KUALA LUMPUR, May 23 — Mubadala Development Co, the investment arm of the Abu Dhabi government, will invest about US$1.8 billion (RM6.3 billion) in a property development project in Malaysia, a local newspaper reported today.
The project involves the construction of hotels and villas on a 1,200-hectare site in Terengganu, the Edge Weekly reported, citing Shahrol Azral Ibrahim Halmi, CEO of the Terengganu Investment Authority (TIA).
Mubadala will invest the amount over seven years while TIA will buy the land from the state government and inject it into the joint venture, said Shahrol.
TIA has been set up and labelled as
The Malaysian fund this week said it is to sell RM5 billion of bonds guaranteed by the federal government.
Shahrol said the fund aims to raise another RM6 billion later this year by forward selling the oil royalty to be received by the oil-producing state over the next few years.
Mubadala, which manages over US$10 billion in assets, is also developing a US$600 million city in a planned economic zone in Johor. — Reuters
Saturday, May 23, 2009
Mubadala to invest US$1.8b in Malaysian property project, says paper
Monday, May 18, 2009
Malaysian State Plans 11 Billion-Ringgit Wealth Fund
By Netty Ismail
May 18 (Bloomberg) -- The Malaysian state of Terengganu is starting a sovereign wealth fund of 11 billion ringgit ($3 billion), of which 5 billion ringgit will be raised from capital markets this week.
The Terengganu Investment Authority, the first sovereign wealth fund set up by a Malaysian state, said it will manage the long-term oil revenue of the state, located on the east coast of peninsular Malaysia.
The country’s King Mizan Zainal Abidin, who is also the Terengganu sultan, proposed the fund to ensure sustainable income for the state should its oil and gas reserves run out, the fund said in an e-mailed statement today. The state is one of Malaysia’s biggest oil and gas producers.
The fund seeks to “generate long-term sustainable and recurring returns” and to promote Terengganu’s economic development, Chief Executive Officer Shahrol Halmi said in the statement.
The Terengganu Investment Authority, which was set up on Feb. 27, will team up with “well-known sovereign wealth funds” to invest in tourism, energy and agriculture projects, he said.
The fund plans to invest in “high-impact, strategic projects in Terengganu, other parts of Malaysia, and in regional and international projects that have positive spillover benefits to Terengganu,” said Shahrol, a Stanford University graduate who worked for more than 15 years at consulting firm Accenture Ltd., according to the statement.
It will seek funds from domestic and foreign capital markets, and the 5 billion ringgit it plans to raise this week will come with a Malaysian government guarantee, the fund said. The remaining 6 billion ringgit will come from future oil royalties.
Companies including Exxon Mobil Corp. produce crude oil from projects offshore Terengganu. The state is also home to Petroliam Nasional Bhd.’s Kertih refining and petrochemical complex.
May 18 (Bloomberg) -- The Malaysian state of Terengganu is starting a sovereign wealth fund of 11 billion ringgit ($3 billion), of which 5 billion ringgit will be raised from capital markets this week.
The Terengganu Investment Authority, the first sovereign wealth fund set up by a Malaysian state, said it will manage the long-term oil revenue of the state, located on the east coast of peninsular Malaysia.
The country’s King Mizan Zainal Abidin, who is also the Terengganu sultan, proposed the fund to ensure sustainable income for the state should its oil and gas reserves run out, the fund said in an e-mailed statement today. The state is one of Malaysia’s biggest oil and gas producers.
The fund seeks to “generate long-term sustainable and recurring returns” and to promote Terengganu’s economic development, Chief Executive Officer Shahrol Halmi said in the statement.
The Terengganu Investment Authority, which was set up on Feb. 27, will team up with “well-known sovereign wealth funds” to invest in tourism, energy and agriculture projects, he said.
The fund plans to invest in “high-impact, strategic projects in Terengganu, other parts of Malaysia, and in regional and international projects that have positive spillover benefits to Terengganu,” said Shahrol, a Stanford University graduate who worked for more than 15 years at consulting firm Accenture Ltd., according to the statement.
It will seek funds from domestic and foreign capital markets, and the 5 billion ringgit it plans to raise this week will come with a Malaysian government guarantee, the fund said. The remaining 6 billion ringgit will come from future oil royalties.
Companies including Exxon Mobil Corp. produce crude oil from projects offshore Terengganu. The state is also home to Petroliam Nasional Bhd.’s Kertih refining and petrochemical complex.
Tuesday, April 21, 2009
Oil-rich Terengganu is planning to establish a multibillion-dollar sovereign wealth fund
Source: 21-APR-2009 Intellasia | Straits Times
Apr 21, 2009 - 7:00:00 AM
Oil-rich Terengganu is planning to establish a multibillion-dollar sovereign wealth fund, but it is causing unease among businesspeople and government officials as Malaysia's economic crisis deepens.
The chief bugbear is that the planned RM10 billion (S$4.1 billion) fund, which is to be managed by the Terengganu Investment Authority (TIA), will be created using borrowed money and not existing capital held by the Terengganu state, said bankers and government officials.
'To turn in a profit, the fund must ensure a return higher than the cost of its borrowing, and there will be the pressure to go into risky investments to get better returns,' said a chief executive of a state-controlled bank, who asked not to be named.
A senior TIA official, who spoke on condition of anonymity, told The Straits Times that governance issues and rules that will determine how the fund will invest its money are being hammered out ahead of the planned end of the year launch.
'It (the fund) is still being cooked and we want to model (it) along the lines of Mudabala,' he said, referring to Abu Dhabi's highly reputable sovereign wealth fund.
Detractors of the proposed fund point out that the Mudabala investment model was not established on borrowed money.
The TIA is proposing to raise RM5 billion through a bond issue that will be guaranteed against future earnings the state will receive in royalties from national oil corporation Petronas for oil and gas extracted from Terengganu territory.
Another RM5 billion will be raised through a separate bond issue that will be guaranteed by the federal government.
'We are in the final stages of finalising the government guarantee and we are deciding on how to draw down on the facility,' said the TIA official.
Many analysts worry that the federal government's green light for TIA and its backing for the fund through financial guarantees could prompt other oil-producing states such as Sabah and Sarawak to demand funds of their own.
'With all the spending that the government has to undertake to stimulate the economy, funds like TIA's and others will only stretch the government's finances further,' said Jason Chong of UOB-OSK Asset Management in Kuala Lumpur.
Apr 21, 2009 - 7:00:00 AM
Oil-rich Terengganu is planning to establish a multibillion-dollar sovereign wealth fund, but it is causing unease among businesspeople and government officials as Malaysia's economic crisis deepens.
The chief bugbear is that the planned RM10 billion (S$4.1 billion) fund, which is to be managed by the Terengganu Investment Authority (TIA), will be created using borrowed money and not existing capital held by the Terengganu state, said bankers and government officials.
'To turn in a profit, the fund must ensure a return higher than the cost of its borrowing, and there will be the pressure to go into risky investments to get better returns,' said a chief executive of a state-controlled bank, who asked not to be named.
A senior TIA official, who spoke on condition of anonymity, told The Straits Times that governance issues and rules that will determine how the fund will invest its money are being hammered out ahead of the planned end of the year launch.
'It (the fund) is still being cooked and we want to model (it) along the lines of Mudabala,' he said, referring to Abu Dhabi's highly reputable sovereign wealth fund.
Detractors of the proposed fund point out that the Mudabala investment model was not established on borrowed money.
The TIA is proposing to raise RM5 billion through a bond issue that will be guaranteed against future earnings the state will receive in royalties from national oil corporation Petronas for oil and gas extracted from Terengganu territory.
Another RM5 billion will be raised through a separate bond issue that will be guaranteed by the federal government.
'We are in the final stages of finalising the government guarantee and we are deciding on how to draw down on the facility,' said the TIA official.
Many analysts worry that the federal government's green light for TIA and its backing for the fund through financial guarantees could prompt other oil-producing states such as Sabah and Sarawak to demand funds of their own.
'With all the spending that the government has to undertake to stimulate the economy, funds like TIA's and others will only stretch the government's finances further,' said Jason Chong of UOB-OSK Asset Management in Kuala Lumpur.
Sunday, April 19, 2009
Terengganu: It may not be all that bad for Najib
Abdul Ghani Hamat
The Edge 19 April, 2009
THE leadership crisis in Umno Terengganu has surfaced at the wrong time for new party president and Prime Minister Datuk Seri Najib Razak. Or has it?
Think again. With reform on his mind and PAS party polls around the corner, the timing of the “crisis” cannot be all that bad for Najib.
In fact, it could be just what the doctor ordered.
First, it gives Najib an early, perfect excuse to ring the changes in the Umno Terengganu leadership without much resistance.
Dousing the festering feud that contributed to Barisan Nasional’s (BN) inability to defend the Kuala Terengganu parliamentary seat is important. But having a progressive, pragmatic leader at the head of the state is more important.
Also, the sooner Najib straightens out the issues besotting Umno in the state, the more time he will have to rebuild public support for the party. Terengganu, an overwhelming Malay-majority state, is crucial to Umno. It cannot afford to see the state go the way of Kelantan and Kedah.
Second, PAS at its upcoming convention in June could be forced to show both its hands with respect to its ties with other Pakatan Rakyat (PR) components. This could influence political developments in Terengganu, the home state of PAS president Datuk Seri Abdul Hadi Awang and several other party bigwigs, in view of their differences with the so-called Erdogans.
The ambiguity and fuzziness characterising PAS’ position in PR due largely to these differences clearly is unsustainable. More so when Umno’s problems are no longer stealing the limelight.
At some point, PAS must come clean about its PR ties, and the time for that has arrived. People want to know if PR as an alliance is going anywhere, and if PAS’ liaison with PR is “real” or just a silly infatuation.
PAS has shared a platform with PKR and DAP on so many occasions, including in campaigning ahead of the KT by-election. Naturally, people would want to see PAS take the relationship forward.
Its nemesis Umno has swallowed the bitter pill and moved on, and so PAS must show that it is ready to move on, too. Without PAS’ full commitment to the alliance, the scope of what PR can achieve would be severely curtailed. Clearly, unless PAS leaders think and act as one, the PR structure will remain flimsy, and the country can forget about a two-coalition political system.
Alas, at the moment it’s difficult to envisage the party’s traditionalist faction, which predominates in Terengganu, sharing a dinner table with alliance partner DAP, for instance.
So what hope is there for the parties to take the relationship a step further if they can’t be expected to sink and swim together.
No doubt Najib will be looking closely at how the tussle for dominance within PAS will play out at the party’s convention in Shah Alam, as the outcome may have a significant influence on how Umno goes about growing its fortunes in Terengganu.
But whilst the timing of the “crisis” in Terengganu could be advantageous to Najib, can he be sure that the right person is picked to lead the state? He has given the two factions in Umno Terengganu one month to sort things out themselves.
Menteri Besar Datuk Ahmad Said may emerge stronger from this episode, but when the one-month grace is up, Najib may have his man ready to take charge of the state nonetheless.
Whomever he picks to lead Terengganu, Najib must understand that the state needs a chief executive more than an administrator. It needs a person who can look after its “sovereign wealth” properly and not squander it on cheap handouts and construction projects of dubious benefits.
The person must think about the state’s welfare for the long term. He must know how to create employment and raise the standard of living of a rural population and ensure a revenue stream for the state after oil runs out.
The state is rich in resources no doubt, but over the years, its people have been stood up by their leaders, including during PAS rule.
If Terengganu Investment Authority ever gets off the ground, perhaps Najib should think long and hard about keeping these politicians away from the establishment.
He may not get any objections from PAS Terengganu on this, given that its leaders are not averse to working with Umno for the sake of Malay unity. It’s a stance that has riled the Erdogans. The PAS convention in Shah Alam may just rekindle interest in the unity idea if the party is pushed to show both its hands.
So there, the “crisis” in Terengganu opens up plenty of options for Najib. It is not surprising, therefore, to find those who believe this whole episode has been cleverly stage-managed
The Edge 19 April, 2009
THE leadership crisis in Umno Terengganu has surfaced at the wrong time for new party president and Prime Minister Datuk Seri Najib Razak. Or has it?
Think again. With reform on his mind and PAS party polls around the corner, the timing of the “crisis” cannot be all that bad for Najib.
In fact, it could be just what the doctor ordered.
First, it gives Najib an early, perfect excuse to ring the changes in the Umno Terengganu leadership without much resistance.
Dousing the festering feud that contributed to Barisan Nasional’s (BN) inability to defend the Kuala Terengganu parliamentary seat is important. But having a progressive, pragmatic leader at the head of the state is more important.
Also, the sooner Najib straightens out the issues besotting Umno in the state, the more time he will have to rebuild public support for the party. Terengganu, an overwhelming Malay-majority state, is crucial to Umno. It cannot afford to see the state go the way of Kelantan and Kedah.
Second, PAS at its upcoming convention in June could be forced to show both its hands with respect to its ties with other Pakatan Rakyat (PR) components. This could influence political developments in Terengganu, the home state of PAS president Datuk Seri Abdul Hadi Awang and several other party bigwigs, in view of their differences with the so-called Erdogans.
The ambiguity and fuzziness characterising PAS’ position in PR due largely to these differences clearly is unsustainable. More so when Umno’s problems are no longer stealing the limelight.
At some point, PAS must come clean about its PR ties, and the time for that has arrived. People want to know if PR as an alliance is going anywhere, and if PAS’ liaison with PR is “real” or just a silly infatuation.
PAS has shared a platform with PKR and DAP on so many occasions, including in campaigning ahead of the KT by-election. Naturally, people would want to see PAS take the relationship forward.
Its nemesis Umno has swallowed the bitter pill and moved on, and so PAS must show that it is ready to move on, too. Without PAS’ full commitment to the alliance, the scope of what PR can achieve would be severely curtailed. Clearly, unless PAS leaders think and act as one, the PR structure will remain flimsy, and the country can forget about a two-coalition political system.
Alas, at the moment it’s difficult to envisage the party’s traditionalist faction, which predominates in Terengganu, sharing a dinner table with alliance partner DAP, for instance.
So what hope is there for the parties to take the relationship a step further if they can’t be expected to sink and swim together.
No doubt Najib will be looking closely at how the tussle for dominance within PAS will play out at the party’s convention in Shah Alam, as the outcome may have a significant influence on how Umno goes about growing its fortunes in Terengganu.
But whilst the timing of the “crisis” in Terengganu could be advantageous to Najib, can he be sure that the right person is picked to lead the state? He has given the two factions in Umno Terengganu one month to sort things out themselves.
Menteri Besar Datuk Ahmad Said may emerge stronger from this episode, but when the one-month grace is up, Najib may have his man ready to take charge of the state nonetheless.
Whomever he picks to lead Terengganu, Najib must understand that the state needs a chief executive more than an administrator. It needs a person who can look after its “sovereign wealth” properly and not squander it on cheap handouts and construction projects of dubious benefits.
The person must think about the state’s welfare for the long term. He must know how to create employment and raise the standard of living of a rural population and ensure a revenue stream for the state after oil runs out.
The state is rich in resources no doubt, but over the years, its people have been stood up by their leaders, including during PAS rule.
If Terengganu Investment Authority ever gets off the ground, perhaps Najib should think long and hard about keeping these politicians away from the establishment.
He may not get any objections from PAS Terengganu on this, given that its leaders are not averse to working with Umno for the sake of Malay unity. It’s a stance that has riled the Erdogans. The PAS convention in Shah Alam may just rekindle interest in the unity idea if the party is pushed to show both its hands.
So there, the “crisis” in Terengganu opens up plenty of options for Najib. It is not surprising, therefore, to find those who believe this whole episode has been cleverly stage-managed
Subscribe to:
Posts (Atom)
