Malaysia's CIMB, RHB, MBSB reach merger deal: source

Malaysia's CIMB Group, RHB Capital Bhd and Malaysia Building Society Bhd (MBSB) have agreed on a merger deal that will create the country's biggest banking group, a source with direct knowledge of the matter said - PHOTO: REUTERS 

so, did you get some rhb, cimb, mbsb,or osk?

Malaysia's CIMB, RHB, MBSB reach merger deal: source

9 Oct8:55 AM

[SINGAPORE] Malaysia's CIMB Group, RHB Capital Bhd and Malaysia Building Society Bhd (MBSB) have agreed on a merger deal that will create the country's biggest banking group, a source with direct knowledge of the matter said.

The deal will involve a share swap between Malaysia's second-biggest lender CIMB and its fourth-largest bank RHB, the source said, adding that an announcement is expected later on Thursday.

The deal will still require approval from Bank Negara Malaysia, the central bank, the source said, who asked not to be identified ahead of the formal announcement.

A combination of the three lenders would give birth to a banking group with assets totalling around US$190 billion, surpassing the country's largest lender Malayan Banking Bhd (Maybank) and making it Southeast Asia's fourth-biggest lender.

Shares of the three banks were suspended on Thursday pending an announcement. - Reuters

5 Reasons Why You Should Invest In Malaysian REITs Now

By Iris Lee . 3 October 2014 . Investment, Properties, REITs

 

Malaysian property investments have become less attractive these days due to the skyrocketing prices and also the various cooling measures implemented by the authorities. This has set many people from the middle and lower income groups back from buying their first home or investing in property.
However, other than investing in physical properties, Malaysians can consider investing in Malaysian Real Estate Investment Trusts (MREITs). Unlike business trusts, Malaysian REITs are trusts which invest in properties only. They are traded on stock exchanges and are eligible for special tax exemption.
Here are five reasons why you should invest in REITs in Malaysia:

1. Small starting capital

Most property investments require a significant amount of money to start. Even with 90% loan, a RM500,000 property would require at least RM50,000 down payment plus extra for legal fees and stamp duties. For MREITs, you can start investing with as little as RM140 (100 shares of Pavilion REIT at RM1.40).

2. Get exposure to the top shopping malls and commercial buildings

With MREITs, you will be able to buy into the top shopping malls in Malaysia. Malls such as Pavilion (Pavilion REIT), MidValley Megamall (IGB REIT), Sunway Pyramid (Sunway REIT) are all available on Bursa Malaysia. As an individual property investor, you would have little chance of owning such popular shopping malls, other than certain strata title types like Berjaya Times Square. With MREITs, your dream of owning a part of these popular commercial properties can be a reality.

3. Earn regular dividends

Like property rentals, MREITs also generate income in the form of dividends. Since MREITs are usually diversified, vacancy rates are generally low so they are a more stable form of income as compared to physical properties which could have vacancy periods.
The frequency of dividends payout for REITs is quarterly or bi-annually, making them an ideal investment for retirement income. To make it even more attractive, the dividend payout for REITs tend to be pretty high as they need to pay out at least 90% of their net income to be eligible for tax treatment.

4. Ease of buying and selling MREITs

As MREITs are exchange traded, buying and selling them is generally easier compared to physical properties. MREITs are bought and sold like normal stocks so the prices are transparent and the transactions take place instantly. For property transactions, it is normal to take between six to 12 months at least to find the right buyer at the right price and go through the sales and purchase agreement (SPA) process.

5. Minimal effort required

One of the key advantages of MREITs is that there is minimal effort required to maintain these investments. MREITs hire professional management teams to manage the tenants and upkeep of the properties, leaving you to enjoy the fruits of your labour. Anyone familiar with property investments will know that there is in fact a lot of work involved in managing your own properties.
At current market condition, dividend yields of most MREITs are pretty attractive compared to other investments, ranging from 5% to 6%. Given the stability of the dividend income and quality of the properties, MREITs are generally good investments to consider.
About the Author
Calvin Yeo, CFA, CFP is the Managing Director of DrWealth. Dr Wealth is ASEAN’s leading site on personal finance. We offer users high quality articles and research on all areas of Personal Finance including Retirement Planning, Investments, Savings, Insurance etc. In addition, we provide effective and simple to use mobile and desktop software tools that help you track, model and plan all your finances

‘Papaya leaf extract can help in dengue recovery’

By ELVINA FERNANDEZ | New Straits Times – Thu, Oct 2, 2014

KUALA LUMPUR: HOSPITALS and clinics can now advise dengue patients to consume papaya leaf extract as a supportive treatment to accelerate their recovery process, which usually takes nine to 10 days.

The Institute for Medical Research (IMR), in a circular to state health directors recently, revealed that clinical research on the leaves had shown that its extract could help increase the blood platelet count of dengue patients.

The circular, dated Sept 19, also stated that IMR would soon share its findings and distribute pamphlets detailing the correct preparation and use of the extract for dengue patients to government hospitals and clinics.

 Health director-general Datuk Dr Noor Hisham Abdullah said papaya leaf extract had increased blood platelet count and could assist in the recovery of patients with fewer complications.

“The damage from a dengue infection, however, could be more than a platelet count issue, such as blood plasma leakage or dengue shock syndrome, in which dangerously low blood pressure could occur,” he said.

It was earlier reported that a study, led by Dr Soobitha Subenthran and a team from IMR Kuala Lumpur, had found that Carica papaya leaf extract could assist in increasing blood platelet count.

The researchers conducted clinical trials on 288 dengue fever and dengue hemorrhagic fever patients, in which half were given the extract for three days while the remaining received standard dengue treatment.

The two groups were constantly monitored and their blood platelet count checked every eight hours for 48 hours.

It was found the group that was administered the extract showed a significant increase in their platelet count.

It was also reported that those intending to take the extract should consult a doctor first before doing so.

Once cleared by a certified health specialist, they can start taking two tablespoons a day for a maximum of three days.

The right method of extracting papaya leaf juice includes using mature leaves and washing the leaves thoroughly before soaking them in water for 15 minutes.

The leaves are then either blended or pounded and filtered using a sieve.

LATEST VIDEOS

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

http://malaysiafinance.blogspot.com/2014/09/china-stocks-listed-locally-embaressment.html

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.
        

Anti Smoking Campaign MPCAM

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

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

by liz lee from the Star

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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.

GST IN MALAYSIA EXPLAINED FROM LOANSTREET

http://loanstreet.com.my/learning-centre/gst-in-malaysia-explainedhttp://loanstreet.com.my/learning-centre/gst-in-malaysia-explained

 

GST In Malaysia Explained

http://loanstreet.com.my/learning-centre/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:

Conclusion

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.