Rayani hopes to fly again

KUALA LUMPUR: Rayani Air will appeal to Malaysia’s airline authorities for a “second chance” after their Air Service Licence (ASL) and Air Operator’s Certificate were revoked.

Its owner Ravi Alagendrran said they were in talks with a new investor to revive the airline.

Ravi’s plea comes after the Malaysian Aviation Commission (Mavcom) and Department of Civil Aviation (DCA) revoked the airline’s licence and certificate, effective yesterday.

Mavcom said it found Rayani Air had breached the conditions of its licence and that it also lacked the financial and managerial capacity to continue operating as an airline.

“The revocations came at the peak of our negotiations with investors for the acquisition of equity in Rayani Air, after realising that the present owners and their management are no longer fit to revive the airline,” Ravi said in a state­­­ment yesterday.

He said the “qualified and strong management team” of its new investors would revive and manage the airline “much better than us”.

Mavcom said the airline lost its licence after it breached its conditions.

“As a consequence, Rayani Air can no longer operate as a commercial airline with effect from today,” it said.

On May 25, Mavcom issued a show-cause letter to Rayani Air that submitted its representation in writing on the last day of the stipulated time.

“After reviewing Rayani Air’s written representation, Mavcom decided to revoke its ASL, as Rayani Air did not provide a satisfactory response to the show cause letter dated May 25, 2016,” it said.

The commission also said Rayani Air was still responsible for refunding its customers.

“Customers who have purchased tickets with Rayani Air but were not able go on their journey may lodge a complaint with the company and seek a refund.

“In the event consumers are not able to obtain their refunds, consumers can file a civil suit for those refunds,” it said.

The Star reported that Rayani Air’s air operator’s certificate (AOC) was suspended for three months on April 11 after the airline temporarily halted operations following a strike by its pilots.

It was reported that Rayani Air’s operations were suspended for allegedly breaching the Civil Aviation Regulations 1966.

Factories suffer worst dip in over three years

KUALA LUMPUR, June 1 — Manufacturing output declined in the last quarter at a rate not seen since 2013, raising questions about the sector's ability to keep the economy growing at targeted rates.

According to the latest release of Nikkei Malaysia's Manufacturing Purchasing Managers Index (PMI), conditions in the already-struggling sector deteriorated further in the current quarter, with sharp declines in both orders and production.

“Production at Malaysian goods producers contracted for the fourteenth successive month in May. In fact, the rate of decline was the sharpest in over three-and-a-half years,” Nikkei Malaysia said.

“Similarly, new orders decreased for the fifteenth month running, with the latest decline the fastest since December last year.”

The PMI remained stagnant at 47.2 last month, extending the five-year low registered in April. Any number greater than 50 in the index represents an improvement in the sector.

Factories have also scaled back their purchases of raw material for 12 consecutive months, prompted by rising prices as well as declining orders.

Nikkei Malaysia said both the weak ringgit and high sales tax made it more expensive for manufacturers to operate.

“Moreover, the rate of inflation was the sharpest since February. As a result, manufacturers raised their charges to the greatest extent since December last year,” it added.

Despite the decline in output and orders, however, factories increased their hiring in May, although Nikkei Malaysia described the improvement as “slight”.

Malaysia is banking on exports to achieve its targeted gross domestic product growth of between 4 and 4.5 per cent this year, as high household debt and rising inflation weigh on consumer spending.

Household debt here has reached 89.1 per cent as a ratio of GDP or over RM1 trillion.

Slowing global demand also negated the export advantages of the weak ringgit, which is currently trading at 4.14 versus the US dollar.

Malaysia's trade balance fell to RM6.8 billion in the last quarter, down from RM11.4 billion in the final three months of 2015.

Mokhzani resigns from SapuraKencana

SapuraKencana Petroleum Bhd's vice chairman Datuk Mokhzani Mahathir has resigned, Malaysia's largest oil and gas services firm by market value said on Wednesday, citing "personal reasons".

Mokhzani, the second son of former Prime Minister Mahathir Mohamad, is one of the founders of SapuraKencana after merging his oil and gas services firmKencana Petroleum with SapuraCrest in 2012. – Reuters, March 4, 2015.

Globalisation and Malaysia’s legal profession

Business Circle produced by the Economic Transformation Programme: www.businesscircle.com.my

By Shahjanaz Datuk Kamaruddin

Like other professional groups in the services industry, the legal profession in Malaysia has had to adapt and reshape itself to keep up with changing global trends.

This is more so since the Legal Profession (Amendment) Act 2012 and the Legal Profession (Licensing of International Partnerships and Qualified Foreign Law Firms and Registration of Foreign Lawyers) Rules came into force in June 2014, permitting foreign law firms to apply to set up joint ventures with Malaysian firms or to practice in permitted areas specifically-related to Islamic finance.

In addition, foreign practitioners are permitted to fly-in-and fly out of Malaysia to render services for a period of up to 60 days in a calendar year. Notable also is that arbitration, offering an alternative form of dispute resolution in Malaysia, is now open to foreign lawyers.

But is the pace of liberalisation a bit too slow?

Malaysian Bar Council president Christopher Leong Not according to Christopher Leong (pic), president of the Malaysian Bar Council. In an interview after the Bar Council hosted the International Malaysia Law Conference last September, he defended the graduated manner in which the legal profession is being liberalised, arguing that the process has to be carefully managed in order to achieve the desired outcomes.

The changes introduced are, in his view, quite progressive and a step in the right direction. No jurisdiction in the world would allow a free-for-all market.

He conceded that liberalisation is inevitable and admitted that the majority of law firms have yet to feel the impact of the changes introduced since June 2014, as many have neither the interest nor the capacity to practise in the permitted areas. However this does not lessen the need for lawyers to prepare to seize opportunities beyond Malaysia’s shores.

The Bar Council takes the lead in promoting its members’ interests by taking measures to assist and prepare them to operate in a liberalised market, and to grow the legal services sector year-on-year in line with the government’s goal to enlarge the service industry’s contribution to the nation’s GDP to 65% by 2020.

The Bar Council aspires also to do its part to promote Malaysia as a premier business destination. After all as Leong pointed out: “A vibrant business environment needs the support of a vibrant legal profession.”

The IMLC provides the ideal platform for Bar Council members and other lawyers to share and exchange knowledge with delegates from around the globe. Lawyers are encouraged to assess their own potential to take on high yield work from foreign clients or even to spread their wings within the region or beyond.

“It is essential to awaken their realisation and widen their world view”, the Bar Council president elaborated.

At the IMLC the topic Global Trends in the Legal Profession: the Drivers and the Disruptors attracted considerable interest from among the 900 delegates present. Since the global financial crisis in 2008 and with regionalisation and globalisation, the delegates were told the “trade flow of goods, capital and know-how has shifted at unprecedented levels”. Moreover the Internet provides easy access to new markets, market information and customer demands.

It was further pointed out that regulators are becoming better resourced and assertive especially in advanced economies. In order to stay relevant and successful, law firms must build up their capacity to understand the potential extraterritorial impact of laws and navigate the regulatory maze.

Data privacy, anti-competition and anti-bribery are just a few examples of laws that have an impact beyond the borders of the countries where they were originally enacted.

The IMLC delegates were also informed of the recent trends in the United Kingdom where there has been a shift away from the law partnership model towards law businesses owned by listed companies, private equities, retailers and even local authorities. Large accounting firms are also beginning to offer legal services in fields related to their areas of expertise.

The legal profession around the world faces an unprecedented period of change, much of it caused by developments beyond its control and outside of the legal profession. Recognising this, Leong reiterated that the Bar Council has to ensure its members are not just legally competent, but also proficient in business and politics.

It is clear that the legal profession in Malaysia has to adapt to an increasingly globalised environment where gaining an understanding of what is happening beyond Malaysia’s shores would enhance the quality of its service levels.

With the right knowhow, law firms too can chase the money by following wherever the investors go. In a borderless world the opportunities are there to be explored.

20 richest M'sians: Mokhzani slides off list

Mokhzani Mahathir, son of former prime minister Dr Mahathir Mohamad, saw the biggest hole in his pocket as his net worth tumbled 42 percent or by about half-a-billion US dollars last year, according to the latest Forbes’ list of Malaysia’s 50 richest released today.

The big tumble takes him from 15th last year on the list (US$1.2 billion) to 26th this year (US$700 million). This represents the biggest net worth decline among the top 50 richest Malaysians over the past year, said Forbes.

Meanwhile, diversified businessman Syed Mokhtar Albukhary (left), the only Malay in the top 10, fell one spot to eighth this year as his net worth dipped by US$200 million to US$2.9 billion this year.

Hong Kong-based tycoon Robert Kuok remains Malaysia’s richest citizen as a number of Malaysia’s wealthiest see their net worth fall following the recent global oil price plunge.

Genting scion drops, too

According to an update of Forbes’ list of Malaysia’s 50 richest today, 91-year-old Kuok saw his net worth dip slightly by US$200 million (RM721.9 million) this year to US$11.3 billion compared to US$11.5 billion last year.

Retaining second place is Ananda Krishnan, whose net worth stands at US$9.7 billion. This represents a drastic fall from US$11.3 billion last year — a 14 percent dip.

Banking magnate Quek Leng Chan overtook gaming tycoon Lim Kok Thay this year to take third place, boasting a net worth of US$5.6 billion, though this is 12.5 percent lower than US$6.4 billion last year.

Similarly Lim of Genting fame saw his net worth tumble 15.3 percent over the past year to US$5.5 billion this year.

Read the full story at KiniBiz now.

 

1MDB sudah langsai hutang, kata Arul

 

Syarikat pelaburan strategik negara 1Malaysia Development Berhad (1MDB) mengesahkan sudah melangsaikan pinjaman RM2 bilion sepenuhnya kepada bank Malaysia, kata Arul Kanda.

Presiden dan Pengarah Eksekutif Kumpulan 1MDB itu mengesahkan laporan The Malaysian Insider pagi ini yang melaporkan pinjaman itu dilangsaikan sebelum tarikh akhir ditetapkan, mengikut terma perjanjian pinjaman.

“Dengan penyelesaian pinjaman ini, saya ingin menegaskan komitmen 1MDB menyelesaikan semua kewajipan hutang kami mengikut tarikh yang ditetapkan,” kata Arul dalam satu kenyataan hari ini. – 13 Februari, 2015.

To Boycott Greedy Traders Not An Instruction But An Intelligent Move By Consumers - Ismail Sabri

KUALA LUMPUR, Feb 4 (Bernama) -- Datuk Seri Ismail Sabri Yaakob said his statement to boycott greedy traders which had gone viral on social networking site since Monday, was not an instruction, but a wise move which should be taken by consumers.

The Minister of Agriculture and Agro-based Industry said every consumer must think and act smart as purchasing power was completely theirs and they are the voice of the majority in the course of trade between buyers and dealers.

"I have explained to my friends on Facebook that the responsibility lies in their hands because they are the majority while traders are a minority. How can the minority manipulate the majority? Of course it is not possible," he said in Dialogue aired on RTM live on TV1, Wednesday night.

The programme themed 'Jihad Against The Middleman' was hosted by Sayed Munawar Sayed Mustar.

Ismail Sabri said every agency under the ministry and together with the association of fishermen and farmers should also play their respective roles and cooperate in the fight against middlemen who had suppressed fishermen and farmers and reaped huge profits.

-- BERNAMA

Muhyiddin Wants Clear Roadmap For Creative Value Chain

From Jamaluddin Muhammad

BEIJING, Dec 2 (Bernama) -- Tan Sri Muhyiddin Yassin wanted all Malaysian public and private higher education institutions to set out a clear roadmap and commit rigorous effort towards ensuring the existence and management of a creative value chain.

In this regard, the deputy prime minister, who is also the education minister, said strong collaboration between higher education institutions and the industry must exist to address various challenges in creating a conducive environment.

"The knowledge-exchange will help students to see the practical application of what they learn from the textbook in university. Without this, college education remains incomplete," he said when opening the 'Seeds for the Future' Programme by Huawei, at the Huawei R&D Centre, in Beijing, Tuesday.

Muhyiddin said the aspiration to achieve high-income status as a developed country was very much dependent on an innovation-based economy founded on high-level knowledge and creativity.

Greater efforts in enabling Research and Development (R&D) activities towards outcome-based innovation and commercialization had been steadily encouraged by the Malaysian government, he said.

Muhyiddin said the government had also emphasized on the development of educational infrastructure, student character, curriculum, and development.

Huawei, he said, had truly taken the lead in industry-academia interaction in Malaysia especially in the telecommunication sector and the programme was another milestone achieved.

"I hope more corporations follow in Huawei's footsteps in enabling technology transfer and partnering with Malaysia for a better, brighter future of our young leaders," he said.

Huawei is one of the leading global information and communication technology solutions provider founded in 1987, serving more than one-third of the world's population in more than 170 countries.

It has over 70,000 products and solutions R&D employees, comprising more than 45 per cent of its total workforce worldwide.

Huawei sponsored 16 Malaysian university students for a two-week hands-on work experience training at its R&D centre under the initiative starting Tuesday.

The Fortune 500 Global company with a revenue close to US$40 billion (RM134 billion) last year, trains 20,000 engineers annually at its global training centres in Cyberjaya.

--BERNAMA

Cancel all dealings with Chinese firm, gov’t urged

 

The government has been urged to cancel all dealings with Chinese-owned firm CAA Resources within the country after the company’s executive director admitted in a New York Times article to corrupt business practices in Malaysia.

DAP’s Petaling Jaya Utara MP Tony Pua said in a press conference at the Parliament lobby today that the federal, Pahang and Terengganu state governments must cancel all approvals given to the company and also its subsidiaries for “bringing disrepute” to Malaysia.

CAA’s Yi Liang, in the interview, had confessed to buying Datuk titles for politicians in return for favours.

“The respective government must demonstrate their resolve that Malaysia do not tolerate any form of corruption, what more from a company which blatantly flaunts and publicises its corrupt activities in the media,” he said.

He also said that the government must demonstrate that the country is not an “available for sale banana republic”.

He said that the admission by the company director was “sufficient justification” to terminate any approvals and mining permits for the company.

“CAA Resources commenced its mining operations in December 2010 at the 1,359 sq km Bukit Ibam Iron Ore Mine in Pahang. In 2013, the company purchased the rights to prospect and mine in Terengganu as well,” he said.

Rather than an embarrassment, Pua said that the admission was a “direct admission” of corrupt activities in Malaysia, and urged authorities to prove that it did not welcome “corrupt businessmen” into the country.

As rich get richer, Mokhzani breaks into billionaires’ top 10

KUALA LUMPUR, Feb 20 — Datuk Mokhzani Mahathir, the son of former prime minister Tun Dr Mahathir Mohamad, has finally joined the ranks of the country’s top 10 richest people as the nation’s magnates continue to widen the gap with the rest of Malaysia.

According to a new list of Malaysia’s 40 richest tycoons released by the Malaysian Business magazine, the SapuraKencana Petroleum mogul added another RM1.59 billion to his coffers over the last year to raise his estimated wealth to RM4.22 billion — good enough for ninth place on the list.

In 2012, Mokhzani had emerged with about 15 per cent of SapuraKencana after his Kencana Petroluem Bhd merged with SapuraCrest Petroleum Bhd. He later disposed of 90 million shares at for an estimated RM387 million.

Mokhzani relinquished his executive positions in SapuraKencana late last year and instead remains only as a non-executive director.

The two richest Malaysians remain “sugar king” Tan Sri Robert Kuok (RM54 billion) and T. Ananda Krishnan (RM33 billion) by a wide margin, with the telecommunications and entertainment tycoon nearly twice as rich as third-placed Tan Sri Teh Hong Pow of Public Bank fame.

Tan Sri Syed Mokhtar al-Bukhary was fifth richest with RM11 billion, while AmBank chairman Tan Sri Azman Hashim capped off the top 10.

Berjaya’s Tan Sri Vincent Tan foray into the English Premier League with Cardiff City also appears to be taking a toll on his bank balance, with the gaming magnate managing only 20th spot with his RM1.9 billion.

“One interesting fact is that since 2002, 81 tycoons have joined the 40 Richest Malaysians list and out of that, 15 have managed to remain on it continuously,” the magazine said in an accompanying release.

It added that there were now two more local billionaires, bringing the number to 33, while the combined wealth of the top 40 richest Malaysians weighed in at RM217.8 billion or some 11 per cent better than they had been in the previous year.

According to a previous list released by Forbes last year, Mokhzani was the 15th wealthiest person in Malaysia. Forbes also differed on Vincent Tan’s net worth, listing him as the tenth richest man in the country.

Forbes is due to release an updated list next month.

Malaysian Business began tracking the worth of Malaysia’s wealthiest people in 2002.

Buyer Beware in the Malaysian Franchise Industry

Hamburger Tan

Some winners, but plenty of losers in a rigged system
Malaysia’s franchising industry is considered a potent road to success, having produced such stellar figures as Vincent Tan Chee Youn, who got his start with the McDonalds franchise before moving on to the Berjaya conglomerate and gaming through Sports Toto. Despite becoming one of the country’s most successful Chinese entrepreneurs, worth an estimated US$1.3 billion, he is still known by his nickname Hamburger Tan.
Tan’s success has driven the dream of becoming a successful entrepreneur to be shared by many. The franchise industry has made many successful consultants like Abdul Malik Abdullah of D'Tandoori fame, but unfortunately a large number of local franchise failures are hidden with all the hype about the success of the industry. Even though the industry can point to the success of many local franchises like Nelson's and Marrybrown, the vulnerability of any successful branded franchise can be seen in Secret Recipe going into receivership in Australia.
In fact the industry is packed with consultants and brokers who conduct courses and workshops which may encourage the vulnerable into inappropriate products and businesses, charging as much as RM160,000 (US$50,000) to secure company registration as an approved franchisor. Many franchisors are reckless and oversell their ideas to gullible people who lack any sense about doing due diligence on a business concept.
Under the then-Mahathir government in the 1980s, retired public servants were encouraged to become Bumiputera entrepreneurs through buying into franchises. The then-deputy domestic trade minister Abdul Kadir bin Sheikh Fadzir became the public proponent of franchising, organizing seminars and workshops on the concept all over the country.
Although Singer was the first company to introduce franchising to Malaysia in the 1940s, the first F&B successful franchise in Malaysia was the American hamburger and root beer chain A&W, which opened its first outlet in Petaling Jaya in 1963. Very soon many other successful outlets were opened all around Klang Valley. In the following decades, McDonalds, KFC, Pizza Hut, and Kenny Rogers came to the country.
Franchising became a massive growth industry with the establishment of the Malaysian Franchise Association in 1994, attracting a number of consultants and brokers. A screening and selection system, as well as a number of bureaucratic requirements were enacted, so that the procedure to become either a franchisor or franchisee became cumbersome. Consequently, after a very hopeful beginning, the combination of bureaucracy, regulation, procedure, and plain dishonesty among some franchisors has brought misery and suffering to many unsuspecting franchisees.
The Franchise Development Program (FDP) requires franchisors to undertake a number of steps and procedures before they can be registered. Registration enables a company to be eligible for a grant of RM100,000 for Bumiputera companies and RM50,000 for non-Bumiputera companies. The catch is that ministry officials require franchisors to employ a consultant, usually of their choosing to aid the process, where fees may be as high as 40 percent of the grant. Many unhappy franchisors have suggested to Asia Sentinel that some collusion exists in this process between consultants and officials.
Most consultants are not registered with the US-based and internationally recognized International Franchise Association (IFA). These consultants commonly approach potential franchise businesses promising expansion through franchising. They arrange for grants without much scrutiny over the viability of the businesses they have been engaged to develop franchise models. Consequently the market is full of many dubious business models.
A number of franchisors see franchising as a means to extract money from franchisees rather than a means to develop a brand and business. This results in franchises that have little real potential. Once-successful SMEs that go down this track are poorly advised and often fall into financial difficulties. Franchisees who sign up with them don't last long with the result that the only group who has profited out of this process is the consultant.
The problem today is there are so many franchises up for sale, some bona fide and some not. The quality on offer varies widely. Nascent entrepreneurs with little or no experience make the assumption that regulated franchises have been screened for business model viability. What’s more, some franchises like TuitionMall.com or Pusat Bahasa Titian Jaya are alleged to falsely imply that the company has a connection with Cambridge.
For example two Kuala Lumpur entrepreneurs signed a franchising agreement with an F&B franchisor based in Johor who encouraged the franchisee to install a music box and have a band at the venue for extra franchisee costs outside the royalty agreement based on sales turnover. As a result the franchisee business became commercially unviable and the franchisor insisted on a legal remedy which cost the two entrepreneurs their full investment of over RM600,000.
Most franchise agreements have been drawn up in favor of franchisors, some with traps that bring many small franchisees undone such as extra charges over and above royalties. When business flags, franchisor requirements put the concern into financial trouble. A litigation lawyer disclosed that due to the unfairness of the Franchise Act in its favoritism towards franchisors, very few franchisees have been successful in gaining any legal remedy from unscrupulous franchisors. Most court decisions go against them.
There has also been criticism of the Malaysian Franchise Association lack of effort in promoting ethics within the industry by its membership. Part of the problem may appear to be in the way the Perbadanan Nasional Bhd (PNS) is promoting grants and start-up loan packages to businesses. The question is whether this is encouraging predator consulting practices within the industry.
The onus is on the Malaysian Franchise Association, as many within its membership desire, to do its part in cleaning up the industry. Potential franchisees need to look very closely at any franchise they may consider signing up to. This requires a review of how the business model works and scrutiny about both how much the business would cost to operate on a monthly basis, the potential revenue, and total payments required to be paid to the franchisor through the agreement. Is the planned location suitable for this franchise? Potential franchisees should go and look at the operations of other franchisees and talk to them about the franchise business, focusing particularly on the relationship between franchisor and franchisee.
Potential franchisees should look at what they are getting for the fees they pay. How much is the franchisor putting back into brand support and promotion? They should ask who is the franchisor and whether they really have the affiliations they claim to have. Is the franchisee entitled to new products? if so, are there any extra, one-up fees besides royalty payments?
In the event of financial difficulties or the need to close down for any reason, can the franchise agreement be easily terminated? Does the franchisee have the necessary skills and knowledge to run the business and what sort and duration of training is offered by the franchisor? Most importantly, does the franchisee have sufficient financial backing to undergo this venture? Surprisingly, these types of questions are rarely asked by new entrepreneurs.
Finally what should also be considered from the national perspective, is the effect on national creativity and innovation from the franchising phenomenon. Although the thinking behind franchising is that those who engage in franchising are less likely to fail in a new business, the framework of franchising itself frowns upon franchisees who themselves innovate. Thus franchising on a wide scale may have the effect of suppressing entrepreneurial creativity. Franchising kills creativity.

Greedy or gullible?

 Mariam Mokhtar

The British investors who claim that they are the victims of a fraudulent business deal, allegedly perpetrated by a former Umno Baru treasurer, now know how the rest of Malaysia feels.

Calling themselves the British Victims of Investing in Malaysia (BVIM), they staged two protests outside London’s Excel Centre to urge Najib Abdul Razak to speed up the investigation into their plight.

It is a staggering loss for the investors who were defrauded of several millions of ringgit. Some of them lost their life savings.

For decades, many Malaysians have lost their livelihoods, their way of life and for those who were denied an education, their futures. Many have also paid with their lives, including one Mongolian model who was brutally murdered. Malaysians feel betrayed by a government which professes to look after their interests, but is self-serving.

The BVIM saga started in 2008, when the investors were allegedly approached by a representative from Doxport Technologies Sdn Bhd, whose chairperson and director, at the time, was the Umno Baru treasurer Abdul Azim Mohd Zabidi.

In late 2008 and early 2009, the BVIM invested US$4 million in Doxport Technologies, to purchase six VOIP Telecom switches and equity in the company.

By 2011, having discovered that the switches were not operating in Malaysia and with no return on their investments, the BVIM lodged reports with the police, the Malaysian Communications and Multimedia Commissions (MCMC) and the Company Commissions Malaysia (CCM). They alleged that Doxport had used fraudulent invoices and documents to misappropriate the funds.

To date, only one suspect has been interviewed by the police and the Money Laundering Investigation Division has shown little vigour in pursuing the allegation.

Like the BVIM, many Malaysians are frustrated that the avenues for recourse are limited and constrained by political machinations. Many people do not trust the police and others believe that justice only benefits the highest bidder. In a climate of fear and mistrust, Malaysians are resigned to suffering in silence. It is high time they became more vocal.

The BVIM and overseas Malaysians are able to organise demonstrations, but many Malaysians in their homeland do not have that privilege. If they were to attend a march, they may face water cannons, tear gas, beatings and arrest. The Penans of Sarawak fare worse and are often subjected to violent retaliation. In the isolated interior, their plight is highlighted only if people are brave enough to smuggle their story to the outside world.

Malaysians joining protests in overseas locations face subtle intimidation, with Special Branch operatives masquerading as protesters, collating information, whilst their colleagues take videos and snapshots of the participants. ‘Big Brother’ Malaysia-style is well and truly alive. It is a mockery for Foreign Minister Anifah Aman to tell his counterparts not to spy on their “friends”.

The plight of the BVIM raises many questions. How were these victims defrauded? Why did they part with their money, so easily? At least one man lost his life savings. Another was enchanted by his experience on a package holiday to Malaysia, and he, too, fell for the investment scam.

It reminds one of the tragic tales of lonely middle-aged women who go on holiday, and are seduced by attentive suitors, on the beach. They marry and find that they are later fleeced of their life savings.

‘Conmen target greedy people’

Some people have little sympathy for the BVIM and feel that they deserved their fate. One cynic said, “Experienced conmen know that honest people are not vulnerable. The conmen target greedy people who want to make a fast buck. They fall for the promise of wealth beyond their dreams.”

The BVIM are not the first, nor will they be the last, to be swindled by Malaysian con artists, who mask themselves with a veneer of respectability, to dupe people into parting with their money. They know that first impressions of status and power count.

Will the full story of this alleged fraud ever be known? In our experience, financial abuses or corrupt practices which involve Umno Baru are immediately swept under the carpet.

In several instances, the case was closed because of “lack of evidence”. People in positions of responsibility are found “not guilty”, as in the Port Klang Free Zone (PKFZ) fiasco. In many cases, junior officials are made to be the patsies, then prosecuted and jailed. After a young Mongolian model was murdered, her alleged assailants spent time in jail but were later released.

Does anyone remember the Maminco Tin scandal of the 80s? Or the Perwaja Steel fiasco a decade later? How about the National Feedlot Corporation (NFC) fraud of 2011? Or the Genneva gold scandal; the business was launched with much pomp by an ex-PM.

When a court case seems to be going well, there will often be a sudden out-of-court settlement and the villain will escape public scrutiny, to prevent the full extent of the crime from being exposed. This is exactly what happened when a member of the rakyat alleged that the home Minister, Zahid Hamidi, had grievously assaulted him.

In Malaysia, the paper trail in the misappropriation of hundreds of millions of ringgits, is invariably alleged to lead to Umno Baru men and their cronies.

The BVIM have met Najib and some cabinet ministers, and they have the support of several MPs in Britain. Lord Ahmed of Rotherham pleaded with Najib on behalf of the BVIM, but Lord Ahmed is a man with a tainted past. He was jailed when he ran over and killed a man, whilst driving on the motorway and sending a text message. The British papers are full of stories of his other indiscretions.

If memory serves this writer well, this is the same Lord Ahmed who invited Sarawak Chief Minister Abdul Taib Mahmud to the House of Lords in 2010.

Only the naïve would think that the Malaysian and British MPs will move heaven and earth to force Najib to pressure the police, the MCMC and the CCM to investigate and prosecute. The British MPs would rather fete Najib, to entice him into investing millions of ringgits of the taxpayers’ money in England; money which comes from Felda, EPF and other GLCs.

---

MARIAM MOKHTAR is a defender of the truth, the admiral-general of the Green Bean Army and president of the Perak Liberation Organisation (PLO).

Investors who 'lost RM12mil' fume at Najib in London

In a blow to Malaysia's overseas reputation, a group called British Victims of Investing in Malaysia (BVIM) protested in the streets of London on Wednesday, urging Prime Minister Najib Abdul Razak to help them recover their lost life savings.

BVIM protested outside the Excel exhibition and convention centre in London, the site of the World Islamic Economic Forum. Najib was the event's patron.

The group demanded that Najib act against Doxport Technologies Sdn Bhd, a firm owned by former Umno treasurer-general Abdul Azim Mohd Zabidi (left), which they alleged cheated UK citizens off some RM12 million.

"It is ridiculous that after over two years since we lodged a criminal case in Malaysia, that no charges have been made or people arrested - I tell all my friends, colleagues and the people I meet to never invest in Malaysia!" Steven, a bank worker, was quoted in a BVIM press statement.

Doxport had allegedly taken money from the British investors for the purchase and installation of telecommunication equipment in 2008 but the investors have received no payback since.

Sixty British investors, through Fiscal Capital Sdn Bhd, had filed a RM12 million suit against Doxport this year, following inaction even after a police report made in October 2011.

Another investor, Mohammed, a bus driver, was quoted saying: "I invested my life savings because I liked Malaysia, My family is really suffering and it seems the law means nothing in Malaysia. I hope no one invests there and suffers like us."

The protesters questioned if Malaysia followed the rule of law and warned others against investing in the country.

London Metropolitan Police gave permission for the protest and BVIM claimed they also had the backing of some 15 British MPs.

SEED: We have no reason to hide figures

Responding to a call from an Indian business group, the secretariat explains the loans given out to Indian businesses.

PETALING JAYA: The Special Secretariat for Empowerment of Indian Entrepreneurs (SEED) today said that people should first dismiss the misconception that it is a MIC initiative.

SEED director AT Kumararajah explained that the secretariat was set up by the Prime Minister’s Department to assist in giving out the RM180 million allocated for the Indian community.

He added that G Palanivel was playing his role in SEED as a cabinet minister and not as the president of MIC.

Kumararajah claimed that SEED had data since August 2012 up until Dec 6, 2012 with regard to the number of applicants, the amount of loans dispersed and the applicants who had been rejected.

“It is a work-in-progress, we have no reason to hide the figures. At the same time, it’s not easy to collect data from the 13 banks affiliated with this programme and all its branches from around

Malaysia. We are getting there,” he said.

The SEED director was responding to the Malaysian Indian Business Association (Miba) which demanded MIC to reveal the figures pertaining to the funds allocated for Indian businesses.

According to Kumararajah, there had been 932 applications as of December 20 this year. Out of which, 643 had been approved and dispersed and 20 applications rejected.

The balance 269 applications were still being processed but 57 of them were already lined up out of which, 28 almost completed.

He said that out of the total RM2.43 billion allocated by the government for businesses, RM180 million was allocated specifically for the Indians.

This amount, he added, was broken down and parked under several other programmes and financial institutions – RM10 million to Malaysian Industrial Development Finance (MIDF), RM10 million to Small and Medium Enterprises Corporation Malaysia (SME), RM30 million to Tekun and the remaining RM130 million to banks.

Responding to another point raised by Miba, Kumararajah said: “The funds given out by banks is indeed using the Islamic concept. People have to realise that the Islamic concept is merely a funding mechanism and has proved to be one of the fastest growing mechanisms.”

“There is no difference between normal loans and that of the Islamic concept, the only thing is the ‘halal’ factor. Still, there is leniency ranging from 15%-20% of the business being of ‘non-halal’ in nature,” he added.

Creating awareness

Explaining further on the figures, Kumararajah said RM24.37 million had been given out so far to the above mentioned 643 approvals – RM3 million via SME, RM9.9 million via MIDF, RM9 million via Tekun and RM13.8 million via banks.

“We have the figures and just need time to collect the precise data. Once that is complete, we would definitely publish the details,” he told FMT.

According to Kumararajah, Tekun had given out a total of RM34.5 million to 4,212 companies within a span of four years since its inception in 1998.

But since August 2012 to date due to the specific allocation for the Indian community, Tekun had given out more than RM9 million in funds to Indian businesses.

“We are doing our best to create awareness. We have held 69 ‘pocket talks’ thus far with 8,921 participants. This includes Miba. We have reached out across the board, even to several NGOs,” said Kumararajah.

He said that an alarming number of companies or businesses had not been registered, nearly four times the number of those registered and this was the main reason why applicants were rejected.

Kumararajah also cited the lack of discipline and responsibility among applicants such as delays in producing documents for the loans.

“We understand that there must be a handicap in requirements when handing out soft loans like this to the Indian community but we are still working on that. We need to improve as well, I’m not going to say that we are perfect,” he said.

Kumararajah added that SEED was going out of its way to assist the Indian community as well, having made 810 referrals on top of the 932 applications to banks and financial institutions.

“Please channel more applicants to us, we will do all we can to help. But be realistic about the time line,” he said.

Malaysia Called Most Corrupt Country for Business

Malaysia Called Most Corrupt Country for Business
In the 2012 Bribe Payers Survey, Malaysian companies were found most likely to take a bribe. The WSJ’s Sam Holmes explains why the government’s high-profile anticorruption campaign isn’t working.
To view video, please go to this link:
http://live.wsj.com/video/malaysia-called-most-corrupt-country-for-business/84ACA11B-5DE6-4677-828A-CD2D45B60AC6.html#!84ACA11B-5DE6-4677-828A-CD2D45B60AC6

FDIs not flowing as freely into Malaysia, says Tengku Razaleigh

Eva Yeong, The Sun Daily

Malaysia is no longer attracting foreign direct investments (FDIs) as freely as it used to, said former finance minister Tengku Razaleigh Hamzah, adding that the country is not investing enough to meet its aspirations.

"Private investment now makes up a smaller portion of the country's gross domestic product (GDP). Although we continue to maintain a relatively high national savings rate, some of those savings have gone overseas," the Gua Musang member of parliament said in his keynote address on "Pragmatism in the Face of Present Economic Outlook" at the MIER National Economic Outlook Conference 2013/2014 here yesterday.

"Malaysia has become a premature exporter of capital, a characteristic that is unbecoming of a growing, high potential economy.

"There is also this silent issue of capital flight, whether it is in the form of over-invoicing by corporates or personal wealth leakages," he added.

On the domestic production front, he said the nation depends on a relatively narrow spectrum of growth drivers, while the government's revenue base is just as limited and the issue of fuel subsidies has to be addressed quickly.

Tengku Razaleigh said the removal of petrol subsidies is imperative as it is a drag on government finances and an impediment to proper resource allocation.

"In order to protect the average consumer, perhaps we can begin by applying an implicit subsidy cut on large engine capacity vehicle owners via a higher road tax," he said.

Minister in the Prime Minister's Department Tan Sri Nor Mohamed Yakcop said private investment is expected to account for 30% of the country's total investments next year.

"Private investment, which grew marginally by 2.5% during 2005 to 2009 period, registered a double digit growth of 15.5% in 2010 and 12.2% in 2011.

"Even more encouraging, it grew on an annualised basis of 22.2% in the first half of this year," he said at the opening of the event.

Meanwhile, RAM Holdings Bhd senior general manager and group chief economist Dr Yeah Kim Leng. said domestic-based sectors and services need to grow at a faster pace in order to have a sustainable domestic-driven growth.

"Domestic demand has actually helped the Malaysian economy offset the global demand over the last decade and more importantly, in the post global financial crisis year of 2010 and 2011, domestic demand has actually been offsetting the negative growth from exports," he told reporters on the sidelines of the conference.

"Domestic demand can help smoothen Malaysia's output fluctuations.

"Use domestic demand to enhance resilience because Malaysia is such an open economy with exports contributing more than 100% of GDP. We are actually subject to a lot of these external demand shocks," he added.

Yeah said next year's GDP growth will remain above 5% with RAM Ratings maintaining its forecast of 5.3% for 2013.

He said the two major risks are the continuing Eurozone debt crisis that could potentially result in double dip for the global economy and the fiscal cliff.

"If these two don't happen, Asia, with improving indicators from China and other emerging countries, will be in a strong position to capitalise on the regional growth and demand.

"Combined with our resilient domestic demand, there won't be any major shock to our investor confidence and consumer spending," he added.

China-Malaysia Trade Set For Further Expansion

From Jamaluddin Muhammad

PHNOM PENH, Nov 19 (Bernama) - The China-Malaysia bilateral trade is set to expand further, said Prime Minister Datuk Seri Najib Tun Razak.

He said the use of local currencies for trade between both countries would also help lead to this expansion.

China expressed such optimism when Najib held a bilateral meeting with Chinese Premier Wen Jiabao, here, last night, at the invitation of the latter on the sidelines of the 21st Asean Summit.

Due to Najib's tight schedule at the Asean Summit and bilateral meetings on the sidelines of the event Sunday, as well as related summits Monday, he only managed to hold a 10-minute press conference before rushing off to another back-to-back engagement.

Total trade between China and Malaysia amounted to US$54.5 billion in 2011 and rose by 10.5 per cent to US$38.1 billion between January and August this year compared to the corresponding period in 2011.

Najib said China had been Malaysia's largest trading partner since 2009.

"China is now Malaysia's largest export market (US$29.8 billion) and source of imports (US$24.7 billion)," he added.

Malaysia's major exports are electrical and electronics products, palm oil, and chemicals, while major imports are electrical and electronics products, machinery, chemicals, appliances and parts.

In steering economic ties between China and Malaysia to greater heights over the next five years, Najib said both countries were finalising a Five-Year Economic Cooperation Plan covering the period 2013 and 2017.

"China is expected to submit the consolidated draft plan within the next few weeks for Malaysia's consideration," he said.

He said the areas of cooperation cover agriculture, infrastructure, manufacturing, industry, investment, services, wholesale, retail, mineral resources, industrial park and export processing zone, logistics and sanitary.

He said Wen was confident that the new Chinese leadership, expected to take over in March next year, would continue to pay special attention to strengthening economic cooperation with Malaysia.

Najib said both countries were actively working towards the full implementation of the two iconic industrial parks - the China-Malaysia Qinzhou Industrial Park (QIP) in China and the Kuantan Industrial Park (KIP) in Malaysia.

A Malaysia-China joint venture (JV) company has been established with an initial paid up capital of US$300 million in developing the QIP which was officiated by both Wen and Najib in China last April.

The Malaysian government, Najib said, would continue to encourage Malaysian companies led by Rimbunan Hijau and SP Setia to actively participate in this project.

He said the KIP would be officially launched in the first quarter of next year.

The KIP is a JV between Malaysia and China with an equity structure of 51 per cent for the Malaysian consortium and 49 per cent allocated for the PRC JV Consortium.

He said both leaders were also pleased with the state of bilateral relations which transcends official cooperation.

"Premier Wen stated that China-Malaysia relations is at the forefront of China-Asean relations," he added.

Asked about the South China Sea issue, Najib reaffirmed Malaysia's commitment to peaceful solution, and reiterated that it should not be an obstacle for cooperation in other fields.

China, Taiwan, Malaysia, Vietnam, the Philippines, Brunei and Malaysia are involved in the territorial claim on parts of the sea.

Najib also met Oknha Othsman, a Cambodian Muslim leader who is an advisor to Cambodian Prime Minister Hun Sen on Muslim affairs, here Sunday night.

Oknha expressed appreciation over Malaysia's assistance on religious matters and hoped it could be extended to education as well, in helping the Malay Champa community, who speak Bahasa Melayu.

Najib said the Malaysian government would consider the request for assistance in developing the country's Islamic Centre, here.

Touching on the Asean Plus Three Commemorative Summit today, Najib proposed that the Asean Plus Three Emergency Rice Reserve, include other food, apart from rice.

"We hope the food production could be further increased through the use of innovation technique and technology," he said.

Asean Plus Three is a cooperation agreement between Asean's 10-member countries and the three dialogue partners, namely China, Japan and South Korea.

Apart from the Asean Plus Three Summit, Najib today attended 15th Asean-Japan Summit, 15th Asean-Republic of Korea Summit, 10th Asean-India Summit, 15th Asean-China Summit and later the 4th Asean-US Leaders' Meeting, at the Peace Palace, here.

United States President Barack Obama will be attending the 4th Asean-US Leaders' Meeting.

Najib and his wife, Datin Seri Rosmah Mansor, also paid tribute to the late Cambodian King-Father Norodom Sihanouk at the Royal Palace.

Najib and Rosmah are scheduled to attend the Gala Dinner to be hosted by Hun Sen and his wife Monday.

Malaysia’s consumer confidence shaken by uncertain global economy, survey shows

KUALA LUMPUR, Oct 30 — Consumers in Malaysia are less optimistic this quarter, their confidence rattled by a belief that demand and investments may not be as resilient due to the slowing economy in Europe, North America and China, according to the latest global online consumer confidence findings from Nielsen, a global provider of information into what consumers watch and buy.

Malaysia’s consumer confidence fell six points in the index to 105 in the third quarter of 2012 from 111 three months ago, despite seeing its Gross Domestic Product (GDP) growing by 5.4 per cent in the second quarter of the year and inflation at its slowest pace in September.

“Although domestic conditions remain stable consumers may have increasing concerns that external demand and investments may not be as resilient as expected and the economic situation in Europe, North America and the slowing down of demand in China may be contributing to the decline in optimism,” Nielsen Malaysia’s managing director, Richard Hall, said in a statement today.

Southeast Asia’s third biggest economy ranked ninth out of 58 countries surveyed in the Nielsen Global Online Consumer Confidence Survey 2012, falling four rungs from the previous quarter and landing behind neighbours Indonesia and India which both drew 119 points.

While it remained in the top 10, it also placed behind the Philippines (118), Thailand (112), China (106), the United Arab Emirates (114), Saudi Arabia (113) and Brazil (110) in the survey but ahead of Singapore, which ranked 15th out of the 58 countries surveyed.

Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism.

However, consumer confidence rose to 118.3 in the third quarter of 2012 from 114.9 in the second quarter of 2012, according to the Malaysian Institute of Economic Research (MIER), which polls a sample of over 1,200 households in Malaysia every quarter to gauge consumer spending trends and sentiments.

The local research house has found that historically, from 2005 until 2012, Malaysia’s consumer confidence averaged 106.54 reaching an all time high of 124.10 in March of 2007 and a record low of 70.50 in June of 2008.

The Nielsen survey found that consumer confidence in Malaysia dropped by six points due to the drop in optimism based on job prospects as well as personal financial status.

Consumers are split between saying the country is in a recession or not.

Just over half of the online consumers surveyed or 51 per cent felt that the nation is in an economic recession, while 49 per cent said that Malaysia is not in recession.

Slightly more than a quarter of those surveyed by Nielsen believed that the recession would last for another 12 months.

Four out of five consumers have changed their spending patterns to save on household expenses, Nielsen said, pointing a slowdown in the total Fast Moving Consumer Goods (FMCG) tracked by Nielsen, which showed a year-on-year decline of 3.1 per cent and 2.4 per cent in sales value during the Ramadan fasting month and Hari Raya Aidilfitri festival last July and August.

It said only 36 categories experienced positive growth during the two-month period, which usually peaks as the Aidilfitri festival is celebrated by the 60-per cent majority Muslim population.

“The trends suggest that consumers are spending cautiously and holding back spending amid global economic uncertainties.

“On the other hand, Nielsen’s survey reveals that they have increased both their contribution to savings and retirement funds (increased by three and five per cent respectively),” Hall said.

He noted that pre-budget sentiment may have also contributed to the slowdown in growth on a year-on-year basis.

He said consumers are deferring spending especially on discretionary items such as major durable goods while waiting for the government to roll out people-friendly incentives or measures before the close of the third quarter.

Nielsen said nearly one-fifth of online consumers polled were most concerned about the state of economy, followed by job security and political stability.

Fernandes: AirAsia ready to take on rival

The AirAsia boss says with Lion Air moving to Kuala Lumpur, the Indonesian skies are wide open.

KUALA LUMPUR: AirAsia boss Tony Fernandes has vowed to give Indonesian rival Lion Air “a real run for their money” after it announced plans for a new low-cost carrier, a report said Thursday.

Indonesia’s PT Lion Mentari Airlines and a Malaysian partner Nadi said Tuesday their Malindo Airways would launch flights around the region from Kuala Lumpur in May, a direct assault on AirAsia’s home turf.

AirAsia has long been based near Kuala Lumpur but Fernandes recently opened a regional headquarters in Jakarta and purchased Indonesia’s Batavia Air for $80 million.

“We are thrilled that they are coming here as this means taking away capacity from Indonesia. We can give them a real run for their money in Indonesia,” he was quoted by The Edge Financial Daily as saying.

Analysts have said Malindo could threaten fast-growing AirAsia’s profit.

AirAsia’s share price dropped to an 11-month low on the Kuala Lumpur stock exchange Wednesday.

Fernandes, a former record industry executive, took over insolvent AirAsia in 2001 and quickly turned it into one of the aviation sector’s biggest success stories.

It has come to dominate budget travel in Asia with a business model based on flying into secondary airports in major cities, with their lower landing costs.

But analysts have warned that it must contend with a host of upstart challengers emboldened by Fernandes’ pioneering success.

Malindo will launch with a fleet of 12 Boeing 737s flying to regional destinations but hopes to expand to 100 planes in a decade and fly to Europe by 2015.

Lion Air is Indonesia’s largest privately run airline. Malaysia’s National Aerospace and Defense Industries (NADI), which specialises in maintenance, repair and overhaul services, will own 51 percent in the joint venture.

- AFP

Discussion on Indian economic woes

A Indian business organisations will hold a roundtable discussion on how to improve the economic standing of Malaysian Indians.

KUALA LUMPUR: The Malaysian Indian Business Association (MIBA) will organise a roundtable discussion with regard to the economic situation of the Indian community.

MIBA president P Sivakumar said despite efforts by the government through Tekun and Amanah Ikhtiar Malaysia, there has not been any major efforts taken to address this issue.

According to him, since the last general election, the government has taken several measures in order to placate the Indian community, which turned its back on Barisan Nasional in 2008.

Sivakumar said while some segments are contented with receiving the small hand-outs, the majority however preferred to see a more long-term plan put in place.

“The setting up of various bumiputera agencies to assist the bumiputeras in retail, construction and the service sector has proven to be successful.

“Why cannot similar agencies be set up to initiate and promote Indian businesses in infrastructure projects, vendor business with government linked companies, issue permits for construction, commercial vehicles and others?” he asked.

Sivakumar explained that the half day discussion organised by MIBA aims to:

*Articulate the current status of the economic development of the Malaysian Indian community noting what has been undertaken since 12thgeneral election

* Identify the root causes, are these attitudinal or structural

* Chart out recommendations and concrete programmes in capacity building

“MIBA’s objective is to give the Indian community a special opportunity to articulate the current situation and seek in a practical way to resolve the concerns. The half day forum will be held in Petaling Jaya on April 1st,” he added.

He also said that the findings of the forum would be submitted to Prime Minister Najib Tun Razak and MIC president G Palanivel.