GREEN OCEAN CORPORATION SDN. BHD. (GOCEAN) - GO GREEN, BE GREEN, SELL GREEN - PERSONAL VIEWS BY NIK ZAFRI


(Latest Development! 10.15am - 30/12/2010
STOP PRESS : Plantation related stocks up"

As forecasted - with news that CPO will go up from RM3k-3.5k/metric tonne, today - as I speak - around 9.30am, 30/12/2010 - till now, GOCEAN is experiencing major changes in its price. Congratulations GOCEAN.)



Disclaimer : I do not represent the corporation in this article. Whatever being expressed is solely the author's opinion. Please refer their official website for further information.

I've been looking into some 'sleeping giants' for a long time.



And today I wish to speak on a corporation that attracts my attention for the last 2 weeks of trading. I hope everyone will share my enthusiasm.

(Please don't base your views on their current performance of shares...just read on)

The company was formerly known as Online One Corporation Berhad and changed its name to Green Ocean Corporation Berhad in April 2009. Green Ocean Corporation was incorporated in 2003 and is based in Petaling Jaya, Malaysia.

Green Ocean Corporation Berhad (GOCEAN), an investment holding company, engages in the development of biotechnology products in Malaysia.

As we all know, GREEN is now associated with almost all industries in this world. We have LEEDS Certification (Green Building), EMS ISO 14000, Sustainability, Big Campaigns and various environmental awards for corporations practicing GREEN as part of their corporate responsibility. GOCEAN is definitely one of them - with its strong motto - BUY GREEN, BE GREEN, SELL GREEN.

So to all GREEN lovers out there (yes I'm one of them), here's your chance to save the EARTH!

The company involves in crushing palm kernel, refining palm oil and palm kernel oil, and producing palm kernel expellers and cooking oil.

Despite some quarters felt that maintaining the neutral call on the Malaysian palm oil sector due to current 2 year old palm oil price upcycle, and that Malaysia is continuing with a plan to mandate a 5% palm-oil-based methyl ester blend in conventional diesel by June 2011 (next year), I still somehow notice significant changes in Bursa Malaysia Derivatives’ star product, the Crude Palm Oil Futures contract, or better known by all of us as the FCPO contract which has been cited as the MOST actively traded derivatives contracts and has been the GLOBALLY PREFERRED BENCHMARK FOR THE PRICING OF CPO.

If this is the case, then, GOCEAN and their counterparts will definitely see some significant changes next year. Let's say it's June, 2011, at least they can still prepare themselves for the changes.

GOCEAN also provides information communication technology solutions, including software, and third party hardware and software; implementation and integration services; business continuity outsourcing solutions; and business intelligence solutions.

Being a self-ICT-literate person myself, GOCEAN has definitely invested on the right product. The setback however is unexpected - perhaps GOCEAN is too ahead of time with this plan. Unless the corporation has something to do with government contracts (which I think they will be heading towards that direction) and in the future, taking in many ICT professionals in the field (during expansion), then I know in my heart that ICT is a GOOD Investment. Who knows, GOCEAN might hit the jackpot.

Apart from the abovementioned, GOCEAN offers financial services solutions, infrastructure services, business service management, and information security solutions.

Further, it engages in the research and development of palm oil related industries; and sales, marketing, and distribution of enzyme, conjugated linoleic acid, and direct fed microbials, as well as the marketing and distribution of storage solutions.

Now, can anyone tell me that GOCEAN has no potentials in 2011? I have also noticed some 'reengineering' are being actively done in the company - so someone inside GOCEAN is smart enough to prepare itself for 2011 - for the BEST. We can expect the Q3 2011 results next February. (aah you need tips : Look at the 'expected book value' and 'the future market value' based on my article herein - also look into debt/equity ratio...do some homework 'lah')

Figures might not look so interesting but it's the indicators in the figures that will tell investors what is the future for them. (I've read their past annual reports - I personally think that it's a highly potential company to invest in the long run)

I like to quote Yang Amat Berbahagia Tun Mohamed Dzaiddin Abdullah, Chairman of Bursa Malaysia in the recent 21st Palm & Lauric Oils Conference

"Whether it is for the physical or futures markets, in managing volatility, mitigating risk factors and ultimately ensuring that the industry remains vibrant, price trends are important for palm oil players."

MALAYSIA is a melting pot. A lot of people still do not realize it yet

REAL ESTATE INVESTMENT TRUST (REIT) - BY NIK ZAFRI

I've noticed these few days that major corporations in Malaysia are racing into Real Estate Investment Trust (REIT) - or is it M-Reit? (Whatever...)

Is it safe to say that this a sign of real estate and development industry in Malaysia may have successfully prevented the 'sup-prime mortgage crisis' from hitting Malaysia? Fascinating...

Well to start with, from 2007-2008, I've noticed profit from rental income were being distributed in form of dividend to its holders. Well, I think this also has something to do with the pivotal role played by Security Commission issuing guidelines on property trust funds - making more and more REIT companies listed in Bursa Malaysia.

But, the norms are happening again, I went to this small coffee shop known only as 'Peter' in Taman Sri Gombak near the place I'm staying and asked around 'MIC' (mind you - it's Malays, Indians and Chinese) on REIT. Only one or two answered correctly but the rest blinked at me and replied :

"Huh? What? Unit Trust?"

Once again, I think information is not well-disseminated. No wonder new establishments (newly completed office buildings) nearby are not being rented yet.

Well, I'm going to do my bit now...information dissemination :

To start with,

a) REIT is different from Unit Trust

b) REIT works like stock-trading in Bursa Malaysia...giving investors returns via capital appreciation from dividends and change of price... (aaaah, some of "MICs" said and nodded their head in agreement) -

c) REIT's benchmark is on Market Demand & Supply to ascertain its' stock price (Unit Trust is on NAV - value of its assets less liabilities & calculated daily by unit trust companies)

d) you can buy from remisiers/stockbrokers as well but NOT Unit Trust Agents and Banks (so be careful)

f) There is equity REIT (the common one), mortgage REIT (a bit complex - profit based on mortgage loans after procuring mortgage backed securities) - Well you can also go for both,

e) Yes...based on regulations or tax incentives, at least 90% taxable profit of REIT goes away as dividends. (Non-Residents are subject to approximately 30% tax - I think...)

f) high yield

g) If you're not sure, start with small investment

h) Eye for good & strategic places for assured Return of Investment (this is important!!)

i) Don't worry about fluctuations - do a lot of reading on REIT.

And most important, ASK AROUND or ASK the information counter where you're buying.

GOOD LUCK!

TALAM CORPORATION BERHAD
Symbol & Code : TALAM (2259) Board : Main Industry : Properties

Put aside politics and please do not read this article if you're think I'm into politics. No way!

Taking over Talam by the Selangor Government with Tan Sri Khalid at helm for debt recovery exercise is something unexpected by many quarters.

I was curious during the preliminary stage of takeover of Talam with so much debts, disgruntled buyers of stalled housing projects, negative rumours and speculations, PN17 etc. but yet why did Tan Sri decided that this is fine by his standards? I think everyone knows who Tan Sri is and how vast is his corporate experience in the market (yes, I did take that into account as well - I noticed the familiar management styles are still maintained)

So, I keep monitoring with some assistance from friends (analysts) then, things started to move, I must say, I'm quite impressed - in such a short time - they keep the good things coming, I now see prospects of turnaround.

1) Selangor Government recovered RM50mil of the RM391.7mil owed to Talam and the money will be channelled via Qardhul Hassan Islamic Banking - an Islamic mechanisme to assist the poor among others - teaching them business and managing money via microcredit schemes.

2) 10% set aside for sand mining project

3) Bonus for more than 6500 village heads

4) Efforts to solve problems of abandoned projects by working together with private sector and government and form up a special task force, (some have been solved!! - yes there will still be dissatisfied buyers but at least something has been done which is better than nothing at all)

5) entering agreement with Menteri Besar Selangor (Inc) to settle RM241.4mil owing to the latter via disposal of properties and RM12.7mil cash - settlement is expected within six months.



Ok..is everything in order?

No...not necessarily.

I browse through the corporate website and found out whatever I've written herein or in the dailies are not included in their 'annoucement' (or was it Newsroom?)

I wonder why....news of this magnitude should have been updated in their website as the investors are looking into it but again Talam may have other strategies.

a) Low profile?
b) Sleeping giant awaiting for the right time to wake up?
c) or just too busy to update?

Whatever the case maybe, Talam is worth monitoring.

THE NORMAL ANECDOTE

I'm back!!

I've been relooking into the 1998 - 2001 Malaysian economy and discovered many great things. Not about the recession but about how we rebound and learn from our past mistakes. There have been hiccups here and there but yet we survived. I think IF given limited choice, which were the best two ideas that helped - I would vote for two (Of course it's the Legendary Tun M) :

a) 'controversial' decision to peg the RM to the USD and
b) Reintroducing/Rebranding of ICT & new technology

Between 1999 - 2000, new technology including ICT have been reintroduced 'cautiously' into the market and this time, the technology are there to stay and a lot of good things been happening. To mention a few, the Knowledge Management era, B2B/B2C and finally e-commerce.

Numbers of IPOs increased dramatically especially those having to do with technological stocks.

Early 2001 US Market a.k.a. NASDAQ experienced a 'burst of technological bubble'. The Feds attempted to minimize borrowings by increasing the rates to stop bubble burst but the effort came too late.

Then I dig further which leads me towards the fundamental principles of economy. I did say these sacred words (where was it huh?):

"If everybody want to sell, who wants to buy" or "If everyone is a supplier, who is the customer then?"

As you no doubt have guessed - the principle that I'm talking about is "Supply, Demand and Equilibrium" but in a different perspective.

Malaysia almost made the same mistake by giving out loans and grants (via Banks & Financial Institutions including some Government Agencies) but the businesses they were 'helping' are mostly suppliers/contractors/service providers/sellers etc and not customers. New products, New technologies - everything NEW - mostly claimed to 'assist the Government in their plans' but actually to 'make more money'. (In the end suppliers are flooding the market and not customers)

Again, I'm not implying that the business plans submitted didn't take into account the target market a.k.a. the customers but I'm just looking at the facts.

In laymen term, the customers at the point where borrowings were provided to the suppliers or sellers - are either :

a) loosing their purchasing powers quite rapidly.
b) Or did they have too many suppliers to choose hence, they thought of one good idea -
c) why not I just keep my money without spending them?

Then the banking and financial institutions have no choice but to increase the rate in order to minimize borrowings. Although this has; in a manner of speaking; helped in the 'rebounding process, - but again, there were little effort to help out the customers to regain their purchasing powers or increase promotion on buying rather than keeping.

The 'rich' customers did spend their money but based on my analysis on people going out for vacationing and business purposes overseas, these customers were spending outside Malaysia!

Despite the tourism industry did spur the growth of tourists coming in assisted by MIDA, MITI etc for prospects of domestic investment or export but nobody really tried to capture how much money Malaysians are spending outside? (Here, I'm referrring to those who did not use MITI or MIDA avenues to invest outside but rather - their own initiatives - perhaps due to some 'smart partnerships' or 'JVs' that were not announced in the medias. Apart from this category, I will not touch on those who used their money for crazy shopping spree or gambling (well..it's their rights)

The other customers? You've heard it all the time :

Those 'customers really loosing the purchasing power' (moderate or poor family) decided to spend their money by saving them or buying only the required consumables may not be able to invest in 'high end investments'.
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Back to the future : (now)

Old habits never die.

We have experienced above 1000 KLCI achievements and suddenly (as I have said in another topic) the market become erratic. Yes, I did say that Banks and Financial Institutions including relevant Government Agencies should help and I must admit I was a bit wrong in my decision. (when I found out - loans and grants are focussing mainly on Suppliers again - as I speak)

So, how to balance and reach 'equilibrium'? (not necessarily 50%-50% - you can't do that)

I was speaking to a Malaysian friend working in the Middle East. He noticed one remarkable thing...it's not easy to find a 'poor guy or family'..everyone is working or at least doing business, or very rarely he heard that people cannot buy things over there.

Again, I dig further...my friend told me that if there is a poor guy and they got to know about it...two things will be done :

a. Giving him/her a sum of money to cater for himself and family, pay his/her debts/overheads etc.

b. Next, giving him a job with proper training and development so that he too can earn a salary just like everyone else,

c. Alternatively, he will be given (not a loan) a sum of money to open up a business (again with training) if he has interest in any kind of business or accepting suggestions from Government 'experts/consultants'.

(Yes, you might say that the Middle East have abundance of oil and everyone is rich. But this country in the Middle East is a LOT bigger than Malaysia. For Malaysia and its population, we also have enough supply of fuel/oil and abundance of resources for everyone as well..)

I'm not asking too much - all I'm hoping for we can take good examples - how we're going to do it..that is really up to us. I think 'good intentions' must also be there before we do everything.

So conclusion for now....make effort to 'balance up' between the 'sellers' and 'buyers'...you'll see improvements in economy..I guarantee it!

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Here's my complaints for the day :

1) Funny, I still see 'genuine poor people' in Gombak who are really scared to ask for help because

a) they are illiterate or

b) been cheated with their ICs 'taken away' by unscrupulous people or

c) too scared to go to Government offices to ask for help or scared of procedures or scared of being chased out and many more.

so where's the 'Wakil Rakyat'? Where's the 'Ahli Parlimen' - don't care 'lah' whether you from BN or BA..just do your work - do not treat these people as 'don't exist'!

2) Funny, for almost 10 years, I still see 'rats' and 'unattended garbages' - if we can't solve these two 'small problems' or start pointing hands to another party - then what more to solve problems of people?

DEAR HEDGE FUNDS MANAGERS

Although hedging is done 'discreetly' by some 'hedge fund managers', I still think that Malaysia (in particular SC) should keep a close surveillance by having a revised version of regulations to monitor private equity company's especially. I heard stories from some European friends that EC has come out with such regulations. Finally EC has come to its senses and limit of patience. (the line must be drawn here..this far..no further...) Anything > 1:1 leverage is only a 'rumour' and excuse being protective but if you go on being stubborn about it - it may be 'the end' of private equity...(trust me)

I know that many may disagree with me and they are willing to see me to debate endlessly on the subject (hey..you guys are forgetting, I am well aware of the mechanisms..ok?) Everyone involve in hedge fund in Malaysia in whatever capacity should know better what's going on this world today. Even the most popular and oldest Rolodex is slowing down..so, you should think twice before moving on...(not to mention Alpha, Pequot and Andor - possible shut down is expected)

Bursa Malaysia is just showing the signs of curing but if you should all know the danger of 'reopening old wounds'...look around you..do you care? Volatile price, foreclosure even unemployment (not to mention crime rates) etc can be translated into 'not favouring' the hedge funds...in short - 'losses'!! But so many of us claimed that hedge funds is not the cause but quoting European policymakers :

"They many have exacerbated it by fueling bubbles with leveraged investments in the good times and then offloading assets by the bucket-load in the bad times"

Many people follow your assurance that they'll be making money but they didn't actually get what they should be getting - but most of you fund managers love to blame 'the economic crisis'...what an absurd statement! (excuse me!) You are 'hedging'!! (making money in down markets - this doesn't work anymore..face it!) Traders and portfolio managers have been sending e-mails to me that they are loosing money out of their pockets...ask them why? (20% on top of 2% management fee? Ring a bell?)

But despite of all these talks of mine - I ain't implying that hedge fund is no good but during unsuitable times like today, something should be done either follow the rules 'religiously' or off you go! Why Nik? Here's my answer : it's almost 1998 all over again...and I'm sure you don't want this to reoccur. 1998 is not because of hedge funds but a proper regulations were not really there yet.

So, what sort of regulations Nik? You have ideas? Ok..first of all private equity and hedge funds 'people' must be transparent from now on...no more 'disreet'..no more 'classified'..no more 'confidentiality'. I know sometimes taxation is a big issue to you but give it a thought for just a short while - give your lending ears to listen to what I have to say before you click 'x' on this blog.
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Initial proposal from Nik Zafri to anyone out there reading my blog - who wish to listen :

You must first reveal your plan (To the proper authorities..I don't know..maybe SC, Inland Revenue, BNM) on:

a) managing level of capital,

b) managing risk,

c) valuation of assets and most important

d) your strategy in doing business.

2nd - STOP NOW if you're involved in any trade relating to MONEY LAUNDERING!! (so, is this the thing you're being discreet about?) Get out now before it's too late!

3rd - It's time to pay based on gains not losses!! Otherwise, we will go back to square 1...make money during down market..gosh...

Having this sort of regulations may help our economic recovery further but of course if the regulations are not strict enough and having loopholes...definitely there can be abuse - some people in the market will always creatively found a way to do 'evasive maneuvers'

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More to come...

AS PREDICTED BY NIK ZAFRI




As Nik Zafri has predicted, there will be signs of recovery for Malaysia from April, 2009

NIK ZAFRI'S HUMBLE FORECAST FOR 2009 - (Made in December, 2008)

2ND SIGN

1ST SIGN


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THE STAR - BUSINESS

Thursday April 16, 2009

Economy expected to perform better, says Bank Negara

KUALA LUMPUR: The economy should perform better in the second half of the year as the fiscal stimulus packages are implemented and the effects of the supportive monetary environment kick in, Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz said.

"The first quarter was very much affected by external economic contraction taking place, our exports numbers have shown that,” she said.

Malaysian Institute of Economic Research expects local exports to decline 24% this year on sagging worldwide demand, the think tank said in its report yesterday.
Speaking after launching the Interbank Murabahah Master Agreement (IMMA) and Master Agency Agreement (MAA) yesterday, Zeti said the domestic economy was still growing and “this is what we need to sustain the country’s economy”.

Asked if the central bank would revise its economic growth target, she said: “Right now, we have made the assumption that in the second half, the external environment will stabilise and that the fiscal stimulus packages will be implemented.”

“And so, in the current environment, our projection is flat growth as the contraction of the external sector would be offset by domestic demand,” she said.

Bank Negara has projected the economy to register a growth rate of -1% to 1% this year.

On whether the economy had bottomed, Zeti said: “No, it is not clear yet what the direction is in the global economy.”

There was “some stabilisation” taking place but “we still have to wait and see”, she said.

To another query on interest rates, the governor said the central bank had already adopted an aggressive stance and now the focus was to ensure that lending continued.

Zeti said there was no need to raise banks’ minimum capital requirement at the moment.

Non-performing loans were at a historical low now at just over 2%, she said, adding that even if the rates rose, banks were “well positioned to absorb it”.

Zeti said Malaysia did not manage its exchange rate against any specific currency.

“The currency is not a policy instrument but is used to facilitate trade and investment,” she said.

Meanwhile, the newly launched agreements have been adopted by the members of the Association of Islamic Banking Institutions Malaysia (AIBIM) for their deposit-taking and placement transactions.

AIBIM president Datuk Zukri Samat said the adoption of the IMMA and MAA documents would help increase the intensity of Islamic interbank activities.

Like any other money market products, the success of commodity murabahah-based instruments would depend largely on the existence of a standardised document as well as a universally-acceptable structure that was widely recognised by the market, he said.
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Published: Thursday April 16, 2009 MYT 9:39:00 AM
Updated: Thursday April 16, 2009 MYT 9:41:26 AM

TNB powers KLCI early rise

KUALA LUMPUR: Shares on Bursa Malaysia jumped in early Thursday trade, as Wall Street rebound overnight buoyed investors’ sentiment across Asia.

Tenaga Nasional Bhd led rising stocks, adding 25 sen to RM6.75 on brighter outlook despite a drop in profits in the second quarter.

The surge in trading volume in the past few days also helped lift sentiment on the exchange operator, Bursa Malaysia Bhd. The stock climbed 25 sen to RM6.25.

Another big movers among index-linked companies was Malayan Banking Bhd. The counter soared 16sen to RM4.48.

The KL Composite Index advanced 11.44 points, or 1.2% to 968.12 points as at 9.27am. Turnover had surpassed 400 million shares worth at least RM200mil less than half an hour into trade.

The FBM Small Cap index, which track stocks outside the top 100 counters, gained 1.65% to 7,549 points

Around the region, stocks opened higher after stocks on Wall Street staged a late rally overnight. The Dow Jones Industrial ended 1.4% higher to 8,029 and the broader S&P 500 index gained 1.25% to 852 points.

In Tokyo, the Nikkei 225 shot up 3% to 9,007 points, while Seoul’s main Kospi index opened 2.4% higher at 1,365 points. Singapore’s Straits Times index kick off Thursday’s trade with a 2% gain at 1,943 points.
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Thursday April 16, 2009

Local stock market promising, set to make gains: CIMB Research

By EDY SARIF

PETALING JAYA: The local stock market outlook is promising and set for further gains due to the “political succession effect and the bottoming of foreign selling,” CIMB Research said.

“We see an improved outlook for the market due to a few reasons,” the research house wrote in its latest report.

“One is the political succession effect when Datuk Seri Najib Tun Razak took over as prime minister. Historically, the market performed strongly in the three to six months before and after the changes.”

CIMB Research recently upgraded its rating on the local stockmarket to “overweight” from “neutral” and also raised its target for the KL Composite Index (KLCI) to 1,060 points from 1,013.

An imminent “reversal” in the flow of foreign funds would further lift the local bourse, the research house said, noting that foreign shareholdings were at their lowest level in February since September 2003, at only US$3bil (RM10.85bil).

“The slowdown in foreign fund’s net selling should lessen the downside pressure on share prices,” CIMB Research said.

“In fact, a reversal of these trends would provide a fillip to the market given local and foreign funds’ very high cash levels.”

It added that “a reversal should be imminent as the 12 straight months of net selling are unprecedented”.

Fortress Capital Asset Management (M) Sdn Bhd chief executive officer Thomas Yong said the current assessment on how the stock market was doing was much clearer to investors.

“This is supported by a significant amount of rebound in the market as Malaysia, with less foreign ownership, seems to recover much faster as compared with Singapore and Hong Kong,” he told StarBiz.

Aberdeen Asset Management fund manager Abdul Jalil Abdul Rasheed said as a long-term investor, they were not looking much at the daily performance of stock market.

“We don’t strategise ourselves for short-term market rally as what is happening now in the market. We are steadily buying regardless of whether the market is up or down. In fact, we buy more when the market is down,” he told StarBiz.

But some fund managers remain cautious, according to Kumpulan Sentiasa Cemerlang Sdn Bhd research director Choong Khuat Hock.

“These fund managers (would not rush in) to buy the stocks as they are not sure whether the market recovery would be sustainable,” he told Starbiz, referring to recent stock market rallies.

The Star Global Malaysian Forum

The Star Business - Wednesday November 7, 2007

Construction assets draw foreign interest - Infrastructure and development projects a boon to sector

PETALING JAYA: Local construction assets seem to be attracting the interest of foreign investors of late.

Last month, Putrajaya Perdana Bhd saw the entry of a new controlling shareholder, Swan Symphony Sdn Bhd, which bought over Eastern & Oriental Bhd¡¦s stake in the former. Swan Symphony is jointly owned by Abu Dhabi-Kuwait-Malaysia Investment Corp (ADKM) and Autron Investment. With the support of the new shareholders, Putrajaya Perdana is anticipated to expand its presence to the Middle East.

Meanwhile, PJBumi Bhd told Bursa Malaysia on Monday that its substantial shareholder, PJS Industries Sdn Bhd, planned to sell a 10.2% stake to Al-Saudia for RM3.1mil. This was on top of the 25% that PJS disposed of to Metro Utilities Sdn Bhd in September. PJBumi, which is trying to return to profitability, is involved in the design, trading, installation and maintenance of fibre-reinforced plastic, reinforced concrete sewage treatment plants and underground petrol cum storage tanks.


It also manages wastewater treatment, solid waste and garbage collection.

The Government¡¦s efforts to improve the quality of water in the country by rolling out various projects look set to benefit PJBumi. Another company that is going to see a new shareholder is low-profile water player Loh & Loh Corp Bhd. The shares, which are usually thinly traded, seemed to have sprung to life, having appreciated more than 30% over the one week period. The counter was last traded at RM4.12 before being suspended in afternoon trade yesterday.

Loh & Loh told the exchange that its substantial shareholder, Vital Achievement Sdn Bhd, intended to dispose of its shares. An analyst at AmResearch said Loh & Loh was well known as a dam builder in the water sector, having completed several jobs as a sub-contractor for Gamuda Bhd. The company also has experience in bulk earthworks and rail track construction, having built bridges for the Ipoh-Rawang double-track project.

Aseambankers in a report said the domestic construction scene could be seeing another boom, given that at least RM165bil worth of infrastructure and development projects identified by the Government and the private sector were likely to kick off by the turn of the decade. Government spending should pick up since it had to date only spent 25.4% of the RM200bil in development allocation under the Ninth Malaysia Plan, it said.

¡§We foresee high impact and chunkier projects in the rail, water, and oil and gas sectors, and the government¡¦s regional development efforts, to be the key drivers,¡¨ the brokerage added.

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The way I see it this is a good tonic for the local construction industry. Of course, this has something to do with IDR, ECER, NCER just being launched, It is also related to the relatively competitive project management costs that Malaysia has to offer. With various crisis happening almost everywhere in the world, Malaysia is drawing construction FDI interests and possibly JV, smart partnership, strategic alliance and even merging possibilities would be happening. Despite my worries about uncontrolled construction materials cost; come to think of it; the FDI may help the local construction firms in terms of long term financing - thus may help in the long run to ensure the construction industry sustains.

There are somehow other concerns:

a. Shareholding in terms of JV or smart partnerships? Will our construction firms be too strict and not embarking on a 'win-win' situation?

b. Is the local construction firms ready with

i) all the necessary expertise,

ii) possible mixed work cultures influence,

iii) more than enough 'quality' services to provide - in terms of system/process/workmanship, the necessary infrastructures/machinery/ICT capabilities, corporate governance good practices etc.?

c) Will (more and more) our financial institutions be willing to cooperate - help out the local construction industry or just hope that the foreign construction firms come out with majority of financial backups and in the end, we promise them a big amount of concessions, contra with finished properties, or share the future profit reaped from the finished projects? etc? in order to cover the financial backups that are rendered by the foreign construction firms? (via foreign financial institutions e.g. soft loan or long terms bonds or any other financial instruments)

Thus, while we are happy almost seeing big money coming in, I think the local construction firms should also think of what I've said herein. Based on history (and my experience working with the local JV partners) many mega projects management appear to love doing things 'last minute' - I hope this is not the example we're going to show them.

Let's welcome construction FDI with wide hands..WELCOME..but please...let's local construction firms be ready to show a very professional ethics in terms of our personal traits, business, technical, system etc.