Last week, we heard news that Robert Kuok, the richest Malaysian has sold his business interests in 2 sugar manufacturing and cultivating companies. He is selling to FELDA Global Ventures SB, which is wholly owned by FELDA. The price was said to be RM1.29 billion.
Robert Kuok is selling his 36.36 million shares in Malayan Sugar Manufacturing Co Bhd (MSM) and also selling 6 million shares in Kilang Gula FELDA Perlis SB also to FGV for RM26.31 million. That makes FELDA the biggest sugar manufacturer and supplier.
Robert Kuok is also selling his 49% interests in Grenfell Holdings SB to Tradewinds which is controlled by Tan Sri Syed Moktar Al Bukhary.
The sale of Robert Kuok's business interests in sugar has raised some discomfiture and uneasiness. FELDA is seen as a Malay dominated GLC and Tan Sri Syed Mokhtar is a Bumiputera tycoon of Arab descent. It is spooking many other Chinese business interests into believing they may be next in line for takeovers or forced to sell their interests.
Robert Kouk and his business advisers must have done their arithmetic. The selling price incorporates a premium that reflects maybe 15 years advanced profits. Imagine with this cash pile, he reinvests in China where he has extensive business interests. He may be able to get better returns there.
We are waiting for more revelations about this business deal. At the moment, we are interested in erasing the uneasiness which accompanied the sale. I am saying this uneasiness is largely unfounded. There may be justifiable reasons for the sale and purchase and that Robert Kuok's exit from the sugar business need not be generalized into a thinking that the government, is going after Chinese business interests.
Just as a point of debate, why should the Chinese business people be uneasy? They have had monopolies in many businesses for a long time that were not subject to Malay envy. Robert Kuok for example enjoyed a monopoly over sugar business for maybe more than 50 years without raising uneasiness and insecurity in Malay minds.
There is no cause for worries. The Chinese are a resilient lot who can overcome any 'administrative' and corporate actions which a Malay dominated government can muster. They are basically untouched by economic regulations.
I have been in Kuala Lumpur for almost a month visiting and observing the Chinese economy practiced in places like Old Klang Road and Balakong. I have come away concluding that the Malaysian Chinese is actually operating a parallel economy more vibrant than the official national economy. Those people behind Pearl Point, Wisma Shun Li and the ubiquitous manufacturing and trading establishments in Old Klang Road and Balakong are never in need of government assistance.
They have the best form of independence which is beyond the comprehension of the shrillest and bellicose of Malay voices – FINANCIAL AND ECONOMIC INDEPENDENCE. What they value most is de -regulation. As long as they are permitted to do whatever they want to economically, the economic future of the Chinese lies in fact, in their own hands. Furthermore, 'permissibility' is a buyable commodity even from the hands of recalcitrant Malay nationalists.
Unfortunately, that cannot be said of the Malay economy which so far can only substantially exists in the form of GLCs.
Sakmongkol AK47 is the nom de plume of this blogger. His name is Mohd Ariff Sabri bin Hj. Abdul Aziz. He was ADUN of Pulau Manis, Pekan.(2004-2008)
http://sakmongkol.blogspot.com/2009/11/parallel-economy.html
Robert Kuok is selling his 36.36 million shares in Malayan Sugar Manufacturing Co Bhd (MSM) and also selling 6 million shares in Kilang Gula FELDA Perlis SB also to FGV for RM26.31 million. That makes FELDA the biggest sugar manufacturer and supplier.
Robert Kuok is also selling his 49% interests in Grenfell Holdings SB to Tradewinds which is controlled by Tan Sri Syed Moktar Al Bukhary.
The sale of Robert Kuok's business interests in sugar has raised some discomfiture and uneasiness. FELDA is seen as a Malay dominated GLC and Tan Sri Syed Mokhtar is a Bumiputera tycoon of Arab descent. It is spooking many other Chinese business interests into believing they may be next in line for takeovers or forced to sell their interests.Robert Kouk and his business advisers must have done their arithmetic. The selling price incorporates a premium that reflects maybe 15 years advanced profits. Imagine with this cash pile, he reinvests in China where he has extensive business interests. He may be able to get better returns there.
We are waiting for more revelations about this business deal. At the moment, we are interested in erasing the uneasiness which accompanied the sale. I am saying this uneasiness is largely unfounded. There may be justifiable reasons for the sale and purchase and that Robert Kuok's exit from the sugar business need not be generalized into a thinking that the government, is going after Chinese business interests.
Just as a point of debate, why should the Chinese business people be uneasy? They have had monopolies in many businesses for a long time that were not subject to Malay envy. Robert Kuok for example enjoyed a monopoly over sugar business for maybe more than 50 years without raising uneasiness and insecurity in Malay minds.
There is no cause for worries. The Chinese are a resilient lot who can overcome any 'administrative' and corporate actions which a Malay dominated government can muster. They are basically untouched by economic regulations.
I have been in Kuala Lumpur for almost a month visiting and observing the Chinese economy practiced in places like Old Klang Road and Balakong. I have come away concluding that the Malaysian Chinese is actually operating a parallel economy more vibrant than the official national economy. Those people behind Pearl Point, Wisma Shun Li and the ubiquitous manufacturing and trading establishments in Old Klang Road and Balakong are never in need of government assistance.
They have the best form of independence which is beyond the comprehension of the shrillest and bellicose of Malay voices – FINANCIAL AND ECONOMIC INDEPENDENCE. What they value most is de -regulation. As long as they are permitted to do whatever they want to economically, the economic future of the Chinese lies in fact, in their own hands. Furthermore, 'permissibility' is a buyable commodity even from the hands of recalcitrant Malay nationalists.
Unfortunately, that cannot be said of the Malay economy which so far can only substantially exists in the form of GLCs.
Sakmongkol AK47 is the nom de plume of this blogger. His name is Mohd Ariff Sabri bin Hj. Abdul Aziz. He was ADUN of Pulau Manis, Pekan.(2004-2008)
http://sakmongkol.blogspot.com/2009/11/parallel-economy.html
4 comments:
what's your comment now seeing the government has decided to stop sugar subsidy starting next year? Isn't this a 'really good deal' for Felda?
And also really good deal for syed mokhtar
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