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Thursday, June 30, 2005

Change of publishing schedule

Dear reader,

I unable to maintain my present frequency of publishing due to increasing work load and pressure.

However, I would try to maintain to publish at least once a week on every Sunday.

Hope your continue to give your support.

Thank you.



Wednesday, June 29, 2005

From Char Kuay Teow to Bio-technology.

INS Bioscience Bhd published its prospectus yesterday,which will be listed on Mesdaq end of July 2005.

Datuk David Yeat Sew Chuong, never went to university, started as a hawker selling "char kuay teow". He later join a direct selling company on a part time basis.

He form his own direct selling company after that and nearly bankrupt once.

He venture into high-tech industry via become a distributor of Digital dictionary imported from Taiwan. The margin for Digital dictionary diminished when everybody enter this industry.

He then venture to sell wheat grass, INS wheat grass is the only branded wheat grass in Malaysia.

We have a lot of company venture into healthcare product. A few even have listed on bursa Malaysia. But only a few invested in Research & Development(R&D) or bio-technology. Majority of them are marketing orientated company rather than R&D driven company.

With the listing of INS Bioscience Bhd on Mesdaq as a bio-technology company. He is one of the rising star in our country bio-technology industry.

Without any tertiary qualification. A person can become a successfully entrepreneur, techpreneur or bio-techpreneur.

What are you waiting for if you are a graduate?


Monday, June 27, 2005

What if you are unemployed?

My readers comprise of Lawyer, Netpreneur, Architec ,but also included some unemployed.

What if you are in the unemployed category?

If you have try your best to get employ but fail. What choice do you have?

You have to venture out on your own. This is the advise given by a lot of writer/entrepreneur to their reader. They advise people to venture out even you have secure job.

What if you have unemployed for sometime and have limited capital?

I feel you can try to explore E-commerce.


1 Business can be created around your hobbies, passion or expertise

2 Your internet business set up cost is very low

All you need is a Domain Name, hosting and a payment gateway.

3 You don't have to rent an office or shop

Your home is your office, this will save you thousand each month. Thus, your business operation cost is very low.

After the dotcoms bubble bust. Does the Dotcom model still work? We see what the co-founder of Apple Computer, Steve Wozniak said.

I have example of E-commerce that running in Malaysia

I assume all blogger are tech savvy enough to understand what is domain name. You need to buy a domain name (.com or That cost RM55. You need a hosting company to host your website. You can get RM200per year if you shop around. Thus, total cost until now is RM255.oo

Most difficult part is get a credit card merchant accounts. Malaysia's bank are very reluctant to support e-commerce. You must satisfied certain criteria in order to open a merchant account.

Most e-commerce in Malaysia fail because they do not accept credit card. People usually do not call you or fax to order after they log out from your website. The desires to order has diminished after they log out from your website. The successful rate is higher if your website accept credit card.

Now, you able to have some company host your merchant account for you like in Singapore an some other in Malaysia. But you need to pay a set up fee and upfront annual fee of approximately amounting to RM2,000. If you have limited capital. I think you better save those money for your working capital.

Further, a lot of US company pay you a US cheque like Adsense, which take 4 to 6 weeks to clear in your bank account. As you have limited capital, it is difficult if you have to continue mailing/courier out your goods while have to wait 4 to 6 week to clear the cheque

One company able to wire transfer the proceed to you every two weeks(at a fee). This provide crucial working capital for start up to roll their cash. Further, they never collect annual fee. But they charge certain rate base on your sales. Their set up fee is relatively low.....USD49 (Less than RM200). Thus your total set up cost is RM455.

They are a few Malaysian company that using that US company to accept payment. One example is above.

The company is

TechnoratiTag: f

Friday, June 24, 2005

Does Pelikan's staff in German enjoy 6 week annual leave

Pelikan has taken over the listing status of Diperdana recently.

Asia File was one of our most competitive stationery producer in our country. It has more than half market shares of the world market. Now, with Pelikan brand has been taken over by a Malaysian. Malaysia might have control the stationery market after glove industry.

Pelikan recently announced that it would provide an internship programme to student of International Islamic University Malaysia (IIUM). Such programme is unique to German management culture. Now, Malaysian has the opportunity to learn the German management culture.

Pelikan recently also announced that it would build a second plant in Puchong. Today, New Straits Times reported that the company is going to cut cost in it Germany Plant.

According to a book "Juggernaut-The Keys to German Success". Staff in German company enjoy 6 weeks annual leave per year. Usually the company would closed down during Chrismas for a period of about 6 weeks. Yet they able to have the most competitive automobile industry like Mercedes, BMW,ect.

However, Pelikan International Bhd's plant in German is making loss. The management promise to keep the plant to retain the technology of the company when they acquired it from the vendor.

Pelikan should disclose to investor in Malaysia whether such staff still enjoy 6 weeks annual leave. If so, what is the strategy of the company to turnaround the plant in German?


Thursday, June 23, 2005

Organic growth & growth via acquisition (M&A)

Wipro in India is an example of a company that growth via acquisition. Over the years, Wipro has acquired the biggest call centre in India and a Financial Data Management company in US.

On the other hand, Infosys is a company that adopted an organic growth strategy in India. Infosys hardly acquired any company other than it acquired an IT company in Australia. The company preferred it cash reserve remain in bank and growth on it own rather than growth via Merger and Acquisition(M&A).

In Malaysia, Berjaya Group is view as a company that growth via M&A. Genting Group claim itself to be a company that preferred organic growth but the company involve in hostile takeover also when it acquired it plantation group, now under Asiatic Development Bhd.

Kuok Brothers Group, the richest man in Malaysia, also claim that they preferred organic growth. The company bought a land and plant and palm oil on the land rather than take over an exiting company when they want to diversified to oil palm plantation.

However, the company recently invest in two company listed on Bursa Malaysia. One is Transmile Group. Thus , usually most company adopt combination of the two strategy rather limit itself to single strategy .

In US, Computer Associates is the company that growth via aggressive M&A. While Bloomberg is the company that want to build everything themselves. Two company also started from 5 employee initially and growth to multi-million business now. Both company also have the policy to provide breakfast to it staff. Even staff number has growth from 5 person to multi country now.

Different type of strategy required different type of management.

A company that adopt organic growth strategy usually head by a sales or marketing people. Or a technical people like Engineer if it is in software industry.

Company that using growth via Merger & Acquisition usually used Accountant, Corporate Finance specialist or Merchant Banker as their CEO.

Does you company have the correct type of CEO?


Wednesday, June 22, 2005

Traditional Marketing Vs Internet Marketing

Creative Director is the key position in traditional marketing company!Not anymore!

Founder and CEO of Efficient Frontier Ellen Siminoff said in a new economy internet marketing company. Using Mathematic methodology to evaluate the best "key word" are more important. In Efficient Frontier, a silicon valley start up company. Out of it 35 employee. 20 is engineer or mathematician.

Both of the founder and CEO of the largest and most profitable internet marketing company Google are engineer.

Efficient Frontier received RM10million venture capital investment recently. With Redpoint Ventures its main investor, has handled RM150million business, estimate by journalist. It get between 7.5% to 15% commission.

Efficient Frontier is one of the many star up recently that help advertiser to purchase their target key word from Yahoo and Google.

Yahoo and Google is not the only advertising platform. In March, MSN announced it would test the pay per click search format in Singapore and French later this year.

Ask Jeeves,which has a contract with Google until 2007, has been acquired by InterActiveCorp (IACI), has launch it pay per click advertisement, such advertisement place on Google promotion link.

This mean advertiser has 4 internet website to purchase their "key word" : Yahoo, Google, MSN and Ask Jeeve.

If AOL able to finalize it merger plan to acquire Kanoodle or Then internet marketing market will be very crowded. The price of "key word" might be reduce in the future.

At the initial period of internet marketing now. Internet marketing only comprises 4.5% of the total advertising expenditure.

summaries and translated from Oriental Daily by Peter


KFC fall under Johor state government 2

Further to my yesterday post on KFC. Today The Star reported that as at 31st March 2005, Kulim has a net debt amounting to RM458.8million. The acquisition would invlove another RM18.7million interest payment per annum. New Straits Times reported that Kulim has a debt of RM595million, which is about 22% of it shareholder fund, minus Cash in hand of RM174million. Also in a smaller net debt situation.

Neither paper reported that KFCH would ultimately control by Johor state government.

Again, I disagree with state government involvement in business. It is using tax payer, our money to compete with private sector.

I feel that Johor state govenment should dispose off shares in Kulim and repay it debt to federal government.

Federal government has to cut diesel subsidy, reduce construction work within the country to improve financial situation.

On the other hand. State government never repay their debt to federal government. They have made substantial loss during Asia Financial Crisis and just finished their restructuring on company like Johor Corporation Bhd. Now, they want to borrow money to acquire our country biggest fast food chain.

Meanwhile, federal government has call off it plan to take over water industry from state governments. Govenment will adopt the model used by Penang Water Supply Corporation. Which listed on Bursa Malaysia and chair by Chief Minister or Menteri Besar.

I hope all state government would channel all their resources to water industry and Menteri Besar should be involve in redusing Non-revenue-water(NRW) if they really interested in business.


Tuesday, June 21, 2005

KFC fall under Johor state government

Kulim (Malaysia) Bhd, a company own by Johor Corporation Bhd, has proposed to take over QSR Brand Bhd, holding company of Kentucky Friend Chicken or KFC Holdings (M) Bhd.

Upon completion of the deal, Johor state government , which control Johor Corporation Bhd would become the ultimate owner of KFC Holdings (M) Bhd.

Johor state government has been identified as one of the bankrupt state by the central government not too long ago.

If the state government have money, why don't they repay it to central government.

Although I am not satisfied with the present management of KFC as they no longer provide knift to customer to eat chicken. However, I do not agree state or federal government step in and compete with private sector.

State government should concentrate on improving the water industry if they really keen on doing business. Rather then compete with private sector in the fast food industry.

KFCH managing director apparently never feel displeasure on such move and he seek approval from YUM! International to disposed of his 5% stake in the company.

Ex-KFCH Chairman apparently has pledged his 20% stake in the company to Soh Chee Wen. This cause him loss control of the company.


Monday, June 20, 2005

Wipro of Malaysia?

Wipro, a company you never heard a decade ago, is the largest technology company in India. It's founder Azim Hasham Premji inherit a palm oil refinery factory from his father at the age of 21. He acquired IBM business in India when IBM was force out of business by the Indian government.

He later shift his strategy from hardware business to software business. He able to close an outsourcing deal with the US giant General Electric when he is a no body. Jack Welch, the ex-chairman and CEO of General Electric write the incident when he first met Azim Premji in his biography. Azim Premji leverage on the deal he get from General Electric to get deal from other US multinational and become the largest technology company and richest man in India at very short period of time. His close relation with the largest company in the world also let him learn how to manage and operate a multinational company.

Wipro using merge and acquisition (M&A) as grow strategy.

In order to gain a foothold in call centre business. Wipro acquired the largest call centre in India. This enable him to compete with Accenture ,IBM and EDS.

Later, Wipro acquired a financial data management company in US. This move enable him to close some deal in financial data management business even when compete with company like Oracle.

Which company would be the likely Wipro of Malaysia?

Our palm oil plantation group, IOI and KLK, never made Information technology as part of their core business. IOI do invest in high-tech business during dotcom boom. But such business no longer made the news on mainstream media again.

KLK at one point of time also employed corporate planner to explorer what business can be invest in with it hugh cash reserve. Until now, they never made information technology their core business.

A company that leverage on IBM's technology in Malaysia is Mesiniaga Bhd. Another company is Penang base e-Business Sdn Bhd founded by a printer Mr Chan Hong Saik. e-Business Sdn Bhd are in financial data management segment. Both company are in partnership to form Niaganet.

In order to create the scale of Wipro. Mesiniaga Bhd and e-Business Sdn Bhd must merge with Malaysian largest call centre Scicom.

The merged entity must be able to close a deal with General Electric if the company want to become Wipro of Malaysia. General Electric has been very aggressive in Malaysia recently.

On 15 June 2005, Air Asia award an engine services and maintenance agreement to General Electric.

On 17 June 2005, GENERAL Electric International (GE) is currently in talks with several banks for possible joint-venture arrangements to gain a foothold in the Malaysian consumer finance business after terminated discussions with Southern Bank Bhd.

On 18 June 2005, GE ENERGY (GE), a unit of US-based conglomerate General Electric Co, is in talks to supply Petroliam Nasional Bhd (Petronas) with turbo compressors which convert natural gas into liquid form to promote cleaner fuel production.

However, to close a deal with General Electric is not an easy job as most of General Electric back room operation has been outsourcing to India.

Wipro also hire Vivek Paul, President and CEO of GE'’s medical equipment to become it Vice Chairman and CEO. Vivek Paul also a specialist in Six Sigma.


Thursday, June 16, 2005

Tata Infotech of Malaysia

Tata group is the largest conglomerate in India. Like our Sime Darby in Malaysia.

India become a rising star of software and outsourcing when old economy company like Tata venturing into the new economy industry. After it has all the spillover effect, especially in human resources. Then only those company specialize in new economy slowly come up one by one.

Tata Group go through the whole "industry revolution" cycle. It started from textile industry, then move to steel industry and then automobile industry. DRB-Hicom Group is a dealer in Malaysia to market Tata motor vehicle like lorry and bus. However, unlike Samsung in Korea. Tata never venture into electrical home appliances product.

Tata venture into knowledge industry started via joint venture with US company Unisys to form a company call Tata Unisys. It then bought over Unisys shares in the company and rename the company Tata Infortech Ltd. Unisys still active in India market.

Malaysia, with it plan in Multimedia Super Corridor (MSC) required a company like Tata Infortech Ltd, an old economy company that have the financial muscle to lead the business community to venture into new economy, to train local human capital, attract talent from oversea, and create a spill over effect to the whole industry.

Ideally Sime Darby should take the lead as it has a lot of in house company to outsourcing to the newly form technology company. However, Information technology is not a core business that on Sime Darby's business plan.

Unisys also has it own unit in Malaysia Unisys (Malaysia) Sdn Bhd and Unisys MSC Sdn Bhd. At the moment, Unisys Malaysia is providing outsourcing services to Maybank, AmBank and BumiputraCommerce Bank.

Maybank handles more than one quarter of Malaysia's cheques. With this agreement, Unisys would process 85 per cent of Maybank total outward cheque-clearing volume at four sites covering eight states in West Malaysia

Unisys handled 40% of the 650,000 cheques processed in Malaysia daily, via its Maybank contract. Unisys has four cheque processing centres in the country.

One of the company that likely to become Malaysia Tata Infotech is HEITECH PADU BHD .

Heitech Padu Bhd used to obtain contract from Permodalan Nasional Bhd (PNB) group of company. Surprisingly, Maybank, a company under PNB Group of company outsource it back office to Unisys, not Heitech Padu. It would be beneficial if Maybank outsource it back office to Unisys condition upon a technical transfer to Malaysian company like Heitech Padu Bhd.

Unisys country manager (Malaysia) Lalit Gupta should be on head hunter list on a lot of ambitious company in Malaysia if they want the expertise and network he acquired.

Sunway Technology Sdn Bhd, a subsidiary of Sunway Group, aggressively building up a shares service business unit but it impact on Malaysia economy is not as great as if Sime Darby do it.


Wednesday, June 15, 2005

Anti-dumping investigation on FACB Ind. Inc Bhd

Some reader raise issue on liberalisation of steel industry. In fact, due to logistic problem, not many of our steel manufacturer export their goods. One exception is FACB Industrial Incorporated Bhd. A stainless steel pipe manufacturer in Shah Alam, Malaysia.

FACB Industrial Incorporated Bhd export 90% of it output of stainless steel pipe via it subsidiary, Kanzan Tetsu Sdn Bhd. Majority of it to US.

However, at one point of time. FACB has been accused of "dumping" it good into US. US government has sent a team to the company's factory to investigate whether there is any dumping or not.

Two years ago. When the world steel price drop to a very low level. US government impose anti-dumping import duty on steel export from China and some other country. Even Malaysian government impose similar import duty on steel imported from China.

I think FACB Ind is affected at that point of time. It goods was impose an anti-dumping import duty on it selling price thus reduce competitiveness. However, steel market react very quickly. Steel price has been escalated and US has since removed its import tariff.

This is how US government treated other developing country on globalization. US government would not hesitate to take unilateral move to protect it own industry while it want others country to open up their market to them.


Why gangterism and bullying in school become more serious?

There is a bullying case highlighted in mainstream media recently. Gangsterism in school is getting more serious now a day. Such problem is not that serious previously, Why?

I remember during the time when I attend secondary school. I do encounter such problem when study Form 1 and Form 2. However, the problem diminished when enter Form 3.

This is because student have to prepare for Sijil Rendah Pelajaran(S.R.P) Examination. Student unable to proceed to Form 4 if they fail in such examination. After the examination. Those "Gangster" usually disqualify to proceed to Form 4. Some able to make it, but those who make it usually either they have change or his gang has disappear and he left without any support.

However, recent change from SRP to PMR examination which student able to proceed to Form 4 regarless they have pass the examination (PMR) has remove such mechanism(disqualification). Student need not study hard to ensure that they able secure a place in Form 4. Thus, their extra time would spend on undesired activities like gangterism.

Further, those problem student, even fail in PMR, able to proceed to Form 4 to continue creating problem to others. Unlike previous SRP system where such people has been disqualify.

Solution to this problem is made PMR examination like SRP exam previously. Those fail in PMR has to transfer to a "Special Sekolah berasrama penuh" to seperate them from good student. Ideally, such school should be those under-utilized school in remote area(Kampung). Thus, government need not close down such under- utilized school, and bad student able to be separated from good one. Bad student now become unable to provide bad influence to good student. Thus, killing two bird in one stone.

Student has discipline problem and those expel from school due to disciplinary problem would be send to such "Special sekolah berasrama penuh". Thus without sending them to job market earlier and have to settle with low prospect and low pay job like now. This, I feel would reduced gangterism and bullying problem face by our education system recently.


Tuesday, June 14, 2005

Why should we open our financial industry and legal profession?

China agreed to limit the growth in its exports of 10 textile and clothing products to the European Union to between eight and 12.5 percent a year, an EU diplomat close to the negotiations said on Friday.

World Trade organization(WTO) theory of globalization are base on Comparative Advatage theory. Under WTO agreement. Developed country like US and EU countries would remove trade barrier on labour intensive industry like textile on 1 Jan 2005. Whereas developing country like Malaysia would remove restriction on services industry like financial industry and legal profession on 2008.

Malaysia has well prepared on liberalisation of financial industry via consolidated all bank to 10 anchor bank. Overlap branch has been closed down and staff has been retrenched. Recently, Malaysia has issue 5 stock brokerage licenses to foreign stock broker in preparation of such liberalisation.

US and EU, apparently caught unprepared for liberalisation of labour intensive industry like textile industry. They start retrenchment only from 2005. They request to extent the full liberalisation 3 years to 2008.

Shouldnt they start preparing such liberalisation like Malaysia did for it financial industry?

Should Malaysia extent liberalisation of our services industry 3 years to 2011? It is not fair for Malaysia to liberalised its servies industry while developed country still protecting their labour intensive industry. They might seek extension again after 3 years while we have issue 5 foreign bokerage licenses and more?

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Friday, June 10, 2005

Competitiveness of Indian Community in Malaysia

Prime Minister Datuk Seri Abdullah Ahmad Badawi said the Implementation and Co-ordination Unit (ICU) in the Prime MinisterÂ’s Department would look into recommendations to increase the equity share from the present 1.5% to 3% by 2010, as proposed by MIC.


So low! Really?

When I was a child. My grandmother told me "If you go to General Hospital to see doctor when you are sick. If the doctor is an Indian, you are save, as Indian doctor is skillfull."

My grandfather also told me. Indian lawyer is much more better than other lawyer. All this was told by my grandparent when I was a child. Clearly, Indian has a large skillfull middle income group or professional since long time ago.

How about more richer people?

The second richest people in Malaysia after Robert Kok, is Ananda Krishnan, an Indian which control the 5th largest market capitalization company in Malaysia, Maxis. The first 4 largest market capitalization company is Government Link Company(GLC). Which means Ananda is controlling the largest market capitalization company in Bursa Malaysia that control by individual. Ananda, an Indian, also have the biggest market shares of mobile telecommunication market in Malaysia via Maxis. Monopoly of satellite broardcast in Malaysia via Astro.

A few Indian entrepreneur has been surface after their company listed on Bursa Malaysia slowly one by one. Angel investor Ahmad Kabeer Mohamed Nagoor which control a few high-tech company like AKN Tehnology , AKN MTech. etc, is one of them.

The most recent and most dramatic one is Air Asia's Tony Fernandes. An Indian. He is also control our low cost carrier in Malaysia.

I really feel sorry when I read an unlisted company control by Indian Globe Silk Store in Jalan Tunku Abdul Rahman is not doing well. However, the store has been acquired by Kamdar, a newly listed company via a reverse take over. Which control by Indian too.

All of the name listed above was never heard before by me when I was in secondary school. They slowly come out one by one. It might not be surprise they would be some more to surface in the future.

Clearly, they achieved this without any quota system.

Further, Indian community control our Money Changes industry. They are so skillful in this trade that they able to send large amount of money out of our country without leaving any record in Bank Negara prior capital control and currency peg. They also control newspaper retail industry in Malaysia. Remember you get your newspaper fromwho every morning? Those business, although is not a big business compare to bank and large retailer. I do not think that only comprises less than 1.5% collectively.

I feel they are doing better without any quota impose.

Kedah Menteri Besar admitted to Penang's hospital when he is sick, and latter to Singapore's hospital. Why is he not confident of doctor in his own state, Kedah!

If quota system is being implement on Indian community. Do you think I would tell my descendent that Indian doctor is skillfull ?

I think Samy Vellu would admit to Singapore hospital too if quota system is being implemented on Indian community. Think twice to avoid this.

The Indian community problem, like gangster, high school drop out rate in estate, has to be solve using alternative method, not quota.


Wednesday, June 08, 2005

Book Smarts and Street Smart?

Trump and Kendra Todd from "The Apprentice"

Donald Trump select a "Book Smarts" Kendra Todd as his new apprentice in his TV reality show "The Apprentice". Unlike season 1 winner Bill Rancic is a "Street Smarts" without any paper qualification. Thus, it is really up to employer whether he prefer a street smarts or book smarts.

At the time Genting Bhd chairman appointed Tan Koon Swan as a General Manager of his company to develop Genting Highland Resort. Tan Koon Swan only have STPM qualification and is just a Senior Tax Advisor From Esso.

Even in high-tech industry, Charles B Wang, an American Chinese founder of Computer Associate(CA) in US also appointed a non-graduate Sanjay Kumar, an American Indian, as it Chief Executive Officer and President.

Thus, it really depend on employer.


Tuesday, June 07, 2005

Competitiveness of Penang & USM

A number of company quoted on Mesdaq are from Penang. Like online recruitment agent; made in Malaysia ERP software Karensoft; non listed entrepreneur like and Chan Hong Saik of e-Business Sdn Bhd.

We also have venture capitalist or Angel investor Ahmad Kabeer Mohamed Nagoor which has invested in a few high-tech company like AKN Tehnology and AKN MTech.

Founder of e-Business Sdn Bhd Mr Chan Hong Saik said majority of their staff are hire from University Sains Malaysia of Penang. The company's product are used by a lot of multinational bank. This proved that graduate from USM is competitive.

Thus, Penang has netpreneur, angel investor and a university that able to produce quality graduate. Why Multimedia Super Corridor (MSC) still restricted to Cyberjaya, KLCC area.

Like Ireland, Penang able to attract investor of multinational like Intel etc, but MSC failed to get large enough investment from company like Microsoft compare to Ireland and India. I feel if Penang island declare as MSC. It would signifiantly improve our country competitiveness against Ireland and India.

Remember that our competitors in this globalization world is country like Ireland and India. Not among any state within our country.

Link: 评槟州政府成绩单