Ringgit back in favour among global funds
M'sia regional favourite, gets the most from inflow of funds
'Tidal wave' at M'sian exchange, foreigners buy RM1.67bil last week
IOSCO picks Kuala Lumpur as its hub in Asia-Pacific
Source: The Star 15/3/2017
Asia remains vibrant
Source: The Star
Phase one of Companies Act 2016 comes into effect
KUALA LUMPUR: The Companies Act 2016 (CA 2016) will be implemented over several stages, starting with phase one which came into effect on Jan 31.
The Companies Commission of Malaysia (SSM) said on Wednesday that with the enforcement of the first phase, the Companies Act 1965 is hereby repealed.
However, it pointed out that several provisions in the CA 2016 which have yet to be effective are:
Section 241 – provision relating to the requirement for company secretaries to register with Registrar; and
Division 8 of Part III – provisions relating to corporate rescue mechanisms on corporate voluntary arrangement and judicial management.
SSM said a company may be incorporated by or have only one member and that single member can also be the sole director of the company. However, for public companies, the CA 2016 still retains the minimum requirement of two directors.
The CA 16 also sees the change of “certificate of registration” to “notice of registration”
SSM will issue a notice of registration for the incorporation of a new company to confirm that provisions relating to the requirements for registration have been complied with in line with the requirement of the law.
Under the CA 2016, a company does not have to state its authorized capital. Instead, a company is required to notify its issued share capital and paid-up capital and the related changes through the return of allotments.
It said from Jan 31, 2017, any newly issued share will no longer be tied with the nominal value when the company was incorporated. A company may issue shares at a price depending on the factors affecting the current circumstances and needs of the company.
SSM also pointed out that a company incorporated from Jan 31, 2017, has the option whether to adopt a constitution or otherwise.
For a company which was incorporated before the CA 2016 came into effect, the existing constitution (memorandum & articles of association) will continue to be applicable to such companies until the companies resolve otherwise. However, it is still mandatory for a company limited by guarantee to have a constitution.
Effective from Jan 31, 2017, a company has the option to have a common seal. Execution of documents must comply with the procedures outlined under Division 9 of Part II including situations when a company decides to have a common seal.
Beginning from Jan 31, 2017, all private companies are no longer required to hold annual general meetings. Instead all decisions of private companies can be fully made through circular resolutions.
Under the CA 2016, the requirement to lodge Annual Returns is based on the anniversary of the incorporation of a company, and the date for the lodgement of Financial Statements is no later than seven months from the financial year end of the company.
SSM advised the owners of the company to take into account of the changes when reviewing, formulating or implementing policies and procedures which may affect companies when dealing with the ministry/department/agency/organisation.
It also said this was to ensure that the business friendly policies which are contained in the CA 2016 can be implemented efficiently and the benefits could be enjoyed by the business community in general.
Apart from the CA 2016, SSM will also enforce the Interest Schemes Act 2016 from Jan 31, 2017.
The Interest Schemes Act regulates the offering of interest schemes as an alternative to fund raising activities for companies. The provisions in the Interest Schemes Act were previously contained in the Companies Act 1965.
Source: The Star
BNM now stronger, more transparent, accountable
KUALA LUMPUR: Bank Negara Malaysia (BNM) says recent media coverage on foreign exchange (forex) losses referred to events that occurred nearly 25 years ago.
In a statement issued on Friday, the central bank said it has moved forward, stronger, more transparent and accountable.
“Under the current challenging and uncertain global environment, it is important that we focus on ensuring our financial system and the economy remain resilient and stable,” BNM added.
Source: The Star
EPF signs Malaysian code for institutional investors
Dollar falls further in Asia amid trade jitters
SYDNEY: The dollar hit the skids in Asia on Tuesday as U.S. President Donald Trump's focus on trade protectionism fuelled suspicions his administration might seek a competitive advantage through a weaker currency.
The talk of trade wars favoured safe-haven Treasuries and the Japanese yen while subduing stocks, particularly as Asian companies have much to lose from U.S. tariffs. Nikkei futures pointed to more losses for Tokyo shares.
Sentiment took a fresh blow when U.S. Treasury Secretary nominee Steven Mnuchin told senators that he would work to combat currency manipulation but would not give a clear answer on whether he views China as manipulating its yuan.
In written answers to a Senate Finance Committee, Mnuchin also reportedly said an excessively strong dollar could be negative in the short term.
The dollar duly skidded as far as 112.52, breaking last week's 112.67 trough and the lowest since late November. Its 1.7 percent loss on Monday was the largest since July 29.
Against a basket of currencies, the dollar index was down 0.8 percent at 99.963, while the euro hopped up to $1.0764 . Both were levels last seen in early December.
While Trump promised "massive" cuts in taxes and regulations on Monday, he also formally withdrew from the Trans-Pacific Partnership trade deal and talked of big border taxes.
"It's interesting that markets did not respond positively to a reaffirmation of lower taxes and looser regulation, reinforcing the impression that all the good news is discounted for now," wrote analysts at ANZ in a note.
"As week one in office gets underway, there is a growing sense of scepticism, not helped by the tone of Friday's inaugural address and subsequent spat with the media."
Doubts about exactly how much fiscal stimulus might be forthcoming helped Treasuries rally. Yields on 10-year notes dropped 6 basis points to 2.401 percent, the steepest single-day drop since Jan. 5.
Two-year yields fell 5 basis points to 1.147 percent, narrowing the dollar's premium over the euro to 183 basis points from a recent top of 207 basis points.
Wall Street lost just a little of its recent gains. The Dow Jones fell 0.14 percent, while the S&P 500 .SPX lost 0.27 percent and the Nasdaq 0.04 percent.
Shares in Qualcomm Inc dived almost 13 percent after it was sued by Apple on Friday.
The drop in the dollar boosted gold to a two-month high and the precious metal was last trading at $1,217.75 an ounce .
Oil prices went the other way as signs of a strong recovery in U.S. drilling largely overshadowed news that OPEC and non-OPEC producers were on track to meet output reduction goals.
Brent crude was quoted down 14 cents at $55.35 a barrel, while U.S. crude futures eased 47 cents to $52.75.
Source: The Star