Malaysia Daily Media Highlights

MISC: Buys Aframax tankers
MISC bought 4 Aframax tankers from Japan’s Tsuneishi Corp for US$260m (RM730m) strengthening its position as the world’s second largest owner-operator of Aframax tanker. The first unit of the 107,500 deadweight tonnage (DWT) tankers will be delivered in 2009, while the rest in 2010. The continuous expansion of MISC’s petroleum fleet under American Eagle Tankers (AET), supported by regional offices in London, Singapore and Houstan will provide MISC with the critical mass to better service customers globally. (BT)

UMW: To list China Ops
UMW Holdings has stepped up the re-organisation of its China-based associate Wuxi Seamless Oil Pipe Co Ltd (WSP), which would lead to a possible listing of the new holding company of WSP. UMW’s effective interest in WSP shall remain unchanged at 30.6% after the restructuring. The proposed restructuring was to unlock and enhance the value of its investment in WSP.

Malaysia Finance Ministry to ensure swift 9MP implementation
Malaysia’s Deputy Finance Minister said the Ministry of Finance (MOF) will do its part to ensure that the 9MP projects will be implemented quickly to get the economic momentum rolling into 2007. He said the MOF is also involved at “hands-on level” of 9MP implementation, such as land issues with state administration. He also reassured that the bulk of the financing for 9MP will be from domestic sources.

US: Consumer sentiment falls marginally in October
US Consumer confidence complied by the Conference Board fell slightly to 105.4 in October (September: 105.9) weighed down by job prospects in the coming months despite the easing of energy prices. The report suggest that the positive impact of lower energy prices could be offset by the negative wealth effect from the housing sector correction. In a separate report, the Chicago based National Association of Purchasing Management (NAPM) said its business index fell to 53.5 in October, the lowest reading since August 2005.

IMF: China should make Yuan more flexible
The IMF said China should allow more flexibility in its currency and reduce its dependence on exports as the main engine of growth. The IMF said the robust growth in China has accorded the right timing to introduce more flexibility in Chinese Yuan as a more flexible Yuan would help to make China’s growth more sustainable. The IMF also raised China’s 2006 growth forecast to 10.5% from earlier estimate of 10%.