Friday, December 10, 2010

Fund managers foresee polls before June

Thu, 09 Dec 2010 18:16
By FMT Staff

KOTA KINABALU: If Malaysian fund managers had their way, Barisan Nasional will call for the country’s 13th general election before June 2011.

“Our view is that the general election would probably take place in the first half of next year because the market will be stronger in the next 12 months," said OSK Investment Bank's deputy head of research Jeffrey Tan.

Tan, who was here last week, is as bullish about the economy as his peers in MIDF and Bursa Malaysia.
He listed the three “Es” theme that is expected to drive the market stronger in 2011 – election, economic reforms and earnings.

He said that the coming election was good for the construction sector, with lots of contracts being awarded.
In Sarawak, which is due to hold its state election next year, Tan said that the state's construction companies would benefit from a foreseeable building boom.

In Sabah, the biggest oil and gas contract was recently awarded to the Naim Group which has set up its office at the Great Eastern Life Building in Kota Kinabalu, which is suffering a glut in office space.

Comfortably optimistic

Looking at economic reforms, Tan said that aside from awarding contracts, the government has astutely bought sufficient time to prove itself in the transformation process.

Consumer spending has improved and consumer stocks on Bursa Malaysia are up in the third quarter to boost earnings.

The media sector, he said, was among the key sectors that has performed well in terms of earnings from advertising revenue.

Tan also saw prices rising in the property sector.

According to him, the sector has always been a laggard and over-rated with sky-high prices in some hot spots, but nevertheless demographics will drive up prices in the longer run in other areas.

Meanwhile, ground sentiments also appear to confirm Tan's view, with most businesses comfortably optimitic now compared with two years ago.

“If people try to convince you that Malaysia is hopeless, I don’t think so,” said MIDF Amanah Assets Management chief executive officer and chief investment officer, Scott Lim.

He said that Malaysian companies today, including those in Sabah, could do business with any countries in Asia without depending on the Malaysian government.

"Malaysia has 25 million people. Asia has three billion people. You have to keep faith that Asia will bloom.
“What the world is doing today is going to have a bigger impact than what the Malaysian government is doing today.

“I am not saying that the Malaysian government has changed and has become a better government.
“The new administration has woken up and realised that we need to open up and sell to a bigger market.

“In budget (2011), the government is rolling back 10 years of mistakes – spending taxpayers' money.
“The last 10 years the government has been spending taxpayers’ money on your behalf to try and stabilise the economy.

“But today, it has given the signal to private investors: you are supposed to run the show now,” he said.

Educating retail investors

Fund managers have been urging Sabahans to put their monies in equities in order to fight inflation and earn better returns to improve their standard of living.

Sabah is reputed to have the highest cost of living in the country. It also has the highest number of poor people in the country.

Bursa Malaysia global head of securities markets, Uday Jayaram, a Sabahan, said: “I am a Kota Kinabalu boy. Although I now work in Kuala Lumpur, it is a pleasure for me to be back and see so many retail investors at this Market Chat 2010 programme run between Bursa Malaysia and our local partners.”

Speaking at the launch of the Market Chat 2010, Jayaram, who did his primary school education in Sabah before continuing his studies in Singapore and the UK, said the role of Bursa Malaysia in providing education for the investing public was crucial.

“Retail investors form a very crucial part of the business and only about 20% to 22% of the investors in Bursa Malaysia comprise retail investors.

"We would like to see retail investor participation in Bursa Malaysia reach 40% to 50% soon.
“We want you to be confident of putting your money in the market. We want to see more liquidity, more volume in the market so that you can make money. That is what we want,” he said.

He called on retail investors to educate themselves to make informed decision on investments as well as to get good professional advice before they make a commitment to invest in Bursa Malaysia’s many sectors.
Jayaram sees Bursa Malaysia’s prospects as good next year and hopes that more will be drawn into the Malaysian stock market and become successful retail investors.

The Market Chat programme is being held in most towns in Malaysia to educate and create awareness on the securities market as well as encourage online trading among retail investors.


  1. As we can see alot of goodies are coming from the tax payer money for assssno cronies which the GE13 is around the corner.

    Vote UMNO out from Sabah for good!

  2. Just be prepared to face the elections, what else can you do about it?

  3. just be prepared. wait and see when the election will be held.

  4. We still don't know want the GE 13 will be start. Just wait, see and listen the announcement.

  5. PRU 13 akan tiba. banyak mengatakan the PRU13 ini akan berlangsung pada tahun depan 2011. Tapi ini cuma andaian dari setiap orang. Setiap parti haruslah bersedia dari sekarang sebelum terlambat.

  6. biasalah, semakin dekat PRU semakin banyak spekulasi negatif.

  7. PRU 13 will be held by next year.

  8. Bersiap sedia untuk menghadapi Pilihan Raya dari sekarang.

  9. Even DPM has said that, this is going to be happened on next year.

  10. PRU 13 akan diadakan pada tahun depan, tak syak lagi.

  11. June 2011? I guess earlier than that.

  12. Ini adalah penentu segala manusia.

  13. PRU 13 will be held by next year? Hopefully...

  14. It is not a surprise if election is going to hold early next year. BN is in a strong and favorable situation....

  15. Bersedialah untuk bertanding.

  16. ..and SAPP still gonna stand in Batu Sapi?

  17. I don't Sapp or Pakatan can win in Batu Sapi becoz of 5000 PTIs with mykads and 1600 postal votes. The amount of these manipulated voters is enough to win already. No thanks to the treacherous BN government.

  18. Speculations is useless. Just get ready to contest.

  19. Adakah anda sudah bersedia mengundi?

  20. Sesiapa yang belum memohon menjadi pengundi, pergilah sekarang.

  21. Better be prepared for the elections.

  22. The elections are just around the corner. Stop fooling around.

  23. When Jesus went to village he revealed to people the truth.
    When so-called experts gave opinion(even in 1997 down flat)about market someone still believe we can even about to jump down and sink.
    Wine drinker,wine maker and wine promoter always have their own agenda to twist and turn.
    High living real high costs in everything but what about power of spending and earning whenever we compare to the standard of high living in Sabah?Are we spending the future money now where business people always say they can make really very high percent of profit doing business here.The state is poorest but it seems sabahan still many are rich and wealthy affordable to spend even with comparable low earning income to other states.
    Some sabahan feel happy the value of land and property costs are high and good but once sold can't buy back another again.Young generation can sell off those properties asset owned by first generation and feel comfort to turn into cash to enjoy more luxury life now careless of the future!
    Malaysia is not hopeless include Sabah but do wake up and recognise those many hopeless opportunist making sabahan silly fool with low earning but coup with high spending and living.Even some sabahan leaders bias with other to make fortune from states resources and natural wealth like land etc.
    Mahatma Gandhi said:"Enough"! So when are you really make a clear stand to change for better to safeguard Sabah as sabahan.
    Good luck!

  24. "1001 nights stories VS Ali-Baba"
    It has become sabahan's phobia always to say no but again repeat it.
    It would have done in 308 but not then hopefully next times in coming one but may be not again.
    Folks in kampung hardly know what you mean to 'change'and always the case!
    Put every message across instead of pointing finger at other.Ask at the end of days who shall be blamed?

  25. Bersedia untuk cabaran yang akan datang.

  26. sibuk apo kalo isteri tak jaga pon kena larikan oleh urang lain.Butul tak? Apo lagi kalo pemimpin-pemimpin parti tak jaga rakyatnyo?

  27. Pilihan Raya ke 13 dah hampir sudah.


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