MY palm oil

KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGV) is buying a 37 per cent stake in Indonesia's PT Eagle High Plantations Tbk from Rajawali Group for around US$745 million via cash and shares.

In its filing to Bursa Malaysia, FGV said in the first tranche, it plans to pay US$631.5 million (or RM2.3 billion) to buy a 30 per cent while the remaining 7 per cent stake will be settled via the issuance of new shares amounting to US$47 million.

Eagle High has landbank amounting to 419,006ha, of which 147,000ha are already planted.

FGV, which is among the world’s largest crude palm oil producer commanding some 7 per cent market share, will also buy 95 per cent of Rajawali Group's sugar cane estates and milling business for US$66.5 million.

FGV will pay US$174.5 million (or RM653.6 million) as a deposit or down payment for the proposed acquisitions which was forged in Jakarta yesterday.

PT Eagle High, which is listed on Jakarta stock exchange, is 65.5 per cent owned by PT Rajawali Corp which in turn is the investment vehicle of Peter Sondakh.

According to Forbes, Sondakh has a net worth of US$2.3 billion and is among Indonesia's Top 10 richest man.

The Rajawali Group's economic contribution stretches across telecommunications, hotels, cement, consumer goods, retail, department stores and transport in Indonesia.

Cash-rich FGV has been on the acquisition trail since its listing on Bursa Malaysia in June 2012.

Among the major acquisitions are the takeover of Pontian United Plantations Bhd for RM1.2 billion and Asia Plantation Ltd for RM628 million.

It also spent RM2.2 billion to buy the remaining 51 per cent stake in Felda Holdings Bhd from its substantial shareholder Koperasi Permodalan Felda Malaysia Bhd in October 2013. Felda Holdings owns the upstream assets.

FGV's latest purchase is 836.1ha of oil palm land from Golden Land Bhd for RM655 million cash.

KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGV) has assured shareholders that the company's financial health remains intact despite its acquisition spree, the latest being the RM2.8 billion deals with Indonesia's Rajawali Group, and falling earnings.

The FGV board came under scrutiny from its shareholders during a 6-hour annual general meeting yesterday. The long drawn meeting was also due to initial dissatisfaction over the increment in directors' fees to RM2.09 million in 2014 from RM2.04 million in 2013.

A couple of minority shareholders told Business Times that they were worried with the group's overall financial health and ability to pay out dividends.

Since its listing on Bursa Malaysia in June 2012, FGV had been on the acquisition trail. Among the major acquisitions are the takeover of Pontian United Plantations Bhd for RM1.2 billion and Asia Plantation Ltd for RM628 million.

It also spent RM2.2 billion to buy the remaining 51 per cent stake in Felda Holdings Bhd from its substantial shareholder Koperasi Permodalan Felda Malaysia Bhd in October 2013. Felda Holdings owns the upstream assets.

Earlier this month, FGV announced purchase of 9,800ha oil palm land from Golden Land Bhd for RM655 million cash.

Group president and chief executive officer Datuk Mohd Emir Mavani Abdullah, however, assured the RM2.8 billion acquisition into Rajawali's plantation arm would not burden FGV's financials.

FGV is buying Rajawali Group's 37 per cent stake in PT Eagle High Plantations Tbk for RM2.54 billion and its sugar assets, which consists of 47,745ha in Indonesia's Papua province for RM251 million.

"FGV will definitely need to raise funds for this deal. We'll structure in a way that it won't burden us," Emir told reporters after the company's annual general meeting here yesterday.

"FGV can afford this deal and continue to pay dividends to shareholders. We're keeping to our dividend policy of paying out at least 50 per cent of our net profits," he added.

FGV will pay US$174.5 million as a deposit for the proposed acquisitions. Emir said the deposit is fully refundable, should the deals fail to materialise.

He reiterated the acquisition of Rajawali Group's oil palm and sugar business would be a strategic fit to FGV's expansion plans.

"FGV is already in Indonesia and this planned partnership with Rajawali Group's subsidiaries will boost our presence there. FGV will soon open up a fertiliser facility in Indonesia," he said.

Emir said FGV may consider a controlling stake in Eagle High Plantations. "We're thinking about it but right now, we're in a process of doing a thorough due diligence. Then there is the extraordinary general meeting to be called to vote on this deal.

"We have not crossed the bridge yet. Let's wait for the process to run its due course," he said, adding the due diligence to be completed in one month.

Emir reiterated that FGV intends to sell its Canadian downstream operations in the next few months. “We have got some bidders; I can’t disclose who they are. It is in the interest of FGV to divest all non-performing and non-core assets,” he said.

Emir was appointed to his position in July 15, 2013 under a 2-year contract with an option to extend another year. When asked if his employment contract would be renewed, he replied: "It is being discussed by the board of FGV."

PARIS: French government minister Segolene Royal was forced to apologize yesterday after saying Nutella was harmful to the environment, a comment that triggered furore in the industry and in Italy where the food spread is made.

“A thousand apologies for the controversy over Nutella,” she wrote in a tweet on Wednesday afternoon. “I agree about highlighting progress (in sustainable palm oil production)."

Royal had earlier urged people to stop eating the hazelnut spread that is beloved of generations of schoolchildren because it is made from palm oil, which comes from oil palm plantations in southeast Asia.

"We have to replant a lot of trees because there is massive deforestation that also leads to global warming.

"We should stop eating Nutella, for example, because it's made with palm oil," she said in an interview on the French television network Canal+.

"Oil palms have replaced trees, and therefore caused considerable damage to the environment," she said.

Ferrero, the Italian chocolate company which produces the spread, should use products other than palm oil to make Nutella, she said.

France’s Alliance for Sustainable Palm Oil, an industry body, condemned her comments, saying producers and food companies were making progress on the environmental front.

Privately-owned Ferrero says on its website that its palm oil was sourced from environmentally-sustainable plantations. The company said that 100 per cent of its palm oil came from well-run estates in Malaysia, with the rest coming from Papua New Guinea, Indonesia and Brazil.

Agnese Renzi, the wife of Italy’s prime minister, was shown by Italian media ordering a pancake filled with the spread for her daughter Ester. The little girl cheerfully smiled and held up high a bottle of the Nutella spread.

Italian politicians had also reacted to Royal’s call for an unreasonable boycott.

Gian Luca Galletti, Italy’s environment minister, said Ms Royal’s criticism of Nutella was “baffling”, telling her to “leave Italian products alone”. Commenting on Twitter, he said: “I’ll be having bread and Nutella tonight for dinner”.

Roberto Calderoli, a senator with the centre-Right Northern League, a party whose defence of Italian values and products often verges on the xenophobic, also came to the defence of the chocolate spread.

“We grew up with Nutella and we’ll never give it up,” he said. “If the French don’t want to eat Nutella, too bad for them, they don’t know what they’re missing.”

Michele Anzaldi, a member of the ruling Democratic Party, said Ms Royal should apologise for her remarks, which he called “a grave blunder”.

The debate even made it to the front page of Italy’s respected and sober financial daily, Il Sole 24 Ore, which pointed out that palm oil was not just used in Nutella, but in a huge range of products, from biscuits and chocolate to ice cream.

In 2012, a group of French politicians tried to introduce a 300 per cent tax on palm oil, arguing that it was high in fat and that its cultivation resulted in the clearing of rainforest. The measure was defeated.

Nutella is Italy's national heritage. Four months ago, there was national mourning when Michele Ferrero, the patriarch of the eponymous chocolate conglomerate, died at the age of 89.

Ferrero was Italy’s richest man, with his family’s fortune estimated at around £15 billion.

In a tribute, Sergio Mattarella, Italy’s president, called the chocolate baron “a born entrepreneur”, praising him for introducing products such as Ferrero Rocher chocolates, Tic-Tacs and Kinder Surprise eggs.

It was Ferrero's father, a small-time pastry maker, who laid the groundwork for the Nutella recipe. During the Second World War, when cocoa was in short supply, he hit on the idea of mixing in hazelnuts, which are plentiful in northern Italy, where the company is based.

Over here in Malaysia, the palm oil council chief executive officer Tan Sri Yusof Basiron said that the palm is a healthy oil and all natural.

Malaysia's booth stand at the Expo 2015, explained to the public there that it is illegal for European food manufacturers to go on labelling "No palm oil" on their products.

Yusof on his twitter, too, questioned the French's Minister's wrongful act of defaming palm oil's reputation.

Unknown to many, oil palm trees are the most environmentally-friendly oil crop compared to other variants such as rapeseed, sunflower and soil.

This is because on a per-litre basis, palm oil production requires less energy, land and fewer fertilisers or pesticide usage compared to other vegetable oils.

Oil palms have a productive lifespan of 20 to 30 years while its competitors like rapeseed, soya and sunflower need to be uprooted every four months during harvest and that contributes to soil erosion.

More importantly, Yusof highlighted that a study from Fonds Francais Alimentation et Santé finds that replacing palm oil with partially-hydrogenated soft oils is a bad option for consumers as it would potentially lead to more consumption of the deadly trans fat.

PARIS/MILAN: France's Ecology Minister Segolene Royal has apologised for telling people to boycott Nutella and misleading the public into believing that oil palm cultivation is the main cause of deforestation and climate change.

"A thousand apologies for the row over Nutella," she wrote on her official Twitter account.

The mea culpa related to comments she made on French television earlier this week that "we should stop eating Nutella... because it's made with palm oil" - an ingredient that ensures the soft but not liquid consistency of the popular chocolate-hazelnut spread.

In the interview, she argued that oil palm plantations were supplanting forests, leading to deforestation and causing "considerable damage to the environment".

Her half truth assertions drew a fierce uproar from Italy, where Ferrero, the company that makes Nutella, is based.

Ferrero stressed all its palm oil - which comes mainly from Malaysia - is sourced in a responsible way.

Italian politicians and media broadened the attack on what they saw as an unimpeachable national product.

"Segolene Royal should leave Italian products alone. The menu tonight: bread and Nutella," Italy's environment minister, Gian Luca Galletti, said in a tweet.

The wife of Italian Prime Minister Matteo Renzi, Agnese Renzi, was even photographed going to a 'Nutella concept bar' at an Expo fair in Milan with her daughter and ordering a Nutella-and-cream crepe.

Several Italian politicians called on Royal to apologise, while the Italian business newspaper Il Sole 24 Ore said the French minister's "crusade" was wrong-headed and a Nutella boycott would do nothing against deforestation.

KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGV) which recently merged its marketing units into FGV Trading Sdn Bhd aims to sell and trade 4.7 million tonnes of palm oil by year-end.

FGV head of trading & marketing and logistics cluster Datuk Khairil Anuar Aziz said FGV Trading has, in the last four months traded 1.3 million tonnes of crude palm oil (CPO).

"This is a good achievement for a new company. By the end of the year, We aim to trade 4.7 million tonnes of CPO, of which 60 per cent are from our own estates while the rest from external sources," he said in a phone interview yesterday.

Khairil said FGV's traditional clients are China, Japan, Bangladesh, India and Pakistan, as well as the Indo-China region such as Vietnam, Myanmar, Cambodia and Laos.

As the group expands through acquisitions, it will be selling more oil to new markets in West Asia, the Mediterranean, North Africa, Eastern Europe and the Balkan regions.

"For a start, our new team is trading CPO, processed palm oil and crude palm kernel oil.

By next quarter we're hopeful of adding on to our lauric oils profile by sourcing coconut oil from the Phillipines. We seek to better serve our oleochemical and detergent-making clients," he told Business Times.

"As we add on more products, we aim for our traders become more adept. In the mid-term, we would like to also trade rival oils such as soyabean, rapeseed and sunflower. We want to raise our game to be on par with other global vegetable oils traders," he added.

Moving on the group's logistics operations, Khairil said Felda Transport Services Sdn Bhd carries up to seven million tonnes of CPO products and this will increase in line with more estates being acquired.

Felda-Johore Bulkers Sdn Bhd remains the group's largest and modern vegetable oils storage in the world, capable of handling eight million tonnes per annum with a storage capacity of over 800,000 tonnes.

"We are strengthening our logistics through Logistics Centre of Excellence so as to optimise our transport asset usage and efficiency,” he said.

Besides transporting palm oil, FGV Transport also move hard commodities such as steel bars, petrol and diesel. It plans on bidding for more oil and gas transportation jobs at Rapid Pengerang, Johor.

To date, Khairil said the moving of hard commodities is contributing 30 per cent of its logistic revenue.

In an effort to save thousands of lives each year, the Food and Drug Administration (FDA) has announced a complete ban on trans fat in food across USA by mid-2018.

Food manufacturers will have three years to completely phase out the deadly trans fat from their ready-to-serve meals and snacks.

Trans fat is a common ingredient in processed foods — like doughnuts, pies, microwave popcorn, and frozen pizza — that is a cheap way to prolong a product’s shelf life. The ban comes with ample scientific evidence that trans fats are not healthy.

FDA officials say even very small quantities of trans fats can add up to dangerous levels and will not permit the ingredient without an exemption.

“Doctors estimate that eradicating trans fats would prevent 20,000 heart attacks and 7,000 deaths from heart attacks per year,” cardiologist Suzanne Steinbaum, director of women's heart health at Lenox Hill Hospital in New York, told USA Today.

This is a huge move for the FDA — one that will make it easier for people in America to eat healthier.

It has been almost a decade since former New York City mayor Michael Bloomberg led the charge to ban trans fats. This deadly ingredient had been outlawed in NYC restaurants since 2006.

Seven years later, the Obama administration has seen the wisdom in that course, declaring that partially hydrogenated oils — a big source of trans-fats — are not generally safe.

“It’s about time,” cheered Dr. Thomas Farley, Bloomberg’s health commissioner and author of the forthcoming book “Saving Gotham,” on the city’s food-policing policies. “Trans-fat is an artificial chemical,” he said. “It never should have gotten into our food supply in the first place. It’s toxic over the long term and it’s easy to get rid of.”

Unlike his attempt to limit sugary drinks, Bloomberg was successful in sounding the first municipal alarm on trans-fat and banned it from restaurant cooking.

Bloomberg’s fat ban — among the many health crusades he undertook during his three terms as mayor — was so controversial at the time, the National Restaurant Association called it “a misguided attempt at social engineering by a group of physicians who don’t understand the restaurant industry.”

Some groups such as the the Popcorn Institute, the National Frozen Pizza Institute and the International Chewing Gum Association are complaining that the FDA trans fat ban infringes upon their freedom of choice.

A restaurateur, who is used to using partially-hydrogenated soybean and corn oils in margarine and shortenings, expressed his constitutional rights to freedom of choice over health concerns.

He said, "I would have been in favor of us having to post stickers that say 'eating this could be hazardous to your health' and letting the customers decide. Cigarettes are still legal and yet trans fats or shortenings are illegal. Go figure."

American food giants General Mills and ConAgra, who are heavily invested in the soft oils value chain, have sought to persuade the FDA to impose very low caps on partially-hydrogenated oils, rather than a total ban.

FDA, however, is adamant on prioritising the public's health concerns and say the decision stays to completely outlaw the deadly trans fat by mid-2018.

After the Big Apple ban in 2006, some food companies in New York region had been voluntarily phasing out partially hydrogenated oils.

A 2012 study, funded in part by New York City, found trans-fat consumption had declined by a “substantial” amount in fast food chains once the regulation went into effect.

“Former Mayor Bloomberg is a leader in this public health battle and the measure in New York really showed that this could be done,” said Jim O’Hara, director of health promotion policy at the Center for Science in the Public Interest.

Still, trans-fats are found in supermarket foods such as microwave popcorn, frosting, pie crusts and margarine. “This is going to be a huge win for the public health,” O’Hara said.

My father has always been there for me through all my painful and humiliating setbacks.

I remember asking my mum, a long time ago, why she married dad. She replied, "your dad is intelligent."

In my younger days I didn't think my dad was clever. I assumed all my classmates' fathers, like mine, had sat down at the dinner table and go through math and science homework with them. I was wrong.

My mum is right. Dad is clever. He would explain scientific formulas and economic development in easy language using analogies and examples.

Most of the time, I'm able to understand or spot logical sequences. From there, I find many confusing problems or situations I face become less daunting.

On life experiences, one of the most important thing I learnt from my dad is to think positive. This is because optimism is the foundation of courage and confidence in ourselves to do better than previously.

As I tap on the computer keyboard and reflect on my father's contributions to Malaysia's engineering feats throughout his career, I'm inspired to serve my country in the same measure as a journalist.

Electricity tariff in Peninsular Malaysia, Sabah and Labuan stays until the end of this year, despite power generation companies having to pay higher gas prices.

Today, the Energy, Green Technology and Water Ministry said, effective July 2015, the price of piped natural gas in the peninsula go up RM1.50 per million British thermal unit (MMBtu) to RM16.70 per MMBtu from RM15.20 per MMBtu.

The average electricity tariff, however, remains the same at 36.28 sen per kilowatt hour (kWh) for Peninsular Malaysia, Sabah and Labuan until the end of the year.

This is because via the Imbalance Cost Pass-Through (ICPT) mechanism, Tenaga Nasional Bhd (TNB) will absorb the 2.25 sen per kilowatt-hour (kWh) for Peninsular Malaysia and 1.20 sen per kWh average downward revise of tariff for Sabah and Labuan.

“In other words, the increase of fuel price will not impact the electricity tariff and the said rebate will be able to continue, thanks to the RM1.08 billion cost saving from ICPT for January to June 2015 period,” the ministry said.

“This sum of amount also includes the RM300 million cost saving from the renegotiation of power purchase agreement with first generation independent power producers,” it added.

ICPT is a mechanism implemented since January 2014, which allows the government to pass excessive fuel costs to consumer, which in this case, the previous tariff hike was more than Tenaga Nasional Bhd needed due to falling coal prices and an improved generation mix.

The ministry said the cost saving in the peninsula also resulted from the higher usage of coal-fired power, where prices are relatively lower compared with fuel such as piped natural gas and liquefied natural gas.

Since ICPT is not implemented in Sabah and Labuan, the federal government will continue subsidising the fuel cost and electricity tariff that are estimated to amount to RM685 million this year for these two areas.

“The government will continue to monitor the cost of fuel and other power generation cost until January 2016, when a new review will be conducted,” the ministry said.

According to the Electricity Supply Act 1990, Sarawak's power supply and tariff are not under the ministry’s purview.

KUALA LUMPUR: Malaysia planters with estates in Indonesia are bracing for painful times ahead as the republic starts charging export levies on palm oil to fund biodiesel subsidies.

Last week, Indonesia's Finance Minister Bambang Brodjonegoro said, effective July 1, Indonesia will collect palm oil export levies ranging from US$10 to US$50 per tonne, depending on the product variants, if palm oil prices fall below US$750 per tonne.

The levy for crude palm oil (CPO) is set at US$50 per tonne, while refined products like palm cooking oil, palm olein and biodiesel will be subjected to levies between US$20 and US$30 per tonne.

Indonesian Palm Oil Producers Association or Gabungan Pengusaha Kelapa Sawit Indonesia (Gapki) told Business Times that there had been rising palm oil shipments out of Indonesia in the past couple of months as exporters anticipate the implementation of the levy.

In a telephone interview from Jakarta yesterday, Gapki executive director Fadhil Hasan said all members, including Malaysia investors in Indonesia, are fully aware of the policy and justification for the levy.

“The short-term effect would be burdensome for oil palm planters but we should also look at the policy impact for the longer term. This levy will mainly go to biodiesel subsidies. It will reduce Indonesia's oil imports and hopefully, provide support to palm oil prices,” he said.

"Yes, in these couple of months palm oil shipments out from Indonesia had been on the rise as our members anticipate implementation of this new levy," he added.

CIMB Investment Bank regional head of plantations research Ivy Ng said the levies will impact Malaysia planters with estates in Indonesia such as Sime Darby Bhd, Kuala Lumpur Kepong Bhd, IOI Corp Bhd and Genting Plantations Bhd.

The move is neutral on integrated palm oil players such as PT Salim Invomas Pratama, Golden Agri-Resources Ltd and First Resources Ltd.

This is short term negative for pure upstream Indonesian planters like PT Astra Agro Lestari Tbk, PT PP London Sumatra Indonesia Tbk, PT Eagle High Plantations Tbk and PT Sumber Air Mas Pratama.

"This policy is medium term positive for CPO producers if Indonesia can significantly boost biodiesel demand to at least 4 million tonnes and shore up CPO prices significantly. We maintain our neutral rating on the sector," she said.

Indonesia has launched a special public service agency (or Badan Layanan Umum) to take charge of the new levies. It is headed by a Board of Commissioners which will supervise executives in the levy usage.

Fadhil said Gapki president Joko Supriyonno had been appointed as one of the commissioners and the levy collection mechanism will operate like an asset management company for return on investments that is based on good corporate governance.

Gapki forecasted that this year Indonesia is set to produce 32.5 million tonnes of CPO. Around 10 million tonnes is usually consumed in the country, of which close to half that amount goes to biodiesel usage.

Four months ago, Indonesia announced increment in biofuel subsidies from IDR 1,500 per litre to IDR 4,000 to compensate biofuel producers for the price differences between regular diesel and biodiesel due to low petroleum prices since mid-2014.

In April, the mandatory biofuel content in diesel blending was raised from 10 per cent to 15. A big chunk of this palm oil levy to be collected will go to biodiesel subsidies, thus ensuring better compliance to the B15 mandate.

Fadhil noted a portion of this levy will also go to replanting, research and human resources development in the Indonesian palm oil industry.

It must be highlighted that when palm oil price is higher than the US$750 per tonne threshold, this levy is scrapped. This is a relief for oil palm planters in Indonesia as they will not have to face a double burden, in times of higher palm oil prices.

When prices exceed US$750 per tonne, oil palm planters pay CPO export taxes of between 7.5 and 22.5 per cent if they choose to ship out CPO. Should oil palm planters sell their CPO to local refiners, they are not not subjected to the CPO export tax.

People's Bank of China (PBOC) governor Zhou Xiaochuan speaks on the internationalisation of the renminbi.

This is an excerpt from http://www.centralbanking.com/central-banking/interview/2411663/pbocs-zhou-xiaochuan-on-interest-rate-reform-and-renminbi-internationalisation

Q: What is the proper pace and timing for the globalisation of the renminbi?

A: Firstly, as renminbi internationalisation or the use of the currency in cross-border trade and investment settlement started from a very low level in a short time, the growth rate looks very high. But, in fact, the share of renminbi in global trade and investment settlement is still relatively low. There was a development opportunity for renminbi globalisation presented by the outbreak of the global financial crisis.

After the crisis, people felt unsatisfied and lacked confidence in the existing global monetary system and so began to use the renminbi. However, we still need to do a lot of ‘homework' before we can realise the globalisation of renminbi usage.

In the last few years, we have mainly focused on removing unnecessary restrictions on the use of the Chinese currency, including changing some laws and regulations. We should also eliminate discrimination against the renminbi, so it can circulate in all the areas where hard currencies are active. This work remains unfinished.

So, overall, we are a long way from renminbi globalisation and need in particular to increase the renminbi's share in cross-border trade and investment settlement.

Q: What is the role of the PBOC?

A: The People's Bank of China will not ‘overpromote' the use of the renminbi. Instead, it will use its policies to create the conditions that support confidence in the acceptance of the renminbi in the international community.

The choice of whether or not to use renminbi will be left to market participants. Gradually, the barriers preventing its use will be eliminated for parties that want to use it. Another important issue included in our ‘homework' is to steadily promote and gradually realise the convertibility of renminbi capital accounts.

So the convenience of the renminbi in global use and people's confidence in it will substantially increase. From this perspective, we need to finish our policy reform first. But there is no prearranged pace or timeline for promoting the use of the currency.

Q: What is Hong Kong's future role in RMB globalisation?

A: Hong Kong's renminbi business is developing soundly, and is playing a central role not only in Hong Kong but also in the world. Hong Kong's renminbi business can help to promote the use of renminbi in many countries, especially South-east Asian countries.

Many have shown an interest in promoting renminbi business, which is good and has brought Hong Kong many opportunities. Other places also aspire to be the ‘centre'.

But the real ‘centre' should be recognised by the market because of its actual advantages and good levels of service. Hong Kong has obvious advantages over other places. Hong Kong has a tradition of being a financial hub, and has a world-class financial market, in particular its advanced equity market. Therefore, Hong Kong's position will be strengthened.

KUALA LUMPUR: IOI Corp Bhd will soon quote its palm oil shipments to China in renminbi to help reduce currency risk and hedging costs, says executive chairman Tan Sri Lee Shin Cheng.

Currently, palm oil sold to China is quoted in US dollars and then converted into renminbi.

Similarly, when Malaysia import goods from China, the cargoes are quoted in the greenback before they are converted back to ringgit.

"Now that there is a renminbi clearing house in Kuala Lumpur, we need not convert currencies that many times. There will be some cost savings," Lee told Business Times here yesterday at the sidelines of the Malaysia-China Economic Conference themed 'One Belt One Road' organised by the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM).

When asked for a timeline for IOI Corp to quote its palm oil shipments to China in renminbi, Lee said: "very soon."

For the past decade, China has been Malaysia's biggest palm oil buyer purchasing nearly four million tonnes of this kitchen staple to feed its burgeoning population of 1.36 billion.

At a media briefing, Malaysia External Trade Development Corp (Matrade) urged exporters to quote renminbi in their trade with China to help mitigate the weakness of ringgit against the US dollar.

Matrade chief executive officer Datuk Dzulkifli Mahmud noted the renminbi is a stable currency when exchanged from the ringgit. "Exporters doing business with China can benefit from using the renminbi as it is more consistent."

Also present at the briefing were Malaysian Investment Development Authority Deputy chief executive officer Datuk Phang Ah Tong and Bank of China (Malaysia) Bhd chief executive officer Wang Hong Wei.

The renminbi overtook the euro in 2013 as the world’s second-most used in trade finance and was the fifth most-popular for global payments, according to the Society for Worldwide Interbank Financial Telecommunications (SWIFT).

Two months ago, China's central bank People's Bank of China noted Malaysia is the second Asean nation to host a renminbi clearing house, after Singapore.

Commercial entity Bank of China (Malaysia) Bhd was appointed by both central banks of China and Malaysia to clear renminbi trades in Kuala Lumpur. The renminbi is now the first foreign currency to be included in the Malaysian clearing system.

By having a clearing house for renminbi in Kuala Lumpur, banks in Malaysia will have direct access to onshore renminbi markets in China without having to route their transactions through a mainland lender.

Dzulkifli noted last year, Malaysia's biggest export component to China was electrical and electronics, followed by chemicals and palm oil. China is Malaysia's largest trade partner, while Malaysia is China's biggest trade partner within Asean. Last year, bilateral trade exceeded US$100 billion. "We have set a goal of reaching US$160 billion by 2017," he said.

China's One Belt and One Road Initiative, a reference to the Silk Road Economic Belt and the 21st Century Maritime Silk Road, aims to revive the ancient trade route between Asia and Europe. The network passes through over 60 countries and regions, with a total population of 4.4 billion.

Mida's Phang noted China's collaboration with so many countries along this Silk Road Economic Belt poses fierce competition in drawing in investments as well as strategic opportunities for Malaysia. "We must be serious in identifying our needs and offerings in order for business collaborations between China and Malaysia to be mutually beneficial, he added.

ACCCIM president Datuk Lim Kok Cheong urged the government to fully exempt visa for business visitors instead of the current practice of confining it to group tours from China. “China estimates 500 million of its people step out of the country to tour the world. Last year, the total number of Chinese tourists leaving China surpassed 100 million," said Lim.

There are a lot fewer trans fats in today's average American's diet than there were a decade ago, but the Obama administration is moving toward getting rid of them almost entirely.

The Food and Drug Administration (FDA) says Americans still eat about a gram of trans fat every day, and phasing it out could prevent 20,000 heart attacks and 7,000 deaths each year.

The FDA originally proposed in November 2013 to phase out artificial trans fats over time.

To phase trans fat out, the FDA made a preliminary determination in 2013 that trans fats no longer fall in the agency's "generally recognized as safe" category, which covers thousands of additives that manufacturers can add to foods without FDA review.

Once trans fats are off that list, any company that wants to use them would have to petition the agency to allow it. That would phase them out almost completely, since not many uses are likely to be allowed.

The FDA reiterated there are no health benefits to trans fats, which are used in processing food and in restaurants, usually to improve texture, shelf life or flavor.

Trans fats can raise levels of "bad" cholesterol and lower "good" cholesterol, increasing the risk of heart disease, the leading cause of death in the United States. Trans fats are widely considered the worst kind for your heart, even worse than saturated fats, which also can contribute to heart disease.

The fats are created when hydrogen is added to vegetable oil to make it more solid, which is why they are often called partially hydrogenated oils.

The FDA highlighted this ban is not targeted at trans fats that occur naturally in some meat and dairy products, because they are not considered a major public health threat on their own.

Over the years, trans fats have been most plentiful in foods like frostings, which need solid fat for texture, or in those that need a longer shelf life or flavor enhancement. Popular foods that have historically contained trans fats are pie crusts, biscuits, microwave popcorn, coffee creamers, frozen pizza, refrigerated dough, vegetable shortenings and stick margarines.

Trans fats also have been used by restaurants for frying. Many larger chains have stopped using them, but smaller restaurants may still get food containing trans fats from suppliers.

America's Grocery Manufacturers Association, the main trade group for the food industry, says that food manufacturers have voluntarily lowered the amounts of trans fats in their products by 86 percent since 2003. Food companies are using other types of oils to replace them.

That reduction was helped along by FDA's decision to force labeling of trans fats on food packages in 2006. There have also been local laws, like one in New York City, banning the fats. Retailers like Wal-Mart have reduced the amount they sell.

KUALA LUMPUR: Mercedes-Benz Malaysia (MBM), having earlier raised concerns that its diesel makes will not be able to use B10 biodiesel, has now made an about turn.

In a statement yesterday, MBM declared Malaysia's B10 biodiesel full compatibility is strictly confined to cars that are officially distributed by itself and it cannot say for sure for parallel imported Mercerdes Benz.

MBM president and chief executive Roland Folger said: After initially stating that the B10 biodiesel blend required further consideration, we are now pleased to inform our customers that the B10 biodesel is suitable for all diesel vehicles sold by Mercedes-Benz Malaysia.”

Folger explained that the company has carefully evaluated the influence of B10 biodiesel in their current diesel vehicles and found that the cars ran smoothly and safely without showing premature component wear.

The service interval for diesel models is also kept at 12,000 km.

"That said, the B10 biodiesel compatibility is only for Mercedes-Benz passenger cars, whereas the Fuso truck range remains incompatible," he added.

Last month, Plantation Industries and Commodities Minister Datuk Amar Douglas Uggah Embas announced raising the biodiesel mandate from B7 to B10 in October 2015.

The B10 biodiesel blend is made up of 10 per cent palm methyl ester and 90 per cent petroleum diesel. Production of the biodiesel will see an increase in domestic consumption of palm oil to a million tonnes annually.

Following the government's announcement to raise biodiesel mandate, BMW Group Malaysia protested and said its tests worldwide have found “technical challenges” running the B10 biodiesel blend in engines.

In response, the Malaysia Palm Oil Council (MPOC) chief executive officer Tan Sri Yusof Basiron issued a couple of tweets.

The first tweet stated "Not aware of BMW conducting palm biodiesel trials on cars in Malaysia. Their statement on B10 as not suitable may not be backed by science."

And his second tweet stated "BMW Malaysia need to show the results of their trials on using palm biodiesel on cars in Malaysia. Trials using other oils are not relevant."

Despite palm oil industry leader (MPOC) questioning BMW Malaysia's motive in protesting against Malaysia's national agenda of B10, other carmakers like Toyota and Isuzu went on to echo the same sentiment as BMW Malaysia.

Volkswagen Group Malaysia even claimed that running B10 on its diesel engines will have adverse effects as well as void the warranty. Mercedes-Benz urged the Malaysian government to reconsider implementation of the B10 biodiesel policy.

In a separate interview with Business Times, Felda Global Ventures Holdings Bhd group president and chief executive Datuk Mohd Emir Mavani Abdullah pledge full support to MPOC.

"We ourselves at FGV have been using B30, which is of a higher biodiesel blend, in our fleet of 100 Volvo trucks for six months. So far, there are no engine problems. We fully support MPOC statements and the government's policy in raising the biodiesel blend to B10 from October 2015," Emir said.

Nutritionist Lisa Lynn used to struggle with her weight. She tried every diet and worked out for hours but still couldn’t drop the pounds. So, she started researching ways to boost a slow and sluggish metabolism.

She realised that good nutrition and exercise help get the look she wanted as well as promote overall wellness. She told Baltimore’s CBS news viewers that eating healthier is simple as making a few food swaps. For example saying goodbye to trans fats and hello to Malaysian palm oil.

When she was out for breakfast before going into the TV studio, she saw a family using buttery spread made with partially hydrogenated oils. This contains harmful trans fats.

"We need to get rid of this stuff! It’s killing our country. Swap it out with a healthier spread made with palm oil. This is nature’s gift to us," Lisa said.

She explained that palm oil is all natural and do not contain any of the artificial trans fat. Palm oil is also rich in vitamin E which supports brain health. It also helps guard against stroke damage.

"I love to mix palm oil into my family’s brown rice or drizzle it across some baked tilapia," Lisa said.

She brought an artery model to the set to demonstrate how trans fat impacts our health. "Trans fat raises your ‘bad’ LDL cholesterol and lowers your ‘good’ cholesterol. This increases your risk of heart disease and stroke," she said.

LDL is the material that helps form the cholesterol plaques which may clog our arteries. She suggested families start encouraging healthy food choices early in life. Poor lifestyle choices in childhood can actually lead to a lifetime of health concerns.

"My suggestion is to throw out any trans fats-containing foods in your home. Read labels for healthier options, such as the all natural Malaysian palm oil," she said.

KUALA LUMPUR: Sovereign wealth, pension, pilgrimage and trusts funds such as Khazanah Nasional Bhd, the Employees Provident Fund (EPF), Kumpulan Wang Persaraan (KWAP), Permodalan Nasional Bhd (PNB), Lembaga Tabung Angkatan Tentera (LTAT) and Lembaga Tabung Haji, have teamed up to champion corporate governance and shareholder activism.

These "big boys,” which are usually substantial shareholders in companies listed on Bursa Malaysia, established the Institutional Investor Council Malaysia (IICM), with RM100,000 start up administrative fund extended by the Securities Commission.

This is a follow up of the Malaysian Code for Institutional Investors (Code) requiring institutional investors to promote good governance in the companies they place their trust in.

The Code encourages the institutional investors to disclose their stewardship responsibilities, monitor their investee companies, regularly engage with decision makers of investee companies, adopt a robust policy on managing conflicts of interests, incorporate good governance and sustained investment considerations and publish their voting policy.

KWAP chief executive officer Wan Kamaruzaman Wan Ahmad was appointed chairman of this newly set up IICM.

Deputy Finance Minister Ahmad Maslan announced in Parliament yesterday Bank Negara Malaysia’s representative is no longer part of the Retirement Fund Incorporated’s (KWAP) investment panel as proposed in the amendment of the KWAP Act 2007.

In response to this good governance development, Wan Kamaruzaman confirmed Bank Negara Malaysia's representative is still part of KWAP’s board of directors, just not in the investment panel.

"The management of the pension fund, investment and information of retirees being kept confidential has also been clearly stated in the recent law amendment," he said. KWAP manages a pension fund for 711,000 government retirees amounting to RM115 billion.

Minority Shareholder Watchdog Group (MSWG) chief executive officer Rita Benoy Bushon, who is also council member of IICM, is the secretariat head.

Wan Kamaruzaman noted IICM is made up of 15 committee members and decisions are voted by majority. "We are all equal in this council, there is no veto power entrusted to any committee member. The quorum is set at five committee members."

Apart from KWAP and MSWG, other council members include Employees Provident Fund deputy chief executive officer (Investment) Mohamad Nasir Ab Latif, Permodalan Nasional Bhd chief strategy officer Datin Paduka Kartini Abdul Manaf, Lembaga Tabung Angkatan Tentera deputy chief executive Datuk Zakaria Sharif, Federation of Investment Managers Malaysia chief executive officer Nazaruddin Othman, Lembaga Tabung Haji group deputy managing director Datuk Johan Abdullah, Life Insurance Association of Malaysia president Toi See Jong, Malaysian Takaful Association deputy chairman Muhammad Fikri Mohamad Rawi and Private Pension Administrator chief executive officer Datuk Steve Ong.

The private sector is represented by Gerald Ambrose, chief executive of Aberdeen Islamic Asset Management Sdn Bhd and Dr Hans-Christoph Hirt, director of Hermes Investment Management/ Hermes Equity Ownership Services.

Everyone has layers of fat under the skin. So, even thin people can have cellulite. Some people go to beauty salons for herbal body wraps to even out the appearance of cellulite.

Appearing on KTTV’s Good Day Los Angeles, Hollywood beauty and nutraceutical expert Scott-Vincent Borba revealed his cellulite-reducing recipe made with palm oil from Malaysia.

By combining palm oil with a little cayenne pepper, Crisco and collagen capsules, Borba created a do-it-yourself cream out of ingredients found in many of our kitchen.

Once it's blended, Borba tells you to spread this 'edible moisturising cream' on your cellulite skin area and wrap with cling film for a good 10-minute soak-in.

Borba, who has worked with Hollywood beauties like Mila Kunis, Jennifer Love Hewitt, Nancy O’Dell and Ashley Green, believes in leveraging common, all-natural ingredients – both inside and outside – for stunning results.

Borba uses natural ingredients for everything from age-reversing foods to fabulous home-made facials. He loves to convert his celebrity clients into “beauty foodies” and to share these same trade secrets with the public.

It all starts with nutrition. “By maintaining a good diet, it helps balance our hormones and give our body the nutrients it needs to fight stress and power itself,” he says.

In addition to using Malaysian palm oil as a powerful beauty enhancer, for example, he recommends cooking with it:-

1. Palm oil is harvested from the oil palm, the world's most land efficient oil crop.
2. Palm oil is all natural and do not contain the deadly trans-fat.
3. Palm oil is good for our brain and heart health.
4. Palm oil remains stable in high heat stir-fry dishes, unlike olive oil.
5. Palm oil vitamin E protects our skin from oxidative stress.

For off the shelves toiletries, Borba noted palm-based oleochemicals are a favoured ingredient in hair and skin products because it helps to preserve our body’s natural oils.

Palm oil's abundant vitamin E tocotrienols are powerful antioxidants.

Researchers believe palm tocotrienols help protect our skin against UV damage and premature aging.

It’s almost like having sunscreen from the inside out.

This is why palm tocotrienols are increasingly formulated into anti-aging lotions, skin foundations, shampoos and soaps.

Hey! everybody, It's Dr Johnny Bowden and I'm sitting here with my friend Chef Gerard Viverito, one of my favourite chefs in the world.

Today we're going to bust some myths about cooking oils. I really love a chance to talk to a chef about this because usually we approach this stuff, in terms of nutrition, which oils are good and which ones are bad.

It's really interesting to talk to you to find out which ones are good for cooking, good for frying, good for sautéing and which ones we should use to drizzle.

So, I really want to get into the myths about cooking oils ... which ones are good, which ones are bad. I've lined all these oils up here and I want your take on them. And I'll give my take on them.

The reason I hate these stuff is that these soft oils are not only highly processed. There is nothing that possibly remains in there that could possibly be useful to the human body.

It is very high in Omega 6 fats. Now, Omega 6 fats are not necessarily bad by themselves. The problem is when we eat too many Omega 6 fats and not enough Omega 3 fats. We set ourselves up for inflammation. That is the tri-factor of inflammatory response ... high Omega 6, low Omega 3. This stuff is in just about in every processed food in the world. It's just cheap, junky vegetable oil, it's not good for us.

Sadly, the largest segment of the dining industry tends to be the quick-service casual and the fast foods .. and these are what is being used.

Palm oil used to be more of a specialty oil in this country. But worldwide, if I'm not mistaken right now, it is the largest consumed oil on the planet. You know, most people were very ego-centric.

As Americans, we think about corn being subsidised .. you know, Nebraska and the whole Midwest is all centred on corn and that is all we look at. We don't realise soy bean oil and palm oil are the two biggest players on the planet.

That red comes from all the carotenoids, the vitamin A. It's a lovely oil. You can go so high on the heat factor.

As a chef, I look at these as a smoke-point. You know, I like to cook as quickly into the pan and out of the pan possible. How fast can I get it on the grill and off the grill? And I use really high heat. I want to sear in the flavours. I want to lock in the nutrients. I don't want to dry out my food. Excellent choice for it!

Well, this is one of the reasons that drives me absolutely nuts. We made the switch from some of the saturated fats to canola oil, which does not stand up to high heat well at all. When it is processed with high heat, the way it is in almost all fastfood restaurants. They use it over and over, they re-heat and re-heat. It forms carcinogenic compounds and trans fat.

These are the worst oil to use for frying. The best oils are the saturated fats like the coconut oil and palm oil because they stand up beautifully to heat. They don't form any really negative compounds that are bad for our bodies.

We're talking about oils that have been used in Old World Europe, Asia, Southeast Asia and Africa.

Well, I guess, we should mention. All corn in United States is not organic. It's GMO. I know a lot of people are concerned. I think, rightfully so, about the source of foods that are GMO like soy beans and corn. As far as I'm concerned, we don't need these stuff. And we can do a very good job of cooking and flavouring with some of these healthier oils on this side.

It's kind of like an uphill battle to re-educate the public. We demonise these fats ... palm oil and coconut oil. We demonise them for so long that people naturally think this is what clogs our arteries. It's just not true, folks. It's not true at all.

Well, we're a nation that loves to latch on to fear. All it takes is one person with the loudest, the most well-paid spokesperson, screaming from a tall building that, you know, you're going to die from eating this or that.

That's what we latch onto. To educate yourself is hard. Getting an education is hard. People don't want to study, people don't want to go to school.

A little bit of education goes a long way. It'll make your food taste better, it'll make your dishes looks better. Everything will be brighter, you'll feel healthier. And it's better for you. Glad that we busted some of the myths having to do with oils.

KUALA LUMPUR: Since Malaysia is appointed a trading hub for China’s currency, businesses here have greater flexibility to trade with China, said Bank of China (Malaysia) Bhd chief executive officer Wang Hongwei.

As long as the US dollar remains the trade currency of choice, many transactions will continue to require a three way conversion, from the ringgit to the US dollar to renminbi with a loss of basis points at each conversion.

“There’s savings to be reaped from direct conversion between the ringgit and renminbi.

Businesses in Malaysia can now open bank accounts in renminbi and trade directly,” Wang told Business Times in an interview.

Currently, companies in Malaysia buying from and selling to China have to convert the funds used to finance those deals into an intermediary – usually US dollar – an extra step that adds costs.

For businesses in China, receiving payment in renminbi will become cheaper and easier, and the ability to negotiate better settlement terms will reduce operating costs. Similarly, businesses taking in imports from China are wondering if savings from direct conversion between the ringgit and renminbi could be passed on to consumers here in cheaper prices.

Conversely, Malaysian exporters shipping their products into China want to be able to sell at better valuation when quoted in Renminbi.

Despite the advantages offered by direct transactions with the renminbi, years of familiarity dealing with the US dollar are not likely to be replaced overnight. Many businesses seemed to prefer the certainty of the familiar over the promises of the new.

Also, there is lack of awareness that changing to renminbi can be a source of competitive advantage, or that their ability to negotiate discounts and settlement terms may reduce operating costs – with flow-on effects to working capital management.

Wang noted that many customers do not seem to be aware of discounts they can negotiate if they are prepared to invoice and settle in renminbi. “Both Malaysian and Chinese corporates appear to be waiting for the other to initiate a change to invoicing in bilateral trade,” he said.

According to Bank Negara Malaysia, only 1.3 per cent of China-Malaysia bilateral trade in 2014 were invoiced and settled in renminbi. Given that less than 2 per cent of Malaysian companies transact in Renminbi, compared with a global average of 22 per cent, there is real scope for growth, especially when China is Malaysia’s biggest trading partner.

According to the Society for Worldwide Interbank Financial Telecommunications (SWIFT), the renminbi overtook the euro in 2013 as the world’s second-most used in trade finance and is now the fifth most-popular for global payments.

SWIFT connects more than 9,700 banking organisations, securities institutions and corporate customers in 209 countries.

Renminbi clearing houses outside China are seen as a major tool in promoting internationalisation of the Chinese currency. The first global settlement hub was created in Hong Kong in 2003. Todate, China has authorised 15 overseas renminbi clearing houses.

In April 2015, China's central bank People's Bank of China appointed Malaysia as the second Asean nation to host a renminbi clearing house, after Singapore. Commercial entity Bank of China in Kuala Lumpur was the chosen one.

This arrangement is backed by 180 billion renminbi currency swap between People's Bank of China and Bank Negara Malaysia until 2018. This essentially means Bank Negara Malaysia will step in to backstop any deals, if credit dried up during a crisis.

The original currency swap arrangement between China and Malaysia was established in 2009 with just 80 billion renminbi. It was enlarged to 180 billion renminbi in 2012 and renewed for three years to 2015. Recently, both governments extended it for a further three years to 2018.

The renminbi is now the first foreign currency to be included in the Malaysian clearing system via Bank Negara's subsidiary Malaysian Electronic Clearing Corp Sdn Bhd (MyClear). Bank of China in Kuala Lumpur is working with MyClear in settling renminbi via the Real-time Electronic Transfer of Funds and Securities System (Rentas).

In 2010, Bursa Malaysia Derivatives’ clearing house began accepting renmimbi as margin collateral for palm oil trading, a move that signifies China’s importance to Malaysian derivatives market. Two years later, Bursa Malaysia Derivatives’ clearing house appointed Bank of China in Kuala Lumpur as an official member to settle such trades.

By having a renminbi clearing house in Kuala Lumpur, banks in Malaysia will have direct access to onshore renminbi markets in China without having to route their transactions through a mainland lender.

Todate, Wang said Bank of China in Kuala Lumpur already captured almost 70 per cent of renminbi clearing because it is linked with 26 other commercial banks here. In achieving its Beijing headquarters' aspiration for it to be "an Asean player", it had also attracted financial institutions from Vietnam and Singapore to set up renminbi clearing accounts.

BEIJING, July 17 (Xinhua) -- Millions of Muslims across China began celebrating Eid al-Fitr, which marks the end of the Islamic holy month of Ramadan, on Friday.

The start of the Eid al-Fitr varies based on the observation of the new moon by local religious authorities. Northwest China's Qinghai and Gansu provinces started celebrating the festival on Friday while the Xinjiang Uygur Autonomous Region and Ningxia Hui Autonomous Region will mark it on Saturday.

"It is auspicious that the Eid al-Fitr falls on the same day as Jumu'ah (Day of Assembly) when everybody goes to the mosque for Friday prayers," said Ma Yun, a Hui minority and head of the Dongguan mosque administration committee in Xining, capital of Qinghai Province.

"It was not until 9pm on Thursday we finally decided that Eid al-Fitr would fall on Friday this year," said Ma, adding that it was coincidence that Malaysian Muslims mark the festival on the same day.

Some 300,000 Muslims, most of whom are ethnic Hui, visited the Dongguan Mosque on Friday. Some came as early as 3am to reserve a place in the prayer hall.

Ma Jun, a snack shop owner, wearing a pristine robe and white hat, prayed in a queue of people that stretches as far as 5km outside the mosque, with the voices of Imams coming from loudspeakers. The Arabic prayer is first, followed by a Chinese version.

A middle-aged woman is distributing cash to children at a crossroads outside the mosque. Within half an hour, 600 renminbi (or US$98) was handed out to 600 children. "Whether they are ethnic Han or Tibetan, I just want them to be happy," said the woman.

In neighboring Xinjiang Uygur Autonomous Region, where more than half of the 22 million population are Muslims, business is flourishing due to the celebrations.

Malik Nurlan, a young Kazakh man, suffered pain in his arm after a whole day of chopping meat. "So many people are buying beef and mutton!" said Nurlan, who sold 11 sheep and two cows in a single day.

With about 20 million Muslims in China, the event is also celebrated in other provinces or cities such as Gansu, Ningxia and Beijing.

Thousands of Muslims went to Niujie Mosque in downtown Beijing on Friday afternoon. Tens of thousands more will come on Saturday when Eid al-Fitr formally falls in the capital, said Chang Chongyu, head of the mosque administration office.

In Ningxia, where most of the Hui minority lives, a five-day holiday will begin on Saturday. Highways and most scenic spots will be free of charge during the holiday.

"I will have a family get-together in the first two days and spend the other days sightseeing with my kids," said Yang Li, who works in a government department in the regional capital of Yinchuan.

CHANGES in CELEBRATIONS
For Ma Jinliang, a cycling enthusiast in Ningxia, this year's end of Ramadan is quite special. "It is remarkable that the final of the 14th Tour of Qinghai Lake Cycling Race coincides with Eid al-Fitr, which falls on Saturday in Ningxia," said Ma, who will watch the race in Zhongwei City.

The 2,940km race, the top cycling competition in China with a total prize of US$1 million, traverses Qinghai, Gansu and Ningxia, where the majority of China's Muslims live. It will end on Saturday in Yinchuan.

"Feeding ourselves is not a problem for us any more," said Ma, who cycles in the suburbs every weekend. "We focus more on improving quality of life with more people joining sports clubs or going to the gym."

Ye Jianguo, 80, a villager from Maying Township in neighboring Qinghai Province, is impressed by the changes to the Eid al-Fitr celebrations in recent years.

"Before 1980, most of us were struggling in poverty," said Ye, who had to cut a piece of brick tea into four parts in order to present them as gifts when visiting relatives and friends.

In the 1980s, Ye only need to cut the tea into two parts as crop output improved. In the 1990s, families not only had enough brick tea, but also could afford to buy tea with crystal sugar and longan, he said.

Sanzi, a popular snack among Chinese muslims, is made of wheat-flour dough and pulled into thin noodles and skilfully deep-fried in heat stable palm cooking oil.

For this year's celebration, Ye bought a sheep, eight chickens, 25kg of palm oil to cook fried snacks and a full table of milk and drinks. "Five bags of flour are consumed in my shop every day and I have a daily net profit of more than 300 renminbi (or US$49)," said Ye, who runs a bread shop in the town.

In Kashgar, the westernmost city of China where sporadic terrorist attacks have dampened tourism, Memtimin Haji hopes for more visitors.

After attending Jumu'ah prayers at the Etgal Mosque on Friday afternoon, he rushed back to his souvenir shop close by. "Business is a bit better on Friday when people gather at the mosque for prayers," he said.

KUALA LUMPUR: BANK of China (Malaysia) Bhd is keen to finance or be part of the syndicated financiers for infrastructural development projects such as the RM27 billion Penang Integrated Transport Masterplan, RM23 billion MRT Line 2 and the Kuala Lumpur-Singapore high speed rail, says its chief executive officer Wang Hongwei.

"Like other commercial banks, we're here to support Malaysia's economic development," he told Business Times in an interview here, recently.

As part of its commitment for China’s 'One Belt, One Road' initiative, Wang said extending loans for port development and logistic industry is also a priority.

"We've had several meetings with Beibu Gulf Holding (Hong Kong) Co. Ltd’s senior management to discuss financing the Kuantan port development project in Malaysia, including syndicated financing predicated on its track record in managing four ports in southern China, namely Fangchenggang Port, Qinzhou Port, Tieshan Port and Beihai Port."

In Malaysia, Beibu has a 38 per cent stake in a consortium that received a 30-year concession to operate and develop Kuantan Port with IJM Corp Bhd. This port is poised to serve as a catalyst for the Malaysia-China Kuantan Industrial Park.

The bank has extended loans totalling RM1.4 billion to Malaysia's manufacturing and agricultural sectors. Of that amount, RM300 million worth of loans were dished out to the palm oil and rubber sectors.

"We firmly support the development of the entire supply chain from plantation to processing, trading and export of value-added agricultural products," he said.

Meanwhile, Wang said Malaysia’s ‘Halal’ branding is an attractive aspect for foreign direct investment from China. "Chinese Muslim communities are expected to be another large investors’ group, capitalising on the well-acceptance of certification by Malaysia’s Halal authorities," he said.

These investors are able to reap incentives from Malaysian Investment Development Authority (MIDA), the official partner with Bank of China in Kuala Lumpur on reciprocal referral.

Upon receipt of halal certification, these packaged foodstuff and snacks can be exported back to China to enjoy a premium in pricing. At the same time, these halal goods can gain good acceptance in Asia, Middle East and Africa, Wang noted.

Bank of China has a 101 year history in Malaysia. From 1939 to 1959, it had branches in Kuala Lumpur, Penang, Ipoh, Seremban, and Batu Pahat. Today it has seven branches in Kuala Lumpur, Muar, Penang, Klang, Johor Bahru, Puchong and Kuching.

Wang noted that the Kuala Lumpur and Kuching bank branches also act as Chinese Visa Application centres for the China Embassy in Malaysia.

He said Bank of China is aiming for more trade financing fees as trade flows in southeast Asia is set to rise with the launch of the Asean Economic Community (AEC) at the end of 2015.

The AEC seeks to integrate the diverse economies of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.

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