Singapore Stock Market News

Plantations - Indonesia passes plantation bill but...

StockFanatic
Publish date: Thu, 02 Oct 2014, 08:22 AM
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Indonesia's decision to drop the 30% foreign ownership limit clause from the plantation bill passed is positive for Malaysian- and Singapore-listed planters as the new bill allows them to keep their existing stakes in Indonesian estates. However, the foreign ownership risk persists as the new bill allows changes in foreign shareholding limits to be made through government regulations. This uncertainty may slow down Malaysian planters' expansion in Indonesia. We maintain our Neutral rating on the sector, with First Resources as our top pick.
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