Chew Chin Lap

For the group assignment in foreign exchange and derivatives market, I have generate
time and effort to contribute to the overall completion of work. There are several parts that I have
done. Firstly, I help to look for relevant information in the annual report of Boustead Holdings
Berhad. The reason of doing so is to look into the history of this company, how this company
started in nineteenth century, and the daily operations in the pioneering stage of the company. I
also looked into how the company developed and grow over the years. Moreover, the core
business of the company was also viewed in order to state out what industry this company
involves in.

In addition, I also made significant contribution towards the history of foreign exchange
system. I have done sufficient research on the development of the foreign exchange system since
nineteenth century until now. The development of the foreign exchange system is very much
depends on the worlds situation and the current need of the world. For instance, the gold system
was abandoned due to the excess printing of money in World War I and II. While the Bretton
Woods system was abandoned due to insufficient of gold reserves. The current foreign exchange
system, which is the floating rate system, is by far the most suitable for the currency to fluctuate
according to the worlds situation.

Further more, I also generate useful recommendations in conclusion part on what the
company should improve on top of their current hedging technique.

Nicholas Tan Pengxi

For the subject of foreign exchange and derivatives market assignment, I have
contributed in every parts of the assignment. The first portion that I have done was the
introduction for part A. In the introduction, I have done research on the company, which is
Boustead Holdings Berhad. After viewing the companys website and annual report, I have
written down the the history and core business of the company according to the sources that I
have obtained.

The second part of my contribution lies in the content of part A. In this part, I have done
research on the role of Crude Palm Oil Futures. Besides, I have search the internet to obtain the
historical data of CPO and FCPO. Apart from that, I have studied what is Bursa Malaysia and
what commodities instruments it offer. Then, I have studied and written down on the
commodities instruments characteristics and contract specifications it offered. Moreover, I have
contributed idea and suggestions in the recommendation and conclusion of part A through our
discussion. I have suggested several ways the company should be doing.

The third part of my contribution lies in the introduction of part B, which is the history of
development of the foreign exchange system. This includes the very first stage of the foreign
exchange rate system since the late nineteenth century until today. The three systems in the
history, which are the gold standard system, Bretton Woods system, and the free floating system,
were included in this part.

Besides, I have contributed in the content of part B, which is the hedging technique. This
includes internal and external hedging technique. I also studied the company annual report to
search for foreign exchange exposure. I have look into their balanced sheet and notes to get more

detailed information. Lastly, I have give why the company should hedge away the foreign
exchange risk and what is benefit of hedging for a company. I have also contributed in the
recommendation and conclusion of part B, I have suggested assumptions and recommendation
the company should be using.

Victor Ho Kai Sheng 13WBR12255

The first part of my contribution is the introduction for part A, which is a brief
introduction on Boustead Holdings Berhad. Boustead is one of the oldest conglomerates in
Malaysia, which was established in 1828. In its pioneering stage, Boustead was involved in
import and export, as well as shipping and insurance agents, and eventually got involved in
rubber industry. It is a government linked company with Lembaga Tabung Angkatan Tentera
(LTAT) as its majority shareholder. The company currently has active interest in the field of
plantation, property, pharmaceutical, heavy industries, trading & industrial, and finance &
investment.

My contribution towards this assignment also includes how the foreign exchange market
develop over the years. After World War Two, the U.S.A., which had won the war with the allies,
had become the dominating force in the world. Therefore, the home currency of the U.S.A., the
U.S. dollar had become the dominating currency in the world. The U.S. dollar was also the only
currency backed by gold under the Bretton Woods agreement. That was why eventually the
Bretton Woods agreement failed, and led to the adoption of free floating monetary system. I have
also found out that there are three types of managed floating system adopted by the government
in todays world, namely dollarisation, pegged rates, and free floating system.

Further more, I also look into the tools that Astro Malaysia Holding Berhad use to hedge
the foreign currency risk. The tools are forward foreign currency exchange contracts, crosscurrency interest rate swap. This helps Astro Malaysia to minimize its foreign exchange loss.

Yang Qi Onn

My contribution in completing this assignment included the research that I have done on
the reason to hedge foreign exchange risk. It is important to hedge foreign exchange risk. The
reasons included minimize the effects of exchange rate movements on profit margins, increase
the predictability of future cash flows, eliminate the need to accurately forecast the future
direction of exchange rates, facilitate the pricing of products sold on export markets, and protect,
temporarily, a companys competitiveness if the value of the Ringgit Malaysia rises.

On the other hand, I also look into the factors that affect the price of Crude Palm Oil
Futures. It is crucial to know the factors in order to make correct investment and hedging
decisions. The factors included the supply and demand of palm oil, weather, the policy in
different countries, and also the changes in taxation and import duty.

Moreover, I have done research on hedging techniques, which included internal and
external techniques that are used to manage the companys finance and also the risk
management. This helps to diversify the risk of the company and reduce the chance of the
company making losses. The internal heading techniques that I have discovered are invoice in
home currency, netting and matching as well as leading and lagging. External techniques that I
have discovered included forwards, futures, swaps and options.

For the conclusion of part B, I contributed some recommendations for Astro. I

recommended Astro to hedge using gold and exchange traded funds, and also apply the method
of currency risk sharing.