BMI to give dividends

JAKARTA (JP): Bank Muamalat Indonesia (BMI), the country's first Islamic bank, will distribute 65 percent of its 1993 net profit of Rp 2.9 billion (US$1.3 million) as dividends for its shareholders.

The bank's president, Zainulbahar Noor, told reporters after an annual shareholders meeting here yesterday that the cash dividends would be Rp 32 per share.

Those who do not want to take cash can convert their dividends into new shares after getting approval from the Capital Market Supervisory Agency (Bapepam).

Even though the bank is not listed on the capital market, its share issuance was licensed by Bapepam. It has sold its shares at a nominal value of Rp 1,000 each.

Zainulbahar said 25 percent of the bank's profit will be retained to improve its capital, five percent given to its directors as incentives and 2.5 percent each given to its pension fund and for the promotion of Islam.

He said the bank's credits increased by 185 percent to Rp 93.8 billion as of the end of last year from Rp 32.9 billion as of the end of 1992. (yns)

Malaysia's inflation 3.9%

KUALA LUMPUR (Reuter): Malaysia's inflation rate showed signs of abating as the government announced yesterday the consumer price index (CPI) rose 3.9 percent year-on-year in April, down from 4.1 percent in March.

For the first four months of the year, the CPI rose by 4.3 percent, the same as in the corresponding period last year, the Statistics Department said.

Malaysia finished 1993 with an inflation rate of 3.6 percent, below the government's target.

The new figures will likely cheer the markets, which have worried that inflation in Malaysia was heating up.

The government earlier this month launched a consumer-based campaign, with newspaper and television advertisements calling on Malaysians to save more, spend less and grow vegetables in their backyards.

Japan, U.S. to hold talks

TOKYO (Reuter): Japan and the United States will hold working- level talks in Tokyo next week to discuss government procurement areas of the bilateral trade framework talks, a senior official of the Foreign Ministry said yesterday.

The official said the working group meeting on telecommunications equipment will be held on June 3-4 and the meeting on medical equipment will be held on June 7-8 in Tokyo.

He said the dates for meetings on auto and insurance have not been fixed.

Last week, Japan and the U.S. agreed to resume their bilateral trade talks after a three-month deadlock.

The trade talks have been stalled since February due to differences over definitions of objective criteria.

Japan has strongly refused U.S. demands to set numerical targets in order to measure progress in the opening of Japanese markets.

Two Koreas sign deal

SEOUL (Reuter): A group representing South Korean plastics companies said yesterday it had signed a barter deal with communist North Korea to exchange plastic products for water and alcoholic drinks.

The deal, if implemented, would be a rare chink in the Cold War blockade which has reduced inter-Korean trade to a trickle. Bilateral trade between the two Koreas was only US$200.6 million in 1993 against $213.5 million in the previous year, according to Seoul's trade ministry.

An official at the Korea Plastic Industry Cooperative (KPIC) said it agreed last year to exchange cups, buckets, waste baskets and plastic sheets for North Korean spring and mineral water, beer and soju, a Korean grain-based alcohol.

"An agreement was signed with a northern company in August last year. Right now we are working on the details. We are hoping to get the exchange going from September this year," the KPIC official said. "It's a big barter deal, but we can't say how much it is worth."

MAS profit nosedives

KUALA LUMPUR (AFP): Malaysia Airlines (MAS) announced yesterday that its group pre-tax profit nosedived by 89.8 percent for the fiscal year and said revenue growth could be further affected by persistent low yields.

Its profit of 16.1 million ringgit (US$6.44 million) for the year to March 31 was a pale shadow of the 157.9 million ringgit it notched up during the previous period, MAS officials said.

"Quite clearly, the result could have given us more pleasure than it does but, nevertheless, considering the various elements in it, we feel satisfied," MAS chairman Zain Azraai Abidin said, as he announced the publicly-listed company's financial performance.

Zain said profits could have been as low as 4.3 million ringgit if not for the sale of aircraft and spares totaling 11.8 million ringgit.

The airline usually incorporates the surplus from aircraft sales into its pre-tax profit, noting that they are part of the routine business of an airline.

Rubber prices up

SINGAPORE (AFP): Singapore rubber futures prices closed steadier on short-covering yesterday, dealers said.

Dealers said Thai buyers covered their short positions, pushing up prices of RSS 3 while local dealers covered RSS 1 in anticipation of Chinese purchases following the renewal of China's most-favored-nation status.

"I think all three grades are oversold in Singapore, that is why people are covering now," a dealer said.

Basis July RSS 1 was last done at 151.50 Singapore cents, RSS 3 at 99 cents and TSR 20 at 137.75 cents.

OPEC need $90 billion

STAVANGER, Norway (Reuter): OPEC Secretary-General Subroto estimated yesterday that it would cost US$80 billion to $90 billion to double the group's oil output in the next 25 years.

Such a sharp rise would boost production to around 50 million barrels per day (bpd) to help meet rising world demand and an expected decline in output from non-OPEC countries.

"It will cost something for the OPEC countries of about $80 to $90 billion," he told a news conference at the World Petroleum Congress (WPC) in Stavanger, hub of Norway's oil industry.

But low oil prices were not providing the cash needed for OPEC to invest in extra production capacity.

"For many reasons, including some seasonal and cyclical variations as well as major maintenance programs, OPEC would need an extra capacity of around 10 to 20 percent of production as cushion," he told around 2,000 delegates.

IATA gets technical chief

GENEVA (Reuter): The International Air Transport Association (IATA) yesterday named a former top official of Dutch airline KLM, Karel Ledeboer, as its new technical chief.

Ledeboer, whose formal title will be Senior Director- Technical, will succeed former British Royal Air Force officer Norman Jackson on August 1.

IATA, whose 221 members include almost all the world's airlines, has four senior directors who report to Director General Pierre Jeanniot.

Ledeboer, until recently KLM Executive Vice President- Operations, will be responsible for flight operations services, avionics and telecommunications, engineering and environment, security, and airports, IATA said.

A graduate of the Technical University of Delft in the Netherlands and a board member of the Dutch Aerospace Laboratory, he had worked for KLM for 34 years and held several senior posts.

IATA said Jackson would continue to work for IATA as a consultant.

Oil prices steady

LONDON (Reuter): World oil prices were steady yesterday at the start of a week that may show how much strength is left in their recent explosive rally.

The key New York and London markets were both closed for holidays. London July futures for the benchmark Brent Blend of crude ended on Friday at US$16.39 per barrel, remaining firm after a rally during which they have risen 25 percent since February.

In Asian markets yesterday July Brent was quoted at $16.36 to $16.43. But the London and New York holidays meant that activity both in Asia and in continental Europe was very thin.

Traders say prompt supplies from the North Sea and other sources are in generous supply but that futures prices reflect prospects of a tighter market later this year.