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No. 4747 PP 2644/12/2009 (023092)

b Tuesday
AT BERJAYA TIMES SQUARE

April 28, 2009

: May 23
Nomination TELLING IT AS IT IS www.sun2surf.com
: May 31
Polling postal voters)
news without
Voters: 15,3
84 (including
24
inese (24.22%
), » EC bans ‘pondok panas’ pg2 » MB Khalid sues MACC for libel pg4 borders
2.68 %) » Ch
» Malays (7(2.39%) » others (0.71%)
»Indians pg2
Worth the wait
... Patience and tenacity
paid off for 17-year-old Joey
Tham and five schoolmates
from Ulu Langat who
camped 65 hours outside
Krispy Kreme’s new store
at Berjaya Times Square
in Kuala Lumpur to win
a total haul of 1,236 free
doughnuts.
The six friends endured
mosquitoes at night and
the heat during the day,
and even missed having
their baths since 5pm
Friday to zealously guard
their positions at the head
of a queue to win free
SAIFUL HIZAM MANSUR/THESUN

supplies of Krispy Kreme

doughnuts offered in
conjunction with the
inaugural opening of
the flagship store at
10am yesterday.

Joey Tham » Full story on Page 4

World steps up
battle against
deadly swine flu
WORLD health officials have stepped up the battle against
swine flu after Mexico upped the probable death toll from
the epidemic to 149 and the United States declared a
public emergency. The number of cases under observa-
tion in Mexico was more than 1,600.
Nod to foreign
control
The European Union yesterday called for urgent talks
to confront the threat as Europe’s first case emerged
in Spain. The 27-nation EU warned against non-essen- UP TO 70% FOREIGN STAKE
tial travel to areas where the virus has surfaced, while
Russia began airport checks and Poland tightened border
controls to try to hold the disease at bay.
IN INVESTMENT, ISLAMIC
Asean yesterday said regional cooperation
to deal with SARS and avian influenza BANKS, INSURANCE
have left Southeast Asia in a stronger
position to tackle an outbreak of AND TAKAFUL FIRMS
swine flu. Existing stockpiles of
around one million doses of
antivirals drugs could be used
to deal with swine flu, it said. by Tim Leonard » up to three commercial banking tional and management office in Kuala
In Malaysia, this is what newsdesk@thesundaily.com licences will be offered to world class Lumpur to improve their operating and
the government is doing: banks that can offer significant value business efficiency.
» Offshore banking institutions licensed

» Watch on farms
All 797 pig farms ordered to
report immediately to the au-
thorities any dip in the health of
the livestock. Agriculture and Agro-
based Industry Minister Datuk Noh
Omar said pig breeders should watch out for
signs of the animals coughing, sneezing, having difficulty
breathing or not wanting to eat. They should also keep a
watch on the health of their workers and detect any sign
of coughing, fever and body ache. He advised the people
not to be overly concerned as no livestock or livestock
products were imported from Mexico.
» Detect and prevent infections
Health Minister Datuk Seri Liow Tiong Lai advises the
public to “avoid” travelling to Mexico, the US and Canada,
although there are no travel restrictions.
He said Malaysia had successfully prevented Severe
Acute Respiratory Syndrome (SARS) previously and we
have the National Influenza Pandemic Preparedness Plan
to check the spread of influenza-like illness.
“It has come to the stage where the disease is spread
from human to human, thereby raising the risk,” he added.
He said pork was safe to eat because the disease was
transmitted through the air.
Veterinary Services director-general Datuk Dr Abd Aziz
Jamaluddin said Malaysia has the vaccine for swine flu
which can be used to stop the spread of the disease to
this country.
» Full reports on Page 9
P
UTRAJAYA: The government
announced yesterday a slew of
measures to liberalise the financial
sector, including allowing foreigners
to take a controlling stake in invest-
ment and Islamic banks and insurance
and Takaful firms.
Nine new licences will be issued to
foreign participation in both conventional
and Islamic banking from now to 2012.
The announcement by Prime Minister
Datuk Seri Najib Abdul Razak comes a
week after the government liberalised 27
services sub-sectors to throw open the
door for significant foreign participation
that will help bring in much-needed for-
eign investment to bolster the economy.
Najib, who is also finance minister,
said foreigners will now be allowed to
take up to 70% equity in investment banks,
Islamic, insurance companies and Taka-
ful firms, up from 49% now. However,
foreign ownership of commercial banks
will remain at 30%.
On the new banking licences to be
issued by Bank Negara, he said two will be
out this year to foreign players to establish
mega Islamic banks with paid-up capital
of at least US$1 billion.
The rest are:
» two commercial banking licences to
foreign player to bring in specialised
expertise will also be issued this year.
proposition to Malaysia in 2011.
» two family Takaful licences will be
offered this year.
Najib said priority will be given to
players who had the capacity to contrib-
ute in areas where there were gaps in the
financial system and in which there were
new areas of growth.
“Moving forward, the financial sector
will have a greater role in facilitating and
catalysing economic growth as Malaysia
transitions towards achieving developed
economy status by 2020. The financial
services sector is an integral component of
the economy, and has increased its share
in the GDP from 9.2% in 2000 to 11% in
2008,” said Najib.
“Over the recent three years, the
finance and insurance sector has expand-
ed by 8.8% a year, outpacing the growth in
the real GDP of about 6%,” he said.
Banking institutions and insurance
companies employ 140,000 workers.
Other announcements by Najib:
» Locally-incorporated foreign commer-
cial banks will be allowed to establish
four new full-fledged branches with
effect from 2010 and 10 micro-finance
branches from this year.
» From June 1, Labuan Holding Compa-
nies incorporated under the Offshore
Companies Act 1990 will be given
greater flexibility to establish an opera-
by the Labuan Offshore Financial
Services Authority (Lofsa) that meet the
predetermined criteria will be accorded
flexibility to have a physical presence
onshore from 2010.
» Offshore insurance companies licensed
by Lofsa that meet the predetermined
criteria can have a physical presence
onshore from 2011.
“This flexibility will be complemented by
a strengthened regulatory and supervisory
framework that govern these players,”
said Najib.
» Greater flexibility in the employment of
expatriates in specialist areas that can
contribute to the development of the
financial sector.
» Bank Negara will allow domestic
Islamic banks to have foreign partner-
ships who can own up to 70% equity but
they must maintain a paid-up capital of
at least US$1 billion.
» Bank Negara will also lift previous
restrictions by allowing Malaysian-
incorporated foreign insurance firms
and takaful operators to enter into
bancassurance/banctakaful arrange-
ments with local banking institutions.
» Zeti: It’s in line with financial sector
master plan – page 15