Tenaga KPI too focus on financial performance

The Star bizweek interview of Tenaga chief Datuk Che Khalib Mohamad Noh reveal Tenaga's Key Performance Indicators (KPI)

Majority of the KPI reveal by CEO are mainly in financial term : recovery of debt, reduction in general expenses, value creation from land bank, SESB turnaround, recovery from delinquent accounts, average collection period, return on asset, procurement process time.

undeniable, he also reveal some technical KPIs like generation availability and productivity KPI like staff response time and number of kilowatt or megawatt produced per staff.

Datuk Che Khalid further reveal that for Senior Management. They have four quadrants of KPIs: Financials (45%), customers (25%), internal process (15%), and reduced total cost per unit (15%).

Based on the four quadrants. Does it balance?

With Financial cover 45%. It is hardly for me to said it is balance. Further, it is debatable whether reduced total cost per unit (15%) should be under Financial (45+15=65%) or Internal Process (15+15=30%)

Che Khalid is correct by mentioning that "we need the customer more than the customer needs us. Everything else will fall into place. If you take really good care of the customer than they will be willing to pay more for your really good service."

However, customers cover 25% is reasonable. However, Che Khalid never reveal what comprise customer KPI. It should included number of complaint received, number of compliment letter received or published on newspaper. Customer waiting time. Tenaga should follow EPF and Public Bank Bhd in reducing customer waiting time.

I feel that Financial should reduced to 25% to 30%.

One thing left out from the Balanced Scorecard system is Innovation. There is no KPI in Innovation. Like new method to read meter, new method to collect bill etc.

Too focus on financial KPI lead to management take an easy way out : tariff hike. More emphasis should be place on Customer, Internal Process and Innovation.

Instead, Tenaga should do what Che Khalid mentioned Take good care of the customer by tariff reduction to induced Foreign Direct Investment (FDI). Then Tenaga revenue would improved if a lot of foreigner set up factory here. Of course, they should minimise black out and other customer issue. Thus, I feel Customer KPI is more important.

TechnoratiTag:Business Commentary Economics Economy Malaysia News and politics Opinion Politik Shares Stock Market klse

Contradict reveal by Tenaga's chief and Energy Minister

Last Saturday, On The Star's Bizweek Cover feature on Tenaga National Bhd. TNB chief Datuk Che Khalib Mohamad Noh stated that : “We have already reached a critical level for survival ... For the last three years, we have been surviving on borrowed money,” Toss in an annual capital expenditure requirement of close to RM5bil, hefty debts of about RM30bil, and rising coal prices, and the push for a tariff restructuring becomes more compelling.

TNB Chief Datuk Che Khalid added in the interview by The Star : "At the moment, we have reached a level where every month, we are borrowing money to keep the company afloat because the total revenue that we collect is not even enough to cover the capex and servicing of debts. That's our situation today. "

On Sunday, Sin Chew Daily reported that Energy ,Water ancommunicationon Minister Datuk Seri Lim Keng Yaik Independent Power Producer (IPP) have 40% excess capacity of which the idealing cost has to babsorbeded by Tenaga. As there is 40% excess capacity of idealing power, there will be no new IPP in the next 10 years.

Thus, there is a contradict statement. If there is a 40% excess capacity, why is inecessaryry for further capital expenditure (CAPEX). Which TNB chief claim unable to cover by it revenue and stated as a reason for tariff hike. They should be no more CAPEX in the next 10 years as TNB has excess capacity.

For my knowledge, I only know there is only two possibility of CAPEX. One is for capacitexpansionon and the other is for replacement of existinassetsts.

If you have simple accounting knowledge. You would know that CAPEX on replacement of old machine should have been cover by it profit if TNB has depreciated iassetsts as required by accounting standards and the company make profit.

Based on Energy, Water and Communication Minister statement. CAPEX on capacity expansion is not required as it 40% excess capacity.

Even if TNB required expansion. Majority of the company used borrowing for capacity expansion. As a power analyst stated on The Star's bizweek that " “Utilities all over the world carry huge debts. For TNB, the option of refinancing its debts is available and this it has done and can continue to do, even if its debts are lumpy. TNB’s loans are sovereign guaranteed which significantly lowers its cost of borrowing. So that’s not so much of an issue to me.”

Thus, they is no basis for TNB tariff hike. Clearly, the purpose of tariff hike is for increase in shares price and gain on stock option by Tmanagementagment.

Either TNB chief or the Minister is wrong. Both of them own us an explanation. I do not oppose government recent fuel increase. However, I strongly opposed a tariff hike by TNB. My reader know that actually I hope TNB can be delisted from Bursa Malaysia.

TechnoratiTag:Business Commentary Economics Economy Malaysia News and politics Opinion Politik Shares Stock Market klse

Would SBB become another Park May?

The star headline today reported that the Southern Bank Bhd (SBB) board of directors accepted yesterday the RM6.7bil offer by Bumiputra-Commerce Holdings Bhd (BCHB).

The Star Business Section also carried similar head lines .

After the acceptance. Southern Bank Berhad will be eliminated like Ban Hin Lee Bank, whereas Bumiputra-Commerce Bank will have more branch.

The Star commented that Merger will fit into BCHB scheme of things. It further reported that Three SBB members invited to boards of BCHB firms .

Obviously, for business community, loan from Bumiputra-Commerce Bank is much more easy than to get a loan from Southern Bank Berhad. However, in a time where Bank Negara Malaysia implement Deposit Insurance System and would not rescue any bank that collapse. A depositor in Southern Bank Berhad feel more secure to deposit money in SBB than in Bumiputra-Commerce, as Bank Bumiputra have a few record of unable to survive in recession.

CIMB have to borrow RM4 billion to acquired Southern Bank Berhad! Does this make the merged entity more stable financially?

A good managed public transport company Park May has been taken over by UEM Group 10 years ago to "restructure" the public transport system in Klang Valley. UEM group has to borrow to finance the acquisition and whereas Park May borrowed money to replace all old buses with new buses. Price hike immediately announced after the takeover. Bus fare has increase few time after that but Park May still in huge loss. Bus service become less frequent as the company try to cut cost by reducing the trip, but this also unable to save the company.

Eventually, government has to come in to to bail out Park May from UEM group and Intra-Kota from DRB-Hicom Group.

Now, Bumiputra-Commerce Bank choose to acquire and eliminated a good managed bank rather than a bank with more Non-performing loan(NPL) like Affin Bank. This is like a Park May take over that eliminate good managment from a good running company.

As a banker, CIMB group should know that using gearing to acquire another company is a risky move. Malaysian really pray that the merged BCB-SBB would not become another Park May. As government now do not have financial strength to bail out a fail company. A merged large group also difficult for government to swallow financially. Government should try every effort to prevent such thing happen as the bank might be acquired by foreigner after the liberalisation in banking industry if such incident occur.

Ex-shareholder of Park May. After spending many year of building up the company have force to dispose off and leave the company. They are happy now as they keep a huge money now paid by the acquirer. However, public and the consumer has to suffer as there do not have the service of such a experience and good managed operators.

Of course, like Park May, this unlikely to happen in next 6 years. However, according to history of Bank Bumiputra, to survive another 12 year is a real test.

Hope the management of Bumiputra-Commerce Bank would not make the SBB shareholder laughed after 12 years!!!





Updated: dinzlink.net:BCB+SBB=CIMB?
smallandmedium.blogspot.com : southern bank another one bites dust


TechnoratiTag:Business Commentary Economics Economy Malaysia News and politics Opinion Politik Shares Stock Market

Does UEM shares price bull run sustainable?

Within one week of my blog post on UEM bull run. Share prices of companies under the UEM group attracted strong buying interest on Monday. Nanyang Daily also reported that there is a rumours in the market said that the government might take UEM World private.

However, the question is whether the shares price bull run is sustainable? Sustainability of shares price, of course will depend on whether the rumour on Ninth Malaysian Plan is truth.

One of my friend told me that during 1993 stock market bull run. He punt share counter of Renong and UEM. He start with very low capital....less than RM1,000. He play rotationally just two counter for the whole 1993. For a tiny RM1,000, he able to accumulated more than RM1 million. However, the RM1,000,000 he make during 1993 stock market bull run slowly depleted between 1994 to 1997 and has been completely wipe out after Asian financial crisis around 1998.

If he stop punting in the stock market after 1993. He must able to keep his wealth.

If market rumuor on Ninth Malaysian plan is truth, and you find it difficult to invest in stock market as you do not know which counter to buy, or you have difficulties in prediction of next concept play. You can just focus on two counter and play it rotationally. Would history repeated itself is any body guess?

TechnoratiTag:Business Commentary Economics Economy Malaysia Opinion Shares Stock Market

The beginning of next UEM bull run

Current issue of The Edge reported that The government is planning to develop the Southern Corridor of the peninsula under the soon-to-be unveiled Ninth Malaysia Plan (9MP) .

The first prong of the plan, with the largest federal government allocation of RM6 billion, will develop vast areas between the two existing links to Singapore. Included in these plans are the developments of the Bandar Nusajaya township and the waterfront city of Danga Bay, a development owned by Ekovest.

Shares price of Ekovest Bhd has improved marginally on Monday.

The south Johor development will be complemented by the "bullet train" project from Kuala Lumpur to Johor. This proposal was initially believed to have been mooted by the YTL Group. However, it is understood that Khazanah may lead this project.

Another facet of the 9MP will be the construction of the long-awaited second Penang Bridge. While the second bridge will fall under the 9MP, it will eventually become part of plans to develop the Northern Corridor

Sources say other than the direct beneficiaries such as Ekovest, the other possible winners in the 9MP would be those government-linked companies such as the UEM Group. UEM, almost 100% owned by Khazanah, will most likely lead the development of the bullet train and parts of the SJDA project.

Of course, the Bandar Nusajaya township is already owned by UEM subsidiary Bandar Nusajaya Sdn Bhd (formerly known as Prolink Development Sdn Bhd). Bandar Nusajaya is the ambitious township development in Gelang Patah, near Johor Baru, adjacent to the second link between Singapore and Malaysia launched in the heyday of the 1990s.

A key player in the Southern Corridor could also be Tan Sri Syed Mokhtar Al-Bukhary who controls the Port of Tanjung Pelepas, Johor Port and also Senai Airport.

Another UEM subsidiary, UEM Builders Bhd (formerly known as Intria Bhd), already owns the existing Penang Bridge. UEM Builders also has some experience in the construction of railways — admittedly a somewhat less salubrious experience.

The Edge further reported that Syarikat Prasarana Negara Bhd (SPNB) will extend the Putra and Star LRT (light rail transits) lines as well as construct a new line.

Shares price of UEM Builders Bhd has improve marginally on Monday. However, shares price of it holding company UEM World Bhd remain stagnant. UEM world Bhd, which also control CEMENT Industries of Malaysia Bhd (CIMA). CIMA shares price has rise to 3 year high .

Thus, it just a matter of time for UEM World Bhd shares price to rise.

Punter would remember how Renong (Now UEM World) and UEM ( Now UEM Builder) shares price increase from a few sen to more than Ten Ringgit in 1993 stock market bull run. While Malaysia stock market was one year behind the regional stock market. It is just the beginning of another bull run for UEM group of company. A once in 13 years opportunity you unable to miss.

Update:Ninth Malaysia Plan to revive construction
Analysts’ pick of gainers
Interest ahead of 9MP-Ekovest

TechnoratiTag:Business Commentary Economics Economy Malaysia Opinion Shares Stock Market

Which timber company on Bursa Malaysia affected by Pahang's timber freeze?

oOn 22 February 2006, Nanyang Siang Pao reported that about 100 timber factories are affected by the freeze on logging activities and the movement of logs in Pahang.

Today, 1 March 2006, Nanyang Siang Pao further reported that all timber sawn factory in west Pahang will run out of raw material and have to cease operation next week. More than 10 thousand people has been affected by the freeze including timber logging company, timber sawn miller factory, transporter, foreign factory worker etc. More than 10 thousand people became jobless because of the freeze.

Timber logging company from other state capitalize on the situation by charging higher price on timber log. However, this is on a willing buyer and willing seller basis.

A few sawn timber factory in the Pahang state have to cease operation today while the other are expected to cease operation next week.

Which listed company on Bursa Malaysia affected by the freeze? Pahang State Development Corporation only hold two public listed company: Pasdec Holding Berhad and Far East Holding Berhad, property development company and plantation company. No sawn timber company. No wonder the state government not hesitate on the freeze.

Timber log company from other state will be a gainer as there able to charge supernormal price. You might able to make some money if you able to guess one.

Link: The Star

Update: Pahang lifts logging freeze

TechnoratiTag:Business Commentary Economics Economy Malaysia News and politics Opinion Politik Shares Stock Market

Please keep OYL within Malaysia

In less than one month after I commented about Hong Leong Group and OYL. Recent issue of The Edge reported that Hong Leong Group and Tan Sri Quek Leng Chan is in negotiation to disposed off OYL Industrial Bhd. The Edge stated that ......market believes it is Matsushita that is buying.

If OYL fall in the hand of foreigner like Matsushita. It would be a great loss to Malaysia industry. It does not appear that Hong Leong Group nor Tan Sri Quek Leng Chan required the money. No apparent politic pressure to dispose off the company like what happen to Hong Leong few years ago where it force to dispose off it print media arm Nanyang to Huaren Holdings. I really hope that Hong Leong would keep the company for national interest.

In the event that Hong Leong want to dispose off the company. I really hope it dispose it to a Malaysia's company than to a foreigner like Matsushita. It is a social responsibility for Malaysian entrepreneur to keep the company within Malaysia.

In the latest announcement by OYL in replied of query from Bursa Malaysia. OYL stated that:

O.Y.L. Industries Bhd ("OYL") informs that, from time to time, it has received approaches from various parties to explore business propositions. Currently, OYL is in discussion with a party (not Matsushita) who has expressed interest to purchase OYL but it has not led to an offer being made so far. The discussion may or may not lead to a definitive agreement. If a definitive agreement is reached, an appropriate announcement will be made.This announcement is dated 28 February 2006.

Oh, I hope the offer is not cause by my blog post!

Link : Nanyang

TechnoratiTag:Business Commentary competitive Economics Economy Malaysia News and politics Opinion Politik Shares Stock Market

CNI unable to achieve revenue target

Main board listed direct selling company CNI was not expected to achieve its forecast revenue of RM317mil for financial year 2005. Reported The Star on 18 February 2006.

According to Executive Director Sam Cheon(pic), external factors such as rising oil prices and weaker buying sentiment dampen the company’s profits.

“Last year was very challenging for the industry and CNI,” Cheong said

This proved my analysis published on another blog BeautyBiotech.blogspot.com is correct.

TechnoratiTag: Business Commentary Malaysia Opinion finance Shares Stock Market

Shares price of I-Power rises to record high

Shares price of I-Power Bhd, which feature by this blog on 15 January 2006 and by The Star on 16 February 2006 has surge to record high.

Another company that feature by this blog on 15 January 2005 is Online One Bhd. It shares price has rise to record high much earlier on 6 February 2006. However, if you never sold on 6 February 2006. Too bad. It share price has drop back to it normal level.

Similarly, shares price of Kannaltec also rise to record high on 15 February 2006. It has decrease from it record high but you still able to make a profit if you disposed off now. However, one of the mainstream chinese newspaper in Malaysia recently reported that Kannaltec has high cash in hand per shares compare to it shares price. I unable to retrieve that particular article now but will update you soon.

Update: Strong performance & cash flow, Kammaltec shares price under value

Excerpt translation: Kannaltec's have 0.12 cash in hand per shares. which is higher than it current share prices. It has total cash in hand of more than RM14 million



TechnoratiTag: Business Commentary Malaysia Opinion finance Shares Stock Market

My analysis on cabinet reshuffle 1

1. Gerakan loss Deputy Internal Security Minister to MCA

Gerakan loss Deputy Internal Security Minister to MCA. Gerakan's Internal security Minister Chia Kwang Chye has been transfer as Deputy Information Minister. Whereas MCA's Deputy Higher Education Minister Datuk Fu Ah Kiow is now Deputy Internal Security Minister.

This cause MCA effective change Information Ministry portfolio with Gerakan's Internal Security Ministry portfolio. A gain to MCA and a loss to Gerakan as Internal Security Ministry, which control police and media, which is much more powerful than Information Ministry, which only control media.

Additionally, MCA also has one more portfolio. Deputy Information Minister Donald Lim has been transfer as Deputy Tourism Minister. Whereas, total portfolio control my Gerakan remain unchanged.

UMNO Deputy Internal Security Minister Datuk Noh Omar has been made Deputy Education Minister. Datuk Noh Omar was said to be the person follow Pak Lah instruction to against corruption. However, he recent poor skill in handling relation with China by asking foreigner to go home if they find the Malaysia Police cruel and blame media misquote him has cause him transfer to Education Ministry. May be corruption fighting has to be start from child via education!

2) Nazri responsibility increase. A promotion?

Minister in the Prime Minister Department Datuk Seri Mohd Nazri Abdul Razak responsibility has been expand to cover Datuk Seri Radzi Sheikh Ahmad portfolio after the later transfer as Home Minister.

Nazri did a good job as a Chairman of The Human Right Caucus.

Home Minister Datuk Seri Azmi Khalid, who said poorly handle the repatriations of Indonesian illegal worker which cause a mini recession has been transfer as Natural Resources and environment Minister. Azmi gear up with the new portfolio as he claim he is an environmentalists. In fact he should be happy as he able to remain as Minister. Two Minister that fail to elected as central committee of UMNO. Higher Education Minister Datuk Seri Shafie Mohd has been dropped whereas Tourism Minister Datuk Seri Abdul Kadir Sheikh Fadzir resigned.

The dropped of Shafie as Higher Education Minister might be cause by the drop of University Malaya in Times Higher Education Supplement (THES) World University Rankings.

New Home Minister is UMNO Secretary General.

3 Rafidah remain as International Trade and Industry Minister

That might be the reason why the Prime Minister never reshuffle the cabinet after the WTO meeting in Hong Kong. It is difficult for a new Minister to catch up as the next WTO meeting will be held at March. This also indicated that Prime Minister still do not have succession plan for this portfolio.

4 Effenddi reappointed as Minister after selling NTV7 to UMNO's TV3

Businessman and ex-Agricultural Minister Datuk Seri Dr Effenddi Norwawi reappointed as Minister in the Prime Minister Department after he dispose off NTV7 to Media Prima, which control TV3 and a company control by UMNO.

Effenddi was helping the Prime Minister in Ninth Malaysia plan recently and he was replacing Datuk Mustapha Mohamed, who has transfer to Higher Education Ministry. Mustapha, a Minister train by ex-Finance Minister Tun Daim was having a taught job ahead to make university in Malaysia more competitive and climb in international ranking.

In my opinion,Effenddi actually qualified to become Finance Minister but he is not from UMNO and his last business venture in NTV7 unable to make profit.

5 Berjaya group well connected with Tengku Adnan

New Tourism Minister and ex-Minister in Prime Minister Department was closely associate with Berjaya Group and Tan Seri Vincent Tan. However, Anti Corruption Agency (ACA) has made a clearance for all new Minister to Prime Minister before he made anouncement of cabinet reshuffle.

TechnoratiTag: Commentary Malaysia News and politics Opinion Politik cabinet reshuffle Shares Stock Market

Fate of businessman turn politician

The recent case of controversial Thailand Prime Minister indicated that it is better for businessman to remain focus on it core competencies....business rather than enter into politic.

The first example of businessman turn politician in Malaysia is Tan Koon Swan. He founded Supreme Coporation and Multi-Purpose Group. He was elected as the President of Malaysia Chinese Association (MCA), second largest political party in Malaysia. However, he was involved in the Pan-El crisis in Singapore which cause the closure of Malaysia and Singapore stock exchange for consecutive 3 days, a first time in history in Singapore & Malaysia. He then sentence to jail in Singapore and later in Malaysia for criminal breach of trust. His family now control a small property company listed on Bursa Malaysia, Crimson.

The second is Joseph Chong of Westmout Industries Bhd which control Sabah Shipyard Bhd at one point of time. He was Secretary General of Gerakan and a Member of Parliament of Batu division. He has benchmark himself against Tan Koon Swan at one point of time. Who has amass wealth in business and get high ranking in politic. What an inauspicious benchmarking. He later persuade by rival of Gerakan President to challenge his mentor, President of Gerakan Tan Sri Lim Keng Yeik. He has to dispose off Westmout Industries Bhd after he loss in a contest as Gerakan President. However, he able to cash out before Asia financial crisis. Thus, I believe he still maintain some wealth.

Update: The third is Soh Chee Wen. Soh Chee Wen started as a distributor of a direct selling company or multilevel marketing company, and later founded his own direct selling company. He nearly went bankrupt when recession hit Malaysia. He later take over Lake View in Subang Jaya and successfully make a come back in corporate sector. He then take over numerous golf club and make a name in leisure industry. After 1993 stock market bull run in Malaysia. Soh Chee Wen have control numerous public listed companies. He then become MCA Petaling Jaya Division Head and MCA Selangor State Liaison Commitee Chairman. He held son of ex-MCA President Datuk Seri Ling Leong Sik to gain control of several public listed companies. Share price of public listed company control by Soh Chee Wen and son of Ling has depleted substantially. His relationship with Ling turn sour. Now, Soh still have court case with Security Commision and Ling. Ling's son , however, has become Deputy President f MCA 's Youth Division.

Bumiputra entrepreneur, Tun Daim Zainuddin exist corporate sector to serve government as Finance Minister of Malaysia. He transfer an officer who "disappear" during office hour to "minum teh" out of Finance Ministry after being told he unable to remove a civil servant. His Ministry quickly become as efficient as private sector after that incident. However, his private sector style was unpopular among civil servant and UMNO member. He was recently involve in a controversial court case.

The fate of the above four persons must be difference if they remain in business and distance themselves from politic.

In Korea, Hyundai founder also joint politic at the age of 70. His sons, however, was charge by government on corruption. He pass away with disappointment and unhappiness.

What is the fate of Thailand Prime Minister Thaksin Shinawatra is yet to be see!

Update: Thai PM defends record after five years in power

Update: Global Voice Online

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

Tax benefit on brand building

I have stated that Malaysia's company do not have a single brand that make our company a world class company.

It indicated that Malaysia's company unaware of tax incentive provided by Malaysia government on brand building.

Malaysia's government provide double tax relief on Advertising & Promotion expenses on Malaysian brand. It might not substantial at a glance. Based on Malaysia tax rate at 28%, double tax relief is 56%. This is more that half of the Advertising & Promotion Expenses you spend. Thus, this is a powerdful leverage strategy you unable to ignore.

If you never do any brand building but your competitor did. what is the difference? Let illustrated if a company have RM2 million profit per year.

No brand building

Profit 2,000,000.00

Advertising & Promotion 0.00

Net Profit after A&P expenses 2,000,000.00

Taxable profit 2,000,000.00
Tax Paid 28% 560,000.00
Net Profit after Tax 1,440,000.00

Malaysian brand

Profit 2,000,000.00

Advertising & Promotion 1,000,000.00

Net Profit After A&P Expenses 1,000,000.00

Taxable Profit 0.00

Tax Paid 0.00

Profit After Tax 1,000,000.00

From the above illustration. Company with brand building pay RM0 tax wheareas company without any brand building expenses have to pay RM560,000.00.

Although Profit after tax for company without brand building expenses more RM440,000 than company with brand building expenses. However, in real life practise. Company with brand building expenses might generate more sales and thus more profit than company without brand building. Thus, usually company with brand building have more after tax profit than company that without any brand building expenses.

In theory, every RM1,o00,000 spend on advertising equivalent to RM440,000 on advertising expenses only. As government subsidise RM560,000. I rather pay the advertising company rather than pay to government. Amount pay to adversing company generate more sales than paying tax to government which generate RM0 additional sales.

If both company do pay advertising expenses but one with Malaysian brand that entitle to double tax relief but the other company pay advertising expenses but not Malaysian brand like OYL.


Non Malaysian brand
Profit 2,000,000.00
Advertising & Promotion 1,000,000.00
Net Profit After A&P Expenses 1,000,000.00
Taxable Profit 1,000,000.00
Tax Paid 280,000.00
Profit After Tax 720,000.00

Malaysian brand
Profit 2,000,000.00
Advertising & Promotion 1,000,000.00
Net Profit After A&P Expenses 1,000,000.00
Taxable Profit 0.00
Tax Paid 0.00
Profit After Tax 1,000,000.00

There is still a different of RM280,000. Thus , it is advisable to used Malaysian brand if this does not affect sales.

There is another method of performance measurement call Economic Value Added Mehtod. Which Advertising and Promotion does not classified as expenses but classified as non-tangible assets. Thus, I strongly advise Malaysia company spend A&P on Malaysian brand to improve competitiveness of Malaysia company.

Technorati Tag: Business Commentary Economics Economy finance Malaysia Opinion

Samsung of Malaysia, Hong Leong

In 14 Jun 2005, The Edge published an article written by V Sivapalan with title "World-class company still a dream". He stated that: Currently, there is no Malaysian "world-class company"........... We always cite Singapore's Creative Technologies as an example.........Sure, we have Petronas but that is a national oil company with an absolute monopoly over all our energy resources. We don't have a truly entrepreneurial Malaysian icon. South Korea has its Samsung, Hyundai and LG; China its Haier and Huawei Technologies; India its Infosys and Tata Consulting. Even the Philippines has San Miguel. Malaysia, well, unfortunately, we have nothing but a dream.

I disagree with him and I feel Malaysia have a few company. We have IOI group which has just acquired some business from Dutch's Unilevel Group. We have YTL Corporation which supply water to resident in UK etc.

South Korea icon is Samsung. Samsung started from Brevery, sugar refinery, textile, paper pulp and packaging, electrical appliance, Semiconductor and handphone.

While Robert Kwok in Malaysia start from sugar refinery, like Samsung. He later invest his wealth in leisure industry and not manufacturing like Samsung.

In Malaysia, one company that venture into paper pulp and packaging, electrical appliance and semiconductor industry is Hong Leong Group in Malaysia.

Hong Leong group first involve in packaging business when it acquired Malaysia Pacific Industry Bhd (MPI). Base on profit from the packaging. The company diversified into semiconductor business and renamed MPI. MPI later demerged the pakaging business from MPI to become Guolene Packaging Industries Bhd. In late 2004, Hong Leong Industries Bhd sell it packaging business to San Miguel Corp, the Philippines’ largest publicly listed food and beverage company, for RM133 million cash.

MPI operate it semiconductor business under Carsem and Dynacraft Industries Sdn Bhd. Not MPI nor Hong Leong. Thus, I feel Malaysia do not lack of world class company. The problem is branding. They do not operate under a single brand.

Malaysia is the largest air conditional manufacturer and exporter in the world. The leading player is Hong Leong's OYL Industries Berhad.

OYL Industries Berhad's CEO Liu Wan Min has been listed as one of the 20 CEO we admire at the year end issue of The Edge in end of 2005, together with his boss, Tan Sri Quek Leng Chan.

In Malaysia, OYL market it air-conditional under Acson and US's York Brand since 1978. Not Hong Leong nor OYL. In the 1990s, OYL acquired US-based SnyderGeneral, now renamed McQuay. It is not sure why Hong Leong never renamed it Acson nor Hong Leong but McQuay?

Again, we do not lack of world class company but it is an issue of branding.

If Hong Leong able to merge OYL and MPI under one company. It significant in Bursa Malaysia might be same as Samsung in Korea. OYL market capitalization is larger than Proton, a automobile manufacturing company.

OYL is more like LG in Korea rather than Samsung as it comprise mainly air-conditional and refrigerators and do not have audio division.

In Semiconductor, MPI is doing turnkey pakaging ,test services and manufacturers of lead frames and microelectronic packaging systems. This is still consider the low end of the vlue chain in semiconductor industry compare with Samsung Semiconductor.

The most important is Hong Leong do not have hanphone division.

Clearly, Malaysia have a lot of catch up to do. However, Hong Leong have the foundation which make the catch up much more easy compare with other group. Government should provide incentive for such group to merge, to venture to audio division, to take over loss making government semiconductor manufacturing division and to venture to cell phone manufacturing.

Please be reminded that Samsung mobile does not become competitive base on protection by Korea government but it own achivement.

Blog that link here: Amateur Zen Trader

TechnoratiTag:Asia Business Commentary competitive Economics Economy Malaysia News and politics Opinion Politik Shares Stock Market

Global Voice feature Chinese New Year In Malaysia

After my previous posting. I get some search for "chinese new year preparation in malaysia" from Google search engine from my blog.

I unable to blog for the subject as this might reveal my identity. However, I discovered that Global Voices Online has cover the subject. Read it if you are interested.




Update : Miracle8

Celebrating Chinese New Year.

Please be informed that there will be no posting for the next two weeks in preparation and celebrating Chinese New Year. I hereby wish all my chinese reader and those who celebrate chinese New Year have a:

Happy and prosperous Chinese New Year




10 Days Course : Guide To Trading With Discipline & Confidence (Advertorial)



TechnoratiTag:Business Commentary competitive Economics Economy Malaysia Opinion finance

Rumour on Digi & Telenor investment

DiGi shares price increase almost 5 sen per day since the beginning of the year. However, it's shares price on a decreasing trend at the end of last week and has been stagnant for the past few days.

Last few days, some of my reader has post comment on my blog to inform that there is a rumour in the market saying that DiGi minght not get the 3G license. Consumer in Malaysia will lose out if 3G license never grant to DiGi. The biggest beneficiary would be Government Link Company Celcom as it is less competitive compare to the other two telco.

Oriental Daily reported today that Energy, Water and Telecommunication Ministry want to standardize all telephone charges among the 3 telco. This mean consumer would not get the benefit of the price war rate they currently enjoy now. Again, the biggest loser is consumer and the biggest beneficiary is government control celcom. I feel government should let the market and each respective company to determine the price. Let the "invisible hand" to do the job rather than interference by the government.

Today, The Edge Daily reported that Telenor ASA, holding company of Digi Berhad announced that the company would invest RM45 million over the next three years to develop research and innovation (R&I) facility in Cyberjaya, the first outside Norway. This might be the reaction of Telenor against the rumour of DiGi not getting the 3G License. With so much money invest in cyberjaya. Would government reject the 3G license DiGi apply for?

It would be foolish for government to turn away such FDI in Multimedia Supercorridor (MSC)

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

South Korea, Singapore, Hong Kong and Malaysia

I come across an article written by a journalist with The Edge FinancialDaily Kevin Tan title: Shopping for growth model published on The Sun dated 7 January 2006. Kevin Tan was commenting a blog post by Jeff Ooi.

The debate : Does South Korea really offer a better model of development for Malaysia than our neighboring Singapore.

Jeff Ooi is correct by pointing out that South Korea has relatively a vast population, while Singapore is a tiny red dot.

Thus, I feel it is difficult to compare South Korea with Singapore.

Comparison with Singapore : Hong Kong

People used to compare Singapore & Hong Kong. They have similar population and size and both are financial centre and their port is shipping hub in world trade.

Malaysia benchmark against Singapore?

Although constantly denied by the authority. I feel Jeff Ooi is correct that Malaysia government is benchmark against Singapore in term of government policy.

1) Merger of Bank

Singapore government has merge it country bank into 4 bank to ease control. It would be more easy for central bank to monitor 4 banks than say 20 banks. Thus, more easy work for central bank audit team. Similary, Malaysia has merge it bank to 10 anchor bank few years ago.

Hong Kong, however, is a free market. It never dictate how many bank the territory is needed. audit team do not have difficulties monitor the banking industry.

2) Dominate by Government Link Company (GLC)

Singapore Stock Exchange is dominance by GLC like Singapore Airline (SIA) and Singapore Telecom (SingTel). Malaysia, after Asia financial crisis, has change it policy from nurturing bumiputra entrepreneur to become operate as GLC. Like Renong Group, now UEM World and others.

Whereas Hong Kong do not lack of entrepreneurs like Li Ka-Shin etc.

Both of the above policy has cause the diminish of bumiputra entrepreneur. Whereas GLC has been excluded in calculating bumiputra ownership under New Economic Policy (NEP). The cause bumiputra unable to meet the 30% ownership under NEP objective. In fact, bumiputra might control more than 50% of Malaysia economy if GLC is classified as bumiputra.

Under government merger policy. All Express Bus company run by individual bumiputra has been merge to become a company call Konsortium Express Bus (KEBS). All mini bus license has been take back and give to one company call Intrakota. All Teksi license has been take back and issue to few teksi company.

In fact, transport business is less competitive business and it is an easy business to nurture entrepreneur especially bumiputra entrepreneur. By merging all entrepreneur under one company. It look like Malaysia has shift from Hong Kong policy to follow Singapore policy. Then how government going to nurture bumiputra entrepreneur to achieved NEP target.

Really, I don't understand why it call Ministry of entrepreneur Development as it never develop entrepreneur at all. It should call it old name: Public Enterprise Ministry!

I feel government need not re-implement New Economic Policy. Government can just change it policy by following Singapore policy to become a Hong Kong free entrepreneur policy.

In private sector, we do not lack entrepreneur that similar to South Korea entrepreneur. Robert Kwok, Malaysia Sugar King same with Samsung founder start with Sugar refinery. But Samsung invest the profit from sugar into manufacturing like electronic whereas Malaysia's Robert Kwok invest in Hotel industry.

Similarly, if you read Genting's founder Tan Sri Lim Goh Tong Biography, you would find he is like Hyundai founder who like to work in contruction site. Hyundai, like Samsung, invest their money in manufacuring, to be specific, automobile manufacturing. Whereas Genting group focus on hotel and casino again.

It is sad that Malaysia entrepreneur like invest in leisure industry. If they venture in manufacturing industry like their South Korea counterpart. Malaysia might have Chaebols as large as South Korea.

Related read : Benchmarking of Asia Country

Next : Samsung of Malaysia
Hyundai of Malaysia

TechnoratiTag:Asia Business Commentary competitive Economics Economy Malaysia News and politics Opinion Politik Shares Social

The battle between Thailand Prime Minister & media tycoon

Thailand Prime Minister Thaksin Shinawatra face anti-government rally on Saturday demanding his resignation. The rally was lead by media tycoon Sondhi Limthongkul. Both Thaksin and Sondhi are chinese decent.

Media tycoon Sondhi Limthongkul come to limelight when he launch a pan-Asian newspaper Asia Times in 1995 to rival Asia Wall Street Journal. He claim that Asia Wall Street Journal published western view point and Asia required it own paper to published Asia view point. His definition of Asia: excluding Japan and Korea, more narrow than Malaysia ex-Prime Minister Tun Mahathir definition of Asia which only excluding Australia and New Zealand. Asia Times went down in flames when the financial crisis erupted in 1997. One of Sondhi Limthougkul's monthly magazine Asia Inc has been taken over and run by by Malaysia's The Edge.

Sondhi Limthougkul said he only seeking freedom of speech so that newspaper control by him able to published news on abusing power, cronyism and corruption. But the reaction of Thanksin's government has force him to battle with the government to protect his own interest.

Thanksin has withdraw a legal action against Sondhi's newspaper under the advise of King.

Nanyang Siang Pao on 16 Jan 2006 commented that the battle is a conflict of business interest between family of Thanksin and Sondhi. Nanyang further commented that Thanksin ruling party won more than 80% of the parliament seat during election held on February last year make him the only Prime Minister to have two term in office in history of Thailand. Thus, Sondhi organized rally, despite reasonable, difficult to stand on legal ground.

Today's Nanyang reported that teacher in Thailand has joint the rally to protest the Prime Minister.

Update: Thai PM defends record after five years in power




TechnoratiTag:Asia Commentary Malaysia News and politics Opinion Politik

Republished of Dr Ng Seng's letter

I come across a blog post that republished the letter of Dr Ng Seng (Dr Unsuccessful) with the title : PLEASE READ dated 26 December 2006. I get some click link from that blog which mean it is active recent post.

TechnoratiTag: Malaysia Opinion finance News and politics Opinion Politik Shares Social

Healthy cash flow company listed on Mesdaq

A senior manager of corporate finance department in Horwath (Chartered Accountant), Miss Teh Su-Ching published an article on current issue of The Edge this week.

She analyze company listed on Malaysian Exchange of Securities Dealing and Automated Quotation Market ( Mesdaq ) using cash flow rather then profit. She laud the Singapore Exchange in it listing guildlines say, inter alia," The group must be in a healthy financial position, having regard to whether the group has a positive cash flow from operating activities?"

She view that our Malaysia listing guidlines are profit-driven although there is a reference to "sufficient level of working capital at the point of listing." which she feel is quite easy to meet since the main consequence os listing is often a healthy bank balance (Other than some recent listings that only RM3million gross proceeds)

Only half of the company that reported profit has positive cash flow (net of research and development expenses), of which, only three(3) companies had receivable days of less than 100.

The three company is:

Online One RM249,000 ( 6 months )
I-Power RM728,000
Kannaltec RM1,077,000

Online One (ERP)come in to limelight when the company on 31 August 2005 announced that it would acquire FTEC (a Make in Malaysia's PC brand ) and CBS technology Bhd(e-security).

Kannaltec, is a container service company or a logistic company for me rather than a software company as describe by Teh Su-Ching. If your company dealing with import/export and container in Malaysia. You probably heard of Kannaltec before. The company CEO is an ex-Financial Controller of North Port. The company is planning to duplicated it success in the regional country.

I-Power, which claim it client included e-Genting Sdn Bhd (first client), Amway (Second) and now we have a portfolio of established clients.

I-Power is working on three new products at present: the I-Power ePos, eFinancial, and a data-mining engine based on artificial intelligence.

The company was in the process of doing a parallel run of its ePos, a point-of-sale solution for Esthetics and had already implemented the eFinancial, an accounting solution, for Ni Hsin while the data mining engine solution was still being developed.

I-Power other client included Sony (M) Sdn Bhd, eCosway.com Sdn Bhd and Teledynamics (M) Sdn Bhd.

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

Food for knowledge economy

In Asia, people usually eat rice, which is food for agriculture economy. Rice provided energy for people to work in farm. When Asia countries like Malaysia transform from agriculture economy to industrial economy. Rice as a major food still suitable for blue collar worker.

However, when we transfer from industrial economy to knowledge economy. Does rice, which provide energy rather than brain power still suitable for us?

I remember when I was a child. I read an article written by a Nanyang Siang Pao's correspondent in United State Mr Leong. He mentioned than he only able to read an English book per week whereas his friend in American,who is a professor in an US's University able to read a similar thick book within a day.Mr Leong told the professor that may be he is not English educated and English is his second language and this cause him takes more time to digest an English book than the professor.

The professor told him that this is because of food. He eat rice, which provide energy that do not required by white collar worker but unable to provide nutrition to brain. Professor advise him to try to eat western food instead and see what is the outcome.

Mr Leong feel that there is no harm trying. He eat western food like "set lunch" and "set dinner" provide by western restaurant in US. Which is much cheaper than western food in Asia country like Malaysia.Mr Leong also eat western breakfast like half broil egg.

After one week of eating western food. Guess what? He able to read and finished an English book within one day, as fast as the professor which English language is his first language.

At that point of time. Fast food like MacDonald is not that popular like now in Malaysia. Thus, western food does not mean fast food. Mr Leong has pass away but he has published a set of books, which is a collection of all articles publish in his column in Nanyang over the years. However, his book is selling fast and I unable to find such particular article again on book available in bookstore.

I rarely find his book in bookstore now a days. May be all near to sold out.

I think Malaysian and Asia country might want to change their eating habit if want to success in knowledge economy.

Update: Global Voice Online

TechnoratiTag:Asia Business Commentary competitive Computers Economics Economy Malaysia Opinion Tech News Technology

Bumiputra CEO and continuity of GLC

In 26 June 2004, Finance Minister II Nor Mohamad Yakcop said that there were enough highly qualified bumiputras with the right credentials to join the senior ranks of non-bumiputra-controlled private sector companies or even as CEOs.

"The private sector, like the Government-Linked Companies (GLCs), must get the best and the brightest personnel to join them, and there are many bumiputras who fit this description," he said.

However, over the years, GLC has removed more bumiputra CEO that cause continuity problem of strategy in Government Link Company (GLC).

First, in June 2004 itself, Kumpulan Guthrie Bhd's former chief executive Tan Sri Abdul Khalid Ibrahim has failed to get re-elected to the board of the plantation group, which he has been associated with over the last 23 years.

Tan Sri Ibrahim left PNB in 1994 to lead Guthrie after the former granted him an option to buy up to 20% stake in the plantation group for RM3 a share. He is the person who help Kumpulan Gutherie to gain control of large plantation land in Indonesia.

He has taken Permodalan Nasional Bhd (PNB) and Bank Islam Malaysia Bhd, Labuan (BIMB) to court, claiming he had been denied the right to buy the remaining 135 million Guthrie shares.

Market rumours said that Tan Sri Abdul Khalid ousted because he disagree with the the merger plan, not because he is incompetent. Howeve although Golden Hope Plantation Bhd and I&P has merge their plantation and property group respectively. The merger did not involve Kumpulan Gutherie after 2 years the CEO has been ousted.


Second is MAS managing director Datuk Ahmad Fuaad Dahlan. His, resignation, which announced simultaneously with the report of first quarter losses.

Yet, year end issue of The Edge quoted " to blame Fuaad solely for the airline's trouble is terribly unfair. Malaysia Airlines' failure is a result of adultering what was meant to be a private company with social and political agendas. And that is collectively the fault of its owners and manager."

Third , Most controversial one is Proton Holdings Bhd's chief executive officer Tengku Tan Sri Mahaleel Tengku Ariff contract not renew. His departure lead to Proton disposed off MV Agusta at nominal value of only one Euro which Mahaleel acquired at 70 million Euro (RM315 million). His departure cause no continuity of his strategy to revive MV Agusta claim by open letter by Mahathir and Mahaleel.

I do not feel that constant removal of bumiputra CEO at GLC is the right strategy as it cause discontinuity of strategy. Especially the reason of removal is not incompetent. But merely have disagreement with certain people.

I agree with the view point of "letter to Editor" published by The Star dated 10 Jan 2006 that the GLC should have good succession planning practice by multi-national corporations like General Electric.

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

Fair Value Accounting and Proton disposal of MV Agusta at one Euro

Malaysia's national car manufacturer Proton has bought a motorcycle manufacturer at 70 million Euro (RM315 million). Under the newly implemented Fair Value Accounting. The investment have RM Nil fair value and thus, Proton has write off the investment at the last quarter result.

I do not feel a motorcycle manufacturer has a synergy with car manufacturer. Thus, I do not agree Proton purchase of MV Agusta in the first place. ( The money can be used to acquire a business that have synergy like Mitsubishi)

Advantages or disadvantages of Fair Value Accounting

However, by disposing MV Agusta at nominal sum of one Euro. It appear that the company has taken the easy way out without explore the brand value of the company as claim by open letter by Mahathir and Mahaleel.

Fair Value Accounting might be good to financial market. As Proton shares prices increase after the announcement of the disposal.

However, Fair Value Accounting also fail to reflect a Loss on Disposal of Investment amounting to more than RM315 to RM500 million by the company. Which the old Accounting Standard do.

Under Fair Value Accounting, such loss only reflected on Management Account if the management keep one. I doubt the Proton management keep a management Accounts. Even if they do, Management Accounts do not have a Standard like financial accounts.

The open letter stated that the debt would not realize in 3 years. However, the management choose not to make used of the 3 years to maximize the disposal price of MV Agusta.

Clearly, Fair Value Accounting promote shortermism. It emphasis on short term result of the company rather than long term plan of the company in performance measurement and decision making.

Fair Value Accounting Vs Inflation Accounting

During 1970 when inflation rate was high cause by high petroleum price. Accounting fraternity has introduce a Standard base on what they call Inflation Accounting to reflect the drop in purchase power. However, few people in accounting profession really understand the figure, not to mention layman on the street. It is an Accounting Standard but few company follow and prepare another set of Inflation Accounting.

Would Fair Value Accounting has the same fate of Inflation Acounting is yet to be tested

Too earlier of harmonization

Fair Value Accounting is new even on international basis. We have not seen the impact, precedence, weakness of such accounting standard implemented in other country. Are we too early to jump into the bandwagon?


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

I was outstation

I was outstation on Tuesday and Wednesday. Thus, less posting for this week. My finding on my outstation trip has been posted on my another blog Beauty Biotech. Read my posting here

TechnoratiTag:Business Commentary competitive Economics Economy Malaysia Opinion finance

Bumiputra at SJK(C) Sin Chung in Kepala Batas, Pulau Pinang

With the Chinese language become more and more important as a required skill to obtain job opportunity in Malaysia.

We do not lack of bumiputra study in "Sekolah Jenis Kebangsaan" to improve their competitiveness.

With the government policy not to construct new chinese school. Chinese have to compete with non chinese to obtain a place to study in Sekolah Jenis Kebangsaan.

Yet, a developer obtain a court order to demolish one of the limited available Sekolah Jenis Kebangsaan.

A lot of pupil are crying when their school is being demolish. Including bumiputra pupils, Mohd Nazran Yahya, Mohamad Faizal Jamil and their mother Rosnah Said.

Government please protect a "non-Wawasan School" that promote national unity!

Update : Developer ordered to stop earthworks around school

Oriental Daily reported on 7 January 2005 that the school has 46 pupils, of which 18 is bumiputra

Related link : http://chiakc.blogspot.com/2006/01/blog-post_11.html#links

TechnoratiTag:Business Commentary Malaysia News and politics Opinion Politik Social

Outsourcing Vs Partnership

When a freelancer want to scale a business. Usually they opt for partnership like a lawyer firm or some accounting firm. This is a western style of scaling a business. For accounting firm, They have grow into Big 4 international accounting firm.

However, for chinese or asia culture. This always doesn't work.

Indian community like to do small business. They operate their own newspaper retail outlet, a Money changer, a mamak stall, or which we call "Kacang Putih" business. Such small business approach resulted a statistic showing they control less than 3% of Malaysia's economy. Which I feel is not true.

Chinese in Malaysia, Hong Kong and Taiwan (not Singapore) are more entrepreneur. Their partnership is less successful than outsoucing.

I heard a story from Hong Kong:

Two of a long term friend form a partnership. One partner is good at marketing and like to deal with people. The other is good at production. As they complement each other skill. Business has prosper. Then, relationship between partner turn sour when they have dispute over remuneration of partners. Later, the situation become worst when one partner hire a relative of him under to work in the partnership, without the consent of the other. They have dispute over the staff salary as well. Eventually, they have a great fight and they agreed to cease the partnership and operate on their own.

Business turn bad after that. The one who is good at marketing unable to hire a good production staff. Thus, the quality of the work was not as good as before. This has turn customer away. Whereas the other who is skillful in production unable to get enough business as marketing is not his strength. He might be not have the contact or unable to negotiate the best price or unable to provide the good customer service as before. Business turn bad and their separation is prove to be a lose-lose situation.

However, as both of them has bad experience with each other. It is unlikely they become partner again as they have dispute on hiring and numerous other matter.

One of the partner happen to know a amateur business consultant and he seek his advice. The amateur consultant advice them to work together, but not in partnership nor in same company.

They operate under two company. Which they can hire their own staff and control their own expenses. However, they operate as a separate independent business entity. They can work in the same office or have their office next to each other.

One company with good marketing skill get the business. Then they outsource the work to another company at an agreed price. The other company concentrate on production and quality control.

Initially, the partner sceptical about the suggestion. But when he approach the other partner who has quarrel with him before. The other partner was just figuring how to solve the problem of declining sales. He immediately agree to cooperation again.

After few months of operation. Business has prosper again.

This indicate that sometime, outsoucing is better than partnership.



But how to scale the business?



Then you have to read Robert T. Kiyosaki's "Rich Dad, Poor dad" Series. You have to read "Before you quit your job" first. Then, if you want more indept advise. You have to add "The ABC of Building Business Team that Win"

Update: In Taiwan, outsourcing and small business approach has turn the country into on of the largest business cluster in personal computer industry which able to overtake South Korea giant like Samsung LG and Hyundai

Link : Ehlite Junior.com

TechnoratiTag: Business Commentary competitive Economics Economy Malaysia Opinion

Who heard Satsun before in Sarawak?

I like to enquire who has heard of Satsun Herbal Medicated Oil before?

The product was manufacture by CHS Medical (M) Sdn Bhd and they claim the product has been in the market for well over 48 years, primarily in the Borneo states especially Sarawak and with recent expansion the product also can be found in Brunei, Sabah, Singapore and Hong Kong.

They claim the reason the said oil is relatively unknown in the west Malaysian states was due to the fact that in the past the production, which was a “back yard” type operation, was small. Whatever that was produced was all taken by the Borneo States, leaving little or no surplus for sales to the west Malaysian states.

Is it true?

Those who have info on such product. Please email to me at:CompetitiveMalaysia@gmail.com or post a comment on my blog.

Your feedback is much appreciated.

TechnoratiTag: Business Malaysia finance

Loser in Malaysia stock market in year 2005

1. Datuk Chin Chan Leong, Fountain View Development Bhd

Fountain View Development shares prices fell from RM5 to 40 sen in the space of three weeks, wiping out RM1.8billion in value and triggering mild panic amongst investors, stockbrokers and banks. The fall of shares price has affected the business of Bukit Cerakah project of the company. His case with Securities Commission is pending.



2 Tan Sri Datuk Lau Ban Tin

Tan Sri Datuk Lau Ban Tin is a property developer in Klang and Shah Alam. He has acquired two Sarawak base company BIG Industries Bhd and Ngiu Kee Corp (M) Bhd.

Both BIG and Ngiu Kee shares price hit limit down after Fountain View incident above.

Tan Sri Lau Ban Tin theaten to sue the bank of withdrawer of facilities but no news after that.

Being a property developer and control an industrial gas company. This is just like the beginning of IOI group where IOI was a industry gas company at one point of time. The limit down and force selling definitely put his ambitious to become another IOI group on hold.

3 Tan Sri Chan Ah Chye, Talam

Tan Sri Chan Ah Chye of Talam Group, is still in negotiation to disposed of part of his shares in Kumpulan Europlus Berhad to IJM Group. However, his private company Intelbest Sdn Bhd is still recruiting staff agressively since the first half of 2005! Thus, I feel is still too early to write him off.

4. Teoh brothers of Kumpulan Emas

Teoh brothers, who started from Summit Square project in Selayang has control a few company under Kumpulan Emas Group. Plaza Summit in Subang and South City Plaza in Seri Kembangan are the group properties. Kumpulan Emas has an 11.28% stake in property developer Meda Inc Bhd and a 23% stake in SEGi. In June, the group disposed of its 32.48% stake in water engineering firm Salcon Engineering Bhd. Salcon is considered as one of the group's best asset.

On Nov 11, Datuk Hii Chii Kok, the chief executive officer of SEG International Bhd (SEGi), announced that as at Nov 8, he owned 32.85 million Kumpulan Emas shares, or a 5.05% stake.

On Dec 23 2005, Kumpulan Emas Bhd shareholders will vote at an annual general meeting on a proposal to rename the company EcoFirst Consolidated Bhd.

5. Datuk Johari Abdul Ghani,
Ex-Managing Director,
KFC Holdings and QSR Brands

Datuk Johari Absul Ghani, depite losing control of fast food KFC Holdings Bhd which hold Kentucky chicken franchise in Malaysia, still control CI Holding Bhd. Which hold pepsi franchise in Malaysia.


Update: Finanicial Planning Malaysia

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