Saturday, October 17, 2015

Anong the monkey that brings money



Monkey antics: The crowd looking on while Anong tears up the cover of the tablet.
Monkey antics: The crowd looking on while Anong tears up the cover of the tablet.
SARIKEI: Jakar, in the normally quiet outskirts of this town, has seen a drastic change to its pace of late, all thanks to a monkey.
Thousands of people – some from as far as Singapore – have been converging here after news went viral that many have struck it rich from 4-D numbers.
And it is all because of claims that a monkey called Anong has brought them luck.
About an hour’s drive from Sibu, the place is especially packed with people from Sarikei, Sibu, Bintangor, Kanowit and Julau on weekends and during 4-D draw days.
A Sarikei resident who gave his name only as Lau said that ­during peak hours, there would be as many as 1,000 people at a time squeezing their way to get close to the monkey.
“The monkey was in fact spotted by passers-by some months ago walking along the road shoulder. People stopped by to give it food to eat. They tried their luck at 4-D betting after the monkey climbed onto the roof of their car and most of them became instantly rich,” claimed Lau.
He said a woman in Sarikei even struck a 6D number recently when she bet on the number, 505059.
But it was only about two weeks ago – after news went viral on social media – that people started coming in droves to see the monkey.
A resident from Sibu, Jelita Kempa, 43, rushed to the place with her son Max Smith and a daughter after hearing the story from her boss.
Max, however, had his tablet snatched by Anong, which tore up its cover using its mouth.
“I will buy the tablet number (serial number) this weekend to try my luck. Who knows, I might be among those lucky punters,” she said.
Businessman Wong Kai Ping feared that with all the publicity on social media, “somebody might kidnap the monkey”.

Johor Sultan’s dream comes true with ‘Palace Truck’



Filepix of the Sultan inside one of the buses that he used for Kembara Mahkota
Filepix of the Sultan inside one of the buses that he used for Kembara Mahkota
MELBOURNE: Johor ruler, Sultan Ibrahim Ibni Almarhum Sultan Iskandar, has achieved his dream when he took possession of the world's most expensive Mack truck at a ceremony at King George Square in Brisbane's central business district Thursday.
The Super-Liner took a year to build at the manufacturer's Wacol headquarters, south-west of Brisbane.
According to ABC News, the rig has some of the fanciest extras around, including a six-camera closed-circuit television system, two flat screen television sets, a stone-topped kitchen area, barbecue, double bed and seats with 72,000 stitches of gold thread.
It also boasts a solid-gold tiger hood ornament.
"This is my dream   am I smiling?" the Sultan said of his "palace truck".
The price tag is a well-kept secret, but smashes the previous record of A$481,000 (RM1, 459, 660) for a customised rig.
The Sultan said he was delighted with the end result.
"I have always appreciated Australia's engineering skills and have collected a few Holden cars over the years.
"I am looking forward to showing its workmanship to the people of Johor as soon as the Super-Liner is shipped over," he said.
The Sultan ordered the heavy-duty rig to tow his power boat around the country.
But his first drive will be a charity run when it arrives in Malaysia at the end of this month.

Nicol exits US Open in the quarter-finals



Nicol lost to Massaro (left) 11-8, 11-4, 6-11, 8-11, 10-12 in the US Open quarter-final tie. - SquashSite
Nicol lost to Massaro (left) 11-8, 11-4, 6-11, 8-11, 10-12 in the US Open quarter-final tie. 
PETALING JAYA: Malaysian squash icon Nicol David’s year is getting from bad to worse.
In September, she was dethroned after 109 months as the world No. 1 by Egypt’s Raneem El Welily, with a loss to the Egyptian Nouran Gohar in the quarter-finals of the China Open.
And the 32-year-old Nicol can’t seem to get out of the rut after she blew a two-set lead to lose 11-8, 11-4, 6-11, 8-11, 10-12 to England’s Laura Massaro in the last eight of the US Open on Thursday.
The defending champion however started strongly at Philadelphia’s Drexel University, taking control of the first set.
She then led 7-1 in the second and looked set for an easy victory.
But Massaro, famed for her mental strength and grit, came back strongly to take the third and fourth sets to force a decider.
In the rubber, it was neck and neck from six-all until the tie-break but an uncharacteristic mishit by the Penangite eventually handed Massaro the win after 70 minutes.
This is the second time Nicol has fallen to the 31-year-old Englishwoman this year. She lost to the world No. 4 in five sets at the British Open semi-finals in May.
“Trailing two games against Nicol is an uphill battle but I knew I could do it because that’s what happened the last time we played. Maybe that was on her mind as well,” said Massaro.
“I was making it hard for myself after the first two sets went so quickly. But I came out fighting in the third because I wanted a respectable score ... I wasn’t going to lose 3-0.
“This is probably one of our scrappiest matches and it came good for me in the end.”
Massaro, the 2013 world champion, will take on Egypt’s Omneya Abdel Kawy for a place in the final.
Sixth seed Omneya also needed five sets to subdue India’s Dipika Pallikal 9-11, 11-6, 11-8, 2-11, 11-3.
In the men’s event, 35-year-old world No. 2 Nick Matthew was at his best as he gave Egypt’s Fares Dessouki – 14 years his junior, a squash lesson.
The Englishman was never troubled easily rounding up an 11-6, 11-2, 11-7 win to set up a last-four clash with another Egyptian, sixth seed Omar Mosaad. 

Mercy Malaysia: Focus now on disaster preparedness



Ahmad Faizal accepts a donation from Sultan Nazrin for the Syrian Winter Fund
Ahmad Faizal accepts a donation from Sultan Nazrin for the Syrian Winter Fund

KUALA LUMPUR: Mercy Malaysia is now focused on the importance of disaster preparedness to prepare for floods especially in the East Coast states and reduce the effects of disaster.

Its president Datuk Dr Ahmad Faizal Mohd Perdaus said Malaysians could no longer take for granted that the country was protected from natural disasters, as it had experienced two disasters this year - floods in the East Coast states and the earthquake in Sabah.
"Our focus is now towards preparedness for disasters, having previously moved in to provide relief when disasters happened.
"We do not just provide medical and emergency relief after a disaster, but we also help communities to effectively prepare and protect themselves and their livelihoods in the event of natural disasters," he said in his speech ahead of the 16th Mercy Malaysia Annual Dinner, here.
The Sultan of Perak, Sultan Nazrin Shah, who is also the royal patron of Mercy Malaysia, and Raja Permaisuri Perak Tuanku Zara Salim attended the dinner which raised over RM350,000.
During the dinner, Sultan Nazrin Shah also launched Mercy Malaysia's Syrian Winter Fund as part of the organisation's Natural Disaster Preparedness Programme.
Ahmad Faizal said the fund was aimed at ensuring the well-being of victims of war in Syria in the coming winter months.
He also urged Malaysians to ignore political connotations and focus on aiding refugees.
"We know that when it comes to Syria, some people have reservations in coming up with support, due to political and other reasons.
"Let's put this aside and focus on the victims, the refugees whom we expect to be hard hit during the coming winter months," he added.
Ahmad Faizal said since their Syrian relief programme was launched three years ago, the fund had received RM2mil in donations, which needed to be driven up ahead of winter in Syria which starts next month.

Fuel price, toll hike worry Malaysians ahead of Budget 2016



PETALING JAYA: With Budget 2016 just a week away, many Malaysians are voicing out their concerns over the increasing cost of living in the country.
They have flooded Prime Minister Datuk Seri Najib Tun Razak's official Facebook page with complaints on the recent toll hike and fuel increase that have added to their rising daily expenses.
Several have suggested that Budget 2016 should increase the salaries of the working population to counter the rising cost of living.
Facebook user Mohamad Zulkiffli expressed hope that the Budget would focus on private sector workers.
"The minimum wage should be increased from RM900 to RM1,500," he said.
"The cost of living now has increased a lot, maybe by increasing the minimum wage it would help bring some confidence to the public," said Zulkiffli.
Affordable housing was also a priority for Malaysians, especially those in the lower income group.
Another Facebook user Muhd Alif Firdaus Firdaus said Budget 2016 should be focused on the low-income earners with salaries below RM2,000 a month.
"Please take the problems of the poor people seriously. Affordable housing is a priority in this income group," he said.
Many Malaysians also aired their grouses on the recent toll hike, with many calling for the toll increase to be repealed.
"The toll is expensive. I have to pay more than RM100-300 a month," said Low Ping Hui.
Budget 2016 will be tabled in Parliament on Oct 23 at 4pm.

Man set on fire while in toilet



Unfortunate incident: Ayob being taken to hospital after he was set on fire at a shopping complex toilet in George Town.
Unfortunate incident: Ayob being taken to hospital after he was set on fire at a shopping complex toilet in George Town.
GEORGE TOWN: A 56-year-old man is battling for his life after he was set on fire by a man while he was in a toilet at a shopping complex here.
Ayob Sudin, a real estate broker from Tanjung Tokong, suffered 60% burns on his head, face, body and legs during the 9.57pm incident on Thursday.
State Fire and Rescue Department senior assistant investigating officer Mohd Shah Irwan Othman said firemen reached the scene in less than 10 minutes after receiving a distress call.
“We found the victim badly burned but still conscious. We were told he managed to run out from the toilet asking for help and the public put out the fire using a fire extinguisher,” he said at the scene.
Mohd Shah said preliminary investigations showed that somebody had thrown a burning cloth dipped in either kerosene or petrol into the cubicle.
“We are checking the motive for the attack. The case will be handed over to the police for further investigations,” he said.
George Town OCPD Asst Comm Mior Faridalathrash Wahid said the victim was fighting for his life.
“He is being treated at the Red Zone of the Penang Hospital.
“He was initially conscious and told us that he did not see the culprit,” he said.
ACP Mior said CCTV footage showed a man going into the toilet about three minutes ahead of the victim.
“The suspect later came out wearing a helmet and holding a bag which we believe belonged to the victim,” he added.
ACP Mior said the case was being investigated under Section 307 of the Penal Code for attempted murder.

Liow: China’s Belt and Road initiative positive step for project



Warm ties: Liow speaking on regional cooperation at the Asian Political Parties’ Special Conference on the Silk Road in Beijing, China.
Warm ties: Liow speaking on regional cooperation at the Asian Political Parties’ Special Conference on the Silk Road in Beijing, China.
BEIJING: The Pan-Asian Railway linking Kunming to Singapore has received a much-needed boost with the introduction of the Belt and Road initiative.
Transport Minister Datuk Seri Liow Tiong Lai said this network of railways had been discussed for many years, but the countries involved did not push for its rapid implementation until China’s proposal of the new Silk Road came along.
“We can clearly see that the countries have more confidence on this proposal and are now determined to complete this railway project.
“Once completed, the Pan-Asian Railway will help all countries to grow economically,” he said.
Liow, who is also MCA president, was in Beijing to attend the Asian Political Parties’ Special Conference on the Silk Road.
The Belt and Road – land-based Silk Road Economic Belt and ocean-going 21st century Maritime Silk Road – is a framework put forth by Chinese President Xi Jinping to foster connectivity and cooperation among countries along the route.
A Silk Road Fund and an Asian Infrastructure Investment Bank have been set up to support infrastructure development.
Liow said the Belt and Road, together with the network of Asean Economic Community, would contribute significantly to economic integration and regional cooperation.
He added that Malaysia, as the chair of Asean this year, wanted to build meaningful and long-lasting economic relationships not only in the region, but also across various economic groupings such as the Asean+3, Asean+6 as well as the Regional Comprehensive Economic Partnership.
To advance economic cooperation between south-east and north-east Asia, Liow said logistics and port cooperation was among the key areas to be given attention to.
“Logistics and infrastructure development will not only spur trade, but will also bring about enormous spillover benefits and spin-off opportunities, opening up new avenues of growth in a vast number of industries and other ancillary sectors across the value chain, from tourism, trade and investment to engineering and communications, to the SME industry, entrepreneurship and talent development,” he said.
Liow also called upon all countries to draw up concrete plans to enrich the content of Belt and Road, instead of just voicing their verbal support for the ambitious plan.
Elaborating on the concept of ­policy coordination, which was one of the five aspects of connectivity championed by the Belt and Road, Liow told reporters later that countries should draw up policies to enable participation of foreign partners in respective sectors.
Malaysia, for instance, allowed 40% of foreign equity ownership in ports, a new approach in order for the country to benefit from the Silk and Road initiative.
Another example was the “friendly state and province” status between Malacca and Guangdong.
“We did not have a foreign policy to establish such a relationship between a state and province in the past.
“But because of the Silk Road initiative, the Cabinet gave its special approval after a detailed discussion. This will encourage investment in Malacca,” he said.
The three-day event, which ended yesterday, was attended by representatives of more than 60 political parties and organisations from some 30 countries.
The International Conference of Asian Political Parties’ standing committee endorsed the declaration of the “Beijing Initiative”, rendering its support for the Belt and Road strategy that is built upon the spirit of peace, harmony, cooperation, openness, mutual learning and mutual benefit.

Three charged with kidnapping boy



KAJANG: Three men were charged in a magistrate’s court here, a week after the audacious kidnapping of a boy near his kindergarten.
They were accused of taking the five-year-old for a RM300,000 ransom in a jaw-dropping scene which was captured on closed-circuit camera. The footage went viral on social media.
Labourer Riduansyah Yahya, lorry driver Mohd Saifulamry Jarkasi and businessman Siow Kek Keong were brought to court handcuffed at about 11.04am yesterday for the charge to be read before magistrate Abdul Jalil Salam Muhamad.
Riduansyah, 32, Mohd Saifulamry, 28, and Siow, 44, were jointly charged with intent to abduct or wrongful confinement of the boy by the roadside of Jalan Seroja beside a house in Taman Setia, Sungai Chua, at 9.26am on Oct 9.
Facing the law: The three suspects arriving at the Kajang Magistrate’s Court yesterday.
Facing the law: The three suspects arriving at the Kajang Magistrate’s Court yesterday.
They were charged under Section 3(1) of the Kidnapping Act for abduction, wrongful restraint or wrongful confinement for ransom.
Under that section, an offender could face death or life imprisonment and possible whipping if found guilty.
No plea was recorded and no bail was offered. They appeared calm after the charge was read to them.
The entire process took just four minutes.
Magistrate Abdul Jalil fixed Nov 21 for mention pending a report from the chemist.
S. Abirami was the Deputy Public Prosecutor while Mohd Fadli Yaakob acted for Mohd Saifulamry and Datuk Geethan Ram Vincent for Siow. Riduansyah was unrepresented.
Selangor police chief Comm Datuk Abdul Samah Mat was quoted in news reports that the boy’s father received a call about 90 minutes after his son’s disappearance.
The alleged kidnappers had demanded RM300,000 from him.
Comm Abdul Samah said the ransom was paid at about 5pm the same day by the father, who dropped off the cash near a shopping centre at Saujana Impian, Kajang.
He said three men were nabbed within 24 hours after the alleged kidnapping.
Police also recovered almost all of the RM300,000 ransom that was paid.
The boy was reunited with his family after going missing for eight hours when a taxi driver sent him home.
Earlier, before the men were charged, anxiety ran high for the family members of taxi driver Hanizan Mohamed Radzi who waited for his release after a week under remand.
Hanizan, 41, arrived in a police car at about 9.30am yesterday and was brought to the registration counter on Level 4 of the building to complete the procedures for his release.
As soon as he saw his family members there, Hanizan wept and immediately hugged his 75-year-old father.

Is there a deal on AirAsia?



Privy news: Does group CEO Fernandes have any plans to take AsiaAsia private? – Reuters
Privy news: Does group CEO Fernandes have any plans to take AsiaAsia private? 
LAST week AirAsia Bhd’s shares rose on talk of it being taken private.
But the company eventually denied knowledge of it, though its major shareholders chose to remain silent.
This week, a different rumour seems to have emerged.
As the story goes, AirAsia and Khazanah Nasional Bhd have resumed talks to do a deal. Recall that they had struck one before, which was unwound later.
There is also talk that AirAsia’s owner Tan Sri Tony Fernandes is talking to some investors in North Asia and a British based private equity firm.
On the possible deal with Khazanah, a source close to the investment agency said “it is not true’’ though Khazanah declined to comment on the matter.
Just to re-cap, AirAsia was in a deal to be partner of Malaysia Airlines Bhd (MAS) but the deal was aborted after a few months because the then powerful unions of MAS raised enough noise about the deal to get the notice of the powers that be, which then intervened. Malaysia Airlines Bhd (MAB) has since taken over from MAS.
With that deal not likely, the question remains, is there a need for AirAsia to be privatised, and whether funds are really keen to come in?
Shares of AirAsia tumbled from its peak of RM2.60 in April to a low of 78 sen in September. They plunged because Hong Kong based GMT Research raised concerns about its financial accounts and claimed that its business model was not sustainable.
AirAsia has since made some adjustments after the GMT report emerged.
The privatisation talk emerged after a media report said that Fernandes and his long time business partner, Datuk Kamarudin Meranun went across to Singapore to meet bankers and the founders hinted to investors on taking the airline private in a management led buyout.
Subsequently, AirAsia told Bursa Malaysia that it was not aware of any privatisation.
Both Fernandes and Kamarudin hold 19% in AirAsia.
Maybank Investment Bank reckons that the cost of privatising AirAsia would be around RM2.84bil for the remaining 81% stake.
The talk continues
AirAsia has RM12bil of debt.
Fernandes did not reply to queries from StarBizWeek.
By taking the company private the founding members can take their time to sort out the issues as the airline will be off the public glare. This will be the same route that MAS has taken, says an industry executive.
“AirAsia’s problems are primarily its joint ventures in the Philippines, Indonesia, and to a small extent India. Secondly, part of its new fleet is doing sub optimal routes as slots are becoming increasingly challenging for key prime airports.
“The full service carriers like MAB, Thai Airways International and Garuda are putting pressure on yields as they dump fares to compete/maintain market share relative to the low cost carrier’s capacity growth,’’ he says.
The good thing is that AirAsia has deferred some of its deliveries.
The playground in Asia has been competitive and it remains to be seen if the full service carriers will continue to dump fares to compete or will they invest in product offerings to try to push yields up, especially as they scale down long haul and focus on regional flights which overlap with AirAsia, he adds.
For now, MAB, operating since September 1 has yet to announce its business plan. But it is obviously dropping fares to win travellers. This weekend it is offering several destinations at discount prices and this forces the low cost airlines to also drop or match fares.
Malindo Air, another local competitor is offering discounted fares and will begin flights to Amritsar (first direct link from Asia) in India, next week and to Perth in November. AirAsia just launched its 3 million seats up for grabs yesterday.
Experts say demand for air travel has not shown signs of weakening despite threats of an economic slowdown and a weaker ringgit against major currencies. However they add that people are more selective of where they want to go and regional travel will remain the top choice for travellers in this region.
Maybank in a recent report says that load factors for Asia-Pacific airlines and global airlines are steadily rising, and the annualised figures are at record levels. This is despite the fact that airlines have accelerated capacity deployment in 2015.
“Clearly, the underlying demand is healthy and consumers are not cutting back their expenditures,’’ it added.
The bank’s report said ticket yields are down as the lower jet fuel prices have enabled airlines to pass on some of the savings to customers.
Historically, airlines performed well in a deflationary environment as they can effectively leverage on the high price elasticity to demand and in this environment, the onus is on airlines to provide attractive discounts in order to boost load factor and capacity utilisation, it adds.

Don't write off old boys Lin Dan, Chong Wei



ODENSE (Denmark): Lee Chong Wei and his nemesis Lin Dan have something in common – they both celebrate their birthdays in October.
China’s Lin Dan celebrated his 32nd birthday on Wednesday while Malaysia’s Chong Wei will turn 33 next Wednesday.
Despite getting on in years, the two superstars have promised to generate more interest in badminton by giving the younger players a run for their money.
On the opening day of the Denmark Open on Wednesday, Chong Wei knocked out Commonwealth Games champion P. Kashyap of India 21-14, 21-15 to set up a clash with Wei Nan of Hong Kong.
Lin Dan stayed a bit longer on court in his 21-15, 21-18 win over Raul Must of Estonia. He will face Hu Yun of Hong Kong next.
If they win their second-round matches, Chong Wei will likely meet top seed Chen Long of China in the quarter-finals while Lin Dan is set to play homester Viktor Axelsen.
Chong Wei said he was on a rebuilding process, but was confident of coming out of his brief slump.
“I didn’t do well in the last two Superseries (in Japan and South Korea) but I am slowly making my way up,” said Chong Wei.
“I was injured for three months before the 2012 London Olympics, but I made a comeback to win a silver medal. This time, I am trying to make a comeback after eight months following the doping ban. It is harder but I have not lost the passion yet. I know I can get better.
“I used to win Superseries titles and enjoy toying with my opponents. I am doing all that I can to get back that feeling again,” he said.
Chong Wei added that he was also enjoying his other activities to promote the sport.
Two days before the start of the championships, Chong Wei and Lin Dan joined Dane Peter-Gade Christensen and Taufik Hidayat of Indonesia in an exhibition match.
“After the matches, we discussed about future plans to promote badminton in Africa and South America. I am looking forward to great years ahead for the sport,” said Chong Wei.
Like Chong Wei, Lin Dan has no plans to cut down on his playing schedule yet.
“I have grown a year older but I am still beating all these young boys. They cannot win against this old man yet,” quipped Lin Dan.
Lin Dan was treated to a birthday celebration by the organisers on Wednesday. He received gifts and was touched by the gesture.
To show his appreciation, he has promised to dazzle all the way to the title again. He last won the Denmark Open in 2007.

Cabbie on bond and likely to be key witness



KAJANG: Taxi driver Hanizan Mohamed Radzi remains on a court bond despite his release because he is expected to appear in court as a key witness, said a source.
“The bond is important to ensure he appears in court as a witness,” the source said.
Yesterday, Hanizan was released with a bond under Section 49 of the Criminal Procedure Code, a week after he was arrested.
Police have cleared him of any involvement in the crime, saying they found no link between Hanizan and the alleged kidnappers.
When a court offers bail to a suspect, it is usually in the form of a bond with security.
A source from the Kajang police headquarters said it was up to the court to decide on the conditions of the bond.
“The bond varies according to the court’s wishes. Sometimes it is a cash deposit. Other times, it is a bond of good behaviour,” he said.
The source said in Hanizan’s case, he was subjected to a bond as he might be considered a key witness in the case.

Tommy gets a helping hand from Rashid in Denmark



Rashid (left) and Tommy at Odense for the Denmark Open.
Rashid (left) and Tommy at Odense for the Denmark Open.
ODENSE (Denmark): Indonesia’s Tommy Sugiarto is making great strides in the Denmark Open, thanks to some help from Malaysia’s former great Rashid Sidek.
Tommy, the son of former world champion Icuk, upset fifth seed K. Srikanth of India 21-15, 21-17 in the second round on Thursday to check into the quarter-finals.
The Indonesian is gaining valuable experience under former national coach Rashid, who is now the Sports Affairs chief coach, since coming under the club as a sponsored player three months ago.
“I have left PBSI (All-Indonesia Badminton Association) since February. Sports Affairs is one of my sponsors now,” said Tommy.
“I train regularly in Malaysia because I’m playing in the Purple League for the club.
“I have been learning quite a bit from Rashid. He was a world-beater before and it’s a privilege to train under him,” said Tommy.
On his chances in the Denmark Open, Tommy said that he hopes to go far.
“It gets tougher but I hope to achieve good results here,” said Tommy.
He will meet the winner of the match between Jan O Jorgensen of Denmark and Dionysius Hayom Rumbaka of Indonesia.
Rashid, who is in Odense said: “I thought my job as coach will be confined in Malaysia after I left BAM but here I am. It is a different challenge but I am happy to be here to help Tommy.”

Malaysian pairs reach Taiwan Open semis



Wee Gieen-Ee Yi were beaten by Tsz Kit-Cheuk Him 21-14, 21-19 in the quarter-finals.
Wee Gieen-Ee Yi were beaten by Tsz Kit-Cheuk Him 21-14, 21-19 in the quarter-finals.
PETALING JAYA: Independent shuttlers Hoon Thien How-Lim Khim Wah stayed on track for their first international title this year when they reached the Taiwan Open semi-finals.
Thien How-Khim Wah defeated Thailand’s Wannawat Ampunsuwan-Tinn Isriyanate 21-18, 21-14 in the men’s doubles quarter-finals.
They will take on Chan Tsz Kit-Law Cheuk Him of Hong Kong for a place in the final.
Since turning professional in March, they have played in 10 international tournaments but have yet to make the final.
Earlier, the Badminton Association of Malaysia (BAM)’s Tan Wee Gieen-Teo Ee Yi were beaten by Tsz Kit-Cheuk Him 21-14, 21-19.
There was also joy for Malaysia in the mixed doubles when Tan Kian Meng-Peck Yen Wei defeated South Korea’s Lee Yang-Kuo Yu-wen 21-15, 21-15 to set up a meeting with Indonesia’s Ronald Alexander-Melati Daeva Oktaviani in the semi-finals. 

Increase in rates a necessity, say concessionaires



KUALA LUMPUR: Toll increases are a necessity, according to concessionaires of several tolled highways in the country.
They pointed to the complexity of financing and pricing their products, having to meet shareholder expectations for a reasonable rate of return and enduring many early years of losses as the reasons.
Lingkaran Trans Kota Holdings Berhad (Litrak) chief operating officer Richard Lim said several highways even operated at a loss and had their operating expenses subsidised by other more profitable highways.
He said Litrak’s Sprint Expressway incurred losses amounting to RM440mil for 14 years and had only started making profit this year.
He said that it cost RM40mil to operate the expressway, with the largest portion being financing expenses.
Lim said the rates for tolls usually started low and increased gradually to account for depreciation.
“A single toll rate could be used over the 36-year period, but that would mean having to start at a higher rate, for example RM2.50 instead of RM1,” he said.
Lim added that none of the investors of the Sprint Expressway had received any returns since the highway started operations.
“Being a public-listed group, the shareholders expect a reasonable rate of return on their investments.
“Otherwise, we might as well leave the cash in the bank to earn interest,” he said.
Litrak is the highway concessionaire which built and manages the Damansara-Puchong Expressway and the Sprint Expressway.
The Sprint Expressway saw an increase of RM1 for all its toll gates starting yesterday.
Ekovest Berhad managing director Datuk Lim Keng Cheng said a gradual increase in toll rates at DUKE highway was necessary, as the financing of the project had been structured in a manner where bonds were raised in tranches with different maturity dates.
He added that the project financing under Ekovest Bhd – which operates the Duta-Ulu Klang Expressway (DUKE) – was done in a way where there was a need to match the toll revenue collected with the maturity of these debt instruments.
“Without a toll rate increase, this may impact the toll concessionaires’ short-term cash flows. As such this could affect their ability to service their debt obligations as well as to maintain certain required debt service coverage ratios in order to maintain the ratings of their debt issuances,” he said in a statement yesterday.
Lim also noted that there hadbeen no increase in the toll rate since it opened in 2009, which presented financing risks to the concession.
The DUKE project, said Lim, had not reached its break even point since it started operations in 2009. It is in a cumulative net loss position of RM190mil.
“Although these risks are partly mitigated by receipt of compensation from the Government, it is not wise to freeze the pre-planned toll rate revision.
“The sanctity of contracts must be maintained to ensure that the investing public have confidence to further invest in Malaysia,” said Lim.

Mustapa: MPs must first understand TPPA before deciding



KUALA LUMPUR: International Trade and Industry Minister Datuk Seri Mustapa Mohamed wants all Members of Parliament (MPs) to understand the Trans Pacific Partnership Agreement (TPPA) before they vote at a special Dewan Rakyat session to be held in January.
Mustapa, who has been busy holding dialogue sessions with various groups in the country since TPPA negotiations was concluded on Oct 5, said the text of the trade deal would be released in the coming weeks.
“We want everyone in Parliament to understand first before deciding. Once a decision is made, no one should question our MPs,” he told reporters after a #TanyaGomen session on TPPA at Platinum Sentral on Friday.
He said that parliamentarians will be given time to read and understand the text before the special session is held.
Mustapa expects that among the concerns of MPs and the public will be the country’s sovereignty and bumiputra rights. He assured that the Government will ensure that both issues will be protected.
Malaysia and 11 other Pacific Rim countries reached a deal on Oct 5 to cut trade barriers and set common standards.
The countries involved in the TPPA -  Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States, and Vietnam - form 40% of the world economy.

Chua urges couples to check Youth Housing Scheme



PUTRAJAYA: With buying a house continuing to be a struggle for young Malaysians, the Finance Ministry has urged young couples to take advantage of the recently launched Youth Housing Scheme.
Deputy Finance Minister Datuk Chua Tee Yong said that since its soft launch in July, the scheme had approved more than 200 applications out of the 20,000 opportunities available.
“We have only received about 500 applications so far and 273 were approved as of Sept 30.
“There are 20,000 spots available, and they are offered to those who fulfil the requirements, on a first-come, first-served basis.
“Probably many people are not fully aware of the scheme, so I hope more will find out about it and apply if they are qualified,” Chua said at a press conference here yesterday.
Announced under Budget 2015, the scheme is offered to couples between the ages of 25 and 40 earning a household income of not more than RM10,000, who are looking to buy their first home.
The price of the properties that they intend to buy must be between RM100,000 and RM500,000.
Successful buyers will receive a provision of RM200 every month from the Government for the first two years, to ease their burden.
There will also be a 50% deduction on the stamp duty for the sales and purchase agreement and legal documents.
The scheme is a partnership between the Government, Bank Sim­panan Nasional (BSN), Emplo­yees Provident Fund (EPF) and Cagamas Bhd.
Chua said BSN was selected to manage the scheme mainly because of its wide outreach in both urban and rural communities.
“BSN has hundreds of branches nationwide and about 6,000 bank agents, including in rural areas. Those interested in the scheme can visit its outlets or surf the BSN website,” he added.

Hike takes toll on food deliveries



Sitting duck: Adel Muhamed is trying to find alternative, toll-free routes due to the rising cost of highway tolls.
Sitting duck: Adel Muhamed is trying to find alternative, toll-free routes due to the rising cost of highway tolls.
PETALING JAYA: Small business owners are trying their best to absorb the higher operating costs brought by the hike in toll rates but some will have to pass it on to the consumers.
Allison Xavier, 32, owner of the Rebellious Chickpea food delivery service, said the new rates were “ridiculous”.
“I pay an additional RM10 a day on top of the usual RM16 for toll now, more if we have deliveries to Klang and Shah Alam.
“Our customers are scattered around KL and PJ, so we usually use the Penchala and Kerinchi Link, Duke and Sprint to get around,” she said.
With an average of 30 deliveries per day, Xavier’s business will have to fork out an average of RM572 monthly just for toll.
“It will definitely take a toll on us,” she said.
“We can’t avoid highways because it’s faster and our priority is quick delivery, especially with KL traffic.”
She said her service would have no choice but to charge for delivery, which was previously free.
Adel Muhamed Ishak, 27, who runs the Little Fat Duck food truck, was not sure how badly his business would be affected.
Based in Subang, he said travelling to Kuala Lumpur every day through the NPE now costs him an additional RM42 month.
“We can’t transfer the cost to our customers by increasing our prices.
“Sales dropped tremendously when we had to include GST previously.
“The public won’t accept that for a second time.
“For now, the only thing we can do is to find alternative, toll-free routes,” said Adel.
Saari Nordin, 32, who runs The Boys Food food truck mostly stationed in Dataran Wangsa, expects RM20 a week to be eaten from its profit margin.
“We only pass through the toll during the weekends when we drive to KL for events.
“We earn about RM500 a day, so RM20 does not affect us too much,” said Saari.
“We definitely won’t be passing this cost on to our customers!”
Elaine Ho, 33 who runs the Chopstick Diner delivery service, said she was able to avoid the repercussions of the toll hike.
“Our delivery boys goes around by motorcycles.
“It’s much cheaper that way, and we avoid rush hour traffic as well,” she said.

Tunku Laksamana Johor made a police inspector



JOHOR BARU: Tunku Abdul Jalil Sultan Ibrahim, the son of the Sultan of Johor, was made police inspector in a simple ceremony held at Istana Bukit Serene on Tuesday.
The pinning-the-rank ceremony for the Tunku Laksamana Johor was conducted by the Sultan of Johor Sultan Ibrahim Sultan Iskandar and Inspector-General of Police Tan Sri Khalid Abu Bakar.
Also present at the ceremony were the Permaisuri Johor Raja Zarith Sofiah Sultan Idris Shah, Tunku Mahkota Johor Tunku Ismail Sultan Ibrahim and wife, Che’ Puan Khaleeda Bustamam, as well as other members of the royal family.
Bukit Aman’s Police Director of Management, Datuk Zulkifli Abdullah and Director of Narcotics Criminal Investigation Department, Datuk Seri Mohd Mokhtar Mohd Shariff, also attended the ceremony.
Tunku Abdul Jalil told reporters after the ceremony that he was grateful and happy with the rank and thankful to all members of the Royal Malaysian Police Force.

Issues besieging tolled highways



Consumers are unhappy with the steep hike in toll rates but concessionaires contend that it’s overdue
THE numbers that toll concessionaires generate are simply astounding that it would be hard to blame the man on the street for the recent steep hikes in rates.
For instance, Malaysia has a total of 28 highways and almost all except for one, showed an increase in traffic flows based on numbers between 2009 and 2013.
In 2013, the volume of traffic recorded on the toll highways of Malaysia was 1,641.37 million, showing an increase of close to 5% compared with 1,567.35 million recorded in 2012.
Overall, the 27 out of 28 highways experienced traffic increment for the year 2013 at a range of 0.27% to 46.66%, according to the Malaysian Highway Authority, a federal statutory agency under the Ministry of Works.
So the numbers show that clearly traffic has been increasing. But not all highways are profitable because the growth in traffic does not meet the forecast figures.
This is something that David Lee of Malaysian Rating Corp Bhd (MARC) can testify.
“Most of MARC-rated highways ‘trailed the projected forecast’ be it urban or intra-urban, with the exception of a few,” says Lee who is the vice-president (ratings) of MARC.
Despite highways not meeting traffic projections, it is worth noting that the country has yet to see the failure of an urban toll road.
So far only one toll concessionaire, Senai-Desaru Expressway has defaulted because its traffic numbers have been way below the projected figures. The highway concessionaire, nonetheless, has been able to restructure its debts.
Nevertheless, the steady traffic volume growth as well as concessionaires having a mix of profitable and non-profitable highways have cast doubt over the need to raise toll charges.
The contention is that traffic volume will keep increasing with population growth, collection will keep on adding to the coffers of concessionaires and more importantly strengthening their financial position.
Hence it is only a matter of time before they become profitable and enough to pay off the financiers and allow some returns to shareholders.
RAM Ratings Sdn Bhd co-head of infrastructure and utilities ratings Davinder Kaur Gill says that toll concessionaires in RAM Ratings’ portfolio last witnessed a toll rate hike in 2007.
“Some of the intra-urban highways under RAM’s coverage have been operational for more than 10 years, they have yet to experience a toll rate hike in their operational life.
“Restructuring of concession agreements via preserving current toll rates at a lower rate while extending concession tenures remains an alternative solution to this tolling impasse faced by the sector,” Davinder says.
Lengthening concession period?
Since the 2008 general election, the Government has opted to maintain toll rates and increased the length of the concession because of it being a political hot potato.
However concessionaires have a different view on the matter. They have issued debt papers backed by scheduled toll hikes.
MARC’s Lee says that non-monetary compensation such as extension of the concession tenure typically affect the cash flow of the concessionaire and introduce asset-liability mismatches to the project debt.
“Under such scenarios, concessionaires need to refinance the project debt. However, lengthening repayment obligations would potentially affect their ratings.
“Concessionaires also have to grapple with high financing costs with any increase in construction costs, and therefore lengthening of the concessions would also push the returns to shareholders into the far future,” he says.
Lee explains that the credit risks associated with toll projects is mainly driven by traffic, concession and financing structure risks.
He says the debt amortisation profile of such projects is sculpted to match revenue projections based on projected traffic growth rates and timely implementation of scheduled toll rate hikes.
“Concessionaires have not been allowed to increase toll rates according to their concession agreements in recent years, although cash compensations to make up for the lost toll revenues have usually been paid but on a deferred basis.
“This applies pressure on the concessionaires’ ability to withstand the working capital gap which is critical to maintain project debt obligation. Some concessionaires underwent debt refinancing during that period pursuant to renegotiation of concession terms with the government,” Lee says.
Also, whenever the concessionaires are not allowed a scheduled toll rate hike, the government has to compensate them based on the traffic flow. This is viewed as unfair to those residing outside the Klang Valley that do not use the highways.
“It is unfair that the government is using the public money to compensate the concessionaires. This goes against the user-pay concept, indirectly burdening taxpayers nationwide. Those living in Sabah and Sarawak will not be using the Damansara–Puchong Highway (LDP) or the Sprint highway,” an industry observer notes.
The total compensation paid by the Government from 2008 to 2013 amounted to RM1.1bil, and RM402.9mil in 2014. The Government paid RM510mil in compensation for the January to October period this year following the decision to postpone toll hike that should have been implemented in January.
RAM’s Davinder believes the removal of subsidies and imposition of toll rate hikes is necessary, as it is part of the broader subsidy reform the Malaysian government has been undertaking since July 2010.
It is also a key criteria for Malaysia when it is rated by international rating agencies that want to see the Federal government budget deficit as a percentage of the economy drop to less than 3% next year.
Are highways cash cows?
An official familiar with highway concessions say that not all urban highways are profitable.
He says the perception is that highways are `money-making’ machines because it provides steady cash flows. But the bulk of money goes towards paying off the banks.
RAM’s Davinder says that a large part of toll concessionaires’ operational cashflows is channelled to its debt obligations due to the capital intensive nature of highway construction.
“In that respect, based on our observation of the RAM Ratings rated portfolio, the ratio of annual debt repayment to annual net operating cashflow for each toll concessionaire ranges from 30% to almost 100% in certain instances,” says Davinder.
The industry official says that highways such as New Pantai Expressway and the Besraya Expressway have yet to declare any dividends for shareholders even after 15 years of concession.
“The New Pantai Expressway (NPE) has a debt of RM280mil after 15 years of operations. And the company has not declared any dividend to shareholders. Would this be acceptable to shareholders of an ordinary listed company?” the offical adds.
This is echoed by Lingkaran Trans Kota Holdings Bhd’s (Litrak) chief executive officer Richard Lim.
He says that although traffic growth for Sprint Highway was between 4.3% to 4.4%, it was significantly below their forecast for average daily traffic.
“Note that the Government, in any concession agreement, does not guarantee traffic volume nor traffic revenue. Any shortfall in revenue as a result of lower traffic volume is a risk borne by Sprint,” Lim tells StarBizWeek.
Lim says that it would not be feasible to lengthen the concession period to enable the company to recoup its investment.
Lim says the concession period cannot be lengthened without putting Sprint at a very high risk of insolvency or undertaking a very costly refinancing exercise since the company will be unable to repay its borrowings on time.
The extension, he says could also upset the public at large as the extension period will be long and could also severely affecting the shareholders who have to wait even longer for a return.
Lim explains that the business model used for the setting of toll rates for most highways was to start from a lower figure and to increase it over time, which is fairer since the value of money lessens over time.
The business model, Lim says used also took into account the increase in traffic volume over time and based on the increasing toll rate structure and increasing traffic volume, a revenue forecast was built which eventually formed part of the financial feasibility study on whether the tolled highway project was feasible or not.
As the construction of any highway is costly, a major portion of the financing has to be borrowed on a long-term basis with the bulk of repayment to be made only in later years when toll rates and traffic revenues are higher.
“In the meantime, the toll concessionaire has to incur losses such as Sprint which incurred losses for over 14 years and only started making a profit this year of RM 1.5mil,” Lim says.
He also discloses that the shareholders of Sprint have not received any returns/dividends from their investments since commencement of operations over 15 years ago with accumulated losses at RM440mil.
Since the 2008 general elections, there has not been any toll rate hikes. Concessionaires have been compensated for deferring their rate hikes. So when the rates went up on Wednesday, it was a steep increase, which was not to the amusement of city dwellers.
But from the way the implementation has taken off, it seems that there is no turning back on the decision by the government to allow the rate hike.
That is something highway users would have to bear with for a long time. Going forward however, regulators need to be smart to renegotiate the way highway projects are awarded to ensure that the toll rate hikes inflict less pain on the people.