Malaysia is not a market littered with private equity deals. Nor is the wider region of southeast Asia. Dealmakers have struggled with relatively high asset prices in Indonesia, and governance and other concerns in Malaysia and Vietnam.
But on Wednesday KKR, the big US-based private equity firm, closed a deal to invest Rm642m ($200m) in Weststar Aviation Services, a company that operates helicopters for the offshore oil and gas business. Continue reading »
When a Legoland theme park opened in southern peninsular Malaysia last year, it provided parents in neighbouring Singapore with a new distraction for their kids, and a nice add-on trip for tourists in the city-state. The facility is less than an hour’s drive away across the causeway that links the two countries.
But it was also a sign of the Danish toymaker Lego’s ambitions in Asia – home to what it says are almost 60 per cent of its “target consumers”, the rising middle class in the region. (Legoland is actually operated by Merlin Entertainments, a UK company, but the benefit to the Lego brand is obvious.) Continue reading »
Singapore’s Club Street is one of its liveliest spots for the bar-hopping crowd and is a good indicator of the economic “feel-good factor” in the Asian city state.
It is also an indicator of the health of the Asian hedge fund industry. Before the global financial crisis the neighbourhood, known for its preserved Chinese shophouses, was also home to a community of boutique hedge funds. Continue reading »
Central banks, we are often told, missed the warning signs that led to the “Great Recession” in 2008: an excessive build-up of household and mortgage debt.
But Malaysia’s central bank, Bank Negara, is showing that you can get ahead of the curve and prevent trouble before it starts to build up to critical levels. That’s the hope, at least. Continue reading »
For commodity traders involved in emerging markets – say, buying cotton in Africa and selling it to China – one of the biggest headaches since the financial crisis has been the tightening of trade finance terms by banks.
It has been harder to finance shipments of commodities as btanks, eager to reduce risk, have been reluctant to offer financing over long distances, or where there is a significant lag between the placement of an order by a customer and receipt of the goods.
Enter Maersk Line with a way round the problem.
Continue reading »
Southeast Asia’s credentials as the next great frontier for economic growth, spurred by young populations and cautious optimism over planned structural reforms is one this year’s big emerging market themes. Just look at the Philippines, which notched up 7.8 per cent growth in the first quarter, even beating China.
But for private equity, the region is proving a tough nut to crack. Last year, according to consultancy Bain & Co, was “underwhelming”. Deal value fell by 16 per cent to $4.9bn, the number of deals dropped to just 32, from 39 the year previously. Continue reading »
Malaysia’s general election produced what many did not believe was probable, even if certainly possible: a respectable win for the ruling coalition, known as Barisan Nasional.
Yet some are now saying it will also produce something far less probable: a sudden end to its victor’s career. Really? Continue reading »
As we come to the end of the first week of official campaigning in Malaysia’s cliffhanger general election – expected to the closest since the country’s independence in 1957 – a strange thing is happening.
Foreign investor confidence in the southeast Asian nation of 29m people was supposed to be getting wobbly. But it isn’t. Continue reading »
Asia’s footprint in Africa’s commodity-rich economies has been growing, with Singapore-listed companies among the biggest investors.
Wilmar, the world’s largest refiner of palm oil, first moved into Africa in 2007 with a couple of palm oil refining joint ventures in Uganda and Ivory Coast. Africa is short of refined palm oil and Wilmar spotted an opportunity to fill that gap. Maersk, the Danish shipping line, says a significant proportion of the goods carried in ships from Singapore to Africa is refined palm oil.
Now Wilmar is expanding its African business to sugar. Continue reading »
Waiting for Najib Razak, Malaysia’s prime minister, to call a much-anticipated general election is getting to be painful.
First it was to have been called at the beginning of the month. This would have meant polling in the last week of March, a convenient time since schools are out and classrooms are often used as polling stations in Malaysia. Continue reading »
Election give-aways are the oldest political trick in the book.
But in Malaysia the prime minister, Najib Razak, is taking them to a new level with the distribution of cash handouts to low-income workers as he prepares to fight a tight election with the country’s opposition.
With the opposition making its own splurge pledges, the voters face some tempting offers. But investors may be less enthralled by the potential pressure on future budgets. Continue reading »
Bose, the US maker of speakers and home entertainment systems, has chosen what to some might seem an unexpected location for its first manufacturing plant in Asia: Penang, on Malaysia’s western coast.
The plant will be the sixth for Bose worldwide, allowing it to supply markets in Asia more easily than from places such as Mexico, where it already has a plant. Continue reading »
For emerging market-watchers, data matter. But if you really want an insight into how trends are shifting on trade flows – especially in Southeast Asia – it pays to listen to a shipping line.
Maersk, the Danish operator which is the world’s largest shipping line in terms of container traffic, sees what is carried on its ships daily, thanks to what is listed on bills of lading as cargoes are loaded onto its ships. Continue reading »
Promoting investment into places like Sabah, on the eastern tip of Malaysia’s bit of Borneo, isn’t easy at the best of times. It is a remote part of Southeast Asia known mostly for spectacular diving and eco-tourism in lush rain forests.
But with the launch on Tuesday of air and ground assaults against Filipino insurgents in eastern Sabah, a few brave souls from the Sabah Economic Development and Investment Authority appeared at a Singapore hotel at an exhibition showcasing investing in Malaysia. Continue reading »
To the lengthening list of foreign companies beating a path to Myanmar, add at least two more: Wilmar, one of Asia’s largest agribusinesses, and Cargill, the commodities’ trader.
Wilmar, a Singapore-listed group and the world’s largest processor of palm oil by volume, told beyondbrics it planned to make “significant investments” focusing on rice, fertilisers, sugar and vegetable oil. Cargill told beyondbrics it was “exploring opportunities” in the southeast Asian country for importing and exporting food and livestock feed.
Continue reading »