Malaysia's inflation may have peaked: Zeti

Malaysia’s inflation has probably peaked and price pressures may ease as the global economy deteriorates, central bank Governor Tan Sri Zeti Akhtar Aziz said, joining neighbours in signaling less pressure to tighten policy.

“Right now, we have to wait for greater clarity on the outlook for growth and inflation before taking any further adjustments” on interest rates, Zeti said in an interview in Washington late yesterday.

“Given the more moderate global growth and in terms of the external environment and its implications on the domestic economy, we believe domestic sources of inflationary pressures will be less.”

Interest rates are still at a level that is supportive of growth, which may be “about the same or slightly better” in the second half of this year compared with the first, Zeti said.
The economy grew at the slowest pace since 2009 last quarter. The government will give updated forecasts for growth in 2011 and 2012 when the annual budget is unveiled next week, she said.

Europe’s debt crisis and a weakening U.S. recovery are threatening growth in Asia as demand for the region’s exports eases. Central banks from South Korea to the Philippines have refrained from rate increases in recent months, with Bank Negara

Malaysia keeping the benchmark overnight policy rate at 3 percent this month after four increases from early March 2010 to May this year.

Malaysia’s inflation slowed in August for the second straight month to 3.3 per cent. Consumer prices will probably rise 3 percent to 3.5 per cent in 2011, Zeti said. - Bloomberg

Materialistic society paying a high price for choosing status over their needs

PETALING JAYA: Despite the rising cost of living, Malaysian consumers identify strongly with expensive branded products, said the Federation of Malaysian Consumers Associations (Fomca).

Its chief executive officer Datuk Paul Selvarajsaid instead of buying cheaper in-house brands, consumers opt for branded items that are usually more expensive.

“This shows we have become a materialistic society,” he said during The Star's “Protect Our Pockets” roundtable on the rising cost of living on Tuesday.

He said Malaysians have become obsessed with brands until they overlook cheaper price items which they think have less quality.

“Appearances have become more important than substance. They buy a car not because it could bring them from one place to another but to make them feel better.

“It is about our value system. One example is buying a Honda City when they can only afford a Perodua Kancil,” said Selvaraj.

Other panellists at the roundtable were Malaysian Retailers-Chains Associations secretary-general Valerie Choo, Carrefour marketing communications (Singapore and Malaysia) director Low Ngai Yuen,Pemandu director of National Key Result Areas and National Key Economic Areas D. Ravindran, Pemandu senior manager Philip See andThe Star's executive editor Datuk Wong Sai Wan.

Wong added that the basic rule of smart consumerism was spending within one's means and being mindful of consumption.

“You can come out with all sorts of formulae, but you must spend less than you earn. Everyone should also set aside at least 30% of their earnings for emergencies,” he said.

Choo concurred, adding that: “Financial planning is more than just an ability to manage money but a value that is inculcated at a young age.”

She added that parents play a vital role as role models for their children on the importance of savings.

2011 NEW Perodua Myvi 1.5 Extreme and 1.5 SE Officially Launched in Malaysia

The new 2011 Perodua Myvi 1.3 was launched in June 16 with 3 variants: Standard, Premium and Elegance. To further boost the sales of Myvi model, Perodua now launched 2 new variants – the new Myvi SE and Myvi Extreme with 1.5-litre DOHC 16V DVVT engine to all its prospective customers. The new Myvi 1.5 is marketed with the catchphrase “Lagi Power, Lagi Best”.

Despite the fact that Perodua developed the new Myvi 1.5 at the same time as the current Myvi 1.3 model. However, we think that Perodua have done a great job in styling the car and well responded to their customer requirement and feedback in terms of performance.

The new Myvi SE and Myvi Extreme are priced between RM 50,900 and RM 61,700 depending on the specifications. Both variants offer the choice of 5-speed manual or 4-speed automatic transmission.

On-the-Road (OTR) price in Peninsular Malaysia

Perodua Myvi 1.5 SE
- Manual – RM50,900 – RM 51,400
- Automatic – RM 53,900 – RM 54,400 (with standard audio headunit)
- Automatic – RM 56,000 – RM 56,500 (with multimedia & navigation system)

Perodua Myvi 1.5 Extreme
- Manual – RM 58,200 – RM 58,700
- Automatic – RM 61,200 – RM 61,700

 

The performance of the new Myvi SE and Myvi Extreme have uprated and now fitted with 1.5-litre DOHC 16V DVVT (3SZ-VE) engine. The power plant delivers a maximum power of 76kW (102hp) @ 6,000rpm with a max torque of 136Nm @ 4,400rpm. Likewise, the previous generation of Myvi SE is fitted with the standard 1.3-litre engine.

The new Myvi 1.5 SE and Extreme in manual transmission can accelerate from 0-100km/h in 9.98 seconds, while the auto transmission takes 12.49 seconds. The Myvi 1.5 SE/Extreme manual is considered the fastest Perodua’s vehicle in production.

Based on Perodua Testing Data, the fuel consumption of the New Myvi 1.5-litre manual is tested to deliver 15.9km/litre. While the New Myvi 1.5-litre automatic is tested to deliver 12.9km/litre.

The entire suspension system for both variants have been slightly re-tuned to accommodate the bigger engine for better handling and ride comfort.

Weigh against the new Myvi 1.5 SE and Extreme, the Myvi 1.5 Extreme comes standard with a more aggressively styled body-kit, multimedia system with navigation (built-in GPS, DVD player, Bluetooth with hands-free function, USB port), semi-bucket seats with leather covers, and tinted windows. In the other hand, the Myvi 1.5 SE only comes with fabric semi-bucket seats, standard SE body-kit, and multimedia system with navigation (for Myvi 1.5 SE Auto only).

On the colour variations, the New Myvi 1.5 SE comes in 5 colours (Solid Majestic Yellow, Solid Ivory White, Metallic Mystical Purple, Metallic Ebony Black, and Metallic Glittering Silver). At the same time, the New Myvi 1.5 Extreme only comes in 3 colours (Solid Majestic Yellow, Solid Ivory White, and Metallic Ebony Black).

In the safety aspect, both variants are equipped with dual SRS airbags, ABS with EBD and BA system as standard. Moreover, Perodua claims that the new variants also come with a collision-resistant body to better withstand impact as well as have pedestrian protection to reduce the likelihood of serious injury to pedestrians.

All Perodua including the New Myvi 1.5 SE and Myvi 1.5 Extreme come standard with 3-year/100,000km warranty (and optional 2-year/50,000km extended warranty).

Recently, Perodua was awarded with 4-star Malaysian Vehicle Assessment Programme (MyVAP) rating by the Malaysian Insitute of Road Safety (MIROS) for the New Myvi including the 1.3 (Standard, Premium and Elegence) and 1.5 (SE and Extreme).

Malaysia Proton's hybrid car may roll out in 2-3 years

PUTRAJAYA: Proton Holdings Bhd’s global compact electric and hybrid car, Emas, could enter the market in two to three years, its chairman, Datuk Seri Mohd Nadzmi Mohd Salleh, said.

The electric vehicle, designed by Italdesign Giugiaro and developed by Proton, was first unveiled at the Geneva International Motor Show last year.

Emas, short for Eco Mobility Advance Solution, is a plug-in electric vehicle (EV) or hybrid Range Extender Electric Vehicle (REEV).


The compact car’s powertrain could include a turbocharged small engine of 1.2-litre capacity, or lower.

Proton is currently fleet-testing the Exora REEV and Saga EV to assess their potential.

The national car maker yesterday handed over five Exora REEVs and three Saga EVs to the government to be test driven. This would be the first step before mass-producing them.

The vehicles were received by Prime Minister Datuk Seri Najib Razak in a ceremony witnessed by former prime minister Tun Dr Mahathir Mohamad, who is also Proton’s adviser.

Others who took delivery of the vehicles at the PM’s Department were Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui, Second Finance Minister Datuk Seri Ahmad Husni Mohamad Hanadzlah, Deputy International Trade and Industry Minister Datuk Mukhriz Mahathir and Deputy Transport Minister Datuk Abdul Rahim Bakri.

This is the first phase of fleet testing, a collaboration between Proton, the Energy, Green Technology and Water Ministry and International Trade and Industry Ministry.

Nadzmi said 250 electric-powered cars would be handed to the government in phases for fleet-testing by the year-end or early next year.

2011 New MyVi 1.5-litre to be well-received - Perodua

KUALA LUMPUR: Perusahaan Otomobil Kedua Sdn Bhd (Perodua)expects its new variants, New Myvi Special Edition (SE) and New Myvi Extreme, to be well-received by Malaysians. Its managing director, Datuk Aminar Rashid Salleh, said the new Myvi, which were powered by 1.5-litre engines, had undergone a facelift based on feedback by buyers who wanted to have bigger capacity engines.

"We took 27 months to develop the new generation of Myvi compared with 34 months for the first generation and a lot of improvements have been made," he said at the launch of the car here today.

The new variants would be priced between RM50,900 and RM61,700, he said.

Aminar said following the launch, Perodua expected sales of the new variants to contribute 45%-55% to the overall monthly sales of 9,000-9,500 New Myvi 1.5 model and helped meet the 2011 sales target of 190,000 units.

"Until the today, Perodua has received 2,000 bookings, of which 80% were for Myvi SE. The previous Myvi SE contributed some 30% of the total Myvi sales," he said, adding that the New Myvi 1.3-litre variants received 35,000 bookings with 19,000 units delivered to date.

Earlier, the Malaysian Institute of Road Safety awarded Perodua a four-star Malaysian Vehicle Assessment Programme rating for the New Myvi.

The New Myvi SE 1.5-litre and New Myvi Extreme 1.5-litre come in manual and automatic transmissions. The SE comes in five colours solid majestic yellow, solid ivory white, metallic mystical purple, metallic ebony black and metallic glittering silver. The Extreme comes in three colours solid majestic yellow, solid ivory white and metallic ebony black. - BERNAMA

PM urges Malaysians to invest more within the country

KUALA LUMPUR: Prime Minister Datuk Seri Najib Tun Razak has called on local investors to invest more funds in the country and support plans laid out in the Economic Transformation Programme (ETP), which would strengthen Malaysia's sustainability in the long-term.

He said although Foreign Direct Investments (FDIs) had assumed and would continue to have an important role in Malaysia's development, it should not detract from the important role that domestic investment plays in the local economy.

"More FDIs is more good news, of course," he said but the more Domestic Direct Investments (DDIs) the country have, the less reliant it becomes on FDIs, and the less exposure to the uncertainties of the global economy.

"(Hence) I would like to call upon domestic investors to put your capital in Malaysia, we have provided the platform for you to explore the opportunities and you may create your own wealth in your beloved country," he said at the Domestic Investment Summit 2011 held here Thursday.

Present was Minister in the Prime Minister's Office Tan Sri Nor Mohamed Yakcop, International Trade and Industry Minister Datuk Mustapa Mohamed, his deputy Datuk Mukhriz Mahathir and top corporate figures.

Historically, FDIs have been a bigger contributor to total investments in the country than DDIs.

For instance, the FDI:DDI ratio for total approved investments in the manufacturing sector between 2005 and 2010 was about 60:40.

In the first seven months of the year, the ratio of FDI to DDI in terms of approved investments in the manufacturing sector was 50:50 and the government was watching the development closely, he said.

The approved DDI in the manufacturing and services sector from January to July stood at RM26.9bil, of which, RM15.9bil was registered in the manufacturing sector and the remaining in the services sector.

Under the ETP, the government expect DDIs to outpace FDIs.

Najib said the country needed domestic investments totalling about RM940bil over ten years, or roughly, RM94bil per year, in order to attain high income and developed country status by 2020.

"We have quite some way more to go to reach our DDI target of RM94bil for the whole year," he said, adding that the government always believed there was potential to further boost domestic investment.

Najib, who is also Finance Minister, guaranteed that both local and foreign investors would enjoy the same incentives and there would be no unfair treatment towards both types of investors in the country.

"Tell us also what else we can do to help you increase your investments in the country," he said, adding that the government would make decisions as friendly as possible for businesses to prosper.

He also said the government had provided a wide and diverse range of fiscal and non-fiscal incentives to attract quality DDIs to capital intensive, high technology industries and to the creative and knowledge-based industries.

"We are also making major investments in education and training to increase our pool of knowledge workers and improve the quality of our graduates," Najib added.

The government has identified specific sectors which will be given support and high-impact funding, which includes the halal industry, green energy, biotechnology, aerospace, advanced electronics, the pharmaceutical and medical devices industry and the maintenance-repair-overhaul engineering industry.

"We have worked to reduce the cost of doing business by removing regulatory obstacles, simplifying rules and procedures and, promoting transparency and accountability in the government's delivery system," he added. - Bernama

Fixed Deposit (FD) Rates of Banks in Malaysia (September 2011)

Bank	1 month	3 months	6 months	9 months	12 months
Affin Bank	3.05	3.10	3.25	3.35	3.60
Alliance Bank	3.00	3.05	3.20	3.20	3.25
AmBank	3.00	3.00	3.25	3.25	3.30
CIMB Bank	3.00	3.05	3.10	3.10	3.15
Citibank	2.65	2.75	2.80	2.80	2.90
Hong Leong Bank	2.90	2.95	2.95	2.95	3.10
HSBC Bank Malaysia	2.75	3.00	3.00	3.00	3.15
Maybank	3.00	3.05	3.10	3.10	3.15
OCBC Bank (M)	2.85	2.95	3.00	3.00	3.15
Public Bank	3.00	3.05	3.10	3.10	3.15
RHB Bank	3.00	3.05	3.20	3.20	3.30
Standard Chartered Bank (M)	2.95	3.00	3.10	3.10	3.25
The Bank of Nova Scotia	3.05	3.05	3.10	3.10	3.15
The Royal Bank of Scotland	2.90	2.90	2.95	3.00	3.00
United Overseas Bank (M)	2.90	3.00	3.00	3.00	3.15

With the current economy situation, investing in equity market might not be the best option unless you only invest in pure defensive stocks or invest with established unit trust company.

So with the FD list above, maybe you can compare a little and see if you can move part of your money to FD especially for people with low appetite.

Gold rush leads to bank running out safe deposit box space

PETALING JAYA: It's now near impossible to keep your valuables and important documents in banks.

Banks have run out of safe deposit boxes, with those applying for the facility told to “wait indefinitely”.

The problem has been made more acute with many people buying gold bars and jewellery to cash in on the rising price of the commodity and looking for places to keep them safe.

Checks by The Star with several banks revealed that the waiting list for safe deposit boxes had run into the hundreds, with a Maybank branch officer in Kuala Lumpur saying there were 700 people on the list.

“I am sorry, sir, but we have no more boxes to offer. We can't give you a timeframe of when you will be able to get one,'' said a bank officer .

Association of Banks Malaysia (ABM) executive director Chuah Mei Linsaid the waiting list for safe deposit boxes depended on the suitability of the bank premises in terms of location, size and security.

“Banks also have to determine if there is a requisite demand for such services within the community they serve,” she said.

Due to the problem, many people are resorting to buying safes to store their valuables.

An employee of a popular DIY shop in SS2 said more safes were being bought by customers, who included those operating businesses.

“I can sell about 10 to 20 safes each week.

“I have many people walking in to look for a good, dependable safe,” he added.

Depending on the size and make, the prices of safes start from RM500 to RM3,000 and above.

The rental charge for safe deposit boxes by banks are according to size.

A shoebox-sized box is usually rented out for about RM200 a year.

Due to the inavailability of the safe deposit boxes in banks, many private companies have sprouted up over the past few years offering the service.

One company specialising in such services, the Malaysian Royal Safe Deposit Boxes (MSDB), said it was faced with increasing requests for safe deposit boxes.

“We have many walk-in customers daily and have to add new boxes due to increasing demand,'' said a spokesman who identified himself as Dhaliwal.

Most private companies offer insurance coverage of up to RM100,000 per box, compared with about RM10,000 by banks.

The private firms usually charge higher rentals than banks for safe deposit boxes, with rent of RM290 for a standard-sized box a year.

Another such company official said the service it offered was better than banks.

“We are open round the clock throughout the week while banks operate during office hours and are closed during weekends.”

Telcos suspend 6% tax on prepaid lines

KUALA LUMPUR: All telecommunication companies have agreed to suspend plans to impose the 6% service tax on prepaid lines pending discussion with the Malaysian Communications and Multimedia Commission.

Information, Communications and Culture Minister Datuk Seri Dr Rais Yatim, who had already made it clear his ministry did not support the tax, told a press conference in Angkasapuri on Monday that the telcos must hold off implementing the tax on Thursday as planned.

He also said that the matter would be discussed in the Cabinet meeting on Wednesday.

The move by the telcos is deeply unpopular with users.

Dr Rais had earlier advised the telcos to think about their subscribers, saying that some of the firms had been reaping profits of between RM800mil and RM1.2bil annually.

They have been earning attractive profits, notwithstanding paying the levy on behalf of subscribers since 1998, he had said.

Prime Minister Datuk Seri Najib Tun Razak had on Friday said the plan to impose the service tax from Thursday was not approved by the Finance Ministry, adding that the people were already being burdened by the rising cost of living.

Source: Star online

Bursa Malaysia Price Target - September 2011

LATEST PRICE TARGETS

Date	Stock Name	Last Price	Price Target	Upside/Downside	Price Call	Source
12/09/2011	AIRPORT	6.22	7.36	+1.14 (18.32%)	BUY	OSK
12/09/2011	AWC	0.22	0.27	+0.05 (22.72%)	HOLD	ZJ
12/09/2011	GAMUDA	2.92	4.10	+1.18 (40.41%)	BUY	MAYBANK
12/09/2011	PUNCAK	1.20	1.42	+0.22 (18.33%)	HOLD	CIMB
12/09/2011	UNIMECH	0.77	1.05	+0.28 (36.36%)	BUY	ZJ
09/09/2011	ARMADA	3.65	4.40	+0.75 (20.54%)	BUY	CREDIT SUISSE
09/09/2011	DIGI	31.76	32.20	+0.44 (1.38%)	BUY	HWANGDBS
09/09/2011	DIGI	31.76	35.05	+3.29 (10.35%)	BUY	ECMLIBRA
09/09/2011	DIGI	31.76	34.00	+2.24 (7.05%)	BUY	CIMB
09/09/2011	DIGI	31.76	34.00	+2.24 (7.05%)	BUY	RHB
09/09/2011	DIGI	31.76	35.50	+3.74 (11.77%)	BUY	MIDF
09/09/2011	GENM	3.43	4.50	+1.07 (31.19%)	BUY	CIMB
09/09/2011	KLK	21.50	25.35	+3.85 (17.90%)	BUY	HWANGDBS
09/09/2011	MBMR	3.07	3.60	+0.53 (17.26%)	BUY	MIDF
09/09/2011	PROTON	2.78	3.30	+0.52 (18.70%)	HOLD	MIDF
09/09/2011	PUNCAK	1.20	1.82	+0.62 (51.66%)	TRADING BUY	OSK
09/09/2011	SOP	4.26	5.67	+1.41 (33.09%)	BUY	OSK
09/09/2011	TCHONG	4.72	4.94	+0.22 (4.66%)	HOLD	MIDF
09/09/2011	UMW	7.19	7.00	-0.19 (2.64%)	HOLD	MIDF
08/09/2011	AFG	3.45	3.80	+0.35 (10.14%)	BUY	OSK
08/09/2011	ALAM	0.78	0.85	+0.07 (8.97%)	HOLD	MAYBANK
08/09/2011	AMMB	6.28	6.95	+0.67 (10.66%)	HOLD	OSK
08/09/2011	CIMB	7.06	7.40	+0.34 (4.81%)	HOLD	HWANGDBS
08/09/2011	CIMB	7.06	7.40	+0.34 (4.81%)	HOLD	DBS VICKERS
08/09/2011	CIMB	7.06	8.20	+1.14 (16.14%)	HOLD	OSK
08/09/2011	DELLOYD	3.58	4.77	+1.19 (33.24%)	BUY	ALLIANCE
08/09/2011	DIALOG	2.43	2.94	+0.51 (20.98%)	BUY	MIDF
08/09/2011	GAMUDA	2.92	3.79	+0.87 (29.79%)	BUY	RHB
08/09/2011	HARTA	5.56	7.33	+1.77 (31.83%)	BUY	AFFIN
08/09/2011	HLBANK	11.88	12.70	+0.82 (6.90%)	HOLD	OSK
08/09/2011	KOSSAN	2.71	4.18	+1.47 (54.24%)	BUY	AFFIN
08/09/2011	MAYBANK	8.61	9.60	+0.99 (11.49%)	BUY	OSK
08/09/2011	MAYBANK	8.61	10.60	+1.99 (23.11%)	BUY	HWANGDBS
08/09/2011	PBBANK	12.88	14.00	+1.12 (8.69%)	HOLD	OSK
08/09/2011	PETGAS	13.50	14.40	+0.90 (6.66%)	BUY	MIDF
08/09/2011	RHBCAP	8.25	9.90	+1.65 (20%)	BUY	OSK
08/09/2011	SUNWAY	2.14	3.12	+0.98 (45.79%)	BUY	HLG
08/09/2011	SUPERMX	2.64	4.36	+1.72 (65.15%)	BUY	AFFIN
08/09/2011	TOPGLOV	4.29	4.62	+0.33 (7.69%)	SELL	AFFIN
08/09/2011	UEMLAND	2.06	2.70	+0.64 (31.06%)	BUY	MAYBANK
08/09/2011	WASEONG	2.03	2.73	+0.70 (34.48%)	BUY	MIDF
07/09/2011	ALAM	0.78	1.50	+0.72 (92.30%)	BUY	CIMB
07/09/2011	ALAM	0.78	1.00	+0.22 (28.20%)	BUY	DBS VICKERS
07/09/2011	ALAM	0.78	0.85	+0.07 (8.97%)	HOLD	MAYBANK
07/09/2011	BJTOTO	4.26	4.85	+0.59 (13.84%)	BUY	MAYBANK
07/09/2011	CHOOBEE	1.45	1.60	+0.15 (10.34%)	BUY	AFFIN
07/09/2011	DRBHCOM	2.05	2.95	+0.90 (43.90%)	BUY	RHB
07/09/2011	HELP	2.12	2.38	+0.26 (12.26%)	HOLD	OSK
07/09/2011	HIAPTEK	0.87	0.70	-0.17 (19.54%)	SELL	AFFIN
07/09/2011	MBMR	3.07	3.25	+0.18 (5.86%)	HOLD	RHB