Thursday, August 14, 2014
Wednesday, September 11, 2013
MALAYSIA AIRLINES- A MODEL TO FOLLOW
PIA to be upgraded on Malaysian Airlines model: Nawaz irked by very poor PIA''s show
September 11, 2013
In his remarks he said that economic development was the only way forward but terrorism and extremism were badly hampering the economic turnaround in Pakistan. He said the country was passing through difficult times and we were evolving a consensus strategy to sort out all issues confronting the nation.
He said that during his previous tenures as the Prime Minister of the country his government followed the policy of free market economy which led to faster economic growth. "We have again started with the same policy with an enlarged vision and increased vigour," the Prime Minister added.
The cabinet discussed good management practices to be adopted by the government sector to make it more effective, efficient and accountable. The Prime Minister said that PIA was incurring Rs 3.3 billion monthly losses due to its inefficiency, corruption and malpractices.
"At present we are only dealing with day to day crisis at PIA. Taxpayers'' hard earned money is being paid to PIA to bail it out of economic crises and sustain itself, and this situation cannot continue any more," the Prime Minister added. He said that this money should be invested in power sector and development of other resources instead of sustaining an inefficient PIA. He said that over-employment and low quality services have led to the downfall of the national airline, which once the best in the world. He directed the PIA management to provide a detailed briefing on the present situation of PIA and bring about concrete proposals to reform PIA.
Senator Dato'' Siri Idris Jala, Minister in Malaysian Prime Minister''s Office and CEO Performance Management and Delivery Unit (PMDU), Government of Malaysia attended the Cabinet meeting on special invitation of the Prime Minister. He shared his experiences of Malaysian Economic Programmes and Government Transformation. He informed the Cabinet that Malaysia transformed its economy by devising short term plans within the framework of its larger strategic programmes, and set time-lines for achieving those plans by giving key performance indicators.
The public as well as private sectors were involved, through well defined process, in devising these policies and making them achievable, he added. He informed the Cabinet the procedures were made simple to attract investors, both foreign and domestic. The Prime Minister said that Government of Pakistan was following an economic model whereby key development sectors had been identified and prioritised. Moreover, systems were being simplified. The Prime Minister maintained that his government had prioritized economy, energy and modernising infrastructure all over the country and investment in power sector. He added that a team of experts was working on the reforms action plan and Pakistan could learn from the success stories of Malaysia and replicate the same, he added.
The Prime Minister said that his government looked forward to working closely with Malaysian government. The Prime Minister also recalled his association with Mahatir Muhammad, the then Prime Minister of Malaysia, and said that they had extensive discussions on economic reforms and shared experiences. The Prime Minister said that a high-powered delegation would soon visit Malaysia to further strengthen co-operation particularly in the economic fields between the two countries.
Sunday, July 28, 2013
SHIPPING - DRY BULK CARGO RECOVERY
Recovery of Dry-Bulk Cargo Shipping
Jul 27, 2013
Since the start of this year, dry bulk cargo industry is obtaining a fragile recovery from its disastrous four year decline started in 2008, but a new wave of ship orders and a setback of Chinese economy is threatening it. The Baltic Dry Index, a measure of commodity shipping costs, reached its lowest annual average in 26 years in 2012 amidst an oversupply of vessels and slowing demand. Following the trend, dry-bulk shipping rates touched a 14-year low in March 2012, after touching a life-high of 11,793 in 2008. In this period of turmoil several dry bulk shipping companies including Britain’s oldest shipping firm, Stephenson Clarke Shipping, and Italy’s Deiulemar Shipping filed for bankruptcy unable to pay their debts.
In general terms bulk carrier, bulk freighter, or bulker is a merchant ship specially designed to transport unpackaged bulk cargo, such as grains, coal, ore, and cement in its cargo holds. In 2012, approximately 4 billion tons of dry bulk cargo was transported by sea, comprising more than one-third of all international seaborne trade. The global fleet of 9,490 dry-bulk ships will haul an estimated 4.2 billion metric tons of cargo this year, 5 percent more than in 2012, according to Clarkson Plc, the biggest shipbroker in the industry.
Positive first two quarters
Since the beginning of the year, rates on the iron ore benchmark Capesize route from Tubarao, Brazil, to Qingdao, China have increased by $2.25/t from $17.25 to $19.50/t. Coal freight Capesize rates for Richards Bay to Rotterdam voyage increased to around $8/t in June from $5.90/t in April. These increases were all fuelled by a lower supply of new fleets into the industry in the early parts of the year. The Baltic Exchange’s main sea freight index, which tracks freight rates for ships carrying dry bulk commodities such as coal, iron ore and grain, plunged to a 16-year low of 647 last year. However, many believe that the peak is now over as more and more new orders are recorded by ship makers.
“The supply situation is quite staggering.” Raymond Ching Wei-man, Vice-Chairman of Jinhui Shipping and Transportation, stated to South China Morning Post.
Ship owners have splurged on a raft of new orders, taking advantage of cheaper prices, more fuel efficient designs and money from private equity funds looking for a new home. This oversupply of ships has caused a risk of charter defaults, lower freight rates and a rush for lease payments. Furthermore, this has caused companies such as Jinhui Shipping to report impairment losses on their existing fleet. Last year a staggering number of 256 ships were scrapped by dry bulk cargo operators indicating the overcapacity in this highly competitive segment of shipping.
“The ordering wave is indeed worrying,” Henning Oldendorff, chairman of Oldendorff Carriers reported to South China Morning Post.
The main worry regarding the new influx of dry bulk cargo carriers is that it happens in a time of economic slowdown in the world. Highlight of this adverse economic situation is the slow economic growth in China and the recession in global steel industry. However, the analysts are divided over the progress made by bulk shipping industry as Maritime-expert reports a positive outlook for dry bulk shipping industry starting from the 3rd quarter of this year.
“Dry-bulk supply and demand is currently challenged, but we believe there is a solid potential for recovery beginning in the second half of 2014,”
Earnings for ships that carry dry- bulk commodities are set to start recovering in 2014 despite the fears of slow economy and oversupply of ships as fleet growth slows to keep pace with demand for the first time in four years, said Citigroup Global Markets Inc.
Expansion of ship fleet will weaken to 5 percent amid fewer deliveries of new vessels, compared with an 18 percent average pace in the 2011-13 period, analysts led by New York-based Christian Wetherbee has disclosed to Businessweek. The main challenge is to stay afloat with heavy debts until the fortunes once again favours the dry bulk cargo industry.
Thursday, July 25, 2013
WHAT IS A GDP
The GDP data is compiled from thousands of surveys completed by businesses
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.
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
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.
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.
Saturday, July 20, 2013
TRANSPORT PLANNING - AIRPORT
Heathrow offers to fund building of third runway
Britain's biggest airport, London's Heathrow, has urged the government to let it build a third runway, saying its plans would provide more flights, less noise and be cheaper and quicker to build than rival proposals.
The UK government and business leaders want to expand flights to fast-growing economies to ensure the country does not miss out on billions of pounds of trade, and with Heathrow operating at 99 percent capacity, more runways are needed, reported Reuters.
However, under pressure from green groups and its Liberal coalition partners, the Conservative-led government overturned a decision to build a third Heathrow runway after it came to power in 2010, and the move is also vigorously opposed by London's Conservative mayor, Boris Johnson, whom many commentators view as a potential rival to Prime Minister David Cameron.
Heathrow submitted its plans to a government commission looking into raising airport capacity, which is due to publish an interim report by the end of next year, with a final verdict due in mid-2015, after the next general election.
The West London-based airport, part owned by Spain's Ferrovial, suggested three options: placing a new runway to the north, northwest or southwest of the hub.
Each option would deliver extra capacity by 2025-29 for US$21
billion to $27 billion, and would be cheaper and quicker to build than rival hub options being proposed by Johnson and Stansted Airport, Heathrow said.
"There will be more pigs flying than aircraft if we are to believe the claim that three runways at Heathrow will make less noise than two," Johnson said after the plans were published.
"Their proposal would be a disastrous outcome for Londoners, nor would it solve our aviation capacity crisis as a fourth runway would need to be in the planning process before a third was even open."
Johnson is backing the development of a rival airport and earlier this week set out his plans, which include a new four-runway hub 40 miles east of central London and the possible demolition of Heathrow.
"Heathrow is not in the wrong place, it's in the right place for business," said Matthews, adding that hundreds of firms were based within 25 miles of the hub because of the links it offers.
"After half a century of vigorous debate but little action, it is clear the UK desperately needs a single hub airport with the capacity to provide the links to emerging economies which can boost UK jobs, GDP and trade."
As well as environmental groups, Heathrow's plans are opposed by local residents. A government report showed noise pollution levels of at least 57 decibels affecting around 260,000 people living near the west London site.
However, Matthews said by 2030 between 10 and 20 percent fewer people would be within Heathrow's noise footprint with a third runway, due to altered flight paths and the benefit of improved air-traffic control technology and quieter planes.
Heathrow said it preferred the two westerly options as they minimised the noise impact on local residents though they would cost more, and take longer to build than the north option.
The southwest runway, proposed to be built over two reservoirs, would be the most expensive and complex to build, but would mean aircraft noise affecting the fewest people.
Heathrow said all three options offered the chance of adding a fourth runway in the future, if needed, and said it would fund the runways itself rather than asking for taxpayers to pay.
Each option would raise capacity to 740,000 flights a year from 480,000 currently, and cater for 130 million passengers, up from the 70 million passengers that used the hub last year.
Johnson has proposed that London should have a four-runway airport, which would be either a new hub 40 miles east of central London on the Isle of Grain, or further out in the Thames Estuary on an artificial island, or at an expanded Stansted airport, to the northeast of the city.
Each of these projects would be deliverable by 2029, costing up to $99 billion, Johnson said.
The UK government and business leaders want to expand flights to fast-growing economies to ensure the country does not miss out on billions of pounds of trade, and with Heathrow operating at 99 percent capacity, more runways are needed, reported Reuters.
However, under pressure from green groups and its Liberal coalition partners, the Conservative-led government overturned a decision to build a third Heathrow runway after it came to power in 2010, and the move is also vigorously opposed by London's Conservative mayor, Boris Johnson, whom many commentators view as a potential rival to Prime Minister David Cameron.
Heathrow submitted its plans to a government commission looking into raising airport capacity, which is due to publish an interim report by the end of next year, with a final verdict due in mid-2015, after the next general election.
The West London-based airport, part owned by Spain's Ferrovial, suggested three options: placing a new runway to the north, northwest or southwest of the hub.
Each option would deliver extra capacity by 2025-29 for US$21
billion to $27 billion, and would be cheaper and quicker to build than rival hub options being proposed by Johnson and Stansted Airport, Heathrow said.
"There will be more pigs flying than aircraft if we are to believe the claim that three runways at Heathrow will make less noise than two," Johnson said after the plans were published.
"Their proposal would be a disastrous outcome for Londoners, nor would it solve our aviation capacity crisis as a fourth runway would need to be in the planning process before a third was even open."
Johnson is backing the development of a rival airport and earlier this week set out his plans, which include a new four-runway hub 40 miles east of central London and the possible demolition of Heathrow.
"Heathrow is not in the wrong place, it's in the right place for business," said Matthews, adding that hundreds of firms were based within 25 miles of the hub because of the links it offers.
"After half a century of vigorous debate but little action, it is clear the UK desperately needs a single hub airport with the capacity to provide the links to emerging economies which can boost UK jobs, GDP and trade."
As well as environmental groups, Heathrow's plans are opposed by local residents. A government report showed noise pollution levels of at least 57 decibels affecting around 260,000 people living near the west London site.
However, Matthews said by 2030 between 10 and 20 percent fewer people would be within Heathrow's noise footprint with a third runway, due to altered flight paths and the benefit of improved air-traffic control technology and quieter planes.
Heathrow said it preferred the two westerly options as they minimised the noise impact on local residents though they would cost more, and take longer to build than the north option.
The southwest runway, proposed to be built over two reservoirs, would be the most expensive and complex to build, but would mean aircraft noise affecting the fewest people.
Heathrow said all three options offered the chance of adding a fourth runway in the future, if needed, and said it would fund the runways itself rather than asking for taxpayers to pay.
Each option would raise capacity to 740,000 flights a year from 480,000 currently, and cater for 130 million passengers, up from the 70 million passengers that used the hub last year.
Johnson has proposed that London should have a four-runway airport, which would be either a new hub 40 miles east of central London on the Isle of Grain, or further out in the Thames Estuary on an artificial island, or at an expanded Stansted airport, to the northeast of the city.
Each of these projects would be deliverable by 2029, costing up to $99 billion, Johnson said.
Wednesday, July 10, 2013
MASKARGO AND FORMULA 1
The event was one of the highlights in the build-up to the 15th edition of the 2013 Formula One Petronas Malaysia Grand Prix that was held at the Sepang International Circuit at the weekend.
MASkargo sealed a deal with Petronas for the exclusive rights as preferred air cargo partner for the demo run. The carrier transported the Mercedes Petronas Formula One Team’s demo F1 cars and equipment.
“This is an amazing global opportunity to align two world leading brands of different industries. The cutting-edge technological standards and worldwide reach of Formula One go hand in hand with MASkargo’s business direction,” said Mohd Yunus Idris, CEO of MASkargo.
Tuesday, July 9, 2013
ENTREPRENEURSHIP - Factors for success
June 11, 2013 12:13 am
Throw away the suit and know execution matters
I have five top tips for people thinking of starting their own business.
First, don’t do it! If you do, you’ll be letting yourself in for an immense amount of unrewarded hard graft, a series of failures and the need to keep bouncing back a thousand times when things don’t work.
Next, people matter. Surround yourself with really great people who believe in what you are doing and whom you trust and enjoy working with. Treat them well – and that includes investors.Burning yourself out without knowing if it will ever pay off is certainly not for everyone. If you ignore me and do it anyway, then give it your all. If you start a business halfheartedly, you will not succeed.
Second, it is important to understand your own risk profile. When is the right time for you to a start a company? What financial and personal risk can you afford to take? Do you really know your market? In my case I had corporate experience, an MBA and start-up experience before becoming a founder, so I learnt on someone else’s dime.
Fourth, don’t forget that execution matters. Even if you have five competitors doing the same thing, you can still win if you execute better than them. Luck has nothing to do with it. Spend less time at conferences and coffee mornings, and put more into building and selling a great product. Test, learn, get feedback and iterate fast.
Finally, never wear a suit if you can help it. People who are more concerned about dress code than substance are not worth working with anyway.
Once these rules are established, you will find the UK is broadly entrepreneur friendly.
We have a decent education system, good infrastructure and a flexible labour market. Culturally, we are not as risk hungry as the US, but that is changing.
We now have celebrity entrepreneurs as role models, and even television shows promoting start-up businesses, for all their flaws. We have tax breaks for company founders, such as Entrepreneurs’ Relief, as well as for investors, such as the Enterprise Initiative Scheme.
In the consumer internet sector where Adzuna operates, the UK does not have the history and concentration of start-ups that have developed in Silicon Valley over the past 30 years. But we do have other advantages, including a diverse culture and workforce, and access to London’s media and financial services expertise. For global businesses, London is still the best place to be headquartered.
There is, however, always more the government can do, particularly to reduce the administrative burden on start-ups and their employees. The requirements of Companies House and HMRC remain labyrinthine even to an experienced business manager and qualified accountant like me. What is needed is not rocket science: get everything online, put it in layman’s terms, ask for things only once and only those that are needed, and simplify them.
On taxation, payroll tax breaks to get young businesses going or incentives for employees to profit from stock or options in companies they help create are always welcome.
It is time to tax global corporations properly and challenge their transfer pricing schemes. We need to create a level playing field for all businesses operating in the UK, irrespective of where they are based.
The government should also sort out the banking system to create real competition and customer service, train more computer scientists to fill the talent gap and make the London markets more attractive for technology initial public offerings, to stop us selling so many great British businesses to big US corporations who do not pay UK taxes anyway.
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