Malaysia Property Market Outlook 2012

 

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Ho Chin Soon presenting his talk on "Property Market Outlook 2012 & Why You Should Buy NOW"at Star Property Fair 2011.

Rapid speed transportation linking key growth areas of Malaysia will propel demand for properties in locations currently deemed less desirable or accessible.
Speaking on “Property market outlook 2012” and “Why you should buy now,” at the recent Star Property Fair in Kuala Lumpur, well-known map maker, research consultant and author Ho Chin Soon pointed out key indicators to detect locations where demand for properties would likely to go up.
The foreseeable and probable factors that could affect the property market next year, include:
-the proposed high speed rail link between Greater KL to the southern tip of the peninsula
-the proposed MRT link between Singapore and Malaysia
-the stock market
MRT link
Ho highlighted the Entry Point Project (EPP) under the Economic Transformation Programme ( ETP) which will focus on new MRT lines and MRT stations.
With the completion of such transport facilities, residents will have access to almost every major development site of Greater KL where you are not able to enjoy for the time being.
The proposed MRT line will not just pass through major residential developments to your work place but will also be connected to major commercial and entertainment centres such as 1Utama shopping centre. However, such details have yet to be confirmed.
This development will be made possible when MRT Co, a government-linked company under the Ministry of Finance - overseeing the proposed MRT line - finalise details.
Citing from his book, Greater KL: The Rise of Bukit Bintang, Ho was optimistic of the further growth of Bukit Bintang, due in part to the proposed MRT stations to be built at:
Bukit Bintang-Pudu (West Bukit Bintang )
Pavilion (East Bukit Bintang)
and most importantly, an interchange station in the Kuala Lumpur International Financial district.
According to Ho, with a more convenient mode of transportation, property prices in those areas will be “healthy”.

High-speed rail
Another key factor under the Entry Point Project is the reduction in travelling time to Singapore from Greater KL via the high-speed rail. Ho envisaged that with a train travelling up to 350km per hour, one would be able to reach Johor Baru in 70 minutes.
He said high speed rail transportation will be crucial in the development of a mega region comprising Greater KL, Iskandar Malaysia in Johor and Singapore. Such a region will have a combined population that could reach 20 million. Formerly known as the Iskandar Development Region and South Johor Economic Region, the Iskandar Malaysia site is the main southern development corridor in Johor.
With charts to illustrate cross-border traffic data, Ho pointed out that up to 126,000 vehicles cross the Johor-Singapore Causeway daily where 70% of them are Singapore-registered cars.
He highlighted the fact that Singaporeans own up to 40% of the properties being constructed in Iskandar Malaysia.
Malaysia will likely experience greater spillover effects from Singaporeans travelling here, especially when the proposed rapid transit system linking Tanjung Puteri in Johor Baru to Singapore commences operations in 2018.
Compound Annual Growth Rate
On determining property value, Ho said a useful tool would be the Compound Annual Growth Rate (CAGR) calculator, essentially to calculate the annual growth rate of an investment over a period of time.
Using the calculator and the housing price index spanning 10 years - provided by Valuation and Property Services Department - Ho concluded that the best Compound Annual Growth Rate last year was surprisingly registered in Sabah with 8.06% and not Kuala Lumpur, which only came in second place, with 4.75%.
The lowest growth rate tabulated was in Johor, with minus 0.2% due to an oversupply situation in the south which depressed property prices.
In Sabah and Sarawak, it was a different scenario because people there benefited from their respective state government policy that emphasised cultivating agricultural land that brought good returns. Another factor was due to the increase in palm oil prices, and astute Sabahans used the money to invest in property.
Crash
On the price levels for various types of property in Malaysia, Ho found that condominium prices were mostly flat and stable due to ample supply. But landed property prices continued to increase and if this situation continues in 2012 then a crash in landed property prices could likely occur.
Ho said property prices would normally be on the rise if the stock market was doing well and vice versa, citing the 1997 Asian Financial crisis as an example

(source : starproperty)

Cities With The Fastest Internet Speeds

Brent Radcliffe, On Friday 14 October 2011, 0:28 SGT

The 20th century was the age of the computer, and nothing shaped the last two decades as much as the Internet. Nearly every facet of life in advanced economies now interfaces with the web at some point each day, from cell phones and computers to transport systems and energy grids. With telegraphs a distant memory, the postal service struggling to find a way to stay relative and more of our day-to-day lives spent interacting with smart technology, it's hard to image a time in which we didn't have the Internet as part of our lives.

The McKinsey Global Institute estimates that the Internet accounted for 21% of GDP growth in developed countries over the past five years (it reviewed 13 countries), with most of the economic gains coming from outside of technology industries. Efficiencies created by a shift from traditional accounting and recording methods to ones supported by the Internet have eliminated some jobs, but estimates are that 2.6 jobs are created for every job lost in economies in which firms were modernizing.
In an age in which high-tech industries and financial firms rely on faster and faster Internet speeds to outpace the competition, countries are finding that they have a need for speed if they plan on keeping innovative firms happy. Even small and medium-sized businesses – the sort of companies that politicians talk about fostering – are becoming more and more reliant on online technologies.
While the United States captures the lion's share of Internet-based revenue and profits, other countries are seeing rapid growth rates in Internet usage. According to the International Telecommunication Union, an agency that is part of the United Nations, the United States had more than 83 million broadband Internet subscribers in 2010 (behind only China), the number of subscribers as a percentage of the overall population was below many western European countries, Canada, South Korea and Hong Kong.
A recent study by Akamai found that the top 10 countries in terms of download speeds were South Korea, Hong Kong, Japan, Netherlands, Romania, Czech Republic, Latvia, Switzerland, Belgium and Ireland. The United States ranked 14th.
Top 10 Average Connection Speeds (World)
1. Tokai, Japan
2. Shimotsuma, Japan
3. Kanagawa, Japan
4. Seocho, South Korea
5. Asahi, Japan
6. Yokohama, Japan
7. Urawa, Japan
8. Ilsan, South Korea
9. Nagano, Japan
10. Hiroshima, Japan
The first city outside Japan or South Korea to make the list was Hong Kong (29), and the first city outside of Asia was Lyse, Norway (33). The United States made its debut with Riverside, Calif. (39).
Top 10 Average Connection Speeds (United States)1. Riverside, Calif.
2. Staten Island, N.Y.
3. San Jose, Calif.
4. Fremont, Calif.
5. Boston, Mass.
6. Jersey City, N.J.
7. Marietta, Ga.
8. Anaheim, Calif.
9. Traverse City, Mich.
10. Hollywood, Fla.
Adoption of broadband Internet has increased across the world in recent years. The United States has a 77% adoption rate, far below the 90% plus of Hong Kong and many European countries.
The Bottom LineImproving Internet speed requires a long-term commitment to investment in infrastructure, enough industry competition to prompt innovation and efficiencies and pricing models that allow a broader swath of a country's population to have access. The more far-flung a country's population is, the more difficult (and expensive) it may be to wire them in. But with so much riding on integrating more people into the web, both the developed and the developing world cannot afford to sit by as rival countries modernize

(source : Yahoo)

Major Banks in the US

17 Major Banks in the US get sued

Published: Friday, 2 Sep 2011 | 5:12 PM ET

A U.S. regulator sued a number of major banks Friday over losses on more than $41 billion in subprime mortgage bonds, which may hamper a broader government mortgage settlement with banks.

The lawsuits by the Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, came as a surprise to the market and weighed on bank shares.

The FHFA accused major banks, including Bank of America [BAC 7.25 -0.66 (-8.34%) ] , its Merrill Lynch unit, Barclays [BCS 10.60 -0.88 (-7.67%) ] , Citigroup [C 28.40 -1.60 (-5.33%) ] and Nomura Holdings of selling bonds backed by mortgages that should have never been packaged into securities.

The other banks are: Ally Financial (formerly GMAC), Countrywide Financial, Credit Suisse, Deutsche Bank, First Horizon National, General Electric, Goldman Sachs, HSBC North America, JPMorgan Chase, Morgan Stanley, The Royal Bank of Scotland Group and Société Générale.

THE BANKS

BAC

 

BCS

C

      

CS

    

DB

    

FHN

          

GE

GS

    

HBC

    

JPM

    

MS

    

RBS

  

The litigation against banks is hurting share prices in the sector because investors feel unable to estimate the ultimate scope of a given bank's legal liabilities.

Bank of America, for example, had intended its proposed $8.5 billion settlement in June with investors in Countrywide mortgage securities to resolve most litigation tied to its disastrous 2008 takeover of that home loan provider.

American International Group is suing Bank of America for $10 billion

Other banks also face mortgage lawsuits. In May, the U.S. Justice Department sued Deutsche Bank [DB 36.27 -2.33 (-6.04%) ]

The FHFA's lawsuits follow an initial lawsuit in July against UBS [UBS 13.80 -0.55 (-3.83%) ] seeking to recover $900 million of losses incurred on $4.5 billion of debt.

Copyright 2011 Thomson Reuters.

From Japan Past Experiences to US Rerating Impact

What would United States lose its "AAA" credit rating mean for investors?

Photo: Bryan Jones

In a bid to understand the ramifications of such a cut, Barry Knapp, the head of U.S. equity strategy at Barclays Capital, has researched back as far as 1998 in order to look at the effect that Moody’s downgrade of Japanese debt had on that nation following the collapse of Long Term Capital Management (LTCM).

Knapp said using the Japanese example to understand the possibilities for the U.S. are “fraught with peril,” but his observations still make for interesting reading.

“Macroeconomic fundamentals were the major drivers of asset prices, rather than the ratings downgrade,” said Knapp in a research note on Wednesday.

1.....“At first blush, we were struck by the massive underperformance of JGBs (Japanese Government Bonds) relative to German Bunds and sharp steepening of the 2-year and 10-year JGB yield curve, which implied that the downgrade did have a significant impact on longer-term yields,” Knapp said.

While yields rose, so did the Nikkei and yen, according to Knapp, who noted that a rebound in Japanese industrial production began in 1998 that dragged Japan out of recession by early 1999.

As a result, the move in Japanese bonds was in Knapp’s opinion due to Fed easing following LTCM’s collapse and Japan’s emergence from recession.

“The initial reaction for Japanese equities in the two weeks following the downgrade was positive, underscoring how other factors were driving the markets. However, within a couple of weeks, equities were struggling, again, likely because it was becoming clear that the first round of bank recapitalizations (in early 1998) were insufficient, setting the stage for a second round (in early 1999),” he said.

Banking stocks weighed on the Nikkei until the recovery took hold and the second round of bank recapitalizations had occurred.

“Once the recession ended and the second round of bank recapitalizations occurred, the yen was right back to where it started before the downgrade,” Knapp said.

With the S&P refusing to take fright at the debt talks in Washington and trading in a range between 1250 and 1350 Knapp has been fielding a lot of questions about why the U.S. equity market has remained so resilient.

“Our answer is that earnings season is off to a good start. We do not think this will last, but not because of the political risks. Instead, we expect the macroeconomic fundamentals to again become the primary driver of stocks, bonds, and the dollar, perhaps as soon as the GDP report, followed by Friday’s July employment report,” said Knapp

“Our expectation on the debt negotiations is a compromise solution that avoids default but not a downgrade. So, if Congress falls short of $4 trillion and S&P sticks to its words, after a brief muted market reaction, the direction of the markets will be highly leveraged to the data with expectations of a second-half rebound in economic activity hanging in the balance.”

(source : CNBC)

China Second-Quarter GDP Rises 9.5% From Year Ago

Published: Tuesday, 12 Jul 2011 | 10:02 PM ET

By: Reuters

China's annual gross domestic product growth eased to 9.5 in the second quarter of 2011 from 9.7 percent in the previous quarter, the National Bureau of Statistics said on Wednesday.

But the growth rate was stronger than market expectations of 9.4 percent.

AP Shanghai Skyline

China's GDP in April-June was up 2.2 percent from the first quarter of 2011 on a seasonally adjusted basis, the statistics agency added. It marked a deceleration from the 2.1 percent recorded in the first quarter of this year.

Industrial output rose 15.1 percent in June from a year earlier.

(Source CNBC)

World's Largest Nuclear Power Plants

Biggest Nuclear Plants

Nearly two months after Japan's nuclear crisis began, the head of Tokyo Electric Power (TEPCO) has finally stepped down and the company posted a $15 billion loss for the year. New details have also emerged, showing three of the reactors at the Fukushima plant likely suffered partial meltdowns.
The disaster in Japan has major implications for the U.S., the world’s largest producer of nuclear energy, especially since the crippled Fukushima plant shares the same design as other plants in the U.S.
In the East, China is on the verge of becoming a major player in the nuclear field with about 27 plants currently under construction. In all, there are 442 nuclear power stations in the world and 16 countries currently have 65 plants under construction.
The world’s largest nuclear stations by output capacity. The rankings are based on the International Atomic Energy Agency's (IAEA) data on megawatts per hour (MWh) produced by active nuclear reactors in 2010.

10. Fukushima Daiichi 4,696 MWh (Okuma, Japan)

Located 170 miles north of Tokyo, Fukushima Daiichi was the world’s 10th largest nuclear station before Japan’s catastrophic earthquake and tsunami.
The plant started operations in 1971 and has six nuclear reactors, which were badly damaged on March 11. Tepco had planned two more reactors at the site, but the company now plans to abandon these and scrap the site entirely, once a safe shutdown has been achieved.
Most of the reactors are old boiling water reactors (BWR) based on a GE design. Even before the latest disaster, TEPCO had been criticized for failing to meet emergency standards at the plant. In February, Tepco admitted to the Japanese nuclear safety agency that it had submitted false inspection and safety reports.

9. Oi 4,710 MWh (Fukui prefecture, Japan)

The Oi nuclear power plant in Fukui prefecture, southwest of Tokyo, is owned by Kansai Electric Power Company (KEPCO), which is one of Japan’s largest utilities.
The plant houses four nuclear reactors that each generate over 1,000 megawatts of power per hour.
KEPCO has come under fire in the past for incidents at its nuclear plants. In 2004, five employees were killed at its Mihama nuclear plant from a burst of steam, which was blamed on neglected safety checks. In 2006, two employees were also injured in a plant fire.

8. Bruce 5,090 MWh (Inverhuron & Tiverton, Canada)

Bruce Power Generating Station is the largest nuclear plant in North America.
The station takes up 2,300 acres near Lake Huron in Ontario. It has eight nuclear reactors, but only six are operational. The company is on track to restart the other two reactors by 2012, adding another 1,500 megawatts of power to the station.
Once all eight are operational, the station will become the world’s second largest nuclear plant by capacity.

7. Cattenom 5,448 MWh (Cattenom, France)

Cattenom nuclear power plant is located in the Lorraine region of France near the border with Germany. The station is owned by Electricite de France (EDF), which is Europe’s biggest power generator and the world’s second biggest utility company.
In April, about 2,000 people protested outside the site along with thousands across the country over the dangers of nuclear power.
France is one of the largest consumers of nuclear power, with 75 percent of its electricity coming from the source. After Japan’s nuclear disaster, French President Nicolas Sarkozy reaffirmed the country’s commitment to nuclear energy saying “France has made a choice.”

6. Paluel 5,528 MWh (Normandy, France)

Situated in the north of France, along the Normandy shore, the Paluel nuclear station is the second largest of its kind in France with four reactors that generate over 1,300 megawatts of power each hour.
Paluel gets its cooling water from the English Channel and is one of four nuclear plants in France that gets its cooling water from the sea. The rest of the country's nuclear stations are located away from the coast and get their cooling water from rivers.
About 11 of the 15 inland plants have evaporative cooling towers to lessen the need for fresh water. But during dry spells and heat waves, problems have occurred with power generation being restricted to peak periods.

5. Gravelines 5,706 MWh (Gravelines, France)

Located in Nord, France near the famous towns of Calais and Dunkirk, the Gravelines plant uses water from the English Channel for cooling. The six reactors came online between 1980 and 1984 and the plant recently completed quite a milestone: it generated its 1000 billionth kilowatt hour of energy.
Local fish farmers use the water that carries waste heat from the plant to help raise European sea bass and other fish. The warm water helps the fish grow faster.

4. Zaporizhzhia 6,000 MWh (Enerhodar, Ukraine)

The Zaporizhzhia power station is Europe’s largest nuclear power plant. Located in central Ukraine on the Dnieper river, the plant has six generators that produce 50 percent of the country’s nuclear energy.
In 2011, Ukraine marked the 25 th anniversary of Chernobyl, the world’s worst nuclear disaster. The nuclear plant explosion reportedly released about 400 times more radiation than the atomic bomb dropped over Hiroshima during World War II.
Ukraine has agreed to give up stockpiles of highly-enriched uranium, left over from the breakup of the Soviet Union by 2012. The materials amount to the third-largest nuclear arsenal in the world.

3. Yonggwang 6,137 MWh (Yonggwang, South Korea)

The Yonggwang nuclear station, located in southwestern Jeollanam do province, has six nuclear reactors that each produce over 900 megawatts of power.
The plant, which began operation in 1978, was closely monitored by safety inspectors in late March after radioactive iodine was found in areas, including the country’s capital Seoul.
But reports suggest that the particles may have come from Japan’s Fukushima power plant instead.
South Korea has 21 commercial nuclear power plants, and is the world’s sixth largest nuclear power producer.

2. Uljin 6,157 MWh (Gyeongsangbuk-do province, South Korea)

Surrounded with walls to protect it against 10-meter tsunamis, the Uljin nuclear power plant is located in the Gyeongsangbuk-do province on the east coast of South Korea.
The plant’s six nuclear reactors have been built to withstand 6.5 magnitude earthquakes, and new reactors are being designed to withstand up to magnitude 7 tremors.
South Korea wants to nearly double its generation of electricity from nuclear energy by 2030, but faces opposition from lawmakers and residents, especially after Japan’s nuclear disaster.
In an attempt to ease fears, the government announced plans to spend $922 million over five years on safety upgrades.

1. Kashiwazaki-Kariwa 8,212 MWh (Niigata prefecture, Japan)

Situated in the towns of Kashiwazaki and Kariwa, the world’s largest nuclear power plant by capacity has seven nuclear reactors. The station is about 220 km northwest of Toyko, in the Niigata Prefecture. The site along the coast of the Sea of Japan covers 4.2 square-kilometers.
The plant, owned by Tepco, was built in 1985, but didn’t start commercial operation of all seven reactors until 1997.
In 2007, the plant was shut down after radioactive leaks were discovered in the sea following a 6.8 magnitude earthquake.
At the time, Tepco faced heavy criticism for failing to quickly extinguish an electric transformer fire, and for delays in alerting authorities about malfunctions at the plant
source CNBC

Bull Run for timber stocks ...

Thursday, 17 March 2011 11:17
KUALA LUMPUR: Timber-related stocks advanced on Thursday, March 17 on expectations of an increase in demand for products following the earthquake in Japan last Friday.
AmResearch has maintained its overweight rating on the timber sector and its buy call on Ta Ann and Jaya Tiasa, with fair values of RM6.30 and RM6 respectively.
The research house said that the Ta Ann management informed it that there had been no supply disruption so far to Japan.
“Orders are placed once or twice in a month. Its shipments go through Osaka, south of Tokyo in the central-southern region, which was not affected by the tsunami,” it said.
Meanwhile, MIDF Research in a note March 17 said local timber companies will be the main beneficiary when Japans starts to rebuild the earthquake disaster areas as Malaysia is their largest plywood exporter accounting for 48% of Japan’s total plywood.
Japan imports more than 50% of the total plywood for its consumption, it said.
“We believe the main beneficiary will be WTK and Ta Ann since these companies exposure to the Japan market is about 80-90% of their plywood sales.
“Between them, WTK has greater leverage since it is a pure timber company compared to Ta Ann whose earnings mainly comes from CPO with its plywood division registering loss due to the usage of more costly eco-friendly raw material sourced from its Tasmanian operation.
Lingui is the other beneficiary as it has close to 50% exposure to Japan’s plywood sales, it said

*source the edge

World Largest Glove Maker : Top Glove

TOP GLOVE CORPORATION BHD

Net profit for the second quarter ended Feb 28, 2011 fell 63.9% to RM25.41 million from RM70.53 million a year earlier, due mainly to persistently high latex prices and the continued weakening of the US dollar coupled with the time lag in passing on the higher costs to its customers,

Revenue for the period fell to RM485.21 million from RM509.89 million last year.
Earnings per share was 4.11 sen while net assets per share was RM1.82.
For the six months ended Feb 28, Top Glove’s net profit tumbled to RM61.46 million from RM135.73 million last year, on the back of revenue RM976.72 million.

Reviewing its performance, Top Glove said the decline in performance comparing with last year was also due to the exceptionally high sales volume experienced last year during the H1N1 flu virus outbreak.
It said on Wednesday, March 16 that in order to mitigate latex cost increases in the future, the company had started moving upstream by acquiring land by diversifying into rubber PLANTATION.

“Top Glove is also dedicating more production lines to produce nitrile gloves, which command better margins and not subjected to the volatility in latex prices,” it said.

The company said it continued to maintain its strong balance sheet position with net cash and short term investments of RM207 million despite higher working capital requirement from the escalating latex price.
Top Glove chairman Tan Sri Lim Wee Chai said it was a challenging period, as the company faced substantial increases in its main raw material costs and adverse foreign exchange movements.

“Nevertheless, we have started to revise our latex glove prices and it is starting to arrest the decline in our revenue. We are also rigorously mitigating the impact of foreign exchange through hedging with forward contracts,” he said.

Lim said Top Glove's long-standing business relationship with its customers had enabled it to seek their understanding in passing on part of the increased raw material costs to them.
“Even though in the short term we expect the business conditions to remain difficult, I am encouraged by our prospects going forward while we take actions to strengthen the Group and improve returns to shareholders,” said Lim.

(Source : The Edge)

World Top Oil Producing Nations

Unrest in the Middle East has put investors on high alert as crude oil prices move seemingly with every development in the region.
In order to understand the effect of those events on both US and global oil markets, a key figure to watch is the amount of crude oil produced daily in each country. With data from the Energy Information Administration (EIA), a division of the Department of Energy.
The numbers that follow are the most recent available from the EIA, dating from November 2010, unless otherwise noted. As a result, the numbers represent daily production levels of countries under normal circumstances prior to the recent events in the Middle East.
Interestingly, Libya ranks as only the 17th largest oil producer in the world and imported 32,000 barrels of crude per day to the United States in December 2010, representing an average of approximately 0.37% of daily US crude imports that month.


 15. Norway  
Crude production: 2.14 million barrels per day
Share of world production: 2.45%
Daily crude exports to the US: 35,000*
Proven reserves: 6.7 billion barrels
*Export daily average in October 2010. From July-August 2010, daily exports ranged from 10,000 barrels to 31,000 barrels per day.

 14. Algeria  
Crude production: 2.16 million barrels per day
Share of world production: 2.47%
Daily crude exports to the US: 262,000 barrels
Proven reserves: 12.2 billion barrels

 13. Venezuela
Crude production: 2.35 million barrels per day
Share of world production: 2.8%
Daily crude exports to the US: 825,000 barrels
Proven reserves: 99.4 billion barrels

 12. Iraq  
Crude production: 2.39 million barrels per day
Share of world production: 2.81%
Daily crude exports to the US: 336,000 barrels
Proven reserves: 115 billion barrels

 11. Kuwait
Crude production: 2.5 million barrels per day
Share of world production: 2.93%
Daily crude exports to the US: 125,000 barrels
Proven reserves: 101.5 billion barrels

 10. Nigeria
Crude production: 2.51 million barrels per day
Share of world production: 2.95%
Daily crude exports to the US: 1.02 million barrels
Proven reserves: 37.2 billion barrels

 9. Brazil
Crude production: 2.75 million barrels per day
Share of world production: 3.2%
Daily crude exports to the US: 271,000 barrels
Proven reserves: 12.8 billion barrels

 8. United Arab Emirates
Crude production: 2.81 million barrels per day
Share of world production: 3.3%
Daily crude exports to the US: 10,000 barrels*
Proven reserves: 97.8 billion barrels

 7. Mexico
Crude production: 2.88 million barrels per day
Share of world production: 3.39%
Daily crude exports to the US: 1.22 million barrels
Proven reserves: 10.4 billion barrels

 6. Canada
Crude production: 3.7 million barrels per day
Share of world production: 4.3%
Daily crude exports to the US: 2.06 million barrels
Proven reserves: 175.2 billion barrels

 5. Iran
Crude production: 4.2 million barrels per day
Share of world production: 4.9%
Daily crude exports to the US: 0
Proven reserves: 137.6 billion barrels

 4. China
Crude production: 4.26 million barrels per day
Share of world production: 5.0%
Daily crude exports to the US: 8,000 barrels*
Proven reserves: 20.4 billion barrels

 3. United States
Crude production: 8.85 million barrels per day
Share of world production: 10.4%
Total crude imports: 8.63 million barrels per day
Proven reserves: 19.2 billion barrels

 2. Russia
Crude production: 9.91 million barrels per day
Share of world production: 11.6%
Daily crude exports to the US: 158,000 barrels
Proven reserves: 60 billion barrels

 1. Saudi Arabia
Crude production: 10.3 million barrels per day
Share of world production: 12.1%
Daily crude exports to the US: 1.08 million barrels
Proven reserves: 259.9 billion barrels

( source : CNBC )

Notes :
  Total daily crude imports to US  : 8.63 million barrels
  Total world proven reserves from top 15 producing countries  : 1165.3 billion barrels

  North Africa and Arab World    : 7 out of 15 countries
  Share of world production          :  31.46 %                 
  Daily crude exports to US          :  2.833 million barrels ( 32.82 % of total export to US )
  Proven reserves                         :  761.2 billion  barrels ( 65.32 % of top 15 countries )

   South America                          : 3 out of 15
   Share of world production         :  9.39 %   
   Daily crude exports to US         :  2.31 million barrels ( 26.76 % )
   Proven reserves                        :  122.6 billion barrels ( 10.52 % )

  Top 15 excluding South Africa and Arab World, South America
   Share of world production         : 33.75 %
   Daily crude exports to US         : 3.487 million barrels ( 41.04 % )
   Proven reserves                        : 281.5 billion barrels of ( 24.16 % )

Alibaba

Alibaba.com Ltd., owner of China’s largest online-commerce site, has been the go-to marketplace for Western companies seeking gaskets, garden gnomes and gelatin. Disclosures that its salespeople helped defraud buyers may send business to rivals Google Inc. and Global Sources Ltd.


Since Alibaba announced the scam Feb. 21, its chief executive officer and chief operating officer resigned, and the Hangzhou, China-based company has lost about $1 billion in market value. The flagship of Alibaba Group Holding Ltd., which counts Yahoo! Inc. as its biggest shareholder, also may struggle to sign up new clients, analysts said.

Alibaba.com shares have fallen 14 percent in Hong Kong trading since the announcement, and three analysts downgraded their recommendations from buy to hold. Wuh, the top Alibaba analyst over the past year according to Bloomberg Absolute Return Rank, maintained his sell recommendation.
Alibaba fell 4.8 percent to HK$14.40 at the 12:30 p.m. trading break in Hong Kong after dropping as much as 6.5 percent earlier in the day.

Alibaba.com, founded in 1999 by Jack Ma, is a business-to- business, or B2B, website. Its target audience is companies in the U.S. and Europe buying from low-cost manufacturers in China, Vietnam and Pakistan, among others. The buyers typically are too small to travel thousands of miles to meet suppliers and inspect factories.
The company operates marketplaces in Chinese, English and Japanese. Buyers use the services for free while suppliers pay an annual fee of 29,800 yuan ($4,500) to appear on the English- language website as a “Gold Supplier” for a year, Spelich said.

The site offers tips for avoiding fraud and hosts a forum where users can notify each other of potential scammers. Alibaba also posts the names of suppliers who have been banned.
Alibaba.com may have been victimized by its own success, Wuh said. Sales more than tripled to $567.2 million in 2009 from $171.1 million in 2006, according to data compiled by Bloomberg.
That growth was fueled by company claims a third party verifies the credibility of all suppliers with paid memberships. Its database of registered suppliers almost tripled to 108,000 last year from about 30,000 in 2008, Wuh said.
The frauds recently disclosed involved vendors offering small quantities of electronics at attractive prices, with payments settled using “less reliable” methods, Spelich has said. Alibaba employees either intentionally or negligently allowed the vendors to evade authentication and verification measures, the company said.

Google Benefits

Google Inc., the Mountain View, California-based operator of the Internet’s most-used search engine, may benefit from sellers setting up their own websites and paying to show up on Internet queries, said Muzhi Li, an analyst at Mizuho Securities Asia Ltd. in Hong Kong.

Caroline Hsu, a spokeswoman for Google in Hong Kong and Taiwan, declined to comment on how the company’s business might benefit from the Alibaba fraud.
Another beneficiary may be Global Sources, a Shenzhen, China-based organizer of trade shows where buyers meet sellers of electronics, toys and lingerie, among other products, analysts said. It organizes 56 shows a year in locations including India, China, South Africa, Dubai and Miami.

Third-Party Checks
The company also operates a B2B site the competes against Alibaba. Online and other media services accounted for about 66 percent of Global Source’s $174.5 million in revenue in 2009, the last full year reported. Its stock is up 19 percent this year in New York trading.

Like Alibaba, Global Sources uses contractors to vet suppliers through factory visits and checks of business registrations and credit, Chief Executive Officer Merle Hinrichs said. The company has about 260,000 sellers, primarily in Asia, and about 970,000 buyers worldwide.
The strength of Alibaba’s model has been called into doubt, said Dane Chamorro, managing director for North Asia at Control Risks Group in Shanghai. His firm does background checks for companies.

‘Lost Their Way’

Although Alibaba tries to minimize the risks to buyers by vetting sellers, the system broke down because staff colluded with fraudulent sellers to bypass that verification process, said Elinor Leung, head of Internet research at CLSA Ltd. in Hong Kong. More than 2,300 vendors were involved, Alibaba said.

Alibaba CEO David Wei and COO Elvis Lee, who weren’t accused of wrongdoing, resigned to take responsibility for the “systemic breakdown” of integrity, the company said in a statement. About 100 salespeople were involved, the company said.

Jonathan Lu, 41, who heads the Taobao.com online retailing affiliate, China’s Ebay, replaced Wei.

That’s no small task, Li said. As many as 35 percent of Alibaba’s registered sellers don’t renew their one-year contracts, meaning the company needs to add about 35,000 new suppliers a year to maintain current sales.
The turnover rate at Global Sources is about the same, Hinrichs said.
The entire B2B industry will suffer from the Alibaba scam, he said.

Mid Valley Megamall market value @ RM1.92b

KUALA LUMPUR: The Mid Valley Megamall, which is owned by KRISASSETS HOLDINGS BHD ’s unit Mid Valley Megamall, has a market value of RM1.92 billion as at Dec 31, 2010 following a revaluation. The company said on Feb 11, 2011, this was a 3.78% increase over the RM1.85 billion when it was revalued on Sept 30.

KrisAssets said the net surplus of RM52.5 million (deferred tax at 25%) was recognised in statement of comprehensive income of KrisAssets group for the three months ended Dec 31, 2010.
“The total net surplus for the financial year ended Dec 31, 2010 is RM90 million, an increase of 6.67% compared with the preceding year. Based on the ordinary share capital and treasury shares as at Dec 31, 2010, the consolidated net assets per share of KrisAssets is RM3.52 per share,” it said.
It announced for the quarter ended Dec 31, 2010, the company recorded a 5.4% increase in revenue to RM61.79 million from RM58.63 million mainly due to higher total rental income.
Net profit rose 61.7% to RM80.11 million from RM49.54 million. It proposed a dividend of 7.5 sen a share, similar to a year ago.
Pre-tax profit rose 72.6% to RM107.4 million compared with RM62.2 million a year ago. This was mainly due to recognition of revaluation surplus of RM70 million as fair value gain on investment property in the current quarter compared with RM30 million in the corresponding quarter in 2009.
“Excluding the fair value gains on investment property, the group recorded pre-tax profit of RM37.4 million, representing 16.15% increase, compared with pre-tax profit of RM32.2 million in the corresponding period in 2009. This was mainly due to higher total rental income and lower maintenance and utility costs in the current quarter,” it said.
For the financial year ended Dec 31, 2010, earnings rose 47% to RM200.01 million from RM136.02 million while revenue increased by 5% to RM239.39 million from RM227.88 million.

Malaysia Oil and Gas Companies in 2011

KUALA LUMPUR:
2011 Prospect : M&A
This year is poised to be an exciting one for local oil and gas (O&G) players on the back of improving prospects as crude oil prices continue to rise, with observers saying this could also mean more mergers and acquisitions (M&A) within the sector.
Local analysts have been forecasting that this year will see several major trends, including bigger orderbooks and tenders in the pipeline, strategic partnerships being announced and more corporate exercises including mergers, take-overs and capital-raising activities taking place.
News of oil major Petroliam Nasional Bhd (Petronas) opening up marginal oilfields to niche players, as well as five new tax incentives to encourage domestic exploration activities created some excitement in the market, with many O&G counters seeing increased investor attention.

The exploration activities are set to benefit hook-up and commissioning (HUC) job players such as SapuraCrest Petroleum Bhd, Kencana Petroleum Bhd and Petra Energy Bhd, as well as fabrication yard operators who are also poised for a consolidation, according to UOBKayHian.
“Malaysia Marine and Heavy Engineering Holdings Bhd’s (MMHE) yard in Johor is currently operating at full capacity, and additional yard capacity and size would fuel its growth,” it said in its January 2011 strategy report.
“MMHE could be looking into Sime Darby’s assets or even other Petronas-licensed smaller fabrication yards that are less well run, such as Oilcorp Bhd which is facing solvency issues.”
Maybank Investment Bank Research reiterated the view, saying it expected the number of offshore fabricators to contract to two from six at present.
“We think MMHE, 65% held by MISC Bhd and ultimately Petronas, will be an acquirer. Ramunia and Sime Engineering, 100%-owned by Sime Darby are the likely targets,” it said.
“In addition, we foresee new assets/businesses being injected into Ramunia and Scomi Marine, both PN 17 counters (i.e. cash rich, but without a core business).”

Potential target M&A
In addition to fabricators, Maybank IB Research also highlighted several marine vessel operators as potential acquisition targets, namely Alam Maritim Resources Bhd, Petra Perdana Bhd and Tanjung Offshore Bhd, as well as private limited offshore support vessel provider Jasa Merin (M) Sdn Bhd, whose parent company is SILK Holdings Bhd.
“These operators have undemanding valuations but stretched balance sheets with high gearing levels, which complicate their growth prospects,” it said in a Jan 7, 2011 note.
The brokerage firm also highlighted that cash-rich SapuraCrest could be keen on acquiring marine vessels as a strategic asset to complement its installation of pipeline and facilities (IPF) operations.
UOBKayHian had also highlighted SapuraCrest’s eligibility as a potential M&A target, due to its ability to fund its expansion plans easily across the entire O&G upstream value chain.

Another possible acquirer could be Ekuiti Nasional Bhd (Ekuinas), as it may be looking to accelerate consolidation among bumiputera marine vessel owners, according to Maybank IB Research, saying it is likely to start with Tanjung Offshore, in which it has a 24% equity interest.
“The key driver of consolidation in this sector by Ekuinas is to create a stronger entity both in terms of size and financials,” an analyst told The Edge Financial Daily. “At present, most vessel players are highly geared with limited room for expansion.”

Meanwhile, market speculation had also recently surfaced that Alam Maritim Resources Bhd could be in the preliminary stages of exploring a working relationship with Coastal Contracts Bhd.
An industry source told The Edge Financial Daily that the partnership could prove promising as there did not appear to be an overlap in their businesses.
Alam Maritim is primarily involved in the supply of offshore supply vessels for the O&G sector as well as underwater services. Meanwhile, Coastal is a Sandakan-based company whose areas of business include vessels manufacturing and chartering.
“Catalysts for cooperation include Coastal’s fabrication shipyard and the Sabah connection, while Alam Maritim has been said to be game for strategic tie-ups,” the source said. “Main issues would be pricing and control of management.”
Maybank IB Research also highlighted upcoming high-impact projects in Sabah, including the Sabah Oil and Gas Terminal, Sabah-Sarawak Gas Pipeline, Sipitang O&G Industrial Park as well as Petronas Chemicals Group Bhd’s ammonia and urea plants.
It is worth noting that pilgrim fund Lembaga Tabung Haji (LTH) is a common shareholder in both Coastal and Alam Maritim, albeit with non-controlling stakes.
LTH has 72.56 million shares in Alam Maritim, representing a 9.29% stake, while it has 18.2 million shares in Coastal, representing a 5.02% equity interest.

(Source : The Edge Financial Daily, January 10, 2011)

The World's Biggest Gold Reserves

15. Venezuela
Value of Reserves: $17.33 billion
Holdings Total: 401.1 tons
Banco Central de Venezuela manages the 401.1 tons of gold in the country’s reserves, which amount to approximately $17.33 billion, representing 52.4 percent of the country's foreign reserves.
Although Venezuela currently has the fifteenth on the list, it has been increasing its holdings since 2009, when president Hugo Chavez introduced new policies to promote gold extraction and boost the country's ranking

14. Portugal
Value of Reserves: $18.21 billion
Holdings Total: 421.6 tons
The westernmost nation in mainland Europe is home to the fourteenth largest gold reserve in the world. At 421.6 tons, Portugal’s holdings are overseen by Banco de Portugal and are worth roughly $18.21 billion, accounting for 81.1 percent of the country’s foreign reserves.

13. Taiwan
Value of Reserves: $20.17 billion
Holdings Total: 466.9 tons
Renowned for its technology industry and robust economic growth, Taiwan also boasts one of the largest gold reserves in the world.
The Central Bank of the Republic of China (Taiwan) manages the island nation’s foreign reserves, which have been reported at 466.9 tons. These holdings are worth $20.17 billion at today's prices and comprise approximately 4.6 percent of the country's foreign reserves


12. European Central Bank (ECB)
Value of Reserves: $23.88 billion
Holdings Total: 522.7 tons
Established in 1998 by the European Union, the European Central Bank is responsible for the monetary policy of the member nations of the Eurozone and is headquartered in Frankfurt, Germany.
The ECB's 522.7 tons of gold accounts for 25.2 percent of the bank's foreign reserves and would be worth $23.88 billion in today's market.

11. India
Value of Reserves: $26.56 billion
Holdings Total: 614.8 tons
Shooting up in the rankings in the past years is India. The second most populous nation in the world maintains the eleventh largest gold reserves. The size of India's holdings were bolstered in November 2009 by a $6.9 billion purchase of 200 tons of gold from the IMF.
The Reserve Bank of India oversees the country’s 614.8 tons of gold, which are valued at $26.56 billion, comprising 8.1% of its foreign reserves. India’s current ranking may also continue to move upwards, as the government has asked the Geological Survey of India to mine the previously untapped gold reserves in many of its states.

10. Netherlands
Value of Reserves: $29.67 billion
Holdings Total: 675.2 tons
The Netherlands has the tenth largest reserve on the list with 675.2 tons of gold. The Netherland Bank manages the country’s national finances, including the gold reserves, which amount to approximately $26.67 billion and account for 57.5 percent of the country's foreign reserves.

9. Japan
Value of Reserves: $36.43 billion
Holdings Total: 843.5 tons
Although Japan is ninth on the list, its 843.5 tons of gold account for only 3 percent of total foreign reserves. On the open market, Japan's gold reserves are worth around $36.43 billion, and are overseen by the Bank of Japan.

8. Russia
Value of Reserves: $36.91 billion
Holdings Total: 854.5 tons
The Central Bank of the Russian Federation is in charge of the country’s 854.5 tons of gold, which are valued at $36.91 billion and comprise 6.7% of the country’s foreign reserves.
In 2009 Russia increased its gold production by 21%, due in part to the launch of several new mines, and this past year overcame Japan in total holdings, adding over 140 tons to its stockpile in 2010 alone.

7. Switzerland
Value of Reserves: $49.53 billion
Holdings Total: 1,146.5 tons
The Swiss National Bank conducts Switzerland's monetary policy and manages the country's 1,146.5 tons of gold.
With the world's seventh largest reserve of the precious metal, Switzerland's supply is worth approximately $49.53 billion in today's gold market, accounting for 16.4 percent of the country's foreign reserves. This proportion is down significantly from a year earlier.

6. China
Value of Reserves: $50.19 billion
Holdings Total: 1,161.9 tons
At 1,161.9 tons, the world's most heavily populated country has the world's sixth largest gold reserve. Expect it to be higher? Well, bear in mind that China's gold only accounts for 1.7 percent of its foreign reserves. With a population of 1.34 billion, the country holds about $37.45 worth of gold per person, totaling $50.19 billion.

5. France
Value of Reserves: $115.97 billion
Holdings Total: 2,684.6 tons
The French National Bank, Banque De France, is home to the country's gold holdings, which comprise 67.2 percent of its foreign reserves. With 2,684.6 tons of gold in reserve, France's holdings are worth approximately $115.97 billion.

4. Italy
Value of Reserves: $116.75 billion
Holdings Total: 2,702.6 tons
The Banca D'Italia manages Italy's foreign reserves, which have been reported at 2,702.6 tons by the World Gold Council and comprise the fourth largest gold reserve in the world.
These holdings are worth $116.75 billion and account for 68.6 percent of the country's foreign reserves.

3. International Monetary Fund (IMF)
Value of Reserves: $135.56 billion
Holdings Total: 3,137.9 tons
The IMF oversees international economic operations of 185 member countries. Its gold policies have changed in the last 25 years, but the reserves remain to stabilize international markets and aid national economies.
In one such instance, it sold a portion of its reserves in December 1999 to aid the Heavily Indebted Poor Countries (HIPC) Initiative. The 3,137.9 tons of IMF Gold would fetch roughly $135.5 billion in today's market.

2. Germany
Value of Reserves: $161.99 billion
Holdings Total: 3,749.8 tons
The Deutsche Bundesbank, Germany's central bank, has 3,749.8 tons of gold reserves, which are valued at about $161.99 billion. According to the World Gold Council, Germany’s gold coffers account for 70.3 percent of total foreign reserves.

1. United States
Value of Reserves: $387.32 billion
Holdings Total: 8,965.6 tons
The United States Bullion Depository in Kentucky — otherwise known as Fort Knox — is the most famous gold stockpile in the world. It holds the majority of the nation’s gold reserves, the remainder of which is held at the Philadelphia Mint, the Denver Mint, the West Point Bullion Depository and the San Francisco Assay Office.
Altogether, the total gold reserves of the United States equal 8,965.6 tons and would be valued at approximately $387.32 billion in today's market.

(Source : CNBC)

Stop Press : US Debt to GDP and The Euro ..

Jan 24, 2011 5:00 PM GMT+0800
U.S. federal government debt will climb to 99 percent of gross domestic product this year from 93 percent in 2010, while the euro region will total 87 percent, according to International Monetary Fund forecasts ..

The EU has already agreed to bail out Greece and Ireland, and bond investors are concerned Portugal, and possibly Belgium and Spain may be next. Portugal 10-year yields have reached the 7 percent mark that preceded Ireland and Greece’s aid requests.

Bonds yields are still sending danger signals to some of the most-accurate forecasters, who say the rebound won’t last. Wells Fargo & Co., the best foreign-exchange predictor in the 18 months ended Dec. 31, expects a drop to $1.25 by year- end. John Taylor, chairman of the world’s largest currency hedge-fund firm, FX Concepts LLC, said on Jan. 5 the euro may fall below parity with the dollar this year.

Finance ministers from Europe’s top-rated countries, Germany, France, Austria, the Netherlands, Finland and Luxembourg, met on Jan. 17 to discuss strengthening the rescue fund. A “comprehensive package” will be assembled by March, Finance Minister Wolfgang Schaeuble said Jan. 13.

China, which has the world’s largest foreign-currency reserves, said this month it plans to buy securities from the region’s most-indebted countries. Japan said on Jan. 11 it will purchase bonds issued by one of Europe’s bailout funds, while Russia, holder of almost $500 billion of reserves, said it may do the same on Jan. 18

Euro-dollar three-month risk reversals, which measure demand for options to sell the single currency relative to those that allow for purchases, declined to 1.325 on Jan. 13 from 2.150 on Jan. 7, the fastest drop since the three days ended Sept. 16, according to data compiled by Bloomberg. The euro rallied from $1.2644 on Sept. 10 to about a 10-month high of $1.4282 on Nov. 4.
(Source : Bloomberg)

Washington Post Largest Shareholders and Warrent Buffett

Billionaire Warren Buffett is retiring from the board of Washington Post Co., the publishing company in which his Berkshire Hathaway Inc. is the largest shareholder.
Buffett, who joined the board in 1974, will remain a director until the end of his term in May and won’t seek re- election, Washington Post said today in a statement distributed by Business Wire. He’ll continue to consult with the company.

Buffett, 80, is preparing Omaha, Nebraska-based Berkshire for his eventual departure. Last year, the company announced the addition of money manager Todd Combs to help oversee investments. Buffett stepped down from the board of Coca-Cola Co. in 2006, and the soft-drink maker said in December that his son Howard Buffett was becoming a director.

Washington Post gained $2.61 to $426 at 1:44 p.m. in New York Stock Exchange composite trading. Berkshire was little changed.

Buffett, Berkshire’s chairman, chief executive officer and biggest shareholder, built the company over four decades. He launched a succession plan in 2006. Buffett oversees more than 70 operating units and an investment portfolio that contains the biggest stakes in Wells Fargo & Co. and Atlanta-based Coca-Cola.

Melinda French Gates, who runs the Bill & Melinda Gates Foundation with her husband, Microsoft Corp.’s co-founder, stepped down from Washington Post’s board in November.

The Washington Post newspaper’s average weekday readership was 545,345 in the six months through September, down 6.4 percent from a year earlier, according to Audit Bureau of Circulations data. That compares with a 5 percent drop industrywide.

(source : Bloomberg)

Major Correction In KLSE is Looming Soon ?

Stop Press on KLSE .....

Recent rise in majority stocks raise concern that the good time might be ending soon. As KLSE continue to break new historical high as well as ultra high volumn speak for itself that the danger is in the making that there is a concern of major correction is on its way. Time to retrieve and keep your "bullet"....

Malaysia Major Stock Broking Houses And The Way Forward ....

KUALA LUMPUR: Friday, 14 January 2011 12:09
Olympia Industries Bhd and Kretam Holdings Bhd — announced that their standalone stockbroking units had received the Securities Commission’s (SC) nod to undertake activities accorded to a 1+1 stockbroking company.
They were given the 1+1 status, which allows them to open branches, provide electronic access facilities and undertake structured products offerings, without having to conduct a merger with another player.

According to both companies’ announcements, the approvals given to Jupiter Securities Sdn Bhd and Innosabah Securities Bhd, owned by Olympia and Kretam respectively, were provided under the Alternative Mechanism to Fulfilling the Consolidation Requirement Under the Policy Framework for Stockbroking Industry Consolidation.

In a reply to queries by The Edge Financial Daily recently, a SC spokesperson said the “alternative mechanism” represented the conclusion to the Consolidation Policy that was initiated in April 2000.
Standalone brokers can now get 1+1 status with access to more revenue-generating ops.

While the alternative mechanism is not a new policy, this is the first time that the SC has actually utilised the mechanism to give a lift-up to standalone stockbroking firms, which had failed to undertake a 1+1 merger as per the SC’s initiatives 10 years ago and thus had been left out of the opportunities to expand their business via opening more branches.

“This will effectively enhance the value of these stockbroking companies, as they now have access to more revenue-generating operations without having to pay premium in acquiring another standalone stockbroking company,” an industry observer said, adding that some of these standalone stockbrokers now stand a better chance of attracting suitors from abroad.

The alternative mechanism was seen as a second chance for standalone broking firms. Currently, only six standalone stockbroking companies remain in the country. They are BIMB Securities Sdn Bhd, FA Securities Sdn Bhd, Innosabah, Jupiter Securities, Malacca Securities Sdn Bhd and SJ Securities Sdn Bhd.
Some of these firms had attempted mergers previously. In 2001, Jupiter Securities was in talks to acquire Innosabah to tap into the Sabah equities market. However, the agreement lapsed in 2002.

There are 26 non-bank backed “capital market intermediaries” currently. These comprise one universal broker (PM Securities), six 1+1 brokers (including TA Securities, Interpacific Securities and Apex Securities), six standalone investment banks (including OSK Investment Bank and Kenanga Investment Bank), seven foreign stockbroking outfits (such as CLSA, UBS and JP Morgan), and six standalone brokers.

However, there are certain criteria that standalone brokers would have to meet for the 1+1 status to be accorded.
The SC spokesperson said the alternative mechanism required standalone stockbroking companies to commit investments to strengthen their operational framework and to contribute to an industry development fund. The regulator, however, was mum on the amount of funds that these brokerage outfits are required to commit.
The brokers are required to allocate a budget to enhance the current front office system by investing in a new order management system within three years of the development plan. This is to strengthen these firms’ operation framework and promote investment in the stock market.
The SC would only formally recognise their 1+1 status when all the conditions are met.
Standalone brokers were required to have a minimum paid-up capital of RM20 million and shareholders’ funds of RM20 million. Nonetheless, their expansion was capped as they were not allowed to open branches or offer other products and services apart from broking activities.

Since 2000, some of the stockbroking companies such as OSK and Kenanga had moved on to become full-fledged investment banks, which require an even higher minimum paid-up capital of RM500 million. Fast track into 2011, firms like OSK not only have operations in Malaysia but is known as a regional financial services firm with branches in Singapore, Hong Kong and Indonesia.
“No doubt standalone brokers had avoided paying a steep premium for the 1+1 status. But as they were unable to expand over the last 10 years, they have lost a lot of business opportunities to their old rivals, which have grown much bigger. They will have a lot of catching up to do,” says an industry observer.

Source :  The Edge