A Night with Mila & Alley Cat

I had to attend a family function in Ipoh yesterday.

It was to celebrate the 5th Anniversary of our corporate achievement.

David Arumugam of Alley Cat was with us.

And so was Mila (Nursyarmila Jirin)

Mila was the winner of Akademi Fantasia 5

She is much more beautiful in person.

Happy New Year 2012 to everyone!
Tonight we are celebrating again (over some recent achievements)

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Congrats to Naim Cendera

Naim Cendera puts up a one page advert at The Star and NST today.

I like to take this opportunity to congratulate Naim's staff for their success.

Just like to ponder the statements in the advert:

THANK YOU!
(1) For Making Us The Largest Bumiputera Contractor in Malaysia.
(2) For Completing Almost RM4.4 Billion Worth of Work

(3) For Completing Every Project On Time Or Ahead of Schedule, and

(4) For Your Dedication To Our Vision, And Your Commitment To Achieving Our Goals

Just a few comments:

Statement (1): I'm not sure Naim is the Largest Bumi Contractor in Malaysia ... I'm not sure how they measure it but I think it would be more appropriate to say - One of the Largest Bumi Contractor in Malaysia.

Statement (2): For completing RM4.4 Billion Worth of Work - why not say - RM4.4 Billion Project Value or Contract Sum. Anyway, it's just relative terms and I am certain they had done that sum over the last 10 years.

Statement (3): For Completing Every Project On Time Or Ahead of Schedule -- I am more inclined to accept that Naim had completed most of their project within the Contract Period, which includes any Extension of Time granted; but certainly, from my experience with them and my knowledge of the a few of the projects they had undertaken, some of the projects were badly delayed and certainly not on time neither on schedule. These projects were completed ultimately; after a few extension of time were granted.

The fourth statement is a good gesture and a show of appreciation of the employees contribution. However, many of the competent and qualified employees together with some senior management personnel had quit; most of whom had told me that it was largely due to the lack of appreciation. I think the senior management; oh, sorry,It should be the boss, should re-look at his senior management team and their corporate cultures, more so, the culture of truthful appreciation, not just a statement for the advert to reflect the core values and shared values of the management and staff.

Power Brand 2011 Award

27th March 2011

Congratulations to PAG for receiving the 5th Malaysian Power Brand 2011 Award for Outstanding Achievement of Best Quality Products and Services in Civil and Building Construction Category.

Mr. YK Lai, Chairman & Managing Director of PAG receiving the Award from YB Datuk Liew Vui Keong, Deputy Minister in the Prime Minister's Department, Malaysia.

Presentation of the Certificate of Achievement by Prof. Dr. Denver Tan, Organizing Chairman & President of Asia Entrepreneur Alliance.

That's me ... ugly man has no face!!!

PAG was the specialist contractor for the Design and Build/Turnkey Project of the Integrated Transport Terminal, Bandar Tasik Selatan and the Elevated Highway connecting Jalan Hang Tuah-Jalan Dewan Bahasa Dan Pustaka, Kuala Lumpur. Currently, PAG is also involved in the Penang Second Bridge Project as the specialist sub-contractor for China Harbour & Engineering Construction.

The New Paradoxical Era of Consultancy

Government appoints consultant to resolve AirAsia airport tax arrears

KUALA LUMPUR, June 24 – The government has appointed a consultant to resolve the issue of airport tax arrears of RM65 million owed by AirAsia Bhd to Malaysia Airports Holdings Bhd (MAHB).

Prime Minister Datuk Seri Najib Tun Razak said the government has studied the matter and it would be used as a basis to resolve the problem.

“There is still a gap between AirAsia and MAHB and we have appointed a consultant to find the middle path ... it has been studied now by the government and we will use that as a basis to resolve the problem between them.”

“It will be seen as an objective, we are not going to take side ... we will decide on the basis of principle,” he said at a press conference after officiating at The National Baitulmal Convention 2009 at Masjid Wilayah Persekutuan here today.

– Bernama

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Malaysia is now moving towards the paradoxical age of Consultancy in negotiations and project management. MAHB-AirAsia airport taxes, duly paid by passengers, and not paid by AirAsia to MAHB has become a problem for the government. PKFZ was an idea, a great idea,, to have the world-class Integrated Shipping Hub to shore our dream of V2020 and ended up with a possible $12 billion problem. CIQ is the most advance Custom and Immigration Terminal designed with world-class efficiency and is now used as a security checkpoint.

In Charles Handy's words, it's the age of Paradox as Capitalism has not proved to be as flexible as it was supposed to be, and government have not been as wise or far seeing as it should have been.

In the Age of Paradox, it is about so many things that seems to contain their own contradictions and so many good intentions to have unintended consequences, and so many formulas for success to carry a sting in their tails.

Paradox has indeed almost become the cliche of our times. It is the dilemma of knowing more while getting more confused, and the more we increase our mental and technical knowledge capacities, the more we observed the government becoming incapacitated.

After all, life is a struggle for many and a puzzle for most.

UEM news - big news?

My good friend Dato' S has written an article today here about UEM.

He has also posted an Initiatory Pleadings of an impending suit filed by the Qatar Public Works Organization (Qatar PWO) against UEM Berhad (who is the main contractor) who is sued jointly with Parsons International Ltd (the first defendant who is the design consulting engineer) and Qatar Insurance Company (the third defendant).

The suit filed against UEM Bhd concerns the construction of the Qatar Highways - Salwa International Road - 1st Phase. It was alleged that part of the road had collapse due to rainfall and the plaintiff (Qatar PWO) attributed it to an error relating to the paving design and UEM was alleged to have made mistakes in the execution resulting in the road failures.

Qatar PWO is seeking QR878,318,972.06 (which is approx. RM850 million). The conversion rate is RM0.9676 = 1 Riyal.



(Picture taken from anotherbrickinwall.blogspot.com)

That must be a very bad experience for UEM.

Sometime ago, UEM Builders Bhd paraded at their official website and proudly pronounced the success stories on this project.

"We are proud for being involved in the expansion and upgrading of the Salwa International Highway Phase 1 project which connects Doha to the South-Western town of Abu Samra on the Qatar-Saudi Arabian border.

"The 81km, dual four-lane highway with 10 major interchanges, 3 camel crossing underpasses and 22 Qatar Petroleum culverts was completed in December 2008.

“It is our singular hope that this success will open the door to many more opportunities, especially in the Middle-East, as we have proven our capability, credibility coupled with quality delivery,” Dato’ Ridza Abdoh, Managing Director of UEM Builders said.

It is interesting to note that on 18th August 2008 Bernama news reported that UEM World Bhd has received approval from its shareholders for its restructuring exercise, which would eventually see it being de-listed while its property unit UEM Land listed in mid-November.

UEM Land took over the listed status of UEM World on the Main Board of Bursa Malaysia Securities Bhd.

UEM Builders Bhd was also taken private together with OPUS Group, PHARMANIAGA and CEMENT INDUSTRIES OF MALAYSIA. (read the news of the MGO here)

I hope UEM have a way to solve this mega suit.

Hopefully, the Qatar government is gracious enough to extend some kind of goodwill to our Malaysian government and forego this suit.

Maybe Najib can help persuade the Qatar govt to drop this case and settle it amicably.

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Sultan Brunei conned by Indonesians

Brunei ruler conned out of RM6.8b: Police

JAKARTA, May 31 - The Brunei Sultan has lost 20 billion rupiah (RM6.8 billion) to a group of Indonesian con men posing as officials from Indonesia’s presidential palace, according to police here.

Commissioner General Susno Duadji, the chief of the National Police criminal investigation unit, put an end to days of speculation by confirming over the weekend that the victim was indeed Sultan Hassanal Bolkiah.

Gen Susno added at the media briefing that the con men did not speak directly to Sultan Bolkiah.

“They talked only with the Sultan’s adjutant, who was called from Jakarta,” he said.

Source: The Malaysian Insider

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How is it that His Highness can be conned? He is not a naive businessman. The Indonesians must have pose a carrot that is too hard not to believe it will be true.

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Time dotcom: Declared Dysfunctional

Time Dotcom Bhd (TdC) CEO Afzal Abdul Rahim's Official Declaration:

TdC is DYSFUNCTIONAL; TdC is disconnected from the market.

TdC needs: a Total Overhaul, a Paradigm Shift, a new Business Plan, a set of Turnaround Initiatives and Divisional Initiative,s and some Quick Wins!

Afzal admitted that these are vital because TdC has too many leakages in operating expenses. Its spending for network is high, it is too dependent on vendors’ solution, it lacks direction, has no clarity and, most importantly, its product offerings are too complex.

“This company has structural issues and people work in silos. We have to be conscious that we are dysfunctional as an organisation and we have to do basic cleaning up as we can get simple things wrong.

“If we do not change everything in the peripheral, we cannot achieve the target and that is why a complete overhaul is needed,’’ chief executive officer Afzal Abdul Rahim told StarBiz in an interview.

He said the structural problems came about because “people were too busy organising functions around personalities and this resulted in them building silos and empires which led to no synchronisation.”

“There is clearly a lack of direction and clarity and everyone only thought of his own work. (TdC has been looking inwards) and that is why TdC is disconnected from the market. We did not know what the market wanted,’’ Afzal said.

Afzal came on board in October last year and that is what he discovered after more than three months at the helm.

He has a three-year mandate from Khazanah Nasional Bhd to turn TdC around.

TdC has been suffering from internal hemorrhage; it has been losing money for more than a decade.

Turnaround? How are they doing it?

From observations, they are:

(1) Removing existing executives using VSS and parking new executives into the old job role (85% of the executives were replaced - 23 out of 27);

(2) Cost Reduction Initiatives: (i)Cutting operating expenditures from RM100 mil to RM40 mil. & moving office from it's Jalan Tun Razak leased-premises to its own premise at Glenmarie in Shah Alam.;

(3) Flattening the organizational hierarchy to enhance visibility;

(4) De-coupling from the United Engineers (M) Bhd (UEM) group and Time Engineering Bhd.

Will it work? Theoretically yes; empirically ... behemoth task and onerous. Turnaround is not just simply: putting on the right man on the bus and taking out the wrong people off; it is not just about having a good business plan and flattening the steep hierarchy. It is about a strong leadership, a strategic business action plan which are goal-centric with fixed time frame, a high performance team supporting and driving change, and a dynamic cashflow system which are driving the revenue growth & collections with a team of researchers empowered to innovatively drive cost-reduction without sacrificing or trade-off with elements that are contributing positively to the organizational processes. Most of all, the change and impact which provides positive contributions towards organizational goals and objectives are sustainable and becomes the new culture within the organizational system.

What about Rewards? But you can't have or sustain a high performance team without a strategic reward system: the rewards must be result-based, rewarding the "Lembu"and not just the "Sapi", and it motivates - the people on the job and continually drives their performances from good to great.

Strong leadership is not just about a good-talking leader or a friendly person; he leads by example and he has the vision and foresight of the businesses and he has the ability to identify good performers; most of all, he and his executives have the right attitude and are of strong character. However, he can do no better if his team are incompetent or inexperience : qualifications aren't just enough; these executives must possess on-the-job experiences, experiences in complexity and chaos management, experiences of similar failures from without and within, and excellent skills in Project Management, Financial Management, strategic Business Management and Risk Managemen; and most of all, they have the "Right Attitude" and with business-centric mentality.

Critical Failure Factors: mediocrity and ketuanan mentality, class & color differentiations, lack of focus or unsustainable focus, a new crony system replacing the old, talks well and talks often about performance instead of driving & ensuring performance are acted upon and measured on, good at meetings as well as spending too much time in meetings talking about performance and not spending time with the people on the job to manage the products and services to the customers/clients on time, with the right quality and at a competitive price, as well as managing the effective cost of the products and services.

I can only wish Afzal: "Best of Luck" and "May God Bless You and Your Team".

Ananda Krishnan vs Lippo drags-in Mahathir's son

A grand alliance between two of South-east Asia's wealthiest tycoons, Malaysian T. Ananda Krishnan and Indonesian James Riady, has collapsed into an acrimonious face-off that could lock their businesses in a bitter legal battle.

In Indonesia, a joint-venture into a pay-TV business has turned hostile. Allegations of embezzlement and fraud, including charges that unauthorised payments were made to an unnamed family member of former Malaysian premier Mahathir Mohamad, have been levelled.

'This is truly a mess, a very big one,' said a chief executive of a Malaysian bank which has dealings with the two groups and is closely tracking the situation. 'Both sides made wrong moves and the whole issue boils down to the loss of face. There are not going to be any winners here,' he added.

In August last year, a police report was lodged at the Jakarta police headquarters against one Astro employee seconded to PTDV for alleged embezzlement by a director of a Lippo-affiliated company called PT Ayunda Prima Mitra. The director allegedly made payments to a family member of former Malaysian premier Mahathir.

The allegations contained in the police report, which Astro insists are frivolous, prompted the Malaysian company to immediately fly Mr Sean Dent, who was seconded as chief financial officer in PTDV, out of Jakarta. Mr Dent continues to perform his duties for the pay-TV company from outside Indonesia.

Malaysian police say that the Indonesian police then requested the Interpol division in Malaysia to arrange for them to interview Mr Ralph Marshall, Mr Ananda's chief corporate lieutenant, over the allegations of embezzlement at PT Direct Vision.

Read the news here

Proton's needs, NEP's Dilemma

Proton Holdings Bhd needs a foreign partnership to be more competitive in the automotive market, said Minister of International Trade and Industry Tan Sri Muhyiddin Yassin.

"I still believe that this (foreign partnership) is an idea which Proton has to explore.

"I don't think that we need to be too nationalistic in the sense of supporting Proton without taking into consideration what the business is all about," Muhyiddin said.

Source: 'Proton needs foreign partner'

OMG! This is going to be hurtful! This strikes the very ego of the central system - it is the ketuanan thing; Proton is part of the core concept and any loss of control will crack the central ego; it will also diminish the Bumi percentum and directly affects the aspiration of achieving the artificial illusory 30%. They themselves keep doing things that impair and ultimately diminish the 30% and then later blames every others for their inability to get there. How could they do this? What if, other than Proton, there are in reality more of such organs that are also facing such competitive dilemmas and may have also to consider the dilutions and diminution of control? Wouldn't that defeat the fundamental concepts?

Proton: Agustarded or Bagustarded?

In December 2004, Proton advisor and former Prime Minister Mahathir and the then CEO of Proton Tengku Mahaleel decided to buy MV Agusta for RM367.6 million, which represents a 57.75% stake: thus a controlling stake of an Italian motorcycle manufacturer.

Mahathir had always wanted to proved to the Mat Sallehs that we Malaysian Boleh: we are a small developing country who has big heart and big minds; Malaysia may be a small country but it can conquer the capitalist world.

Tengku Mahaleel said at that time that the purchase, similar with its acquisition of Lotus Group International, gave the group the engineering capability to develop a full range of transport products from motorcycles and watercraft to light aircraft and military vehicles.

However, in July 2005 Tengku Mahaleel was ousted as the CEO of Proton.

Khazanah Nasional Bhd, the government investment agency, which owns 42.7% of Proton, through the Proton board, exercised their most important prerogative as an owner – the right to hire and fire; and out goes Tengku Mahaleel.

On November 30, 2005, Proton Chairman Mohammed Azlan Hashim announced the appointment of Perodua Auto Corp executive director Syed Zainal Abidin Syed Mohd Tahir, then 43, as its new managing director.

In December 2005, Proton Holdings announced that it has sold its 57.7% stake in MV Agusta SpA for one Euro (RM4.48) to Gevi SpA, an unknown, smallish investment holding company.

Gevi was to assume Agusta’s “restructured frozen debts”, which amounted to 106.9mil euro (RM478mil) which was the supposedly the reason why Proton decided to sell Agusta.

Mahaleel and Proton advisor Mahathir strongly criticized the Agusta sale and demanded information on why it went ahead, saying their credibility is at stake over the deal.

Proton Chairman Mohammed Azlan Hashim claimed that Agusta failed to deliver the synergies expected.

"It took five months to come to that point and we hired external consultants and lawyers and, looked at the possibility of restructuring Agusta but found out it was not a solution," said Azlan Hashim.

The group exco at that time, which was formed to take over the daily running of Proton after former CEO Tengku Mahaleel left, decided that a detailed review was needed and Credit Suisse First Boston (CSFB), along with an Italian law firm, were hired to advise Proton on how to move forward.

CSFB had then done its review of Agusta and what it found was “scary” as it found that the existing business model of Agusta was neither operationally nor financially sustainable.

Proton was told by its newly appointed adviser CSFB that for Agusta to continue surviving, it needed 40 million euros in the near term and up to 66 million euros until Agusta is able to support itself. “This is clearly beyond Proton's means,'' said Azlan.

Another problem the Proton board had to deal with was how to turn around Agusta operationally as the company had lost 120 million euros in the last six years.

Azlan said the only option then left for Proton to extricate itself from Agusta without spending more cash was to sell its stake in Agusta.

The Proton board then asked CSFB to find a buyer before the end of December 2005 so that Proton would not have to pay the 16mil euros debt payment and pour in further funds into Agusta.

Mahathir was extremely upset with Agusta's sales: "The sale of MV Agusta for one euro was based on poor understanding of the automotive industry," Tun Dr Mahathir Mohamad said.

“I cannot understand their decision to sell," Mahathir said.

"But if you know the automotive industry, you would know that motorcycle companies have a lot of engineering knowledge. That is why Honda has a 50cc motorcycle. Today you know that Honda is associated with some of the best cars in the world. So, it is possible for motorcycle companies to contribute towards the development of motor cars.”

Dr Mahathir, who is the advisor of Proton, said the decision had led to the Proton board losing the RM500 million paid for the stake in MV Agusta.

Prime Minister Abdullah Ahmad Badawi defended Proton's decision to sell Agusta at one Euro. "THE E1 (RM4.48) price tag on MV Agusta E Motors SpA was not a result of an error in management," Abdullah said.

Abdullah said that the sale to GEVI SpA from Italy was necessary to allow Proton Holdings Bhd to concentrate on its core business of car manufacture and sale.

The decision to sell Agusta to GEVI SpA was considered necessary because GEVI SpA had good financial standing, allowing it to take over Agusta together with Proton’s debts for the sum of E1. "The decision on the sale by the Proton management was the best choice in the interests of company operations and business," Abdullah said.

Gevi SpA subsequently sold part of its stakes to BMW. BMW Motorrad acquired Husqvarna Motorcycles, which is owned by Agusta, for 90 million euro (RM450 million).

Now we are informed that Harley Davidson Inc has agreed to purchase MV Agusta for US$109 million (RM352 million).

That's a total of RM802 million! Proton sold Agusta for RM4.48 and Gevi sold Agusta for RM802 million! That's truly Malaysia Boleh - the suckered!

Anyway, we must learn to appreciate the Proton board of directors; they had done a good and exceptional job!

And this is the questions Mahathir posed today in his blog:

"Do we need a royal commission to look into this or should the ACA investigate this matter particularly the role of Credit Suisse who was paid a huge consultancy fee to advise Proton's management who executed it.

"Or maybe we do not mind losing RM800 million because we have so much money."

(Source: chedet.com/)

Mahaleel said that the purchase of Agusta’s Husqvarna-brand and its factory by German luxury automobile giant BMW last month was proof that the ‘old’ Proton management had made the right choice.

Mahaleel said nothing had been done to increase the value of Agusta since Proton sold its stake as there were "no sales increase, no new products nor new patents".

“Put it simply, it was worse off when it was sold to BMW and yet they paid 93 million euros... (the present Proton management) on the other hand, we sold the whole thing - three factories, three brands - for just one euro,” lamented Mahaleel today.

(Source: Malaysiakini)

Cheers to Khazanah under the leadership of Azman Mokhtar; cheers to Proton's Mohd Azlan Hashim and Syed Zainal; Cheers to Malaysia's PM Pak Lah; cheers to Malaysians.

We are the world, we are the people, we are a nation of intelligent CEOs!


Further References:

TheStar: Proton chief tells all in controversial Agusta sales

New MD for loss-making Proton

NST: PM: Sale of Agusta the best choice

Malaysiakini: PM: Why we sold MV Agusta for RM5

Malaysiakini: Proton lifts the lid on MV Agusta purchase

Malaysiakini: Agusta sale: 'Proton's loss, BMW's gain'

BMW Motorrad Acquires Husqvarna Motorcycles

www.mvagusta.net

How about Lotus for £1

TheStar: Proton divest impaired asset

Grand Saga is an associate company of KPSB

Mentri Besar Tan Sri Khalid Ibrahim has now only discovered that the Selangor State government indeed is a shareholder in Grand Saga, the highway concessionaire involved in the dispute at Bandar Mahkota Cheras. Selangor owned State corporation Kumpulan Perangsang Selangor Bhd owns 20% of Taliworks Corp Bhd who holds a 55% stake in Cerah Sama Sdn Bhd that wholly owns Grand Saga Sdn Bhd. As such, Taliworks Corp has the majority control over Grand Saga and KPSB is a substantial shareholder of Taliworks.

The question now is who owns the balance of the 80% of Taliworks Corp?

As reported in The Edge Daily on 17th July 2007, before the acquisition of a controlling stake in Grand Saga by Taliworks, Peak Synergy Sdn Bhd owns 44.45% of Grand Saga, Europlex Consortium Sdn Bhd (33.33%) and Cerah Sama Sdn Bhd (22.22%). Datuk Lim Ah Bak, Ahmad Ishak Haron and Minhat Mion were listed as substantial shareholders of the three holding companies.

The Lim family is the controlling shareholder of Taliworks. Datuk Lim Chee Meng owns a direct and indirect stake of 52.62% in Taliworks. Lim Chee Meng is the son of the late Datuk Lim Ah Bak.

As listed in the 2006 Annual Report, the single largest shareholder of Taliworks is Datuk Lim Chee Meng who holds 224,700,000 shares (direct and indirect); Datuk Hj Abdul Karim held 6,450,000 shares (direct and indirect); Datuk Wan Puteh holds 520,000 and Datuk Hj Mohd Sinon holds 225,000.

In July 2007, Taliworks acquired a 55% stake in Cerah Sama Sdn Bhd for RM107.8mil. Cerah Sama owns Grand Saga Sdn Bhd, which operates the 11.5km Cheras-Kajang highway under a concession that expires in 2027. Taliworks bought the controlling stake in Cerah Sama from Bunga Abadi Sdn Bhd, a company in which Lim has substantial shareholding.

According to Taliworks corporate information at www.taliworks.com.my Dato' Haji Abd. Karim Bin Munisar is their chairman and the CEO is Tuan Haji Abdul Rahman bin Hj. Siraj; Datuk Lim Chee Meng is its executive director who is also the director of Central Industrial Corporation Berhad.

The registered office of Taliworks as published in their website is Level 17, Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, 50490 Kuala Lumpur. But according to their Annual Report 2006 the registered office is 10th Floor, Wisma Havela Thakardas, No. 1, Jalan Tiong Nam, Off Jalan Raja Laut, 50350 Kuala Lumpur; and their principal place of business is No. 28, Jalan Wan Kadir 1, Taman Tun Dr. Ismail, 60000 Kuala Lumpur.

In 1987, Taliworks was awarded the first water supply privatisation contract in Malaysia with the privatisation of the Operations and Maintenance of the 545 million litres per day (mld) nominal capacity Sungai Semenyih Water Treatment Works in Selangor.

Since then, Taliworks has expanded its core business in the privatised water supply sector to include the operation and maintenance of the Sungai Selangor Water Treatment Works Phase 1 (SSP1), which supplies to large parts of Selangor and Kuala Lumpur, and the water supply and distribution system in Langkawi, Kedah.

There are two main companies in Taliworks, namely Sungai Harmoni Sdn Bhd and Taliworks (Langkawi) Sdn Bhd, which hold long term contracts for the privatised water supply operations above.

Taliworks currently manages a total of 6 water treatment plants with a combined design capacity of 1,039.5 mld that serve more than 2 million people in Kuala Lumpur, Selangor and Langkawi, Kedah.

Investment Initiatives & Kautim Initiatives

INVESTMENT promotion policies by non-Barisan Nasional (BN) state governments must not run against federal government rules and laws or policies which are adopted at federal level, International Trade and Industry Minister Tan Sri Muhyiddin Yassin warned yesterday.

"I have directed Miti Secretary-General to inform the state government officials that these initiatives should be parallel in policy guidelines," he said

Muhyiddin said the federal government will continue to support the five non-Barisan Nasional state governments as long as they adhere to a pro-business policy requirement as practiced by BN government.

"We have informed foreign investors that there is no change in investment policies."

"If these states want to outdo the other BN states like Johor or Pahang with better incentives to attract investments, well and good. We hope to see healthy competition with the purpose of bringing business and investments to the country," he added.

Muhyiddin warned, however, that moves by any of these states to have "upmanship" investor-friendly policies to outdo the federal government will hurt Malaysia.

For example, any decision to open up the government procurement policy, with tenders opened to foreigners to come in, will only send the wrong signals since it is one of the contentious issues under the ongoing free trade agreement.

Source: Non-Barisan states warned over investment policies

The warning issued by the ministry of trade clearly brings to light two main challenges: firstly, the BN government is seen to suffer from a phobia for the probable fact that the PR States may be able to draw more investors than the other BN controlled states on the assumption that PR States officials may be more business friendly and the PR State govt may change or modify its state business policies which makes them more business friendly, less red-tapes, better and far efficient and effective management and having visionary political leadership; secondly, it would most likely cost less for investors as PR promised to be open, transparent and with zero under-table and over-the-table cost. Investors may discover that they do not need special political connections, need not give bonus shares, and need not pay upfront special contributions, fees, subscriptions which are usually part and parcel of the culture and tradition.

Observing the statement made, investors may still have to pass through various channels before they could get the necessary approvals; and they would still need to prepare some grease and oil the system at the federal level which include the journey through Mititi, Mimmi, Missi and Muyinini.

The only consolation is that the upfront down-payment, subscriptions, commissions, fees, contributions and all other ancillaries may be lesser amount as they may not need to subscribe and pay for State gatekeepers.

In conclusion, Kautim and Kopi are still necessary; it's part and parcel of the culture and tradition; it's in the NEP bloodstream and the ideological system and the little napoleons cannot survive without it due to the high cost of living long established.

MCA ex-councillors wants to handle federal funds

MCA minister for Housing and Local Government Datuk Ong Ka Chuan said Barisan Nasional councillors who had to quit in Pakatan Rakyat-led states should be made to control the distribution of funds provided by federal Government for new villages and even residential areas.

This is to ensure that there is a mechanism for them to contribute positively to help spent the Federal funds; otherwise they would be sitting and idling around with nothing to do.

How true! MCA ex-councillors are so used to spending federal monies and they will feel vegetative and will suffer strokes if they do not have monies to handle. We should also hear of Umno and MIC ex-councillors who would be demanding that federal funds be also directed to their pockets for them to handle. It is important for the nation to continue to feed these parasites. We citizens have to accept the fact that we have elected them and allowed them to be parasitic for decades, and now they are dumped they will become vegetative and suffer. Morally, we now owe them a duty to rehabilitate them by continuing to allow them to suck, at least until the coffers are dry.

Meanwhile, TNB also said its profit fell by 32% due to higher costs of coal and higher payments to IPPs.

TNB made a net profit of RM1.06 billion in the quarter to February 29, 2008 versus RM1.55 billion in the same period last year.

The citizens also have to help TNB to increase its profit. TNB would be thankful if we allow the tariffs to be increased by 100% or if possible by 300%. This way it will proof that Che Khalib will be the greatest CEO in the world. It should be okay because the citizen should still be alive though half-dead.

TNB warned that its future profits would be crimped by rising fuel charges and unless the government step in to inflate the tariff charges they should not blame Che Khalib for its dismal financial results.

We should also be hearing from MAS CEO Idris Jala soon.

Tony Fernandes: Zero Political Connection???

Tony Fernandes, AirAsia CEO said: "We were just 3 guys from the music industry with not a lot of money, no experience, no political connections - zero. No one can say that no one gets equal opportunities. I did. I am living proof that we can.

Tony, I admired your success. You are living proof of what a person , with the passion and dedication can achieve. But, please do not lie and say you have started acquiring AirAsia from nothing, without political connection. The government would not give the Air Line Biz to you if you are just Tony Fernandes. You have Pahamin, and I don't have to elaborate further. Mahathir, the PM, and Daim, the Finance Minister, both gave him the opportunity. No Tom, Dick or Harry, with just passion and ambition will get the licence to operate an airline, what more, the one that belongs to DRB-Hicom.

Three of you did not have lots of money; I agreed, but you can't operate that Airline without multi-millions, and that's money beyond the means of the ordinary folks.

Oh, BTW, no one can say no one gets equal opportunities... to some extent, depends of what kind of opportunities and the "right connection". Ask an ordinary folk to get a PKK Class A licence and a DBT/Turnkey project from EPU; try lah, and see if you can get, with ZERO political connection, and No Money... I didn't live in Timbaktu; I'm Malaysian and have been in the industry long enough to understand the truth and reality; and all my bosses understand reality... that's why they get projects.

Maya maju the project by $250 million

oops! The New Istana is now $650 million instead of $400 million, and will still be upped!

Samy dismissed claim that it will reach $1 billion.

The additional cost is incurred for extra quarters for palace workers, security system and underground car park.

But this project is design and built (PWD BL/T Contract).

How is it that these components were not included in the design at the tendering stage and had become extras? Was someone negligent?

The fundamental objective of design-built-turnkey-lump sum contract is to transfer all the risks to the contractor who is expected to price-in all the expectations in accordance with the Need Statement. So, it's either the Need Statement which is issued by JKR had not considered adequately the need for workers quarters and car parks, or that the contractor's design team had failed to take into consideration the needs as stated. Either way, negligent is the conclusion.

Proton Turnaround or TurnDown?

The news of the government's decision that Proton do not need a foreign partner caused Proton's share price to drop 18.6% yesterday.

The reason given by Khazanah Holding Bhd, Proton's major shareholder and the investment arm of the government was because Proton's sales and export had improved.

On Proton's turnaround, Second Finance Minister Tan Sri Nor Mohamed Yakcop said there is no specific timeframe given to the management of Proton Holdings Bhd to turn the national carmaker around. It must mean, Proton could take their time and the government is willing to "subsidise" their losses to keep it afloat.

"There is a business turnaround plan. They have not yet submitted to us a comprehensive programme about their plan to turn the company around but there is one," Nor Mohamed Yakcop said.

"Give Proton a chance" Prime Minister Pak Lah said. Proton is doing well and should be given a second chance to turn around like Malaysia Airlines, said Datuk Seri Abdullah Ahmad Badawi.

The Prime Minister said the question of a bailout did not arise as the management of the national car-maker had proven that its turnaround programmes were successful.

“Proton is doing very well today. It has secured agreements to export its cars to China, India, Indonesia and some countries in the Middle East and it is coming out with new models.

“I think Proton has been successful and the Government has asked that Proton should have its turnaround similar to MAS’.

Doesn't the two statement contradicts? PM said Proton turnaround had been successful and Proton is doing well. Nor Mohamed Yakcop said there is no time frame for the management of Proton to turn around. If Nor Mohamed said "there is no time frame for Proton to turnaround" it must mean they haven't yet turnaround back to health; they are still in the red. If PM's word is to be understood, it must mean Proton had already put its financial position back to profitability and had erased it's cumulative losses.

So, which is which? Isn't it confusing? Do we have problem with our English? Is turning around means back to health, that is, recovered the losses and the balance sheet is now back to profitability? Or, is it profitable for the first quarter of the fiscal year but still in the "red" in the balance sheet? The PM is the Finance Minister and Nor Mohamed is the 2nd Finance Minister; but both don't speak the same financial language... but they are both finance ministers???

DiGi $600 mil in trouble?

DiGi.com spent RM655 mil to buy a 3G spectrum and now that investment looks like in trouble.

Energy, Water and Communication Minister Lim Keng Yaik said "There is no guarantee that DiGi will get the 3G spectrum which belongs to Time dotCom because the licence is non-transferable."

DiGi's share price immediately drop 2.4% today, no thanks to Keng Yaik.

The problem with DiGi is that they do not pay homage to the minister. They need to PR a bit lah. The minister is going to retire soon and old man needs a bit of face and ampu...

Microsoft Conquer China or was Conquered

How Microsoft Conquered China

Or is it the other way around?

by David Kirkpatrick
Fortune 500
July 23, 2007
Vol 156, No.2

Abstract:

No other Fortune 500 CEO gets quite the same treatment in China. While most would count themselves lucky to talk with one China's top leaders, Bill Gates gets to meet with 4-members of the Politburo.

When Chinese Premier Hu Jintao visited Microsoft campus in Redmond, Washington, and was feted at a dinner at Gates home, Hu told his host: "You are a friend to the Chinese people and I am a friend of Microsoft. Every morning I go to my office and use your software."

Microsoft bumbled for years after entering China in 1992. It finally figured out that almost none of the basic precepts that led to its success in the US and Europe made sense in China.

It took Microsoft 15 years and billions of dollars of lost revenue to learn how to do business in China. "We were a naive American company," concedes Gates in an interview.

15 years ago, Microsoft sent a couple of sales managers into China. Their mission? To sell software. "It was a classic model - hang out a shingle and say, 'Microsoft: Open for business," Craig Mundie, the top Microsoft executive who now guides its China strategy said.

But the model failed, not because of brand acceptance but just that no one is paying - counterfeiting.

"In China we didn't have problem with market share. The issue is how do we translate that into revenue," said Ya-Qin Zhang.

Microsoft fought bitterly to protect its intellectual property. It sued but lost regularly in Court. Microsoft's strategy failed miserably and in a 5 years period, they had changed 5 country manager.

In 1999, Gates sent Mundie to figure out why Microsoft was so reviled. On the trip he had an epiphany: "Our business is just broken in China."

Mundie concluded that the company was assigning executives too junior and that selling per se was overemphasized. "Our business practices and our engagement did not reflect the importance of having a collaborative approach with the government."

Microsoft executives were concerned with China's weak IP-enforcement laws. However, Gates argued that while it was terrible that people in China pirated so much softwares, if they were going to pirate anybody's software Gates certainly preferred it to be Microsoft. Bill Gates openly concedes that tolerating piracy turned out to be Microsoft's best long-term strategy. That's why Windows is used on an estimated 90% of China's 120 million PCs.

"It is easier for our software to compete with Linux when there's piracy than when there's not," Gates says.

Microsoft's China strategy is clearly paying off. More than 24 million PCs will be sold this year, adding to the 120 million already in place.

"We have already found a win-win way of doing things together that will generate a substantial part of Microsoft's growth in the next decade," declared Gates.

(go get a copy of the Fortune 500 Vol. 156. It's worth it, just for this piece.)

Maju Holding & Bright Focus

Bright Focus Sdn Bhd, a subsidiary of Maju Holdings Sdn Bhd, the flagship company of Tan Sri Abu Sahid, will be raising more than RM200mil from the sale of new shares in an Initial Public Offering (IPO).

Bright Focus is the controlling shareholder of Konsortium Lapangan Terjaya Sdn Bhd (KLT) which manage the concession to built and manage the RM1.4bil “Dedicated Highway” that links Kuala Lumpur, Putrajaya and KL International Airport.

NST BizTimes reported that the other concession holders are Anson Perdana Bhd (30%), Hi-Summit Construction Sdn Bhd (19%).

NST's information is out-dated. Anson Perdana Bhd had sold off it's 30% stake to Abu Sahid sometime in 2003. Anson Perdana has now been delisted from the KLCI and is technically bankrupt. Anson Perdana was formerly controlled by Soo Tian Chai, who also controls Mancon Bhd, another PLC that is also technically bankrupt. Soo Tian Chai was once the king-gambler of the stockmarket and at his peak, he used to control more than ten public-listed corporations. Mancon Bhd has mountains of debts that ran into the billions and Anson Perdana has debt in excess of RM500mil.

Originally, KLT was awarded by the Works Ministry (Samy Vellu) to the consortium consisting of Anson Perdana-Seal Incorporated-Hi-Summit-Tabung Haji. Tabung Haji sold their stakes in KLT to Abu Sahid and Seal Incorporated (which was also controlled by Soo Tian Chai) was sold to Lee Aik Chong who owns Selayang Mall. Lee Aik Chong has lost Seal Incorporated and is now a bankrupt. Hi-Summit was owned by Datuk Suhaimi Ibrahim (a former crony of Anwar Ibrahim) and DJ Dave (my good buddy) who were "forced" to sell off their stakes to Maju Holding. Now, KLT is fully controlled by Abu Sahid.

KLT is under construction and the main contractor is Leighton Contractors (M) Sdn Bhd, an Australian construction firm.

Abu Sahid who also controls Perwaja Steel perviously had now sold off 51% of Perwaja to Kinsteel owned by Tan Sri Henry Pheng Yin Huah. During Mahathir's era, Abu Sahid always get what he wants and he had been awarded billions of dollars of projects. Currently, he has lesser connection with the new regime but of late, he is seen to re-established his disconnectivity and will be given some great projects in the coming months.

Peremba bond downgraded

PECD may have defaulted on bond after rating lowered

March 10 2007

Construction company PECD Bhd (Peremba) may have defaulted on its RM200 million bond after its credit rating was downgraded by a rating agency yesterday.

However, the default would not happen if its bondholders allowed the company a reprieve. "The downward rating revision would constitute an event of default under the terms of the issue, in the absence of a waiver by bondholders," Malaysian Rating Corp Bhd (MARC) said in a statement. MARC did not say if PECD had got a waiver.

PECD officials could not be reached for comment. A default means that the bond would have to be repaid immediately. The bonds, had an initial rating of "A". They were issued in June 2005. MARC downgraded PECD's RM200 million bonds by a notch to "BBB" from "A-". This is due to the company's deteriorating credit profile. PECD made a net loss of RM130.3 million for the year to December 31, 2006. The loss was due to slower progress of ongoing projects, reversal of profits from certain completed projects due to cost overruns and non-recognition of profits from the Sudan Marine Terminal project, among others.

However, it is expected that its new shareholders in the company, UMNO, will help to restore stability to its financial position. On March 1, Datuk Dr Sheikh Awab Sheikh Abod, the current chief executive of Affin Investment Bank Bhd, and one Shakir Jamil Fisal bought 75 million shares, or 25 per cent, of PECD. The duo bought the shares from existing shareholders, namely Tan Sri Mohd Razali Abdul Rahman, Abu Bakar Mohd Nor and Datuk Hassan Abas. It is learned that the two were UMNO nominees.