30 œ theSun | FRIDAY DECEMBER 12 2008

business news Hang Seng

15,613.90
S&P/ASX200
3,598.0
TSEC
4,655.57
KLCI
860.68
STI
1,794.16
KOSPI
1,154.43
Nikkei
8,720.55
36.16 42.7 3.30 6.02 27.54 8.56 60.31

TNB seeks govt help to raise briefs

October industrial production
down 3.1%

financing for Bakun project
KUALA LUMPUR: Tenaga Nasional Bhd (TNB)
is seeking the government’s help to raise fi-
nancing for the Bakun hydroelectric project in
Sarawak, says its chief executive officer Datuk
Seri Che Khalib Mohamad Noh.
“We had talked with the relevant agencies. I
think at the moment trying to secure financing
from the financial market will be quite tough.
“So, we are in discussion with the Finance
Ministry to raise the government-to-govern-
ment financing,” he told reporters on the
sidelines after the company’s annual general
meeting yesterday.
The nation’s biggest hydropower project,
with an installed capacity of 2,400 megawatts,
is expected to be ready in 2010.
Che Khalib said TNB, together with the fed-
eral government, would own a majority stake
in the transmission line work of the Bakun
project while Sarawak Energy Bhd and the
state government would take up a majority
equity in the dam project.
He said the transmission line and the dam
project would have different financial pack-
ages, Bernama reports.
“With strong shareholders to support this
project plus the current low prices of metal,
copper, aluminium as well as construction
materials, we think this is a good opportunity
to proceed with the project,” he said.
He said the cost of the project was also
expected to come down.
Che Khalib also said TNB is reducing its
capital expenditure (capex) next year on ex-
pectation of a downward trend in electricity
demand. “We expect electricity demand will
not increase as what it was before, (thus) we
have cut down some of the capex that we are
supposed to do for 2009.”
He said TNB has experienced an increase in
demand (electricity) within the region of 6-8%
every year but early part of this year saw the de-
mand reduced to 4%. “We think it is going to be
tough. We are worried that the total demand for
the financial year 2009 may go down further.”
KUALA LUMPUR: Malaysia’s industrial production declined
further in October as the current slowdown in the global
economy has reduced demand.
In a statement, the Department of Statistics said the
Industrial Production Index (IPI) in October fell 3.1% as
compared with the same month last year, with mining
(- 5.4%), manufacturing (-2.5%) and electricity (-1.6%) as
the main contributors to the contraction.
It is the second consecutive month of decline, as in
September, the index fell 1.7%.
The department also said on a month-on-month basis,
the IPI was down 3.1%. However, it said the cumulative
index for the first 10 months of this year still expanded
2.7% compared to the same period last year.
It said the manufacturing output in October shrank
2.5% compared with the corresponding month last year
and was 5.4% lower, month to month.
This was due to a decrease in the manufacturing of
television and radio transmitters and apparatus for line
telephony and line telegraphy which shrank 24.4%.
Also on the decline was the manufacturing of office,
accounting and computing machinery (15.5% lower) and
the manufacture of electronic valves and tubes and other
electronic components (down 6.9%). – Bernama

Allianz M’sia units rake in RM1bil

in premiums
KUALA LUMPUR: Allianz General Insurance Co (M)
Bhd and Commerce Assurance Bhd (CAB) have col-
lectively achieved RM1 billion gross written premium
(GWP) for the first time in a year.
Both are the general insurance subsidiaries of Al-
lianz Malaysia Bhd.
“This accomplishment translates into the fact that
we are moving fast forward to become a market
leader in the general insurance sector.
Getting “To reach the RM1 billion mark before year-end
has proven that our initiatives have borne fruit,” the
the companies’ chief executive officer, Ng Hang Ming, said
Golden in a statement yesterday.
nod The companies recorded a GWP of RM748 million
last year, Bernama reports.
pg 34 Allianz Malaysia said last year it achieved several
important milestones, such as the acquisition of CAB,
its restructuring and re-quotation exercise.

Council targets RM10b exports for

Malaysian furniture by 2010
KUALA LUMPUR: The Malaysian Furniture Promotion
Council (MFPC) has targeted exports of RM10 billion by
2010 based on the good quality and design of furniture
produced by the country.
Its chief executive officer Au Leck Chai said in order
to make the target a reality, Malaysia’s furniture industry
needs to enhance both design and the technology used.
“The value of Malaysia’s furniture exports has been
on the rise.
“Last year, it was RM6.38 billion and from January to
September this year, it was RM6.44 billion.
“Therefore, the Malaysian furniture industry outlook for
2009 is positive,” he told reporters at a press conference
after attending the Furniture Seminar yesterday.
The seminar with the theme, “The Right Approaches for
European Market: Design, Market and Trade”, is aimed at
among other things, enlightening participants on the im-
portance of design as a driver for business development.
Malaysian furniture is being exported to over 160
countries. – Bernama

KL market summary
DECEMBER 11, 2008

Prices firmer INDICES

FBMEMAS:
CHANGE
5,622.37 +53.70

at close COMPOSITE
INDUSTRIAL
CONSUMER PROD
860.68
2,060.36
274.27
+6.02
+13.36
+0.64
SHARE prices on Bursa Malaysia INDUSTRIAL PROD 66.64 -0.27
were firmer at close on mild buying CONSTRUCTION 162.28 +2.63
activities in selected heavyweights TRADING SERVICES 116.45 +0.57
FINANCE 6,710.44 +121.37
and lower liners, dealers said. PROPERTIES 505.82 -1.82
They said this in turn helped PLANTATIONS 3,889.52 +29.57
push the KLCI to close at its highest MINING 243.17 +2.02
level yesterday. FBMSHA 5,818.81 +56.92
At 5pm, the KLCI closed 6.02 FBM2BRD 3,924.90 -36.52
points higher or 0.704% at 860.68, TECHNOLOGY 13.17 -0.01
boosted by gains mostly in Sime TURNOVER VALUE
Darby, Bumiputra-Commerce, 384.221mil RM622.052mil
Maybank and Tenaga.
The KLCI, which moved between
851.1 and 860.68 during the whole For the heavyweights, Sime
session, was 0.7 of a point higher Darby rose 25 sen to RM5.50, Tenaga
at 853.96 at the opening bell. and Maybank increased 15 sen each
Gainers led losers by 243 to to RM6.05 and RM5.40 respectively,
203, while 199 counters closed Bumiputra-Commerce gained 30
unchanged, with 602 untraded and sen to RM6.10 while MISC eased five
29 counters suspended. sen to RM8.55. – Bernama