Why Indons replaced M'sia as top palm oil producer?
INDONESIA’S taking over Malaysia as the world’s largest crude palm oil (CPO) producer in 2006 had often been associated with the mammoth size of the oil palm planted areas.
In fact, many however failed to comprehend that it was the much increased CPO production in the ensuing years – mainly in terms of higher fresh fruit bunches yield and oil extraction rates – that significantly set Indonesia far ahead from Malaysia’s continued stagnanting CPO production. This year CPO production in Indonesia is targeted to hit 21.5 million tonnes versus Malaysia’s 17.5 million tonnes.
Within five years, the former is also targeted to produce 27 million tonnes annually while Malaysia production is still expected to linger at 17 million to 18 million tonnes. While the glaring shift in the CPO production epicentre from Malaysia to Indonesia had resulted in changes in the supply equation, some market observers now fear that Malaysian plantation stocks could also stand to lose out on its attractiveness among international investors and fund managers.
Historically, the oil palm plantation sector in Indonesia had been the domain of state-owned companies. However, the early 1990s saw many private companies entering the industry, lured by attractive margins. Now it is said that 60% of the 7 million ha total planted area is owned by private companies, of which many have been seeking listing on the Stock Exchange of Singapore (SGX) and the Jakarta Stock Exchange (JSX).
Read more >> bizstarnews.
Tuesday, August 10, 2010
Saturday, August 7, 2010
Is the worst over for Sime Darby?
Several steps are needed for a return to confidence, the first being the unvarnished truth. One of the best ways to kill the reputation of a company is to let the bad news dribble out in bits and pieces. What that does is to keep the investing public in a constant state of tension wondering what’s round the corner, bleeding confidence.
Sime Darby found out – yet again – that’s not good for the share price which tumbled in the wake of rumours that it may need to provide as much as RM2.5bil to RM3bil for its final quarter to June 30 and wiping out profits for the full year. All Sime Darby said late Thursday was that it would still be in the black when it reports its results later this month. That’s some, but scant, consolation and what anyone will read between the lines is that Sime Darby will make some provisions but not as much as the rumours envisaged it would.
So the latest guessing game in town is how much more provisions Sime Darby is going to make and for which project or projects. If those questions are not answered satisfactorily – and soon – then expect continued uncertainty in the share price and prolonged depressed valuations, especially given its recent already tumultuous history.
Read More >> The StarBiz, Saturday August 7, 2010
2. ‘Kitchen-sinking’ at Sime Darby by new CEO
PETALING JAYA: Within a mere 20 days of being in office, Sime Darby’s new chief executive Datuk Mohd Bakke Salleh has been actively carrying out a “kitchen sinking” exercise in the group to ensure that all cost overruns and questionable claims are provided for in the group’s fourth quarter results, reliable sources said.
“Since coming in, Bakke has been digging into the books, scouring the group’s past dealings. “You would only expect him to do so. “New CEOs tend to kitchen-sink to start from a clean slate,” said a source familiar with the workings of the group. Sime Darby has yet to respond to queries from StarBizWeek on this.
Bakke was appointed as acting president and group chief executive on July 15, replacing Datuk Seri Ahmad Zubir Murshid, who had earlier been asked to take a leave of absence in relation to losses stemming from Sime Darby’s engineering and utilities (E&U) division. Sources said that there were likely to be provisions to the tune of at least a RM100mil coming from projects already provided for or from a newly secured Indian project.
It is understood that in January this year, Sime Darby, together with Singapore-based Swiber Holdings Ltd, had won a contract to build offshore platforms for Oil & Natural Gas Corp in India. The deals cover engineering, procurement, construction, installation and commissioning work. Work has commenced and is expected to be completed by the second quarter of 2011. It is possible that Sime Darby had under-bid for their portion of this contract, not unlike what it is believed to have done in the other E&U projects for which it has provided for
Read more >> http://biz.thestar.com.my/news/story.asp?file=/2010/8/7/business/6816218&sec=business
Sime Darby found out – yet again – that’s not good for the share price which tumbled in the wake of rumours that it may need to provide as much as RM2.5bil to RM3bil for its final quarter to June 30 and wiping out profits for the full year. All Sime Darby said late Thursday was that it would still be in the black when it reports its results later this month. That’s some, but scant, consolation and what anyone will read between the lines is that Sime Darby will make some provisions but not as much as the rumours envisaged it would.
So the latest guessing game in town is how much more provisions Sime Darby is going to make and for which project or projects. If those questions are not answered satisfactorily – and soon – then expect continued uncertainty in the share price and prolonged depressed valuations, especially given its recent already tumultuous history.
Read More >> The StarBiz, Saturday August 7, 2010
2. ‘Kitchen-sinking’ at Sime Darby by new CEO
PETALING JAYA: Within a mere 20 days of being in office, Sime Darby’s new chief executive Datuk Mohd Bakke Salleh has been actively carrying out a “kitchen sinking” exercise in the group to ensure that all cost overruns and questionable claims are provided for in the group’s fourth quarter results, reliable sources said.
“Since coming in, Bakke has been digging into the books, scouring the group’s past dealings. “You would only expect him to do so. “New CEOs tend to kitchen-sink to start from a clean slate,” said a source familiar with the workings of the group. Sime Darby has yet to respond to queries from StarBizWeek on this.
Bakke was appointed as acting president and group chief executive on July 15, replacing Datuk Seri Ahmad Zubir Murshid, who had earlier been asked to take a leave of absence in relation to losses stemming from Sime Darby’s engineering and utilities (E&U) division. Sources said that there were likely to be provisions to the tune of at least a RM100mil coming from projects already provided for or from a newly secured Indian project.
It is understood that in January this year, Sime Darby, together with Singapore-based Swiber Holdings Ltd, had won a contract to build offshore platforms for Oil & Natural Gas Corp in India. The deals cover engineering, procurement, construction, installation and commissioning work. Work has commenced and is expected to be completed by the second quarter of 2011. It is possible that Sime Darby had under-bid for their portion of this contract, not unlike what it is believed to have done in the other E&U projects for which it has provided for
Read more >> http://biz.thestar.com.my/news/story.asp?file=/2010/8/7/business/6816218&sec=business
We’ll act fairly to solve estate workers’ plight
TheStar Saturday August 7, 2010
PUTRAJAYA: The Government has always acted fairly in discussions with former workers of Ladang Bukit Jalil, Human Resources Minister Datuk Dr S. Subramaniam said.
“This has been going on for a long time and we want to resolve this issue in a fair manner, with the co-operation of the former residents and the Government,” he told a press conference yesterday to clarify reports that the Government had not done anything to help the former workers. He said the workers’ representatives had 11 rounds of discussions with the Federal Territories and Urban Well-being Ministry and Kuala Lumpur City Hall and another 16 meetings with officials from the Manpower Department.
Dr Subramaniam said the representatives had wanted to meet him on Thursday but the meeting was rescheduled to yesterday. “But they called late Thursday and said they would not be able to come for the meeting,” he added. Dr Subramaniam said a meeting involving the workers’ representatives, National Union of Plantation Workers, the Federal Territories and Urban Well-being Ministry and DBKL would be held next week. He said each of the former workers had been offered a RM35,000 low-cost unit flat with a RM2,000 rebate and relocation expenses of RM1,000.
He said the workers’ representatives had met him on Aug 3 requesting his assistance to stop the demolition work by DBKL, adding that he had spoken to Prime Minister Datuk Seri Najib Tun Razak, Deputy Prime Minister Tan Sri Muhyiddin Yassin and Federal Territories and Urban Well-being Minister Datuk Raja Nong Chik Raja Zainal Abidin to postpone it. Dr Subramaniam said the workers’ representatives had requested for an official letter on the offer for the houses and it had been given to them.
On a question that workers wanted low-cost houses instead of flats, he said it was not feasible for houses to be built in major towns.
PUTRAJAYA: The Government has always acted fairly in discussions with former workers of Ladang Bukit Jalil, Human Resources Minister Datuk Dr S. Subramaniam said.
“This has been going on for a long time and we want to resolve this issue in a fair manner, with the co-operation of the former residents and the Government,” he told a press conference yesterday to clarify reports that the Government had not done anything to help the former workers. He said the workers’ representatives had 11 rounds of discussions with the Federal Territories and Urban Well-being Ministry and Kuala Lumpur City Hall and another 16 meetings with officials from the Manpower Department.
Dr Subramaniam said the representatives had wanted to meet him on Thursday but the meeting was rescheduled to yesterday. “But they called late Thursday and said they would not be able to come for the meeting,” he added. Dr Subramaniam said a meeting involving the workers’ representatives, National Union of Plantation Workers, the Federal Territories and Urban Well-being Ministry and DBKL would be held next week. He said each of the former workers had been offered a RM35,000 low-cost unit flat with a RM2,000 rebate and relocation expenses of RM1,000.
He said the workers’ representatives had met him on Aug 3 requesting his assistance to stop the demolition work by DBKL, adding that he had spoken to Prime Minister Datuk Seri Najib Tun Razak, Deputy Prime Minister Tan Sri Muhyiddin Yassin and Federal Territories and Urban Well-being Minister Datuk Raja Nong Chik Raja Zainal Abidin to postpone it. Dr Subramaniam said the workers’ representatives had requested for an official letter on the offer for the houses and it had been given to them.
On a question that workers wanted low-cost houses instead of flats, he said it was not feasible for houses to be built in major towns.
Sunday, August 1, 2010
Sabah stops export of endangered fish
Sabah stops export of endangered fish
Published on: Saturday, July 31, 2010 Kota Kinabalu: Forty-five juvenile humphead wrasse - one of the most desirable fish in the world because of its delicious flavour and texture - were released to various reefs in Tunku Abdul Rahman Park Friday morning, aimed at restocking its rapidly declining wild population in Sabah. Wildly over-fished, the humphead wrasse was one of the first fish to be listed as "endangered species" under IUCN in 2004.  Read More >> http://www.dailyexpress.com.my/news.cfm?NewsID=73785 |  |
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