PM launches RM26b financial district

By Max Koh of theedgeproperty.com

Tuesday, 31 July 2012 15:13

KUALA LUMPUR (July 31): Prime Minister Datuk Seri Najib Razak yesterday launched the city’s new financial district, called the Tun Razak Exchange (TRX), which has an indicative gross development value of RM26 billion.

In appreciation of the contribution by Malaysia’s second Prime Minister Tun Abdul Razak who was his father, Najib said TRX, renamed from the Kuala Lumpur International Financial District (KLIFD), is expected to attract over 250 global companies and is slated to become a global centre for international finance, trade and services.

“What began as an idea for KLIFD has evolved into something larger and more inclusive,” Najib said at the launch of TRX. With 1Malaysia Development Bhd (1MDB) as the master developer, the TRX will be built on a 60-acre (24ha) land off Jalan Tun Razak and will take 15 years to complete.

Najib said 1MDB had managed to lock in an international partner for the entire first phase of TRX and secured over RM3.5 billion in foreign direct investment (FDI). “It is significant to note that this international partner is the first mover in establishing a strong ecosystem to support the infrastructure for the exchange,” he said.

However, Najib said details and the identity of the partner will only be revealed in September. To attract foreign investment, Najib said some of the incentives to be introduced are an income tax exemption of 100% for 10 years, stamp duty exemption on loan and service agreements, industrial building allowance and accelerated capital allowance for companies.

Najib: What began as an idea for KLIFD has evlved into something larger and more inclusive.

Property developers that qualify for the TRX project will also enjoy a 70% income tax exemption for five years. To spearhead the development of TRX, Najib had formed a special task force to review and implement policies to attract investors.

The task force is chaired by Minister in the Prime Minister’s Department Tan Sri Nor Mohamed Yakcop and includes senior members from the Ministry of Finance, Bank Negara Malaysia and the Securities Commission Malaysia.

“We expect more than 250 of the world’s leading companies to locate here, creating 500,000 jobs directly and indirectly. About 40,000 would be knowledge workers specified to finance services,” said Najib.

The prime minister added that TRX is expected to help further grow the Islamic financial sector in Malaysia.

“I am committed to doing everything I can to make it easier for investors to participate in Malaysia’s Islamic finance markets,” he said. Najib is the chairman of 1MDB.

With the first phase expected to be completed in 2016, the TRX will have offices, residences, retail space and public institutions. A 14-acre park is also included at the heart of TRX.

The TRX was first announced by Najib in 2010. It was one of the early Entry Point Projects under Malaysia’s Economic Transformation Programme. Since then, 1MDB has relocated most of the occupants and businesses to the area.

It called for a tender process for major foundation works last December but had not announced the winners. However, the ground-breaking ceremony was conducted at the launch yesterday.

This article appeared in The Edge Financial Daily on July 31, 2012.

RM500m worth of properties to be up for sale at Mapex

By Bernama Thursday, 26 July 2012 19:03

PETALING JAYA (July 26): Some RM500 million worth of properties from both local and foreign developers will be up for sale at the Malaysia Property Expo (Mapex) in October. Mapex committee chairman Datuk Ng Seing Liong said over 50 developers have registered to take up 145 exhibition booths at the event where a total of 227 booths are expected to be set up. "Though we have not finalised the total number of foreign participants attending this year's Mapex, we expect properties on sale to be around RM500 million," he told reporters on Thursday. Mapex, a property exhibition event, is hosted by the Real Estate and Housing Developers' Association (Rehda). This year's three-day Mapex will be held at the Mid Valley Convention Centre here from Oct 19. Ng said Rehda is expecting at least 50,000 visitors to the exposition, which will also feature several talks by experts in the property investment and legal fields. "Mapex is an ideal platform gathering of property developers, financiers, legal experts and also property consultants all under one roof to assist the home buying public in making informed decision in their property investment," he said. He said over the years, Mapex has grown to become the signature property event of the country, receiving an average participation of about 80 developers in each exposition. "Firmly established as the leading property exhibition in Malaysia since its inception in 2000, the latest edition of Mapex brings together property developers from all over Malaysia to offer a wide range of properties to prospective buyers and investors," he said. Among the developers who have confirmed their participation are S P Setia Bhd, Sime Darby Properties Sdn Bhd, Perbadanan Kemajuan Negeri Selangor (PKNS), IJM Properties Sdn Bhd, Berjaya Land Bhd, I & P Group Sdn Bhd, Lebar Daun Sdn Bhd and Sunway Integrated Properties. — Bernama

Sunway's earning sustainable, says MIDF

KUALA LUMPUR: Sunway Bhd's earnings will be sustainable despite the deterioration in the property market, said MIDF Research.

In a note today, it said Sunway will be helped by the higher construction orderbook replenishment as well as consistent earnings from the property investment segment. 

"Construction earnings contribution will improve substantially in financial year 2013 as the light rail transit and My Rapid Transit (MRT) move into a more advanced stage of construction," it said. 

MIDF said construction orderbook replenishment of Sunway has exceeded its initial target of RM1.5 billion and year-to-date, the company has secured RM1.6 billion worth of construction works which also included some internal jobs.

"The MRT package V4 from Section 17 to Semantan accounted for 73 per cent of year-to-date replenishment," it said. 

It said Sunway's property investment segment will continue to receive consistent earnings distribution and real estate investment trust (REIT) management fees from Sunway REIT 

MIDF Research has maintained its 'buy' call on Sunway with an unchanged target price of RM2.60.

By Bernama

Bank Negara should extend guidelines to non-bank lenders

To ensure overall market sustainability, Bank Negara Malaysia's responsible lending guidelines should also cover non-bank financial service providers, said Ronnie Lim, Executive Vice President and Head of Consumer Banking at Alliance Bank Malaysia Bhd.

"The objective of (Bank Negara's) Guidelines on Responsible Finance is to promote a sustainable retail financing market by requiring financial services providers to engage in prudent, responsible and transparent practices."

"Clear expectations are set on the financial services providers to help consumers make informed borrowing decisions," he said in a report by Business Times Malaysia.

At present, consumer financing companies like AEON Credit Service are not under the purview of Bank Negara's responsible lending guidelines, since these companies are not covered by the Banking and Financial Institutions Act.

Consumer financing firms obtain their money lending licences from the Housing and Local GovernmentMinistry, as stipulated under the Moneylenders Act 1951.

Although Lim considers the guidelines as temporary turbulences, he explained that these measures ensure a more sustainable development not only within the financial industry, but in the country'seconomy as well.

"It's a good thing to do to protect banks and consumers. I look forward to more guidelines that are good for long-term growth of the country."

Lim also noted that the segments mostly affected by the guidelines are the personal loans and credit cards.

"The impact is not really on the hire purchase and housing loans. People still need to buy cars and affordable houses."

"Although the approvals are declining, the demand (for car and housing loans) is still up," added Lim.

Cement price hike could hurt housing affordability

Developers and distributors of construction materials warned of an increase in property prices should the planned price hike in cement materials.

"Talk is rife that cement prices will be increased on 1 Aug by RM1 per bag of 50kg or RM20 per metric tonne," said New Ching Liong, President of Building Materials Distributors Association of Malaysia.

He said that the impending price increase will negatively affect contractors, makers of construction materials and members of the Real Estate and Housing Developers' Association Malaysia (REHDA).

Solid increases in home price have already diminished housing affordability across Malaysia, particularly in Penang and Klang Valley.

"Cement is perishable, it has a shelf life, so for how long can you lock in prices? It is also up to the cement manufacturers whether the prices can be locked in or not," he noted.

Datuk Ng Seing Liong, Past President of REHDA, estimates that the RM1 price hike could increase the construction cost of a terrace house by RM1,000 to RM2,000.

He noted that although the costs of construction materials in existing projects have already been locked in to minimise the impact of the price increase, this is could not be done in new developments.

He also questioned the reason behind the price hike.

"Why would they suddenly want to increase the prices? Most of our members and the industry players were shocked to learn about it."

"We hope industry players are consulted before the official announcement of the increment," he added.

Malaysia & Singapore to embark on rail project soon

Malaysia and Singapore will soon discuss the high-speed rail project linking the city-state and Kuala Lumpur, according to Tan Sri Syed Hamid Albar, Chairman of Land Public Transport Commission (SPAD).

"The high-speed rail is for Malaysia. It is an exciting project. If the government decides to go ahead with the project, the engagement will be at the top level. There are many parties interested in the project," he said in a report by the Business Times Malaysia.

"There are certain decisions that need to be made by thegovernment like whether the high-speed rail will link Kuala Lumpur and Johor Bahru, or Singapore."

"SPAD will put forward its recommendations to the government after completing the feasibility study. The government will have 2012 to make its own decision before approaching Singapore. The study is positive so far."

To date, SPAD is conducting the second stage of the feasibility study, which is determining the stops in-between, the terminal points and rail line's alignment.

Azmi Abdul Aziz, Chief Development Officer at SPAD, noted that the tenders for the project are expected to be called by end-2013.

Regarding the project's cost, Azmi confirmed that 95 percent of the investments will be domestic driven; 30 percent of the cost will go to rolling stocks, while 60 percent will be for infrastructure development.

The cost will also "depend on the alignment in Malaysia" and whether the project would involve an underground rail link, revealed sources.

Moreover, the high-speed rail link is expected to span from 300km to 400km.

KL's Banyan Tree Signatures launching units in Singapore

By Romesh Navaratnarajah

Banyan Tree Signatures (pictured), Kuala Lumpur's new landmark, will launch premium units in its residential component - Banyan Tress Residences at the Fullerton Hotel Singapore this weekend (28 - 29 July).

Set to become one of the tallest residential towers in Malaysia's booming capital, the project is jointly developed by Pavilion Kuala Lumpur and Banyan Tree Holdings.

Scheduled for completion by end-2015, the luxurious hotel-plus-residence property comprises the Banyan Tree Signatures Hotel and Banyan Tree Residences.

The partially-furnished Banyan Tree Residences comes equipped with high-end imported kitchens, wardrobes, electrical appliances, sanitary wares and fittings. It also features meeting rooms, a 58m infinity pool, gymnasium and dance studio.

Meanwhile, Banyan Tree Signatures Hotel boasts the first-ever Couture Concierge service, including yacht, limousine and private jet booking facilities. The hotel is connected via private link-bridge to Pavilion Kuala Lumpur, offering residents a world-class shopping experience.

Marketed in partnership with local real estate agent SQFT Global Properties Singapore, the private residences are going for around RM1,900 psf to RM2,900 psf.

Commenting on the property's appeal, Dave Loo, Managing Director of SQFT Global Properties, said: "With the master plan that lays in the Greater Kuala Lumpur's initiatives by the Malaysian government, Bukit Bintang is set to become Kuala Lumpur's international financial centre which will transform the city into a leading global metropolis."

Aside from the popularity of the Banyan Tree brand, Kuala Lumpur as a location "may also be home to the world's first Harrods Hotel", he added.

"All these exciting developments happening at where Banyan Tree Signature is located at is going to value add to the project and provides our investors an opportunity to own a perfect investment option."

MAPEX Kuala Lumpur to be held in October

Jul 26, 2012

PETALING JAYA: REHDA will be holding the Malaysian Property Exposition 2012 (MAPEX 2012) in Midvalley October. Themed “Home and Abroad,” MAPEX would open its doors to the public from 19 October to 21 October 2012 at the Mid Valley Exhibition Centre, Kuala Lumpur. The latest edition of MAPEX will bring together property developers from all over Malaysia to offer a wide range of properties to prospective buyers and investors. Datuk Ng Seing Liong, chairman of the MAPEX Committee, said, "MAPEX is an ideal platform gathering property developers, financiers, legal experts and also property consultants all under one roof to assist the home buying public in making informed decision in their property investment. "We are expecting at least 50,000 visitors to this exposition,” he continued. To date more than 50 developers have registered taking up 145 booths out of the 227 booths offered in Hall 1, 2 and 3 of the Mid Valley Exhibition Centre, including SP Setia Berhad, Sime Darby Properties, Perbadanan Kemajuan Negeri Selangor (PKNS), IJM Properties Sdn Bhd, Berjaya Land Berhad, I & P Group Sdn Bhd, Lebar Daun Sdn Bhd, Sunway Integrated Properties and many more. The exposition will also feature financial institutions, the Tribunal for Homebuyers Claims, the Treasury Housing Loan Division, EPF (KWSP) and the National Housing Department of the Ministry of Housing and Local Government

Housing fund poser

COMMENT
By CHRIS YONG

Is the 3% deposit imposed enough to revive abandoned projects?

Recently, it was reported that an amendment to the housing Development Act 2012 will require developers to set aside 3% of the gross development cost to be placed in a fund that will be managed by the Housing and Local Government Ministry. The proceeds from the fund will be used to revive abandoned projects.

The Housing Developers Authority (HDA) will only issue licensed permit once the 3% is paid (to be enforced end of this year). It is a good move but the quantum may be insufficient to rectify the problem.

The reason being, it all depends at what stage of construction the projects were abandoned. If they wereat 20% completion, then 3% allocation may be insufficient, unless we assume the balance 80% can be sourced from the fund.

It remains unclear how the fund works. A check with the Housing Ministry indicates that the 3% allocation can be refunded to the developer concerned if the project is completed. From what I understand, the 3% allocation is then not considered as a contribution to the fund since the deposit is refundable.

Fund or not?

I fail to understand how 3% can be sufficient unless the completion-to-date reaches 97% development cost (assume also 97% physical completion) and the amount to complete requires the balance 3%. The fund looks and sounds like a fund but in reality, it is not truly a “fund”.

Assuming all the developers completed their projects and there is no abandonment, what does it mean? It means all the deposits will be refunded and there will be no money in the fund, so I don't see how the fund will help other abandoned projects.

I used to have a friend in Rehda institute who told me that it had in the past actually kick-started an “insurance” concept where all members could contribute some money into the pool. This money was to be used to help members in the event a project was abandoned.

Somehow, it did not take off.

There are many causes of abandonment but invariably the developers who cause problems are the ones that are inadequately capitalised to carry out development projects. In other words, they are not financially strong, they rely too heavily on bank financing and buyers to fund their projects.

The development risk is skewed towards the consumers, meaning they take bigger risk in the event of a failure.

Saving projects

Everybody thinks property development is very profitable and they want to jump onto the bandwagon to make a fast buck. Many do not have the necessary experience and don't bother to do market studies. The result is that they have a wrong product in a location where there is no demand.

Others get into trouble because they are too ambitious and have financially over-stretched themselves. Some of these projects were designed-driven rather than market driven.

When a project is abandoned, it leads to legal and technical problems. Reviving abandoned projects is no easy task.

In a private free market, white knights (except the Government) will only come in if they can make money upon reviving a project.

I have seen cases where liquidators act as developers. But they do not use their own money. They use the fund accumulated from the additional top up from buyers, money in the developer's account, buyers' past payments and sale of remaining units. In these cases, buyers waive their late delivery claims.

When the Government comes in to help, the objective is different. The motive is not profit but a sense of social responsibility. However, they only focus on low/medium cost projects.

I have also seen bridging financiers acting as temporary “developers” who use their own internal fund to complete the projects. They take calculated risk while the white knights will only proceed if the projected result shows viability.

Their injection of fund varies, depending on the stages of completion to date. Some are abandoned at 50% completion, some at 90%. There are times when internal funding is inadequate and external funding is required. There is, therefore, no pre-determined amount required to complete an abandoned project.

Coming back to the 3% allocation, smaller developers complain of high opportunity cost involved when their money is locked up in the HDA account. Bigger developers are well capitalised and have no problem with the 3% ruling.

Buyers at risk

All developers make provisions of between 3% and 5% for contingency or cost variance. The bigger developers will use the provision to meet the requirement. Smaller developers argue that it is a burden and barrier to entry into the industry.

My question is: “A property development often runs into hundreds of millions of ringgit. If they cannot pay the 3% development cost, what does that tell you?”

They want to have their cake and eat it too. The problem is, most developers want to fund their projects almost entirely by purchasers' cashflow. I can understand if they are unable to come up with 100% equity but how about 30% to 40% own capital and the rest from financiers or buyers' progressive payments?

Lastly, what is the level of enforcement by the authorities? What is the point of having all the rules and regulations if they are not enforced?

We have cases where developers do not even apply for a developer's license. Hence, they do not have to pay the RM200,000 deposit for the developer's licence and open a HDA account. Buyers' interest are therefore not protected.

What guarantee is there that they will play by the rules and pay the 3%?

People will circumvent the system if malpractices are allowed to go unpunished.

I hope the authority will take a tougher stance to safeguard buyers as well as the industry from the few rogue developers who give the industry a bad reputation.

Chris Yong is the principal of Rochester Properties.

Rising KL property prices drive investors away: Axis REIT

Klang Valley's property market is "saturated" and high land prices are pushing potential investors away into newer but cheaper areas, according to Axis Real Estate Investment Trust (REIT) Managers Bhd.

In Shah Alam, for instance, companies were disposing their land prior to moving out to other areas such as Nilai, noted Stewart LaBrooy, Chief Executive Officer and Executive Director of Axis REIT.

"The Klang Valley is now too expensive for a lot of investments (such as) in Shah Alam. Land prices for industrials in Shah Alam for recent transactions are now about RM120 psf compared with Petaling Jaya 10 years ago at RM90 psf," he said.

"It is getting to a point where Shah Alam will not be able to have price points to support industries per se."

He added that the rapidly increasing house prices are forcing the engineers and workers to move out of the Klang Valley. Thus, "industries today are lacking a good pool of labour who are close to the source."

Because of the saturated market status, Axis REIT is now slated to focus on property markets in Johor Bahru and Penang and will make adjustments to their strategy.

The company had recently completed the purchase of 1 Logistic Dc in Bayan Lepas and Prai in Penang, and is eyeing two properties in Johor.

"We are also buying two properties in Petaling Jaya but this came about basically because it is owned by our promoters of the REIT. One of the directors owns the building so we can get it at a very good price," said LaBrooy, adding that the company got the property at a big discount and will redevelop it to get a better return for their shareholders.

Presently, Axis REIT is in negotiation to acquire properties in the Port of Tanjung Pelepas in Johor and will likely purchase seven additional properties by the end of 2012.

LaBrooy said it is quite challenging yet very rewarding to look for good assets to put into the REIT.

AirAsia wants out

END OF COLLABORATION?: Low-cost carrier will seek to terminate all joint-venture agreements with Malaysia Airlines, says source

Low-cost carrier AirAsia Bhd wants to opt out of all joint-venture agreements with national carrier Malaysia Airlines (MAS), a source says.

AirAsia decided at a board meeting last week that it would seek to terminate its agreements with MAS soon, according to the source.

AirAsia group chief executive officer (CEO) Tan Sri Tony Fernandes said no comment when queried about the matter through text messages, while calls and text messages to AirAsia Malaysia
CEO Aireen Omar went unanswered.

MAS chief executive officer Ahmad Jauhari Yahya did not respond to a text message to him.

A termination of the memorandum of understandings (MOUs) between AirAsia Bhd and MAS would effectively wipe out the remnants of a deal between Khazanah Nasional Bhd and Tune Air Sdn Bhd that had gone awry.

In August 2011, Khazanah and Tune Air signed a deal to swap part of its holdings in MAS and AirAsia respectively, in a move to facilitate a collaboration between the two carriers.

In May 2 however, the deal was cancelled following an uproar by MAS employees.

A supplemental agreement between AirAsia and MAS instead took its place as part of a move to salvage its initial collaboration plans.

Two MOUs were signed on May 2 2012 whereby one was to focus on the setting-up of a joint venture company to provide aircraft component maintenance support and repair services.

Another was for the establishment of a special purpose vehicle by MAS, AirAsia and AirAsia X to improve value for money and to increase competitiveness through procurement synergies.

An analyst, who declined to be named, said the news of a possible cancellation of the joint ventures between MAS and AirAsia is not surprising.

He said MAS employees are reluctant to cooperate with AirAsia, so it would have been difficult for them to work together.

"The JVs would have benefited them both though," said the analyst.

The agreements between AirAsia and Malaysia allow for a termination by mutual agreement anytime within a six-month period from the date of the signing.

Such a termination however, will not release a lock up period of six months that disallows both parties from talking to, negotiating or cooperating with any other parties.

Read more: AirAsia wants out http://www.btimes.com.my/Current_News/BTIMES/articles/20120723235232/Article/#ixzz21YHGttxY

Hong Kong offices top most costly list in the world

HONG KONG (July 18): Hong Kong's Central maintained its ranking as the most expensive place in the world to rent a top-grade office in the first quarter of the year — despite a fall in rents in the district.

A survey of rental charges for a 10,000 sq ft grade A office in 133 prime commercial locations worldwide by commercial property consultancy CBRE found that a premier office rent in Central was the world's priciest, at US$249 (RM787) per sq ft per year as at the end of the first quarter.

Although the rent declined about 17% from a year ago, it was still 13% higher than the top rent fetched by a similar-sized office in the West End of central London, which was ranked the second most expensive location in the world.

Tokyo, where prime office space fetched a rent of around US$186.49 per sq ft a year, placed third in the global rankings. Beijing's Jianguomen area took fourth spot with US$181 per sq ft.

"Hong Kong's appearance at top of the rankings reflects the lack of supply feeding into the office market," said Rhodri James, CBRE's executive director of office services.

But Central rents had fallen considerably from peak levels by the end of the first quarter, James noted in the report, and this made the city relatively more competitive and attractive to international tenants.

Hong Kong's West Kowloon district, where rents of grade A offices were about US$159 per sq ft per year, was ranked as the seventh most expensive office location in the world, the report said.

"We are also seeing strong interest in other decentralised areas of Kowloon, such as East Kowloon, where rental levels are more than 65% below those of West Kowloon and almost 75% less than the top rents in Central," James said.

Of the 133 markets, 80 reported a rise in grade A office rent year-on-year, led by rent rises in Beijing's Jianguomen and Finance Street of nearly 50% and 42% respectively. A total of 24 markets saw declines in office rents, including Hong Kong's Central, Abu Dhabi (-16.7%), and Thessaloniki in Greece (-16.3%).

According to property consultancy Knight Frank, monthly rents of premium offices in Central fell 7.1% from March to HK$140 (RM57.04) per sq ft in June, while rents for non-premium office space fell 3.8% to HK$109 per sq ft.

Rents in Quarry Bay and East Kowloon rose 4.4% and 0.6% respectively to HK$51.60 and HK$33.90 per sq ft a month. A report from property consultancy Jones Lang LaSalle noted that the rise in yuan deposits in Hong Kong was instrumental in driving growth in yuan trade settlements, wealth management, and capital-raising activity, thus boosting office demand in the city.

Marcos Chan, Jones Lang LaSalle's head of research for the Greater Pearl River Delta region, said an estimated 40,000 staff would be added to the banking and finance sector due to the expansion of yuan business in Hong Kong, translating into demand for up to an additional six million sq ft of office space by 2020. — SCMP

Public Bank's Q2 profit dips

CHALLENGING TIME: New accounting rules, stiffer competition result in 0.2pc drop to RM952.7m from same period last year

PUBLIC Bank Bhd, the country's third largest banking group, reported a slight drop in its second quarter net profit after adopting new accounting rules and on stiffer competition.

The results were nevertheless within analysts' expectations.

Net profit came in at RM952.7 million, a 0.2 per cent drop compared with RM954.9 million in the same quarter a year ago. Its revenue rose by 9.3 per cent to RM3.5 billion.

"The marginal decrease in net profit was mainly due to the effect of narrowing interest margin resulting from market competition," Public Bank said in a stock exchange filing yesterday.

Net interest margin (NIM), or the difference between the interest it earns from loans and what it pays out to depositors, was flattish at 2.5 per cent compared with the first quarter of this year.

The group's management told analysts at a results briefing yesterday that it continued to expect downward pressure in NIM. 

A retrospective accounting change led to its second quarter net profit last year being restated at RM954.9 million, slightly higher than the previously reported RM880.4 million.

Public Bank declared a first interim dividend of 20 per cent, which will result in a total dividend payout of RM700 million, matching the payout in the same period last year.

Its shares rose slightly in the stock market, closing two sen higher to RM14.32.

"Going forward, the group is expected to maintain its earnings momentum and record satisfactory performance in the second half of 2012," its founder and chairman Tan Sri Teh Hong Piow said.

It maintained its pole position among local banking groups in terms of profitability, with the highest net return-on-equity (ROE) of 24.7 per cent.

Some analysts, however, wondered if the group, envied for its high ROEs, could maintain the high digits.

"We assert that the group's ROE has peaked and is on a declining trend going forward due to the decelerating earnings momentum and restrictions on the group's ability to engage in active capital management to enhance its ROE," said Cheah King Yoong, a banking analyst at Alliance Research.

He said it would be tougher for the group to sustain its earnings momentum, given the continued margin suppression, a maturing property segment and the fact that it was not as well positioned to fully capitalise on Economic Transformation Programme-related loans and investment banking deals. 

Cheah has a "sell" call on the stock with a target price of RM13.50. 

Most other analysts, however, have a "buy" call. 

Analysts said the group had lowered its 2012 loan growth target to between 10 per cent and 12 per cent, from 12 per cent before.

For the six month period, the group registered overall loan growth of 10.8 per cent on an annualised basis, dragged by its China and Hong Kong operations.

The stock has increased by 7.2 per cent so far this year, slightly higher than the benchmark FBM KLCI index's 6.9 per cent gain.

Read more: Public Bank's Q2 profit dips http://www.btimes.com.my/Current_News/BTIMES/articles/pubs/Article/#ixzz21YGJ3ma7

Revitalised Plaza Phoenix signs on new anchor tenants

KUALA LUMPUR (July 9, 2012): Cheras Sentral Shopping Mall, the former Plaza Phoenix in Cheras, has secured seven anchor tenants for the refurbished mall slated for opening later this year.

The anchor tenants include TGV Cinemas, Jaya Grocer, Celebrity Fitness, CYC World Mega Leisure World, Moon Palace Chinese Restaurant, K-Box Karaoke and Dynamic Trial Sdn Bhd. These tenants will create a key focal point in each of Cheras Sentral's retail and entertainment zones.

According to Malaysia Land Sdn Bhd (Mayland) general manager (retail) Michael Chee, the entry of the tenants signifies a renewed confidence in Cheras's retail scene and a show of support behind Mayland's initiative to rejuvenate what has been a significant blot on the visible landscape for almost ten years.

"The right ensemble of tenants is tantamount to the long term success of a mall and equally important is the procurement of enterprising tenants who see beyond bricks and mortar to recognise that a venue will be a shining beacon of success," he said.

Mayland, to some, was regarded as a white knight when it purchased a majority stake in Cheras Sentral, which included all land and parking facilities. The company then redeveloped the entire property while extending the building without any burden to other strata-title owners.

"We had sourced for credible national and regional brands that advocated the redevelopment of the mall. The demographics of Cheras has changed over the last ten years and is continuing to change, so the need to adapt to a continually evolving populace is paramount to success," said Chee.

Mayland is founded in 1995 by Tan Sri David Chu. Among its developments include The Elements in Ampang, Palazio in Johor Bahru and Regalia on Jalan Sultan Ismail.

Jaya 33 awarded MSC Cybercentre Status

KUALA LUMPUR (July 24): Jaya33 Cybercentre has become the first mixed commercial building in Section 13, the new Golden Triangle of Petaling Jaya, to be awarded the Multimedia Super Corridor (MSC) Malaysia Cybercentre status by the Ministry of Science, Technology and Innovation (MOSTI).

Jaya33 Sdn Bhd's appointment as the MSC Malaysia Cybercentre manager for its Tower One, Two and Three, was also formalised at the document exchange ceremony between the Multimedia Development Corporation (MDeC) and Jaya33 here today.

The MSC Malaysia Cybercentre status is a prestigious award given to niche business locations that meet the MSC Malaysia standards and criteria to deliver the MSC Malaysia Bill of Guarantees to MSC Malaysia status companies.

In a statement today, Jaya33 said with the award, the Jaya33 Cybercentre would be an alternative and attractive choice for companies wishing to be located in Petaling Jaya, while enjoying the benefits that come with being MSC-status certified.

"With the inclusion of the Jaya33 CyberCentre, there are now 26 MSC Malaysia Cybercities and Cybercentres nationwide, to cater to growing demand of our ICT industry," said MDeC'S Chief Executive Officer, Datuk Badlisham Ghazali in the statement.

He also said the Jaya33 Cybercentre's status as an MSC Malaysia Cybercentre, is another step towards transforming the Klang Valley into a globally competitive location, favoured by knowledge-based industries and attractive to global citizens.

MSC Malaysia is now home to more than 3,000 local and multinational MSC Malaysia Status Companies involved in various ICT clusters, namely InfoTech, Shared Services and Outsourcing (SSO) and Creative Multimedia. — Bernama