theSun | MONDAY OCTOBER 12 2009
business
KL market summary
OCTOBER 9, 2009
INDICES
FBMEMAS
CHANGE
8279.43
FBMKLCI 1233.82
INDUSTRIAL 2654.83
CONSUMER PROD 366.18
INDUSTRIAL PROD 91.84
CONSTRUCTION 234.36
TRADING/SERVICE 159.43
FINANCE 10332.19
PROPERTIES 793.19
PLANTATION 5971.19
MINING 295.86
FBMSHA 8376.41
FBMACE 4125.19
TECHNOLOGY 16.77
TURNOVER VALUE
702.014mil RM1.203bil
High hurdles for IMF on
road to new world order
WASHINGTON: The International
Monetary Fund, rising from villain to
saviour through the fires of the global
economic crisis, faces steep hurdles in
trying to transform into the champion
of the new world order.
The IMF’s annual meetings with
the World Bank in Istanbul last week
showcased the newfound punching
weight of the major emerging econo-
mies like China and India.
Only a week earlier the largest
emerging countries joined with the
seven richest at the Group of 20 Pitts-
burgh summit in agreeing a framework
for sustainable recovery and financial
system reform that considerably
boosted IMF responsibilities.
The G20 recommended, and IMF
policymakers approved, a shift in
voting rights of “at least 5%” from the
over-represented to the under-repre-
sented that mainly favours emerging
countries; China would get the biggest
share.
The increased prominence of the
emerging nations at the power table
marks a pivotal moment for the Wash-
ington-based institution, founded 65
years ago and dominated by the United
States and Japan, the two largest
Fomca, lorry owners oppose Asas’
proposal to acquire highways
KUALA LUMPUR: Both the Federation
of Malaysian Consumers Assocation
(Fomca) and Pan Malaysia Lorry Owners
Association (PMLOA) are opposing the
RM50 billion proposal by Asas Serba Sdn
Bhd to acquire the country’s 22 tolled
highways.
Er Sui See, president of PMLOA said it
would not be wise to allow Asas Serba or
other unknown entities to buy over toll
concessions as roads are public ameni-
ties, where the government must have
some control over.
“RM50 billion is a big amount and
there are already doubts as to how Asas
Serba would finance the acquisition.
“There are just too many uncertain-
ties on the table at the moment and
given that RM50 billion is no small
change, there’s no guarantee that Asas
Serba would not seek government as-
sistance later to service the loan,” he
told Bernama.
As to Asas Serba’s proposal that it
would lower toll rates in perpetuity by
20% in return for a longer concession
period, Er once again said there is no
guarantee for this promise.
MIER Views has been held over until tomorrow due to space constraints.
15
+22.50
Bursa likely to be steadier this week
+3.73 SHARE prices on Bursa Malaysia are expected 2010 announcement on Oct 23, and corporate
UNCH to be steadier this week with intermittent reporting season at the end of this month.
+0.16 profit-taking after the strong gains in the past On technical outlook, the analyst main-
-0.20 week, analysts said. tained bullish bias towards the near-term
-0.05 They said local investors may re-enter market.
+0.24
+57.04
once new catalysts emerged. The FTSE Bursa Malaysia Kuala Lumpur
+5.54 A dealer said shares of companies which Composite Index (FBM KLCI) ended the week
+21.35 had specific corporate developments could at new year high.
UNCH attract investor’ interest. Strong sentiment sent the FBM KLCI to
+10.31 He said Proton Holdings Bhd was likely end Friday at 1,233.82, up 27.57 points from EXCHANGE RATES October 9, 2009
+20.12 to be in the limelight this week following its Friday a week ago.
+0.16
talks with India’s Hero Group to build small The analyst said foreign funds were be- Foreign currency Bank sell Bank buy Bank buy
passenger cars for the Indian market. lieved to have helped push the local bourse TT/OD TT OD
An analyst said investors were also wait- to new high as a weaker US dollar shifted 1 US Dollar 3.4220 3.3570 3.3470
ing for fresh directions, ahead of the Budget overseas funds to Asia. – Bernama
1 Australian Dollar 3.1120 3.0180 3.0020
1 Brunei Dollar 2.4680 2.4070 2.3990
1 Canadian Dollar 3.2570 3.1770 3.1650
1 Euro 5.0550 4.9510 4.9310
1 New Zealand Dollar 2.5660 2.4520 2.4360
1 Papua N Guinea Kina 1.4200 1.1590 1.1430
1 Singapore Dollar 2.4675 2.4070 2.3990
1 Sterling Pound 5.4900 5.3780 5.3580
1 Swiss Franc 3.3370 3.2550 3.2400
100 Arab Emirates Dirham 94.8000 89.7700 89.5700
100 Bangladesh Taka 5.2000 4.7050 4.5050
Portugal 100 Chinese Renminbi NA NA NA
one win 100 Danish Krone 70.0800 64.3500 64.1500
away 100 Hongkong Dollar 44.9300 42.5500 42.3500
from 100 Indian Rupee 7.6700 7.0500 6.8500
economies, and European countries. quota and vote reform into force. play-off 100 Indonesian Rupiah 0.0376 0.0330 0.0280
Before the worst crisis since the The IMF also pledged to reform 100 Japanese Yen 3.8670 3.7730 3.7630
Great Depression struck a year ago, governance in an institution tradition-
pg 30
100 New Taiwan Dollar NA NA NA
the IMF was widely seen as irrelevant ally headed by a European.
100 Norwegian Krone 62.4700 57.3100 57.1100
and ineffective, and was hated around Currently the managing director
the world for harsh conditions on its and chief economist are both French, 100 Pakistan Rupee 4.2100 3.9300 3.7300
loans. the deputy managing director is, as 100 Philippine Peso 7.5200 7.0700 6.8700
IMF managing director Dominique always, an American, and the United 100 Qatar Riyal 95.4300 90.7700 90.5700
Strauss-Kahn said the Istanbul meet- States, as the biggest stakeholder, 100 Saudi Riyal 92.640 88.120 87.920
ings would usher in a “new IMF,” wields an effective veto. 100 South Africa Rand 48.2000 44.3300 44.1300
an institution equipped to help create “Signs, behind the scenes, from
100 Sri Lanka Rupee 3.0800 2.8300 2.6300
and shepherd a 21st century global both Europe and the White House are
economy. not exactly encouraging in this regard; 100 Swedish Krona 50.9200 46.2900 46.0900
But when the annual meetings they just don’t want to give up ‘jobs 100 Thai Baht 11.0100 9.3400 8.9400
closed Wednesday, the IMF was far for the boys’,” said Simon Johnson, a Source: Malayan Banking Berhad
from filling that tall order. former IMF chief economist.
There was the issue of allocation of “In some future crisis, you might
quota shares and voting power among want your guy in the managing ‘Russian economy to shrink 7.5% this year’
the 186 members that currently gives director job, which comes with great
more weight to some European coun- discretion and no constraints under MOSCOW: Russia’s gross domestic product (GDP) will shrink 7.5%
tries, and less to emerging powers like the usual rule of law.” in 2009, president Dmitry Medvedev said in an interview released
China and Brazil. Another important process under yesterday, after earlier government predictions of an 8% drop.
Though IMF policymakers ap- way is collecting the more than US$500 “This year, we expect to see the GDP decline by about 7.5%,”
proved the G20 quota recommenda- billion (RM1.7 trillion) promised by Medvedev said in an interview with Russia’s Channel One state
tions, it remains to be seen which member nations to triple the fund’s television, according to a transcript released by the Kremlin.
countries give up some voting power resources to boost lending capacity to Last month, Russian Prime Minister Vladimir Putin put the ex-
and which get more, with negotiations distressed economies. pected decline in GDP at 8% or slightly less, following earlier official
set to continue to 2011. Germany, a major donor, said at the forecasts that it would shrink 8.5%.
Strauss-Kahn pointed out that “only Istanbul meetings the vast increase in The Russian economy, which is largely based on the export of
36 out of the needed 111 countries have the IMF reserves was only “temporary” oil, gas and other commodities, was badly hit by the global financial
passed the legislation” to bring the 2008 to deal with the crisis. – AFP crisis after years of enjoying strong growth. – AFP
Fomca vice-president Muhammad sionaire companies for a staggering
Sha’ani Abdullah, who shared a similar RM50 billion.
view, said that roads and highways are Asas is a low profile company
public amenities and should not be used manned by four businessmen, two of
as a tool for bartering. whom are former senior executives of
He said toll concessions are seen as the Renong conglomerate.
a lucrative business for not only conces- Before it was nationalised in 2001,
sionaires get to collect tolls from motor- Renong owned PLUS Expressways Bhd,
ists but they also get compensation from Malaysia’s largest concessionaire firm
the government, thus making them a which manages a highway running down
target for takeover. the length of Peninsular Malaysia.
“To counter this and to protect con- Of the 22 companies, only PLUS is
sumers and road users, the government owned by the government, with the rest
should control and have some ownership being held by private firms, some listed
of toll highways throughout the country, on the stock exchange.
so that the price of toll is standardised Given that position, analysts de-
just like petrol prices are controlled. scribed Asas’s bid hinges on the acqui-
“These profits can then be channelled sition of PLUS, which is 64% owned by
for the good of the public,” he said. United Engineers (Malaysia) Bhd.
According to Muhammad Sha’ani UEM is, in turn, is wholly owned
a good highway network should be a by Khazanah Nasional, a government
part of a country’s infrastructure which investment arm.
contributes to the social and economic However, the Minister in the Prime
development of the people, not just for Minister’s Department, in charge of the
those who can afford to pay to use it. Economic Planning Unit, Tan Sri Nor
Middle of this year, Asas Serba Mohamed Yakcop, recently denied that
proposed to the Works Ministry that it a private firm was offering to buy out
would acquire all 22 highway conces- PLUS. – Bernama