Core Focus: Thematic, Growth & Value Play On Lower Liners StocksStrategic Approach: Scenario Thinking & PlanningTools: Depend On Access Of Historical Data, Charts Development

And The Help Of Various Tools And Resources AvailablePurpose: To Manage, Prepare & Forecast The Future Risks, Uncertainties, Movements & Trends Of The Market

Strategic Approach …

Scenario analysis and planning have been extensively used by policymakers to ensure a state of readiness to respond to sudden or significant changes in the environment. Thinking about the possibilities and probabilities thus becomes relevant. Scenario-analysis and planning offer a solution. Scenarios, however, are not projections, predictions or preferences but rather provide a way of making sense of uncertainties. In addition, they challenge our assumptions about what the future holds. 

*** LOCAL Insight GLOBAL Perspective ***

1. Thematic Playa. The Progress Of The GLCs Transformation 4.1b. The Iskander Development Region (IDR) In South Johor 4.4c. The Eastern Corridor Development Programme (Petronas-Led) 3.5d. The Northern Corridor Economic Region 4.2e. The Water Services Industry 7.1f. The Undersea Cable Project 2.1g. RM9 Billion LRT Extension Project 3.1h. The Asia Petroleum Hub (APH) 1.1i. Sarawak Corridor of Renewable Energy (SCORE) 2.0j. The Trans-Peninsula Pipe Project 1.1k. Further Liberalization Of The Services/Financial Sectorl. The Malaysian Government’s Reform “Train”m. GLCs Revampn. Second Wave Privatization 1.3o. The New Economic Model (ETP) 1.6p. The 10MP 1.1q. The Political Trend Of Malaysia 1.4r. The MRT System 2.3s. The Singapore-Malaysia JV Involving KTMB Land In Singapore 1.4t. Malaysia Listed As China’s QDII Destination 1.2u. The Redevelopment of Kampung Baru 1.1v. The Redevelopment of Sungai Besi RMAF (Bandar Malaysia) 1.3w. The Redevelopment of Pudu Prison (BBCC) 1.2x. The Redevelopment of RRIM 1.0y. Government-Backed Entities - 1MDB, Ekuiti Nasional Bhd 1.4z. The Bakun Dam 1.4aa. The RM5 Billion Warisan Merdeka 1.2bb. The Development Of Dataran Perdana (KLIFD) 1.5cc. The KL-Singapore High Speed Train Project 1.4dd. The Pengerang Independent Deepwater Petroleum Terminal Project 1.1ee. The Capital Market Master Plan (2) 1.0ff. The Development of Inter-City Rail Transit Network In Iskandar

Malaysia 1.0gg. The US$20 Billion RAPID 1.0hh. The River Of Life Project 1.3ii. The RM5 billion North Malay Basin Project 1.0jj. The Second Rolling Plan 1.0kk. The CyberJaya City Centre 1.0ll. The RTS Linking JB And Singapore Link 1.2mm. The JB City Centre Transformation Project 1.0

2. Malaysia Nonfinancial Industry Development:- a. The Life Sciences Industry – Pharmaceutical 1.2;b. The Palm Oil/Biodiesel Industry 19.6;c. The Oil & Gas Industry 11.0;d. The Timber Industry 5.3;e. The Telecommunication Industry 8.2;f. The Steel/Aluminium Industry 10.3;

g. The REITs Industry 3.2;h. The Construction Industry 7.1;i. The Housing And Properties Industry 10.2;j. The Cement Industry 1.6;k. The Water Services Industry 8.9;l. The Plastic Industry 1.1;m. The Electronics Industry 11.9;n. The Furniture Industry 1.4;o. The Shipping/Logistics Industry 8.6;p. The Agriculture Industry 1.0;q. The Poultry Industry 1.0;r. The Regulated Assets (Power, IPPs & Toll Operators) Industry 2.9s. The Rubber/Rubber Glove Industry 4.2;t. The Textile Industry 1.0;u. The Automotive Industry 3.1;v. The F&B Industry 1.6;w. The Gaming Industry 1.6;x. The Packaging Industry 1.0;y. The Tin Industry 1.4;z. The Education Industry 1.3;aa. The Healthcare Industry 1.2;bb. The Coal Industry 1.0;cc. The Aviation Industry 1.1;dd. The Cocoa Industry 1.1;ee. The Power Industry (Hydroelectric,Gas/Coal,IPPs,Biomass,Nuclear) 1.1

3. Malaysia Financial Industry Development:-a. The Banking, Insurance & StockBroking Industry 9.5;b. The Foreign Exchange Liberalizationc. The Privatization & M&As Trend In Bursa Malaysia 8.5

4. Market Outlook For The Coming Weeka. State Of US Economic & Monetary Policy Trendb. State Of The Forex Marketc. Economic Outlookd. Monetary Policye. Investment Theme For 2012f. Watch List In 2012g. Watch List In The Coming Week(s)h. Corporate Watch List In Coming Week(s)i. Stock Market Leading Performance Indicatorj. Investment Strategyk. Sectors/Theme To Focus Onl. The Risksm. Black Swan Events (Unpredictable) Or Risks/Surprisesn. Weekly Commentarieso. Technical Viewpoint

5. Stock(s) To Speculate:- a.“Radical Development” –MK Land, Brahims, Gunung, FajarBaru, Time Eng,

BIMB/Takaful, Airasia/MAS, Xian Leng, Wijaya, BJtoto, Hai-O, Deleum, Perak Corp/Integrax/MajuPerak/Gunung, Dnonce, MISC/Armada/Ramunia (N Malay Basin), Litrak, HSL, MNRB/Bonia/ASiaFile, Mithril, Extol, OpenSys,

Genting Plantations, Coastal, Axiata/SingTel, Axiata/Telecom, MNC, XDL, BHIC/BStead, Bina Goodyear, Mercury, IPMuda, Ramunia (MEX), KNM, E&O/Malton, Tomei/Poh Kong, Scomi Group, HSL/SCB/PMetal/SEB/Bintulu/KKB/CMSB (SCORE), Jetson/UEM Land/MRCB (BBCCl), Manulife/P&O/Takaful/MNRB (M&As), Muda, Coastal/Dayang/A Maritim (M&As), Frontken, KFima/Fima Corp, TAGB, SRidge, Turiya, ASB, TWS/TWC/TWP, Sunway Group (J D GC), P Niaga/WWE/TRIPLC, Daya, Equine, Melewar, Fututech/E&O, Spritzer, CCM/CCM Duo, BJCorp/Cosway Corp, Gefung, Heveaboard, PI Corp, UMZA, AHB, Star, WellCall, Bernas/Tradewinds, Opcom, Kamdar, Tecnic/SKP, Inc Kenneth, JAKS/IJM, Tamadam, Mah Sing/YNHP/Glomac/CHHB (M&As), ARK, Daya Materials, Kluang/Kuchai/SBagan, Taliworks, Leong Hup, BKawan, Ltd, Bertam Alliance/Brem, GPharos, EIG, ETI Tech, YHS/Mamee/MFM, Baneng

b. “Incremental Development” – Faber, TM/Astro/Axiata//KUB/Maxis/Redtone/YTL Corp (DTTB), Axiata, Tenaga/YTL Power, Dayang, F&N, Perisai, SKPetro, MRCB, MPHB, Apex Equity, Lion Group, Puncak Niaga, YTL Corp/YTL Power, Sime Darby, Ingress, AT, GKent, Axiata, DRBHicom/Proton, Redtone/Maxis, CIMB, Mudajaya, Tenaga, Maybulk/MISC, Digistar, BioOsmo, Muhibbah, Maxis, MHB (MHE), MBSB, Nicorp/Harvest, AFG, Genting SP, GPacket, SYF, Tricubes, Perdana Petroleum, BIMB, MMC Corp/KTM, Genting Group/Echo, MKH, Gadang, Ho Hup, Maybank/BII, E&O/Sime Darby, Prestariang, Affin, MEGB, Kurasia, Ramunia, KLCCP/KLCCP REIT, MBF, WCT, Petra Energy/Wah Seong, SILK, Sendai, PetGas, POS, Airasia, Mulpha, P&O, KPS, AZRB, Salcon, Tenaga, Luster, Kenanga, Kelington, KUB, MAXIS/Astro, OSK, Yinson, Genting Mal, Maybulk, Silver Bird/FGVH, Takaful, MISC/NCB, Sime Darby/SP Setia, Genting Bhd, Wilmar/PBB, IGB/KrisAssets, JCY/Eng/Dufu, OHB, Unisem, YTL Power/MMC, HWGB, TimeDotCom, Tenaga/IPPs, Silver Bird, Permaju, KimLun, Oriental, AMMB, MBM Res, BRDB, Leader/Scable, Kulim/QSR, MAS, DBhd, Tanco, mTouche, CIMB/Maybank, LBS, HELP, TGOFFs, FajaBaru, MMC Corp, Perstariang, CyPark, RHB Cap/CIMB, Armada, UMW, IOI Corp, Sunway, Envair, MAA, YTL Comms/YTL Power, RHB Cap, JCorp/QSR/KFC, SILK/TGOFFs, Ingens, SEGI, Voir, OldTown, Temasek Form, Supercomnex, RGB, ENG, CIH/YTL Power/MMC Corp/Sime Darby/Genting Bhd/TNB (CCGT), Ann Joo, Hibiscus, Focus, AsiaEP, Genting Miami (RWM), Genting NY (RWNY), PetOne, Sumatec, Hup Seng/Apollo/KWFood, Bonia/Padini, IJM /KEuro, TSM Global, TRC, Eng, MSC, Top Glove, RHB Cap/MBSB, Naim, Maybank/RHB Cap, Compugates, DataPrep, Notion, YTL/GPacket, Tebrau, P Niaga, Kian Joo, Masteel/KUB, TMS/Theta, Faber/Time/TimeCom/CIMA/Bank Muamalat (GLCs), Xingquan, DBE/CIH, TDM, BJGroup/MOL, Carotech/Hovid, Axiata/Maxis, DKSH, Maxbiz, KPJ, KYM//MajuPerak/Muhibbah/Gadang/Sunway (Perak Infra Dev), Lingui/Glenealy, MSM, BoxPak/Kian Joo, Kian Joo/Can-One, BJLand, Takaso, Maybank/BII, Gamuda-MMC/Gadang/IJM (RTS), KPS/KHSB, Gamuda, Xidelang, Seacera, Bina Puri, CIH, Gamuda/MMC (Railway), UEM Land, NCB, Utopia, Flonic, BStead/ExxonMobil, Lion Ind, Lion Corp, SCABLE, SAAG, ExconMobil, Biosis, KPJ/TMC Life, Malton/Pavilion

REIT, Sanachi, Perwaja, DIGI, UEM Group/YTL (KL-SG HSRL), MyEG, Konsortium, GPRO, London Bis/Khee San, KNM/Zecon, CHHB/MPCorp/MK Land/Nilai Res/Mulpha Land/LienHoe/Paramount (Privatization), Hap Seng, Gamuda/MMC (MRT), Bernas, Jerneh, Affin/AMMB, Bonia/Asia File/Formosa (PNB), Top Glove, Latexx, Parkson, Zeland, Telekom, Olympia, Glomac, Mah Sing, IJM Land, Esso, CHHB, Denko, PMI/MUIB, MAHB, Catcha, Padini/Bonia/Voir, PetDag/Shell (LPG), Genting HK, Unico, UOA Dev, Landmarks, Kencana, AMedia, Shangri-La, KBunai/PTG, IOI Corp, ULI, BJCorp, JobStreet, Guoco, Bank Mualamat/BIMB, PChem, MNRB, Benalec, YNHP, KPS/KHSB/P Niaga/JAKS, Airasia X, Apollo, GKent/Malton (G-JB R J), PIE/Foxconn, BJFood, DBE/QL/QSR, FCW/GBH, MPC, TMC Life, RCE Capital, Adventa, UEM Land/Tebrau/Mulpha, KYM/ Edaran

6. Corporate Development – Cybert, Inari, MMC Corp/PAAB, DIGI, FajarBaru, TAS Offshore, Nextnation, CYL, Ho Hup, Parkson, BRDB

7. Value Play < -- > Betting On The “Next Phase Of Growth” Companies: FGVH, YTL Corp, DRBHicom/Proton/Lotus, Mudajaya, Muhibbah, SPK Sentosa, IHH, TH Plantations, MSM, OldTown, Axis REIT, Scomi Group, Sunway, UOA Dev, Integrax, Bernas, Maxis, SKPetro, Wah Seong/Petra Energy, CBIP, SSteel, Perwaja, Zhulian, MCIL, Kian Joo, Crescendo, Oriental, Supermax, KEuro/IJM, Maybulk/MISC, Daibochi, DRBHicom, SP Setia, MPHB, Genting Malaysia, Coastal Contracts, Genting Bhd, AMMB, Gadang, HL Bank, DRBHicom/PJBumi, JTiasa, E&O, TDM, Benalec/Muhibbah, Hibiscus, KLK, DBhd, Can-One/Kian Joo, MMC Corp, UMW, Crest Builder, Tebrau, WCT, TimeDotCom/TDC, Malton/Ho Hup, Hektar REIT, SP Setia/Sime Darby, Tiong Nam, FajarBaru, Fitters, NTPM, OSK, MAS, PetDag, PFCE, Gas Malaysia, POS, Dialog, Top Glove, Paramount, IGB/IGB REIT/Krisassets, CenSof, Puncak Niaga, TSH, MaSteel, MHB (MHE), Glomac, Perisai, Deleum, Tradewinds, Mah Sing, Parkson, NHF, DIGI, Tenaga, GPacket, BJtoto, Ivory, Kossan, Prestariang, MBMR, Nestle, MAS, KUB, Grand-Flo, Ireka, MAS, MAHB, Yinson, KPS, Axiata, UEM Land, Sarawak Cable (SCB), BJFood, StarHill REIT, KPJ, Protasco, DIGI, Genetec, Takaful, YSPSAH, WellCall, KimLun, JCorp, MSC, IJM Land, BJtoto, BJLand, PetDag, RHB Cap, HELP, Choo Bee, BStead/Wah Seong, GAB, Kim Lun, Dayang, Gtronic, HSL, I-Bhd, Brahims, MFCB, Maybank/CIMB, CIMB, Maybank, Perwaja/Hiap Teck, Sendai, IOI Corp, Armada, Hap Seng, Petra Energy, KHSB, Salcon, Handal, RHB Cap/OSK, SYF, KNM, Unico-Desa, TRC, CHHB, MMC Corp/Malakoff, Barhims, Maybulk, Telekom, MEGB, Airasia, Tien Wah, GUH, Success, &N, MFM, AIR, Johore Tin, TSH/Octagon, Tenaga, Scomi Eng, MAS/Ariasia, YTL Power/YTL Comm, BJCorp/Atlan, Scomi Marine, Century Log, PJB, Wilmar/3A, Tenaga, AEON, Daya Mat, Naim Holdings, Panasonic, Kelington, Grand Flo, TAS Offshore, Genting Plantations, Sarawak Oil, MISC, MRCB, MKH, Tambun Indah, IREKA, Uzma, MISC, CyPark, Genting SP, Affin, Texchem, MMC/Gamuda, Eng Kah, Redtone, Magna Prima, Notion, EPMB, Zeland, BJCorp, TimeDotCom, Alcom, Ivory, PPB, PetChem (PChem), Tan Chong, Gpacket, MBSB, Dijaya, SKP Res, MBMR, KLCCP, WellCall, Sozo, Proton/Lotus, Tech, eBworx, IOI Corp/IOI Prop, IJM/KEURO, Genting Mal/Miama/NY, Knusford/Ekovest/Tebrau, JCY, Hartalega, Ekovest, Hua Yang, MNC, Guan Chong, Encorp, IJM/AZRB, BStead, Eng, AT System, Gamuda, Bina Puri, JAKS, Cocoaland, ECS, MKH, Mah Sing, Genting HK/Genting Mal, Tenaga/IPPs, BJCorp/Cosway, Kulim, ChinWell, TA

ANN, Pavilion REIT, MYEG, Vitrox, BIMB, Oriental, PMetal, CapitaMalls, Digistar, MMode/eBworx/M3/Boilermech, IJM Plantations, Eng Kah, Ancom, Boon Koon, Harrisons, Kossan, UM Land, CIH, Lion Corp, JCY/Dufu/Notion, KimLun, JobStreet, Scientex, AMedia, Plentitude, Harvest, BPort, QL, Wijaya, HAI-O, Eng, Bina Puri, Unimech, GKent, HL Ind, Amway, SEGI/Eduspec, SCIB, ASB, Luxchem, Catcha, JTB, CMSB, KL Kepong, Lion Corp, Kian Joo, Sealink, Raswit, MEGB/KPJPBB, RCE Cap, Ann Joo, LFIB, GBH, Kulim, Kurasia, PPB/Wilmar, Suiwah, Parkson, L&G, PetGas, Delloyd, Hiro, DataPrep, Pentamaster, Pantech, Unisem, Freight, Tambun, Perwaja/Kinsteel, Bintai Kinden, CBSA, AFPT, Uchi-Tech, SapRes, Bursa, GUH, AutoV, Nadayu, Sarawak Energy, AEON Credit, Tradewinds Plantation, Efficient, Pasdec, Leader, Ramunia, Binta Kinden, P Niaga, YTL Land, MAA, Gran-Flo, Takaful, Mutiara Goodyear, E-Solutions, KUB, BP Plastics, ILB, BREM, Konsortium, KYM, CCM, JIT, Pensonic, FFM, Latexx, KSL, Tomei, Wing Tai, Unisem/MPI, YHS, Star, Eksons, MaSteel/KUB, UAC/BStead, PacificMas, Dufu, GDEX, TAFI, PBB, SEGI, Latitude, Bina Puri/OMedia, Mulpha, Supermax, Ariasia, Myrcon, Resintech, SapRes, Taliworks, NESTLE, SelProp, Jetson, Bolton, Sino Hua-An, AP Land, Natural Bio, SIGGAS, New Hoong Fatt, NV Multi, Padini, MP Corp, Emas Kiara, VS Industry, Mamee, TSM Global, Metrod, Lipo/Kobay, BJToto/BJAssets, Citigroup, Daiman, AIG, Shangri-La, Gamuda Land, Wang Zheng, Melewar, K-Star, Genetec, BHIC, TA, HTpadu, Melati, Yee Lee/Spritzer, TMC Life, CSC Steel, Faber, OSK, KFima, Lingui, Huayang, Goodyear Dev, Favelle Favco/Muhibbah, FajaBaru, SAB, Glenealy, Orietnal Food, Scable, AsiaFile, DXN, Ban Lee, PIE, Gopeng, Fima, Leong Hup, Bonia, DataPrep, Jerneh, NCB, Vitrox, Ogawa, London Biscuits, Keck Seng, Pharmaniaga, MFCB/Jadi, TSelProp, EForce, Adventa, Kretam, UBG Bhd, Perstima, Measat, Hiro/PA, TGOFFs, Uchi, Tech, HPI, TA, TSR Capital, Peduren, AFG, GCorp, TA Global, Sapura Resources, Sindora, YNHP, Tan Chong/APM/Warisan/TCIL, United Malacca, UEM Group, KEuro, Opcom, Analabs, Johan, Unico, Ajinomoto, Astro, Luxchem, KPS/KHSB/JAKS, TA, PJD, Pintaras, PLUS, ICapital, Litrak, Symphony, EPIC, Halim, HLG, Tasek, Octagon, PMC, Cheetah, PJDev, APLand, Glenealy, Suria Capital, GoldIs, BSDREIT, HDBS, Landmarks, Asas Dunia

8. Investors Alert:- a. “Radical Development” – Scomi Group, Evergreen, Kinsteel, Silver Bird,

MNRB, Texchem, Rubberex, Uzma, Texchem, D&O, Kwantas, Eurospan, Leong Hup, Technodex, Teck Guan, Tejari, Texchem, INS Bioscience, Bio Osmo, IPMuda, Nepline, AWC, Ecofirst, Isyoda, Ingenuity, Stone Master, Minply, Pulai Spring, Haisan/KBES/Ta Win, KTB, BTM, Infortech, KBES, Liqua, Crest Builder, LPF, Pasdec, Pentamaster, APP, CNLT, MESB, Rex, Ta Win, Thong Guan, Patimas, Watta, Cepco, YGL Convergence Bhd, Reliance Pacific Bhd, Cymao Holdings Bhd, Bintai Kinden, YHS, The Store, Takaso, SYF, Prime Utilities, eBowrx, Global Soft, Global Carriers, ASCap

b. “Incremental Development” – Ho Hup, Sumatec, Silver Bird, Luster, Trinity, Key West, AsiaEP, Naim Holdings, HSL, Xian Leng, Alam Maritim, Kinsteel/Perwaja, Olympia, Hubline, Maxbiz, Tricubes, Samudra, Tracoma, Formis, Mithril, Formis, Linear, KBB, RGB, Baswell, Maxtral, Ranhill, TGOFFs, SAAG, Ibraco, Seacera, Haisan, Ayer Molek, Nam Fatt, WideTech, Swee Joo, Transmile, Eden, Zeland, Ranhill, Linear, HSL, Ranhill, Mobif, Guan Chong, MMM, Stamford, AHB, Seacera, SKW, Zecon, Hovid/Carotech,

Ibraco, GPOean, PWorth, ,Limahsoon, LCL, LBS, AKN Tech, PUC, Satang, KTSB, Baneng, Stamford College, AWC, Zeland, ChangHuat, NamFatt, MEMS, Goodway Integrated, ARK, Seloga, OilCorp, JPK, Kenmark, GPlus, Kannaltec, Menang, Techfast, OilCorp, Idaman, Olympia, Silver Bird, Dis Tech, WWE, Abric, MVest, HeveaBoard, Mieco, Hytex, Ftronics, Comintel, Ngiu Kee, PJI, GPerak, Haisan, Minetech, TMC Life, Mechmar, AXIS, LFE, Seal, Astral Supreme, Compugates, Golden Land, Austral, Harvest, Idaman, NWP, IRIS, Rhythm, Litespeed, Viztel, MLabs, SCB, Lien Hoe/Perduren, Mtouche, Scope, Englotechs, The Store, Focus Dynamics, Gunung, SilverBird, HLS, Minply, Evermaster, HLS, Poly, EPMB, Tamadam, Flonic, Frontken, CCM/CCMD, Pilecon, OCI, Dolmite, Transocean, KBunai, Denko, Silver Ridge, Nikko, JPK, PECD/BSA, Ekran, Equine, Englotechs, Inch Kenneth, PECD, Merge Housing, Seloga, GPlus/Pilecon, Gold Bridge, WWC, Satang, MKLand, Scan, PJ Bumi, Gefung, UDS capital, Nagamas, Texchem, APLI/Liqua, Techventure, Titan, BSA, Permaju, Kosmo, TGL, PMI, DK Leather, Autoair, MTD ACPI, Putera Capital, SBC, Wimems, FBO, IE, Welli, Fotronics, JPK, Sitt Tatt, Kimble, Fountain, KSTB, Kimble, Foutain View, Box Pak, CNLT, KBES, Airocom, UM Land, Amsteel/ACB, Lien Hoe, Nasioncom, FTEC, H-Displays, Megan Media, Multicode, KZEN, NEXTNation, Syarikat Kayu Wangi, Tenggara Oil, MEXTER, AsiaEp, Setegap, MPTech, KLIG, Chin Foh, Dceil, HWGB, Global Carriers, SBC, Foremost, PMI/MUIB, Lion Diversified/Lion Corp/Megasteel, Halifax, SMPC, Mangium, Ekran/Wembly

9. Financial Results – 10. IPOs – Gabungan AQRS Bhd, Airasia X, MMC Corp/Malakof, MOL, Astro,

Pestech, EITA, Sentoria Group, Hiap Huat, RapidCloud, U Mobile, Federal Point, Kan Sam, Bunseng, Wasco Energy/Wah Seong, WRP, ABM Fujiya

Thematic Play

The New Economic Model (ETP) 1.6

Prime Minister Datuk Seri Najib Razak announced eight new initiatives and two recapped initiatives under the Economic Transformation Programme (ETP) in early Sept 2011.

The latest initiatives entail an additional investment of RM1.43 billion that could produce an estimated RM8.4 billion in gross national income (GNI) while creating 9,965 new jobs. The latest initiatives have increased the cumulative planned investments under the ETP to RM171.21 billion, with an estimated GNI contribution of RM228.55 billion and 372,361 new jobs.

84% of the 87 initiatives announced under the ETP are being implemented.

The new ETP initiatives include Kuala Lumpur Kepong Bhd (KLK) investing RM706 million in developing its downstream operations in the palm oil industry. The GNI impact of the KLK project, which falls under the palm oil and rubber NKEA (national key economic area) is estimated at RM1.15 billion by 2020.

Under the communications content and infrastructure NKEA, Medic Channel (M) Sdn Bhd and Vasseti Datatech Bhd would invest RM400 million to deploy 1,410 units of 42-inch TV sets in 168 locations nationwide to provide coverage for the MedikTV Channel. The project will have a GNI impact of RM470 million by 2020. Jobs creation would be 650 by 2020.

Under the business service NKEA, Strand Aerospace Malaysia Sdn Bhd (SAM) will spearhead the development and positioning of Malaysia as a hub for high-value engineering services. The investment will total RM177 million by 2020 with the GNI impact estimated at RM3.5 billion by 2020.

In the agriculture NKEA, the Northern Corridor Implementation Authority (NCIA) and Hannan Corp Sdn Bhd will invest RM72.6 million to set up two aquaculture complexes in addition to spending on human resource development. Within the same NKEA, Nova Laboratories Sdn Bhd, a health and wellness company providing herbal and nutritional products, will also invest RM16.29 million.

Under the wholesale and retail NKEA, Doorstep Retails Sdn Bhd will invest RM35 million and Koperasi Jiwa Malaysia Bhd RM15 million to set up virtual malls.

Under the electronics and electrical NKEA, meanwhile, Hong Leong manufacturing Group (HLMG) which has acquired a strategic investment in LED manufacturer DSEM Holdings Sdn Bhd will transform DSEM from a contract manufacturer into a product company to market its own brand.

On the two recapped initiatives — the InvestKL programme that is to attract large foreign multinational companies to relocate to Greater KL and the clinical research Malaysia programme in which the government will invest RM5.7 million to facilitate clinical trial standards.

The MRT System 2.3

Mass Rapid Transit Corp Sdn Bhd (MRT Corp) is expected to call for tenders for 18 elevated civil, station and depot work packages worth around RM15 billion for the Klang Valley Mass Rapid Transit (KVMRT) Sungai Buloh-Kajang line in the first half of 2012.

The value is for the first phase of the project involving some 20 kilometres between Maluri and Kajang.

Some 28 companies have been pre-qualified to bid for the jobs.They include Sunway, IJM Corp Bhd, Malaysian Resources Corp Bhd, Gadang Holdings Bhd, Muhibbah Engineering Bhd, Mudajaya Corp Bhd, MTD, Loh & Loh Corp Bhd, Fajarbaru Builder Group Bhd, WCT Bhd, TRS, Ahmad Zaki Resources Bhd, Naim Engineering Sdn Bhd and Pembinaan Mitrajaya Sdn Bhd.

Of the 18 packages, there are eight packages each for elevated civil and station works, and two packages for depot. These packages are divided into two categories – the open category and the Bumiputera category.

The source said tenders for phase two of the KVMRT project will be called in the second half of 2012, also valued at about RM15 billion.

MRT Corp is expected to raise bonds soon for the award of some jobs. MRT Corp, set up under the Ministry of Finance, is the MRT project owner and MMCGamuda KVMRT (PDP) Sdn Bhd is the project delivery partner (PDP).

The MRT, which is expected to cost about RM50 billion, is a proposed electrified passenger rail line running from Sungai Buloh to Kajang that will consist of high capacity trains running on a dedicated electrified track.

The line will start from Sungai Buloh cutting through the Kuala Lumpur city centre to Kajang in a distance of 51km, comprising a 9.5km underground tunnel between Jalan Semantan to Maluri.

The KVMRT Sungai Buloh-Kajang line is set to be completed by July 2017.

In late 2011 that there are five contenders for the underground tunnelling works worth an estimated RM9 billion to RM12 billion. They are Gamuda-MMC Corp, Gadang-Hyundai, China’s Sinohydro Group, China Railway Corp and Japan’s Taisei Corp.

Sources said that MRT Corp is likely to spend around RM10 billion for system works and rolling stocks.

Malaysia Nonfinancial Industry Development

The Palm Oil/Biodiesel Industry 19.6

Expectations that palm oil price is on the cusp of a three-year upcycle from July 2012.

The Southern Oscillation Index's (SOI's) plunge (July 2012) suggests that the El Nino weather phenomenon is imminent and may hurt palm oil production. This could be the initial catalyst for the commodity's price rally.

In the longer term, the potential peaking of Indonesia's production will sustain the price uptrend.

The SOI has entered into El Nino territory with a reading of minus 11.8. Both Australia's Bureau of Meteorology and the US' Climate Prediction Center have highlighted the increasing risk of an El Nino in 2012.

Consensus among weather forecasters is for El Nino to materialise sometime between July and September 2012. With the SOI already at -11.8, it is a matter of time before the weather authorities declare an El Nino.

The last severe drought that hit this region was in the second half of 2006 in Indonesia six years ago, and a milder one in East Malaysia in the first quarter of 2010. Both episodes were relatively isolated geographically.

However, more importantly is the fact that the last severe drought to hit the region was from 1997 to 1998, which was 14 years ago. Hence, fear that the upcoming El Nino will not be a mild one.

Malaysia's palm oil production for the first five months of 2012 fell 7.3% due to adverse weather while May 2012 production alone sank 20.6% year-on-year. Any deterioration in weather will aggravate the already poor production, and in turn support an uptrend in palm oil price.

North America's soybean planting is not doing well due to the hot and dry weather. While an El Nino usually brings on dry weather in South-East Asia but plenty of rain to North and South America, this is not happening this season.

Malaysia's already weak production may be aggravated by the onset of El Nino. Fear that this upcoming El Nino could be a severe one given that the last region-wide El Nino occurred from 1997 to 1998.

There is room for a further upward revision as the sector re-rates, bearing in mind that the sector used to trade in excess of 20 times PE.

The Oil & Gas Industry 11.0

Petronas capex will continue to spearhead growth and excite the sector in 2012. Oil and gas activities are expected to pick up, continuing from 2011. Two themes

featuring prominently in 2012: gas play and a continued strong pipeline of projects awards.

The beneficiaries are: Kencana, SapCrest, Dialog.

The commercialization of the Lekas regastification project in July 2012 will lift domestic supply by 22% and address the constraints currently (Jan 2012) affecting the power and industrial sectors.

As supply increased, the gas subsidy will be progressively cut. The selling price of gas will periodically raised over the next four years from July 2012 to 2016 to match the market rate to avoid short term demand disruption. Higher as prices will further incentise Petronas to explore gas fields in Malaysia as exploration costs rise.

With a strong capex plan head (2012 & Beyond), expect O&G service providers to continue enjoying a sustained growth as demand for equipment and services increases in light of rising activities in the sector.

The major fabrication jobs that will be up for grabs in 2012 are the (1) rm1 billion to rm2 billion Malikai TLP (2) Petronas Carigali’s three major central processing platform projects worth rm3 billion to rm4 billion in total (3) Shell’s for four midsize fabrication jobs (4) a 40000 tonne platform for Carigali Hess Operating Co’s Cakerawala field.

Several floating production, storage and offloading porjects are expected to come onstream in 2012. With the rm15 billion North Mala basin field fast tracked for production by 2013, pipe coating works will be made known too. In addition, several new marginal fields risk service contracts will be unveiled in 2012.

The fabricators are MHB.Floaters and Pipe coatings: Armada, Wah SeongLiberalization of Gas: Petronas GasMarginal field RSC/EOR projects: Armada, Dialog, SapCrest

**********************Development of marginal oil fields and enhanced oil recovery (EOR) as well as mergers and acquisitions should take centre stage in the Malaysian oil and gas industry in 2012.

Over the past 12 months (FY2011), Petronas has been busy boosting oil and gas production, not only to catch up with the previous year's higher production but also to do this more efficiently.

The national oil corporation's total oil and gas production has dropped to 2.1 million barrels of oil equivalent per day (boe/day) in the financial year 2011 from 2.3 million boe/day in the financial year 2010.

Hence, Petronas together with its production sharing contract (PSC) parties have been progressively pouring capital expenditure (capex) into the development of marginal oil and gas fields or EOR projects.

Both types of projects are expected to help Petronas meets its higher oil and gas output objective in the shortest possible time and also at a lower production cost vis-a-vis the greenfields or more sophisticated fields.

Expects more marginal oil fields to be awarded to potential oil and gas industry players in 2012.

In 2011, Petronas awarded two clusters of marginal oil and gas fields, including the Berantai clusters to a consortium comprising Kencana Petroleum, SapuraCrest Petroleum and UK's Petrofac. The other one, the Balai cluster, was given to a consortium comprising Australia-listed ROC Oil, Dialog Group and Petronas Carigali.

Going forward, there are numerous new development opportunities since Petronas intends to develop about 25 per cent of the 100 remaining marginal oil and gas fields identified.

The beneficiaries maybe, once again, Kencana, SapuraCrest and Dialog as these companies have the edge in terms of familiarity and experience, relative to their peers. Also industry observers do not discount other interested companies, which include Petra Energy Bhd and Perisai Petroleum.

Apart from marginal oil fields, the focus on EOR will also continue in 2012 because the additional capex needed to extract the remaining oil and gas is far less than required by a greenfield.

Recently, Petronas and Shell signed a heads of agreement for two 30-year PSCs involving EOR projects offshore Sarawak and Sabah. As such, expect Shell to dish out some EOR projects in 2012.

Industry observers also anticipates a consolidation among the vessel players and brownfield services providers.

Meanwhile Malaysia's oil and gas (O&G) sector is set for exciting days ahead (Jan 2012 & Beyond) as national oil company Petroliam Nasional Bhd (Petronas) prepares to dish out more contracts in 2012 and commence mega projects.

Expect Malaysia's O&G upcycle to start in 2012 with Petronas going full throttle to sustain oil production. Petronas' record RM300bil five-year capital expenditure will be a strong re-rating catalyst for Malaysian O&G players.

Critical gas shortage in the country has also prompted Petronas to fast-track upstream activities, which will benefit local players.

With a further 22 marginal oilfields identified for development, more risk service contracts could be expected by mid-2012, given that bidders are to submit proposals by the first quarter 2012.

Petronas had in 2011 announced a spate of major investments such as the RM5bil development of marginal oilfields, RM46bil for enhanced oil recovery, RM15bil for

the North Malay Basin Project and the RM60bil Refinery and Petrochemical Integrated Development (Rapid).

Asia Petroleum Hub (AHB) …

In June 2007, AHB Sdn Bhd announced that it had obtained the federal government’s consent to develop a 100 acre reclaimed island near Tanjung Pelepas into one of the region’s top oil terminals.

It is estimated to cost rm1.4 billion, would have an oil storage capacity of one million cu m and an integrated facility with multiple jetties capable of handling all vessel sizes.

It was a grand plan endorsed by the federal and state governments and CIMB Bank provided a bridging loan facility to kickstart the project.

If things had gone according to plan, the AHP would have been in operation for a year now (Nov 2011). The hard reality is that only 60% of the project has been completed because it has been fraught with problems, including.

Tanjung Piai …

Benalec Holdings Bhd was granted the right to reclaim 3485 acres of land near Tanjung piai, Johor. Benalec aims to turn the massive reclaimed area into an industrial park that will serve as an oil and gas terminal.The project is perceived to be supported by the Johor royal family.

Pengerang Independent Terminal …

Dialog was given the mandate and exclusivity for 60 years by the Johor state government for developing an independent deepwater petroleum terminal at Pengerang in Johor.

The project is one of the entry point projects under Malaysia’s ETP.

The company has started work on the project and has completed 5% of the construction works for Phase 1.

The IDPT is expected to have an oil storage capacity of five million cu m plus a deepwater jetty capable of handling all vessel sizes.

Phase is scheduled for completion in 2014 and storage capacity of 1.3 million cu m on 150 acres of reclaimed land.

Pengerang Independent Terminal Sdn Bhd was formed to undertake the rm5 billion mega project. The two stakeholders of PIT are Pengerang Terminals Sdn Bhd with 90% and the Johor government with the rest.

Dialog owns 51% equity interest in Pengerang Terminal while the remaining 49% os held by Vopak.

RAPID …

Petronas’s US$20 billion refinery and petrochemical RAPID project is seen as a catalyst for turning Pengerang into a major petroleum hub.

Besides the petrochemical complex, a regassification terminal is also being planned.

Nonetheless, a feasibility study on Petronas’ RAPID project will only be completed at the end of 2012. Hence, things will only start happen in 2013 or later.

SOGT …

It is a mega project that will account for 40% of oil per day and 1.25 billion cubic feet of gas, of Malaysia’s oil production.

The new terminal will complement the operations of the existing Sabah Gas Terminal, the Labuan Crude Oil Terminal and the Labuan Crude Oil Terminal, which will continue to handle the O&G produced form other fields offshore Sabah.

Liberalization of The Oil Industry …

Petronas is taking a bold step to change the landscape of the domestic oil and gas industry. It is learnt that Petronas has decided to do away with the licenses awarded only to local oil and gas forms in certain job categories.

As a result, existing Petronas licensed oil and gas firms, such as equipment fabricators and vessel operators, will have to fight for contracts with foreign rivals as well as unlicensed local players.

The entity unlicensed players into the fray is likely to trigger more consolidation among local oil and gas companies in order to innovate and to gain size and financial strength for survival.

The move by Petronas is aimed at further liberalizing the domestic oil and gas sector to attract more foreign investment and promote Malaysia as a regional oil and gas hub.

With a level playing field in the oil and gas sector, in which the bulk of activities is driven by Petronas, foreign as well as local companies that have the required technology and expertise stand a good chance of winning contracts from Petronas itself.

However, the latest liberalization will not take place across the board. It is believed that it does apply to the bumiputera vendor programme.

In certain segments of the industry, Petronas only grants contracts to local oil and gas firms with licenses. For example, there are licensed oil and gas equipment fabricators in Malaysia and licensed offshore support vessel operators.

The licensed fabricators are MHB, Kencana, Ramunia, Sime Engineering.

By reforming the licensing system, foreign companies can directly bid for Petronas’ jobs and be the main contractors.

The revamp should be good news for foreign companies as well as local firms that currently do not qualify for Petronas contractors.

The existing Petronas licensed players will see more parties fighting for a share of the pie that was previously exclusive to them.

To survive, the smaller firms may have to merge.

Petronas’s rm250 billion capex …

Amid rising crude oil price, Petroliam Nasional Bhd’s (Petronas) plans to spend RM250 billion in capital expenditure (capex) over the next five years (2011-2016) has given the oil & gas (O&G) sector another boost and may springboard certain companies back to profitability.

The RM250 billion would be used in exploration activities as well as the replacement of ageing refinery assets and petrochemical plants in an effort to sustain its current level of production.

Commenting on the RM250 billion capex, Citi Investment Research & Analysis said the projected annual capex of RM50 billion over the next five years was huge and would be positive for fabricators.

Although the national oil company did not offer a split between domestic and overseas spending, by comparison the total RM250 billion capex plan is 49% above the RM168 billion spent in the last five years.

The capex, with a focus on “replacing ageing assets”, was likely for onshore and offshore facilities in the east coast of Peninsular Malaysia and in Sarawak. Prime beneficiaries could be Malaysian fabricators like Malaysia Marine and Heavy Engineering Holdings Bhd (MHB), Kencana Petroleum Bhd and Muhibbah Engineering (M) Bhd.

Equipment makers like KNM Group Bhd and companies located in Sarawak i.e. KKB Engineering Bhd could also benefit.

Petronas has already committed to a capex of RM40 billion for FY11 ending March 31 and RM250 billion over the next five years with heightened focus on the domestic exploration and production.

The sector was one of the national key economic areas (NKEA), the key themes to watch out for in the near term were companies taking a stake in upcoming marginal oilfield awards, and increased M&As as companies consolidated to gear up for the upcycle in the sector.

Other O&G stocks include Dialog and PChem.

The 12 ETP O&G projects are expected to contribute a staggering RM64 billion worth of gross national income in 2020. Marginal fields and risk-sharing contracts (RSC) give local service providers a shot at becoming developers and producers, but are the big test for the sector. The development of a regional storage and trading hub provides opportunities for downstream players. The ETP development plans keep the prospects bright and will lead to sustainable earnings for the players.

It is full speed ahead at Berantai as the contractors are racing to produce first gas by year-end (2011). All eyes are on Berantai and the three-way consortium because the field is expected to set the benchmark for future RSCs, a new upstream licensing system introduced by Petroliam Nasional Bhd (Petronas). The RSC framework actually offers much greater incentive than the standard terms of a production-sharing contract (PSC).

Construction of the seven-year, RM5 billion Pengerang terminal in Johor has started. South Johor could have a total terminal capacity of 10 million cu m within the next seven years and could develop into a large petroleum, petrochemical and liquefied natural gas trading hub. Though not part of the ETP, the US$20 billion (RM60 billion) refinery and petrochemical integrated development (Rapid) project adds to the excitement in south Johor.

Meanwhile the new RM1 billion O&G hub in Labuan would led to speculation about potential spillovers for selected listed companies including contractors like Muhibbah Engineering and O&G contractors.

However, Dialog and Kencana had confirmed that they are not bidding for the construction portion of the project. The project is not a Petronas initiative and involves a little-known, privately-held company RG Gas and Chemicals. Furthermore, Dialog and Kencana were focusing on their high-priority jobs in Pengerang and Berantai, respectively, which will commence in 2011.

RG Gas and Chemicals is set to invest RM1 billionn over three years to build an integrated O&G hub in Pulau Daat, Labuan which will provide land-based logistics and support services such as fabrication yards and tank farms.

This is a positive development for the sector in terms of newsflow. Other projects under the ETP that have been awarded include the RM5bn Pengerang tank terminal project for which Dialog is the contractor and developer, and the US$800m Berantai marginal field development involving UK-based Petrofac (50%), SapuraCrest (25%) and Kencana (25%).The findings of new oil and gas fields by Petroliam Nasional Bhd (Petronas) offshore Sarawak are expected to boost the country's reserves.

Petronas' total average production for oil and gas has been declining for the past two years to 1.63 million barrels of oil equivalent (BOE) per day in the financial year ended March 31, 2010 (FY10) from 1.67 million BOE per day in FY08. The 1.63 million BOE per day comprised 535,000 BOE of crude oil, 974,000 BOE of natural gas and the rest condensates. Malaysia had 85 trillion cu ft of gas reserves with oil reserves at 5.8 billion barrels in FY10, the new discoveries accounted for 3% of the country's natural gas reserves and 2% of its oil reserves. Petronas announced that it

had found new major discoveries from two wells that had the potential of producing both oil and gas.

The NC3 wildcat well and its subsequent appraisal well in block SK316 have an estimated 2.6 trillion standard cu ft (tscf) of net gas in place; while the Spaoh-1 in block SK306, that was drilled in December 2010, has showed similar potential where preliminary evaluation has indicated about 100 million barrels of oil and 0.2 tscf of gas.

Additionally, the completion of the Gumusut-Kakap floating production storage semi-submersible unit, Kebabangan offshore structures, Malikai tension leg platform and marginal field projects will also support stronger growth for Petronas in FY11.

Late Jan 2011, Petronas announced that it would award the Sepat and Berantai marginal oil field contracts soon, and planned to award two more marginal field cluster contracts by April 2011.

Malaysia currently has 106 marginal oil fields containing 580 million barrels of oil and Petronas planned to develop 25% of the total marginal oil fields to replenish its oil reserves and generate new revenue streams. A marginal oil field is defined as one that can produce 30 million barrels of oil equivalent or less.

Petronas' capital expenditure (capex) is expected to reach RM40bil in FY11, after falling by 16% year-on-year to RM37bil in FY10.

Several other oil and gas projects are also expected to hit the system in the next 18 months (2011- 2012). These include the development of marginal oilfields, which would involve at least US$800 million per cluster, the provision of topside maintenance contracts amounting to rm15 billion; hook up and commissioning jobs amounting to rm2 billion.

Meanwhile, Dialog Bhd is forking out rm5 billion for the establishment of an independent deepwater petroleum terminal in Johor. The money will start flowing in the next few months (Feb 2011 & Beyond) and go on into 2012.

In late Jan 2011, Petronas Gas announced a rm1.1 billion job for the contraction of a LNG regastification unit in Mekaka. The project will commence in April 2011 and is expected to be completed in July 2012, which the money will start coming into the system in the next few months (Feb 2011 & Beyond).

The biggest amount committed so far is the rm10 billion by ExxonMobil for a slew of activities ranging from rejuvenating mature facilities to undertaking enhanced oil recovery activity in the Tapis filed located in Terengganu. The investment is also for an offshore gas project and will start by 2013 the earliest.

The O&G Companies’ Prospects …

Investors and oil and gas (O&G) companies alike are looking past the sector’s dismal fourth quarter (4Q) 2010 results, and are optimistic of much brighter prospects ahead as the sector benefits from a slew of billion-ringgit contracts and positive newsflow.  

Crude oil prices are trading near three-year highs (March 2011), but there was a major divergence with the financial performance of O&G stocks in the latest quarter (4Q2010).

Many companies, including Tanjung Offshore Bhd, Petra Perdana Bhd and Alam Maritim Bhd, posted losses for 4Q10. Most of these losses were due to one-off items or low charter and utilisation rates for marine vessels due to an overcapacity of ships.

However, industry observers do not expect these losses to recur, and are bullish on the sector’s outlook given expectations of a pick-up in projects and initiatives under the Economic Transformation Programme (ETP).

Indeed, the positive outlook is spurring further gains for O&G stocks, which had taken a breather for much of 2011 (Till Feb 2011) after a rally in 2010 following the ETP’s unveiling.

The most recent re-rating catalysts include crude oil’s rally to over US$100 (RM304) per barrel and Petroliam Nasional Bhd’s (Petronas) announcement to spend RM250 billion in capital expenditure (capex) over the next five years (2011-2015).

With the slew of O&G projects initiated by the ETP that has been unveiled or still in the pipeline, the outlook for the sector is anticipated to be bright as O&G players be it downstream, upstream or service providers are likely to be part of the growth and opportunities coming from the projects.

In January 2011, Prime Minister Datuk Seri Najib Razak indicated that more than RM20 billion would be invested in the oil, gas and energy National Key Economic Areas (NKEA) via four entry-point projects (EPPs) and developments. He announced that ExxonMobil Exploration and Production Malaysia Inc, in conjunction with its production-sharing contract partner, Petronas Carigali Sdn Bhd, would invest RM10 billion in new oil and gas assets to help ensure reliable and sustainable energy supplied in the country. The premier also said Shell Malaysia would invest RM5.1 billion in multiple projects to upgrade or build facilities in upstream, midstream and downstream activities.

In March 2011, Najib announced that RG Gas and Chemicals Sdn Bhd was set to invest RM1 billion over three years (2011-2013) in an integrated oil and gas hub on Pulau Daat, Labuan. RG Gas and Chemicals’ plan to invest RM3 billion over the next 10 years (2011-2020) to build an integrated O&G hub on Pulau Daat.The O&G sector as key beneficiaries are expected to be in for a solid year and likely to post massive earnings in the near future in line with the billions of ringgit to be poured into the projects.

The Beneficiaries: Tanjung Offshore Bhd, Petra Perdana Bhd and Alam Maritim Bhd, Dialog Group Bhd, Kencana Petroleum Bhd and KNM Group Bhd, SapCrest, PChem, MHB

The Gas Sector …

In The 1980s – 1990s …

In the 1980s, Malaysia embarked on the Peninsular Gas Utilization project to lay a pipeline for the processing and transmission of natural gas from offshore Terengganu to other parts of the peninsula. It is the first transnational natural gas pipeline in East Asia is linked to Singapore and southern Thailand.

Natural gas was plentiful off the shores of Terengganu and Sarawak then. The government decided that the gas produced in Sarawak should be exported as the domestic market was limited whereas gas was produced off Terengganu would be consumed by the power plants, industries and households in the peninsula. Hence a transmission pipe system was essential.

The PGU project, which started in the mid 1980s when crude oil prices were at US$10 to US$20 a barrel, was also aimed at developing downstream gas and petrochemicals industries and creating jobs.

Over the last two decades, this gas backbone allowed the commodity to be exported to Singapore and Thailand and attracted many industries, including foreign investments, to set up their manufacturing bases in Malaysia.

However, the scenario is very different today (June 2011). Natural gas is no longer cheap and demand for it is growing fast. Furthermore, local production cannot cope with demand.

Also, it is no longer viable to attract foreign investment with offers of cheap fuel costs in this high fuel cost era.

From a nation that exported its natural gas, Malaysia has now (June 2011) become an importer of the commodity. Petronas is importing natural gas from the Malaysian Thailand Development Area in the north, Indonesia’s West Natuna gas field and Vietnam.

Instead of building infra for the export of natural gas, Petronas Gas Bhd is constructing a regasification terminal in Melaka to facilitate the import of gas. The imported LNG will be regasfied and transported nationwide via the PGU pipeline.

In Johor, a feasibility study is being conducted for a regasification terminal where Petronas intends to invest US$20 billion in a refinery and petrochemical integrated development complex (RAPID).Petronas’s gas importing monopoly will end when the regasification terminal in Melaka commences operations. Any party can bring in LNG and supply gas to Tenaga.

The liberalization will allow more parties to import gas and help ensure a sustainable supply. But this cannot be done if gas continues to be heavily subsidized.

Various industries including glove manufacturing, oleochemicalsand petrochemicals are complaining about gas shortages. However, it is not difficult to resolve the supply problem if manufacturers are willing to pay the international price.

In the 1990s – 2010s …

Petronas has been studying natural gas to the power sector in the peninsula since 1984 as one of the fuel sources for power generation. The other fuel sources for power generation are mainly coal, diesel, fuel oil and hydro.

Up to 1997, the gas was supplied based on formulated prices. When the government regulated gas prices in 1997 to help cushion the industry from the impact of the Asian Financial crisis, gas become a much cheaper fuel, pushing demand to new levels.

From 2000 to 2010, total consumption of natural gas increased by 33%.The cheaper prices, however, come with a heavy cost ot Petronas, which buys the gas from producers at formulated prices but sells to customers at heavily discounted prices.

To cater for the increase in demand, Malaysia’s offshore production facilities have been running at full capacity, exerting tremendous pressure on our systems. Because there is very little spare volume of gas, Petronas and the upstream operators are often requested to postpone rigid maintenance schedules so as supply is not disrupted. This coupled with ageing facilities such as Bedok C and Jerneh, sometimes results in unscheduled shutdowns, putting additional squeeze on the already tight supply situation. Because of the tight supply situation, during our maintenance periods – both scheduled and unscheduled – Petronas would curtail supply to its customers, to ensure adequate pipeline system pressure so that each customer sector receives an optimum volume of gas.

It must also be noted that production at key existing gas fields is declining fastm at between 6% and 29%. The remaining gas reserves on the other hand, are scattered in location or contain high carbon dioxide, making them technically and commercially challenging to develop. However, to help demand, Petronas is developing that Tangga Barat field although the project is not economically viable.

As indigenous production is not able to meet demand, Petronas has been purchasing piped gas from external sources. From Jan 2011-Aug 2011, 37% of Peninsula Malaysia’s gas needs were met by imports from Indonesia and from gas developed in the overlapping Malaysia-Thailand and Malaysia Vietnam areas. However, this may soon become a challenge as production at these external sources is also decreasing, which means less molecules will be available to Petronas to purchase.

The convenience of cheap gas continues to drive demand although Petronas has long held and make known its view that over dependence on gas is unsustainable.

The fire incident at Bedok C offshore platform in Dec 2010 has taken 160 mmscfd from over 2000mmscfd of gas in the Peninsular Malaysia supply system. Consequently this has significantly impacted the overall system’s reliability as it has become difficult to carry out subsequent planned maintenance without curtailing supply to customers.

Despite the burden of the subsidy, Petronas continues to implement initiatives to help enhance the security of gas supply in Malaysia. Petronas is implementing various enhanced recovery efforts to squeeze additional molecules out of existing fields and the development of small and marginal fields including Tangga Barat, Berantai and

North Malay Basin, which will come onstream in phases from the end of 2011 until 2015.

Petronas is also undertaking two separate LNG receiving terminal projects in Peninsular Malaysia – one each in Johor and Melaka – to facilitate the importation of gas into Malaysia.

The first LNG receiving terminal in Melaka will be completed in July 2012. Petronas will begin importing LNG as soon as the Melaka LNG terminal is ready for commercial operation. There is a provision allowing any third party to use this facility to import LNG from a various global sources.

Petronas is also securing additional gas supply from the Malaysia Thailand Joint Development Area in additional 215mmscfd, which will come into the system by 2015.

In the immediate term, Petronas is also undertaking several initiatives to mitigate the supply shortfall. Among the measures that it is implementing include a mobile offshore platform unit to recover the loss volume from Bedok C. Petronas is also sweating the existing producing fields in Peninsula Malaysia through gas accelerated initiatives that focus on production acceleration, gas recovery improvement and removal of bottlenecks.

Petronas also has an agreement with Vietnames partner for a short term swap deal from Malaysia Vietnam Commercial Arrangement Area.

***************************The Government raised the price of natural gas to the power sector. To recap, the Government had in late May 2011 announced a gas price hike to the power sector from RM10.70/mmbtu (million British thermal units) to RM13.70/mmbtu.

Malaysia has been keeping its gas prices suppressed way below market prices for far too long that the price we have today (June 2011) is probably relevant 15 years ago, and as a result of Malaysia’s inaction in addressing the issue, there have been very few new investments in Malaysia to develop new sources of energy.

The market price of natural gas has already risen to around RM40/mmbtu currently (June 2011), and that goes to show how severely under-priced Malaysia's gas price to the power sector is, even with the recent revision in prices.

The volume of gas made available to Malaysia has remained unchanged for the last 15 years at around 2,000 million cubic feet per day (mmcfd) even though demand has been steadily rising over the years and has exceeded the threshold at present.

People are just not putting in new investments into the sector because there is no incentive to do so; what we have at present are mainly investments made 30 years ago. In other words, we are using old infrastructure (which could break down anytime) to extract gas, and this has contributed to the inconsistency of the fuel supply in Malaysia.

Nevertheless, with a clearer direction now (June 2011) from the Government that it will progressively realign the price of natural gas to the power sector in Malaysia, oil majors will begin to look at reinvesting in the sector aggressively.

The original plan put forth by the Performance Management and Delivery Unit, or Pemandu, under the Prime Minister's Department, is for the gas price to the power sector be raised at a fixed rate of RM3/mmbtu every six months until it becomes on par with international market price by 2015. The May 2011’s policy stance on gas and tariff adjustments reflects that Malaysia is on track with the proposal.

Such development bodes well for the industry, particularly with the establishment of the liquefied natural gas (LNG) terminal in Malacca. Slated to be ready by July 2012, with a capacity of 350 mmcfd, the terminal will cater to fully imported gas, and help alleviate a potential gas supply shortage in Peninsular Malaysia.

If gas price in Malaysia was to continue at subsidised rates, the LNG terminal is going to be empty because no company would want to sell gas to us at such low rate when it can sell it at market rates, which are higher, elsewhere.

Petronas’ profit aside, lower gas subsidy will have a significant impact on Malaysia’s supply mechanism, possibly liberalizing imports.Effective June 2011, gas prices rose 28%, which is seen as a bold move to kickstart Malaysia’s subsidy rationalizing programme to address Malaysia’s ballooning budget deficit.

Malaysia’s gas subsidy bill has been rising each year. The reduction, meanwhile, augurs well for Petronas’ earnings. The cost to Petronas is mainly in the form of revenue forgone by selling the fuel substantially cheaper than the international price to domestic users. The discount to the international price is as steep as 80%.

On top of that, Petronas import gas and also buys it from its production sharing contractors at the international price and sells the commodity at a sharply discounted price to meet the rising domestic demand. About a third of Malaysia’s gas requirement is imported.

It is worth noting that gas subsidy cuts pave the way for a more sustainable supply mechanism in Malaysia.

The Construction Industry 7.1

Mass Rapid Transit Corporation Sdn Bhd (MRT Corp) is considering inviting tenders for the 31 packages of the Sungai Buloh-Kajang mass rapid transit (MRT) line in 3QFY2012.

85 contracts have been made available, 33 worth RM15.5bil have been awarded, 21 are being evaluated and 31 have yet to be called It is planning to award four packages in 3QFY2012, with the biggest tender being the RM1.6bil rolling stock deal, which will be announced soon.

All the packages will be awarded by year-end (2012).

Contractors are becoming more upbeat about job award prospects as transport infrastructure-driven projects will get the momentum going for even larger jobs from H2, 2012 onwards. This should lay the foundation for more active newsflow beyond MRT.  Likely pre-election driven newsflow. Given the overhang from Malaysia 's general election. WCT and Mudajaya are now (July 2012) the top picks as contract flows are likely to pick up, backed by better job visibility. They replace IJM Corp and Gamuda, which still stand to benefit from large-scale contracts.

The Gaming Industry 1.6

The gaming sector has conventionally offered attractive investment propositions to investors in view of its defensiveness, earnings resiliency and bright growth prospects. These appealing attributes remain largely intact for the gaming players in Asia . Liberalization will be a key term to watch.  Not merely proposing the external developments of gaming liberalization, which sanctions the setting up of new casino operations in the US , UK and Asia , the potential domestic legislative relaxation, which could permit the introduction of new game variants and even game formats for legalized numbers forecast operators. However, potential noise arising from the upcoming general election campaign may cap the share price upsides (July 2012) of gaming stocks in the near term. The re rating will only emerge after the election. It is unlikely to be adversely impacted by any potential change in the political landscape post general election. The gaming players have contributed significantly to government coffers and have helped the economy in job creation. There it is unlikely that any political party taking the helm would clamp down on legal gaming activities. 

The Power Industry (Hydroelectric,Gas/Coal,IPPs,Biomass,Nuclear) 1.1

Energy Commission chief executive officer Datuk Ahmad Fauzi Hasan said the country's electricity demand is expected to sizzle, with annual growth ranging between three and four per cent until 2020.

Despite the unplanned power interruptions the power sector is coping well and expect things to get better by September 2012.

Malaysia's gas supply has been inconsistent for the past three years (2009-2012) due to numerous factors such as unpredictable shutdowns at Petroliam Nasional Bhd (Petronas)'s offshore platforms and other gas sources. As a result, gas supply was limited and had to be distributed between the power and non-power sectors. Supply interruptions were particularly bad till June 2012. This not only affected electricity

and gas supply but also caused costs to surge. All gas-fired plants including Tenaga Nasional Bhd (TNB) were running on the more expensive oil and distillates, prompting the sharing of cost between TNB, government and Petronas.

Gas supply, however, is expected to improve once the Petronas regasification complex in Malacca comes on stream by September 2012 and planned shutdowns and regular maintenance works are carried out.

Gas-fired plants make up 53 per cent of power plants in the country, followed by coal (40 per cent) and hydro (5 per cent).

On another note, the sector is gradually moving towards relying less on gas subsidies because by 2015, the price of gas will be determined by market forces.

The Shipping/Logistics Industry 8.6

Asset values may have bottomed out and the lack of available financing could reduce the number of vessels coming on stream. It could be the start of a recovery in the tanker market.

While most agree there will be an upturn as early as 2013, the market tends to react a good six months before any recovery.

However industry observes said that the situation of overcapacity in the tanker market seems likely to persist. The IEA states that the world tanker fleet is expected to expand 9% in 2012 while forecasting oil demand growth of only 1%.

Between the end of 2000 and 2011 the global tanker fleet grew about 71%. As at Dec 31, 2011 tanker order book amounted to 75.3 million deadweight tones, equivalent to about 17% of the current (June 2012) tanker fleet.

The global fleet is unlikely to deplete anytime soon as the scrapping of older vessels is not a viable solution due to depressed prices. Scarp prices at demolition yards are about US$410 a tonne, down from US$497 a tonne at end April 2012. The 9% decline in the rupee over the past few months (prior to June 2012) has also dampened the scrapping market.

Charter rates for tankers are also tied too demand for crude oil and related products. This means slower demand for oil, which further dampens the tanker market.

Other issues that weigh on the shipping industry include the high price of bunker fuel which is also falling in line with price of oil.

The Baltic Clean Tanker Index and Baltic Dirty Tanker Indices, which track the costs of carriage of refined petroleum products and crude oil respectively are at their lowest levels since end 2009 and ended at 571 and 663 points respectively on 25 June 2012. The have shed 37% and 29% respectively since Dec 2011.

Market Outlook For The Coming Week

a. State of US Economic & Monetary Trend=================================

The FED Governor: Ben S. Bernanke

Approach/Strategy:-Constrained Discretion; Inflation-Targeting; PCE As Preferred Measure Of Inflation (Range of 1% to 2% inflation as his "comfort zone"); Focused On Inflation Expectations & Resource Utilization To Determine Monetary Policy; Regulation Fair Disclosure or RFD; Relies More On Economic Models And forecasts To guide Views

Challenges 1 (Global Financial Crisis, June 2008 – Feb 2009): 1. Forsaking Interest-Rate Targets, The Fed Is Focusing On Cutting Borrowing

Costs and Kick-Starting Demand. The Federal Reserve's Increasingly Unconventional Efforts To Mend The Financial Markets and Restore Economic Growth;

2. Maintaining Sustainable Economic Growth & Price Stability

The Fed’s Objective: To Lower A Broad Range Of Interest Rates And Foster Easier Credit Conditions, Even Though The Fed Has Run Out Of Room To Lower Its Target Rate.

Fiscal Policy: US$789 Billion Package Of Spending And Tax Cuts

Monetary Policy: Quantatitive Easing 1

The Strategy Comprises Three Sets Of Programs:- The first group enhances liquidity via the Fed's traditional role as lender of last

resort to banks. These are programs that make loans of cash or Treasury securities in exchange for less-liquid collateral.

The second set is aimed at supplying liquidity outside the banking system directly to borrowers and investors in key credit markets. These activities include the upcoming program, to be coordinated with the Treasury, to buy up to $200 billion of asset-backed securities, debts backed by car loans, credit cards, and student loans.

Finally, the Fed has begun to buy longer-term securities, most notably some $600 billion in debt and mortgage-backed paper held by federal agencies. On Jan. 28 2008 it reiterated that it's prepared to buy longer-dated Treasuries.

Fed Funds (Overnight Loans Between Banks) Rate as at May 2010: Range Of Between Zero & 0.25%

Fed Discount (Direct Loans To Banks From Central Bank) Rate as at May 2010: 0.75%

Challenges 2 (Recovery Stage, March 2009 Till May 2010): Fears Of Inflation

The Fed’s Objective: Sop Up The Excess Liquidity Being Pumped Into The

Economy.- The “Exit Strategy”

Overall the Federal Reserve has a wide range of tools for tightening monetary policy when the economic outlook requires them to do so. It will calibrate the timing and pace of any future tightening, together with the mix of tools to best foster its dual objectives of maximum employment and price stability.

The Risk: Tightening too soon could short-circuit the recovery. Waiting too long could ignite inflation.

Fed Funds (Overnight Loans Between Banks) Rate as at May 2010: Range Of Between Zero & 0.25%

Fed Discount (Direct Loans To Banks From Central Bank) Rate as at May 2010 0.75%

The Exit Strategies:-1. Besides boosting its key bank lending rate, the Fed can raise the rate it pays

banks on reserve balances held at the central bank. That would give banks an incentive to keep their money parked there, rather than having it flow back into the economy, where it can stoke inflationary pressures;

2. The Fed also can set up the equivalent of certificates of deposit for banks at the central bank, another incentive for banks to keep their money at the Fed;

3. The Fed also can drain money from the financial system by selling securities from its portfolio with an agreement to buy them back at a later date. Such large-scale "reverse repurchase agreements" can be done with banks, Fannie Mae and Freddie Mac and other institutions. That might involve transactions with money market mutual funds. Or the Fed can sell a portion of its securities outright.

4. The Fed may replace or supplement the fed funds rate with interest paid on excess bank reserves and let the fed funds rate trade with some spread to that;

5. Fed May Adopt A New Benchmark IR To Replace The Fed Funds Rate

Challenges 3 (Uncertainty, Oct 2010 – Dec 2011): Fears Of Deflation & Double-Dip Recession

The Fed’s Objective: Sustaining Global Economic Recovery, Price Stability & Full Employment

The Risk: Major players in the world economy shift gear from budgetary stimulus to retrenchment; How painful will the adjustment be? So, what if Europe and the US both enter a phase of prolonged budgetary adjustment while the emerging world stays on course? What if the divergence between the North and South within the G20 widens further? Inflation Or Deflation Ahead (2010 & Beyond)?

Fiscal Policy: A broad package of tax cuts and an extension of unemployment benefits. The extension of the Bush-era tax cuts, which were due to expire at the end of the year (2010), removed a major source of uncertainty for financial markets.

The deal also included a one-year break on payroll taxes which will put money directly in Americans' pockets. The same is true for the extension of unemployment

benefits, which economists see as an effective way to stimulate the economy by getting people spending again.

Fed’s Strategies: The Fed will remain keenly focused on the strength of demand in deciding whether to ease again. The direction of hiring, investment and consumer behavior -- more than price indexes themselves -- will still drive its decision about whether another dose of monetary stimulus is needed.

Monetary Policy: Quantative Easing 2 (Ended In June 2011)

Fed Funds (Overnight Loans Between Banks) Rate as at Dec 2011: Range Of Between Zero & 0.25%

Fed Discount (Direct Loans To Banks From Central Bank) Rate as at Dec 2011 0.75%

Challenges 4 (Jan 2012 & Beyond): Fears of Deflation, Slow Growth Momentum, Weak Housing Markets & Still High Unemployment Rate

The Fed’s Objective: Speed Up Improvement In Labor & Housing Markets

Fiscal Policy: Taxes Cut & Spending

Monetary Policy: Operation Twist, QE3 & To Maintain Rates Near Zero Till 2014

Fed’s Strategies:-

Operation Twist (The U.S. central bank would sell $400 billion of short-term Treasury bonds to buy the same amount of longer-term U.S. government debt). By shifting its bond holdings into longer maturities, the Fed is trying to push long-term interest rates lower, which hopefully will spur mortgage refinancing and borrowing by businesses and consumers. The Fed will also intensified its efforts to shore up the housing market by pledging to reinvest proceeds from maturing housing-related debt it holds back into the mortgage market.

QE3: Buying government bonds and pushing down interest rates which are already at historical lows, could be close to irrelevant. Big powers lie in fiscal policy and regulatory policy

Fed Funds (Overnight Loans Between Banks) Rate as at July 2012: Range Of Between Zero & 0.25% (The Fed pledged to keep the Fed funds rate at exceptionally low levels at least until at least late 2014)

Fed Discount (Direct Loans To Banks From Central Bank) Rate as at July 2012 0.75%

The US Economy as at June 2012 …

Private payroll growth picked up only slightly in May 2012 and claims for jobless benefits rose in late May 2012, suggesting the U.S. labor market recovery was losing steam after a strong performance early 2012.

The reports reflected business anxiety amid an uncertain global economic outlook as the euro zone's debt crisis escalates and China's economy slows.

The economy is growing at an anemic pace and the job market is showing some signs of hesitation in the pace of hiring.

Private employers created 133,000 jobs in May 2012. That was only a slight step up from April' 2012s tepid increase of 113,000.

Economists are starting to worry that the troubles in Europe and an uncertain fiscal outlook at home are now (May 2012) dampening the U.S. recovery.

The soft private-sector payroll gains of the past two months (April 2012 – May 2012) at least partially reflected the unusual weather patterns, but they also raised a red flag about fundamental weakness. The latest number both confirms and reinforces the deceleration of employment.

The economy grew at a 3.0 percent rate in the fourth quarter 2011.

Businesses restocked shelves more slowly than previously thought and government spending declined more sharply. There was also a modest downward revision to consumer spending, which accounts for about 70 percent of U.S. economic activity, and stronger import growth.

The US Monetary Policy as at June 2012 …

The U.S. Federal Reserve delivered another round of monetary stimulus and it was ready to do even more to help an increasingly fragile U.S. economic recovery. The central bank expanded its "Operation Twist" by $267 billion, meaning it will sell that amount of short-term securities to buy longer-term ones to keep long-term borrowing costs down. The program, which was due to expire this month, will now run through the end of 2012. The central bank was concerned Europe's prolonged debt crisis was dampening U.S. economic activity and employment. If the Fed is not seeing sustained improvement in the labor market that would require additional action, it still do have considerable scope to do more and are prepared to do more. The Fed slashed its estimates for U.S. economic growth for 2012 to a range of 1.9 percent to 2.4 percent, down from an April 2012 projection of 2.4 percent to 2.9 percent. It cut forecasts for 2013 and 2014, as well.  In addition, they expect the job market to make slower progress with the unemployment rate now (June 2012) seen hovering at 8 percent or higher for the rest of 2012. It stood at 8.2 percent in May 2012.

b. The Forex Market================

The greenback is expected to maintain an upward trend vis-a-vis major currencies on a gradual US economic recovery amid the political uncertainty surrounding the eurozone's sovereign debt crisis.

Investors have piled into safe-haven assets such as US Treasuries (May 2012), where yields on benchmark 10-year notes and 30-year bonds have fallen following higher demand as concerns resurfaced over the eurozone crisis.

The US dollar would continue to show strength in the following months (May 2012 & Beyond) on “risk-off” trades (selling of equities, oil and gold and buying of US Treasuries) because of the political uncertainties in France and Greece as well as the uncertain growth outlook of major economies.

The US dollar could see short windows of significant spurts with analysis suggesting a higher probability of an upward trend for the rest of 2012. The windows for these spurts were in June to mid-Jul 2012, September to mid-October 2012 and December 2012. There is a high likelihood of seasonal spurts of US dollar strength if US growth remains status quo for the next eight months (May 2012 & Beyond).

A major risk aversion scenario would be the contagion from a mixture of a Greek exit from the eurozone and Spanish banks' recapitalisation problems (the government has effectively taken control of the country's fourth largest lender amid a jump in the yields of Italian and Spanish sovereign bonds).

The ringgit would weaken in tandem with other currencies.

The greenback would broadly maintain its strength against other major trading currencies as there was now (June 2012) less cause for another round of quantitative easing.

Expect emerging Asia currencies to weaken under pressure with investors' flight to safe-haven assets while there were near-term risks for the yuan to weaken further in anticipation of weaker data. The yuan's sharp appreciation in past years (prior to April 2012) was likely drawing to a close with sideways drifting ahead (May 2012 & Beyond).

c. State Of Malaysia Economic & Monetary Trend=======================================

Economic Outlook

Dated July 2012

Domestic economic indicators that have emerged over early July 2012 seem to have brought hope that growth prospects, both domestic and external could be improving. A more realistic assessment is hat it is too early for optimism.

Economic prospects are not looking up (mid July 2012) – far from it. The global outlook, instead is getting dimmer. While encouraging are not a true reflection of the state of the economy, May 2012’s IPI growth was from a low base a year ago, especially the mining sector that saw a sharp drop in 2011 as a result of weak crude oil production.

The gloom over the global economy does not like it is going to dissipate any time soon. Indeed, with many parts of Europe experiencing economic contraction and the US recovery stalled, economists believe that it will be some time before growth picks up again.

The US economy is expected to experience almost no growth in the 2QFY2012. For the whole of 2012, the US economic is forecast to grow by an anemic 2.2% with a downside bias, depending on whether Europe can get its act together to avoid a financial catastrophe.

What weighs heavily on sentiment is the fact that the sluggishness of the US economy is not caused by weak domestic demand and persistent high employment.The latest numbers from Singapore seem to reinforce views that prospects are deteriorating. On a q to q comparison, growth actually contracted by 1.1%. Singapore runs the risk of a technical recession in the coming months (July 2012 & Beyond).

Against such a backdrop, it is unlikely that the domestic economy can buck the trend and outperform the consensus.

Amid the current (July 2012) economic gloom, the urgency is for Malaysia to transform its economy as quickly as possible to remain a competitive force in the world economy.

However, the current (July 2012) weakness in global economic conditions could be a setback for Malaysia’s ETP, which aims to make Malaysia a high income nation by 2020.

The sobering fact is that in the 1QFY2012, FDIs plunged 34% from the same period a year ago. This is in line with the decline in global FDI flow. It is therefore unlikely that FDI inflows in 2012 will match 2011.

While FDIs are on the wane, a concern is that domestic investments may also lose steam as growth slows. A pertinent point to note that capital outflows in recent years (prior to July 2012) have gathered momentum, and in the last coupled of years outflows gave outpaced FDI inflows.

The government is banking on the FDI to help cushion the Malaysian economy against the global downturn. Thus, at a time when competition for investments is heating up, political uncertainties abound and global growth is seen as sluggish until 2013, the government must ensure that the ETP gains stronger traction instead of losing steam.

Monetary Policy

China's surprise interest rate cut to boost growth on may likely prompt other Asian central banks to loosen their monetary policy. Economist expects Bank Negara Malaysia (BNM) to make the move, being “typically very sensitive” to global growth developments.

The People’s Bank of China (PBoC) announced a 25 basis points cut in its benchmark rate to 6.3 per cent – the first since 2008 – although the central bank had raised it five times since then.

The Chinese economy slowed to a three-year low to record an 8.1 per cent growth in the first quarter 2012.

The PBoC also announced more flexibility for banks to set rates around the benchmark rates, which are seen by economists as a significant step in interest-rate reform.

Malaysia …

In the case of Malaysia, BNM governor Tan Sri Dr Zeti Akhtar Aziz has reiterated that the key benchmark interest rate level at three per cent remained supportive of growth and loans have currently (June 2012) been enjoying a 12 per cent expansion.

Bank Negara Malaysia will only change its stance on monetary policy, where the benchmark interest rate has remained at 3% since May 2011, if and when inflationary pressure builds up.

BNM governor Tan Sri Dr Zeti Akhtar Aziz said that conditions show that the inflation front has improved, there is a moderating trend and this will continue unless there are any developments.

Monetary policy would be based on domestic conditions. The current (April 2012) interest rate level is appropriate for the current condition.

Zeti added that projections on economic growth from the International Monetary Front were within the central bank's expectations of 4% to 5% growth.

Investment Theme For 2012

1. Privatization And M&As Deals2. Iskander Development Region (IDR)3. RM9 Billion LRT Extension Project4. The Water Services Industry5. Fiscal & Monetary Pump-Priming (Uncertain Due To Eurozone Debt Crisis)6. Further Liberalization Of The Services/Financial Sector7. The Malaysian Government’s Reform “Train”8. GLCs Revamp9. 10th Malaysia Plan And Capital Master Plan -> The New Economic

Transformation Programme (ETP)

10. RM36 Billion MRT System11. The Malaysia Singapore JV Involved In KTMB Land In Singapore 12. Malaysia Listed As China’s QDII Destination13. The Redevelopment Of Kampung Baru14. The Redevelopment of Sungai Besi RMAF15. The Redevelopment of Pudu Prison 16. The Redevelopment of RRIM17. Government Backed Entities – 1MDB, Ekuiti Nasional Bhd18. The Bakun Dam19. The RM5 Billion Warisan Merdeka20. The Development Of Dataran Perdana (KLIFD)21. The KL-Singapore High Speed Train Project22. The Pengerang Independent Deepwater Petroleum Terminal Project23. The Capital Market Master Plan (2)24. The Development of Inter-City Rail Transit Network In Iskandar Malaysia25. The US$20 Billion RAPID26. The River Of Life Project27. The RM5 billion North Malay Basin Project28. The Second Rolling Plan29. The CyberJaya City Centre30. The RTS Linking JB And Singapore Link31. The JB City Centre Transformation Project

Watch List In Coming Week(s)

1. Astro to list by end Sept 2012;2. The listing of Airasia Thai will likely take place in Bangkok by early July 2012;3. Airasia X to list by end 2012;4. The 2013 Budget proposals will be tabled in Parliament on Sept 28 2012;5. The IPO for KrisAssets REIT is expected to list on Aug 2012;6. Listing of KLCCP REIT;7. The announcement of the third iteration of the NAP that could potentially benefit

domestic autp parts manufacturers will be on 2HFY2012;8. The tender for re-development of the RRI Malaysia land in Sungai Buloht is

expected to be called by the third or fourth quarter of 2012;9. PNB expects to start ground works on the proposed 100-storey Menara Warisan

Merdeka project by the middle of 2012;10. SPAD aims to complete the entire feasibility study of the KL-Singapore HSR by

year end (2012) or 1QFY2013;11. Malakoff could be listed in 2013/2014;12. Prime Minister Datuk Seri Najib Razak said Malaysia 30% ownership limit in

local banks may be raised "in the near future" provided that there is reciprocity in the region

Corporate Watch List In Coming Week(s)

Jan 2012 …1. Sources say CIMB is likely to ink a deal to buy a 60 per cent stake in the

Philippine’s Bank of Commerce (BOC) by the end of Jan 2012 (No news);

2. Tan Sri Dai Bachtiaris expected to be appointed to the board of Wijaya. The appointment could take place by as early Jan 2012 (No news);;

3. Sources say three parties – Faber, Pantai Medivest and Radicare Sdn Bhd which are vying for the hospital support services (HSS) concessions by the Government are likely to get their contracts renewed within Jan 2012 (No news);;

4. SCABLE is likely to get a portion of the rm2.5 billion worth of the proposed 500kV power transmission projects linking Bunut to by Jan 2012 or early 2012 (No news);;

5. Catcha’s public shareholding of the company stood at 20.82% as at Aug 8 2011 which is below the 25% required under local listing regulations. It had seek an extension of time to Jan 31 2012 to comply with the public shareholding spread requirement (No news);;

Feb 2012 …1. Dataprep is close to securing an IT contract in China worth rm600 million by late

Feb 2012 (No News);2. The short listing and invitation to tender of the works for the KLIFD were

scheduled for completion in mid-February 2012 (No News);

March 2012 …1. BDRB has until end of March 2012 of to say whether it is going ahead with the

proposed sale of four of its properties or risk a query from the stock exchange;2. The government was finalising some technical issues (of whether the company

can put up a toll booth near the CIQ complex) over the EDL link and would make an announcement in two weeks from 09 March 2012 … MRCB (No News);

3. Sources say NAIM is bidding for around rm1 billion worth of MRT related construction works and will submit the bids in late March 2012 (No News);

4. A court ruling against SC – should it materializes in March 2012 – does not mean an MGO will automatically be ordered for E&O. It means SC still needs to go over the facts of the case again and the commission members may arrive at the same decision as in the first review … E&O/Sime Darby (No News);

5. The application made by Can-One to strike out the plaintiffs’ writ of summons and statement of claim for the sale of a substantial stake in Kian Joo Can Factory Bhd has been adjourned by the court to March 8 2012. The appeal by Can-One against the decision in dismissing CISB’s appeal on the injunction relating to a proposed bonus and rights issue in Kian Joo has been set for hearing on March 15 2012 (No News);

6. The winner for the billion Gemas-Johor Baru Electrified Double Tracking Project (EDTP).project will be known in March 2012 and that CREC was the favourite to land the contract (No News);

April 2012 …1. The deadline for acceptance of the offer to acquire TGM Global was on to April

6, 2012 (No News);2. UMW will make an announcement by end April 2012 on the WSP privatization

offer by HDS Investment (No News);3. The WCE concession agreement could be inked in April 2012. IJM will likely

increase its existing 22.7% stake in KEURO once the concession agreement is formalized (No News);

4. SP Setia is waiting for Cabinet’s approval on land swap deal to get hold of 40 acres of prime land in Bangsar within Feb 2012 – April 2012 (No News);

5. Olympia has short-term debt of RM81.3mil as at Jan 2012, which includes an upcoming redemption of RM10.7mil RULS in April 2012. However, it only holds cash and cash equivalents of RM31.9mil as at Sept 30, 2011 (No News);

May 2012 …1. Sources say company related to Tan Sri Syed Mokhtar has emerged as the front

runner to buy Khazanah’s 45% stake in Time Eng and announcement will be end May 2012 (No News);

2. MRCB’s EDL (Eastern Link) in Johor is scheduled to open in March 2012 with some predicting toll collection to start sometime in April or May 2012 (No News);

3. The Malaysian and Singaporean governments will undertake a detailed study on the proposed RTS linking Johor Baru and the island republic in May 2012 (No News);

4. Kimlun submitted a bid for the supply of TLS to the Sungai Buloh-Kajang MRT line and believes the job will be awarded by May 2012 (No News);

5. The terms of the proposed regularization for Sumatec are expected to be finalized within the next two months from March 2012 and complete it by 4QFY2012 (No New);

6. Silver Birdis required to issue its audited accounts within four months from its financial year-end. It is expected to issue the audited financial statements by May 31 2012 (No News);

7. Axiata will be able to operate over the next four (Feb 2012 – May 2012) months and an auction will be conducted for those licences within that period (No News);

8. There is a good chance of a review of sugar selling prices and subsidies provided around May–July 2012 … MSM (No News);

June 2012 …1. Eversendai is frontrunner for RM850mil ADIA structural steel job. The main

contractor for the US$6bil five-year ADIA expansion project will be officially announced in June 2012 (No News);

2. The regasification fee could be announced in June 2012 … PetGas; (No News)3. Sources say AA Anthony Sdn Bhd’s management led by Datuk Lim is negotiating

a MBO for the stockbroker with its parent MPHB. The proposed MBO is expected to be finalized by mid June 2012 (No News);

4. The masterplan for Johor Baru city centre transformation project has been completed and work on the first phase is likely to start in June 2012 (No News);

5. Maybank has given a further extension until June 01, 2012 to sell down its stake in BII. Maybank owns 97.5% stake in BII which it had acquired in 2008. Maybank will not sell BII's stake below 510 rupiah per share, the price it paid to buy the bank in 2008 … which could raise at least $528.63 million from the stake sale (No News);

6. CIH will have to find a replacement for its core business until June 2012. While the company has ruled out going into industries such as construction, oil and gas, plantation and biotech where technical expertise is required (No News);

July 2012 …1. CIL’s board meeting to decide on contentious fuel supply agreements (FSAs) with

power companies to July 31 2012 … Mudajaya;

2. SC has appealed against High Court Judge Abang iskandar Abang Hashim’s decision not to recuse himself from hearing a legal challenge mounted by E&O minority shareholder Michael Chow against the regulator. The appeal will be heard on July 24, 2012;

3. Expect the award the next round of RSCs by July 2012;4. Lim to hold talks with AUS’s gaming regulators in Queensland and New South

Wales. The outcome of these meetings will shape Genting’ corporate strategy for Echo, which could either culminate in a full blown takeover or remain a portfolio investment to be sold down the road for a profit … Genting HK/SP;

5. Ramunia expects to implement and complete its PN17 regularisation plan by end July 2012 and thereafter apply to for upliftment of our PN17 designation;

Aug 2012 …1. MMC Corp plans to submit in Aug 2012 a proposal on the privatisation of KTM

to the government;2. Tricubes be suspended from July 11 2012 unless an appeal against rejection of the

regularisation plan and de-listing is submitted to Bursa Securities on or before Aug 2 2012;

3. Bernas expected to finalize details of extended rice concession agreement with the government by Aug 2012;

4. The Petronas’s re-gasification plant in Malacca is expected to come onstream by August 2012;

5. EPMB and vendors had mutually agreed to extend the takeover of MEX for a further 60 days to Aug 14 2012 from June 15 2012;

Sept 2012 …1. Ho Hup to submit up its revised proposed regularisation plan to Sept 30, 2012.

De-listing if it fails to submit plan by Sept 30 2012;2. KEuro/IJM Corp is set to link the concession agreement on the rm1.07 billion

WCE within the next two months from July 2012;3. Scomi Group’s outstanding RM500mil MTN programme mature on Sept 28,

2012, and liquidity and refinancing risks will increase as the date approaches;4. Eventual relisting of Astro had spill-over effect onto Maxis;.5. Positive news for Tenaga as Sept 2012 PPA deadline approaches. One of the

criteria for these first-generation PPAs to be extended is for IPPs to reduce capacity payments they get from TNB from now (March 2012) till the end of their current agreements. The old PPAs will expire between 2015 and 2017;

6. The costs incurred from Nov 2011 to Aug 2012 for Tenaga would continue to be shared equally between itself, Petronas and the Government. The agreement expires in Sep 2012 when Petronas' regasification plant is expected to have come on stream;

Oct 2012 …1. The bids for PPAs renewal close end July 2012 and decision will be announced by

Oct/Nov 2012 … YTL Power, MMC;2. MAS’ RCPS due at end Oct 2012;3. US president Obama is up for re election for a second and final term as president

in Nov 2012;4. Gas Malaysia will be listed on Oct 6 2012;

5. MAA needs to submit its restructuring plan within 12 months from Oct 2011 till Oct 2012 or else risk being delisted

Nov 2012 …1. Winner for the Prai Combined Cycle Gas Turbine (CCGT) power project likely to

be announced by November 2012 with final approval from the Government … CIH/YTL Power/MMC Corp/Sime Darby/Genting Bhd/TNB (CCGT);

2. Genting Malaysia would have to find ways to finance US$4bil extension of RWNY if it successfully concludes negotiations with Empire State Development Corp of New York on Nov 30 2012. Genting Malaysia had net cash of RM343mil as at financial year ended Dec 31, 2011;

Dec 2012 …1. Maybank to fulfill the sell-down requirement of its stake in BII to extend to Dec

2012;2. MNRB’s notes are due on Dec 10, 2012. It may be selling down of its stake in

Takaful Ikhlas Sdn Bhd to pare down debt;3. Should MRCB SL be unable to begin tolling operations and not receive timely

and adequate cash compensation, it is likely to face a shortfall in its cashflow to meet its debt obligations in Dec 2012. Under these circumstances, there could be a multi notch downgrade for the senior and junior Sukuk.

2012 …1. Proton (DRBHicom) submitted revised plan to its six big lenders. Between July

2012 and December 2012, they (the bankers) will decide;2. There is still much uncertainty as to how the Singapore government's proposed

changes to its casino law will impact Genting Bhd and its 52%-owned unit Genting Singapore, whose Resorts World Sentosa is one of only two casino resorts in the island-republic. The situation was fluid as the proposals, which aims to impose harsher penalties and restrictions on gaming operators and their patrons, were at the public feedback stage and only scheduled to be tabled in Singapore 's parliament at the end of 2012;

3. A possibility of a turnaround for Perdana Petroleum in 2Q2012;4. The Singapore government's proposed changes to its casino law will impact

Genting Bhd and its 52%-owned unit Genting Singapore and scheduled to be tabled in Singapore 's parliament at the end of 2012;

5. SKPetro may bid Petronas' RM5bn and Shell's RM2bn HUC tenders, expected to be awarded by year end 2012 … Mudajaya;

6. The current (2012) and 2013-2014 could see P&O’s motor segment earnings jumping up;

7. For FY12, expect a profitable year as opposed to the loss making year previously … MISC;

8. 35-km underground power transmission cable job in Singapore comprising two tunnels is likely to be awarded by end-2012 … Kimlun;

9. Choo Bee has applied for PSL2 certification but the outcome will only be known by end 2012;

10. Signs that HWGB’s mining operations are turning the corner. HWGB produced 91 tonnes in the 1QFY2012 alone compared with the 62 tonnes it produced all of 2011;

11. JCY’s two rivals’ capacity in Thailand will only be back in full swing at end 3Q or end 4Q2012. The main concern is pricing environment when JCY’s competitors are back in full force;

12. Unisem is expected to return to black after losses from May 2012 onwards on the back of an improving semiconductor industry outlook;

13. The inventory normalization cycle will likely end by 2QFY2012 and will recover in 2HFY2012.It is believed that Unisem’s earnings will begin to normalize in 2QFy2012;

14. RHB Cap hoped the proposed merger with OSK to be concluded by 3QFY2012;15. The contract Pan Malaysia HUC works worth RM5bil will be up for grabs by end

of 2012 and Dayang is among the strongest contenders;16. There is a chance of Telekom’s normalized net profits could exceed rm700

million in 2012. This means current dividend ceiling looks set to exceed minimum dividend payout of rm700 million as early as 2012 if not in 2013;

17. EPMB’s profits for FY2012 estimating to plunge due to higher interest payments to its creditors;

18. The winning bid for Singapore's 35-kilometre underground power transmission cable, comprising two tunnels is expected to be announced towards end of 2012 … KimLun;

19. Hup Seng as the most likely privatization target in 2012;20. Telekom’s 2012 to top line revenue growth to be driven by Internet revenue

backed by its broadband growth momentum;21. The KLIA2 integrated complex is expected to be major re-rating catalyst for

WCT Bhd in the second half of 2012;22. The short listed bidders for the new combined cycle gas plant plant in Prai will be

announced after March 19, 2012. The successful bid is expected to be announced in the 3QFY2012 … TNB, Sime Darby;

23. Perisai is expected to see an explosive growth in its financial year of 2012 (FY12) with 100 per cent fleet utilisation and potential earnings enhancement from asset acquisition;

24. MMC Corp is a strong proxy to ride the IDR inflection point in 2012 with 67% of sum of parts from Johor;

25. MAS more than RM1 billion provisions will become possible writebacks for MAS in the coming quarters (Mar 2012 & Beyond);

26. Genting SP is poised for better days ahead as more rooms will come onstream by mid-2012;

27. MAS plan to strengthen its balance sheet to increase its cash reserves and funding capacity which would unveil the plan in 60 days from March 2012;

28. GPacket expects to post a positive Ebitda for FY2012 due to the improving trend of the company’s Ebitda since 2010;

29. If listing plans for Airasia’s Thailand & Indonesia in 1QFY2012 go ahead, AirAsia's financial year ended Dec 31, 2012, would start recognising revenue contributions from both the associates;

30. It was reported Malaysian banks with stake in Indonesian banks no longer need to sell down their holdings. … CIMB/Maybank/RHB Cap;

31. Expect formalization of concession agreement for WCE to boost IJM’s rising order book prospects;

32. MAS should be a full member of Oneworld airline alliance by 3Q2012. MAS is also due to launch its premium regional airline mid 2012;

33. TNB could expect stronger earnings for 2QFY2012 & Beyond with the recognition of gas compensation and gradual increase in gas supply to 1,150 million standard cubic feet per day (mmscfd);

34. KrisAssets (owned by IGB) is likely to inject its two retail assets in Mid Valley City the Mid Valley Megamall and The Gardens shopping mall into a REIT in 2012;

35. The proposals to acquire Proton by DRBHicom will be funded internally generataed funds and/or external borrowings. The proposals will be completed in 2H2012;

36. Shell has formally invited international yards to participate in a re-tender for the rm1 billion tension leg platform fabrication job at Malikai deepwater field, offshore Sabah and is expected to be awarded by 2HFY2012 as the bids are only due in April 2012;

37. Tenders for the River Of life project could be called in 2HFY2012;38. The FPSO tender process for Petronas’ RM15 billion North Malay Basin

development had started, with the contract slated to be awarded by end 2012 to meet production by 2013 … Armada;

39. UEM Land has been shortlisted for the 7.7ha RNAV accretive Unilever land. The results announced by early 2012. UEM Land confident on the Pudu Jail redevelopment and 1.24 ha RRIM land development in Sungai Buloh. Expect the awards to be announced by mid 2012;

40. UEM Land will be the largest beneficiary of improving Malaysia and Singapore ties given that it owns I11000 acres of land in skandar Malaysia;

41. HDD demand will continue to be strong and higher ASP will persist until 2012 as it will take about 6 to 12 months for the other component makers to resume operations … JCY;

42. Rumors JCY is looking to acquire other companies which include Eng Tech;43. When Phase 2 of PMetal’s project kicks off, earnings are expected to soar as its

new plant in Sarawak – which originally set to be commissioned in 3Q2012 – will triple its capacity to 360000 tonnes;

44. The outcome of Malikai deepwater job off Sabah bidding is expected to be announced in 2H2012 … MHB;

45. A better gauge of how RWNY (Genting Mal) will perform moving forward would be best seen early 2012 when the racino is fully operational;

46. Protev is interested in taking up a major stake (80%) in Sanichi but it will depend on the second phase of due diligence expected to conclude early 2012;

47. The government will call a tender by way of a RFP for conversion of the analogue to the digital for the broadcasting system which is slated to take place in 2015. The government will make an announcement on the contract by 2012;

48. The RM25.07 billion KLIFD jointly developed by 1MDB and Abu Dhabi's Mubadala Development Corp will get off early 2012. Over the next six months (Oct 2011 & Beyond), 1MDB will intensify talks with prospective investors and developers;

49. Malaysia plans to call for bids by 1Q2012 to help build gas-fired power plants;50. In addition to the downgrade, S&P is issuing a negative outlook, meaning that

there was a chance it will lower the rating further within 2012-2013 on US Treasuries. Such a downgrade, to AA, would occur if the agency sees smaller reductions in spending than Congress and the administration have agreed to make, higher interest rates or new fiscal pressures during this period;

51. A detailed masterplan of the KLFID project is expected to be completed in the first quarter of 2012;

52. Resort operator and developer Tanco plans to proceed with some of its property projects once it has paid its RM144.58mil debt to Lehman by the third quarter of 2012;

53. TAGB property development division could start to revise in FY2012 and gather pace from FY2013, with the group starting to line up some major projects for launch, tapping its total outstanding GDV of about rm8.71 billion;

54. Petronas’ RAPID project will be completed at the end of 201255. The concession agreement for Masteel could be finalised by mid-2011.

Construction is targeted to commence by early 2012 and the rail lines would be operational by early 2014

2013 …1. The identity winner of the DTTB project to be announced by third quarter of 2013

… TM/Astro/Axiata//KUB/Maxis/Redtone/YTL Corp (DTTB);2. In 2013 and 2014 Mudajaya will have full recognition of the sale of power and

will have surplus cash and will try to reinvest it to create even more income;3. First generation PPA extension with cut in rates could lift in TNB’s FY2013 core

earnings per share if 3.2GW of capacity is renewed;4. Having disposed of MAA’s key insurance arm, it will remain in asset management

and will not make any acquisitions until after Sept 2013;5. Mudajaya expecting its 26% owned Indian associate company RKM Powergen

Private Ltd to be profitable from 2013 after the coal-fired power plant there starts operations;

6. Eng expects to regain its world market share by the year-end or in early 2013;7. DIGI expects to disburse its second capital repayment at latest by 1QFY2013.

DIGI’s depreciation will taper off to less than rm100 million in 2013. Once the assets are fully written off, net profit will spike sharply higher;

8. Details on the seven casinos for NY, including the locations, will reportedly be determined in 2013 … Genting NY (RWNY). A binding MOU on the project is to be entered into with the NY State by Nov 30, 2012;

9. Genting Malaysia’s proposed US$3.8 billion RWM (Genting Miami) is still without a casino license with the vote on the destination resorts bill – that would allow up to three casino resorts – postponed to 2013;

10. Masteel/KUB is aiming for its 60% subsidiary MCN to start the Johor Baru Central-Woodlands shuttle train service by end 2013;

11. Maybulk has 21.35% stake in POS. Its put option can be exercised if POSH is not listed by end 2013. If POSH undertakes a listing or the exercise of the put option, Maybulk will stand to gain eventually;

12. MMHE has proposed to acquire Sime Darby’s fabrication yard but will only be fully available to MMHE in the 2HFY2013 as Sime Darby utilised a portion of the yard to complete its ongoing project;

13. MAS joining oneworld benefits would only start flowing through in 2013. MAS may be more interesting in 2013 once a substantial number of old planes have been replaced by new ones and the benefits from oneworld begin to materialize;

14. US economy may lose its AAA credit rating should the government fail to agree on a plan by 2013 to reduce both the budget deficit and national debt as well as unveil a meaningful implementation;

15. MMHE's capacity-doubling acquisition to complete by end of 2012 but believe earnings reflection will only appear in 2013;

16. Fitch give the new U.S. government that will come into office in 2013 several months to come up with a credible deficit-reduction plan before deciding on the rating;

17. Germany’s next federal election is expected to take place between Sept 2013 and Oct 2013;

18. The Basel III accord will require banks to hold at least 7% of core Tier 1 capital in the form of retained earnings or pure equity from 2013

2014 …1. Gunung’s agreement with MinDef that expire in 20114. The challenge for

Gunung is to negotiate contract renewals while acquiring enough new contracts to sustain its growth;

2. MAS is argeting a return to profit by 2014 as it cuts costs with new planes in a turnaround plan;

3. From 2014, Dialog’s income from the oil terminals will start flowing;4. Florida state’s lawmakers are expected to start debating on the liberalization of the

casino industry in the 1QFY2014 … Genting Malaysia;5. OSK will only start contributing positively to RHB Cap by 2QFY2014 due to its

acquisition of OSK Holdings Bhd being earnings dilutive in the near term;6. Axiata got 2 years extension until 2014 from SC to get local authorities’ approval

for its outdoor structures which were part of the conditions for its listing on Bursa Malaysia;

7. Proton’s unit Lotus would break even by 2014;8. The maiden contribution from Hiap Teck’s Kemaman slab steel project will only

comes in 2014

2015 …1. From 2015 money from Dialog’s marginal fields should commence;2. Asean implements the open-skies policy by 2015;3. The repayment of 270 million pound syndicated loan from Louts (Proton) is due

from March 31, 2015;4. Under the 10th Malaysia Plan, the government has tasked RTM to spearhead the

digital conversion. Aside from the free-to-air channels under RTM, Media Prima Bhd also has four FTA channels in its stable. All television service providers have until 2015 to make the swap, a deadline set by the International Telecommunications Union;

5. MAS' deal to buy an additional 10 next-generation 737-800 aircraft from Boeing in a deal said to be worth over US$800mil (RM2.43bil), there had yet to be any impact, as deliveries would only happen in 2015 onwards.

6. KNM has received another 4 years’ extension until Feb 2015 for its term loan facility (rm351 million) secured from Maybank. KNM has short and long term borrowings of rm1.06 billion as at Sept 2010;

7. The re-gasification plant in Pengerang is expected to come onstream by 2015

2016 …1. The exclusivity casino license granted to Genting SP and Sands end in 2016;

2. The first-generation PPAs that will be expiring in 2016. These PPAs involve IPPs like YTL Power International Bhd, Malakoff Corp Bhd, Tanjong plc, and Genting Sanyen Power Sdn Bhd;

3. Petronas plans to for second floating LNG project in Sabah is expected to be commission as early as possible by 2016

2017 …Malaysia will need another 4,500 megawatts (MW) from 2017 and all of that will be fuelled by gas

2028 …Brahims’ inflight catering services revenue comes from the 25 year contract with MAS which ends in 2028.

No Timeline Has Been Set …1. MRCB, the EPF’s property and construction arm, is in negotiations to acquire

Nusa Gapurna. MRCB looking for the right party to contribute major assets;2. MRCB’s positive catalysts include beneficiary of RRI and redevelopment project,

the MRT project. Front runners to develop a prime 8.09ha site on Jalan Bangsar, EDL recovery story (approval of toll compensation) and share of works from RM1bil extension project for DUKE Expressway, possible to secure sizeable Government job;

3. MRCB’s catalyst would be potential to co-develop 24-acre site in Penang Sentral and a few parcels of the 2,400-acre Sg Buloh Land, more land acquisitions in Klang Valley and “River of Life” project worth RM3 billion for Phase One;

4. MMC Corp proposed to the government to form a SPV with PAAB to take over Malaysia’s water assets;

5. Axiata is eyeing a telecoms license that may be available in Myanmar;6. Faction opposing Chan taking strategic moves to oust the board and if it happens

would be priced only at about 0.92 … Apex Equity;7. Tenaga’s positive catalysts include upbeat outlook for its financial year ending

August 2013, possible tariff re-rating after GE, re-negotiation of first-generation IPPs as well as declining coal price. It is looking also a prime privatization candidate;

8. The banking licenses of Malaysia’s banks in Singapore to be upgraded. CIMB is reported to have applied for the QFB license but it has yet to obtain the approval;

9. Redtone’s positive catalysts include taking it private and partnership with MAXIS expected to help improve REdtone’s bottom line;

10. MK Land’s positive catalysts include potential dividend or land sale could give the much needed sparks to the stock. It is not ruling out the possibilities of merging with other property players;

11. F&N and F&N Malaysia had received an offer from an unnamed bidder for its interest in F&N;

12. DBS set to emerge as substantial shareholder in AFG. Speculating DBS’s stake in AFG may exceed the 30% max stake for foreign ownership by consolidating its 28% stake in HDBS with AFG, through the issuance of new AFG shares to HDBS;

13. Axiata’s key re-rating catalysts are: (i) stronger than expected earnings (ii) special dividends and (iii) improved data traction in Indonesia;

14. Speculation that major shareholders of Ingress are mulling taking it private worth more than RM300 million;

15. Sime Darby’s key catalysts include potential further M&As and higher CPO prices. It plans to unlock value by listing certain core businesses in 2013;

16. Maxis Bhd to sell its Indian unit, Aircel but had denied;17. VW has a renewed interest in buying a stake in Malaysian automaker Proton

Holdings Bhd/DRBHicom;18. DRBHicom’s catalysts include a possible collaboration between Proton and

Volkswagen (VW) and divestment of non-core assets.19. DRBHicom is exploring potential merger of Bank Muamalat (DRBHicom

owned 70% and 30% by Khazanah);20. DRBHicom is prohibited from disposing of any equity in Proton to any third

party for an agreed moratorium period of two years from April 2012;21. DRBHicom may sell its stakes in Uni.Asia Life Assurance Bhd and Uni.Asia

General Insurance Bhd. UOB owns the rest of the two companies and may also sell its stakes;

22. DRBHicom will initiate partnerships between Proton and the group’s foreign strategic partners … VW, GM or Mitsubishi;

23. Speculation of a mega three-way merger between RHB Capital Bhd, AFG and DBS, followed by a possible merger of Hwang-DBS and AFG, supposedly brokered by DBS.

24. Award of MRT package V3. Start of the sale of power by the Indian IPP. Job awards are the key catalyst … Mudajaya Corp;

25. Tiong Nam exploring a REIT that could involved the warehouses and properties the company leases out for logistics purposes;

26. Parties said to be interested in APH include Swiss group Mercuria Energy Group Ltd, Petrofac and Tan Sri Syed Mokhtar of PTP … Muhibbah;

27. Gunung is teaming up with Saudi Arabia's Mohammad Abdulaziz Al-Habib & Sons Holding Company to tender for the Riyadh bus transit system;

28. BIMB is awaiting response from an Indonesian Islamic bank on its proposed offer to acquire 30% to 40% stake;

29. BIMB (LTH owned 18.5% & 30% by Dubai Investment Group) could be an M&A proposition either on its own, or through Bank Islam (BIMB owned 51%) or Takaful Malaysia;

30. Reports of a potential change in the ownership of the DIG stake in BIMB;31. Sources say BIMB may assume the listing status of its parent company BIMB

Holdings Bhd;32. GPacket … New share placement will result in new shareholder;33. BioOsmo Bhd may see emergence of new shareholder and the injection of a new

business;34. Datuk Clement Hii is considering building up his stake in SYF but is uncertain if

there will be a second offer to take SEGi private;35. Re-rating catalysts for Crest Builder as it moves from construction business into

the property development;36. Prestariang has support of MOHE but also of MOF’s private equity vehicle,

Modal Perdana, which has a 10% stake in Prestariang;37. Petra Energy/Wah Seong will be Nizam’s oil nad gas vehicle;38. Parkson plans to create a REIT … PRA/PRH;39. YTL Power to be privatize by YTL Corp;40. MBF plans to regulate the public shareholding spread as soon as possible;

41. APH’s project is to be tendered out to the highest bidder in an attempt to rescue the project;

42. Much of bad news priced into MEGB (June 2012) and key swing factor for earnings will be strength of student enrolment at its next major intakes in second half 2012;

43. Privatisation of MAS would be another way to restore the position;44. The Battersea project could be a major re-rating catalyst for SP Setia;45. Speculation a proxy fight break out between two of the substantial shareholders

of Apex Equity … Chan and Metroplex’s Lim;46. If YTL Power is successful in seeking a PPA extension but with cut in PPA rates,

the share price may come under pressure as dividends may be cut;47. There may have been an agreement between Genting’s KT Lim and Crown’s

Packer;48. A scheme is being looked at that will see the professional managers (Chay & his

team) wind up with as much as 15% equity interest in Kenanga IB;49. Perdana Petroleum is an attractive acquisition or merger candidate for oil and

gas companies after disposing its stake in Petra Energy;50. GKent is tipped win the systems contract worth RM960 million for the Ampang

LRT line extension project. It is also one of the bidders for the RM5 billion double tracking job from Gemas to Johor Bahru;

51. Mulpha would close its huge gap between its share price and NTA (1.32 as at March 2012) either through a share buyback programme or assets disposal that was above NTA;

52. AZRB may be keen on proposed refurbishment of former MAS headquarters which could also involve the construction of a new building next to existing tower;

53. KPS is looking at divesting its 20% stake in SPRINT as part of its plan to reorganize its investment plan;

54. Expect a quantum leap for Airasia Indonesia upon full implementation of Asean’s open sky policy in 2015;

55. Expect softening of jet fuel (June 2012) price to improve Airasia’s profitability in the coming quarters (June 2012 & Beyond);

56. Share price during this period is a good entry point for POS (June 2012) for a long term restructuring play;

57. Speculation IJM Land could acquire KEuro’s 50% stake in Radiant Pillar, as KEuro needs cash to develop the WCE;

58. Potential contracts for more marginal oilfields and the RAPID project … Dialog;59. Eversendai is securing two high-value structural steel jobs (worth RM700mil) in

Azerbaijan;60. SKPetro is frontrunner for Petronas' inspection, repair & maintenance tender

(RM900m);61. FajaBaru’s top officials are unaware of any major change in shareholding and

speculated it could be a target. FajaBaru’s main shareholders enjoy close relationship with MCA;

62. Major shareholders of Kelington Group Bhd have no immediate plans to sell their stake in the company despite investors approaching them;

63. ECM is expected to distribute cash proceeds from divestment to existing shareholders in a special dividend of at least 60 sen per share;

64. Yinson together with its Vietnam partner are tipped to be the front runners for a US$500 million job from Lam Son;

65. Sources say Petra Energy is in collaborative talks with Bourbon SA to bid for risk service contracts for marginal oilfields. Rumors Tengku Inrahim is looking to buy the stake from Perdana Petroleum from and inject his private O&G assets into Petra Energy for shares to strengthen his position;

66. Genting SP was said to be eyeing Australian-listed Echo;67. Maybulk’s earnings have reached a trough in June 2012 and should turn north

due to improved freight rates, more hire days and lower bunker cost;68. SKPetro’s quality asset base will turn it into prime beneficiary of Petronas's

RM300bil capex;69. YTL Corp is to become a major dividend YTL Corp should pay the most in

dividends from now on (June 2012 & Beyond);70. Khazanah’s non core assets could be divested include Faber, Bank Muamalat

Malaysia, Time Eng, TimeDotCom and CIMA. DRBHicom owns 70% stake in Bank Muamalat while Khazanah owns remaining 30% stake;

71. PNB’s non core assets could be divested include MBSB (65.5% owned by EPF & PNB own 11.9%) would be a privatize and/or a potential merger with RHBCap (EPF owned 44.8%), Bonia/NCB/MBSB/Formasa/Asia File;

72. A 3.5% stake in DIGI worth rm1.064 billion. That works out to rm1.86 per TDC (TimeDotCom) share;

73. Salcon’s intension is to list its assets and concessions in the China. It is looking at restructuring its water assets into a trust for an IPO;

74. IFM concession contributes 70.4% strake to Faber’s bottom line, the terms of the extension of the HSS concession will have a substantial impact on the group’s performance moving forward;

75. Re-rating catalysts for Airasia would come from the IPOs of AirAsia X, Thai AirAsia and Indonesia AirAsia;

76. AsiaEP must submit its regularisation plan and obtain the latter's approval to implement the plan within 12 months from May 2012;

77. IGB to benefit rm1 billion in cash as its 76% stake subsidiary KrisAssets plans to distribute cash proceeds from disposal of its two retail properties to a REIT;

78. Speculation that MBM will expand its business to include automotive assembly in the near future;

79. Skytrax has placed MAS’s vaunted five star ranking on watch following consistently poor feedback from passengers;

80. Puncak Niaga has emerged as one of the strongest contenders to bag marginal oilfield projects. It is close to securing a solid waster management contract in Cambodia. Rumors also it is being taken private;

81. Telekom is looking at a bigger involvement in the rollout of Malaysia’s DTTB system, which will convert the current analogue broadcast into a digital format;

82. Speculating MPHB will sell its 6.33% stake in U-Mobile;83. BRDB said the tender process was still on going. Ambang Sehati was still

evaluating its plan to increase its stake which may or may not result in a general offer;

84. Speculation that NCB could be a takeover target and privatize. Sources say that MMC Corp emerged as the possible suitor for NCB;

85. Datuk Samsudin and Raymond chan to submit a business proposal to AGlobal’s board of directors. Chan and Samsudin not discount the possibility of it in the future;

86. Datuk Seri Ung Huat and Salleh Idris (Mohamed Nedim, the son of Minister in the PM’s Dept Datuk Seri Nazri Aziz, Annuar Musa).has emerged as a major shareholder in PetOne;

87. Scomi Engineering Bhd venture into O&G biz in Brazil, including opening a plant there to produce drilling fluids;

88. Malakoff Corp (MMC Corp) was looking to energy-hungry Pakistan for proposed to its government the setting up of two power plants;

89. Speculation IOI Corp would raise its stake in Bumitama and IOI Corp may list its property armin Singapore in the future;

90. Dialog and partners stand a better chance of clinching a second marginal field project;

91. Potential catalysts for Genting Mal would be progress on the legalisation of gaming in New York and Miami and sustainable improvements in Genting UK's operations;

92. Cypark is transforming itself from a landfill contractor to a pure RE developer. Cypark intends to export its RE competencies to Myanmar;

93. PJB had parked 87% or RM61.57mil of its cash reserves to be invested in the equity markets and is therefore a direct proxy to the equity markets;

94. Market talk that Ekuinas was keen to take the university operator private but co-founders and major shareholder of HELP are not in a hurry to sell their stakes;

95. MAA is considering hiving off its fund management business but it Denied. M&As would be the game for the group to grow;

96. BEA has been interested to increase its stake in Affin. Affin has also expressed keen interest in Indonesian bank PT Bank Ina Perdana. Affin is considering its new dividend policy of 50%;

97. Affin is looking at to expand its Islamic finance business in Malaysia including organically or possible merger. LTAT will not ever want to sell its Affin;

98. Affin/AMMB: MA&s;99. Sources say the UK’s Balfour Beatty plc and Global Rail Sdn Bhd is in talks with

Ingress to buy over the latter’s equity in BBRail. The systems work for the Ampang LRT line extension is expected to be announced soon;

100. Bjtoto is looking to expand its operations in the Philippines by potentially acquiring a stake in the PCSO;

101. Kurasia’s rm1.55 billion cash will towards acquiring new core business;102. Tan Sri Ling Chiong Ho is planning a major move into Wijaya;103. Ekuinas is looking to acquire part of TGOFFs’ fleet and with plans to

possibly acquire additional OSVs from SILK;.104. The Genting group is eyeing casino opportunities in the highly regulated

Japan or South Korea with a war chest of more than RM13bil to fund its expansion programme;

105. The promoters (management and major shareholders) will no longer sell their shares in open market, increase in foreign funds holding (18.6% as at Feb 2012) and prospects of Chin’s grwoth could be a positive indication of OldTown’s future earnings growth;

106. Sources say LBS will ink a deal soon to dispose of its 50% stake in two joint ventures in China. Should the negotiations bear fruit, LBS will end as a substantial shareholder of HK listed JDCL;

107. Carotech said that the white knights for the regularisation plans were firmly in place;

108. Speculation that LTH and KPF or a combination of the two could emerge as the white knight in Silver Bird;

109. RGB will complete the debt papers within the next two years from March 2012;

110. Sime Darby was keen on Jimah Power Plant as it looked to beef up its power division;

111. Takaful stands to gain from a new ruling in Indonesia that will see pure takaful players grabbing a bigger share of the insurance market;

112. Tycoon Tan Sri Lim Kim Hong may consider divesting some of his stake in I-Berhad to institutional investors;

113. Sources say a GLIC is likely to take a significant stake in the special-purpose vehicle that is proposing to buy out QSR and KFC … JCorp;

114. Sources say Dnonce is in advanced talks to supply halal food products to Kazakhtan one of the states in Russia;

115. Sources say that there could be changes at the helm of some of Perak-based companies and a shift in their strategic assets before the general election is called … Perak Corp/Integrax/MajuPerak/Gunung;

116. Deleum is partnering Petronas Carigali Sdn Bhd to form a global patent for a breakthrough product that will greatly improve oil extraction rates;

117. MEGB had been rumoured that it could be a takeover target by Khazanah or Ekuiti National Bhd;

118. mTouche’s board has said it was unaware of any takeover of the company following reports on the ongoing changes in the company’s shareholding. The new shareholders in mTouche include Kamarudin to use mTouche as a platform to obtain a Government project related to mTouche's expertise;

119. Digistar is eyeing the rm860 million Bukit Putra Media City project;120. Yinson is an investment proxy for the Vietnam O&G play. Clinching floating

solution contract would be major re rating catalyst. Its growth will be anchored by its FSO contract;

121. Focus hasn’t received any proposal from Raymond Chan to inject oil and gas assets;

122. Yanki Regan, Indonesia’s MLM magnate plans to take control of Key West … But It Denied;

123. A decision by KLCCP to inject its mature assets into a REIT would likely be a mega windfall;

124. Sources say Wah Seong is believed to have secured a contract from Petronas Carigali to coat about 90km of gas pipeline in Turkmentistan;

125. Wah Seong will be a beneficiary of Petronas’ plan to replace its ageing facilities and Petronas’ RM15 billion North Malay Basin project. Gulf of Mexico would be next growth frontier for the company. Potential M&As;

126. Wah Seong had postponed plans to hive off Wasco Energy Ltd. It is rumored that Datuk Mohamad Nizam Razak could emerge as a substantial shareholder and chairman of Wasco when it is listed;

127. Ann Joo is keen to secure a foreign partner with equity participation of not less than 20% stake in Ann Joo;

128. Sources say US based Hess Corp is expected to award a contract for a FPSO vessel for the North Malay Basin development soon and plans to start production in the basin later 2012 … MISC/Armada/Ramunia;

129. TRC’s biggest catalyst remains the MRT project;

130. Axiata may dispose Idea Cellular nd M1 Ltd if things do not pan out the way Axiata wants. Axiata owns 29% stake in M1 Ltd and 19.1% stake of Idea Cellular Ltd;

131. Padini stock could also see re rating catalyst if its preliminary discussions with FJ Benjamin to distribute Vincci merchandise in Indonesia are successful;

132. Singapore plans to build two more rail lines totalling 48km and the possibility of contracts from NEWater in relation to water transmission pipes as well as a sewerage system … KimLun;

133. Indonesia will limit foreign companies to no more than 49% equity interest in some of its mines … MSC;

134. HWGB denied having sold its tin mining business;135. Perisai is looking at asset acquisition or asset injection by Ezra as its next

major move to enhance its earnings base via an equity cash call to fund the acquisition;

136. Mudajaya was looking to get Ananda Krishnan’s Tanjong plc was interested to take a stake in Mudajaya. Positive news flow from rollout of jobs under the 10MP and the ETP. Project wins continued to be the stock's key potential catalyst;

137. MMC Corp is an alternative proxy to the MRT;138. Sources say VW look into the possibility of remodelling the Polo as Proton;139. Compugates plans to diversify into timber business in the Asia Pacific to

widen its income base;140. PetChem will possibility play a big part in proposed Petronas-BASF projects;141. KUB is said to have been successful in its bid for Shell LPG business in

Malaysia… But it Denied;142. Specuate Goh’s gaming business (Everise Ventures Sdn Bhd, which handles

the gaming operation of the Sandakan Turf Club and in which Goh has 20% stake) will be injected into Temasek Formation;

143. Talks on Vietnam joint-venture could be revived … Genting Malaysia;144. Deepak was seeking to take control of Envair and inject some O&G business.

He and parties aligned to him intended to take up the entire 30 % placement block in Envair;

145. Sources KEURO is looking at divesting its 30.17% stake in Trinity and a 50% stake in the Canal City development to meet its portion of equity funding for the rm7.07 billion WCE;

146. Plus is looking at taking over SILK’s and Litrak’s highway concession;147. Telekom remains confident of sustainable returns of RM700 million or up to

90 per cent of normalised net profits to its stakeholders, whichever is higher;148. Oriental could be a privatisation target … But it Denied;149. Axiata’s capex would moderate from 2013 onwards as the peak for its

spending was in FY11 and FY12. It will increase dividend payout progressively;150. Axiata awaiting outcome of the developments in India where the Supreme

Court decided to revoke Idea Cellular Ltd’s mobile telephony services license;151. YTL Coom (YTL Corp)/GPacket … M&As;152. HSL will be a direct beneficiary of the massive and rapid developments within

SCORE;153. The investment risk in Hibiscus will rise once Hibiscus makes it first asset

purchase. MUCH WILL DEPEND ON WHETHER THEY STRIKE IN THE MIDDLE EAST! A drilling programme is being tentatively planned for

4QFY2012. If it makes a discovery, it will seek to commercialize it soon afterwards;

154. Lime Petroleum’s shareholder Hibiscus is eyeing a listing on the AIM in London;

155. Tender fort Kinara-Damansara highway contract, with seven companies invited to bid for the job … Mithril;

156. Compugates is expected to clinch several solar-based projects in Sabah worth over RM2 billion, driving growth for its green renewable energy solutions;

157. The former MD of KJCF and 13 others have filed an application seeking the review of the Federal Court ruling that gave the nod for Can-One Bhd to buy the 32.9% stake of KJCF;

158. Aabar Investments is said to be finding a buyer for its 25% equity stake in RHB Cap that It bought in June 2011 for about rm5.9 billion or rm10.80 per share;

159. KUB was closer to finalising its involvement in a RM1.23bil rail transit network project in Iskandar Malaysia. Masteel has a 60% stake in the joint venture;

160. Genting SP is actively pitching for potential casino projects in Taiwan and Japan;

161. Sources say that there is a potential sale of the plantations division by the Genting group … Genting Plantations;

162. Talk is that MBSB (65.5% owned by EPF & PNB own 11.9%) would be a privatize and/or a potential merger with RHBCap (EPF owned 44.8%);

163. MBSB is a privatization candidate … But it denied;164. MBSB’s CEO did not dismiss the possibility of MBSB becoming a bank.

BNM would engage MBSB’s intention to convert to commercial bank and will probably follow the Dafia, rather than the Bafia, regulatory framework;

165. There is the option of setting up HELP REIT in the future;166. Sources say Coastal is tendering for contracts that allow it (vessel builder) to

penetrate the upstream segment in Indonesia’s O&G sector. Its fabrication yard near the deepwater fields in Sabah makes it an attractive M&As with Alam Maritim.. It is considering selling its major stake to a strategic partner as it plans to diversify into the fabrication business. There is also potential new business to be injected into the company rather than on its core shipbuilding business;

167. Apart from DUKE, another potential game changer for Ekovest could be rm2.2 billion River of Life project. Ekovest has a 60% stake in the JV with MRCB to undertake the project;

168. Beneficiaries Of Perak Infra Dev by Vale Intl: KYM/Perak Corp/MajuPerak/Muhibbah/Gadang/Sunway;

169. KPJ valuations will move closer to the new benchmark set by IHH which is anticipated listing in mid 2012;

170. MKH’s disposal of its non halal livestock farming business was beginning to attract institutional investors such as EPF, LTH and PNB;

171. DKSH is not going to be privatised. Its major shareholder is 9.3% LTAT;172. TDM could be a strategic privatization target for its relatively low valuation;173. Karyon’s subsidiary has no intention of seeking a on the HKSE;174. Sources say three parties are interested to take over DBE … CIH, Datuk

Raymond Chan and Maybank Private Equity. Chan controls about 4.0% stakes in DBE;

175. Sources BLand is looking to divest a majority of its existing hotel properties abroad … But it denied;

176. Speculating Can-One has secured financing from Kuwait Finance House to proceed with the acquisition;

177. With KEURO’s poor financial results, there is a good chance that the WCE will ultimately land in IJM Corp’s stable. IJM could acquire more Keuro shares or privatize KEuro;

178. Sources say IJM Corp is looking at listing its infra assets – in India as well as those in Malaysia – in India. The group is also exploring the possibility of a dual listing on Bursa Malaysia;

179. With MTD Cap’s major shareholders following PLUS’ move to privatize its toll assets, other toll operators would be under pressure to do the same. Among them are Litrak and IJM Corp Bhd;

180. IJM Corp has a minority stake (39%) in the Kemaman port speculation that EPIC is looking at “kicking” IJM out of the port;

181. Lim’s entry into Tebrau raises speculation that DBSB may be injected into Tebrau;

182. Knusford/Ekovest/Tebrau may ride on Datuk Lim Kang Hoo183. BoxPak might be divested as Can-One needed the money to pay for its

completed acquisition of a 32.9% stake in the latter.184. MAS and Qantas are mulling over a JV to set up a premium airline based in

KL, a move that could give a competitive boost to both airlines;185. SilverBird is capitalizing on its strategic collaboration with its major

shareholder Koperasi Permodalan Felda Malayasia Bhd; 186. Industry observers speculate on whether SingTel could at some point marry

Axiata Group. Questions also arose whether there could be remarriage between TM and Axiata;

187. Hohnloser is planning a corporate exercise for Cleanpart and Frontken;188. PBJV plans a backdoor listing by taking over Vastalux. However the

restructuring would hinge on the approvals of the regulators and shareholders;189. TMS has entered into a teaming agreement with a subsidiary of LTH (TheTa

Edge) to submit a proposal to the Government in relation to a management system project for 10,000 schools nationwide worth rm450 million;

190. MCCM offer to acquire LTH’s 23% stake in KFC from QSR;191. CIH is scouring the market for new assets that may or may not be in the F&B

sector or even KFC within 12 months. Failing to do so, it would have to distribute the sale proceeds to shareholders;

192. Sources say Naza is likely to join forces with Seacera in a 500-acre mixed development project in Ulu Langat, Kajang. Some 4 million shares were crossed to unidentified buyers suggesting that there could be new major shareholders coming into the company;

193. Sources say the digitalization of RTM – the migration of TV broadcast from analogue to digital by 2015 – will be awarded to Digiistar should Puncak Semangat secure the DTTD project;

194. Sources say Takaso is also set to diversify into the mining sector with Terengganu-state owned GPharos as its partner;

195. Tengku Uzir Tengku Ubaidillah, a director of Gas Altimate Services Sdn Bhd had emerged as substantial shareholder in Vastalux with 7% stake. His entry could be part of the corporate exercise to rescue Vastalux. It is in the midst of drawing up a regularization plan;

196. KPS is looking to privatize its subsidiary KHSB;197. Speculation that Sees (KJCF) may utilize part of rm241.1 million sale

proceeds to launch a counter attack against Can-One;198. Rumors that XDL’s major shareholder may take the company private or

selling its stake … But Denied;199. Speculation that Hibiscus may be getting more concessions from Lime

Petroleum, based on the 35% stake it bought in the latter 2011;200. NCB’s port officials said he has no knowledge of any takeover proposal by

Tan Sri Syed Mokhtar;201. TM's core earnings were expected to pick up in FY2012 as Unifi's footprint

expanded to 1.3 million premises;202. Maybulk’s potential catalysts include (1) a strong and sustained rebound in

Baltic Dry Index; (2) a faster than expected economic recovery and (3) better than expected earnings contribution from POSH;

203. Sources say Crescent is looking to sell its 21.52% stake in MEGB. Sources also say a controlling block of shares in MEGB may be up for sale with at least two parties said to be interested. Among the interested parties are said to be a government-linked fund, which has a presence in healthcare and would like to extend the education aspect of that sector;

204. OCBS is keen on acquiring KAF’s securities business;205. Talks with potential investors on the sale of Lion Industries’ steel units are

still ongoing but many see an indefinite delay in the outcome;206. Sources say Felda is said to be considering to bid for KFCH and QSR.

However, Felda has yet to table the offer and planned to discuss with JCorp regarding the proposal;

207. Speculation that Fernandes (Ariasia) was selling out after a share-swap deal with MAS in Aug 2011;

208. MAS has not ruled out the possibility of being privatised;209. MMC has submitted a proposal to the MOF Inc to undertake a due diligence

exercise on KTMB on the purpose of taking over its operations. The government may offer MMC a huge contract for helping to take over the loss-making company;

210. Sources say BStead is considering taking its unit BHIC private … But Denied;

211. BStead is still interested in buying Exxon Mobil Corp’s Oil & Gas assets in the Southeast Asian nation if San Miguel Corp’s planned acquisition falls through;

212. Permaju’s major shareholder (Sanbumi) has been building up a sizeable stake in Permaju leading to speculation that this may lead to an alliance between the two companies;

213. There has been talk that Koon, a substantial shareholder may take PMetal private. This has been denied by the company’s top officials;

214. Sources say Kobay is considering an exercise to privatise Lipo (Kobay owned 53.16% of Lipo). Lipo’s NTA value stood at RM1.60;

215. IJM Plantations in Indonesia are bearing fruit, expecting the company to enter a phase of double digit growth in oil palm production from 2013, if not eerlier;

216. With the losses to be fully provided for FY2011, estimate that this could potentially stop the bleeding in the division from 2HFY12 onwards for MISC;

217. Mercury … M&As target;

218. Chan said that there are no government contracts, purely private jobs for Harvest and has no intention of injecting assets into Harvest, only to award it contracts;

219. A possible corporate exercise may be on the cards for Biosis;220. Sources say SAAG has clinched a multi-million deal to build houses in the

southern Indian state of Tamil Nadu;221. Tenaga’s chairman said Malaysia needs to revive plans to transmit hydro-

generated electricity from the resource-rich state of Sarawak to the rest of the country to diversify its energy mix. TNB announced in 2009 that it will be part of a consortium to build a submarine cable carrying electricity from Sarawak to the Malaysian peninsula … Sarawak Cable;

222. Tenaga has been actively pursuing projects in the Middle East and is one of the contenders for Saudi Arabia’s US$1.8 billion Qurayyah power plant;

223. Teo Seng/Huat Lai/TPC/FarmBest/CAB/Lay Hong/Leong Hup/LTKM (M&As);

224. KPJ and TMC Life may benefit from Singapore’s CPF’s Medisave scheme, after the island state relaxed regulations on its citizens receiving medical treatment from Malaysia;

225. Malton … privatization candidate by Desmond Lim;226. Gadang is participating in the Sungai Buloh-Kajang Klang Valley MRT

project;227. JCorp has plenty of assets at its disposal including stakes in KPJ Healthcare

Bhd and property developer Damansara Realty Bhd. Jcorp’s debt restructuring plan may unlocked from its office buildings in Pusat Damansara … Malton and EPF is speculating to be the buyer;

228. Sources say DBHD will become the primary property development arm for JCorp … Denied;

229. Two shareholders of Focus are seeking to remove the current executive chairman Datuk Manan Md. Said;

230. Wijaya in good stead to vie for more jobs from the rm1 billion slated for flood mitigation works in Perlis, Perak and Johor announced by PM in Budget 2012;

231. Benalec is looking at Penang and Johor to add to its “landbank”. It is in the process of obtaining approvals from the authorities for the 101ha Kota Laksamana development which could kick off by 4Q2011;

232. Telenor ASA (DIGI’s major shareholder) is in talks with government about raising its stake in DiGi, It now owns 49 per cent of DiGi;

233. Potential marginal field contracts may require MOPUs add to Perisai’s attraction;

234. ialog is keen to participate in the marginal fields;235. Sources say Ekuinas may be looking at a corporate exercise involving

Konsortium, which may include another attempt to take it private;236. SILK expects traffic flow on its Kajang SILK Highway to experience a

double-digit growth in the next few years (2012 onwards). It has diversified its earnings into the oil and gas segment since 2006;

237. KNM and Zecon have yet to finalise the agreement and financing for the RM15 billion petroleum refinery and polypropylene unit projects in Teluk Ramunia, Johor, with Gulf Asian Petroleum Sdn Bhd;

238. Speculate London Bis may raise its stake in Khee San and privatize;239. If Abu Sahid (owned 30.6%) takes up the shares in IPMuda disposed by Teh

and IGB, he would cross the threshold for making a MGO;

240. Cyberjaya City Centre … Mah Sing, UEM Land and Naza;241. Hap Seng could possibly see an emergence of a new shareholder;242. Bernas could raise price by RM100 to RM200 per tonne without government

resistance;243. Rumors of Malton emerging in E&O as substantial shareholder and a possible

MGO from this party;244. The UK’s PREL postponed rm2.2 billion project with KNM is confident of

securing funding for it. Many are skeptical about the project. Both parties had encountered problems in securing financing in the past;

245. Bonia/NCB/MBSB/Formasa/Asia File M&As Target By PNB;246. Top Glove's strong cash levels of more than RM300 million was "on standby"

to acquire companies that may have synergies with it;247. MMC Corp’s companies slated to be listed are Malakoff Bhd and Johor Port

Bhd;248. Rumors that major shareholders Tan Sri Dr Ninian is likely to make another

bid to take over MBF Holdings ... But MBF Denied;249. The prospect of higher profitability under the 4th GPTA has fuelled PetGas’

earnings prospects and on top of that, the group has an earnings catalyst in the commission of the re-gastification terminal and power plant in Sabah;

250. Unico has proposed to distribute shares in the group’s hire purchase (HP) arm ELK-Desa Resources Sdn Bhd pursuant to the listing of the unit;

251. Exact details on the proposed disposal by ULI are still lacking at this point of time. What kind of new businesses will the group buy into that will add synergistic value to its remaining businesses? The critical decision for United U-Li’s management will be to either return cash to shareholders or find a good business to fill this earnings void;

252. Dialog and its Australian partner Roc Oil are said to be on the verge of bagging the marginal oilfield projects from an oil major Petronas for Balai and Bentara fields;

253. Takaful … M&As candidate;254. UEM Land is frontrunner for the RRIM’s 1,214ha in Sungai Buloh. It has

submitted bids for 7.7ha Unilever land in Bangsar and 8.5ha Pudu jail redevelopment in Bukit Bintang West. It has been project manager for RM27 billion Marina South and Ophir-Rochor government land developments in Sg. It could benefit from outright land sale by M+S Pte Ltd. UEM Land could benefit from the government-linked company’s share divestment plan which will improve its trading liquidity;

255. A proposal is in the works for IWK to be taken over and managed by 1MDB with Puncak Niaga as its partner …. Denied IWK will be privatized;

256. Latexx is in talks for a possible takeover, but nothing is finalised yet;257. Sources say SP Setia Bhd/IJM Corp plan to buy a strategic stake in E&O. But

SP Setia Denied;258. SP Setia is forefront of government land redevelopment projects. Potential re-

rating catalysts include positive news on the Bangsar land and RRI Land;259. SP Setia is likely to get a 30-year concession to build and operate the Penang

International Convention Centre. It has emerged as the leading contender to build the PICC on the grounds of the Pisa;

260. Mah Sing/IJM Land has a large government-linked shareholder is a M&As candidate by GLCs or funds;

261. Tan Sri Yap Yong Seong has been increasing his indirect stake in Olympia. Olympia is synonymous for its gaming business in Sabah;

262. Glomac is keen to participate in government land privatisation and aggressively looking for landbanks especially within the Greater KL area;

263. Zeland was still "in discussions" with Perusahaan Lestrik Negara Indonesia, and was confident of being able to avoid paying the penalty. If penalty can be avoided then there's no problem to turn around the company. However, if that cannot be avoided, it may take a longer time;

264. Sources say Ramunia and its partners have emerged as the front runners to bag a US$190 million contract to build up to 10 well head platforms for India’s ONGC. This job could lift Ramunia out of PN17 status;

265. AZRB has achieved financial close for the RM1.5 billion KL Outer Ring Road project. This could indicate that the company might ink its second concession agreement by year end (2011);

266. Three private equity firms are "very" keen to partner KUB and acquire stakes in the A&W But KUB has no plans to sell;

267. BRDB will participate in the RRI land as well as the Lever Brothers site in Bangsar;

268. Malakoff Bhd, may build a power plant in Johor … MMC Corp;269. GPRO saw the emergence of new major shareholder — Christian Kwok-Leun

Yau Heilesen who bought 38.23 million shares or 15.29% equity interest at 8.5 sen each;

270. SCB is expected to bag 500kV Bunut-Kuching line job estimated to be valued at RM3 billion. The winning bid should be announced by end 2011. More transmission opportunities through export of Sarawak’s power resources under the Asean inter-transmission master plan;

271. Lion Corp holds a 25%-stake in Lion Industries. Thus, any restructuring plan by Lion Corp could potentially involve the sale of this equity stake;

272. Some of BJLand’s bigger planned projects include the rm1.6 billion Ritz Carlton in Jln Ampang and the redevelopment of the Selangor Turf Club land in Sungai Besi;

273. Tan Sri Lee Kim Yew is said to be moving closer privatizing CHHB. Lee maintains that he has no immediate plants to privatize CHHB. Lee and his family collectively control about 53.52% stake in CHHB;

274. Potential targets by Japanese for stake acquisitions include Ann Joo, E&O, QL, Tasco;

275. CHHB/YNHP/Glomac … Poised for Privatization;276. Gamuda’s risks include: (i) the MRT project being delayed/scrapped; (ii)

Gamuda getting a smaller role in the MRT project; and (iii) rising input costs.277. Specualtion that E&O is bidding for the the Wesley Methodist Church, which

owns the 4-acre site where the Pykett Methodist Boys’ School sits along Burma Road … but It denied;

278. Questions whether Kulim should be buying more assets or selling its own assets to address its net debt position;

279. Qatar’s 2022 FIFA World Cup, Abu Dhabi’s “Plan 2030” and Saudi Arabia’s US$400 billion (RM1.2 billion) pump priming suggest major building and infrastructure works in the pipeline … Eversendai;

280. The question is whether part of the proceeds from Parkson Asia’s IPO would be channelled to the Lion Group’s rm3.2 billion blast furnace steel project;

281. Datuk Ong Choo Meng of Hextar Chemicals Sdn Bhd emerged as a substantial stakeholder in Denko with 10.99% of Denko. Also emerging as a substantial shareholder is Tan Chen Wei who has an 8.03% interest;

282. Should the privatisation of PMI succeed, Khoo would increase his indirect shareholding in MUI from 49.93% currently to 55.23%;

283. Malaysian government still hasn’t received an application from Exxonobil Corp to sell its 65 per cent stake in Esso Malaysia Bhd to San Miguel Corp. The transaction is subject to approval from Ministry of International Trade and Industry and the Ministry of Domestic Trade and Consumer Affairs;

284. Will Anada lead another surprise corporate exercise as Maxis collaborates with sister company Astro to come up with IPTV services for its subscribers by 1H2012. Will international operations be folded back into Maxis again?

285. The Lim family, the major stakeholder of Ann Joo, is expected to pare down its stake although they are not ready to give up the controlling stake currently;

286. Parkson Holdings Bhd is planning an initial public offering of its retail operations (Parkson Asia) in Malaysia, Indonesia and Vietnam;

287. Kimlun could potentially benefit from the Klang Valley KVMRT tunneling portion;

288. Potential disposal of non-core assets could re-rate MPHB. Earnings growth will be driven by 100% ownership of Magnum effective June 10, 2011;

289. Genting Group, Wynn Resorts and Adelson’s Las Vegas Sands Corp in 2011 hired a stable of lobbyists to push through a bill that would give them the chance to bid for a licence to operate an exclusive casino resort in any of the five cities in Florida — Miami, Jacksonville, Tallahassee, Tampa and Orlando;

290. Work has been accelerated to ensure Phase 2 of Genting SP is back on track for completion by year-end (2011);

291. Genting Group and partner VinaCapital have the Vietnamese government’s permission to reclaim 1,555ha of land in the Thang Binh district, paving the way for a US$4 billion (RM12 billion) recreational resort project with gambling facilities for foreigners … Genting Malaysia;

292. Corporate developments aside - such as the planned listing of its 50%-owned cruise line operator NCL Corp Ltd - Genting HK’s cruise line business, coupled with casino operations in Manila, is starting to churn out impressive returns …The Lim family and Genting Malaysia as major shareholders with 57.49% and 18.44% stakes, respectively;

293. Genting HK is one of the private investors participating in building the US$15 billion Bagong Nayong Pilipino-Entertainment City Manila under the PAGCOR. The project is planned on reclaimed land around the Manila Bay area and is meant to rival established gaming and entertainment areas such as Macau and Singapore. However, the media has reported that the new administration under President Benigno Aquino has called for a review into these investments;

294. SEB is lining up at least five more hydro dams and two coal-fired plants to meet its targeted 7,000MW generation capacity by 2020;

295. Sources say Aabar has internally discussed valuing the deal lower to encourage Maybank and CIMB to come back with an offer for RHB Cap;

296. Maybank, which called off merger talks with RHB Cap in June 2011, is still keeping its options open, for a possible acquisition, if the price is right. Speculation that RHB Cap is aiming to take over CIMB Group. RHB Cap may revise earlier market speculation of a potential merger with AMMB given that this is a better fit and a marriage of equals;

297. IJM’s kitchen-sinking is complete and management sees no further provisions in India. Nevertheless there is little catalyst and toll operations are not major contributors as yet;

298. The MCA is said to be keen on buying MPHB’s Menara MPHB;299. Sources say AZRB has reached financial close with Bank Pembangunan

Malaysia Bhd for the RM1.5 billion KL Outer Ring Road (KLORR) project;300. KTB aims to work on the US$6 billion Haramain high-speed rail project in

Saudi Arabia to gain expertise so it could undertake a similar project there. The project has commenced and is expected to be completed by end-2012;

301. Notion’s controlling shareholders were still in negotiations with various parties over interest to acquire the business or equity interest in the company. Notion would be a suitable fit for “someone like Nikon”;

302. Group CEO Shah Hakim increasing his stake in Scomi Group. In 2010, it was reported that could be new substantial shareholders in the form of Indonesian investors and Middle Eastern funds surfacing in Scomi Group;

303. Mah Sing had cash RM750 million cash. It is eyeing more government projects, including the development of the RRII and Sungai Besi land. It is also looking at M&A deals and does not rule out acquisitions to play a bigger role;

304. Sources say China Steel Corp has offered to buy steel businesses of Lion Group. The former had made offer for Lion Group assets including Amsteel Mills Bhd and Megasteel Bhd. The deal might be valued at more than US$1bil;

305. SCIB to benefit from the rollout of major projects under the 10th Malaysia Plan, and the SCORE;

306. Catalysts KLCCP include long term lease renewal by its key lessor Petronas, beginning to see income from its Lot C development, expecting more income from refurbishment of its Dayabumi complex, plans to develop its Lot 1D parcel and KLCCP may acquire Petrona’s assets or buy properties in the KLCC vicinity;

307. PetDag is keen on buying Royal Dutch Shell plc’s LPG’s business in Sabah that is up for sale;

308. Ho Hup submitted its proposed regularisation plan to Bursa Malaysia for approval. The company has about RM140 million of debts owed to external parties, which includes creditors from 10 to 20 years ago;

309. Alam Maritim’s JV with state-owned Yayasan Sabah Shipping to provide offshore support vessels and construction services to the O&G industry in Sabah, would allow it to make to bag the coveted US$50-US$60 million Sabah O&G terminal's pipeline installation contract;

310. TM (Telekom)’s likely price catalysts include the strong take-up of Unifi, expectations of a special dividend and positive earnings surprises;

311. Sources say the new major shareholder of Pulai Springs Bhd wants to it;312. Successful development of the project in the vicinity of Mont Kiara and Sri

Hartamas, known as Kenny Heights, is thought to be key to the revival of Dutaland/Olympia. However, plans to kickstart the project have been beset by a series of failed joint-venture agreements and lack of funds;

313. Perwaja is likely to bid for and secure several parcels of mining land concession to be awarded by the Pahang and Terengganu states soon. The concession) may result in a surge in Perwaja's earnings;

314. There could be the entry of a new shareholder or injection of new assets or businesses into Wijaya;

315. PetGas will benefits the evolving energy landscape towards natural gas. The government’s strategy to gradually remove natural gas subsidies by 2015, will lead to a more viable pricing mechanism for electricity generation;

316. PetGas’s 60per cent-owned 300MW Kimanis gas-fired power plant expected to be completed by end-2013, and investment opportunities in the RM60 billion Refinery and Petrochemical Integrated Development in Pengerang, Johor, could ensure higher earnings for Petronas Gas;

317. Tan, who already controls 66% of BMedia, can well afford a privatization;318. The emergence of German strategic shareholder has sparked speculation that a

corporate restructuring exercise may be brewing for Frontken;319. Sources say Muda could be the next takeover target for Japanese paper

product manufacturer Oji Paper Co Ltd … But It Denied;320. Catalyst to TGOFFs would be the listing of Bumi Armada, which is expected

to boost the sentiment of all oil and gas vessel players in Malaysia;321. A gaming license will be the biggest wildcard for Treasure Bay Bintan …

Landmarks;322. HLFG is seeking acquisitions in emerging markets as it aims to triple its

assets and profits in five years;323. WCT’s potential works include in Abu Dhabi and Saudi Arabia. Domestic

jobs, the LRT Package B, the Klang Valley MRT (Sg Buloh-Kajang line) elevated structure works and part of a US$2.5 billion oil refinery and aromatics cracker project approved by the Sultan of Brunei;

324. TRC’s 26% stake in PetroBru (B) Sdn Bhd may also bear fruit soon. Project approval is pending a revised blueprint for Pulau Muara Besar refinery, Brunei. Upon (PetroBru securing the) approval;

325. Hartalega is positioning itself for a change in regulations in Brazil that will allow hospitals to use nitrile gloves, which is Hartalega’s specialty;

326. BJToto has attempted to do this by applying for a licence to run a nationwide lottery system in Vietnam in 2008, which is yet to be approved;

327. Speculation Robert Kuok will plan privatization for his listed firms … Shangri-La Bhd, Malaysian Bulk Carriers Bhd and PPB Group Bhd;

328. Market talk that there could be a new shareholder emerging in TWS Corp But Denied;

329. AMedia’s key attraction is its exposure to public transportation upgrade in the Klang Valley which will allow it to expand its services to the LRT and MRT systems. It could be catalysed by success in securing the licence to operate on the LRT.;

330. Few entities, local and international, have shown interest in taking up a stake in AMedia but things are at a preliminary stage Talks were also ongoing with a number of investors, including local media groups, on the purchase of a 10% stake in the company. AMedia denied in talks with Star on a possible takeover;

331. Sources say a corporate exercise could be in the offing in Kfima & Fima Corp;

332. Hap Seng Consolidated Bhd is open to selling its half of Menara Citibank located on Jalan Ampang in Kuala Lumpur, but is not aggressively scouting for a buyer;

333. KBB is still in the midst of finalising the debt restructuring agreement. It noted CDRC had received approval exceeding 75% of each class of creditors for its proposed debt revamp. The approval could indicate to be uplifted from PN1;

334. The award of Berantai marginal oil field contracts in early Feb 2011 to a consortium are expected to indirectly benefit Deleum;

335. Formis has completed the first phase of e-courts and is optimistic that it will be able to secure the profitable contract to install the second phase of an integrated system for the remaining courts in Peninsular Malaysia;

336. With every 2% rise in the average selling price of refined white sugar, MSM’s net profit will increase by 2%. Industry observers expect government to completely remove the subsidy of refined sugar by 2011 to better reflect the market price;

337. Speculating that Cosway is unlikely to be privatized. Rather it could soon commence ground operations in China … BJCorp owns 67% stake in Cosway Corp Ltd and is listed in HK. The group also made news when it ventured into the waste water segment in China and opened quick service restaurants in the mainland via the Kenny Rogers Roasters chain;

338. Market talk that BJCorp is looking to float its automotive arm which distributes mainly Mazda. It is also waiting to develop the 245 acres belonging to the Selangor Turf Club in Sungai Besi, which could solve its financial woes;

339. Silver Ridge’s contract for the HSBB project is for the three years and there is another 1 ½ years to go. The contract will provide some stability to its revenue for its duration and believes that it stands a good chance of an extension of the contract;

340. Silver Bird’s up with FELDA will definitely give Silver Bird a quantum leap and the distribution of the agri food products will start as early as July 2011. Silver Bird’s tie up with FELDA could be a catalyst for the company’s shares;

341. Speculation Matlon is poised to participate in the development of the 162ha RMAF land in Sungai Besi for the development of Bandar Malaysia either directly or through Lim’s private vehicle. It has been said that 1MDB and LTAT will hold 30% equity interest each while Lim will control 40%;

342. A JV between KUB and IJM is expected to secure work for the Specialist Children's Hospital in Cheras worth RM3 billion. Meanwhile KUB is looking for a suitor to sell part of its equity stake in its fast-food chain A&W Mal;

343. Catalysts for the IJM Land are its Canal City Project the commencement of the EPF’s 3300 acre Sungai Buloh development drawing near;

344. IJM Land does not rule out the possibility of working with MRCB JV capacity rather than one that involves the merging of the two companies. Also IJM Land does not rule out any future M&A possibilities;

345. Petronas Gas is expected to benefit from Petronas’ aggressive expansion in gas business and liberalisation in gas industry;

346. Pchem is in a "very strong" position to execute more acquisitions as the company’s available cash position reaches RM8 billion. PCG was currently in talks with several parties with regard to other avenues for expansion, but these were still at the "very preliminary stage";

347. Market speculation was that Public Bank could be the next likely acquisition target that CIMB may cast its eyes on;

348. BStead’s major shareholder, LTAT was still in discussions with the government over the acquisition of 60 acres of land in Jalan Cochrane and 245 acres in Jalan Ipoh;

349. BStead does not discount any possible M&A involving any company [in the] six core businesses (plantations, heavy industries, property, finance and investment, pharmaceutical and manufacturing and trading);

350. Sources say Royal Dutch Shell plc has shortlisted five potential bidders for its downstream LPG business in Peninsular Malaysia. It is learnt that the shortlisted companies are BStead, KUB, LTAT (Ramunia) KKB and IPS;

351. LTAT intends to pare down its 59.28% shareholding in BStead to boost liquidity of the diversified group on Bursa Malaysia;

352. AmBank, Affin Bank, Alliance Bank, BIMB, Bank Muamalt (DRBHicom) … potential M&As candidates;

353. Plentiful electricity at low prices (Produced By Bakun Dam) will attract heavy industries with high demand for electricity. The beneficiaries are Sarawak companies … Naim Holdings Bhd, HSL, and KKB and CMSB;;

354. Sources say Malakoff Corp Bhd, owned by MMC Corp Bhd, is expected to be awarded a contract to build a 1,000MW coal-fired power plant soon;

355. The first-generation PPAs that will be expiring in 2016. These PPAs involve IPPs like YTL Power International Bhd, Malakoff Corp Bhd, Tanjong plc, and Genting Sanyen Power Sdn Bhd. They collectively account for around 4,115MW of the generation capacity in Malaysia. The negotiation is currently (June 2011) led by the Ministry of Energy, Green Technology and Water, with the assistance of TNB;

356. The Pengerang CTF project, on full-scale commercial operation by 2017, to be the main driver to Dialog’s earnings with dividends to boot. Dialog is also highly tipped to bag the next few marginal field projects (Balai and Bentara), a positive to sentiment and price performance;

357. MSC is in talks with companies including Traxys SA for potential mining partnerships in the Democratic Republic of Congo;

358. RGB is close to securing a US$25 million contract to supply 1,000 gaming machines to one of the four casino concessionaires in Bagong Nayong Pilipino-Entertainment City Manila. The contract will be based on a concession model whereby RGB has a share of the revenue from the machines’

359. Petronas Gas could be an indirect beneficiary of gas subsidy cuts, given that the move would make it more palatable for Petronas to import LNG via the former's terminal for transmission around Peninsular Malaysia.

360. DiGi.Com Bhd is looking to adjust its dividend policy in order to compensate for lower net profit as it seeks to update its network;

361. HPI had been in talks with a Japanese company to take up a strategic stake since 2010. The discussions are still going on but nothing is final at the moment;

362. TWS owned 69.76% stake in TWP, is majority owned by Tan Sri Syed Mokhtar, a 42.97% stake holder as at April 30, 2010. Syed Mokhtar also held a 71.48% stake in the company. The market is expecting the companies to undertake corporate exercises, following the various deals seen at Syed Mokhtar’s other companies;

363. Australia’s Ramsay Health Care is scouting for Malaysian companies to jointly develop its Malaysia and Indonesia healthcare presence … KPJ, TMC Life;

364. MMC Corp is planning to list the company's energy and port assets as well as expand the facilities of Port of Tanjung Pelepas. Gas Malaysia Sdn Bhd, Malakoff Bhd and Johor Port Bhd;

365. DRBHicom is exploring a potential merger of Bank Muamalat Malaysia Bhd and Bank Islam Malaysia Bhd but there are no plans to sell its shareholding in Bank Muamalat;

366. Maton is said to have won a bid to acquire the site of the Jalan Duta government complex But faces some hurdles;

367. Datuk Mohd Wira Dani Abdul Daim, the son of former finance minister Tun Daim Zainuddin, has emerged as a substantial shareholder with a direct 6.35% stake, or 3.21 million shares, in Petrol One Resources Bhd (PetOne);

368. POS is keen to participate in MyEmail project;369. Potential Privatization Targets … Apollo Food Holdings Bhd, Power Root

Bhd, Hai-O Enterprise Bhd, Sozo Global Ltd;370. Pos Malaysia (POS owned 15% in Transmile) will only make a decision on

Transmile once the group completes its regularisation plan. Transmile managed to secure creditors' approval for its debt restructuring plan in mid-April 2011;

371. Seven companies shortlisted for the first phase of a US$2.5 billion (RM7.45 billion) infrastructure development project in Perak … Muhibbah Engineering (M) Bhd, Gadang Bhd, Sunway Construction Bhd and Brazil's Vale International SA;

372. PIE’s link with Apple is more tangible than mere sentiments. Its parents company is Taiwan listed Pan Intl Industrial Corp which holds 51.43% stake in PIE … Speculating more contracts from its parent;

373. Investors are awaiting details on DRB-Hicom Bhd’s business plans and the unlocking of the POS’s valuable landbank;

374. MPHB will be re-rated when more details unfold, involving the company's divestments of non-core assets, which include stockbroking, general insurance, and hospitality businesses. It also jointly develops its vast landbank with other developers. MPHB plans to raise some rm1 billion by selling its no core assets to focus on gaming. It had no plans to list Magnum;

375. Malaysia agreed to award the RM5 billion double tracking job from Gemas to Johor Bahru to a company from China is expected to firm up … George Kent/Malton;

376. Sources said Chinese banks were invited to tender for the block of shares in RHBCap that is to be put on the market by ADCB;

377. Integrax Bhd wants to revive its transshipment deal with Brazil's Vale International SA, following the resignation of its director and CEO;

378. Daya Materials supplies to various companies within the Petronas Chemical group. It is talking to a few parties on possible M&As to venture into the upstream O&G services sector. It has a strong shareholder in Tan Sri Rozali Ismail, the man behind Puncak Niaga Holdings Bhd;

379. Ramunia is eyeing some of UMW Holdings Bhd’s O&G assets. But it is not certain which assets Ramunia is looking at specifically. However, UMW official denied that this was the case;

380. A consortium consisting of Prism Crystal Enterprises Ltd and Tan Sri Dr Chen Lip Keong & group of companies together with the landowners Karambunai Corp and Petaling Tin would invest RM9.6 billion by 2020 to develop the KIRC. Questions still linger as to whether the resort will eventually feature a casino despite the company denying reports on the plans;

381. Mohd Badaruddin Masodi emerged as a substantial shareholder In Extol. He is linked to the Pahang royal family, is the developer for the Tanjong Agas Oil & Gas and Logistics Industrial Park land measuring 4,260 acres in Tanjong Agas, Pekan, Pahang;

382. L&G’s remaining 43 acres of freehold development land is in Sri Damansara, the jewel in the crown. L&G’s NBV for the land is carried at less than RM20 per

sq ft. comparison, freehold commercial land in Mutiara Damansara is now valued at more than RM400 psf. L&G had no borrowings and had cash of RM141.4 million as at Dec 31, 2010, with shareholders’ funds of RM248.2 million;

383. Equine Capital’s 750 acre Batu Kawan mixed development project, involving its associate company Abad Naluri Sdn Bhd is well positioned to benefit from the PDC plans for a 1400 acre industrial park;

384. YTL is “ready” for acquisitions and will focus on assets in the water, power, cement and transportation industries. Sources say YTL Corp may gain from proposals to build a high-speed rail network linking Kuala Lumpur and Singapore;

385. RHBCap said it has not been officially informed by ADCB, which owns a 25% stake, of the latter's intention to exit the banking group. Meanwhile Abu Dhabi Commercial Bank ADCB.AD’s CEO said it had hired Goldman Sachs and BOA-Merrill Lynch as advisors. A firm decision on the sale of the stake, valued at $1.4 billion, had yet to be made;

386. OSK plans to sell its DBE’s stake to another poultry. Potential buyers are said to be include companies such as QSR Brands and QL;

387. GBH & FCW have plans to develop their 30.59 acres of land. Considering its proximity to Mon;t Kiara and Sentul East along Jln Ipoh, the potential development could lead to a possible re rating of both companies when a development plan is finally unveiled;

388. Dufu’s move into the manufacture of medical components and other non-HDD components will take off in 4Q11 and expect earnings to grow more strongly from 2012 onwards;

389. Sources say GlaxoSmithKline Pharmaceuticals plc is eyeing a controlling equity stake in local generic drugs maker CCM Duopharma Biotech Bhd;

390. Petronas Dagangan Bhd is seeking to acquire assets to strengthen its retail network. The company is debt-free and has a cash-pile of RM1 billion;

391. Metro Kajang’s prospect as a property developer is getting brighter as the group could be one the key beneficiaries of the Sg Buloh-Kajang MRT line under the government’s Economic Transformation Programme;

392. YTLand has the biggest exposure to the potential MRT interchange at 66% of realisable net asset value via Sentul (119 acres), KL Sentral (five acres) and Bukit Bintang (5 acres);

393. A potential REIT exercise would help Boustead unlock the substantial value of its investment assets and, at the same time, raise funds for replenish its land bank. LTAT is widely rumoured to be close to clinching two major land privatisation deals in prime areas of Kuala Lumpur — 60 acres in Jalan Cochrane and the 245-acre Batu Cantonment army base on Jalan Ipoh;

394. PM would consider allowing ANZ, Australia's fourth largest bank, to raise its stake in AMMB (ANZ highligted it had approvals to increase to 26.2%). Market talk also said AMMB chairman Tan Sri Azman Hashim, who holds close to a 17% indirect stake in the bank, was looking to sell the stake. AMMB had no comment at this juncture … But Azman denied;

395. On plans by its major shareholder Australia & New Zealand Banking Group (ANZ) to raise its stake in AMMB, ANZ currently held 23.8%, but highlighted that it had approvals to increase its shareholding to 26.2%;

396. Datuk Allan Lim Kim Hua’s entry into Gefung was seen as heralding new era in the loss making marble and granite processor. Lim is also the executive deputy

chairman and a substantial shareholder of Sunrise Bhd, which has since been acquired by UEM Land Holdings Bhd;

397. WCT could recoup the provisions made on the Bakun dam but did not provide a timeframe. WCT remains confident of recouping these provisions (RM36mil) and another RM28mil booked in 2004 when the dam is handed over at end-2011. The dam is in the process of being impounded;

398. The latest contract for Alam Maritim is an indication that jobs are coming back for and its peers in the offshore marine support services sector;

399. Market speculation has it that the Century Software could be awarded a government contract worth Rm100 million in the near future. However, the company has already announced that it has submitted bids for several jobs worth about rm200 million;

400. If PI Corp has successfully overcome the troubles in Sudan and it will continue to prove to the sceptics that its business model is still resilient, it could resume its growth trajectory once again in the years to come;

401. Ramunia is one of the six licensed fabricators for Petronas. There would be opportunities for acquisitions within the LTH group. Ramunia had written to Petronas to express its interest to participate in marginal field projects;

402. CCB, China’s second largest lender, may submit a letter of application to BNM to start negotiations with EON CAP soon. Sources say CCB may offer a far more superior price than HK Bank’s of rm7.30 per EON Cap share;

403. UMZA Bhd stands a good chance of getting contract jobs from Petronas for oil recovery enhancement in domestic brown fields as well as idle fields. The total value of the contracts could be worth up to rm500 million;

404. Speculation that Ekuinas was considering acquiring a stake in CyPark. However it has not received any indication of interest from the fund. Speculation also that CyPark will win a sizeable chunk of the RM15.6 billion national solid waste management infrastructure as the government emphasised on solid waste management under the National Strategic Plan for Waste Management and related regulations/ initiatives;

405. Tradewinds (M) Bhd will trim its stake in Bernas to shed some debts. Meanwhile Bernas is sitting on a stockpile of rice that is growing in value due to the commodity’s uptrend on the international market;

406. Palette is close to securing a contract from TM to supply high speed broadband equipment for the latter's HSBB;

407. The listing of UMW’s oil and gas division was still on the cards as the division returns to profitability in 2011;

408. Reliance Pacific Bhd faces questions over the disposal of several of the company’s subsidiaries to Alpha Vantage Sdn Bhd, a company in which Reliance’s chairman Datuk Gan Eng Kwong and chief executive officer Datin Irene Tan are shareholders;

409. Speculation emergence of a major shareholder in the loss making company Mtronic. However, there was no announcement on new shareholders new shareholders in Mtronic;

410. MUIB’s unit Novimax (M) Sdn Bhd has received Bank Negara Malaysia's approval to start preliminary negotiations with US-based Liberty International Holdings Inc to dispose its shares in MCI;

411. UEM Land, Tebrau and Mulpha International Bhd are among Malaysian property companies that will benefit from a “re-pricing” of the land and property values in the southern Johor state and improving Malaysia-Singapore relations;

412. Speculation that Affin Bank is being eyed for a takeover by CIMB Bank but both parties denied;;

413. PM Najib said Guocoland (Malaysia) Bhd, the property arm of Hong Leong Group, will invest RM1.9 billion on a mixed development in Kuala Lumpur. The project will include offices, retail space, a hotel and apartments;

414. Speculation that Adventa could be a potential acquisition target by a healthcare firm based in the US … But Adventa denied;

415. Any positive developments in the HSBB project and more importantly is able to develop new export markets going forward could mean a potential re rating for Opcom;

416. EPIC has dismissed suggestions that the company will be taken private, following the sale of a 21.26 per cent stake by AZRB to Lembaga Tabung Amanah Warisan Negeri Terengganu;

417. Speculation that AHB is bringing in a financially strong white knight to implement the compensation scheme the next course of action that the minorities shareholders have in mind;

418. It remained unclear at this juncture what Abdul Jalil and Mohd Said’s plans are for Merge Energy;

419. Axiata is starting to see the contributions from its 29.6%-owned Singapore associate M1 Ltd pick up. M1, a telecommunications player;

420. SapRes has exited its auto business. The company revealed its intention to either look for new business or to expand its existing businesses to sustain its operation. The company’s cash pile stood at RM183 million with RM85.5 million.

421. Tony Fernandes (Airasia) denies there are any plan to buy a stake in British airline Virgin Atlantic;

422. DRB-Hicom is exploring the possibility of divesting its interests in insurers Uni.Asia Life Assurance Bhd and Uni.Asia General Insurance Bhd;

423. Olympia, a company under gaming and property magnate Tan Sri Yap Yong Seong, is seeking to put in a RM2.25 billion bid for Pan Malaysian Pools Sdn Bhd (PMP), the gaming arm of Tanjong plc. But the company has not been able to firm up a financing plan which is why it has not submitted an offer yet;

424. The Naza brothers resign their board memberships, reduce stakes in Jetson. Following the sale, Pavillion still owns 21.7%. MD of Jetson Datuk The is believed to have acquired the 7.2% stake disposed by the brothers;

425. Datuk Gan, the executive chairman of Technic Group Bhd, increased his indirect stake to 38.71%. Sources say there is no intention to take the company private. Gan is also substantial shareholder in SKP Resources with 70.99% stake;

426. It is learnt that a consortium – Oriental Peral Harbor Sdn Bhd – has submitted a preliminary proposal to the federal government to take over the Penang port. Oriental Pearl harbor’s directors are Datuk Rosli Abdul Latif and Datuk Mohd Ramli Abu Bakar. Sources familiar with the port business say that Oriental Pearl harbor is led by Datuk Siew ka Wei, who is partnering companies under the China Shipping Co Ltd. Siew is the major shareholder of Ancom Bhd, Ancom Logistics Bhd and Nylex;

427. Sources say SapCrest is acquiring oil and gas companies which include acquiring loss making oil and gas players such as Petra Perdana Bhd … But Denied;

428. Gamuda is keen to bid for Qatar’s USD$45 billion MRT project following its successful bid to host the FIFA World Cup finals in 2022;

429. DRB-Hicom was unaware of any plans by Tan Sri Syed Mokhtar Al Bukhary to take the auto-banking group private. It told Bursa Malaysia it was not aware of a plan by the tycoon to offer between RM2.20 and RM2.70 per share which he does not own.

430. Tamadam is said to be contemplating spinning off loss making warehousing business and privatizing its profitable food business, although management declined to comment;

431. Sources say Inch Kenneth mainstay is in plantations and tourism, has attracted some serious suitors for its 350 acre estate in Kajang, possibly including a government linked property developers;

432. Tunku Ya’acob, chairman of Mycron Steel Bhd, refuted the market rumour on the privatisation of Mycron. MIGB owns a 54.8% equity stake in Mycron;

433. Rumours that Stone Master would be involved in a merger and acquisition exercise with a foreign company. Stone Master produces marble and granite products;

434. CMSB’s cash pile grow to as much as RM881 million against RM485 million in total borrowings after disposing UBG, translating into net cash of RM395 million or RM1.20 per share. Speculation is rife that CMS may pay a generous special dividend to shareholders;

435. SILK Holdings Bhd is awaiting government approval to raise by 30 sen the toll rate at the Kajang Traffic Dispersal Ring Road. The present rate is RM1. Earlier speculation that SILK may want to spin of fits highway division to get better valuations for its oil and gas business;

436. Harrisons’ second and third largest shareholder has been gradually reducing his interest since May 2010 to 7.1%. The question now is who will emerge as a new shareholder. Will the existing major shareholder Bumi Raya further consolidate its holdings in the group?

437. Emas Kiara Industries Bhd has proposed to sell its core business, technical textiles manufacturing, for RM100 million cash to US-listed Royal Ten Cate N V. By doing that, the company will have no core activities going forward but sitting on a net cash pile of RM36.2 million or 42.7 sen per share;

438. TA’s lack of expansion in the stockbroking business - and the shift in focus towards property - may possibly be a prelude to the divestment of the former;

439. Satang new and exiting shareholder and AirAsia substantial shareholder Datuk Kamarudin Meranun and present a fresh regularisation plan to the authorities to uplift the PN17 status of Satang;

440. Apart from a special payout or capital distribution, there has been speculation that LFIB will be privatized. Such an exercise would further consolidate the Lion group’s structure;

441. Bursa Malaysia Bhd’s CEO said it is always open to exploring “collaborative initiatives” to help grow its business;

442. Goldman Sachs holds 135.17 million shares or 5.74% in Mulpha Intl. Mulpha International Bhd’s associate company FKP Property Group is touted as a possible takeover target by Stockland, a substantial shareholder of FKP … But Mulpha Denied;

443. FajaBaru is bidding for RM2 billion worth of building construction and Light Rail Transit-related infrastructure projects;

444. Sources say Tasek (part of Singapore listed HL Asia Ltd), which is re aligning its business portfolio to further diversify its downstream activities, is among several parties eyeing MTD ACPI Bhd’s precast business;

445. ARK Resources Bhd is closed to getting a RM100 million job to build a commercial development in Negri Sembilan. But the contract will only be firmed up if the company is able to complete its restructuring exercise within the next four months from Nov 2010;

446. Sources say a corporate exercise could be imminent. There is speculation that a possible general offer, sale of assets or a hefty dividend could be in the offing. Kluang Rubber Co (Malaya) Bhd is Kuchai major shareholder. Kluang holds about 42 per cent of Kuchai. Kuchai holds 26 per cent of Sungei Bagan Rubber Co (Malaya) Bhd;

447. Sources said that a casino is being propose for the Karambunai IR … But KBunai Denied. Up to Oct 2010, KBunai has no shareholding in the SPV, nor has it received any official notification from the government or signed any MoU or agreement with SPV to develop Karambunai yet. However, both management of KBunai and SPV have concrete, specific, clear time-line plans and commitments to the Malaysian government to attain the desired results under ETP as envisaged by the Government;

448. Linear saw the entry of white knight with appointment of three new directors, who are planning to put the company back on its feet again. A new director is Datuk Ling Keak Ming, Ling, a former director of Magnum Corporation Bhd from 2000 to 2007, is closely associated with the MWE Holdings group … But It Denied;

449. Sources say BKawan, biggest shareholder in KL Kepong, is a “compelling privatization target” and its shares could be worth RM18.02 each;

450. Glomac was keen to participate in the development of the over-3,000-acre plot in Sungai Buloh currently owned by RRIM;

451. Who acquired Loke’s equity interest in Bertam Alliance could be indicative of future corporate developments in company;

452. Sources say Syed Mokhtar Al-Bukhary (MMC) has written to the country’s government offering to buy 1,200 hectares of RRI land outside of KL;

453. Will Datuk Ooi Kee Liang make a difference and turn around Equator’s fortunes after he has emerged as the single largest shareholder in Equator Life Science Bhd”;

454. Speculation is that Landmarks’ flagship asset on Bintan island in Indonesia may be revived soon. The company officials confirms that the company is indeed resuming the project, but adds that it is too early to share details;

455. HELP is planning a secondary listing of its shares in Singapore to fund its expansion plans;

456. Market talk has it that cash-rich SKP may be taken private.457. Sources say Sarawak Energy has submitted its proposal to the Bakun

project’s owner Sarawak Hidro Sdn Bhd. Other bidders are 1MDB, Malton/QIA;458. Sources say Datuk Abdul Hamad Sepawi s believed to be closed to selling his

entire stake in Sarawak Plantation via subsidiary Cermat Ceria which held 30.35% stake;

459. Market talk that RGB International Bhd’s (formerly known as Dreamgate Corp Bhd) disposal of a 40% stake in Chateau de Bavet Club Co Ltd is imminent with the issue of a note to bondholders seeking approval for the sale. Discussion (for the sale) is still in progress and subject to finalisation. No timeline has been set;

460. MMC Corp Bhd has entered into a JV agreement with Zelan Bhd to bid for infrastructure projects under the 10MP. The JC company is named MMC Zelan Sdn Bhd (MMC holds 60% and 40 % held by Zelan;

461. Silver Bird’s rating outlook may be revised to stable if it is able to sustain improvement in its financial performance and also halt decline in its market share. Conversely, its ratings may be downgraded if its performance comes in below rating’s revised expectations, or if GMN contract exposes the group to additional risks that are not adequately addressed;

462. The Selangor state government is still studying the proposals submitted by the companies and are evaluating and figuring out the best business model for this project. It confirmed that I-Bhd would lead the Wessex Water I-Bhd group portion for the project;

463. BCorp holds an interest of 31.66% in TMC Life Sciences. It is uncertain if TMC Life Sciences still fits into this picture, especially with the emergence of the new shareholder. Should BCorp choose to divest its stake in TMC Life Sciences, would Lim then increase his stake in the company? The change in TMC Life controlling shareholder may lead to some spillover interest in StemLife Bhd. BCorp has a 31.66% stake in TMC Life Sciences and a 12.17% stake in StemLife;

464. The acquisition of YNHP shares by its major shareholders and directors could be a preclude to bigger corporate moves;

465. Delloyd is currently in discussions with SPNB on the possibility of manufacturing a lower decked long bus;

466. Mieco major shareholder BRDB was still in preliminary and exploratory discussions with a Chinese party on selling its stake in Mieco to the latter. BRDB would make the appropriate announcement;

467. Speculating Privatization Zelan But Deny in May 2008;468. A white knight may emerge for KKB. Sources say the company is planning to

diversify into the property and construction sector with the appointment of chin;469. UEM Group were no plans yet to re-list the company or raise capital but did

not rule out the possibility in future;470. Scomi Engineering Bhd is planning to propose a monorail system in Greater

KL to support the proposed MRT project under the 10MP. Scomi International is also eyeing a major monorail construction project in Chennai

State Of Global Economic Cycle (July 2012)Recession – Recovery – Growth/Expansion – Boom – Burst

Investment Strategy (July 2012): Defensive Neutral Aggressive (Domestic News-Flow From June 2012 onwards and Election Theme Play Amid Uncertainties Ahead – Europe’s Sovereign Debt Crisis, High Oil Prices & Inflationary Pressure, Slow US Growth Momentum While China Grapples With Inflationary Pressures and Slow Growth – Have Given Rise To Fears That Global Economy May Stall.

Sectors/Theme To Focus On (30 July – 04 Aug 2012): News-Flow Accumulation Stage and News-Flow Driven;

Stock Market Leading Performance Indicator (30 July – 04 Aug 2012)6 (0-3-Bearish 4-6-Neutral 7-10-Bullish)

The Risks

1. The Global Economic Recovery Is Precarious (Vulnerable To The Risk Of More Financial Shocks);

2. Divergent Growth Path of The Two Regions - A Slowdown In Advanced Economies And The Robust Growth In Emerging Markets – Is Posing A Dilemma For Macroeconomic Policymakers In Asia;

3. Threats Of Asset Bubbles In Asia (Huge Foreign Capital Inflow Of Liquidity);

4. Volatile Foreign Exchange Market (Currency War) – Competitive Devaluations & US Dollar/Yen Carry Trade (Destabilizing The Global Financial System & Trading Relationships);

5. Rising Commodities Prices & Threats Of Commodity Inflation;6. Inflation Threat In Emerging Ex-Japan Economies;7. Fear Of Double-Dip Recession In The US & Eurozone Economies;8. Deflation & Stagflation Threat In Developed Economies;9. Fear Of A US Dollar Crisis;10. Unwinding Of US Dollar/Yen Carry Trade When US Starts To Normalise

Rates (Destabilizing The Global Financial System & The Global Economy);11. Global Imbalances, Threat Of Trade & Currency War and Protectionism

(Destabilizing The Global Economy);12. Contagion Effects Of Eurozone Debts Crisis on Other European Sovereign

Debt;13. US & Europe Debt Crisis: Further Downgrade Of Credit Rating By Rating

Agencies

Black Swan Events Or (Unpredictable) Risks/Surprises

1. Terrorist Attack -2. Oil Supply Disruptions - 3. A Pandemic Disease - 4. Geomagnetic Storms -5. Major Social And Geopolitical Upheaval6. Financial Shock – Eurozone Debt Crisis & Disintegrwtion Of EU Bloc Countries

Market Commentaries

The local stock market appears to be set for more volatility in the second half of 2012 as the melange of weak overseas economic conditions and looming local polls continues to have a huge impact on investor and trader sentiment.

A fall below the 1,620-point level would signal the end of the upward wave from the 1,526.60-point level recorded back on May 18 2012. For now (27 July 2012), it is quite clear that the market is in a critical condition and may slip into a coma anytime..

Still, market experts are keeping their fingers crossed.

The Case For The Optimistic Outlook …

For one, from a fundamental point of view, another round of quantitative easing in the United States in order to stimulate slowing growth could possibly happen, enabling a healthy flow of funds into global markets including in Malaysia.

In fact, there is still plenty of liquidity sloshing around as a result of earlier stimulus packages by global central banks to pump up ailing economies. This has enabled foreigners to remain net buyers of Malaysian stocks for eight straight months up to May 2012

Granted, foreign money can leave a country as fast as it comes in, especially in a negative economic environment.

Global liquidity rush aside, locally, the usual suspects comprising feel-good factors, if not some uncertainty attached to the general election (GE) and the Economic Transformation Programme should continue to help hopeful investors find some solace.

The market here has its own agenda.

Another anticipated listing is that of Intergrated Healthcare Holdings Sdn Bhd, which will be listed on the Kuala Lumpur and Singapore stock exchanges on 25 July 2012.Despite the gloomy economic outlook around the world and failing Western economies, the slate of initial public offerings (IPOs) set to be listed on Bursa Malaysia may lend crucial support for the bulls in the second half of 2012.

The stage was set for the listing of several high-profile heavyweight IPOs which could further enhance foreign investors' perception of the country's capital markets.

These IPOs will attract a lot of attention from both local and also foreign investors. They (these IPOs) are likely to also lend support and keep the local stock market buoyant relative to other countries in these uncertain times.

The high number of IPOs notably from big companies is certainly a good development for the country's capital markets. We have also beaten Hong Kong in terms of the amount of IPO issuances in the first half of 2012.

To recap, there are at least five heavyweight IPOs slated to be listed in the second half 2012. These include IHH Healthcare Bhd, the biggest healthcare services provider in Asia; AirAsia X Sdn Bhd; Astro All Asia Networks Plc; Malakoff Bhd and IGB real estate investment trust (REIT). Another company which is pondering a REIT is KLCC Property Holdings Bhd

Most of these IPOs were yielding assets operating in matured markets. High yielding companies were high in demand in June 2012) given the backdrop of uncertainties around the world with the European Union debt crisis, impending decision by the United States whether or not to raise it debt ceiling and China's slowing economy that might have bottomed out in the second quarter 2012.

The Case For The Pessimistic Outlook …

Challenges remain plentiful from the wider economic perspective.

For starters, US economic data (May 2012-July 2012) comprising weaker retail sales and lower job growth are pointing towards a slowing economy.

Retail sales in the world's largest economy, fell for the third consecutive month in June. 2012 Although a marginal 0.5%, the United States has not had three consecutive falls since the height of the financial crisis of 2008.

Companies created an average of just 75,000 jobs per month in the April to June 2012 quarter, which is reportedly a third of the monthly job growth in the quarter before it.

On top of these, the coming presidential elections as well as the fiscal cliff where a host of tax will be increased and automatic spending cuts kick in scheduled for the end of 2012, are also threatening to post more uncertainties to the US economic growth trend.

Over in the world's second largest economy, China, indicators are also pointing to a softer growth trend, as evident by its central bank's action to cut benchmark lending rates for two consecutive months in June 2012 and July 2012 after four years of holding the rates steady. By lowering borrowing costs for consumers, the government hopes to stimulate spending and economic activity amid lower inflation.

In the case of the now infamous, prolonged European Union (EU) debt crisis, experts are saying that the countries are likely to go through a recession although major central banks are reportedly in a coordinated effort to boost liquidity in the ailing bloc.This will further complicate efforts to reduce the debt loads plaguing the governments.

The short and long of it is will there be a resolution for the EU debt crisis will it end in a number of countries breaking away or will it all end happily ever after? Will China's economy maintain its growth rate and will the US economy accelerate, decelerate or stand still?

China grew by 7.6% in the second quarter 2012, from 8.1% in the quarter earlier while the US economy expanded at a pace of 1.9% during the first quarter of 2012.

The main challenges for the second half of 2012 include a possible full blowout of the EU debt crisis due to political stalemate and/or social unrests on the back of high unemployment caused by austerity drives.

Continuous weakness in major economies such as the United States, China and India may also post a major threat to emerging markets which are highly dependent on exports.

Locally, the GE outcome will be the focus of the investing community.

The local market may continue its mild uptrend (from Aug 2012), at least for the immediate term, but this time it faces more uncertainties as the market is pricier now (end July 2012) compared to six months ago.

Trading at a price/earnings (PE) ratio of over 15 times, the local bourse is more expensive than most of its counterparts which trade at a PE of 12 to 13 times in general.

That said one should be holding “more cash” to capitalise on buying opportunities, post GE.

Technical Analysis

After triggering a short-term sell at the top on last Monday, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index fell rapidly to end at the neutral area last Friday.

Elsewhere, the 14-day relative strength index retraced from the overbought area to the 41-point level on last Thursday before pausing.

Meanwhile, the daily moving-average convergence/divergence (MACD) histogram continued to expand negatively against the daily signal line after flashing a sell on last Tuesday.Weekly indicators were weakening, with the weekly slow-stochastic momentum index issuing an unconfirmed sell signal at the overbought territory and the upward momentum of the weekly MACD slowing.

A mild correction of the local bourse after setting a fresh record of 1,647.94 on July 19 2012 turned ugly, with sellers turning more aggressive the past week.

Based on the daily bar chart, the bulls first slipped under the three-month-old ascending line on last Tuesday. Another negative move tripping below the 14-day SMA came about the next day, followed by the violation of the lower 21-day SMA on last Thursday. Theoretically, the multiple breakdown suggests the upward momentum from the 1,526.60-point level on May 18 2012 has ended.

Going forward, the key index is in great danger of sinking towards the 50-day SMA of 1,596 points and the 100-day SMA of 1,590 points, where a breach of the two crucial support floors would have a significant negative impact on the market.

Technically, indicators are deteriorating, implying the local bourse may stay in correction mode in the immediate term, unless buyers come to the rescue.

Initial hurdle is expected at 1,633 points. Higher resistance is resting at 1,640 points, followed by the all-time high of 1,647.94.