Petronas may buy controlling stakes in auto maker: Proton-EON transaction would fuel the debate on Kuala Lumpur's rescues of big companies

Article Abstract:

Malaysian state-owned oil firm Petroliam Nasional Bhd. (Petronas) is planning to buy a controlling stake in automaker Perusahaan Otomobil Nasional Bhd (Proton) and Proton's distributor Edaran Otomobil Nasional Bhd. (EON). Petronas will acquire both firms from Hicom Holdings for an estimated 1.3 bil ringgit, giving Petronas Hicom's 32% stake in EON and a 27.2% stake in Proton. Critics and economic observers believe that Petronas' investment in the two automobile firms is politically motivated since Proton is the brainchild of Malaysian prime minister Mahathir Mohamad. Petronas will buy into both firms using the net tangible assets per share basis.

Motor vehicles and car bodies, Financial management, Automobiles, Automobile Manufacturing, PETROLEUM AND COAL PRODUCTS, Petroleum, Petroleum and Coal Products Manufacturing, Investments, Petroleum industry, Automobile industry, Petroliam Nasional Bhd., Perusahaan Otomobil Nasional Bhd., Edaran Otomobil Nasional Bhd.

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Seeking monetary direction

Article Abstract:

Malaysian Prime Minister Mahathir Mohamad and the country's monetary authorities are recently in dispute over what monetary policy to implement to prevent recession. Mahathir favors the easing of monetary policy to restart growth while monetary officials are adamant to maintain high interest rates. Although some private economists believe Mahathir may have a point in his view to relax monetary policy, central bank Gov. Tan Sri Ahmad Mohamed Don maintains that high interest rates are essential to to ensure stability in the currency.

Comment:

Malaysia: PM Mahathir Mohamad & country's monetary authorities are recently in dispute over what monetary policy to implement

Public Finance Activities, Social procedures, Financial Administration-Natl Govt, Public finance, Article

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New judge may heal nation's tarnished court system

Article Abstract:

Malaysia's legal community is lauding the appointment of Mohamed Dzaiddin Abdullah as the chief justice of Federal Court. Experts hope the appointment will improve the image of judiciary, which has been marred by controversy.

Justice, Justice, Public Order, and Safety Activities, Executive changes & profiles, Officials and employees, Appointments, resignations and dismissals, Law, Courts, Abdullah, Mohamed Dzaiddin

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