The “GREEN” lights on and no holding back, generators going full steam ! Call it by whatever name and terms you like, the “Magician” pulling out from his bag of “tricks” and waving his magical wand ; the Bulls are set to run the Bursa Malaysia Market FBM KLCI to another level high breaking the previous high of ~1525 points set during Pak Lah’s time ! It seems that precedent has been set that the PM/FM of the day always bring the KLCI higher the those set earlier by his predecessors ! Some analysts even predict our FBM KLCI to hit 2600 points but without setting any time frame as he compares the Secular Bull Markets of a few successful South East Asian Markets to the Malaysian and opines that it is possible !
With the latest “POSITIVE” announcements and development going forward and the up coming 2011 Budget schedule to be announced on 15/10/2010, Sarawak State Election and the General Election not far from “NOW”, what is seen from now are all gearing up towards these ! So the BULL will run and I optimistically think so !
With streams of good news flowing, post raya, pre Diwali and early “SEASON’s GREETING” has come a calling ! Ho ho ho and Jingles all the way !
O&G, energy to boost gross national income by RM74.6b under National Key Economic Area
Written by Melody Song
Monday, 20 September 2010 12:38
KUALA LUMPUR: The Malaysian government hopes to see an additional US$24 billion (RM74.6 billion) contribution to gross national income (GNI) through the oil, gas and energy (OGE) sector in the next decade as one of the 12 National Key Economic Areas (NKEA), according to sources.
The three-pronged strategy led by the Performance Management and Delivery Unit (Pemandu) will be to sustain, grow and diversify the OGE sector. It is expected to generate 51,000 new jobs from entry-point projects and other business opportunities related to the sector.
In order to fund the proposed initiatives, US$100 billion of investment over the 10-year period would be required, with 76% of the funds coming from government-linked companies (GLCs), 20% from the private sector, and 4% from public investments.
According to sources, some of the key milestones are to import liquefied natural gases (LNG) by 2012 as a fuel substitute and to create new industries, to reduce the energy bill by 15% by 2014 and to have in place a regional oil storage and trading hub with a capacity of 10 million tonnes by 2017.
(Stocks to watch : DIALOG, RAMUNIA, FRONTKEN, KNM,KENCANA,SIME ENG & etc )
The deepwater oil terminal is proposed to be built in Pengerang, Johor, to complement Singapore’s terminal and storage facility whose expansion is restricted by limited land. It is envisaged that the downstream project would be based on the Amsterdam-Rotterdam-Antwerp (ARA) area in Europe.
The proposed terminal, to be funded via private investments, would have the potential for the development of downstream industries including a refinery and oil-based petrochemical complex as well as a regasification terminal. It is expected to add US$500 million to overall GNI and create an additional 800 jobs by 2020.
By 2020, the lab envisages the country having two gigawatt (GW) nuclear power, one GW of solar power and five GW of hydro power. It is understood that to have nuclear power by 2021, the government needs to take action immediately.
(Stocks to watch : ZELAN, WCT, YTLPWR & other Power Specialists Counters you may think of )
Sarawak is seen to be the key area to drive industrial growth, with hydro plants expected to contribute about US$1.8 billion in GNI by 2020. Meanwhile, solar power is also seen as a good alternative for capacity build-up post 2015 due to falling costs.
Another of the OGE lab’s aims is to make Malaysia the main Asian hub for oil field services by increasing the presence of major oilfield services players, creating regional fabrication leaders and by encouraging joint ventures with world-class companies.
These moves come on the back of slower compound annual growth rate (CAGR) of oil production over the last decade and smaller average size of new discoveries following the increase in exploration activities.
(KNM, SAPCRES, HANDAL, and other Oil rig building Stocks )
It is understood that “aggressive” plans and measures comprising exploration, enhanced oil recovery and small fields are in place to make up for depleting reserves to sustain present oil production levels of 550 thousand to 600 thousand barrels per day (kbd) to sustain GNI at levels of around US$18.6 billion.
According to statistics, Asia’s appetite for crude oil is expected to grow at 420 thousand barrels per day (kbd) per year. At present, consumption levels for the continent are 21.6 million barrels per day and this figure is expected to grow to 23.7 million barrels per day in 2015.
Some of the key players in the initiative include the Ministry of Energy, Green Technology and Water, the Ministry of International Trade and Industry (Miti), Petroliam Nasional Bhd (Petronas), the Malaysian Nuclear Agency and the Malaysian Industrial Development Authority (Mida).
The 12 NKEAs under the Government Transformation Plan (GTP) are oil, gas and energy, palm oil, financial services and capital markets, wholesale, retail and distribution, tourism, telecommunications, education, electrical and electronics, business services, health services, agriculture and the urban revitalisation of Greater Kuala Lumpur.
(All stocks related to such mentioned Sectors are worth to look at )
Earlier this month, Second Fnance Minister Datuk Seri Ahmad Husni Hanadzlah had earlier said that the full report on the New Economic Model (NEM) transformation would be made public next month.
He had also said that 92% of the investments were expected to come from the private sector, including GLCs.
This article appeared in The Edge Financial Daily, September 20, 2010.
September 20, 2010 20:22 PM
Malaysia-Singapore To Settle KTM Land Development Charges In Arbitration Court
By Zakaria Abdul Wahab
SINGAPORE, Sept 20 (Bernama) – Malaysia and Singapore have agreed to bring the outstanding issue on the development charges payable on Keretapi Tanah Melayu Berhad (KTMB) land in the city-state that will be jointly developed by both countries, to the international court for arbitration.
According to a joint statement issued after Malaysian Prime Minister Datuk Seri Najib Tun Razak met his Singapore counterpart Lee Hsien Loong at the Istana here Monday, both leaders agreed to settle the issue amicably through arbitration under the auspices of the Permanent Court of Arbitration.
The statement said both countries had different views relating to the charges payable on the three parcels of Points of Agreement (POA) land in Tanjong Pagar, Kranji and Woodlands.
The three parcels of land are expected to be developed by a 60-40 joint-venture company, M-S Pte Ltd, to be set up between Malaysia’s Khazanah Nasional Berhad and Singapore’s Temasek Holdings Ltd.
Najib and Lee had further agreed to accept the arbitration award as final and binding.
It is understood that the development charges, which applied to any business which wants to develop any land in Singapore, will be significant if the three parcels of land are going to be developed.
The contention now is that based on the POA entered into, by both countries in 1990, the clause on who should pay the development charges was not clear enough.
Singapore interpreted that the company should pay for the development charges but Malaysia said there should be no cost at all.
However, Najib and Lee agreed that the arbitration would proceed on its own track, and should not affect the implementation of the POA and the other bilateral initiatives agreed upon, in their first meeting here on May 24, this year.
In that meeting, Malaysia agreed to move the Keretapi Tanah Melayu Berhad (KTMB) Tanjong Pagar station to the Woodlands Train Checkpoint by July 1, next year, and the three parcels of land would be vested in M-S Pte Ltd for joint development and swapped with several pieces of land in Marina South and Ophir-Rochor.
Speaking at a joint press conference later with Lee, Najib said the issue was not a major problem but it was important for they wanted an agreement (POA) that would survive the test of time.
Najib said they wanted to make it a legally and politically correct agreement that would be accepted by both peoples of Malaysia and Singapore and their future generations.
Najib said: This agreement signifies the final chapter in the long-standing arrangement which started 20 years ago.
We both are delighted and as well as relieved in a sense that we can put this behind us and move forward.”
The prime minister pointed out that Singapore and Lee had shown deep commitment in addressing the POA which was of mutual benefit to both sides, resulting in the old version of the POA further enhanced.
On June 22, this year, in follow-up talks with Najib in Putrajaya, Lee conveyed Singapore s offer on the land swap.
Following that meeting, Lee sent a revised land swap offer to Najib on June 28.
Najib accepted the offer on Sept 17, and Lee replied two days later, confirming his agreement in which the Singapore Government should vest four land parcels in Marina South and two land parcels in Ophir-Rochor in M-S Pte Ltd, in lieu of the POA lands.
Both leaders said the discussion on the details of the implementation of the POA by the Joint Implementation Team would be concluded by this Dec 31.
They also reiterated their commitment to the matters set out in the May 24 meeting, including the 50-50 joint-venture company between Khazanah and Temasek to undertake the development of the iconic wellness township project in Iskandar Malaysia and the joint development of a rapid transit system link between Johor Bharu and Singapore.
(Stocks to watch : Iskandar related Construction and Properties Counters like UEMLand, MRCB, TEBRAU, BJASSETS, DIJACOR, PJDev, DBhd , MPCorp, LBS, Plenitude, Glomac, DAiman, Mahsing, SPSetia, Crescendo, HuaYang, and etc)