Fed Keeps Rate At 2%, Cites ‘Upside’ Inflation Risks
The Federal Reserve kept its benchmark rate at 2% and warned that faster inflation may accompany some strengthening of the economy. “Although downside risks to growth remain, they appear to have diminished somewhat, and upside risks to inflation and inflation expectations have increased,” the Federal Open Market Committee said in a statement. Fed chairman Ben Bernanke and his colleagues ended the most aggressive monetary easing in two decades, refreshed their forecasts and reported some improvement in consumer spending. “The Committee expects inflation to moderate later this year and next year. However, in light of the continued increases in the prices of energy and some other commodities and the elevated state of some indicators of inflation expectations, uncertainty about the inflation outlook remains high,” the Fed said.

CapitaLand Acquires 61.9% Total Retail Area Of Sungei Wang Plaza For RM595m
CapitaLand has acquired its third Malaysian retail asset, buying nearly 62% of the total retail area of Sungei Wang Plaza, located in the Kuala Lumpur city centre, for RM595m ($250m). The acquisition from a private entity called Sungei Wang Plaza Sdn Bhd includes the car parks and was done through an asset securitisation structure, which would see Sungei Wang held by a special purpose vehicle called Vast Winners, according to a CapitaLand statement. Property consultants said that the deal was a positive sign for the local market, and while they expected CapitaLand to add value to Sungei Wang Plaza, the company was also gaining from a solid cash-flow acquisition. CapitaLand had already acquired Gurney Plaza in Penang and Mines Shopping Fair in Selangor.

Asiatic Secures Largest Power Supply Contract Worth US$475m
Asiatic Group has secured a 99-year power-supply contract worth potentially US$475m. The contract - which the engineering management company said is its single largest power-supply deal in Cambodia - is expected to boost group revenue by about US$4.8m a year, or US$475m over 99 years, once the power plant is fully operational in 2009. This is Asiatic’s fourth power-supply contract in Cambodia since its first energy-sector venture there in 2005. Under the latest contract, the group will supply power to the Phnom Penh Special Economic Zone - one of 19 designated areas in Cambodia set up to attract foreign investment into the country. Asiatic will supply a contracted capacity of 10 megawatts (MW) to the zone, starting with 5MW in the first year and moving to 10MW from the second year.

Freight Links’ Net Profit Rose 39.9% for FY08
Freight Links Express Holdings reported a 39.9% rise in net profit to $17.5m for the year to end-April, on higher revenue and significant profit from an associated company in Malaysia. Sales increased across all business segments to $139.4m, said the logistics company. Compared with previous year, revenue grew 10.4%. But rising freight costs, rental expenses and staff costs drove total expenses 10.6% higher to $137.7m. The group has declared a first and final tax-exempt cash dividend of $0.0025 a share for the year to end-April. Revenue from freight forwarding, which contributes more than half of total revenue, grew 8.2% to $84.9m due to a rise in container traffic. After-tax profit rose 18.9% to $3.9m due to better margins on cargo shipments.

Stamford Tyres’ Net Earnings Fell 34.3% For FY08
Stamford Tyres Corporation reported a 10.8% growth in revenue for the 12 months ended 30 April 2008. Revenue grew from $296m in FY07 to $328.1m, driven by strong sales in Southeast Asia of the Group’s major brands – Falken, Dunlop and Continental – as well as its proprietary Sumo Firenza passenger car and truck tyres. With steeply rising oil prices affecting services such as freight, the Group’s marketing and distribution costs were 35% higher at $11.1m compared to FY07. Total operating expenses in FY08 were up 17.6% at $65.6m which included an unrealised forex loss of $1.7m caused by translation of receivables denominated in US$ and South African Rand to S$. The Group closed the year with a net profit after tax of $7.6m, 34.3% lower than in FY07. The Board of Directors is recommending a final dividend of $0.005 for FY08.