FACTBOX-Petronas: Malaysia’s golden goose

KUALA LUMPUR, July 1 (Reuters) – Petronas [PETR.UL] paid
out less to the Malaysian government due to lower profits
arising from sluggish production and falling prices.

The state oil company is crucial to Malaysia’s economy as
it provides almost half of the country’s budget revenue through
dividends and taxes at time when the government is struggling
to rein in a budget deficit. Here are some key facts on the
firm that some analysts have called “Malaysia’s golden goose”:

KEY FACTS

* Malaysia’s state-owned oil and gas company Petroliam
Nasional Berhad (Petronas) was started up in 1974 as controls
and owns the Southeast Asian country’s oil and gas resources.

* Petronas ranked number 14 among Asia’s top 50 companies,
and 80th globally in Fortune magazine’s Global 500 listings in
2009. It is the only Malaysian company in the rankings.

* It’s company headquarters are in Tower One of the
88-Petronas Twin Towers that was the world’s tallest towers
when completed in more than a decade ago.

* Some credit analysts dub Malaysia as “subsidary of
Petronas” as the oil company’s debt is rated more highly than
the sovereign state. Standard & Poor rates Petronas at
“AA-minus” above its “A-minus” rating for Malaysia.

* In the year to March 2010, Petronas pumped in 57.6
billion ringgit to the Malaysian government in the form of
taxes, dividends and petroleum proceeds.

The payments fell by more than a fifth from a year ago and
was in tandem with weaker production and falling crude oil
prices. For a related table [ID:nSGE66005Q]

KEY BUSINESS

* Overseas expansion in the 1990s turned the national
champion into a multinational. More than 33,400 employees work
in 105 wholly owned and 22 partially owned subsidaries, and 54
associate companies.

* The firm’s total domestic oil and gas production for FY
2010 stood at 1.11 million barrels equivalent per day (bpd),
which represents 68.2 percent of average total national output.

* In the year, the firm’s international oil and gas output
rose 1.7 percent to 640,000 bpd thanks to higher natural gas
production. Africa dominated Petronas’ global output with a
contribution of 57.7 percent.

BOOSTING THE MALAYSIAN STOCK EXCHANGE

* Petronas Dagangan (PETR.KL), Petronas Gas (PGAS.KL), MISC
(MISC.KL) are among the subisdaries already listed on the Kuala
Lumpur Stock Exchange .KLSE.

* Petronas has said it will float petrochemicals operations
in a $2 billion IPO as well as well as its heavy engineering
subsidiary on the domestic bourse to increase liquidity and
lure more investors into Malaysia. [ID:nSGE64H05P]
[ID:nSGE65708D]

HOW DOES PETRONAS FARE AGAINST OIL MAJORS, STATE OIL FIRMS?

Return on Revenue Return on
Assets

(for FY2010 in percentage)

Petronas 31.1 16.4

Average oil majors 21.7 13.4

Average national oil firms 12.1 12.7

(Petronas documents, ThomsonReuters)

(Reporting by Niluksi Koswanage; Editing by Saeed Azhar)

Malaysia’s Petronas FY09/10 profit falls 23.2 pct

July 1 (Reuters) – Malaysia’s state oil firm Petronas [PETR.UL] said on Thursday net profit in the financial year ended March 2010 dropped 23.2 percent as high costs and lower energy prices hit the industry.

Malaysia’s average crude oil output fell 3.3 percent to 535,000 barrels per day (bpd) in the April-March period, it said.

“The year in review proved to be unusually difficult and challenging for the Petronas Group,” its CEO Shamsul Azhar Abbas told a results briefing.

“Profits experienced even more substantial declines as industry costs continued to remain at relatively elevated levels.”

Net profit fell to 40.3 billion ringgit ($12.43 billion), from 52.5 billion ringgit a year earlier.

Benchmark U.S. oil prices CLc1 averaged nearly $79 a barrel in the first quarter, recovering from a $43 average during the first quarter of 2009, but are still below a high of $147 hit during July 2008.

Petronas plans to list its petrochemical business before the end of the year, the company’s vice-president of finance, George Ratilal said.

Petronas is crucial to Malaysia’s economy as it provides almost half of the country’s budget revenue through dividends and taxes.

Petronas made 57.6 billion ringgit in payments to the Malaysian government in the 2010 financial year, 22 percent lower than the 74 billion ringgit paid in the previous financial year.

Shamsul, a former executive at Petronas’ shipping subsidiary MISC (MISC.KL), became the new chief executive in February, replacing Hassan Marican who built the firm into a Fortune 100 company. ($1=3.242 Malaysian Ringgit)

(Reporting by Saeed Azhar and Niluksi Koswanage; editing by Liau Y-Sing)

ZTE Partners With Telekom Malaysia to Roll Out High Speed Broadband Network

New Infrastructure Will Broadly Increase Malaysia`s Broadband Penetration Rate
SINGAPORE–(Business Wire)–
ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code:
000063.SZ), a leading global provider of telecommunications equipment and
network solutions, today announced at CommunicAsia in Singapore that it has got
great progress in collaborating with Telekom Malaysia to participate as one of
the major suppliers to construct a national High Speed Broadband (HSBB) network
in Malaysia. The HSBB network has been planned to provide nationwide high-speed
broadband access to offer unparalleled broadband user experience across various
areas in Malaysia.

To date, ZTE has deployed more than 400 sites with ZTE`s MSG5200 equipments,
which provides integrated access of the narrowband and broadband services to
accommodate the service access requirements for different users. It enables
greater flexibility by combining multi service cards in the same shelf.

The HSBB network is a nationwide communications initiative spearheaded by the
Malaysian government with the aim of turning Malaysia into a broadband rich
nation. The objective is to increase broadband home penetration rate to 50% from
the current 35% by the end of 2010. Under the contract, ZTE will provide Telekom
Malaysia with Multi-Service Access Nodes (MSAN) as part of Phase One of the HSBB
network development.

“We are pleased to partner with Telekom Malaysia to construct its national HSBB
network, and in turn help the company to maintain its leadership position in the
local market,” said Ms. Jane Chen, senior vice president, ZTE Corporation. “Our
MSAN equipment will enable Telekom Malaysia to meet their growing broadband
market needs while maximizing their ROI to achieve the best business results
while propelling the country`s communications infrastructure forward.”

Signed in September 2008, the RM11.3 billion national HSBB project is a
Public-Private-Partnership agreement between TM and the Government of Malaysia
to develop next generation high speed broadband infrastructure and services for
the nation. The advantages demonstrated by ZTE`s access products and solutions
will establish a solid foundation for the company to take on a greater role in
Telekom Malaysia`s HSBB network deployment.

At CommunicAsia 2010 today, the unparalleled one-stop ICT event platform in Asia
held in Singapore from June 15 through 18, ZTE will also unveil its
“Asia-Pacific FTTx Business Model,” which is designed to provide customized,
intelligent and diversified total broadband solutions for full-service operators
in Asia-Pacific countries, such as Malaysia and Indonesia, to meet the fast
growing broadband market demand and complex network requirements.

About ZTE

ZTE is a leading global provider of telecommunications equipment and network
solutions with the widest and most complete product range in the world covering
virtually every sector of the wireline, wireless, service and terminals markets.
The company delivers innovative, custom-made products and services to over 500
operators in more than 140 countries, helping them to shape the future of the
world`s communications while achieving continued revenue growth. ZTE`s 2009
revenue led the industry with a 36% increase was over USD 8,820.7 million. ZTE
commits 10% of its annual turnover to research and development and takes a
leading role in a wide range of international bodies developing emerging
telecoms standards. A company with sound corporate social responsibility (CSR)
initiatives, ZTE is a member of the UN Global Compact. ZTE is China`s only
listed telecom manufacturer, with shares publicly traded on both the Hong Kong
and Shenzhen Stock Exchanges (H share stock code: 0763.HK / A share stock code:
000063.SZ). For more information, please visit www.zte.com.cn.

ZTE Corporation
Margrete Ma, +86 755 26775207
ma.gaili@zte.com.cn
or
Edelman PR
Ada Ho, +852 2837 4747
ada.ho@edelman.com
Andres Vejarano, +852 2837 4735
andres.vejarano@edelman.com

Copyright Business Wire 2010

Malay Indian body demands fair scholarship allocation

Kuala Lumpur, June 11 (ANI): An Indian group, the Federation of Malaysian Indian Organisations, has requested the Malaysian Government to review its policy on scholarship allocation, the Daily Star reports.

The organisation’s President, A. Rajaretinam, said he was saddened about the fact that of the 1,500 scholarships given out recently, 1,200 went to Bumiputras and the rest to non-Malays.

“We are not against Umno or Bumiputras. We just want non-Malays to be given the same number of scholarships that was given out last year and the year before in line with the democratisation of education”, he was quoted, as saying, after a meeting between Pakatan Rakyat MPs and NGOs over the controversial allocation of scholarships.

He said he was surprised over PSD’s decision to give 80 per cent of the scholarships to bumiputras this time when the formula for the past two years was 55 per cent Malays and 45 per cent non-Malays.

“If they are going to reinstate the number of scholarships to 2,100, which was the total number given out previously, the remaining 600 scholarships should be given to non-Malays,” he said.

The Public Services Department (PSD) though, is learnt to have assured him that it would conduct a review in this regard following the public outcry. (ANI)

Malaysia offers amnesty to illegal workers

May 21 (ANI): The Malaysian Government is offering illegal foreign workers a chance to return home without facing action.

Authorities have, however, said they will increase the levy based on the number of immigrant labour and their skill levels in order to regulate their inflow.

The amnesty programme has yielded productive results in the past with 230,000 workers taking up offers.

“After the amnesty offer expires, we will act against all those who harbour foreign workers without permits,” The Star quoted Deputy Prime Minister Muhyiddin Yassin as saying.

The government will be bearing the expense of sending back the workers only partially and employers would also be held responsible, he added.

On the introduction of biometric system, Yassin said: “The biometric identification system is necessary to ensure that we record the entry of all visitors and workers into the country. It will include work to update and coordinate all hardware, software and data managed by different agencies and ministries.”

“We will leave it to the Home Ministry, namely the Immigration Department, to implement it as soon as possible,” he added. (ANI)

NGO asks Malaysian Government to promote Hinduism

Kuala Lumpur, May 4 (ANI): The Malaysian Government has been urged by an NGO, the Malaysia Hindu Sangam, to give more importance to the growth of Hinduism under the Tenth Malaysia Plan.

NGO president Mohan Shan said that a memorandum on the matter had been submitted to the Malaysian Government, the Makkal Osai reports.

He said the Government had given grants for the development of temples but more funds were needed to set up kindergartens, and religious and moral classes.

In Malaysia, more than 1.7 million Indians live, a majority of them are Tamil Hindus, who constitute seven percent of the multi-racial 28 million population. (ANI)

Malay-Indian Congress Youth want funds for maintaining Indian cemeteries

Kuala Lumpur, May 3 (ANI): The Malaysian Indian Congress (MIC) Youth has asked the Malaysian government to release financial grants for maintenance and upkeep of Indian cemeteries.

This follows a slew of initiatives by the MIC to address Malay-Indian issues.

Malaysia Nanban quoted Youth chief T. Mohan as saying that temple committees and non-governmental organisations were facing a shortage of funds for the upkeep of the cemeteries.

Mohan, who took part in a clean-up campaign at the Puchong Indian cemetery on Labour Day, said all the state Youth sub-committees had also organised a similar exercise in 24 Indian cemeteries reports The Star.

The MIC Youth would undertake the cleaning up of the cemeteries in all states on every Labour Day, he added.

MIC Youth has asked the Government for financial grants to help maintain Indian cemeteries.

The Government, he claimed, had previously announced that it would allocate 300,000 ringgits for the maintenance of the cemeteries but no funds had been disbursed to date. (ANI)

Malay-Indian youngsters to discuss community issues with Prime Minister

Malaysia, Apr 27 (ANI): Malay-Indian winners of the “The Wish List of Generation 2020”

competition will share their vision directly with the Malay Prime Minister Najib Razak

on June 12 this year.

The competition has been organised by the government to give the Malaysian Government a

chance to woo for Malay-Indians who form twenty percent of the Malaysian vote-bank. The

general elections are soon to be held in the country.

“The main objective of the competition is to provide a platform for the youths from the

Indian community to voice their needs and hopes to the Prime Minister,” The Star quoted

Deputy Minister M. Thambirajah, as saying.

The government is leaving no stone unturned to appease the Malay-Indian community. Apart

from a chance to meet the PM, prizes include motorcycles and laptops. (ANI)

Malaysian Government to fund and train Indian entrepreneurs

Petaling Jaya (Malaysia), Apr.24 (ANI): A Malay Indian business chamber leader, K.K.Eswaran, has said that RM one million has been allocated for the training of Indian entrepreneurs, and is expected to be given out within the next few weeks.

The allocation marks the first time the Malaysian Government is fully funding a training program run by the Malaysian Associated Indian Chambers of Commerce and Industry (MAICCI), The Star quoted Eswaran, as saying.

“If we are able to run the training successfully, the other RM1mil will also be given to us. Not only that, more funding will follow,” Eswaran told reporters yesterday.

Eswaran said MAICCI would be forming a special task force to draw up a proper module for the training to ensure courses offered would be relevant for the participants.

He pledged transparency and accountability in the use of the allocation, saying an audit report would be presented to Prime Minister Najib Tun Razak and other MAICCI members. (ANI)

Malaysian Govt urged to appoint an Indian as deputy education minister

Kuala Lumpur, Apr. 1 (ANI): The Malaysian Government has been urged to appoint an Indian as the deputy education minister of the country in order to address the needs of Malaysian-Indian students.

The call was issued in the form of a resolution passed by Seremban Jaya Hindu Sangam at its recent annual general meeting, The Star Online reports.

The branch of Hindu Sangam pointed out that the Malaysian-Indian Deputy Education Minister would be able to look after the interests and educational needs of Indian students and Tamil schools in the country, the paper added.

Meanwhile, Malaysia’s Higher Education Minister Khaled Nordin has urged the Indian community to put forward its requests with united voice.

He said that people would lose respect for the community if there were too many factions.

He pointed out that the Government has always recognised the Malaysian Indian Congress as the voice of the Indian community. (ANI)

Allow businesses to directly hire foreign workers: Malaysian Indian Business Association

Johor Baru, Mar. 24 (ANI): The Malaysian Indian Business Association (MIBA) has urged the Malaysian Government to liberalise the recruitment of foreign workers by allowing small-medium industries to hire them directly.

MIBA President P. Sivakumar pointed out that the abuse of foreign workers in the country started when outsourcing companies were given a free hand to import workers.

“Many of them abused the system and brought in thousands of workers. When there was no work, they left the workers stranded at airports and plantations,” The Star Online quoted Sivakumar, as sayings

“Obviously, the workers, who had paid huge amounts of money to come here, then went into hiding and worked illegally,” he added.

Sivakumar said that the problems involving foreign workers would be dealt effectively if the Government allows businesses requiring foreign workers to deal directly with embassies and high commissions.

Sivakumar said many businesses, especially restaurants, laundry shops, goldsmiths, barbers, hair salons and mini markets, were suffering due to scarcity of foreign workers.

He added that the association had been flooded with calls from businesses wanting the Government to either legalise or allow them to recruit foreign workers directly. (ANI)

Amnesty International slams Malaysia for failing to stop migrant workers’ exploitation

Kuala Lumpur, Mar. 24 (ANI): Amnesty International has urged the Malaysian Government to protect migrant workers from getting exploited in the country, where they come to “escape poverty and provide for their families.”

“Migrant workers come to Malaysia to escape poverty and to provide for their families. Once they arrive, however, many workers toil in conditions that amount to labour exploitation,” The Star Online quoted Amnesty International as saying in a report.

“The government of Malaysia has a responsibility to prevent abuses, which can include exploitation, forced labour, and trafficking in persons. Too often, the state fails to do so.”

“Much of Malaysia’s approach to migration is effectively to criminalise it, even though the country could not function without migrant labour,” it added.

The report titled, “Trapped – The Exploitation of Migrant Workers in Malaysia,” points out that Malaysia depends heavily on foreign labourers, who are a fifth of the country’s work force, but lower than promised wages, unsafe working conditions, and arbitrary arrests and extortion amount to exploitation of labours.

However, Malaysia’s Human Resources Minister Dr S. Subramaniam denied allegation that foreign workers faced discrimination.

“The system of bringing in foreign workers is a well established legal system. It is fair to everybody. We offer the same kind of protection to foreigners (as to locals). We don’t protect employers who exploit workers,” he said.

The London based rights group interviewed 200 workers – both legal and illegal – and found that some workers are also held at their workplace by threat or violence.

Three women from Myanmar, working as tailors, recounted how their employers called gangsters to intimidate and force them to work throughout the night.

About two million foreigners work in Malaysia legally, and an estimated one million more illegally.

Most come from Indonesia, Bangladesh, India, Nepal, Myanmar, the Philippines and Vietnam and fill jobs at construction sites, factories, restaurants, households and palm oil plantations. (ANI)

Address Malaysian-Indian concerns in 10th Malaysia Plan, Govt. urged

Kuala Lumpur, Mar. 20 (ANI): The Malaysian Government should address the grievances of its 1.8 million-strong Indian population in the 10th Malaysia Plan, according to a researcher.

The Star Online quoted Dr Denison Jayasooria, a principal research fellow at the Institute of Ethnic Studies, Universiti Kebangsaan Malaysia, as saying that most government agencies did not seriously look into issues like crime, violence, urban poverty, inadequate infrastructure for Tamil schools and low recruitment and promotion opportunities for Indians.

He added that Indian youngsters must change their mindset so they can cope with the rapid economic development. (ANI)

Malaysia gives RM1 million grant for Malay Indian tuition centre

Kuala Lumpur, Sep 18 (ANI): The Malaysian Government has allocated RM1 million to the Sri Murugan Centre to help poor and deserving Indian students excel in their education.

The centre’s director and founder, M. Thambirajah, informed about the grant after receiving the cheque from Prime Minister Najib Tun Razak in Putrajaya on Wednesday.

The centre was established in 1982 to focus on education. It provides tuition for UPSR, PMR, SPM and STPM students. It has 103 branches throughout the country, The Star reports.

Thambirajah said that over the years the centre had produced 16,000 graduates, and added that the funds would be used to open new centres with better facilities.

Youth and Sports Minister Ahmad Shabery Cheek said the National Youth Skill Training Institute’s courses would be revised to be more relevant to the job market.

He said his ministry was seeking the assistance of the private sector to identify the areas of demand so that courses could be tailored accordingly. (ANI)

HINDRAF leader sues Malaysian Govt for 100-million-ringgit over terrorist tab

Kuala Lumpur, Sep. 11 (ANI): Hindu Rights Action Force (HINDRAF) leader M. Manoharan has sued the Malaysian Government for a whopping 100-million-ringgit for calling him a terrorist.

Manoharan, who was accompanied by Hindraf legal adviser P. Uthayakumar, filed the suit against the state and five other defendants at the High Court Registry on Friday, The Star Online reports.

The other respondents named in the suit are Inspector-General of Police Musa Hassan, Attorney-General Abdul Gani Patail, Star Publications (M), New Straits Times Press (M) and Utusan Melayu (M).

Manoharan is also seeking an injunction to stop the defendants or their agents from repeating any of the libellous statements about him.

In his statement, Manoharan said the defendants had published words, which implied that he was a violent terrorist, a devil in disguise, and intended to use violence to achieve his objective.

The Kota Alam Shah assemblyman stated that the claims that he intended to kill other Malaysians had caused him great embarrassment, and ruined his reputation. (ANI)

Malay Indian NGOs want Indian expert to head university department

Kuala Lumpur, Aug.22 (ANI): A group of 128 Indian non-governmental organizations have called on the Malaysian Government to appoint an expert in Indian affairs to head the Universiti Malaya’s department for Indian studies.

The Star quoted coordinator K. Arumugam, who is the group’s spokesman, as saying the expert should have indepth knowledge of Malaysian Indian society, and be proficient in the Tamil language, culture, religion, and history of Malaysian Indians.

Arumugam said copies of the memorandum were handed to the Prime Minister’s office, Deputy Minister in the Prime Minister’s Department Datuk S.K. Devamany and Higher Education Minister Datuk Seri Mohd Khaled Nordin yesterday.

He said a meeting had also been scheduled on Tuesday with the university’s vice-chancellor Prof Datuk Ghauth Jasmon. (ANI)

Indian NGOs want Malay Govt. to save Indian Studies Dept at University of Malaya

Kuala Lumpur (Malaysia), Aug 18(ANI): A group of India-based Non-Governmental Organisations (NGOs) have expressed their wish for the Malaysian Government to intervene in the controversy surrounding the Indian Studies Department (ISD) at the University of Malaya, to solve the issues immediately.

According to reports, a meeting was also organised by the Tamil Foundation in Kuala Lumpur to talk about means to save the department.

Spokesperson for the group, S. Arumugam said that their goal is to ensure that the department remained intact, and not be absorbed into another newly formed department, The Star online reports.

The ISD has been tangled in a leadership crisis of late, and in a recent scandal misconduct was found in the marking of PhD thesis papers where several undeserving students were awarded with first class honours degrees.

Earlier, a heated argument was also reported among the teaching staff, citing appointment of a non-Indian head of the department. (ANI)

Malaysian Government urged to give Indians more opportunities

Kahang (Malaysia), July 10 (ANI): The Malaysian Government should give more opportunities to the Indian community in the country’s development projects, the Tamil Nesan quoted state assemblyman R. Vidyanathan, as saying.

The Indian community had not achieved its target although the Malaysian Indian Congress (MIC) had helped in getting more opportunities for the community, he told the Johor state assembly on Thursday.

He said that the formation of more Rukun Tetangga branches with the involvement of all races would help to foster better friendship and understanding among the people.(ANI)

Lanka envoy calls pro-Malay Tamil protesters ‘jokers’

Kuala Lumpur, May 29 (ANI): Sri Lanka’s High Commissioner to Malaysia Dr D.D. Ranasinghe has described Malaysian Indians who participated in Sunday’s protest rally against alleged Lankan Tamil atrocities as “jokers”.

A Tamil Nesan report quoted Dr Ranasinghe as saying that his government would not take into consideration the concerns expressed by the protesters at a rally in Batu Caves.

The World Tamil Relief and other non-governmental organizations arranged the protest that condemned Colombo and voiced its unhappiness with the deaths of Tamils in Sri Lanka.

He further said international NGOs were being restricted from operating in Sri Lanka for security reasons.

The Malaysian Indian protesters demanded that the United Nations probe the Sri Lankan Government and to bring war crimes charges against its leaders.

They also called upon the lifting of all restrictions on international observers so that they could assess the catastrophe and offer relief.

They also called upon the establishment of an independent Tamil state, pending which a UN peacekeeping force should be deployed.

They also urged the Malaysian Government to help offer assistance to Sri Lankan Tamils and to withdraw support for Colombo’s drafting of a resolution calling on UN members not to interfere in its affairs. (ANI)

Suspected terrorist leader jailed in Malaysia, report says

Suspected terrorist leader jailed in Malaysia, report saysKuala Lumpur – Suspected Islamic terrorist leader Mas Selamat is being detained for a minimum period of two years under a Malaysian security law to undergo “rehabilitation,” an official news report said Wednesday.

Citing “highly placed” sources, the state-run Bernama agency said the man, who had been on Singapore’s most-wanted list for more than a year before he was captured in Malaysia’s southern Johor state in April, was currently detained under the Internal Security Act.

“Mas Selamat is under a two-year detention at the Kamunting Detention Centre” in the northern state of Perak, Bernama quoted its source as saying.

“While under detention, Mas Selamat will be undergoing a rehabilitation programme which will include debating with religious experts on Islam,” said the unnamed source.

Government and police officials have declined to comment on the report.

The Malaysian government has not divulged details of Mas Selamat’s location, or if the alleged terrorist would be returned to Singapore, after authorities from both countries announced his capture last month.

However, Bernama quoted its sources as saying Mas Selamat, 46, would remain for a minimum of two years at the detention camp before negotiations on his transfer to Singapore would take place.

The Internal Security Act, drafted more than 50 years ago to originally combat a communist insurgency, allows for indefinite detention without trial.

Mas Selamat, who is believed to be a top leader in regional terror group Jemaah Islamiah, sparked the biggest manhunt in Singapore’s history after he escaped from a top-security detention centre in February 2008.

Jemaah Islamiah is blamed for the deadly bombings on the Indonesian island of Bali in 2002, which killed 200 people.

Singapore also accused Mas Selamat of having planned to hijack a plane and crash it into the city-state’s Changi airport. (dpa)