The economy going bankrupt and failing state indicators

There are some really skewed personalities with sinister agenda going around trying to convince the gullibles and ill-informed in their strategy to oust the current Prime Minister Dato’ Sri Mohd. Najib Tun Razak, why bold lies like “The nation is going to be bankrupt” and ‘The economy is failing”. However, the reality is quite the opposite.

The Star story:

Thursday, 12 January 2017 | MYT 4:33 PM

Mercedes-Benz M’sia’s sales hit record in 2016

KUALA LUMPUR: Mercedes-Benz Malaysia (MBM) posted an all-time record sales of 11,779 units in 2016, up 9% from 10,845 units sold in the previous year.

MBM president and chief executive officer Dr Claus Weidner said Mercedes-Benz continued to be the number one premium car brand locally with a 2.4% market share and hoped to retain its pole position in 2017.

“2016 was an exceptional year in the history of MBM. We achieved a tremendous milestone as we contributed towards the global success of Mercedes-Benz, which set a new record with double-digit growth of 11.3% and over two million vehicles sold worldwide.

“We are working hard to sustain our success here in Malaysia,” he told a media briefing on the group’s 2016 performance in Kuala Lumpur on Thursday.

MBM’s record-breaking performance came as demand for Mercedes-Benz vehicles in the Asia-Pacific region achieved a new high, increasing by 19.3% compared to 2015 which totalled 734,109 vehicles delivered to customers.

Malaysia was listed as a contributor to this best in history growth along with other leading Asia Pacific countries, namely Japan (+3.5%), South Korea (+25%), Australia (+14.8%) and Taiwan (+17.4%).

Amid the challenging economy, Weidner said MBM’s strategy of prioritising customer service had paid off and kept its sales performance at a steady pace throughout 2016.

He said MBM’s production plant in Pekan, Pahang, produced 7,882 vehicles last year, recording a growth of 2.2% from the previous year.

He said the group also offered a comprehensive financing at 1.88% and has a loan portfolio of RM1.8bil currently, with four out of every 10 vehicles sold being financed and insured by its sister company, Mercedes-Benz Services Malaysia.

“MBM will continue to invest in dealer network, upgrade facilities and up skill its manpower in Malaysia,” he added.

Meanwhile, MBM vice president (sales and marketing) Mark Raine said the company hoped to register another stellar performance in 2017, banking on new model launches expected this year together with the 17 models launched last year.

On the impact of weak ringgit on car sales and pricing, he said MBM would continue to monitor all influencing factors, but as of now, it had no plans to increase the prices of its vehicles. – Bernama

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The record sales of the German automobile is a very good indicator the upper middle class have spare cash to splurge. That is up and above that their faith of the economy is strong and it is going concern, for their firms to continue operating with foreseeable profits and healthy cashflow to undertake such luxurious acquisitions.

Other services catered for the upper middle class such as fine and gourmet dining, 5star and above accommodations have started to strongly present their demands. This include private and leased jet and charter services.

Otherwise, they would have taken measures like conserving the utility of resources and safeguarding assets, especially cash and securing financial commitments.

How about the bulk lower middle class. This is the group which is said to be making the most noise, affected by the so called “Intolerable increasing cost of living” and coupled by the urban-lower middle middle income trap.

The liquidity amongst them is very supportive of the retail and local economy, which is reflective in the strengthening nation’s favourite family restaurant, which is seeking listing in Bursa Malaysia again.

The Star story:

Thursday, 5 January 2017 | MYT 5:01 PM

QSR Brands to open 30 more KFC outlets this year

KUALA LUMPUR: QSR Brands (M) Holdings Sdn Bhd (QSR Brands) is planning to expand its KFC business by adding up to 30 new outlets nationwide this year.

Chandrasagran Munusamy, general manager for KFC operations at QSR Brands unit QSR Stores Sdn Bhd, said the expansion would materialise with or without the relisting of KFC or QSR Brands on the local bourse this year as speculated.

He said funding for KFC’s expansion in Malaysia was not an issue and was not the main reason for the relisting.

“Thirty outlets were opened last year without any funding issue and to-date we have a franchisee of 665 KFC outlets nationwide.

“Malaysia has great potential and we want to open 20 to 30 more outlets this year in areas that we have identified,” he said after launching the new KFC Cheezy Mushroom Crunch in Kuala Lumpur on Thursday.

Chandrasagran said the cost of opening a new outlet would vary between RM1mil and RM4mil depending on whether it would be a drive-thru restaurant, a shoplot restaurant or one in a shopping complex.

It was reported recently that the fast-food franchise brand was returning to Bursa Malaysia after being taken private in 2013 by CVC Capital Partners, Employees Provident Fund and Johor Corp.

The relisting is expected take place this year with its initial public offering capable of raising up to RM2bil.

“The funds from relisting will cover many areas, not necessarily for the KFC expansion plan only. The management is working on it now, however, nothing much has been finalised,” Chandrasagran said, adding that he projected another incremental sales growth for KFC Malaysia this year.

QSR Brands, which currently holds a franchisee of over 750 KFC restaurants in Malaysia, Singapore, Brunei and Cambodia, is also the operator of Pizza Hut in Malaysia (370 outlets) and Singapore (75 outlets).

Meanwhile, senior general manager for KFC marketing Angelina Villanueva said despite the bleak economic outlook, the food and beverage industry was very competitive nowadays.

“The demand for KFC in the country is intact and KFC Malaysia is doing well in terms of sales.

“For the new KFC Cheezy Mushroom Crunch product, we are looking at 15% contribution to the overall revenue. We hope 2017 will be another good year,” she said. – Bernama

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The fact is that for QSR to maintain 750 outlets all over the region and still making money (bulk of the outlets are in Malaysia), it is reflective of  the market’s liquidity and propensity to spend.

The liquidity amongst the upper lover 40% and lower middle class is also reflective the strong support for of a local kopitiam chain seeking IPO.

The Malay Mail Online:

Malaysian restaurant chain PappaRich said to mull Singapore IPO

Thursday January 12, 2017
04:59 PM GMT+8
KUALA LUMPUR, Jan 12 — PappaRich Malaysia Sdn., a food chain selling local cuisine from nasi lemak to curry laksa noodles, is considering a Singapore initial public offering, people with knowledge of the matter said.

The company, which opened its first restaurant in Malaysia in 2006, is targeting to achieve a valuation of at least S$200 million (RM892 million) in the share sale, according to the people. It aims to conduct the offering as soon as this year, one of the people said.

Any deal would add to a rebound in the Singapore IPO market last year, when fundraising surged more than fourfold to US$1.7 billion (RM7.58 billion), data compiled by Bloomberg show. PappaRich would follow other Southeast Asia-based restaurant chains including ABR Holdings Ltd., which operates Swensen’s ice cream parlors, and Oldtown Bhd in gaining a listing to fund expansion.

A representative for PappaRich, which is based near Kuala Lumpur, said a listing has always been a consideration as the company considers fundraising options to support its expansion plans. PappaRich “would certainly” expect to have a valuation in excess of S$200 million upon listing, based on comparable businesses, he said.

Oldtown, which makes instant coffee and runs cafes, has risen 18 per cent in Kuala Lumpur trading over the past 12 months. Shares of Thai dessert chain After You Pcl, which raised US$21 million in a Bangkok IPO last month, have surged 167 per cent from their offer price.

More than 1 million customers dine at the PappaRich outlets monthly, according to its website. The company has about 100 outlets globally including locations in Malaysia, Singapore, China, Australia, New Zealand and the US, the website shows. — Bloomberg

– See more at: http://www.themalaymailonline.com/money/article/malaysian-restaurant-chain-papparich-said-to-mull-singapore-ipo#sthash.ImuUYOr8.dpuf

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More on the strategic front, initiatives are being made and strengthening the position of Malaysia two become another global shariah compliant fund hub.

Thursday, 12 January 2017 | MYT 1:33 PM

Malaysia launches 5-year Islamic fund, wealth management blueprint

KUALA LUMPUR: Malaysia has launched a five-year Islamic Fund and Wealth Management Blueprint to further strengthen the country’s position as a global hub for Islamic funds by 2021.

The plan, the first of its kind globally, is also aimed at developing the country as an international provider of Islamic wealth management services.

It was launched by Second Finance Minister Datuk Johari Abdul Ghani at the International Fund Forum 2017 in Kuala Lumpur on Thursday.

The 51-page blueprint comprises three strategic thrusts, namely, strengthen Malaysia’s position as a global hub for Islamic funds, establish the country as a regional centre for shariah-compliant sustainable and responsible investment, and develop it as an international provider of Islamic wealth management services.

“The Islamic wealth management industry is still at a nascent stage of development as compared with other segments of the Islamic capital market.

“Malaysia, with its comprehensive Islamic finance ecosystem and track record in innovation, is at an advantageous position to play a lead role in shaping the concept and driving the development of Islamic wealth management services,” the blueprint highlighted.

It also outlined 11 recommendations for Malaysia to achieve the desired status by 2021, and which focus on addressing impediments to growth and innovation, while identifying potential opportunities for collaboration and partnerships, as well as accelerating the process of building scale.

The recommendations, among others, provide enabling frameworks to support innovation in Islamic markets, enhance market access and international connectivity, promote the growth of private equity, as well as spur institutional participation in Islamic funds.

It also includes facilitating new digital business models, products and services for Islamic fund and wealth management, develop facilitative market infrastructure for Islamic wealth management, and fortify talent pipeline for Islamic wealth management.

As Malaysia operationalises the blueprint, utmost attention would be given to the phased implementation of initiatives under the respective recommendations.

It is recognised that there might be further shifts that would influence the dynamics of the global and domestic marketplace, including the emergence of new factors.

Therefore, the recommendations are designed to provide sufficient flexibility within the overall objective of the blueprint to enable appropriate adjustments and realignment in such situations. – Bernama

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It is ashamed there are professionals and the educated lot amongst us who are taken in with these proposterous notion that the nation is heading towards bankruptcy out of sheer lame political rhetorics, simply to demonstrate their political agenda is out of steam but still continue hitting multiple layer of brickwalls.

At the strategic level, limited layers dwell into markets in Malaysia as an open economy and its open for business. Business activities comes with sorts of commercial papers being traded and exchanged fr assets against debts, where shareholders plan their portfolio based on trends and strength of specific sector.

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Published in: on January 12, 2017 at 20:15  Comments (1)  

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One CommentLeave a comment

  1. What say you, BigDog, of fat kines and green cobs, you enlighten economomics-accountancy buta huruf me on Selangor, Penang and Kelantan state governments performance and also that of Sarawak?

    See if you can better than The Scribe or Mahyuddin or even Kit Siang and Mahathir.
    Najib says better days for our Ringgit and he should be very happy when the Islamic Funds is up and running – will they be worthy trustworthy servants to run it like KWSP and KWAP, BigDog or just Qubaishis and Jho Lows?

    Some ustazs like Syed Hussein Nasr say you should not buy a car or a house with interest bearing loans. Shouldn’t it be in time there is a totally riba free bank for the OIC folks?

    Thank you for the easy to understand article.


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