Malaysia: The Unstoppable Brain Drain

This is a tongue-in-cheek scenario created by Tay Tian Yan. He claims these are true stories. It was published by mysinchew.com on 16 November 2009.

Titled "Made in Malaysia",this article makes one great reading. The implication,however, are of grave concern.

Story No: 1:

The Successful Operation:

A Malaysian politician had heart surgery in Singapore. The operation was successful. During his recuperation, the politician wanted to thank his three skillful doctors, including an anesthesiologist.

He said: “Thanks to Singaporean doctors...”
“I'm sorry, sir. I'm from Malaysia,” interrupted one doctor.
“Me too.”
“Me as well.”

Story No. 2:

The Overseas Township Planners

A Malaysian company wanted to develop a new township abroad, it entrusted the project to a Singapore multinational company.

The Singapore company sent a team of seven people including the chief executive officer, chief architect and chief financial officer.

The first meeting went off smoothly. They relaxed and chatted. The Malaysian company's director said: “Durians from my hometown Kuala Pilah, Seremban taste the best.I'll treat you all next time when you come.”

“Really? What area in Kuala Pilah? I'm from Kuala Pilah, too!” said the Singapore company's chief executive officer.

Next, one by one, the other six from the Singapore team revealed their identities.

“I'm from Malacca.”
“I'm from Kuala Kangsar, Perak.”
“I grew up in Segamat.”
“My hometown is...”

And all of them were actually “made in Malaysia”.

There are countless similar stories around us.

And there is always another story behind each story.

Some of them were rejected by domestic universities while others were rejected by the
Public Services Department which denied them government scholarships in spite of their excellent results.

They couldn't get it even with 10 As while others got only 10 Bs.As leaving might be better than staying, they just went to a different world after crossing the Causeway.

There is a deep feeling for every story. According to Malaysian Employers Federation (MEF) statistics, about 785,000 Malaysians are currently working abroad and 44 per cent of them are working in Singapore while the rest are working in other countries, including Hong Kong, China,Australia, Britain and the United States.

And two-thirds of them are professionals.

Sadly, at the same time, most of the two million guest workers here in Malaysia are from neighboring Indonesia, Bangladesh, Myanmar, India and Vietnam.

They are engaged in work which does not require a high educational background but just a little bit of brains. Low skill, low knowledge and, of course, low wages.

Malaysia has become a country that exports brains while importing labourers,resulting in a serious deficit in the knowledge trade.

The government started to lure our talent abroad in 2000 by offering a variety of incentives, including tax concessions and other conditions.

It has been nearly 10 years but only 770 people responded, with an average of 80 talents returning a year. The 770 are just a small number of the total
number of people working abroad.

However, many of this small group of people still choose to leave again.

While many young people are not able to realize their dreams here and thus,they are packing and preparing to pursue their dreams in unfamiliar countries.

And they said that Malaysia wants to become a high-income country.

Malaysia: 4th Largest Bank Set to emerge

It is almost certain. Hong Leong Bank is on course to take over EON Bank thus creating the 4th largest Malaysian bank. Expected assets: RM110.5 billion

Hong Leong Bank has received Bank Negara Malaysia’s (BNM) permission to begin negotiations with “certain shareholders” of EON Capital to acquire an interest. EON Capital, which is listed, wholly owns EON Bank.
KUALA LUMPUR, Dec 22 — A merger between Hong Leong Bank and EON Bank to create Malaysia’s fourth largest bank with assets of RM110.5 billion could be in the offing.

Late last week, Hong Leong Bank told the stock exchange that it had received Bank Negara Malaysia’s (BNM) permission to begin negotiations with “certain shareholders” of EON Capital to acquire an interest. EON Capital, which is listed, wholly owns EON Bank.

EON Capital’s largest shareholders are businessman Rin Kei Mei and Sarawak billionaire Tiong Hiew Khiing, who collectively hold 33.2 per cent of the financial firm.

Other shareholders include Hong Kong-based investment fund Primus Pacific Partners (20.2 per cent), the Employees Provident Fund (12.1 per cent) and state investment agency Khazanah Nasional (10 per cent).

In a note on Friday, BNP Paribas analyst Ng Wee Siang said that both Rin and Tiong were willing to sell their shares at RM8.20 apiece.

His prediction was denied by both men yesterday, but they stopped short of saying they would not consider selling at all.

There is no certainty, however, that a deal will be struck as this isn’t the first time Hong Leong Bank has tried for EON Capital. A previous attempt several years ago had stalled over pricing so it could happen again as tycoon Quek Leng Chan, the controlling shareholder of Hong Leong, isn’t known to pay more than what he considers a fair price.

Even so, the move towards merger reflects the central bank’s desire to winnow the Malaysian banking sector to a few large banks, the better to withstand increased foreign competition starting next year. Currently, Malaysia has eight local banks.

It could also reflect Quek’s increased appetite for acquisitions. He recently announced that he’d amassed an 8 per cent interest in Bank of East Asia, while his Hong Leong group has begun making aggressive moves into China.

His push for merger is likely to be supported by both Khazanah and the Employees Provident Fund, which are likely to side with the central bank’s stand.

For its part, Primus isn’t likely to sell out to Quek. The investment fund had bought into EON Capital at a jaw-dropping RM9.55 apiece, a price that Quek would probably consider astronomical.

Instead, Primus might back Quek’s buyout of Rin and Tiong. It is widely known that Ng Wing Fai, Primus’ managing director, does not see eye to eye with the 70-something Rin on issues of capital management.

Still, the fact that Quek is interested in EON Capital drove the firm’s shares higher yesterday. The stock closed 4.6 per cent higher at RM6.88 apiece. — Business Times Singapore

EON Capital’s largest shareholders are businessman Rin Kei Mei and Sarawak billionaire Tiong Hiew Khiing, who collectively hold 33.2 per cent of the financial firm.

Other shareholders include Hong Kong-based investment fund Primus Pacific Partners (20.2 per cent), the Employees Provident Fund (12.1 per cent) and state investment agency Khazanah Nasional (10 per cent).

In a note on Friday, BNP Paribas analyst Ng Wee Siang said that both Rin and Tiong were willing to sell their shares at RM8.20 apiece.

His prediction was denied by both men yesterday, but they stopped short of saying they would not consider selling at all.

There is no certainty, however, that a deal will be struck as this isn’t the first time Hong Leong Bank has tried for EON Capital. A previous attempt several years ago had stalled over pricing so it could happen again as tycoon Quek Leng Chan, the controlling shareholder of Hong Leong, isn’t known to pay more than what he considers a fair price.

Even so, the move towards merger reflects the central bank’s desire to winnow the Malaysian banking sector to a few large banks, the better to withstand increased foreign competition starting next year. Currently, Malaysia has eight local banks.

It could also reflect Quek’s increased appetite for acquisitions. He recently announced that he’d amassed an 8 per cent interest in Bank of East Asia, while his Hong Leong group has begun making aggressive moves into China.

His push for merger is likely to be supported by both Khazanah and the Employees Provident Fund, which are likely to side with the central bank’s stand.

For its part, Primus isn’t likely to sell out to Quek. The investment fund had bought into EON Capital at a jaw-dropping RM9.55 apiece, a price that Quek would probably consider astronomical.

Instead, Primus might back Quek’s buyout of Rin and Tiong. It is widely known that Ng Wing Fai, Primus’ managing director, does not see eye to eye with the 70-something Rin on issues of capital management.

So, it looks like Hong Leong Bank has come a long way since the days when it was only a puny finance company!

One Confused and Mixed Bag:Bahkuteh,Malt and Halal

Malaysia is supposed to be a middle-of-the road Islamic nation. It presents itself to the world that it is a moderate Islamic nation and is proud of its multi-cultural social backdrop.

However, Malaysia is a strange nation. It is at once fundamental and moderate in its Islamic beliefs. The older generation that holds the reins of powers over religion on behalf of the various sultans at the state level and the Agung at the federal level,from time to time, seems to go off tangent in many of their interpretations and give shocking 'fatwas' or religious dictates instead. The younger generation of Muslims are less orthodox.


It was an issue when malt drinks came into the market some time back. When the advertisers touted it as 'halal beer', there was a hue and cry. Now, an international hotel chef has concocted his own brand of bahkuteh which is halal. The authorities are in arms again saying any name can be used for the dish but not 'bahkuteh halal'.

Should we just laugh out loud or give off a chuckle?

Malaysia: Take Two-2 Missing Aircraft Engines!

Good things normally come in pairs. No, not in the case when two aircraft engines goes missing and end up as sold in Argentina or in West Asia.

To lose one engine is an accident; to lose two is sheer carelessness or designed thievery. Now the score is a loss of RM100 million to uniformed thieves.

The New Straits Times today (22 December 2009) has reported that the RMAF had in fact lost two F-5E engines from its Butterworth base between June and November 2007 and only realised it in May the following year.

As usual, it is the 'rap of the wrist' for the offenders or if investigations are being carried out by the police, they will operate in 'snail or turtle' mode.


So what is new in Bolehland?

Genting Singapore: New Year, New Management Team

The announcements has been made. Some will leave; new ones will take over the helm of Genting Singapore.

Resorts World Sentosa (RWS) chief executive Tan Hee Teck will now take on the additional roles of Genting president and chief operating officer on January 1,2010.

At the same time, Lee Shi Ruh—now vice-president for finance at Genting Malaysia — will skip over the Causeway to become the firm’s CFO.

Lee has been with the group since 1994, and has 20 years of financial, accounting and auditing experience.

The Genting board of directors said Tan Hee Teck’s track record in the development of the RWS integrated resort and his other corporate experience would put him “in good stead to assume leadership of the company and the group”.

Genting Malaysia is South-east Asia’s largest gaming firm, but it also has large interests in oil palm plantations, property development and the power sector.

Its Singapore unit is the largest casino operator in Britain, and its casino at RWS is seen as one of the group’s key earnings drivers in the future.

The entire IR has the capacity to host up to 35,000 people, including one of Asia’s largest column-free ballrooms that seats 7,300 guests.

Other attractions include the world’s largest marine life park and six hotels within a Las Vegas-style entertainment complex.

Aside from the casino and convention facilities, RWS will also house the Universal Studios theme park when it opens its doors for business next year.

The theme park — the first of its kind in South-east Asia — is expected to be one of the IR’s biggest draws.

Details of RWS’ five other zones — Sci-Fi City, Ancient Egypt, The Lost World, New York and Hollywood — will be announced later.

The resort is on track for its soft opening within the first quarter of next year.

Everyone is watching the new RWS now that the competitor, Marina Bay Sands Hotel will only be able to open in April 2010.

Will the shares of Genting 'up and away'? Does Genting have future plans to set up casino resorts as well in Japan, Thailand, India, Vietnam, South Korea and Taiwan?

I am watching.

MRCB: The Way Forward

Malaysian Resources Corp has not submitted a formal bid to buy or help develop thousands of acres of federal land in the Klang Valley. This was made known at the EGM held on 21 December 2009 to get shareholders' nod on its 1 for 2 rights issue at RM1.12 per shares.

It has, however, made an informal approach to buy or help develop thousands of acres of federal land in the Klang Valley.[Does it not give you some kind of hunch or clue?]

CEO Mohamed Razeek Hussain admitted this as no formal bid has been submitted.

"We have expressed our interest. It's up to the government to whom it wants to allocate the land," Razeek said in response to a poser whether MRCB had made a bid to the government for prime land in two areas.

The government recently announced plans to sell or co-develop its prized landbank in Cheras, Kuala Lumpur and Sungai Buloh in Selangor.

During Budget 2010, it singled out a 100 acres in Jalan Cochrane near Maluri in Cheras (market rate of RM100-RM150 per sq ft) and 2,000 acres at Rubber Research Institute of Malaysia in Sungai Buloh.

The latter land is sited near an industry park in Kota Damansara, with an estimated market rate of RM30 per sq ft.

Razeek said MRCB is keen on increasing its landbank to turn it into mixed development projects.

He assured shareholders that it was unlikely that MRCB will make any cash call in the next five years after its proposed renounceable one-for-two rights issue.

Shareholders yesterday gave their nod on the exercise that will raise gross proceeds of between RM508 million and RM541 million.

"(With money from the rights issue,) we will have sufficient fund to participate in future projects especially in the construction sector.

He added that the company's performance should be better this year and beyond than in 2008 on the back of various ongoing and new projects.

Meanwhile, the rights issue at RM1.12 a share will raise MRCB's share capital to between 1.36 billion and 1.44 billion from the present 907.62 million shares.

Proceeds will be used to fund expansion into environmental engineering and infrastructure business, acquisition of prime land for property development, as well as for MRCB's 51 per cent equity investment in Nu Sentral Sdn Bhd.

The latter company is a joint venture with Pelaburan Hartanah Bhd set up to acquire and manage a seven-storey retail mall called Nu Sentral at KL Sentral.

MRCB said its gearing level will ease to as low as 1.2 times from 2.5 times now after the completion of the rights issue.

As at end-September this year, it has total borrowings of RM1.6 billion.

The rights issue should be completed before the end of January 2010.

So MRCB shareholders-prepare to fork out some money for the rights so that you can average down as well as partake of any capitalization gains that may come out of that, perhaps in a pre-Chinese New Year run!

Malaysia: Debt Collection and Its Ethics

This is interesting. We know about the harsh tactics employed by debt collectors to get debtors to pay up. It can range from incessant trauma creating phone calls to compel repayment or verbal abuse including physical handling of debtors to force them to hand over a vehicle for re-posssession.

Apparently, there are procedures to be followed in collecting debts; and ethics too!

According to a Deputy Minister in the Finance Ministry, Chor Chee Heung debt collectors appointed by financial institutions cannot use violence and harass loan takers.

He said this was included in the debt collection fair practice guideline and should be followed by the appointed debt collectors.

He said,"Financial institutions can use the service of debt collectors but they must follow the regulations in the guideline approved by Bank Negara Malaysia.”

Other than forbidding violence and harassment, debt collectors should be ethical and were not allowed to call loan takers more than three times weekly. This is truly laughable!

The guidelines have been introduced by Bank Negara Malaysia to strengthen the protection and professionalism structure of debt collection.”

Chor said loan takers unhappy with the action of debt collectors appointed could complain to the financial institutions.

“As for those unhappy with the financial institutions, they can report the matter to Bank Negara Malaysia,” he added.