Pakistan Still Attracts FDIs Despite Security Concerns

From Hafizah Kamaruddin

LAHORE, Nov 8 (Bernama) -- Despite its security concerns, Pakistan's cheap manpower and utilities seem to have the edge in luring foreign direct investments including Malaysian firms especially to its first integrated industrial estate -- the Sundar Industrial Estate here.

More than 20 per cent of the 674 hectare industrial lots have been taken up by multinational companies, especially from Europe, the chief executive officer of the Punjab Industrial Estates Development and Management Company (PIEDMC), Sabir P Chohan, said.

He said Tetra Pak International, the Swedish packaging company which was looking for a site for its regional centre, chose the industrial estate due to the two prevailing competitive factors.

The company is investing 400 million euros in a 20-hectare plot at the industrial estate which means "beautiful" in the Sanskrit language, he told a group of visiting Malaysian journalists on Saturday.

The other MNCs which have established their factories at the industrial estate are Pepsi Cola International Ltd, which set up its food processing and snacks factory for export to Afghanistan, Japan's Kansai Paint, LG manufacturing three wheeler motorcyles, Unilever, Haier and Stiefle -- a GlaxoSmithKline company manufacturing pharamceutical products.

Chohan said that currently, 60 industries in the area had started production including Kansai, Pepsi, LG and Haier, while 195 are under construction and 120 in the stage of approval and designing.

He said the local industries mainly comprise small and medium industries.

The industrial estate has its own security and a commercial area that includes a hotel, a 390 megawatt power plant which will be established along the lines of Malaysia's Independent Power Producers (IPPs)and a combine-effluent treatment plant.

"We hope to achieve a major part of the industralisation of Sundar by 2012 given the rapid pace in which Sundar has attracted investments of approximately 8 billion rupees (about US$96.14 million), created employment opportunities for nearly 15,000 workers and generated exports of between US$25-US$30 million," he said.

Chohan said with the increased demand for lots at the industrial estate, PIEDMC was expanding it with a second phase.

He expressed the hope that Malaysian companies would invest in the country's manufacturing sector which has a big consumer market as well as for export to the Middle East, Central Asia and also to India.

"Pakistan is also looking to the establishment of an industrial park in Punjab through a joint venture between the Government of Punjab and interssted Malaysian entrepreneurs or companies," he said.

He said PIEDMC will also be building three more industrial estates along the Lahore-Salkot Highway as well as upgrade existing industrial estates.

He said many of the Malaysian companies such as the Maxcorp Group of Companies have been investing in Pakistan especially in the province of Punjab in the construction sector.

The company is very actively involved in a number of projects, mostly high end housing projects.

Maxcorp was reported to have entered Pakistan in 1999 and won the contract to develop the US$55 million Royal Palm Golf Course in Lahore, and since then, it has won many other projects such as the development of the DA Country & Golf Club in Karachi, the Jacaranda Club for Defence Housing Islamabad and Mangla View Resort.

"Tenaga National Bhd (TNB) is also involved in the power sector. They own and operate a 235MW power plant," said Sabir.

Bandar Raya Developments Bhd recently completed a mega golf and entertainment complex and is very much involved in housing projects with Defense Housing Authority Lahore including commercial properties, golf resorts and other related projects spread over a 160-hectare area (400 acres).

Arash Venture SDHB, a Malaysian company, is involved in a mega housing project to build 4,500 apartments with DHA Karachi, while Petronas Carigali Pakistan Ltd is involved in oil exploration.

A Malaysian property firm, RENEXUS, has indicated that they will undertake the development of 50,000 low and low medium cost housing projects in the various urban centres.

Chohan said that the Chief Minister of Punjab, Mian Muhammad Shahbaz Sharif has invited them to undertake the construction of housing for the low and middle income groups to meet the shortage of housing.

-- BERNAMA

source http://www.bernama.com/bernama/v5/newsbusiness.php?id=453477

Ringgit expected to continue rally

The ringgit is expected to be steady against the US dollar next week, supported by commercial buying, dealers said.

They said the expectation that Asian currencies would continue to rally against the greenback also provides some support to the local unit.

According to a dealer, the greenback is expected to soften in overseas markets on speculation that the US Federal Reserve would hold interest rates near zero, well into next year after the unemployment rate in the country exceeded 10 per cent for the first time since 1983.

On Friday, the US government reported that American employers cut a deeper-than-expected, 190,000 jobs in October.

During the week just ended, the ringgit started the week on a lower note as the US dollar strengthened against other major currencies.

However, the local currency managed to end the week on a higher note in line with the rally among regional currencies.

On a week-to-week basis, the ringgit strengthened against the greenback at 3.3980/4020 compared with the 3.4100/4150 recorded last Friday.

Against the Singapore dollar, the local unit was little changed at 2.4392/4455 from 2.4397/4457 last week but was lower against the Japanese yen at 3.7506/7570 from 3.7481/7560 previously.

The ringgit also weakened against the British pound to 5.6471/6548 from 5.6405/6505 last week and was lower against the euro at 5.0617/0609 from 5.0563/0644 previously. -- Bernama

KL shares likely to extend uptrend

Malaysian shares are expected to extend the uptrend next week, with investors likely to react positively to an improvement in consumer confidence amid recovery signs in the global economy, dealers said.

They said this will provide a catalyst to the benchmark FBM KLCI to further gain and hover between the 1,260 and 1,270 levels for the week.

An analyst said investors are also looking forward to the upcoming listing of Maxis Bhd, which is expected to boost the FBM KLCI's performance.

He said institutional investors locally and overseas should take the opportunity to gain direct exposure to a highly-liquid mobile telco player.
He said the local bourse next week is also expected to track the regional and Wall Street's performance for a cue.

On a Friday-to-Friday basis, the FBM KLCI increased 18 points to 1,260.76, the FBM Emas Index advanced 86 points to 8,422.83, the FBM Top 100 Index was 79 points higher at 8,210.11, the FBM70 however, decreased 40 points to 8,090.28 and the FBM ACE Index gained 382 points to 4,687.65.

The Finance Index surged 241 points to 10,776.29, the Plantation Index went down 29 points to 6,058.91 and the Industrial Index rose 32 points to 2,699.87.

Turnover for the week increased to 6.577 billion shares valued at RM6.715 billion from the 4.585 billion shares worth RM5.979 billion last week.

The Main Market volume went up to 5.354 billion shares worth RM6.339 billion from last Friday's 3.807 billion shares valued at RM5.72 billion.

The volume of call warrants, however, fell to 100.850 billion shares valued at RM19.928 million from 115.661 million shares worth RM25.167 million previously.

The ACE Market volume advanced to 1.009 billion shares worth RM285.710 million from 390.248 million shares valued at RM88.246 million previously. -- Bernama

source http://www.btimes.com.my/articles/20091107113829/Article/