Thesun 2008-12-18 Page20 Msias Rm2

20 œ

theSun

| THURSDAY DECEMBER 18 2008

business news Hang Seng

S&P/ASX200

TSEC

15,460.52

3,570.60

4,648.02

330.31

14.40

31.13

KLCI

STI

862.50

1,779.29

7.70

2.80

KOSPI

Nikkei

1,169.75

8,612.52

8.19

44.50

M’sia’s RM2.5b seafood export industry near collapse by Himanshu Bhatt [email protected]

SEBERANG PERAI: Malaysia’s RM2.5 billion seafood export industry is on the verge of collapse with no concrete help thus far from the government following a ban on Malaysian seafood by the European Union (EU) in June. The Malaysian Frozen Foods Processors Association (MFFPA) has raised an alarm that the industry has a lifeline of only three months left, as millions of ringgit in stocks languish in cold rooms, unable to be exported. The situation is worsened because the product cannot be sold to other countries due to different packing and logistical requirements. “The seafood exporters have reported an estimated loss in sales and production of more than RM1.5 billion to date,” said MFFPA president Ch’ng Chin Hooi. “The players can no longer withstand the losses and pressure from commercial banks,” he told a press conference at the Federation of Malaysian Manufacturers (FMM) headquarters here yesterday. Ch’ng said some 10,000 workers from the MFFPA’s 25 member operators stand to lose their jobs, alongside another 30,000 indirect workers in related services. “Many factories have started to retrench workers, if they are not already reducing working days since the ban came into force.” “To add insult to injury, the government

briefs Mercedes-Benz sees sales slowing down KUALA LUMPUR: Mercedes-Benz Malaysia Sdn Bhd foresees sales of between 10-20% less in 2009 due to the slow recovery of the market from the global economic slowdown.

has increased the electricity rate by 30%,” he added. Ch’ng said the cabinet had three months ago approved a RM500 million rescue

Its president and chief executive officer Peter Honegg, who anticipates a challenging time for the automotive industry next year, said the actual scenario the company was looking at is sales of between 10 to 20% less than in 2008. – Bernama

Motorola eyes bigger share of radio market KUALA LUMPUR: Motorola is confident of capturing a bigger share of the Asia Pacific two-way radio mar-

package through soft loans to help industry players, with priority given to MFFPA members. However, the money has yet to be given out. The Malaysian seafood industry is the country’s second largest food export earner, with Europe as its main market. But the EU has found environmental and hygiene standards in the Malaysian industry to be wanting. Ch’ng said the Malaysian government had been given the Guidelines for Export to the EU in 2005, but these were not properly implemented when EU inspectors came here in April and May 2008. He noted that the inspection team’s main concerns were fishing vessels, landing ports and agriculture farms. “The processing factories were not the main concern as most of the processing plants were audited by the EU Health Authority on an ad hoc basis,” he said. Ch’ng said a Malaysian team comprising representatives from the Health Ministry, the Fisheries Department and the MFFPA had met EU Health Authority after the ban, but failed to gain a reprieve. “The seafood export industry is still viable as there are still orders from foreign customers. What the industry needs is a financial helpline to hold the stocks and soften killing interest rates,” he said. “The point is that this industry can be saved if the government acts fast. We will be back on our feet if we can catch the 2009 summer holiday sales.”

ket with the launch of its new digital radio system called MOTOTRBO yesterday. Albert Wong, the director of distribution South and East Asia, Government and Public Safety, said as the market leader in the industry, Motorola was optimistic of achieving strong growth in the two-way radio business next year. – Bernama

Builders’ association supports open tenders KUALA LUMPUR: The implementation

KL market summary DECEMBER 17, 2008 INDICES FBMEMAS COMPOSITE INDUSTRIAL CONSUMER PRODUCT INDUSTRIAL PRODUCT CONSTRUCTION TRADING SERVICES FINANCE PROPERTIES PLANTATIONS MINING FBMSHA FBM2BRD TECHNOLOGY

CHANGE 5,633.33 862.56 2,074.47 281.48 66.71 162.29 115.97 6,637.51 508.89 3,963.47 235.07 5,862.91 3,913.86 13.28

+45.86 +7.70 +36.38 +5.51 -0.04 -0.68 +0.93 +13.46 +4.21 +50.92 -8.10 +67.52 -6.93 +0.04

TURNOVER

VALUE

338.102mil

RM544.749mil

KL shares close mixed, KLCI up KUALA LUMPUR: Share prices on Bursa Malaysia ended the day mixed amid sustained interest in select key index-linked counters, dealers said. The benchmark Kuala Lumpur Composite Index (KLCI) closed at 862.50, up 7.70 points after opening 5.52 points higher at 860.32 yesterday morning. However, the dealers said that some selling activities were seen on second boarders as well as small cap technology stocks. The Industrial Index rose 36.38 points to 2,074.47, the Finance Index increased 13.46 points to 6,637.51 and the Plantation Index added 50.92 points to 3,963.47. The FBMEmas was 45.86 points higher at 5,633.33 and the FBM30 added 54.40 points to 5,547.29 while the FBMMesdaq shed 60.92 points to 3,264.54 and the FBM2BRD fell 6.93 points to 3,913.86. The dealers said sentiment was intact amid Wall Street’s overnight rally as the United States Federal Reserve on Tuesday cut benchmark interest rates to as low as zero percent, aimed at reducing the cost of borrowings to spur economic activities. Gainers led losers by 264 to 240 while 190 counters were unchanged, 557 untraded and 31 others suspended. Turnover increased to 338.102 million shares valued at RM544.749 million from Tuesday’s close of 301.663 million shares worth RM344.707 million.– Bernama

of competitive bidding in government procurement will help to minimise corruption, according to the Master Builders Association Malaysia (MBAM). It will also minimise discretionary decision making which may affect the integrity of government procurement, the association said. MBAM president Ng Kee Leen said with competitive bidding in the tendering process, money could be saved for government projects and the benefits transferred to the government and the people. – Bernama

AmBank to expand retail network KUALA LUMPUR: AmBank (M) Bhd will continue to invest in expanding its retail banking distribution network and improving services despite the current economic slowdown. Its managing director for retail banking, Datuk Mohamed Azmi Mahmood, said the bank plans to open 10 new branches involving a cost of between RM500,000 and RM750,000 for each branch. – Bernama