CIMB, PBB, SIME DARBY & OTHERS

CIMB Investment Bank Bhd, a wholly owned unit of CIMB Group Holdings (CIMB MK, Buy, TP: RM15.25) gets nod from
the Vietnam Securities Commission for its subscription of equity interest in Vinashin Shipbuilding Finance Company
Securities LLC, (VFC Securities). The approval was obtained on Feb 23, CIMB said in a statement to Bursa Malaysia. VFC
Securities will change its name to CIMB Vinashin Securities LLC with immediate effect. VFC is wholly owned by Vietnam
Shipbuilding Industry Group (Vinashin), the largest shipbuilder and an industrial conglomerate in Vietnam. (Financial Daily)
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Public Bank Bhd (PBB) (PBK MK, Buy, TP: RM14.50) has no plans to raise fresh capital this year despite some quarters
expressing concern that its capital ratios may decline upon the implementation of enhancements to the Basel III framework,
said its chief operating officer, Leong Kwok Nyem. The Basel Committee announced that it had approved the consultation of a
package of proposals to strengthen global bank capital and liquidity regulations, dubbed as Basel III. Leong said that the bank
was comfortable with its capital levels. Its risk weighted capital ratio rose to 14.2% as at Dec 31, 2009. (Financial Daily)
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Sime Darby Property Bhd, a subsidiary of Sime Darby Bhd, (SIME MK, Hold, TP: RM8.30) is awaiting approval from the
state and federal governments for its proposed 10,861 acre Selangor Vision City (SVC) development. The SVC is
located along the Guthrie Corridor Expressway from Lagong to Bukit Jelutong, and 3,450 acres of the total 10,861 acres have
been developed. The entire SVC project will have an estimated GDV of RM10bn, and will focus on the Bukit Jelutong City
Centre and an environmentally-friendly township named Elmina East, which has an estimated GDV of RM6bn. (Financial Daily)
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Bank Negara Malaysia (BNM) will raise interest rates in a measured, gradual way in order to keep supporting the
economy, governor Tan Sri Zeti Akhtar Aziz said. Zeti said that inflation pressures remained modest and the central bank
would not rush to withdraw policy support. “Interest rates will continue to be supportive of growth. Current rates were brought
down to these levels because of the extraordinary circumstances to avert a fundamental recession,” Zeti said. She also added
that a change to banks’ reserve requirements was not likely to be part of the normalisation process unless there is fundamental
situation of excess liquidity in the system. (Financial Daily)
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The government will emphasize on promoting more domestic private investments through public-private partnership
(PPPs) under the 10th Malaysia Plan instead of depending on foreign direct investments to ensure future growth.
Minister in the Prime Minister’s department Tan Sri Nor Mohamed Yakcop said domestic private companies have upgraded
themselves to be at par with international standards and that it’s time to provide opportunities for local investors to support
sustainable economic growth. He added that the government will continue to place emphasis on infrastructure development to
propel the country’s economic transformation via private sector participation in PPP policies. (Malaysian Reserve)
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Malaysia’s government said exports may grow this year at twice the pace it predicted earlier, citing rising global
demand for palm oil and electronics. Overseas shipment may increase 6% or 7% this year, more than a previous forecast of
3.5%, International Trade and Industry Minister Mustapa Mohamad said. “The recovering global economy would contribute to
increased demand for Malaysian exports such as electrical and electronic products, furniture, rubber products as well as
commodities,” he said. (Malaysian Reserve)
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