WHAT IS A GDP

The GDP data is compiled from thousands of surveys completed by businesses

Continue reading the main story

UK Economy

• Economy tracker: GDP
• Calculate your inflation rate
• What is inflation?
• What is quantitative easing?

GDP, or gross domestic product, is arguably the most important of all economic statistics. It is a measure of all the activity in the UK economy in a particular period, and is published on a quarterly basis.

If the quarterly GDP measure has increased compared with the previous three months, the economy is growing. If the figure is negative, the economy is contracting.

The UK's GDP figures are produced on a rolling monthly basis for each quarter.

Revisions, not mistakes

A first - or preliminary - estimate is produced in the first month after a quarter, a second in month two, and a further revision in the Quarterly National Accounts.

There are later revisions when we do the annual publication of the UK National Accounts - the so-called Blue Book.

Continue reading the main story

“Start Quote

[Is the] preliminary estimate of GDP really - as some have claimed - no more than a 'guess'?”

Revisions to the GDP figures do not usually mean that we have found a mistake - mistakes are actually rare - but rather that we have received new information.

GDP is compiled from thousands of survey returns completed by UK businesses. The main sources used for the preliminary estimate are ONS surveys of manufacturing and service industries.

Information on sales is collected from 6,000 companies in manufacturing, 25,000 service sector firms, 5,000 retailers and 10,000 companies in the construction sector.

Data are also collected from government departments covering activities such as agriculture, energy, health and education. For the second and third estimates, increasing amounts of data become available from other surveys and administrative sources.

There is an urge to define the economy as in or out of recession, Mr Grice says

Early 'guess'?

The preliminary estimate of GDP comes only 25 days after the end of the quarter, it's the quickest publication of a preliminary estimate in any major economy.

Government and businesses want information fast, so ONS produces its early estimates of GDP based on partial information before all the data that will eventually be available is in.

Does that mean that the preliminary estimate of GDP is really - as some have, indeed, claimed - no more than a 'guess'?

Well, no it doesn't. In fact, the preliminary estimates have proven to be remarkably accurate.

Continue reading the main story

“Start Quote

In recent years, the economy appears to have been on a bumpy plateau”

The figure produced in the third month after the end of a quarter - in the Quarterly National Accounts - uses more of the available data. Yet the revision between the first and third monthly estimates is typically only one or two tenths of one per cent.

Nor is it true, as some commentators allege, that the first estimate is biased downwards - that they generally underestimate the strength of the economy and will be revised upwards as later estimates emerge.

In fact, the average revision since the start of 2006 between the first figure and the third month has been minus 0.01%. So revisions have generally been very slightly downwards, albeit by a figure so close to zero it makes no difference.

This means that there would be no benefit in terms of quality, if, as some suggest, we were to delay the production of the preliminary estimate. We'd be losing timeliness but for no gain in quality.

It's like being able to accurately predict the outcome of an election after only the first 20 or so seats declared.

'Bumpy plateau'

One of the reasons the preliminary GDP estimates, and any later revisions, attract so much attention is the urge to define the economy as in or out of recession: especially when the media is speculating about the possibility of an unprecedented so-called triple-dip recession.

Recession is often defined as two consecutive quarters of negative growth - or economic contraction. Yet when growth is close to flat, the difference between, say, estimated growth of 0.1% (no recession on the popular convention) and -0.1% (one quarter contributing to a recession on the same convention) is actually within the known statistical margin of error.

In fact, ONS does not attempt to characterise the economy as in or out of recession. We see no statistical or economic basis for this.

We recommend looking at the path of the economy over a period of time. Overall, in recent years, the economy appears to have been on a bumpy plateau, with an upward trend but at well below historic growth rates.

The latest quarterly estimate adds to the story but movements in one quarter, upwards or downwards, need to be seen in the longer context.

The opinions expressed are those of the author and are not held by the BBC unless specifically stated. The material is for general information only and does not constitute investment, tax, legal or other form of advice.

Understanding China Market

USA Today
9 most popular USA brands sold in China
Mike Sauter, 24/7 Wall St.6:01 a.m. EDT May 18, 2013

By 2030, roughly two-thirds of the world's middle class will be in the Asia Pacific region, largely in China, according to a report by Ernst & Young. Currently at around 150 million people, the Chinese middle class is expected to reach 1 billion.

Representing a $250 billion market for American companies today, according to estimates of the U.S.-China Business Council, iconic and newly forged brands alike are looking at enormous opportunity. Some of the nation's biggest brands are already Chinese market leaders in their particular segments. Apple sells more tablets than any competitor in China and Gillette more razors than any other brand. While some of these companies are facing increased competition internationally and from China-based firms, others appear to be pulling away from the pack.

Because China is not an open market, international companies cannot compete in some sectors. According to the U.S.-China Business Council, the Chinese government currently imposes restrictions on about 100 different sectors in both manufacturing and service industries, including much of the agriculture and food production, cloud computing, financial services, petrochemicals and health insurance, among others.

In the sectors that remain more open, companies can strengthen their brand and move ahead of their closest competitors globally. One example of a company capitalizing on its leading position in China is Yum! Brands. The fast-food company is behind global competitors like McDonald's, which had roughly double Yum's worldwide sales in 2012. Nevertheless, Yum! currently has a very strong foothold in China. Its leading chain, KFC, has over 4,200 locations in the country, more than double that of McDonald's, its closest competitor. What's more, the company, despite setbacks, is growing its presence significantly there.

No doubt, the companies that entered the Chinese market planned their foray carefully. But it's also clear that many managed to capitalize on their domestic and international brand dominance outside of China. Companies such as Starbucks, Apple, Nike, and Coca-Cola have thrived in the country — just as they do all over the world. Whether the companies can continue to leverage that value against up-and-coming Chinese brands remains to be seen. Here are the most popular American brands in China today:

1. General Motors:
Auto manufacturer has 14.7% market share, competes against Toyota, Volkswagen
GM has had the largest market share in China of any foreign auto manufacturer going back nearly a decade. The company has access to the Chinese auto market primarily through multiple joint ventures. One of these is Shanghai GM, co-owned with Shanghai Automotive Industry Corp. (SAIC). The venture, 50% owned by GM, sells Chevrolet, Buick, and Cadillac models. According to GM China, the company and its partners sold a total of more than 2.8 million cars in 2012 vs. the 2.6 million cars GM sold in the U.S. last year. Recently, GM announced it was building a $1.3 billion Cadillac plant in China to boost luxury sales.

2. Apple:
PC and gadget maker has 83% market share, competes against Samsung, Microsoft
The maker of iPads and iPhones dominates the tablet market in the world's most populous country. Umeng Analytics Platform reported that in the last quarter of 2012, Apple's iPad and iPad mini accounted for 83% of all tablet sales. Several of Apple's major suppliers operate in China, including Foxconn, which has been criticized for years for its poor working conditions. Developments in the Chinese operations of the company's suppliers are often used as fodder for speculation about the timing of Apple product releases. Most recently, plans by Apple supplier Pegatron to ramp up hiring in China by 40% have fueled rumors about a low-cost iPhone.

3. Nike:
Shoe and sportswear apparel maker has 12.1% market share, competes against Adidas, Reebok
At the end of 2012, Nike still had the largest sportswear market share of any company in China, somewhat of a loose term at 12.1%. But recently, Germany's Adidas has also emerged as a major player in China, picking up market share despite the efforts of Chinese brands such as Li-Ning — which recently signed NBA star Dwyane Wade as a representative. Nike's sales and bottom line have benefitted from its popularity in China. In fiscal 2012, Nike's revenue and earnings in its Greater China segment rose by 23% and 17%, respectively, from the year before, totaling over $2.5 billion and $900 million, respectively. Nike has also had to deal with the differences and problems of operating in China. Michael Jordan, who partners with Nike to market its Jordan Brand sneakers, has accused Chinese company Qiaodan Sports Co. of using his name without his permission.

4. Starbucks:
Coffee producer and retailer has 61% market share, competes against McDonald's, Pacific Coffee
The world's largest coffee retailer opened its first store in mainland China in Beijing in 1998. At the last annual shareholders meeting, according to the China Post, the company has over 800 locations in nearly 60 cities in the country. In the release of the company's fiscal 2012 report, CEO Howard Schultz said, "It's no doubt that one day China will become our second-largest market after the U.S. and it's possible that, over many years, potentially the largest one." Starbucks plans to more than double its headcount in the Asia Pacific region as a whole the next five years to more than 40,000. According to the China Post, however, Starbucks' presence has diminished somewhat, and Chinese companies like Pacific Coffee are setting their sights on the No. 1 coffee retailer spot.

5. Microsoft Windows:
The PC software maker has 91% market share, competes against Canonical (Kylin), Apple, Google
Microsoft has a commanding market share in desktop operating systems in China, according to NetMarketshare. However, the company may face competition in the future, threatening its massive lead in software sales. The Chinese government has worked on an operating system with software firm Canonical. The new OS, called Kylin, was released in April. The BBC noted that the move is regarded as "an attempt by China to wean its IT sector off Western software in favor of more home-grown alternatives." Microsoft has pushed its Surface tablet hard in China, offering it there even before the U.S. However, the company has been criticized for not providing a two-year warranty for the tablet.

6. KFC:
Fast-food chain has dominant market share with 4,260 stores, competes against McDonald's, Subway, Wendy's
the Yum! Brands-owned Kentucky Fried Chicken chain of fast-food restaurants is by far the largest fast-food company in China. Last year, Yum! opened 560 new KFC restaurants there. It plans on opening another 700 restaurants in the coming year to add to the 4,260 KFC stores it had at the end of the fiscal year. Even without the new stores it plans to add, KFC already has more than double the amount of stores of its closest competitor, McDonald's, which has roughly 2,000 stores, according to the Guardian. Aside from the 560 KFCs, most of the remaining stores opening were Pizza Huts. According to Yum!, the China market accounted for 42% of its KFC segment's profit in 2012. The company suffered a setback recently after Chinese food regulators launched an investigation into its poultry supply following media allegations of excessive use of antibiotics and hormones.

7. Gillette:
Shaver and personal products producer has 70% market share (worldwide), competes against Schick
Gillette entered China in 1992, when it was its own company, by joining forces with the Shanghai Razor Blade Factory. Currently, Gillette holds a 70% market share worldwide in men's grooming, as 800 million people use its products each day. Gillette is just one of the products made by Procter & Gamble that dominate the Chinese market place, with other market leaders that include Safeguard, Olay, Pampers and Tide. Between 2002 and 2012, P&G's net sales in China grew by an average 17% annually. The company earned approximately $2 billion in revenue from China in 2012. With Gillette way ahead worldwide, competitors are looking to narrow the gap. Energizer-owned Schick has recently teamed up with Unilever-owned Axe to create Axe razors for the Chinese market.

8. Coca-Cola:
Soft drink producer has 16.6% market share, competes against Pepsi
Euromonitor International says market leader Coca-Cola's soft-drink market share in China was 16.6% in 2012 vs. rival PepsiCo with 5.1% share in second place. In the first quarter of 2013, Coca-Cola, which includes Coke, Sprite and Fanta, reported that volume sales in the country rose by a mere 1% compared to the same period last year. This weakness, blamed by a slowdown in China's economy, is expected to continue. "As we look ahead to the next six months, it is reasonable to expect that China's ongoing economic slowdown may have a short-term effect on our industry and on our business," CEO Muhtar Kent said on the most recent company earnings report call with investors and analysts. In May, Coca-Cola announced plans to invest an additional $4 billion expanding its footprint in China. The company has 42 plants around the country and employs approximately 50,000 workers. A Coca-Cola executive in China, Bai Changbo, told Xinhua news agency that the average person in China drinks 39 bottles of Coke a year, well below the 400 bottles annually consumed on average by Americans.

9. Intel:
Semiconductor manufacturer has 85.2% market share, competes against Advanced Micro Devices, Samsung
As of the first quarter of 2013, Intel had a whopping 85.2% market share of PC semiconductor chips globally. Lenovo, which runs on Intel chips, currently has a nearly 40% market share in China for PCs. Lenovo accounted for 11% of Intel's revenue in 2012. Also, 18% of Intel's revenue came from Hewlett-Packard and 14% from Dell, both of which have a sizable presence in China's PC market. However, Intel could be having problems in the future as more people move away from personal computers in favor of smartphones and tablets. Of all semiconductor sales, which includes those used for tablets and smartphones, Intel had a worldwide leading market share of 15.7% compared to Samsung's 10.1%. But Samsung's revenue rose 6.7%, compared to Intel's 2.4% decline.

CANADA MANUFACTURING AND BRITISH MANUFACTURING COMPARED

Canada Creates Manufacturing Jobs

By Martin Murray, About.com GuideJune 15, 2012

As British manufacturing slumps, the factories in Canada are busier than ever, according to Statistics Canada, as almost 115,000 manufacturing jobs over the past six months, the most over any similar period on record. This puts Canada on top of the top 34 richest nations in the world. So how does a country that has high wages, low productivity, and a strong currency, create more jobs than Germany, USA, Japan, and every other developed nation?

Many economists believe that Canadian manufacturers are concentrating on the local market rather than exports due to the strong value of the Canadian Dollar. Another sign of the strength of the manufacturing sector is the new PMI figure which has now reached 54.7 for May, up from 53.3 in April. The PMI is now at its highest level since September 2011. As far as orders, the numbers were also up in May, to the highest level in five months. 

British Manufacturing Declines

The manufacturing sector in the UK is suffering according to the latest figures from the government's Office for National Statistics. Economists were expecting an increase in April's figures and an overall half percent increase since the beginning of the year. However, the actual figures were disappointing with April's figures falling 0.7 percent, which means a 0.3 percent decline for the year.

Economists are predicting a slower second quarter for British manufacturing due to extra public holidays due to Jubilee celebrations, the summer Olympics and the weakness in the economies of other European nations.

Not all manufacturing sectors saw a decline in April; the transport equipment and electronics sector posted the highest increases in manufacturing output. In total, seven manufacturing sectors fell with six managing an increase. 

Of Malaysia's Fiscal Control

Malaysia's Lack of Fiscal Self-Control KUALA LUMPUR, May 10 — Malaysia’s lack of fiscal self-control could push up its borrowing costs and limit its ability to respond to a global economic crisis, said the former chief of one of Asia’s top economic think tanks. Prof Datuk Mohd Ariff Abdul Kareem, who formerly headed the Malaysian Institute of Economic Research (MIER) and is now with the Global University of Islamic Finance, said there were signs the country’s credit ratings were under pressure, and without a budget surplus, Malaysia could find itself short of options during times of crisis. He also noted that the country has grown accustomed to debt, and reported budget deficits in 47 years but surpluses in only seven. “Malaysia lacks fiscal discipline,” said Mohd Ariff at the launch of an economic report by the United Nations Economic and Social Commission for Asia and the Pacific (UN Escap). “It (Malaysia) is so used to having fiscal deficits. If there is a global crisis, Malaysia is not equipped to handle it. There is no space. If there is a surplus, there is a large space.” He said that part of the problem was that the government’s operational expenditure was “over the roof”. “The government needs to raise tax revenue and reign in expenditure,” he said. “There are already signs the country’s credit ratings are under pressure.” A drop in Malaysia’s sovereign grade by credit ratings agencies would make it more expensive for the country to raise money. Mohd Ariff said, however, that the country was not on the verge of bankruptcy although its debt-to-GDP ratio of nearly 54 per cent was just under its 55 per cent limit. “The debt is largely domestic and less vulnerable to external shocks,” he said. He warned, however, that the ratio could shoot up to 100 per cent by 2020 if present overspending is not reversed. The Najib administration had pledged to trim the chronic federal budget deficit as part of fiscal reforms to make the country more competitive. The Budget deficit was cut from seven per cent in 2009 to five per cent last year. The government aims to reduce the deficit further, to 4.7 per cent this year. UN Escap said today that Malaysia is looking at slower growth as regional economies take a hit from the deterioration of the global economic environment, particularly in Europe. It added that the world was in the second stage of the global financial crisis, with a sharp deterioration in the economic conditions largely due to the euro zone debt crisis and uncertain US economy. The commission estimated that a sovereign debt default in Europe or the breakup of the euro zone monetary union would result in a new world crisis that could lead to a total export loss of US$390 billion over 2012-2013 and reduce Asia-Pacific growth by 1.3 per cent. The agency projected a growth rate of 4.5 per cent for Malaysia this year, compared to 5.1 per cent last year and 7.2 per cent in 2010.

INVESTMENT MARKET

Australia is one of my favorite "go to" markets for investors who want to "globalize" their portfolio. It's a safe and stable economy with a lot of potential.

Better yet... it is largely removed from the debt worries plaguing the U.S. and European markets.

But with problems this big, it's hard not to get sucked into the turmoil.

In November 2011... Australia cut its interest rates. This relatively small adjustment sent ripples through the global economy.

That might not sound like big news... Major economies around the world have been slashing rates for the past four years. But this is different. Australia was the first developed economy to raise its interest rates after the global financial crisis in 2008 and 2009.

And it continued to raise rates through November 2010, when it made its last move, bumping rates from 4.5% to 4.75%.

But on Nov. 1, 2011, Australia trimmed rates back to 4.5%. It was the first cut in 2 ½ years.

The reason? Europe's debt crisis was affecting trade with Asia. Bloomberg reported that China and South Korea were exporting less because of European and U.S. economic woes.

And China is a huge market for Australia.

You are probably wondering why you should care. I have two words for you: resource and opportunity.

What this rate cut meant for investors was this: more exports for Australian companies and more profits for their bottom line.

The resource sector is strong in Australia.

In fact, Australia is going through a mining boom. In late October 2011, BIS Shrapnel said in its report "Mining in Australia 2011 to 2026" that investment in Australian mining could reach $85.7 billion by 2015 or 2016.

In 2011 the estimated investment figures top out at only $48.5 billion, meaning the industry could see growth of nearly 20% a year for the next four years.

When interest rates are cut, the value of the underlying currency drops. After the announcement on November 1, the Australian dollar fell 0.4% overnight. That might not sound like much, but when you're talking about millions of dollars' worth of exports, this difference can add up quickly.

For example, if a buyer wanted to buy $1 million in iron ore, he would pay $4,000 less after rates were cut.

No wonder 80% of the investment capital in Australia's resource projects comes from outside the country. Everyone wants a piece of this pie.

Australia isn't the only fish in the pond, though... Indonesia, Turkey, Brazil and a host of other export countries are all trying to bolster exports. Australia's rate cuts could be justified by needing to stay competitive in the resources sector.

The growth expectations and stable government and economy make Australia very attractive.

And the best opportunities may just be in the smaller companies -- those where $4,000 makes a big difference. The junior mining sector will be a big place for investors over the next three or four years.

JUMEX, or junior mining and exploration companies, can move quickly.

One company worth looking at is Independence Group (IGO:ASX). It is a nickel producer with the Long Nickel Mine in Kambalda, Western Australia. It also owns stakes in six joint ventures across Australia. Plus, it is exploring in five 100%-owned mines.

The company's looking for gold and base metals... and prospects are good.

IGO also has made some strategic acquisitions that have bought it stakes in other joint ventures. Plus, it has strong cash flow thanks to the facts it is actually producing metal... not just searching for it.

These points are key for any investor looking to take a position in a junior mining company. A producing company is almost always safer (from an investment standpoint) than a small exploration company.

Reserve estimates for its exploration projects keep growing, too. Its Tropicana joint venture boosted gold reserves from 5.56 million ounces to 6.61 million ounces. IGO's stake is for 1.98 million ounces of those deposits.

Australia is a hotbed of mining projects, and the interest rate haircut will make exporting cheaper. For junior mining companies, this is great news. Investors could have a field day.

Keep in mind, some of these small miners are great takeover candidates, as well.

If you're looking to take advantage of the Australian mining boom and its role in the currency wars, now's the time to do it. Small-cap companies could offer you a great advantage in this industry.

Happy Investing,

Sara

MANUFACTURING-THE ENGINE OF GROWTH

MIDA: Manufacturing sector still growth driver for Malaysia

Wednesday, 22 February 2012 10:10 Farah Saad 0 Comments

The manufacturing sector is expected to remain a "significant" contributor" to the growth of the country’s economy, according to the Malaysian Investment Development Authority (MIDA).

In its report on Malaysia’s investment performance for 2011 released yesterday, MIDA said a total of 846 manufacturing projects, valued at RM56.1 billion, were approved, showing an increase of 19% from RM47.2 in 2010.

"Foreign and domestic investors continue to respond positively to the government’s initiatives to invest in new growth areas and emerging technologies, high value-added industries, high technology and capital intensive industries and research and development activities," Minister of International Trade and Industry Datuk Seri Mustapa Mohamed said at a media conference in Kuala Lumpur yesterday.

The approved amount accounted for almost 38% of the total RM148.6 billion in approved projects. It exceeded by RM28.6 billion, or 104%, of the average annual investment target of RM27.5 billion set in the Third Industrial Master Plan, 2006-2020.

Foreign investments in projects approved in 2011 amounted to RM34.2 billion (61%) compared to RM29.1 billion (39%) in 2010.

The majority of the projects approved in 2011 were new projects (511 projects) with investments of RM33.1 billion (59%).

In 2011, the electrical and electronic (E&E) industry remained the leading industry in terms of the number of new projects approved (34%), followed by basic metal products, and chemicals and chemical products. Projects approved in 2011 are expected to generate a total of 100,533 employment opportunities, with 42,688 of those jobs in the E&E industry.

Japan, South Korea, the US, Singapore and Saudi Arabia were the five leading sources of foreign investment in manufacturing.

Japan invested RM10.1 million in 77 projects, mainly in the E&E industry.

Meanwhile, Mustapa said the solar panel manufacturing sector was experiencing sluggishness due to the drop in solar photovoltaic panel prices in the global market and access capacity.

"Some companies have approached MIDA and have asked to put their projects on hold," he said.

Germany’s Robert Bosch has postponed its plans to build a solar plant in Malaysia due to pressure on costs in the sector.

Although the company has delayed its project, Mustapa said the company has "remained committed" to setting up its plant.

In line with a call from the government for domestic investors to step up to the plate under the Economic Transformation Programme, domestic investments approved in the manufacturing sector increased by 21% to RM21.9 billion, from RM18.1 billion in 2010.

DOMESTIC MARKET AS THE LAUNCHING PAD

Saturday December 31, 2011

Ability to win out there

BY DATUK SERI IDRIS JALA

Local companies must use the domestic market as a launching pad and look beyond our shores. 

WHILE on vacation in Perth some months ago, I went fishing with my nephew. It was a quiet, beautiful beach, but we had no luck in catching fish! Then, my nephew saw an Australian fishing round the bend, and he was reeling in fish after fish. My nephew took his rod and walked over to him. He stood next to the guy, put in the bait and cast his line into the water. In just minutes, his line was entangled with the Aussie's.

Naturally, my nephew was embarrassed and totally apologetic. As he apologised, the gentleman looked him in the eye and said, “It's a big beach, mate!”

The point is exactly that. The world is a very big beach. It is a huge global market out there. So, when we start quarrelling among ourselves about the small domestic market, we have a problem. We are completely missing the point.

Malaysian companies must use the domestic market as a launching pad and then look beyond our shores. The local market is only the starting point. Our future lies in our ability to win out there. That cannot happen until and unless competitiveness truly exists among Malaysian entrepreneurs.

To my mind, this is the new dawn which we must work towards. Malaysia can do it but we must not get bogged down in arguing about the domestic market.

Building strong brands

We must look forward to a time when Malaysian companies can say that we have produced a particular mobile phone or that we own 60% market share for LED televisions. Today, these products are made in South Korea. We don't have strong global brands. Why? Could it be because Malaysians are not “kiasu” enough? Or maybe, Malaysians are not hungry enough.

Look around. There are many stories of billion-dollar companies that began as small businesses. Look at Samsung and LG. Both the South Korean corporations started small in their local market. Today, Samsung is one of the biggest global brands in mobile devices, and LG is a household name.

With the Economic Transformation Programme (ETP), we have set out to create a competitive environment. We announced six reform initiatives in July this year, and are working towards implementing the lab recommendations.

In the recent Budget, the Prime Minister announced the liberalisation of 17 services sub-sectors in phases in 2012. We are also open to foreign equity participation of up to 100% in selected sub-sectors. In addition, come January 2012, the Competition Law will be implemented.

These structural reform initiatives complement our focus areas the 12 National Key Economic Areas. We need both focus and competitiveness to transform Malaysia into a competitive high-income nation.

Successful countries that have bred global brands have gone through this path. How did South Korea transform itself? There is no clarity and it probably happened over a period of time. But the pattern was clear it was very focused.

Take Singapore. It wants to be a logistics and trading hub. I remember Lee Kuan Yew giving a speech at the invitation of the International Air Transport Association. He was asked about Singapore Airlines. He said he did not care whether or not Singapore Airlines succeeded. He cared more that Changi succeeded.

If Singapore Airlines cannot be competitive, Singapore will have to open its doors to other airlines. To Lee, it came down to the fact that Singapore Airlines must be competitive; the goal was to make Singapore a logistics hub, not whether Singapore Airlines succeeded.

Be focused, competitive

So, we must wake up to this and if we look at other countries, the pattern is clear: It is all about being focused and competitive.

What we are seeing now is a new dawn for our country and Malaysian entrepreneurs. As a country, we are more focused and becoming more competitive. We are attracting more foreign investments. From January to September this year, our foreign direct investments rose 42% to RM26.4bil from RM18.6bil in the previous corresponding period.

Our economic rankings globally have also improved. In the World Economic Forum Global Competitive Report, 2011-2012, our ranking improved to 21st from 26th among 183 economies. Malaysia was the sixth most competitive country among Asia-Pacific economies and second in Asean.

This is a good start for our 10-year ETP roadmap. The time is right for Malaysian entrepreneurs to leverage the competitive environment, grow their businesses locally and around the globe. Now is the time to move beyond the Malaysian shores.

As the Australian on the beach aptly put it, “The beach is very big, mate!” I say to my fellow Malaysians: To let us get our Malaysian products out into the global marketplace, we need to befocused and competitive. We can all be winners.

● Senator Datuk Seri Idris Jala is Minister in the Prime Minister's Department and CEO of the Performance Management & Delivery Unit (Pemandu).

CORPORATE PLAYMAKERS

Saturday January 1, 2011

Those who will count in 2011

THERE are many interesting personalities who are likely to go on making the news pages in 2011. These are people who have taken up new roles and positions throughout the year, or who had suddenly emerged after a long hiatus from the corporate scene.

Consider Datuk Bakke Salleh, who had been hand-picked by Sime Darby Bhd's board of directors. Bakke, who has a reputation of being highly scrupled, has also made a name for himself as a turnaround specialist of ailing government-linked companies and he sounds like just what the doctor ordered for the troubled Sime.

Another person to keep an eye on is Shahril Ridza Ridzuan, who was made deputy chief executive officer (investments) at the Employees Provident Fund. He has raised the Fund's game, particularly in property investments and some say, more changes could be expected over the course of the new year.

Then there's Datuk Tong Kooi Ong, who has been active in the year. In what was deemed as a rare move, Khazanah Nasional Bhd's UEM Land Bhd has proposed to takeover one of Tong's flagship vehicle property developer Sunrise Bhd to build a leading real estate company not just in Malaysia but the region.

Tongues wagged vigorously that this was part of a plan by Tong to exit his business interests in the country, but he has tirelessly quashed such talk, promising to stay on to help grow the enlarged business and “create value for shareholders and customers.”

Last year also saw the changing of guard at the helm of Petroliam Nasional Bhd, whereby Datuk Shamsul Azhar Abbas became president and chief executive officer taking over from Tan Sri Mohd Hassan Marican. Oil and gas players will be watching closely as to how Shamsul's new initiatives will pan out. These include how the development of new marginal fields will be farmed out and who will be the beneficiaries as well as Petronas' proposed introduction of a new production regime.

Then there are the consummate entrepreneurs to watch as they always seem poised on a big corporate deal. Tan Sri Syed Mokhtar Al-Bukharyand Tan Sri Halim Saad were busy trying their luck to get assets ranging from PLUS Expressways Bhd to KFC Holdings Bhd. Don't rule them out of trying to put together deals just as big this year. Read on for more.

Datuk Mohd Bakke Salleh

President and group chief executive

Sime Darby Bhd

A well-known figure among the government-linked company (GLC) fraternity as the turnaround maestro for troubled GLCs, Datuk Mohd Bakke Salleh has been busy making sweeping changes at Sime Darby Bhd to restore it back to a stable footing.

Bakke had been roped in by the Sime Darby board to tackle the group's loss-making subsidiaries, particularly the massive cost over-run fiasco in the energy and utilities (E&U) division, which had dragged the group into the red.

Bakke has also been given the greenlight by the “powers that be” to oversee the full restructuring of the conglomerate and restore investors' confidence. The four key thrusts which Bakke will focus on includes the turnaround of its E&U unit, potential maximisation of core businesses, instituting a high performance culture and a review of the company's portfolio mix.

By Jan 1, 2011, Bakke is set to implement the group's two-tier board structure with subsidiary boards consisting of members from the main board, senior management and industry professionals, which some say is akin to the old Sime Darby structure prior to the mega merger (ofKumpulan Guthrie Bhd, Sime Darby and Golden Hope Plantations Bhd) in 2007.

Bakke is looking at revamping Sime Darby's existing six separate divisions into six flagship subsidiaries in plantation, property, motor vehicle, industrial, E&U and healthcare all poised to be undisputed leaders in their area of expertise under a four-year business plan.

He is also expected to put on hold the plan to list Sime Darby's plantation unit in Indonesia on the Jakarta Stock Exchange in 2011. In his previous capacity, Bakke who is a chartered accountant, had managed to turnaround Lembaga Tabung Haji in early 2000. In fact, he was in the midst of listing TH Plantations Bhd prior to assuming his “national service” at Felda Holdings Bhd in 2005.

Bakke was then heavily involved with the on-going reorganisation of Felda units Felda Global Ventures and Felda Holdings Bhd but once again was asked to perform another “national service” at Sime Darby in July last year (2010) as the acting president and group chief executive.

The acting position was due to the fact that the working contract of his predecessor Datuk Seri Ahmad Zubir Murshid would only expire on Nov 26, 2010. To recap, in mid-May 2010 Ahmad Zubir was asked to take a leave of absence by the Sime Darby board pending an investigation into the group's massive losses. - By HANIM ADNAN

Shahril Ridza Ridzuan

Deputy chief executive officer

(investment),

Employees Provident Fund

Shahril Ridza Ridzuan is the central character in the crucial changes that have taken place in the Employees Provident Fund's (EPF) investment profile this year. He has raised the Fund's game, particularly in property investments and some say, more changes could be expected over the course of the new year. More importantly, plans such as investing in UK properties, the takeover of PLUS Expressways Bhd, the massive multi-billion development of the Sungai Buloh land and the merger betweenMalaysian Resources Corp Bhd (MRCB) and IJM Land Bhd will all likely gain traction this year and it would be interesting to watch their progress as well as the impact on the Fund's fat coffers.

Shahril launched into Malaysia's corporate space nine years ago together with comrade Datuk Abdul Rahman Ahmad to boost the sagging position of MRCB, which was strangled by massive debts and on the brink of bankruptcy.

Their appointments to MRCB was also part of a bigger plan to make overMalaysia Inc and move away from owner-run enterprises to professionally managed entities. It didn't take the duo long to come up with a financial restructuring and the ensuing operational changes which saw MRCB sliced and diced into two groups property and construction, and media. Shahril went on to lead MRCB, which core business is property and construction with its flagship project KL Sentral.

Shahril stepped down as group managing director of MRCB in late 2009 and was roped in to lead EPF's investments given his strengths in corporate finance, restructuring, mergers and acquisitions and of course, property development.

Indeed, the EPF which has long held on to a steady yet somewhat wary (it hasn't altered much in terms of new asset classes) investment portfolio has seen more changes over the course of this year than it ever has over a decade. Many attribute it to the quiet push led by Shahril.

For a Fund that has long been visibly driven by its chief executive officer Tan Sri Azlan Zainol, it is noteworthy that since Shahril's entry into EPF, he has taken centre stage in most of the key developments this year. Could bigger things be in store for this professional manager? - By ANITA GABRIEL

Tan Sri Azman Mokhtar

Managing director

Khazanah Nasional Bhd

As chieftain of Khazanah Nasional Bhd, Tan Sri Azman Mokhtar needs very little introduction. He is certainly a man to watch, considering the active role that Khazanah plays in the corporate world today.

One of 2010's biggest deals for Azman must surely have been the take-over of Singapore-based Parkway Holdings Ltd. The deal was a challenging one, as Khazanah suddenly found itself pitted against India's wealthy Singh brothers, which had bought a stake and sought to wrest control of Parkway.

A widely publicised battled ensued but Azman and team in the end emerged victorious as they took the prize home and the Singhs bowed out. But the Singh brothers pocketed a handsome profit in the process.

Then there was PLUS Expressways Bhd, a company that had somehow become a takeover target. It is said that Azman had fought hard to ensure that PLUS does not go into the hands of parties who had no track record in running an asset as vital as the country's North South expressway.

Together with the Employees Provident Fund (EPF), Khazanah (via its subsidiary UEM Group Bhd) has offered to buy out PLUS. The deal is close to being done.

Going forward, Azman will have his work cut out in the plans for Khazanah's divestments. Apart from continuing the older mode of selling down its shares in government-linked companies (GLCs), Azman has spearheaded the planned divestment of certain GLCs to entrepreneur-type parties. “It (divestment) has moved beyond just placement of shares. Khazanah will gradually divest its stakes in government-linked companies and not just create more market liquidity,” Azman told reporters recently.

He has also said that strategic divestments and grooming of entrepreneurship were major areas of focus. One of those divestments involves Pos Malaysia Bhd, where Khazanah has a 32.2% stake and has invited bids from different entrepreneurial groups, both local and international.

Various big names are said to have put in bids and Azman has said that he will ensure a transparent bidding process as he wants to make the divestment of Pos Malaysia an “iconic template.”

The Pos Malaysia divestment announcement first came about in March last year but until now, the transaction has not taken place. It has been speculated that the problem lies with the Government dragging its feet with regard to relinquishing its “golden share” in the company, which illustrates the kind of challenges that Azman faces in executing his plans for Khazanah's divestment.

A more recent example of an iconic divestment is that of Time dotCom Bhd (TdC). It was reported that Khazanah's controlling stake is being transferred to a promising entrepreneur, who had already achieved certain benchmarks in turning around the previously ailing TdC.

The market however has yet to be convinced this is the right thing for TdC as seen in the latter's share price. Minority shareholders (excluding Khazanah who won't be voting) will decide on the deal soon and that will indicate if the market believes in Azman's entrepreneurial-driven divestment strategies. - By RISEN JAYASEELAN

Datuk Shamsul Azhar Abbas

President and chief executive officer

Petroliam Nasional Bhd

Feb 10 of this year will mark Datuk Shamsul Azhar Abbas' first year anniversary as Petroliam Nasional Bhd's (Petronas) president and chief executive officer.

Shamsul, who took over Tan Sri Mohd Hassan Marican's position as the Petronas' chief last year, is no rookie to the oil and gas industry having served with the Petronas group since 1974.

He was the president and CEO of Petronas' Malaysian International Shipping Corp Bhd between 2004 and 2009.

Within his first year as Petronas' chief, Shamsul has made changes to the national oil company's strategy by scaling back on exploration works overseas and beefing up domestic exploration instead.

The domestic oil exploration will see Petronas drill deeper for oil and gas in the shallow waters of Malaysia and increase the amount of oil it pumps out from existing wells in the country.

The group's new direction is also to acquire proven oil and gas reserves instead of drilling for them. The fruition of the change in strategy will not be evident immediately and can only be seen in the coming years under Shamsul stewardship.

Aside from that, Petronas took the lead in the newly released tax incentives for the oil and gas sector announced under the Economic Transformation Programme (ETP). The incentives are aimed at boosting the development of oil and gas resources and to stimulate domestic production of petroleum resources to arrest the projected 1%-2% decline in domestic oil and gas production.

Shamsul says that the new incentives could spur the production of 1.7 billion barrels of oil equivalents from 25 marginal fields over the next two decades. The incentives will make developing smaller or marginal fields more commercially viable due to the heavy investments needed.

Petronas says that it will encourage new foreign and local companies to develop these marginal fields and not confine it to the big oil companies.

The new year will put the spotlight on how the development of new marginal fields will be farmed out and who will be the beneficiaries as well as Petronas' proposed introduction of a new production regime.

An idea that is being floated for development of marginal fields is the commissioning of risk service contracts, whereby the contractor who explores and drills the field will bear the investment risks.

Another area of focus for Shamsul will be the review of the gas subsidy borne by Petronas, which stood at RM19bil for its financial year ended March 31, 2010. Petronas subsidises gas for both power and non-power sectors and is working with the Economic Council on how to set-up new gas prices. - By JEEVA ARULAMPALAM

Senator Datuk Seri Idris Jala

Minister in the Prime Minister's Department and chief executive officer of Performance Management and Delivery Unit

Senator Datuk Idris Jala first came into the public eye in December 2005 when he was appointed managing director and chief executive officer at the then loss-making national carrier, Malaysia Airlines.

The task at hand was not a simple one to steer the cash-flow stricken airline out of its losses of RM1.3bil in a less-than-encouraging economic environment.

But turn around the ailing company, he did by implementing massive cost-cutting measures implemented under his brainchild, the Business Turnaround Plan (BTP1).

The BTP1 turned MAS' nine-month loss of RM1.3bil in 2005 to a record profit of RM851mil in 2007. After that turning point, Jala introduced a bolder five-year business transformation plan also known as BTP2 which aimed to make MAS a world-class five-star value carrier. The BTP2 targets annual profits of RM2bil to RM3bil by 2012.

Before he got to see the BTP2 to the end, Jala was appointed as Minister in the Prime Minister's Department and chief executive officer of the Government's Performance Management and Delivery Unit (Pemandu).

Many viewed the appointment of Jala as head honcho of Pemandu the unit overseeing the implementation of the Government's Key Performance Indicators (KPIs) as apt.

Known for this “turnaround magic” and no-nonsense character, Jala seemed the perfect match to head up the unit and make sure everyone at the administration was performing up to par.

These days, Jala is more known for being the main guy behind the Economic Transformation Programme (ETP) the programme which is expected to propel the country from a middle-income country to a high-income one by 2020.

The ETP has plans to make Malaysia the main Asian hub for oil field services, to clean up and beautify the capital city's rivers, to build a 7km shopping strip with covered walkways as well as to identify sites for the country's first nuclear power plant.

Among the larger projects that will be implemented under the ETP are the mass rapid transit (MRT) system as well as the high-speed rail project between Kuala Lumpur and Singapore. Jala is confident that the projects under the programme will be successful despite criticisms from some quarters.

“This is a private sector-led initiative , if we fail, the private sector has failed,” he once said.

Every Friday, he heads a meeting called PSM (problem solving meeting) to help iron out issues standing in the way of successful implementation and execution of the key projects under the ETP. - YVONNE TAN

Datuk Tong Kooi Ong

Executive chairman

Sunrise Bhd

As a driven and self-motivated entrepreneur, nothing gets Datuk Tong Kooi Ong's adrenalin going as much as a big challenge. And he's had his fair share of that over the years and some say, this streak will continue well into the new year.

Tong founded and built innovative banking group PhileoAllied Bhd which was later divested in a regulator-driven massive industry consolidation exercise.

He then set his eyes on building a media empire. He owns The Edge Communications Sdn Bhd (publisher of The Edge), which he eventually injected into then listed Nexnews Bhd.

In 2003, the ex-banker bought into builder Sunrise Bhd, emerging as its single largest shareholder, throwing out of the window the perception that post-PhileoAllied, Tong has chosen to remain in the backstage of Malaysia's corporate realm.

In 2010, Tong made even bigger news. In January, Sunrise teamed up with Sime Darby Bhd to develop a RM1bil integrated commercial property project in Bukit Jelutong, Selangor. Then in November, in what was deemed as a rare move, Khazanah Nasional Bhd's UEM Land Bhd planned a takeover of Sunrise Bhd to build a leading real estate company not just in Malaysia but the region.

Tongues wagged vigorously that this was part of a plan by Tong to exit his business interests in the country, but he has tirelessly quashed such talk. In fact, he has promised to stay on to help grow the enlarged business and “create value for shareholders and customers.”

He has admitted that he “will be partly responsible for the future UEM Land.” That may be easier said than done as the divergent cultures of these entities, not unlike most mega mergers, is expected to be highly challenging as well as arduous.

The usually buttoned-down T-shirt clad entrepreneur spends most of his time in Vancouver where he also has substantial business interests. He is the chairman of the board and executive committee of Taiga Building Products Ltd, listed on the Toronto Stock Exchange with annual sales of over C$1bil. Given Tong's insatiable appetite for corporate challenges, it would be interesting to watch his moves (and delivery) this year. -

By ANITA GABRIEL

Tan Sri Syed Mokhtar Al-Bukhary

Controlling shareholder of MMC Corp Bhd

Always an active businessman, Tan Sri Syed Mokhtar Al-Bukhary will certainly be someone to watch in 2011. As a perspective of how wide his business empire stretches, here's a quick look at Syed Mokhtar's businesses in the country.

Companies linked to him control the sugar and rice sectors, two ports (Johor Port and Port of Tanjung Pelepas), an airport (Senai Airport), the nation's largest independent power producer (Malakoff Corp Bhd) and water treatment plants (Aliran Ihsan Resources Bhd).

Expansion it seems, is still very much on the cards. Syed Mokhtar has been active last year. Going back just a bit, in late 2009, Tradewinds (M) Bhd, one of his vehicles, acquired a 31.5% stake in the country's sole rice distributor Padiberas Nasional Bhd (Bernas).

Then early in 2010, his DRB-Hicom Bhd received a letter of intent from the Government to provide armoured personnel carriers in a contract that could be worth some RM8bil. Interestingly, DRB-Hicom was also rumoured to be looking to acquire a stake in Proton Holdings Bhd. However DRB-Hicom had since denied such speculation.

Syed Mokhtar has also been in the news last year for the attempts by his flagship MMC Corp Bhd to buy over UEM Group and PLUS Expressways Bhd. It was said that a proposal was put to the Government for this but it was not accepted for reasons not clearly known. PLUS was eventually the target of a takeover by Khazanah Nasional Bhd and the Employees Provident Fund.

And the tycoon may yet pull off a major coup if MMC, and its partnerGamuda Bhd, are given the mandate to construct the country's mass rapid transit (MRT) project. Both companies are front-runners for the RM36bil MRT project, the largest construction job to be awarded under the 10th Malaysia Plan.

A company linked to Syed Mokhtar, Puncak Semangat, was awarded the next generation spectrum, commonly known as 4G or LTE (long-term evolution). The company will be assigned a 20Mhz block each at end-2012. This means that Syed Mokhtar now has the opportunity to enter into the mobile communications world, as LTE is touted as the next big thing in the wireless world.

Also, with Johor poised for new developments stemming from the joint property deals between the government's of Singapore and Malaysia and the progress of the Iskandar project, Syed Mokhtar is bound to feature in all of that, somehow. - RISEN JAYASEELAN

Tan Sri Halim Saad

Businessman and former executive chairman of Renong Group

Former executive chairman of Renong group Tan Sri Halim Saad has been in the news of late making a comeback in the mainstream corporate scene.

Since his exit from Renong Group, there has been little news about his manoeuvres until recently.

Halim recently made an offer to acquire Pizza Hut restaurant operatorQSR Brands Bhd's entire business that includes its controlling stake inKFC Holdings (M) Bhd.

However, his attempts to acquire QSR Brands flopped as Johor Corprejected both Halim and Carlyle Group's takeover bids. Many see his recent involvement in the takeover as an earnest attempt to propel himself back to the country's corporate stage.

Halim is believed to be linked to Asas Serba Sdn Bhd, the company that made a RM50bil bid to take over PLUS Expressways Bhd. That attempt to take over all the tolled highways in the country did not work out for him either after PLUS accepted the RM23bil offer by UEM Group Bhd and the Employees Provident Fund.

He has remained relatively quiet and despite the failed attempts, he may have other plans up his sleeve. Many wonder what he could be eyeing next.

The very well-connected businessman and corporate high-flyer left the defunct Renong in late 2001 following the takeover of Renong/UEM Group by Khazanah Nasional Bhd.

The New Zealand-trained accountant was highly regarded back then not only locally, but also in the international arena. In December 1994, Time International put him on the Global 100 list of under-40 leaders for the next century to watch.

Halim ascended to the throne of government-linked Renong, the parent company of then United Engineering (M) Bhd, which has since evolved into the present UEM Group, in 1990 and remained there as its boss until he was forced to resign in 2001.

When Renong and UEM Group were found to have amassed a staggering debt amounting to almost RM30bil, Khazanah Nasional had to step in. Prior to the rescue, though, it was alleged that Halim could not fulfil a put option of RM3.2bil that he owed UEM for the purchase of Renong shares following the onslaught of the Asian financial crisis.

Datuk Lin Yun Ling

Group managing director

Gamuda Bhd

Gamuda Bhd group managing director Datuk Lin Yun Ling is surely going to be one busy man this year as the company together with its joint-venture partner MMC Corp Bhd, is a strong contender for the tunnelling works of the RM36bil mass rapid transit (MRT) system.

The tunnelling works is estimated to be worth about RM13bil and the MRT system project is expected to be rolled out as early as July. In fact, the comprehensive plan of the MRT system was jointly prepared and proposed to the Government by the Gamuda-MMC JV.

The JV stands a good chance given Gamuda's track record in undertaking the STORM flood mitigation project in Kuala Lumpur. Gamuda is also the sole Malaysian contractor to date that has delivered an MRT system in Kaoshiung, Taiwan.

While one thing is taking off quite smoothly for Gamuda, another is in a deadlock for nearly two years. The Selangor water restructuring exercise has yet to find any consensus as the disagreements largely hinge on who is the rightful party to consolidate the state's water assets and have control over its operations.

As it stands, the state's water assets are parked under four concessionaires Syarikat Bekalan Air Selangor Sdn Bhd, Syarikat Pengeluar Air Selangor Sdn Bhd (Splash), Puncak Niaga (M) Sdn Bhdand Konsortium Abbas Sdn Bhd. Gamuda owns 40% in Splash.

Apart from this hiccup, the outlook is quite bright for Gamuda as of Malaysia's biggest construction groups, locally and abroad. It plans to bid for more work in the Middle East after recently completing its third project there a RM650mil causeway.

In property development, Gamuda is set for a new era of growth via developments in Vietnam, which have a total gross development value of RM12bil.

Lin joined Gamuda in 1978 as senior project manager and later join the board as managing director in 1981. As a key pioneer founder of the group, Lin brings more than 32 years of experience in civil engineering and construction to Gamuda.

Under his leadership, Gamuda expanded its business focus from construction into infrastructure and property development, all sectors in which the group has dominant positions, both locally and internationally. - By SHARIDAN M. ALI

Azran-Osman Rani and Datuk Eddy Leong

AirAsia X chief executive officer and Firefly managing director

Azran-Osman Rani

There's never a dull moment in the country's airline industry and much of that has to do with the personalities who sit atop these airline companies.

As the battle ground in the sector expands, it would be interesting to watch (another) two key personalities long-haul budget carrier AirAsia Xchief executive officer Azran-Osman Rani and the national carrier's community airline Firefly's managing director Datuk Eddy Leong.

While both airlines operate in different markets, a common denominator for the two chiefs would be the year the companies were formed in 2007. And not just that, the core challenge in 2011 for both men is to up their respective average revenue per passenger per kilometre (yield) and hold load factors up in an environment bursting with more capacity and challenged by rising fuel costs.

Datuk Eddy Leong

For Azran, there's a whole new dimension to the challenge. AirAsia X plans to make its debut on the stock exchange in the second half. As for Leong, Firefly will begin its jet aircraft operations in January. Currently, Firefly only operates turbo-propeller planes out of Subang airport.

It remains to be seen whether the listing of AirAsia X takes off as planned. The capital raised from the listing exercise will be used to buy planes. AirAsia X needs to secure its own financing now, having restructured itself mid last year to become a stand-alone company fromAirAsia Bhd.

AirAsia X has also struggled to secure the rights to several lucrative routes, resulting in a battle of words between Azran and Malaysia Airlines (MAS) managing director and chief executive officer Tengku Datuk Seri Azmil Zahruddin last year over the distribution of air rights, specifically for flights to Seoul and Sydney.

The new year looks promising for AirAsia X in terms of securing the much desired Kuala Lumpur-Sydney route, going by the airline's launch of several new routes including Seoul, Paris, and Christchurch over the past few months.

Firefly, a wholly-owned unit of MAS, announced in November that it will take up to 30 B737-800 aircraft from 2010 to 2015 and operate out of Kuala Lumpur International Airport as part of its expansion into east Malaysia now and into the regional markets in future.

Choosing routes will be crucial for Firefly, since analysts say the jet routes may take 1-2 years to break even. Leong will likely focus on domestic trunk routes that have high load potential and are profitable.

Considering that Firefly's immediate competitor will be low-cost carrier AirAsia, it will be interesting to see how Leong will go up against AirAsia group chief executive officer Datuk Seri Tony Fernandes in terms of marketing strategies and pricing fares for similar routes plied by both airlines. - By JEEVA ARULAMPALAM

Shahrol Halmi

Chief executive officer

1Malaysia Development Bhd

AS chief executive officer of 1Malaysia Development Bhd (1MDB), Shahrol Halmi is very much in the driver's seat to steer initiatives for the long-term sustainable economic development and promote inflow of foreign direct investment to Malaysia.

With 1MDB tasked by the Government to act as the main vehicle to channel much-needed foreign direct investment into the economy, Shahrol is literally in the frontline to formulate and seal strategic global partnerships to promote new high-impact growth for the country.

The graduate of Stanford University, who was previously with Accenture Malaysia, is a specialist in value creation with over 13 years' experience in implementing large projects involving government-linked companies (GLCs) as well as financial institutions.

His achievements include a multi-year transformation programme at the Employees Provident Fund as well as planning and executing the merger of Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd to form the then Synergy Drive (now known as Sime Darby), the world's biggest plantation company.

At the helm of 1MDB, Shahrol's principal responsibility is to bring in foreign direct investment and catalyse projects that have high multiplier effects to steer Malaysia into a high economic growth path.

One of the most watched out projects will be the urban redevelopment of the old airport in Sungai Besi to support the Government's plan for Greater Kuala Lumpur to be a new engine of growth.

Named as Bandar Malaysia by 1MDB, the project will focus on liveability as a distinctive urban character for Greater KL as it competes for talent, wealth and investments in the global arena.

Another much-touted project by 1MDB is the Kuala Lumpur International Financial District (KLIFD) in the heart of the city. KLIFD will be a dedicated international financial district promoting Malaysia as an international and Islamic financial centre.

The 34ha real estate development will be an iconic destination and is intended to tightly cluster important banking and financial entities for a new growth momentum. In December 2009, 1MDB announced it would be investing US$1bil in a joint-venture company with Petro-Saudi International Limited. The US$2.5bil joint venture is to spearhead the flow of foreign direct investments from the Middle East and make strategic investments in high-impact projects in Malaysia.

This was followed by a joint agreement with State Grid Corp of China to set up hydro power plants and a massive aluminium smelter in Sarawak, which could involve investments worth US$6bil-US$8bil.

1MDB is also working with Masdar, a wholly-owned subsidiary of Abu Dhabi's Mubadala Development Company focused on renewable energy and sustainability, to jointly explore clean technology projects and investments, including the possibility of building Malaysia's first carbon-neutral city. - By ANGIE NG