Regional sell-off on China fears

KUALA LUMPUR: The KL Composite Index plunged in tandem with regional markets on what equity researchers say could be due to investment tightening measures imposed by foreign governments as well as interest rates increases.

However, the Bursa staged a strong late recovery, possibly due to late institutional support, to close 35.79 points lower at 1,237.08, or 2.81%, after having recorded a massive 53.24-point plunge only about 13 minutes earlier at 4.47pm.

Regional bourses did not fare any better, with the Shanghai and Shenzhen bourses of China the biggest losers with 8.84% and 8.54% decreases respectively, while Singapore’s Straits Times Index recorded a 2.29% slide.

In a random survey, most equity researchers and fund managers believe the strong fundamentals of the Malaysian economy would lend support to the share market. However, StarBiz technical chartist G.M. Teoh said there could be more drastic downside.

Hong Kong’s Daiwa Asset Management Ltd fund manager Mona Chung told Bloomberg that investors could be worried that China might impose tightening measures on illegal investments that have driven benchmarks to records, while China National People's Congress vice-chairman Cheng Siwei had earlier this month warned of stock market “bubbles.”

The biggest loser yesterday on the local market was Bursa Malaysia with a RM1.10, or 9.2%, drop. Other top losers included Genting Bhd, Batu Kawan Bhd and IJM Corp Bhd.

Losers crushed gainers by 1,157 to 42, with 60 counters remaining unchanged.

Among the top gainers were newly listed H-Displays (MSC) Bhd, KFC Holdings (Malaysia) Bhd and MISC Bhd.

Government mulls over fast-food ad ban?? Really?

PUTRAJAYA: The Health Ministry is “seriously considering” a ban on fast food advertisements.

Minister Datuk Seri Dr Chua Soi Lek said the move would also cover endorsements of events linked to fast food.

This was because such meals are considered “silent killers,” he told reporters here.

A fast food “sin tax” is also being pondered, added Chua.

He said the rationale for the proposal was motivated by the increasing number of Malaysians suffering from “affluent” diseases, such as diabetes and hypertension.

“There are a lot of lifestyle diseases because of rising affluence.

“Surveys consistently show that Malaysians don’t exercise enough and do not pay attention to the food they eat.

“This is the only country where people discuss over breakfast where and what to eat for lunch. And then over lunch, it will be what’s for supper,” he noted.

Dr Chua said obesity, which was the “root of all problems”, now affected 37% of the population, compared to 20% a decade ago.

About 12% of the population would suffer from diabetes by 2020 if nothing were to be done, he said.

Dr Chua, a medical doctor, said as far as his ministry is concerned, burgers and fries are just as bad as cigarettes and liquor.

Admitting that the move would be “revolutionary”, Dr Chua said the ministry welcomed feedback on its proposed action.

“We want to send a strong signal to consumers.

“We do not allow advertising for cigarettes and liquor.

“Fast food should be treated in the same way as alcohol. The time has come.”

Responding to the proposal, Association of Accredited Advertising Agents of Malaysia president Datuk Vincent Lee said a total ban on fast food ads would not be feasible.

He said advertising agencies and their clients were already exercising “self-control” on fast food advertising, such as not targeting children aged below seven.

“Even in the United States and Europe, there is no total ban on fast food advertising,” he said.

Revenue from fast food advertising on TV, newspapers and billboards totalled over RM100mil annually.

“So it will be quite detrimental to the media,” Lee said.

Greenhouse gases hit new high, may be Asia growth?? YAU MOU GAU....CHOR!!

OSLO (Reuters) - Greenhouse gases widely blamed for causing global warming have jumped to record highs in the atmosphere, apparently stoked by rising emissions from Asian industry, a researcher said on Friday.

"Levels are at a new high," said Kim Holmen, research director of the Norwegian Polar Institute which oversees the Zeppelin measuring station on the Arctic archipelago of Svalbard about 1,200 km (750 miles) from the North Pole.

He told Reuters that concentrations of carbon dioxide, the main greenhouse gas emitted largely by burning fossil fuels in power plants, factories and cars, had risen to 390 parts per million (ppm) from 388 a year ago.

Levels have hit peaks almost every year in recent decades, bolstering theories of warming, and are far above 270 ppm before the Industrial Revolution of the 18th century. Climate scientists say the heat-trapping gas is blanketing the planet.

Holmen said the increase of 2 ppm from 2006 reflected an accelerating rise in recent years. "When I was young, scientists were talking about 1 ppm rise" every year, he said. "Since 2000 it has been a very rapid rate."

"The large increases in release rates are definitely in the Asian economies," led by China, he said. China is opening coal-fired power plants at the rate of almost one a week.

SPRING FALL

Carbon dioxide concentrations peak just before the northern hemisphere spring, when plants start soaking up the gas as they grow. Southern hemisphere seasons have less effect since there are fewer land masses -- and plants -- south of the equator.

The Zeppelin station is run in cooperation with Stockholm University and is one of the main measuring points along with a station in Hawaii. Remoteness from industrial centres helps.

Scientists say the concentration of carbon dioxide, according to the modern records, is at its highest in the atmosphere in at least 650,000 years.

The world's top climate scientists said in a report on Feb. 2 they were more than 90 percent certain that human activities, led by burning fossil fuels, were to blame for warming. That was up from 66 percent certainty in a previous report in 2001.

The U.N.'s Intergovernmental Panel on Climate Change said that temperature rises were set to accelerate and could gain by between 1.1 and 6.4 Celsius (2.0-11.5 Fahrenheit) by 2100, bringing more floods, droughts and rising sea levels.

Apart from human emissions from burning fossil fuels, he said there were other factors that could affect carbon dioxide levels in future.

On the one hand, plants may grow more in a warmer world, soaking up more carbon dioxide. But if the soil gets warmer, dead plants and leaves may rot more in winter, releasing more carbon.

Any heating of the oceans may means less absorption of carbon dioxide, partly because the greater buoyancy of warmer water inhibits a mixing with deeper levels.

RM1,069,000,000,000 Malaysia's annual total trade breaks RM1 trillion mark for the first time

KUALA LUMPUR: Malaysia took a giant leap as a trading nation when its trade registered a historically unprecedented volume: breaching RM1 trillion for 2006.

Prime Minister Datuk Seri Abdullah Ahmad Badawi, who also holds the finance portfolio, said Malaysia’s trade totalled RM1.069 trillion — a 10.5 per cent growth over the previous year.

This, he said, surpassed by 50 per cent the estimated seven per cent global growth projected by the World Trade Organisation for last year.

Exports expanded by 10.3 per cent to RM588.95 billion while imports grew by 10.7 per cent to RM480.49 billion.

In a statement issued by his office, the prime minister was exultant, saying: "It is an inspiring achievement.

"Although our country has faced numerous challenges, in particular the financial crisis in 1997 and a global economic downturn in 2001 and 2002, we have successfully coped with these upheavals and continued to perform well."

The facts:

• The highest ever trade surplus registered — RM108.46 billion — making it the 110th consecutive month of trade surplus since November 1997;

• Exports grew by 10.3 per cent to RM588.95 billion in all the major sectors — manufacturing, agriculture, minerals and fuel; and

• Imports grew by 10.7 per cent to RM480.49 billion, reflecting the demand by a strong manufacturing sector.

Abdullah said a breakdown of the figures showed that the trade profile had undergone significant changes in the last two decades.

• In 1987, more than half — or 53.4 per cent — of total trade came from commodities such as crude oil, timber, palm oil and rubber and manufactured goods accounted for 14 per cent of total exports.

One decade later — in 1997 — the profile changed again.

Commodities contributed only 17 per cent while manufacturing became the mainstay, contributing to 78.5 per cent of total trade.

"This reflects Malaysia’s industrial development and emphasises the strength of the manufacturing sector in enhancing the country’s exports," Abdullah said.

The other significant profile change has been in Malaysia’s trading partners, he said.

In 1987, Malaysia’s trade was largely confined to advanced economies such as Japan, the United States and Europe.

Ten years ago, while still maintaining the important trade ties with the advanced economies, Malaysia widened its portfolio to grow trade with Asean countries, West Asia and China.

It also expanded trade with developing economies in Latin America, South Asia and Eastern Europe.

The result — sustained trade growth — averaging 10.8 per cent on an annualised basis between 1997 and 2006.

The record trade growth comes on the back of increasingly positive economic data in recent months which, coupled with more business-friendly policies and development plans, has attracted foreign investors in droves to Malaysia.

The stock market has made a significant leap since the 1998 regional economic crisis with the benchmark Kuala Lumpur Composite Index (KLCI) closing at 1,245.36 points yesterday against 262.7 points on Jan 9, 1998.

Gross Domestic Product is estimated at RM277.2 billion last year against RM182.2 billion in 1998 while foreign direct investments reached RM17.88 billion in 2005 from RM13.06 billion in 1998.

Yesterday, Deutsche Bank head of equities research Teoh Su Yin briefed newsmen in Kuala Lumpur, saying although the KLCI has risen by some 27 per cent since November last year, the market still has room for expansion.

Mahathir Speaks Out on War - Computer First

http://www.youtube.com/watch?v=P4YvF8JiA7M