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NEWS
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Outside Malaysia:
Global: A record USD 152tr in global debt unnerves IMF
officials. Eight years after the financial crisis, the world is suffering
from a debt hangover of unprecedented proportions. Gross debt in the
non-financial sector has more than doubled in nominal terms since the
turn of the century, reaching USD 152tr last year, and it’s still rising,
the International Monetary Fund said. The figure includes debt held by
governments, non-financial firms and households. Current debt levels now
sit at a record 225% of world gross domestic product, the IMF said in its
semi-annual Fiscal Monitor, noting that about two-thirds of the
liabilities reside in the private sector. The rest of it is public debt,
which has increased to 85% of GDP last year from below 70%. Slow global
growth is making it difficult to pay off the obligations, “setting the
stage for a vicious feedback loop in which lower growth hampers
deleveraging and the debt overhang exacerbates the slowdown,” said the
Washington-based fund. (Source: Bloomberg)
U.S: Fed’s Fischer says central banks need fiscal help to
spur growth. Federal Reserve Vice Chairman Stanley Fischer said both
monetary and fiscal policy steps may be needed to fend off a protracted
period of sub-par economic growth. “Ultra-low interest rates are not
necessarily here to stay, especially if the right policies are put in
place to address at least some of their root causes,” Fischer said in the
text of a speech. Without citing specifics, Fischer called for
“transparent and sound monetary policies here and abroad,” as well as
investments in infrastructure and education, along with more effective
regulation to boost productivity and longer-run potential growth.
(Source: Bloomberg)
U.S: Service firms rebound to best expansion in 11 months.
American service companies expanded in September at the fastest rate in
almost a year, returning the economy’s biggest segment to a steady growth
path after a slump in the prior month. The Institute for Supply
Management’s non-manufacturing index jumped to 57.1, the highest since
October 2015 and exceeding all forecasts in a Bloomberg survey, the
Tempe, Arizona-based group’s data showed. The August reading of 51.4 was
the lowest in more than six years. (Source: Bloomberg)
U.K: Services sector grew more than forecast last month as
the economy continued to display resilience following the June vote to
leave the European Union. IHS Markit said its Purchasing Managers Index
dipped marginally to 52.6. It marks the second month over 50, the
dividing line between expansion and contraction. The figure follows
better-than-expected manufacturing and construction indexes, which point
to economic expansion of 0.1% in the third quarter, Markit said. Omitting
July’s across-the-board slump, the most recent figures suggest growth of about
0.3%. (Source: Bloomberg)
S. Korea: Government says uncertainties ‘high’ to 4Q 2016
growth path, although the trend so far is largely in line with previous
projections, South Korea’s Finance Ministry says in e-mailed statement.
Risks to 4Q exports and production include labor strikes in some
industries, recall of mobile phones, and Hanjin Shipping issue; risks to
consumption include anti-corruption law, delay in legislation of tax
benefits for replacing old diesel cars. To support domestic demand, government
will use fiscal stimulus in 4Q as planned and increase state-run
organizations’ infrastructure investment for 2016 (Source: Bloomberg)
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Other News:
Berjaya Corp: Sells Taiga stake. Berjaya Corp (BCorp) and
its wholly owned subsidiary, Berjaya Forest Products (Luxembourg) Sarl
(BForest), have entered into two disposal agreements with Malaysian
businessman Tong Kooi Ong’s UPP Holdings Ltd, which will see the former
net a gain of CAD23.14m (MYR72.82m). The first proposal was for BCorp to
dispose the entire 12.67 million common shares or 39.09% equity interest
in Taiga Building Products Ltd by BForest to UPP for CAD12.67m
(MYR39.87m). Secondly, BCorp is disposing the entire CAD46.01m principal
amount of 14% unsecured subordinated notes in Taiga by BForest to UPP for
approximately CAD52.91m (MYR166.5m) or at a sale note of CAD1.15. The
proposed disposals are expected to be completed by the first quarter of 2017.
(Source: The Star)
Tien Wah: To buy cigarette company. Tien Wah Press
Holdings has been awarded a tender to acquire the entire stake in
cigarette manufacturer, PT Bintang Pesona Jagat, at an undisclosed sum.
PT Bintang Pesona Jagat is a subsidiary of Bentoel Group. The acquisition
comes with a six-year contract for the manufacturing and supply of
packaging materials for Bentoel Group. The deal shall be conditional upon
the acceptance of the terms, conditions, and procedures determined by
Bentoel Group. (Source: The Sun Daily)
Kossan Rubber Industries: Partners with MRB to produce
rubber products. Kossan Rubber Industries’s unit, Doshin Rubber Products
(M) Sdn Bhd, has partnered with the Malaysian Rubber Board to develop
rubber products for the civil engineering and construction industries. A
collaboration agreement between both parties was inked on Sept 27, 2016
for a term of three years. Both parties would identify potential
companies for the commercial evaluation of rubber products for civil
engineering and construction. (Source: The Star)
Mega First: IRB slaps additional MYR22.8m taxes, penalties
on Mega First. The Inland Revenue Board (IRB) has sent notices to Mega
First Corp’s unit Idaman Harmoni Sdn Bhd for additional taxes and
penalties totalling MYR22.8m. Idaman Harmoni was served with the two
notices from the IRB in September. The additional taxes and penalties are
in relation to a JV entered into by Idaman Harmoni as the land-owner with
a property developer, to build an office and residential property known
as PJ8. The IRB has taken the view that there is a deemed disposal of the
PJ8 property by Idaman Harmoni, which is subject to income tax. (Source:
The Edge Financial Daily)
Ho Hup: To build Immigration quarters in Perak. Ho Hup
Construction Co has bagged a MYR32.4m sub-contract to construct the
Immigration quarters in Pengkalan Hulu, Perak. Under the contract from
Adegan Senandung Sdn Bhd, it would be responsible for all piling,
building, external and miscellaneous works related to the construction of
the quarters. The three-year contract, scheduled to start on Oct 20, was
expected to contribute positively to the Ho Hup group’s earnings for the
financial years ending Dec 31, 2016 to Dec 31, 2019. (Source: The Star)
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