Is this what Najib means by his Bumiputera Economic Empowerment Agenda? Mohd Nazifuddin Najib, 30, has emerged as a substantial shareholder of SerSol Bhd, which could soon be supplying ‘Cat 1Malaysia’ (C1M) to the Malay Contractors Association.

The Sersol share price has rocketed since July 2013

A filing in Bursa announced that Nazifuddin had emerged yesterday as a substantial shareholder with an indirect interest (via SerSol Holdings Sdn Bhd) of 40m shares or 21 per cent in the loss-making commercial paint maker SerSol.

On the same day, SerSol founder Tan Fie Ping and his brother Fie Jen ceased to be substantial shareholders of SerSol after they disposed of their indirect stake of 40m shares.

Earlier, on 23 July, Bursa Malaysia had queried SerSol about possible unusual stock market activity surrounding the sharp rise in the SerSol share price. SerSol responded that it was not aware of anything unusual.

On 2 September, SerSol Bhd appointed Khazanah exco chairman Nor Mohamed Yakcop’s 32-year-old son Mohamed Ridzuan Nor Md as its managing director.

Two days later, on 4 September, the firm signed an MOU with the Malay Contractors Association(PKMM) to supply ‘1Malaysia Paint’ (Cat1Malaysia) to be used by PKMM members – as SerSol’s share price soared.

Under the MOU, PKMM agreed to “encourage” all its members to buy C1M from SerSol “to be used in all building and construction contracts secured or entered into by PKMM members with the government and private sectors for all the building and construction projects…”

Imagine how much SerSol stands to earn if ‘1Malaysia Paint’ has to be used in RM100bn worth of government mega projects already announced.

According to Bloomberg Businessweek:

Encik Mohd Nazifuddin Bin Dato’ Sri Najib serves as Chairman of Magna Healthcare Sdn Bhd. Encik Najib serves as the Chairman of 1Green Enviro Sdn Bhd, Cahaya Pedoman Sdn Bhd, Tribus Sdn Bhd, and Sagajuta (Sabah) Sdn Bhd. He serves as the Director of Kingtime International Limited and Dynac Sdn Bhd. He served as Non-Executive Director of Harvest Court Industries Bhd since October 28, 2011 until November 22, 2011. He serves as the Chairman of Youth on Unity, an NGO. He holds Msc in Accounting and Finance from Cass Business School. He attended Postgraduate School of City University. He studied International Business at American Intercontinental University.

See also Tony Pua’s earlier blog post on Nazifuddin prior activities in the stock market.

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36 COMMENTS

  1. Najib is … with forked tongue.
    What he is saying at UN and to CNBC is different from what he is saying to Umno/Perkasa.
    Never trust him as he is deceiving us with his 1malaysia slogan all the while.

    • Is Najib under threat of Mahathirism?

      The Economist in an editorial piece in its print edition:

      “Should Mr Mukhriz win (the Umno VP post), the anti-Najib forces could coalesce around him as a proxy for his father. A weakened prime minister could then be ousted in an internal putsch, a fate that befell Mr Najib’s predecessor, Abdullah Ahmad Badawi, who also failed to deliver at the polls,”

      “To many Malaysians, even ethnic Malays, Mr Najib has sacrificed political principles to save his job. His campaigning slogan of “1Malaysia”, emphasising racial harmony, now rings hollow,”

      Source:
      http://www.economist.com/news/asia/21586864-ruling-party-returns-its-old-habits-race-based-handouts-bumi-not-booming

  2. According to a Bloomberg report, debt-strapped Malaysia will sell 30-year bonds for the first time in its longest-maturity offering to set a benchmark for companies raising funds under PM Najib’s US$444 billion (RM1.43 trillion) development programme.

    According to Asian Development Bank (ADB), Malaysia had US$314 billion of debt outstanding as of June 30, compared with US$286 billion in Thailand, US$118 billion in Indonesia and US$95 billion in the Philippines.

  3. I see nobody complaining when the share price was 20 cents ++. But after the share price soaring, then I see lots of jealous people crying-out-loud !!!

    • About time for rakyat to know that BN politicians makes more from ‘side income’ this way than their official wages. Malaysia is one country where its politicians dabble in business with their insiders’ information, using their close relatives as proxies.

      The power tussle is MCA is a good example given its strong asset base where there has never been transparency in how the party business venture (eg. award of contracts in servicing the assets like building maintenance). CSL and his cronies will fight hard to retain their positions and easy access to such ‘perks’.

      • Sit back and think. I think some people are hypocritical and jealous of other people smart and hard work that bear result. Do you agree with me ???

  4. Everything they touch turns to dust. Rent seeking and doing business are poles apart. Come back in three years time and tell me this one did not.

    • According to Asia-Pacific Fraud Survey Report Series 2013, Malaysia, along with China, had the highest levels of bribery and corruption found anywhere in the world. It also listed Malaysia as among the countries most likely to take shortcuts to meet targets when economic times are tough.

      • All surveys are subject to stereotyping. Lots of people too are detached from reality. Please do not take those so-called ‘surveys’ seriously.

  5. Absolutely awesome investigative reporting Anill, kudos to you ! Other than their sad placements in Rm 2 Cos which tend to become bullish due to the UMNO progeny syndrome— the amusing part is that the majority of these spoon fed cronies seem not from the Ivy league — but from alien privy league corn flake Universities . They would say — thanks to the poor peasants in the rurals who watch only RTM 1.

  6. Tricia Yeoh wrote this on The Sun (The devil’s in the details) yesterday:

    Najib states that the 10th Malaysia Plan was aimed at “providing fair opportunities to all Malaysians, regardless of ethnic groups …” and “based on the principle of friendly market, need, transparency and merit”, but within the same paragraph also says that the meritocracy here meant “competition among bumiputra”.

    It is only possible to mean one and not the other; both statements cannot be simultaneously correct.

    The numerous studies of successful Malay entrepreneurs today ought to be testament to their ability to flourish in a competitive market. The BEEC assumes that the bumiputra needs more help than ever before.

    This reverses the prime minister’s commitments made under the New Economic Model, to open up the economy through fairness in government tenders, fair competition, removing market distortions, among others.

    In his administration’s efforts to establish greater competition among the bumiputra, he has also singled out bumiputra vendor development systems “based on merit” among “all ministries and GLCs”, including Petronas for the oil and gas sectors.

    For instance, specific mention was made that bumiputra companies would benefit from contracts worth RM20 billion each year for upstream and downstream service work.

    Petronas Licensing and General Guidelines 2012 does spell out strict procedures of obtaining licences from Petronas. This already requires that any company must have bumiputra involvement at the equity, directorship, management and employee levels at certain levels.

    No details on the licensing process after negotiations is usually made available thereafter, apart from a media release published online on the successful contract awarded.

    One concern here is the lack of transparency and accountability, since this usually involves large sums of money and the only oversight on Petronas being that of the prime minister, as stipulated by the Petroleum Development Act 1974. This is especially so if licensing changes are made without having to follow any approval process.

    http://www.thesundaily.my/node/224354

  7. Najib saw this M gave contracts worth billions ringgit,eg FOMEMA which all foreign wokers must go to the agent for medical check up and PETRONAS gaves billions of contract to his second sons.See they all billions worth.Only the … rural Malays think these 2 … PMs are their heroes.

  8. Yes its endless possibilities. When Chow Kon Yeow and several DAP adun brought a 500k houses there were huse and cry by Gerakan members but these idiots were making a wrong hue and cry not knowing that if youi have a 5k salary you will be able to get a bank loan and thats what most of the DAP members are doing.

    Now Nazri son has brought a 7 millions bumngalow and how else can he afford it. With his father salary as a minister, he still would not afford it. Where are all the idiots from Gerakan especially that stupid SEMUT leader.

  9. Is the share given free? I think so.
    rajraman.Najib spend freely tax payer $ and Nazri son bought a house for 7M. (Do) All UMNO cronies have free shares Public Money(?) UMnoo bolih.,Hooray. Only MIc robbed Indians. Other races robbed all races.

  10. Syabas, Well done Anil! I have always wondered where the tie-in will be knowing the paint company was a losing entity.
    The father adovocated for more ads to salvage a sinking `Utusan’, the son is salvaging a sinking `Paint Company’ nad he Presto it became another 1Malaysia Co to supply paint to all Gomen jobs.
    The Mak-tiri sparkles with her `Permata!’ allocations!
    Coming soon to his `Endless Possiblities’ will be First Family Inc. as the first `Pemerkasaan’. After all he is Bumi, the Maktiri is bumi-lang and of course, the son, bumi-yan goes without saying!
    NEP for this PM is worse ripping-off opportunitites than MM did!

    • He is standing low on this case.
      rajraman. Low will negotiate to settle without making police report with poor people but when comes to UMNO he will stand low and keep his mouth shut.

    • Paul Low is just … to serve his pay-master. how could he bite the hand that feeds him?

      Najib will say corruption in Malaysia is only a perception problem, not real! Just look at the way the government cleared the Seremban MB illegal remittance of RM10M! How can the MB have RM10M as an MB’s salary is RM30K a month?

      Remember Amin Shah who got the RM3 billion naval project at Lumut?
      How can a former small time contractor from Kampong Baru managed to secure such a tender with no naval proven experience? The initial boats he gave to the government failed on all specifications – worse than wooden sampans!

  11. Najib’s administration is one big fake/phony after another..Whether its UMNO suppoedly reformed election, removal of ISA, fight against corruption, “NEM” or “transformation” etc, – they are fake. What is so surprising about this?

  12. Another five years of endless opportunities for the cronies and familly members of the
    BN leaders and another five years of endless hardship for the ordinary rakyat who are all
    born loser.

  13. Najib endless possibilities are beginning to show up now and his … corrupt ways are indeed things of the thing of the past.

    Corruptions are still corruptions regardless how they are done. It is just like eating dog’s meat from a shop that displays the head of a sheep, the end result is you are still eating dog’s meat whatever animal’s head is being displayed !

    Now you now what this turncoat Najib is launching a billion dollars project to help the bumiputra, it is to (indirectly also) help his son eventually….

    Enough is enough, just leave the partnership of BN all he coalition partners. At least you will be remembered for this courageous move even though all you lackeys have supported the morons to hang on to Putrajaya. You are the unsung heroes that brought down the morons from Putrajaya and for that alone you will be remembered for a long time !

  14. At his age, where is his source of funds from?

    “all its members to buy C1M from Sersol “to be used in all building and construction contracts secured or entered into by PKMM members with the government and private sectors for all the building and construction projects” – what a wonderful arrangement. No need to be price and quality competitive.

    1Malaysia-Endless Possibilities

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