Assalamualaikum w.b.t.,

Hidup di dunia yang sementara ini banyak mengabui mata kita tentang matlamat kehidupan yang sebenarnya. Kita semakin terdesak dengan himpitan kehidupan dan berlumba-lumba untuk mencari kehidupan yang lazimnya lebih menampakkan keduniaa semata-mata.
Apakah ada di antara pelaburan yang semakin hari semakin kurang diberikan tumpuan? Namun, apakah kita menidakkan keperluan yang perlu kita sediakan di dunia bagi persediaan akhirat? Bagaimanakah pula pelaburan di dunia yang wajar dilakukan untuk persediaan akhirat kita? Wajar rasanya kita sama-sama bincangkan dan jadikan maklumat bersama ini sebagai panduan kita merentasi dunia untuk menempah tempat yang selesa di akhirat kelak, insyaallah.

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Thursday, March 22, 2012

Wow! MBSB belongs to EPF...


thestar:Thursday March 22, 2012

Biggest abandoned housing project in M'sia to be revived


MBSB to the rescue

KUALA LUMPUR: Malaysia Building Society Bhd (MBSB) will finance the builder and buyers of Malaysia's biggest abandoned housing project, located in Bandar Baru Salak Tinggi, Sepang as part of its efforts to resolve its corporate legacy accounts issue.

MBSB, which is 65.5%-owned by the Employees Provident Fund (EPF), will provide term and bridging finance facilities of up to RM215mil to builder NCT United Development Sdn Bhd (NCT), and an additional RM243mil to the buyers, said MBSB CEO Datuk Ahmad Zaini Othman.

“When the new management (of MBSB) came in in 2009, we wanted to find a way on how we can resolve these legacy problems.

“And one of the ways is to support this project through NCT to revive the project.

Ahmad Zaini: ‘This is a big step for us. Hopefully it will be a win-win situation for all.’

“This project have been unresolved for more than 10 years,” Ahmad Zaini said.

“We foresee they're (the buyers) are going to face problems to secure financing from the banks.

“So we are also putting up another package which is the end financing package to support purchasers.

“We are shifting the corporate risk from NCT to the purchasers,” he added.

Buyers will pay an interest rate of base financing rate minus 0.5%, which is slightly more expensive compared with conventional loans because these borrowers are mostly in their 50s, according to MBSB.

MBSB is also classified as an exempt finance company' and is thus not bounded by any financial regulators in Malaysia.

“It is only fair and just to do so as they (these borrowers) have honoured their initial obligations but failed to receive their end of the bargain,” Ahmad Zaini said.

After discussions with the purchasers, an agreement was reached to divide them into two classes.

According to NCT, one class of buyers who wish to continue with the purchase will have to top up another 30% to the original purchase price of either RM140,000 (for 20X70) or RM97,000 (for 18x60) units.

These units have seen a price appreciation of about 80% since it was abandoned.

The second group of buyers can get a full refund for their units as construction of their units was minimum.

“This is a big step for us.

“Hopefully it will be a win-win situation for all,” Ahmad Zaini said at the signing ceremony here yesterday, adding that there were two more such abandoned legacy projects that were scheduled to be revived.

“NPL (non performing loans) will not go away unless and until you revive the project,” he said, adding that MBSB's net NPL stood at 8.5% as at December 2011.

The project, named Taman Kenanga, was abandoned in 1999.

The developer, Kumpulan Sepang Utama Sdn Bhd (KSUSB), is currently in liquidation.

The signing ceremony of the agreement yesteday involved three parties - MBSB, NCT and KSUSB's liquidators, GTC Corporate Advisory Sdn Bhd.

According to MBSB, the housing project was abandoned due to cost overruns coupled with the “unfavourable economic situation then”.

It will be renamed Sepang Perdana and is expected to be completed within two years, said NCT CEO Zulfikri Saidin.

The project was initially earmarked to have 2,536 units of commercial, linked houses and low cost houses on 110 acres.

Tuesday, March 20, 2012

It's won't be fund by EPF but from the bond...???

EPF not funding the project.... but bond will...???

Refer to previous post.... "EPF to boost sukuk holding...???"

????? Don't understand neither......

Thestar: Tuesday March 20, 2012

Dana Infra to issue bonds worth RM8bil for MRT project


PETALING JAYA: Dana Infra Nasional Bhd would be issuing bonds worth RM8bil in the second half of this year to finance the construction of the My Rapid Transit (MRT) project, less than the RM20bil to RM30bil initially expected, banking sources said.
There is also a likelihood that due to the delay in the bond issuance, the initial bridging loan of RM500mil from a consortium of banks to cover early building work would be raised to a “couple of billion ringgit” so that the MRT project would not suffer any delay, said the source. “The RM8bil bond issuance then would repay the bridging loan,” said the source.
Banking sources also said that Malayan Banking Bhd, CIMB Bank and AmBank were the providers of the bridging loan.
Sources added that a second and larger tranche of bonds would be raised next year, bringing the total raised for the MRT project to between RM20bil and RM30bil. The sources said all the bonds would take the form of ringgit-denominated Islamic bonds or sukuk.
Dana Infra is a special unit of the Finance Ministry created to issue bonds to raise the financing for the MRT building cost. Dana Infra is headed by Fazlur Rahman Ebrahim, who is the current managing director of Prokhas Sdn Bhd, a unit of MoF that was set up in 2006 to manage the residual assets of Danaharta.
The MRT is a proposed electrified passenger rail line running from Sungai Buloh to Kajang that would consist of high-capacity trains running on a dedicated electrified track.
The line would start from Sungai Buloh, cutting through the Kuala Lumpur city centre to Kajang for a distance of 51km.
It would have a 9.5km underground tunnel between Jalan Semantan and Maluri.
Datuk Azhar Abdul Hamid, the CEO of Mass Rapid Transit Corp Sdn Bhd, the project owner of the MRT, has been reported to have said that the actual cost of the Klang Valley My Rapid Transit would only be known by the fourth quarter of this year.
He said recently that financing details were still being worked out by the MoF and Dana Infra.
“It would not be funded by the Employees Provident Fund. Financing will 100% come from the capital markets ... most probably sukuk and bonds. Money for the MRT is there,” he had said.

Wednesday, March 14, 2012

Some News About EPF...

Lets see what is EPF plan now...


Wednesday March 14, 2012

EPF to boost sukuk holdings

Kuala Lumpur: The Employees Provident Fund (EPF) plans to increase holdings of global Islamic bonds to US$3bil by 2013 from US$1.7bil, chief executive officer Azlan Zainol said.
Syariah-compliant notes accounted for 1.5% of EPF’s total bond allocation and the plan was to increase it to 2.5% by 2013, Azlan said in an interview. The company started a programme to buy sukuk in October 2010.
“I’d like to go into more Islamic bonds,” said Azlan, who manages the RM470bil fund. “We want to contribute towards making Malaysia the Islamic financial hub.”
Malaysia pioneered syariah-compliant finance more than 30 years ago and is the world’s biggest market for sukuk.
Global sales of the debt totalled US$8.2bil this year, compared with US$4.5bil a year earlier, according to data compiled by Bloomberg. Offerings reached a record US$36.3bil last year.
EPF planned to broaden its mandate to include overseas non-Islamic securities in the second quarter because of a supply shortage of syariah-compliant debt, Azlan said. The pension fund was seeking to meet its target of investing 5% of funds in foreign-currency bonds, he added.
The company held RM124.6bil, or 27% of its assets, in Malaysian government bonds including syariah-compliant notes at the end of December, making it the single largest owner in the country, according to its website. It also had RM160.7bil in loans and corporate debt, RM167.2bil in stocks, RM14.9bil in money-market bills and RM1.8bil in property.
The EPF was the second largest sovereign pension fund in Asia outside Japan at the end of 2010, according to rankings by consultant company Towers Watson & Co in Hong Kong. Only South Korea’s National Pension Service had more assets. — Bloomberg

Wednesday March 14, 2012

EPF continues to sell equities


The pension fund taking profit after the benchmark index nears record high
PETALING JAYA: The Employees Provident Fund (EPF) sold a further RM288.05mil worth of shares on March 8, after selling RM441.09mil worth a day earlier.
According to filings with Bursa Malaysia, the fund managers engaged by the EPF disposed of a total 49.88 million shares, while also acquiring 10.58 million shares.
Among the EPF's biggest disposals on March 3 were 8.08 million shares in Petronas Chemicals Bhd, seven million shares in YTL Corp Bhd and four million shares in CIMB Bank Bhd.
A source close to the EPF explained that the pension fund took profit to lock up gains after the benchmark FBM KLCI neared an all-time high of 1,594.74 points.
He said about 48% of EPF's gross investment income was contributed by equities last year, and 35.6% of its total investment portfolio comprised equities, valued at about RM167bil, as at December 2011.
The balance of its investment portfolio consisted of 26.5% in government securities and 34.2% in bonds, both fixed income assets that tend to offer lower dividends in line with the current low interest rate regime.
Note: This chart is file graphics from yesterday
“In order to give a higher payout in terms of dividends, EPF has to make money from equities trading,” he said. “When EPF makes money, the normal working adults and contributors are also making money indirectly.”
Meanwhile, an analyst at local research house said the market was poised for more upside, as there had been no pre-election rally yet.
“Furthermore, the FBM KLCI has broadly underperformed as it has only recorded a 2.18% gain year-to-date, whereas other regional markets are experiencing strong double-digit growth,” the analyst said.
Japan's Nikkei 225 recorded a year-to-date gain of 17%, Hong Kong's Hang Seng has climbed 15.7% while Korea's Kospi Index has gained 10.9%.
He said news of the EPF selling down equities might turn the market cautious.
“Although the market has recorded net foreign inflows, selling by domestic funds might spook the market and put more downside on the market,” he said.
On the bright side, he said fundamentals of the market were still intact, with more newsflow from sectors like banking, construction, and oil and gas to be the next catalyst to drive up the market.
“I see no point in EPF sellling down right now as earnings had started to stabilise and first-quarter results should be within expectations or may outperform consensus.
“This is just a portfolio re-balancing by the EPF fund managers, as it is not a outright sell. They are still acquiring despite selling more than buying,” he said.

Tuesday March 13, 2012

EPF goes on selling spree


It disposes of RM441mil worth of shares on March 7
PETALING JAYA: The Employees Provident Fund (EPF) sold a whopping RM441.09mil worth of Malaysia-listed equities on March 7 alone, in line with its trend of active disposals over the last two weeks.
Bursa Malaysia filings showed that on March 7, the EPF along with its portfolio managers dumped a total 83.68 million shares on the open market, substantially more than the 7.4 million shares it had acquired the same day.
The number of shares disposed of represents almost half the total volume traded that day, which stood at 173.14 million shares.
Fund managers reckon that the fund was merely taking profit but its aggressive selling had dragged the FBM KLCI down from its all-time high last week.
The FBM KLCI ended 10.47 points lower at 1,574.83 that day from 1,594.74 on Monday.
“It seems that the portfolio managers under EPF are taking a breather after the market climbed to near all-time highs.
“The number is substantial, and definitely the index would be down from the disposal. Filings next week will show whether the fund has continued with its selling spree this week,” said a fund manager.
Under the Companies Act 1965, substantial shareholders need only notify the listed company of the shareholding transaction within seven days.
Among the biggest disposals on March 7 were 11.43 million shares in Telekom Malaysia Bhd, 10.72 million shares in Axiata Group Bhd, and 10.23 million shares in YTL Corp Bhd.
EPF's divestment of shares has been going on for the last two weeks.
Most notably, between Feb 28 and March 1, it had disposed of about 30.3 millions shares in Maybank.
It had also early this month sold 10.7 million shares in UMW Holdings Bhd, 8.5 million shares in CIMB Group, 6.5 million shares in Telekom Bhd, six million shares in DiGi.Com Bhd, 3.7 million shares in IJM Corp Bhd, and 3.2 million shares in IOI Corp Bhd.
Meanwhile, EPF chief executive officer Tan Sri Azlan Zainol is reported to have said that the EPF had not distorted the market.
“It is all unintentional. We transact over three million shares at any one time; of course the market would be distorted,” he said.
In another development, the EPF is expected to start distributing portions of the Rubber Research Institute of Malaysia land in Sungai Buloh by June.
It is leading the development of the proposed prime township development via Kwasa Land Sdn Bhd, a wholly-owned subsidiary of the EPF.

Sunday, March 11, 2012

Bond Selling??? What is bond???

What is bond? For sure it is not the James Bond the movie...

File:James Bond 007, Gun Symbol logo.png 

Question: What is a Bond?
Answer: A Bond is simply an 'IOU' in which an investor agrees to loan money to a company or government in exchange for a predetermined interest rate. If a business wants to expand, one of its options is to borrow money from individual investors, pension funds, or mutual funds. The company issues bonds at various interest rates and sells them to the public. Investors purchase them with the understanding that the company will pay back their original principal (the amount the investor loaned to the company) plus any interest that is due by a set date (this is called the "maturity" date).

Then if Malaysia to sell bond then to whom? International? What security will support the bond? Syariah compliance?

Jan 31, 2012 -
Malaysia plans to sell RM90 billion worth of bonds this year, to fund the budget deficit and refinance maturing securities.
The new bond issuance for this year is considered flat, taking into account that the debt issuance in the previous year is estimated to have reached RM90.2 billion.
According to Malaysian Rating Corporation Bhd (MARC), the government's deficit target this year is RM43 billion and RM45.6 billion of Malaysian Government Securities (MGS)/Government Investment Issue (GII).
Meanwhile, RAM Holdings Bhd said the market for public debt looks promising for the coming year, given better investor sentiments on future growth potential as pointed out by the flattening MGS yield curve.
"We also expect private debt-financing activities to increase due to a quicker rollout of Economic Transformation Programme (ETP) projects this year as large, longer term investments kick off," said RAM.
It noted that last year's corporate bond market had been very robust in comparison with 2010. By programme value, the third quarter issuance already exceeded the full year of 2010.
"Given the underlying positive investor sentiments and greater rollout of ETP projects, we expect corporate bond issuance in 2012 to rival if not better that of 2011," it said.
RAM also noted that financial services, infrastructure and utilities sectors will continue to dominate the 2012 bond market, similar to the trend seen in 2011.
Other sectors expected to have a strong presence in the bond market include real estate, property, gas, energy and oil.