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A comedown may be waiting after Fed high

NEW YORK: Comparing the Federal Reserve to a rehab clinic offering addicted investors a synthetic high has been a favorite of Wall Street wags ever since the first round of Fed stimulus nearly four years ago. The punch line is that you always need more and more to get the same high and each bout of euphoria is followed by a crashing comedown.

Fed's QE3 program seen totaling $600 billion

NEW YORK: The Federal Reserve will buy a total of $600 billion of bonds under its new stimulus program announced Thursday, known as QE3, and will look for a U.S. unemployment rate of 7 percent before it halts the program, according to the median of forecasts from a Reuters poll on Friday.

Tens of thousands of Spaniards rally against spending cuts

MADRID: Tens of thousands of Spaniards rallied in Madrid on Saturday to protest against spending cuts and tax rises in a country reeling from high unemployment and a grueling recession.

France, Germany at odds over pace of EU bank reform

NICOSIA: German reticence over how fast to centralize banking supervision in Europe stoked tensions with France on Saturday, which urged prompt implementation of a plan designed to tackle the financial crisis and help underpin the single currency.

IMF, EU see more time, not more money, for Greece

NICOSIA: Greece may get more time to reach financial targets under its 130 billion euro rescue package but probably not more money, its international lenders signaled on Friday, saying a decision had to come by the end of October.

After Zuckerberg talks, Facebook gains $6.8 billion

SAN FRANCISCO: Facebook Inc CEO Mark Zuckerberg might need to talk more often. A 30-minute appearance at a technology industry conference earlier this week has translated into $6.785 billion (4.183 billion pounds) in additional market valuation for his company.

Wall Street ends at multi-year highs on Fed

NEW YORK: U.S. stocks rose for a fourth straight session on Friday to close out the week at nearly five-year highs after the Federal Reserve took bold action to spur the economy, a move that could keep equities buoyed in the coming months.

London hot-bed for investors

PETALING JAYA: Malaysian funds and private sector have invested close to £3bil in prime central London since September 2009, according to sources.

MBF may pay more special dividends in next two years

KUALA LUMPUR: MBF Holdings Bhd’s shareholders may see up to a total gross RM1 dividend declaration per share in the next two years as the group intends to dispose of more non-core businesses.

MRT Corp awards five contracts worth RM3.74bil for Sungai Buloh-Kajang line

PETALING JAYA: Mass Rapid Transit Corp (MRT Corp) has awarded five more work packages worth RM3.74bil for the massive Sungai Buloh-Kajang MyRapid Transit (MRT) line following the conclusion of the One Stop Procument Committee.

Potential capital upside for IGB REIT

PETALING JAYA: Affin Investment Bank is looking at a potential capital upside of 14% from IGB Real Estate Investment Trust’s (REIT) initial public offering (IPO) price of RM1.25.

RHB: AirAsia has ‘many defences’ over rival Malindo

KUALA LUMPUR: AirAsia Bhd has many “defences” against Malindo Airways, the new low-cost carrier start-up that will compete with it in the domestic market, said RHB Research Institute.

Maybank Tier 2 capital issue oversubscribed by 5.6 times

KUALA LUMPUR: Malayan Banking Bhd’s (Maybank) RM2.44bil (US$800mil) Regulation S Tier 2 capital subordinated notes under the RM15.23bil (US$5bil) multi-currency medium-term notes programme has been oversubscribed by 5.6 times its order book which was well diversified and allocated to high-quality investors.

CIMB sees cut in REIT withholding tax on dividends

PETALING JAYA: CIMB Investment Bank Bhd expects the Government to reduce the withholding tax on dividends for real estate investment trusts (REITs) in the upcoming Budget 2013.

TSH secures 20.2% direct stake in Pontian United

KUALA LUMPUR: TSH Resources Bhd has secured a direct 20.2% shareholding in Pontian United Plantations Bhd (PUPB).

Dialog earnings estimates maintained

PETALING JAYA: Analysts have left their earnings estimates for Dialog Group Bhd unchanged despite news that it will head a consortium to expand its investments in Pengerang.

Up Close and Personal with Kulvinder Birring

Managing director of Watsons Malaysa on his posting in Malaysia.

News

RAM: Binariang selling Aircel not necessarily ‘the best move’

KUALA LUMPUR: Binariang GSM Sdn Bhd’s move to possibly hive away its stake in India-based Aircel Communications, in which Maxis Communications owns 74%, is not necessarily “the best move,” says RAM Rating Services Bhd’s analyst Lee Chai Len.

RAM to closely monitor Pacific & Orient

PETALING JAYA: RAM Ratings will be closely monitoring developments at insurer Pacific & Orient Bhd, which recently obtained central bank approval to commence preliminary negotiations for the proposed divestment of the company’s 49% stake in subsidiary Pacific & Orient Insurance Co Bhd to Sanlam Ltd.

MARC affirms rating on Antara Steel sukuk

KUALA LUMPUR: Malaysian Rating Corp Bhd (MARC) has affirmed its rating of AAAIS(fg) on Antara Steel Mill Sdn Bhd’s RM300mil sukuk mudharabah programme with a “stable” outlook.

Release land for affordable homes, govt urged

PETALING JAYA: MK Land Holdings Bhd chairman Tan Sri Mustapha Kamal Abu Bakar says the Government should consider releasing its land for the building of affordable homes.

Ekuinas to acquire Burger King Singapore

PETALING JAYA: Government-linked private equity fund manager Ekuiti Nasional Bhd (Ekuinas) is undertaking a RM78.2mil follow-on investment in Rancak Selera Sdn Bhd to help the company expand its existing network to Singapore.

Metronic Global MD calls it a day

PETALING JAYA: Metronic Global Bhd’s managing director Ng Tek Che has resigned from the company to pursue other business interest.

Cover feature

Top Glove eyes Asian markets for expansion

Tan Sri Lim Wee Chai, chairman of Top Glove Corp Bhd, is not satisfied. He wants his company to have a bigger share of the global market.

Discipline, good hygiene and a slim body can do wonders

IF one takes a tour of the austere office of Top Glove Corp Bhd, better known as Factory 9, one immediately understands why Top Glove is the largest rubber glove manufacturer in the world.

Merger and acquisition on the agenda

While organic growth will allow Top Glove Corp Bhd to achieve its targets, the process can be expedited and made easier if it buys over another glove firm to increase its production capacity and market reach.

Top Glove wants to source for its own latex

TOP Glove Corp Bhd became the first rubber glove maker to move upstream by acquiring its own rubber plantation land to ensure a consistent supply of latex.

Lim plans to live healthily and happily to 100 years old

Holding pole position for seven years is a tough job. Can Top Glove Corp Bhd maintain its dominance in the competitive rubber glove industry?

Companies & Strategies

Malindo Airways expected to give AirAsia a run for its money

It was a marathon meeting lasting 24 hours in a hotel in Singapore over two weeks ago that resulted in the creation of Malindo Airways.

Tightening supply of raw materials worry downstream companies

THE dwindling supply of raw commodities has become a major concern among local downstream commodity-based industry players despite Malaysia being a world producer of palm oil, rubber, cocoa and to a certain extent rich in mineral resources such as gold, iron ore and coal.

Christchurch woos investors

CHRISTCHURCH, New Zealand’s second city and the economic hub of the South Island, is open for business.

GAB to host inaugural HAPA-GAB excellence award programme

AN advocate of excellence, Guinness Anchor Bhd (GAB) places importance not only in the quality of its products but also emphasises on how its brews are served to ensure consumer satisfaction is achieved.

Islamic finance players call for a regulatory framework that does not impede growth

There should be a balanced regulation for Islamic finance, one that does not impede its growth or allow for abuse, according to leading industry players.

Employers call for scrutiny, periodical review of education blueprint

WHILE the Education Blueprint 2013 to 2025 has its merits, the passion to drive the quality of education higher will ultimately determine the success and execution of building up the nation’s talent pool to match the increasing demands of a knowledge-based economy.

Personal Finance

Are video games productive?

HAVING been under the weather recently, I was unable to do anything too “physically strenuous” for a few days and decided to revisit one of my favourite past times – playing video games, to relieve boredom.

View Points

Prospects of eBanking in China

Tan Sri Andrew Sheng talks about the potential of eBanking in China.

Accountants challenge the status quo

Errol Oh says some practitioners (the partners and sole proprietors of accounting firms) have shown that they are a persistent and outspoken lot.

Malindo can be a threat to AirAsia

P Gunasegaram comments that underestimating the capability and capacity of new low cost carrier Milando Airways is dangerous.

Using accountability as a catalyst to drive performance

Joan Hoi on using accountability as a catalyst to drive performance.

Economy

Economic progress needs more than just infrastructure

Malaysia has always placed great emphasis on upgrading and developing its infrastructure facilities such as telecommunications, utilities transport and smart buildings to improve productivity and enhance economic competitiveness.

Stocks

Stocks poised to firm on good news

TREND ANALYSIS - By K.M. LEE

Eye on Stock

UEM Land Holdings Bhd

Billings & Advertising

Advertisers remain cautious

CAUTIOUS sentiment continued to affect advertising expenditure (adex) in the country in the second half of the year, according to data from information and measurement firm Nielsen Malaysia.

Dentsu Utama appoints Nina creative director

DENTSU Utama Sdn Bhd, which is part of the Tokyo-headquartered Dentsu group, has appointed Nina Mohamed Nor as creative director.

Academy offers first-hand industry insight

SPIKES Asia Festival of Creativity and Cheil Worldwide are again teaming up to form the Spikes Asia Creative Academy, offering a unique learning opportunity for a select group of students from across Asia-Pacific.

Land & Property

Solutions to housing concerns likely in Budget 2013

THE coming Budget 2013 is expected to address two interesting issues - how to curb the speculative property market and how to address the issue of affordable housing.

Real Estate Awards - More entries from outside Klang Valley wanted

THE Malaysian Institute of Estate Agents (MIEA) wants to encourage more participants outside the Klang Valley area for its upcoming Real Estate Awards next month.

Books

Snapshots

Compiled by THEAN LEE CHENG

Business