July 2011

MALAYSIAWhere Opportunities

Converge

Table of Contents

2

1. Macro Drivers

2. Bursa Malaysia Diversified Offerings

3. ASEAN Stars and Top Performers

Sound Macro Environment

• Projected 5% - 6% for 2011F

(Source: BNM)GDP Growth

• > 90% of assets are RM denominated

• Non-performing loan at 2.3% @ end Feb 2011

(Source: BNM)

Strong Banking Sector & Ample

Liquidity

• Overnight policy rate: 3.0%Conducive Domestic Interest

Rates

• Modest 2.5% - 3.5% for 2011F

(Source: BNM)

Manageable Inflation

• 2011F at RM 114.2 billion

(Source: MOF)

Strong Current Account in the

Region

• > USD134 billion @ 30 June 2011

(Source: BNM)Healthy International Reserves

3

4

Global Recognition

Migration of Malaysian derivatives products to

CME Globex®

QDII – Malaysia Investment destination

for China investors

CBRC

Recognition

FTSE

Upgrade

CFTC

Approval

U.S. SEC

Approval

“Designated Offshore Securities

Market” recognition to ease

trading in Malaysian listed

securities & shelf listed bonds

by U.S. investors

CME

Partnership

Malaysia promoted to

Advanced Emerging Market

status in FTSE Global Equity

Index Series

4

Approval from US Commodity

Futures Trading Commission

(CFTC) to enable Malaysian

Futures brokers to deal with US

customers

5

Malaysian Market Dynamics

Country

Recognition

&

Competitiveness

Free Capital Mobility

& Improved Access

to Capital Market

New Economic Model - high value & high income

Increasing private sector role in driving business

Creating a conducive environment for entrepreneurship

Focus on developing Human Capital & Innovation

4th for Investor Protection

(World Bank)

10th for Resilience in crisis

(Sevcorp Int’l Business Confidence

Survey)

25th amongst 134 countries for

Corporate Governance Framework

(World Economic Forum)

Access for Foreign Participation

No restrictions on international

investments in Malaysia.

Free to repatriate capital, profits and

income.

Liberalised entry and ownership for

foreign players in the capital market.

Foreign Listings

5

Vision 2020

6

7

Outcome – High Income Economy

8

These areas of development are known as the National Key Results Areas (NKRAs) as below:

Reducing Crime

Fighting Corruption

Improving Student Outcomes

Raising Living Standards of Low-Income Households

Improving Rural Basic Infrastructure

Improving Urban Public Transport

GTP – 6 Priority Areas

9

131 EPPs -

Entry Point

Projects

contributing

towards 2020

GNI

Oil, Gas &

Energy 12 EPPs

Palm Oil 8 EPPs

Financial Services

Portfolio of EPPs

Tourism 12 EPPs

Business Services 6 EPPs

Electronics & Electrical 15 EPPs

Wholesale &

Retail 13 EPPs

Education 13 EPPs

Healthcare 6 EPPs

Communications, Content &

Infrastructure 10 EPPs

Agriculture 16 EPPs

Greater Kuala Lumpur 9 EPPs

ETP– 12 Priority Areas

10

NKEA GNI Impact

11

6 Progress update by the PM

Source : ETP Presentation dated 5th July 2011

12

Malaysia

RM

1.35 T

12

Malaysian Opportunity...

Market Capitalisation

Philippine

PHP(₱)

19.30 T

Thailand

TBH( )

13.56 T

Singapore

SGD

0.55 T

Improved Country Weighting and Classification

MALAYSIA *

Promoted to

Advanced

Emerging

status from

June 2011

Country Weight MSCI EM MSCI AC Asia ex Japan

CHINA 17.7% 25.0%

BRAZIL 16.0%

KOREA 13.5% 19.1%

TAIWAN 11.5% 16.3%

SOUTH AFRICA 7.4%

INDIA 7.4% 10.4%

RUSSIA 7.3%

MEXICO 4.5%

MALAYSIA 2.9% 4.1%

INDONESIA 2.3% 3.3%

THAILAND 1.7% 2.4%

POLAND 1.7%

CHILE 1.5%

TURKEY 1.3%

COLOMBIA 0.8%

PERU 0.6%

PHILIPPINES 0.5% 0.7%

HUNGARY 0.4%

EGYPT 0.4%

CZECH REPUBLIC 0.4%

MOROCCO 0.2%

HONG KONG 11.8%

SINGAPORE 6.9%

Total 100.0% 100.0%

Data as of March 2, 2011.

July 2011:

3.14% July 2011:

4.42%

Source: FTSE , June 2011

Source: MSCI, March 2011

13

14

Bursa Malaysia - Diversified OfferingsStrong Niche In Islamic and Commodities

10 Derivatives Products:

Commodity futures

Equity futures

Equity options

Financial futures

Sukuk

Shari’ah compliant

equities

i-REITS

i-ETFs

Bursa Suq Al-Sila’

TRADING CLEARING SETTLEMENT DEPOSITORY

2 Markets:

Main Market : 839 cos

ACE Market : 189 cos

Market Cap @ 22 July 11 :

RM1,350 bil (USD446 bil)

Products : Shares, REITs,

Warrants, ETFs, CBBCs,

Loans & Bonds

SECURITIES DERIVATIVES ISLAMIC OFFERINGS OTHERS

Electronic trading

platform for :

Government Bonds

Corporate Bonds

Non-ringgit securities

Sukuk Listing

Offshore Market

LISTING

Bond Market

14

Diverse Sectors & Products

ETFs

REITs

Loans

Main Market

Call Warrants

ACE Market

As at 30 June 2011

978

295

141

3714

5

15

Finance

Trading/Services

Plantation

Consumer Products

Industrial Products

Infrastructure Project Cos.

Construction

As at 30 June 2011

ETF Short

Name

CIMBC25 CIMBA40 MyETFDJ FBMKLCI-EA ABFMY1

ETF CIMB FTSE China 25

ETF

CIMB FTSE ASEAN

40 Malaysia ETF

MyETF Dow Jones

Islamic Market

Malaysia

(DJIM)Titans 25

FTSE Bursa Malaysia

KLCI etf

ABF Malaysia Bond

Index Fund

Fund

Description

Tracks the FTSE

China 25 index that

consists of 25 largest

and most liquid

Chinese stocks listed

and traded on the

Hong Kong Stock

Exchange.

Tracks the FTSE /

ASEAN 40 Index that

consists of 40 largest

companies by full

market value listed on

stock exchanges of

Indonesia, Malaysia,

Philippines,

Singapore and

Thailand that qualify

for the inclusion in the

FTSE/ASEAN Index.

Tracks the Dow

Jones Islamic

Market (DJIM)

Index that consists

of 25 largest Shariah

compliant listed

companies on

Bursa Malaysia by

market

capitalisation.

Tracks the FTSE Bursa

Malaysia KLCI Index

that consists of 30

largest listed

companies on Bursa

Malaysia by market

capitalisation.

Tracks the Markit

iBoxx® ABF

Malaysia Bond Index

(Benchmark Index)

which consists

mainly Malaysian

government bonds.

Underlying

Index

FTSE China 25 Index

(previously known as

FTSE Xinhua 25

Index)

FTSE/ASEAN 40

Index

Dow Jones Islamic

Market Malaysia

(DJIM) Titans 25

Index

FTSE Bursa Malaysia

KLCI Index

Markit iBoxx® ABF

Malaysia Bond Index

Stock Code 0823EA 0822EA 0821EA 0820EA 0800EA

Website www.cimbetf.com www.cimbetf.com www.myetf.com.my www.fbmklcietf.com.my www.abfmy1.com.my

Exchange Traded Funds (ETFs) Listed on Bursa Malaysia

16

No REIT TypeName of

Share Code Source

Market Cap. (as at

26th July 2011)

1Amanah Harta

Tanah PNB

Commercial/Office

BuildingsAHP 4952 www.pnb.com.my RM103.00 million

2 Al-’Aqar KPJ REIT* Hospital Buildings ALAQAR 5116 www.alaqarkpjreit.com.my RM 690.39 million

3 AmFirst REIT

Retail, Hotel and

Commercial/Office

Buildings

AMfirst 5120 www.amfirstreit.com.my RM 514.80 million

4 Amanah Raya REIT

Hospital, Education,

Office and Industrial

Buildings

Arreit 5127 www.amanahrayajmf.com RM 521.63 million

5 Atrium REIT

Industrial,

Warehouse and

Office Buildings

Atrium 5130 www.atriumreit.com.my RM 132.763 million

6 Axis-REIT

Commercial/Office,

Industrial and

Warehouse

Buildings

AXreit 5106 www.axis-reit.com.my RM 962.31 million

7Al-Hadharah

Boustead REIT*

Plantation Estates

and MillsBSDreit 5124 RM 921.55 million

REITs Listed on Bursa Malaysia

* Islamic REIT 17

www.al-

hadharahboustead.com.my

No REIT TypeName of

Share Code Source Market Cap.

8CapitalMalls

Malaysia TrustRetail Buildings CMMT 5180

www.capitalmallsmalaysia.

comRM1.973 billion

9 Hektar REIT Retail Buildings Hektar 5121 www.hektarreit.com RM 428.80 million

10 Quill Capita Trust

Commercial/Offic

e, Industrial and

Retail Buildings

Qcapital 5123 www.qct.com.my RM 425.24 million

11 Tower REITCommercial/Offic

e BuildingsTWRREIT 5111

www.guocoland.com.my/c

ms/tower-reit

RM359.04 million

12 Starhill REIT

Commercial/Offic

e/Hotel and Retail

Buildings

Stareit 5109 www.starhillreit.comRM 1.07 billion

13 Sunway REITRetail/Office

Buildings/HotelSUNREIT 5176 www.sunwayreit.com RM 3.036 billion

14 UOA REITCommercial/Offic

e BuildingsUOAreit 5110 www.uoareit.com.my RM 625.85 million

18

REITs Listed on Bursa Malaysia

Positive Securities Market MomentumFBMKLCI Hit an All Time High at 1,594.74 on 8 July 2011

Average Market Capitalisation

Total Listed Companies

FMBKLCI Index

571.96

(1 Jan 1998)

1,565.06

(22 July 2011)

13

07

958

19

Steady Growth in Market Size

Exchange Market Cap as at end-

2010 (USD bil)

Market Cap as at June-

2011 (USD bil)

Change in 1H 2011

Hong Kong 2,711 2,712 +0.03%

Australia 1,455 1,444 -0.8%

Taiwan 818 803 -2%

Singapore 647 669 +3%

Malaysia 409 438 +7%

Indonesia 360 408 +12%

Thailand 278 279 +0.5%

Philippine 157 161 +2%

Strong growth in IPO listings and fund raising activities

Source: WFE

20

ASEAN Stars Companies Market Cap (RM mil)

Malayan Banking 66,032.56CIMB Group Holdings 63,401.57Public Bank BHD 47,398.44Sime Darby Bhd 55,181.49Axiata Group Bhd 43,070.29Genting 39,602.25Tenaga Nasional 33,878.06IOI 33,222.08PETRONAS Chemicals Group Bhd 56,320.00Digi.com 23,325.00AMMB Holdings 19,501.78MISC 35,263.97Maxis Bhd 41,175.00Kuala Lumpur Kepong 22,978.64Genting Malaysia BHD 22,315.11Petronas Gas 26,712.88Telekom Malaysia 14,238.06PPB Group 20,746.25Plus Expressways 21,800.00Hong Leong Bank 21,489.46Gamuda 7,564.71YTL Corp 13,943.83British American Tobacco (Malaysia) 13,277.15UMW Holdings 8,635.16YTL Power International 14,952.55Petronas Dagangan Bhd 17,723.22Hong Leong Financial 14,086.03RHB Capital 20,143.71Malaysia Marine and Heavy Engineering 13,104.00MMC 8,495.71

21

22

IPO listing YTD - June 2011

Attractive IPO Outlook Company Amount

Raised

(RM mil)

Market

Cap @

listing

price

(RM mil)

Listing

Price-

A

(RM)

First Day

Closing-

B

(RM)

(A vs B)

Premium /

Discount

(%)

MAXWELL INT

HOLDINGS BERHAD 34.4 216 0.540 0.565 4.63

ASIA MEDIA GROUP

BERHAD 22.5 52 0.230 0.285 23.91

BENALEC

HOLDINGS BERHAD 230.0 730 1.000 1.340 34.00

TAMBUN INDAH

LAND BERHAD 37.9 155 0.700 0.805 15.00

K. SENG SENG

CORPORATION

BHD 24.1 55 0.570 0.615 7.89

CENTURY

SOFTWARE

HOLDINGS BHD 31.6 160 0.930 0.960 3.23

BERJAYA FOOD

BERHAD 18.3 72 0.510 0.635 24.51

MANAGEPAY

SYSTEMS BERHAD 7.3 29 0.160 0.220 37.50

APFT BERHAD 19.6 79 0.500 0.550 10.00

SMARTAG

SOLUTIONS

BERHAD 17.7 70 0.310 0.380 22.58

FOCUS LUMBER

BERHAD 10.4 62 0.600 1.180 96.67

BOILERMECH

HOLDINGS BHD 16.0 85 0.330 0.820 148.48

MCLEAN

TECHNOLOGIES

BERHAD 13.8 61 0.520 0.535 2.88

IDEAL JACOBS (M)

CORPORATION B 8.1 32 0.270 0.430 59.26UOA DEVELOPMENT

BERHAD 1,029.6 3,109 2.600 2.590 (0.38)

XOX BHD 37.4 242 0.800 0.520 (35.00)

MSM MALAYSIA

HOLDINGS BHD 817.6 2,460 3.500 4.890 39.71

Active IPOs activities in 2011

0

2

4

6

8

10

12

14

16

18

Malaysia Singapore Indonesia Thailand Philippines

2Q 2011 1Q11

22

23

No. Construction Sector Compound Growth in

PBT over 3 years (%)

1. Mudajaya Group Bhd Construction 89.61

2. Malaysia Building Society Bhd Finance 86.00

3. Guan Chong Bhd Consumer Products 85.00

4. DKSH Holdings Malaysia Bhd Trading Services 62.59

5. Supermax Corporation Bhd Industrial Products 44.69

6. Bandar Raya Development Bhd Property and REIT 35.46

7. Genting Berhad Trading Services 29.39

8. Kulim (M) Bhd Plantation 26.63

Highest Profit Growth Companies by Sector

Source: The Edge

24

No. Construction Sector ROE over 3 years (%)

1. Mudajaya Group Bhd Construction 174.8

2. Berjaya Sports Toto Bhd Trading Services 90.25

3. Coastal Contracts Bhd Industrial Products 39.06

4. British American Tobacco Malaysia Bhd Consumer Products 33.74

5. Public Bank Bhd Finance 25.49

6. Sunway City Bhd Property and REIT 21.09

7. IOI Corporation Bhd Plantation 19.70

Most Profitable Company by Sector

Source: The Edge

25

No. Construction Sector Returns to

Shareholders over 3

years (%)

1. Guan Chong Bhd Consumer Products 79.54

2. KPJ Healthcare Bhd Trading Services 55.14

3. Supermax Corporation Bhd Industrial Products 53.96

4. Mudaya Group Bhd Construction 52.78

5. Malaysia Building Society Bhd Finance 34.46

6. Mah Sing Group Bhd Property and REIT 33.04

7. Petronas Dagangan Bhd Trading Services 31.71

8. Kulim (M) Bhd Plantation 28.63

Best Performing Stock by Sector

Source: The Edge

0

2

4

6

8

10

12

14

16

18

20

0

0.5

1

1.5

2

2.5

3

3.5

4

Malaysia Thailand Philippines Singapore IndonesiaDiv Yield (%) P/E

Stable Dividend Yield

Companies Dividend Yield

(%)

PE Ratio Market Capitalisation

(RM mil)

TELEKOM MALAYSIA BHD 6.57 11.35 14,130.74

MALAYAN BANKING BHD 5.82 16.85 66,855.16

YTL POWER INTERNATIONAL BHD 5.72 13.25 15,815.19

DIGI.COM BHD 5.61 19.17 22,578.60

BRITISH AMERICAN TOBACCO (M) 5.14 18.24 13,334.25

MISC BHD 4.46 14.73 32,808.88

PUBLIC BANK BHD 4.33 15.14 46,974.61

PPB GROUP BHD 4.24 10.74 20,414.31

UMW HOLDINGS BHD 4.11 8.67 8,391.10

PETRONAS GAS BHD 3.78 18.18 26,158.84

Top 10 Malaysian Companies in terms of Div Yield

Div Yield(%) and P/E(%) of the regional benchmark indices

26

128,988

114,820 113,565

132,151 136,202

154,516

Increasing Interest in the Derivatives Market

23,8

89

22,5

17

25,1

11

24,2

55

36,7

85

32,7

00

1Q10 2Q10 3Q10 4Q10 1Q11 April-May 2011

Daily Average Contracts 1Q11 1Q10 Δ% 4Q10 Δ%

FCPO 25,606 15,794 62 17,030 50

FKLI 10,274 7,316 40 7,065 45

Daily Average Contracts (Units) Open Positions

27

FCPO open interest hits all-time high at 121,593 contracts on July 5

28

Bursa Suq Al-Sila’an international commodity platform that is able to

facilitate commodity-based Islamic financing and

investment transactions under the Shari’ah principles No. of Listings 19

Value listed USD 27.4bil

Exchange Global Ranking 1

Sukuk Listings

Foreign Membership Admission

1. Saudi Hollandi Bank

2. Nafaes International Group General Trading and

Contracting Company

3. The Islamic Bank of Asia Limited

4. Central Bank of United Arab Emirates

5. Alinma Bank

6. Al Rajhi Banking & Investment Corporation

7. Jordan Dubai Islamic Bank

Foreign Membership Shari’ah Approvals

1. Bank Albilad

2. UBS

3. Islamic Liquidity Management

4. Islamic Finance Advisory and Assurance Services

5. Maldives Islamic Bank

6. Elaf Bank

7. Abu Dhabi Commercial Bank

8. National Bank of Abu Dhabi

% of Shari’ah Compliant

No of PLCs 89

ETFs 48

REITs 22

Market Capitalisation 63

Key Statistics

No. of Trading Participants 40

Islamic Markets Activity @ 31 May 2011

28

Thank You & …..

Welcome to Malaysia!