AXIATA, TM & OTHER BUSINESS NEWS

Axiata: XL bookbuilding favourably received
The bookbuilding exercise of PT XL Axiata Tbk, Axiata Group Bhd’s (AXIATA MK, Hold, TP: RM4.15) Indonesian operations, has been received favourably by investors, according to a news report. According to FinanceAsia, the shares of XL have received much interest because of the indicative price range was set at a steep discount to Indonesia’s number two mobile company, PT Indosat Tbk. Quoting sources, FinanceAsia said the order flow was bolstered by the fact that the deal would be open to qualified institutional buyers in both Malaysia and Indonesia, which are not typically tapped for international offerings. (Financial Daily)
**********

TM: To announce UniFi pricing
Telekom Malaysia Bhd (TM) (T MK, Hold, TP: RM3.54) will announce its much-anticipated pricing structure for its nextgeneration high-speed broadband service, “UniFi”, which was launched with the promise of a “world of faster, richer and more reliable online experience.” TM Chairman Datuk Dr Halim Shafie said the pricing would be made available on TM’s
website. (Financial Daily)

*******
Plantation: Malaysia to launch long delayed biofuel mandate
Malaysia has asked petroleum companies to bear the extra cost of selling diesel blended with palm oil from June next year to kickstart sales of the green fuel after a four year delay. Commodities Minister Tan Sri Bernard Dompok said that the green fuel, a blend of 5% palm and 95% diesel, will be introduced in stages in the central states on the mainland. Eventually, the mandate will be extended to other Malaysian states and will take up half a million tonnes. Dompok said the government will bear the cost of developing six petroleum depots with blending facilities at a cost of RM43.1m. (Financial Daily)
*******
Telecommunication: Lower broadband rates from Telekom and more community internet centres Prime Minister Datuk Seri Najib Razak announced six initiatives to encourage broadband usage among Malaysians, including a reduction in rates on broadband packages from Telekom Malaysia. The initiatives will benefit some 17m internet users in the country and boost broadband coverage. The measures would be implemented under the National Broadband Initiative (NBI). Among the initiatives are to set up community broadband centres at a cost of RM60m, to have e-kiosks at community centres and sub-district offices at a cost of RM4m, to set up 873 new telecommunications towers, and Telekom to make broadband packages together with netbooks with rates reduced from RM50 to RM38 a month. (NST) ( we are waiting far too long.)
*********
Banking: BNM to issue 7 more banking licenses
Bank Negara Malaysia (BNM) will issue seven more banking licences – five for conventional banking and two for Islamic banking. Governor Tan Sri Dr Zeti Akhtar Aziz said the central bank was in the final stage of assessing the applicants which comprised not only global banks but also Islamic insurance companies. The five conventional licences would be issued to those from Asia, Europe and the Middle East. “Sometime in May or early June, the announcement will be made,” she said. (Financial Daily) （good, more the better.)
********
Economy: Khazanah and EPF to hasten GLCs divestment
The government has directed Khazanah Nasional Bhd and the Employees Provident Fund (EPF) to hasten the divestment of their equity holdings in government linked companies (GLCs) to make the capital market more attractive to foreign fund managers, Prime Minister Datuk Seri Najib Razak said. However, he said the reduction of holdings in GLCs by the government’s investment arm and EPF would not undermine national interest as it was protected by the government holding a golden share in strategic investments as well as regulators keeping an eye on what the companies do. (Financial Daily) (sure or not ?then better look out for small and medium size glc company。）
*********
Economy: Economy could grow up to 5.5%, says BNM
Bank Negara Malaysia (BNM) expects the economy to grow between 4.5% and 5.5% this year with higher consumer
spending, increase in business investment and improvement in exports to Asia. Furthermore, there is potential upside for
the economy to surpass the projection as gross domestic product (GDP) in the first quarter of 2010 itself is estimated to
surpass that of fourth quarter last year, according to BNM Governor Tan Sri Zeti Akhtar Aziz. The projected local growth in
2010 is based on the expectation of a “gradual and uneven” global economic recovery which is still facing downside risks
mainly in the advanced economies. (Malaysian Reserve)
3