Bursa Malaysia shares sold to foreigners?

Second Finance Minister Senator Tan Sri Nor Mohamed Yaackop today confirmed that Bursa Malaysia (BM) Bhd. is talking to an international bourse for a strong possibility for shares of BM being sold. Although unable to furnish the details of the negotiations, he also said that the sale of 10% control of BM would be a strategic move to propel the Malaysian capital market be actively participated by global investment players.

On the same note, he also announced that the 2009 Budget presentation would be brought forward earlier, in anticipation of upcoming Ramadhan and Syawal months for the Muslim. A date was given; 29 August 2008.

Bernama.com has the story:

January 14, 2008 11:30 AM  

MoF Is Fully Ready For The Tabling Of 2009 Budget On Aug 29

PUTRAJAYA, Jan 14 (Bernama) — The Ministry of Finance is fully ready for the 2009 Budget on August 29 this year as it will be tabled during the fasting month, Second Finance Minister, Tan Sri Nor Mohamed Yakcop said Monday.

“We have all the ideas in mind. It is a matter of putting it down,” he told reporters after the Finance Ministry’s monthly gathering here.

Asked if the short period available to prepare for the budget was sufficient, he said, “Of course, the more time we have, the better it is. But we can manage. It is workable.”

“The budget consultation will start soon,” he added.

Nor Mohamed also said that the 2009 Budget will not overlap with the implementation of the 2008 Budget due the earlier budget tabling.

However, he said budgets from 2010 onwards will be tabled on a Friday in the fourth week of October.

“This year will be the last year of budget being tabled earlier,” he said.

–BERNAMA

The MOF II also explained that he was bullish about 2007’s GNP growth rate to be 6% and admitted that 2008 would be a tough year. This is due to the oil price now hovering at USD 100.00 per barrel and will drive the inflation up and affect the American economy termendously, which will affect global exports.

If the price of oil maintain at the USD 100.00 per barrel level, Tan Sri Nor admitted that the country has to fork out RM 35 billion annually for oil subsidy. He said that the official inflation rate of 2008 would be between 2-2.5%.

*An update as of 20.40hrs, Monday, 14 January 2007

Standard Chartered Bank (Stanchart) did not agree with this. They are revising GNP growth from 5.2% to 4.2% and inflation rate from 2.5% to 4.0%, despite admitting that the domestic demand and Government spending on the economy is very strong and high.They also of the believe that the Government would lift the ban on offshore trading, within three years.

Bernama has the story:

January 14, 2008 20:34 PM

Malaysia Likely To Lift Ringgit Offshore Trading Ban In Three Years

KUALA LUMPUR, Jan 14 (Bernama) — Malaysia is likely to lift the ban on ringgit offshore trading in three years, said Standard Chartered Bank’s senior foreign exchange strategist, Thomas Harr.

He said the lifting of the ban was not going to be a top issue this year.

“It is going to be the next two or three years as the government and Bank Negara Malaysia have given signals on the matter,” he told reporters at the bank’s Global Research Briefing 2008 here today.

Malaysia banned offshore trading of ringgit in 1998 and pegged the currency to the US dollar as regional currencies collapsed during the Asian financial crisis.

The ban is the only capital control left.

“We think probably this year is a little bit too early. Definitely the Malaysian government is moving to internationalise the ringgit but we think it will likely happen when the ringgit touches RM2.23 to the US dollar,” he said.

— BERNAMA

Then Prime Minister Dato’ Seri Dr. Mahathir Mohamad announced the pegging of the Ringgit against USD at 3.80 and currency and capital control measures, as remedy to the spiraling economic crisis on 1 September 1998. It was proven to be effective to correct the economic crisis and had been maintained since.

Published in: on January 14, 2008 at 13:31  Comments (1)  

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One CommentLeave a comment

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