Wednesday, September 17, 2014


Malaysia’s 10 highest paying jobs

By: Iris Lee, Malaysia
Published: 4 hours 33 min ago
Malaysia – I always wanted to be pilot when I was a kid, and after seeing this list, I regret not pursuing my dream.
If you are rethinking your career, here is where the big bucks are according to
1) Pilot
A pilot earns RM35,000 on average per month, on top of travelling around the world.

2) Senior accountant
You probably spend the extra off-work hours crunching numbers to manage your huge paycheck of RM30,000 a month.

3) Materials engineer
A materials engineer earns about RM28,000 a month. That’s a lot for just testing materials used to create products.

4) Government affairs director
Being in the public sector not only gives you great benefits, but also a high salary at RM27,000 a month.

5) Team Leader in oil & gas, energy or mining industry
You will be compensated for being in a high-risk job, with team leaders in these industries earning about RM26,500 a month.

6) Recruiting manager
Bring in human resources, particularly in recruiting, can rake in the big bucks. The average pay for a recruiting manager stands at around RM25,500 a month.

7) Regional manager in banking
The banking industry has always been known for its perks. A regional manager for any bank in Malaysia can earn an average of RM25,000 a month.
Appeard in HRSG Mar 10
8) Chief operating officer
A COO of a company earns an average of RM24,722 a month.
9) Regional director
Being the regional director is the next best thing after COO, as this position rakes in about RM24,583 a month.
10) Geotechnical engineer
And last but not least, traipsing around in dirt as a geotechnical engineer brings in about RM22,833 a month.
The list above is generated through information submitted by users and also a database of salary information gathered from requirement agencies, companies and employers.
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Tuesday, September 16, 2014

China Stocks Listed Locally An Embarassment - from Malaysia-Finance Blogspot

China Stocks Listed Locally An Embarassment

OK, this is the umpteenth time that I am warning not to touch China stocks listed on Bursa. Seems like an old record, but when syndicates are appointed to play up these shares, there are still bound to be followers. Bursa has kind of avoided the wreckage caused by scandalous shenanigans in some Chinese counters listed in Singapore, Taiwan and the US. Surprisingly, the ones listed as red chips in HK did not suffer a similar fate, maybe those were much larger in market cap?

What is most galling is the supposed cash in bank for these counters. Some even had the audacity to raise funds via rights issue when they supposedly have so much cash in bank, citing no more cashflow to buy raw materials. So, are you admitting that there is really no such cash balance in your bank account ... or are you telling us that there is no fucking way you could withdraw the funds. Either way, the company is crewed and so too will the minority shareholders.

The Edge did a nice table:

Shares that their "cash per share" is LESS than their share price. This is a no brainer, but to me, at least these company can and have used up their cash. To me, they are A LOT better than those with multiples of cash in hand to their share price.

Share Px Cash Per Share
Kanger 0.37 0.043
Sinotop 0.08 0.007
China Ouhua 0.11 0.06

Shares with their price equaling their cash per share. this makes more sense. May be the better ones in the group but I would still avoid them if I can. Because its not the fundamentals that are the problem, its the whole huge tidal wave of negative sentiment that is almost impossible to turn around. Just imagine, would you buy into a new Madoff fund today?

Xidelang 0.18 0.21
HB Global 0.07 0.078
(suspended, PN17)
China Auto 0.34 0.409
K Star Sports 0.115 0.14

The following are the ones that really piss you off. Their cash balance is in multiples of their share price, and some had the audacity to make rights issue. Very dubious, when things do not smell right, it is usually bad.

China Stationery 0.125 0.795
Maxwell 0.23 0.34
Xinquan 0.605 1.77
Multi Sports 0.225 0.522

Cash balance - OK, that is one portion of valuing a share, what is galling is that most of them trade at PER of around 2-4 x... that has to be the cheapest shares in the world, and many are backed by cash as well. If all is true, WHY AREN'T private equity firms and IBs offering loans and Management Buyout deals??? I am sure many have done their homework ... and almost just as many declined to proceed further. Whats up man?

Although we did not have any major scandals with China listed firms here (yet), their share prices ALREADY has been adjusted to a level worse than an already erupted company with scandals. So we had our very own quiet correction.

What should Bursa do?

a) Nothing - As long as promoters/IBs keep bringing these China companies over, and as long as they fulfill the "basic requirements", fill in the blanks, you can list or do an RTO with a China company. This is because Bursa is a gatekeeper, not a market predictor or market selector or stock selector.

b) Something - From the evidence, Bursa can see that there is little or no interest from retail or institutional funds with these companies. You should be very wary of these companies STILL WANTING to list on Bursa, when all data shows very clearly that their share price will more than halve or be decimated after listing!!!

c) More Than Something - Reject rights issue if a company's cash per share is more than their share price unless reasons provided are solid (i.e. doing something that would use up their cash in hand as well). Protect the integrity of the markets by vetting and following all shares holders of promoters/owners of these companies and their transaction trail for two years after listing. Follow up with queries/fines/barring from industry if there are shenanigans.

Wednesday, September 10, 2014

Thursday, July 24, 2014

RHB Research upgrades SP Setia on possible M&A or privatisation

RHB Research upgrades SP Setia on possible M&A or privatisation
PETALING JAYA: RHB Research has upgraded property group SP Setia Bhd to a “buy” call, in anticipation of a possible corporate action involving a merger and acquisition (M&A) or privatisation of sorts.
The research house in a note to clients yesterday noted that the M&A or privatisation angle was possible for SP Setia as its current acting president and chief executive officer Datuk Voon Tin Yow would be stepping down on April 30 next year.
“Hence SP Setia will need a new and permanent leader soon,” it said.
Also, the undervaluation of the property group may prompt major shareholder Permodalan Nasional Bhd (PNB) to re-strategise the company potentially via a M&A or privisation deal, it said.
“Our expectation of PNB embarking on various corporate proposals may not be unreasonable given that Sime Darby Bhd, which is 46.4%-owned by PNB, is said to be planning to float some of its business divisions to better unlock values,” said the analyst, bearing in mind that PNB already has a strong property arm in I&P Group Sdn Bhd, and a substantial pool of property investment assets.
In recent months, Sime Darby has explored corporate exercies to unlock value in its property and automotive divisions. Towards this end, it has not discounted the possiblility of buying into a management company of a real estate investment trust (Reit) and injecting some of its commercial property into the Reit.
Last month, there were reports of Sime Darby listing its automotive arm.
The RHB analyst said there were a few potential plans for SP Setia, including a privatisation, asset injection, and/or M&A.
“Regardless of the route taken, we think it will be positive to share price and any strategic plan will be a chance to revive the sentiment and put the company’s business direction back on track,” according to the report.
Among the attractiveness of SP Setia is its strategic landbank that has low land cost.
In terms of pricing, PNB had in January 2012 made a general offer for SP Setia at RM3.95 per share.
However, the research house had estimated a slightly higher valuation for SP Setia, which is easily Malaysia’s biggest name in the property sector.
“While we would not deny that SP Setia should no longer garner a sector premium given the loss of key management personnel, we think a price-to-book ratio of 1.8 to 1.9 times is still fairly reasonable, and this would imply a value of RM4.18 to RM4.41 based on its latest net tangible asset of RM2.32 per share.
The research house raised its fair value target price to RM4.08 from RM3.54. The property stock closed three sen higher at RM3.53 yesterday, on a volume of 1.51 million shares.
On news of PNB planning to merge Sime Darby’s property arm with SP Setia, I&P and Eastern & Oriental Bhd (E&O) to create Malaysia’s largest property group, an industry observer said this unlikely.
“If they just combined SP Setia and I&P, that would already create a gargantuan property unit as both are asset-heavy,” the source said, adding that I&P itself was a merged entity of several property companies.
The source believed Sime Darby would continue to maintain its conglomerate status despite the reports of possible spin-offs of its units.
According to RHB Research, SP Setia and I&P currently have more than 5,000 acres of remaining landbank each while Sime Darby has 19,000 acres excluding its Battersea project and its stake in E&O.

Saturday, July 12, 2014



GST In Malaysia Explained

In Malaysia’s Budget 2014 speech, the implementation of Goods and Service Tax (GST) was perhaps the hottest topic. To be introduced in April 2015, it will replace Malaysia’s Sales tax (10%) and Service tax (6%). Under GST, most of the goods and services (except basic necessities) will be charged a tax rate of 6% at every stage of the supply chain. The question now on everyone’s mind – How will life be after GST?
To identify the most likely effects, we must first understand the different implementations of GST and their mechanisms.

Types of GST

There will be three different categories of goods & services under the GST scheme in Malaysia. They are:
I. Standard-Rated GST
Goods and services in this category will be charged a tax rate of 6% at every stage of the supply chain. The tax is billed and collected by businesses and paid to the government. Every party except the final consumer can claim back credits on the GST they already paid (known as input tax). Examples of the goods in this category are cloth, car and fruits. The following diagram shows how Standard-Rated GST works:

II.Zero-Rated GST
Goods and services in this category will be charged a GST rate of 0%. This means that GST is not charged to the final consumer. But businesses CAN claim back credits on their input tax. Examples of goods in this category are basic food item (meats, fish and cooking oil) and first 200 unit of electricity per month. The following diagram shows how zero-rated GST works, assuming the final product is zero-rated but the raw materials are standard rated:

III.Exempt-Rated GST
Goods and services that fall in this category will be non-taxable and are not subject to GST at the output stage. This means that GST is not charged to the final consumer. But it also means that businesses, particularly the final party in the supply chain (before the final consumer) CANNOT claim back credits on their input tax even if they might have incurred it earlier on. Examples of goods in this category are residential property and health care services. The following diagram will give a clearer picture on how Exempt-Rated GST works:


GST is a progressive tax regime that will supplant the Sales Tax and Service Tax in Malaysia in the near future. Understanding its mechanisms will help us to better gauge its potential impact on our lives and prepare for it. Finally, if you would like to know GST’s potential impact on house property prices and home loans, look no further than Loanstreet’s explanation of how GST will impact property prices.

Monday, June 23, 2014

The Great Malaysian Brain Drain - Koon Yew Yin

The Great Malaysian Brain Drain - Koon Yew Yin

Author: Koon Yew Yin | Publish date: Mon, 23 Jun 10:15

By Koon Yew Yin
Many people including I have written about this subject before, but our Government just ignored what we said about the long term ill effect of losing our best talent. Now the orang puteh of the World Bank has highlighted this, perhaps the Government will listen more attentively.  

Let me give you a real example to show you why a clever Chinese boy would be forced to go to Singapore if I did not give him a scholarship.

Andrew Tan scored 10 A1s in his SPM in 2006. His mother is a primary school teacher and Andrew has two younger brothers. His father, a civil servant, died just before he sat for his SPM.

Armed with his excellent result, Andrew applied for a scholarship to study mechanical engineering. The government rejected his application. Petronas rejected his application too. Can you imagine how disappointed and frustrated he was?

As soon as I learned of Andrew's difficulty, I offered him financial assistance to do accountancy in Utar. He has been scoring top marks in every exam to earn a scholarship from the university.

 Although Andrew was exempted from paying fees, I still bank him RM700 a month to cover his cost of living. He graduated 2 years ago with first class honours.

Readers can help me find more poor students:
Up to date, I have given out about 250 scholarships to help poor students to complete their tertiary education locally. Readers can help me find more poor students if you know of any family with income of less than Rm 3,000 per month, please tell them to write to me My selection criteria is based on financial need and not on academic achievement.

Asean (mainly Malaysian!) Scholarships: Our Brains, Their Gain
Singapore welcomes clever students like Andrew who are desperately looking for a chance to have a higher education. The pre-university Asean scholarship extended to Malaysians by 'the little red dot' Singapore offers the cost of school and exam fees, hostel accommodation, RM5,800 a year for expenses, RM1,200 settling-in allowance, and transport/air ticket. Furthermore, the recipient is not bonded. Or in other words, the giver asks for nothing back.

Of course, Singapore is not doing it for purely altruistic reasons. The country is giving these much coveted Asean scholarships to build up her national bank of talent. Some Malaysians accuse them of 'poaching' the creme de la creme of our youngsters. I don’t look at it as poaching. Their far-sighted government is doing it in their national interest.

And why not? Singapore can afford it. It has three times our GDP per capita. On another comparative note, the GDP per capita of Taiwan and South Korea are 2.5 times and double ours respectively. Before the NEP's introduction in 1970, the four countries were at parity.

The big question is why are we surrendering our assets which Malaysian parents have nurtured but the state neglected? As parents, we know how difficult it is to bring up children and train them to score top marks in school. Yet our country does not want them.

Tens of thousands of young Malaysians have left our shores on the Asean scholarship. I am not sure if Singapore is willing to give out the figure. But I am pretty sure the Malaysian Authorities do not give two hoots about this, whatever number they may have arrived at. If they have, there seems to be no policy change to stem the outflow.

Our statistics clearly show that a large number of Chinese and Indians, mostly with tertiary education immigrated and replaced by a larger number of mostly illiterate foreign workers. Is this the best way to become a developed nation like Singapore?
Behaving Like a Failed State
Consider this startling statistic: There are more Sierra Leonean doctors working in hospitals in the city of Chicago than in their own homeland. More Malawian nurses in Manchester than in Malawi. Africa's most significant export to Europe and the United States is trained professionals, not petroleum, gold and diamond.

The educated African migration is definitely retarding the progress of every country in Africa. Today, one in three African university graduates, and 50,000 doctoral holders now live and work outside Africa. Sixty-four percent of Nigerians in the USA has one or more university degrees.

If we carry out a study, we are likely to find a very large number of non-Malay graduates emigrating to Singapore, Australia and other countries that is proportionately similar to the African exodus.

 However the compulsion is different, seeing as how some African countries are war-torn and famished which is certainly not the case. The push factors for our own brain drain lie in NEP policy and this needs to be addressed with urgency

State Ideology: Be Grateful You Are Malaysian
Try putting yourself in the shoes of an 18-year-old. This young Malaysian born in 1991 is told that Umno was very generous in granting citizenship to his non-Malay forefathers in 1957. Thus as a descendant of an immigrant community – one should be forever grateful and respect the 'social contract'.

Gratitude is demanded by the state while little is reciprocated. Under the NEP – and some say this policy represents the de facto social contract – every single Vice Chancellor of every single Malaysian public university is Malay. Promotion prospects for non-Malay lecturers to full professorship or head of department are very dim, hence we have the dichotomy of non-Malays predominant in private colleges while correspondingly, the academic staff of public institutions proliferated with Malays.

The civil service is staffed predominantly by Malays too, and overwhelmingly in the top echelons. The government-linked corporations have been turned into a single race monopoly. Hence is it any surprise that almost all the scholarships offered by government and GLCs seem to be reserved for Malays?

Youngsters from the minority communities see that Malays are the chosen ones regardless of their scholastic achievement and financial position. Some are offered to do a Master even though they did not even apply (but the quota is there to be filled, so these disinterested Malays are approached).

Conclusion: Ensuring Fairness For the Future Well Being of Our Young
A segment of Johoreans cross the Causeway daily to attend school in Singapore. Many continue their tertiary education in Singapore which has among the top universities in the world. Eventually, they work in Singapore and benefit Singapore.

Ask around among your friends and see who hasn't got a child or a sibling who is now living abroad as a permanent resident. I can't really blame them for packing up and packing it in, can you? It's simply critical now that we don't let our kids lose hope and throw in the towel. The system might be slower to reform but mindsets at least can be changed easier.

It starts with the teachers, the educationists and the people running the education departments and implementing the policies. Please help Malaysian youngsters realise their full potential. Just try a little fairness first.

Personal Note:
Readers may be interested to know that I have five children all of whom are accomplished in their respective fields. Four of them are part of the brain drain and have chosen to settle down abroad; only one is back in Malaysia.

My son who has double degrees in civil engineering and chartered accountancy is an investor in Canada. He could be here to create hundreds of jobs to enrich Malaysia but he has been so disgusted with our policies and their implementation that he has chosen not to return. I am sure that there are tens, if not hundreds of thousands of similar young Malaysians that our country has lost, no thanks to our short-sighted educational policies. And yet the Government is so keen to attract foreign investors. Where is the logic and rationality?

Hope for the future: Basing on the last general election result, the BN Government won a reduced number of Parliamentary seats, enough to rule but the opposition parties won more than half of the total votes. That means there is some hope that the opposition parties will be able to gain enough of seats to rule and change the existing policies, in the next general election.

Friday, June 20, 2014


SapuraKencana (BUY çè)

Integration of Newfield Asset
§     Broadly Inline: Excluding one-off gain of RM178m arising from the acquisition of Newfield business, 1QFY15 core profit surged 134% yoy due to inclusion of tender rig and Newfield assets.
§     Declared interim dividend of 1.35 sen/share and special dividend of 1 sen/share.
§     In the meantime, SK Petro has just secured 2 EPCIC contracts worth US$415m or RM1.3bn in North Malay Basin and JDA.
§     We understand there are only circa 1% of outstanding shares held by syariah funds which should ease investor concern on the potential sell off in the event of removal from Syariah compliant list.
§     Maintain BUY call with an unchanged TP of RM5.52 based on unchanged 20x FY01/16 EPS of 27.6 sen/share.
 Period 1Q15/3M15

Actual vs.
SapuraKencana Petroleum (SKPETRO) reported 1Q15
core net profit of RM334.3m which was within our
expectations, accounted for 24.3% of our full-year
FY15 estimates and 22.9% of market consensus.
Our core net profit excludes the RM2.7m foreign
exchange loss and RM177.8m gain arising from
acquisition of Newfield.

Dividends A tax exempt single tier interim dividend of 1.35 sen
and special dividend of 1.0 sen was declared, which
came as a surprise to us as we have not factored any
dividend payout in FY15.

Key Results
In 1Q15, core net profit soared 67.6% QoQ while
revenue rose 29.7% QoQ after the inclusion of SKEI
business financial results post completion of its
acquisition on 11 February 2014.
The 1Q15 core net profit surged 133.7% on a YoY
basis, primarily due to the inclusion of Seadrill’s tender
rig business and SKEI business post their acquisitions
in Drilling and Energy Services (DES) segment. PBT in
Offshore Construction and Subsea Services (OCSS)
segment leapt 46.6% YoY, despite the revenue
contracting 13.9% over the period, mainly due to higher
contributions from its JV on completion of Gumusut
project. PBT contribution from DES (+>100.0% YoY)
and OCSS (+46.6% YoY) which helped to mitigate the
decline in Fabrication, Hook-up and Commissioning
(FAB & HUC) segment (-13.2% YoY).

Outlook At our last count, SKPETRO’s orderbook stood at
RM30b after the EPCIC wins. Tender book was guided
to be within RM30b.
We believe SKPETRO is scheduled to: (i) begin the
new campaign for Pan-Malaysia Transport and
Installation (T&I) contract, (ii) receive two DLBs and
KM-2, (iii) kick-start two Brazilian pipelay-support
vessels (PLSV), and (iv) account for Newfield’s
earnings in CY14. All these will provide near-term
catalysts for the stock.
For Newfield projects; targets are to transform the
SK310 discoveries to 2P reserves by end-CY14. For
now, the resources are estimated to be at 1.5-3.0 tcf.

Change to
We maintain our forecasts for now given that the 1Q15
result is within expectations.

Rating Maintain OUTPERFORM

Valuation Our TP of RM5.57 is unchanged based on a CY15
EPS of 26.5 sen and target PER of 22x.
The c.20% premium ascribed to SKPETRO (versus the
18x PER ascribed to MHB) is justified, in our view, as it
is the only integrated Malaysian upstream player (from
E&P to installation). 
Moreover, the stock is currently still attractively priced
at CY14-15 PER of 19.3-16.3x (vis-à-vis other
heavyweights such as UMW O&G that trades at CY14-
15 PER of 33.2-21.4x.

Risks to Our
(i) Lower-than-expected margins for business
(ii) Lower-than-expected contract replenishment.
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