Stock Name: MAYBANK
Company Name: MALAYAN BANKING BHD
Research House: AMMB
Banking sector
Malayan Banking Bhd (Jan 21, RM8.81); RHB Capital Bhd (Jan 21, RM8.50); CIMB Banking Group Bhd (Jan 21, RM8.34); Hong Leong Bank Bhd (Jan 21, RM9.42)
Overweight on banking sector, top buys Malayan Banking Bhd, RHB Capital Bhd, CIMB Banking Group Bhd and Hong Leong Bank Bhd: Datuk Seri Idris Jala, Minister in the Prime Minister's Department and CEO of the Performance Management & Delivery Unit (Pemandu), has held a briefing to highlight the progress of the government's Economic Transformation Programme (ETP) 100 days after it was officially launched.
Pemandu highlighted that since the launch of the ETP in October, the number of private investors with serious commitments to the projects have now increased to 15 as at Jan 14, from seven as at Oct 26, 2010. The ones with private investors getting close to commitment have increased to 26 as at Jan 14 from 12 as at Oct 26, 2010.
Pemandu says projects which have been identified as part of the ETP initiatives are accorded high priority in terms of approval by government agencies.
This is also in relation to projects announced pre-ETP which have stalled largely due to bureaucratic red tape.
To a question raised by the floor as to why the approval process for the non-ETP projects is still accorded business-as-usual standard practices and why the government is not working towards harmonising these, Pemandu said this is one of the initiatives that the ETP has just begun in earnest.
Pemandu will be holding six labs from mid-February to cover standards, policies and procedures towards eventually easing the approval process for investors.
Pemandu goes through a weekly progress report on the ETP projects on every Friday, and these are subsequently forwarded to the Prime Minister's Department every Monday for an update report. This is clearly part of Jala's vision that the ETP has to be a programme, not a plan, with clearly defined actions, targets and timelines.
Following our upgrade of the banking sector on Jan 13 to 'overweight' from 'neutral', premised mainly on positive spillover multiplier effects on the banking sector arising from the ETP, we gather that the market continues to have mixed feelings about the successful execution of the ETP.
However, we are encouraged by the latest briefing. We are more positive as: (i) there are indications that the private investments are real, with one large one by Shell in particular expected to be invested in 2011; (ii) Pemandu will be undertaking initiatives to harmonise the approval process for investments in the country. This is new, and we feel it will be positive eventually for private investment into the country; and (iii) we are also positive that there is close monitoring of the ETP projects, which indicates less risks to execution of these ETP plans.
We remain 'overweight' on the Banking sector, with our top buys Maybank, RHB Cap, CIMB and HLBB. ' AmResearch, Jan 21
This article appeared in The Edge Financial Daily, January 24, 2011.
Company Name: MALAYAN BANKING BHD
Research House: AMMB
Banking sector
Malayan Banking Bhd (Jan 21, RM8.81); RHB Capital Bhd (Jan 21, RM8.50); CIMB Banking Group Bhd (Jan 21, RM8.34); Hong Leong Bank Bhd (Jan 21, RM9.42)
Overweight on banking sector, top buys Malayan Banking Bhd, RHB Capital Bhd, CIMB Banking Group Bhd and Hong Leong Bank Bhd: Datuk Seri Idris Jala, Minister in the Prime Minister's Department and CEO of the Performance Management & Delivery Unit (Pemandu), has held a briefing to highlight the progress of the government's Economic Transformation Programme (ETP) 100 days after it was officially launched.
Pemandu highlighted that since the launch of the ETP in October, the number of private investors with serious commitments to the projects have now increased to 15 as at Jan 14, from seven as at Oct 26, 2010. The ones with private investors getting close to commitment have increased to 26 as at Jan 14 from 12 as at Oct 26, 2010.
Pemandu says projects which have been identified as part of the ETP initiatives are accorded high priority in terms of approval by government agencies.
This is also in relation to projects announced pre-ETP which have stalled largely due to bureaucratic red tape.
To a question raised by the floor as to why the approval process for the non-ETP projects is still accorded business-as-usual standard practices and why the government is not working towards harmonising these, Pemandu said this is one of the initiatives that the ETP has just begun in earnest.
Pemandu will be holding six labs from mid-February to cover standards, policies and procedures towards eventually easing the approval process for investors.
Pemandu goes through a weekly progress report on the ETP projects on every Friday, and these are subsequently forwarded to the Prime Minister's Department every Monday for an update report. This is clearly part of Jala's vision that the ETP has to be a programme, not a plan, with clearly defined actions, targets and timelines.
Following our upgrade of the banking sector on Jan 13 to 'overweight' from 'neutral', premised mainly on positive spillover multiplier effects on the banking sector arising from the ETP, we gather that the market continues to have mixed feelings about the successful execution of the ETP.
However, we are encouraged by the latest briefing. We are more positive as: (i) there are indications that the private investments are real, with one large one by Shell in particular expected to be invested in 2011; (ii) Pemandu will be undertaking initiatives to harmonise the approval process for investments in the country. This is new, and we feel it will be positive eventually for private investment into the country; and (iii) we are also positive that there is close monitoring of the ETP projects, which indicates less risks to execution of these ETP plans.
We remain 'overweight' on the Banking sector, with our top buys Maybank, RHB Cap, CIMB and HLBB. ' AmResearch, Jan 21
This article appeared in The Edge Financial Daily, January 24, 2011.
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