EPF reports 9.2% rise in investment income

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EPF reports 9.2% rise in investment income

ASEAN+ June 02, 2018 01:00

By THE STAR
ASIA NEWS NETOWRK
KUALA LUMPUR

MALAYSIA’S Employees Provident Fund (EPF) has reported a 9.2 per cent increase in quarterly total investment income of 12.88 billion ringgit for the first quarter ended March 31, 2018, with equities accounting for nearly 62 per cent but it remained cautious for the year due to increased global trade tensions, weaknesses in key emerging countries.

It said yesterday that the investment income was an improvement from the 11.79 billion ringgit year ago.

In the first quarter, equities accounted for 41.59 per cent of the EPF’s total investment assets and contributed 7.93 billion ringgit, representing 61.58 per cent of total investment income for the quarter.

EPF chief executive officer Datuk Shahril Ridza Ridzuan said: “Despite developed markets experiencing a decline in the first quarter, following higher-than-anticipated inflation in the US, the EPF has managed to record consistent performance in the quarter, driven by domestic and Asean markets, which recorded positive growth.

“Coupled with diversification into various markets, geographies and sectors, we have been able to cushion the decline in developed market equities, and this has resulted in consistent performance to our overall portfolio with domestic equities emerging as an outperformer.”

A total of 50.53 per cent of EPF’s investment assets were in fixed income instruments, which continue to provide consistent and stable income.

The first quarter saw fixed income investments record an income of 4.76 billion ringgit, equivalent to 36.99 per cent of the quarterly investment income.

Income from Malaysian Government Securities (MGS) & Equivalent in Q1 2018 increased to 2.24 billion ringgit.

Loans and Bonds generated an investment income of 2.5 billion ringgit while investments in Money Market Instruments, which represented 2.91 per cent of the total investment assets, contributed 292.91 million ringgit to the investment income.

However, real estate & infrastructure recorded negative investment income at 107.38 million ringgit.

The EPF said this was primarily caused by the weakening of US dollar against other major currencies, including the Ringgit, which impacted valuations on the investment.

The negative investment income recorded for the asset class is, however, expected to be offset by inflow of investment income in the coming quarters.

The value of EPF investment assets reached 814.38 billion ringgit, a 0.53 per cent or 4.25 billion ringgit increase, from December 31, 2017. Out of the total investment asset, 321.05 billion ringgit , or 39.42 per cent, were in Shariah-compliant investment while the balance were invested in the conventional portfolio.

“A total of 1.22 billion ringgit out of the 12.88 billion ringgit total gross investment income was generated for Simpanan Shariah while 11.65 billion ringgit for Simpanan Konvensional,” it said.

The EPF said Simpanan Shariah derives its income solely from its portion of the Shariah assets while income for Simpanan Konvensional is generated by its share of both Shariah and conventional assets.

Dream fades as Indonesia seeks stability

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Dream fades as Indonesia seeks stability

ASEAN+ June 02, 2018 01:00

By THE JAKARTA POST
ASIA NEWS NETWORK
JAKARTA

INDONESIA has now all but given up on the economic growth target set by President Joko Widodo when he swept to power four years ago. Stability is now the priority amid a market selloff that’s already prompted two interest-rate hikes, with more likely to come.

Jokowi came into office promising to deliver annual gains of 7 per cent by the time his first term was done. He’s now preparing to seek re-election in a race set to kick off in September, having missed his goal by a wide margin.

The economy may grow as much as 5.8 per cent next year, Finance Minister Sri Mulyani Indrawati told lawmakers on Thursday -that would still be the fastest pace of expansion since 2013.

It’s a sizable downgrade from August, when the government forecast growth of as much as 6.5 per cent in 2019.

“In the short run, economic stability must be sought first instead of just pursuing growth,” Indrawati told the parliament. “That way, the government’s policy mix will be able to give optimum contribution in boosting economic growth in mid-term and long-term.”

With interest rates rising in the US and the dollar gaining strength, Indonesian fiscal and monetary authorities have gone on the defensive and sought to halt a rout in the currency. That’s seen Bank Indonesia go from easing monetary policy eight times in two years to raising its key interest rate for a second time in two weeks on Wednesday.

Rainstorms in Germany

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Rainstorms in Germany

ASEAN+ June 01, 2018 16:30

By EPA-EFE

2,002 Viewed

In the morning of 01 June 2018 South-West Germany suffered a storm with heavy rain.

 Particularly affected are the areas in the federal state of Saarland.

According to media reports in the area of Bliesransbach 240 emergency services were active during the night.

A car between debris in Bliesransbach, Germany, 01 June 2018. // EPA-EFE PHOTO

 Firefighters stand in front of a Porsche car in a flooded garage in Bliesransbach, Germany, 01 June 2018. // EPA-EFE PHOTO

A car and a motorbike between debris in Bliesransbach, Germany, 01 June 2018. // EPA-EFE PHOTO

Firefighters pump water from a flooded underground car park in Sindelfingen, Germany, 01 June 2018. // EPA-EFE PHOTO

Mattis, Modi in Singapore for security summit

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US Defence Secretary Jim Mattis (2nd R) arrives at a military airport in Singapore on May 31, 2018 ahead of the annual Shangri-La Dialogue security summit. / AFP PHOTO / Thomas WATKINS
US Defence Secretary Jim Mattis (2nd R) arrives at a military airport in Singapore on May 31, 2018 ahead of the annual Shangri-La Dialogue security summit. / AFP PHOTO / Thomas WATKINS

Mattis, Modi in Singapore for security summit

Breaking News June 01, 2018 09:45

By Agence France-Presse
Singapore

When US Defense Secretary Jim Mattis attends a security summit in Singapore this weekend, he hopes to assure allies of America’s commitment to the region and its aim of checking China’s seemingly inexorable rise.

But the issue the Pentagon chief may well be faced with most often is one he would prefer not to weigh in on: what on Earth will happen between North Korean leader Kim Jong Un and President Donald Trump?

Mattis, whose department has spent years refining military options against North Korea and its nuclear programme, wants to steer clear of speculation surrounding a possible meeting between the two leaders.

“We continue with the diplomatically-led campaign,” Mattis told reporters as he headed to the Shangri-La dialogue in Singapore, referring questions on the issue to the State Department.

Events between the US and North Korea have been evolving rapidly, after the mercurial Trump called off a historic summit with Kim, only to immediately reverse course.

The two men are now apparently back on track to meet in June, also in Singapore.

So, instead of focusing on the possible summit with North Korea, Mattis wants to push the message that Washington is steadfast in its backing of the Asia-Pacific region.

“All I am doing is saying we are unwavering in our focus out here and we are unapologetic about… standing with our allies and our partners,” Mattis said.

He tackled the same topic at Shangri-La a year ago, months after Trump took office with his “America First” agenda.

The president’s campaign rhetoric left allies fretting over whether the US would turn its back on Asia, where it has underwritten maritime security since the end of World War II.

‘Continued militarisation’

Murray Hiebert, a senior associate of the Southeast Asia Program at the Center for Strategic and International Studies in Washington, said Mattis’s pitch is a tougher sell this year.

Trump’s “on-again off-again threat of (tariffs) against China and his abrupt cancelling of the talks with (Kim) and then just as abruptly trying to schedule them again makes Trump’s administration appear highly erratic and unpredictable,” Hiebert told AFP.

And over the past year, he noted, China has continued its military build up in the disputed South China Sea, including landing bombers on Woody Island and deploying surface-to-air and anti-ship missiles on other contested features — ignoring Washington’s call for it not to do so.

“Mattis can probably still call China out for doing what Xi Jinping had promised China wouldn’t do, but this message will soon sound hollow,” Hiebert said.

The Pentagon last week rescinded its invitation to China to join maritime exercises in the Pacific over Beijing’s “continued militarisation” of the South China Sea, and the US military periodically conducts “freedom of navigation” operations to defy China’s territorial claims.

But overall, despite Washington’s warnings of China’s rising might, Beijing has faced few consequences for its military buildup in the region.

Trump has also given conflicting messages on global trade and imposing tariffs on Beijing, and experts warn the US is ceding leadership to China.

“Most countries in the region which are part of the global supply chain are anxious that they will be impacted by a trade war between China and the US,” Hiebert said.

Mattis is giving a speech Saturday but this year’s keynote is by Indian Prime Minister Narendra Modi, who is expected to outline India’s growing regional role.

The Pentagon is renaming its oldest and largest military command to reflect the growing importance of India and the Indian Ocean in US strategic thinking.

From now on, the storied US Pacific Command, or PACOM, will be known as the Indo-Pacific Command.

The name change is largely symbolic but in 2016 the United States designated India a “major defence partner” with the aim of improving military cooperation, increasing information-sharing and cutting red tape to ease defence deals.

“Given China’s assertiveness, India is seen as the only country that can, with the US, play a role in offsetting China’s pull because India also has issues with China,” Manoj Joshi, a distinguished fellow at the Delhi-based Observer Research Foundation, told AFP.

But what allies “will be looking for is practical measures, not mere slogans and declarations.”

US will veto UN draft on protecting Palestinians: Haley

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US will veto UN draft on protecting Palestinians: Haley

Breaking News June 01, 2018 07:05

By Agence France-Presse
United Nations, United States

The United States will “unquestionably veto” a UN draft resolution calling for the protection of Palestinians in Gaza and the West Bank, US Ambassador Nikki Haley said ahead of a Security Council vote on Thursday.

Haley described the text put forward by Kuwait on behalf of Arab countries as a “grossly one-sided approach that is morally bankrupt and would only serve to undermine ongoing efforts toward peace between the Israelis and Palestinians.”

After initially deciding to delay action on the measure, the council was expected to finally go ahead with the vote around 7:00 pm (2300 GMT), diplomats said.

Kuwait presented the draft two weeks ago, initially calling for an international protection mission for the Palestinians as protests turned violent on the Israeli-Gaza border.

At least 122 Palestinians have been killed by Israeli fire in the unrest since the end of March. No Israelis have been killed.

The final version however urges “the consideration of measures to guarantee the safety and protection” of Palestinian civilians and requests a report from Secretary-General Antonio Guterres on a possible “international protection mechanism.”

“The resolution calls on Israel to immediately cease its actions in self-defense, but makes no mention of Hamas’ aggressive actions against Israeli security forces and civilians,” Haley said in a statement.

She also delivered a blunt warning to European countries and others on the council who decide to back the Kuwait text.

“Those who choose to vote in favor of this resolution will clarify their own lack of fitness to take part in any credible negotiations between the two parties,” she said.

The United States circulated its own draft resolution demanding that Hamas and Islamic Jihad “cease all violent activity and provocative actions, including along the boundary fence” between Israel and Gaza.

The UN envoy for the Middle East, Nickolay Mladenov, this week warned the Security Council that Gaza was on the brink of war following a serious escalation between Israel and Palestinian militants in the Hamas-ruled enclave.

An exchange of fire on Tuesday and into the early hours of Wednesday began with a barrage of rocket and mortars into Israel from Gaza, prompting Israel to respond with strikes on 65 militant sites in the Gaza Strip.

It was the worst flareup since the 2014 war in Gaza.

Diplomats have said the Palestinians may turn to the UN General Assembly to win support for the measure if the vote fails at the Security Council as expected.

A draft resolution requires nine votes to be adopted in the 15-member council and no veto from the five permanent members — Britain, China, France, Russia and the United States.

Summit hangs on Kim letter after nuclear talks make progress

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Summit hangs on Kim letter after nuclear talks make progress

ASEAN+ June 01, 2018 06:59

By Agence France-Presse
New York

The United States and North Korea took a big stride Thursday towards holding a historic nuclear summit, as President Donald Trump awaited delivery of a letter from Kim Jong Un.

US Secretary of State Mike Pompeo said “real progress” had been made in New York talks with Kim’s right-hand man, while in Pyongyang the Korean leader re-committed to “denuclearization.”

Washington is looking for signs that Kim is ready to accept that talks must lead to him giving up his nuclear arsenal and if the letter is well received it will mark an extraordinary diplomatic turn-around.

US officials said the North Korea delegation would come to Washington to meet Trump and deliver the message on Friday, one week after Trump had abruptly called off preparations for the planned June 12 summit in a sharply-worded letter of his own.

Since that short-lived crisis, diplomats in both countries have conducted an intense flurry of negotiations, culminating on Thursday when Pompeo sat down in New York with Kim’s number two, Kim Yong Chol.

Simultaneously, Kim met Russia’s Foreign Minister Sergei Lavrov and, according to official news agency KCNA, said the North’s “will for denuclearization of the Korean peninsula still remains unchanged and consistent and fixed.”

It is still not clear whether North Korea’s vision of “denuclearization” in exchange for security guarantees and sanctions relief can be brought into line with Washington’s demand for a “complete, verifiable and irreversible” end to its nuclear program.

But Pompeo suggested things are moving in the right direction.

“It will take bold leadership from Chairman Kim Jong Un if we were able to seize this once in a lifetime opportunity to change the course for the world,” he said.

“President Trump and I believe Chairman Kim is the kind of leader who can make those kind of decisions, and in the coming weeks and months, we will have the opportunity to test whether or not this is the case.”

– Strategic shift –

Kim Yong Chol — the most senior official from Pyongyang to visit the United States in 18 years — is expected to head to Washington to present an eagerly expectant Trump with a letter from his young leader.

But Pompeo warned that this message in itself may not resolve all the issues standing in the way of the summit.

“This is a difficult, difficult challenge. Make no mistake about it. There remains a great deal of work to do,” Pompeo said, citing ongoing talks in Singapore and in the demilitarized zone on the Korean border.

But he said that, after what has now been two meetings with Kim Jong Un and three with Kim Yong Chol, he believes the North is at least ready to consider meeting US demands for denuclearization.

“I believe they are contemplating a path forward. They can make a strategic shift. One that their country has not been prepared to make before. This will obviously be their decision,” he said.

US officials now expect the summit to go ahead, but they want North Korea to accept that nuclear disarmament be at the heart of the discussion — and warn that there can be no end to trade sanctions without it.

Asked whether the answer would come on Friday in the letter, Pompeo said he did not know but added “we have made real progress in the last 72 hours toward setting the conditions.”

“The conditions are putting President Trump and Chairman Kim Jong Un in a place where we think there could be real progress made by the two of them meeting,” he said.

Earlier, in Washington, Trump had said he was “looking forward” to reading the letter.

– Russia urges caution –

On his visit to Pyongyang, Lavrov warned against setting expectations too high, urging all sides to “avoid the temptation to demand everything and now.”

The veteran Russian envoy passed on greetings from President Vladimir Putin to Kim and invited him to visit Russia, the Russian foreign ministry said.

Russia is the latest major nation to reach out to North Korea since Trump accepted Kim’s proposal for a summit. Kim has already had two meetings each with Chinese leader Xi Jinping and South Korean President Moon Jae-in.

Don’t use funds from Petronas, says Najib

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File photo : Najib Razak//AFP
File photo : Najib Razak//AFP

Don’t use funds from Petronas, says Najib

Breaking News June 01, 2018 01:00

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PETALING JAYA: Former prime minister Najib Tun Razak has urged the new government not to plunder funds from Petronas for bailouts.

“I urged the new government to continue to give sufficient space and capital to Petronas to fulfil their vision and not to plunder funds from Petronas or through bail-out missions as what was done during the 22 years of Tun Dr Mahathir Mohamad’s previous administration,” he said on his Facebook post on Thursday (May 31).

Najib noted the new Pakatan Harapan government recently stated that the shortfall in revenue due to the abolishment of the Goods and Services Tax (GST) would be made up by Petronas, Khazanah, and Bank Negara Malaysia by making higher dividend payments to the government.

However, he said this approach was “not sustainable” and would sacrifice long term just for short-term financing.

Najib added that the cash reserves of Petronas have increased to RM164.7bil as of March 2018, an increased of RM36.5bil compared to RM128.2bil at the end of 2017, adding that the increase resulted from competitive oil prices and payments received from Aramco Saudi’s investment for the RAPID Pengerang project.

He pointed out that during his administration, he made sure that Petronas did not need to pay dividends beyond its means to the government.

“This resulted in cash balances of Petronas increasing significantly and the company was able to make investments and expand to implement ‘game changer’ projects such as the RAPID Pengerang project, Sarawak Oil and Gas Integration Project (SSIOGP) and the Sabah Ambon and Urea (Samur) project,” he said.

Najib added that Petronas was also given the freedom to make investments all over the world.

Real Madrid coach Zinedine Zidane drops bombshell

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  • Photo : AFP
  • Photo : AFP
  • Photo : AFP

Real Madrid coach Zinedine Zidane drops bombshell

Breaking News June 01, 2018 01:00

Madrid – Real Madrid coach Zinedine Zidane dropped a bombshell Thursday, quitting the Spanish giants just days after winning the Champions League for a record third year in a row.

    The 45-year-old former international decided to quit at the top saying that it was time for a change for himself and the club and admitting he was unsure of his ability to maintain his winning record at Real.

But he said that no other club was involved in his decision to part ways with Real and although experts have linked him to the French national team coaching job, Zidane insisted he is eyeing no other position at this time.

“I have taken the decision to not continue next year as Real Madrid coach,” the Frenchman told a hastily convened press conference.

“This club deserves to continue to win and needs a change” he said, adding that he believed the “moment has come.”

“After three years the club needs another discourse, another method of working,” he added

Zidane said he was unsure of his ability to inspire the team to more victories.

“I don’t see myself continuing to win this year and I am a winner, I don’t like to lose,” added Zidane, who was under contract with Real until 2020.

“I have thought a lot about this decision and I can’t go back on it.”

Real beat Liverpool 3-1 in the final in Kiev on Saturday, making Zidane the first coach in history to win three successive Champions League titles.

Zidane has now won nine trophies since replacing Rafael Benitez in the Santiago Bernabeu dugout in January 2016.

He was flanked at the press conference by Real Madrid president Florentino Perez who said Zidane’s announcement was “totally unexpected”.

When Benitez was sacked in January 2016, Barcelona daily Mundo Deportivo dismissed Zidane as merely a “sticking plaster”, who would be replaced quickly by a permanent coach.

But Zidane won the confidence of players and the rest is history.

“This is a sad day,” Perez said.

“This house will be his family forever, he triumphed and won everything, as you know. I thank him for his commitment, his passion. I have no doubt that he will return.”

 

– Stunning blow –

 

Zidane said his decision had nothing to do with Real icon Cristiano Ronaldo hinting that he will also leave the club following the Champions League triumph on Saturday.

It had perhaps more to do with the side’s mixed performance in La Liga, where they finished a disappointing third, and were left for dead by champions and bitter rivals Barcelona.

“We say it, it was complicated this year in the league, these are moments that I don’t forget,” he said.

The bombshell decision came 12 years after another stunning blow from Zidane brought a controversial close to the midfielder’s international career.

He earned a red card in the 2006 World Cup final, probably costing France the title, for his full-blooded headbutt against Italian Marco Materazzi.

The next step for the former Real Madrid star player is unclear but he has time on his side.

Guy Lacombe, Zidane’s first coach when he joined AS Cannes, his first professional club, in 1988, said that there was little left to challenge the coach who had already won virtually everything.

“But there is one thing…,” Lacombe told AFP. “He would like one day to coach the French national team. He has made no secret of that ambition.

“It will happen at the right time. In the right conditions. There is no rush.”

AEC Feed

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AEC Feed

ASEAN+ June 01, 2018 01:00

By Asia News Network

Indonesia-India tie-up to focus on four sectors

The chambers of commerce of Indonesia and India have agreed to cooperate with a focus on four sectors, namely manufacturing, mining, pharmaceuticals and infrastructure.

The Indonesia Chamber of Commerce and Industry (Kadin) and Confederation Industry of India (CII) held a CEO Forum in Jakarta on Tuesday. The forum was the continuation of an event held in New Delhi in December 2016.

Kadin chairman Rosan Roeslani said yesterday that in 2016, the two parties agreed on cooperation in six sectors. However, in 2018, the meeting decided to eliminate two sectors from the list, agriculture and services, to narrow the focus.

“We agreed to focus only on four sectors compared to six sectors in the previous meeting,” he said in a statement.

For the mining sector, he said that India was one of the biggest buyers of Indonesian coal and that Indonesia was the second-biggest coal seller to India behind Australia.

According to International Trade Centre data, in 2017 India imported US$4.7 billion worth of coal-based products from Indonesia, an increase of 42.42 per cent compared to $3.3 billion in 2016.

“Some Indian mining companies are also interested in investing in Indonesia,”Rosan said.

In the pharmaceutical industry, India still imposed 40 percent import tariffs on drugs, reducing the competitiveness of Indonesian-made medicine. “The only way to avoid high tariffs is to invest [in India] but the problem is how to find the right partner. That is the function of the CEO Forum,” he said. – The Jakarta Post

Lao business seeks govt intervention on oil prices

The business sector in Laos has called on the government to intervene and reduce the impact on consumers due to rising oil prices.

Last Saturday, the Ministry of Industry and Commerce announced the seventh adjustment of retail prices of gasoline since the beginning of this year following a surge in oil prices in the world markets.

Vice President of the Lao National Chamber of Commerce and Industry, Valy Vetsaphong, suggested last week that the government has to consider adjusting the price structure by cutting some costs related to expensive fuels to maintain a reasonable price for gasoline.

The oil pricing structure is a tool the public sector can use to manage fluctuations in the cost of the commodity.

Valy said “The state needs to think about reducing taxes and money that is collected from oil businesses for numerous funds and public services, such as quality checks. They are some of the main drivers of prices.

“Entrepreneurs will face a smaller impact than consumers because they can add their costs to products, goods or services, but people have no choice,” added Valy, who is a businesswoman.

It is believed that despite the rising oil prices in the world markets, the domestic market will continue to have fuel at cheap rates if some domestic factors affecting prices are addressed by the government. This mechanism could protect consumers and oil businesses from pressures.

Valy urged the state to choose both “attacking and reverting options” to deal with the situation.

“When prices go up, the State must consider cutting some domestic causes, including taxes. But it can charge a higher rate when oil prices are cheaper if it is concerned about revenue loss. This measure can help provide relief because a higher price impacts everyone at the grassroots level,” she said.

An economics teacher at the National University of Laos noted that the government may have its reasons for fresh hikes in oil prices following the surge in prices on the world markets, even though it knew this decision impacts the living conditions of the people. – The Vientiane Times

Three sites on offer under Singapore’s land sales programme

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Three sites on offer under Singapore’s land sales programme

ASEAN+ June 01, 2018 01:00

By THE STRAITS TIMES
ASIA NEWS NETWORK
SINGAPORE

SINGAPORE’S Urban Redevelopment Authority (URA) and the Housing Board (HDB) have released three sites with residential components for sale in Dairy Farm Road, Sims Drive and Tampines Avenue 10.

These come under the first half of the 2018 Government Land Sales programme, the authorities announced yesterday.

For sale is one confirmed list site in Dairy Farm Road launched for residential development with commercial uses on the first storey. This land parcel has a site area of 19,647.5 square metres, with a 99-year lease period, and a permissible gross floor area (GFA) of 41,260 sq m.

The project completion period is five years, and tender for this development will close at noon on September 4.

Separately, the URA residential site in Sims Drive and the HDB executive condominium site in Tampines Avenue 10 are available for application under the reserve list. This means developers can trigger the tender of these sites if they indicate interest with bid commitments acceptable to the URA.

The development in Sims Drive has a site area of 16,225.3 sq m, with a lease period of 99 years, and a permissible GFA of 48,676 sq m. Project completion period also stands at five years, or 60 months.

Lastly, the executive condominium in Tampines has a site area of 2.56ha, and a proposed gross plot ratio of 2.8.

Taken together, these three sites can yield about 1,880 residential units, the URA and the HDB said in a joint statement.