Suitability of Maybank CEO as a Minister

Malaysia government used to appoint CEO of Maybank as governor of Bank Negara. However, since internal promotion of Tan Sri Dato' Sri Dr. Zeti Akhtar Aziz as the 7th and current governor of Bank Negara Malaysia, Malaysia's central bank. Dr Zeti remain as governor of Bank Negara since May 2000, and was the first woman in the position. In 2013, Tan Sri Dr Zeti Akhtar Aziz has again been accorded “Grade A” among the heads of central banks for the 10th time by the Global Finance magazine.


Since the appointment of Tan Sri Dr Zeti. CEO of Maybank no longer get appointment to governor of Bank Negara. In fact, CEO of Maybank get appointment as Minister in Prime Minister Department. However, is this suitable?

One of renown political analyst, who is member of ruling party MCA, said in a TV interview that it is Minister of Prime Minister Department, Tan Sri Amirsham Abdul Aziz ,former president and chief executive officer of Maybank recommendation of numerous price hike of petrol that cause ruling party loss it 2/3 majority and the fall of Prime Minister  Datuk Seri Abdullah Ahmad Badawi.

Current Prime Minister Dato' Sri Najib appointed CEO of Maybank Dato' Seri Abdul Wahid Omar as Minister of Prime Minister Department again. I like Abdul Wahid Omar as he is from Corporate Finance Department. Personally, I like CEO from Corporate Finance. Journalist also like in as a CEO of various GLC as he always done his homework, well prepare, have all the figure, know all the fact and able to answer all query from journalist.

However, whether he is suitable as a Minister of Prime Minster Department is another question. The recent price hike of petrol, sugar, toll etc have cause a lot of dissatisfaction. He might have solve the twin deficit problem for the country. However, whether the pace and timing is political correct or not is yet to be see.

Mahathir : The Cost of Government

Incest, rape and sunat

Malaysia have a problem of high rape case, or more specifically incest. Usually committed by one race. At one point, one Minister blame it to poverty and structure of housing that resemble pigeon holes in the sky.

Past president of the Malaysian Institute of Architects (PAM) Dr Tan Loke Mun disagrees that confined and crowded living quarters are breeding grounds for rapists.

 

“We don’t find an increase of rape in densely populated cities like in Hong Kong, Singapore, China, Japan or Scandinavian countries where land is scarce and expensive,” he argues.

 

Another arguement is on dress code. One race claim a ladies should cover their "aurat" whereas other race claim is their human right for a person to choose their own dress code. The argument has been on for many years and there is no ending of such debate as each race or religion demand other to respect their right.

 

In fact, Marina Mahathir (daughter of ex-Prime Minister Mahathir) has ask "Find out why" since 2002. Yet there is no answer for more than 10 years.

 

Two scholar,Dr Rohana Ariffin, retired associate professor of Universiti Sains Malaysia Penang, and her former student Rachel Samuel also done a research on this issue in 2008. Unfortunately, both of them are ladies. How ladies understand what is in mind of a guy? Thus, the research provide no solution until today.

They get answer like "Jika makanan sudah dihidang, kalau saya tak makan, lalat akan turun. Biar saya yang makan (If food is served and I do not eat it, the flies will come. Let me be the one who consumes it). or Nak tidur, bantal pun sampai, kita pun tidurlah (Want to sleep and the pillow is here. May as well sleep on it).

This is a response from a race that fasting for one month every year. Why a person can control their desire on food but not their lust? Further, there is a chinese proverbs said "no matter how fierce a tiger, it won't eat it own son". Why a human want to eat his own daughter or grand daughter and used "lalat" as an excuse? Why people never fast have lower percentage of incest and rape? How they control their lust if they unable to control their desires for food?

 

In fact,  this case are not only confine to one race in Malaysia. Ladies who travel to Middle East countries also have unpleasant experience despite people in Middle east country never consume alcohol like in India.

 

One of the different between the race with higher percentage of incest is they have perform "Sunat" whereas the race with lower percentage of incest and rape never perform "Sunat". Does a guy who have perform "Sunat" will be more sensitive as the cover or protection has been removed? Some claim it is less sensitive as they have been used to being unprotected or uncover. But why higher percentage of incest and rape for such race? Perhaps, a more scientific study have to be done.

 

Jewish also perform "Sunat". But we rarely hear high percentage of incest nor rape case among Jewish? Maybe western person are more open and they never lack opportunity of consenses sex with opposite sex to release their desires. However, a more scientific study need to be done by scholar, ideally, a guy.

I do remember old testament bible also required a person to be "Sunat". But neither Christian nor Catholic require their follower to perform "Sunat" now a day except Jewish. Bible, same with Islam, also stated people who collect interest commit a sin.But now, every bank charge interest in our financial system, which is western financial system, provided you never charge "ah long rate"(Loan shark rate). But muslim still insist to have their own "Islamic finance". But I don't understand why Ah Long was allowed in this country.Shouldn't this is be "most" unislamic industry?

Update 1 : KK cracks down on Ah Long ads..

 

 

Single party of Barisan Nasional! How?

When Datuk Seri Najib take over  as Prime Minister of Malaysia  from Tun Abdullah after 308 election in 2008. Many political colunist link it to his father take over when Alliance loss in 1969. Actualy, I am thinking he will follow his father footstep to reform BN like his father change Alliance to become coliation BN now.

Actually, BN, effectivelly found by his father Tun Abdul Razak, transform from the then Alliance. But, to my surprise, he never did anything on BN at that point. In fact, even party nearly wipe like People's Progressive Party  was allowed continue to exist. this might be due to promised made by his father when BN was form. The reason his father managed to win back 2/3 majority after 1969 election but not him in 505 2013 might be due to he  never reform BN like his father reform Alliance.

Now, The call for reform has been voice out again after May 5 2013 election to transform BN from a current coalition of communal parties into a single , merged multi-racial entity. However, it immediately get some opposition from within UMNO itself. Then, there is some assets issue. Like those media company control by UMNO. Will member willing to share their assets with other component party.

MIC make the first move by start negotiation with MIC president Datuk Seri G. Palanivel, suggested  to combine the People's Progressive Party (PPP), the Indian Progressive Front Malaysia (IPF), Makkal Sakthi and other Indian community-related parties into a single entity.  Indian scholar,NGO and political analyst want the merger .

PPP have a strong present in Perak state especially at local councilar level. MIC will have a strong present in Perak if MIC and PPP merger succeed, after MIC get speaker of Perak again after 308. Then, there is more reason for people to support a party if it has a strong present in a state, if not govern a state.

Sarawak base SUPP have merger talk with MCA before to transform Malaysian Chinese Association into Malaysian Civic Association but fail. SUPP also have merger talk with Gerakan before but was oppose by UMNO at that time. However, UMNO unlikely to oppose this time as both party have so few elected representative to postr a threat to UMNO compare previously. Gerakan have merger talk with MCA twice. Once, for MCA to become Malaysian Citizen Association, but it suggested MCA President to become President of Malaysian Citizen Association. This make President of Gerakan at that time, late Lim Chong Eu not happy and rejected the suggestion. This is because late Lim Chong Eu, Penang Chief Minister at that time was a President of MCA before. Thus, he is a veteren MCA member and a President of MCA even before tha President of MCA become Member of Parliament. Thus, negotiation fail. Then there is another merger suggestion more recently when Ong Ka Ting is President of MCA and Koh Tsu Koon President of Gerakan if not mistaken.

Now, the trio, SUPP, MCA and Gerakan only have a handful of elected representative. Previously, if a President of component party cannot become a President of merger party. The negotiation is likely to fail. But now, it become irrelevant who is President as everybody also not a member of Parliament, a Minister nor a Chief Minister of a state. at least , there is no "loss of face" if I am a elected representation but no hold an important party post. Thus, this become best time to reform. MCA might potentially ger Chief Minister of Penang and have present in Sarawak if merger succeed. A strong appeal to voter to fight Pakatan multi-racial party DAP, who also govern Penang state now

As for UMNO. There is more opposition from member to become multi-racial party like Pakatan's PKR. It doesn't help as it is more difficult for a winner to reform compare to party that have setback in Geneeral Election. Traditionally, only chief of state of BN not hold by UMNO is Penang as Gerakan hold position of Chief of BN. Other Chief of state in UMNO unlikely to give up their position. Thus, the least opposition is to merge Umno with Gerakan. However, unlike MCA, there is no merger talk between UMNO and Gerakan before. Thus, it is more difficult for merger of Gerakan with UMNO than to MCA.

One possibility is Sabah. UMNO can open it Sabah membership to non-bumiputra test the water. Sabah already have non muslim bumiputra member. Different race in East Malaysia also can sit together to have teh tarik.  Unlike in Peninsular Malaysia where you only see same race to have teh tarik on same table together despite other race also have teh tarik within same store. Sarawak also a state with larger number of non Malay civil servant. This is different from West Malaysia where bumiputra claim non-Malay are not interested to joint civil servant. East Malaysia also have hgihest percentage of non-chinese study in chinese vernacular. Which contribute to Chinese vernacular school to become most  "1 Malaysia" school in Malaysia. However, UMNO do not have present in Sarawak. Thus, have to start in Sabah first rather than Sarawak. This is a small but important step for UMNO member to comfortable to become Multi-racial Party like Pakatan's PKR.

Update 1 : Gerakan: Merger talks only after party polls
Update 2 : 郑可扬：3党要谈合并 马华须解决单元种族路线
Update 3 : Zambry: Merger of BN parties not as easy as it sounds
Update 4 : 颜炳寿： 基层不再反对 马华是时候组多元政党
Update 5 : Merger of BN's 3 Chinese parties gets Dr M's nod
Update 6 : Dr M: BN better off with sole Chinese party
Update 7 : 马哈迪赞同3华基政党结合
Update 8 : Dr M favours merger of these Chinese parties
Update 9 : Dr M: Sole Chinese party better for BN
Updsate 10 : 华基政党合并没进展 党领袖勿对外发言
Update 11 : 亮眼观势：华基三党合并？●
Update 12 : 不吐不快：合并  .

Identical between George Soros and Mahathir

Mahathir  and Soros – have had a bitter war of words, According to Mahathir bin Mohamed, Prime Minister of Malaysia from July 1981 to October 2003, Soros — as the hedge fund chief of Quantum — may have been partially responsible for the economic crash in  the 1997-98 Asian financial crisis,with Tun Dr Mahathir calling George Soros a “moron” , while Soros hit back by describing the Malaysian premier as a “menace to his country”.


It seem both person have nothing in common and both do not see eye to eye on each other.

Recently, I have read "A Doctor in the House : The Memoirs of Tun Dr Mahathir Mohamad" and another book by Liang Heng, co-author of "Son of the Revolution"《革命之子》. Liang Heng 梁恒, an acquaintances of George Soros wrote a book in Mandarin 《和索罗斯一起走过的日子 》.about his relationship with the hedge fund manager

After reading both book in different language. I find a similarity between George Soros and Tun Dr Mahathir.

Despite a Jew, George Soros help to civilians during the siege of Sarajevo despite they are Islamic people or muslim.

Another book " Soros, The Life, Times, & Trading secrets of The World's Greatest Investor" stated "The Bosnian War in the early 1990s, had reminded himof how much his own Jewish brethren had gone through earlier in the century. After he had funded the reconstruction of Sarajevo's water supply and natural gas line, a reporter asked him why a Jew like himself would sympathize with a muslim country. In a rare comment onhis Jewishness, Soros noted that " it has a particular resonance if you have experienced one type of Holocaust and you see another. I have a particular concern for the Holocause in the fomer Yugoslavia""

In Bosnia-Herzegovina, Mahathir has been noted as a particularally and sympathetic co-religionist of that nation. He visited Sarajevo in June, 2005 to open a bridge near Bosmal City Center signifying friendship between Malaysians and Bosnians.

He made a three-day visit to Visoko to see the Bosnian Pyramid of the Sun in July 2006. He made another visit a few months later.

Both Soros and Mahathir visited Bosnia during that period.

 

Other than Bosnia, Books by Liang Heng 梁恒 also stated that  George Soros's  Open Society Foundation also send someone to Chechen, whose people are muslim during Chechn- Russian war.

 

Thus, it seem it is wrong that Mahathir label Soros as enemy of Islam or Muslim.

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Part 3: Welfare state & Nordic model

My Comment on IMD 2011 World Competitiveness Ranking - Part 3

IMD analyze the countries based on four main criteria namely Economic Performance, Government Efficiency, Business Efficiency and Infrastructure.
.
Among the four criteria above. Malaysia ranking in Infrastructure are most steady and consistent but lowest among the four criteria:
                                         2011                  2010               2009
US                                    1                           1                      1
Sweden                             2                           2                      2
Denmark                           3                           5                      6
Switzerland                       4                           3                       4
Finland                             5                           6                       3
Canada                             6                           4                      7
Germany                           7                           8                       9
Norway                            8                           7                       10
Iceland                              9                           9
Singapore                        10                          11                      8
Japan                              11                          13                      5
Netherlands                     12                          12                     11
Austria                             13                         10                     13
Australia                          14                          18                     12
Israel                                15                         16                     18
Taiwan                             16                          17                    23
UK                                  17                          15                    16
France                             18                         14                     14
Belgium                            19                          19                    15
Korea                              20                          20                    20
Hong Kong                      21                          23                    19
Luxembourg                     22                          21                    17
New Zealand                    23                          22                    21
Iceland                             24                           24                    22
Portugal                            25                          29                    24
Spain                                26                           28                   31
Malaysia                          27                           26                    25

US top in Infrastructure, and Sweden second for 3 consecutive year. Sweden ranked no 4 this year from 6 previous year in IMD 2011 Competitiveness ranking

Malaysia consistently ranked around 25 to 27 in a dropping trend

If Malaysia want to improve in Competitiveness ranking. Improvement in Infrastructure category have the highest chance to improve it overall ranking as Malaysia ranking in Infrastructure remain consistent even Malaysia IMD Competitiveness ranking moving up and down in the last 3 years.

Among all the country. All Nordic Model countries or Scandinavia ranked within top 10 of infrastructure ranking. This is similar to welfare state debated heavily recently among ruling party and opposition PAS.

However, Nordic model are high tax country. Sweden (2) are the highest tax rate country in the world. Ikea, a Swedish company, move to Denmark initially and later to Switzerland due to high tax rate.

US (1) ranked first under Infrastructure category but have more competitive tax rate compare to Nordic model country. Among the country within top 10 under Infrastructure. Singapore, the only aisa country. consistently ranked within top 10 ranking with much lower tax rate than US and other western countries.

I feel it is a bit difficult to model against Sweden if PAS or Pakatan Raykay want to implement welfare state especially it high tax rate. Despite I have advocate Malaysia to follow Sweden, but not on the tax rate. Sweden company like Sony Erricson, Electrolux also not the most competitive company in the world. However, Sweden are one of the countries that invest most in R&D in terms of percentage of GDP.

Furthermore, Sweden ranked either as the first or second country publishing the highest number of scientific publications in the fields of medical science, natural science  and engineering in 2001. Sweden was world-leading in medical science and second only to Switzerland in natural science and engineering in terms of the number of publications per capita.

However, there is more information and publication that able to obtian on Finland then Sweden. Thus, it is far more easy to model against Finland than Sweden. Finland has high number of NGO and active civic society.However, in Malaysia, NGO are used to push up water tariff. Malaysia can't rank high in infrastructure if utility cost are high.

Further, Finland company like Nokia are more competitive than Sweden Sony Erricson. Further, Finland have more technology innovation like Linux,email and recently Angry Bird game etc.

However, Nordic Model countries have strong labour Union, which is bad on economic base on history in UK. UK in reccession under ruling Labour Party until take over by Margaret Thatcher Conservative Party. However, UK has loss it competitiveness to Germany. Thus, both BN and Pakatan Rakyat in Malaysia should learn from this experience.

In Finland , Education is compulsory between the ages of 7 and 16 . Tertiary education is free and living expenses are to a large extent financed by the government through student benefits. If Education is free, then, the recent Public Service Department (PSD) scholarship mess can be avoided.

Last year, Malaysia ranked 10th in IMD Competitiveness ranking in 2010 and Norway ranked 9th. Sadly, Non of the private sector nor GLC HQ model again DIGI HQ D'House . Digi are only one of successful company from Norway in Malaysia. However, it is undeniable that Malaysia working cultural a bit difficult to change to D'House Model.

Base on the above analysis. I feel Malaysia can model against Finland and Singapore on Infrastructure


Related Post:
Lim Kit Siang : Why do Finland’s schools get the best results?
Randon Shots : Finland...Where Less Is More





Part 2: Economic Performance
Next Part 4: Business Efficiency

My Comment on IMD 2011 World Competitiveness Ranking - Part 2

IMD analyze the countries based on four main criteria namely Economic Performance, Government Efficiency, Business Efficiency and Infrastructure.

Among the four main criteria above. Malaysia rank high in Economic Performance. Minister of international Trade and Industry, Dato' Sri Mustapa Mohamed issued a media statement, which specifically stated :

8. It should be highlighted that the ranking for Economic Performance, which gives a

macro economic evaluation of the domestic economy and is based on real/hard data,

improved to 7th position this year ahead of Taiwan, Sweden, Canada, Australia, UK and

Switzerland. Malaysia has come a long way since 2007 where we were ranked 12

Let see the trend as usual:

IMD 2011
Economic Performance:
                                                  2011                2010               2009
United States                                1                       1                     1
Qatar                                            2                       2                     5
China                                            3                       3                     2
Hong Kong                                   4                       4                     3
Singapore                                     5                       5                      8
Germany                                       6                        9                     6
Malaysia                                    7                        8                      9
Luxembourg                                 9                       11                    4
Thailand                                       10                      6                     14
Australia                                      13                      7                    15
Netherlands                                  19                     14                     7


Economic Performance is only criteria that Malaysia has 3 consecutive uptrend. From 9th in 2009 move up to 8th in 2010 and again to 7th position in 2011.

Malaysia has overtake  Luxembourg, Thailand, Australia and Netherlands, which ranked higher than Malaysia one or two years ago.

However, Germany, which ranked lower than Malaysia previous year, has overtake Malaysia in 2011,  thanks to Germany buoyant exports and a more flexible labor market. Coincidentally, Germany also ranked 10th in IMD world competitiveness ranking. A spot Malaysia occupy in 2010.

We have benchmark German against Japan in Asia in 2005. Germany banking industry relation with business is like Keiretsu of Japan. It is this form of banking relation that cause Japan into prolong recession, of which, Malaysian ex-Finance Minister Tun Daim has prevent such banking industry relationship that prevent Malaysia into a Japan like recession during 1997-98 Asian Financial crisis

The relation of Deutsche bank with Siemen and daimlerchrysler is like of Mitsubishi in Japan.

However, Germany has a large SME base which is similar to Taiwan and Malaysia. German SME, which is family base like Malaysia, however, able to continuesly advance in technology. SME in Malaysia usually unable to advance in technology or technology will loss after pass to next generation. This is largely due to popularity of Germany vocational training. Malaysia in correct direction by promoting vocational training among non-bumiputra entrepreneur recently. Vocational training common among bumiputra but not common among non-bumiputra despite there is no quota of entry like other institute of higher learning. Malaysia should make full used of German Malaysia Institute

As Malaysia able to overtake Germany last year. There is a possibility that Malaysia will overtake Germany again.

It seem a bit difficult to challenge US(1) and China(3) as this is the two economic giant in the world. Hong Kong(4) benefited from China with it close proximity. This leave only Singapore. Malaysia able to leverage on Singapore economy with it close proximity among the two.

The Southern Development Corridor and Iskandar Malaysia is a way of Malaysia try to leverage on Singpore economy. However, Malaysia should solved it biometric system mess at second crossing fast.

It is undeniable that Malaysia moving to the right direction by implementing Greater Kuala Lumpur under Economic Transformation Programme (ETP), which will expand the economic effect of Singapore from Iskandar Malaysia further to Kuala Lumpur. However, this is a long term project hat will take time to see it effect.  Malaysia only able to leverage on Singapore via Southern Development Corridor and Iskandar Malaysia in short term. Thus, Malaysia should solved the mess cause by biometric system fast.

Part 1 : My Comment on IMD 2011 World Competitiveness Ranking - Part 1
Next Post : Part 3: Infrastructure

My Comment on IMD 2011 World Competitiveness Ranking - Part 1

Our global competitiveness rankings for 2011 as produced by the Switzerland-based Institute of Management Development (IMD) ranked Malaysia 16th out of 59 countries, marking a significant drop  from 10th in 2010. Malaysia ranked 18th in 2009.

Base on a 3 year trend. Malaysia still moving up from 18th in 2009 to 16th in 2011. At least it is an up trend.

When the rankings jump from 18th in 2009 to 10th last year. Government should know it is not easy to sustain. Malaysian would not have such disappointment if government evaluate it sustainability last year. It is now clear that Malaysia ranked high in 2010 due to 2008/2009 Global Financial crises which cause a lot of European country ranked lowly rather than Malaysia improved it own competitiveness. Now, when some European countries rebound. At least we can see where we stand.

Let have a 3 year ranking to see what is trend of Malaysia :


                                                 2011               2010          2009
USA                                           1                      3                 1
Hong Kong                                 2                      2                 2
Singapore                                    3                      1                 3
Sweden                                       4                      6                 6
Switzerland                                  5                      4                 4
Taiwan                                        6                      8                 23
Canada                                       7                       7                 8
Qatar                                                           8                                15                      14
Australia                                                      9                                5                        7
Germany                                                      10                              16                      13
Luxembourg                                                11                              11                       12
Denmark                                                      12                              13                        5
Norway                                                        13                               9                        11
Netherlands                                                  14                               12                      10
Finland                                                        15                               19                       9
Malaysia                                                       16                               10                      18 
Israel                                                            17                               17                      24

In fact, Malaysia has move up from 23th  in 2007 to 16 in 2011

Singapore, which often benchmark against Switzerland and Hong Kong has been consistently rank higher than Switzerland

The highest up trend country was Taiwan, up from 23th in 2009 to 6th in 2011.After change of ruling party pro- China via Economic Cooperation Framework Agreement (ECFA)

I have advocate Malaysia to benchmark against Sweden and Taiwan as early in 2005

Look at the above trend again. If we benchmark against Norway, which rank No 9 last year, We might still at 14th this year as Norway has drop to 13th. Thus, it is other countries that have improved their competitiveness that they overtake Norway and Malaysia rather than Malaysia dropping in Competitiveness.

Of course, Malaysia do drop in competitiveness to Netherland (14) & Findland (15).

Malaysia should at least rank 12th if able to overtake last year 9th position........Norway.

Hong Kong ranked top in both Government Efficiency & Business Efficiency

US ranked top in Economic Performance and Infrastructure

Singapore ranked second in both Government Efficiency & Business Efficiency after Hong Kong

Hong Kong ranked 4th in Economic Performance and Singapore ranked 5th

Sweden ranked second in Infrastructure after US for last 3 consecutive year



Related Post:
Lim Kit Siang :  Malaysia slips in economic competitiveness
Tony Pua :  Competitiveness Rankings Drop: Just "Perception"?
Lim Guan Eng : Malaysia has dropped six places from 10th in 2010 to 16th in the IMD’s 2011 World Competitive Rankings(en/bm/cn).
 Dr. Dzul : Malaysia slips in economic competitiveness
Din Merican: the Malaysian DJ Blogger : Malaysia is No 16 in IMD 2011 World Competitiveness Rankings
1-million-dollar-blog : 2011 IMD World Most Competitive Countries


Next Post: Part 2:Economic Performance

Nobody controlled IJM Corporation Bhd

IJM Corporation Bhd at one point of time one of the big three constrution company to watch. together with Gamuda and Road Builders Holdings Bhd. In fact, the largest market capitalise construction company on Bursa Malaysia is YTL Corporation Bhd.



Recently, Road Builders Holdings Bhd was acquired by IJM Corporation Bhd. This make IJM Corporation Bhd has an upper hand over Gamuda. Thus, the top two construction company might be YTL Corporation Bhd and IJM Corporation Bhd and Gamuda, one of the top three excluding governement link companies (GLC).



If IJM gain control of Kumpulan Europlus Bhd . IJM group control two public listed contruction company and two property development company. IJM,Kumpulan Europlus Bhd, RB Land Bhd and indirect associated company Talam. It become a giant company that you unable to ignore.



However, it seem nobody control IJM!



Who control IJM



IJM initially was part of the IGB Group. However, in order to raise capital for it Mid-Valley Megamall Project. IGB disposed off it stake in IJM to Zelan Holdings which ultimately control by Tan Sri Syed Mokhtar al-Bukhary.



However, Zelan Holdings’s shareholding in IJM shrank after IJM made a general offer to acquire Road Builder (M) Holdings Bhd last year via a share swap. This resulted in Zelan being unable to book in its share of IJM’s profits although it could still receive the dividends paid out by the latter.



Zelan is sitting on a cash pile of about RM280mil after disposing of part of its stake in construction-based IJM Corp Bhd. Its net cash per share rose to 99.7 sen after the share sale from 66.3 sen previously.



Zelan Chief executive officer Albert Chang confirmed that Zelan would continue to trim its interest in IJM, which currently stood at 9.67%.



This mean Tan Sri Syed Mokhtar al-Bukhary and Zelan has lost control over IJM.



Thus, IJM, such a large group of company, become a company that run by professional manager, it managing director Datuk Krishnan Tan with no controlling shareholder.



Control by Accountant, not Engineer

Other than previously bumiputra control contruction company like Renong's Halim Saad, who is Accountant by training. Contruction company control by chinese usually control by engineer.

Road Builder's Tan Sri Chua Hock Chin,Gamuda's Y Bhg Dato' Lin Yun Ling, YTL's Tan Sri Francis Yeoh, even smaller Mudajaya group was headed by engineer.

IJM, however, was one of the rare contruction company that lead by an accountant.

Managing Director Datuk Krishnan Tan qualified as a Certified Public Accountant in 1978 after graduating with a Bachelor of Economics (Honours) degree from University of Malaya in 1975, and holds a Master’s degree in Business Administration from Golden Gate University, San Francisco, USA. Prior to joining IJM, he was with Kumpulan Perangsang Selangor Berhad for seven (7) years, his last position was Group Financial Controller of the Group.

He joined IJM as Financial Controller in 1983 and joined the Board as Alternate Director on 12 June 1984, Director on 10 April 1990 and Deputy Managing Director on 1 November 1993. He assumed the post of Group Managing Director on 1 January 1997. He was redesignated Chief Executive Officer & Managing Director on 26 February 2004.

It is not easy for an accountant to grow a contruction company to such a size. So far, it seem no problem leading staff that was previously lead by engineer like staff he acquired from Road Builder Holdings (M) Bhd.

Potential takeover target

With no controlling shareholder in the company. IJM become a likely take over target. However, being one of the largest market capitalisation contruction group in the market. It is difficult for just anybody to swallow the group.

After spending so much for a company, the new controlling shareholder must be able to work with the current team or he must have the ability to manage such a large group if he intended to change the team.

If nobody acquired the company eventually. IJM might be the first company in Malaysia like company in US,that the company was invested by institutional shareholder and manage by professional manager with no controlling shareholder. In such instances, IJM must have a strong team of independent director on the board and must have good succession planning for managing director.

TechnoratiTag: Business Commentary competitive Economics Economy Malaysia Opinion finance Shares Stock Market klse

Company's performance and it management

Investment in shares, other than read it financial report. One way to select a company is to select it management. When you invest in shares in a company. You become a shareholder, or a partner of your company. Don't you want to know your partner well before you invest in a company?

This is what a lot of speculator or investor in Malaysia did. In fact, it is a dangerous move if you invest in a company without knowing your partner well.

I have a post Would you buy Toyota Camry, Honda Accord or Proton Chancellor? which I have stated: I feel investment in company equivalent to investment in a company CEO. If government let Idris Jala to head Proton rather then MAS. I might be consider as he has the track record of turnaround a company.

On May 29, 2007, Malaysia Airlines (MAS) reported a sustained turnaround with a net profit of RM133.1mil for its first quarter ended March 31, compared with a loss of RM319.9mil in the year-earlier quarter.

While on June 1, 2007, Proton posts RM591mil loss. The outcome was exactly the same as my prediction nearly one year ago on July 21, 2006.

MayBank and Ambank's management has recently implement a policy that not base on merit but base on racist selection of it panel lawyer until directed by cabinet to stop it .

But non of the management responsible for implementing such policy has been removed.

While Ambank was not appear not Reader's Digest Most Trusted Brand. Maybank appear on the list together with Public Bank. I would certainly choose Public Bank over Maybank if I want to invest in banking stock.

TechnoratiTag: Business Commentary competitive Economics Economy Malaysia Opinion finance Shares Stock Market klse

TPP not related to Tan Sri Syed Mokhtar Al-Bukhary

My previous post Oil refinery and Electrical home appliance stated that the US$7bil Trans-Peninsula pipeline (Transpen) was awarded to Tan Sri Syed Mokhtar Al-Bukhary's SKS Development Sdn Bhd. This was followed by a special exclusive report by Nanyang one week after my post stating a similar claim.

However, last weeks, two ex-engineer with Petronas,Rahim Kamil Sulaiman (left) and Syed Izhar Al-Idrus (Right) claim the idea of the US$7bil pipeline was theirs but along the way the Government had also received two other proposals to build a similar pipeline connecting the west to east of Peninsular Malaysia.

One was from UEM World Bhd and the other the widely publicised SKS Development Sdn Bhd (a private company linked to Tan Sri Syed Mokhtar Al-Bukhary) that has an arrangement with the Iranian National Oil Co.

Rahim dismissed speculation that SKS and TPP were working together on the project.
“We have no relation with SKS by equity or contract in any form. If anyone claims this, we would be very keen to see the evidence.” reported The Star.

Rahim Kamil Sulaiman 53 and Syed Izhar Al-Idrus hold 50:50 equity interest in Trans-Peninsula Petroleum Sdn Bhd (TPP), the promoter and developer of the project, while former Kedah Mentri Besar Tan Sri Osman Aroff is a director in the company.

TPP has cleverly roped in big names such as Ranhill Bhd to carry out the construction and engineering, Saudi Arabia’s Al-Banader International Group to supply the oil and Middle Eastern investors to take up stakes in TPP, Indonesia’s Bakrie & Brothers tbk for pipe supply and PT Tripatra as its project manager.

Non of Malaysian pipe manufacturing company benefit from that project, including Wa Seong.

Ranhill shares price has rise before the announcement. As both promoter was not running a conglomerate company like Syed Mokhtar. It is difficult to demand them to invest their profit into other project like electical home appliance as they do not have the resources and skill to do it.

Update: SKS Development Sdn Bhd (a private company linked to Tan Sri Syed Mokhtar Al-Bukhary) still get the refinery portion of the project but not the pipeline

TechnoratiTag: Business Commentary competitive Economics Economy Malaysia Opinion finance Shares Stock Market klse

Stock market and Reader's Digest most trusted brand

Leading stock market legend Warret Buffertt, who becomes the world second richest people after Microsoft's Bill Gates via investment in shares market, invest in brand name or what he call "Consumer Monopoly" like Coca Cola, McDonald, Wall Mart etc.

Usually, I feel company list on Reader's Digest Trusted Brand Award are company with good quality product. York air conditional, market by Malaysian leading company OYL Industries Bhd, perceived to be a blue chip stock after Genting before the company divested by Hong Leong group. share price go up to RM50 at one point of time before Asia financial crisis. The same shares price trend was seen on another regular recipient of Trsted Brand Award, Panasonic.

Non listed MNC product, like biscuit product categories recipient....Jacob's by Danone, also has good quality. I wouldn't invest in local biscuit company like Hwa Tai, Hup Seng etc unless they able to produce the same quality product like Jacob's.

Base on the above, there seem to be a relation between share price performance and recipient Reader's Digest Trusted Brand Award.

However, some value become too high, like Nestle at PE ratio of 21.3. Spritzr.... PE ratio at 17.4. Shares price already appear expensive.But, they is some gem yet to be discover.

One of it is Poh Kong under Jewellery categogy. It PE ratio was only 5.3. That means you can recoup you investment within 5.3 years if the company able to maintain it current profit, which is likely if it was listed on Trusted Brand Award. Your invetsment will be double without any grow. However, usually a strong brand company, or what Warren Buffett term as company that enjoy Consumer Monopoly, usually able to grow their profit. If a company able to grow their profit at 20% per year. Profit will be double within 5 years.

Another company I like is Amway, it is the most Trusted Brand under water purifier category and Vitamin/Health supplement category. It attraction is it dividend yield at 8.8%. It is more than double, almost triple than fixed deposit rate at around 3%. Thus, can bet on it if your aim is dividend.

The other recipient on of Vitamin/Health Supplement category...Appeton. The brand was under Mesdaq listed Kotra. However, it PE ratio at 9, more expensive than Poh Kong and did not pay dividend as much as Amway. Dividend yield less than bank's fixed deposit rate.

Thus, my bet is on Poh Kong and Amway on share aprreciation and dividend respectively.


TechnoratiTag: Business Commentary competitive Economics Economy Malaysia Opinion finance Shares Stock Market klse

Vinod Sekhar on Forbes Malaysia 40 richest 2007

A name appear on Forbes top 40 richest Malaysian attract my attention. Ranked at no 16 Datuk Vinod Sekhar. In fact he appear on the list last year (2006) as well,ranked 16 also.




Describe as founder and majority owner of privately held Petra Group. I was mistakenly thought he founded oil and Gas group Petra Perdana Group. However, Petra Perdana was found by Terengganu royal YM Tengku Dato' Ibrahim Petra bin Tengku Indra Petra rather than Datuk Vinod Sekhar.



Actually, company control by Datuk Vinod Sekhar's company call Petra Group which is privately held.



Surprising that Forbes able to rate a owner of a Malaysia non listed company. It is difficult to rate a owner of a public listed company even in US.



Forbes stated that Forbes Vice Chairman Christopher Forbes is minor shareholder in group. that is how Forbes rate the company. Is it accurate base on such rating?



It is not sure why Company Commision Of Malaysia allow two unrelated company used such a similar name that create so much confusion.

Last year, Joshua Teoh's blog has discussion on Datuk Vinod Sekhar under his blog's comment column.

Excerpt:

newmal said: this is all i know so far - he is 37, and also heads the petra foundation - which is pretty huge, and apparently refuses to allow his name or picture to appear in tatler etc. and is a close friend of Tony Fernandes of air asia and Was told there was a story done on him recently - a friend saw it in sing. Will try get some info from there. According to the article also completely self made, not inherited. To me its just amazing that he has been so low key - and no one knew about him - a non bumi also!

He added: Just read that Vinod Sekhar’s father passed away last week. Also found out that both father and son are/were self made men. the bio is on the Petra website. From what i read on line - he started his company from college and was a millionaire by 21, and a Datuk by 26. then lost everything in the asian financial crisis, but rebuilt everything on his own. He also founded the first multiracial youth society - and here’s something interesting, apparently he wrote the template for the Rakan Muda programme - then walked away when they tried to make political and racial. Also, i believe he gave 40% of the company away to a charitable trust that educates a few thousand people now. He is actually the chairman of the Petra foundation. Thats about it. If someone actually knows him - then can actually ask him about the above. I’m sure some of us would be keen to hear about his true story. It seems fascinating and worth a read.

The Edge recently reported that: In 2001, Datuk Vinod Sekhar undertook a reverse takeover of a company listed on the Alternative Investment Market (AIM) in London. He injected an Islamic portal into the AIM-listed company, which was renamed Petra Multimedia plc. But it failed to sustain investor interest and was delisted a year later.

Whether he deserved on the list or not is your own judgement

TechnoratiTag: Business Commentary competitive Economics Economy Malaysia Opinion finance