Published September 23, 2008
M'sia IPO scene slowest in 20 yrs
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(KUALA LUMPUR) Malaysia is probably headed for its slowest initial public offering (IPO) market in almost 20 years, as a weak stock market takes its toll on fund-raising efforts, Malaysia's Business Times reported.
Eighteen companies carried out IPOs so far this year. If the numbers stay at current levels, it would be the slowest since 1989 when 13 companies raised funds from initial share sales, Bursa Malaysia data showed.
The stock market has lost 29 per cent so far this year, the third worst performer among South-east Asian markets.
Malaysia is not alone as global markets have faltered in reaction to the demise of major US financial institutions such as Lehman Brothers and Merrill Lynch.
'It has been slow this year. Even some of the big boys are not doing a single IPO so far this year,' said an investment bank executive.
Bursa Malaysia had targeted for some 30 IPOs this year but had also conceded as far back as May that this is not likely to be reached.
However, there are companies applying for listing approvals from the Securities Commission, a source from a regulatory body said.
'The important thing is for these companies to get approvals first. Then, they can delay the listing if they want to,' the source said.
This is crucial because if a company delays its listing request submission, its financial numbers could change and affect its eligibility.
One major IPO that is eagerly awaited is UMW Holdings Bhd's oil and gas business. The unit, which would have a market value upwards of RM1.5 billion (S$638.5 million), was approved for an IPO on March 31 this year.
UMW was supposed to list the business by Sept 30, but won a six-month extension. Its new deadline is March 31 next year.
A weak demand for IPOs is not just bad for the companies looking to raise funds, but could also affect investment banks that underwrite the deals.
Typically, investment banks provide insurance for companies by agreeing to buy shares that are not taken up by investors in IPOs.
In a weak market, banks could end up holding the unsubscribed shares, becoming shareholders of the IPO companies.
One recent case was Vastalux Energy Bhd, an oil and gas services provider. Only 6 per cent of its public issue was taken up, leaving the rest for its underwriters.
Vastalux had signed underwriting deals with KAF Investment Bank Bhd and TA Securities Holdings Bhd.
Wednesday, 24 September 2008
Published September 23, 2008
Ruling coalition faces oblivion without reform: minister
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(KUALA LUMPUR) A top Malaysian minister warned yesterday that the ruling party and the coalition it has led for half a century faces oblivion at the next elections if it fails to reform.
The Barisan Nasional coalition, helmed by the ruling United Malays National Organisation (Umno), has floundered since March elections which saw a resurgent opposition score unprecedented victories.
Trade Minister Muhyiddin Yassin, an Umno vice- president who has called for Premier Abdullah Ahmad Badawi to stand down before his planned departure in 2010, said the party must address internal conflicts and the opposition threat.
'It is a situation which is very serious. It is of concern not only to Umno members but to the country at large, to the Barisan Nasional and people who care about what is happening to the government,' he told a press conference here.
'If nothing happens, then I am not too sure if the lifespan of Barisan Nasional, of Umno in particular, can sustain beyond the year 2013,' he said, referring to the scheduled date of the next general election.
Mr Abdullah has defied calls to quit despite being confronted by rare criticism from within his Cabinet, as well as a challenge from opposition leader Anwar Ibrahim, who says he has enough defectors to topple the government.
Mr Muhyiddin made another attack on Mr Abdullah's plan to hand over to his deputy Najib Razak, saying Umno members should decide on the future leadership in internal elections that begin next month.
'What has been agreed upon is only a convention. There is no such provision in the constitution,' he said. 'We don't elect leaders unconstitutionally; we elect leaders based on procedures.'
If Mr Abdullah steps down as premier, Mr Najib is widely tipped to replace him, with Mr Muhyiddin as his new deputy. -- AFP
Ruling coalition faces oblivion without reform: minister
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(KUALA LUMPUR) A top Malaysian minister warned yesterday that the ruling party and the coalition it has led for half a century faces oblivion at the next elections if it fails to reform.
The Barisan Nasional coalition, helmed by the ruling United Malays National Organisation (Umno), has floundered since March elections which saw a resurgent opposition score unprecedented victories.
Trade Minister Muhyiddin Yassin, an Umno vice- president who has called for Premier Abdullah Ahmad Badawi to stand down before his planned departure in 2010, said the party must address internal conflicts and the opposition threat.
'It is a situation which is very serious. It is of concern not only to Umno members but to the country at large, to the Barisan Nasional and people who care about what is happening to the government,' he told a press conference here.
'If nothing happens, then I am not too sure if the lifespan of Barisan Nasional, of Umno in particular, can sustain beyond the year 2013,' he said, referring to the scheduled date of the next general election.
Mr Abdullah has defied calls to quit despite being confronted by rare criticism from within his Cabinet, as well as a challenge from opposition leader Anwar Ibrahim, who says he has enough defectors to topple the government.
Mr Muhyiddin made another attack on Mr Abdullah's plan to hand over to his deputy Najib Razak, saying Umno members should decide on the future leadership in internal elections that begin next month.
'What has been agreed upon is only a convention. There is no such provision in the constitution,' he said. 'We don't elect leaders unconstitutionally; we elect leaders based on procedures.'
If Mr Abdullah steps down as premier, Mr Najib is widely tipped to replace him, with Mr Muhyiddin as his new deputy. -- AFP
Published September 23, 2008
Abdullah may seek re-election as Umno chief
Some feel he may be humiliated by a lack of nominations
By S JAYASANKARAN
IN KUALA LUMPUR
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MUCH to the surprise of political pundits here, Malaysia's embattled Prime Minister Abdullah Ahmad Badawi is likely to seek re-election as president of the United Malays National Organisation (Umno) - the position that carries the prime ministership.
Party officials say Mr Abdullah, 67, made the decision at the weekend after huddling with party allies and family members including his son-in-law Khairy Jamaluddin, the deputy chief of Umno's youth wing.
'OK, we won't get that many nominations,' an Abdullah ally told BT. 'But I think we should be able to get 70 to 80 with some work.' A challenger for the presidency needs at least 58 nominations from the party's 191 divisions nationwide.
But not all Umno officials think that Mr Abdullah can pull off re-election. At a meeting of Umno state liaison chiefs last Thursday, at least two of his loyalists - Johor Chief Minister Ghani Othman and his Pahang counterpart Adnan Yaakub - told him they can no longer control their divisions, which are likely not to nominate him.
And at an Umno Supreme Council meeting later, at least four senior members suggested in strong language that Mr Abdullah not seek re-election lest he be humiliated by a lack of nominations.
The meeting ended abruptly after Deputy Prime Minister Najib Razak said he would settle the leadership transition in talks with Mr Abdullah.
The stakes are huge in a party that operates on a winner-take-all basis. If Mr Abdullah pulls out now, many of his appointees are likely to lose their positions and influence.
The risk of humiliation for Mr Abdullah is real, according to some party officials. Umno divisions begin nominating candidates for the December party polls on Oct 9, and as many as 20 could announce their candidates within a couple of days.
The following week could see another 50 meetings, by which time a trend would be clear. 'The estimate is that the Prime Minister may get only about 40 nominations,' said an Umno official. 'That is why we do not want him to seek re-election.'
Some officials are so sure Mr Abdullah will not contest that attention within the party has begun shifting to a possible contest for the deputy presidency, now held by Mr Najib.
According to insiders, contenders include International Trade Minister Muhyiddin Yassin, Malacca Chief Minister Ali Rustam, Minister in the Prime Minister's Department Zahid Zamidi and former Negri Sembilan chief minister Isa Samad.
Of the four, the favourite could be Mr Muhyiddin, who was one of the first Umno leaders to call for Mr Abdullah's resignation. It is believed that former deputy premier Musa Hitam is leading a behind-the-scenes campaign to get the Najib-Muhyiddin team endorsed unopposed.
Abdullah may seek re-election as Umno chief
Some feel he may be humiliated by a lack of nominations
By S JAYASANKARAN
IN KUALA LUMPUR
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MUCH to the surprise of political pundits here, Malaysia's embattled Prime Minister Abdullah Ahmad Badawi is likely to seek re-election as president of the United Malays National Organisation (Umno) - the position that carries the prime ministership.
Party officials say Mr Abdullah, 67, made the decision at the weekend after huddling with party allies and family members including his son-in-law Khairy Jamaluddin, the deputy chief of Umno's youth wing.
'OK, we won't get that many nominations,' an Abdullah ally told BT. 'But I think we should be able to get 70 to 80 with some work.' A challenger for the presidency needs at least 58 nominations from the party's 191 divisions nationwide.
But not all Umno officials think that Mr Abdullah can pull off re-election. At a meeting of Umno state liaison chiefs last Thursday, at least two of his loyalists - Johor Chief Minister Ghani Othman and his Pahang counterpart Adnan Yaakub - told him they can no longer control their divisions, which are likely not to nominate him.
And at an Umno Supreme Council meeting later, at least four senior members suggested in strong language that Mr Abdullah not seek re-election lest he be humiliated by a lack of nominations.
The meeting ended abruptly after Deputy Prime Minister Najib Razak said he would settle the leadership transition in talks with Mr Abdullah.
The stakes are huge in a party that operates on a winner-take-all basis. If Mr Abdullah pulls out now, many of his appointees are likely to lose their positions and influence.
The risk of humiliation for Mr Abdullah is real, according to some party officials. Umno divisions begin nominating candidates for the December party polls on Oct 9, and as many as 20 could announce their candidates within a couple of days.
The following week could see another 50 meetings, by which time a trend would be clear. 'The estimate is that the Prime Minister may get only about 40 nominations,' said an Umno official. 'That is why we do not want him to seek re-election.'
Some officials are so sure Mr Abdullah will not contest that attention within the party has begun shifting to a possible contest for the deputy presidency, now held by Mr Najib.
According to insiders, contenders include International Trade Minister Muhyiddin Yassin, Malacca Chief Minister Ali Rustam, Minister in the Prime Minister's Department Zahid Zamidi and former Negri Sembilan chief minister Isa Samad.
Of the four, the favourite could be Mr Muhyiddin, who was one of the first Umno leaders to call for Mr Abdullah's resignation. It is believed that former deputy premier Musa Hitam is leading a behind-the-scenes campaign to get the Najib-Muhyiddin team endorsed unopposed.
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