14 theSun | MONDAY MARCH 2 2009

business

Cerebos invests
RM75m in new plant
to raise output
SHAH ALAM: Cerebos (M) Sdn
Bhd, which produces BRAND’s
Essence of Chicken and other
food products, will invest RM75
million in a new plant in Bukit
Jelutong here to raise capacity to
1.8 million bottles per month as
the current plant at Petaling Jaya
has reached maximum capacity.
The new plant would begin
operations in 2010, its general
manager Koh Joo Siang told re-
porters after the ground breaking
ceremony of the new plant on
Saturday.
The new premises would be
equipped with the state-of-the-art
machinery and automation with a
significantly higher production ca-
pacity compared with the Petaling
Jaya plant whose capacity was
800,000 bottles per month.
The Petaling Jaya facility,
established in 1962, was currently
producing only BRAND’S Essence
of Chicken.
Although the Petaling Jaya
plant was producing at maximum
capacity, the company was not
able to meet growing demand,
he said.
The new machinery and au-
tomation would boost both the
production speed and quality of
production while ensuring the
freshness, quality and food safety
of the final product.
With the new factory, Koh
said a comprehensive range of
products which were fast be-
coming local favourites such as
the BRAND’S InnerShine Essence
and BRAND’S Bird Nest, would
also be produced locally.
Cerebos, which recorded
strong double-digit growth in
recent years, was also expecting
to achieve similar growth in the
coming years, but Koh declined
to give figures.
The strong growth demand
recorded is attributed to aggres-
sive and effective marketing as
well as branding campaigns,
which has led to an upsurge in
sales, he said. – Bernama
PTP aggressively wooing
new shipping lines
KUALA LUMPUR: Port of Tan-
jung Pelepas (PTP), one of the
fastest growing ports worldwide,
is aggressively attracting more
shipping lines, said its chief execu-
tive officer Capt Ismail Hashim.
“We are actively in negotia-
Young tions but I am unable to disclose
designers details, but basically with the top
fire up 10 shipping companies in terms
of fleet size,” he told Bernama in
Milan an interview.
pg 20 Ismail said the current global
economic crisis also provided an
opportunity “in the sense that
the shipping lines too have to
seriously look at their operating
situation”.
“And basically we have the ca-
pacity to give competitive pricing
to these lines,” he said.
“We are also able to give
them the opportunity for faster
turnaround and at the same time
minimal waiting time for berth
so that their vessels can move in
a more productive manner,” he
added.
Ismail said under the current
situation, the shipping lines were
relooking at their deployment
of vessels and forging closer
collaborations, even with their
competitors.
“They are trying to find ways
and means to manage the busi-
ness level they have, with the
existing oversupply of capacity,”
he said.
Asked when the deals are ex-
pected to close, Ismail said: “The
expectation is there but, of course,
there are things to be negotiated
and discussed.”
“There has to be some consid-
erations, so this will probably take
some time or it may be earlier to
come to a conclusion,” he said.
On another development, Is-
mail said PTP planned to expand
its Pelepas Free Zone by another
175has from the 750ha taken up
earlier.
The area is Malaysia’s first Free
Zone consisting of commercial
and industrial parks which are
integrated within a single bound-
ary at the port’s terminal.
“We are working to develop
this additional 175ha for the ex-
pansion of our existing customers’
requirements as well as for new
customers who may want to lease
the land from us,” he said.
According to him, half of the
175-ha designated area had al-
ready been taken up by PTP’s ex-
isting customers who are looking
to expand their business here.
Global companies such as the
BMW spare parts distribution
centre, Flextronics, CIBA Vision
and Cameron International are
currently operating in the Pelepas
Free Zone. – Bernama

Asia’s export-reliant economies feel pain of slowdown

HONGKONG: When times were boom-
ing, Asia’s factories would sometimes
struggle to keep pace with the global
demand for cars, semiconductors and
electronics goods.
But as the worldwide recession
has taken hold, the region’s export-
dependent economies have been hit
especially hard – and they are now
finding that domestic demand cannot
possibly make up for the decline in
sales overseas.
“This is a very unhealthy economic
growth pattern that developed in the
last more than 10 years,” said Chen
Xingdong, an economist with BNP
Paribas bank in China.
“Asia’s economies all are quite
heavily dependent on exports,” Chen
said.
“They must turn to domestic
demand.”
Analysts say that is easier said than
done.
In places like Japan, where manu-
facturers cut production by a record
10% in January and exports plunged
more than 45%, the health of the
economy at home is still inextricably
linked to overseas markets.
“It is hardly possible for Japan to
boost domestic demand now and pull
the economy up,” said Hideyuki Araki,
an economist at the Resona Research
Institute in Osaka.
“After all, corporate spending on
plants and equipment is linked to ex-
ports,” Araki said. “Japan needs to wait
for a recovery in foreign demand.”
Across much of Asia the story has
been the same.
Hongkong exports are down almost
22%. Singapore’s exports fell 35% in
January – the biggest drop since the
government began keeping year-on-
year records more than 30 years ago.
In South Korea, where they ac-
count for more than one-third of GDP,
exports are down 34%.
“South Korea is now suffering from
a double whammy – sluggish domes-
tic demand and sinking overseas
demand,” said analyst Yu Byoung-Gyu
of the Hyundai Research Institute in
Seoul.
As the global crisis started to take
hold, some suggested Asian econo-
mies might be able to “de-couple”
from the West and be able to keep
going strong even while the United
States and others started to suffer.
“The de-coupling theory has been
disproved,” according to Sherman
Chan, an analyst with Moody’s
Economy.com.
“Even China is counting on demand
from the US and Europe to restore gest decline in January in a decade.
growth,” she said in a recent report. Malaysia, which is heavily depend-
“All eyes will remain focused on when ent on exports – in particular electron-
the US will recover.” ics, accounting for about 40%
In Taiwan, a leading semi- All of overseas sales – has also
conductor maker, exports fell been hit hard.
44% in January while GDP
eyes “The impact is now global
contracted by 8.4% in the last will remain and Malaysia is no exception,”
quarter of 2008 – the kinds of focused International Trade and Indus-
steep declines that cannot be on when try Minister Tan Sri Muhyiddin
compensated for by domestic the US will Yassin said last week.
demand. He said the government
“This is the very fear of recover.” was looking at a “worst-case
export-dependent economies scenario” of exports falling as
like Taiwan,” said Lucas Lee, an analyst much as 3-4% this year.
on the island with brokerage firm Chan, of Moody’s Economy.com,
Mega Securities. “Few can be sure said Indonesia and the Philippines
whether or when global demand will looked to be two of the region’s
pick up.” bright spots for the year ahead – and
Even in Asia’s smaller economies, that both would be resisting external
the drop in exports has had a powerful drags on their economies from “solid”
impact. Thai exports suffered their big- domestic demand. – AFP

market summary FEBRUARY 27, 2009

Thin trade expected ahead INDICES CHANGE

of mini-budget
SHARE prices on Bursa Ma-
laysia are likely to be thinly
traded next week as investors
adopt a wait-and-see attitude
ahead of the mini-budget to be
unveiled on March 10.
Dealers said investors also
need some time to digest lower
corporate earnings reported by
several heavyweight counters
in the past few days.
“Activity on the local bourse
would remain lacklustre as
players are still shying away as
there are no clear measures to
curb the global economy from
getting worse,” a dealer said.
He said a weaker-than-
expected 0.1% growth in the
fourth quarter last year raised
concerns over growth this year
and kept traders sidelined.
“While there may still be
buying opportunities, inves-
tors may adopt a strategy to
take profits on rallies for most
stocks on the local bourse,”
the dealer added.
Fund managers were
mostly active with retail inves-
tors quiet, a trend expected
FBMEMAS
COMPOSITE
5847.07
890.67
-9.52
-2.75
to continue unless more INDUSTRIAL 2108.35 -3.75
positive news filters in CONSUMER PROD 283.33 +1.22
INDUSTRIAL PROD 66.11 -0.23
to provide support, he CONSTRUCTION 166.49 +0.64
added. TRADING/SERVICES 117.81 -0.43
The KLCI is likely to FINANCE 7009.66 -0.43
move between 883 and PROPERTIES 523.53 -1.97
890 or might test the 900 PLANTATION 4374.04 -41.97
level before retreating MINING 231.01 UNCH
under profit taking. FBMSHA 6086.64 -21.54
The dealer said FBM2BRD 3980.36 +16.86
TECHNOLOGY 13.32 +0.73
finance-based counters
are likely to be under TURNOVER VALUE
pressure following the 403.171mil RM585.977mil
50 basis points cut in
the overnight policy rate
to 2% as net interest the Plantation Index slipped
margins are likely to fall. 12.45 points to 4,374.04.
However, those with big The FBMEmas was 9.23
overseas operations such as points higher at 5,847.07, the
Bumiputra-Commerce and FBM30 gained 24.9 points to
Maybank would be less af- 5,792.88, the FBM2BRD rose
fected. 0.13 of a point to 3,980.36.
On a Friday-to-Friday basis, However, the FBM-MDQ
the KLCI closed the week dropped 33.89 points to
slightly higher by 0.96 of a 3,108.28.
point to 890.67 from the previ- Overall volume for the
ous week’s closing of 889.71. week declined to 1.719 billion
The Industrial Index added shares valued at RM2.891 bil-
2.03 points to 2,108.35, but lion from 1.763 billion shares
the Finance Index declined worth RM2.684 billion the
17.16 points to 7,009.66 while previous week. – Bernama