by Tenaga Nasional and Sime Darby, as regional markets slumped after Greece’s plan for new elections raised concern the country will withdraw from the eurozone and deepen the region’s debt crisis. The FBM KLCI tumbled 25.03 points, or 1.6 per cent, to end near session lows at 1,536.04, as losers bashed gainers 822 to 97 on higher volume of 1.33 billion shares worth RM2.06 billion.
Stocks staged a rebound from the recent severe sell-off the following day on optimism over the standby stimulus from the US Federal Reserve which offset fears that the European debt crisis would worsen. The FBM KLCI recouped 8.17 points to close at 1,544.21, off a high of 1,552.25, as gainers led losers 472 to 279 on trade totalling 1.28 billion shares worth RM1.93 billion.
The market turned lower again on Friday, depressed by overnight losses on Wall Street after weaker economic data, downgrade of Spanish banks and the Greek saga sparked contagion fears in the eurozone. The index slid 11.75 points to settle at 1,532.46, off a low of 1,526.6, as losers bashed gainers 702 to 130 on slower trade of 1.06 billion shares worth RM1.5 billion.
The trading range for the benchmark index expanded sharply to 58.03 points last week, compared with the 18.08-point range in the previous week, caused by the heavy falls in core index heavyweights.
The daily slow stochastic indicator for the FBM KLCI has slid into the oversold zone, but the weekly indicator retraced further towards bearish territory. The 14-day Relative Strength Index (RSI) hooked down for a mildly oversold reading at 29.07, while the 14-week RSI fell further for a bearish reading of 46.08.
Meantime, the daily Moving Average Convergence Divergence (MACD) indicator is signalling a more bearish trend ahead, reinforced by the increased bearish momentum on the weekly MACD after flashing a sell signal the previous week. The +DI and -DI lines on the 14-day Directional Movement Index (DMI) trend indicator expanded sharply from each other on a rising AXD line, suggesting a strengthening of the downtrend.
Conclusion
Despite the mildly oversold condition sparked by last week’s sell-off, the FBM KLCI has more downside room this week as most technical momentum and trend indicators stayed bearish and suggest further weakness ahead. Market sentiment should remain depressed given investors’ increased risk aversion due to higher probability of a contagion from the European debt crisis, sparked by opposition to austerity measures in Greece that would derail the country’s bailout package.
Hence, expect further downside risk for the index towards stronger supports at 1,510, the 200-day moving average, and 1,495, the 38.2 per cent Fibonacci Retracement of the 1,310 trough of September 26 2011 to the record peak of 1,609 set on April 3, before it moves into base-building mode. Immediate resistance is retained at 1,559, the 100-day moving average, with the 10-, 50- and 30-day moving averages at 1,568, 1,582 and 1,582 respectively acting as the next overhead resistance cluster.
AMMB, CIMB, Gamuda, Genting Bhd, Maybank, Sime Darby and Tenaga could suffer further falls to lower and stronger retracement supports before rebuilding a more solid base to anchor recovery going forward.
The subject expressed above is based purely on technical analyses and opinions of the writer. It is not a solicitation to buy or sell.
CAMP DAVID (Maryland): Group of Eight leaders sent a strong message to Iran on Saturday that tough energy sanctions would be firmly applied, vowing to ensure oil markets are well supplied to prevent crude prices soaring.
The move increased pressure on Iran before its next round of nuclear talks with global powers starting in Baghdad on Wednesday, and came ahead of the imposition of a European Union oil embargo on July 1.
United States President Barack Obama, leading the G8 summit at his Camp David retreat, meanwhile, said he was “hopeful” that the talks would be productive, and stressed major powers were “unified” against Iran.
There have been concerns that a dearth of Iranian oil could send prices soaring, harm economic growth, further destabilise reeling European economies in Greece and Spain, and send petrol prices soaring in the US.
The leaders noted that there had been increasing disruption to supplies in recent months, posing a substantial risk to economic growth, and said major producers had upped output as a result. AFP
（吉隆坡20日综合电）前全国总警长丹斯里拉欣诺指控净选盟使用“马克思主义”技俩，并指反对党是因为缺乏信心拿下布城，才想看到流血事件的发生
