Hantu Laut
First, the proposal for Sime Darby to takeover IJN , than big public outcry, government pulled back.Than, new airport for low-cost carrier to be built jointly by Air Asia and Sime Darby at Labu, Negeri Sembilan.Now, TNB wants to buy back Malakoff's Kapar IPP coal-fired power plant for around RM2.9 billion.The plant was previously owned by TNB but sold its 40% stake to Malakoff in 2004 for RM1.68 billion.If TNB buys only 40%, who holds the other 60%?
These boys have fantastic foresight and business acumen which goes as far as the tip of their noses.They are going to pay almost twice the price to buy back what they saw as a liability hardly four years ago. Hoi ! Ada udang di sebalik batu ka! Pak Pandir!
Lately, the government seems to be making many announcements of this and that, are those projects really going to take off or just to show the people they are doing something - right or wrong, doesn't matter, as long as they appear to be busy.
Some of you would still remember the big bullshit employed by some of our public-listed companies going overseas and claimed to have secured huge contracts under MOU (Memorandum of Understanding), which legally is not considered a binding contract.The whole idea was just to lie to the public to boost the share price.Most of the projects never materialised
Either it is just hot air or somebody is wheeling and dealing hoping to make a killing.
Thursday, December 25, 2008
Wednesday, December 24, 2008
Screwing EPF:The Easy Way Out
Hantu Laut
All those big talk about being well insulated from recession and flush with money and not to worry is going up in smoke.EPF been asked to buy prime and pricey land from the government to replenish their dwindling cash flow.
These are pension funds for mostly middle and lower income Malaysians.It is intended for employees from both the private sector and non-pensionable public sector.These are savings partly contributed by them and partly by their employers for retirement purposes or to be used in time of sickness.
Over the years the management of these funds by the government had seen nothing less than spectacular decline and poor dividend payout.The next few years would see further deterioration of dividend payment due to incompetent fund managers and government intervention in the basic usage of the funds.The portfolios should not include bailing out ailing companies or supplementing government budget deficit.
The table above shows drastic decline in dividend payment over the years due to poor investment strategy and lack of fiduciary discipline.Being the biggest fund one wonder how it could have performed so badly as compared to ASB (Amanah Saham Bumiputra) which have been declaring sterling rate of dividend as shown below.
ASB Dividend and Bonus Payment:
If ASB, which is a much smaller fund can achieve such high value for its investments why can't the EPF be the same or better or was it because anything with the name 'bumiputra' get special treatment including getting good return on its investments.I am sure ASB is not running a Ponzi scheme like Bernard Madoff and wouldn't pay more than what legally it should be paying.It can only mean there is something very wrong with those responsible for the management of the EPF funds.Maybe, EPF should give the money to ASB to manage.
The Malaysian Insider reported that EPF may be asked to buy few plots of prime land in the city centre namely Jalan Ampang and Jalan Cochrane.What really surprised me was the valuation of the land mentioned at per sq.ft of RM150-RM250 for Ampang and RM100 to RM200 for Cochrane.That sounds pretty cheap for prime land smack in the city centre of a big city like Kuala Lumpur.I would have thought they would be more than RM500 per sq.ft and up to RM1000 in the Golden Triangle.No wonder those developers especially for high-end properties are making a killing.With cheap land and high plot ratio they are making a bomb out of the those suckers who bought their properties.Some of the high-end properties were selling for RM2000 or more per sq.ft.
If EPF bought those land and sit on it for the next three years without doing any thing to develop it or sell it at a profit it would have lost its opportunity costs.
Assuming EPF paid RM5 billion and its normal return on investment is 5%, it would have lost RM750 million in earnings for the three-year period.Unless the land can give an annual appreciation of 10% it is certainly not a good investment for EPF.
The other question is why isn't the government like most economically stable government do to raise funds by issuing government bonds domestically and internationally.Have the government reached maximum gearing in its debt' ratio and were afraid that the bonds would not be well received domestically and by the international community which, if happened, will downgrade our sovereign credit rating and increase the cost of borrowing.
I can see this as the only valid reason for the reluctance to issue bonds and the government preference for dipping their hands into the EPF coffers to supplement the budget deficit.
Vision 2020 looked very blur indeed.
All those big talk about being well insulated from recession and flush with money and not to worry is going up in smoke.EPF been asked to buy prime and pricey land from the government to replenish their dwindling cash flow.
These are pension funds for mostly middle and lower income Malaysians.It is intended for employees from both the private sector and non-pensionable public sector.These are savings partly contributed by them and partly by their employers for retirement purposes or to be used in time of sickness.
Over the years the management of these funds by the government had seen nothing less than spectacular decline and poor dividend payout.The next few years would see further deterioration of dividend payment due to incompetent fund managers and government intervention in the basic usage of the funds.The portfolios should not include bailing out ailing companies or supplementing government budget deficit.
| 1983 to 1987 | 1988 to 1994 | 1995 | 1996 | 1997 to 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 8.5% | 8.0% | 7.5% | 7.7% | 6.7% | 6.84% | 6.00% | 5.00% | 4.25% | 4.50% | 4.75% | 5.00% | 5.15% | 5.80% |
| 2002 | 2003 | 2004 | 2005 | 2006 | 2007 |
|---|
| 4.25% | 4.50% | 4.75% | 5.00% | 5.15% | 5.80% |
The table above shows drastic decline in dividend payment over the years due to poor investment strategy and lack of fiduciary discipline.Being the biggest fund one wonder how it could have performed so badly as compared to ASB (Amanah Saham Bumiputra) which have been declaring sterling rate of dividend as shown below.
ASB Dividend and Bonus Payment:
- 1993: Dividend=9.00, Bonus=4.50*
- 1994: Dividend=9.00, Bonus=4.50*
- 1995: Dividend=10.0, Bonus=3.00*
- 1996: Dividend=10.25, Bonus=3.00*
- 1997: Dividend=10.25, Bonus=1.25*
- 1998: Dividend=8.00, Bonus=2.50*
- 1999: Dividend=10.5, Bonus=1.50*
- 2000: Dividend=9.75, Bonus=2.00*
- 2001: Dividend=7.00, Bonus=3.00*
- 2002: Dividend=7.00, Bonus=2.00**
- 2003: Dividend=7.25, Bonus=2.00**
- 2004: Dividend=7.25, Bonus=2.00**
- 2005: Dividend=7.25, Bonus=1.75**
- 2006: Dividend=7.30, Bonus=1.25**
- 2007: Dividend=8.00, Bonus=1.00**
If ASB, which is a much smaller fund can achieve such high value for its investments why can't the EPF be the same or better or was it because anything with the name 'bumiputra' get special treatment including getting good return on its investments.I am sure ASB is not running a Ponzi scheme like Bernard Madoff and wouldn't pay more than what legally it should be paying.It can only mean there is something very wrong with those responsible for the management of the EPF funds.Maybe, EPF should give the money to ASB to manage.
The Malaysian Insider reported that EPF may be asked to buy few plots of prime land in the city centre namely Jalan Ampang and Jalan Cochrane.What really surprised me was the valuation of the land mentioned at per sq.ft of RM150-RM250 for Ampang and RM100 to RM200 for Cochrane.That sounds pretty cheap for prime land smack in the city centre of a big city like Kuala Lumpur.I would have thought they would be more than RM500 per sq.ft and up to RM1000 in the Golden Triangle.No wonder those developers especially for high-end properties are making a killing.With cheap land and high plot ratio they are making a bomb out of the those suckers who bought their properties.Some of the high-end properties were selling for RM2000 or more per sq.ft.
If EPF bought those land and sit on it for the next three years without doing any thing to develop it or sell it at a profit it would have lost its opportunity costs.
Assuming EPF paid RM5 billion and its normal return on investment is 5%, it would have lost RM750 million in earnings for the three-year period.Unless the land can give an annual appreciation of 10% it is certainly not a good investment for EPF.
The other question is why isn't the government like most economically stable government do to raise funds by issuing government bonds domestically and internationally.Have the government reached maximum gearing in its debt' ratio and were afraid that the bonds would not be well received domestically and by the international community which, if happened, will downgrade our sovereign credit rating and increase the cost of borrowing.
I can see this as the only valid reason for the reluctance to issue bonds and the government preference for dipping their hands into the EPF coffers to supplement the budget deficit.
Vision 2020 looked very blur indeed.
Tuesday, December 23, 2008
A Charlie Brown Christmas
Hantu Laut
Still my favourite. Good old Charlie Brown, affable character, always depressed and a perennial loser.The animated movie 'A Charlie Brown Christmas' was made in 1965 based on Charles M.Schulz's 'Peanuts' comic strip.
Chapter 1-3
Chapter 4
Chapter 5-6
Still my favourite. Good old Charlie Brown, affable character, always depressed and a perennial loser.The animated movie 'A Charlie Brown Christmas' was made in 1965 based on Charles M.Schulz's 'Peanuts' comic strip.
Chapter 1-3
Chapter 4
Chapter 5-6
Monday, December 22, 2008
Marginalised Indians, Poor Malays And Poorer Bumiputras
Hantu Laut
Most English educated would know the popular saying 'Children are to be seen not heard'.In another word children with proper upbringing are expected to know how to behave in the presence of adults.Not least to say they should be in bed in the early evening like all children should and not go on political jaunts with their parents.
In November I wrote here about the danger of parents allowing their children to be involved in their political activities.Taking children as young as 4-5 years old to their so called candlelight vigil against the ISA is preposterous.Are these people really serious about their political activism or they have turned such occasions into some kind of festivities for their own enjoyment?
The parents should be ashamed that they are prepared to endanger the safety of their children so they can go out and enjoy themselves under the pretext of championing democracy in this country.If they are really serious about their political ideology they should join political party of their choice whom they think can bring political changes they wanted and help to achieve such change at the ballot boxes.Hindraf, the so called marginalised Indians employed the same tactics, using children in furtherance of their political agenda.
Lately, this bunch of political desperadoes had become even more inventive by using young human devices to spread their 'Save Malaysia' campaign.They sent juveniles to cycle around the country bringing their message of hate.You can hate the government or try to topple it,that's your business but don't be a coward and used young gullible proxies to do your dirty job.
One Arutchelvan of PSM who looked most suited to play a bad part in a Tamil movie rather than a political spokesman has the cheek to say "The police stooped low today when they claimed that the children were exploited", and went on to say "This is utter rubbish coming from the police force, which has long lost its credibility," He said the young cyclists had obtained parental consent.
Wasn't those children exploited? At their young tender age what the f... they know about politics? If that's not exploitation, what is? Who stooped low - he and the parents of those young cyclists or the police ? This is the kind of political activist we have in this country, f..... in the head.This is the kind that sees a molehill to be a mountain.
Although, I do not deny there are some discrimination in some of the government policies but they have not reached such epidemic proportions where a minority race is completely downtrodden and destined to live in the ghettos, like the Jews were forced to in medieval Europe.
These are people who believe whatever the West do is good and we should copy them.Just because most Western countries allowed protests and demonstrations they think Malaysia must apply the same rules without considering the potential danger of civil unrest.What happened in Greece the past weeks, the widespread looting,rampage and destruction of properties all over the country caused just by one accidental death of a student wrongly shot by the police is a lesson that those Malaysians who love to pour their grievances on the street should be looking at.
Human feelings are hard to control and herd instinct can be the order of the day in a multitudinous demonstration where one ethnic group is pitted against another.
There are many successful Indians as lawyers,doctors,accountants and in other professions.I would say as a ratio to population the Indians would have the highest number of doctors in the country.Do they feel marginalised.One of the riches man in this country is Indian or Sri Lankan if there is such race as one of my good Jaffnese Indian friend once told me, he refused to be called Indian, he prefers Sri Lankan, which I think is a nationality rather than a race.
Jaffna, used to be the second largest city in Sri Lanka before the conflicts and is where the marginalised Indians of Sri Lanka lives, home of the LTTE or popularly known as the Tamil Tigers.
If the Tamil Tigers think they are marginalised and wanted an independent state of their own, their ruthlessness and cruelty are even worse than the Sinhalese majority, they have completely driven out the Sri Lankan Moors(Muslims) out of the area.Jaffna now belong exclusively to the Tamils.
All Muslims had left the area in the 1990s.That's is not marginalisation, worst !, that's ethnic cleansing.
There are probably more poor Malays and bumiputras in East Malaysian states of Sabah and Sarawak than marginalised Indians.
Call us stupid if you may but we still believe in the ballot box and respect for democracy and if change we must have the box would be our friend.
Are the Indians really marginalised or they are just apathetic ?
Most English educated would know the popular saying 'Children are to be seen not heard'.In another word children with proper upbringing are expected to know how to behave in the presence of adults.Not least to say they should be in bed in the early evening like all children should and not go on political jaunts with their parents.
In November I wrote here about the danger of parents allowing their children to be involved in their political activities.Taking children as young as 4-5 years old to their so called candlelight vigil against the ISA is preposterous.Are these people really serious about their political activism or they have turned such occasions into some kind of festivities for their own enjoyment?
The parents should be ashamed that they are prepared to endanger the safety of their children so they can go out and enjoy themselves under the pretext of championing democracy in this country.If they are really serious about their political ideology they should join political party of their choice whom they think can bring political changes they wanted and help to achieve such change at the ballot boxes.Hindraf, the so called marginalised Indians employed the same tactics, using children in furtherance of their political agenda.
Lately, this bunch of political desperadoes had become even more inventive by using young human devices to spread their 'Save Malaysia' campaign.They sent juveniles to cycle around the country bringing their message of hate.You can hate the government or try to topple it,that's your business but don't be a coward and used young gullible proxies to do your dirty job.
One Arutchelvan of PSM who looked most suited to play a bad part in a Tamil movie rather than a political spokesman has the cheek to say "The police stooped low today when they claimed that the children were exploited", and went on to say "This is utter rubbish coming from the police force, which has long lost its credibility," He said the young cyclists had obtained parental consent.
Wasn't those children exploited? At their young tender age what the f... they know about politics? If that's not exploitation, what is? Who stooped low - he and the parents of those young cyclists or the police ? This is the kind of political activist we have in this country, f..... in the head.This is the kind that sees a molehill to be a mountain.
Although, I do not deny there are some discrimination in some of the government policies but they have not reached such epidemic proportions where a minority race is completely downtrodden and destined to live in the ghettos, like the Jews were forced to in medieval Europe.
These are people who believe whatever the West do is good and we should copy them.Just because most Western countries allowed protests and demonstrations they think Malaysia must apply the same rules without considering the potential danger of civil unrest.What happened in Greece the past weeks, the widespread looting,rampage and destruction of properties all over the country caused just by one accidental death of a student wrongly shot by the police is a lesson that those Malaysians who love to pour their grievances on the street should be looking at.
Human feelings are hard to control and herd instinct can be the order of the day in a multitudinous demonstration where one ethnic group is pitted against another.
There are many successful Indians as lawyers,doctors,accountants and in other professions.I would say as a ratio to population the Indians would have the highest number of doctors in the country.Do they feel marginalised.One of the riches man in this country is Indian or Sri Lankan if there is such race as one of my good Jaffnese Indian friend once told me, he refused to be called Indian, he prefers Sri Lankan, which I think is a nationality rather than a race.
Jaffna, used to be the second largest city in Sri Lanka before the conflicts and is where the marginalised Indians of Sri Lanka lives, home of the LTTE or popularly known as the Tamil Tigers.
If the Tamil Tigers think they are marginalised and wanted an independent state of their own, their ruthlessness and cruelty are even worse than the Sinhalese majority, they have completely driven out the Sri Lankan Moors(Muslims) out of the area.Jaffna now belong exclusively to the Tamils.
All Muslims had left the area in the 1990s.That's is not marginalisation, worst !, that's ethnic cleansing.
There are probably more poor Malays and bumiputras in East Malaysian states of Sabah and Sarawak than marginalised Indians.
Call us stupid if you may but we still believe in the ballot box and respect for democracy and if change we must have the box would be our friend.
Are the Indians really marginalised or they are just apathetic ?
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