There seems to be a ray of hope for some 66,000 Maika Holdings shareholders if the government steps in and saves the RM160 million asset-based company, says former president of the Malaysian Associated Indian Chambers of Commerce & Industry (MAICCI) and shareholder, VKK Teagarajan.
Teagarajan is proposing that the government's takeover of Maika be done through a special vehicle company of Khazanah that would help the Indian community's economic future.
He said that the MIC president S Samy Vellu's blame game hitting the front pages of the Tamil newspapers today is not going to help the Indian communities who have invested thousands in the company.
"Selling the Maika's RM160 million together with the insurance company, United Oriental Assurance and the land bank is an opportunity for the Government to help out through a special vehicle that was announced during last year's budget.
"It was reported that the government had set aside RM300 million to assist the Indian community.
"It is to my dismay and many others, I find the leaders of MIC who have worked so hard to setup Maika Holdings Bhd for the Indians are today proposing to sell its cash cow asset, United Oriental Assurance, the last financial institution belonging collectively to the Indian," Teagrajan added.
Paying back shareholders
Tamil newspapers have reported that Samy Vellu wants to sell UOA to pay back the shareholders but former deputy president S Subramaniam wants transparency in the sale and a higher price for the financial asset .
"Although their intentions are good and honourable, but I feel that a better solution would be to seek government assistance and to inject funds to revive Maika Holdings and benefit the 66,000 shareholders."
Teagarajan's (left) response seems to be is in line with the government's plans which were made during the tenure of former prime minister Abdullah Ahmad Badawi.
The budget had proposed specific ways and means to address to the socio-economic problems facing the Indians.
Following the budget proposals, it was reported that the EPU had allocated RM300mil for the betterment of the Indian community.
Teagarajan reiterated that Maika Holdings is not a "dead horse" as pointed out by Samy Vellu.
He said that, "It is in fact worth RM160 million in assets, combining the asset value of UOA Bhd and the balance of prime land from the sale of Tumbuk Estate estimated at around 125 acres".
Protecting community's largest asset
A prominent businessman, Teagarajan said the infusion of RM160milionl to revive and protect the Indian community's largest asset would be seen as a move in the right direction to win back the lost Indian voters.
In addition, he said the government should revamp Maika through due diligence and prudent management policies for a better rate of investments.
With this injection of new funds, the so called ‘poor' Indians who have a stake of RM50 million can be paid off and the rest maintained as share capital.
"There is a large pool of talented and top notch Indian management expertise available for the government to tap and lead Maika Holdings in the right direction towards economic prosperity.
"Through such government actions, the Indian community will be able to maintain the only financial institution in their possession."
He added that the allocation of 5 to 10 percent of government infrastructure projects such as highways, bridges, schools, hospitals allocated to the revamped Maika Holdings will be an economic boost to the company.
RM1 billion company proposed
He also said, "This injection of funds could be converted to a RM1billon company if prudently managed under Khazanah's supervision.
New shares can be allocated to low income group Indians to increase their investments to fulfil the government's economic aspiration to increase the economic pie of the Indian community from 1.1 percent to 3 percent in the near future."
Teagarajan also called upon other economic planners and strategists to make suggestions and viable plans that would benefit the Indian community.
Teagarajan is proposing that the government's takeover of Maika be done through a special vehicle company of Khazanah that would help the Indian community's economic future.
He said that the MIC president S Samy Vellu's blame game hitting the front pages of the Tamil newspapers today is not going to help the Indian communities who have invested thousands in the company."Selling the Maika's RM160 million together with the insurance company, United Oriental Assurance and the land bank is an opportunity for the Government to help out through a special vehicle that was announced during last year's budget.
"It was reported that the government had set aside RM300 million to assist the Indian community.
"It is to my dismay and many others, I find the leaders of MIC who have worked so hard to setup Maika Holdings Bhd for the Indians are today proposing to sell its cash cow asset, United Oriental Assurance, the last financial institution belonging collectively to the Indian," Teagrajan added.
Paying back shareholders
Tamil newspapers have reported that Samy Vellu wants to sell UOA to pay back the shareholders but former deputy president S Subramaniam wants transparency in the sale and a higher price for the financial asset .
"Although their intentions are good and honourable, but I feel that a better solution would be to seek government assistance and to inject funds to revive Maika Holdings and benefit the 66,000 shareholders."
Teagarajan's (left) response seems to be is in line with the government's plans which were made during the tenure of former prime minister Abdullah Ahmad Badawi.The budget had proposed specific ways and means to address to the socio-economic problems facing the Indians.
Following the budget proposals, it was reported that the EPU had allocated RM300mil for the betterment of the Indian community.
Teagarajan reiterated that Maika Holdings is not a "dead horse" as pointed out by Samy Vellu.
He said that, "It is in fact worth RM160 million in assets, combining the asset value of UOA Bhd and the balance of prime land from the sale of Tumbuk Estate estimated at around 125 acres".
Protecting community's largest asset
A prominent businessman, Teagarajan said the infusion of RM160milionl to revive and protect the Indian community's largest asset would be seen as a move in the right direction to win back the lost Indian voters.
In addition, he said the government should revamp Maika through due diligence and prudent management policies for a better rate of investments.
With this injection of new funds, the so called ‘poor' Indians who have a stake of RM50 million can be paid off and the rest maintained as share capital."There is a large pool of talented and top notch Indian management expertise available for the government to tap and lead Maika Holdings in the right direction towards economic prosperity.
"Through such government actions, the Indian community will be able to maintain the only financial institution in their possession."
He added that the allocation of 5 to 10 percent of government infrastructure projects such as highways, bridges, schools, hospitals allocated to the revamped Maika Holdings will be an economic boost to the company.
RM1 billion company proposed
He also said, "This injection of funds could be converted to a RM1billon company if prudently managed under Khazanah's supervision.
New shares can be allocated to low income group Indians to increase their investments to fulfil the government's economic aspiration to increase the economic pie of the Indian community from 1.1 percent to 3 percent in the near future."
Teagarajan also called upon other economic planners and strategists to make suggestions and viable plans that would benefit the Indian community.
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