February 10, 2012

The Potential Khazanah Imbroglio

The divestment of 5 non-core companies to qualified bumiputera comapanies through open tender is again becoming a hornet's nest for the current Barisan Nasional Government.

Another Brewing Controversy

For the Opposition members, this is again opportune fodder besides the Gemas Cowgate scandal,to drive the ruling party into a corner before the 13 GE.

While there is no or little controversy on PNB divesting 5 of its non-core companies,this is not the same with Khazanah Malaysia Berhad (Khazanah) which is actually 'considered' more of a national sovereign fund.

This time the voices of dissent is coming from both with in the folds of UMNO as well amongst others outside the corridors of power.

So, how is the government going to side-step from the gathering storm that is brewing in the horizon? Will this move distance themselves more from middle Malaysia and the potential one-third voting bank?

Let us look at the raison de'tat of Khazanah Nasional Berhad. This was taken from its website.

Khazanah Nasional is the investment holding arm of the Government of Malaysia and is empowered as the Government's strategic investor in new industries and markets. As trustees to the nation's commercial assets, our main objective is to promote economic growth and make strategic investments on behalf of the Government which would contribute towards nation building.

Khazanah is also tasked to nurture the development of selected strategic industries in Malaysia with the aim of pursuing the nation?s long-term economic interests.

Khazanah has investments in over 50 major companies, both in Malaysia and abroad, and our companies are involved in a broad spectrum of industries.

So, on the outset, a couple of questions need answering.

What are non-core assets? And what are non-core assets of Khazanah as an investment arm as its primary aim is to bring back maximum returns to the national coffers for the Malaysian people. Does 'non-core' means non-monopolies?

As UMNO's Bung Radin Mokhtar retorted-if Syed Mokhtar Bukhari or his likes are again to be given some of these divested companies,after amassing so many government monopolies from rice, ports, sugar,the post office to the national car, then something is really amiss with the policy makers!

Loss to Unit Holders?

For now, it would be interesting to see how the tender is to be conducted,the rasionale for Khazanah to divest national wealth to a few bumiputra companies as well as the effect of the loss of potential dividend to Amanah Saham unit holders from PNB's divestment.

Leather Sex

Sheer sucker leather, a pretty face and a beautiful body; and dynamite, you have a wondrous sight to behold!

All The time in the World

Do we have all the time in the world?

An open-ended question.

For many, time is just squandered away while for others, there is just too little time to do what they really want to do.

Remember the movie, " The Bucket List", starring Jack Nicholson and Morgan Freeman?

So, let us listen to Satchmo and the wonderful song, "We have all the time in the World".

The lyrics are:

We have all the time in the world
Time enough for life to unfold
All the precious things love has in store
We have all the love in the world
If that's all we have
You will find we need nothing more
Every step of the way will find us

With the cares of the world far behind us
We have all the time in the world
Just for love nothing more nothing less only love
Every step of the way will find us
With the cares of the world far behind us
We have all the time in the world
Just for love nothing more nothing less only love

Friday-Frequently a Bear Day

Fridays are mostly soft trading days on most bourses.Bursa KL is no exception.

Why is it so?

The market gurus will tell you that it is because things can happen during the weekend that may further affect the way shares will go on the following trading week beginning Mondays. Some may be economic while others could be political developments.So, punters do not come into the market on Fridays.

If overseas markets do not perform well particularly Wall Street; that will set the tone for Mondays and possibly into Tuesdays.

As such Friday are mostly bargain hunters' days where stocks which are big gainers will have their gains pared away.Also, sellers do not want to hold shares over the week-end.

Looking at two stocks-Genting Berhad and Digi, it can be seen that Genting Bhd has been falling because of the lack of development on the casino license in Florida. Moving up lately to RM11.30 apparently was just a flash in the pan. So, weak sellers dumped it down by 16 sen to RM10.30 to possibly take new positions the following week.

Digi.Com:Steady Buying at RM4.13

As for Digi, support continues to be there as the market awaits for the payout of the special dividends that will accrue to them in the first quarter of 2012. It lost a sen to RM4.13 which is normal. Moreover, a 6.5% single tier dividend will go ex on 17 February this forthcoming week.

Genting Bhd: Weak Holders and Lack of News

February 08, 2012

Affray at KFC Outlet

This speaks volume about the kind of employees one can inadvertently hire due to labour shortages in the ever-growing fast food industry.

The saying that the customer is always right has now a barrage of a right, left, hook and assault and battery tomoi stlye.

This is definitely a KFC outlet but the signage on the wall appears rather strange. However, the aprons worn by some of its workers definitely bore the KFC logo.

This is most damaging to KFC coming on the heel of the other much touted video of a KFC kitchen staff gleefully rubbing un-fried marinated chicken parts onto the sole of his sneakers!

Another PR job soon from the KFC people?

Bad for Business

February 07, 2012

Digi: Raging Buyers

Another Benchmarking Exercise?


As Axiata faces a testy situation in India due to some licence cancellation, Digi is not affected per se though it's parent,Telenor had similar issues.

So, this morning, from the get go start of trading Digi shares were chased up to RM4.32 before settling down to trade range-bound at RM4.20-RM4.25.

So, what do you think is behind this hormonal discharge to get into the counter. A delayed January effect?

If the next Rubicon is RM4.40, that target is close at hand and should be surpassed if the Greek problem gets solved very soon.

Let us wait to see whether there is enough threshold volume today to rationalise the upward price push.

Digi ended 3 sen up at RM4.14 on more than 100,000 lots.

February 06, 2012

Malaysia: Rating Our Prime Ministers

The much talk about acronym-RAHMAN has many predicting the demise of the UMNO leadership in the coming 13th General Elections. Will Najib be the Puyi for the Perikatan Government of yore? Or can we dump these naysayers into the dustbin of time as well as those who would have us believe that the end of the world will be in 2012 according to the Mayan calendar-likely through a solar flare?

Speculation and gossiping continue to be the pastime of most Malaysians. It is good for it provides fodder for conversation and keeps us all senior citizens from the deadly grasp of Alzheimer's. Lat me just take a second look at our Prime Ministers both from the archives of the past and the current leaders still alive and kicking.

An Aristocratic PM

The much loved Tunku was a adorable leader who along with his counterparts from the Chinese and Indian community brought independence to this land. His was a time of rejoicing where the give and take attitude was the raison de' tat of the political framework of governance.I guess there were never issues that could not have been discussed on a win-win-win-resolution. Tunku, also brought Singapore, Sabah and Sabah into a bigger federation in 1963 with the Bruneians staying out.In 1965, political realities dictated a decision for the pull-out of Singapore. Though sad, it was a live and let live resolution. The black chapter of May 13 saw the eventual exit of Tunku.

Hardworking PM


The happy days of early Independence was soon to end. The next PM,Tun Abdul Razak went out on a limb for development. Based on comparative advantage and the abundance of land, the economy started to gain traction with land development, opening of rubber land and the introduction of oil palm into the agrarian landscape. Industry in E&E started coming into Malaysia through Penang and Selangor. Industrial estates sprouted in all states with the creation of state development corporations. Big government stared to come into being. During his time, the New Economic Policy (NEP)started to sprout shoots and amidst the relative calm after the storm, the fabric of Malaysian society, torn asunder by May 13, started taking on a 'tolerance mood' as the period of NEP will stop in 2000. Unfortunately, this hard working Prime Minister was to die of leukemia in London on 15 January 1976.

Reluctant PM

Bearing heartfelt news, Hussein Onn grieved on national television to inform the citizens of the passing on of his copper mate,Tun Abdul Razak. Hussein was just too unprepared for the job of the numero uno of the country. A dedicated lawyer who had worked at the Ministry of Defence, he could not see too much of the forest. When he launched the 3rd Malaysia Plan, its main focus (your guess is right!) was on defence. A big bulk of tax payers money went to defence. More need not be said. He never wanted the job and so he left after one term.

Seize the Day PM


Next to step in Dr Mahathir. This is one thinking man. The world was his oyster. 'Think big' was his dictum. During this time, Margaret Thatcher was a good PM model to follow. It was also the time of privatisation of government services and assets just like what Thatcher did in London. The NEP took a new turn. With so little years left before 2000, the 30% target has to be quickened in terms of implementation ans achievement. A plethora of government NEP agencies and government backed companies were created to take the best pick of the privatised projects be it highways, medical services,ports, LRTs and such. There were many success stories-some planned but mostly spillover effects. The PLUS highway with its attendant property development is one such example. Tun did not get his way with all the laws, civil service and money on his side. The recession of 1997 took its toll of almost all the bumiputera entrepreneurs he created. The only thing that stayed was the Amanah Saham Scheme. His dabble with the international tin market failed as the world learned not to be taken as gullible fools after the Guthrie dawn raid. The Americans dumped their tin stockpile and Ipoh is no longer the tin capital of the world to this day. On the political front, his era was marred by the infamous Operation Lalang when most of his opposition party members were incarcerated in Kamunting Prison under the ISA. After 22 years at the helm, he left. Dr. Mahathir has left his imprints of the social and political landscape of the nation, some good and many which continue to be controversial. His time saw a worsening of ethnic relations and bailouts.

Gentleman PM

Nice gentleman Badawi took the baton next.There is only a few things good about Badawi. He had the greatest victory in the poll he lead, decimating the Opposition especially Anwar Ibrahim's Keadilan Party to only one representative in Parliament. Knowing the financial situation of the nation's money coffers, he cut on waste. Cutting out the Crooked Bridge to Singapore was his greatest feat making 'angry birds' of Mahathir and many other parties. His time was characterised by middle of the road Islam known as Islam Hadhari and corridor developments. Just like Hussein Onn took out Harun Idirs and put him in prison, Badawi was daring enough to remove Wanita UMNO's head women out from Cabinet. That takes guts! The internet flourished in Malaysia under Badawi. However, he became the victim of the main-stream media and back door machinations among UMNO's powers-to-be forced his prematured exit after the 2008 general elections where Barisan ceded its two third majority in Parliament for the first time in history.

Implaccable PM

Najib came in as the new PM of Malaysia. Just like Badawi, he was also at a loss. Most of the monopoly businesses had already been privatise or re-packaged. He had to position himself as a different type of leader. He knew the importance of the new youth joining the ranks of the voting public. He knew about the pull of the internet such as blogs, the alternative news media on the internet as well as social network such as Facebook and Twitter.So, he started courting the young impressionable voters with slogans galore. The mother of all slogan has to be Satu Malaysia and Salam Satu Malaysia became the clarion call of Najib. To give flesh to his concept, he started all kind of things from 1Menu Malaysia, KR1M (Kedai 1 Malaysia), BR1M (Bantuan Rakyat Satu Malaysia), SR1M (Sara 1 Malaysia)as well as RM100 for all school children and book coupons for those from Form 5 to college students.Najib apparently has a lot of 'undesirable baggage' and so he has a credibility problem. Many of those UMNO, particularly the old war horses and warlords have proven difficult for him to dislodge and they still claim they are winnable candidates for the 13th GE. The current fiascoes also seem difficult to find ready solutions as the date for the election is nigh.

So, looking back, how do I rate the PMs?

Tunku was good during his time. It was a long time from 1957 to 1971. There was not much development nor need for any. It was the time for institution building and putting the house in order.The people were happy to be independent and all's well as if it was a fairy tale.He did not believe he could not control the country that caused the flare up of May 13 in 1969. He was a Prime Minister that was booted out before his time.

Tun Abdul Razak similarly was a devoted leader that played like an unfinished melody. Quiet and determined, he set the foundation block for good governance and economic development. He is best remembered for the Green Book.

Hussein Onn did not break new pathways. His only achievement was putting Harun Idis in jail.

Mahathir Mohammed was the national builder PM. Did plenty of good things, did too many controversial things. Succeeded where it mattered in the short term but seen through a longer time frame, some such as the MAS privatisation, are unraveling.

Badawi should be considered a middle of the road PM who allowed things to happen for the greater good of all Malaysians. Short stay and 'sleeper', not seen as effective but a good chap.

Najib is perceived as an intelligent man but forced to carry 'burdens' from the past. His sloganeering and mix bags of acronyms for economic growth blueprints continue to confuse and many just do not understand the mumbo jumbo of it all. He will be judged by the number of seats he will win in the next General Elections,

Mahathir likes to do things out of convention while Hussein Onn likes the familiar.On balance, I like Tunku and Badawi. They have less 'dark sides.