Wednesday, April 1, 2015

Bursa Malaysia expects minimal impact on stock trading costs after GST (TheStar)

KUALA LUMPUR: Bursa Malaysia Bhd expects a minimal impact on the costs of securities trading upon the implementation of the Goods and Services Tax (GST) tomorrow. 

Chief executive officer Datuk Tajuddin Atan said the GST would only be applicable to services related to the securities transactions but not on the securities itself.  
"The GST won't be charged on the value of the whole securities transactions but only on the fees related to the transactions such as brokerage and clearing fees," he told reporters after Bursa Malaysia's annual general meeting here today. 

A clearing fee is charged by Bursa Malaysia at a rate of 0.03% of transaction value with a maximum of RM200 per transaction, while a brokerage fee is charged by brokerage firms and varied according to each firm. 

On the stock market outlook, he said 2015 would be a challenging year on the back of volatile global stock markets and commodity prices. 

He said the local stock exchange would not only face greater regional competition, but would also have to navigate the impact of changing regulatory requirements. 

However, he said Bursa Malaysia remained cautiously optimistic as Malaysia has a proven track record of being a tenacious and resilient market arising from the strength of its investor protection and corporate governance framework that was built over the years. 
"These factors will continue to support the growth agenda in the market while maintaining market confidence and integrity," he said. 

Tajuddin said Bursa Malaysia would also continue to attract retail investors participation to create a balance atmosphere in the market place. 

He said retail traders brought velocity of trading to the market place while institutional investors provided stability. 
Last year, retail traders accounted for 25.8% of securities trading while local institutional investors and foreign institutional investors' participation stood at 40% and 23.6%, respectively. - Bernama

Solar farm boosts Malaysia’s renewable energy supply (TheStar)

Country’s latest solar farm one of the most resource-efficient in the world.
Glinting glass panels that harness sunlight and convert it into energy is an increasingly common sight as Malaysia charts a path towards renewable energy. A field of these solar cells recently emerged in Malacca’s newly developed state administrative centre of Hang Tuah Jaya in Ayer Keroh.
The panels, all 29,092 of them, form the latest solar farm in the country and generate enough energy to power 1,800 houses every day. The 8MW facility, called Kompleks Hijau Solar, is developed and operated by renewable energy company Gading Kencana.
Company managing director Datuk Guntor Tobeng says aside from generating renewable energy, the solar farm supports Malacca’s goal to be a green state. It started feeding solar power into the national grid in mid-December. Under the Feed-in Tariff (FiT) scheme, the company will be paid 80sen per kilowatt hour of electricity. It received its first payment of RM900,000 last month.

Launched in late 2011, the FiT scheme enables companies and house-owners to produce renewable energy from four sources – solar photovoltaic, biogas (from organic waste, landfill and sewage sludge), biomass (agricultural waste and garbage) and small hydropower – and sell it to the grid.
Gading Kencana has been involved in solar street lighting, solar hybrid systems in rural areas, energy audits and installation of residential and industrial solar photovoltaic (PV) systems. Its projects include a 2MW rooftop PV system for PEPS-JV Malaysia in Batang Kali, Selangor, and a 546kW rooftop PV system for Bosch in Penang.
Guntor says its new solar farm can generate 10,120MWh of electricity annually and is projected to generate RM8mil annually. It will avoid carbon emissions amounting to 136,700 tonnes over 21 years (the duration of the FiT scheme). “This is equivalent to what is emitted by 30 jets flying every day from KL to London and back, for five and a half years.”
He says the solar farm is deemed to be one of the most resource-efficient in the world, as it produces 1MW per 0.6ha (1.5 acres) against the worldwide norm of 1MW per 2ha (5 acres). This impressive yield emerged from a setback – the actual land area turned out to be smaller than on paper. Guntor had purchased 7.06ha (17.66 acres) of land but in reality it was only 6.86ha (17.17 acres).

He had not checked the site, a rubber tree plantation, as there was no access road and was only shown a contour map. When he finally viewed the site, he had another surprise – it was mostly a valley, 30m deep.
“Because of the shortfall in the land area, we had to rethink the whole design. We had already applied to SEDA (Sustainable Energy Development Authority) for a 8MW facility, so we had to figure out how to fit 8MW of panels into a smaller land area,” said Guntor.
His team eventually filled up the valley with some 300,000 cu m of earth. To fit the smaller site, the panels have to be mounted close together but this raises the risk of shading.
To counter this, they landscaped the site to create six slopes in different directions. The team studied 30 different orientations to obtain the right tilts for the panels. This explains why the panels do not face the same direction as seen in most solar farms. Instead, two rows of panels are installed at an angle to each other, resembling a pitched roof. This A-shaped mounting enables maximum tapping of sunlight.
The land contouring also enables runoffs to flow into the on-site detention pond, instead of collecting and eroding the site. Guntor’s team also studied wind directions and positioned the panels in a way that ensures good ventilation, to reduce heat build-up in the panels which can lessen their efficiency.
The solar farm might have a green edge but Guntor still faced difficulties obtaining financing for the RM84mil project. “We spent a year talking to many banks and all rejected us. They said we did not qualify for a large loan.” He eventually got a facilitation fund of RM11.8mil from Teraju (the Government’s Bumiputra Agenda Steering Unit) and a RM56mil loan from SME Bank (Small Medium Enterprise Development Bank).

As Hang Tuah Jaya is a gazetted green zone, all buildings there must be certified under the Green Building Index. The site building at the solar farm managed to obtain a GBI platinum rating by incorporating green building features such as water-saving fittings, harvesting rainwater and passive cooling through building orientation and design as well as the use of shading louvres. There are also rooftop solar cells to generate solar power for use in the building.
The area is reserved for “institutional development” but there is concern that future neighbouring development might shade the panels. To prevent this, the company has submitted a request to the Town and Country Planning Department, asking for a 50m setback for high-rises.
Solar photovoltaics currently contribute 67% of the 270MW of renewable energy generated in the country currently. Some large PV installations which are boosting the local power supply with solar energy are: Amcorp Properties’ 10.25MW solar farm in Gemas, Negri Sembilan; Cypark Resources’ 8MW farm on a closed landfill in Pajam, Negri Sembilan; Sunedison’s 5MW farm in Sepang, 4MW on the KLIA rooftop and 10MW on a parking canopy near KLIA2; and Kumpulan Melaka’s 5MW farm in Alor Gajah.

Lee Kuan Yew’s bittersweet ties with Malaysia (TheStar)

KUALA LUMPUR: The tenure of Singapore’s first prime minister Lee Kuan Yew was marked by the island republic’s brief but tumultuous time when it was part of Malaysia.

Singapore was part of Malaysia from Sept 16, 1963 to Aug 9, 1965, which was marked by tense relations between Lee and leaders from Umno and other Alliance parties.

When Singapore left the Federation of Malaysia on Aug 9, 1965, the event – the most tumultuous in Lee Kuan Yew’s career – grabbed headlines the next day around the world.

“Singapore is out” was splashed on the front cover of The Straits Times, where it was mentioned that there had been a secret signing of the island republic’s independence by both governments.
Malaysia’s first prime minister Tunku Abdul Rahman was quoted as saying that Singapore’s withdrawal had been his idea, adding that otherwise, there would be no hope for peace.

The Straits Times also reported that the separation led to the busiest day on the Singapore’s stock exchange that year, with some 646,900 shares traded.

However, on the Causeway – for many years, the only land link between the republic and Malaysia – traffic was said to be normal.
The historical baggage of Singapore’s 1965 separation from Malaysia would go on to colour some aspects of bilateral relations during his administration.

A case in point was the “points of agreement” (POA) on Malayan Railway Land in Singapore that was signed on Nov 27, 1990, a day before Lee stepped down as prime minister.

The POA between the countries went unimplemented for 20 years until 2010 when a deal was announced by Prime Minister Najib Tun Razak and his Singapore counterpart Hsien Loong, with the POA having “enhanced features”.

“He (Lee) conducted relations with four prime ministers on the Malaysian side and lived to deal with all six of them,” wrote retired senior Wisma Putra diplomat Tan Sri Kadir Mohamad in his book “Malaysia-Singapore Fifty Years of Contentions.”

Kadir wrote in his book that for a long time after his retirement, “Lee Kuan Yew alone prescribed Singapore’s policies towards Malaysia.”
His last visit to Malaysia was in 2009, when he spent eight days touring a number of states and met with Malaysian leaders, businessmen and opinion leaders in what was described as a trip down memory lane.
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