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Friday, April 28, 2006

Stupid Singaporeans and Li Ao

Taiwan lawmaker(Independent Member of Parliament), writer, historian, ex-President candidate and TV host Li Ao, who recently ranked Singaporeans rather lower in natural intelligence to the people in Taiwan and Hong Kong has create a controversial in Singapore recently.

Taiwanese are scoundrels, but lovable, Hong Kong people are craftier, (Chinese mainlanders are unfathomable) and Singaporeans are stupider,?he said, adding that it is partially due to genetics. The original migrants who came here from China were of poor stock?

"Predictably, Singaporeans have reacted angrily to the terms stupid and poor genes, dismissing them as a popularity stunt that takes no account of their successful, modern achievements. This genetic weakness doesn't aptly describe todays diverse, more mature and worldly-wise generation. " write Seah Chiang Nee, a columnist at The Star base in Singapore.

However, Singapore, usually rank higher than Taiwan in world Competitive ranking; It is one of the lowest crime rate, lowest corruption rate in the world. Li Ao, a historian and a writer in Taiwan who used to oppose Chiang family (First & Second President) and ruling party Kuo Min Tang in Taiwan was view as a hero in Taiwan especially among ladies.

Although he is just a writer, he do not lack of sex partner and he marriaged to an actress before. He reveal all his sex relation and romantic affairs in his autobiography. This really unethic as majority of his ex-girl friend has marriage with husband and children. This has create difficulties to his ex-girl friend and their family.

He pround of his ability to attract ladies. Once he mentioned that a person who pass exam in ancient China to become a high ranking official or a Minister of emperor in China. His wife heard the news was happy initially. However jeoleous family member who husband unable to pass such exam told her that emperor would chop off his husband cock in order to become high ranking official and Minister. When the person back home, his wife look worried and not happy. The man confused and ask his wife why she is not happy when he able to become a Minister. The wife reply that she do not wish her husband become Minister but without cock. The husband said no such thing and show his cock to his wife. The wife become happy and laugh eventually when she saw her husband cock still remain intact. The man said that why my wife is not happy even I become a Minister. Sex satisfaction is more important than become Minister. It is not sure Li Ao get this story via history study (He is historian) or he try to use this story to show off to all the ruling party Minister to imply that he is more happy even he is not a high ranking official and a Minister.

In recent trip to Singapore to clarifiedarrified his "Stupid" remark to Singaporean. He praise Lee Kuan Yew to lead Singaapore to achieved present status.

Some commentator claim that if Li Ao live in Singapore. Judging from how Lee Kuan Yew treated his opposition. What is the fate of Li Ao is yet to be determine.

Li Ao, after release from jail, still able to join politic and become independent legislator in Taiwan. He also try to become Taiwan President in one of the previous election. He also become a host in Phoenixt TV station in Taiwan. His program able to view at Astro in Malaysia.


Tuesday, April 25, 2006

Scenic bridge - Gainer and loser

The debate of Scenic Bridge continue. However, the debate focus on government to government and national pride. However, few body analyze the benefit and threat of Scenic Bridge to the people.


1 Link Kedua Sdn Bhd - Operator of Second Crossing between Malaysia and Singapore. The second link still have extra capacity and under utilize. If the causeway has been demolished. traffic in second link will increase. Link Kedua might able to increase it toll rate to boost traffic. However, recent fuel hike received unwelcome response from people. This might be one of the reason government do not wish to proceed with Scenic Bridge.

2 Gerbang Perdana Sdn Bhd - Whether the government would like to proceed to build the Scenic bridge or not Gerbang Perdana Sdn Bhd would gain from it. It the government proceed with the project. As a concession holder of the Scenic Bridge, Gerbang Perdana would be the main beneficiary. It get compensation if government do not wish to proceed with the project.

3 Johor Port and Port of Tanjung Pelepas - Both port control by bumiputra tycoon Tan Sri Syed Moktar. If Malaysia able to demolish the causeway and replace by a bridge. This would enhance the competitiveness of both port against Singapore. Syed Moktar also control 20% of Gerbang Perdana via DRB-Hicom group.


1 People from both country - People from both country will be subjected to higher toll rate once the causeway is being demolished.

2 Transporter - transporter, who is major user of the causeway and second link. Would have to pay higher toll rate.

3 Tax payer - Tax payer become loser especially government have to pay enormous compensation to Gerbang Perdana.

4 Port Authority of Singapore - Malaysia port become more competitive and this will eaten Singapore's market shares in port management.


1 Singapore's people and it port authority become the main loser if government proceed with Scenic Bridge. Thus, Singapore do not want the bridge and Malaysia need the bridge more than Singapore. But Malaysia government fail to used a win-win approach in negotiation with Singapore, therefore, the negotiation fail. Singapore lose nothing if negotiation fail.

2 Users of the two crossing will subject to higher toll rate if government proceed to build the bridge. Thus, people should not upset over the cancellation. Only government would upset on it fail negotiation.

Updated Link : Global Voice Online
My Apple Menu: Singapore Surf

Wednesday, April 12, 2006

Shares price hit record high! What's next?

The Kuala Lumpur Composite Index (KLCI) rose to its highest level in nearly eight months with trading volume hitting a new record at over two billion shares, Asian markets, which climbed to 16-year highs, were aided by continued gains in their currencies that were led by the Chinese yuan, which hit a new post-revaluation high Last week.

Then property counter become another theme play by punter.

The question is: what happen next?

If you recall 1993 stock market bull run when the stock market is going up. The direct beneficiary is stockbroking firm and restaurant.

When stock trading volume goes up. The main beneficiaries are stock broking industry as their brokerage income would increase. Other profession like engineer would resigned to become a remisier. The only landscape difference is now the commission rate can be negotiated to substantially lower than in 1993. In 1993, commission rate is fixed at 1% of the transaction value but now commission can be as low as 0.3%, A 70% drop.

Punter might remember that in 1993, a stockbroking house market value can be as high as a commercial bank. At that point of time, we do not have universal broker. Now, a stockbroking company can become Investment Banker to collect deposit even brokerage margin has substantially lower. I do not understand why the outgoing Southern Bank Berhad substantial shareholder never negotiate to buy back it stock broking arm and Merchant Bank to form an Investment Bank. CIMB, which itself a leading Merchant Bank and it stockbroking arm a leading institutional trader, do not required Southern Bank Bhd's stockbroking arm and merchant bank. This is a poor exits strategy advised by a foreign adviser.

Another landscape different is now punter can directly buy a counter call Bursa Malaysia rather than punt on individual stock broking firm. If they unable to pick a counter. However, Bursa Malaysia shares price has rise substantially compare with stockbroking company.

If you see punter and retailer earning substantial money from the stock market. They will take their lunch in expensive restaurant and eat something like shark fin on a daily basis. You would find you unable to get a place in such restaurant during lunch time. Thus, I feel TT Resources Bhd is a good bet if stock market continues to rise.

TT Resources Bhd own Tai Thong Restaurant, It also own bridal houses. Other business included : Gloria Jeans Coffee and San Francisco Stake house.

Update: Brokers to gain from big turnover
Brokers are holding large stash of cash

Link: Investment Advisor


Monday, April 10, 2006

Pensonic enter water filtration business

In Malaysia, poor quality of water provided by government has resulted water filtration become a big business. The market is dominated by franchise company like NESH and NEP's Diamond Energy Water and some other various direct selling company.

Pensonic is one of the listed Malaysian electrical home appliance company. Other Malaysian electrical home appliance company that listed on the stock exchange including, multinational Panasonic (Formerly known as Matsushita), air-conditional specialist OYL, manufacturer Khind, trader Pensonic which market product under the same brand and Fiamma Holding Bhd that have numerous brand that including Elba and MEC etc, and I Bhd . Of course, we have other numerous OEM manufacturer that list on the stock exchange. Such OEM manufacturer manufacture for numerous MNC brand but they do not have their own Malaysia brand.

Other than multinational Panasonic, Malaysia most competitive electrical home appliance industry is air-conditional manufacturer OYL as Malaysia is the largest air-conditional exporter in the world. Another Malaysia company that able to compete worldwide is Uchi Technologies Bhd, the company manufacture electronic coffee makers.

With the electrical home appliance slowly dominated by China's low cost manufacture goods. Malaysian company is difficult to become competitive in TV and audio market. Market rumors said that even air-conditional manufacturer OYL was up for sales. Thus, the only way to survive to compete with China low cost manufacturer is like how US and Europe company compete with Japanese a decade ago...... Venture into health care equipment like GE in US and Phillips in Europe.

Pensonic recent venture into water filter and purified system signified a good move by Malaysia electrical home appliance manufacturer. Earlier, Uchi Technologies Bhd also has announced boosting of biotechnology business.


Friday, April 07, 2006

Negligent by Proton's directors?

On 28 March 2006, Proton chairman chairman Datuk Mohd Azlan Hashim said that Proton Holdings Bhd's board was not given full details of the acquisition of the debt-laden MV Agusta Motors SpA (MVAM) when the deal was executed in 2004. He said that the board was not aware that the MVAM minority shareholders had veto powers on 57.75% stake in MVAM was acquired for RM367.6 million (70 million euros) on Dec 1, 2004.

How can a director of the company treated a deal amounting to RM367.6 million that likely that they do not aware of there is a veto power imposed by minority of MV Agusta. Apparently they are negligent in performing their duty as a director and should tender resignation as director of the company.

Actually, such material event should be disclosed to all minority shareholder of Proton before the deal go through. Not disclosed only after the company has disposed off the shares at controversy 1 Euro. However, Proton has stated under clause 3.2 on Proton statement on the disposal of interest in MV Agusta Motors SpA that :

In so far as the regulatory obligations of a public listed company are concerned, Proton has complied with all necessary requirements of Bursa Malaysia. However, addressing the matter publicly was not an option until now, as the agreement to dispose of the interest in MVAM was conditional and restricted the ability of Proton to fully address the uninformed speculation in the public domain.

In addition, it was also felt that responding to the allegations prematurely would have detracted from the main issue at hand, which was to resolve the MVAM issue and avert the potential liability. All this is part of acting in the best interest of the shareholders.

Minority watchdog, can you accept such explanation?

Even minority watchdog willing to accept such explanation. Can directors just claim that they are not aware there is a veto power on a deal that amounting to million and disclaim responsibility. It look like any person walking on the street is more brilliant and competent than Proton's director. What is the point of Company Commission of Malaysia or Suruhanjaya Syarikat Malaysia (SSM) required directors to attend course but director need not resigned from their position after a negligent has occur?

Other that the veto power. The founder of MV Agusta also has an anti-dilution clauses that protect the founder's interest. This was not disclosed to minority shareholder of at the time of acquiring MV Agusta. Only disclosed to the public on 28 March 2006 after disposed off the investment at controversy one Euro.

No disclosure make to minority shareholder when Proton exposure to bankruptcy risk cause by unique legal framework of Italy, where debt of subsidiary MV Agusta can cause a holding company Proton bankrupt.

Of course, Proton advisor Tun Dr Mahathir Mohamad is not convinced on the explanation.

However, can we just close off the issue like this?


Thursday, April 06, 2006

DiGi shares price hit RM9.30

On 26 December 2006, This blog has highlighted that Macquarie Research analyst Premanand has a price target for at RM9.20.

One reader who unable to keep a job in research houses stated that smart investor should not follow analyst recommendations.

Now, in less than 4 months, those who act on such report has make money. DiGi hit RM9.30 at 9.45am today.

While I don't think I am a smart investor. However, it is undeniable that I am an investor that make money. Ahem!

Earlier, DiGi fail to secure 3G spectrum license from Malaysia government. However, technology columnist Oon Yeoh has commented that "Not getting 3G blessing for DiGi".

Update: DiGi closed at RM9.45 today
DiGi at 6-year high on capital repayment plan


Wednesday, April 05, 2006

Likely Hyundai of Malaysia

I have commented on Mitsubishi of Malaysia, Samsung of Malaysia, SK Telecom of Malaysia, Acer of Malaysia , Wipro of Malaysia , Tata Infotech of Malaysia , Kimberley-Clark of Malaysia. Now it 's time to consider: which company is the likely Hyundai of Malaysia?

Base on Hyundai industrial cycle. Hyundai have started from a transport company, a motor vehicle workshop and then Construction, then shipbuilding, then automobile summary as follow:


South Korea company able to transform a construction engineering company into a shipbuilding company. From knowledge gain from shipbuilding, they able to build car! A Korea's national car!

The only public listed company that fulfill the above industrial cycle is Muhibbah engineering (M) Bhd.

Source said that Muhibbah Engineering (M) Bhd was founded by previous founder and management of Nam Fatt Corporation Berhad. Thus, was not new to engineering and construction industry. The company venture into crane industry via Favelle Favco Berhad The company is in the process of listing Favelle Favco Berhad to Bursa Malaysia at the moment.

The company venture into shipbuilding industry via Muhibbah Marine Engineering (Deutschland) GmbH. Thus, Muhibbah industrial cycle is most similar to Hyundai:

Construction-------> Shipbuilding------->?

Hyundai has operate a car workshop at the initial stage to gain knowledge in automobile industry. This look like Boon Siew of Oriental at the beginning. Boon Siew start to work in a transport company to gain engineering knowledge before he get Honda franchise in Malaysia. However, Boon Siew and Oriental never venture into construction indsutry after that.

Muhibbah start from a construction company, then diversified to shipbuiding, despite not similar to Boon Siew of Oriental and Hyundai. Muhibbah has experience in crane industrial via Favelle Favco Berhad. They have an airline support industry as well. Thus, Muhibbah Engineering definately has technical capability to venture into automobile industry in future, this make Muhibbah a mini Hyundai in Malaysia.