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Sakmongkol ak 47

Wednesday, 13 October 2010

Around our country this past week-2

Syed Mokhtar Al Bukhary is well known in corporate circles. His name has never failed to surface whenever the list of Malaysia's richest is complied. Year after year, his name appears as the top Malay Malaysian. His assets and business interests are wide ranging.
Malays generally take pride in his achievements. Political leaders are especially fond of mentioning his name and associating with him adds prestige. He is also well known for Islamic projects.
He seems to have every finger in all sorts of economic pie. I suppose if he runs out of fingers, every toe counts too.
At one time, he even asked Dr Mahathir to appoint him as UMNO treasurer. Is the post of UMNO treasurer a gateway to a more fabled kingdom or what?
In Johore, his business interests are extensive. He has interests in water supply in Johore. He has ports. He has airports. He has interests in the supply of military hardware. He owns 51.8% share in Malaysian Mining Corporation via his wholly-owned company, Syarikat Impian Teladan Sdn. Bhd. Tan Sri Syed Mokhtar and his partner Zainal Hatim personally owns SKS Ventures, which was awarded the task of building the site for 2100MW coal-fired power station at Tanjung Bin, Johor.
Tan Sri Syed Mohktar has a 32% share in PERNAS through his own company, Syarikat Ratu Jernih. Syarikat Perdana Padu Sdn. Bhd. and Corak Kukuh Sdn. Bhd. Tan Sri Syed Mokhtar and Zainal are Board Members of Syarikat Bina Puri Holdings Berhad, whereby, on his own, he has 7.34% share. Apart from these, Tan Sri Syed Mokhtar and Zainal has varied interest in a number of companies, both in Malaysia as well as abroad.
How can one Bumi get all these? He is the Superbumi that I mentioned sometime back. How can one person corner the resources? Once he has all these must he be given some more? Are Malaysian Malays that stupid so as to depend on one individual to carry the name of the Malays? To prove to others, Malays have business acumen?
This is the flaw in the reward system that I have written before. We don't have a reward system that compensates the industrious and the clever people. Syed Mokhtar is without doubt very industrious, but we cannot be expected to believe that among 17 Million Malays, only Syed mokhtar has the smarts?
Pernas which was formed by Tengku Razaleigh a long time ago, had shares divested to well connected people. I mentioned this because TRH's name has now become prominent. Lets substantiate that prominence by mentioning what he has done before that is different from his successors. In this way, we can differentiate prudent business management as opposed to most favoured man for business opportunities method. The main difference being, when Pernas took over business interests from foreign entities, the resources were owned by Pernas for the benefit of many. That changed when Pernas which later became successful offered shortcuts to well connected people to become rich instantly.
The other difference being, TRH wasn't interested to designate any particular individuals as the driving force to represent Malay economic interests. When that happens, only that particular Malay becomes rich. The others have their interests taken away. In other words, TRH didn't practice crony capitalism.
Now he has offered to buy UEM. I was listening to a doctorate holder of a researcher saying glowing things about Syed Mokhtar's business entities. He was talking about the value of his assets and the track record of this Syed. But what is his net worth now? what is his loan exposure. I am sure the researcher went on air prepared. But here is an interesting counter point. The Malaysian Business magazine last year estimated that Syed Mokhtar is worth some US$1.8 billion (RM5.58 billion) with his shareholdings in several listed companies. He has a loan rumoured to be RM 26 billion. So how?
The banks who lent money to him, should come out to say how much this man has borrowed because the financial exposure of one person who is highly geared can lead to the implosion of our financial system,. The banks need to clear the rumours swirling in the market that Syed MOkhtar or his companies have debts to the tune of RM26 billion. Also, is it true that one bank lent Syed MOkhtar RM 6 billion? If it did, then maybe it has flouted the client limit requirement which banks observed.
If Syed Mokhtar has offered RM 15.6 billion for UEM probably with an eye on acquiring the Plus highways, how does this offer compare to Asas Serba's offer of RM 50 billion? When the later amount was announced, Nor Mohamad Yaakob doused that offer by saying the Plus highway business had cost the government over RM 200 billion. So, now, why should the government even consider a paltry amount of RM 15 billion? And why is Nor Mohamad Yakob silent on this offer by Syed MOkhtar?
Something is not right here. Unless of course, Syed MOkhtar has strong supporters behind him. If Syed MOkhtar has a loan exposure of RM 26 billion, will he be able to raise the funding to actually buy UEM? And if he has to rope in the EPF to become his partner, the government might as well invite EPF alone to make an offer to Khazanah.
We are tired of the government playing pass the baton. It says it will not interfere with Khazanah's call if the latter decides it wants to sell. But the CEO of Khazanah, Azman Mokhtar said this:-
that the public should also keep in mind that the cash generating Plus highway concessionaire is "owned by everyone" by virtue of its ownership under Khazanah. "There is the status quo option that everyone should consider," said Azman. "Plus is a national asset that is well managed." the decision "shouldn't take too long" and said that it wasn't Khazanah's decision alone but it would involve the government which was mindful of the need to moderate the affordability of toll rates.
I like lah, this pious response.


Anonymous,  13 October 2010 at 15:52  

Of course, the kampong Malays who eat ikan kembong and daun keledek for lunch will be proud that there is a superBumi billionaire amongst them and vote UMNO for his success.

d'enricher 13 October 2010 at 16:03  


In simple term, if it is true that he owed 26 Billion, anything happen to him (as they say touch wood), will the bank's not be in trouble???

Maybe ... at that time there is no industrious enough malay, or

maybe ... he is so capable that it is not worth to offer others the deal.

Maybe ... he knows the right type of people compared to you and me.

By the way, I really would like to know how he started, maybe all of us can learn from him.

One of the Universities should really take up a program " Syed Mohktar's School of Enterprising "


Anonymous,  13 October 2010 at 16:34  

‘The main difference being, when Pernas took over business interests from foreign entities, the resources were owned by Pernas for the benefit of many.’

Ya-loh, Pernas ‘borrowed’ the seed money from the tax-paying M’sians & used the acquired resources for the benefit of the Malay M’sians within a grouping ONLY.

Later that beneficiary was ‘transferred’ to a club, then onward to a cartel – all in the name of looking after the well-being of the Malay M’sians.

Pernas is the epitome of the ‘have had’ that was done to the Malay M’sians in the truth spirit of ketuanan.

Never a cent of that seed money was returned. Instead, like many touched by these ketuanan thingy, it was conveniently forgotten!

Anonymous,  13 October 2010 at 16:37  

I think more pertinent question the Malay would like to ask, what specific programs UMNO has as the dominant party in the government to improve the economy of Malay? I somehow sense that the UMNO do not want Malay to be successful unless for selected few. The prove is we have more billionaires among none Malay in Malaysia.

I think the Malay public perceive that UMNO leaders have failed miserably in this dept.

Anonymous,  13 October 2010 at 16:38  

It looks like once in every few years, a super bumi lands in this Bolehland. Previously, we had Tajuddin Ramli, Halim Saad, Wan Azmi and the likes. All of these personalities are somehow link to some UMNO elites. During their heydays, these personalities were very 'successful' becoz some banks were brave enough to loan them unlimited amount of money.

If Syed Mokhtar does have loans amounting to 26 billion, then the country would face another implosion should there be another round of financial crisis. Somehow or rather, we never seem to learn from our past mistakes. Are our bankers collector of mistakes or corrector of mistakes.

Anonymous,  13 October 2010 at 16:58  

Please read Barry Wain "The Maverick". It is all there, clearly described how and why they do it that way. from maminco,BMF, Perwaja,BN Forex, Proton to Dayabumi building, to Penang Bridge, North South highways and now the PKFZ, the airbase land development. They did it the same old style! They never learned any lesson.We just have to throw them out to clean up Malaysia.

OneMalaysian,  13 October 2010 at 17:09  

Dear Sakmongkol

“Are Malaysian Malays that stupid so as to depend on one individual to carry the name of the Malays? To prove to others, Malays have business acumen?”

Is it really so difficult to figure how Syed Mokhtar made his money? Just analyse the TYPES of assets he controls – ports, power stations, airports, water companies, military hardware suppliers – you will discern a pattern. They are all either monopolies or quasi-monopolies and they all do business with the government. These kinds of businesses don’t go bust – how could they when prices, volumes, and payment are guaranteed? In such businesses you can go to the bank and borrow not only for working capital, but also for capital expenditure (to build and to expand), and also borrow to buy into those companies i.e. his ownership in those companies. Banks are only too happy to finance these no-brainer businesses because government guarantees the cash flows. If some banks should baulk, a phone call from some high places will take care of that. This explains the very high gearing that he operates on. It also explains why his borrowings exceed his net worth by such a big margin. Now he wants to grab PLUS too.

Any of the 17 million Malays can be Syed Mokhtar. No genius is needed. He did not start most of those businesses from scratch. There is no business acumen involved. There is hardly any risk taking if the government is your business partner. What you need are connections and some daring to tell those in power that YOU can do it. This is what he could do better than any of the 16,999,999 Malays. Let’s see if he can START some new business that does not involve the government in any way (buyer, guarantor) and that requires competition in a global market without any protection. That will be a true measure of a good businessman.

By the way, in my book, the most successful businessman is Nasir Razak, who contrary to popular belief, succeeded without any help from his big brother. More Malays should take him as their model, not this crony-in-chief called Syed Mokhtar. He not only robs Malays of opportunities but also shows what cronyism is doing to our country. The wonder is why he is still able to carry on as he does.

Anonymous,  13 October 2010 at 17:09  

Well we just need another global financial crisis to unfold this 'inappropriate' deals being made behind the Rakyat and at the expense of the Rakyat.

One Bumi super-rich or a handful of them is not the objective of the NEP. The Malays should realise that. It has happened for too long and the majority of the Malays are not benefiting it but a handful, well-connected ones.

Looks like another bail-out is in the horizon. These individuals are basically not interested in running the business but to 'milk' the business until 'kering-kontang'. Then they ask for emergency funds to bail-out. EPF will then step in and buy the shares above market price. This has happened and I will not be surprised if it happens again. No wonder Malaysia will go bankrupt soon.

No wonder no foreign investors want to come in. No deal for them. All deal done behind closed doors.

Anonymous,  13 October 2010 at 17:11  

Ever heard of "project financing" where the loans are ring-fenced and non recourse to the holding companies? They have concessions-based businesses, whose cashflow will be used to repay the debts.

People gotta learn to stop associating 10000% the entrepreneur and their business entities.

If there are other Malays out there who can do a better job in one way or another, where are they? I'd like to know too. I don't think its fair you blame the person for other people's inability to get a piece of the pie. It's a jungle out there maaa..

You gotta hand it to him to have the balls to push for business the way he has and run it well and give back to society.

He came from such humble beginnings and toiled for his success. My former boss who worked closely with him said he used to sell nasi lemak in Kedah when he was just a child, so that he could help his family.

Anonymous,  13 October 2010 at 17:35  

U think Azman will not tow the line...even a whispered Wahyu?Evaluations are pretty subjective anyway.. long as rakyat wins..don't really matter who gets billions.Of cos,its good if its me.

Genuine non-Perkasa/PR Bumi

Anonymous,  13 October 2010 at 17:39  

TSSM also owns a few apparel brands & white goods E&E consumer company..quite a hands-on and very strategic biz guy.His associates have NOTHING but good things to say abt him.

Very humble,hardworking and fair.Drives only a Proton and wears local Batik.

Lets doain for his continued success.

Anonymous,  13 October 2010 at 17:56  

Yes Dato, may be you should do a follow up piece, on the road to riches for SM, I would like to know too...tq

jeffrey,  13 October 2010 at 18:47  

This super malay billionAir is just a front for UMNO to "Con-ner" all the valueable assets of the country before UMNO get kicked out by the rakyat. This explain why he is able to buy at such loooow price.

Anonymous,  13 October 2010 at 18:52  




Anonymous,  13 October 2010 at 18:53  

UMNO is coming to the end of the grab all the creams before it fades.....

Red Alfa 13 October 2010 at 18:57  

Salam Dato'

Today when we should be concerned that Malaysia may never ever get to be among the performing economies in the world, why would we Malays find pride and joy that Tan Sri Syed will be offered another bulk of the ETP/BO projects?

After the likes of the other also rans billionaire Tan Sris Halim Saad and Tajuddin Ramli, why would we ever?

It must be a given that never ever that is not good to honest enterprise/effort will it get the blessings and barakah from Allah SWT and without this it will only become the ignominous failure and with that all Malays shall carry the very bigger share of shame.

Anonymous,  13 October 2010 at 19:33  

With reference to the comment on project financing, it is not this matter per se. Its the way the 'tender' are awarded. Humble beginnings is a good thing but the issue here is transparency. Nothing against the individual concern. But if he is getting an unfair advantage over the others, then its WRONG!

Anonymous,  13 October 2010 at 20:57  

Before too long, Malaysia would be taken to the cleaners by the this small group of Bumiputras.

All greed and no shame, yet the malays, for whatever reason, allow it to happen.

I will balik Tiongsan if China will accept me, but I don't know where my malay countrymenn can go.
I sure can't take him along to China because he does not speak Chinese.

Berita dari gunung 14 October 2010 at 02:37  

It's alright for anyone to be rich, it's normal for anyone to take loans, and in fact it's normal too for a businessman to maneuver his way for a job/contract/. On the quantum of loans, a young guy with 1,500 a month will have to take a loan of 50,000 for an average car. Loans should not be seen as something extremely dirty.

Syed so far had been showing good image. Some considered him very pious. Too bad, efforts had been made lately to give Syed a less than perfect picture.

On a a very tight business highway, with no speed limit imposed, rivals do have to squeeze in with shrewd strategies. Tarnishing opponent image is wee bit simpler than proving ones worthiness.

Anonymous,  14 October 2010 at 09:41  


We have to thank our ex-PM TDM for creating this Superbumi plus a few others.

As for Superbumi Syed Mokhtar being extremely over-geared, he has no worries because the 1Government will have RM1.4 trillion to bail him out if the banks are forced to recall the loans. TDM's government had bailed out other Superbumis previously so it is tradition for the current 1Government to bail out other Superbumis should the need arises. Remember we are Malaysia Boleh so semua pun boleh.

Anonymous,  14 October 2010 at 09:54  

I dont agree, if you sell UEM to Syed. Im worried that Rakyat would have to pay more toll, thereafter.

Who is Azman Mokhtar to Syed?

CYC,  14 October 2010 at 10:13  

Name me one business that Syed Mokhtar has nurture from nowhere to somewhere. The answer is none.

Anonymous,  14 October 2010 at 10:53  

Jamal, bravo..
I like the emotions shown.
Helps to reinforce not all malays are 'impotent' yet.
Next, to channel it to some action plans.
At worse, we have perkasa..
I dunno .... any suggestions?

Anonymous,  14 October 2010 at 11:18  

The GLCs, crowding factor notwithstanding, are not doing too badly as far as tax contributions are concerned. They and petronas pooled in some 75% of govt's revenue in 2008.

Kudos to malay management!!

PLUS was top 10 tax-payer in 08. Higher than ytlpower,airasia, BAT,Gamma, IJM, Maxis, IGB.


Anonymous,  14 October 2010 at 11:29  

An0ther story like Tajuddin Ramli?

walla 14 October 2010 at 13:38  

UMNO's Corporate Cornucopia

Wednesday, 13 October 2010

In the 1980s and 1990s, Halim Saad and Tajudin Ramli were two of Malaysia's brightest stars, picked by former Prime Minister Mahathir Mohamad to lead the country's ethnic Malays onto the national stage as exemplars of a new Bumiputera business culture that would catch up with the ethnic Chinese who had dominated commerce as long as Malaysia had been in existence.

When Mahathir took office, insiders say, his plan was to create a cadre of 100 super-rich bumis who in turn would help rural Malays into prosperity under a konsep payung, or umbrella concept routed through the United Malays National Organization, much the way he envisioned driving the country into industrialization through massive projects. But greed intervened. Once the privileged got rich, there was little incentive to share it with the kampongs, the Malay rural villages. Many of the companies eventually collapsed and are being supported by government institutions such as Kazanah Nasional, the country's sovereign investment fund, or the Employee Provident Fund.

Although the Umno connection was widely assumed during Mahathir's 22 year reign as prime minister, today a flock of explosive court documents filed in different Kuala Lumpur courts appear to be breaking open conclusively the open secret that Tajudin and Halim and others were essentially front men for the United Malays National Organization, the country's biggest ethnic political party and part of a class of rentier businessmen who became known as Umnoputras, a play on the word Bumiputera, or native Malaysians, predominantly ethnic Malays.

Nor were they alone. Others included Syed Mokhtar Al Bukhary, one of Malaysia's richest men, as well as Yahaya Ahmad, who headed Mahathir's national car project and who tragically was killed with his wife in a helicopter crash, and Samsuddin Abu Hassan, introduced by Mahathir to the government of Nelson Mandela but who had to flee South Africa after being accused of misappropriating millions and evading South African debts totaling about R50 million (US$7.233 million at current exchange rates). Samsuddin left behind his glamorous wife, Melleney Venessa Samsudin, along with a failed Durban bank, and returned to Malaysia.

Samsudin ultimately ended up on the board of directors of Mitrajaya Holdings Bhd., another Umno-linked company that has played a significant role in major national projects including the Kuala Lumpur International Airport, KL's Light Rail Transit System, the CyberJaya Flagship Zone and numerous other projects.

At least 23 of Malaysia's biggest companies (see list below) appear to have been vehicles for Umno to siphon off vast amounts of money in government contracts as Mahathir's plans went awry. The companies and the people who run them are so hard-wired into Umno, the government and its investment arms that de-linking them would probably destroy the party. That in effect makes a mockery of Prime Minister Najib Tun Razak's widely publicized speech in July in which he promised to root corruption out of his party.


walla 14 October 2010 at 13:39  


Much of the ownership appears to have been channeled through a mysterious company that emerged in 1993 to stage an RM800 million management buyout of a major chunk of Malaysia's media including the New Straits Times Press (M) Bhd and TV3. Realmild already owned a controlling interest in Malaysian Resources Corporation Bhd, which got the contract to develop the massive Kuala Lumpur Sentral transport hub. It also acquired ownership of the Labuan and Sabah Shipyards, which supply the Malaysian Navy, as well as Redicare and Medivest, which were awarded lucrative contracts to supply medical supplies to government hospitals.

In September, Syed Anwar Jamalullail, the brother to the Sultan of Perlis, and others testified in a tangled court battle in a Kuala Lumpur High Court that Daim Zainuddin, the prime minister's close associate, often told Malay businessmen to act as nominees in the management of Malaysia's top companies. The long-running suit was launched five years ago in2005 by Khalid Ahmad, a former Realmild director, who alleged he had been cheated out of a RM10 million payment for five percent of Realmild's shares by Abdul Rahman, thought to be the beneficial owner.

According to the testimony, Abdul Rahman paid out the RM10 million but later reneged after he learned from Mahathir that the shares actually belonged to UMNO. The trustees for Realmild in fact were Mahathir himself as well as former Berita Harian Group Editor Ahmad Nazri Abdullah, New Straits Times Group Editor Abdul Kadir Jasin and Mohd Noor Mutalib. Another witness, Ahmad Nazri, said in a deposition that he held the majority share of 80 percent in Realmild, although 70 percent of the shares were actually in trust for Mahathir.

The companies others ran included Faber Group Bhd, a member of the UEM Group, now involved in integrated facilities management and property solutions sectors; KUB Malaysia Bhd. A holding company dealing in information, communications & technology, property, engineering & construction and food related industries.

The companies have been involved a wide variety of activities including media, property development, construction, toll roads, hospital equipment, logistics and distribution, cellular telephony and other businesses. What they had in common was that most of them benefited from government contracts doled out by the Barisan Nasional, the ruling coalition that has controlled Malaysia since its inception as a country. The other thing they had in common was that at some point most of them were mismanaged into financial trouble of one kind or another and had to be bailed out or bought out by the government.

Realmild unloaded Malaysian Resources Corporation Bhd onto the Employee Provident Fund in late 2005 as part settlement for an outstanding Rm500 million loan. Putera Capital Bhd, is threatened with bankruptcy. It formerly owned the Putra World Trade Center, Umno's headquarters, which rents out office space to businesses. UEM Builders Bhd, an offshoot of United Engineers Malaysia (UEM), along with UEM World Bhd, was dumped onto Khazanah Nasional, the investment holding arm of the government and the government's strategic investment vehicle.

walla 14 October 2010 at 13:39  


Khazanah Nasional now also owns PLUS, which held the tollway contract for the national north-south highway, as well as Pharmaniaga, a former UEM subsidiary dealing in hospital supply and other services. Court documents show that MAS, then the state-owned flag carrier, was taken over and privatized by Tajudin Ramli only to lose an estimated RM8 billion (US$2.77 billion at current exchange rate), with a major part of that being funneled into a Frankfurt, Germany cargo logistics company whose directors were closely connected to Tajudin.

According to the website Malaysia Today, Tajudin's lawyers revealed that Tajudin had only been a front man for Umno and that Umno "not only has to protect him from prosecution but that they also had to ensure that the government bought back the shares at the same price that they were sold to him although the shares were only worth a portion of the real value."

Other depositions made available in recent weeks have listed a long series of documents detailing misdoings in UEM/Renong, once headed by Halim Saad, which has long been accused of looting the government treasury through vastly overpriced construction contracts. Halim told the press in September that he had left the UEM/Renong board in 2001, saying authorities wanted Kazanah to take it over "to prevent a systemic risk to the banking system in Malaysia and to enable a sustained restructuring of the group."

UEM itself is still at it. The government-linked company was given the contract to build a second bridge from the mainland to the northern city of Penang at a price estimated in 2007 at Rm2.7 billion. It has since climbed to RM4.3 billion without figuring in a variety of ancillary costs including compensation for fishermen and project development costs of RM285 million, with the total now nearing RM5 billion.

Other documents show how completely the country's press was in the thrall of UMNO. Media Prima Bhd, a listed company, apparently took over the ownership from Realmild of TV3, 8TV, ntv7 and TV9 as well as 90 percent of the equity in The New Straits Times Press (Malaysia) Bhd, which publishes three national newspapers; the New Straits Times, Berita Harian and Harian Metro. It also owns three radio networks, Fly FM, Hot FM and One FM. Other cross media interests of Media Prima include content creation; event and talent management.

It also owns outdoor advertising companies Big Tree Outdoor Sdn Bhd, UPD Sdn Bhd, Right Channel Sdn Bhd, Kurnia Outdoor Sdn Bhd and Jupiter Outdoor Network Sdn Bhd. It is online through a digital communications and broadcasting subsidiary, Alt Media, with the Lifestyle Portal and the newly launched TonTon, a cutting-edge video portal with HD-ready quality viewing experience that offers the individualism of customized content and interactivity of social networking.

The companies:
Faber Group Bhd
KUB Malaysia Bhd
Malaysian Resources Corp. Bhd
Media Prima Bhd
New Straits Times Press (M) Bhd
Putera Capital Bhd
UEM Builders Bhd
UEM World Bhd
Utusan Melayu (M) Bhd (partly owned by Syed Mokhtar Albukhary, another Mahathir crony and one of Malaysia's 10 richest men according to the Forbes List
Renong Bhd
Realmild Sdn Bhd
Mahkota Technologies (Also a partnership with Syed Mokhtar Al Bukhary
Malaysian Airlines
Malaysian Helicopter Service
Temasek Padu Sdh Bhd
Sabah Shipyard
Labuan Shipyard

Anonymous,  14 October 2010 at 14:28  

try exchanging the name of TS Syed Mukhtar to Chan Ah Kau or Anandavellu..

Sure they are there because of their own hardwork.

So what is TS Mukhtar has shareholding in a lot of companies?

He bought them with his own money.

HE doesn't have controlling shares in GLCs.

Anonymous,  14 October 2010 at 14:32  

You said that Syed Mokthar is worth 1.8 billion. I assume that is his PERSONAL worth. You said Syed Mokthar has debts amounting to 26 billion. Are these his PERSONAL debts or combined debts of his PUBLIC listed companies? I hope you will provide me with a clarification. Thank You.

Anonymous,  14 October 2010 at 14:34  

nak tergelak bila aku baca apa OneMalaysian tulis:

"By the way, in my book, the most successful businessman is Nasir Razak, who contrary to popular belief, succeeded without any help from his big brother. More Malays should take him as their model, not this crony-in-chief called Syed Mokhtar. He not only robs Malays of opportunities but also shows what cronyism is doing to our country. The wonder is why he is still able to carry on as he does."

HAHAHAHAHA... let it be known that NAZIR RAZAK was elected as CEO by the BOD specifically because of his Brother.. Najib was the DPM at that time... an CIMB BOD comrpised of people who take orders from the MOF.

Apa cerita beb?

Anonymous,  14 October 2010 at 15:34  


I thought you've a degree in econ. Surely you know what is meant by "net worth". When Forbes publishes the billionaires list, its net worth thats being mentioned.

If his net worth is RM5.58billion (US$1.8B) then he has total assets worth RM31.58billion, intangibles not counted. Then his aggregated loans of RM26.0billion makes sense ie. a gearing of about 0.83 - normal. And he won't borrow from just one or two banks. If one bank lent him RM6b, then its the bank's problem for flouting BAFIA, not SM's. If it goes under, the BoD should be prosecuted by BN/SC/etc.

Also he did not borrow just yesterday. That RM26b had been accumulated over a good number of years, so if theres gonna be a blow up, it would have happened already laaa. Like somebody said earlier, most are ringfenced etc. so the chance of it blowing up is being overblown it seems.

If its "the way its tendered" being the problem, then I'd rather have SM gets it then some rentseekers who would just give away the projects/business for paltry sums which they would finish off (joli katak) in no time. At least SM gives away some of the profits for Masjids etc.

Tajuddin Ramli had a different problem with MAS and Celcom which has something to do with "economic downturn", "competitivenes", "cross-subsidies" and "excesses". Even BA had been bailed out so many times. Many US airlines had gone out of business in 1998 and more recently in 2008-2009.

One more thing, where SM build Masjids, TR brought in Pavarotti etc. You know very well which is the more "afdal"!

Oh, is it time already to hang another successful Malay billionaire to dry?

Anonymous,  24 October 2010 at 14:29  

Sorry for my bad english. Thank you so much for your good post. Your post helped me in my college assignment, If you can provide me more details please email me.

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