Economic News

[snowbird]

He admitted his kids went to private schools while he try to make others go through the public system hoping that his clans can rule forever.
When his son failed to make into the inner circle, he started to attack the very system he created.

When he failed to get his son one of the 3 VP post last year, it just showed that his once powerful influence had diminished.
Holding a VP post is like getting an onward passport to the premier route, but unfortunately his son may miss this chance while his is still alive.
He thought he can still weld the power to displace the PM as he wishes like he what did to the former one but this one has a much stronger power base than he thought.
So, now all these caustic remarks aiming at the PM all you see now prelude to perhaps some showdown very soon.

 

[malpaso]

just read an article on personal finance from business insider which applies to everyone.

http://www.businessinsider.com/a-salary-guide-for-your-20s-30s-and-40s-2014-12?IR=T&

key takeaways? 1. save money. 2. cut excessive spending. 3. pay off the house.

The best strategies in life are often the simplest, isn't it.

 

[teega]

OMG! We are getting nearer to find out who is the culprit behind the 1MDB.

Not sure how much truth in this article. Here you go.

http://www.asiasentinel.com/politics/malaysia-investment-fund-disaster/

 

[FHBH12]

Petronas juggles lower earnings
By Farah Saad & Doreen Leong
Friday, 12 Dec 2014, 12:30 AM

Petroliam Nasional Bhd (Petronas) is experiencing one of the toughest challenges of its corporate history. Revenue and profit are plunging. Its RM109 bil Canadian dream gas project could become a nightmare and another RM90 bil in other projects it announced in the last five years may have to be reviewed.

The slump of more than 40% in world crude oil prices in the last six months, from US$112 to US$64 per barrel, has affected its bottomline. Each US dollar fall in the world oil price has a RM1 bil impact on Petronas’ pre-tax profit.

Poor market sentiment has also affected at least three of Petronas’ five listed companies – Petronas Dagangan, Petronas Chemicals and Petronas Gas, which have lost a combined market capitalisation of RM30.3 bil this year alone. The rest of the industry catches cold when Petronas sneezes. When the oil company announced a 15-20% cut in its capex on Dec 1, oil-and-gas stocks on Bursa Malaysia fell by 5-20% the next day.

Its woes does not end there. Although it has said it will declare lower dividends to the government next year due to falling profits, a deputy finance minister sent it a message that the quantum of its dividend was not up to it but rather to the government.

- See more at: http://www.focusmalaysia.my/Mainstream/Petronas juggles lower earnings#sthash.ogZsrpcv.dpuf

 

[snowbird]

Petronas juggles lower earnings
By Farah Saad & Doreen Leong
Friday, 12 Dec 2014, 12:30 AM

Petroliam Nasional Bhd (Petronas) is experiencing one of the toughest challenges of its corporate history. Revenue and profit are plunging. Its RM109 bil Canadian dream gas project could become a nightmare and another RM90 bil in other projects it announced in the last five years may have to be reviewed.

The slump of more than 40% in world crude oil prices in the last six months, from US$112 to US$64 per barrel, has affected its bottomline. Each US dollar fall in the world oil price has a RM1 bil impact on Petronas’ pre-tax profit.

Poor market sentiment has also affected at least three of Petronas’ five listed companies – Petronas Dagangan, Petronas Chemicals and Petronas Gas, which have lost a combined market capitalisation of RM30.3 bil this year alone. The rest of the industry catches cold when Petronas sneezes. When the oil company announced a 15-20% cut in its capex on Dec 1, oil-and-gas stocks on Bursa Malaysia fell by 5-20% the next day.

Its woes does not end there. Although it has said it will declare lower dividends to the government next year due to falling profits, a deputy finance minister sent it a message that the quantum of its dividend was not up to it but rather to the government.

- See more at: http://www.focusmalaysia.my/Mainstream/Petronas juggles lower earnings#sthash.ogZsrpcv.dpuf

As I have said earlier on, the Petronas CEO had already warned that their contribution to the national coffers will drop by 37%, which translate to a shortfall of at least RM25billion, based on US$75!
He had already suggested that the administration should really rebalance the Budget asap.
But now, the crude plummet even further to US$60 with no signs of recovery any time soon.
With more than RM30 billions short in the budget, there should be a lot of worries but to date, the govt. still refuse to do anything to acknowledge this shortfall and announce the contingency plans!
Instead, a lot of attention now is on the Sedition Act thingy or perhaps it was diverting attention.

The controversial 1MDB had been attracting criticisms from opposition lawmakers and even the former PM Dr Mahathir. http://www.themalaysianinsider.com/malaysia/article/dr-mahathir-slams-umno-silence-over-1mdb-tppa
This 1MDB seems to be severely debt ridden and yet had its always shroud in secrecy.
Its reported that the controversy-ridden 1Malaysia Development Bhd (1MDB) will be discussed at next week's Cabinet meeting.

 

[FHBH12]

As I have said earlier on, the Petronas CEO had already warned that their contribution to the national coffers will drop by 37%, which translate to a shortfall of at least RM25billion, based on US$75!
He had already suggested that the administration should really rebalance the Budget asap.
But now, the crude plummet even further to US$60 with no signs of recovery any time soon.
With more than RM30 billions short in the budget, there should be a lot of worries but to date, the govt. still refuse to do anything to acknowledge this shortfall and announce the contingency plans!
Instead, a lot of attention now is on the Sedition Act thingy or perhaps it was diverting attention.

The controversial 1MDB had been attracting criticisms from opposition lawmakers and even the former PM Dr Mahathir. http://www.themalaysianinsider.com/malaysia/article/dr-mahathir-slams-umno-silence-over-1mdb-tppa
This 1MDB seems to be severely debt ridden and yet had its always shroud in secrecy.
Its reported that the controversy-ridden 1Malaysia Development Bhd (1MDB) will be discussed at next week's Cabinet meeting.

Bring down the Ringgit!

Ringgit plunges to lowest level against Singdollar in at least 33 years
PUBLISHED ON DEC 12, 2014 5:59 PM
BY CHIA YAN MIN

SINGAPORE - The ringgit has slumped to its weakest level against the Singdollar in at least 33 years, on the back of an ongoing decline in global crude oil prices.

One Singdollar could buy 2.67 ringgit on Friday, compared with 2.63 ringgit at the beginning of the month.

The currency is now even weaker than it was during the Asian financial crisis - one Singdollar could buy 2.66 ringgit in January 1998.

Analysts say Malaysia is likely to be among the Asian countries hit hardest by the precipitous decline in global oil prices, with the ringgit expected to continue weakening until crude oil prices stabilise.

Oil-related industries account for a third of Malaysian state revenue.

- See more at: http://www.straitstimes.com/news/bu...-least-33-years-20141212#sthash.NPu68qLL.dpuf

 

[PuteriWorld]

Go for RM 3!

 

[malpaso]

JOHOR BARU: The state has rejected new applications to build serviced apartments.

Mentri Besar Mohamed Khaled Nordin said this was to ensure that the property market would not be flooded by serviced apartments, especially in Iskandar Malaysia.

“All new applications have been frozen,” he said.

“Those who have received their approval can continue with their projects,” he said at the ground-*breaking ceremony of affordable homes by state-linked PIJ Holdings Sdn Bhd at Jalan Datin Halimah here yesterday.

The rest of the article here:

http://www.thestar.com.my/News/Nati...ted-to-protect-property-market-says-Johor-MB/

 

[PuteriWorld]

Good. When Supply is cut to 0 it will only benefit the existing supplies

JOHOR BARU: The state has rejected new applications to build serviced apartments.

Mentri Besar Mohamed Khaled Nordin said this was to ensure that the property market would not be flooded by serviced apartments, especially in Iskandar Malaysia.

“All new applications have been frozen,” he said.

“Those who have received their approval can continue with their projects,” he said at the ground-*breaking ceremony of affordable homes by state-linked PIJ Holdings Sdn Bhd at Jalan Datin Halimah here yesterday.

The rest of the article here:

http://www.thestar.com.my/News/Nati...ted-to-protect-property-market-says-Johor-MB/

 

[Funniman]

Good. When Supply is cut to 0 it will only benefit the existing supplies

You never know that there could be hundreds of projects already approved that has yet to be launched.

 

[Manhattan]

You never know that there could be hundreds of projects already approved that has yet to be launched.

The 77 blocks by country garden is enough to blow you off, Not to mention the princess cove. When the Uem staff told me got 77 blocks, I need to ask her a few times before I believe what I heard. I still hope it is not true.

 

[snowbird]

The 77 blocks by country garden is enough to blow you off, Not to mention the princess cove. When the Uem staff told me got 77 blocks, I need to ask her a few times before I believe what I heard. I still hope it is not true.

Country Garden was smart to launch all their phases in one go cos I believe they had already got winds of the new RM1 mil regulation to be announced soon.
That way, they can still sell units to foreigners at prices above RM500K. Otherwise no developer will be willing to launch a massive 6,000 units in one go.
Those other mega developer who launch later like Princess Cove and Greenland are stuck with the new RM1 mil regulation.

 

[PuteriWorld]

Greenland and Vantage Bay disappearing behind the radar though the former is starting construction

Country Garden was smart to launch all their phases in one go cos I believe they had already got winds of the new RM1 mil regulation to be announced soon.
That way, they can still sell units to foreigners at prices above RM500K. Otherwise no developer will be willing to launch a massive 6,000 units in one go.
Those other mega developer who launch later like Princess Cove and Greenland are stuck with the new RM1 mil regulation.

 

[UsernameX]

I thought greenland cancel their deal and return land to IDBD?

 

[snowbird]

Greenland and Vantage Bay disappearing behind the radar though the former is starting construction

Greenland will be launching in Jan 2015 as I was told when I went for the preview last month. By then, the showroom at the far end shd be ready.
The blocks are better spaced out and layout (I think had been revised) seems to be less dense as their neighbour.

 

[Vohkster]

https://sg.news.yahoo.com/tough-tim...sia-properties-153737651.html?linkId=11174935

It doesn't take a genius to know this was the end game. If anyone is still thinking of buying /flipping overpriced condo units near the causeway , I am sure u have deep pockets and stomach in the next 5 years when price start to crash.

 

[malpaso]

Oil drops below psychological USD50 per barrel threshold.

http://money.cnn.com/2015/01/05/investing/stocks-market-fall-oil/index.html

 

[whoami]

Long US$.

Short M$....

 

[wuqi256]

Country Garden was smart to launch all their phases in one go cos I believe they had already got winds of the new RM1 mil regulation to be announced soon.
That way, they can still sell units to foreigners at prices above RM500K. Otherwise no developer will be willing to launch a massive 6,000 units in one go.
Those other mega developer who launch later like Princess Cove and Greenland are stuck with the new RM1 mil regulation.

Received news that Princess Cove units will be able to sell to foreigners below the 1m mark (above 500k) but then again, most of their units are already above the 1m mark.

 

[RedsYNWA]

Received news that Princess Cove units will be able to sell to foreigners below the 1m mark (above 500k) but then again, most of their units are already above the 1m mark.

RTS is the major game-changing project to give Princess Cove a push, but no sound no news thus far after passing 31 Dec'14 deadline.