theSun | TUESDAY FEBRUARY 24 2009  15

business

Banking system on briefs

AirAsia says Barclays affected by the current global
economic crisis.

stronger footing
KUALA LUMPUR: The banking system
today is certainly on a stronger footing
compared to the days of old and it will take a
catastrophic weakening of domestic and ex-
ternal environments, though not improbable,
to imbue widespread losses and impairment
to capital.
ECM Libra Investment Research said
the risk-weighted capital ratios of Malayan
Banking (Maybank), Bumiputra-Commerce
Holdings, Public Bank, AMMB Holdings and
Hong Leong Bank were much in excess of
the minimum regulatory capital adequacy
requirement of 8%.
“Public Bank, AMMB Holdings and
Hong Leong Bank had released their latest
quarterlies as at Dec 31, 2008, with no signs
of widespread increases in non-performing
loans (NPLs),” it said in its weekly review for
the banking sector released here yesterday.
ECM Libra said these financial institutions
could afford to register net losses of anywhere
between RM1.1 billion (comfortable levels of
risk-weighted capital) and RM6 billion (mini-
mum levels of risk-weighted capital) before
any new raising of capital was necessary.
“In the case of two largest financial groups
in the country, Bumiputra-Commerce and
Maybank, the allowable net losses range
from RM5.4 billion (comfortable) to RM14.7
billion (minimum),” it said.
The research house said there were two
big-ticket items in both groups’ profit and loss
statements which could possibly drag earn-
ings into negative territories at this point in
time – loan loss provisions and impairment
losses.
It said Maybank and Bumiputra-Com-
merce were most susceptible to rising NPLs
at this point in time.
“A doubling of new NPLs from their an-
nual average of RM4 billion will only cause
the banks’ profits to drop close to zero,” it
said. – Bernama
funding new Airbus
purchase
KUALA LUMPUR: AirAsia said yes-
terday British banking giant Barclays
was funding its purchase of 15 new
Airbus A320-200 aircraft, despite
gloomy forecasts for the aviation
industry.
“AirAsia ... has mandated Barclays
Capital, the investment banking di-
vision of Barclays PLC, to finance 15
of its new Airbus A320-200 aircraft,”
A few AirAsia chief executive officer Tony
Fernandes said in a statement.
more Fernandes did not reveal the size
days to
of the deal, but AirAsia officials said
swipe, the catalogue price of each A320 was
about US$60 million (RM216 million),
pump and that the financing covers 85% of
and win
the purchase price.
pg 17 Fernandes said that three aircraft
had been delivered under the fund-
ing facility since the start of this year.
– AFP
Shorubber aims to
increase production
of gloves
KANGAR: Shorubber (Malaysia)
Sdn Bhd, one of the biggest manu-
facturers of gloves in the region,
He said though there has been
a slight drop in sales, particularly
in demand from the United States
and Europe, the company was
still aiming to increase produc-
tion year-on-year to become the
world’s top producer.
Currently, Shorubber is produc-
ing 130 million pairs of gloves
annually and considered as the
world’s second biggest producer
behind a factory in Australia,
Tanaka said. – Bernama
Singapore’s CPI up
2.9% in January
SINGAPORE: The city-state’s con-
sumer price index (CPI) last month
rose by 2.9% from a year ago due
mainly to higher costs of housing,
food and recreation.
The Singapore Department of Sta-
tistics in its monthly report released
yesterday said housing cost advanced
by 7.7%, arising from higher accom-
modation costs.
But excluding accommodation
costs, the CPI rose by 1.5% last
month, it said.
The Department said food prices
increased by 6.2% as a result of
more expensive cooked food, rice,

Financial status of GLCs intends to increase production at

its factory located here.
Managing director Sadao Tan-
aka, in stating this, told Bernama
fresh fish, vegetables, pork, and milk
products.
Higher cost of holiday travel also

solid, says Najib yesterday that the company’s

KUALA LUMPUR: The financial status
of government-linked companies (GLC)
helmed by Khazanah Nasional Bhd (Khaz-
anah) has remained solid following the GLC
Transformation Programme taken in 2004
to strengthen the financial position of the
GLCs.
Their Realiseable Asset Value (RAV)
against liability is at 1.9 times, Deputy
Prime Minister Datuk Seri Najib Razak
said in a written reply to Wee Choo Keong
(PKR-Wangsa Maju) at the Dewan Rakyat
yesterday.
“As a strategic mid and long term inves-
tor, Khazanah is committed to retaining its
strategic equity in the GLCs under its wings,
particularly those with national interest, in
the efforts to conserve the interest of the
companies,” Najib said.
Wee wanted to know the reasons for
Khazanah recording a “financial loss of
RM18 billion” as reported in the media
recently.
Najib said the depreciation in asset value
cannot be equated to a financial loss as the
value has yet to be realised and this can be
the case only if Khazanah disposes its equity
operations in Perlis will not be
pushed up the index for “recreation
& others” index by 3.2%, it said.
– Bernama
in the related investments at this point.
He explained the financial loss of RM18
billion recorded by Khazanah and reported
in the media on Jan 20 referred to the RAV
for Khazanah’s investment portfolio that
have depreciated in value by RM17.8 billion
from RM88.2 billion as at May 31, 2008 to
RM70.4 billion as at Dec 31, 2008.
“The depreciation in portfolio value by
20.18% is not an actual loss considering
that it is a drop in the share value of GLCs
listed under Khazanah brought on by the
general decline in the global share market,”
he pointed out.
As of Dec 31, 2008 Khazanah had shares
in about 50 companies and nine of them
come under the group of 20 largest GLCs,
Najib said.
Khazanah’s equity in the nine GLC are as
follows: Bumiputera-Commerce Holdings
Bhd 28.42%, Malaysia Airports Holdings
Bhd 72.74%, Malaysia Airline System Bhd
69.33%, Pos Malaysia Bhd 32.21%, Proton
Holdings Bhd 42.74%, Telekom Malaysia
Bhd 41.78%, TM International Bhd 44.51%,
Tenaga Nasional Bhd 37.81% and UEM Land
Bhd 77.1%. – Bernama

Exora to pose serious

challenge to other MPVs
KUALA LUMPUR: Despite the economic
slowdown, Proton’s maiden multi-purpose
vehicle (MPV) slated to be launched in April
is expected to give a serious challenge to other
close range MPVs due to its competitive pric-
ing and value for money, a research house
said.
MIMB Investment Bank, in its latest equity
research on the auto sector issued here yes-
terday, said the Proton Exora, to be equipped
with a 1,600cc engine, would be priced below
RM80,000.
“At this current price, we believe Exora
will give a serious challenge to Toyata Avanza
(maximum price: RM72,000 for 1,500cc) and
the Nissan Grand Livina (maximum price:
RM97,000 for 1,800cc),” it said.
Proton is targeting to sell about 3,000 units
of the Exora this year.
Reviewing auto sales, MIMB Investment
said Proton registered a 4% decline in sales
to 9,874 units last month, Perodua posted
a 5% decline to 11,876 units, while Toyota
recorded a more worrying contraction of 41%
in January sales.
Toyota recorded a 39% dip in last month’s
sales against the previous year.
On the other hand, Nissan sales in January
2009 came in strong with a 17% increase in
volume to 2,285 units while its total industry
value has dipped by 5% compared to the
same month last year.
Nissan is likely to match its 2008 car sales
of 31,000 units if it can maintain the current
momentum, said MIMB Investment.
It also said that car manufacturers were
keeping mum on their new launches perhaps
due to the fear of weak response as the eco-
nomic outlook continued to look challeng-
ing.
To date, only a handful of manufacturers
have announced their new models for this
year, such as Volvo, Peugeot and Proton, it
said. – Bernama