theSun | FRIDAY SEPTEMBER 4 2009
business
EPF Q2 investment
income is RM4.8b
KUALA LUMPUR: The Employees Provi-
dent Fund (EPF) recorded an investment
income of RM4.8 billion in the second quarter
of 2009, as investments in equities raked in
better returns.
The income was 46.64% better than the
RM3.27 billion accrued in the first quarter of
this year, EPF said in a statement yesterday.
“Despite the instability of the global
economy, the EPF managed to meet expecta-
tions and deliver better investment results in
the second quarter,” its chief executive officer,
Tan Sri Azlan Zainol, said.
Equities was the highest income con-
tributor for the quarter, growing seven-fold
to RM1.74 billion, against RM239.55 million
earned in the previous quarter.
He said improving global and domestic
markets contributed to the surge in income
from equities for the quarter under review.
Azlan said the second quarter showed signs
of recovery in major global equity indices
especially in countries where the provident
fund had invested.
“While we cannot say the worst is over.
Should the trend continue, or at least main-
tain at the current level, EPF is positive we
can reverse the bulk of the allowances for
diminution in value of equity investments
that we made last year,” he added.
New diseases fuel growth of glove industry
KUALA LUMPUR: The glove industry is
expected to grow about 12 to 13% per annum
in the next two to three years on the back of
rising hygiene awareness.
The growth figure was very substantial,
influenced by the emergence of new diseases
that prompted all glove players to optimise
production and run at full capacity, Har-
talega Holdings Bhd executive chairman
and managing director Kuan Kam Hon said
yesterday.
“Even before influenza A(H1N1), we are
already running at full capacity and unable to
deliver additional demand from customers.
“As such, we have actually embarked
on an initiative to increase productivity by
speeding up our production lines by 3%,”
he told reporters after the company’s an-
11
In the second quarter, loans and bonds
were the highest income earner, contributing
RM1.81 billion to EPF’s total investment in-
come compared with RM1.78 billion attained
in the previous quarter.
Another major contributor was income
from Malaysian Government Securities,
which rose marginally by RM830 million to
RM1.11 billion.
Meanwhile, money market instruments
recorded an income of RM94.27 million
during the quarter, a drop of 21.51% from
RM120.11 million earned in the first quarter
2009.
EPF’s total fund size currently stood at
RM353.93 billion, up 1.61% from the first
quarter’s fund size of RM348.31 billion.
“While there are signs of stabilisation in
the global market, it is nevertheless too early
to see how this will affect us for the remainder
of the year,” he said.
Azlan said as a long-term investor and
custodian of more than RM350 billion in
retirement funds, the EPF would continue to
take proactive measures.
He gave assurances that the fund would
continue to enhance the value of its mem-
bers’ savings in these challenging times
while maintain prudent approach at all times.
– Bernama
nual general meeting here.
Hartalega, Malaysia’s largest nitrile gloves
producer, currently operates 33% production
lines producing 6.2 billion pieces of nitrile
and natural rubber gloves annually.
The paradigm shift in terms of usage from
natural gloves to nitrile gloves globally also
boosted the demand, Kuan said.
Hartalega holds around 25 to 30% market
of nitrile gloves in the US health industry.
For the financial year ending March 31,
2010, the company has allocated RM130
million for capital expenditure including to
finance the construction of Plant 5 and up-
grading of Plant 1.
In terms of borrowing, about RM10 mil-
lion to RM20 million would be needed, Kuan
said. – Bernama
Bina Puri secures RM37m
project in Kota Kinabalu
KUALA LUMPUR: Bina Puri Construction
Sdn Bhd, a wholly-owned subsidiary of
Bina Puri Holdings Bhd, has been awarded
a RM36.6 million substructure project in
Kota Kinabalu, Sabah.
The award from Sunsea Development
Sdn Bhd is for the construction and comple-
tion of earthworks, piling works, pile caps,
basement slab and basement retaining wall
for a proposed commercial development.
The substructure works are part of the
Kota Kinabalu City Waterfront develop-
ment and construction is expected to be
completed within nine months, the holding
company said in a statement yesterday.
OSK: Astro licence review
will be viewed negatively
KUALA LUMPUR: OSK Research said it
will view any attempt by the government
to review Astro All Asia Network Plc’s
exclusive 20-year operating licence nega-
tively given the strong cashflow that the
domestic pay-TV operation generates.
“We find it most difficult to reason
a purported review on the basis men-
tioned in the article given Astro’s strong
commitment and focus on local as well
as vernacular content,” OSK said in an
investment research note. A news report
said the licence may be reviewed to make
Astro include more government-friendly
and 1Malaysia programmes. – Bernama