Earth Hour by Switching-Off TNB's Nuclear Plan(t)? (26 March 2011)

In conjunction with Earth Hour today, would you do your part by switching off lights from 8.30pm to 9.30pm? I heard people are talking about earth hour since weeks before, and many shopping malls and hotels are organizing some amazing events during this special dark moment. Actually, the idea of Earth Hour came out as a way to showcase a growing global community's commitment to taking environmental action and protecting the planet we are living in.

And, this year, the one-hour is just like a moment for us to remember the lost lives in Japan earthquake and tsunami disaster, which killed more than 10,000 lives. Of course, the nuclear radiation treat are still looming in Japan, and we really needs to evaluate the effects.

But, isn't nuclear power GREEN?

As I know, nuclear power is much more environmental friendly than Coal/Gas power plant. Although Hydro power is renewable, it is devastating to the nature when construction by greatly changes the topography of the surrounding area and sacrificing the habitat of animals.

However, Japan's latest nuclear emergency is a wake-up call for aspirant TNB who is planning to build out nation's first nuclear power plant by 2015. It is likely to be hot debate in parliament and will soon become an "political agenda" in the upcoming general election.

Electricity Capacity as at June 2010. (Tenaga Nasional Bhd)

Do we really need Nuclear Power?

As of June 2010, 91% of Malaysia's electricity is generated by either gas, coal and oil. This is totally not environmental friendly. Hence, in June 2009, the Malaysian cabinet decided to include nuclear energy as part of an energy option for electricity generation particularly in Penisular Malaysia for post-2020. With the treat of climate change and the depletion of fossil fuel resources, it is no surprise that utilities worldwide are putting the nuclear alternative back on the table until the Japan disaster recently.

Other than nuclear, many people think that solar, wind and biomass energy which is renewable is an good alternative. But, it is ridiculous if we are to talk about constant and stable energy production and competitive pricing. Please bear in mind that, the more expensive power produced by TNB will translate into higher electricity tariff to consumers.

www.financemalaysia.blogspot.com

In conclusion, I think Malaysia needs Nuclear power and should proceed with the nuclear power project for sustainable power supply to power up our nation, continue growing in the future. We should not lag behind and must plan ahead for nuclear power because nuclear power plant needs 10 years to build and commissioned. The main concern for Malaysians, however, is the lack of expertise and maintenance of nuclear power. Government should address this problem thoroughly, and once solved, everything would be smooth sailing.

Source: Tenaga Nasional Bhd

New Fund: OSK-UOB Capital Protected Sector Strategy Fund

Yet, another capital protected fund for investors by OSK-UOB unit trust management. Following the pump priming efforts by governments around the world during the financial crisis, the global economies have begun to stabilize and signs of recovery are growing strong. The stimulus packages introduced have benefited broad market sectors to a different extent in each sector at each stage of recovery.

"At each stage of the economic recovery, different market sectors will benefit to a different extent. These 4 sectors which are well diversified are expected to capitalize on the different sectors' play", said Ho Seng Yee, CEO of OSK-UOB.

According to Ho, the fund shares a similar strategy with the OSK-UOB Capital Protected Gold Guru Fund that was launched in 2009 and has registered returns of 29%.

Funds' Allocation & Strategy

This is a 4-year close-ended capital protected fund which aims to provide capital appreciation over the medium term whilst protecting investors' capital on the maturity date. To accord for the capital protection feature, the fund will invest primarily in 4-year ZNIDs with the remainder of the capital raised invested in 4-year over-the-counter (OTC) option whose underlying asset is the Multi Sector Strategy ("Sector Option") to generate the returns for the fund.

The Multi Sector Strategy Option

It provides investors an exposure to 4 distinct market sectors represented by exchange traded funds in the Energy, Material, Financial and Consumer Discretionary sectors.

While the Sector Option is denominated in Ringgit Malaysia, the underlying Multi Sector Strategy is based in Singapore Dollars, thus, the Fund's return is subject to exchange rate risk.

Source: OSK-UOB unit trust management bhd

To read the fund's prospectus, please click here .


Related Posts:
New Fund: OSK-UOB Asia Financials Fund
New Fund: OSK-UOB US Focus Equity Fund
Unlocking the Mystery of Capital Protected Funds

The Electrifying TENAGA (Nuclear, USD, Tariff)

Tenaga Nasional Bhd (TNB), the national power producer of Malaysia, would embark on nuclear power in the next few years. Given the sensitivity of such issue, Malaysia government has again hinted that there are plans to construct nuclear power plants in the country to fulfill boost up the electricity capacity.

Example of Nuclear Power Plant

According to theStar recently, Energy, Green Technology and Water Minister Datuk Seri Peter Chin said Malaysia plans to build two nuclear power plants with a capacity of 1,000 megawatts (MW) each and commencement of operations in 2021-2022. This is part of the country's overall long-term plan to balance its electricity generation mix.

The two nuclear plants would represent 9% of peninsular Malaysia's existing power generation capacity of 21,817 MW. This is necessary for the country given that the peninsula's power reserve margin will drop from 44% currently to below 20% by 2016 while the 1,600MW Bakun undersea cable project has been discontinued.

While nuclear power is a long-term catalyst, there is short and medium-term positive news for Tenaga.

Short-term:

Generally, weakening of USD would improve the balance sheet of Tenaga as most of its debt are denominated in USD. With USD falling from 3.14 to 3.09 for the past two weeks against RM, Tenaga stands to gain from lower financing cost/interest incurred.

Medium-term:

With the escalating coal prices which put pressure on the bottom line of Tenaga, government has agreed to grant Tenaga to hike electricity tariff very soon. Speculations are rife up saying the hike could materialized as early as 1st January 2011, and the percentage was up to 40%.

Although Finance Malaysia expecting a tariff hike in second quarter next year, it should not be more than 20%. This is a very cost-sensitive issue given the upcoming general election said to be after Chinese New Year.

Super BIG Xmas gift for KNM

After a long suffering period, KNM investors can be very joyous coming this Christmas celebration with another good news announced today. In a statement after trading hours, KNM announced that its wholly owned subsidiary, KNM Process Systems Sdn Bhd (KNMPS), had landed a RM2.19 billion job in the United Kingdom.

The contract is for the engineering, procurement, construction and commissioning of works towards the development of an 80MWe gross capacity energy from biomass and waste recycling centre project known as EnergyPark Peterborough. Duration of the contract is about 4 years.

KNM drive into Renewable and Clean Energy Sector...

This mark another important milestone for KNM to venture into renewable energy sector, which is so popular in this energy-hunting world. This came as a surprise to investor because KNM had never been in that sector, and even surprising us was the multi-billion value contract.

Illustration of EnergyPark taken from Peterborough Community Website

The project was said expected to contribute positively to KNM's earnings for the financial years ending 31st December 2011, 2012, 2013 and 2014. At the same time, KNM order book rose accordingly, which could keep KNM busy for next few years.

Second contract this month

To recap, KNM (through KNMPS also) secured a RM680 million contract early this month in Uzbekistan for the supply of technical documentation, equipment and services for the development of gas condensate fields, which is for a 2 years duration.

KNM closed at RM2.69 today.

OSK and RHB are setting a fair value at RM2.96 and RM3.09 respectively now.

What would be the reviewed price after today?

Merry Christmas, KNM !!!

4 GREEN Ideas for Malaysia

Last weekend, I went up to Genting for relaxing and escape from the warm weather in KL. Wondering how could Malaysians live in such condition in the next decades, if the temperature going up consistently?

 

Amazingly, when I turn-on the television, a GREEN programme was on-screen. Instead of sleeping, I watched the whole documentary about some great ideas or innovations being researched by scientists in US. The programme highlighting 4 green ideas:

1. Green Insulator

The insulator is made up with a special liquid gel, which could prevent heat transfer up to 350 degree Celsius. It can be applied in the glass (transparent) of any building, to bring the sun light in, without heating the interior. We can expect 20% energy saving from air-conditioner and lightnings.

2. Green Roof

We heard of the this idea long time ago, where people planting on the roof.
- it could absorb heat from entering the building.
- it could release fresher air back to environment just like jungle did.
- it is definitely better aura than concrete jungle.

In view of the decreasing food supply nowadays, planting vegetables or fruits above the roofs can be a good business.

3. Fiber Optic

I like this kind of technology which could bring the free flowing sun light from outside to inside of the building.

Fiber optic is flexible enough to bend and extend as long as you like. It is natural, no sound, and research show that student study under such light could let them concentrate more on studies.

Fantastic !!!

4. Nanotechnology Solar Panel

As we know, solar panel could turn sun light to generate electricity. But, it is heavy, thick and space consuming. With nanotechnology, scientists converted it into much much smaller solar panel which can be handle easily , and it can cat onto any surface of a building, making the whole building like a power plant. The only shortfall is this kind of green technology is the most expensive.

Malaysia could invite experts from other countries to design and construct using such green technology.