Published October 6, 2008
AirAsia non-committal on report that it's delisting
Email this article
Print article
Feedback
(KUALA LUMPUR) AirAsia, the region's largest low-cost carrier, said on Saturday that it is exploring 'various options', following a newspaper report that it may soon be privatised.
'We have continuously been exploring various options at both shareholders and company level,' Kamarudin Meranum, group deputy chief executive officer told AFP. 'There is nothing to confirm at the moment,' he said in response to the report in business newspaper The Edge.
'(AirAsia) has generated a lot of interest but there has always been scepticism about its business model from investors looking at short-term returns,' the weekly cited an unnamed source as saying.
Mr Kamarudin said that the management was focused on ensuring the carrier, a listed company, remained profitable during challenging times. 'We are the controlling shareholders. We still feel the company has a lot of potential. We are a fairly young carrier,' he said.
AirAsia had room to expand and was concentrating on building infrastructure to ensure growth and profit, he added. But Mr Kamarudin said that since AirAsia was listed, 'we must be cautious of any statements we make in relation to any development within the company'.
AirAsia's controlling shareholder is Tune Air Sdn Bhd, which held 30.7 per cent of its shares as at end-March this year.
Tune Air's shareholders are AirAsia chief executive officer Tony Fernandes and Mr Kamarudin himself.
Global airlines are expected to post a combined loss of US$5.2 billion in 2008 on a 'toxic' combination of high oil prices and falling demand, the International Air Transport Association (Iata) warned last month.
Passenger load factors - the ratio of arriving and departing passengers to arriving and departing seats - fell to 79.2 per cent from the 81 per cent recorded over the same period last year as capacity growth outpaced demand, it said.
Since the beginning of the year, AirAsia shares have lost 23 per cent while the Kuala Lumpur Composite Index shed 30 per cent. -- AFP
Tuesday, 7 October 2008
Published October 6, 2008
MALAYSIA INSIGHT
Keen fight likely for Umno V-P
Analysts expect it to boil down to a contest between ministers Muhyiddin and Zahid
By S JAYASANKARAN
KL CORRESPONDENT
Email this article
Print article
Feedback
ON or just before Thursday, Prime Minister Abdullah Ahmad Badawi, 67, will announce that he will not seek re-election for the presidency of the United Malays National Organisation (Umno), Malaysia's dominant political party.
That much is self-evident because at least three candidates have announced plans to contest the deputy presidency in the belief that Mr Abdullah will hand over the presidency to Umno deputy president Najib Razak, 55, when Umno holds its triennial polls in March next year - leaving the deputy's post vacant. By convention, Umno's deputy president also assumes the post of deputy prime minister.
Mr Abdullah has remained silent all this time - fuelling talk among some of his allies that he is still contemplating a run for the presidency. But that is wholly unlikely as he could get humiliated in the process. Running for the presidency requires a minimum of 58 nominations from Umno's 191 divisions, but that could be a big task for the embattled premier given the current mood of disquiet among the party's rank and file.
And so history will repeat itself. Like Tunku Abdul Rahman before him in 1970, Mr Abdullah will remain prime minister and party president until he opens the Umno assembly in March, after which he will depart from the Umno meeting as Private Citizen Abdullah.
With that, all eyes will shift to the transition. Mr Najib is widely expected to win the presidency - perhaps even unopposed. Although former finance minister Tengku Razaleigh Hamzah, 71, has vowed to contest the presidency, it isn't clear if he will get the requisite nominations.
Mr Abdullah's exit could leave some casualties in his wake. His son-in-law Khairy Jamaluddin is the current deputy Umno Youth chief and wants to move up. Standing in his way are former Selangor chief minister Khir Toyo and Mukhriz Mahathir, who are also bidding for the post of Umno Youth head. Of the three, Mr Mukhriz, son of the almost-revered former prime minister Mahathir Mohamad, could hold the edge because, in the current climate, Mr Khairy's ties to Mr Abdullah could prove to be a liability.
The Umno deputy presidency will be keenly fought, although qualifying candidates need a minimum of 38 nominations each. As many as six people are likely to offer themselves. Of the six, three have already done so - Minister of Religious Affairs Zahid Hamidi, Nur Jazlan Mohamad, an Umno division chief in Johor, and Ali Rustam, the Chief Minister of Malacca.
Meanwhile, International Trade Minister Muhyiddin Yassin, Umno information chief Mohamad Mohamad Taib and Isa Samad, the former chief minister of Negri Sembilan, are also expected to join the fray after Mr Abdullah announces his decision. For all that number, most analysts expect the fight to boil down to a contest between Mr Muhyiddin, 61, and Mr Zahid, 51. Mr Muhyiddin is the favourite because he was the first Umno leader to blow the whistle on Mr Abdullah, urging him to step down almost immediately after the March 8 general election.
Mr Zahid is a former Umno Youth leader who retains a formidable party network at rank-and-file levels. He was also a former political secretary to Mr Najib and some of Mr Abdullah's allies, who dislike Mr Muhyiddin because of his 'insubordination', have put it about that Mr Najib would prefer Mr Zahid as his deputy rather than the dour-faced Mr Muhyiddin.
There's no doubt whoever Mr Najib prefers may win. But some of Mr Najib's allies insist he will remain neutral. The surprise might come from Dr Mahathir when he makes clear his choice which, going by his previous hints, could be Mr Muhyiddin. But it's early days yet. There is still Mr Abdullah's long goodbye to go - all six months of it.
MALAYSIA INSIGHT
Keen fight likely for Umno V-P
Analysts expect it to boil down to a contest between ministers Muhyiddin and Zahid
By S JAYASANKARAN
KL CORRESPONDENT
Email this article
Print article
Feedback
ON or just before Thursday, Prime Minister Abdullah Ahmad Badawi, 67, will announce that he will not seek re-election for the presidency of the United Malays National Organisation (Umno), Malaysia's dominant political party.
That much is self-evident because at least three candidates have announced plans to contest the deputy presidency in the belief that Mr Abdullah will hand over the presidency to Umno deputy president Najib Razak, 55, when Umno holds its triennial polls in March next year - leaving the deputy's post vacant. By convention, Umno's deputy president also assumes the post of deputy prime minister.
Mr Abdullah has remained silent all this time - fuelling talk among some of his allies that he is still contemplating a run for the presidency. But that is wholly unlikely as he could get humiliated in the process. Running for the presidency requires a minimum of 58 nominations from Umno's 191 divisions, but that could be a big task for the embattled premier given the current mood of disquiet among the party's rank and file.
And so history will repeat itself. Like Tunku Abdul Rahman before him in 1970, Mr Abdullah will remain prime minister and party president until he opens the Umno assembly in March, after which he will depart from the Umno meeting as Private Citizen Abdullah.
With that, all eyes will shift to the transition. Mr Najib is widely expected to win the presidency - perhaps even unopposed. Although former finance minister Tengku Razaleigh Hamzah, 71, has vowed to contest the presidency, it isn't clear if he will get the requisite nominations.
Mr Abdullah's exit could leave some casualties in his wake. His son-in-law Khairy Jamaluddin is the current deputy Umno Youth chief and wants to move up. Standing in his way are former Selangor chief minister Khir Toyo and Mukhriz Mahathir, who are also bidding for the post of Umno Youth head. Of the three, Mr Mukhriz, son of the almost-revered former prime minister Mahathir Mohamad, could hold the edge because, in the current climate, Mr Khairy's ties to Mr Abdullah could prove to be a liability.
The Umno deputy presidency will be keenly fought, although qualifying candidates need a minimum of 38 nominations each. As many as six people are likely to offer themselves. Of the six, three have already done so - Minister of Religious Affairs Zahid Hamidi, Nur Jazlan Mohamad, an Umno division chief in Johor, and Ali Rustam, the Chief Minister of Malacca.
Meanwhile, International Trade Minister Muhyiddin Yassin, Umno information chief Mohamad Mohamad Taib and Isa Samad, the former chief minister of Negri Sembilan, are also expected to join the fray after Mr Abdullah announces his decision. For all that number, most analysts expect the fight to boil down to a contest between Mr Muhyiddin, 61, and Mr Zahid, 51. Mr Muhyiddin is the favourite because he was the first Umno leader to blow the whistle on Mr Abdullah, urging him to step down almost immediately after the March 8 general election.
Mr Zahid is a former Umno Youth leader who retains a formidable party network at rank-and-file levels. He was also a former political secretary to Mr Najib and some of Mr Abdullah's allies, who dislike Mr Muhyiddin because of his 'insubordination', have put it about that Mr Najib would prefer Mr Zahid as his deputy rather than the dour-faced Mr Muhyiddin.
There's no doubt whoever Mr Najib prefers may win. But some of Mr Najib's allies insist he will remain neutral. The surprise might come from Dr Mahathir when he makes clear his choice which, going by his previous hints, could be Mr Muhyiddin. But it's early days yet. There is still Mr Abdullah's long goodbye to go - all six months of it.
Sunday, 5 October 2008
Published October 4, 2008
SGX board stemmed investment loss: CEO
Board members objected to SGX management's decision to continue investing some $150 million in hedge funds
By JAMIE LEE
Email this article
Print article
Feedback
(Singapore)
A $150 million Singapore Exchange (SGX) investment in hedge funds could have been wiped out by today's financial crisis if not for the board's intervention, SGX chief executive Hsieh Fu Hua said at the company's annual general meeting yesterday.
STANDING FIRM
The sound advice from the board was proof that SGX needed strong directors in turbulent times, rather than cut back on directors' fees to save costs, MrHsieh told shareholders
He raised the issue after some shareholders questioned a proposed 40 per cent hike in directors' fees, which was eventually passed. The investors asked whether it was appropriate to raise the fees now, when the capital markets are expected to fare badly because of the credit crisis.
In August 2004, SGX pumped $150 million into a market-neutral funds portfolio, which returned $131 million in redemption proceeds this fiscal year 2008 - 12.7 per cent less than the principal.
Such funds are aimed at helping to 'neutralise' the effect of market movements by matching long and short equity positions in different stocks.
SGX management wanted to continue investing in such funds at the end of a three-year investment mandate in mid-2007, but the idea was shot down by board members, who said the company should liquidate the fund instead.
'The board stood strongly against management' on this issue, said Mr Hsieh. SGX management obliged and liquidated the portfolio from July 2007 - the start of financial year 2008 - to December 2007.
The sound advice from the board was proof that SGX needed strong directors in turbulent times, rather than cut back on directors' fees to save costs, Mr Hsieh told shareholders.
SGX chairman JY Pillay also said directors' rates had to be raised to 'a more competitive level' to attract more talent. 'I don't think we are rewarding them too handsomely at all,' he said, pointing out the fees were equivalent to just 0.22 per cent of full-year 2008 net profit.
SGX raised total directors' fees to $1.07 million. The basic fee for each non-executive director has been upped to $55,000, from $40,000 in fiscal year 2007. Audit committee chairman Lee Hsien Yang - who is also the chairman of listed conglomerate Fraser and Neave - will receive $30,000, up 50 per cent from $20,000 the previous year.
Mr Hsieh assured shareholders at the meeting that the bourse will remain profitable, and that the variable bonus component for staff will help mitigate costs.
He told reporters on the sidelines of the shareholders' meeting that the curbs relating to naked short-selling are expected to 'remain in place for a long time to come'. But he said it has 'not been our philosophy' to ban short-selling completely.
SGX board stemmed investment loss: CEO
Board members objected to SGX management's decision to continue investing some $150 million in hedge funds
By JAMIE LEE
Email this article
Print article
Feedback
(Singapore)
A $150 million Singapore Exchange (SGX) investment in hedge funds could have been wiped out by today's financial crisis if not for the board's intervention, SGX chief executive Hsieh Fu Hua said at the company's annual general meeting yesterday.
STANDING FIRM
The sound advice from the board was proof that SGX needed strong directors in turbulent times, rather than cut back on directors' fees to save costs, MrHsieh told shareholders
He raised the issue after some shareholders questioned a proposed 40 per cent hike in directors' fees, which was eventually passed. The investors asked whether it was appropriate to raise the fees now, when the capital markets are expected to fare badly because of the credit crisis.
In August 2004, SGX pumped $150 million into a market-neutral funds portfolio, which returned $131 million in redemption proceeds this fiscal year 2008 - 12.7 per cent less than the principal.
Such funds are aimed at helping to 'neutralise' the effect of market movements by matching long and short equity positions in different stocks.
SGX management wanted to continue investing in such funds at the end of a three-year investment mandate in mid-2007, but the idea was shot down by board members, who said the company should liquidate the fund instead.
'The board stood strongly against management' on this issue, said Mr Hsieh. SGX management obliged and liquidated the portfolio from July 2007 - the start of financial year 2008 - to December 2007.
The sound advice from the board was proof that SGX needed strong directors in turbulent times, rather than cut back on directors' fees to save costs, Mr Hsieh told shareholders.
SGX chairman JY Pillay also said directors' rates had to be raised to 'a more competitive level' to attract more talent. 'I don't think we are rewarding them too handsomely at all,' he said, pointing out the fees were equivalent to just 0.22 per cent of full-year 2008 net profit.
SGX raised total directors' fees to $1.07 million. The basic fee for each non-executive director has been upped to $55,000, from $40,000 in fiscal year 2007. Audit committee chairman Lee Hsien Yang - who is also the chairman of listed conglomerate Fraser and Neave - will receive $30,000, up 50 per cent from $20,000 the previous year.
Mr Hsieh assured shareholders at the meeting that the bourse will remain profitable, and that the variable bonus component for staff will help mitigate costs.
He told reporters on the sidelines of the shareholders' meeting that the curbs relating to naked short-selling are expected to 'remain in place for a long time to come'. But he said it has 'not been our philosophy' to ban short-selling completely.
Subscribe to:
Posts (Atom)
