Ringgit Malaysia (MYR) Recent Performance Up to May 2010

Source: Bank Negara Report

As we can the Malaysian Ringgit is getting stronger against almost mostly of the major foreign currencies especially the Euro , except the recent pick up in US Dollar and Japanese Yen as of May 2010. Thus, as the time goes, the Euro may surge back as the debt crisis is getting better. So, chances occur ?

Malaysia's Banks Performing and Unaffected by Eurozone Crisis

The recent heavy sell down on the Malaysia stock market and causing the FBM KLCI to tumbles in the past 2 weeks are already picking up. 

Firstly, the main cause is the Eurozone debt crisis which involve Greece, Spain and Portugal, but up to date the International Monetary Fund (IMF) and the European Union (EU) had already bailout them by providing loans. 

Secondly, it was the huge quarter losses of plantation conglomerate Sime Darby. Up to now, Sime Darby share price had already slump down 12% in 2 weeks. The CEO of Sime Darby had also been removed. 

Thirdly,  as we know if the manufacturing sector is suffering a meltdown in demand from Europe, then this will indirectly affect the banks lending prospects, and this was not the problem, as the manufacturing sector in Malaysia is on a pick up trend. Furthermore, Malaysian banks also have no exposure to any of Europe’s papers or business interest.

Although interest rate hikes totalling 75 basis points in 2010, but those bankers are still confident on the loan growth and will be stronger than previous year. If not the Bank Negara will not raise the interest rates. And the inflation are not in pressure.

Thus, Malaysia Banks are fundamentally good and performing and are not in a worrying trend.

Penang and Selangor Ban Sport Bettings Locally

Penang and Selangor state government had issued statement respectively that although the Federal Government (Barisan Nasional) had issued football betting licence to Ascot Sports Sdn Bhd, which  owned by Berjaya Group Vincent Tan, the state government, via local authorities has the power to stop it. Thus, no premises in the state will be allowed to operate such betting centre. 

The Pakatan Rakyat had earlier stated that the Pakatan Rakyat led states will not allowed those bettings as issuing such a licence would not eradicate illegal gambling but would aggravate social problems as the poor would gamble away their hard earned wages. 

A country if is too conservative and are not open their mind will definitely cannot cope and compete with the global world. Football betting is a trend. This will still going on even without the approval as it will still run by those illegals. Why not take the chance to let the government to make profits (tax) and regulate the rules. Rather than letting it getting worse and those illegal bookies making huge profit and their own ways. Even Singapore had such football betting in the 1990s before it finally approve the casino while Malaysia has it own casino in earlier. As WE ALL KNOW footballs betting can be done even at home (as long as u have a computer and internet connection, thats it). Come on. The bettings will still be running by those illegals even no approvals was given. Why not regulate it and collect taxes?

Subsidies in Malaysia Should be reduced gradually but not immediately and save Money on UNNECESSARY

Lets look at the subsidies the government are giving on commodities such as petrols, gasoline, sugar, flour and also healthcare and education. in 2009 , the government subsidies was staggering high at RM74billions. Even other oil producer nations does not subsidies so much for the people's. The Minister incharge was saying that the country will go bankrupt if the subsidies continues. Yes I do agree with it, it's a serious trouble we may faced in future. And the subsidies for petrol and foods should reduced gradually but not immediately but I think healthcare subsidies should maintained. Why ? Petrol not subsidised, people's still can take public transport, healthcare benefit not subsidised then let the rakyats self-dying if they are not affordable ? And government spending still can be further reduced on other ways such as stop non-benefit multi-project (u know i know), unnecessary expenditure, tender project to be more transparent (stop corruption), pay on the price it should be (Karipap RM0.40, pls dont pay RM4 , computer RM3000, dont pay RM15000), unnecessary investment (make own spaceship rather than sending astronaut to space to explore nothing by paying hundred millions). And don't forgot Petronas is still earning huge profit staggering and over hundreds billions. Hope this money reinvested and used the profit wisely. We can accept subsidies to be removed, we cannot accept taxpayers money simply be spend. The government can do it, we also can. When the public account release again for 2010, HOPE NO MORE RM3000 computer paid at RM15,000. Then it will be worthy to tied our stomach for better Malaysia. Mr Prime Minister (Datuk Najib), hope you can do it without disappointing the RAKYAT.

Happy Wesak Day

Wish all the Buddhist Happy Wesak Day. Hopes the world and the people's get peace and living happily. Pls no war, no crime, no injustice, no disaster, no quarrel, no unhappy. YES TO PEACE AND HAPPY.

Malaysia Assets and Liabilities and International Reserve Position as at May 2010

Malaysia Assets and Liabilities As At 14 May 2010

Malaysia International Reserves Position As At 14 May 2010

The international reserves of Bank Negara Malaysia amounted to RM314.2 billion (equivalent to USD96.1 billion) as at 14 May 2010. The reserves position is sufficient to finance 8.3 months of retained imports and is 4.4 times the short-term external debt.

Berjaya Corp Berhad To Buy Ascot Sports

Berjaya Corp Bhd has proposed to purchase 70% stake in Ascot Sports Sdn Bhd, a company owned by Vincent Tan with a cash of RM525mil. As Ascot Sports Sdn Bhd had just been approved for the sports betting licenses by Finance iinistry on January 2010. Vincent Tan is Berjaya Corp chairman, CEO and largest shareholder with direct stake of 45%.

The purchase would be partly funded by the issuance of up to RM614.45mil nominal value of 10-year 8% irredeemable convertible unsecured loan stocks (Iculs) on the basis of one RM1 nominal value of Iculs for every eight of the company's shares held. The sale price is RM9.37 per share based on Ascot Sports' paid-up share capital of RM80mil comprising RM1 shares. Berjaya Corp said Tan had agreed to guarantee that the company would make a cumulative after-tax profit of at least RM375mil for the first three years of operations and had backed this with an offer to deposit RM81.25mil worth of listed securities. For the current financial conditions, Ascot Sports had net liabilities of RM11.2mil and loss of RM4.6mil for year ended Dec 31, 2008.

Vincent Tan plan was 23 years ago as the sports betting licence was first granted by the Government in 1987. He says he is glad that Prime Minister Datuk Seri Najib Tun Razak is economically sound like Tun Dr Mahathir Mohamad and understands economics. This licence will generate revenue to the company which, in turn, will help the Treasury particularly in these trying times. Haha. Is it indirectly indicating the leader between Mahathir and Najib reign are not economic wise and friendly ?

Berjaya Share already surge to 10months high lor...late..

Malaysia Sports Betting License Issued to Vincent Tan

The football betting licenses were issued to Berjaya Group boss, Vincent Tan, Ascot Sports Sdn Bhd company. The sports betting licenses was granted in  the year of 1987 and stopped in 1990, and further reissued in 2003 but were taken back again after a year. This licenses included with several conditions. Ascot Sports can only operate in only 200 of the 680 Sport Toto outlets in non-Muslim areas in major towns and online betting are banned. But telephone betting may provided to those who registered. these outlets would also be required to put up notices that only adult non-Muslims would be allowed to place bets. As for now, the gainers from sports or football betting are the illegal bookies. The unofficial estimates that Malaysians place RM20bil in bets a year with local illegal and offshore bookmakers.

European Union and International Monetary Fund pledged US$1 trillion defend Euro

The European Union (EU) and the International Monetary Fund (IMF) pledged roughly US$1 trillion on Monday to defend the falling euro, to prevent the common currency from devalued and collapse.

Most Central banks around the world joined the coordinated effort to prevent Europe's debt crisis from derailing the global economic recovery.

The initiative was under the three-year plan, the European Commission (EU's governing body) will make Euros 60 billion ($75 billion) available while countries from the 16-nation eurozone would promise backing for Euros 440 billion ($570 billion).

Furthermore, the IMF would contribute an additional sum of at least half of the EU's total contribution, or Euros 250 billion.

EU Commissioner Olli Rehn says they will defend the Euro whatever it takes and necessary to be after meeting with those EU's Ministers.

Sports Bettings Could Granted License

The sports betting or gambling may be legalise in Malaysia as the government may regulate and legalise it. This was due to the near term of FIFA World Cup 2010. However, the Deputy Finance Minister, Dr Awang Adek did not says when a decision would be made.  The Government was also aware that so hundred millions and billions of money was involved and the Government can gain from it and use the revenue to develop sports. Dr Awang Adek said it would benefit everybody if the tax revenue was used for sports development. Since the illegal bookies will still continue their activities. So, rather  leave them to do it unregulated on their own, the Government should try to regulate it in a manner in which it is controlled. In conclusion, I think there will be a outcome soon after the further discussion by the Government since the football match are starting soon.