By product of quota system

This article refer to a letter from Janine, Penang published on The Star dated 29 May 2005.

She stated that:
Many of my Chinese-educated course mates who applied for employment at an on-campus career fair received between two and three job offers even before the start of our final examinations. The offers were from companies like Agilent, Motorola and Intel. As a matter of fact, one of my course mates was offered a job at all three companies. Friends who graduated with a degree in Physics were offered starting salaries between RM2,000 and RM3,000.


This is a known secret among employer. Under quota system, non-bumi must excel in academic in order to gain admitting to local public university. Those who able to gain enter into local public university are top student among non-bumi. They are very in demand by employer, including Multinational Company stated above. Tony Pua is correct on advising best student to joint UM.

Those non-bumi who study in private institution are consider average and below average student. Like the other letter.

Whereas top bumi student were sent to government residential school ( sekolah berasrama penuh) during their secondary and would sent to overseas university after that. Those bumi student admitted to local public university are consider average or below average student. Thus, for employer, they would prefer to hire an overseas bumi graduate than a bumi graduated from a local public university. Like our new CEO of Khazanah Holding Bhd. He was employed by a MNC before.

If government is not serious about meritocracy. The problem would persist as employer might view them as a Diploma holder rather than a Degree holder.

If graduates has good attitude like Janine of not complaining a low starting salary. I think they might able to secure a job even they are an average student.

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Does Nanyang still want to dispose off Life Publishers?

When everyone is talking about 528 Debacle, change to tabloid version of its evening edition and slashing of newsstand price by half to 60 sen a copy. It is not sure Nanyang still want to proceed with it plan to dispose off Life Publishers Bhd ?

Two years ago. Nanyang intend to dispose off Life Publishers Bhd, which publish a tabloid New Life Post and more than a dozen of other magazine listed on it website. This is to enable Nanyang to concentrate on it core business of Nanyang and China Press, which competing fiercely with Sin Chew group to protect it market shares. At that point of time. Astro also launch a new chinese magazine (V-Mag)competing with magazine publish by Life Publishers Bhd. Other new entrant including company own by directors of M-Mode Bhd.

As Huaren Holdings do not want the company to fall into hand of competitors like Sin Chew Daily nor opposition. Thus, it make an offer to veteran MCA which publish a tabloid Mun Sang Poh base in Ipoh. The asking price is RM2million.

RM2million comprised the brand, license and staff only. Excluding any building or printing plant. As Mun Sang Poh has it own printing plant.

Mun Sang Poh however counter offer a non-negotiable price of RM1million only. Thus, the deal cannot go thought.

It is not clear why Nanyang did not make such offer to The Star. The Star also published one chinese magazine call Shanghai. The division is insignificant to The Star. This might be cause by Company Act prohibited any related party transaction within 3 years after it acquired a company.

As this is the 4th anniversary of Huaren takover. Nanyang can sell that division to The Star without any legal restriction.

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University of Sunderland,De Montfort University and scholarship

Hi Tony,

It's impressive how much work you put into this blog. However, to be fair, I like to highlight the following:

One of the founding member of a public listed company, WCT Engineering Bhd is graduated from University of Sunderland (Ranked 79/122 Overall; 66/111 for Computer Science). WCT Engineering Bhd is view as a well manage company by a lot analyst. However, He study Economic like you and not in IT.

I do have a friend lecture in Binary College many years ago. He is still pursuing a professional degree when he lecture at that college at that point of time!!!!I think they are not that excellent like what you said. However, that was many years ago.

University of Sunderland degrees are also available through Systematic Education Group Bhd(Management, not in IT ). The programme able to obtain study loan financing package from local bank. Non of other programme in Systematic Education Group Bhd able to get such financing package.

I have a subordinate graduated from De Montfort University (DMU) (Ranked 83/122 Overall; 95/111 for Computer Science) in Accounting & Finance before. Her perfomance is good. She is a bumi. Maybe DMU and FTMS strenght and core competent is in Accounting & Finance. Not IT. However, One of the columnist in The Star, J Phang (http://www.k-workers.net)is Accountant and hold a Master in IT. His Master is obtain from DMU and FTMS.

As a consumer or a customer of product(Graduate) produce by local University. I can see the reason why your concern on the quality of our graduate. On behalf of all our student. Can your company give some scholarship for those who obtain a place in the University of your choice?


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Police should under state government!

The dust on Royal Commission report on the Police seem has settle. However, I feel the report has missed out one recommendation.

In Brazil, Taiwan and US. Police report to Mayor. Not President. However, there is a "Federal Bureau of Investigation" call FBI governed by the President of America. Mayor of a city is a person that responsible for fighting crime. In Malaysia, Datuk Bandar or Mayor is not elected representative. Only state government, Menteri Besar and Chief Minister are elected by the public. Thus, I feel Police should under State Government report to each Menteri Besar and Chief Minister, at least the crime fighting division. Other division can report to federal government, like FBI in US.

Then, the Police organization become less powerful. Nanyang has reported that ACA has investigated the 34million police before but the file has been closed. Now the file has been "re-open" after the Royal Commission report. This might be cause by the Police organization is too powerful. The ACA not dare to touch the big fish? It might not be surprise that eventually the file would close again.

If the Police organization is separate into two. One, like FBI report to federal government and the other crime fighting division report to state government.

Then the ACA might not feel offended a large, powerful organization reported to Prime Minister when they act on police who did wrong. ACA usually smaller, in term of staff number compare with Police.

Further, FBI can investigate on police and vice-versa..... A check & balance occur. Menteri Besar and Chief Minister able to act on their respective state crime rate, without a police officer answer them arrogantly that the crime rate has "reduced" according to their record. Police of each state is competing with their counter part in other state and thus imcrease competitiveness of the police force.

One disadvantage on this system, if implemented, is police under PAS ruling state has to be act on Hudud Law. However, this is the choice of that state people. They have to face the consequences of their vote!

Update: On 16 Dec 2005 The Sun's columnist Radzuan Halim do comment briefly on such issue. He stated :

Its centralised management structure had continued to this day. Contrast this with the separate constabularies of Great Britain and the separate state, county and city police forces in the United States.

We do need to review the management structure to determine if certain RMP functions could be better placed under other agencies, to consider the formation of regional contingents to take up certain Bukit Aman functions and so on.

Read full article here

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Who is Dr Wan Hasni Wan Sulaiman

Dr Wan Hasni Wan Sulaiman is one of the founder and Executive Chairman of Abrar Corporation. He studied Actuarial science in one of the top US actuarial university.

When Anwar Ibrahim visit that University as Education Minister. Wan Hasni Wan Sulaiman has a personal meeting with Anwar and become supporter of Anwar since then. He shift to Finance from Actuarial when he study PhD and obtain a Dr in Finance. During his PhD, he started a hedge fund like George Soros but using Islamic finance method. With the support from his rich Arab course meet, he able to raise fund and invest in high-tech stock. With his skillful investment strategy. He become a millionaire in US when he complete his Dr in Finance.

He bring his fund back to Malaysia to form Abrar Group. Anwar has become Finance Minister and Deputy Prime Minister at that point of time. However, Abrar core business is in construction and not finance! No wonder our present Prime Minister said we have too much contractor??

During Asia Financial Crisis. Dr Wan Hasni Wan Sulaiman was seen as crony of Anwar. Thus, Abrar Group was not save like UEM(Time),MRCB, Naluri (MAS)and Indah Water. Abrar's Finance Company was not selected as one of the anchor bank and merge with another bank.

It is not sure whether he has a plan to make a come back like ex-chairman of KFC after release of Anwar.

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BMF Scandal at RM8?

Cover of Novel "Flying Corcordile"

I like to read "Finance & Commerce Fiction". In Hong Kong, there would be a "finance & Commerce Fiction" come out immediately after a corporate event happen.

A "Finance & Commercial" story base on BMF Scandal has been out in the market for many years already. It seem not many Malaysian aware of it. May be because it is written in Mandarin.

The copy, due to lack of demand. Now under something like "warehouse sales" in Popular Bookstore of Petaling street under "Buy 3 at RM24" offer section.

The Novel name as "Flying crocodile" in Mandarin only left volume 1. Volume 2 has been sold out. However, each volume has it own story. You able to read it as a story even with volume 1 only.

Popular's book store staff, either lack of knowledge of content of the book or may be it is a sensitive issue. Did not promote it as a "story based on BMF scandal" . Thus have to sell it at substantial discount! Happy reading


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Air Asia in banking Industry

Recent service charge by bank has lead to the public wish an Air Asia exist in banking industry. Air Asia with it low price strategy yet able to maintain profit, makes Malaysia Airline System Bhd(MAS) difficult to used it normal reason to increase it freight rate. Despite MAS price is higher than Air Asia. It local division is still making loss and have to use profit on foreign flies to subsidy it local route.

Recent banking charge has upset consumer. They hope there is a bank as competitive as Air Asia, able to maintain low price yet remain profitable exist in Malaysia banking industry.

Meanwhile, MAS still refuse to let go it loss making concessionaire on local route to Air Asia. This does not benefit both it shareholder and their customer, public consumer.

In fact such bank do occur before. Phileo Allied Bank which has been merge to Maybank is the one. Phileo Allied Bank which create "oneACCOUNT' is a current account that pay you FD interest rate. Unlike now that bank charge you if your bank account balance lower than certain limit. Bank Negara initially stated that it has no right to interfere a bank charge it customer on service it provided. However, Bank Negara impose a cap or maximum limit on charges only after some opposition from public.

If you read the book "Phileo Story" published by The Edge (Can get a copy in MPH-Midvalley).When Phileo Allied Bank wanted to extent it FD interest rate current account to corporate customer call "oneCORPORATE". Bank Negera step in to prohibit such product that benefit it customer. Why Bank Negara has right to prohibit a bank implement a product that will benefit it ccustomer but refuse to intervene when they implement something that has disadvantage to it customer?

In fact, most of Maybank customer now that using internet banking services are Phileo Allied Bank customer that become a customer of Maybank after merger. However, when I spoke to one customer that have million in his bank account. He doesn't mind paying such tiny bank charge that compare with the size of his bank balance. Only person like you and I that do not have much bank balance in account are the one who opposed. However, such charges discourage use of internet banking and E-commerce that desperately wanted by Energy, Water and Communications Minister Datuk Seri Dr Lim Keng Yaik.

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Real battle is with Kimberley-Clark

Recent battle between two glove manufacturing company Supermax and Topglove for "World largest glove manufacturer" position after Topglove successfully over take US's Kimberly-Clark as world largest manufacturer of rubber glove create eye bow among Malaysian.

With our textile and garment industry is threaten by China manufacturer after US and EU remove it quota on the industry. However, our glove manufacturer has display it competitiveness. We have find our niche and core competencies in glove manufacturing industry. Datuk Seri Stanley Thai, who is ex-textile and garment salesman, has successfully shifted his profession to glove industry.

However, another glove maker Rubberex said their main competitor is Australia’s Ansell and Mapa Group of France, differ from Supermax and Topglove who main competitor is Kimberly-Clark.

It should be note that glove industry is not Kimberly-Clarke's only business. It has a diversified business. Despite aggressive acquisition trail by Supermax. It only focus on glove industry. It is difficult to create a group as big as Kimberly-Clark.

If Malaysian company is serious about creating a company as big as Kimberly-Clark. We should consider a merger between glove manufacturer and NTPM. NTPM is also a company that successfully overtake Kimberly-Clark in Malaysia market only. A similar company of NTPM in Brazil run by Taiwanese also able to overtake Kimberly-Clark market shares in Brazil. Looking at the Taiwanese company experience. NTPM could be easily penetrate into Indonesian market.

One day, we might have a company as big as Kimberly-Clark in Malaysia!


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Malaysia's Mitsubishi in the making

Malaysia's 4th largest market capitalisation company in Bursa Malaysia MISC has elevated to second spot recently. MISC's influence of Malaysia economic has become like Mitsubishi of Japan.

Mitsubishi in Japan start from shipping industry like MISC. It slowly diversified to shipbuilding and banking. Similarly, MISC is the largest shipping group in Malaysia. It has recently to rebrand it ship building unit Malaysia Shipyard Engineering Sdn Bhd (MSE) to Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE). What it lack now is a banking group.

However, MMHE chairman recently stated that MMHE is plannning to cease it shipbuilding business. However, this does not affect its influence on Malaysia's Economic. Yesterday, it announced an impressive result.

If a banking group is added to MISC like Mitsubishi in Japan. MISC would certainly become the largest capitalised public listed company on Bursa Malaysia. Petronas, holding company of MISC must be able to used it wide net work to expand such banking group in Malaysia and create an influencial conglomerate like Mitsubishi in Japan.

However, conglomerate in Japan like Mitsubishi are said to be the cause of recession of Japan in the last ten years. However, with the experience of Asia financial crisis. I feel Malaysia able to come out a prevention measure to prevent the occurance of non-performing loan in its banking system like Japan again.


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