Penang Transport Master Plan (PTMP) - Tunnel project rocked, Directors arrested in graft probe

https://www.youtube.com/watch?v=6B9o1baUaP8

https://youtu.be/VL98vA4I2gE

Stalled ambition: A view of the Gurney Drive seafront, which is meant to be connected to Bagan Ajam in Seberang Prai under the Penang undersea tunnel project.

The RM6.3bil undersea tunnel project in Penang is on rocky ground with the MACC going on a day-long swoop on companies and state government agencies involved. A high-ranking Datuk in one of the companies has been detained to help in investigations into allegations of corruption in the long-delayed mega project and feasibility studies.

PETALING JAYA: Graft-busters have arrested a Datuk holding a high post in a company involved in the controversial Penang undersea tunnel project to help investigations into corruption claims.

The arrest came after a day-long massive swoop on several offices in Penang, where the Malaysian Anti-Corruption Commission (MACC) seized documents related to the RM6.3bil mega project.

The anti-graft agency raided the offices of four state government agencies – the Penang Public Works Department, Penang State Secretary, Penang Office of Lands and Mines and Penang Valuation and Property Services Department – and three property development and construction companies – Ewein Zenith Sdn Bhd, 555 Capital Sdn Bhd and Consortium Zenith Construction Sdn Bhd’s Penang office.

MACC officers also questioned several officers in charge of the respective agencies and companies since the raids began yesterday morning.

Sources familiar with the investigation said the probe into the undersea tunnel project was also zooming in on land swaps.

Ewein Zenith is a joint-venture vehicle of Ewein Land Sdn Bhd and Consortium Zenith BUCG Sdn Bhd.

The latter is a Malaysia-China joint venture that was awarded the RM6.3bil mega project to build the 7.2km undersea tunnel connecting Gurney Drive on the island to Bagan Ajam in Seberang Prai, a 10.53km North Coastal Paired Road (NCPR) from Tanjung Bungah to Teluk Bahang, the 5.7km Air Itam–Tun Dr Lim Chong Eu Expressway bypass and the 4.075km Gurney Drive–Tun Dr Lim Chong Eu Expressway bypass.

Consortium Zenith BUCG changed its name to Consortium Zenith Construction Sdn Bhd on Jan 18 last year after the withdrawal of Beijing Urban Construction Group (BUCG).

It is believed that the MACC is looking into why the state government allowed the Penang Tunnel special purpose vehicle (SPV) company to pre-sell state land rights worth RM3bil despite a four-year delay in the construction of roads.

Investigators are also believed to be looking into the RM305mil feasibility and detailed design studies that have yet to be completed, even though a payment of RM220mil was made to the SPV.

On Oct 11 last year, the main contractor of the project announced that there was no urgency to finish the feasibility study for the undersea tunnel, as it was only set to begin in 2023.

The feasibility study of the tunnel started in February 2015 and as of October last year, it was said to be 92.9% complete.

Works Minister Datuk Seri Fadillah Yusof has said the delay in submitting the feasibility report to him was very unusual considering that the project was awarded in 2013.

On Friday, Parti Cinta Malaysia (PCM) vice-president Datuk Huan Cheng Guan lodged a report at the MACC headquarters in Putrajaya and handed over documents which he claimed contained new evidence of corruption in the project.

It was Huan’s third report about the matter. He first lodged a police report on July 17 last year, claiming that the project was awarded to an “undercapitalised” company.

He then lodged a report with the MACC on July 21, calling for a corruption probe.

In George Town, a source in the MACC confirmed that they had ­visited the offices of Ewein Zenith, Consor­tium Zenith Construction and 555 Capital, all of which are involved in the Penang undersea tunnel project.

“We went in the morning, shortly after their offices opened,” said the MACC officer.

However, none of the senior management staff were in and only the front office and sales staff were present to attend to them.

State Works Committee chairman Lim Hock Seng said he was not aware of the raids, while Consortium Zenith senior executive director Datuk Zarul Ahmad Mohd Zulkifli could not be reached for comment.

Meanwhile, state secretary Datuk Seri Farizan Darus said the National Economic Planning Unit on the 25th floor of Komtar was also raided, but declined to give details.

Huan thanked the commission for acting on his report.

“I believe the MACC will carry out its investigation professionally without any fear or favour,” he said.

The MACC is expected to hold a press conference today to explain the spate of raids and provide updates on the investigations.

By royce tan, tan sin chow, r. sekaran,  and cavina lim The Star

Related Links:

Two 'Datuks' to be remanded in Penang tunnel graft probe - Nation ...

‘It’s been 51 months, where’s the report?’

DAP, Where Is Your RM305 Mil Penang Undersea Tunnel ... - YouTube

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In the digital dumps: technology triggers teen depression

Teenagers are unable to disconnect from their smartphones, causing them undue anxiety and distress. But according to experts, saying no to smartphones is not the solution.

Teenagers feel if they’re not on social media all the time, they’re missing something important, or will miss out on a funny conversation, or someone might say something about them, according to Nolan. — 123rf.com

Technology is how teenagers maintain relationships so Nolan advises parents to discuss and find healthy ways to use it. — dpa

"We know that people rely on smartphones. A recent study shows we touch them about 2,500 times a day on average ''

Brian Bolan, guidance director at Andrew High School in Tinley Park, Illinois.

“Nobody likes to feel a loss of control. So work with them to arrive at a mutually agreed upon reasonable amount of time to spend on the phone. Haveitbea discussion, a collaboration. That will probably yield better results than just saying, ‘No phones’.” – The Daily Southtown/ Tribune News Service 

Parents have to help teenagers turn off in a world that’s always on.

The problem with teens and ­smartphones, experts say, is “they’re always on”.

Both of them.

And that can take a toll on their mental health. A new study links anxiety, severe depression, suicide attempts and suicide with the rise in use of smartphones, tablets and other devices.

Parents are urged to help their children foster real ­relationships, the ones that involve making eye contact and ­interpreting body ­language. Local mental health experts encourage teens and ­parents to establish a routine that fosters a balance between real and virtual communication, even as many adolescents will no doubt have found gifts of technology under the tree last holiday.

For as smart as phones may be these days, they simply don’t know when to quit. To protect their kids’ mental health, parents must ­develop methods for outsmarting them, experts say, and often that involves simply turning them off.

Jean Twenge, psychology professor at San Diego State University and a graduate of the University of Chicago, has written extensively on youth and mental health. She has released a study that shows a ­correlation between the rise of the smartphone and increasing rates of depression, suicide attempts and suicide itself among teens.

According to news reports, the finding is based on CDC data and teen-issued surveys that revealed that feelings of hopelessness and suicidal contemplation had gone up by 12% during the time period and that nearly half of the teens who indicated they spend five or more hours a day on a ­smartphone, laptop or tablet said they had contemplated, planned or attempted suicide at least once – compared with 28% of those who said they spend less than an hour a day on a device.

Local school counselors and social workers as well as clinical mental health experts at local ­hospitals in the United States ­confirm they are seeing an uptick in signs of depression and/or ­anxiety among teens. But, they also say, there are things parents and professionals can do to help curb the risks.

Too much, too often

“I just came from a South Side guidance directors conference where we heard from a couple of hospitals in the area that treat ­students for depression or suicidal tendencies or high anxiety. They’re telling us they’ve seen quite an uptick, that they’re hiring staff, they’ve got longer waiting times, they’re running more programmes just to keep up with the need they’re seeing among high school kids and even younger kids,” said Brian Nolan, guidance director at Andrew High School in Tinley Park, Illinois.

Nolan said, “My belief is that today’s technology never allows children to truly disengage from their social lives. When we were kids we could hang out with our friends during the day and then at night, we’d have down time with the family or we might go shoot hoops or play Legos away from friends, so we could gain some kind of balance.”

But the smartphone’s ability to connect us all immediately doesn’t allow that social interaction to ever be turned off, he said. Some of the allure is the desire to be included, and some of it is defensive, he said.

“They feel like if they’re not on it all the time, they’re missing ­something important, or will miss out on a funny conversation, or someone might say something about them. There’s a lot of worry and concern and stress about what’s going on in social media at a time when it would be nice for a child to step away from it and not care,” Nolan said.

“We know that people rely on smartphones. A recent study shows we touch them about 2,500 times a day on average,” he said. “I use food as a metaphor. If a student is overeating or eating a bunch of junk food, you probably as a parent would have a conversation about better eating habits, the importance of exercise, moderation, things like that.”

“Cellphones are exactly the same. To tell a student you can’t use it, is the same as saying you can’t eat. That may sound extreme but that’s the ­reality. (Technology) is how they maintain ­relationships. So, it’s ­probably better to discuss healthy ways to use it,” he said.

Questions to ask your teen, he said, might include: Do you feel addicted to it? Are you checking it ­constantly? Can you set it down for awhile?

When students only ­interact via technology, Nolan said, “they’re much more likely to withdraw from healthier interactions and are more likely to be hypersensitive to what’s being posted. If they aren’t included they can feel lonely. If they are included, they can feel pressure to keep up”.

“I think parents feel bad (about this). It’s hard to attack a thing we don’t fully understand ourselves, because we didn’t grow up with it,” he added.

But, Nolan added, “modeling is a big piece of this. We as adults sometimes stop conversations with our own children because we have a text message coming in. Or we’ll text at the dinner table or while driving. So, we’re teaching our children that what comes through the phone is immediate and important and that it should take precedence over what we are currently doing”.

Equal access to good and bad

In her 17 years as a social worker at Argo High School in Summit, Illinois, Allison Bean said she’s had “a front row seat to the shift from a time where kids couldn’t wait to leave the house to hang out with their peers to the present day digital age where our kids are reluctant to leave the couch”.

“Many of my students may not have adequate clothing, food or even running water in their homes; but they have phones,” she said.

Teens, she said, “are (physically) isolating themselves more and more from their real support ­systems during a period of their lives that, even under the best ­circumstances, is very turbulent and stressful”.

Exacerbating the situation, Bean said, is that the very device that can cause depression is also giving fragile teens access to websites that can encourage them to engage in self-harming behaviours.

To complicate matters, she said, mental health experts are warning about the dangers of technology at a time when more schools are going paperless and issuing tablets to students.

“While there may be an upside to going paperless, one thing is ­certain: Our kids will be spending countless numbers of hours in front of some type of screen during the duration of their education. Headaches, tired eyes, and ­insomnia are bad for everyone. For students that are already prone to mental health issues, this too often results in truancy, low test scores, poor homework habits and ­depression,” she said.

“They are depriving themselves of the opportunity to exercise their social skills; skills that are critical for life. This is obviously dangerous in numerous ways. Not only does it dissuade students from ­leaving the confines of their rooms to engage with peers in a ­developmentally appropriate way, there are many predators online who are able to find young people who are vulnerable, isolated and desperately seeking attention,” she said.

“There’s no question mental health crises are on the rise, and at the high school level, depression and anxiety are the primary ­diagnoses that I see in our ­community,” she said.

Signs of trouble?

It’s not just technology that is causing the trouble, said Rian Rowles, chairman of psychiatric services at Advocate Christ Medical Center. In his 12 years at the Oak Lawn, Illinois hospital, the ­psychiatrist has seen the number of patients referred to the ­adolescent programme rise by more than half.

“It’s also social media. It’s very clear to me that the advent of social media has exacerbated stressors. Not just depression, but anxiety as well,” he said.

“There are stressors that go along with adolescence but you used to be able to leave the interpersonal stuff at school. Bullying used to be a school phenomenon.”

Social media, he said, can make it a 24/7 thing.

“When you’re writing and ­posting things, there’s a phenomenon in which you don’t have the same filter you might when talking on the phone or in person. I think that lends itself to more abrasive statements,” he said. “So not only is it constantly there for these kids, it’s more intense.”

Rowles said adolescents can have the same symptoms as adults when it comes to depression and anxiety: abrupt changes in sleep ability, appetite changes (usually significantly less food), social ­isolation marked by less ­communicating with friends and less participation in social or school events, and drastic or ­significant personality change, say from calm to irritable or angry.

Parents can help by reducing the amount of time a teen spends on social media, he said. Professional help typically involves teaching kids ways to develop new coping mechanisms.

Something that might surprise adults, Rowles said, is that ­overusing technology can have a detrimental affect on them, as well.

“Not as drastic, because of what kids have to deal with at school. The phenomenon I see in adults is someone who is already in my care for anxiety or depression and then they get on Facebook,” he said. “People will sort of put on Facebook things that make their life seem very wonderful and it may not be the reality but other people see that and it can ­contribute to their depression. (Facebook) makes it seem like everybody has a better life.”

Widening the lens

Technology may not be the lone culprit, and it is not necessarily bad, said Nadjeh Awadallah, licensed clinical professional ­therapist at Little Company of Mary Hospital in Evergreen Park, Illinois.

The current increase in ­depression and anxiety among teens might be attributed to a ­higher frequency of smartphone use and the fact there’s less stigma about mental health issues, Awadallah said.

“Kids are more prone to ­speaking about mental health issues than maybe they were before,” he said.

A lot of adolescents, he said, would argue that the relationships they have with people online are real relationships. “If they’re ­interacting at a high level of ­frequency, either talking with friends or playing videogames, they’re actually interacting with them,” he said.

And a phone can be a kind of “digital security blanket” in that it enables a person who is dealing with anxiety to look at their phone instead of at other people.

“It’s kind of protective if you want to be left alone,” he said.

Nevertheless, Awadallah added, there is “a great deal of benefit to interacting with somebody face to face because so much of communication has to do with nonverbal communication and giving feedback. When you’re just texting you have to imagine how the person’s voice sounds. It’s hard to deduce if someone is being ­genuine, or sarcastic. So whatever the person transplants onto the thing that they’re reading can impact their mood.

“There’s a high correlation between people withdrawing from person-to-person interaction and depression because that’s what people tend to do when they’re depressed,” he said. “So it’s kind of like a chicken and egg relationship where you don’t know if they’re depressed because they’re on ­electronic media or if they’re on electronic media because they’re depressed.”

Smartphone addiction is a form of process addiction, he said. “It’s a non-chemical addiction where ­people compulsively use the Internet or phone in lieu of self-care actions likes eating or ­sleeping,” he said.

Signs there might be a deep-­seated issue: problems at school, such as concentration, lack of ­energy, poor attendance or a drop in grades; substance abuse or superficial self-harm (such as cutting as an emotional release); and a significant decline in self-esteem.

What can parents do? Awadallah said, “Institute a routine. Make sure kids aren’t using phones or devices when supposed to be ­sleeping because exposing ­themselves to unnatural blue light that’s going to be overly ­stimulating and not let them sleep well. If they’re more invested with ­interacting online than with people in person, you need to talk.

“Nobody likes to feel a loss of control. So work with them to arrive at a mutually agreed upon reasonable amount of time to spend on the phone. Have it be a ­discussion, a collaboration. That will ­probably yield better results than just saying, ‘No phones’.”

 — The Daily Southtown/Tribune News Service

How can parents help their teens?

● Encourage downtime
● Be a good role model
● Teach your child to develop coping skills
● Institute a routine
● Mutually agree on time limits for devices and social media

By donna vickroy, The Star

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New Year 2018 high for Malaysia

FBM KLCI moves higher past 1,800 mark while ringgit breaches RM4 level

In a synchronised fashion, the ringgit, stock market and exports are all glowing for Malaysia. Add this to the rising price of crude oil, economists are expecting the good start to the year to continue leading up to GE14. Experts foresee these translating to lower import costs and more affordable overseas education.

Busa and ringgit on a high

PETALING JAYA: In a rare occurrence, the local capital markets got off to a roaring start in the first week of the new year.

US$ vs ringgit at 3.9965 

Sentiments on the stock market picked up as it sailed through the 1,800 mark, the ringgit breached the RM4 level against the US dollar and the latest trade numbers released showed that exports have hit record levels.

FBM KLCI up 14.52pts to 1,817.97

The FBM KLCI, a key benchmark for the local stock market, closed at 1,817.97, up 14.52 points yesterday – the highest since April 2015. Analysts and fund managers expect the upward momentum to continue, leading to the 14th General Election (GE14).

“The local stock market is set to continue its upward momentum, with investors in optimistic mood, lingering upon expectations of the GE14,” an analyst said.

The Malaysian stock market is now playing catch-up with key regional markets in other countries that have been moving up.

For instance, in the United States, the Dow Jones Industrial Average closed at fresh record highs above 25,000. Trading volume on Bursa has risen sharply to a high of nearly six billion shares valued at RM3.94bil. This is the highest since 2014.

“The increasing volume is an indicator of more investors joining the fray,” said the analyst.

The ringgit also perked up against the US dollar and strengthened to 3.9945 yesterday, the strongest level since August 2016.

Crude oil prices continue to climb with the Brent Crude rising above US$67 per barrel. Apart from a brief spike in May 2015, this is the highest price levels it has reached since December 2014, when the oil price started its slide down.

Exports in November rise to RM83.50bil

Exports hit record high of RM83.5bil in November - Business News ...

Adding to the optimism, the country’s latest trade data for November showed that exports exceeded expectations and rose to a monthly high of RM83.5bil. This is an increase of 14.4% from last year.

The head of UOB Kay Hian Malaysia Research, Vincent Khoo, expects global and local conditions to be favourable for the local stock market as sentiment builds up for the GE14.

“Malaysia has been a laggard and now it is reversing its underperformance. Liquidity is strong locally and internationally as there is more foreign funds participation.

“Economic numbers are strong and export momentum continues to be solid,” Khoo said.

Socio Economic Research Centre executive director Lee Heng Guie said there were continued optimism and positive sentiments on the global economy and markets.

He said the tax reforms in the US would beef up corporate earnings while central banks around the world were raising rates.

The impending GE14, he added, spurred investors’ interest in the stock market and the recovery in oil prices continued to lift the demand for ringgit.

He said the ringgit had a good rally since the last Bank Negara meeting and the upcoming meeting on Jan 29 might see the central bank review its overnight policy rates (OPR) upwards.

The OPR now is 3.25% and many are expecting it to increase, a move that would spur banks to raise their interest rates.

Additionally, Lee said trade data was better than expected and as long as the macro numbers and earnings deliver, it would lift sentiments on market.

Nonetheless, he said investors might be a bit cautious when the dissolution of Parliament was announced.

Meanwhile, Oanda head of trading Asia-Pacific Stephen Innes said Bursa Malaysia was playing catchup as the ringgit remained undervalued in a lot of fund managers’ portfolio.

“But I think the current run will take us to 3.90 (against the US dollar) but at this stage, I think the market is starting to factor in the Bank Negara rate hike in January.

“So we may see a slower appreciation of the ringgit and we should expect profit taking ahead of the rate decision (by BNM) later in the month,” he added.

On the external front, Inness said the global equity market rally was benefiting from higher commodity prices in general and specifically oil prices.

“The recent supply disruptions are having a much more significant impact on prices given Opec’s (Organisation of the Petroleum Exporting Countries) recent production cut and the market is certainly much tighter than it has been in the past.

“Rising oil prices bode well for the FBM KLCI given that oil and gas constituents play a big role in the KLCI make-up. However, I don’t think this is strictly an isolated oil play but it is also rallying on the global growth narrative which is supporting export-oriented firms,” Innes said.

By leong hung yee The Staronline

Bursa and ringgit on a high

FBM KLCI moves higher past 1,800 mark while ringgit breaches RM4 level

PETALING JAYA: In a rare occurrence, the local capital markets got off to a roaring start in the first week of the new year.

Sentiments on the stock market picked up as it sailed through the 1,800 mark, the ringgit breached the RM4 level against the US dollar and the latest trade numbers released showed that exports have hit record levels.

The FBM KLCI, a key benchmark for the local stock market, closed at 1,817.97, up 14.52 points yesterday – the highest since April 2015. Analysts and fund managers expect the upward momentum to continue, leading to the 14th General Election (GE14).

“The local stock market is set to continue its upward momentum, with investors in optimistic mood, lingering upon expectations of the GE14,” an analyst said.

The Malaysian stock market is now playing catch-up with key regional markets in other countries that have been moving up.

For instance, in the United States, the Dow Jones Industrial Average closed at fresh record highs above 25,000. Trading volume on Bursa has risen sharply to a high of nearly six billion shares valued at RM3.94bil. This is the highest since 2014.

“The increasing volume is an indicator of more investors joining the fray,” said the analyst.

The ringgit also perked up against the US dollar and strengthened to 3.9945 yesterday, the strongest level since August 2016.

Crude oil prices continue to climb with the Brent Crude rising above US$67 per barrel. Apart from a brief spike in May 2015, this is the highest price levels it has reached since December 2014, when the oil price started its slide down.

Adding to the optimism, the country’s latest trade data for November showed that exports exceeded expectations and rose to a monthly high of RM83.5bil. This is an increase of 14.4% from last year.

The head of UOB Kay Hian Malaysia Research, Vincent Khoo, expects global and local conditions to be favourable for the local stock market as sentiment builds up for the GE14.

“Malaysia has been a laggard and now it is reversing its underperformance. Liquidity is strong locally and internationally as there is more foreign funds participation.

“Economic numbers are strong and export momentum continues to be solid,” Khoo said.

Socio Economic Research Centre executive director Lee Heng Guie said there were continued optimism and positive sentiments on the global economy and markets.

He said the tax reforms in the US would beef up corporate earnings while central banks around the world were raising rates.

The impending GE14, he added, spurred investors’ interest in the stock market and the recovery in oil prices continued to lift the demand for ringgit.

He said the ringgit had a good rally since the last Bank Negara meeting and the upcoming meeting on Jan 29 might see the central bank review its overnight policy rates (OPR) upwards.

The OPR now is 3.25% and many are expecting it to increase, a move that would spur banks to raise their interest rates.

Additionally, Lee said trade data was better than expected and as long as the macro numbers and earnings deliver, it would lift sentiments on market.

Nonetheless, he said investors might be a bit cautious when the dissolution of Parliament was announced.

Meanwhile, Oanda head of trading Asia-Pacific Stephen Innes said Bursa Malaysia was playing catchup as the ringgit remained undervalued in a lot of fund managers’ portfolio.

“But I think the current run will take us to 3.90 (against the US dollar) but at this stage, I think the market is starting to factor in the Bank Negara rate hike in January.

“So we may see a slower appreciation of the ringgit and we should expect profit taking ahead of the rate decision (by BNM) later in the month,” he added.

On the external front, Inness said the global equity market rally was benefiting from higher commodity prices in general and specifically oil prices.

“The recent supply disruptions are having a much more significant impact on prices given Opec’s (Organisation of the Petroleum Exporting Countries) recent production cut and the market is certainly much tighter than it has been in the past.

“Rising oil prices bode well for the FBM KLCI given that oil and gas constituents play a big role in the KLCI make-up. However, I don’t think this is strictly an isolated oil play but it is also rallying on the global growth narrative which is supporting export-oriented firms,” Innes said.

Experts see good tidings in firmer currency

Back in favour:People queuing to change the ringgit for US Dollar at a money exchange outlet in Bangsar, Kuala Lumpur.

PETALING JAYA: Lower import costs and more affordable overseas education are among the benefits brought about by a firmer ringgit and bullish stockmarket.

National Chamber of Commerce and Industry of Malaysia (NCCIM) president Tan Sri Ter Leong Yap said the rise in the ringgit is a sign of growing confidence in the nation’s economy.

“These are good signs which have set a feel-good mood for the market. What is most important is for the ringgit to remain stable as business needs this rather than having to hedge on the foreign exchange,” he said.

However, a stronger ringgit could act as a “double-edged sword”, Ter added, as exports would now cost higher.

“Exporters may not make the windfall profit as before but they had adjusted to this,” said Ter, who is also Associated Chinese Chamber of Commerce and Industry of Malaysia (ACCCIM) president.

Malaysia Retail Chain Association (MRCA) president Datuk Garry Chua said a stronger ringgit bodes well for retailers that rely heavily on imports.

“In the end, the shoppers will benefit as cost of products would be lower due to the exchange rate,” he said.

Chua said the positive stock run was also good news for retailers and consumers.

“People tend to spend more due to easy earnings from the market and this is good for business,” he said.

Malaysia Associated Indian Chambers of Commerce and Industry (MAICCI) president Tan Sri Kenneth Eswaran said the positive developments showed that the nation’s economic transformation is on the right track.

“The ringgit breaking the RM4 barrier and the stock market climb are signs showing the Government’s economic transformation plans are bearing fruit. Traders and consumers will now enjoy lower import costs,” he said.

Taylor’s University deputy vice chancellor Prof Dr Pradeep Nair said the ringgit’s rally is expected to continue and strengthen below the RM4 region.

“For the education sector, this will be beneficial for parents who wish to send their children abroad to do part or whole of their studies to countries like the US, UK and Australia, should the trend continue,” he said.

He said a firmer ringgit would not have a major impact on incoming foreign students.

“We are still relatively cheaper than other countries that use English as the medium of teaching and we will remain one of the preferred destinations for foreign students looking for affordable, quality education,” he said.

Sunway Education Group senior executive director Dr Elizabeth Lee said some parents would be more willing to send their children abroad for further studies.

“I sense that enthusiasm in parents who enrolled their children with us. They are more confident of supporting their higher education throughout,” she said.

By martin carvalho The Staronline

Ringgit boost for investors, importers 

Companies which lost out during a low ringgit recouping fast

Ringgit on uptrend: People queuing up to change money at a money changer. The ringgit has broken past the crucial 4.00 level.

THE New Year is in, tides are changing and the ringgit is recovering from the past two year’s extreme blues.

The long-awaited reprieve has finally come for certain consumer companies that import intermediary goods for their production cycle.

Foreigners who have taken advantage by accumulating and buying into the equity and/or bond market when the ringgit was at a weaker level last year, would be firmly in the money now.

Analysts see the local currency as now being on a cruise control climb mode moving to new highs in the past week and possibly in the near future.

They note that the foreign buyers would see two-way gains and would be able to realise their gains if they choose to.

“If they liquidate and take the money out they will realise the gains and benefit. Last year the ringgit strengthened by almost 10.4%. Ringgit already broke the crucial 4.00 level, assuming that they make money from the market and take it out, they will also pay less to convert to US dollar,” Socio Economic Research Centre’s executive director Lee Heng Guie tells StarBiz Week.

The ringgit had seen a gain of 0.64% after we entered the New Year, adding to its gains that was achieved in the past two months of 5.63%.<

Currency strategists agree that the next crucial psychological mark would be the 3.80 level that is the infamous currency peg level some years after the 1997 Asian Financial Crisis.

The recovering oil prices with the lifting of equity markets due to strong global sentiment aided gains in the ringgit, Lee says.

The FBM KLCI saw a strong upward move as investors celebrated Christmas and ushered in the New Year thereafter.

The benchmark index had gained some 4.6% since Dec 19 to yesterday’s close at 1,817.97.

Meanwhile, the other companies that will stand to gain are consumer-driven companies especially those that have imported intermediary goods to manufacture or complete end products.

Lee says the strengthening ringgit, if it is sustained, would eventually help to boost the consumer sentiment index (CSI).

In the latest reported third quarter of 2017, the Malaysian Institute of Economic Research (Mier) said the CSI continued to remain weak with the index having retreated further to 77.1. “Anxieties over higher prices grow and (there are) burly spending plans amid waning incomes and jobs,” the Mier said at the release of third quarter CSI figures then.

Any CSI level below the 100 indicates weakness on the consumer front.

Lee says he is hopeful the stronger ringgit would help eventually translate to additional cost savings to the consumer in the form of lower prices.

Meanwhile, MIDF Research’s consumer stocks analyst Nabil Fithri says not all consumer companies would automatically gain from the strengthening ringgit.

He notes that the gainers among the consumer companies would mainly be those which derive their sales from the local market and have imported intermediary goods in the supply chain.

“On average, the companies that import their raw materials lock in the prices through forward contracts for the upcoming six months. So, if there are any gains to their profit margins, it would be seen in the second half of the year,” he says.

Among the companies that stand to gain from this trend are the major consumer food companies such as Fraser & Neave Holdings Bhd (F&N), Nestle (M) Bhd and Dutch Lady Milk Industries Bhd.

Strong gains: The Dutch Lady Milk Industries factory in Petaling Jaya. The company’s stocks had been making strong gains since last year.

Better profit: Nestle Malaysia is one of the companies gaining from a strong ringgit.

All three stocks have been making strong gains in their share prices last year despite their high base.

Observers note that a common theme today that belies these stocks are that they derive their sales from the local market, with minimal or zero exports. Hence they will benefit from strong gains should the local currency appreciate further.

“Their raw materials that form a big part of their production are ingredients such as milk, coffee and sugar which are not readily available locally. They need to be imported and these are denominated in US dollar,” an analyst with a local research outfit says.

Two of those stocks that were mentioned above topped the gainers list on Friday: Nestle rising by RM1.20 to a new historical high of RM103.80 and F&N hitting an alltime high of RM27.82.

Investors may also want to train their sights on the smaller-capitalised consumer stocks some of which had been at a disadvantage earlier due to the weakened ringgit.

The stocks in this space include Apollo Food Holdings Bhd, Hup Seng Industries and Berjaya Food Bhd.

Apollo Food, the maker of packaged confectionery products see a big part of their sales being derived locally and their food is usually stocked in the school canteens.

The stock is trading at a current price to earnings ratio (PER) of 23.6 times and forward financial year 2018 ending April 30 (FY18) PER of 18.96 times.

The company’s second quarter profit had dropped by 11.1% to RM3.82mil primarily due to the lower ringgit then compared to the same quarter a year ago.

When the ringgit was trading above the 4.00 level then, the company had said in its prospectus that its operating environment was more challenging due to the increase in costs of raw materials.

Meanwhile, Berjaya Food Bhd could see further gains ahead as the ringgit continues its ascent.

The company owns half of the popular Starbucks franchise in Malaysia beside owning the worldwide Kenny Rogers Roasters franchise after acquiring KRR International Corp of the US in April 2008.

AmInvestment Bank Research said last month that it believed the worst is over for Berjaya Food with KRR’s robust same store sales growth following the disposal of KRR Indonesia.

The research house had highlighted that Berjaya Food would benefit from a stronger ringgit.

AmInvestment Research maintained its buy recommendation on Berjaya Food with fair value of RM1.91 per share.

“Valuations are pegged to a PER of 25 times FY19 forward, reflecting a 20% premium to its historical valuations. We think that it is justified as Berjaya Food has significantly enhanced earnings visibility following the disposal of KRR Indonesia, attractive growth off a low base and a stellar Starbucks brand,” it says.

By daniel khoo TheStaronline

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Penang hit by floods again !

https://youtu.be/ooyXvqmxbvw

GEORGE TOWN: Some 20 houses located on a slope in Hong Seng Estate in Mount Erskine were flooded due to blocked underground drainage.

“Not again!” was the reaction of factory worker S. Kalaiselvi, 42, who found herself neck-deep in water at her house at 2am yesterday after a three-hour downpour.

She waded through the water to higher ground with her parents, who are in their 60s.

“I have been living here for 26 years and only now am I seeing such floods,” said Kalaiselvi, who also had to move out when her house was hit by the massive floods on Nov 4 and 5 last year.

Her father Subramanian Peru­mal, 68, said he was still waiting for the relevant authorities to resolve the problem.

At the site, firemen had to install a water pump to draw out the rainwater, which flooded most of the units to waist level at one point.

It was the third time that the area was flooded since October last year.

Last Oct 30, blocked underground drainage caused floodings affecting six houses during an evening downpour, followed by massive floods during the Nov 4 and 5 storm.

On Sept 29 last year, seven houses in the estate were also affected by soil erosion.

Consultant engineer Datuk Lim Kok Khong had said the soil erosion was due to water seeping under the ground.

Kebun Bunga assemblyman Cheah Kah Peng, who has been barred from helping out with the registration of flood victims for the one-off RM700 aid given by the Penang government, was also there but offered no concrete solution to the floods in the area.

Pulau Tikus assemblyman Yap Soo Huey said nine houses had to be demolished to make way for repair works.

She said they had offered owners of the nine affected houses a low medium-cost unit each as compensation, but the residents insisted on staying put.

Earlier, Penang Flood Mitigation Committee chairman Chow Kon Yeow said the latest floods were caused by the continuous downpour that began on Thursday evening.

“The rain also coincided with a 2.34mm high tide at 2.30am yesterday,” he said.

Chow said the short-term measures to deal with the floods were to dig and deepen the rivers, and carry out upgrading and cleaning works at riverbanks to ensure that there were no blockages.

In Bukit Mertajam, a low wall sealing off the entrance to a lorry driver’s house prevented it from being submerged in floodwaters all over again.

While the water on the road outside was up to knee level, Heng Kai Chin’s home remained relatively dry, thanks to the metre-high barrier of cement and bricks.

But Heng, 43, still skipped work yesterday to keep an eye on the flooding.

A state flood report said water had entered at least 100 homes in Bukit Mertajam.

Source: The Staronline

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PENANGITES woke up to a cloudy and rainy morning as continuous downpour lasting for hours inundated several parts of the state.

Wet day: Students wading through floodwaters at SMK Mak Mandin in Butterworth, Penang. (Left) Motorists braving through the waters on the flyover at Sungai Nibong, Bayan Lepas. — MUSTAFA AHMAD/The Star and social mediapic

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Critical trends to watch in 2018

There are many issues on a fast and slow boil and some of them could reach a tipping point in the new year

ANOTHER new year has dawned, and it’s time to preview what to expect in 2018.

The most obvious topic would be to anticipate how Donald Trump, the most unorthodox of American presidents, would continue to upset the world order. But more about that later.

Just as importantly as politics, we are now in the midst of several social trends that have important long-term effects. Some are on the verge of reaching a tipping point, where a trend becomes a critical and sometimes irreversible event. We may see some of that in 2018.

Who would have expected that 2017 would end with such an upsurge of the movement against sexual harassment? Like a tidal wave it swept away Hollywood producer Harvey Weinstein, film star Kevin Spacey, TV interviewer Charlie Rose and many other icons.

The #MeToo movement took years to gather steam, with the 1991 Anita Hill testimony against then US Supreme Court nominee Clarence Thomas being a trailblazer. It paved the way over many years for other women to speak up until the tipping point was reached. So, in 2018, expect the momentum to continue, and in more countries.

Another issue that has been brewing is the rapid growth and effects of digital technology. Those enjoying the benefits of the smartphone, Google search, WhatsApp, Uber and online shopping usually sing its praises.

But the “Fourth Industrial Revolution” is like Dr Jekyll and Mr Hyde. It has many benefits but also serious downsides, and the debate is now picking up.

First, automation with artificial intelligence can make many jobs redundant. Uber displaced taxis, and will soon displace its drivers with driver-less cars.

The global alarm over job losses is resonating at home. An International Labour Organisation report warning that 54% of jobs in Malaysia are at high risk of being displaced by technology in the next 20 years was cited by Khazanah Research Institute in its own study last April. TalentCorp has estimated that 43% of jobs in Malaysia may potentially be lost to automation.

Second is a recent chorus of warnings, including by some of digital technology’s creators, that addiction and frequent use of the smartphone are making humans less intelligent and socially deficient.

Third is the loss of privacy as personal data collected from Internet use is collected by tech companies like Facebook and sold to advertisers.

Fourth is the threat of cyber-fraud and cyber-warfare as data from hacked devices can be used to empty bank accounts, steal information from governments and companies, and as part of warfare.

Fifth is the worsening of inequality and the digital divide as those countries and people with little access to digital devices, including small businesses, will be left behind.

The usual response to these points is that people and governments must be prepared to get the benefits and counter the ill effects. For example, laid-off workers should be retrained, companies taught to use e-commerce, and a tax can be imposed on using robots (an idea supported by Bill Gates).

But the technologies are moving ahead faster than policy makers’ capacity to keep track and come up with policies and regulations. Expect this debate to move from conference rooms to the public arena in 2018, as more technologies are introduced and more effects become evident.

On climate change, scientists frustrated by the lack of action will continue to raise the alarm that the situation is far worse than earlier predicted.

In fact, the tipping point may well have been reached already. On Dec 20, the United Nations stated that the Arctic has been forever changed by the rapidly warming climate. The Arctic continued in 2017 to warm at double the rate of the global temperature increase, resulting in the loss of sea ice.

These past three years have been the warmest on record. The target of limiting temperature rise to 2°C above pre-industrial levels, a benchmark just two years ago by the UN’s top scientific climate panel and the Paris Agreement, seems outdated and a new target of 1.5°C could be adopted in 2018.

But it is much harder to meet this new target. Will political leaders and the public rise to the challenge, or will 2018 see a wider disconnect between what needs to be done, and a lack of the needed urgent response?

Another issue reaching tipping point is the continuing rise of antibiotic resistance, with bacteria mutating to render antibiotics increasingly ineffective to treat many diseases. There are global and national efforts to contain this crisis, but not enough, and there is little time left to act before millions die from once-treatable ailments.

Finally, back to Trump. His style and policies have been disruptive to the domestic and global order, but last year he seemed unconcerned about criticisms on this. So we can expect more of the same or even more shocking measures in 2018.

Opposition to his policies from foreign countries will not count for much. But there are many in the American establishment who consider him a threat to the American system.

Will 2018 see the opposition reach a tipping point to make a significant difference? It looks unlikely. But like many other things in 2018, nothing is reliably predictable.

Global Trends by martin khor

Martin Khor is executive director of the South Centre. The views expressed here are entirely his own.


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